StrataCall Autumn 2013

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553 RRP: $2499

Meet Fair Trading Minister Anthony Roberts

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WELCOME

Strata

. As we always say, behind that word is a whole lot of grunt. It is the preferred lifestyle of the 21st Century. Welcome to your second edition of StrataCall. In our Autumn magazine we are endeavouring to give lot owners a better understanding of strata. We have some great stories about buying an apartment, increasing the value of your apartment, painfree downsizing, creating a balcony garden but most importantly, facts you need to know to about living in strata. How do you get on the executive committee? What do you do once you are there? What is your responsibility as a member of the Owners Corporation? What is the lowdown on Strata Levies? And let’s not forget Dame Isobella, a gorgeous French Bulldog who has her very own perspective on by-laws. In the best interests of every lot owner, in this edition and of course moving forward, we hope to shed more light on the people who are going to help you most. This of course will be your strata manager, strata lawyers, finance, banking, insurance and maintenance experts. We will also be bringing you a lot more information from NSW Fair Trading. This month we have spoken to Anthony Roberts, Minister for Fair Trading and many of his support team in his department. We intend to bring you all the most current information from NSW Fair Trading and each edition we will be spending some time with Minister Roberts to do our best to keep you in the loop from his department. In between magazine editions, you can keep up to date on our site www.stratalive.com.au where you are welcome to join our forum and ask questions of all our strata experts. We hope you enjoy this issue of StrataCall. Best wishes Cindy and Tracey

Strata Call

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CONTENTS

StrataCall Autumn 2013

Editor-in-Chief/ Director

Cindy Martin cindy@stratacall.com.au

Publishing Director

Tracey Brown tracey@stratacall.com.au

Designers

Troy Meli Alexandra Argaet

PA to Directors

Melissa Brown melissa@stratacall.com.au

Production Manager

Troy Meli production@repa.com.au

Contributors

Barry Hyland Georgia Madden

Production Assistant

Ferdinand Kumentas

Distribution

Rick Darley help@stratacall.com.au

Advertising

help@stratacall.com.au

Published by StrataCall Pty Ltd

Front Cover - Penthouse 10 Wylde St Potts Point see page 90-91.

Address

4.07 / 29-31 Lexington Drive Bella Vista NSW 2153

Mailing Address

PO Box 8075 Baulkham Hills NSW 2153

Telephone

1300 563 053

Facsimile

02 8867 3599

Email

help@stratacall.com.au ABN 98 524 122 979 Website www.stratalive.com.au

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StrataCall

CONTENTS

Contents 8-9

Fair Trading Boss - Anthony Roberts

10-11

Venturing into the Stratasphere

12

Fair Trading Statistics

13

How to Get Help From Fair Trading

14-15

Fair Trading's Most Common Complaints

16-17

How the Experts Are Helping You

18

10 Top Tips for Apartment Living

20

Buying off the Plan

22-23

Building Defects

27

Unlocking the True Value of Common Property

29-35

Strata 101

36-39

Owners Corporation's Responsibilities

42-43

Increasing the Value of your Apartment

46-47

A Whole Load of Bulldog

51-54

Strata Q&A

57-59

GST & Strata with Kelly+Partners

60-61

Unlocking the Sustainable Future

62-63

Maintaining your Biggest Asset

65-73

Strata Made Easy with Westpac

75

Property Observer

79-81

Decorating your Children's Room

82-83

Painfree Downsizing

84-85

Major Works - Not Major Headache

86-87

Supersized Apartments

88-89

Creating a Garden Balcony

90-91

Sydney's Finest Penthouse?

92-93

Community Associations

94-95

The Changing Face of Sydney

96-97

Home Theatre Decor

98-99

Petrol Prices & TrafďŹ c Snarls

102-103

Duty of Care Obligations

104-105

Sydney's Newest Million Dollar Suburb

108-109

Lowdown on Strata Levies

111

New Social Media for Unit Dwellers

113

Cure to TrafďŹ c Snarls

114-115

Buyers' Guide to Kitchen Benchtops

116-117

How to Build a Colour Scheme

120-121

Catching the Public's Eye Strata Call

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Enhancing Community Living

How can Fair Trading Minister Anthony Roberts and his department help you? 8

StrataCall

MINISTER - ANTHONY ROBERTS

Meet Minister Anthony Roberts By Barry Hyland

I’d always assumed that politicians given ministerial roles must have an acute understanding of, or background in, their assigned portfolio. For example, it seemed sensible that the Minister for Sport was either a former sportsperson or had a love of sport. Likewise, the Treasurer would need an accounting background, and the Minister for Small Business would have to have had experience in the private sector. So it was reassuring to learn from the man in charge of ‘all things strata’ in NSW that he did actually live in a strata development - in his Lane Cove electorate - and had experienced many of the good and bad aspects of community living. In fact his wife is on the Executive Committee of their building. How intimidating, I mussed, would it be trying to argue a point with them at the AGM? It turned out that Anthony – or ‘Robbo the Reformer’ as he is known in Parliament – was anything but intimidating. Disarming, more like it, with a cherubic face and a slightly bouffant hairstyle that belie his 43 years. “I often describe strata schemes as a vertical village because you get a mix of all sorts of different characters who could be living next door, on the floor above, or down the hall from each other, which can be great but also result in disputes from time to time. “Anyone living in strata will tell you about their experiences with the three P’s - pets, parking and parties. These are three issues that can cause arguments, disputes and stalemates. We’ve had lots of feedback on these three issues during our consultation, as well as many others.

living environment for everyone who lives in their strata scheme. “We want to improve the governance of schemes and find the best ways to manage buildings, money and disputes.� Among the outcomes the Minister seeks from the new laws are: @ &'37#6' %1057/'4 2416'%6+10 @ #+4 #%%'55+$.' #0& 24#%6+%#. &'/1%4#6+% 241%'55'5 @ 4'#6'4 64#052#4'0%; #0& #%%1706#$+.+6; @ %*'/'5 '#5; 61 470 @ 4'#6'4 5'.( )18'40#0%' #0& @ 224124+#6' #0& "5%#.#$.' (14 &+(('4'06 6;2'5 1( 5%*'/'5 “The Government is committed to working with the community to develop a set of laws which we can take forward for the next 50 years. This is the commitment we made when we began this process back in 2011. We want laws which are considered best practice both in Australia and around the world.� Lofty ideals. But certainly not beyond ‘Robbo the Reformer’, who in 1994 volunteered for military service and enlisted in the Australian Army Reserve where he served for nine years until retiring with the rank of Captain. During this period of service he was deployed to Bougainville as part of an Australian effort to monitor a ceasefire following years of civil unrest. What better credentials do you need for the role of ‘strata peacekeeper’, and surviving the daily battle that is euphemistically called ‘politics’?

“Strata living poses challenges, but there also are many benefits. I’m passionate about this reform process and making sure we get the new laws right.� Robbo has long been a strong advocate for the community, not just at a state level but also on pressing local issues. He’s fought for the protection of public lands from sale to developers, for full filtration of the Lane Cove Tunnel, and against the overdevelopment of our suburbs. “The Government has acknowledged the calls to make strata laws easier to understand and more certain for everyone involved. In particular, we want to provide the best possible support for the tens of thousands of volunteers who give up their valuable time to serve on their scheme’s executive committee for no other reward than to contribute to creating the best possible

Minister Roberts outside the first registered strata scheme in NSW.

Strata Call

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NSW FAIR TRADING

Boldly Venturing into the STRATASPHERE By Barry Hyland

WHAT THE FUTURE HOLDS Whoa. It’s getting squeezy in Sydney. More residents are cramming into the same land mass, with experts forecasting that one in two Sydneysiders will live in strata developments by 2040. It can mean only one thing . . . we’ve got to build more apartments. Up, up we go. Higher and higher. To gain a better insight into what the future holds, Strata Call talked to Anthony Roberts MP, the Minister responsible for strata issues, along with the Assistant Commissioner, Policy and Strategy for Fair Trading NSW, Dr Rhys Bollen. It’s been more than 50 years since NSW introduced the world’s first strata title laws, and the 926 pages on which the rules and regulations are written have well and truly yellowed with age. The provisions have not kept pace with the myriad of issues now facing strata and community title schemes in the State. So, late this year or early next year, The Minister for Fair Trading Anthony Roberts will rise to his feet in Parliament and table a bill that has important ramifications for millions of tenants and landlords.

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The new laws will be the result of two years of consultations and recommendations which Mr Roberts says is aimed at producing: “more modern, effective and simplified laws that enable easy community living and shared arrangements.” It will be vigorously reviewed, debated and potentially amended in some way before Parliament gets to vote it into legislation. “The new bill will cut red tape and repetition, streamline and strengthen laws and remove anything that strangles good governance or inhibits necessary protections for people,” Mr Roberts says. “It will support owners in the day-to-day management of their scheme, and address issues associated with ageing buildings, changing demographics and accountability for annual budgets that can amount to millions of dollars.” Mr Roberts has an enviable record of achieving results. Having served on Lane Cove Council for almost nine years - including two terms as Mayor - he has brought to Parliament a broad outlook on life and a straightforward, commonsense approach to finding solutions. “We are trying to make things a lot simpler and more certain for people,” he says. “Consumer protection is

NSW FAIR TRADING

a guiding principle in the government’s review, as is democratic process, transparency, accountability and appropriateness.”

9. Debt recovery of outstanding levies 10. Parking, particularly the misuse of visitor parking spots

Dr Rhys Bollen, the Assistant Commissioner, Policy and Strategy for NSW Fair Trading, has no hesitation in nominating strata reform as the largest, most complex issue his department has ever undertaken.

Almost certainly, item 7 – involving the redevelopment or termination of schemes – will attract the most headlines when the reform proposals are tabled.

“Since releasing a discussion paper last September that identified a broad range of issues and possible options we have received more than 1,900 submissions,” Dr Bollen said. “This is in addition to more than 1,200 comments received during an earlier stage of online consultation. It makes it easily the largest response to a review ever conducted by NSW Fair Trading.” The top 10 issues arising from the consultation 1. Enforcement of by-laws 2. Building defects 3. Overcrowding, particularly inner city and coastal areas 4. Smoking on common property, and smoke ‘drift’ 5. Keeping pets 6. Abuse of the proxy voting system 7. Renewal of older buildings 8. The process of owners making improvements to their lot

Urban consolidation demands mean many ageing and/ or low-density schemes will need renewal, yet community and majority interests can conflict with those of the individual. Many buildings are not economical to keep repairing and maintaining. “We need a fair and reasonable way of allowing schemes to be redeveloped in the best interests of the community,” Dr Bollen said, “but under current law it requires unanimous agreement of all owners. “We received many differing views on this most important of issues. Some argued that an individual should not be able to stymie the collective wishes of the majority of owners who want to redevelop or sell their scheme. Others argued the opposing view ... that an individual should not be forced to sell, regardless of the circumstances.”

Strata Call

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Did you know? 8 There are 72,000 strata schemes and 1,500 community schemes in NSW. 8 &#6 1,1 ) + #01'* 1#" '))',+ '+ 00#1 3 )2# 8 #+ +10 -#/!#+1 ,21+2* #/ ,4+#/ ,!!2-'#/0 -#/!#+1 8 + 3#/ %# ,$ 7 3# +#4 01/ 1 0!&#*#0 /# /#%'01#/#" '+ NSW each day. 8 -#/!#+1 ,$ 0!&#*#0 & 3# )#00 1& + ),10 4'1& * +6 ,$ 1&#0# 0#)$ * + %#" 8 /,2+" -#/!#+1 ,$ /#0'"#+1' ) 01/ 1 0!&#*#0 '+ 1&# 6"+#6 *#1/,-,)'1 + /# 4#/# /#%'01#/#" *,/# 1& + 6# /0 %, +6 ,)"#/ 2')"'+%0 0,*# +# /'+% 6# /0 ,)" & 3# ##+ !,+3#/1#" 1, 01/ 1 1'1)# 8 /,2+" -#/!#+1 ,$ )) 0!&#*#0 '+ /# * + %#" 6 )'!#+0#" 01/ 1 * + %'+% %#+1 +" '1 0 !),0# 1, -#/!#+1 '+ ) /%# +" !,*-)#5 0!&#*#0 8 ,21 ,+# .2 /1#/ ,$ )) "'0-21#0 1& 1 !,*# 1, '/ / "'+% /# ,21 1&# !,+"2!1 ,$ * + %'+% %#+10 8 &# , #+.2'/6 $/,* 01/ 1 +" !,**2+'16 0!&#*#0 !/,00 1&# 1 1# '0 ,21 !,**,+ -/,-#/16 * '+1#+ +!# +" +" /,-#/16 +$,/* 1',+ +" '/ / "'+% /#!#'3# *,/# 1& + ! ))0 4##( ,21 1&'0 '002#

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StrataCall

NSW FAIR TRADING

Help is just a phone call away

Since 1997, NSW Fair Trading has provided a mediation service for people living in strata schemes to help them resolve their issues and to assist them to work together as a community.

themselves having to work together to manage and maintain their ‘home’. Mediation allows for wide ranging discussions to help them clarify their goals, without limiting the conversation to the legal issue in dispute.

Last financial year the Mediation Services Unit finalised 1,686 mediations. The top three issues – about 80% of all matters – were (as they are each year): ? 1%2%+)1)27 '3140%-276 ? &< 0%: &5)%',)6 &),%9-385%0 -668)6 %2( ? 5)4%-5 %07)5%7-326 73 '31132 4534)57<

One of the great benefits of Fair Trading’s mediation service is that time is taken to ensure that parties receive information about strata legislation. This is provided by Fair Trading staff during the course of the mediation, and has been found to be beneficial as it clarifies what can often be complex legislative issues. Sometimes this is enough to assist in resolving the dispute. At other times it helps the parties to become clear on what they will need to focus on if they proceed to the Consumer, Trader and Tenancy Tribunal.

Of the matters that proceeded to mediation, 66% reached agreement. Strata disputes are often complex with a wide array of issues that may include meeting procedures, levies, common property rights and repairs, by laws and, of course, human emotions that accompany such matters. ,)5) %5) %063 7,) 6-2+0) -668) 1%77)56 '32')52-2+ % beloved pet or serious repairs which can generate heated tensions. Strata living is about community living, and mediation is a forum that helps parties focus on how they want to live together. This can be challenging when people of widely differing backgrounds, lifestyles and values find

The Mediation Services Unit also provides a broader )(8'%7-9) *82'7-32 &< '32(8'7-2+ 5)+80%5 67%7) :-() 48&0-' seminars on all aspects of strata living. Fair Trading provides help and information on strata living, the management of strata schemes, and dispute resolution in a number of different ways. You can find information on the website, www.fairtrading.nsw.gov.au and get help from Fair Trading staff by calling 13 32 20. Strata Call

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NSW FAIR TRADING

Weird & Wacky ... and oh so funny!

No one can accuse The Department of Fair Trading of not having a sense of humour. It prepared this list of its 10 weirdest complaints for Strata Call: 1. A noise complaint made by an owner about his neighbour who barked like a dog when she was having sex. After VERY delicate and carefully assisted discussions, the mortified noisy couple undertook to restrain their ecstatic outbursts. 2. Owners complained about water leaking from the unit above them. An above ground swimming pool was found in the upstairs bedroom full of trout being bred for sale. Owner undertook to remove pool. 3. A complaint was raised about a woman who hung laundry and watered the garden in the nude. The owners had a meeting which ended in deadlock because the women voted to take action against her for breaching the by-laws while the men voted not to take action, in the interest of maintaining community harmony. 14

StrataCall

After some heated discussions, it was decided - again in the interest of community harmony - to take action against the woman to remain clothed at all times on common property. 4. A complaint was received about an owner in a small inner city strata who was keeping a pet without permission. The pet was a horse. The owner relocated the horse and then moved out of the scheme. 5. A noise and smell complaint was received about an owner who was overhauling a car engine in his lounge room. Owner refused to change his behaviour. The OC obtained penalty orders for by-law breaches. 6. An owner complained about the owner above who could distinctly be heard urinating in the toilet bowl at all hours of the night. The Tribunal ordered the man to urinate on the side of the bowl so as not to make splashing noises.

NSW FAIR TRADING

7. A complaint was made about an owner who brought video equipment into his unit every time his wife went 4 6 #,/ 4""("+! ,&0"0 ,# -,/+,$/ -%& + 12/" disturbed the neighbour’s peaceful enjoyment as the man made videos. All of his actors were male. Delicate discussions were had with the husband who undertook to immediate stop the videos. His actions were not disclosed to his wife. 8. ,*-) &+1 4 0 * !" ,21 + ,4+"/ (""-&+$ -"10 4&1%,21 -"/*&00&,+ %" -"10 4"/" 3 /&"16 ,# 0+ ("0 of all sizes. Parties were assured about the safety measures being taken to contain the snakes. Permission was granted to keep the pets as long as those measures were maintained.

9. To spite the owners corporation following a dispute, + ,4+"/ "$ + /2++&+$ 4 1"/ "5 "00&3")6 &+ %&0 0&+( shower and bath to run up the scheme’s water bill. Orders were made against the owner to stop the wasteful use of water. 10. An owner complained about the noisy parties being held each night in the unit above. However, the unit % ! ""+ ,*-)"1")6 3 +1 #,/ 0&5 4""(0 4%&)" 1%,0" owners were away on holidays. Ghost tenants? Parties agreed to a six month trial period where the complainants would notify the above unit when the noise was excessive to evaluate the source of the noise.

Top 10 Strata Complaints Each year Fair Trading NSW receives around 900,000 telephone enquires. Of these, some 42,500 relate to strata matters, with the Top 10 being: 8 ,&06 +"&$% ,2/0 8 1"/ -"+"1/ 1&,+ /"- &/0 1 (&+$ 1,, ),+$ 8 ",-)" (""-&+$ -"10 4&1%,21 -"/*&00&,+ 8 4+"/0 /"*,3&+$ /-"1 4%& % )" !0 1, +,&0" !&012/ + " 8 ",-)" "&+$ /"#20"! -"/*&00&,+ 1, (""- -"10 8 Owners complaining about majority decisions that victimise them 8 The owners corporation complaining of harassment by an owner who refuses to accept majority decisions 8 / - /(&+$ !&0-21"0 8 4+"/0 , '" 1&+$ 1, &+ /" 0"0 &+ )"3&"0 8 ",-)" /"+,3 1&+$ ,**,+ -/,-"/16 without permission

Strata Call

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HOW THE EXPERTS ARE HELPING YOU

How the Experts are Helping You By Cindy Martin

StrataCall and our sister site stratalive.com.au are all about you, the lot owner. Getting information to you to help you deal with the complexities of strata. We are building a strong relationship with the experts in the strata industry so you have the knowledge to help you make more informed decisions. Last Monday, Brett Kelly, CEO and founder of Australia’s leading Strata Accountancy firm, Kelly + Partners, held the first of his Strata in Conversation lunches at Aria Restaurant. During the course of the year, Brett is hosting a number of these lunches with guest speakers at each. It was relevant and appropriate to have the Fair Trading Minister, Anthony Roberts as his first guest speaker. I was born the same year as strata. When I think what has happened throughout the duration of my life, there would be few laws in relation to any industry that would be applicable today. More than fifty years of change is just not reflected in our current legislation. Anthony Roberts is not just passionate about strata, he is a lot owner himself. He understands the frustrations and the desperate need for reform. He agrees wholeheartedly that these reforms should have taken place 15 – 20 years ago. When Brett asked the Minister when we could expect an outcome to the recent consultation, Minister Roberts said they were hoping to bring legislation to the parliament early next year. Minister Roberts made it very clear that communication is going to play a huge role in moving forward. As a strata magazine and website, we are trying to bring this massive community together with help from the most reputable experts in strata. NSW Fair Trading is no different. The Minister and his team at Fair Trading are making the strata reforms the jewel in there crown and they want lot owners to start communicating again. “The buildings are bigger, the communities much larger,” The Minister said. “Where we have more and more people now the only interaction they want with anyone is very little. “They park their cars downstairs - hopefully someone hasn’t parked in their spot – they get in the lift, they go up and they go into their unit…and that is it. “So we are very supportive of an increase in communication.” We also cover in this edition of the magazine, the termination of strata schemes. Brett asked the Minister for his view.

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HOW THE EXPERTS ARE HELPING YOU “Termination has always been the elephant in the room. I mean how do we deal with ageing strata schemes? How do we deal with issues where you have older people who quite seriously cannot afford to maintain or remain in their strata schemes because they are past their used by date. So that’s why we kicked the ball,,,to make sure that we bring in the ability for strata schemes fairly and openly and transparently to be able to look at themselves and again make those decisions whether or not to be part of the renewal process. “Is it going to be 80 percent? 75 percent?” Brett asked. “There seems to be an overwhelming move and positioning to about 75 percent,” Minister Roberts said. “…as you know you can terminate schemes now. You have got to have 100 percent. As there have been some 284, thereabouts, schemes terminated, anyone who tries to tell me that everyone of those schemes was legitimately 100 percent, that everyone loved the idea of terminating, is kidding themselves. “But the issue is that there is no check or balance in there to protect an individual from intimidation or someone that, for example, doesn’t have the education or the skills as someone else does. “So what we are keen to do is make sure there are steps in place, not only just to make this easier for people who have made that decision to terminate their strata schemes, but to ensure that there is a level of transparency and openness all the way through and a level of protection there for individuals while that scheme is been terminated. There was no one left in doubt that the Minister is definitely headed in the right direction. He wants better education for lot owners, better legislation and greater protection. Nothing he discussed at this lunch left you wondering about his loyalities. He actually did have each individual lot owner front of mind. He speaks in plain English, he didn’t over-intellectualise and he wants results. All round, our Minister for Fair Trading, Anthony Roberts, is a pretty good bloke. As Brett conducts his Strata In Conversation throughout the year, we will continue to bring you all the latest news and information from NSW Fair Trading and Minister Roberts. Brett will be speaking with more strata experts throughout the year at his Strata in Conversation lunches. The lunches are not just for strata representatives but lot owners are more than welcome to attend – in fact they are encouraged to attend. The numbers for each lunch are limited so you should send your details to events@kellypartners.com.au if you would like more information about the upcoming lunches. You can also call us here at StrataCall on 1300 563 053 and we can forward the information to you. We have a goal in common with anyone who is contributing to better information and outcomes for our lot owners. Brett is a best-selling author so it might be a good idea to keep and eye out for his next book. It will definitely be a good read for lot owners. Strata Call

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TOP 10 TIPS FOR APARTMENT LIVING

Top Ten Tips for Apartment Living Experts have predicted that the population of Australia will grow to 35 million people by 2050. Around half of the population will live in our three major cities; Sydney, Melbourne and Brisbane and the majority of those in high density dwelling. Apartment living is part of everyday life in Australia today and will continue to be a popular living option in our future too. So it makes sense for current and potential residents to familiarise themselves with some tips on living in apartment dwelling harmony. 1. Love Thy Neighbour Recognise that when you’re living in an apartment, your neighbours are not across the street but can be on the other side of your living room or bedroom wall. Mutual respect and consideration of neighbours will lead to more harmonious living. 2. No Pets Allowed or Are They? Before you decide that you need furry, feathery or scaly companions, find out if your building allows pets. If it does then the next step is to inform your executive committee that a new house guest may soon arrive. Strata Community Australia has information and a pet application form on its website: www.stratacommunity.org.au 3. Know What’s Yours Make sure you are clear on the space that is yours and the space that is common property and know what you can and can’t do on common property. 4. Know Your Rights Acquire a full copy of the by-laws that are specific to your building, so that you understand the "rules" that you will be required to live by. 5. Do Some Sleuthing If you are unaware of the decisions made by the executive committee then ask for a copy of previous Minutes. Even 18

StrataCall

better go along to a General Meeting and get a feel for what’s happening in and around the building. 6. Make Sure Your Sinking Fund Isn’t Sinking Have a good look at the condition of the building and make sure that the funds in the sinking fund match the long term maintenance planned for the next few years. 7. Budget for Levies Make sure you have budgeted for the quarterly levies to fund the annual running expenses of the building and its long term maintenance. Ultimately this will protect the value of your financial investment. 8. Be Informed Educate yourself, as to your rights and responsibilities of living in a strata or community title property by doing some research. 9. Know Who to Call Find out who on your executive committee you can contact when something goes wrong with the building and its services. 10. Be Active Take an active interest in what goes on in your building, attend the annual general meeting so that your voice is heard and consider becoming a member of your buildings executive committee.

BUYING OFF THE PLAN

Buying Off The Plan Buying off the plan is defined by NSW Fair Trading as purchasing a strata unit or retirement unit before it has been constructed. Often the design of the building and sketches of its final appearance are included in advertising material. Usually a deposit is paid with the balance due once the building is completed. The timing of completion may depend on how much of the building is sold. Often the property developer needs to secure buyers to minimize the risk and having contracts to buy is a good sign for financial lenders such as banks. There are pros and cons to buying off the plan, which are explained below. One of the advantages is that the apartment buyer may get a property that is discounted if they get in at the early stage of development. At this stage, the developer is often keen to have some sales contracts before construction starts. As the marketing campaign progresses and the building commences it may be that it creates enough hype and interest from other buyers that the apartment may increase in value even before it is completed. Buying off the plan also means that the purchaser gets a brand new apartment that either may be fitted out and decorated to their specification (up to a certain amount), or they may get to choose the flooring, tiles, lights and tap fittings from a small selection provided by the developer. Purchasers may also be able to get the apartment in the position that suits them – such as north east facing – or ground floor with a small garden. Care should be taken when reading plans to make sure the apartment

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chosen is in the desired position in the building.

material and check them out independently.

There are also things to look out for when buying off the plan and the old saying ‘buyer beware’ is one that should be in the back of every purchasers mind. Buyers should not buy in hype and do some research of the surround area to get an idea of what the true market value of the property is. Investors who think they are going to make a quick dollar may be disappointed if the building takes longer than expected and there are always fluctuations in the property market. Investors should also check what the rights are to resell the property before signing any contracts, otherwise it could end in disappointment.

If you’re going to live in the apartment have a good look at where the amenities are. For example, where are the letterboxes and garbage bins in relation to the apartment? Will the sound of the garbage collection be a weekly disturbance; are the letterboxes in a position where they can be easily accessed by residents and Australia Post but not thieves?

Beware too that the quality and finishes may not be of the same standard as the flashy mock apartment that is set up to market the development. Where possible get details including the manufacturer of the finishes, colour name and

Developers of strata schemes may also have signed binding management contracts between the owners corporation and caretakers/ building managers. NSW Fair Trading advises that prospective buyers are entitled to know the details and see copies of any such contracts. Your lawyer or licensed conveyancer can arrange the necessary searches. For more information about buying off the plan go to NSW Fair Trading.

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BUILDING DEFECTS – MAKE SURE THE BUILDER DID THE WORK!

BUILDING DEFECTS

Make Sure The Builder Did The Work! Many strata schemes now involve the conversion of existing warehouses into residential dwellings and the renovations of old structures for a “Chic” modern look. If you find yourself in this situation, you would be interested in a recent judgement by the New South Wales Court of Appeal, which is pertinent to your circumstance. On 16 November 2012, the Court of Appeal, in effect, confirmed the decision of the Consumer, Trader and Tenancy Tribunal that a builder must be proven to have done work before any liability arises (Building Insurers Guarantee Corporation v The Owners – Strata Plan No. 60848 [2012] NSWCA 375). Some background about the facts of this case is necessary for the purposes of understanding the effect of this judgement. FACTS On 10 September 1997, approval was given for the conversion of an old building into a residential strata development. The conversion involved internal works, except for the installation of some windows to the outer brick walls of the Building. In the course of installing the windows, the Builder brought to the Developer’s attention the inadequacy of the outer brick walls to prevent moisture penetration and the deficiencies in the waterproofing of those walls. The Builder was instructed to ignore the deficiency, to retain all exterior walls and to not build any exterior wall. The Builder followed the instructions given by the Developer, but did not go so far as to confirm those instructions in writing. There was no written contract between the Builder and the Developer for the works. The works were carried out on a “do-andcharge” basis. The Builder did obtain Home Owners Warranty Insurance for the works. When the Builder went into liquidation, the Owners Corporation made a claim for indemnity under the Home Owners Warranty Insurance Policy, which was issued by FAI and administered by the Building Insurers Guarantee Corporation (BIG Corp). The claim encompassed a number of defects, including water penetration and deficient waterproofing. BIG Corp denied cover for this defect on the basis that this work did not form part of the contract works which the Builder (who was the Insured) was to perform. As such, the Owners Corporation is not entitled to indemnity under the Policy for such works. Consumer, Trader and Tenancy Tribunal Proceedings The Owners Corporation lodged an appeal to the Tribunal, relying on its assertion that the works had been carried out in breach of the Statutory Warranties implied by Section 18B of the Home Building Act 1989(NSW). 22

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One of the Statutory Warranties include a warranty that: “...if the work consists of the construction of a dwelling, the making of alterations or additions to a dwelling or the repairing, renovation, decoration or protective treatment of a dwelling, the work will result, to the extent of the work conducted, in a dwelling that is reasonably fit for occupation as a dwelling...”. The Tribunal found in favour of BIG Corp on this point. In the course of its decision, the Tribunal held that: “...there was no contractual obligation to carry out any work to apply a waterproofing membrane to the exterior of the building. Thus, the lack of such a membrane is not a breach of contract by the builder...

BUILDING DEFECTS – MAKE SURE THE BUILDER DID THE WORK!

The final aspect to consider is the obligation of a builder to construct so that the works are reasonably fit for occupation as a dwelling...I shall assume that the building is not so fit. The answer is simply that to take such steps was beyond the contract of the builder. The warranty does not come into play.” In other words, the Tribunal held that the Statutory Warranties would apply to only the works the subject of the Building Contract. A Builder would not be required to perform any work to rectify an existing defect in the Building if such work does not fall within the scope of the works it is required to carry out under the Contract. This is the case even where the Builder becomes aware of the existence of the defect in the course of the works. It follows that a successor in title, such as an Owners Corporation, will not have the protection of the Statutory Warranties in respect of such defect(s). District Court Decision The Owners Corporation sought to appeal this decision in the District Court and that Court found in favour of the Owners Corporation. The judge held that the obligation on the Builder was to make the premises waterproof.

COURT OF APPEAL BIG Corp appealed against the District Court’s decision to the Court of Appeal. BIG Corp’s appeal was successful as the appellate Court, in effect, agreed with the Tribunal’s view. The decision of the District Court was set aside and the matter remitted to the District Court for a determination according to law. IMPLICATIONS FOR OWNERS CORPORATIONS The key implication of this decision for an Owners Corporation who finds itself in a similar circumstance is that the Owners Corporation cannot simply assume that it would be able to rely on the Statutory Warranties in respect of all defects affecting the common property. This judgement confirms that the benefit of the Statutory Warranties is confined to only the defects arising out of works which the Builder was contracted to perform, and not more. Further, this case emphasises the importance of undertaking careful investigations prior to the commencement of any action, where such investigations must include a determination of the scope of works of a Building Contract.

Story courtesy of Grace Lawyers Strata Call

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The people people.

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Responsive, adaptable and cost-effective access to top-quality legal expertise in Strata & Community Title Chambers Russell Lawyers is proud to be able to offer its clients the highest quality legal expertise in all facets of Strata & Community Title Law, from building defects, construction, and insurance law to dispute resolution, service contracts, by-laws and more. Chambers Russell Lawyers is staffed by widely recognised experts in the ďŹ eld with experience acting for all stakeholders in the Strata & Community Title space, from individual lot owners and owners corporations through to ASX 200 companies and the New South Wales Government.

Call us to speak directly with Partners Scott Chambers and Daniel Russell today. p +61 2 9233 1201 f +61 2 9233 1365 e info@chambersrussell.com.au Office Suite 404, 350 George Street SYDNEY NSW 2000 All correspondence to GPO Box 7100 SYDNEY NSW 2001

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UNLOCKING THE TRUE VALUE OF COMMON PROPERTY

Unlocking The True Value Of Common Property

Macquarie Street in Sydney – home to the NSW Parliament – is where the State’s best minds come to work. But not all of them are politicians. The Owners Corporation of Windeyer Chambers at 225 Macquarie Street and its visionary strata manager, Strata Republic, concocted an ingenious plan to defray the cost of refurbishing the heritage-listed commercial building. They identified that the rooftop plant room could be relocated, allowing for a 312sqm commercial suite with front and rear terraces to be built and sold off. The view from the 14th floor is one of Sydney’s finest, stretching from the Opera House over Sydney Harbour to St Mary’s Cathedral and beyond. Strata Republic put the plan in motion, gaining all the necessary designs, approvals and costings. It then engaged CBRE, which successfully sold the proposed suite off-the-plan for $3.1m. Over the next nine months Strata Republic will oversee the facade upgrade and the 14th floor conversion, which will increase the value of the overall building and each lot owner’s suite.

Adding value is what Strata Republic prides itself on. Founded eight years ago by Wade McKenzie, Strata Republic has been winning commercial and residential business through its responsive service and progressive approach to communication. Among its clients are prominent property developers and international real estate organizations, as well as Owners Corporations of high-end strata schemes in the CBD, the Eastern Suburbs, the Inner West and the Lower North Shore. “We like to get involved in the embryonic stage of a development,” said Mr McKenzie. “We act in a consulting role, advising on by-laws specific to each particular property, and setting up correct procedures for the incoming Owners Corporation to follow. “Sound management structures need to be put in place as early as possible to help streamline the often touchy defects, settlements and hand-over period, and ensure the longevity and on-going prosperity of a completed building. Most owners appreciate that a professionally managed property stands the best chance of appreciating in value.” Strata Call

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STRATA 101

1. When Buying in Strata – Do your Homework 2. Get on the Executive Committee 3. Living Best in a Strata Scheme 4. Who is Responsible for Repairs

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LESSON 1: DO YOUR HOMEWORK. When you are buying into strata for the first time, it is really important to find out as much information as possible about the management of the scheme itself. For example Is there a strata manager? Is the building property insured? Are there enough funds to cover long term repairs and maintenance? Is there outstanding building work, or is any planned which could mean additional special levies? Organise to get a Section 109 Certificate which provides a good deal of information or organise a detailed strata search through a specialist company or your solicitor/conveyancer. Find out which parts of the unit will be included in the 'lot' and where the common property boundaries are. This information is on the strata plan, which shows the layout of the strata scheme and the common property details. Common property boundaries are usually shown on strata plans by thick black lines. Pay close attention to items such as balcony walls, railings, sliding doors and garage doors, as strata plans my differ on whether these items are part of the common property or not. Don't forget ongoing costs such as the quarterly levies and contributions to the sinking fund. How much are they? Can you afford these? Find out if any alterations have been done to the unit? Were these approved by the owners corporation? Think carefully about the impact of the strata living on your lifestyle. Have you seen the by-laws (rules)? Can you keep a pet? Can you hang washing outside or will you have to buy a clothes dryer? Will it be difficult for you if there are restrictions on visitor parking or where your children play? Besides looking at the unit, also have a look at the whole building. Some buildings have high quality and expensive finishes such as polished granite and marble foyers. These must be maintained along with the swimming pools, lifts and gardens and the costs will impact on your levies. Alternatively, the building may be run down and in need or repair. Find out if there is building work planned and if it will be an extra cost to owners. Check if there are any restrictions on the use of the common property which could affect you, for example if you want to change the flooring, install air conditioning, or prune trees which shade your balcony. You will probably need the permission of the Owners Corporation. 30

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Before you buy into a strata scheme you should get a Section 109 Certificate from the Owners Corporation. A section 109 Certificate gives information about the strata scheme including: 9 the names and addresses of the executive committee members, the managing agent and caretaker (if there is one) 9 0%" ("2&"/ 0+ " , &! 5 0%" +3*"./ 9 *5 +10/0 *!&*$ ("2&"/ 9 the address where the records and financial statements can be viewed 9 any special by-laws made by the owners corporation in the past 2 years If a levy is outstanding before the Certificate is given and it is not shown on the Certificate, the purchaser is not responsible for the payment. However, if any money becomes outstanding after the Certificate is given, the new owner and the old owner are both liable for payment. If information is not supplied within 14 days after you ask for it, the Owners Corporation could be fined up to $220. If you are the owner, or you have an owner's or mortgagees or covenant chargees permission, you may write to the Owners Corporation and ask for a Section 109 Certificate. The Treasurer must give the Certificate under Owners Corporation seal. The Certificate must be in the set form. There is a fee. It is important that you inspect the books and records of the Owners Corporation before buying. Sometimes your solicitor will arrange to have this done for you, but not always. There are companies which specialise in inspecting the books and can organise a 'strata search' service. If you are an owner, or you have an owner's or a mortgagees or covenant chargee's permission, you may write to the Secretary of the Owners Corporation and ask the Secretary to let you look at the records. The Owners Corporation must let you look at all the records and should make arrangements with you to do this. When you are looking at the records you may make copies (for example, a copy of the strata roll). Unless you have the Owners Corporation's written permission you must not take any of the records away. There is a fee to look at the records. An inspection will show the history of maintenance of the building and provide a valuable insight into any complaints lodged by other owners. It may also show plans for future spending. Information supplied by Office of Fair Trading - www. fairtrading.nsw.gov.au

LESSON 2: GET ON THE EXECUTIVE COMMITTEE Firstly, what is the Executive Committee?

OFFICE BEARERS

The Owners Corporation must elect an Executive Committee which can make many of the day-to-day decisions about running the scheme on its behalf.

CHAIRPERSON

However, the Owners Corporation can overrule Executive Committee decisions or limit what they can make decisions about. ELECTION OF THE EXECUTIVE COMMITTEE The Executive Committee is elected at each Annual General Meeting (AGM). It can have up to nine members and, once elected, decides who is to hold the ofďŹ ce-bearer positions of Chair, Secretary and Treasurer. WHO CAN STAND FOR ELECTION? 2 $ %-$ ( 2 a company nominee of a corporation that is an owner 2 a person who is not an owner but who is nominated by an owner who is not standing for election. Co-owners can only be nominated by: 2 $ %-$ ( - % ) $%* % %-$ ( % * * "%* %( 2 a co-owner of that lot who is not a candidate for the election If a vacancy occurs during the term of the executive committee, the owners corporation must appoint a person to ďŹ ll the vacancy until the next AGM.

The Chairperson's main duty is to preside over all Owners Corporation and Executive Committee meetings and make sure they run smoothly. SECRETARY The powers and duties of the Secretary include: 2 preparing minutes of meetings and putting a motion to conďŹ rm the previous minutes 2 issuing notices for the Owners Corporation and its Executive Committee that are required under the Act 2 ! & $ * )*( * (%"" 2 giving information on behalf of the Owners Corporation under section 108 2 answering correspondence addressed to the Owners Corporation 2 convening meetings of the Owners Corporation and its Executive Committee (apart from its ďŹ rst AGM) 2 all the administrative and secretarial duties for the Owners Corporation and the executive committee TREASURER The duties of the Treasurer include: 2 &(%, $ %-$ () - * $%* % $/ " , ) 2 issuing receipts, banking and accounting for any money paid to the Owners Corporation 2 &( & ( $ $/ (* 1 * ) +$ ( * %$ 2 keeping all accounting records and preparing ďŹ nancial statements. Information supplied by the OfďŹ ce of Fair Trading www.fairtrading.nsw.gov.au

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LESSON 3: LIVING BEST IN A STRATA SCHEME 8 * *+ - / 2$/# 4*0- ! ''*2 - .$ )/. ) *).$ - / *! 4*0- ) $"# *0-. /#$. 2$'' # '+ ($)$($. $.+0/ . ) *)7 $ /. 8 !*''*2 4*0- ./- / . # ( 5. 4 ' 2. -0' . 2#$ # *1 - ( )4 .+ /. *! ./- / '$! 8 ( & .0- /# / 4*0 * )*/ ( " *((*) +-*+ -/4 8 + 4 4*0- ' 1$ . BY-LAWS # - $. )* 5( ) /*-45 . / *! 4 ' 2. *( (* ' 4 ' 2. - . / *0/ $) ' "$.' /$*) */# -. - . / 4 /# *-$"$) ' 1 '*+ - *! /# . # ( 4 ' 2. ) ( *- # )" /* ( / /# ) . *! '' *2) -. ) /* ..$./ 2$/# /# -0))$)" *! /# . # ( # 4 ' 2. ( ) /# / /# 2) -. *-+*- /$*) ) ( ) " /# ./- / . # ( /# 2 4 /# 4 2 )/ /- / . # ( . 3$./$)" !*- /# *(( ) ( )/ *! /# /- / # ( . ) " ( )/ / *) 0'4 # 1 4 ' 2. . / *0/ $) /# # 0' *! /# / /*" /# - 2$/# ( ) ( )/. ( /* /#*. 4 ' 2. 4 /# 2) -. *-+*- /$*) ./- / . # ( - "$./ - !/ - /# *(( ) ( )/ *! /# / *) 0'4 (0./ #**. ) - "$./ - $/. *2) 4 ' 2. # - - .$3 (* ' . /. *! 4 ' 2. $) /# "0' /$*). ) /# 2) -. *-+*- /$*) ( 4 . ' / )4 *! /# . *- +- + - /# $- *2) *0 ) # & 4*0- ./- / -*'' /* . ++'4 /* 4*0- ./- / . # (

2# / 4 ' 2.

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

SOME COMMON BY-LAWS

DRYING OF WASHING

KEEPING ANIMALS

*./ ./- / . # ( . # 1 - ./-$ /$*). *) 2 .#$)" $)" -$ *) ' *)$ . 2# - $/ 2*0' 1$.$ ' !-*( /# ./- / *- %*$)$)" 0$' $)". *0- . # ( ( 4 # 1 *((0) ' -4$)" - . ) 4 ' 2. ( 4 +' '$($/. *) /# 0. *! /# ( # & 4*0- . # ( 5. 4 ' 2. /* 6 ) *0/ 2# - ) #*2 4*0 ) -4 4*0- 2 .#$)"

# ./- / . # ( 2$'' # 1 4 ' 2 *) /#$. $..0 ) - ''4 .+ &$)" $/ 2$'' +-*1$ *) *! /# !*''*2$)"

8 )* )$( '. ) & +/ */# - /# ) 6 .# $) ) ,0 -$0( 0)' .. /# + -($..$*) *! /# 2) -. *-+*- /$*) $. 6 -./ * / $) 8 )* )$( '. ( 4 & +/ 0) - )4 $- 0(./ ) . 8 / .( '' *" .( '' " $- *- 6 .# $) ,0 -$0( ( 4 & +/

CHANGING THE APPEARANCE OF YOUR 'LOT'

*/ ( // - 2# / /# 4 ' 2 $. & +$)" "0$ *- # -$)" *" $. ''*2 / $. $(+*-/ )/ /* 6 ) *0/ *0/ /# & +$)" *! )$( '. 4 ' 2 !*- 4*0 04 0)$/ /* 1*$ $. ++*$)/( )/ *- ./- .. ' / - & .0- 4*0 6 ) *0/ 3 /'4 2# / /# 4 ' 2 /0 ''4 . 4.

*./ . # ( . 2$'' # 1 4 ' 2 *0/ /# ++ - ) *! $) $1$ 0 ' '*/. 2) -. - " ) - ''4 )*/ ' /* # )" /# ++ - ) *! /# $- '*/ $! /# # )" 2*0' )*/ $) & +$)" 2$/# /# - ./ *! /# 0$' $)" *- $)./ ) $! 4*0 2 )/ /* +0/ 0+ -$"#/'4 *'*0- 0-/ $). *- '$) . /# / 2*0' 1$.$ ' !-*( *0/.$ /# */# - *2) -. ) $).$./ /# *'*0- ( / # /# - ./ *! /# 0$' $)"

PARKING

FLOOR COVERINGS

2) -. ) - .$ )/. ))*/ + -& *) /# *((*) +-*+ -/4 2$/#*0/ /# + -($..$*) *! /# 2) -. *-+*- /$*) $.$/*-. ) + -& $) .$") / 1$.$/*-5.

*./ ./- / . # ( . # 1 4 ' 2. - ,0$-$)" 7 **-. /* $/# - /- / *- *1 - /* +- 1 )/ )*$. $)" # - $) */# - '*/.

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LESSON 3: LIVING BEST IN A STRATA SCHEME BREACH OF BY-LAWS If an owner or resident breaches a by-law, firstly, talk about the problem with them. If it continues, the Owners Corporation or Managing Agent (if their agency agreement gives them the authority) can serve a Notice to Comply with a By-law on the person who is breaching it. If the person continues to breach the by-law the Owners Corporation may apply to the Consumer Trader and Tenancy Tribunal for a penalty of up to $550 to be imposed on them. The fine is payable to the Office of Fair Trading. These following frequently asked questions will help you when you are trying to make decisions about living within your community.

carpet - it is in their lot airspace. However, if a noise problem results, you can talk to them about it or ask the Owners Corporation to serve them with a Notice to Comply with a By-Law. If a unit is tenanted, you can usually take action against the owner seeking to have the floor carpeted or covered to reduce noise. MY BY-LAWS DON'T DEAL WITH THINGS I THINK ARE IMPORTANT. WHAT CAN I DO? You can draft your own by-law and put it on the agenda for the next general meeting. It requires a special resolution - 75% or more to vote in favour. Once it is passed, the by-law must be registered at the Department of Lands, and then it is an enforceable by-law that must be obeyed. You may want to get assistance from the Managing Agent or a Solicitor. IS IT LAW TO HAVE A NOTICEBOARD?

I WANT TO GET A DOG. DO I NEED THE OWNERS CORPORATION PERMISSION? Check your by-laws first. Some schemes allow pets with the permission of the Owners Corporation - the executive committee can give this approval. Other schemes do not allow pets at all. If your by-law allows for pets then make a written request to the Owners Corporation and include any information to support your request, for example, information on the type of dog, how you will look after it and so on. My neighbour's boyfriend is parking his car in the visitors' parking space every night, taking up the space. Is he really a visitor? That is a matter for the Owners Corporation to decide at a meeting. SOMEONE IS MAKING A LOT OF NOISE AND IT'S DISTURBING MY SLEEP. HOW DO I GET THEM TO STOP? The best approach is to try to resolve the problem yourself, so talk to the person first. If that doesn't work or, if you feel intimidated, you have two choices. You can ask the Owners Corporation to issue them with a Notice to Comply with a By-Law then seek a fine if they keep breaching. Or you can apply for mediation through Fair Trading to have a Mediator assist you to discuss the issues with them. The people above me pulled up their carpet without permission of the Owner Corporation and put down a floating floor which is very noisy, what can I do? Owners do not require permission to remove their

Only if it is required in your by-laws. If the Owners Corporation does not have a noticeboard it must send all meetings and other notices to each owner directly. OTHER RESPONSIBILITIES OF OWNERS AND RESIDENTS Besides by-laws, owners and residents have a number of other responsibilities under section 116 and 117 of the Act: < An owner or occupier must not interfere with any support or shelter provided by their lot for another lot or the common property. < An owner must five the Owners Corporation at least 14 days notice before altering the structure of their lot. The notice must describe the alterations. < The Owners Corporation can stop alterations to a lot if it interferes with the common property or any support to the rest of the building. < An owner or occupier must not use or enjoy their lot in such a way which might cause a nuisance or hazard to another resident. < An owner or occupier must not use or enjoy the common property in a way that may interfere unreasonably with another resident's use and enjoyment or common property of their lot. TENANTS Tenants are as much a part of their strata community as owners are. They have the same rights and responsibilities. The Owners Corporation cannot prevent an owner from renting their premises. All information supplied by the Office of Fair Trading www.fairtrading.nsw.gov.au Strata Call

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LESSON 4: WHO IS RESPONSIBLE FOR REPAIRS? Responsibility for repairs is straightforward - the Owners Corporation must repair common property, owners must repair anything within their lot. However - and this can be the difficult part - it is not always clear what is common property or what is the individual lot. The basic rule is that everything inside the airspace of the unit, including all internal walls, fixtures, carpet and paint on the walls is usually the 'lot' and therefore the responsibility of the lot owner. Everything outside the airspace including walls, windows, doors, and tiles fixed to the floor and boundary walls is usually common property and therefore the responsibility of the Owners Corporation. For clarification check your strata plan or contact the Department of Lands. As a general guide, the following applies. CEILING Owners Corporation must repair anything in the ceiling. WALLS Owners Corporation must repair anything in the boundary walls. The owner must repair walls within the lot. CARPETS The owner must repair and maintain carpets in the lot. The Owners Corporation repairs and maintains common property carpets, such as carpets and hallways. TILES Original tiles on boundary walls and floor are Owners Corporation responsibility. Tiles on internal walls are the owner's. LIGHT FITTINGS If it is recessed in the ceiling, it is the Owners Corporation responsibility. If it hangs into the lot, it is the owner's responsibility.

HOW DO YOU GET REPAIRS DONE? Contact the managing agent or secretary of the Owners Corporation and let them know the details of the problem. They may organise for minor repairs to be fixed without the need for a meeting. For larger, more expensive problems they should convene a meeting so that the Owners Corporation can decide on what action to take. If no action is being taken you can put a motion requesting repairs to the next meeting. You may also lodge an application for mediation with Fair Trading to move things along. The following are some frequently asked questions. All the answers are general starting points based on the typical common property questions. Don't assume they automatically apply to your scheme. WHERE DOES THE MONEY FOR REPAIRS AND MAINTENANCE OF COMMON PROPERTY COME FROM? Levies must be raised to do repairs. A motion is put to a general meeting to raise levies to cover the cost of work. The amount will be paid by the owners based on their unit entitlement. WHAT IF THE DAMAGE WAS ACCIDENTAL RATHER THAN CAUSED BY NEGLIGENCE? IS THERE A DIFFERENCE IN WHO HAS RESPONSIBILITY TO FIX IT? The Owners Corporation must repair common property and an owner must repair their lot - it does not make a difference how the damage occurred (whether accidental or negligence). If someone else damages your property, then like any damages claim, you may take legal action to recover the cost of repairs from that person. I HAVE FILLED OUT A MAINTENANCE FORM TO GET A REPAIR DONE WHICH IS TAKING TIME. WHAT SHOULD I DO? Speak to the Secretary or the Strata Managing Agent to find out how the matter is progressing. If the repairs are being delayed you can lodge an application for mediation with Fair Trading to try to settle the matter.

GARAGE ROLLER DOOR Repairs to the boundary roller doors are Owners Corporation responsibility.

SOME OF MY POSSESSIONS WERE IN THE GARAGE AND THEY HAVE BEEN DAMAGED. WHO IS RESPONSIBLE?

BALCONY Balconies are generally the responsibility of the Owners Corporation.

The owner or occupier is responsible for things inside their lot. They may be able to claim on their contents insurance policy.

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LESSON 4: WHO IS RESPONSIBLE FOR REPAIRS? COMMON REPAIRS There is a burst pipe in a bathroom - If it is the boundary wall, the Owners Corporation is responsible. If it is in an internal wall it is the Lot Owners, unless the pipe services more than your lot, in which case it is Owners Corporation responsibility. The water from the shower is not draining away Plumbing under the floor is the responsibility of the Owners Corporation. The shower head is not working properly - It is the Lot Owners responsibility.

problems coming in through external walls or the floor. The owner is responsible for the mould on their walls. Electricity inside my unit has been cut off or not working - The supply of electricity is the Owners Corporation responsibility. However any cabling within the unit's internal walls that only services the individual lot, is the owners responsibility. Water leaks onto my balcony from the unit above every time they water their plants - If water is running off common property, the Owners Corporation is responsible. If it is caused by over-watering by another owner or resident, that person is responsible.

The kitchen sink was broken and has caused water damage in both my unit and my neighbour's unit - Problems with everything in the airspace of a bathroom or kitchen including baths, toilets, sinks and dishwashers are the owners responsibility. However the Owners Corporation's building insurance may cover some of these fixtures for damage.

Our balcony door is damaged and won't close properly - This depends on when the scheme was registered. In older schemes (registered before 1 July 1974), the owner is responsible. In newer schemes (registered after that date), the Owners Corporation is responsible.

There is damp and mould in my unit - The Owners Corporation is responsible for water penetration

All information supplied by the Office of Fair Trading www.fairtrading.com.au

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OWNERS CORPORATION’S RESPONSIBILITIES

The Responsibilities of Owners Corporations

RECORD KEEPING

The Office of Fair Trading have information and fact sheets that are valuable to anyone who lives in a strata apartment. For those new to the executive committee knowing the responsibilities of the owners corporation and being familiar with the Strata Schemes Management Act is important. In fact, every apartment owner is a member of the owners corporation so it is important that everyone knows what the executive committee is maintaining on your behalf.

The owners corporation must record all details of notices given under the Strata Schemes Management Act or any other Act. Orders under these Acts, or by a public authority, local council or a court, must also be recorded and kept for at least five years. The following must be recorded for each notice: - & & ! !! $ " % $( - & # $& " & %&$ & % & % "'& - & & "$ " + ! & "$ $ - & & & "$ $ ) % " + The owners corporation must keep the following information for at least five years: - & % " "& "!% # %% - "# % " "$$ %#"! ! $ ( ! % !& - notices of owners corporation and executive committee meetings. Proxies given to the owners corporation must be kept for at least

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five years after the proxy expires. FINANCIAL RECORDS AND STATEMENTS

) $ ),% #%$) ( %' ) $ -) STRATA ROLL

The owners corporation must keep accounting records and financial statements for at least five years. These include:

The owners corporation must prepare and keep a strata roll. '%"" #*() ! &) . # $ " " )'%$ %' %) ' # $( ' #*() ' %' %' "%)

0 ' &)( %$( *) + ". $*# ' 0 & (( %%! $! &%( ) %%! %' () ) # $) % &%( )( $ , ) ' , "( $ %' ' % ) ) ) ' %*$ %' ! &) $ loose-leaf folder 0 ( %%! 0 " +. ' () '

0 ) %,$ ' ( $ # $ $ *()' " $ ' (( %' ( '+ % $%) ( %' ) %,$ ' ( $) $ ) $) ( *()' " $ address for service of notices. %""%, $ $ %'# ) %$ #*() ' %' %' ) %##%$ property and the strata scheme in general:

The owners corporation must prepare financial statements: 0 %' ) & ' % $$ $ %$ ) ) ) ()' ) &" $ , ( registered and ending no earlier than two months %' ) / '() $$* " $ ' " ) $ %' & ' % $$ $ %$ ) ) ) " () statement was prepared and ending no earlier

0 ) ()' ) &" $ $*# ' $ ' (( % ) * " $ 0 ) $ # % ) %' $ " %,$ ' $ $ *()' " $ address for notices 0 ) $ # % ) # $ $ $) ) ' ( %$ $ $ *()' " $ ' (( %' $%) ( 0 the total unit entitlements for the scheme and each lot insurance details 0 ) . " ,( %' ) ()' ) ( # ' %' ( % %,$ '( %'&%' ) %$( $ &*' ( ) (%# Strata Call

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" ! ! law stationers. LARGE SCHEMES

%18'4 +5 /+..+10 Workers compensation insurance

A large scheme is one with more than 100 lots. Parking and utility lots are not counted in the calculation. Some special provision apply to large schemes:

The owners corporation must have workers compensation +0574#0%' 9+6* #0 #22418'& +0574'4 9*'4' +6 +5 4'37+4'& 70&'4 the Workers Compensation Act 1987.

= < 0#0%+#. #%%17065 /756 $' #7&+6'& '#%* ;'#4 = #007#. $7&)'65 /756 .+56 #/17065 ':2'%6'& 61 $' 52'06 10 52'%+< % +6'/5 = #6 .'#56 691 3716'5 /756 $' 1$6#+0'& $; 6*' 190'45 %14214#6+10 (14 +6'/5 1( ':2'0&+674' 18'4

= ':'%76+8' %1//+66''5 1( .#4)' 5%*'/'5 #4' 016 2'4/+66'& 61 52'0& /14' 6*#0 #$18' 6*' $7&)'6'& #/1706 (14 #0; +6'/ ':'26 (14 '/'4)'0%+'5 ') $.1%-'& 5'9'4 2+2'5 70.'55 6*' 190'45 %14214#6+10 .+(65 6*' 4'564+%6+105 $; # 4'51.76+10 = 241:; 816'5 (14 #0 190'45 %14214#6+10 /''6+0) /756 $' 2418+&'& 61 6*' 5'%4'6#4; #6 .'#56 *1745 $'(14' 6*' meeting = 2'4510#. 016+%' 1( #.. 72%1/+0) ':'%76+8' %1//+66'' /''6+0)5 #4' 6*' /+076'5 1( 6*'5' /''6+0)5 /756 $' )+8'0 61 #.. .16 190'45 016+%' /#; 016 $' )+8'0 8+# 016+%'$1#4&5

Voluntary workers insurance

LEVIES AND THE ADMINISTRATIVE AND SINKING FUNDS

Building Insurance !*' 190'45 %14214#6+10 /756 +0574' 6*' $7+.&+0) 70&'4 # damage policy with an approved insurer. This does not apply to an owners corporation for a strata scheme comprising two .165 +( 6*' 190'45 %14214#6+10 &'%+&'5 $; 70#0+/175 4'51.76+10 #0& 6*' $7+.&+0)5 +0 10' .16 #4' 2*;5+%#..; &'6#%*'& (41/ 6*' $7+.&+0)5 +0 6*' 16*'4 .16 #0& 01 16*'4 $7+.&+0) +0 6*' 5%*'/' +5 on common property. 22418'& +0574'45 #4' 6*15' #76*14+5'& $; 6*' 7564#.+#0 Prudential Regulation Authority for general insurance. &#/#)' 21.+%; /756 %18'4 6*' $7+.&+0) (14

!*' $7+.&+0) +0%.7&'5 190'45 < :674'5 #0& < 66+0)5 +:674' #0& < 66+0)5 #4' +6'/5 .+-' %#42'65 +0 %1//10 #4'#5 *16 9#6'4 5;56'/5 .+)*6 < 66+0)5 61+.'6 $19.5 5+0-5 5*19'4 5%4''05 %72$1#4&5 +06'40#. &1145 5618'5 %1//10 #+4 %10&+6+10+0) systems and intercom systems. !*' $7+.&+0) /756 $' 8#.7'& '8'4; < 8' ;'#45 #0& +0574'& (14 #6 least that value. Public Liability Insurance !*' 190'45 %14214#6+10 /756 +0574' 9+6* #0 #22418'& +0574'4 #)#+056 &#/#)' 61 2412'46; &'#6* 14 +0,74; (14 9*+%* 6*' 190'45 %14214#6+10 %17.& $'%1/' 4'52105+$.' !*' /+0+/7/ #/1706 1( 38

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A voluntary worker is any person who does work without any fee 14 #9#4& 14 9+6*176 ':2'%6+0) #0; ('' 14 4'9#4&

INSURANCES

= 2.#%'/'06 9*'4' &'5641;'& 14 4'+056#6'/'06 9*'4' &#/#)'& 1( 6*' $7+.&+0) $#%- 61 6*' 5#/' %10&+6+10 +6 9#5 +0 9*'0 0'9 #0& = 2#;/'06 (14 4'/18#. 1( &'$4+5 #0& 6*' 2#;/'06 1( architects and others whose services are needed for the replacement or reinstatement.

!*' 190'45 %14214#6+10 /756 +0574' 9+6* #0 #22418'& +0574'4 #)#+056 #0; &#/#)' 6*#6 +6 /#; $'%1/' .+#$.' (14 9*'0 # 2'4510 &1'5 81.706#4; 914- (14 6*' 190'45 %14214#6+10 +0 6*' $7+.&+0) 14 on the common property.

!*' 190'45 %14214#6+10 /756 .'8; %*#4)' 190'45 +0 6*' 564#6# scheme to raise enough funds to carry out its duties. All levies /756 $' 914-'& 176 +0 2412146+10 61 6*' 70+6 '06+6.'/'065 1( '#%* lot. Administrative fund !*' #&/+0+564#6+8' (70& +5 (14 &#; 61 &#; 4'%744'06 ':2'05'5 !*' #/1706 +0 +6 /756 $' '017)* (14 6*' 190'45 %14214#6+10 61 2#; +65 ':2'05'5 = for the cost of looking after common property and personal property of the owners corporation = (14 6*' 2#;/'06 1( +0574#0%' 24'/+7/5 = (14 #0; 16*'4 4'%744'06 ':2'05'5 16*'4 6*#0 #/17065 %18'4'& $; 6*' 5+0-+0) (70& 14 $; # 52'%+#. .'8; Sinking fund The sinking fund is to cover future capital needs. The amount in 6*' (70& /756 $' '017)* 61 %18'4 #.. 6*' 190'45 %14214#6+10 5 ':2'05'5 = (14 2#+06+0) 1( %1//10 2412'46; (14 1$6#+0+0) 2'4510#. 2412'46; ( 6*' 190'45 %14214#6+10 ') /19'45 14 9#5*+0) /#%*+0'5 = (14 4'0'9+0) 14 4'2.#%+0) #0; < :674'5 10 6*' %1//10 2412'46; #0& #0; 2'4510#. 2412'46; 190'& $; 6*' 190'45 %14214#6+10 = 61 4'2.#%' 4'2#+4 14 /#-' )11& 6*' %1//10 2412'46; (14 #0; &'$65 16*'4 6*#0 #/17065 %18'4'& $; 6*' #&/+0+564#6+8' (70& (14 16*'4 %#2+6#. ':2'05'5 Ten year sinking fund plans .. 5%*'/'5 6*#6 %#/' +061 ':+56'0%' 10 14 #(6'4 '$47#4;

#4' 4'37+4'& 61 *#8' # 6'0 ;'#4 5+0-+0) (70& 2.#0 (14 6*' .+(' 1( 6*' 5%*'/' !*' 2.#0 *#5 61 $' 4'8+'9'& #6 .'#56 '8'4; < 8' years. .&'4 5%*'/'5 9'4' #.51 4'37+4'& 61 $')+0 6*'0 ;'#4 5+0-+0) (70& 2.#00+0) (41/ #;

#.6*17)* 6*'5' 5%*'/'5 *#8' $''0 )+8'0 /14' 6+/' *'%- 9+6* #+4 !4#&+0) (14 &'6#+.5 Transfer of money between funds The owners corporation can transfer money from one fund to the 16*'4 14 /#-' # 2#;/'06 (41/ 10' (70& 6*#6 5*17.& *#8' $''0 paid from the other. But the owners corporation must make a .'8; 61 4'2#; 6*#6 (70& 9+6*+0 6*4'' /106*5 #(6'4 6*' 64#05('4 1(

OWNERS CORPORATION’S RESPONSIBILITIES monies. Setting Levies Levies must be set at each AGM. When a levy is to be set, a budget must be given, showing the existing financial situation and an estimate of receipts and payments. The budget can be given out with the notice of the meeting or at the meeting before voting on the levy motion. The motion to set the levies must show the amount for each fund and be approved by a majority vote. The owners corporation may decide to allow payments by instalments. After the levies are set, the Treasurer must write to the owners and tell them the amount to pay and the date to pay. The notice only has to be given once. Extra levy If the owners corporation has to pay a debt that was not budgeted for in the administrative or sinking fund estimates, a levy must be set at a general meeting and the amount collected paid to the administrative fund.

money they are owed under the contract. OTHER RESPONSIBILITIES Owners corporations also have the following powers and obligations: = 1 +557' # 016+%' 10 # 2'4510 61 %1/2.; 9+6* # $; .#9 when the owners corporation or its executive committee passes a resolution that there has been a %1064#8'06+10 1( 6*' $; .#9 +0 37'56+10 = 418+&' 564#6# 5%*'/' +0(14/#6+10 #5 4'37+4'& $; # Section 109 Certificate for prospective purchasers 9+6*+0

&#;5 1( 94+66'0 4'37'56 = Allow owner or a person with the owner’s consent to inspect the records of the strata scheme, and collect an inspection fee. = 19'4 61 )4#06 $; 52'%+#. 4'51.76+10 # .+%'0%' 61 # .16 owner to use common property generally or for a ‘once only’ purpose purpose. Adjudicators can make decisions on disputes or complaints which have not been resolved by mediation, and have power to settle disputes over the granting of licences over common property. = 1 &+5/+55 51/' 14 #.. 1( +65 ':'%76+8' %1//+66'' = To notify those holding a priority vote of all meetings where there are agenda items where a priority vote may be exercised.

Interest and discounts on levies An unpaid levy gains interest at he rate of 10% simple interest a year if not paid within one month after it is due. The owners corporation cannot increase or decrease the interest but it can make a special resolution to charge no interest. Unpaid levies, including interest, can be recovered by the owners corporation as a debt in court.

Strata scheme lot owners may be liable for land tax. For more information visit www.osr.nsw.gov.au. Two-lot schemes ( 190'45 14 691 .16 564#6# 5%*'/'5 %*115' 61 *#8' 6*' 5%*'/' 5 #%%17065 #7&+6'& 6*' #7&+6 +5 016 0'%'55#4+.; 4'37+4'& to meet the Australian Auditing Standard.

An owners corporation may make a special resolution to give a 10% discount where a levy is paid before the day it is due. Payment made on the day it is due does not attract the discount.

Fire safety inspections

Legal action

The owners corporation is responsible for ensuring that access to all parts of the scheme is provided for necessary first safety inspections.

Should an owners corporation wish to commence legal action of any type in its administration of the scheme, (including the obtaining of legal advice), where payment of money is involved, specific steps must be taken. Firstly, the decision to commence legal action will often have to be approved by a general meeting of the owners corporation (by majority vote). Secondly, where the estimated costs of legal action have been disclosed under the Legal Profession Act to the owners corporation this must be passed on to all lot owners and executive committee members within seven days of this information being given to the owners corporation. When an owners corporation undertakes residential building work and contractual dispute with the builder or tradesperson arises, the owners corporation can take the matter to the Consumer, Trader and Tenancy Tribunal. This can happen even if the builder or tradesperson invokes the Building and Construction Industry Security of Payment Act 1999 to claim any

Pesticide notification 41/ '$47#4; 6*' ! '56+%+&'5 ')7.#6+10 4'37+4'5 that residents of multiple occupancy dwellings must be notified when licensed pest controllers apply pesticides to the internal or external common areas of their residence. The rules apply to residential strata, community and company title schemes consisting of three or more dwellings, retirement villages, and caravan parks with long term residents. The person responsible for organising the pest treatment must make sure that residents are given at least five working days notice. Notice of the treatment can be given in person, by fax, by email or telephone, by post, in letterboxes, under doors or by placing it on common notice boards and near the main building entrance. Full details, fact sheets and blank notice forms are available from the Department of Environment and Climate Change NSW Strata Call

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INCREASING The Value Of Your Apartment By Barry Hyland

W 42

hen an apartment building is conceived it contains the dreams of the architect and developer. Then, when it is completed, the building is handed over to a management team to ensure these dreams become reality for the new owners.

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INCREASING THE VALUE OF YOUR APARTMENT

If a building is not properly managed it’s value will fall quickly. Fortunately, most purchasers are becoming more prudent and will obtain a Strata Report. This reviews the performance of the Owners Corporation, the condition of the building, notes any major upcoming expenses (such as lifts or cooling towers), and the availability of the building’s Sinking Fund reserves to cover such repairs or replacements. A well-maintained and professionally managed property will present favourably when compared to other buildings, and stands the best chance of appreciating in value. Ultimately, the test of whether a building is well managed or not is reflected in the resale prices of individual apartments. Professional asset, facilities and building management have evolved from the early days of unsupervised and unqualified ‘caretaker-cleaners’ who often lived on the premises. As strata legislation became more complicated and environmental demands increased, so did the need for expert guidance on occupational health and safety regulations, security, financial, accounting, insurance and legal issues. That’s why Body Corporate, Community

Associations and individual owners now use professional building managers, whose roles extend way past traditional repairs, cleaning, maintenance and gardening duties. Waterpoint Asset Management (WAM) is one of the fastest growing Facilities Management groups in Sydney. It manages more than 1,200 apartments in Meadowbank and Rhodes, and has just now won tender for Australia Towers - the first residential building at Sydney Olympic Park. “It is not uncommon for the total asset of a large strata development to be worth hundreds of millions of dollars, and it’s our job to ensure everything operates efficiently and looks its best at all times,” says Daniel Brown, Senior Building Manager with WAM. “A professionally managed building contributes greatly towards a harmonious community and asset value of the property.” When residents move in, WAM presents them with a ‘welcome pack’ containing essential information about the building, the facilities, the services and their apartment.

“We adopt the hospitality approach to building management service where the needs of the residents always comes first,” Mr Brown says. “We try to assist residents wherever we can, and are happy to be the first port of call when they have issues to raise.” WAM has established a new office on the ground level of Australia Towers. Here, as well as the myriad of building management responsibilities, it operates the first full service real estate agency in Sydney Olympic Park undertaking leasing and re-sales of apartments in the 24-storey Australia Towers building and surrounding areas. WAM currently manages more properties for investors at Australia Towers than any other agency, and has already successfully negotiated a number of re-sales within the development. The new Waterpoint Asset Management office is open from 10am to 5pm (Monday - Friday) and 9am to 12noon (Saturday) on the ground floor of Australia Towers, corner of Australia Avenue and Herb Elliot Avenue, Sydney Olympic Park. Further information is available on 8878 2888. Strata Call

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PASSIVE SMOKING

PASSIVE SMOKING It is a lovely balmy evening, you open the doors and windows to let a breeze through and are confronted by the cigarette smoke coming from your neighbour’s balcony. It’s not pleasant, it is a health hazard but what can you do about it, especially as the person is smoking on their own property. The Sunshine Coast Daily recently reported that “lighting up a cigarette on your apartment balcony will be a thing of the past if smoking by-laws are enforced by body corporate committees across Queensland. “The dangers or passive smoking prompted regulations to prohibit smokers from smoking in the workplace, restaurants, airports and shopping centres and now there is a push to prevent people smoking on their own balconies.” The article reported that “smokers were entitled to smoke within their own unit but the body corporate was now able to pass a by-law which prohibited smoking on balconies within the apartment complex or any part of the common property.” “Under the Body Corporate and Community Management Act 1997 a body corporate can set by-laws such as prohibiting smoking, as the legislation gives power to the body corporate to impose such rules.” Similar reactions are occurring in other states. In NSW, Daniel Russell, Partner with Chambers Russell was asked whether by-laws could be made banning people from smoking on their balconies. “The main issue here is that balconies are usually within lots, and hence are the private property of lot owners. The question is then whether the owners corporation’s power to make by-laws extend so far as to regulate the conduct of the owners and occupiers in their own property,” Daniel said. 44

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“In Salerno v Proprietors of Strata Plan 42724 (1997) 8 BPR 15,457 (a decision of Windeyer J of 8 April 1997) the Supreme Court upheld a by-law prohibiting smoking in lots. The decision concerned a commercial strata scheme, but the principles seem sufficiently general to suggest that an owners corporation will generally have the power to make such a by-law.” That by-law however could be challenged and over turned. “Even though it may be within the power of an owners corporation, Strata Schemes Adjudicators have specific powers to overturn by-laws having regard to the interests of all owners in the use and enjoyment of their lots or the common property (see section 157 of the Strata Schemes Management Act 1996, which concerns behavior that causes a nuisance.) The Common Law of nuisance might also still have some application. “In New South Wales the Consumer, Trader and Tenancy Tribunal has held that smoking can be such a nuisance under section 117 (Owners Corporation SP 49822 v May & Ors (Strata & Community Schemes (2006) NSWCTTT739) although an Adjudicator in Queensland came to the opposite conclusion on substantially the same issue in Admiralty Towers (2011) QBCCMCmr 264 (23 June 2011). “The possible indirect application of the Smoke-free Environment Act 2000 should always be considered, but it does not specifically seek to address the issue of smoke within or passing between private residences.” For now there is no single answer. If your neighbor is reasonable it may be that you can agree they will not smoke on their balcony at certain times of the day when you may be using it or have the doors open. Tread carefully as this is obviously a very emotive issue. This article courtesy of BCS Strata Management.

Exclusively Strata, it’s our policy.

Strata Insurance Specialist Call us today 1300 361 263 or visit www.chu.com.au

xxx_CHU_STRATA_CALL_ADVERT_M1.indd 1

12/03/13 9:45 AM

IT’S A WHOLE LOAD OF BULLDOG!

It’s A Whole Load of Bulldog! By-laws from a Dog’s Perspective So you want to talk by-laws? Let me, Dame Isobella, tell you what I think about by-laws. You may recognise me from my photo, I am a French Bulldog. Currently, I live the highlife, 16 floors up to be exact. I have been in residence here for approximately five years and I have a routine that would make the army proud. Apartment living suits me to perfection. I go about my business and as far as I know, I have caused no problem for my mistress or anyone else in the building for that matter. Lately however, I have been attracting some unwanted attention. At first I thought the glances were those of admiration since acquiring my gorgeous new pink pearls. Now, I know better and it has been simply mortifying. “How much do you reckon she weighs,” our new neighbour asked his partner. “She would definitely be close to 15 kilos,” came the answer.

in fairness to the new resident, I was in breach of the bylaw and I must go. Well my mistress wasn’t taking that lying down – unlike me. It was going to take more than an eviction notice to get me up off my perfectly groomed butt. The new resident – his name is Chad – jumped up and explained to the committee that they had totally missed his point. He patted me on the head and explained how he would love Izzy to stay – that is his pet name for me, you know. The point he was making is that his dog is older, well trained and also perfect to have live in an apartment. The decision should be based on suitability and not weight. He was right. This by-law was totally unfair. Great Danes make great apartment pets and they weigh upwards of 40 kilos. In my case, my argument is this. My routine has not changed in five years. I have never caused anyone in the building a moment’s grief and I am up for a pat from anyone – even the snotty-nosed kid on the 5th Floor who sticks his fingers in my eyes.

I was disgusted. Can I tell you, I have never weighed 15 kilos in my life. I may have put on a few extra kilos over the past few years, but I would still only be tipping the scales at around the 13 mark.

It doesn’t matter what size the dump is, it still has to be picked up. And as for one of the executive police, Mrs Drysdale, no dog could out-yap her annoying little poodle, Prissy. I never bark indoors. I have been trained well and I know it is just not polite.

And who was he to comment on my girth? That sure ain’t no greyhound standing there pointing the finger. Someone get that boy a mirror!

So, I know this story sounds familiar. Remember Hugo? Same breed, same stupid by-law, same weight restrictions. They tried to kick him out as well.

In fairness to the new guy, he was not really having a go at me about my weight. It turns out, that sadly, he had to give his much loved hound away to move into our building. His older Spaniel tipped the scales at 15 kilos – also a little hefty for the breed. So turns out the glances at me were not derogatory – simply calculative.

Anyhow, after much mediation, Chad was allowed to bring his dog Bruno in to be “assessed” by the executive committee. They met him and gave the green light for him

You see, our by-law stipulates that all canine residents must be 10 kilos or less. When I moved in, I admit my bones were a more prominent feature but now in my seventh year – it is a battle to keep the kilos off. I think we all know what I am talking about – right girls? Well the neighbour who was unable to have his dog obviously put in a complaint to the powers that be about yours truly. The executive police decided that 46

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IT’S A WHOLE LOAD OF BULLDOG!

to be able to stay. Of course, that opened the door for me to stay as well. Our new by-law now stipulates that a dog who has been living in the building for a period of two years or more and has gained weight will not be subjected to the undignified process of threatened eviction due to weight gain.

Special consideration will also be given to dogs who have previously resided in an apartment and are well adapted to that way of life. And, if any dog wishes to be fat and happy then the Owners Corporation will respect that decision without prejudice. OK‌so I added the latter for good measure. Woof Woof!

By Dame Isobella

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RE-INVENTING GRANDEUR 21 BRAND NEW RESIDENCES NOW SELLING These 1, 2 & 3 bedroom apartments deliver grand interior spaces, with uninterrupted views across the city skyline, Harbour Bridge, Opera House and out to The Heads. Uniquely crafted by SJB Architects, features include parquetry floors, expansive balconies with floor to ceiling glazing, warm timbers, natural stone and onsite parking.

To arrange a private viewing of the display suite, please contact: ANDREW HOGGETT 0412 208 614 JASON BOON 0418 671 494 CAROLINE FAGERLUND 0414 430 094

10wyldestreet.com.au Award winning architects

The image in this document is computer generated and indicative only. Completed apartments may vary from the image shown. www.ibmdesign.com

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02 9191 4141 www.turnbullbowles.com.au

Providing tailored solutions for your strata or building and construction issues

TURNBULL BOWLES LAWYERS IS A SYDNEY CITY LAW FIRM SPECIALISING IN STRATA & COMMUNITY TITLE LAW AND BUILDING & CONSTRUCTION LAW AND HAS SUCCESSFULLY REPRESENTED: Owners Corporations I Individual Lot Owners I Builders I Developers I Sub-Contractors I Individual Property Owners

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Q&A

Q&A

Living in strata can be a complex thing. Residents, old and new, can spend a lot of time trying to understand the strata hierarchy to get their problems sorted. Read what StrataCall's legal experts, Daniel Russell, James Moir and Michael Pobi have to say about some of the problems facing people living in strata.

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Q&A

In regards to by-laws for works etc affecting common property, who decides whether a by-law is required or not? I have asked a few strata managers whether they would apply by-laws to some example situations and I have received different sets of answers from each.

Q

So does the Owners Corporation decide what requires a by-law (within reason) and then does the strata manager then just administer it – or – does the strata manager decide what requires a by-law? My assumption was that when a request came into the EC, decisions would be made as to whether by-laws are required. Are there any guide lines?

The law decides whether or not a by-law is required and in short, if works alter common property, then it most likely is, whether or not it’s common property being altered is usually straightforward too and a matter of fact, not opinion.

A

Having said that, the biggest consideration is whether an owner will be responsible for maintenance and repair after the work is done. If yes, then a by-law is needed. So whilst the EC can say whether they want an owner to be responsible for future maintenance of altered common property, they do not decide if a by-law is needed. The EC might think it’s insignificant enough work not to warrant a by-law, however the extent of the work is irrelevant. The relevant questions are (1) is common property being altered and (2) who will be responsible for maintaining it. If the answers are (1) yes and (2) the owner, then you need a by-law. By-laws require a special resolution – which is where no more than 25% of owners present at a meeting (including by proxy) and entitled to vote (ie financial) vote against it. So you do need 75%, but it 75% or those voting at the meeting, not 75% or everyone in the strata scheme (Because not everyone turns up to the general meetings). A change of by-laws is on the agenda for a general meeting , which everyone receives at least a week before that meeting. If owners don’t read the notice or attend the meeting, and a by-law is passed or changed (eg banning pets), then it’s basically bad luck. You have to keep aware of what is going on.

and have a communal letterbox system near the clubhouse. Surely we are entitled to keep our individual letterboxes. They say the lawns are being ruined by the postman delivering to individual houses.

A

I assume your lot is part of a strata scheme within a community association.

Assuming again that your lot backyard is limited to the airspace above the ground (which would be the case unless there is some specific notation on the strata plan) your proposed works sound like they involve erecting a new structure on the common property. In this circumstance your works will most likely be caught by section 65A of the Strata Schemes Management Act 1996 (as it applies in accordance with the controlling case law). Accordingly the owners corporation must first pass a special resolution specifically authorising the particular action you propose. If you are having ongoing obligation to maintain the works (which the owners corporation is likely to require) then a by-law will also need to be put in place. In any event, it is advisable that you have a by-law in place to prevent the works amounting to a breach of another by-law (there is likely to be a by-law requiring the appearance of your lot to be in keeping with the rest of the scheme). On top of this, however, the Community Association may have strict rules or architectural guidelines, which will be binding on both you and your scheme under the Community Management Statement and may not allow for the works you propose. A by-law in the Community Management Statement to control or preserve the essence or theme of the development can only be amended by a unanimous resolution of the Community Association. There may also be other relevant by-laws in place in either your scheme or under the Community MWdagement Statement which needs to be complied with.

We are in a development that is community title. Are we able to put a shade structure in our backyard without permission of the owners corporation?

LETTERBOXES: What can and can’t be done with the letterboxes will depend on exactly where they are (common property, or community association property). By-laws in the strata scheme and/or the Community Management Statement may regulate the issue and the works that are required. If the works affect common property in a strata scheme there is likely to be a special resolution under section 64A required.

Also, they want to get rid of our individual letterboxes

Answer: Daniel Russell – Chambers Russell

Answer: James Moir – JS Mueller & Co Lawyers

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Q&A

I don’t have my own car so a lot of the time my space is empty, but if I am working into the early hours of the morning I will often bring a work car home. Just recently someone in the building has been parking their car in my space. I left a note on the car telling them it was a private car space and not to do it again. I got a note back in my letter box with a rude remark on it. I spoke to the strata manager and he said there was nothing he could do and it was my problem.

Q

On Friday I bought a car home from work because I did not finish until 2am. I could not use my car space so I had to park out in the street. I went out at 10am and found I had a ticket because the parking is one hour after 8am. I am not annoyed but will wear the ticket this time but I don’t see why I should put up with someone parking in my space.

Following changes to the Local Government Act that outlawed wheel clamping and detention of cars (subject to certain exceptions), the Department of Local Government published a booklet on the subject.

A

http://www.dlg.nsw.gov.au/Files/Information/vehicle. pdf Generally speaking the Police and Council will not get involved (with some exceptions). The most successful solutions are preventative barriers – for example, you could propose a by-law allowing you to install a lockable removable bollard in your space, or you could propose the same as a scheme-wide approach paid for by the owners corporation (again under a by-law). There may also be scope for owners corporations to set up parking schemes with various types of enforcement measures. This exercise is however quite involved and not without risk, and the prohibitions on clamping and detention of cars in the Local Government Act must be carefully adhered to. If the offender is an owner or occupier you could propose a by-law to prevent parking in other people’s car spaces, which could then lead to notices to comply with the by-laws and fines for breach of by-law (although generally the issue in this regard –which is the same issue with proving abuse of common property car spaces – is proving that the person in question actually parked the car. Answer: Daniel Russell – Chambers Russell Lawyers Our kitchen floor tiles are broken in our unit. The strata management are saying they will not fix them as the original owner put the tiles down. Are the tiles under common ground and covered by the strata?

Q

If the floor tiles are original they are most likely common property. If they are damaged the OC needs to repair/replace them. Problems arise when like for like cannot be found.

A

If a previous owner replaced them without authority, the tiles are still probably common property. If someone alters common property, it is still common property. The only rights the OC have are against the person who did the unauthorized work, not the owner for the time being (if owners have changed). The OC can also pass a special resolution to put common property back or if it is repairs/replacement (see section 65A(3)). Answer: James Moir – JS Mueller & Co Lawyers We have a case before the CTTT and it is in the final stages. A person has just bought in the block and she is related to the member hearing the case. Do we need to advise someone. Is this a problem?

Q

Consumer, Trader and Tenancy Tribunal Regulation 2009 5 Disclosure of members’ interests

A

(1) A member: (a) who has direct or indirect interest in a matter the subject of present or proposed proceedings of the Tribunal, and (b) whose interest appears to raise a conflict with the property performance of the member’s duties in relation to the consideration of the matter, must, as soon as possible after the relevant facts have come to the member’s knowledge, disclose the nature of the interest to the Chairperson (and, if the proceedings have commenced, to the parties in the proceedings). (2) If the member is the Chairperson, the nature of the interest must be disclosed to the Minister. (3) After a member has disclosed the nature of an interest in any matter, the member must not, unless the Minister or Chairperson otherwise determines, exercise, or continue to exercise, the jurisdiction of the Tribunal in the proceedings. Answer: Michael Pobi We had an EGM last night and one particular individual was very unsettling to the meeting. We had some presenters attend and he purposely damaged their display, was abusive to almost every other participant in a very derogatory way, was personally insulting, and intimidating when votes were cast. Essentially the presentation was a waste of their time as he heckled throughout it and was abusing them.

Q

Is there anything formal that can be done to control this behavior by by-law (I assume not). I fear we will struggle to get quorums in the future as no-one will want to sit through that again! Strata Call

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Q&A

Whilst the right to attend and vote at meetings (and the implied right to speak, which may attach to the right to vote) are sourced from the legislation and arguably cannot be displaced by way of by-law, other aspects of meeting procedure are potentially open to regulation through by-laws, and even by way of procedural motions passed with the meeting or directions from the chair (provided that the Act and regulations do not already deal with the issue).

A

Ultimately the problem is probably more in the realm of enforcement, given that ejecting a disruptive individual may violate their voting rights and their right to observe and participate in meetings, and enforcement of by-laws by notice to comply or Adjudicator’s orders depends on an ongoing or persistent breach. Answer: Daniel Russell – Partner – Chambers Russell We have bought an investment unit in Pyrmont and our tenants rang us the other day and told us there is a unit opposite them and the residents in that apartment have no curtains. They are a young couple who not only walk around in the nude but have no issue with anyone looking into their apartment during bedroom sports - and they leave the light on. Do we need to contact the strata manager of that block? Our tenants want to move out because they have a young family and they don't want to have to pull their curtains 24/7. They are good tenants and are only two months into a 12 month lease. Surely the other building has a bylaw to cover offensive behaviour? And can it be enforced if the complaint came from a neighbouring building?

Q

A

Even if the by-laws covered the issue, they only bind owners, mortgagees/covenant chargees in possession, lessees and occupiers (section 44 of the Strata Schemes Management Act 1996). It might be said that the behaviour amounted to a use of the lot causing a nuisance under section 117 of the Act, but a nuisance is only caught by that section if it is caused to the occupier of another lot. Given that in this case the occupiers are in a separate strata scheme, neither the by-laws nor section 117 will assist. There is the possibility that the conduct amounts to a tortious nuisance at common law giving rise to a right to sue for damages (such as the cost of replacing your tenants). Whether or not there would be a good cause of action (which is by no means clear) it is almost certainly not commercial to pursue it. The conduct might also amount to a public nuisance at common law, which is a common law crime. However, leaving all these issues aside, the simple answer is that the behaviour most likely amounts to a criminal offence under Division 1 "Offensive Behaviour" of the Summary Offences Act 1988, which a matter for the Police to deal with. Answer: Daniel Russell – Partner – Chambers Russell 54

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A group of about 10 blokes who use to go to school together are gettting together and we are going to do a development. We have bought the land and we are looking at building about 22 apartments. We are just in the process of looking at construction companies to do the job but when is the best time to bring in a strata manager. Is it now before construction or during construction. I know by completion it is too late because of 109's etc and we really would need a strata manager to help us draft by-laws etc. Sorry if this is a stupid question.

Q

A You should be considering not only the structure of the by-laws at an early stage, but also related structure and titling issues, such as whether your development could benefit from staging, the use of stratum lots, or even the use of community title. These issues arise not so much on the basis of the scale of your development but on its peculiar features. Obviously titling issues are a fundamental part of your project which should be explored as early as possible, however this is no less true of by-laws. By-laws are powerful things, and the drafting and implementation of a quality system of bespoke developer by-laws, including exclusive use by-laws, if you are going to do it, should be considered an integral part of your development. Getting it right on these titling and structure issues-including a quality set of bespoke by-laws--can add a lot of perceived value to the project, as well as altering bottom-line concerns (such as the initial levy budgets as indicated by AT). Your planning consultants hopefully have given you some guidance in this regard, however engaging experts such as strata managers and strata lawyers (and preferably both) at an early stage on these issues would be highly beneficial. Answer: Daniel Russell – Partner – Chambers Russell

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GST and Strata -

The basics you need to know.

By Peter Dawkins - Senior Client Director Kelly+Partners Goods and Services Tax (GST) is a broad-based consumption tax imposed at a rate of 10% on most things that Australians buy, use or consume. GST also applies to strata plans and bodies corporate. Pretty simple isn’t it? Well, yes and no. It is the exceptions to the GST rules, the allowances made and concessions written into the GST legislation which make matters more complex than you may think. For instance, the question of whether a strata plan can class itself as a not-for-profit entity and use the higher registration threshold that has been allowed by the ATO since July 2009 is a contentious one. The strata manager cannot assume every strata plan is not-for-profit. Get GST wrong and the consequences can be enormous given the penalties and interest that the ATO can impose.

GST & STRATA BY PETER DAWKINS OF KELLY+PARTNERS Getting GST right is one of the fundamentals in managing a strata plan’s financial reporting requirements. It is the obligation of every BAS agent charged with the responsibility of filing and organising the remittance of GST to be fully aware of the legislation and the potential complications that can and do arise when dealing with strata plans. As a starting point, we have set out below some GST basics applicable to strata plans. This is by no means an exhaustive list and within each rule you are bound to find exceptions. When does a strata plan have to register for GST? The GST legislation applies two threshold tests to determine whether an entity has to register for GST: a backwards-looking test of turnover for the last eleven months and the current month, and a forward-looking test of the projected turnover for the current month and the next eleven months. If the total of either test exceeds the relevant threshold, the entity must register for GST from the beginning of the current month. The turnover tests do not include income that would not include GST for a registered entity. Furthermore, an entity can register to account for GST on a cash basis or non-cash (accruals) basis, but once turnover exceeds $2,000,000 the accruals basis applies. The threshold for most entities is $75,000 per annum excluding GST. The threshold for not-for-profit entities is $150,000 per annum. Since July 2009, the ATO has accepted that some strata plans may qualify as not-for-profit entities for GST purposes (but not for income tax purposes) under certain conditions. A strata plan may not qualify as a not-for-profit entity for GST purposes if: H It rents out common property which results in a distribution of income, either directly or through a reduction in levies. H It intends to make a distribution of funds (other than a reversal of past levies). H It raises funds which are not for future maintenance but which are raised specifically to invest and provide a return to owners. Whether a plan qualifies as a not-for-profit entity needs to be considered on a case by case basis and it may be prudent to apply for a private ruling from the ATO. Please note the Government is currently looking into placing further restrictions on not-for-profit entities which may result in additional complexity to this area. How long must a strata plan remain registered for GST? Because each of the threshold tests for registration cover a period of twelve months, it is required that an entity registering for GST

remains in the GST system for at least twelve months and, because the two threshold tests overlap, usually longer. Only when an entity is below the applicable turnover threshold for both tests can it deregister for GST. For example, a strata plan with quarterly levies of $18,000 ($72,000 per year) is below the threshold and not registered for GST. If a decision is made to raise a special levy of $5,000, the plan’s turnover will be increased to $77,000 and, assuming the plan does not qualify as a not-for-profit entity, it must register for GST. If the special levy is passed at a meeting on 16 September and is payable on 1 December, the plan must register from 1 September and remain registered until the next 30 November, a period of 15 months. On what items does a strata plan have to charge GST? GST is charged on the consideration received for a taxable “supply”. A taxable supply must be made in connection to an enterprise the supplier carries on, must be connected with Australia, be made by a supplier who is or ought to be registered, and is not for something that is “GST-free” or “input-taxed”. Ordinary levies and special levies are taxable supplies. Certificate and inspection fees are taxable supplies. Interest from bank accounts and interest on arrears levies are input-taxed financial supplies and therefore do not attract GST. Why should a strata plan have an ABN if it does not need to register for GST? Having an ABN (Australian Business Number) is not compulsory, however an entity must have an ABN (or apply for one) to be registered for GST. Quoting an ABN on invoices, including levy notices, avoids “ABN withholding tax” being imposed on a strata plan. If a lot-owner happens to have an ABN and receives an invoice without an ABN, the lot-owner is obliged by law to withhold 46.5% of the invoice amount and send it to the ATO as “ABN withholding tax”. The supplier (the strata plan) then has to wait until it lodges its income tax return in order to claim the credit for the amount withheld. Having an ABN avoids this situation. How is GST reported in the accounts of the strata plan? The accounts of a strata plan registered for GST usually show income and expenses without GST. The balance sheet will include the amount of the current BAS statement and/or GST on other transactions where the financial year end does not coincide with the end of a BAS quarter, as a debtor (if it is a refund) or a creditor (if it is payable). The rationale behind not showing GST in income is that GST belongs to the government and not the entity that collects it,

Strata Audit Specialists

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GST & STRATA BY PETER DAWKINS OF KELLY+PARTNERS and GST in expenses is effectively reimbursed by claiming input tax credits on the BAS statements. Strata plans that are not GST-registered include GST paid as part of the expense to which it relates. Some accounting systems for strata plans that are GST-registered cannot exclude the GST from their reports, in which case it is acceptable to show gross income less an amount for the related GST included in the income, and gross expenses less an item for GST included in the expenditure. What happens when a strata plan leaves the GST system? The effect of deregistering an entity for GST is an often misunderstood area of GST legislation and so is frequently mishandled. If a strata plan’s turnover falls below the threshold required for GST registration, the plan can remain registered voluntarily or leave the GST system. If a decision is made to deregister a strata plan for GST, the plan must from the date of deregistration cease charging GST on levies and any other taxable supplies, cease claiming input tax credits for GST included in expenditure and attend to the lodgment of a final business activity statement (BAS). If a strata plan accounted for GST on a cash basis, the plan will need to include an adjustment for GST included in income and expenses in the period up to the date of GST deregistration, effectively requiring the final BAS to be prepared on an accruals basis. With respect to income an adjustment is required so to exclude from the final BAS income relating to the period after GST registration has ceased (therefore not including GST) and to include income upon which GST has been charged but which may not have been collected at the time of deregistration. For example, a strata plan accounts for GST on a cash basis and collected $22,000 in levies during a quarter. If the plan continues to be registered for GST, then GST collected that quarter is $2,000. However, if this is the last quarter the plan will be GST-registered, and assuming included in the cash collected of $22,000 is an amount for levies in advance of $3,000 (which were raised after deregistration and hence do not include GST) and there remains to be collected levies in arrears of $4,400 (including $400 GST), the GST required to be accounted for in the final BAS will be $2,127. This is comprised of 1/11th of $19,000 cash collected subject to GST (ie: $22,000 less $3,000) plus $400 GST to be collected relating to levies in arrears. In relation to the GST adjustment for expenditure, if the strata plan

has paid for any capital equipment or property improvements in the period it was GST-registered and received input tax credits for this expenditure, and the items representing this expenditure still form part of the common property at the time of deregistration, an adjustment may have to be made. This adjustment effectively reduces the GST previously claimed based on the remaining value of the related expenditure at the time of GST deregistration. For each item of expenditure, the amount of the adjustment required will depend on three things: F The original cost of the item, excluding GST. The three categories are: up to $5,000; up to $500,000; and more than $500,000. F The number of “adjustment periods” that have passed. An adjustment period ends on 30 June and is at least 12 months, so the first adjustment period may be 23 months. For the three categories of cost above, the number of adjustment periods required is: two; five; and ten; and F '2/ -?<</8> 7+<5/> @+6?/ 90 >2/ 3>/7

For example, a watering system was purchased for $4,400 in March 2009 and the strata plan deregisters for GST at the end of March 2011 at which time the watering system could be sold second-hand for $1,100. As the cost excluding GST is $4,000, the first category above applies (ie: up to $5,000 cost) and an adjustment must be made if less than two adjustment periods have passed since the expenditure was incurred. In this case, the first adjustment period is to 30 June 2010 and the second to 30 June 2011, so two periods have not passed before March 2011. The adjustment required is for the GST inherent in the lesser of cost

9< 7+<5/> @+6?/

A23-2 38 >23= -+=/ 3=

,/381 1/11th of $1,100). Therefore, the final BAS will require an additional payment or reduction in GST to be claimed, of $100. So there you have it. Some GST basics as applicable to strata plans and bodies corporate most of which you are probably aware of, some of which you may not be. The role of the BAS agent is a very attractive additional revenue stream for many strata managers but with it comes some onerous responsibilities and an obligation to fully understand the GST environment in which your strata clients operate. Finally, it is our understanding that the ATO are currently reviewing the area of GST for not-for-profit entities, so watch this space.

Disclaimer: The information contained in this article is general and is not intended to serve as advice. Users should not act or fail to act on the basis of information contained herein. Users are encouraged to contact a professional adviser for advice concerning specific 7+>>/<= ,/09</ 7+5381 +8C ./-3=398

We provide value-added, on time services, nationally to Strata Managers. We understand the pressures on Strata Managers.

Kelly+Partners is one of Australia’s leading accounting and business advisory practices.

We share the passion and commitment required Clients include strata managers, commercial and to successfully perform in this dynamic industry. Our dedicated strata audit team is backed by a vast residential property managers, real estate agencies, knowledge of taxation – income, capital gains, GST. investors, developers, construction companies, Email our specialists or phone on 02 9923 0800. commercial and residential builders.

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UNLOCKING THE SUSTAINABLE FUTURE

Unlocking The Sustainable Future The current strata scheme legislation in NSW will be the most significant hurdle to increased urban consolidation of our major population centres if reform is not delivered. The current framework requires that all strata owners must consent to the termination of a scheme.

In 2012, the Urban Development Institute of Australia NSW (UDIA NSW) prepared a legislative reform paper that advocates that when the consent of 75% of owners is received to terminate a scheme, then dissenting voters be afforded the opportunity to be heard in by an independent ombudsman. Below is a summary of the proposal and the rationale for reform.

the cost of renewal and redevelopment. AS a result it is financially irrational for an owners corporation to invest in required maintenance and strata buildings fall into disrepair.

Ageing buildings, their risk and financial costs

The financial burden for the maintenance of older buildings is also in many cases outside the capacity of individual owners or the means of the owners corporation to finance. As a result, owners are forced into a cycle of depreciating wealth as the building value deteriorates and are forced to reside or work in an inadequate built environment.

The first strata scheme in NSW was registered in 1961 with many existing schemes in buildings older than that. The lifecycle of most buildings is approximately fifty years. Unless maintained, often a significantly more economic cost than redeveloping, ageing strata buildings burden the community with significant social, economic and environmental cost.

The case study below provided by the UDIA NSW provides an example of a strata building in a state of disrepair and deemed uninhabitable. The strata scheme for this particular building cannot be terminated, and therefore redeveloped, because of one dissenting owner. The case study also demonstrates that there are compassionate grounds that must be accounted for in any termination proposal.

The financial cost to the community for the ongoing maintenance of common property in strata buildings, or maintenance necessary to meet existing building standards and other regulations, in many cases outweighs

Compromised Major Policy Incentives

THE RATIONALE FOR REFORM

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The NSW Government’s Metropolitan Strategy requires that between 60 70% of all new housing developed to 2031 will be provided within Sydney’s

existing urban footprint. This equates to roughly 450,000 new dwellings based on the forecasts provided in the Metro Strategy in 2006, which will likely be revised upward to account for increased population growth. UDIA NSW says the challenge for the future is that Sydney does not have an endless supply of what the Government calls, ‘major sites’, which are suitable for urban renewal. In fact, estimates from the Government indicate that while these major sites are currently contributing around 50% of the overall infill housing production, there is only roughly 10 years of supply left from these sites. Sydney will therefore be increasingly reliant on fragmented holdings and the renewal of strata schemes to provides its housing needs and to satisfy the Government’s strategy policy objectives. The Strata Schemes Management Act 1996 (SSM Act) requires a 100% voting threshold of the owners corporation to terminate existing schemes. This threshold, for a variety of reasons, is one of the most significant obstacles to the renewal of strata buildings. Fundamental reform of the current requirement for the unanimity to terminate strata schemes is fundamental to the NSW Government’s

UNLOCKING THE SUSTAINABLE FUTURE consistent with the will of a majority of owners, and therefore redevelop a site, is one of the principle constraints on new development which would otherwise meet community expectations for good environmental practice.

entitlements and the correct facilitation process with scheme owners, it is proposed that an administrator such as a licensed strata manager carry out any statutory obligations on behalf on the co-workers.

The degraded nature of ageing strata buildings, both individually and combined, reduces the amenity of particular areas. As a result, these buildings reduce the livability of the surrounding community. There is a clear policy nexus between strata reform and enhancing the social and urban fabric.

An Independent Review Process for Dissenting Voters

Economic growth and employment generating development projects correspond with strata reform. Without the capacity and legislative framework to realise the increased lot yield and investment potential, of sites with existing schemes, the economic potential of the State is limited. The existing framework requiring 100% unanimity to terminate schemes is a key limiting factor to redevelopment. THE WAY FORWARD A Reduced Threshold for Strata Scheme Termination

strategic objectives and renewal of the the urban fabric. The Metro Strategy itself identifies that, “Existing blocks of flats are likely to be redeveloped because of the... the provisions of the Strata Scheme Management Act 1996 which make them difficult to secure as a whole block to redevelop.’ The Metro Strategy continues, ‘Strata Title reform will be investigated to determine whether it can create opportunities for housing redevelopment that will add to the mix of housing.” Without strata reform UDIA NSW believes there will be limited capacity to meet the housing requirements within the existing urban footprint as defined by the Metro Strategy. Environmental, Economic, and Community Expectations The UDIA NSW also argues that the environmental impacts and ecological footprint of older strata buildings are, in a majority of cases, outside acceptable community standards and do not correspond with the concept of what would be considered as sustainable development. It says the inability to terminate existing strata schemes

Currently a 100% threshold vote is required by the owners corporation within a strata scheme to terminate that scheme. It is the UDIA NSW’s view that this is an unrealistic threshold to obtain in larger schemes in instances where a minority of owners or a single dissenter can prevent necessary redevelopment. It says that a 75% threshold to ensure that termination of of a substantial proportion of strata schemes for the purpose of redevelopment is realistically viable. A 75% threshold is also consistent with the existing framework for a special resolution and the threshold required to terminate a company. UDIA NSW recommends that the threshold vote for scheme owners be based on unit entitlements in an existing scheme. An important consideration in the approval process is how an approval mechanism deals with the right of additional stakeholders, in particular the rights of mortgages, tenants and developers. The onus is on the proponent to assess the risk of existing contractual arrangements between stakeholders prior to triggering scheme termination. Following the approval of scheme termination by the 75% threshold of unit

Following a resolution to terminate an existing scheme by 75% of owners, a review process must be afforded to dissenting scheme owners. The appeal process would be integrated with just compensation and compulsorily acquisition mechanisms in instances where an appeal is held in the proponents favour. UDIA NSW proposes that an independent Ombudsman with the authority to engage in mediation and decision making processes would provide the preferred mechanism to determine any appeals. The compulsorily acquisition process would be supported by and correlate with the provision of just compensation for the dissenting voter. The Ombudsman does not have the power to reverse the decision of an owners corporation unless he is of the view that just compensation cannot be provided to dissenting voters. The Ombudsman maintains the power to determine appropriate compensation for dissenting voters. The definition of just compensation must be clearly outlined to provide certainty to a proponent early in the process whether to proceed with a proposal. Implementation of Scheme Termination Stakeholders or scheme owners who wish to remain part of the new scheme in a redevelopment, as may have been agreed with a proponent or determined by the Ombudsman, require guaranteed rights to realise agreed participation in redevelopment. This could include a registered development contract with tradable rights to part title of the land. To provide certainty to stakeholders who wish to remain in a new scheme, the proponent must demonstrate to the Ombudsmen a financial capacity and commitment to redevelop a site. It is recommended that this commitment be guaranteed and implemented within a prescribed and reasonable timeframe for the benefit if remaining stakeholders in a redevelopment. Strata Call

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Maintaining Your Biggest Asset Buying an apartment can be the single biggest purchase or investment most people will make in their lifetime and maintaining this important asset is essential. Let it run down, whether it’s your home or your nest egg, and it will cost you in either the eventual sale of the property or in rent. Max Moretti, a Director of RHM Consultants, is an expert in building maintenance. He’s seen his fair share of buildings that have not been properly maintained. “It’s important to keep an eye on the fabric of the building and implement strategies to ensure that it’s kept in good condition. Buyers will over look your property if the paint is peeling, there is obvious mould and if the overall appearance is unkempt,� Max said.

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“Older buildings have the most problems as they start to age and are exposed to the weather. The most common problem we see is deterioration in the waterproofing materials. If your roof starts to leak you could end up with serious issues if not addressed properly immediately. Water can be very destructive,� Max warned. Having a regular maintenance schedule, no matter the age of the building, will ensure its condition is kept at its best and will also save money in the long term.

“Don’t let a $500 problem turn into a $5,000 problem.�

Unfortunately, older buildings tend to have long-term older residents who may not have kept the building’s fabric up-to-date because of the perceived cost and some are at the stage of needing extensive repair. While the sinking fund should cover this, sometimes it doesn’t and residents may have to raise special levies to cover the costs.

Good tenants will also be harder to attract if a building is not well looked after. Investors often forget this and can be the hardest apartment owners to convince that work needs to be done.

Remember, it is a legal requirement that the owners corporation or body corporate keep the common property in good repair, which means pretty much all of the building’s structure.

StrataCall

Max suggests that a strict strategy of maintenance be put in place – this should coincide with assessments in the sinking fund – and recommends that a building inspection be undertaken by a suitably qualified engineer once every five years. “Get an inspection sooner if you notice something wrong and make sure areas such as guttering and stormwater connections are regularly maintained – this means cleaning out gutters and checking for leaks.� Other issues to look out for which can indicate something serious are: 3 - ( !) 3 - * ( & $ *( * %$ 3 %$ ( * $ ( 3 # )) , )+ ) $ “Let your strata manager know so they can arrange for the right trades person to check out the issue,� Max advised. Story courtesy of BCS Strata Management

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STRATA MADE EASY

STRATA MADE EASY Supported by A Adjudicator – A third party from a consumer/tenancy tribunal who decides on strata disputes. The involvement of a tribunal is often a second or third step in the disputes process, with a preference to see disputes settled locally where possible. Administrative Fund – A fund, for the benefit of the Owners Corporation, used to cover recurring expenses of a strata scheme. This will include anything from electricity and gardening, right through to the maintenance of common property. A portion of levies charged to owners is based on the estimates of these expenses. Separate consideration is given to amounts that are required for the Sinking Fund. Agenda – In a strata context, the agenda is a list of motions or issues to be voted upon or discussed at a meeting. Having a complete list of agenda items is essential prior to the meeting, as matters not on the agenda should not be voted on. It is important that all attendees are provided with this prior notice, as particular agenda items may influence the decision to attend. Aggregate Unit Entitlement – The net sum of all individual entitlements in a strata scheme. Alterations – Alterations are any improvements or renovations that are proposed or made to common property. Generally, the Owners Corporation must provide approval to complete such work, which can range from minor repairs through to major structural renovations. Most by-laws, or special rules of a strata scheme will include a statement that effectively prevents owners from making changes to their property that materially changes the overall appearance of the building. This might range from the addition of balconies through to external colour schemes that change the fundamental appearance of the property.

Annual General Meeting (AGM) - An AGM is a meeting of owners and other interested parties (which are typically defined within the strata roll) that meet once a year. After the first AGM, an AGM must be held each year. The agenda for an AGM can take a variety of shapes and forms but will generally include a:6 - - & '- ( -! 3 ' ' " % )(,"-"(' ' performance of the Owners Corporation 6 M otion that accepts the financial statements as provided to the Owners Corporation 6 C onfirmation on the insurance policies that a currently held by the owners’ corporation and whether they are appropriate in terms of cost and risk coverage. An incomplete insurance policy can expose the Owners Corporation to substantial risk should an incident occur.

B Boundaries - Another source of confusion within strata managed properties is a clear understanding of where the lines between individual lots and common property are drawn. These rules govern the space within which an individual generally has the right to manage their property as they see fit (although reference should be made to the by-laws/special rules and the definition for alterations to identify possible exclusions). A well designed and documented strata plan should highlight common property boundaries via thick black lines, and be distributed so that all property owners are aware of these arrangements. All strata plans are registered, so if still unclear, reference should be made to the registered copy of the strata plan. Breaching of by-laws/special rules - On occasion, an Owners Corporation and/or managing agent will be asked to manage situations where a by-law has been breached. As with many instances when it comes to strata management, common sense and discussion is encouraged, however further remedies exist to issue a notice to comply on the person(s) who are breaching it. If this continues, various remedies exist across different states to pursue action as required (e.g. in NSW the Owners Corporation can apply to the Consumer Trader Strata Call

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and Tenancy Tribunal for a financial penalty to be imposed on the individual). Budget - An estimate that outlines the future expense and income streams that a strata scheme is expecting to see over the coming year. A separate budget will be prepared for both the Administrative and Sinking Funds by taking into account the surplus or deficit carried over into the new financial year. Building Manager/Caretaker - A role that is more commonly associated with larger schemes, a caretaker will typically manage the co-ordination of the maintenance for the property. The roles of the caretaker are delegated to them via the Owners Corporation, Key responsibilities for a caretaker may include the management of: 4 4 4

'%%'& ()'( )+0 ** +' & ,* ' '%%'& ()'( )+0 0 tradespersons !&+ & & & ) ( !) ' '%%'& property

It is important that the caretaker is officially appointed via a contract, as this will detail their responsibilities and avoid any potential conflicts in regards to general accountabilities. As this is fundamentally important to the running of a strata managed property, the fi )*+ often includes an item to decide whether there needs to be a caretaker appointed (as discussed, this will usually depend on the size and structure of the premises). By-Laws/Special Rules - The all important (and often disputed) set of rules that all residents (both owners and tenants), in the strata scheme are expected to abide by. They can vary greatly between premises, but will generally cover topics such as safety, security, the keeping of pets, sound rules and the use of common property. The relevance of certain rules will change over time, and as such, owners are commonly invited to draft and propose rules that are voted upon in general meetings.

C Chairperson - A chairperson is a key position held within an executive committee, with the designated person working closely with the treasurer and secretary. 66

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The primary role of a chairperson is to preside over all meetings that are hosted, and ensure that they run to agenda. Further, to ensure that decisions are made in line with the by-laws that are set out by the committee. Children '*+ * % * .!$$ '&+ !& &,% ) ' 0 laws/special rules that relate to children, and primarily to ensure that they remain safe when on common property. This is particularly important in the context of insurance and public liability. A well-constructed set of by-laws/ special rules will identify and manage the risks associated with unsupervised children playing in common property, as well as highlighting areas on the premises that may be considered high risk. Outside of retirement village strata schemes, they are not allowed to prevent or restrict children from living on strata premises. Common Property - In essence, the area of land and parts of a building in the strata plans that do not form part of a lot. Common property is jointly owned, and the Owners Corporation is responsible for the management of all areas that are defined as per the spaces set out in the strata plan. Defining what is common property is a complicated (and at times, passionately debated) topic, but essentially includes the following: 4 $$ /+ )& $ ') ',& )0 . $$* !& $, !& doors and windows) 4 $'')* !& $, !& ) %( ') *+ !). 0 4 ',& )0 . $$* !& $, !& &0 '') .!& '. or other structure within the wall and their working parts 4 Ceramic tiles originally attached to a common property surface (e.g. the floor or boundary wall). 4 Pipes in the common property or servicing more than one lot 4 Electrical wiring in the common property or servicing more than one lot 4 $'') ' ) * ')! !& $$0 !&*+ $$ Certificate of Title

STRATA MADE EASY

A document that details who has ownership rights to a property. The Owners Corporation should also hold a title deed that confirms their rights to the common property via entitlement. The certificate of title should be registered at the respective office in each state. Common Seal - The official stamp that an Owners Corporation can use to indicate its official agreement. Strictly speaking, the stamp must show the Owners Corporation’s distinctive number, which includes the registration number of the strata plan. The stamp can be applied whenever the Owners Corporation executes a document. Company Nominee - A person nominated by a company (in writing) to vote on its behalf at meetings. Company Title - A slightly different style of land ownership where a person receives the entitlement to live in a residential building by acquiring shares in an incorporated company that owns the building. As with a standard purchase of property, the purchase of shares in the company gives the shareholder the contractual right to occupy and use a specific space within the building (as well as being subject to the house rules that govern things such as common property). Covenant Chargee - A person or legal entity who holds an agreement over the property which can impose an obligation to engage in or refrain from a specified action (e.g. an agreement to build a fence).

D Delegation of Power - As it relates to body corporates, voting rights are generally allocated according to the number of units (as opposed to the number of individuals). If an individual owns 50% of the units in a strata complex, they will be entitled to 50% of the votes. This is important

in terms of understanding the hierarchy of power, which in essence can see decisions from the body corporate flow through to the executive committee, which in turn may go down to the delegated officer and/or subcommittees that are set up for a specific purpose (e.g. to provide advice on a specialized piece of legislation).

E Election of the executive committee - The executive committee is elected (or re-elected) at each AGM. The committee’s first decision will be to agree on who holds the key positions of chairperson, secretary and treasurer. Exclusive Use - A special right granted to an owner to use a part of the common property (e.g. the use of a garden bed or car space). The right may be granted for a purpose that ultimately benefits others in the property. Executive Committee (EC) - The Owners Corporation will elect an executive committee that makes many of the day-to-day decisions about running the scheme on its behalf. The Owners Corporation will usually reserve the right to over rule executive committee decisions. Furthermore, they can limit what they can make decisions about, which may include the imposing of a number of obligations and/or restrictions. These rules are generally discussed and agreed to at the AGM. Executive Committee Meeting (ECM) - A meeting of the executive committee members which excludes noncommittee members unless prior authorization has been given. Extraordinary General Meeting (EGM) - These meetings may occur during the year as required. Examples of when these will be called include to: 6 C hange, cancel or make new by-laws/ special rules 6 ))("'- (+ ",&",, ,-+ - & ' "' '6 + (' -! ' (+ )"- % 0(+$, ' any associated funding requirements to support the activity (be it via a one off levy or through seeking finance via bank) Strata Call

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STRATA MADE EASY

There are a number of ways to convene an Extraordinary General Meeting, depending on the legislation for your jurisdiction. The most common ways are: 7 4 ( %*-$/4 1*/ *! /# 3 0/$1 *(($// 7 ! *2) -. )/$/' /* 1*/ ) 2#* together hold at least one quarter of the total unit entitlements, give a written notice to the secretary asking for the meeting to be held.

F Financial - Strata ‘jargon’ that is often used to identify an owner who is up to date with all of their levy payments and other financial contributions. First safety inspections - The Owners Corporation is responsible at all times for ensuring that access is given to all parts of the scheme so that necessary first safety $).+ /$*). ) / & +' . - ,0$- / $. $(+*-/ )/ that all property owners are also aware of their obligations as it relates to providing access to their property for these inspections. First Annual General Meeting (FAGM) - The first meeting of owners and other interested parties (as noted on the strata roll). This meeting should generally occur as soon as is practical. Floor Coverings ) - .$)"'4 )0( - *! ./- / schemes have by-laws that require floors to be treated and/or covered to prevent noise being heard in other lots. The increasing prevalence of highrise apartments is driving this. Rooms that are exempt from this are typically kitchens, laundries, lavatories and the bathrooms of a property, although it is important to review the bylaws/special rules to have a full understanding of what is required. Furniture / $. $(+*-/ )/ /* )*/$!4 /# 3 0/$1 committee where plans have been made to move 68

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large objects through common areas. This assists the committee in terms of them being able to support the move wherever possible. (e.g. by covering up the lifts to avoid damage). Some schemes will have by-laws/special rules in place which will specify times when residents may move in/out.

G Garbage - Whilst this would appear to fall squarely in to the category of common sense, it is the responsibility of the owner/occupier to maintain a clean, dry and adequately covered garbage bin in their lot. Furthermore, that all garbage is securely wrapped. Depending on the cycle, garbage should generally be placed outside no earlier than 12 hours before collection. Gardens/Backyards - A question raised often in general meetings, is what the owner has the right to do in respect to their backyard. Certain activities may be classified as alterations, which attract their own set of rules should they fundamentally change the appearance of the building. The general rule is that as long as the backyard is part of the lot, the owner can do what they want as long as it doesn’t breach a by-law (e.g. damaging common property or creating excess noise). An owner or occupier must not damage any lawn, garden, shrub, plant or flower on the common property and should not use any part of common property as their own garden unless a specific motion is passed to allow this. Guests/Visitors ) .. ) )*/# - /*+$ /# / .#*0' be covered by common sense principles. An owner/ occupier should at all times ensure that invited guests are behaving in a way that will not disturb other residents and their guests. This provision applies irrespective of whether the individual is within private premises or on common property. The behavior of guests is quite often covered within by-laws, particularly when it comes to issues such as the use of a pool and visitor car parking spaces.

STRATA MADE EASY

H Harmony: Industry jargon that is used to describe the general level of ‘owner contentment’ that exists within a scheme. Having an active and consultative approach to identifying and managing issues as they arrive is usually the best approach to achieving the right harmony outcomes. This is generally a topic raised during general meetings, with the result at any one time being influenced by things such as disputes between neighbours, local government councils, other owners, the executive committee and many other individuals.

Insurance - The relevance and importance of insurance is something that flows through right from the building of properties to the ongoing management of them once they become lots within a strata scheme. The Owners Corporation is responsible for making sure that all necessary insurance policies are in place and are up to date. All policies should sit with an appropriate insurer to minimize risk should a policy need to be enacted. Different types of insurance include: ; 2&)!&+$ &+02/ + " : %&0 16-" ,# -,)& 6 covers the building if damaged or destroyed by fire, lightning, an explosion or any other cause that is stated within the policy. The purpose of the policy is to cover the reinstatement or replacement of the building to put it in the same condition as it was when new, remove debris and cover all expenses that area required to bring the place back to its original state (e.g. architects).

; 2 )& )& &)&16 &+02/ + " : %&0 &+02/ + " ensures that there is sufficient cover for death and/or injury that results from any activity for which the Owners Corporation could be deemed responsible.

I

; ,/("/0 ,*-"+0 1&,+ &+02/ + " : %&0 type of insurance ensures that all individuals who are working on a property are covered for workers compensation.

Initial Period - A period of time that commences on the day that the Owners Corporation is constituted (date of registration of the plan) and ends on the day when there are proprietors of lots, other than the original proprietor, the sum of whose unit entitlements are at least 1/3 of the aggregate unit entitlement (or as determined by legislation).

; ,)2+1 /6 4,/("/0 &+02/ + " : %&0 16-" ,# insurance covers the Owners Corporate against damage that it may become liable for when a person completes work as a volunteer and on behalf on the Owners Corporation.

Home Warranty Insurance - This type of insurance was created to protect consumers when a builder and/ or contractor (e.g. plumber, carpenter) passes away, cannot be found or becomes insolvent. In essence, the insurance is there to cover situations where the builder is unable to fulfill their obligation to the consumer. In NSW, this insurance generally covers situations where a builder is unwilling to honour such commitments and their licence is suspended for failing to comply with a money (Compensation) order in favour of the homeowner made by a court or the consumer, trader and tenancy tribunal. Exclusions, limits and conditions apply, and it is recommended that you read your policy to understand what situations are and aren’t covered.

L Laundry Items - Specific by-laws may prevent an owner and/or occupier from hanging washing towels, bed sheets, Strata Call

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STRATA MADE EASY

clothing or anything else on any part of the strata scheme (e.g. on the balcony) where it can be seen from outside the building. Levies - In terms of a definition, levies are contributions by the owners to the Owners Corporation to cover regular expenditure, as well as to fund future capital works activities. In some states, the amount that is paid by each owner is regulated by the unit entitlement of their respective lot, with contributions being splilt between the administrative fund and the sinking fund. As defined in this guide, the administrative fund primarily exists to fund day-to-day operation expenses, with the sinking fund in place to fund long-term future expenses. In terms of the longer term expenses, the sinking fund can be utilized to cover anything from re-painting of the common area, landscaping, elevator maintenance through to the addition of solar panels. From a lot owners perspective, one should be aware from the outset as to what the levy will be, and more importantly, what the state of the property is and what the levy will cover. Levies in strata schemes that have a number of shared facilities can quite often be expensive, particularly as it relates to swimming pools, saunas, tennis courts, etc. Levy Register - A historical record of levy contributions made. Unpaid Levies - Unpaid levies may incur interest if not paid on time. If the unpaid levy goes beyond a set period of time (usually defined within the by-laws), the Owners Corporation has the ability to take debt recovery action. Conversely, an Owners Corporation may also consider the provision of a discount where levy payments are received before they are due. Lot - A lot is defined as a dwelling within a strata scheme that comprises the living space within the boundary walls of the property space. Car spaces, garages, laundries, marinas etc can also form part of a lot or be a separate lot themselves. 70

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M Minutes - A documented record of all discussions, decisions and action items arising from meetings held by the Owners Corporation and executive committee. General meeting minutes should be sent out with the notice for the next general meeting (or if possible, earlier). Minute Book - A document repository (that is usually hardback/bound, but may be electronic), that holds the notices and minutes of all meetings held by the Owners Corporation and executive committee. The minute book is important and is commonly used as evidence in disputes where there are differences of opinion in regards to what was agreed to in meetings. Model By-Laws - A standard set of rules that can be utilized as the actual by-laws for a strata scheme or as the template from which specific by-laws are created for the community. Motion - A proposal that is put forward for consideration at general meetings.

N Noise - One of the most common ways that this is seen is often in conflicts about noise, and as such, strata schemes have specific by-laws in place that dictate what is and isn’t acceptable. As with many strata by-laws, common sense should prevail, although it is also worth noting that visitors are generally expected to be made aware and abide by these same rules when visiting. Most by-laws will included remedies to issue breach notices and/or fine individuals that do not comply with the agreed upon noise rules.

STRATA MADE EASY

Notice of meetings - Notice of both an Extraordinary General Meeting (EGM) and an Annual General Meeting (AGM) must be given to each owner of a lot in advance. Notices for a general meeting generally contain: 3 A motion to confirm the minutes of the last meeting 3 Other motions to be considered at the meeting 3 Motions that need a special or unanimous resolution 3 A copy of the minutes of the last general meeting 3 If it is the AGM, a motion for the election of the executive committee and the number of members that will form the group Noticeboard - Whilst perhaps a minor detail, it is important to keep in mind that a noticeboard is only required if it is stated as such in the by-laws. Where a noticeboard does not exist, all meetings and other notices will be sent to each owner directly.

P Parking - Another common source of discussion, and at times, debate amongst Owners Corporations relates to parking rules. Generally owners and residents cannot park on the common property without the explicit permission of the Owners Corporation. Visitors are invited to park in designated visitor parking spaces where an allowance has been made for them. Parking Lot - A lot designed primarily for storage of boats and/or motor vehicles. This type of lot is commonly also known as a utility lot. Pest Treatments - Most states will include regulations that require residents of multiple occupancy dwellings to be notified when licensed pest controllers apply pesticides to any areas of their parking lot.

Poll - A method of voting at meetings where each owner’s vote has a value based on the lot’s entitlement. Proxy - A person appointed (usually required in writing), by an owner or mortgagee to attend a meeting and vote on the appointer’s behalf. The proxy form should: 3 State the duration of the proxy. Typically for a period of time or a specific meeting 3 State which matters the persons acting as proxy can vote on 3 Detail how the person acting as the proxy should vote on a motion for the appointment or continuation in office of a strata management agent 3 . &' , " ,! ( *+'& /!' . ,! proxy attends the meeting and votes in person Pruning Trees - If the trees are common property, it is the Owners Corporation’s responsibility. If the trees are part of the owner’s lot, then the owner needs to ensure that ,! 1 % & ,! % ."& ,!'*'- ! -& *+, & "& ' the by-laws is usually the best way to understand what requirements apply.

Q Quorum - The minimum number of eligible attendees at a meeting before a motion can be formally voted upon (keeping in mind that the motion needs to be included in the agenda beforehand).

R Repairs - The rules that govern repairs are relatively simple (in theory). The Owners Corporation must repair anything that relates to common property, and the owners must repair anything within their lot. In practice though, this is not always the case. As a general rule, anything that is inside the airspace of the unit is the owner’s responsibility and anything that is outside is the Owners Corporation. Strata Call

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Again, it is important to have a clear understanding of the by-laws for any specific rules that relate to repairs, and ownership clarifications for any particular item(s) within the premises. In terms of managing repairs that are Owners Corporation responsibilities, the managing agent or secretary of the Owners Corporation should be notified in the first instance. For large/expensive problems, a general meeting may be required to agree on the next steps. Resolution - A decision reached at a meeting based on a motion that is considered at a meeting. There are three types of resolutions. 5 O rdinary resolution: a decision of the meeting (made after the taking of a vote) 5 Special resolution: a special resolution is where no more than 25% are cast against the motion, (based on unit entitlement). This includes votes in person and also proxy votes. 5 ( (#')/- , -)&/.#)( /( (#')/- , -)&/.#)( is one where no one votes against the motion. If a unanimous resolution is required, all owners should be at the meeting or should participate in voting via a proxy. This includes owners where their levies are not paid and up to date.

S

The key responsibilities of the secretary include: 5 The preparation of minutes of meetings and putting a motion to confirm the previous minutes 5 Issuing notice for the Owners Corporation and its executive committee 5 Managing the strata roll and ensuring that it is kept up to date at all times of the year 5 The provision of information on behalf of the Owners Corporation 5 Convening meetings of the Owners Corporation and its executive committee (apart from the first AGM) Sinking Fund - A sinking fund is specifically for the management of major repair and replacement work on a scheme. This can cover a wide variety of activities, including everything from the re-painting of the property through to the placement of solar panels. The general idea of the sinking fund is that it should ensure that there will be enough money available to pay for expenses when substantial work needs to be undertaken. SP - Commonly used industry jargon for the term Strata Plan.

Safety Audit - An inspection carried out by a qualified professional on the current status of the health and safety standards for the scheme. Secretary - One of the three main office holders of 72

the executive committee, with the other two being the chairperson and the treasurer.

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STRATA MADE EASY

Special Levy - An at times unpopular additional levy contribution that is paid by the owners to cover unplanned, unexpected or underestimated expenditures. Special Resolution - A resolution that requires at least 75% of votes present to be in favour of the motion. As per the other votes, the concept of unit entitlement comes in to play, and the vote is based off this calculation. Failure to reach 75% of the votes in favour will see the motion being defeated. Strata Inspections - In some states, prospective purchasers are permitted to inspect the books and records of an Owners Corporation. Alternatively they can purchase a report that provides records of the body corporate and other information that may be of relevance (particularly when a prospective purchaser wants to make an assessment of important details such as the amount of insurance cover). Strata Managing Agent (SMA) - In most states, a suitably licensed and qualified professional entity (or individual) that is appointed by the Owners Corporation to manage the affairs of the strata scheme in accordance with all responsibilities that have been delegated to them. Strata Plan - The actual plan registered at the respective land titles office showing the building on the land, the lots that make up the plan and all areas within the premises that are deemed to be common property. Strata Roll - The register of the owners of every lot in a strata scheme including any utility lots.

Strata Search - A strata search is where an owner or mortgagee of a lot, or a person authorised by them, requests the Owners Corporation to allow an inspection to be carried out on the records and accounts of the strata scheme.

U Unanimous Resolution - A resolution that requires 100% of the votes at a meeting to be in favour of the motion (including votes from owners who are not up to date in terms of their levy payments). Unit Entitlement - Each lot within a property is given an entitlement. The amount of the unit entitlement will vary depending on a number of things, such as the size of the lot and what is contained within. These entitlements govern what percentage of the annual budget levies will be paid by each lot owner. These same entitlements transfer across to voting rights in most states. Utility Lot - A lot designed for the storage or accommodation of boats, motor vehicles or other goods. It is not to be used as a residence/ for commercial use.

V Vehicles - An owner or occupier must not park or stand a vehicle on common property without the written permission of the Owners Corporation. Voting - Each executive committee has one vote at a meeting. A decision on any motion at an executive committee meeting is made by a majority vote. Strata Call

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PROPERTY OBSERVER

For All Your Property News www.propertyobserver.com.au

When we talk about strata and unit living, the majority who buy in apartments have an obvious interest in real estate generally. As real estate leader, John McGrath would say, you can’t be everything to everybody so while we specialise in strata at StrataCall, we also recognise the need to cover all real estate news. That unfortunately we can’t do, especially when we couldn’t do it better than propertyobserver.com. au Property Observer is a source of independent news and information for property investors and astute buyers, so they can make informed property investment decisions. The site is published by Private Media, an internet publishing company that is owned by some of Australia's most experienced media practitioners including Eric Beecher, John Addis, Chong and James Thomson.

Property Observer was co-founded by Jonathan Chancellor “I have been writing about property for more than 25 years, and I've learnt that getting passionate about property is easy. Getting it right is trickier. Property Observer is property central, providing the essential news and analysis on the ins and outs of property. We cover the capital cities, up and down the coast, and inland to the regional towns and the bush. We offer plenty of authoritative coverage about the homes we live in and the investments that top up our incomes. Property Observer showcases the best houses and apartments and all the big-name buyers and sellers. We keep a watchful eye on new developments, and the plush over55 developments that seek out the growing band of empty nesters. Property Observer captures the changing seasons – we write about

snow homes, vineyards, fishing lodges, marinas and even the occasional beach bathing box. We aim to be of interest to the owneroccupier and the investor, given that population and investment funds are more fluid than ever. The website offers wisdom on winning ways with property commentary from key economic and industry practitioners. We won’t overlook the property fundamentals, conveyancing clues, legal rulings and tax advice. It's not just about bricks and mortar, as Property Observer will personalise property with interviews of the movers and shakers. We want our readers to get wisdom, not clichés. And that way we’ll all be the wealthier.” www.propertyobserver.com.au

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Leaders in Strata Law

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Decorating Your Children’s Room

The thought of decorating your child’s bedroom can be both exciting and a little daunting. While you want to create a space that your child will love, there’s always that lurking fear that the end result may offend your sense of style. But it doesn’t have to be the case: there are a host of great products on the market that are sure to appeal to both of you, and ways to build a classic style that will stand the test of time and still accommodate a little bit of kiddie kitsch.

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DECORATING YOUR CHILDREN’S ROOM

A SPECIAL PLACE Your child’s bedroom should be a place they can really call their own, and actually want to spend time in. Seek out their input - favourite colours and combinations, and choose the scheme together. For younger children, look to their favourite interests to get clues for a room theme - jungle, traffic and fairies are all popular ideas, although be careful of going overboard or you’ll risk having to redecorate every couple of years as their tastes evolve. FURNITURE CHOICES Look to invest in classic, hardwearing furniture and accessories that will stand the test of time, and add a few themed touches that can be easily and affordably changed, such as cushions, bedlinen or a framed poster on the wall. Painted wooden furniture, such as the designs at Treehouse Furniture and Sirocco Home, can all be retouched when required and will withstand even the roughest childhood play. 80

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Shared spaces can present additional challenges, especially in a small space. Bunk beds are a great solution, particularly if they incorporate some sort of shelving or display area on each level. You can also create room dividers with folding or gliding screens or a carefullypositioned bookshelf. In a small home, you may need to incorporate the playroom - or elements of it - into your child’s bedroom. Dualfunction furniture is a great way to do this. Put a small table and chairs in a preschooler’s room (stackable ones, such as those from In Your Room, work well), and hang craft supplies in wall-mounted racks or string bags. Toys can be stored in coloured, stackable boxes, and boxed games and Lego can be housed in an empty trundle bed. For older children, consider a day bed that doubles as a sofa for hanging out with friends. Funky bean bags on the floor make a great spot for lounging around, and they’re easy to pile away when not in use.

FEATURE WALLS Children love feature walls - they’re dramatic and can often present an additional opportunity for play. Paint an entire wall in colourful chalk paint (try Porters Paints) or choose a funky chalk decal from Wallcandy. A mirrored wall is great fun for dress-ups, or you could try mirrored decals in butterfly or star designs to go around walls, furniture or windows (from Giggle Smile Designs). Bold wallpaper such as a thick horizontal stripes or Graham & Brown’s ‘Frames’ wallpaper, which your child can decorate himself, are sure to add the ‘wow’ factor. FLOORING Soft flooring, such as carpet or rugs, is the best option for a child’s room as it’s warm and soft underfoot for play sessions and those early morning starts in winter. Look for non-toxic, all-natural carpet that’s robust enough and with a good fleck in it to avoid shadowing or showing up too much mess between vacuums.

DECORATING YOUR CHILDREN’S ROOM

Rugs over a hard floor create an instant play zone. Dwell Studio has some of the best, contemporary designs around for boys and girls, while Minimee offers hard-to-resist 3D play rugs in ‘traffic’, ‘dollshouse’ and ‘farm’ themes. Ikea has some fun and more affordable options, although they’re generally not pure wool. WALLS Look for low- or no-tox paint finishes for kids’ walls - they’re available from all the major paint manufacturers nowadays. Forget very flat paint finishes in a child’s area - washable finishes will allow you to easily wipe off hand prints or mementos of those artistic moments. STORAGE Smart storage is a must in a child’s room. It should be accessible and easy for your child to use so that they get used to packing their own things away. Keep things off the floor as much as possible as

it will make the room look larger and give your child plenty of space for floor play. Look for all those typically overlooked storage opportunities, such as under the bed, behind doors, at the top of cupboards and on walls. Both Ikea and Howards Storage World have an extensive array of storage containers, baskets and shelving to fit these areas. Generous storage crates are easy for a child to use, and they can be labelled with words or a photo on the front for prereaders (Fiona Kate sells lovely labels). SAFETY FIRST Safety is paramount in a child’s room - all furniture and accessories should adhere to Australian safety standards. Avoid dangling cords from blinds or curtains, and hot light bulbs that could burn little fingers. And remember - bunk beds should not be used by children under nine years old, and you should always look for soft-closing drawers and toy box lids.

LIGHTING It’s important to install adequate lighting wherever a child will be playing, reading or working. Choose strong task lighting for reading, homework or craft areas, good ambient lighting to create a cosy atmosphere, and a night light to ward off monsters after dark. DISPLAY Children love to display their collections of favourite things, so it’s a good idea to incorporate some sort of display area in their room. Consider putting up a narrow floating shelf on the wall or dedicate a deep windowsill for that beloved collection of cars or fairies. Find clever ways to display their art - you can turn children’s paintings into canvases, or invest in a CreaLamp that illuminates their best artwork in between two transparent panels. A more affordable option is to hang a revolving display of their paintings on a washing line across one wall. By Georgia Madden Strata Call

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PAINFREE DOWNSIZING

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PAINFREE DOWNSIZING

Painfree Downsizing Who wouldn’t want to cut their power bills and housework down by half? Downsizing to an apartment or townhouse has loads of benefits, but the process of paring back the belongings you’ve collected over a lifetime can be pretty daunting. On top of that, there’s the challenge of decorating a home that might be short on space and require multiple uses from a single open-plan area. But don’t despair - remember that the most luxurious home isn’t necessarily the largest one. It’s adaptable, well-organised and peppered with beautiful items - all things that are easily achieved whatever the scale. So get ready to smartsize!

you don’t have room for should be sold or given away to charity. Be ruthless!

The best way to start your downsizing is to plan your rooms on paper. You’ll probably have considerably less space than you did in your old home, so it’s important to make sure your existing furniture fits into your new lifestyle. Make a scale plan of all the rooms, measure your furniture, and position everything on the plan. Does your old furniture fit? Can you move around comfortably? Ask yourself the tough questions - do you really need that three-piece suite in a small open-plan living area? Large pieces of furniture may need to be replaced with smaller ones, and anything

Moving is always stressful and exhausting, but even more so if you need to rationalise your belongings to fit into a smaller home.

Remember to keep tabs on where things go. Once you’ve reached the packing stage, label all your boxes clearly so that you and your movers will know exactly what should go where. Choose whatever labelling system works for you - perhaps colour-coding boxes for each room or labelling them numerically.

Make sure to give yourself plenty of time, ideally about three months to get sorted. Make time every day, even if it’s 10 minutes, to sift through your things, working out what to keep, store and get rid of. It’s often easier to start with the big things first, such as furniture and large accessories, and then move onto the smaller, more time-consuming ones such as sifting through files of papers and boxes of photos.

During a down size don’t forget to be smart with your storage. A small home will appear larger if it’s free from clutter. Find a home for everything so that books, paperwork and bags are not cluttering up the floor or tabletops. Assess your storage requirements - do you need to add built-in cupboards or floorto-ceiling shelving? Are there any empty spaces that could accommodate storage, such as hollow walls for nooks, or

When downsizing it is important to be adaptable. In a large home, it’s easy to designate every room for a different use. In a small home, you’ll need to be a little more creative. Where possible, aim to give rooms more than one use - replace that bulky media centre with a mountable television that hangs on the living room wall; position a home office in unused space under the stairs or with a flipdown desk for a laptop in the kitchen; and create a library in the guest room by allocating one wall to floor-to-ceiling shelving.

Don’t forget the resources you already have. Enlist the help of friends and family with packing and the move, and be realistic about exactly what needs to be done. Make a list in advance so you can work out your requirements - do you need babysitting for kids or pets? Someone to help with the cleaning? Perhaps you have items you can’t reach, or require boxes to be carried from a storage unit or garage? It could be something as simple as needing a hot meal for the night.

the area under the stairs for a built-in? See whether you can get more bang for your buck from cupboards with special inserts and double and triple hangers. Small-scale decorating Most modern apartments and townhouses are well laid out to maximise the feeling of space and airiness, but smart decorating choices will only enhance it. A well-placed mirror will bounce the natural light around a room, and make a space feel considerably larger than it actually is. While you might be tempted to go out and replace everything to suit your brand new pad, it’s important that your home has a sense of history and personality - make space for treasured mementos and showcase your personal history. Give old favourites a new lease of life - re-upholster an armchair in a funky new fabric or repaint or restain wooden items. And be open about using old things in new ways - a beautiful bowl you once had in the kitchen might be perfect for holding soaps in the guest bathroom, an occasional table from the living room might make a great bedside table.

By Georgia Madden Strata Call

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MAJOR WORKS NOT MAJOR HEADACHE

MAJOR WORKS NOT MAJOR HEADACHE

Story courtesy of BCS Strata Management

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MAJOR WORKS NOT MAJOR HEADACHE A decision has been made by the Owners Corporation, and major works are set to be undertaken in your building. You know that it’s going to involve noise, dust, workers using electric tools from 7.00am and most likely complaints from some or all of the neighbours as well as the residents. While the noise and dust are inevitable, the same may not necessarily apply to the complaints from neighbours and residents. This can be minimised with planning and a whole lot of communication. These days when governments undertake large infrastructure projects that have an impact on the local community they often employ a community relations officer. The role of that person is to work with the community and the construction company to communicate the needs of all parties involved and affected.

“The mark of a good strata or project manager or executive committee is the work they undertake to reduce the impacts of the disruptions and costs for the residents.” Such work should involve meeting with residents or providing written communications as well as contacting the neighbours. If the works are spread out over a long period of time, regular updates should be provided. It’s also worth consulting when noisy works are to occur especially if residents are shift workers or mums at home with babies. Given enough notice people are generally willing and able to make alternative arrangements for those periods when they will experience the most disruption. Contractors too can become involved in the communications process. Ken ensures that his company prepares a summarised version of he process being undertaken.

The same tactics can be used in an apartment building and while you can’t expect everyone to be 100 percent happy, you can lessen the impact and possibly even have everyone still talking to each other at the end.

“We also try to attend a meeting or two of residents, or at least the executive committee, bringing any specialists we’re using to talk about the works, discuss timing and answer any questions,” he said.

Ken Demlakian of Demlakian Strata and Remedial has had a lot of experience with major works. Ths measure of success for Ken is being invited back to do other works.

“Our summary also identifies the issues of disruption or inconvenience involved and is provided to the internal projects committee for distribution to residents.”

“One property in Chatswood that we worked on in 1988 has since asked us to provide other services on three occasions since then, on what we would describe as major works,” Ken said.

Setting up a project committee comprising of owners, the strata manager adn the construction expert is an ideal way of keeping on top of major works - ensuring they come in relatively on time and close to budget. Employing a project manager who specialises in the strata and community living industry can also be a great asset saving time and money.

“For us this means we’ve done a good job to be invited back to do other work and we are proud of that. It also means our methods and approaches are working well.” As a guide, Ken said that projects could be considered major if the construction value is more than $250,000, involves complex or invasive specialist works, or if the construction period is likely to be continuous for more than six months. This sort of scale means disruption to residents is a given but the key to minimising the impact is to make sure everyone knows what to expect. For example, if there is going to be jack hammering from 7.00am then let both residents and neighbours know. It’s hard to complain about the noise when you have been warned beforehand about it. The key is not to sugar coat what the works involve. “No matter how well organised or efficient the contractors or project managers are, the residents should be told to not only expect noise during controlled hours, disruption to servcies such as water, electricity or gas and the need to access property but also that they should anticipate works variations, work extensions of time and other unexpected disruptions,” Ken advised.

“In our experience, having a project committee and even a project manager has enabled issues to be communicated promptly without disrupting the building works. Delays can cause an increase in costs and of course the time taken to do the works,” Ken explained. Building works involving people’s homes often involves a certain level of emotion and it’s wise to be sensitive to this. Ken’s company has a great deal of understanding having experienced it over the years. He said the key is to be sensitive and respond diligently. “We also look at ways that we at Demlakian can add value for our clients and we believe that our approach, which partly focuses on relationship building but also on having the right experts, is the right one when it comes to undertaking major works.” Here’s hoping that by following some of these guidelines, your next major project comes in on time, on budget and that all the residents are happy.

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SUPER SIZED APARTMENTS

SUPER-SIZED APARTMENTS Would you like size with that? It’s the question one Sydney property developer is asking. By Barry Hyland

A new generation of up-sized apartments is challenging conventional thinking that unit living means compromising space and comfort. Nowhere is this more evident than in One Australia Avenue – a prestigious building just launched at Sydney Olympic Park. The 30-storey tower has a selection of four-bedroom apartments, each totalling around 218sqm (168sqm internally plus a 50sqm balcony). The super-sized apartments are on the upper levels of the tower, providing panoramic views north over Homebush Bay to Chatswood, east to the Sydney CBD, south over Bicentennial Park to Sydney Airport and west to the Blue Mountains.

home,” said Sue Ballesty, the Marketing Director of One Australia Avenue. “There is little difference in space and creature comforts to a house, but these apartments free the family from external maintenance chores, allowing more quality time together. Most importantly, they are in a vibrant location where no houses exist.” In the super-sized apartments all four bedrooms easily fit a kingsize bed with plenty of space to spare, while the living area is large enough for a grand piano. The apartments also have two bathrooms, a study and come with two car spaces.

They defy the Sydney-wide trend of compact living, with good reason. The developer, Ecove, is trying to temp families.

“The indoor areas allow for flexible uses and interconnect with the outdoor space, allowing residents to entertain with the freedom of a family house. And who needs a garden when you have 430-hectares of play areas and parklands – the equivalent of 1,000 football fields – or your doorstep?

“Scaled-up apartments are a perfect alternative to the family

“Sydney Olympic Park has the space and healthy outdoor

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SUPER SIZED APARTMENTS lifestyle of a country town yet is just 12 kilometres from the CBD, and is well connected to most parts of Sydney by road, rail, bus and ferry,” Mrs Ballesty said. The up-sized apartments are on floors 27 to 30, and range in price from $1.245-Million to $2.58-Million. Unlike many houses they have no ‘dead’ zones or wasted space; their practical floorplans utilising every metre and containing smart storage options. No one should ever be bored living at Sydney Olympic Park, which hosts the majority of Sydney’s major sporting, entertainment and corporate events, including the National Rugby League Grand Final, the Royal Easter Show, and a V8 Supercar race. It is also developing into a food Mecca, with 32 specialty retailers, and dozens more expected by the time One Australia Avenue is completed in 2015. Sydney Olympic Park is easily accessible to most of Sydney with nearby bus, train and ferry services operating regularly. Proximity to the Sydney Orbital network comprising the M2, M3, M4, M5 and M7 means Greater Sydney is also easily and quickly accessible by car. The One Australia Avenue display centre, on the corner of Australia Avenue and Herb Elliott Avenue, is open daily from 1pm to 4pm. Further information is available on 1300 882088 or through the website: www.1australiaavenue.com.au

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CREATING A BALCONY GARDEN

Creating A Balcony

Garden You can transform even the tiniest of balconies or terraces into your very own urban paradise, with a bit of planning and care. The trick is to do a good assessment of your growing conditions - sun, wind and accessibility - and design potted planting to suit them. While potted plants do demand more attention than those in a grounded garden, they’ll reward you with a cleaner environment and the perfect spot to escape from the city madness.

of carrying large pots up several flights of stairs can be too much to bear. But larger pots will add drama to your outside setting – the trick is to source lightweight ones or ask your nursery to do the heavylifting and planting for you.

Container Gardens

The Right Mix

Containers and pots are your new best friends if you’re planning a balcony or terrace garden. Talk to your nursery about the size and conditions of your outside area so they can help you choose suitable plants and containers.

Start with the best quality soil you can afford - it’s not worth stinting here or you’ll end up with brick-like soil that won’t keep even the hardiest plants alive. Remember that plants in containers dry out fast, so you’ll need to water and fertilise regularly.

Many city-dwellers end up with a mass of tiny pots on their balconies as the thought

Fancy adding something tasty to your dinner straight from the garden? Edible

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Always look for containers with good drainage, and add a few pebbles to the bottom for extra drainage. Ensure pots are large enough to accommodate the root mass, and tall enough to suit the scale of your arrangement.

plants can be both decorative and incredibly handy, and plenty of varieties can be grown in pots, such as herbs, tomatoes, cucumbers and gourmet lettuces. If the conditions are right, you could even consider some smallergrowing fruit trees. But keep in mind they’ll need around six hours of sunlight a day. If you prefer decorative plants, choose a mix of seasonals and perennials so that you don’t suffer from a seasonal glut. What works best? Daisies, geraniums, pansies and roses suit very sunny spots, as do hardy palms. For partially-shaded areas camellias, hydrangeas, busy lizzies and bay trees are just some of your options.

What’s Your Style? Before you start, think about the look you want to achieve. Do you fancy a country cottage style that will change with the

CREATING A BALCONY GARDEN

seasons or something more architectural? Simplicity is key in a very small space – you don’t want to clutter your garden and risk turning it into a tropical jungle. Focus on a single pot or a pair of pots, perhaps filled with an architecturally-stunning topiary, or planted with a mixture of different plants to create a mini-garden. On the other hand, grouping potted plants of different sizes can give the sense of a real, grounded garden, and also provide privacy from neighbours.

Set the Scene Is it a sunny or shady spot? Pay careful attention to the conditions of your urban garden – choosing the right plants for the conditions is essential. Balcony gardens generally receive sunlight from one direction, and are shaded the rest of the time. North and north-easterly facing balconies will receive the most sun during the day.

Is it a windy area? Even a balcony two floors above ground will be affected by wind, so this is not the spot for lightweight containers or lots of hanging plants. As a rule, the more sheltered you are from the wind, the greater your planting choices.

Think Vertical Mix up the heights of your plants for visual impact: low-level beds, raised beds and pots of different shapes and sizes. Using the wall space for a trellis to train creepers or vines will create a strong visual backdrop, while a wall-mounted water treatment adds drama.

Don’t Forget The Details Always check your strata guidelines before making any significant changes to your outside area.

Don’t forget flooring – think about where you’ll be walking on your balcony or terrace, and make sure your planting doesn’t get in the way. Unsightly concrete surfaces can be inexpensively concealed with gravel (roughly 50kg per sq m). Or, consider wooden decking – one of the biggest trends right now is for narrow decking laid in a mixed vertical and horizontal pattern. Is there room for seating? Opt for lightweight seating that can easily be moved inside when it rains, and make sure it’s the right size for your outside area. For additional seating, use raised beds with cushions covered in outdoor fabric. Add task lighting for barbequing or dining, and softer mood lighting to create a beautiful view from the inside out. By Georgia Madden

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WILL THIS BE SYDNEY’S FINEST PENTHOUSE?

Will this be Sydney’s

Nature has been kind to Sydney, blessing it with dozens of white sandy beaches, azure waters and a temperate climate.

in the detail, everything about the penthouse is beautifully restrained.

The jewel in its crown is Sydney Harbour, where sailing boats, ferries and cruise liners create a colourful, ever-changing, almost hypnotic scene. This is the vista that everybody craves. But, like everything that is precious in this world, such a rare commodity is available only to a lucky few.

“These days the term ‘penthouse’ is loosely applied by marketers and real estate agents,” said Graeme Katz, the head of Investec Property Investments which is developing the eponymouslynamed building. “But this is a true penthouse in every sense of the word. It is the only penthouse in the building and it occupies the whole top floor.”

A grand penthouse with the feel of a European mansion will capture this awe-inspiring view from atop, arguably, Sydney’s most tastefully-designed new boutique building at 10 Wylde Street, Potts Point. Flowing seamlessly through formal and casual living spaces, the 430-square metre penthouse is a modern interpretation of luxury reminiscent of the art deco era. The architecture combines traditional craftsmanship and a pallet of the world’s finest materials and finishes. An eye-catching feature is the aged French oak parquetry flooring laid in a herringbone pattern, which is continued with travertine tiles on expansive balconies. But while there is richness

Investec Property Investments specialises in developing and managing a diverse range of property investments across Australia. The team has been involved in projects delivering more than 1,000 residential dwellings over the past seven years, including the award-winning mixed use development at Bondi Beach, The Beach House. From its elevated position just minutes from an array of specialty shops, theatres, galleries and the café culture of Potts Point, the penthouse provides views of Sydney Harbour to the Heads in the north, Rushcutters Bay and Darling Point to the east, and the Sydney Opera House, Harbour Bridge and CBD skyline to the west. Caroline Fagerlund of CBRE predicts the penthouse will fetch around $13 million. “From the moment you walk into the penthouse’s leather-paneled vestibule you experience a style of living that taps into comfort, substance and prestige,” she said. Architect Adam Haddow from SJB believes 10 Wylde Street is the best residential address in Potts Point, and the building will become a Sydney icon. “This is a building that articulates a new contemporary living standard for Potts Point; one that is not afraid of its newness but equally confident in its reference to a lineage,” said Mr Haddow. “From the door handle detailing to the lettering on post boxes this will be a considered building with personality, casual style, a remarkable address and the best harbour views in the world.” Security and privacy of residents is of paramount importance

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WILL THIS BE SYDNEY’S FINEST PENTHOUSE?

Finest Penthouse? By Barry Hyland

at 10 Wylde Street, which has video security intercom, security lifts which only stop at authorised floors and secure underground parking. “10 Wylde Street has the only true north facing penthouse to be built in Potts Point in 20 years and because of the boutique nature of the building it benefits from comparatively low strata levies,” said Andrew Hoggett of Richardson & Wrench Elizabeth Bay. Private inspections of 10 Wylde Street are by appointment only through Andrew Hoggett / Jason Boon of Richardson & Wrench Elizabeth Bay on 0412 208 614, or Caroline Fagerlund of CBRE on 0414 430 090.

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COMMUNITY ASSOCIATIONS

Community Associations

Story courtesy of BCS Strata Management

Many local governments struggle to provide basic services to their constituents and new developments on former industrial sites can add to that burden. A way around that is for the new development to be formed into a community association which is then responsible for providing and maintaining its own infrastructure. This infrastructure can range from roads, kerb and guttering, parking and garbage collection, to parks, child care services and even gyms, pools, sports ovals and community halls. Within the community association there may be a mix of apartments, townhouses, freestanding houses and some commercial and retail space. Managing a community association can be a difficult and challenging task. We asked one of strata managers what it was like to manage a community association.

purchased by the individual owners who then built their dream homes on them. Unlike strata title properties, the individual homes are not common property and are maintained by the individual lot owners” Jasmine explained. “The sizes of the Associations ranges from two lots to 103 and all have roads and parklands, with others also owning their own street lighting, privacy gates, roads and park furniture. The homes are all detached and there are no apartments or townhouses. “There is an onsite caretaker who looks after the day-to-day maintenance of the grounds and I look after the administrative and management functions such as community property insurance, payment of bills, assistance with committee meetings and AGMs, financials, advice on legislative matters and compliance with the community by-laws.”

Jasmine Corner has the enviable job of managing the community association called The Vintage located in the Hunter Valley’s wine country. Based in Newcastle, Jasmine regularly travels out to Rothbury to check on the eleven community title associations she works across.

One thing about large scale, multi-million dollar community association developments, or this one anyway, is the strict guidelines that have been put in place by the developer regarding design and construction of the homes.

“Each of the community title associations has its own community property that has to be managed. Three of them are gated communities and all lots started as blocks of land which were

At The Vintage there are design guidelines, which all new home builders must comply with. The proposed plans are submitted by owners for approval to the Design Review Committee (DRC)

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which includes a representative each from Cessnock City Council and the developer.

harmonious way although as within any community there have been some issues along the way requiring Jasmine’s attention.

“The house design has to be unique and integrated with the natural environment and the landscaping also has to meet certain criteria. Only once all the guidelines have been met are owners given approval to build,” Jasmine said.

“The gates on the gated communities are open Monday to Friday to allow construction vehicles to get in and out as people build their homes. Once the gates are permanently closed I think there may be a few issues that will need to be sorted out.

“It can be a long process if the designer does not have an understanding of what the DRC is trying to achieve on behalf of The Vintage. There are some very impressive million dollar homes.”

“Some long term residents take issue with short-term rental properties. As The Vintage is in a popular tourist area it’s an attractive proposition for some owners to rent their houses out for short-term stays. We get a lot of wedding and weekend parties and sometimes they cause a problem with noise.

Initially there was some exclusivity about the development but prices have since dropped and project builders have been allowed to build on the sites taking some of the high priced, luxury shine off. In saying that, the design guidelines have assured that the essence of The Vintage has not been compromised. Jasmine said that a different demographic was now calling The Vintage home, including a lot more families and younger people who are mixing with the original semi-retired owners who came because of the chance to have homes close to the golf course. For the most part however the residents live in a fairly

“Some residents do get upset by this which is understandable. They value The Vintage because of the Community spirit, they enjoy being sociable and knowing who their neighbours are.” Indeed the community also benefits from having access to an amazing golf course, café and restaurant and access to the nearly Chateau Elan – function centre and day spa. “It is a lovely development with a great feel about it and it’s not near finished yet. There are also larger rural blocks within some of the communities, a few with spectacular homes on them that I just love,” Jasmine concluded. Strata Call

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THE CHANGING FACE OF SYDNEY

The Changing Face Of Sydney By Barry Hyland Visionary architect Tony Owen is at the forefront of new technology which is changing the face of Sydney. Combining his imagination with powerful 3D computer modeling, Owen creates buildings with serpentine curves, artistic swirls and bold colours that are visually provocative yet still manage to be practical, affordable and efficient. Among his recent projects are Danks & Bourke at Waterloo and Alta at Surry Hills, while four spectacular apartment developments – Eliza in Elizabeth Street, Jade in Sussex Street, Eden at Chippendale and Focus at Parramatta are nearing completion and will bring much-needed architectural diversity and visual richness when they complete in 2013. Owen is working on a further 20 or so other projects, several of which are just about to begin construction. Among them are The

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Castlereagh Sydney, Longbeach at Brighton le Sands, Breeze apartments in Drummoyne, Sovereign at Sylvania, and the Canterbury Town Centre. Danks & Bourke is characterised by bold patterns, swatches of colour and sculpted metal louvres that cast ever-changing shapes and shadows on the facade. The visual impact is even more striking internally, where a central glass skylight naturally illuminates all floors as well as the frosted glass walkway between Danks Street and Bourke Street. Designer furnishings and twin tangerine glass conference room boxes ‘lift’ communal spaces from ordinary to extraordinary. Danks street has become a focus for design and inner city chic and this striking building has become a gateway for the area. Alta, on the corner of Goulburn and Riley Streets at Surry Hills, uses curves to create a welcome change from the traditional Sydney box apartment. It has vertical planes of strong highlight colours on the facade and continues the vibrant palette throughout the corridors and lift lobbies, reflecting the energetic nature of the precinct. This building creates public spaces which draws the vibrancy of the Darlinghurst street scene into the development. Eliza is a masterpiece of curves and flourishes, with every floor of the 17-level building being a different shape, and each apartment bespoke. The sinuous shape is now evident and in the coming months the flowing curves of the facades will emerge. We believe this building will become a genuine fixture in the city centre. Eden, at 19-31 Goold Street Chippendale, has an art wall

THE CHANGING FACE OF SYDNEY comprising vertical louvres of varying colours and textures. This eight-storey facade is a giant piece of urban art, exploring the idea of building being a symbol. Up close it’s just part of the colour of the city, but when viewed from afar a distinct image emerges of fabric flowing in the breeze.

environmental sustainable principles which will guide the buildings of the coming era. “Buildings today must be more efficient, both in their use of materials, energy and structure,” says Owen. “We use digital technology to evolve the most efficient strategies, forms and materials.”

The glass-walled Jade at 267 Sussex Street has an ephemeral quality, becoming increasingly translucent as it soars into the sky, culminating in a clear vaulted roof. The sheer 13-storey tower appears to ‘float’ over an arched masonry podium which visually complements the adjoining brick buildings and echoes the character of this part of town.

This pragmatic approach has its own set of rules and a unique beauty of expression which Owen calls ‘Liquid Architecture’.

The futuristic Meta in Lewisham has a bio-climatic screen attached to the façade. The screen will allow planting to form a living façade. This façade creates a micro-climate which cools the building whilst providing sun shading and privacy. This podlike screen reflects the industrial heritage of the site as well as conveying dynamism along the busy road. The screen has been composed to maximise views and integrate with the structural solution.

“We now have the tools to create complex geometric forms as affordably as traditional designs,” said Owen, who honed the technique on his own family home, Moebius House in Dover Heights. Moebius House has received a string of design awards from international architectural publications.

The Matrix in Parramatta also uses a bio-climatic screen element. In this case the screen further explores the notion of façade as public art. The screen was designed by local artist Gary Deirmendjian. He overlays this lattice over the building. The lattice screen is attached to the façade and is made from perforated mesh. The unique design of these projects emerge from the

architect Tony Owen

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HOME THEATRE DECOR

Home Theatre Decor You’ve splashed out on the top of the line plasma television, Blu-ray, games console and audio set-up, but now it’s all threatening to turn your comfortable living room into a small-scale cinema complex. Fear not - there are a number of ways to integrate the latest entertainment technology into your living room so that it blends into the background, and is readily accessible at the same time.

discs and games. And we haven’t even mentioned the remotes! The goal is to find a way to integrate your home theatre into the design of your living room so that it’s readily accessible when you’re ready to pop in a movie or game, but blends into the background when you’re not.

Televisions come in all shapes and sizes nowadays, but by and large they have one thing in common - they’re all slim. Slimline LCDs and plasma televisions have replaced the bulky sets we grew up with, but what they’ve lost in girth they’ve more than made up with in screen size. Many of today’s sets resemble small cinema screens, and while they can easily be hung on a wall or set atop a television cabinet, they still have a tendency to dominate a room.

The two main choices when it comes to home theatre furniture are open wall cabinets, which are often modular and can also be used to house other things such as books, display items and your collection of Blu-rays or DVDs. These can be built-in, floor-to-ceiling designs painted in the same colourway as the walls, of free-standing modular units from shops such as Freedom Furniture or Ikea. By balancing your open cabinet out with other homewares, you’ll detract attention from a dominating screen.

Added to that, you now have all the media equipment that sits alongside your new telly: Blu-ray players, games consoles, audio controllers and speakers, plus of course

The second option is wall unit separates, which are tremendously popular right now and come in a wide range of styles from classic to contemporary. These are wall-

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By Georgia Madden

mounted or stand on the floor, and they are specifically designed to house your home entertainment unit, with intelligent glass, specially designed disk drawers and holes in the back for wiring. Some great places to look include Orson & Blake, which does an art deco-inspired mirrored TV cabinet, as well as a mid-century style in reclaimed timber. Fanuli Furniture offers some very classic designs (alongside its modern ones) that would fit in well in a traditional home. High-gloss or lacquered contemporary units fit seamlessly into a modern scheme - try Moss Furniture or Space Furniture for some inspiring designs. Other options include positioning the television in a recessed niche in the wall so that it blends further into the background, or housing it behind closed doors in a traditional armoire to keep it fully hidden away when not in use. Before you hit the shops for your new television cabinet, go armed with the right questions. Will this cabinet position the

TV at the right height? Ideally, the centre of the TV should be at eye level when you’re sitting down. Does a closeddoor cabinet have intelligent glass so that the remote can read through it? Does it have enough room to house all your media equipment, DVDs and games? Once you’ve opened all the boxes, where should you put? Avoid putting the screen in harsh sunlight where it will receive irritating reflections from the sun. If you have no choice, consider hanging black-out blinds to cut out the light when you’re viewing. If you’re having trouble keeping tabs on all your remote controls, Howards Storage World does a handy remote caddy in faux-leather that sits at the side of your sofa. And don’t let your floor become a jumble of wires: a cable management system, again available at Howards Storage World but also most major hardware stores, will keep wires under control. If you’re drowning under DVDs or CDs that won’t fit in your entertainment cabinet, consider a DVD or CD tower that will keep them neatly on display. Strata Call

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PETROL PRICES & TRAFFIC SNARLS

PETROL PRICES & TRAFFIC SNARLS ‘DRIVING’ SYDNEY’S PROPERTY MARKET Road tariffs also taking their toll . . . By Barry Hyland

Worsening traffic congestion, mounting road tolls and everincreasing petrol prices are ‘driving’ demand for apartments close to railway stations. A recent report revealed that Sydney drivers are paying $2.4-Million a day in tolls – that’s a staggering $896-Million a year. Little wonder developments in inner-ring locations on public transport routes are proving popular. The best example of these is Erko at Erskineville, which is among Sydney’s most convenient locations. The 1.6-ha development is bounded by Macdonald and Bridge Streets, just a few minutes walk from Erskineville Railway Station. Erko is also close to arterial roads, well serviced by buses, and handy to Sydney Airport without being under the flight path. The head of CBRE Residential Project Marketing, David Milton, said proximity to public transport is increasingly influencing real estate buying patterns in Sydney. “This has helped buyer interest in Erko, which is just a few minutes walk from the railway station and bus stops,” Mr Milton said. “Locations where you can do without a car, or at least leave your car at home during the working week, are in higher demand than ever. At Erko you can reach the city by train in a few minutes.” Erko is also ideally located for students and teachers, being handy to Sydney University, University of NSW, the University of Technology, the National Institute of Dramatic Art, the Newtown School of Performing Arts and the Sydney College of Applied Arts. Erko comprises four buildings of contemporary symmetry, with clean lines, compact profiles, tapered rooflines and eyepleasing setbacks. While each has its own identity and street 98

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number the buildings are architecturally complementary. All have rendered masonry façades, robust natural finishes and will be sited around a landscaped park that will provide a focal point for a new and vibrant residential community. There will also be provision for a cafe. The apartments provide a variety of choice, with a wide selection of two and three-bedroom apartments starting from $670,000. They come in two interior schemes called ‘Jett’ and ‘Ash’, and offer oversized layouts with deep entertaining balconies – many capturing city and district views. The terraces will have private courtyards and practical outdoor areas. Among the quality touches are timber flooring, vitrified porcelain tiles, built-in wardrobes and plentiful storage options. The kitchens and bathrooms have been meticulously planned by SJB. Kitchens have Smeg stainless steel appliances, stone benchtops and splashbacks, and modern joinery. Ensuites and bathrooms comprise wall-hung ceramic basins, stone vanity shelving, ceramic floor and wall tiles, frameless glass shower screens, and vitreous china toilet suites. “We’ve designed each apartment with an emphasis on openplan living,” said John Pradell from SJB Architects. “Spatial flexibility has been carefully considered, enabling the apartments to be used for various modes of living. “High ceilings and recessed lighting create generous spaces while deep terraces and shading devices improve privacy and enable residents to modulate their environments.” Apartments are designed to optimise cross-flow ventilation and provide natural cooling and ventilation. But, to suit

PETROL PRICES & TRAFFIC SNARLS every occasion, there is ducted reverse cycle airconditioning. Erko is being developed jointly by Leighton Properties and LaSalle Investment Management. The pet-friendly estate will have 302 apartments and 16 Torrents Title terraces. “Ensuring that the project will result in a functional and sustainable community was central to our vision,” said Leighton Properties National Head of Residential, Gavin Tonnet. “The established character of Erskineville is fascinating, with a genuine main street village, quiet and charming streets of character cottages, and significant parks. “Erskineville’s eclectic village feel combined with brilliant transport options and accessibility to Sydney University, Newtown, the city and the airport make it broadly appealing to an extraordinary rich demographic of differing ages, household makeups, professionals, families and investors alike. “Our brief to the designers was to ensure that these unique qualities were not lost and the apartments provided a home-like offering,” Mr Tonnet said. An Erko display centre is open on site at the corner of Bridge and Victoria Streets from 1pm to 4pm, Saturday to Wednesday. Appointments can be made on 1800 196 107 or through www.erkoapartments.com.au Strata Call

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SOCIAL MEDIA JUST FOR STRATA?

YES!

i g Introducin

HOUSENET STRATA PAGES The strata that’s Th t t managementt ttooll th t’ gott everyone ttalking lki Create a private social network for your strata community.

Hold live discussions, manage events, vote in polls.

At last there’s a social media solution designed just for the unique challenges of strata living. With Housenet Strata Pages, you can create a private social network in minutes, that becomes the perfect online

Store & share minutes, plans, budgets, videos, photos & more!

communication tool for your strata community. Whether you’re a professional strata manager or a lot owner in a self-managed scheme, you’ll love our Strata Pages. Now that is a revolution!

Start the journey at housenet.com.au/strata w w w. h o u s e n e t . c o m . a u And while you’re there download our FREE E-Book ... 100

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Strata Stress Be Gone!

DUTY OF CARE OBLIGATIONS

Duty of Care

Obligations

Story courtesy of BCS Strata Managemnt

Workplace Health and Safety (WHS) laws have been in place for almost a year and during that time it has been outlined what this means for owners corporations in strata schemes.

If the owners corporation does not comply and someone is injured in the course of conducting business, under the WHS Act the fines are:

Recently, a series of seminars where held in both Queensland and New South Wales for committee members as part of an awareness campaign to provide a better understanding of the risks associated with not complying with the new WHS Act 2011.

$3 million for owners corporations/bodies corporate $600,000 for individuals (committee members & managers) and/ or five years jail. These fines are the maximum possible and would apply to serious accidents. There is also a high risk from personal injury litigation.

Committee members have been advised via WHS updates that every piece of legislation and common law that applies to owners corporations has provisions that require the scheme to maintain and repair the property. In all courts and tribunals this duty is strictly applied and where there is a breach heavy consequences can occur. To recap, section 7 of the WHS Act provides an exemption for premises that are used only for residential purposes however the exact meaning of this section is not known at the time and should be viewed cautiously. If you have commercial or retail lots, an employee, or any short term accommodation etc., WHS will impact your scheme. Even if you do not have any of the above, all owners corporations across all states have an obligation to ensure the health and safety of the people using their common property. This ‘Duty of Care’ obligation is based on the strata legislation and common law. It is still advisable for you to take proactive steps to ensure your scheme is not at risk. 102

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We have created five practical steps for owners corporations to take to identify and manage the risks associated with the health and safety of people using common property. 1. UNDERSTAND the concept of the Duty of Care that both commercial and residential owners corporations owe to people either working on or using common property. This Duty of Care translates to the owners corporation taking reasonably practical steps to ensure the health and safety of people using common property. 2. DETERMINE if the owners corporation would be deemed a commercial scheme for the purpose of the WHS Act. If the owners corporation is deemed a commercial scheme penalties can apply under the Act for failure to comply. While residential schemes are exempt from the Act, the standards for a residential scheme to meet it common law Duty of Care obligations will in all likelihood be similar to the legislated work health and safety obligations for commercial schemes.

DUTY OF CARE OBLIGATIONS 3. AVOID penalties under the WHS Act, and mitigate the risk of common law damages, by: identifying reasonably foreseeable hazards or risks, eliminating those risks as far as is reasonably practicable or minimising those risks if they cannot be eliminated. In practice, this will require competent person(s) to periodically inspect the common property, facilities and plant & equipment and provide report(s) either confirming they are safe or detailing any hazards and risks to health and safety. The owners corporation will need to implement any recommendations in those reports. providing safe systems of work and facilities use, together with information, instruction and reporting. To achieve this, the owners corporation will be required to have: A HEALTH AND SAFETY POLICY; Policies and procedures relating to the use and maintenance of common property, facilities and plant & equipment; and systems to keep those policies and procedures updated; Systems to receive notification of hazards identified on the common property; and systems to ensure that all risks associated with each notified hazard are assessed and eliminated or mitigated; Systems to receive notification of incidents which have occurred on the common property; and procedures for investigating, responding to, and taking action to minimise any harm caused from, those incidents;

Appropriate procedures for relevant and timely reporting of information to ensure the health and safety policy, hazard and incident reporting, is monitored and performance reviewed; Procedures for controlling all relevant documents and data required to be kept to ensure it can be readily located and reviewed as required; and is protected against damage or loss. 4. ENSURE each officer (voting committee member) of the owners corporation pro-actively exercises due diligence to make certain the owners corporation meets its obligations under the WHS Act. 5. AGREE and vote to an action plan to address the requirements of the legislation outlined in point 3 & 4 above. A comprehensive and low cost Community Health & Safety solution for Owners Corporation is planned to be launched soon for those schemes wanting to minimise future risks that can lead to common law claims and/or fines under WHS by clearly demonstrating that “all reasonably practical� steps have been taken to ensure the health and safety of all people who use common property at any time. For further information on this solution please contact your strata manager. Remember if you are in doubt about any aspect of the WHS Act or your Duty of Care obligations, speak to your strata manager who will be able to talk to you about your concerns.

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Sydney’s Newest Million Dollar Suburb By Barry Hyland

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SYDNEY’S NEWEST MILLION DOLLAR SUBURB

Who said Sydney Olympic Park would be a “white elephant” once the Olympians packed up and left town? The 640-hectare suburb has become Sydney’s latest to record apartment sales of more than $1 million. Thirteen in fact, with the highest price of $1.295 million. While the majority of sales at Sydney Olympic Park have been under $600,000 for one and two-bedroom stock, the larger apartments have proven to be popular with owner-occupiers. “People appreciate the lifestyle advantages of being in the sporting and entertainment heart of Sydney, with world class facilities and cultural events at their fingertips, 430-hectares of parklands and 35 kilometers of bike tracks,” says David Chittenden, the General Manager of Colliers International. “Rather than the post-Olympics ‘hangover’ some doomsayers predicted, Sydney Olympic Park has gone from strength to strength, and has developed into a sophisticated commercial, retail, medical and educational centre. The influx of permanent residents has made it a complete suburb.” In the recently launched Australia Towers II, 111 of the 267 apartments have sold for a combined value of more than $73 million. The bulk of purchasers for the stunning 25-storey Australian Towers II have come from the Inner West and the Hills District.

Remaining apartments at Australia Towers II are: F One-bedrooms (54-71 square meters internally) from $470,000 to $640,000 F Two-bedroom (77-122 square meters internally) from $565,000 to $1.04 million F Three-bedroom (103-159 square meters) from $935,000 to 1.35 million F Four-bedroom (141-181 square meters) from $960,000 to $1.18 million Construction of the curvacious 25-storey Australia Towers II is scheduled to start next month, with completion expected by early 2014. Sydney Olympic Park is one of Sydney’s few master-planned suburbs, so everything is the best of the best. The NSW Government recognises the Sydney Olympic Park as a precinct of significance with its prosperity assured, with an estimated population of 50,000 by 2030, plus 20,000 daily visitors. Sydney Olympic Park is easily accessible to most of Sydney with nearby bus, train and ferry services operating regularly. Proximity to the Sydney Orbital network comprising of the M2, M3, M4, M5 and M7 means greater Sydney is also quickly and easily accessible by car. The Australia Towers II display centre is on the corner of Australian Avenue and Herb Elliot Avenue, and is open daily from 11am. Further information is available on 1300 882 088 or through the website: www.australiatowers.com.au Strata Call

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Jamesons Strata Management Celebrating 50 Years of Strata Management

We see our longevity in the strata industry as a reection of our service quality. So in order to be here in another 50 Years we will continue to offer our clients the best service possible.

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A PRACTICAL APPROACH TO THE CHANGING LANDSCAPE OF STRATA MANAGEMENT

BY George Vumbaca

Next year Jamesons Strata Management celebrates 50 years in the business of Strata Management and I notch up number 40. Reflecting on what has been a long and wonderful career (so far) I am struck by how much the industry has changed, particularly over the last 5 years. Despite having seen countless changes to our legislation, different governing bodies come and go and numerous competitors enter and exit the market, I truly believe that in the last 5 years, the improvements in technology and the increasing focus on compliance, have brought the greatest new challenges to our industry. Technological improvements mean we now have the ability to access and process information faster and more efficiently than at any stage in our history thus far. And that’s the way we want it: faster, easier, and at the click of a button. Whilst in some areas of our business this is relatively easy to provide (financial reports, access to lot information and

paying levies online are just a few examples), another more challenging aspect is the need to cross pollinate these demands with the procedural requirements set out in the legislation for a swag of different issues. (Creating and registering special By-Laws, striking special levies, issuing notices to comply, calling meetings, the list goes on). The delicate balance as a Strata Manager in meeting the needs of our clients by providing quick and efficient service, whilst ensuring that all legislative requirements are met, is only going to get trickier and trickier and is something that all parties interested in apartment living need to become aware of. We have all read articles about issues with floorboards, visitor parking, pets and washing on balconies; and whilst these may seem minor, they are issues that upset, annoy, anger (take your pick of adjectives) people, and more importantly, take time to be resolved. Having issues dealt with correctly significantly reduces the need for issues to go to mediation. It also ensures that when matters do proceed that far, the likelihood of

a positive outcome for the Owners Corporation is greatly increased. How do we, as a Strata Managing agent help our clients to effectively deal with these scenarios? At Jamesons we have developed a simple solution. 1. Develop a strong understanding of the legislation and explain it to lot owners in a language that is easy to understand. 2. Complete the procedural and time consuming elements of these issues in a prompt manner. 3. Finally, and most importantly, communicate the issues to our clients and be as helpful as possible. We feel truly blessed to be in a growing industry in what are challenging times in the economic landscape. It is our initiative to ensure that no matter what the issue, be it technological, compliance or any other, we make things as easy as possible for all of our clients.

To find out more visit us at www.jamesons.com.au Strata Call

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LOWDOWN ON STRATA LEVIES

Lowdown On Strata Levies Your responsibility for your property doesn’t stop at your apartment’s front door...

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LOWDOWN ON STRATA LEVIES

When you bought your apartment you would have noticed a regular payment of fees called a strata levy. Perhaps you make that payment every due date but never really thought about what those fees cover. Being an apartment owner automatically makes you a member of the owners corporation or body corporate, but did you know that your responsibility for your property doesn’t just stop at you apartment’s front door. The fees you pay go into the administration and maintenance of your apartment’s strata plan. Legally your owners corporation or body corporate is obliged to keep the building’s common property in a state good and serviceable repair and the levy you pay partially goes towards the maintenance or administration, while the rest goes to the sinking fund. From time to time you may also be required to pay a special levy... but more on that later. Does you apartment have a gym, pool, lifts, landscaped gardens, or perhaps even a concierge? To have these cost money to run, maintain and repair and that money comes from the administration levy. The amount of levies paid by owners is decided at each annual general meeting if the owners corporation by majority vote and is supported by a budget. It is also based on the unit entitlementsof each owner - the larger the lot, the greater the levy. The administrative fund covers the day-to-day regular expenses of the scheme. Unless the scheme is self-managed, these fees are collected by the strata management company on the owners corporation’s behalf. The fund covers the following: 9 *# ,',% -$ !-++-, 0# 1 13!& 1 #,20 ,!#1 9 0"#,',% 9 Utility bills such as electricity and water for common area usage 9 ,130 ,!# .0#+'3+1 ," #6!#11#1 9 ',-0 0#. '01 ," + ',2#, ,!# 9 Building valuations (to ensure the sum insured is kept up-to-date) 9 3,,',% !-121 -$ 2&# 6#!32'4# -++'22## 9 3"'2',% ," 2 6 0#230, $##1 9 ,) !& 0%#1 ," -2&#0 2 6#1 9 20 2 + , %#+#,2 $##1 9 Every scheme is different and has various needs and requirements so it’s impossible to quantify what percentage of the fees each of these items makes up.

A proportion of the fees as go to the sinking fund. This is also a legal requirement for strata schemes and covers planned and unplanned expenditure on maintenance, replacement and repairs in the future. The aim is to alleviate a lack of funds for large-scale capital works, particularly in older buildings. Having a healthy sinking fund allows schemes to be properly maintained and also adds resale value to all the properties within the scheme. The sinking fund must be reviewed every five years which is meant to enable owners corporations to budget better and think about their longer term maintenance plans so they aren’t reliant on calling in special levies. -12 -5,#01 !-0.-0 2'-,1 + )# 0#!-++#," 2'-,1 in the plan when setting the amount, but may not stick to these and are not usually expected to, as circumstances may change over time requiring a reprioritisation of expenditure. The last levy to discuss is the special levy which is raised when there are either not enough funds in the administrative fund or the sinking fund to pay for expenses which are deemed to be non essential. These could be replacement of carpets in common areas, interior painting or landscaping. In contrast, essential expenses such as replacing lefts, fixing concrete cancer or upgrading to meet fire safety requirements should be factored in to either the administrative or sinking funds. Special levies are required from time-to-time for the upkeep of certain parts of the building not covered by the other levies and should be expected by lot owners. Remember, maintaining the building is the responsibility of the owners corporation and is a legal requirement, but not only that, it also enhances the value of the individual units. In today’s property market with its highs and lows, anything that reasonably adds value must be music to the ears of the owners and investors alike. Next time the annual general meeting comes around why not have a look at the budget and see for yourself how the levy is broken down. You may be surprised to see what costs are and come to appreciate that you by not living in a house where all the costs are borne by the owner, and instead the costs are divided amongst many owners in apartment living.

2-07 !-302#17 -$ 20 2 , %#+#,2

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life is for living.... leave the work to us

Complete Building management throughout Sydney & the ACT 02 6577 6021 I www.tmmanagementservices.com.au I office@tmmanagementservices.com.au

NEW SOCIAL MEDIA FOR UNIT DWELLERS TO END STRATA HELL

New Social Media for Unit Dwellers to End Strata Hell Housenet.com.au, the social media site for real estate has launched a custom online platform for unit complexes that it hopes will transform strata in Australia.

people experience strata, and with 50 per cent of the population projected to live in high density by 2035 there’s a real need for something like this.”

Housenet ‘Strata Pages’ allows managers or owners to create micro social networks for their building in minutes. With private document libraries, polls and discussion forums it already has the backing of key industry players.

Rosy Sullivan agrees. “I can see Strata Pages creating an environment of positive communication amongst lot owners, therefore reducing tension and conflict within both accommodation and commercial complexes.” However, Strata Pages is very different from several offerings that have recently emerged in the market. According to Mr Moffatt, the Housenet solution is essentially free, and is for all strata schemes regardless of whether they’re professionally managed or not.

“The feedback we’ve had so far is that Strata Pages is a godsend for both industry and lot owners,” said Mr Darren Moffatt CEO of Housenet “Our research found that communication and information management in strata schemes, especially self-managed, is often diabolical. There is no industry standard; some are using old clunky share software, others group emails – it’s a complete mishmash. “Strata Pages solves this problem. It provides a central online place for scheme updates, minutes, budgets, documents, events, and discussions. It even has a polling feature, which we think will be especially useful in the lead up to NSW strata reforms.” Strata Pages has already caught the eye of key industry figures. Rosy Sullivan, Principal of Australian College of Professionals, the largest trainer of strata managers in Australia, sees great potential. “I’m an educator in the strata industry and also a lot owner in a strata complex myself. I believe Housenet’s new product will make a significant impact on the efficiency and effectiveness of managing strata plans. Ms Sullivan is so impressed that she intends to include the platform in her course material for strata managers. “Strata Pages is a tool that every strata manager should be utilising to support their owners’ corporations. We’ll certainly be introducing strata managers to this new product during their training courses with our college.” It’s widely recognised in the industry that disputes between lot owners and communication generally are big issues in strata living. Housenet claim Strata Pages can reduce their impact.

“When it comes to professional strata mangers versus selfmanaged schemes, we’re agnostic. We want our platform to help as many people as possible, so unlike others we don’t charge per lot owner or seek to replace professional managers. “Strata Pages makes it easier for all stakeholders in a plan to store and share information, manage relationships, and meet their legal obligations. Our simple Facebooklike interface makes it easy to use, and it’s also great for building a sense of community in the building and meeting the neighbours.”

“Our platform is all about cutting conflict and saving time. We think it can transform how Strata Call

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DOCTOR FINDS THE CURE TO SYDNEY’S TRAFFIC SNARLS

Doctor Finds The ‘Cure’ To Sydney’s TrafďŹ c Snarls . . . By Barry Hyland

He takes the lift to and from work. While cadging a lift or carpooling is nothing new for Sydney commuters, dermatologist and Mohs surgeon Dr Liang Joo Leow has found the ultimate lift to work, first purchasing an apartment in Dominion at Darlinghurst followed by a commercial suite for his rooms several floors below. “Instead of the drudgery of a time-consuming daily commute I’ll be arriving at work in a few short seconds, fresh and relaxed,� said Dr Leow, who specialises in cosmetic dermatology, lasers and treatment of skin cancer.

Dr Leow says his inner-city clients appreciate the convenience of a one-stop-shop for comprehensive dermatologic care, from skin checks and photorejuvenation to cosmetic procedures and treatment of chronic skin diseases. “My rooms at Dominion will be well-placed to meet that need,� he said. Dominion is being built on a ridge formerly known as Eastern Hill, so not only will the development become a landmark in its own right, but a good proportion of its apartments also gain city – and even harbour – views. “Both my apartment and commercial lot have a spacious design with a northeast aspect, which guarantees plenty of natural light and favourable feng shui,� Dr Leow said.

Dominion is a refined 108-apartment development from Cbus Property on a triangular 4,537sqm site bounded by Forbes, Burton and Bourke Streets, which for 140 years was the Caritas health care facility. It will be completed in May.

“As a place to live, nowhere else in Sydney offers such a wide range of lifestyle venues and activities round-the-clock as the inner east. This corner of Darlinghurst still has a strong inner-city vibe and energy, but retains its village feel.�

“I trained at St Vincent’s Hospital, and once worked at Caritas as a doctor. Until recently I lived just a block away from Dominion so I’ve seen this location expand and develop over the past two decades,� Dr Leow said.

A limited number of apartments remain at Dominion, including: C 9<4 '*)74428 +742

2 &3) C 9-7** '*)74428 +742 2

“I bought my apartment off-the-plan, and when a commercial lot became available it was an opportunity just too good to miss.�

42.3.43 &9 47'*8 97**9 &71.3,-:789 .8 45*3 +47 .385*(9.43 '> &554.392*39 43 47 9-74:,- www.dominionresidences.com.au Strata Call

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BUYERS GUIDE TO KITCHEN BENCH TOPS

Buyers’ Guide to Kitchen Benchtops A dated kitchen, particularly one in an open plan living space, can hamper the style of the rest of your home. One of the simplest and most effective ways to lift a tired kitchen is to fit a brand new benchtop. They come in a variety of different materials, including stone, engineered stone, laminate and stainless steel, each with their pros and cons. Get to grips with the benchtop basics before you hit the shops so that you can make and informed choice.

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BUYERS GUIDE TO KITCHEN BENCH TOPS

WOOD Give you kitchen a warm, earthy feel by laying a solid wooden benchtop. Australian hardwoods such as Jarrah, Spotted Gum and Merbau all make stunning kitchen benchtops, but they’ll need to be sealed regularly and any spills mopped up immediately to prevent staining. For an on-trend look that says everything but ‘country kitchen,’ mix a wooden benchtop with glass splashbacks and stainless steel cabinetry. Always seek out timber from a sustainable source. Check out Australian Timber Laminators (www. solidtimberbenchtops.rtrk.com.au).

LAMINATE Laminate allows you to recreate the look of just about every surface imaginable including wood, marble, concrete and stainless steel, for a fraction of the cost of the real thing. Laminates vary greatly in quality, so it’s worth seeking out one that’s specially designed for benchtops as it will be extra durable, moisture resistant and antibacterial (try Laminex, www.laminex.com.au or Ikea, www.ikea.com. au). If you’re handy with the toolset, you can save even more money by laying a laminate benchtop yourself.

ACRYLIC For seamless look that integrates benchtops, sink and splashbacks in one, it’s hard to go past super-smooth acrylics from the likes of Corian (www.corian.com.au) and Staron (www.austaron.com.au). This versatile material can be designed to fit tricky kitchen spaces without a join in sight, and comes in a wide range of colours ranging from cool whites to electric brights. It’s also non-porous, heat resistant and anti-bacterial. However, some claim that acrylic benchtops look lackluster, and the upper end of the market tends to be expensive.

ENGINEERED STONE Engineered Stone, which is made from quartz and resin, doesn’t pack quite the same visual punch as natural stone, but it’s tougher, less expensive and easier to care for than its natural equivalent. Engineered stone is non-porous, so it won’t require sealing, and it can be cut to fit curved or awkwardly shaped kitchens. The edges of an engineered stone benchtop are prone to chipping and repairs can be costly, but for long-lasting good looks in the kitchen, it’s a sound choice. Try CeasarStone at www.caesarstone.com. au and Quatum Quartz at www.quantumquartz.com.au

STONE With its stunning loops and swirls, stone is probably the most luxurious - and expensive - benchtop material. Granite and marble are available in a dazzling array of colours and patterns, ranging from grey to sparkling blue, and you can choose from different finishes including hi gloss and a more contemporary matt honed finish. Granite is tougher and more scratch resistant than marble, and is generally considered a better choice for the kitchen. However, both stones are porous and will need regular sealing to prevent liquids penetrating. With proper care, though, granite and marble will last you a lifetime. Check out Rococo Stoneworks at www.rococostoneworks.com.au

STAINLESS STEEL Love the look of a professional kitchen? Consider installing a stainless steel benchtop and matching splashbacks. Stainless steel is designed for serious cooking; it’s hygienic, copes with spills and high heats, and is easy to clean. On the downside, it scratches easily and will show fingerprints, so it’s probably not the best choice if you have young children. Mix stainless steel with other materials such as timber and glass to get the current ‘mix and match’ kitchen look.

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HOW TO BUILD A COLOUR SCHEME

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HOW TO BUILD A COLOUR SCHEME

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THE LENGTHS PROPERTY DEVELOPERS GO TO CATCH THE PUBLIC’S EYE

THE LENGTHS – AND EXPENSE – PROPERTY DEVELOPERS GO TO CATCH THE PUBLIC’S EYE $700,000 spent on a ‘shrine’ to love

Home renovation programs and informative property publications are making potential apartment purchasers more selective, forcing developers to build sophisticated marketing suites to satisfy Sydney’s discerning buyers. No longer are glossy images and finishing boards enough to convince most people to part with their money; they want to experience accurate, full-scale replicas of what is being offered for sale. Kitchens and bathrooms are regarded as the most important rooms in a purchaser’s decision-making process, so a great deal of effort goes into building them to the exact specifications. It’s now not a case of ‘what you see is what you get’; it’s what you can touch and sample that influences a sale.

than having to rely upon Computer Generated Images and their imagination.” Private property developer Mark Mezrani spent $700,000 building a lavish on-site display centre for his off-the-plan project at Camperdown, called DNA. The double-storey suite at 5-11 Pyrmont Bridge Road contains a replica apartment, decorated with quirky accoutrements sure to appeal to urban dwellers. But its most eye-catching feature is a massive montage of hundreds of photos and graphics of Camperdown, which goes to the very heart of the overall marketing campaign: ‘I ♥ Camperdown.’ There is certainly a lot of love within the DNA suite, with ‘I ♥ Camperdown’ T-shirts given to people who visit the display.

“When a prospective purchaser inspects a display it’s crucial that they gain an appreciation of how their lifestyle will be transformed for the better,” said Murray Wood, a Director of Project Marketing for CBRE.

“We chose the name DNA to signify it as the very essence of Camperdown,” said Mr Mezrani, who developed The Biscuit Factory on an adjoining site as well as the Brent Street Dance Studios in Camperdown. “I have owned businesses in Camperdown for 20 years and I love the area, which is why the marketing for DNA centres around the ‘I ♥ Camperdown’ theme.”

“Purchasers are well educated in knowing what they want, so it’s far more impressive if they can experience something real rather

Mr Mezrani, who owns Camperdown Cellars (eight outlets), Kidstuff (20 stores), founded the Wine Planet website and is a local

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THE LENGTHS PROPERTY DEVELOPERS GO TO CATCH THE PUBLIC’S EYE

By Barry Hyland personality, gives two salient reasons for having to go to such costly lengths in order to sell apartments in Sydney off-the-plan: 1. the competitive market, and 2. discerning purchasers. “There are a lot of apartment developments being launched at the moment so buyers don’t feel pressured to commit, which makes the sales process longer than it traditionally has been,” said Mr Mezrani. “Developers must adapt to these conditions and do everything they can to make a good impression on every person who visits their marketing suite. “Sydneysiders are very knowledgeable about property, and prospective purchasers are well educated in knowing how to pick quality design and workmanship, which I put down to TV home renovation shows and informative property-related publications.” DNA has been designed by the award-winning architectural firm Marchese Partners with 119 apartments, ranging from studios to two-bedders. DNA’s four buildings range in height from four to seven storeys and encircle two landscaped ‘chill-out’ gardens.

From level three, views to the CBD skyline kick in. “We have broken down the development’s scale by creating a series of intimate-size buildings where neighbours can get to know one another and generate a sense of community,” said Eugene Marchese. “Because affordability is the number one issue with Sydney property, apartment sizes have been reducing, but we think the layouts at DNA are the most efficient we have ever designed. They are clean and uncluttered with lots of glazing to allow natural light in, clever storage ideas, and balconies that exceed prevailing standards for the area.” DNA is under construction. The DNA display, at 5-11 Pyrmont Bridge Road Camperdown, is open for inspection from 10am to 2pm on Wednesday, Saturday and Sunday, or by appointment through Murray Wood of CBRE on (0499) 588 133 or via the website: www.dnacamperdown.com.au Strata Call

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