The William is an iconic landmark building in the heart of Melbourne with a luxurious 600 Lot Scheme. The National Telecommunications Building was transformed by the Hengyi Group, in 2011. The William Consists of 2 adjacent buildings, a 23 storey tower and a 21 storey building with a total realisation value of 310 Million dollars.

 

What makes this building more interesting is that there are 5 Owners Corporations within the strata scheme.

 

OC1 Is the main building envelope with the lifts and building management system

 

OC2 is the Commercial section of the scheme.

 

OC3 is the Wyndum Hotel Section

 

OC4 is the Residential section

 

OC5 is the Shared Facilities ,comprising of the rooftop pool, gymnasium , library, and meeting rooms

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foyer 2

 

Pets In Units

This article discussing the funnier side to living with pets in strata units has been prepared by Peter Greenham,Independent Inspections.

Living with pets in strata units has always had its challenges, especially in relation to the management of the complex and common property areas.
Just to convey how complicated some of these issues can become, I’d like to relay a recent experience I had with a strata complex we look after. The building manager of the complex received a call asking for urgent assistance – some water had penetration into a unit from the common property, and the owner wanted somebody to call past and take a look at it as soon as they were able.
The manager asked the lot owner if they wanted a plumber called out to inspect the leak, pointing out that if the problem was not on common property, the lot owner would be charged for the callout.
To avoid unnecessary service and/or call out charges, a photo of the affected area was requested to determine the cause of the leak and the surrounding impact of the issue at hand.
After further discussion and questioning about the issue, it became apparent that the lot owner had a pet cat, and the neighbour in the lot next door had a dog.
Finally getting to the bottom of the matter, it seems that the dog decided to mark it’s territory on the front door and carpet outside the neighbouring lot, causing the offending ‘water leakage’.
A few days later the urgent incident was downgraded as the ‘water leak’ had mysteriously stopped, and the area had dried out.

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Owners Corporation Management Plan Presentation

What is a Maintenance Plan?
Definition
A detailed and comprehensive estimate of the councils corporate’s Maintenance Fund expenditure for the scheme’s 10 financial years that must include an estimate for the repainting of common property and of buildings that are Councils corporate assets.

Thoughts
Think of it as a servicing schedule for your car, with services in years rather that kilometres.

Tax Depreciation Presentation tax

What is Depreciation ?

 

Depreciation is the amount of money you can “write-off” (claim as expensed or used up) against the value of any assets used in the course of producing assessable income.

 

In the case of property investors, investors may offset their taxable income against expenditure on plant and equipment used to produce assessable income.

 

Plant and Equipment includes items such as Ovens, Dishwashers, Carpets Blinds, Lifts, etc. The ATO provides specific guidelines as to how these write-offs are to occur.

Who Can claim the Depreciation?

Depreciation can be claimed by the owner of the Plant and Equipment, the one who is earning income from the use of these items.

 

Picture2 Strata Safety Management Presentation

CHANGES TO YOUR OBLIGATIONS TO MANAGE SAFETY IN THE WORKPLACE

The WHS Act requires all persons who conduct a business or undertaking to ensure, so far as is reasonably practicable, that workers and other persons are not put at risk from work carried out as part of the business or undertaking. The WHS Regulations include specific obligations to manage and control Risks and asbestos at the workplace.

In some cases, there may be more than one person with management or control of a workplace for example:

  • A person with management of a workplace is a tenant, and
  • A person with control of a workplace has the power to make decisions and changes to the structure and use of the workplace..

Sinking Fund Management Presentation 0713

What is a Sinking / Reserve Fund ?

Picture1Definition

A detailed and comprehensive estimate of the councils corporate’s sinking fund expenditure for the scheme’s 10 financial years that must include an estimate for the repainting of common property and of buildings that are Councils corporate assets.

Thoughts

Think of it as a servicing schedule for your car, with services in years rather that kilometres.

 

What is a Ininsurance valsurance Valuation?

Definition

The Replacement value involves the construction of a building having the same functional use and of the same useable area as the building was originally and also to conform to regulations and bylaws since the original date of construction

Insurance Valuation Management Presentation

asbestos management for strataAsbestos Management Presentation

Why do we need a Asbestos Register ?

Starting the 1st of January 2012, buildings built before 31st December 2003 are required to have an Asbestos Register and Signage. Previously these requirements were prior to 1990, an Asbestos Register was required to be on site.

 

Note: An asbestos register is required to be prepared when:

  • The workplace is a building that was constructed before 31 December 2003

 

The register should be reviewed at least once every five years to ensure it is kept up-to-date.

The rollout of the national broadband network is a part of the transiting AUSTRALIA to the digital future, but it seems that thy get attention for all the wrong reasons. Recently there was a complex where they were asked if they wanted connection to the national broadband network. The body corporate then declined the upgrade and defeated the motion. Then one day there was a team of technicians that installed the waiting to the complex, and the conduit was not only in a unsightly place on the building, but the Colour of white did not match the Colour of the building and made it look like a cheap job. Now this has been installed it is now an asset of the strata scheme. The good news was after a complaint was made, the conduit was Colour coded to the building.

An insurance policy is a mechanism to protect the things we value, that can vary from a unit to a vehicle.

 

Determining the replacement value of a building or a item can vary on its type and construction.

 

Strata title insurance it designed to protect the owner and the strata assets, and the premium is shared amongst the lot owners as a component of their strata fees.

 

Holding strata insurance is mandatory for strata schemes around Australia. Some strata schemes are under insured and it is best practice to obtain a independent insurance valuation once every five years, to determine if the building is adequately covered to be replaced, in case of a event.

 

The reinstatement cost is where a property is lost or destroyed in a event of fire or extreme event. Where the property is to be replaced of the condition that was equal to than its condition when originally constructed.

 

Improvements to be building should be made known to the strata manager, so they can be included in the replacement insurance valuation.

 

The strata scheme valuation only includes the fixtures and fittings in the building, such as kitchens,walls and appliances. Internal contents of the building is not included in the insurance cover.

 

There was one building we used as a case study, where the building experienced a fire, it was 2 commercial units.

 

The site was fenced off and it sat idle for twelve months, Then the rubble was removed after 14 months and then the site was bare for another six months. Then often 18 months after the event, building finally was started. Then the building was completed 26 months after the initial event.

 

This is where the loss of rent is part of the insurance policy, to cover costs of alternative premises until the building is rebuilt.

 

There is also an issue with asbestos that can impact your insurance policy Where there was a building that has an asbestos roof and the insurance cover would not be reinstated untill the roof was replaced with metal sheeting.

 

The recent bush fires and cyclones hi light the importance of insurance for building, plant and equipment.

 

Queensland Cost of damage for cyclone Ida in 2014 was $8,400,000 Cyclone Marcia in 2015 cost has reached $50,000,000 New south wales bush fires for 2013 was $183,400,000 Perth bush fires for 2014 was $15,000,000 Northern territory cyclone Tracy, in current costs would be 2 to 3 billion dollars.

 

There was a report that was released from the bureau do transport economics, that was titled the economic costs of natural disasters in Australia

 

The risk of natural disasters form the backdrop of our everyday lives, we can use insurance as risk management in the reduction of the impact on operations in a normal manner.