Investing In Property

Rightio - As familiar readers will be aware JEDS blog has had a busy travelling over the past 12 days. And I have decided it is time I discuss in this Blog an investment I have had for 10 years. I will write more over the coming week. My goal being - to demonstrate on this blog over the next 6 months how to turn a tired and run down property losing a small pot of gold each year into a positive one.

The place I bought 10 years ago is just north of Coffs Harbour. I have showed zero interest in it and hence its performance has been negative after the first couple of years having positive returns. I decided last Sunday that enough was enough and it was time to do something about it. Since Monday afternoon, when I arrived in Coffs Harbour, I have spent on average 12 hours per day trying to change how this holiday rental property is presented (part 1 of my proposed 4 part change). As the before and after photographs show hopefully you will notice the change and like the change too.!!

Before...

After....

So with a bit of hard work changes have been made. There are many more that will need to be done. I will try to demonstrate this over time. The goal is to increase the revenue by 25% by decreasing operating costs by 25%. And, f I can turn this property anyone can turn any property around.

Enjoy your week.!!

Beach Culture - (Sydney to Brisbane)

The past week - as some may know JEDS blog has been up and down the Mid North coast, stopping at places like Newcastle, Coffs Harbour, Bangalow, Yamba and Surfers Paradise. And what I have liked is the diversity at the beach, along the coast and how we interact with it.

For instance - we all love a quiet beach where no one else is at. The serenity of it, the isolation as the breeze passes our faces as waves break along the shore. Then - by contrast, the beach where people are everywhere where it becomes a great 'people watching' exercise. A place where we can comment and feel good seeing other people. Everyone from surfers, to sun tanners, to swimmers, to children making sand castles.

The beach culture and how our Built Environment interacts with this I have found interesting on this trip too. From Sydney to Brisbane it is wide and diverse as the people that represent it. From the high rise of Surfers Paradise to the non commercial world just 60 minutes south. From the 80's style beach holiday at Yamba to the great relaxing family retreat of Coffs Harbour. The later being an easy escape for the people inland who love the bush and country side yet gaze at the greenery of the sub-tropical region.

I have been thinking about my perfect beach life. Is it Rio? Is it Newcastle beach? It is Byron Bay? Or is it Bronte in Sydney? What is it that I like most about the beach is the rhetorical question. Here I go - I like to walk to the beach, anywhere from 5 to 15 minutes gives one time to watch and see things en route. I love a beach with medium size waves where you need to swim a while to get out the back, hence not shore breakers. I love when I finish at the beach there is a place near by where can I either buy some heavily salted and vinegar chips that have been in the deep vat for an extended period of time. Then I love to sit back and watch the world go by, see people waking their dogs to people playing games like beach volleyball. Per the photo below.

Thus - I like the freedom of seeing the different towns and places along the coastline. And the ability to very easily rent a place for either a week or just a night. The next morning packing the bag saying 'goodbye' and moving on.....

Let me know what your perfect beach is - and don't feel guilty for liking the limelight and not the serenity.

Yamba - Perfect 80s Beach Holiday?

As some may know JEDS has been on the road since last Thursday and it has been a busy times on the road. I came across Yamba a few years back when I was wondering slowing up the North Coast. (Is a 15 minute drive off the Pacific Highway, 2 hours north of Coffs Harbour) I can honestly say I knew nothing about the place previously. What I saw I thought was the beach holidays we all use to have when we were kids, ie Terrigal, Noosa. The place which had not evolved into the modern day beach development. Which is great and refreshing....

I have a soft spot for Yamba. I swam in the baths and was instantly greeted by others in the pool in the above photo as I arrived. 'Morning' they all say. This place for me is where not much happens. A place to re-charge the batteries and feel good about life.

But really the whole North or Mid North Coast is like that....relaxing. 

Architect - Lucy

Lucy works for the New South Wales Public Service and has 9 years professional practice. She commenced her study of architecture at the University of Newcastle (two hours north of Sydney) in 1997 after growing up in the Nelson Bay area. After completing her first degree Lucy spent a year living in the United Kingdom working in an architectural practice before returning to Newcastle to complete her Bachelor of Architecture. Lucy has post graduate qualifications in heritage conservation, her area of specilisation.

Lucy said she considers the role of an architect as a problem solver and communicator. Additionally she says that they are required to communicate to a number of stakeholders including, the client comprising the; contractor, other consultants and at times the public.

Photo by Simon Dance.

Jeds Blog interviewed Lucy on her experiences as an architect. 

JEDS: The stigma of women in construction, is it an outdated phrase and have you had any issues in your career to date?
Lucy: Excellent question, I haven’t experienced any discrimination or harassment arising from gender issues. . I have a few people raise their voices but in no way was that due to being a women. I think women bring harmony to the work site. The recent reports indicate the split for women to men coming out of universities for architect is close to 50:50. So the industry is well represented by women educationally. There is a marked shift in these statistics with relation to practicing architects however.

JEDS: What about women on construction sites and their representation?
Lucy: Women in the trades are low in representation. It is assumed that a women’s role in construction (by women too) is best as a consultant. Women need to be encouraged into apprenticeships and these opportunities need to be marketed with a collaborative approach from bodies such as the master builders association, educational institutions and government.

JEDS: What is notable about women on the construction site say in lieu of men in your opinion?
Lucy: Women don’t bring their egos – all have earned their credentials and worked hard to gain respect professionally. Men are a times reluctant to say they don’t know the answer to something, where as a women is more likely to bring a resolution by a collective approach.

JEDS: Ok – so if you were a tradesman what would you do?

Lucy: Easy, a stonemason or similar traditional craft such as lead worker or slate roofer.

JEDS: Is there something as an architect you still wish to do?

Lucy: As I work in conservation and preservation of buildings. I would like to see a design of my own constructed.

JEDS: Do people appreciate the role of an architect in construction?

Lucy: I think people undervalue the contribution that an architect can make to a project after all the statutory approvals are gained. There is a tendency to seek savings on an architect’s professional fees, without realising the savings that an architect can contribute to a project with things such as materials selection, innovations and the like.

A client who employs an architect for only statuary approvals is not giving the opportunity for the true design intent to be reaslised. The onus is then placed on the Builder to realise a vision that they may not fully understand.

I would engage an architect if I was looking to build my own home.

JEDS: Most famous building you have worked on?

Lucy: I did some consultancy for the Harbour bridge a few years ago.

JEDS: Hobby outside of architecture?

Lucy: Cooking, needle work, trying to learn the harmonica.

JEDS: Where is architecture heading?

Lucy: I would like to see it move toward a less developer centric focus, where the quality of space and materials is better appreciated. Architecture is meant to improve our quality of life. The materials selected should ensure that a building will last; they don’t build them like they used to! I would also like to see a greater respect for the heritage significant buildings within our environment.

JEDS: Any comment on heritage issues in the state of NSW?

Lucy: I visited Tasmania recently and was overwhelmed by the authenticity of their heritage buildings. This is something that is being slowly eroded in Sydney at least. I will be interested to see how the NSW Planning review addresses heritage.  

JEDS: If you had your time again, would you choose architecture again?

Lucy:Yes, I love it.!!!

JEDS: Perks of the job?

Lucy: Eye candy. I think if women knew the options they would trade the girth of the office man very quickly!! 

Shareholder Meeting - Leighton Holdings

Back breaking is what work can be for some.....

Now with the upcoming Leighton Holdings shareholder meeting on Tuesday 22 May 2012 in the Ballroom of the Four Seasons Hotel in Sydney, Australia. As a shareholder of a listed company of Leighton I am this year taking up my option to attend. Can I just say. I am very excited. Maybe, I am not valuing my time correctly but I am intrigued to see how the process goes and what the free biscuits, teas and scones are like.

Adding to this - is the constant pressure the share price Leighton is under. I gather that questions will be asked and management will assure shareholders that these are being 'managed out' and the coming year will be show lessons learnt. Some other bloggers (See Roger Montgomery comments) have been making rational of their continuing problems by noting that on some of their jobs it is a 'go slow' work ethos. One side of me cannot read and write that without a little smile, (even though as an investor I should be disgruntled and disappointed by the parties if they are doing this). The employee taking control of a business' bottom line and not being shoved or intimidated by all its big corporate strategy. I wonder how that will be told to be managed in the up-coming MBA courses around Australia? Will CEOs be seen rolling up the sleeves and throwing the tools into the back of the ute actually doing some physical work. We can all picture the photos from PR.

Leighton holdings are after all - a group of businesses, doing much of the same. Contracting and generally employing the average punter (who may not be just that average after all).

One part of me - cannot begin to think that this is just the way modern corporate life is heading (or gone). Many people have built a company up with the need for other human beings, who may of not been that smart to get their 'share issue' upon joining. They work overtime for nothing and rarely ask for pay increases. Of course the boss - 'looks after them'. The business is then grown to a certain point where they are able 'to sell' to a larger company. I find this fascinating and what people are buying really is the fact that people will turn up for work tomorrow instead of going to the beach.

Get to the beach Australia.!!

MIPIM

Le Marché International Des Professionnels De I’immobilier (MIPIM) is an event held every year in Cannes, France. Next year the event is from 12-15 March 2013. It is seen as one of the worlds largest real estate shows – and is used as a networking venue for investors, architects, corporate end users, local authorities (lord mayors) and hospitality professionals. I came across the exhibit in the latest edition of Monocle.

 
With the GFC of 2008 the glory days of the 2007 event are gone where pandemonium was generally everywhere. The event appears to have gone from pretty models and quick dollars to now more for the creation of debate and nurturing social ideas. It is a place where lord mayors are getting in on the action and pushing for agenda how our cities should be heading for the future. Don’t be mistaken that it is all about planning the perfect utopian city. There are still developers who promote their schemes for creating awareness to the market and the prospect of raising money so their schemes can become a reality.

Thus the days of promoting fancy buildings and islands off a mainland (think Dubai) are now being replaced with ‘efficient green design’ and what it can mean for the country such as that as the Qatari government. The input for the conference is becoming more diverse with input from the northern European cities to Tokyo but still retain its French identity with the promotion of ‘Le Grand Paris’. As well as Middle Eastern exhibits promoting their ambitious plans for the 21^st century.

The issue of a city is evolving with debate centred around combining a city long term objectives with that of the greater perspective of the country and how in these fiscally retrain time this may not be occurring. Australia is probably a very good example of a country where it is reported the current infrastructure is not at a place to foster the future growth of each of the major city capitals. The interaction of the mayors / state / federal is pushed by all accounts by short term political terms and agendas and not longer 20 and 50 year plans (Sydney's second airport is a good example). It appears a strategy whereby all politicians can put aside their political agenda and move forward on this is the way forward.

Lets see if Jeds Blog is still around and possibly attend next years event.....

The End Of The Retail Shop?

Is the end nigh for window shopping?

The last blog entry concentrated on vacant shops at the top end of Oxford St. Since then I have read a couple of articles on pricing / currencies / unemployment which lead me to think that possible there is more to it (and needs explaining) for the closure of retail shops that are occurring not only along the upper end of Oxford Street. Just look at the last comments by the David Jones CEO to confirm this. People are shopping differently and don't intend coming back anytime soon. Maybe - they have had enough of being ripped off!! And what does this mean for the Built Environment?

I was reading an article in the Financial Review by Richard Denniss on Thursday 3 May 2012 and it caught my eye for the following reason. Why is that we have a free trade agreement with the USA, yet goods are still more expensive here than there? With online shopping available in the two different countries one must (apparently) have a USA credit card for it to purchase goods on a USA website. Tiffany's and iTunes were the examples the writer gave. It made me think. It does not appear to be a true free trade agreement, because if so the prices would be set as a say 'equaled price' and adjusted as currencies go up and down. (I understand my innocent view in free market is showing my ignorance to the true political pressures that actually go on). Maybe, it is just what the retail sector can get away with, so they do it. Who can blame them.

We have all - enjoyed the ability to shop for goods which we feel we are getting a discount on. Denniss' article goes onto mention that the Australian consumer "have been gouged so deeply, and for so long...."

The article has made we think further about retail and why in the years ahead - why will there be any need for the current level of retail space in our Built Environment? We could really produce a good (anywhere), with zero need to have any 'presence' in other cites or countries, yet enjoying the reach and coverage of the world. Everything can really be done online. Or can it?

One option of the future is company A possibly have a exhibit shop in a key city centre where a high density of people can view their goods in person and then 'hop' online in the current shop and buy or go home and buy later. And though not the 'instant gratification' we all crave for they receive their goods in the mail in a prompt time. This will save many brands from high retail rent and possibly let them compete with on-line competitors.

How are governments dealing with this - some impose high taxes on goods imported into their country. Some such as Argentina as high as the good itself. (try and purchase a iPhone, kindle on line for example) This is done, so it is said to 'protect and build' the industry that are trying to develop or are selling similar items in the said country. This does not go well for the upcoming younger generation who crave for more. Other countries just shrug the shoulders or take action when business representatives try and influence governments on this and note that unemployment will rise if they sit idle.

So should we really bother about it - why care? Why not jump on board? Should we just let the free market iron it all out? Should governments try and get ahead (stay in power) by imposing taxes or manipulating their currencies by printing money?

The current model for re-development of a site includes generally the provision for a 'shop front' on the ground level with residential units above. For how much longer will this model be viable? What are valuers' putting within their feasibility to finances for these developments? It is all well fair to say in 2012 what a rent may be, but what in 2016 when the world has evolved for right or for wrong.

Oxford Street For Rent

Ok - so the heading got your attention but more importantly.....so why are so many shops vacant currently on Oxford Street? It seems there are many with thoughts. Most people or articles in the press I have been reading are saying it is due to the high Australian dollar (people buys their fashion goods overseas while travelling), casual spending pressures (east coast recession) and the option of on-line shopping thus eliminating the need for the once successful Oxford Street fashion drive experience. All up - it seems that people no longer need these shops. 

So why did Oxford Street 'sell out' so to speak? I think the closing down of these shops will lead to more innovative operators opening up some time soon. Already in the past week I see that a wine bar (name I need to check) is close to opening and that with a reduction in rent many more potential shops will open which are not brand names. Small business needs the owner / operator in the store not in the boardroom. I look forward to more exciting shops opening. Possibly a proper brew house on Oxford Street? Boges?

Profile - Matt Truscott (Carpenter & Joiner)

We commence - within this blog - our profile of an individual who works within the Built Environment. Our first profile is a carpenter and joiner with over 20 years of experience.

Matt Truscott commenced carpentry and joinery when he completed school and has been 'on the tools' for over 20 years now. We spent time with Matt last week on a house he is renovating for a client at Seaforth (Sydney). He is adding on a second level to a typical standard house which will double the area (GFA) of the building. He firstly had to remove the existing roof, provide cover for the existing structure in the event of rain. He is now framing up the second level getting it ready so the ceiling joists and roof can be completed. The occupants can at the current time live 'as normal' on the ground level as the work is not contained within their current living quarters. There is a photo of Matt on site below:

Here are some of Matt's responses to questions we put to him: (Note: We have paraphrased in parts some of Matt's comments.)

What time do you start and finish work? - Start at 7am, speak to the client re any issues that need to be addressed and finish approximately 4pm. In summer though may work later to take advantage of the longer days.

Best part of being a carpenter and joiner? - Working outside and in different locations. Developing a relationship with a (new) client and helping create a wonderful home for their family. It is great also working 'hands on a project' and sitting back at the end of each day and seeing the work completed. 

Worst part of being a carpenter and joiner? - Rain.!! Physical demands of the job as one gets older.

Where in Sydney is most of your work? - Work all over Sydney, but mainly inner west. 

Where does most of your work come from? - Word of mouth. Reputation.

What particular work do you really like doing as a carpenter and joiner? - Really enjoy working on house renovations, particular older homes. Seeing them being restored is very satisfying.

What type of work is becoming popular at the moment? - Building new or making room within existing dwellings for granny flats or self contained units. Particularly as some councils are encouraging this to occur. The owner can subsequently rent out the granny flat or it gives them a place for friends and relatives to stay when they are in town without crowding the housing.  

How do people get in contact with you if they would like to hire you? Do you have a website or a profile of the work you have done where people can view it? - I am currently working on the website which will show some of my work. But for now best to call me on 0418164281 or send me an email mattruss2@yahoo.com.au

Ok - thank you to Matt for taking part in this profile.

Museum of Contemporary Art Australia (MCA)

As a desire to get to know The Rocks of Sydney a little better I decided yesterday afternoon to wonder around and have a look. It was good fun. What caught my eye when walking from the Sydney ferry terminal / Circular Quay was the renovated and new Museum of Contemporary Art Australia (MCA). What a contrast the new and the old make. To make my day all the more interesting I happened to bump into my old school Adam North who was on a break from working there.

As I told Adam what I was doing in The Rocks he took me around for a thorough and complete tour of the old and new MCA. Now I am not familiar with the current political commentary on the new building. Except I will say it is great to see cash / money being spent on buildings of and for significance.

Photo of Adam at the George Street entrance.

I think it is fantastic that there are some who do not agree with the new scheme. All of these discussions, newspaper article I am not privy to. I'd welcome your feedback or please email them to me. But having criticism for the scheme creates an interest that would not otherwise occur. It becomes a talking point. This site I am sure will be a welcomed addition to the tourist / visitor to Sydney not to mention the local people of Sydney. Though on summary it appears the new addition maximises GBA of the site and bring in some commercialism. 

One point to note - that there are some external works not yet complete. Also - I did see a few defects that need to be corrected and I am sure that will occur soon. Either - museum are difficult to build and generally being one off can make for challenging time lines.

While I was there with Adam he was generous enough to purchase me a book published with the completion of the scheme titled 'Site MCA Australia'. Thanks Adam for the book. It gives a great insight into the site, the history importance, the challenges that have existed for the managers for the MCA and the current architect. If time had permitted I would of loved a quiet drink on the roof of the MCA. What a view. Again Adam is in the picture looking good!! See you soon Adam and thank you for the tour.

All up - I reckon get down to Circular Quay and make a day of it. It is fresh and new.!!

Josh

Branded Hotels

Hello - I see that the Palazzo Versace Hotel on the Gold Coast is up for sale by its owner Sunland Group. It appears that the brand Palazzo Versace is holding firm with occupancy rates of 80% (what an achievement and congratulations to the management). I would imagine it is a highly competitive time in the luxury end of hotels at the moment and possibly some discounting going on to achieve these occupancy levels. This sale follows moves also by Mirvac to sell its hotels late last year.

If these decisions are being made - executives must be viewing this not as a short term shift in market conditions but more likely a medium to longer term view. As many will be aware the reasoning for these challenging times in this sector being the unusual high Australian dollar which still above parity with the US Dollar making other regions / more attractive for tourists. Thus resulting in fewer visitors both internationally and domestically for Australian hotels. Are there other factors as play? Brand Australia not right?

Is this the beginning of the end for the luxury branded hotel model within Australia? Is the only growth that we will see in the short to medium term in the cheaper end of the market. Is cheaper building options available which subsequently generate high returns for these operators? Time will tell.

A nice place for a hotel possibly?

The issue of heritage appears to be attracting interest. I will write more on this tomorrow. Have a great day.

Josh

Anzac Day - Monuments

Now first things first - the photo I wanted in the last blog is the one below. Note the keeping of the facade but the remainder of the building being 'gutted'. Upon spending sometime there this afternoon (Bondi Junction, Sydney) it is fair to say that keeping the facade and 'shop fronts'  does demonstrate clearly the history of the street prior to the higher density now able to be justified to be built.

The second photo shows a building 200metres down the street (which caught my eye), again the facade of the previous building being kept.

Now on the topic of todays blog - Anzac Day and monuments. Tomorrow being 25 April marks Anzac Day in Australia (and in New Zealand too!). Monuments for this day can be seen throughout every city in Australia. From 10 foot monuments to the one in the photo below which was built in the 30's situated in Hyde Park, Sydney. The day acknowledges the services of our armed serviceman and women in conflicts abroad.

25 April, 1915 marked the landing of Australian and New Zealand troops at Gallipoli. The peninsula has been kept as a reserve to commentate the fallen troops of both sides of the conflict. Back in 1915 the areas was under the control of the Ottoman Empire and was defended from an Allied invasion to control the entrance into the Black Sea very well by Ataturk. Apologies to our Turkish friends for this incident. We should of stayed on the boats...

The monuments at Gallipoli are a somber place as many people have been there know. Photo below quotes Ataturk attempting to comfort the mothers of lost sons at the peninsula. 

See you soon.

Josh

Heritage (Part 1)

Now the topic in the city of Sydney of heritage architecture is one which gets many dug into the trenches ready for war. With everyone at times appearing to make sure developers do not get their way. It can get the emotions stirring for many in the community.

Now, I love historic buildings, but at times I am confused with the need for keeping facades for the sake of facade sake, yet 'gutting' and removing the remainder of the building. Is it a comprise of sorts? I was riding my bike through Bondi Junction (and apologies for not having a photo added in for this example and no note in a bike lane) on the weekend I noticed a grand new building 12 storeys high, yet the facade had been kept which went for two of those levels by memory. It looked (in my non-trained architecture head) out of place. Contrary to this I love grande historic buildings. I love how they make you feel walking in. Customs house at Circular Quay in Sydney a case in point. Added to that it is a building which has been remodelled being used as everything from a library, offices to bar and a fancy restaurant.

Another great example of extremely well preserved and restored architecture (some say the best opera house en el mundo) Tearto Colon in Buenos Aries, Argentina. It is a grand building which has been restored to its glory days. Buildings like this I think should be kept for their grande appearance and use. As too the building from Seville in Spain below.

As too the building from Barcelona in Spain below.

Rightio - please feel free to pass a comment on this blog and let me know your thoughts on heritage of architecture. Particular facades and the beauty of them. I'd love to learn on this and develop my thoughts.

Cheers Josh

Ps: One part of my blog I would like to be is letting people know what jobs and work there in the built environment. Please let me know if know someone who works in the built environment. It can someone such as a bricklayer, electrician or a professional person like an engineer or environmentalist. Or it may be someone who works educating people in or for the built environment. I won't discriminate (i.e. someone who works with commercial property per se) so drop me an email to joshuaryan14june@gmail.com

Building More Bike Lanes?

So the issues of bicycle lanes is a subject that appears to polarise the masses. Your either a lover of them (though possibly have never used one) or think they are expensive handbag for city whereby the city council try to make itself a little more user friendly for the locals or visitor. 

Now - as a keen and enthusiast cyclist I think they are great. Though I don't always use them, they do demonstrate the road is there to be shared and can be used by all. I find it in pick hour though a nightmare where it can like trying to get tickets in masterchef audition. 

Now for the picture - this guy is all over it. He was not travelling any faster than 7km/h and had a smile too. He is obviously living the dream. What a kick ass bike..... This was in Buenos Aires. Yes, they too have jumped on the friendly bike lanes down Julio 4.!!

So - what do you think, are building cycle roads better for you? Would you prefer trams instead?  

See you soon - on the bike I hope.

It has been a quiet day it must be said. Not much to report today in the news of the built environment, a few articles written about new office layout and removal of the recent working cubicle. I would like to a blog on this soon.

I do note it was great to get a reply from John Bogan on the blog. And John your comments will addressed in a meeting with the benchmark on the weekend.

Now, straight onto.....yes - transport issues for dogs on Oxford St, Darlinghurst. I am glad you asked as the lady in the photo has it all sorted with her herd.

Blog

Ok - so now it is time to commence my new blog. It will cover the news and general things going on in the Built Environment. The goal to be a source of knowledge for those wishing to know more about the Built Environment. Feel free to add your comments and thoughts.

Ok - lets start....news this week in the real estate sector in the Australian Financial Review is Cushman & Wakefield are looking to grow in the Asia region.

I was in Melbourne in the past month and had time to see a game of AFL at the 'G'. One of the true great sporting venues in the world. As the photo shows, it was not a sold out game but was still great to be there. It is a place to sit back and go 'WOW'. What a colosseum!