Leighanne Michelle: Leading with Heart Through Legal and Financial Trials

In a world where challenges can seem overwhelming, Leighanne Michelle’s journey through the turmoil of property investment stands as a beacon of resilience and hope. What began as an exciting venture into entrepreneurship quickly transformed into a complex saga filled with unforeseen obstacles and financial strain. Yet, through every trial, Leighanne has discovered the power of community, the importance of self-care, and the strength that comes from advocating for change. Join us as we delve into her inspiring story of navigating adversity, reclaiming her voice, and helping others in similar situations find their path to empowerment.

Can you share more about your journey and the inspiration behind “The Lost Property”?

My journey behind the Lost Property started in 2013 when I purchased a commercial suite to run my small business for the sum of $85,000. I had just had a baby and wanted to run my business from the suite part time whilst also being a mum. I was super excited to start my entrepreneurial business. The building was constructed in 1926. It was a beautiful heritage building in the regional town of Geelong, Victoria, Australia.

How did the property investment saga begin, and what were your initial expectations?

The property investment saga started in 2017 when there appeared to be structural failing in the building identified. Initially we (the Owners) thought we could repair the damage and restore the building. But then in 2018, more problems in the pillars were identified and the whole building got shut down. We had to relocate our businesses, and we had two days to exit the building and remove all our items. Our asset became worthless and we started to lose a lot of money.

What were your thoughts and feelings when you first realized the investment was turning into a financial and legal nightmare?

I started to have my fears about it because things quickly snowballed into one problem after another. It wasn’t just maintenance as over the years we had a lot of maintenance issues to address since I had purchased my suite. Then once the building got shut down, the collective debt started to rise dramatically. In 2018, the debt rose to $780,000 alone. We couldn’t get everyone to agree on funding or selling the site. The local Council had emergency orders placed on it to get us to comply because of safety concerns. We wanted to do the right thing, so this was very distressing trying to help Owners understand their asset was gone.

The Owners Corporation Act 2006 (Victoria) has very clear rules about unanimous voting in these situations, so we went into administration because we were declared dysfunctional (i.e. couldn’t agree). It remained in administration until July this year. Our Owners Corporation was fined $350,000 plus court costs for not complying with emergency orders.

It came out of administration because after 6 years as we are considered no long dysfunctional this year. And now we have saga back in our hands to resolve. The collective debt now is $5.6million. The debt escalated so much because the Owners couldn’t agree and then the Council demolished the building without us and then sent us a bill of $4.1million. It was devastating.

How has this experience affected your mental health and overall well-being?

Initially, it absolutely was the most difficult thing I have ever faced. I was living and breathing it every day. My anxiety was sky high; I couldn’t switch off or sleep. I was so stressed out I started to get skin cancers and heart problems. I was worried about how I was modelling stress to my young daughter, and it filled me with a lot of guilt. My mind raced in circles a lot about wondering how we would solve it. I became dissociative. I sought professional help.

Can you describe the most challenging moment during this saga, and how you managed to get through it?

When we were in administration, we lost our ability to control our destiny. The administrators (we had two) worked at a snail’s pace and did not fully seem to have a solution for a way out of it. And during the pandemic the Owners really lost their way. Many became filled with apathy and depression. It was heartbreaking. And the Council continued to drag our Owners Corporation through the papers and wished to fine us for being able to comply with the orders. It was awful.

What was it like working with 19 other owners to navigate such a complex situation? How did you maintain a sense of unity and cooperation?

My view on this is that is has constantly changed. We have struggled a lot to get everyone to agree to sell the property. A professional mediator was employed for a year to help everyone agree. We thought we had found a buyer who negotiated for many months. We all signed contracts to sell up hoping this would take us out of debt, but the deal fell through. The purchaser did not settle and folded his companies. This was another blow. So now that we are out of administration, I see it as a great opportunity to find a new buyer. I am leading the way to motivate the Owners and manage the Owners Corporation. I have been elected chairperson and with our Committee, and dealing with key stakeholders to find a new buyer and a new way out of this mess.

In what ways did this experience change your perspective on property investment and legal frameworks?

It has completely changed how I view the law in the Owners Corporation space. In fact, it’s broken the old assumptions that property is usually a good investment. It still can be but do a due diligence first. I have also seen how lawyers and the courts in this space don’t have a lot precedents so there’s a huge amount of ambiguity in the concepts/principles in Owners Corporations. Especially for buildings that are nearing the end of their life. The law doesn’t take that into account, and I believe that is wrong. We have an aging stock of properties in Australia and this problem we have had is likely to be repeated over and over again.

What motivated you to start lobbying the state government for changes in the law? What specific changes are you advocating for?

I have written to local and state politicians, and I never get a response. I contacted Consumer Affairs Victoria who were open to hearing how they can improve the law and suggested if more Owners complained about it, they could take our feedback. I have had an offer from a solicitor to help me do a submission (fee free) once the saga is over to the Law Reforms Commission because she has seen how bad it has been for us over the years. I also have a petition to lobby the State Government to make changes to the Owners Corporation Act (2006).

There needs to be a provision in the act for properties that are no longer habitable/facing demolition that sees all the Owners comply to sell it or remove it for safety but also for the financial and wellbeing of all involved. Some buildings just cannot stand forever and this needs to be recognised in the act with a pathway out of this that doesn’t take this long to resolve.

How have you managed to balance your personal life and well-being while dealing with such a high-stress situation?

I haven’t managed it that well in the beginning and my personal life was affected a lot. My marriage is over after 15 years. We are amicable but my name and assets are caught up in the saga so making divorce problematic, so it’s a bit of a waiting game. I have returned to a favourite pastime of ballroom dancing. The extra exercise has been awesome to help manage my anxiety.

What support systems or practices have helped you maintain resilience throughout this ordeal?

I have a daily ritual I have learnt from my coaches and mentors who have helped me through. I meditate for 30 minutes every morning and night. It has helped me immensely and I have done this for 4 years no stop. I indulge in self-care and am proud to have written my first book. I can’t release it yet due to the saga still continuing but I am so proud to have been able to declutter the story from my mind. I am immensely proud of all that I have achieved including running my own business whilst this saga persisted. I have so much gratitude for my life, and I can see how this saga has actually helped me grow my leadership and resilience skills.

Can you share any advice for other women who might find themselves in similarly challenging situations?

Please seek support in the way that suits you. I have purposely sought out happy people and activities to lift my spirits. It has been life changing to me to feel so supported by friends and colleagues and it really helps to know that we are never alone. The load is too heavy to carry on your own. Also, use the situation to highlight the ways you lead with the heart. I often think we don’t fully see that clearly whilst we are in the mess. With hindsight, you can see how much you gave and all the amazing ideas you came up with. You should give yourself immense credit for all you have endured. Use this knowledge to help you lead with heart in all you do. Self-love, self-worth and self-compassion are very important.

How has this experience influenced your coaching practice at Leighanne Michelle Coaching?

This experience has shaped everything I do in my coaching business. In fact, I see it my life’s purpose to feel empowered and help others achieve fulfilment in their lives. I find that the longer the saga has gone on, the more it gives me a voice and visibility to help others. I love that because I used to be so scared and now, I am focussed and leading in ways I never thought possible. I am forging a path now into leadership because I don’t have to wait. I have proven I am a leader, and I can make amazing things happen.

What have you learned about yourself through this journey that you think others could benefit from?

Trust the knowing within. I have learnt to take inspired action but also to throw everything at it. I have had many mini thoughts/nudges that have helped me to where I am today and I know something amazing will come help us write the final chapter and end the saga To make change, like moving blocks, shifting old energy, going around obstacles to keep momentum forward is super important. If people project their negativity onto you, you just have to shine brightly and move in another direction. Being nimble helps.

How do you envision the future now that you’re working towards legal changes to protect others?

I believe 100% that the law will be changed and that I am going to help thousands of people because of it. No one should ever have to go through something like this ever. I also want people to not just accept the status quo. We have some much power within us, and we need to use our voices to be heard. I believe that we are sent these challenges because we have the skills to move mountains and help others who can’t do it for themselves.

What message would you like to share with women who are facing financial or legal challenges, particularly in property investments?

My heart goes out to you right now. Use the challenge to learn and grow, even make a business, or write a book about it to help others. Nothing is wasted, and whilst the challenge may have you feeling raw, know that it will be resolved, you will recover. This is a season and whilst it’s a difficult one, you will have a lot of other great amazing seasons yet to come. Know that you’ve got this!

IG: @realleighannemichelle