Rosel Sherwood - Development Management

With over 30 years of experience in the Development and Construction industries, John Rosel and Chris Sherwood have a unique high level of property knowledge and skill. Part of that skill is Project Delivery which is broken down into 4 key skill sets –

 1.    Development Management

2.    Project Management

3.    Clients Representative Role

4.    Construction Superintendent

In this blog lets look at what the Development Management role entails…

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Development Management

Rosel Sherwood provides expertise in all phases of the Development Management process. From Sourcing development and investment opportunities, through detailed Due Diligence and Feasibility Analysis, including Sourcing and Liaising with Tenants, to co-ordination and securing of all Town Planning and all local, state and federal agency approvals.

Development Management requires Master Planning Skill, Financial Analysis expertise, and Team Co-ordination capabilities. It’s at this “idea” stage of the project where critical decisions need to be made which will have far reaching impacts on the project as a whole.

As an old stalwart of the industry used to say “The start of any project is the most critical. Better to walk away from a good deal than into a bad one”.

For more information go to the Services page on our website as follows –

https://www.roselsherwood.com.au/services

 

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
Business Coaching Ideas

Setting Yourself up for Failure

We set ourselves up for failure every single day, but the problem is we don’t even recognise that we are doing it. We live our lives on auto-pilot most of the time, and we make decisions based on our opinions and beliefs built up over a lifetime of experiences, so that when we do fail, we look for someone or something to blame. Have you ever stopped to think about why you act and react the way you do, and how you set yourself up for failure on a constant basis?

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It’s so easy to set ourselves up for failure. Expectations of who or what we should be, portrayed by the media, Hollywood, and advertising, bombard our sensibilities on a daily basis….and none of us are immune. The plethora of goal setting and self-help books in the market place are testament to just that. They continually portray successful people and how they started from nothing and achieved greatness. There is nothing wrong with striving and achieving, however our consumerist society continues to portray success as monetary wealth, materialistic gain, a perfect body, a supermodel wife, a successful musician.........etc.

So where does that leave the plumber, the electrician, the accountant, the labourer, the project manager……….it would seem from the media that these guys have underachieved. Now it’s very simple to say that this is not true, and that materialism is not the measure of a person…. but deep down we still feel less.

Setting yourself up for failure comes in different forms, and I’ve narrowed it down to 4 key areas -

1.     Setting unrealistic goals. For example, you want to be an astronomer, when you failed high school maths, or wanting to be the next Arnold Swarzenegger when you are 5 foot 2 inches and have a slow metabolism. You are unique and there are things you can and can’t do...accept this.

2.     Setting non-specific goals such as I want to be wealthy, or I want to travel, or I want to be happy. These goals mean nothing. They have no destination and as such will get lost at sea. What emotions and feelings do you want from being wealthy? What places in the world do you really want to experience and how would that make you feel? What means “Happy” to you?

3.     Failing to take action. Setting achievable goals but through a lack of motivation you do not take the required actions. This generally means your goals are not aligned with your values.

4.     Being trapped by the outcome. This means your happiness rests solely on achieving the outcome of the goal, and when that goal is not achieved exactly as you envisioned, you are disappointed.

So how do you avoid setting yourself up for failure?

1.     Firstly, understand your values. You don’t want a Lamborghini, you want the feeling you get from a Lamborghini. Identify that feeling.

2.     Set achievable goals and take consistent action. Now achievable does not mean easy, it means taking a longer term larger goal and breaking it down into smaller and smaller steps. It’s about building momentum. If you’re driving a car you don’t start off in 4th gear otherwise the car will stall. You start in first and slowly build up.

3.     And most importantly enjoy the ride. Achieving the goal is not what counts, having made the effort is all that matters. Remember finishing last beats didn’t finish, which always trumps didn’t start.

If you are interested in Business or Personal Coaching, check out my Coaching & Mentoring business called Q Coaching at the link as follows.

 https://www.the4pillarsoflife.com.au/q-coaching

 

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
Federal Election Surprise

Not many people saw that result coming, but of most importance is the economic health of Regional Australia. I am genuinely concerned about the future of Regional Australia which relies on one single thing…sustainable long-term job growth.

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Let’s take Townsville as a micro-economy and an example of regional Australia. We currently have strong activity off the back of flood work, the new Stadium, and the water pipeline and that’s great. But in 12 months all that work is gone.

What we need are long term jobs. Places like the Zinc Refinery are upping the ante and investing heavily in future infrastructure and that is exactly what we need.

We need government investment in infrastructure that will support the private sector to invest in commercial operations that create jobs. Simple as that. Support the people who create jobs by helping them create more jobs.

Off the back of people feeling secure in their work comes the confidence to spend the money at a restaurant on a Friday night or buy that new car or invest in that house. This all creates the flow of money around the economy and then industries like mine, Property, can thrive off the back of consumer confidence.

I know I’m not worth a dime as an economist…but sometimes I think the experts and politicians make it sound complicated simply to suggest they are the only people who can deliver.

As with everything in business and life…Keep It Simple Stupid.

 

 John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
Welcome to "Q Coaching"

I am excited to introduce you to Q Coaching, my new initiative which provides Corporate HEALTH, WELLNESS, and LIFESTYLE training and education to business, executives and individuals.

As a qualified Coach and long standing Property Professional, I’ve established a range of coaching services via Podcasts, Blogs and my “To the Power10” series.

My aim is to help those in the Property industry achieve their goals and reach their potential.

What’s it all about…?

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I have been in the workforce now for 33 years and have run my own Project Management and Property Development business for the last 15 years. Over that time, I’ve been extremely fortunate to have had some great mentors and some great employers, who without their guidance, patience, and most importantly simply giving me a go, I would never have been able to achieve what I have achieved to date.

About 2 years ago I wrote and published a book called “The 4 Pillars of Life” which is a collection of my philosophies on how to take back control of your day to day life with the aim of being able to Live a Life Worth Living.

It now feels like the right time to start sharing some of my knowledge in the hope that I can help others navigate the rapids and perils of the business world, especially those involved in the Property Industry.

Have a look at my website -

https://www.the4pillarsoflife.com.au/q-coaching

…and I look forward to helping you reach your potential, in all areas of life.

 

Cheers

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
The Future of Housing - Part 9

Over the last 9 weeks we’ve discussed various issues surrounding housing affordability and we’ve offered some ideas and some possible solutions.

The final piece of the puzzle, in my opinion, is the introduction and societal acceptance of Generational Finance Solutions.

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Currently the standard home loan mortgage term is 20 years, 30 at the maximum. Why does that have to be the case? I understand that banks want some certainty their money will be returned before the mortgagee kicks the bucket, but there are other options.

Why can’t mortgage lending be 50 years or even longer? Financial institutions state they do not want to be selling the home of a deceased estate, yet reverse mortgages where loans can be drawn against a house for retirement living costs put the bank in the same financial position, and that doesn’t seem to be an issue. Plus linking mortgage repayments to life insurance and superannuation is also another method of guaranteeing the repayment of longer term home loans.

But why? Well longer term loans mean lower weekly repayments which will assist affordability. For example, the weekly repayment difference between a 20-year loan of $400,000 at 5.00% and the same loan over 40 years is $2,640pm compared to $1,930pm, which is a difference of $710pm.

However, I do place a caveat on this approach. At between 40 & 50 year terms (dependent on individual market conditions), the amount of loan repayments starts to equal and drop below the current rental rate. The impact of that would see an increased demand for owner occupiers and a reduced demand for rentals. Provided overall supply of homes maintain pace with demand (both rental and owner occupier) then the impact on pricing will be contained. However, when demand outstrips supply there may be a greater impact on those who are stuck in the rental cycle unable to save sufficient deposits, and that requires a solution to the deposit problem.

Now any economist worth their salt will tear my theories to shreds, luckily I am no economist and as such can throw wild ideas about. But other countries do offer what I call “generational” finance terms and places like Japan allow mortgages to be passed down through estates.

Anyway, food for thought.

  

 John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
The Future of Housing - Part 8

Ageing and the future cost of health care are major considerations as we grow older. We need to turn back the clock and start to look at ageing in place.

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Ageing in Place

Affordability and availability of aged care places is becoming increasingly problematic. Combine that with an ageing population and the increasing desire to grow old in your own home, and we start to see another driver that will change housing in years to come.

Ageing in place has always had the issues of accessibility as we age, and the accessibility to care. However, with governments driving the ageing in place trend, and presenting a more affordable option for the Tax Payer, the access to home-based care is receiving more base funding.

However, my Ageing in Place model ties in with Generational Living, with the ability for elderly parents to retire to an independent part of the house they already live in, and their children and grandchildren to occupy the main part of the house. This allows for generational aged care, with each generation having its own independent and private living space. It provides positive emotional welfare for the grandparents who can be a part of their children’s and grandchildren’s lives for much longer, and it provides economic support through child care and shared housing costs.

Of course, Ageing in Place and Generational Living is not for all people, as some families just don’t get along. But there is no doubt these housing options are becoming increasingly attractive and viable.

 

Final Part to this series next week…Generational Finance Solutions

    

 John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
The Future of Housing - Part 7

If you have kids who are starting out on their working life journey, you must, like me, wonder how on earth will they ever afford to get into the home ownership market.

There is a solution……

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Generational Living

It was the norm for centuries that families were raised in a house and aged in that same house. It’s only been the last 100 odd years that economic prosperity  have moved people up into the “middle-class”, and has allowed people the option to become independent and able to purchase their own homes.

The theme of this discussion over the past few weeks has been about the increasing issue of affordability.  European countries and many parts of Asia have for some time been stepping back as it were, to multiple generations of families living under the one roof.

We are also starting to see it in Australia, with kids leaving home much later in life than was the case 20-30 years ago. This is all driven by affordability and it will be a factor that will continue to grow.

Multi-generational housing however, doesn’t mean you have to share the one kitchen with your 25-year-old son and his girlfriend, or that your mother-in-law is constantly offering “advice” on how to raise your kids. With some simple but innovative designs, 2-3 generations of a family can be accommodated under the one roof, yet with their own independence and their own spaces.

One caveat though…when matched with affordability, it will be important to consider a staging option. Simply building a 4-5 bedroom house with various independent living units is an expensive option. However there are companies, such as Martin Locke Homes in Townsville, who are starting to embrace this design change and are leading the charge.

  

Next week…Ageing in Place

    

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
The Future of Housing - Part 6

The issues we’ve discussed over the last 5 weeks have focused on location, infrastructure, and changing our perceptions of what housing means in a modern society.

These elements, whilst a good start, are not magical solutions on their own. I believe we need to challenge our view of what being a home owner means, and how we live, not just where. In this debate I believe there are 4 key areas that need to be explored –

 1.    Staged Housing

2.    Generational Living

3.    Ageing in Place

4.    Generational Finance Solutions

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Staged Housing

Traditionally housing requirements over a lifetime form a bell curve. As a young couple, you only need 1 bedroom and can only afford something small to start off. As the family grows you need more bedrooms and a second bathroom. As the kids leave home you then need less space, and as you age, accessibility and ageing in place become your key issues.

Traditionally we buy and sell homes as our circumstances require these changes. But every time we transact a house, it costs us significantly in terms of Stamp Duties and other red tape costs.

Why can’t we design a home that can be constructed in stages? As our family expands and our finances permit, we can add the extra stages? The design then allows for independent generational housing and, finally independent ageing in place. It can be done, and is in fact starting to happen.  But there are two key hurdles that stand in the way at the moment –

 1.     Our attitude as a society to what housing means to us

 2.     The Financial Institutions’ acceptance of the value of smaller staged housing

These two hurdles are slowly being broken down, primarily driven by economics and affordability, but with a little focus and effort by our elected representatives, this could easily become a preferred housing model for the future.

Next week…Generational Living

  

 John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
The Future of Housing - Part 5

Continuing our look at the Environmental, Financial and Health impacts of the 3 current strategies being employed to fight the housing affordability fight –

 1.    Open up more land for development and increase supply

2.    Reduce Government Fees & Charges

3.    Create Smaller Products

 Now let’s focus on Affordability V Location

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The major problem in capital cities is the constant battle between affordability and location. The closer you want to be to the CBD the higher the value of the property. So people tend to locate in a radius of the CBD that fits their available budget. This is particularly problematic for young couples starting out who have limited borrowing potential and are also looking at something of a sufficient size with location to schools and amenities that may suit a future family.

Affordability is often dictated by location. The further from a city centre the cheaper the property. But in that equation the following key items must be considered, and if not considered, they will begin to impact on our social and environmental welfare –

 ·        Its impact on property value

·        Its impact on living and travel expenses

·        The social and emotional impact on family time

·        Environmental Impact

·        Cost of providing Infrastructure

The further we push out, the greater the strain on infrastructure. It is better to concentrate residential in greater density in terms of public infrastructure cost, but that on its own does not solve the issue of affordability.

This is where the strategy of changing our way of thinking about housing needs comes into play. Instead of thinking small first home, then upgrade when we have a family, then downsize when the kids have left home, as a society we need to start thinking along the lines of starting small but with ability to grow the house size in that location, intergenerational housing designs, and ageing in place design. This has been happening in Europe and some parts of Asia for many years and has been driven by affordability…just like we are starting to see the beginnings of in Australia.

 Of course this isn’t a magical cure, but it is one very large part of the strategy aimed at housing affordability into the future that needs to be debated with greater enthusiasm.

 

Next week…A new design concept

   

 John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
The Future of Housing - Part 4

Continuing our look at the Environmental, Financial and Health impacts of the 3 current strategies being employed to fight the housing affordability fight –

 1.    Open up more land for development and increase supply

2.    Reduce Government Fees & Charges

3.    Create Smaller Products

Now let’s focus on topic 3 - Creating Smaller Products.

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There has been a charge towards smaller and smaller land parcels, living areas, and house sizes over the last 10-15 years. I agree that whilst Australia has been blessed with vast open spaces, and the dream of the traditional quarter acre block is something that defines us, we simply can’t continue to expand.

But neither can we continue to reduce the size of our living conditions. There is a limit to how small a house or unit can be, or how small land area can be, before it starts to impact our emotional and social health, both as individuals and as a community.

Of course emotional and social health have rarely been a consideration in the Property Development game in Australia, but it’s coming. This is a major issue in European countries and surprisingly China, who are looking at new types of construction, bringing nature into our living spaces, and improving access to services that improve our standard of living and our social and emotional health…all whilst being conscious of affordability.

There are some very exciting topics to come in this space…

  

Next week…Affordability V Location

   

 John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
The Future of Housing - Part 3

Continuing our look at the Environmental, Financial and Health impacts of the 3 current strategies being employed to fight the housing affordability fight –

 1.    Open up more land for development and increase supply

2.    Reduce Government Fees & Charges

3.    Create Smaller Products

 Now let’s focus on topic 2 Reducing Government Fees & Charges.

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There is no doubt property has become a gravy train for governments. The taxes, fees and charges applied to the industry are second to none. Now don’t get me wrong, I agree that everyone needs to pay their share and that without government taxes and charges, we won’t get the infrastructure we need. However…the property industry is burdened with more than its fair share. There is significant room for taxes and fee reductions that would assist housing affordability.

But that just means more money in the developer’s pocket!! This is an argument trotted out by the political left whenever changes are foreshadowed to the property industry. Let’s put the record straight on at least three fronts –

Developers simply can’t charge what they want. We live in a capitalist competitive market. A developer may say I’ll keep all these fees and charges up my sleeve and make more money, but then the next developer will pass those cost savings on so he can reduce his sale prices and be more competitive and attract sales.

Developers must target a 20% return on Cost as a minimum otherwise they will not be able to attract development funding from banks. If you reduce the return on cost below 20%, then no development will get done because it can’t be funded. If you simply increase sale prices to get to 25%, then you are not competitive. Every extra Tax or Fee or Charge must be passed onto the end buyer which impacts affordability. It’s a small window of financial opportunity where property development actually works.

…and finally who is taking the risk? When people complain about greedy developers, they conveniently forget the financial risk that these developers are taking, let alone the employment they are creating.

I’m definitely not saying every developer is an upstanding honest citizen, but neither is every low wage earner an honest and stand-up citizen. Reducing taxes and red tape to an acceptable social level, will only help the industry provide more affordable solutions and create more jobs and general economic benefit.

 

Next week…Creating Smaller Products

    

 John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
The Future of Housing - Part 2

Let’s look at the Environmental, Financial and Health impacts of the 3 current strategies being employed to fight the housing affordability fight

1.    Open up more land for development and increase supply

2.    Reduce Government Fees & Charges

3.    Create Smaller Products

Firstly let’s focus on Topic 1 - opening up more land to increase supply.

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Opening up more land for development is meant to increase supply and competition, which under normal capitalism rules, will decrease demand and hence cost. There are several problems with this approach in reality –

 ·        It doesn’t always increase competition

What happens in practice, and mostly due to the high capital costs of entry to the development market, partly caused by high government (red tape) costs as well as tightening equity markets, the number of major players in the land subdivision market are limited. As such what happens in reality is that large tracks of land become controlled by a small group of developers, and that allows those developers to artificially control supply by holding back development.

 ·        Environmental Impacts

Australia has plenty of land area BUT a surprisingly small area of it is of agricultural value. Of course where our original settlements started are often around good water supplies and good soil types. As we expand our residential subdivisions outward from our major metropolitan and regional centres, we continually chew into that high grade agricultural land. Of course we have millions of hectares of fertile black soil plains through the middle of QLD and NSW but the problem is we are the driest continent on earth, and we have no dams or infrastructure that can get water to these areas to open them up…and then comes the old problem that building dams is a nation building decision that has little benefit to a 3 year term government…and the cycle continues.

 ·        Long term cost impact on ever expanding infrastructure

 By continually expanding out, we need to continually expand infrastructure such as roads, power, sewer, water and drainage. Costs of development of this infrastructure obviously gets added to the cost of the land and the lower density the subdivision then the more cost per lot that is, thus defeating the affordability target.

 This also creates long term increases in residents rates because all this infrastructure needs to be maintained over the long term and upgraded as populations increase.

 

 Next week…Reducing Government Fees & Charges (Red Tape)

   

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
The Future of Housing - Part 1

Unfortunately, when we talk about the future of housing, the “Affordability” debate seems to be the only game in town. Now this is a critical issue, but we need to understand that affordability, as a concept, is not simply about the cheapest home and the cheapest land. This is just the low hanging fruit, and there is only so far that it can get us. The future of housing is far more complex and is not only about where people live, but how they live.


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The affordability debate consistently gets hijacked for political means, and when politics get involved, all we get are short term Band-Aid solutions. To solve the affordability debate requires a generational change in how, as a society, we choose to live.

Australia is undoubtedly the lucky country and we have been used to our own patch of turf. It used to be the quarter acre lot and now it’s the 300m2-500m2 lot, or even apartment living. But getting smaller is not the answer. There is only so small you can go before it impacts on our mental and emotional health as a society.

Affordability is often dictated by location. The further from a city centre the cheaper the property. But in that equation the following key items must be considered, and if not considered, they will begin to impact on our social and environmental welfare –

 ·        Its impact on property value

·        Its impact on living and travel expenses

·        The social and emotional impact on family time

·        Environmental Impact

·        Cost of providing Infrastructure

But we can’t address those concerns under the current parameters of the affordability debate. The answers provided by governments and even industry groups are to –

 ·        Open up more land to increase supply

·        Reduce government fees and charges

·        Create smaller products

These elements, whilst a good start, are short term fixes. I believe we need to challenge our view of what being a home owner means, and how we live, not just where. In this debate I believe there are 4 key areas that need to be explored –

 1.     Staged Housing

2.     Ageing in Place

3.     Generational Living

4.     Generational Finance Solutions

Over the coming few weeks I will delve into more detail on each of these topics in an attempt to enlighten you on my ideas and theories on this very important issue.

 

  

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
Property Development Ingredients

What are the key ingredients to being a successful property developer? It’s all about your weaknesses…

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Property Development can often be viewed from the outside as a one man band. The guy with the money, the face of the developer, seems to be the only person who has the vision and the ability to make a project happen.

 But successful businessmen in any field, not just property development, often have the same ingredients to their management style -

 ·        They clearly understand their weaknesses

·        They don’t bullshit themselves about those weaknesses

·        They surround themselves with a team of people who are strong in their weak areas

·        They work to their strengths and don’t spend time fixing weaknesses

 Be very clear on your weaknesses, whatever field you’re in, and surround yourself with people who make you look far better than you really are.

  

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
Will Regional Australia Survive?

As technology increases, automation replaces labour intensive jobs, and the search for employment keeps dragging our next generations away to the major cities, it’s timely to consider…will Regional Australia survive?

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Mining has always played a major role in job creation in Regional Australia, and that can be seen happening again now with the improvement in the value of raw materials and the opening of new mines in recent years. However there is an underlying drain on our population that we need to be aware of. Mining is leading the world in several forms of automation. From drag lines to truck driving, many of the jobs in mining can be automated, and that conversion from people labour to automated labour will continue as fast as technology will allow.

 Agricultural, especially in North Queensland should be a major employer, if only we had government leaders with a vision greater than 3 years. But unfortunately without guaranteed irrigation and power supply, we will never reach what is possible.

 Our young people continue to exit the regions in search of better opportunities in the capital cities, which is seeing an intellectual drain as well as adding to an ageing population.

 Now this all sounds doom and gloom and it isn’t a catastrophic decline in regional economies, but it is a clear and present trend that unless we open our eyes and start to look at “Nation Building Projects”, then by the time it does become a catastrophic problem, it will be all too late.

  

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
Project Management is People Management

The key to successful project management is to focus on managing people rather than things.

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By making the statement that Project Management is all about managing people and not things, it doesn’t deny the fact that there are many “things” that still need to be achieved for a successful project. However as a project manager, it is important to keep in mind that you are the conductor of a team of people who will help you deliver a project. It’s a chain, and it only takes one weak link to bring the whole project to a standstill.

 As a project manager your first goal is to try and surround yourself with a team you know and trust, who are experts in their individual fields, and bring solutions not problems to the table.

 Of course this is not always possible, as many clients have their own preferred consultants and builders who they have a relationship with. In this instance take the time to get to know your team members, understand how they work and what motivates them, and work with those traits not against them.

 However, there is always the 10% who are just not team players…cut them loose before they bring the whole project down.

  

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
What Does 2019 Hold?

It’s been just over 10 years since the stock market collapse of 2008 which lead to the worst economic crisis since the Great Depression. So when will we return to the glory days, or is this the new normal?

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From my perspective as the years of poor economic conditions have rolled on, it has become more and more obvious to me that those who keep looking for a return to better economic times will continue to miss opportunities in the present, be constantly waiting for a lower risk environment to invest, and always looking at the “glass half empty”.

 This doesn’t mean you that you ignore the economic conditions and invest regardless. It means that you accept the conditions as they are, understand the risks as they are now, and understand the financial parameters within which markets work now. You then adapt your business, for whatever financial capacity you are at, and look for opportunities that fit within your capabilities. Of course it means opportunities are much harder to find…but it is what it is, either work with it, or give up.

 It also doesn’t mean this is the new normal. Markets will change and economic cycles will continue. It simply means that for the time being this is how the world works and if you don’t adapt financially and mentally, then you’ll always be waiting, and you’ll be missing opportunities in the now.

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
2019 - Don't set yourself up for Failure

Property is riddled with Red Tape, it’s a slow transition Asset, and requires more cash equity than in years past. So why on earth do we bother?

 Because Property, unlike shares, is substantiative (it’s bricks and mortar), it’s less volatile and holds its’ value better than shares, as a developer and asset owner you have choice in terms of location, design, tenancy mix etc., and finally land value can never be destroyed.

 But time and again, I see people set themselves up for failure in either property development or investment. Following are 5 points to think about that could make you far more successful.

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Repeatability – Can your property location be repeated? Is your design the same as all the others out there? Are you competing solely on price? These things are not wrong, but if your project/asset is not unique and can be easily repeated by others, then by default you’re competing on who can provide the lowest price to the market, which is a difficult way to play the game as there is always someone with deeper pockets than you.

 Speculation is Out – Speculation is the quickest way to failure. Build it and they will come actually means build it without end user commitment and the banks will surely come. Get your revenue committed before you spend.

 Cash (flow) is King – Prior to the GFC, debt was easy to obtain and made the world go round, however it also nearly destroyed the economy. Even with these lessons of the past, mezzanine equity is again on the rise…just be very careful because when the merry-go-round stops, those with the lowest debt win.

 Be a Team Player – You’re the Captain, pick yourself a team of consultants who are experts in their respective fields in the areas you are weak in, and who you know and trust, and work with them over the long term. Stop having an adversarial relationship with everyone and be the captain of your team, not the evil dictator.

 Control the Controllables – Stop thinking you can control everything. Markets are fickle, Red Tape is all over everything, and competitors are out to do whatever they can to get an advantage. You control only what you say and do, you have no control over other people or how they think and what they do. Understand this and apply the four rules above and you’ll go a long way to making 2019 your best year ever.

  

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au

 


John Rosel
2018....49 Not Out

I can’t believe another year is down again. Personally I’m raising the bat for a half century next year (turning 50), and I have to say it’s been an entertaining innings although the last 10 runs have been tough.

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I came out to bat early and was steady and consistent on my way to an unbeaten 35 at tea. At that time the ball was getting old and I wanted more from this innings so I decided to go it alone, play more aggressively, go after the loose balls and attack the bowling head on. With this new approach I quickly advanced into the 40’s and 50 was looking a breeze. The fielders couldn’t put a stop to me.  

But then they brought on their fast bowler GFC.  

I didn’t even see the first two balls and then the third one took me flush in the ribs but I managed to look like I wasn’t hurt and took guard again. Well the fourth, fifth and sixth balls hit me in places I didn’t even know existed, but thank god the over was finished. 

But no…GFC had delivered a no-ball so I had another one to face! Grimly I took centre and waited. His run seemed to get longer and he seemed to be getting angrier that he couldn’t dislodge me. He tore in and tried to bounce me into next year, but I was ready this time and saw the delivery easily and ducked and swayed away.  

GFC looked despondent and looked like he was out of puff, (this looks promising.) Two balls previously I was ready to retire hurt but I’ve survived to the end of the over and I’m sitting on 49. So with a half century in sight, having survived a bruising period, and GFC looking a little less intimidating than when he started his spell…it looks like I’ll man up, ask the umpire for centre once more, keep the head down, and get to my 50, and then drinks. 

Having been through all that, I really feel like the next 50 runs will be a little easier.

   

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel
Negotiation...When Less is Better

In a negotiation, especially a heated one…Never miss the opportunity to say nothing.

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In negotiations and business dealings you will deal with many different types of people and personalities. Some negotiations are easy, others are hard, and a few seem absolutely impossible. 

Don’t feel you always have to have an answer. Don’t feel you always have to respond to the other side’s arguments and opinions.  

Of course, it isn’t easy to do this. But recognise why you feel the need to respond…it’s not because the other side is wrong (in your opinion), it’s because of the primal fight or flight response. You feel under siege and you feel you must defend yourself and your view otherwise you’ll be defeated in the negotiations.  And when you feel the need to have to defend yourself, your reasoning becomes skewed as the focus falls on defending your opinion rather than the outcome you want. 

You may win the battle, but you still might lose the war. 

Become conscious of the way that you negotiate. See when you are defending your view simply because you believe the other person is wrong. At times like this, just let them talk…but listen, don’t dismiss their arguments as nonsense. Remember you need to understand where they are coming from so you can find their “triggers”. It’s these “triggers” that are the doors to a solution. 

  

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au


John Rosel