Category Archives: Strata

Rents rise by 13% in sought-after suburbs

Rents in Australia’s most sought-after suburbs have increased by up to 13 per cent in the last year.

Tenants are paying up to $60 a week more for accommodation than they were 12 months ago, according to figures released by RUN Property on Saturday.

Fairfield in Melbourne had the highest leap in rental prices (13.4 per cent), followed by Edgecliff in Sydney’s eastern suburbs (12.6 per cent).

These were closely followed by hikes of 11.7 per cent in the Sydney north shore suburb of Cremorne and 11.5 per cent in Surry Hills in inner Sydney.

RUN Property CEO Rob Farmer said 24 suburbs in Sydney and 18 in Melbourne saw rent increases of more than six per cent for new tenants in January, compared with the same time last year.

“The popular suburbs close to beaches, major shopping centres or train stations continue to go from strength to strength for investment property,” Mr Farmer said in a statement.

The average rent rise across Melbourne when new tenants moved in was 5.4 per cent, bring the average rent up to $383 a week.

In Sydney, the average rent increase was 7.4 per cent, up to $545 a week, while in Brisbane, rents rose by 3.3 per cent bringing the average rent to $346 a week.

Thank you Sydney Morning Herald for this article

New rules to protect kids in high-rises

Apartments and multi-storey homes are about to get a little safer for children thanks to a rule change around windows in new buildings.

The Australian Building Codes Board has ruled that all windows in new homes and apartments that are more than two metres off the ground must be either fitted with window locks that stop the window being opened more than 125mm (12.5 cm), or must have reinforced screens to prevent children from falling from a height.

The changes will be included in the National Construction Code from May 2013.

The Australian Building Codes Board estimates that owners and builders will choose to fit 80 per cent of windows with locks, and the remaining 20 with reinforced screens. Its research priced window locks from $20 – $70 each, and strong screens from $130 a square metre, putting the average cost of a suitable screen at $130.

Ron De Vere, a project manager with the Australian Building Codes Board, says the decision was made after wide consultation with industry, and with fire authorities across the nation.

De Vere said an economic analysis that took into account the cost of installing locks and screens versus society’s cost of treating children who had fallen from windows showed that the broader cost-benefit of the changes was around zero.

However, “the board was swayed by the risk to children and the danger of children falling out of buildings”, he says. “It’s a bit like the pool safety issue, the child drowning … the value of a child’s life is so crucial.”

Danny Cass, a professor of paediatric surgery at the Children’s Hospital Westmead, has welcomed the changes saying the recognition that children could access windows and easily climb or fall out of them was a win for commonsense.

“Before, they thought a kid couldn’t climb that high but … they often pull things up to it, or beds are placed next to it,” Cass says.

Just a like a pool safety fence though, children will only be protected when adults remember to lock the windows and check that the reinforced screens are in good order.

The board backed away from an initial proposal to mandate window guards for windows two stories or above in all domestic dwellings.

It also a decided against that a proposal to increase to one metre the minimum floor-to-sill height of openable windows in rooms that are four metres from the ground outside.

The minimum floor-to-sill height will effectively remain at 865mm as the current provisions require a barrier of 865mm be in place to any openable window that is more than four metres from the ground, and it is common practice to place the bottom of the window at that height, using the wall itself to create the barrier.

The floor-to-sill height requirement will remain even where a lockable or removable device or screen is in use – in case the device or screen is inadvertently unlocked or removed. However, the minimum height from ground level at which the window-to-sill or barrier rule comes into play will drop from four metres to two metres after evidence showed serious injury can happen when a child falls from just two metres.

The changes will come into effect from May 2013, a timeframe the board says will allow industry to prepare for the changes.

An average of one child a week is taken to hospital in Australia after falling from a window. According to figures from the Children’s Hospital Westmead, 80 per cent of children who have fallen from a window have significant injuries, and four out of five children who fall from windows are aged under five. For information on keeping your kids safe near windows. Cass says the next challenge is making windows in existing housing and apartment stock safer for children. Cass is part of a working party on child falls at the Children’s Hospital Westmead. The group will meet again this month to explore further recommendations for existing properties.

Thank you Sydney Morning Herald for this article

The Finances of Litigation

Financing any form of litigation is extremely expensive and building defect litigation is no exception. In fact, because construction defect cases often involve multiple rounds of testing and investigation, additional expert fees can make this one of the most expensive forms of litigation.

Using Reserves

By their nature, building defect cases tend to arise early in the life of a scheme when capital reserves will be low or non-existent. However, if there is money in the sinking fund, this can be used to finance litigation to the extent that the claim relates to repair, replacement, restoration or maintenance of major components for which the sinking fund was established.

Bank Loans

Some banks will lend money to strata schemes to maintain and repair common property but so far this has not extended to financing defect investigations and litigation. Owners corporations and community associations are not permitted to give security for such loans and this makes financing litigation difficult.

Solicitor’s Finance

Unlike the current trend in America, construction defect lawyers in Australia are unlikely to finance testing and repairs or other outlays like barristers fees because of the constraints in Australia on contingency or success fees. The practice of advancing money for outlays or extending credit for work in progress is fraught with conflicts of interest on the part of the lawyer in terms of being objective about the advice to the client when the lawyer has a financial interest in the outcome.

Thanks to Teys Lawyers

Netstrata welcomes 5 Wallaroo Close

Netstrata are pleased to announce that they have been appointed as strata manager’s for 5 Wallaroo Close, Killara. The prestige strata scheme will be managed by Brad Wood . Brad said “I look forward to working with the committee in helping them run the scheme more effectively, reducing the amount of their own time that they have been putting into the strata management”.

5 Wallaro

Netstrata support Illawarra Black & White Race Day

Netstrata was proud to support Vision Australia’s Illawarra Black & White Race Day held at Kembla Grange on Saturday 8th October 2011. It was a fantastic day although a little wet, Netstrata Wollongong’s Tanya Gough said “It was great to see so much of the Wollongong Business and Local Community digging deep for a fantastic cause”.

Vision Australia is a partnership between people who are blind, sighted or have low vision. We are united by their passion that people who are blind or have low vision will have access to and fully participate in every part of life they choose.

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Netstrata’s Tanya Gough and Sarah Tickner presented the first place ribbon to Mr Ellaval winner of the 2011 Netstrata Plate.

Building and development – solving neighbourhood problems

As buildings age, particularly those that have had their repairs and maintenance neglected, strata communities might choose to redevelop all or part of the building to comply with fire and life safety orders and / or to remain functional and relevant in the current market. Knowledge of building and development process is required.

Similarly, when a neighbor is proposing a new building or a lot owner wants to do structural work, the building and development process becomes relevant to strata community life.

While each state and territory has their own building and development legislative regimes, the process is generally the same:

  1. Environmental plans set out the guidelines for development in a local area – watch for new plans in your area as everyone has a say before they are finalised;
  2. The general rule is that development approval is required from your local authority to erect, structurally alter, or demolish any building, including outhouses and sheds. Excavations and painting of heritage-listed properties also needs approval
    – remember if something does not require development approval, for example because it does not affect the structural integrity of the building, it may still require owners corporation approval under the by-laws;
  3. The subdivision of excess land also requires a development approval;
  4. High impact development applications will require advertising and objections might be lodged on the grounds of effecting views, overshadowing, privacy, encroachments, noise, possible parking problems and changing the streetscape or character of the neighborhood – if you are going up another level or two, the set back of the new floor will be relevant to the way the building looks from below.
  5. Development approvals will cost up to $200,000 for major works because they will require full-scale drawings and an array of experts reports and can take 9 to 18 months depending on the level of objections and the complexity of the issues. If building and development work is being undertaken to comply with fire and life safety orders, temporary measures may have to be taken to protect the safety of occupants and visitors pending the resolution of this often long and drawn out
    process; and
  6. The owners corporation is required to consent to any development approval application but the consent to lodging the application does not stop the owners from objecting to the application – try explaining that to the ‘naysayers’ at your owners corporation meeting!

Good consultants attuned to the special needs of strata communities can help you navigate this difficult area whether as the applicant or the objector.

Thank you for TEYS Lawyers for this Article

Netstrata welcomes the Mile Post at Randwick

Netstrata are pleased to announce that they have taken over the strata management of the iconic M

ile Post strata scheme on Alison Road, Randwick directly opposite the Randwick Race Course.

The scheme is managed by strata manager Liesl Biles and she is looking at working with the Strata Committee with the major capital works which are in the pipeline. Keep your eye out for the changes as your driving up Alison Road.

Mile Post exterior

UDIA Netstrata awards for excellence

Netstrata were again the proud sponsors of the Urban Development Institute of Australia (UDIA) Awards for Excellence. Netstrata sponsored the Medium Density Award category which recognises medium density development with projects being mainly residential. The 2011 award went to Stockland’s Manta development at Little Bay, congratulations.

Over 600 people attended the awards evening which saw it’s largest number of nominees. From a strata management perspective it is fantastic to see so many quality strata developments being completed.

The judges made the following comments in relation to Stockland’s Manta:

The Manta orientation maximises views and cross ventilation and the north facing forecourt together with the related retail and commercial is planned to become the community centre of the Little Bay development. The price point/value for money, and the quality and design of the apartments was confirmed by the 100% sales within a month of the launch. The landscaped roof of the podium adds an attractive amenity for the residents.

Congratulations to all the other finalists including: A2 by FKP Properties, Botanica by Australand, Eko by Crown, Sedyr by Sunland and Parkside at Dunlop by Village Building Company.

Manta Little Bay

Admin girls complete certificate of registration

Some of Netstrata’s Administration Team have been studying hard to complete their Certificate of Registration. It is not compulsory for Administration  to complete this qualification but they decided to better their Knowledge so that they can competently assist Owners will smaller questions or enquiries and today they received their Certificates.

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Well Done Team.