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

STAY POSITIVE – FEEL GOOD

The whole world responds positively to those who bring words of encouragement and understanding… enlightenment with respect.

This new Autumn morning is one of those occasions when my greatest wish for my readers, is to feel positive and be enlightened as to the future which is uniquely yours. I know this is a Real Estate and Business Newsletter, but it is much more than that.

My objective in writing this monthly communication piece for the past 34 years is to encourage and enlighten those attempting to invest, in a positive way for the future.

As one who has experienced the highs and lows of property ownership, management and investment, I have attempted to beneficially share this knowledge.

It is good to benefit those who have shared life’s walk during a period of years, and to assist in meeting financial and emotional needs… in managing our time and the limited capital which is made available to us.

In many ways I have attempted to convert income into Block Capital, which is of significance to the future needs of the owner of that Capital. Block Capital may be synonymous with passive income in older age, dependant upon the way the Capital is held.

A BUSINESS FAMILY RELOCATING – DECISIONS ON SPACE & COSTS – LEASE OR BUY

During this past month, I have spent time with a family in business, which had a need for extra space.

Extra space on a new property whether leased or purchased means the expression of “dream needs”.
Everyone has dreams as to what they would like their business and workplace to look like.

Where should the premises be located?

How much space can they afford?

What should the fit-out look like?

What is a fair allocation of space between sales display, office administration, workshop and storage?

Is it possible to have a Board Room which may double as a demonstration room so that sales will be lifted… and maybe provide a space and facilities for training?

Should extra space be leased now, to provide for growth, or should the rental budget be matched with current needs?

I became involved because our Development Division is building a group of “Tradies Sheds” and our staff member felt that I may assist over and beyond his role as the Leasing Agent.

Most landlords do not want to become too involved in changes to their property. They  leave lessees to their own resources. In this case I was introduced to assist because I had influence with the owners.

The  building was still being built, “For Sale or Lease”. This added a further dimension to the discussion. Why lease? Is it possible to buy?

The first point in my story is the thrill that I felt when I visited late in the day and met dad, the technician, mum the sales rep and front office supervisor, and two sons in their twenties with healthy ambition written all over their faces.

This family was very successful in their field, but daily hard work was what they saw. Their success was somewhat concealed behind their daily efforts.

They had rented premises from the beginning and were now renting again.

Their “accountant” was really a book-keeper, giving great service as a book-keeper;  but not as a strategic planning person.

This long term business lost some of its recognition every time it relocated. It also lost opportunities as the lease periods did not align with available “best options”.

A further disruption was the cost of moving!

Of course I helped in their questions as to fit-out, but I also talked about how they had allocated their profits each year and why they were renting?

They clearly had a long term business which would continue as the parents entered a phased retirement but, the deposit required to buy Commercial Real Estate is about 35%.

There is no Government Stamp Duty but the deposit is seldom sitting around in cash.

The deposit even on this modest “Tradies Workshop” was around $100,000 on a $300,000 purchase.

And then there were the extra costs associated with moving… And the extra “working capital” of a growing business.

A SOLUTION FOR CONSIDERATION

In this case it was possible to rent for seven years with the landlord absorbing costs of the special fit-out. If the lease was three to five years then the lessee would have to carry those costs BUT a seven year lease meant the lessor showed greater flexibility in fit-out costs.

The BIG BENEFIT, the lease provided an OPTION TO PURCHASE, within a two year period.

The seven year lease gave security of tenure in case the business was sold. It also provided concessions on the fit-out.

The BIG thrill to me is that the Family will almost certainly buy within the first twelve months and begin paying-off their own asset instead of the asset of another landlord. If they don’t meet the one year expectation, they still have an additional option year, as a fall-back provision.

Mum and Dad will ultimately receive the rent in their retirement but that is a subject for another day.

Win – Win – Feel Good.

SMALL INVESTMENT OPPORTUNITIES – IS THIS FOR YOU

Through our Development Division we are building small “Tradies Sheds” to meet the needs of people in the story above. I am thrilled every time another family realises their potential.

Incidentally, the family in this story already have their 35% deposit in equity in their long term home ownership. To refinance their home and invest their money into another property described above is a serious consideration. They have two years to think about this action and to take appropriate advise.

They also have two years to decide if they want to continue as tenants or become landlords… but that is a decision best thought about for a longer period.

Necessity seldom made a good deal… but neither does short term excitement.

I did not commence this morning to write about these small “Tradies Sheds”, but on the theme of people being enlightened and feeling good, I had to share this story.

These sheds sell for around $300,000 each and provide a net return of circa 7% per annum. They are designed to fit the financial needs of owner occupiers but if the tenant does not want to buy, each will sell readily into Self-Managed Superannuation Funds. At around $300,000 each, they provide a great “positive” funded investment.

Is this investment for you?

RESIDENTIAL MANAGEMENT REPORT

When I was young I would read every book I could find on Property Investment.

The books were mostly written about property in Melbourne and Sydney where there has been growth in population “ever since Adam wore short pants”. A way of saying, “since forever”.

My big fear was that I would buy an investment property and it would be vacant.

My Dad would tell me to look at Saturday’s Advertiser. He would say, “Look at all of those properties for lease, don’t go near that business”.

Well, ultimately I did, “Go near that business”.

Not in defiance of he whom I deeply respected but circumstances drove me into a fulfilling life in Real Estate. Not simply as a business but because it meets the needs of many.

Today, I say to potential investors… “DO NOT BE AFRAID TO INVEST IN SOUTH AUSTRALIAN RESIDENTIAL PROPERTY”.

Our residential management department is very “understocked”.

Some landlords have been selling for whatever reason… maybe they want to capitalise and enjoy some surplus funds for a while? Maybe they want to buy a different class of asset?

This note is to say, “We have a big need for more residential property in almost every area of Adelaide”.

In our Southern Suburbs there seems to be an abnormal demand… which translates… “shortage”.

The State Government is trying to attract 15,000 extra people into this State to build “ships”.

These people WILL be found and our current needs for residential property in all suburbs will continue to grow… Especially Central, West and North West.

This is not Sydney.. or Melbourne where huge profits have been made in Residential Investment… and now they complain because the prices are falling-back following the huge lift in vales.
This is Adelaide where we have pricing stability with positive growth and the prospects of substantial price increases as new people come to our State to “build ships”.

IN CONCLUSION

We hope this new Autumn Season is a happy time for you.

Adelaide will be bustling with social activity and many visitors will mingle with us.

Consider the privileges we have of enjoying today whilst at the same time planning for tomorrow.

Enjoy

 

 

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