Under existing superannuation laws, you are required to value investment assets held within a SMSF as part of your fund’s annual return submission.

The basis of the assessment is to determine market value. See how the ATO defines ‘market value’.

Why you should appoint an independent valuer

Appointing an independent valuer to determine the correct market value of your property assets within your SMSF will save you time and, ultimately, money.

Even though the ATO provides guidelines for assessing the market value of your assets, your SMSF auditor needs to ensure the valuation undertaken has been done in an appropriate manner, is accurate and is based on objective and supportable data. This way you will not incur penalties from the ATO.

As of February 2020 the ATO has listed not valuing SMSF’s assets at market value as one of the top 5 mistakes when submitting SMSF annual returns. This demonstrates that assessing the market value of your assets can be difficult and that inaccurate assessments are common. This reiterates the importance of obtaining a valuation from an appropriately qualified expert.

How McGees Property can help

Our qualified and independent valuers are experienced in valuing property assets within SMSF and are knowledgeable in what the ATO requires. You will also receive a verifiable, accurate assessment of actual value for your assets in a detailed report.

This will not only ensure compliance with your SMSF auditor and avoid penalty, but it will provide you a formal third party advice of what your assets are worth. For super funds, this is particularly important where property makes up a large percentage of the total value of your fund.

Talk to us about valuing your SMSF assets

Podcast time: 9:24mins

Owning commercial property can be a great investment option. It offers more diversification than residential property investment, generates greater returns, and, in South Australia, there is no stamp duty on transactions.

Whether clients have one or multiple properties in their portfolio, these are three top reasons why commercial property investors seek property management services.

Tenant management

If you are not an owner-occupier, you will need tenants to help fulfil your investment goals. Ensuring your tenant’s business and your property are the right fit (and mix, if you’ve got multiple tenants), navigating the intricate nature of lease terms to suit both you and your tenants, and enforcing those terms can be time consuming, complex, and awkward.

Experienced commercial property managers won’t feel the pressure to fill a vacancy as quickly as possible when working with a reputable leasing agent because they know that the right tenant is better than any tenant. By acting as intermediary and negotiating favourable lease terms, many tenant-related risks can be mitigated. This reduces hassle and puts a buffer between you and your tenant while maintaining your relationship.

Building compliance

There are a range of legal, safety and compliance requirements that will apply to the properties in your portfolio, differing depending on the type of building or tenancy space. Understanding your responsibilities and duty of care as a commercial property owner and maintaining your building to appropriate regulations can be overwhelming, and costly if errors are made or legal requirements not fulfilled.

Through careful planning, budgeting, and inspections our commercial property managers will ensure your property is compliant and running at optimal performance without the surprise of expensive repairs.

Time

Not having the time to self-manage your property portfolio is understandable, especially if you have a job, other businesses, investments, or commitments. Adding the day-to-day running of the portfolio, managing maintenance issues, interacting with the tenant, and ensuring compliance restricts the time you have in focusing on what you do best.

Engaging a commercial property manager to manage your portfolio means you can free up your time to spend on other commitments or investment opportunities. Having access to advice backed by industry experience, networks and processes established within the company, and accurate and regular financial reporting on your portfolio will ultimately improve your bottom line.

While investing in commercial property may bring more risk than residential, it also brings more reward. And it doesn’t have to be hard or time consuming. Teaming up with an experienced commercial property manager removes the stress when it comes to tenant management and building compliance releasing you to focus on your other commitments or investment opportunities.

If you’d like to talk about the management of your property portfolio, leave us your details and we’ll give you a call.

By Giuseppe (Joe) Tauriello – South Australian Business Journal 29/07/2021

McGees Property has appointed Danielle Brautigan to the newly created role of general manager following a period of growth for the commercial property firm.

In the past 12 months McGees has recruited seven new sales, leasing and property management staff, while Tom Rowe will become a director in July, joining the firm’s equity partnership group.

With staff numbers jumping to 42, and in light of the ongoing strength of the property market, McGees SA managing director Simon Lambert said it was time for a restructure to drive the firm forward.

“We are experiencing a strong market with record inquiries from both vendors and purchasers alike, with unprecedented sales results across investment and inner suburb stock as well as across regional South Australia, “Mr Lambert said.

“With Danielle on board, and with her experience working in the competitive sports arena, we look forward to the discipline and focus she will bring at a corporate level to drive our growth.

“We see a parallel with our industry and Danielle’s previous industry from a competitive standpoint. She’s helped get our athletes off to the Olympics and now she will take us, as her new team, on a similar journey, driving our strategic plan to continue on a growth trajectory.”

Ms Brautigan joins McGees following more than 10 years in finance and general manager roles.

She has previously worked at Adelaide Aquatic Centre, and most recently as a finance and general manager at Adelaide Thunderbirds and Netball SA.

She said she would work closely with the McGees team to “enhance the brand as market leaders”.

“I’ll be working closely with the McGees board in developing and implementing growth strategies and maximising overall performance opportunities,” she said.

“To have an opportunity to positively influence the McGees team, culture and the future of the business really excites me.”

Meanwhile, Mr Rowe joins the McGees partnership after 10 years as a valuer at the firm.

He said the property market had rebounded strongly after a period of uncertainty, with defensive sectors including medical, non-discretionary retail, logistics and the broader industrial sector proving especially popular.

“Confidence is high, which, combined with record low debt and limited supply of quality assets, has resulted in strong competition and a compression in yields and increase in values in many sectors,” he said.

“Valuation volumes are high with workflow coming from a wide range of sources including financiers, privates and the public sector, with multiple infrastructure projects underway and brought forward to continue the post-Covid recovery.”

Ms Brautigan commences her new role in July.

59 Goodwood Road is an office with showroom and warehouse facilities that has been under McGees Property and Facilities Management for 6 years. After the previous tenant vacated at the end of their lease, the McGees Leasing team took the property to market but after 6 months had gained little interest, even with a lower rental rate.

As the building had not been upgraded for 30 years, the client took the opportunity to reinvest in their property and reposition it in the marketplace. McGees worked with the client to develop a more extensive upgrade scope involving the interior and exterior building. The client accepted the final recommendations and the Facilities Management team carried out the works.

With a significantly upgraded building to offer to market, solid tenant enquiry was received with rental offerings well above the previously advertised rate. Within a week of works being completed it was leased on a 5 year term to a highly respected and long standing international sports goods company.

Before and after upgrade works

Watch news article

By Richard Evans – South Australian Business Journal 16/06/2020

Bulking up staff numbers and an increasing reliance upon new office planning are just two of the approaches taken by commercial property companies to ensure they emerge from the post COVID-19 landscape in better fettle than ever.

A determination by Adelaide CBD outfit McGees Property not to waiver in the face of declining revenues has – un-typically in a market where nearly all the major property companies have laid off staff – seen the 38 staff strong company stick to its five year strategic growth strategy to enhance existing divisions and expand to additional service lines.

McGees has not only committed to keeping the team together on full wages but promoted and appointed new staff, managing director Simon Lambert said.

Ella Germein has been promoted within its facilities management division as the number of properties under asset management has increased significantly and it is undertaking several third party projects including upgrades to major CBD and metropolitan assets together with NABERS and BEEC rating assessments. Alex Caprile has been promoted to a full-time qualified valuer, Jaimee Young is now a full-time admin team member and McGees is recruiting within asset management.

Growth strategy forms part of the firm’s overall strategic plan, Mr Lambert said, and while it was reviewed in light of COVID-19, the firm did not want to change tack given its longer term views. “As to when and how all this will bear fruit, I don’t think it’s a matter of looking for a particular payday,” said Mr Lambert who recently celebrated 35 years with McGees. “It’s a matter of building a sustainable business that always bears fruit, sometimes more, sometimes less. I think the principles I learned early on at McGees remain at the core of the business now, and that is we care. We care for our staff and we care for our clients.

“So I guess I expect these investments in staff and growth to continue well into the future while we keep true to our principles.”

By Richard Evans – South Australian Business Journal 30/07/2019

Family is the buzzword at an Adelaide commercial property services practice set to ramp up its challenge against the bigger firms in town after adding two more equity partners to its roster.

The introduction to the McGees Property boardroom this month of South Australia property veterans Craig Feely and Andrew Carapetis increases its director count from four to six said managing director Simon Lambert.

“Craig and Andrew both joined us about 18 months ago. The board appointments are unrelated and they will bring equity into the company. It’s part of a market growth story we have been working on for a while,” Mr Lambert said.

Familiarity was a huge bonus he said when it came to taking on the new heavyweights but due diligence still had to be done.

“I have known Craig all his career. This is part of the rollout of growth, you know these guys but you want to live with them first.”

Continued growth is a prerequisite in order to fight for market share against major agencies such as CBRE and Knight Frank, he said.

“We are SA’s largest privately owned full services firm and we need to continue our growth. We do compete against the majors, not always in size, but in certain areas. Craig came with significant retail experience from (previous employer) Intrepid Property. It’s a confirmation we are going down the right path.”

“This is a family business where people are happy to stay and work, we have staff here who have worked through different generations.”

The staff additions, which cement a total of 36 employees, come at a time of some SA market uncertainty.

The current state of the SA commercial property market is intriguing Mr Lambert said, with SA not suffering from the historic disconnect with Melbourne and Sydney that happens when the country’s busiest cities hit a boom and bust cycle.

“The fundamentals of SA are quite good. We are risk averse, we are not bullish in the way Western Australia was in the mining boom. We are just going along the same (steady) line.”

SA is, as ever, a constant he said “There are a succession of things that have affected SA growth. Stamp duty didn’t get us going, then federal election comes along. We take a cautious view here but the market has been good.”

Mr Feely says the state retail market offers hope despite slow market conditions.

“Rents are stagnant, there’s not a lot of growth out there but we are getting deals done,” he said with recent transactions including tenancy deals at St Clair Village shopping centre, Gawler Park Homemaker Central and Jetty Road, Glenelg.

Mr feely – the son of well known property developer Leon Feely – brings a dab of local recreation colour and interest also. For up to 20 hours a week in competition time he retreats to a shed in his St Peters back garden he said.

“I’m addicted to cycling, I train there. I’ve been national age champion and have done the three peaks race (in Victoria) five times,” the vastly impressive eight hours 19 minutes his best time.

Andrew Carapetis meanwhile, no fan of lycra, comes with 30 years property experience, the bulk at mid range Adelaide outfit Commercial SA.

Focusing on property and facilities management – he has 15 staff reporting to him – the market is difficult right now but is offering work he said. “Interest rates are low but it’s still tough out there,” he said but is managing several top end properties including 108 North Terrace, a property sold by Dexus in 2016 for $86 million and within which his team is carrying out numerous upgrades and environmental boosts on top of ongoing facilities management.