Response to Senate Inquiry Into Non-Compliant Building Products

Paul MortonUncategorized

The convenor of last week’s Strata Fire Safety Forum, Paul Morton, CEO of Lannock Strata Finance, said the long-delayed Senate report into non-confirming building products demonstrated why strata owners could not sit back and wait for leadership from government. “It has taken 806 days and countless sittings and hearings for this committee to table a report that expresses concern at the ‘long time lag between government responses to the Lacrosse fire in 2014’,” said Mr Morton. It took only minutes … Read More

Lannock calls on government to reconsider delayed defects bond

Paul MortonUncategorized

PRESS RELEASE: Friday 9th June 2017 A leading strata finance group today urged the NSW Government to consider alternatives to the 2 per cent strata defect bond, following news that it had deferred its July 1 introduction for the second time. Lannock Strata Finance CEO Paul Morton, whose company is one of only a handful that provides funding to owners’ corporations and bodies corporate, says the bond will be a costly, ineffective and inefficient way to deal with the rising … Read More

Time for common sense in the war between Airbnb and strata owners

Paul MortonUncategorized

The Airbnb verses apartment owners’ debate is only going to get more intense.  On one hand we have an aggressive, revenue-dominated multinational with a large advertising budget and a strong intent to lobby government. Their opponents, many of them dwellers in strata properties, are highly fragmented and have few resources, but there’s a core of dedicated, battle-hardened strata advocates who are adept at trench warfare and have good relations with government. They won’t be a pushover. We’re still only seeing … Read More

The Simple Guide to Strata Finance

Paul MortonUncategorized

two people meeting

There are three options for raising funds in strata, or a mix of all three: Regular levies One-off or special levies Borrowing What is the Best Funding Mix? The best mix will vary according to each owner’s position and the nature of the property. For some, this could be a regular series of small levies, for others a large special levy and for others a strata loan. For most, it will mean a mix of all three. Situations change and … Read More

Social media reviews put the bite on holiday strata rentals

Paul MortonUncategorized

For many strata holiday property owners it’s a matter of out of sight out of mind. The income from the unit keeps ticking over nicely, surging at peak holiday times such as Easter. But increasingly, ageing strata short term lettings are under threat as social media sites such as Trip Advisor expose underwhelming guest experiences while promoting shiny, attractive alternatives. Holiday strata owners need to be aware that guest reviews have potential to impact on future yields. Even buildings that … Read More

A big elephant in the housing affordability room

Paul MortonUncategorized

paper and desk

The elephant in the room as far as housing affordability is concerned is NOT negative gearing, interest only loans, stamp duty or foreign investors. It’s the effect of decades of regulation of capital and liquidity which means that banks favour mortgages over every other asset class. This has skewed the lending mix of banks from corporate, business, SME and personal lending to mortgages, with cheap money playing a significant part in pushing up house prices by increasing the demand side … Read More

Capital works funds and options for owners

Paul MortonUncategorized

The new NSW strata legislation requires owners to ‘actively consider’ how they want their future maintenance and capital works to be funded. The new legislation does not require owners to fund capital works budgets solely by regular levies to the capital works fund. Owners still have the right to choose to fund capital works by regular levies, one-off levies, a strata loan, or any mix of these. Owners and strata managers should take into account the specific attributes of the … Read More