Look Out for Me Appearing on Oprah Some Time Next Year
BY: TIM SHEEHAN, MANAGING DIRECTOR
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Having already mastered the professions of nuclear physics, international modelling, body corporate management and parenting I am constantly looking for new and larger challenges. The challenge I am currently contemplating is writing a self help book and then launching a career on the speakers' circuit. I am working on a tight deadline as I have been told by my wife that Oprah is going to end her free-to-air television show in the next 18 months, and every self help guru must speak on Oprah in order to know they have really made the big time.
My self help book is going to be a collection of simple rules and quirky observations which will be guidelines to living a successful life. In line with my Silver Community Link Articles, the book will contain little original thought, but will instead be a compilation of everyone else's good ideas. My particular angle in this book will be to make decisions based on the avoidance of obvious risks. My alternative working titles for the book include "Silly Choices - Just Steer Clear" and "Its All About What You Don't Do".Here are some of the gems that I will be including in the book -
- Very few neurosurgeons own ladders because they see the results when people fall off. Tim's rule - don't climb up ladders. Don't even own a ladder. That way you avoid the temptation.
- Similar to the ladder rule we have the observation that emergency doctors don't give their kids trampolines for Christmas. Who wants to spend Christmas day in a hospital emergency ward waiting for a doctor to put your kid's arm in plaster?
- Bookmakers never back odds on. Why take a risk on a horse where you have to put more on then the bookmaker will give you back? That is what banks are for.
- Don't run up stairs. It is a sure way to trip yourself up.
- Never ride a motorbike. That is just obvious.
- Have you ever noticed the number of teetotallers whose parents owned pubs and as kids they grew up working in the pub and watching what was going on?
In the self help book I will include a chapter on successful property ownership for community titled property, and include some of the observations that I have made over the years.
For instance, I was asked recently by a friend of mine who was trying to save a few bucks on the conveyance for the purchase of an apartment, "Should I pay for a search of the body corporate records?" I told them: "No way in the world. Don't waste your money paying for a search. Take a couple of hours off work and go and read through the body corporate records yourself". To me, having somebody do the body corporate search is a bit like trying to get to know a restaurant from reading the review in the Saturday paper. The only way to know if you will like the restaurant is to go there and eat the food.
Reading the review only tells you that somebody else likes the food. It may not yet be a conventional view, but property purchasers (whether for lifestyle or investment) need to take a more active interest in the records of the body corporate prior to signing off on the deal. The body corporate committee for a community title property is like the board of directors for a publicly listed company. A good committee will be able to drive the value of the property. My suggestion is that you do your due diligence on the committee.
When I do a search of body corporate records here are the factors I look for to give me an indication about whether to proceed:
Committee:
Who is on the committee and how long have they been on the committee? Is there a balance of people who have been on the committee for a reasonable period with new blood bringing new ideas? Has there been a recent massive change in committee membership representing a coup of some kind? Will a coup mean a change in direction of the body corporate? Do the committee (with the resident manager) do regular inspections of the common property?
Resident Manager:
Is there a resident manager? How many years has the resident manager been with the building? I want to see a resident manager who has been in situ for a reasonable period. I don't want to see resident managers turning over every 2 years. What is the background of the resident manager? Does the resident manager present management reports to each committee meeting? Do the minutes exhibit a strong working relationship between the committee and the resident manager or do the minutes indicate an extended and unreasonable history of niggle? Any evidence of niggle would be a sign that I should consider walking away.
Body Corporate Manager:
No prizes for guessing what I require here. It must be SSKB! If not SSKB, does the body corporate management company have an incredibly handsome managing director who writes very witty newsletter articles? If not - get the body corporate to change to SSKB.
Sinking Fund and Body Corporate Expenditure:
What is the balance of the sinking fund? What items are included in the sinking fund report? Are there patterns of a willingness to spend money on maintenance where it is required? Do the minutes show that the sinking fund is used in conjunction with a maintenance program to ensure the buildings and grounds are kept in top order?
Insurance:
Who is the insurer? Have I heard of them before and what stands behind them? It is no use having the lowest premiums if there are insufficient capital reserves to pay out in the event of a claim.
My list of items to consider could go on for pages. I won't put it all here, as I need to give you some incentive to buy the book or to watch me on Oprah.
