ABOUT LIN ANDREWS REAL ESTATE

GREETINGS FROM THE FOUNDING DIRECTOR

Lin - Photo

Lin Andrews, Founder and Group Chairman, shares……

“Our Group history goes back to 1969 when my wife (Bunty) and I sat one Saturday night free from socialising. We paused to consider our privileges….

Our questions… “How can our lives make a difference?” That night we resolved to do something very bold!

At the time of these decisions, South Australia was implementing its Development Act 1967 – 1972 and talking a lot about tourism.

We built holiday flats at West Beach and then at Grange. These were followed by an office building, a warehouse and several homes.

During those first years, we invested and established a number of companies in diverse industries but always achieved our greatest satisfaction in the property industry.

We became agents as well as developers!
As agents we had a passion to assist people who were not generally trusting of Real Estate Agents. Our Agency business grew disproportionately to our other activities… possibly because we really liked helping people.

Most people lacked confidence in their ability to invest in the future.
People were disillusioned with the repetitious collapse of other investment schemes which rose to prominence from time to time.

We resolved to assist people to own their own real estate.
Investment seminars and excellent property management services made this possible.

These residential investments became a store of wealth to investor clients and provided accommodation for those who needed a home to rent.
At a later date we added commercial property to our skill base.

Commercial property meets the needs of entrepeneurs who grow businesses and create employment.

It may also offer a higher rate of cash flow to investors who are dependant upon their rental income.

Today we facilitate employment and accommodation across an increasing number of communities, throught the provision of property management, sales and leasing services for a diverse range of residential and commercial property.

We also design and develop commercial property according to community needs.
I am increasingly convinced that principle centred economic activity is the way to meet the sustainable needs of every community. We are proud to be a part of this great economic solution.”

MEET OUR TEAM

Directors

Commercial Sales & Leasing

Commercial Property Management

Residential Sales

Residential Property Management

OUR STORY

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Lin Andrews, Founder and Group Chairman, shares……

“Our Group history goes back to 1969 when my wife (Bunty) and I sat one Saturday night free from socialising. We paused to consider our privileges….

Our questions… “How can our lives make a difference?” That night we resolved to do something very bold!

At the time of these decisions, South Australia was implementing its Development Act 1967 – 1972 and talking a lot about tourism.

We built holiday flats at West Beach and then at Grange. These were followed by an office building, a warehouse and several homes.

During those first years, we invested and established a number of companies in diverse industries but always achieved  our greatest satisfaction in the property industry.

We became agents as well as developers!

As agents we had a passion to assist people who were not generally trusting of Real Estate Agents. Our Agency business grew disproportionately to our other activities… possibly because we really liked helping people.

Most people lacked confidence in their ability to invest in the future.

People were disillusioned with the repetitious collapse of other investment schemes which rose to prominence from time to time.

We resolved to assist people to own their own real estate.

Investment seminars and excellent property management services made this possible.

These residential investments became a store of wealth to investor clients and provided accommodation for those who needed a home to rent.

At a later date we added commercial property to our skill base.

Commercial property meets the needs of entrepeneurs who grow businesses and create employment.

It may also offer a higher rate of cash flow to investors who are dependant upon their rental income.

Today we facilitate employment and accommodation across an increasing number of communities, throught the provision of property management, sales and leasing services for a diverse range of residential and commercial property.

We also design and develop commercial property according to community needs.

I am increasingly convinced that principle centred economic activity is the way to meet the sustainable needs of every community. We are proud to be a part of this great economic solution.”

PUBLICATIONS

FEEL GOOD… ABOUT YOURSELF AND YOUR SURROUNDINGS

The last month of Autumn and still our trees are covered in their Autumn shades of green, brown, orange and yellow… but with a rich carpet of leaves beneath our feet.

The warmth of summer has lingered, but the eerie creep of winter chill, is increasingly evident.

The message of the season is one of colourful change… as we say goodbye to our immediate past… and face a future of change in season and possibly in politico/economic life.

The early morning sun on my north facing window admits brilliant sunlight, warmth and inspiration…  a sense of wisdom… of well being!

YES… today is mine… today is yours also – to choose and to plan… to influence… to guide.

My future and yours is not totally in the hands of others… of politicians and influencers who may express a different view… Today provides opportunities for me… and my peers… too valuable to be missed!


POLITICS AND PROPERTY

Political debate is at a high level.

As a business organisation of 49 years, we prefer not to show bias… however this particular political campaign hits at the very foundations of our Profession and our Industry. We have provided a comment as to our views at the very end of this newsletter…. Please read and consider it.


INDUSTRY COMMENTARY

The month of April had a huge chunk of working days diminished and taken as holidays. Easter and Anzac combined with School Holidays, and many took advantage of this by adding some Annual-Leave days and achieving a welcome break of two whole weeks.

It is fantastic to have a refreshed workforce going forward but it wreaks havoc with production during the month of April.

The Federal Elections have also impacted as people have a sense of insecurity and defer decisions until confidence returns.

Residential tenants – Seem to feel insecurity a lot and prefer to renew leases as they come-up for renewal.

This has meant lower new leasing activity in the residential sector. Available stock is low and new investors who are always welcome, would be particularly welcome now!

Some investment stock is being sold as people withdraw their money from the sector.

Residential Sales – Still buoyant for properties nicely presented. (I have made special reference in this newsletter to a former rental property being sold at Hewett… adjacent Gawler… It demonstrates how beautifully a former rental property may be restored to its original glamour for purposes of sale when an investment portfolio is being managed correctly. It is no wonder that our landlords achieve outstanding results when it is time to take cash and move-on).

Commercial Leasing – Slower, pending the election results.

Commercial Sales – Lower value properties, securely leased, are in high demand as investors move from shares and residential property into positively geared commercial property.

ASTUTE PORTFOLIO MANAGEMENT

At 7 Carpentaria Way, Hewett (adj Gawler) is a luxury home with swimming pool, 4 Bedrooms, 3 Bathrooms, massive living/entertaining areas both indoors and outside.

It runs down the side of a hill providing fabulous views plus space for trees or your own orchard.

I would like as many as possible of our landlords to see this home as it reflects great asset management by its owner.

Originally a family home, but then rented rather than sold when career circumstances changed. The owner is now satisfied that the property is surplus to his ongoing needs and has prepared the property for sale.

We usually counsel that people transferring to a different location should rent for a period, and then re-assess in the light of proven long term changes.

This property truly reflects excellent portfolio management and wisdom in dealing with career development and life’s changing circumstances. Problems faced by our clients daily.


THE POWER OF CAPITAL GROWTH

Thirty Four years ago I personally sold a small home at Salisbury Park for $28,000. The couple were circa 47 years of age.

This week that home sold to its new owners for $295,000. (Sold by Lin Andrews Real Estate again).

For 34 years my purchasers lived in that home with its large garage/workshop, for the costs of Council and other Statutory Charges. It was paid-off many years ago and the owners did not have to fund rent payments out of their pension… because there was NO RENT.

We used to say that a property doubles in value every 10 years… good times and bad. $28,000 X 2 = $56,000 at 10 years. $56,000 X 2 = $112,000 at 20 years. $112,000 X 2 = $224,000 at 30 years.

It sold and settled at $295,000 which is circa the performance we were taught… but the original cash was only 10% of purchase price or $2,800.

We have a constant stream of stories like this… and it makes me proud of my life work. Those clients were real battlers when they purchased all of those years ago, but they listened and acted even though they thought at the time they had “missed the boat”.

Will these stories continue?

Population increase, higher wages as the years pass-by, higher costs of construction and of land supply are all indicators that these stories will be alive and well 34 years from now.

Buy now and lease or live-in the property, but do it now while you have the opportunity..


STATISTICS… SHOWING CYCLICAL PATTERNS

Published by CoreLogic

Statistical Changes   Quarter     Annual
Sydney                             -3.2%          -10.9%  Back to prices 2016
Melbourne                    -3.4%         -9.8%   Back to August 2017

Sydney – Median Current $930,000, forecast further 6.21% decline to $872,242.

GOOD NEWS ADELAIDE – VALUER GENERAL

According to the Valuer-General’s report, SA had a 0.63% rise over the last 3 months and 2.99% over the last year. Units have also risen at 3.07% for the quarter. This has lifted the median house price to a historic high of $480,000.

At Lin Andrews we believe that South Australia is not only a very safe place in which to buy property, but we are also very confident of abnormal price increases in the short/medium term as we begin a cyclical growth in population, to meet the needs of our Defence Contracts and other economic stimulus.

POLITICS AND PROPERTY

A long time ago I attempted to take a middle line in my political views.

I tried to believe that people on both sides of a debate are entitled to a fair hearing… and that politicians give-up many personal privileges to benefit the community as  a whole.

This view now appears naïve!

It ignores deep seated dogma’s in some, whose politics are deeply biased against those who create personal wealth… which in the longer term benefits all levels of society.

It beggars belief, that some politicians are prepared to financially attack, those who are trying to achieve a level of financial independence with less demands on the State particularly in their mature years.

These politicians are using motherhood statements (health, education, well-being for everyone), to detract from their plans to diminish or destroy the principle forms of investment used by middle-income Australians.

I refer to low-return, but relatively secure investments, such as residential property, purchased

Motherhood statements as to education, health and well-being for everyone, is a notion to which we all subscribe… and work… and give of our time… and pay our taxes.

History teaches that these aspirations are best achieved by concentrating on making the economic cake bigger… not arguing over who gets the biggest slice.

We are constantly striving to promote economic growth and assist individuals to become financially independent.

Attacking the ability to invest long term in residential property will not only impact the ability of our conservative long term investors (middle-income Australians), but will also impact another class of people with whom we have great empathy and concern… Our Tenants!

Tenants – What do we (the agents) tell them when there are no homes available for rent in suburbs where they work, or where they have their support systems like family who assist with after-school care?

To have to tell tenants that long term investors are no longer investing in homes where they work or have family support, will be devastating. For a period during a past Labour Government we experienced it… Surely not again?

My staff will again have to face daily discussions of;

“But … Where can we live”?

“That is too far from my work… from my mother who assists with after school care”!

“Why has the supply of houses dried-up”?

“But those rents are outrageous… we can’t afford that”!

“You guys have been providing places everywhere across Adelaide for decades… can’t you help us”?

And so I make my appeal to the readers of this Newsletter…

Say NO to changes to Negative Gearing Tax … and NO to changes to Capital Gains Tax on investment homes which have been meeting the needs of tenants for 10, 15 or 20 years.
 
Let us have balance and care in our Governance… and expenditure based on economic growth rather than growing National debt!

 

If you would like to get in contact with us, you can email us at linandrews@linandrews.com.au alternatively you can phone our office on

(08) 8234 1212

CONTACT US TO ENQUIRE ABOUT OUR PROPERTY MANAGEMENT PROCESS TODAY