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

building4

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

 

WELCOME

It is always a great privilege to write our monthly client newsletter. Somehow we never stop learning. After circa 35 years of non-stop monthly newsletters, I am amazed at the matters which need to be shared with others who love their property investments… and who love life. My hope is that the information shared this month will be of benefit to you.

 

JUNE 30 IS ALMOST UPON US

I remember at least two occasions during my lifetime when sitting politicians were so busy doing good work in their respective electorates, that they forgot the date and time by which they had to register their nomination to stand again. To their chagrin or dismay, when they realised their error it was too late. They were stopped from standing in the next election because they were too busy working in the present. The seat in which they were the sitting member would now go to another. “How dumb”, you might say, but it happens. Too busy living in the present, to take time-out, to ensure the continuity of that special privilege.

On other occasions, I have seen people try to wind the clock-back, to gain taxation privileges which were theirs for the taking, but after a given date these benefits were gone forever… or at least for another year.

Please check with your Accountant or other Professional to determine what you may do to minimise your income tax payable for this current Financial Year.

Check your maintenance expenditure, demolition of current plant & equipment and its replacement with new? Are your SMSF opportunities maximised? Has your Family Trust distributed its income to best advantage? What have you chosen to liquidate, so as to provide capital for an even bigger and better investment next year? Should you be transitioning from residential investment into commercial, so as to achieve a higher cash return each month?

 

RESIDENTIAL CAPITAL GAINS

Deidre Wood gave me this story last week. It made my heart glad!

A regular reader of this Newsletter purchased a home in the Eastern Suburbs of Adelaide in 2016 for circa $630,000. The property was tenanted and managed by Lin Andrews Real Estate for two years and was then offered for sale by Auction. The Auction was well-attended but the price achieved did not seem right for the owner to accept. One month after the Auction, Deidre finally sold the property for a sum of money agreeable to the owner. The profit to the owner, excluding holding costs which were offset by excellent rent, was circa $200,000 after agents fees but before government charges.

I am trying to be careful not to break confidences, but the information is now available through search mechanisms available to the public.

I wanted to share this story because of the principles being outworked.

Deidre persevered and did a great job. Investment in Adelaide property is good.

Residential property in ALL Capital Cities in Australia rises over time. The time is usually shorter than you think.

The Adelaide market is, in our view, less volatile, and therefore a much safer market, in which to buy and sell than in some other cities.
Our objective is to help ordinary people grow wealth, so they will have a level of independence in older age… a level which is not always available to those who do not invest in property.

Regardless from whom you purchase a property, we would like to manage the property for you, in a manner which is as worry free as possible. We may then sell it for you, if it seems right, and you also, will have that extra supplement toward your long term financial plans. It works!

 

COMMERCIAL PROPERTY FOR SALE – GET THE FUNDAMENTALS RIGHT

 

Mark Andrews provided this case study. It is included because of the important issues involved in the management of both property assets and the varying circumstances of life.

The property is situated on one of Adelaide’s major roads with high passing traffic, impossible street parking, but high profile and very central for operations from all Southern Suburbs. Lin Andrews Real Estate have managed the site for decades and the tenants have been long term.

For some reason the banks became involved and a forced sale emerged with National Agents appointed by National liquidators. Our role as a South Australian Company was to provide the best possible outcome for our life-time lessor clients, and assist the lessees with the greatest possible security for their business. Their lease only had a short period remaining. A relocation may negatively impact clients.

We were disappointed that other agents had been appointed, but such will never affect our long term loyalties, and commitment to those who have trusted us over the years.

Mark Andrews, to his credit, was able to negotiate an extremely long term lease for the tenants… with the approval of the liquidators. 7 years with rights of renewal, plus a series of additional 5 year periods at the discretion of the lessee. It was also important to our long term lessor to find every way possible to increase the price. Every dollar of surplus became his, to apply against other outstanding matters.

By the time of Auction, all of our paper work was in place, new and fresh, the property looked very inviting and it brought a huge price from an investor looking for long term security.

We believe the lease and preparation for sale added circa $160,000 extra to the sale price… and the lessee has security.

All in a day’s work?… Maybe?…

How many agents do you know, would work with little compensation because a liquidator had been appointed and simply needed to get HIS job done… his way… a quick auction using another National Agent?

Thanks Mark Andrews for upholding our Corporate and Life Values when a long term client needed our help.

It is important that every property coming onto the market is correctly “groomed” to achieve the very best outcome for the interested parties. Success is no accident!

STRATEGIC GOALS – DETERMINE A SOLUTIONS – STAY WITH YOUR PLAN

 

The internet is changing the way we do business and the way we live. One of our long term clients is involved with fashion clothing. Beautiful clothing. For decades his business has prospered through his carefully chosen address, where lovely displays and fine reputation come together. Transactions are often a once in a lifetime creation.

Internet marketing, clothing hire, changes in social attitude toward expensive and beautiful clothing have all had an impact.

A new generation of clients, and a new generation of business control, are each sweeping away a romantic past. A new marketing culture is demanding the business change or suffer the consequences.

Business Plans are wonderful for those who may implement them without nostalgia! Property carries a lot of nostalgia!

Nostalgia interferes with the ability of a business to move onto its next phase of client service. In this case-study we have a property which was chosen very successfully for a past era. Strategically it needs to be sold and the business re-engineered toward e-marketing…  and adjusted to meet the needs of this current generation of invisible clients.

The price is not a problem. Vendor and purchaser are happy with this … BUT the vendor is human. He loves the life he has lived. He simply cannot bring himself to accept that change is occurring and life will no longer be the same. Relocation and business re-engineering looks fine on paper… but paper does not have a human heart.

This story is a current dilemma, but there will be another next month and the months thereafter.

It is our observation that great care must be taken by families who are involved with generational change. Strategic plans MUST take into account the nostalgia and diminished security of those winding down.

Patience… empathy… care; are the keystones for a successful transition. Money cannot buy peace for a hurting vendor, but slow moves like selling and renting-back for a period, may slow things down to a point that several small steps over a period of one or two years may make the transition more tolerable. If this problem sounds like one which you may be facing, we at Lin Andrews… and even the writer… may assist in slow sequential transitioning. We must keep trying!

 

THE MARKET PLACE

Every reader is interested in the market place.There are so many statistics and news reports that people become confused.

These market comments are direct from our “field people” and are reported without bias.Overall the market changed significantly for the better on the 1st May 2018. We can only assume that political matters had been holding people back. Suddenly this is not the case. All areas of our market changed… and we were very pleased to see it.

Residential Sales

Our listings for sale during May have risen amazingly and we interpret this as reflecting a new confidence in the market.

Residential Leasing

In some suburbs we have suffered from people leaving South Australia. It is interesting to note the suburbs where people freely move interstate and yet in others people wait until career opportunities come to them.

Overall our vacancies have fallen and landlords are happier than they have been for a long time.

We are forecasting an increasing return of people to South Australia. This will put upward pressure on residential rentals. People who want to buy and occupy have been able to do this in South Australia with a wide choice of well-priced properties, but these opportunities are diminishing.

Residential New Landlords

We are very pleased to welcome new activity in this area. There was a lift in new business during the month just past.

Commercial Leasing

This activity has come alive! Business is not super-abundant but clearly reflects a new confidence amongst all client levels, SME’s and larger businesses are relocating and seeking bigger premises to meet anticipated future needs.

Commercial Sales

This area is always slow and ponderous. On the 1st of July 2018, all stamp duty on commercial sales will cease. This means that sales have been slower than we would like, BUT listings of new property for sale is greatly improved.

Many vendors have been waiting for this tax advantage to come into effect before offering their properties for sale. July will be a big catch-up in the number of sales.

Commercial New Landlords

With renewed activity in leasing we have had the privilege of growth in this sector of our business. Many owners are discovering the freedom of professional management.

 

 

 

 

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