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

NEWSLETTER FEBRUARY 2019

Good Morning and welcome to our second Newsletter for 2019.

You will notice that for the time being we have retained our images of relaxation and social interaction at the head of our newsletter.

Having managed property now for 49 years we are witnessing clients enjoy the benefits of long term property ownership and professional management. Assets and Wealth must  be cared-for by some-one!

Having invested these years in encouraging investment for long term benefit, we know the need of micro-management to take away the worry of property and asset management in its many forms.

Without a competent and caring manager it is simply not possible to own property and have worry-free time to enjoy the benefits of your wealth creation and its retention.

Perhaps you may send-in photographs of your own leisure activities and the freedom and peace of mind you enjoy by having this company do the tedious bits…  and ensure your legal compliance as property owners.

2019 CONSIDERATIONS

This is our 49th  year in property. In some form or other we have managed property during all of these years in addition to sales and developments, according to the economic environment of the day.

We pioneered the idea of ownership of property by very ordinary people, before property investment became popular… except amongst the wealthy.

Record keeping made Property Management a very complicated and expensive matter before computers. Each property being managed called for a Landlords Ledger, a Tenants Ledger and the Agents Ledger. Each payment of rent involved record keeping for each party. Trust Accounts and receipting information per transaction were highly regulated and property management was not the first choice for Licensed Agents.

Not only rent receipting and accounting, but the payment for trades work and cost allocation to individual landlords and tenants was a huge and complex job. Month-end and Year-end reports to each party was a mammoth task! Our desire was to assist all people to understand the benefits of property investment, no matter the difficulty. We believe we have had a measure of success in this.

Governments and various ideologies have changed business practice and are still continuing.

This year investors will be considering many matters! Some of these are noted in this newsletter for your consideration.

  • Bill Shorten has suggested changes to Negative Gearing and Capital Gains Tax as it relates to property. These proposed tax changes have become very contentious with the Real Estate Industry. I have included a Media Release by the Real Estate Institute of Australia and I believe this should be read and considered carefully.
  • As a result of the Banking Royal Commission and negative attitudes by some economists, the Banks were given instructions to diminish lending on an Interest Only basis. This has terribly hurt many aspects of the Property Industry and now APRA, the Prime Minister and the Federal Treasurer are trying to reverse these negatives which have impacted bank lending far beyond what was expected.40% of loan applications during December were declined by the banks… up from the norm of 8%. This beggars belief and I have included a published report on this subject.
  • Overseas we have Brexit, China (economic downturn), and the Trump Trade War on everything-not Trump. These are worrying some and this is reflected in attitudes toward investment.

Every day of every year some-one is selling newspapers or creating anxiety about something. If you wait for the perfect time to invest in property then you will never invest. The right time is almost all of the time!

MEDIA RELEASE – ALP needs to come clean before everyone loses: REIA

Responding to the recent announcement by the Leader of the Opposition, Bill Shorten, that there would be no decisions made regarding changes to existing negative gearing and capital gains taxation arrangements until after the federal election, the Real Estate Institute of Australia (REIA) asks whether this is because the ALP doesn’t want any voter backlash in the lead up to the election.

“All Australians need to know what and when a Labor Government, if elected, will do regarding property taxation. It is not acceptable to appear to be ‘having a couple of bob each way’ in the lead up to the election,” REIA President Adrian Kelly said.

Under the previously announced ALP taxation policies these are the losers:

  1. Mum and dad investors who want to buy an existing investment property to supplement their retirement savings will no longer be able to claim a modest taxation deduction. Contrast this to the ALP proposal to allow a twenty per cent instant asset write-off for capital expenditure above $20,000 for big business.
  2. Home owners who will see additional downward pressure on home prices in an already falling market.
  3. Renters who will see their rents rise just as they did under the Hawke/Keating experiment in the 1980’s. Contrast this to the current situation where we have the lowest annual increase in rents for two decades.
  4. Builders and their ‘tradies’ who will build less houses as shown by independent research undertaken for the Master Builders Association last year.  
  5. State governments and their constituents who will receive less stamp duty to spend on much needed infrastructure.

“REIA welcomes the promise to consult but let’s do that now, not after the election, and let’s look at all property taxes in a holistic approach and not just negative gearing and capital gains tax as if that’s the panacea to housing affordability.

“There is already enough market uncertainty particularly in the larger states and a “nothing to see here” approach will only exacerbate this uncertainty.

“The ALP needs to come clean with what its election policies actually are so that all Australians – including the nearly 100,000 real estate businesses across Australia together with their employees and families – know exactly what they will be voting for and can make an informed decision at the ballot box,” concluded Mr Kelly.

40% OF HOME LOANS REJECTED DURING DECEMBER

The home loan rejection rate is up 32 percentage points year-on-year in an environment of tightened lending standards, slowing credit growth, and falling property prices, according to new research. The latest research from Digital Finance Analytics (DFA), which involves a survey of 52,000 households, has reported that approximately 40 per cent of home loan applications were rejected in December 2018, up from 8 per cent in December.

When divided into segments of the lending space, the highest rate of mortgage rejection was for refinance applications (48 per cent), followed by investors (11 per cent) and first home buyers (5 per cent).

The data also revealed that authorised deposit-taking institutions (ADIs) rejected just over 40 per cent of home loan applications, compared to 20 per cent rejected by non-banks.

MARKET REPORTS


Residential Management

Kirrily Loring – Team Leader/ Manager Residential Management Division –  reports with excitement.

  • Our phones have been VERY busy with new leasing enquiries during January. There is not enough residential accommodation to meet the current need.
  • Vacancies have been less than 1.0% of our total management portfolio on any given day.
  • Most of our properties in the metropolitan area are 3 BR plus 2 Bathrooms. We are experiencing a very high demand for that 4th Bedroom or Study.
  • Less than 3.0% of South Australians use Public Transport and therefore new properties to add to our management portfolio do not have to be too concerned as to Public Transport, although this may be more desirable in the future.
  • Most tenants are renewing leases which has limited the supply of available properties.

Residential Sales

Deidre Wood – Residential Sales

Prices of residential property in South Australia have had a modest increase during the past 12 months (circa 1.4%) seems to be the agreed lift. Price increases overall depend very much on the property profile and some owners have enjoyed substantial capital gains.

Enquiries during the January period have been modest but rewarding for those properties priced correctly. Investors from NSW and Victoria have made their presence felt, but they are looking for bargains or opportunities which we do not encourage. Because…

Our loyalty to existing clients means that we find ways to maximise the price being achieved for those who trust us… our clients.

Commercial Sales & Leasing

This Division is diverse in the clients whom we serve.

Small business operators have been very busy with enquiries during the January period but other decision makers, seem to be out of Adelaide for most of the month. Holidays overseas, local sailing and water skiing are forefront in the minds of those involved in bigger business… until the final few days of January.

Suddenly as school holidays draw to a close there is a refreshing new activity. January 2019 has not changed from the norm… we are suddenly busy.

The news stories concerning overseas investment and trade have not diminished the desire for South Australian Business people to create activity by selling their business premises or looking to invest with a safe level of return.

There is a renewed confidence in the final days of January.

SUPERANNUATION – SMALL COMMERCIAL UNITS

Last year we brought to market a small group of nine Tradesmen’s Workshops. These sold with a return to the investor circa 7.0%.

We are now pleased to announce a similar group of five Tradesmen’s Workshops at 18 – 20 Charlotte Street, Smithfield with a similar price structure and ROI.

These are advertised in this Newsletter for the very first time. They will be completed late April and are excellent for a SMSF (superannuation fund). Prices are $210,000 – $272,500 + GST if applicable.
Please see advertisement below.

 

 

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