Today we have a Surprise !! New NSW Strata Laws

I posted about the proposed update of the NSW strata title regulations (see They're changing strata laws again ...) and making submissions.

Today’s the day when the new regulations take effect.  Hurrah !

But, in case you’re not sure what’s in them don’t be upset … no-one has seen them yet. 

That’s because regulations don’t need to be specifically approved by parliament and legislation timetables mean that parliamentary counsel works on them right up to the day before (or the day) they are needed.  Don’t worry though … although the regulations take effect they are subject to parliamentary review for 14 days which means that if a member of parliament wants to object to or change anything they can try and do so until 15 September 2010.

You can see the new regulations, the Strata Schemes Management Regulation NSW 2010 on my website by following the link.

And, from my quick look they appear to be the same as outlined earlier.

So, if you don’t like something in the new Strata Schemes Management Regulation NSW 2010 then complain to the government (and/or opposition) now.

Francesco …

Life (or Graffiti) imitates Art (or Computer Games)

Well it had to happen to sooner or later … the merging of computer games, life and graffiti.

In Portland, Oregon Mario Kart directional arrows are mysteriously appearing in the bike lanes, making them look like the game’s race tracks. 

It’s just too funny for words as you can see in this YouTube video and gives me some ideas for Sydney's streetscape.

Makes me want to pedal harder to earn bonus points and an extra life (in case I need it).

Francesco …

A New New York Skyscraper

In New York they’re planning another skyscraper.

It’s a 67 story skyscraper near Penn Station in Midtown Manhattan. The height of the proposed tower is just 34 feet (10 metres) less than that of the Empire State Building and only 900 feet (280 metres) away from it.

If built, the new skyscraper would be in direct competition with the Empire State Building (which has stood alone for 79 years), obstructing the view of it in some directions and permanently changing the midtown skyline.

NYC Mayor Bloomberg is in support of the new building, and City Council voted in favour of the proposal.

If the remaining hurdles to development are overcome, the New york skyline will change another time this decade.

Francesco ….

Sunset over Sydney

Another nice way to end the week is to watch the sun set over Sydney.


This great video called Sydney in Motion was made by Winston Yang and the YouTube link is http://www.youtube.com/watch?v=FFLMJroSHHw 





Enjoy.


Francesco ...

Lunarcy … Real Estate on the Moon

I don’t think we have enough strata schemes and strata apartments … anywhere.

Even the most densely populated parts of the world could have more buildings, taller buildings and smaller apartments so they house more dwellings and people.

And, that’s a good thing for lots of reasons as I’ve already posted about this year.

But, as my posts have also identified many people are opposed to creating apartments where there are already houses, want apartment buildings to be lower (not taller) and smaller and most people want larger spaces to live in. 

Since it ain’t easy getting more strata schemes built in existing areas, I thought … why not go inter-planetary and start strata developing high density dwellings the moon ? 

But, guess what ?  People are already starting to do something like that (and it’s not NASA) by selling real estate on the moon.

It seems that a few groups have claimed legal title to parts of the moon and are selling parts of their claim lunar landscape to earthbound citizens.

According to their legal advice and propositions, they argue –

• The two international treaties covering the moon, The Outer Space Treaty of 1967 and the Moon Treaty of 1984, only refer to the "exploitation of the Moon and other celestial bodies for profit purposes" and not ownership
• The Outer Space Treaty of 1967 explicitly forbids any government from claiming a celestial resource such as the Moon or a planet
• So, governments cannot appropriate the Moon or other celestial bodies
• But, commercial enterprises or private individuals can claim, exploit or appropriate celestial bodies for profit

*  Please note that I’m not advocating the correctness of this logic.

Some lunar of the sellers include -

Lunar Registry -  who have the catchy slogan “Nothing could be greater than to own your own Crater” and offer you the opportunity to select and buy your own acre of moon property, complete with an elegantly engraved and personalized parchment deed certificate, full mineral rights (including Helium-3), a satellite photograph of your moon real estate, geographic information to help locate your land on the moon (whether you're viewing it through a telescope or visiting in person) and much more!

Lunar Embassy - who can offer you land on the moon and a variety of other planets too.

Unfortunately, not everyone agrees (funny thing that isn’t it) and there are competing claims for some lunar sites.  Plus, there’s no guarantee you will ever actually be able to use the lunar land you own.  

But it’s cheap.  For instance, a 1 acre plot in the Sea of Vapours costs US$18.95  (and that includes a neat looking certificate of title).

However, remember that currently it’s slow, dangerous and difficult to get there and back.  Manned trips to the moon have taken between 3.5 and 8 days and for the time being you’ll have to become an astronaut.  Plus when you get there you’ll only be allowed about 30 minutes on the surface which is not really long enough to enjoy your new property.

But, I suppose, you could look at your lunar land from a telescope provided you don’t buy on the dark side of the moon.

So, I’m thinking of buying a few hectares and getting a community title scheme approved with 30 - 40 apartment towers, some office towers and giant shopping mall, sports and entertainment complex for future development.

Do you wan’t to buy a cheap apartment off the plan … completion due in 2051 (give or take a decade) ???

Francesco …

A Strata Apartment in a Capsule

I’ve already posted a few times about how small apartments are and can get but, small has a different dimension in China.

In Beijing a former engineer has developed the first capsule apartment.

Each dwelling is 2 square meters and just fits a bed, desk and laptop.  There’s no toilet in the apartment or in the building of 8 such apartments. 

Most of the capsule apartments are occupied by poor university students who can rent them for the equivalent of US$35 per month. 

Since property price in China have been rising by at least 11% per year for the last 5 years (making real estate increasingly unaffordable) such low cost accommodation is necessary and popular.

You can see The Age video report on the capsule apartments here.

I’m not sure that these capsule apartments would work here but we’re already seeing students renting sunrooms and balconies to live in.  And, I even heard about some apartments where the second bathroom was being used by student as their bedroom.  So … you never know.

And, at least there’s not a lot of cleaning and you won’t be bothered by visitors.

Francesco …

Street Art or Graffiti ???

Following on from my post last month it turns out that not everyone sees this as art on buildings.  In many eyes it’s graffiti and a bad thing.

So, I’ve delved into things a bit further and discovered the following views and issues.

Some people support graffiti (in some or all cases) including Act Now, who promotes and supports debate about the merits and displays many images of the art on show on Sydney streets.  And, this feature by Time Out Sydney.

The NSW government is opposed to graffiti having implemented strict laws as explained below.  In fact, Attorney General, John Hatzistergos MP, said in parliament that ‘graffiti is not a victimless crime and is not simply a costly eyesore; it makes people fee unsafe and the community has had enough’ and ‘the tough, extraordinary measures on this bill leave no doubt as the Government’s view of people who deface property and how they deserve to be treated’.  The whole speech can be viewed here.

Whilst local councils struggle with graffiti and have implemented various strategies to deal with it.

The City of Sydney has a Graffiti Management Plan and a website where you can report graffiti for clean up.  According to their statistics during July 2007 - June 2008, there were 411,368 incidents of graffiti and bill posters in their area covering more than 170,000 sqm.

Under the Graffiti Control Act 2008 local councils can remove graffiti that is visible from public places with our without the land owner’s agreement and must keep registers of this kind of work.

Liverpool Council also wants graffiti removed as this report on a dispute about a well known graffiti wall in July 2009 explains … the wall is now gone.

Worse still, graffiti will get you into trouble with the law (at least in NSW) because of the Graffiti Control Act 2008 which makes it an offence to intentionally damage or deface premises or property with a graffiti implement (which includes spray paint, marker pens and anything else that leaves a permanent mark) and attracts jail and money penalties (S2200 or 12 months).

Even stricter controls apply to under18 year olds who can’t have spray cans or graffiti implements.  Nor can anyone sell or supply these things to minors and shopkeepers aren’t even allowed to leave spray cans in unsecured areas.

And people who offend these laws may also have a penalty of up to $2200 imposed on them to cover the cost of graffiti removal.  Offenders can also be ordered or volunteer to clean up graffiti under community service schemes in place of penalties at the rate of $30 per hour.

But, at least permission or the building owner or other lawful authority is a defence.

So, if you like or want street art bear in mind not everyone agrees so get permission and don’t involve anyone under 18 year olds.

Francesco …

Move over Power Stations … Here come some more Apartments !

Going green is all we ever hear these days so it’s nice to see strata doing it’s bit in Melbourne to help.

On the corner of Lonsdale and Spencer Streets in Melbourne there’s an old power station and it’s chimney.  An eyesore and a reminder of less environmentally conscious times, the site has now been acquired by Far East Consortium who propose a large scale residential redevelopment.

Dubbed Upper West Side by the Hong Kong-based developer, it plans for 2500 apartments ranging from studios to one and two-bedroom apartments in 4 towers of between 31 and 50 storeys and a low-rise building. The development will also have up to 60 retail spaces.

The site houses a heritage-listed cast-iron water tank built in 1889 and the developer has agreed to preserve two other original buildings along the Spencer Street border.

The project is one of the last large-scale city developments awaiting ministerial approval before new planning arrangements announced a few months ago take effect.  Apparently there are applications for CBD developments of more than 25,000 square metres going before a panel comprising government and City of Melbourne representatives, which will in turn advise the minister.

So far an application to build a ''display home/marketing suite'' was issued by the City of Melbourne in February.

So, if you want to live on an old power station head down Lonsdale Street.

Francesco …

A Hung Strata Parliament ...

Watching final few days of the Federal Election 2010 and see the hung parliament outcome made me think of the same thing in strata and whether the same things could happen there too.

All strata schemes hold annual elections to elect a committee from owners or owners' nominees.

But, unlike the Australian Federal Election voting is not mandatory and only a proportion of owners actually vote each year for their committees.

And, if owners have not paid their levies, owe other money or have not properly registered their ownership with the strata scheme or don’t properly prepare or lodge a proxy their vote is not counted … a bit like an informal or invalid vote.

There is not the same style of electioneering in strata committee elections but candidates to canvass support, proxies and make election campaign speeches (often at the Annual General Meeting where the election occurs).

And, like the Federal Election, owners only get to vote for the committee as a whole to run the scheme and the committee choose the Chairperson, Secretary an Treasurer.

So, things in strata are not that different to the real world of politics.

Now that I think about it more I can think of a few strata schemes that have looked like the new Federal political landscape with –

• a committees of 9
• two factions of 3 members each who are diametrically opposed to each other on everything,
• 1 committee member who is green and wants to save the planet, and
• 2 other committee members who are only there to pursue one issue and are wild cards on everything else

making decisions at committee meeting uncertain and variable.

Sound familiar ???

I guess that in both cases whatever happens there’s still a strata scheme (or country) left at the end of their term for the next group to deal with ...


BTW ... here's an Interactive Representation of Federal Seats from the 2010 Federal Election.

Francesco …

Sunset over Queens, NY

For the weekend here's a nice combination of some of my favourite things - buildings, cityscapes, New York and colour.


It's by Eugenie Tung shot with lapse video in Sunnyside, Queens last Wednesday.


Enjoy.  





The Youtube link is http://www.youtube.com/watch?v=vBnxZpNcBWc


Francesco ....

Tiger & Alligator in an Apartment…

I’ve posted before about the rules for animals in strata schemes (see Are they In or Out ??? Pets in Strata) and about Fantik , the Llama, in the Moscow apartment (see What sound does a Llama make (in an apartment) ?).

But from the land of all things crazy come even more bizarre strata pets.

In Harlem, New York, Police responded to a sequence of bizarre reports that eventually had them capturing a 450 pound (200 plus kilogram) Bengal Tiger that was living in an apartment.  And, it was sharing the place with a 3 foot alligator.

The story goes something like this ...

Police received a call about a dog bite at a 19 storey apartment and found  Antoine Yates in the lobby with a serious injuries to his right leg and arm.  He told them it was caused by a pit bull terrier.  Yates was taken to hospital for treatment and kept overnight.  The next day Police received an anonymous report about a ‘large wild animal being kept somewhere in New York’ and that it ‘was biting people’.  A day later another anonymous call led the Police to Yates’ apartment.

When they arrived there Yates was nowhere to be found and they were told he was keeping a tiger in his apartment by a fourth-floor resident who complained that urine had seeped through her ceiling from Yates' apartment.

Still trying to determine what they were dealing with, police cut a hole in Yates' door and saw the large tiger pass by the open hole.  Apparently the orange tiger looked well-fed and in ‘great shape’ and was seen lying by the window, and contentedly licking its paws.

Police decided to rappel from above and shoot a tranquilizer dart from outside to sedate the tiger.  Officer Martin Duffy got the job, lowering himself from a seventh-floor apartment, armed with a tranquilizer gun and an M-4 rifle. Once at the window, he tapped on it with his shoe to get the tiger's attention and the tiger lunged.

When Police entered the apartment they found the animal unconscious atop a pile of furniture and an alligator was nearby. Both animals were taken to an animal shelter.

Yates was charged with reckless endangerment and Police suspect Yates got the tiger when it was a cub and had lived with it for as long as two years.

There’s a funny YouTube video too.

As they say, only in New York … or at least I hope so!

Francesco … 

What makes for a good investment apartment ?

It’s obvious from research and anecdotal knowledge that strata apartments attract investors and that investor form a large stakeholder group in Strataland.

But what makes an apartment a good investment (as opposed to a good place to live) ?  Or are they the same thing ?

In a recent article in SMH Domain Carolyn Boyd wrote about Investor Tips for Units and identified the following things –

• Location of the apartment in relation to work, lifestyle and transport
• Amenities in the apartment and the building and nearby
• Large or small blocks (although she hedged on which is better)
• Outlook from the apartment
• The size of the sinking fund

Now, it’s hard to argue that these are all important but at the same time it’s not a sophisticated anaylsis.

So here are my 7 factors that will make an apartment potentially more attractive to most investors.

1.   Location – But location in relation to the things likely residents want.  The best suburbs and places are clearly going to get higher rents and lower vacancy rates but they will also cost more and therefore give a lower yield.  So location needs to be matched to the resident market.  Smaller inner city apartments need to close to professional work locations and low cost fun places since they will be occupied by white collar workers who spend their incomes.  2 and 3 bedroom suburban apartments need to be close to public transport for the couples who occupy them to get to  and from work cheaply and close to schools and day care facilities for the younger families they have.

2.  Useful space – The more space in the apartment the better but it also has to be useful.  A large corridor adds space but can’t be used so look for sizable and useable bedrooms, bathrooms, kitchens and living spaces (plus make sure the parking space can actually fit a normal car).

3.  Good quality fittings - Although everyone wants designer interiors in the real world for most people they would rather have a stove, dishwasher, taps, drains and lights that work all the time.  And, doors, windows and cupboards that open, close and store things properly.  Plus after years of tenant use only quality fittings are still functioning without needing regular repairs.

4.   Stable Strata Financial Affairs – Whilst lower strata operating costs are desirable for investors since they increase yields, it’s more important that strata operating costs are stable and vary only a little from year to year.  It’s no good making an extra $1,000 one year because strata levies are lowered only to have to pay $2,000 more (or worse) the next to make up the shortfall. 

5.  Simpler Buildings – The more complex features there are in a building the higher the operating costs and unless the rent is proportionately higher because of those features, investors will be worse off.  So the simpler buildings are best unless you can get higher than average rents for the extras.

6.  Good Strata & Property Management – Getting slightly lower strata levies or slightly higher rent is nice but if it comes at the risk of a crisis because of poor strata or property management the gains will be lost very quickly.  A strata problem that adds $500 to your next year’s levies will be 2-3 times the strata managers fees and not having a tenant for 2 weeks more than normal is a 4% revenue loss in that year. 

7.  Good Tennants – Obvious isn’t it !  Good tenants pay rent on time, stay longer, accept fair rent increases and look after the property.  And other tennants do the opposite – costing you money every time.  What makes a good tenant is debatable but at least investigate potential tenants properly to make the best decision you can.

What do you think ?  

Do you have others factors and/or do you disagree ?

Francesco …

A General Meeting about General Meetings ???

On Saturday, the Owners Corporations Network will hold it's Annual General Meeting at Pyrmont.


Apart from the formalities, OCN will also have a speaker on the disturbing topic of timber floors in apartments and a discussion group on the topic.  There's also the opportunity to share strata-war stories with similar minded folk and enjoy the sights, sounds and smells of Jacksons Landing.

So, if you want a dose of Saturday strata why not attend ?  It's being held at the Station House, Jacksons Landing, Bowman Street, Pyrmont and the Agenda's here.


And, don't you think it's funny when a group that exists for groups who hold meetings hold it's own meeting ???


See you in Pyrmont on Saturday.




Francesco ...

US Courts say NO to exclusive cable rights in Apartments

The US Court of Appeals has ruled that cable companies cannot have exclusive rights to provide service in apartment buildings that they wire - upholding a Federal Communications Commission (FCC) ruling that banned the exclusive agreements as anti-competitive.

Typically cable companies (like telecommunications companies here) do deals in buildings where they install a valuable service like wiring a multi-unit building for cable in exchange for the exclusive right to provide service to all the residents. But the Federal Communications Commission (FCC) said cable operators could no longer enter into such deals and existing ones could not be enforced.

The National Cable & Telecommunications Association and a pair of affiliated real estate groups sued, saying the FCC did not justify the change in policy, consider the retroactive effects or have the authority to regulate the deals. But the appeals court sided with the FCC and said it acted well within the bounds of the law.

It’s too early to tell what effect the decision will have as existing arrangements have been in place for a long time and new service agreements will take time to be negotiated and filter through in any significant numbers.

But, it is clear that the decision will reduce (if not end) cable companies offering free or low cost cabling to buildings and, as a result, will mean that building owners will bear the cost of cabling themselves.  This is also likely to reduce the number of buildings that cable up and therefore reduce the availability and quality of cable (and other related) services to building occupants. 

From my perspective it seems a perverse outcome for a pro-competition entity like FCC: that by opening up buildings to multiple cable companies to improve resident options, no-one will cable buildings for free so there will be less cabled buildings and less resident options for cable television and other services.


So user pay principles win again .. but not necessarily to the consumers’ advantage.

Francesco ...

Clover Moore speaks Strata to Managers …

Last Friday, 13 August, Clover Moore (the Lord Mayor of Sydney and NSW Member of Parliament) spoke to managers and others at an ISTM Briefing Seminar.

Whilst discussing the challenges facing Sydney and the city’s plans of deal with them she revealed some interesting information about developments affecting strata stakeholders and said that she believed that in Sydney ‘apartments are an attractive and desirable living option’.

Firstly, she discussed the new Local Environmenttal Plan (the legal document that governs land use and development) for the Sydney City local government area. 

A new LEP will be exhibited for public comment soon.  It has been designed to implement the Sydney City plans for the future (Sustainable Sydney 2030) and according to Clover Moore “long established planning norms are being revisisted”.  And, because BASIX sets an overall environmental standard that is lower than Sydney City’s objection the new LEP will give 10% bonuses on floor space to developers that meet higher environmental standards and require other facilities (like bicycle parking, car sharing, etc) to be included in new developments.

Secondly, she told us that her private members bill for reforms of strata laws was taking longer than possible and would have to be undertaken in stages because she was not able to get parliamentary counsel to draft the bill in full. 

So, stage one of her proposed will cover the less controversial things and include –

• objectives to be included in the act about what the strata scheme should be doing
• notification to owners corporations of any development applications in the building and a specific right to object
• defining the chairpersons role and introducing a code of conduct for the role
• regulating general processes better
• unspcaling the requirements to disclose connections by executive committee members
• upscaling the obligations of strata managers to disclose relationships
• strengthening the document handover obligations on developers

Apparently the draft bill has just been finished and is being reviewed by her staff and Makinson & d’Apice (the lawyers assisting her on the reforms).

Thirdly, when asked about car clamping and why it was not legal she said that we are too obsessed with cars and we should challenge the importance of the car by coming up with more creative solutions for transport and more options for people that lessens the overall problem. 

In other words, if you have a problem with parked cars … get rid of all cars.  You gotta love it.

Finally, Clover Moore was completely non-plussed about any criticism of the new cycle-way simply saying it was just another viable transport option for residents and workers that wasn’t going to suit everyone.

So, in my view, she presented an informed and intelligent commentary on Sydney’s future and how she sees the issues best addressed.

More power to Sydney …

Francesco …..