20 Dec 2013
Words Tim Admin

The only constant is change

It is always interesting to step back and look at the year that has almost passed. All completely anecdotally, what we are seeing is:-

• Permanent management rights business (especially in Brisbane and the Gold Coast) are seemingly flying. The sign of a hot market is purchaser’s door knocking vendors direct – and we have seen quite a bit of that in the last 6 or so months.
• The holiday management rights businesses are starting to transact again. You would think that times could not get much tougher for our tourism businesses. The only way has to be up!
• The management rights operators on our recent trip to north Queensland were more positive than they have seemed for years.
• There are always trends in management rights buyers. Years ago it was Kiwis. Now it is the Chinese. Who knows what next years will bring?

Next year will be a big one in the legal arena for management rights. We begin the BCCM review which will be all encompassing for strata matters, but it will no doubt have a management rights element. ARAMA will be in there fighting for the management rights industry as it always does. We can also expect the PAMDA review – which might also have some changes for licencing of management rights operators – hopefully for the better. If the government continues its mandate of cutting red tape, that will be likely. Lower interest rates mean investors continue to chase yield. Putting money in a term deposit doesn’t provide enough return for most. If rates remain at or near their historical lows, management rights will continue to remain an attractive asset class for those looking for a return. From a personal front the business that was Hynes (be it Lawyers or Legal) has had a rather dramatic change. That change is much for the better and we have some rather exciting things going on that will be out there in 2014. Stay tuned for those. The only constant is change. There will be plenty of that in 2014 – and managed right it will be for the better.