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Preparing the inside of the home
<a href="/expert-insights/building/when-first-impressions-count-its-the-simple-things-that-matter">In part one</a> we discussed the preparation of the front aspect of the home.
We need to adopt the same simple steps, preparation, presentation and consider the marketing campaign, to the inside of the home.
This, should be taken into account, as we begin to prepare the inside of the home. <a href="https://youtu.be/0Z8u5qTArxg">First impressions count</a> and the online photos and videos could well be the first impression made other than driving up to the home.
{qtube vid:=0Z8u5qTArxg}
Once again, a simple process applying the following basic principles; de-clutter the home to provide the veneer of space, touch up walls that are damaged or marked to eliminate objections towards the property value, <a href="https://youtu.be/hrMKW_s2WhM?list=PL684D715699D0B23A">create an inviting ambience through non-intrusive fragrances</a>,  style the home by using simple yet appealing ornaments and adopt a minimalistic approach to furniture.
Where possible maintain a neutral appearance as though you are providing a blank canvas for the buyer to envisage their own style; through colour on walls to furnishings.
Another simple and cheap but yet effective tip, is to have the carpets professionally cleaned and/or timber floors buffed up. Flooring can be very expensive to replace, yet by refurbishing and not replacing the flooring, this adds appeal and value to the home. 
Associated Costs
<ol>
<li>Buying storage boxes on average $10 each. Getting rid of unwanted clutter costs less to pack and move. Take the opportunity. </li>
<li>On average, it will cost approximately $1,400 to paint a two bedroom apartment, in full. </li>
<li>On average, it will cost $100 per wall to repair superficial render cracks on internal walls. </li>
<li>Carpet cleaning ranges from: $50-$80 per room.  </li>
<li>Fragrances and decorating is all up to your own discretion. </li>
<li>Rebuffing and sealing timber flooring, the average cost is $120 per room. </li>
<li>General property professional cleaning services for a two bedroom unit: $280.</li>
</ol>
Taking care of the above once again enhances the aesthetic and perceived value of the home. First and foremost, as the property has been prepared for the photos and videos to be presented on the property listing portals and website. This allows you or the real estate agent, to maximise the impact of the marketing campaign. 
{qtube vid:=b4YuE0PSYNw}
First impressions count, and the first impression could well be on the online marketing.
It is relatively easy to prepare the inside or our own home to take to market.
When the property we are about to sell is tenanted however, the process may be hindered and it becomes more complex.
The better agents know how to deal with these situations and work with the tenants, to maximise the sale value of your property. 
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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ealmedia-arK4DBYLjS

When first impressions count, it's the simple things that matter (part two)

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In light of the much publicised record high <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2015-01-08/building-approvals-hit-highest-level-on-record/6006788" target="_blank">building approvals leading up to the end of 2014</a>, I am a strong believer that the majority of Sydney’s developments we are building are what I term <a href="https://youtu.be/XXZBkThEdkQ" target="_blank">million dollar ghettos</a>. To date I’m still not convinced otherwise.  
There are two fronts from which I base my beliefs. The first being that construction standards are not keeping up with construction trends to meet new living style demands, the shifts to urban consolidation (UC). The second, as previously reported, the <a href="/news/what-are-sydney-s-million-dollar-ghettos-and-where-are-they">“dangerous liaison” or  “unique”</a> relationships, between developers and strata managers is becoming increasingly evident.
The demise of construction standards, most would like to believe, hit a slippery slope when private construction certification came into play in New South Wales in 1999 and as early as <a href="https://www.hpw.qld.gov.au/SiteCollectionDocuments/improving-building-certification.pdf" target="_blank">1998 in Queensland</a>.
For the most part however, I do not believe private certification to be the demise in quality of construction. I am of the opinion that standards and regulations have not kept up with the construction of mass numbers of highrise building trends, to properly and adequately accommodate living style shifts and requirements. We now have more than one in four residents living in strata titled dwellings.
Building and construction trends, if I may add, that have also seen more would-be unskilled developers and builders enter the arena, and all because of home warrantee insurance (HWI) being relaxed.
Crudely, you may build anything over three levels and you don’t have to provide HWI. Added are the complications and the costly legal process making recourse for rectification, less accessible. A great platform for fly-by-night developers to thrive in a “hot property market”.
The onus should not so much as lay on the certifier, whether they work independent of the local councils or for the local councils. The process of ticking boxes and making sure ventilation ducts are in place, water proofing is laid down and so on, is that: a process.  See it and if it complies, tick the box. Again a crude and very simple explanation of some of the requirements.
If it therefore ticks the box, why are there so many issues? A standard is a measure, a quantifiable outcome to determine whether or not a job was done properly or a structure was built adequately. Why are these therefore not adequate? One of the answers is overbuilding and under engineering. Another is the downgrading and deterioration of materials being used. Yes, the materials and methods of application which still comply with building standards however.
In a way that you may better understand; think back to the three level, walk up, yellow and red brick apartment blocks built in the 70s. <a href="/expert-insights/investing/before-the-fall-balcony-safety-regulations-are-still-falling-short">The standard for balustrades, balcony rails or balcony wall heights</a> were 850mm, maybe even lower.  Who lived in these apartments? Mostly, it was young couples with very little use of the balcony other than to dry their laundry. We may say, not a lot of risk. Now, these heights are considered too low. Why? Buildings are taller, young families are living in the unit blocks with children utilising the balconies for recreation and entertainment purposes. Balconies have become the new backyards, where backyard cricket rules don’t apply.
Another is the ventilation in bathrooms and laundries. There is a standard that relates to how much air a vent will extract out of these areas. Again, in previous years, most bathrooms and laundries had windows as well as ventilation units. The same standard applies today, but the big difference is that there are now no windows. The mechanical ventilation units are installed to standard, but cannot cope with the work load. Therefore, <a href="/expert-insights/investing/one-rental-problem-that-may-be-opening-you-up-to-a-lawsuit">a large number of units end up with mould issues</a>.
Again, when looking at the new living patters in the habitation of these dwellings, you can comfortably increase the workload of the vent by a further 100%. How can these mechanical vents cope? Truth be told, the ones that only just meet the standards don’t cope at all. Similarly, a multitude of other areas of construction meet the ‘standards’, but with overcrowding and mass construction coupled with under engineering, buildings are not coping.
Now turn your mind to some of the most common issues faced with respect to building warrantees; waterproofing, concrete cancer, falling and cracking render and ventilation problems. The older units built in the 70s and 80s are almost in the same condition because of the high grade materials used at the time and the standards were suitable. Now, most of the unit blocks which face major problems, all fall within two to three years of construction.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
Then, there is what I have referred to in past articles and videos as the “unique relationships” between builder/developers and strata management companies. 
The main issue is that not enough time is allowed for these taller, bulkier buildings to settle properly; to determine issues which should rest on the building company/developer to fix and not the owner’s corporation post the proposed 24 month liability tenure about to be introduced. However, that is only and if the strata management companies compile a report as prescribed in the proposed home Building Amendment Act 2014. In the main, “owner’s corporations” will only have two years to make a solid claim.
The rule of thumb that I use is that it takes a building four to six years to settle properly. Therefore, most faults in the construction: the main structure of the building, will not be evident for two years post the developer/builder has moved on from their fiduciary obligations.
Furthermore, under engineering and use of new construction methods and materials, are yet to be proven. However, one thing is a fact and is resounding true for now.  Large unit blocks have greater levels of maintenance issues than ever before and not in relation to quantity being built, but on averages overall.
Our personal experience in managing newly built apartments across Sydney has only highlighted the need for updated construction standards, as we witness how quickly new buildings deteriorate. Yes, then there is the ongoing battles we have with strata management companies that forever drag the chain when it comes to reporting back to the builder the issues that arise in properties that we manage. Perhaps you can tell me why they may adopt this tact, other than the obvious?
How to avoid being caught out:
<ul>
<li>If buying off the plan, be sure you conduct thorough background search on the developer/builder. This is particularly important if you are buying into a unit complex that is higher than three levels.</li>
<li>Visit other complexes built by the development company.</li>
<li>If buying into an established complex, ask occupants for building feedback.</li>
<li>Check for signs of mould and water marks along ceilings and where wet area walls meet the floors. Signs of issues are bubbling and peeling paintwork to the outer area.</li>
<li>Steer away from high rise apartments that have been rendered or will be finished with a rendered exterior for most of the surface area.   </li>
<li>Use of low grade materials and the use of fillers in the render, reduces adhesion properties between brick face and render. Settlement cracks also contribute to render falling away as well as waterproofing failure on balconies.</li>
</ul>
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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Is a storm brewing over Sydney’s construction and development? 

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You can almost say it’s a “piece of cake” to negotiate down when dealing with a greedy real estate agent. The agent that has their self-interest at heart and not their vendor’s.
These are simple negotiation tips, yet they are very effective and have worked well for clients, my family members and myself.
Number one: Preselect properties
The number one tip is to pre-select the property or properties in the area that you want to invest in, by doing research on the property listing portals. What you are looking for are the following features in the add-campaigns, which are run by the real estate agents;
Look for the badly presented properties, properties with bad photos, such as:
<ul style="line-height: 1.3em;">
<li>Badly maintained front and rear yards, 
</li>
<li>Cluttered rooms, 
</li>
<li>Untidy kitchens and 
</li>
<li>Dirty bathrooms</li>
</ul>
The quality of photos can also be a giveaway. The properties may be clean and look tidy. However, the selected agent isn’t familiar with nor believes in:
<ul style="line-height: 1.3em;">
<li>Utilising professional equipment, 
</li>
<li>Implementing marketing strategies to make the greatest return on investment for their client, and 
</li>
<li>Outsourcing or adopting professional teams to assist with the marketing, use of photos (quality) and video. 
</li>
<li>In the add campaign, run your eye over the headings and even the copy written for the listing advertisement. I’m not the best copy writer but I would certainly not use; “Cheap as Chips” nor “Desperate Sale” as the heading. You may laugh, but they are out there. In this case, they are out there for your advantage!</li>
</ul>
The marketing campaign tells you one of two things; the real estate agent cares or doesn’t care at all. It also represents to the general public that the vendors themselves care or don’t care.
Now that you have selected your targets, move to tip number two.
Number two: Make a very low offer
The second tip, is to make a low ball offer. I will simplify it as much as I can. Here in Sydney, Australia real estate agents would like to believe they are on top of the regulations. Therefore, they believe that an offer and particularly a written offer, <a href="https://www.fairtrading.nsw.gov.au/ftw/Property_agents_and_managers/Rules_of_conduct/Conduct_requirements/Duty_of_disclosure.page">must be presented to the vendor no matter what</a>.
Well, the above is not entirely true. In short, if the vendor has given the agent clear instructions and in writing as to what offers he/she will accept, then the agent is not required to pass on any offers below this value. In other words, a firm strategy is in place between agent and vendor.
How do we use the above to fool the greedy real estate agent?
Simple, make an offer and make it in writing. As a matter of fact, I take a step further and ask for the contract.
I place the offer with terms and further conditions attached, along with what we call a 0.25% deposit to exchange. This, of course is a low ball offer, an offer 15 to 20 per cent below asking price. The offer is made dependent on the current market conditions and the ratios will vary. I give this offer to the agent with a cheque for the deposit and signed contract. Ready, willing and able. There are however, my own conditions;
<ul>
<li>Ask for a 10 day cooling off period. Heck, if you can get away with it ask for more.</li>
</ul>
In some countries this is called a “due diligence” period. In Sydney the contract comes with a five day cooling off period. A period to do all the checks and final bank valuation to obtain finance.
<ul>
<li>Request access to conduct a thorough pest and building inspection. Thorough, is the key word. Make sure furniture is moved around and the building inspector even lifts rugs. 
</li>
<li>Your aim is to keep the property off the market for as long as possible.  </li>
</ul>
It will be very clear who the greedy agents are when your initial offer is accepted, and when they take the contract and present it to the vendor. In fact you are helping the greedy agent to work his/her magic, in convincing the vendor to sell low. You are equipping the agent with the ammunition they need to work in your favour.
You are on your way, this is what you want. The agent believes their final job is to convince the vendor to accept your offer and to “condition” the vendor to come down in price. This leads to tip number three.
This article continues on the next page. Please click below.
<hr class="system-pagebreak">
Number three: Play the trump card
Tip number three is where the deal is locked in and when we play the trump card. Simple and effective.
We are working on the motivation of the greedy real estate agent. You made the offer, there was a counter offer and you were prepared to accept the counter offer, because it is already below market.
Now you strike and you strike hard at the core of greed. On what I call the eleventh hour, pull the offer off the table. In other words, be prepared to rescind the contract.
Keep in mind contracts have exchanged, the most you will lose if you do walk away is the 0.25% deposit. However, what you are really doing is testing the agent’s, and most of all, the vendor’s position.
I can assure you, in most cases, the agent has not advised the vendor to obtain a pest and building report prior to placing the property on the market. Why should they? It’s not their job and besides, it takes time and effort. They’re not getting paid for this, their job is to sell the home and sell the “vendor paid advertising” package only, isn’t it? The rest is just too much work.
Therefore the agent, nor the vendor, know what lays behind the walls, under the home or in the roof cavity. Your P&amp;B Report tells you what possible damage there could be or the damage that exists.
It startles me to note how many agencies are actually taking homes to “auction campaigns” without assisting the vendors and instructing their vendors to obtain P&amp;B reports. This itself makes for another story on another day.
Make it hurt, exaggerate the repair bill and cost, ask for a discount off the negotiated price. You may be puzzled by this? Yes, you can renegotiate a contract even after it has been signed and not have gone beyond the cooling off period or the DD period.
The agent doesn’t want to lose the opportunity to close the deal as soon as possible, because they have already spent their commission from the ‘sure sale’ 10 times over. Agents don’t want to place the property back on the market because of time and work this will require. They are lazy and it creates concerns in the minds of other buyers.
Most of the time, the lazy and greedy real estate agents will see it as less work to convince their vendor to reduce the price and take the re-negotiated offer. Come on! did you really believe the greedy agent wants to work that little extra to favour the vendor? Do the math, the extra $5,000 at 2% commission is not a lot. Happy buying and negotiating.
In closing:
These are only a few of the tips and secrets real estate agents don’t want you to know. The three points I have shared are a lot more complicated than what you have read, but as you do adopt these in your property investing journey, you will learn how to use these principles and hone in on your skills.
Every property purchase has its own dimension, form of purchase and negotiation tactics. I take a bold approach due to my background in the building industry and I can gauge costs of repairs and possible faults in the building, quickly and at times on the day. You may simply engage a builder to attend the inspection as a friend to guide you. Whatever strategy you implement be satisfied you did what knew best at the time. Simply have a go and don’t be surprised if you walk away with a bargain and a real estate agent as a new friend.
If you’re an agent, I hope you to have read the article and it may have assisted you to be better prepared. Who knows one day I may just come to your open home in search of a bargain for one of my clients. Let’s hope not.
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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Three tips that will help buy a home for less

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We know property in the western suburbs of Sydney has reached an all-time high.
Many of my family and friends, as well as clients, are selling their old home investments. They all know that their investments have reached an all-time high and think now the wisest move is to sell.
Renovation works are becoming too costly and older homes in Sydney's western suburbs are also becoming more and more untenantable. They can also see mandatory changes looming due to the dangers around asbestos and old led paint, therefore feel it is time to sell out. Frankly I don't blame them, most property managers found in these areas aren't aware of the dangers and possible claims against the landlord.
Investing is all about numbers and frankly, the numbers just don’t add up presently in terms of rents v cost to purchase.
This however is not the premise for this article. This article is about the future costs I strongly believe will be incurred by many property investors in these suburbs and in the near future.
Watch this space, because what the average real estate agent doesn’t know is alarming. Or maybe they do know, but just don’t tell you, since they just want to keep your management. Whatever the case, in my humble opinion, it will cost you a lot of money.
<a href="/expert-insights/welcome-to-the-asbestos-belt-of-sydney">As I wrote</a> in Property Observer recently:
“You can just imagine a tour guide calling out through the loudspeaker, ladies and gentlemen, please put your masks on as we are about to enter the asbestos belt of Sydney. To our right we see 40 year old/plus homes riddled with asbestos and to our left…more homes riddled with the same and led paint."
For now, if investors that own properties in the “asbestos belt” of Sydney, believe that we are far removed from <a href="https://www.cincinnati.com/story/news/politics/2014/10/23/poisoned-kids-forces-landlord-fine-pricy-clean/17779535/" target="_blank">what is taking place in the US</a>. Well let me once again say; it is only a matter of time before we follow suit.
I am one to believe there will be civil action against many landlords within three to five years. I further believe the “asbestos belt” will undergo a major possibly mandatory transformation within five to 10 years.
This may not only happen in Sydney alone, as a matter of fact, <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-11-11/mr-fluffy-asbestos-home-owners-opt-in-to-act-government-buyback/5882940" target="_blank">the ACT have already commenced a similar program</a> to what I have been writing about for years. The worst case scenario for the owner is; for the value of the property to decrease to land value only and a further cost to demolish the old home made of fibrous sheeting. Or for the landlord to be caught up in a legal suit due to health issues, claimed by the tenants.
My stance on this matter, as once again written in Property Observer:
I can envisage a couple of scenarios occurring soon. One which will place real estate agencies in the firing line when tenants take action against the landlord for health issues, a dangerous position to be in. The second which can occur, is where agents fall short of their regulatory requirements to disclose possible hazards due to ignorance and/or neglect.
Can I say, ignorance from agents is no defence against any claim made by the tenant. Furthermore, blatant neglect to disclose hazards in the homes also by agents and all because they want to keep the management and don’t want to lose the landlord, is in my opinion criminal.
Further to this I see that the smarter agencies will soon be offloading managements belonging to greedy landlords that simply do not have an ounce of care nor intentions to rectify these hazards. To these agencies I say well done in advance.
What to look for when buying a home as an investment in Sydney Australia:
<ul>
<li>If it’s a fibro home and built pre 1986, you can be assured it has asbestos. 
</li>
<li>If it has been cladded, then it only shields the outer skin: what about the inside where tenants and trades people drill holes, affix nails and have exposed wall lining? Secure yourself on all sides. 
</li>
<li>Check the roof sheeting. Older homes generally have asbestos roof sheeting, again if affixed prior to 1986. 
</li>
<li>Ask the agent or agency that is selling the home to confirm when the home was built even if it is a brick home. Asbestos is found in the lining of the wet areas, bathrooms, kitchens and laundries. 
</li>
<li>Make sure you obtain a pest and building inspection report before you commit to a purchase. An outlay of a few hundred dollars may save you tens of thousands of dollars. 
</li>
<li>If you have or if you are considering purchasing an old home in Sydney's Western suburbs, be sure you have a strong property management team on your side. This should be a team that can protect you and the tenant from future issues, and can establish clear tenancy guidelines; to protect you from legal action and to protect the tenants from injury and harm.</li>
</ul>
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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Why I wouldn't buy an old home Sydney's western suburbs

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When it comes to selling your home, there are three areas you need to consider: preparation, presentation and the marketing campaign.
The core principle when it comes to a sale or purchase of anything is, of course, that <a href="https://youtu.be/rmNpIJieUi4" target="_blank">first impressions count</a>. You achieve the best return based on a positive impression and we buy based on the perceptions that we have of the product or object.
So why do real estate agents believe selling a home, property and real estate is any different?
When thinking about selling your home and when you are contemplating how to obtain the most value in the sale, consider both the need to eliminate as many objections as possible and secondly, engage a real estate agent that understands how to prepare the home so that the first impression does count in your favour.
Not all real state agents are apt in preparing a home for sale. Unfortunately <a href="/expert-insights/agents-pull-your-heads-in-about-commissions-you-re-getting-more-not-less">their interest mostly lays in the commission alone and not in obtaining the best value for your property. </a>
The sales process is simple and it starts with the marketing campaign. However, most real estate agents are unsure how to begin. The better real estate professionals will engage stylists and other professionals to assist with the process. Preparing the home and making the first impression starts with the main aspect, the front appearance of the property. Typically what buyers see when they first approach the property.
Simple tips to take into account when preparing the front yard and front aspect of the home. These tips are straightforward; yet they render a huge difference to the home’s perceived value. I have broken the costs down based on the services I have used here in Sydney, Australia:
<ol start="1">
<li>Take care of the lawns and edges. The estimated cost may range from $50-$150 on average across Sydney. 
</li>
<li>Weed garden beds, trim the hedges and add bark. The estimated cost ranges from $200-$400 across Sydney. 
</li>
<li>Pressure clean the driveway and footpaths leading to the front door. The estimated costs may range from $200-$500 on average across Sydney. 
</li>
<li>Pressure clean the roof area visible to the front. The estimated cost ranges from, $250-$600 across Sydney.</li>
</ol>
Therefore, at an average expenditure of under a couple thousand dollars, you have just added  tens of thousands of dollars value to the home. Not only do these simple tips add value, they add character and charm in a simple way.
Our aim as agents is to engage the buyer’s emotion from the moment they view the photos and video on online property portals. This is further enhanced when they walk up to the front of the home, see colour and presentable gardens.
Be mindful that a buyer’s objections are bargaining chips to drive the price down. <a href="https://youtu.be/3-uMKHTqxik">As agents and vendors, we have to eliminate as many objections as possible</a> to maintain the value and differentiate your home from others in the area that have been badly prepared for the sales and their marketing campaigns.
It’s the simple things that matter and first impressions count.
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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When first impressions count, it's the simple things that matter

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To this day, I have not seen any financial planner, accountant, or other financial specialists offer secondary stock to their SMSF client when their client is being referred to buy property.
What I have seen are many financial professionals moonlighting as real estate agents and offer new stock to their clients in droves.
My belief is that many are attracted by the extremely high commissions being offered, some as high as 6%-8% of the value of the property. A standard commission paid to an agency is on average 1.7% as reported earlier in the year.
Now if I read correctly, our own representatives from the REIA believe the lines are blurred on our side: “Our involvement with this inquiry was at the request of the committee, although the REIA has been pro-actively working to address community and industry concerns about the blurring lines between real estate agents and the provision of financial advice,”<a href="/guides/the-blurring-line-between-real-estate-agents-and-smsf-advice"> said the REIA</a>.
Property marketing companies may blur the line but they are not the majority of what I call the “real” real estate industry. I’m of the opinion that the lines are blurred on the side of financial planning (FP) and the finance sector and there should be tighter controls there, or at least be on-par with the onus placed on the real estate industry.
As real estate agents, we work under very close scrutiny by the authorities when it comes to offering any form of financial advice. In a nutshell, we can’t offer any financial advice. Even hints in our marketing of property by using such terms as 'great investment opportunity', 'great rental returns', 'awesome growth potential' and even 'investors dream' may get an agent into hot water.
However, many financial professionals moonlight as real estate agents. It appears that individuals in the financial sector and property marketing companies can state all of the above under their governance. They can also refer property without being holders of real estate licences. Ironic, unfair, unjust? however seemingly true. It’s a marketing fee, a referral fee that they get and not a commission. Semantics I know, yet a major loophole in the regulations that needs to be closed.
I have had many discussions with Tim McKibbin from the REINSW with respect to these issues over the years. I have been assured the REINSW is lobbying to have these issues resolved. Closing these loopholes couldn’t come soon enough. 
A lawyer friend of mine says: "If you don’t want to be fined and serve time, don’t have a licence and you have a better chance to keep under the legal radar." Wow, I guess these words echo very loudly in the halls of many financial institutions and property marketing companies pushing new property to SMSFs.
We also have the reversal, an agency<a href="https://www.smh.com.au/business/comment-and-analysis/shock-as-real-estate-franchise-enters-financial-planning-market-20140916-10hljo" target="_blank"> Ray White looking to move into the financial planning sector</a>. In my humble opinion, this move is a recipe for major disaster. However this is a path chosen by one group. If this is a means by the agency to get a piece of the action where very high commissions abound in the sale of new properties to SMSFs. If it is, all I can say is “watch this space” and good luck.
Some real estate agent will be tempted to flirt with massive fines and law suits as they step into a paddock where they believe the grass is greener. But I am one to believe most, if not all, that work in the space of “secondary stock” were “normal/standard” commission are paid will not be tempted to flirt with danger, nor have time to see if the grass is greener on the other side.   
Edwin Almeida is licensee in charge of <a href="https://www.just-thin.com.au" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for<a href="https://propertyinvestingvault.com/" target="_blank"> propertyinvestingvault.com</a>.
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When it comes to SMSFs, blurred lines favour financial planners not real estate agents

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How is this allowed to happen? For months now, I’ve been sharing with Property Observer some of the conditions I’ve personally seen tenants have to endure. Things haven’t changed much in this time.
While we asked before “Are your tenants living in squalor?” and aimed it towards the investors who own the property themselves, it’s time for the real estate agents to get off their high horses.
Stop blaming the owners, stop blaming the tenants, you are just as responsible.
I was asked to attend a property inspection as a potential vendor had asked me to look at placing his property on the market. The slideshow above is what I encountered.
You can see leaking ceilings and mould on walls throughout the unit. Not only that, but mould and fungus growing in the kitchen cupboards and toilet floors and walls. The windows are unable to be opened due to fungus and a build-up of dirt along the tracks. You can even see the rising damp on most walls!
To be downright honest and frank with you, it makes my blood boil. There was a child living in this unit, as well as an elderly person.
I asked myself: how did it become possible for the dwelling to reach this state? 
And no, it’s not self-managed. This property is managed by a brand name agency in the area.
I showed the owner the photos and gave him a quick report on the condition. I say quick as I could not spend anything more than five minutes in the unit due to the odour and the pungent smell of the mould.
I also asked the vendor if he had received any mid-term inspection reports from the managing agent, if they had been invited to attend the inspections and why the tenants had been allowed to live like this. Much could be gathered from the silence and the shake of the head in disbelief as he ran his eyes over the photos.
My straight to the point recommendations were these:
<ul>
<li>Sack the property manager</li>
<li>Take the property manager to tribunal and recover all management fees charged</li>
</ul>
Quite frankly, they have not performed their job accordingly over the four years or so that they had managed this property.
When will landlords and property management teams take matters more seriously? Oh yeah, I forgot, it’s not their fault if the tenants choose to live like this. It’s ridiculous.
I believe that if periodic inspections actually took place and reports were not doctored, landlords would take their business to management teams that place value and care on the landlord’s property as well as the tenant’s living conditions.
It is true that property management is an underpaid job in the most part, but if you take on the responsibility then you have a duty to provide the service. Alternatively, you can simply get out if you’re not going to do anything other than collect rent and charge fees.
YOU MAY ALSO LIKE TO READ:
<a href="/expert-insights/investing/is-your-tenant-living-in-squalor-this-video-is-hard-to-watch">Is your tenant living in squalor? This video is hard to watch</a>
<a href="/expert-insights/investing/property-management-is-your-tenant-living-in-squalor">Property management: Is your tenant living in squalor?</a>
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Property managers, you are equally to blame if tenants are living in squalor

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GUEST OBSERVATION
Over the weekend I saw many social media posts of the number of homes auctioneers auctioned off on the day. Some numbers came in between seven to 11 properties sold by a single auctioneer.
Then there were the articles and reports of properties being on the market for as little as 13 days on average across Sydney.
I began to once again ponder on the costs involved in selling a home. More to the point, I wondered about the time given to the sale of the homes by the real estate agents (REAs).
This raised two questions.
<ol>
<li>Is if the real estate professional an overpaid individual.</li>
<li>Do we need to re-think the way REAs are being rewarded for their services?</li>
</ol>
Looking at figures closely
The majority of auctioneers in the field on a Saturday charge on average $500 per auction for attending and overseeing of the auctions. The mean time spent on site by the auctioneer is 30 minutes to one hour. Agents, as we know, on average are charging 1.7% in commissions off the sale price.
Added to the costs of selling a home is vendor paid advertising (VPA), which averages $1,500 per property. Allow me to once again do the math and break it all down to get a better understanding of what it costs to sell a home.
Keep the following numbers and values on hand.
<ul>
<li>Median Home Values in Sydney: $844,000</li>
<li>Average commission equal to: $14,348</li>
<li>Vendor Paid advertising: $1,500</li>
<li>Auctioneer fees: $500</li>
<li>Current - Average listing period in Sydney: 13 days</li>
</ul>
The following question began to re-surface in my mind. Are REAs overpaid? Some will no doubt refute this article and say: "Mate! If you pay peanuts you get monkeys!” Please bear with me and let’s look at the above figures in dollar values per “hourly rates” being charged, before you stone me.
For most of us, we learn early in life, the level of service you expect to receive is usually in line with the amount of money or value you are willing to place on it.
Is the above premise, however, true of the real estate industry or have we fallen into a bad habit into accepting a payment structure that may be seen as out-dated? Will the public wake up to this soon? 
This article is designed to further explore the above notion and to make a cost analysis comparison of professional services provided and client relationship between other professionals and the real estate industry; a cross-comparison in the value for hourly rates charged. You may say, a “pound for pound comparison” with other professionals and industries.
It is noted by the majority, professional service providers may study up to six years to attain their qualifications, their preparation forming a basis for the fees charged. Once their degrees are obtained, there are ongoing inductions of on-the-job training as a minimum requirement; in particular the legal, finance and medical professions commonly known as continuing professional development/continuing educational development (CPD and CED), or internships. 
A real estate agent however, may sell a home whilst in the care of a fully licensed REA and only after completing a three-day course and receiving a certificate of registration from the NSW Office of Fair Trading.
I note that a licensee in charge of an office a fully licensed REA, or a certificate holder, must undergo further courses and training. But these requirements are not as rigorous as most professions. At times a breakfast presentation or a half-day workshop meets the criteria.
Notably, the question persists, "are real estate agents overpaid?" I for one believe this question has crossed the minds of many vendors. Vendors that have sold and currently have properties on the market. Perhaps this is a question that will emerge over time and occupy the minds of the soon-to-be vendors.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
To answer this puzzling question, I have compiled a series of graphs using the example of the legal profession as a cross-comparison.
Bearing in mind other professions also have similar fixed hourly/service rate charges.
I have used the legal profession sample as they break their service rates to six minute increments to itemise their bills and accounts. These are increments that allow you to account for detailed work on a case/matter at hand and determine what was done exactly and in detail for the fee being charged.
Time Sheet
<img src="/images/2014/11/11/edwin-nov-11-one.jpg" alt="">
KEY
Interview: a solicitor will interview the client for 30 minutes to 1 hour, which is usually at no cost. Phone calls, emails and other services performed can be charged at six minute increments or to round off say, $30 for each duty performed.
CMA: a REA agent will attend the home and provide a “comparative market analysis” to the prospective client also at no cost.
A solicitor’s brief may take up to three hours to prepare and this may be at a fee of approximately $300/hour. The REA, on the other hand, on being the successful candidate, may take up to three hours to collect contracts, organise photos and organise the advertising of the property. Yes, and for the ones that still use signboards, attend the property to erect the signboard.
Local data shows that a local Sydney property on average will be on the market for 30 days, in some areas for as little as 13 days, and national data shows property is on the market for an average of 80 days. A legal case can run for days but it is billed on actual hours the legal person spends on the matter specifically.
The legal profession is used as the control group to gauge and compare the performance of the test subject: the real estate agent. The agent’s entitlement of fees, such as commission, which is charged contractually and the perceived assumptions of what a REA does for the commission paid, can be two distinctive notions.
By adopting the use of a simple timeline spread sheet, we may be able to better represent what takes place during the marketing campaign and gauge a per hour cost of the property sale. Assumptions are made in the time actually spent when listing and marketing a property for sale, both by the REA and the vendor.
This view stems from the writer’s experience in running a personal business and in the employment of brand real estate offices over the years. I have also interviewed a pool of agents independently and gathered similar (anecdotal) evidence, which is reflected in the chart below: 
 <img src="/images/2014/11/11/edwin-nov-11-two.jpg" alt="">
The average sale of a home has been estimated to take 12 hours. Made up of: preparation time, open house inspections and post-sale time spent on paperwork as well as, valuation and pest and building inspection access.
Given the above figures (time versus cost comparison) it may be asserted there is a wide discrepancy in fees paid and charged when the sales process is broken down by the actual time spent on the sale of a home.
While understandably these figures may seem surprising and even alarming to some property owners, I do not wish to scare, but rather, to educate and highlight to vendors the need to know and ask, whether they are really getting value for their money’s worth.  
It is time vendors requested a detailed and comprehensive breakdown of fees, times and costs (i.e. itemised invoices) similar to those produced by other professional industries. I stress this even more and in particular when VPA is being charged as an added cost of sale.
In a knowledge rich world, Vendors need to ask questions not only upfront, but also throughout the sales campaign to ensure that they are getting value for money.
Questions such as: ‘Is my Real estate agent really marketing my property effectively enough?’ and, ‘Are they over relying on traditional signboard and costly newspaper advertisements?’ should be asked if doubts ever arise.
The next time you are approached by an agent, you should arm yourself with simple questions to ask before you sign over your rights to sell what may be your most valuable asset.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
Traditional marketing, traditional sales approach 
Are real estate agents worth what they are being paid? My personal opinion is no. If the agency is relying on basic marketing tools and not keeping up with current trends and technology. A further no if the agent is not contributing to the sales campaign, by demanding VPA.
More time should be focussed in the preparation of the property, assisting the vendor in any way possible to achieve the best price. Not to mention working hard to making sure the property settles after achieving an above average price.
I do not subscribe to “paying peanuts” either. The REA should be well rewarded if he or she can show his or her value in the success of the sale. Keeping in mind, historically REAs were being paid 2-3% commissions on properties when the median price of a home was less than 50% what they are now.
Other themes stem from this: 
<ul>
<li>Has it become too easy to enter the industry?</li>
<li>Will there be a rising market of vendors selling their own homes due to high costs in having agents sell for them for the service being provided?</li>
<li>Is the industry ripe for “sell your own home” ventures?</li>
<li>Is there another alternative to commission structure and hourly rate structure?</li>
</ul>
KEY COMPARISONS:
<ul>
<li>
Interview/CMA: A lawyer interviews or briefs the prospective client to give general advice in respect of the issue. In the most part, this is free. The REA provides an on-the-market analysis CMA to sell his or her service to the potential vendor. 
</li>
<li>
PREP/BRIEF: A lawyer prepares a brief at an agreed fee of a/hourly rate to determine the validity of the case and advise the client accordingly. The REA prepares the property for market this includes: photos, advertising, videos, and virtual tours in the most part. 
</li>
<li>
OTM/RTC: A lawyer “runs the case” RTC by the amount of time spent which is charged to the client on a six minute interval (lawyers charge for time actually spent working on the case matter). Whereas, the REA works on a fixed commission, but we are making the assumption the property is on the market OTM for six or eight weeks and the REA spent one to two hours per week showing the property to potential buyers. 
</li>
<li>
Costs: A lawyer will incur filing fees and these fees are added to the charges. The REA may incur advertising costs if the vendor does not contribute with Vendor Paid Advertising. 
</li>
<li>
Total Hours: The lawyers’ fees are fixed on an hourly rate and the case may run for an undetermined period of time; remembering the lawyer only bills for time spent on the case. The REA has a fixed fee but figures would show that in general, Sydney properties are currently on the market for on average four weeks and nationally 11 weeks. 
</li>
<li>
Charges and Average/Hourly rates are self-explanatory. The total average hours spent in the sale of a home are 12 hours. The total charge on an hourly rate by REA is therefore $950 per hour if the vendor did not contribute to costs of advertising. 
</li>
</ul>
Now you may seriously ask the question, “what did the agent and auctioneer” actually do for the sale of the home? If you can answer this with great confidence, and believe they deserve the $950 per hour rate, you can throw the first stone.
{mijopolls 61}
EDWIN ALMEIDA is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a>. 
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Are real estate agents overpaid?

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GUEST OBSERVATION
You can just imagine a tour guide calling out through the loudspeaker: “Ladies and gentlemen, please put your masks on as we are about to enter the asbestos belt of Sydney. To our right we see 40 year old/plus homes riddled with asbestos and to our left…more homes riddled with asbestos and led paint”.
Ironically, the old James Hardie site where most of the asbestos came from in the first place, Harris Park/Parramatta, is being developed into a 3,000 unit apartment site with a possible remediation tag into the tens of millions of dollars.
For now, if investors that own properties in the “asbestos belt” of Sydney, believe that we are far removed from <a href="https://www.cincinnati.com/story/news/politics/2014/10/23/poisoned-kids-forces-landlord-fine-pricy-clean/17779535/" target="_blank">what is taking place in the US</a>, well let me once again say; it is only a matter of time before we follow suit.
I am one to believe there will be civil action against many landlords within the next three to five years. I further believe the “asbestos belt” will undergo a major, possibly mandatory, transformation within five to 10 years. 
The properties found in what is termed as the “asbestos belt”, were built well over 35 years ago. Any home built pre 1986 contains asbestos, mainly in the lining of the “wet areas” (bathrooms, kitchens and laundries).
However, when you drive from Wentworthville and west to the mountains, you see the forestry of “fibro-homes” dominating the landscape. Not only do these contain asbestos sheeting in the “wet areas”, but contain asbestos fibre sheeting from floor to ceiling, even roof sheeting!
It doesn’t just stop there; then there is of course external laundries, garages and all mostly finished with led-based paints inside the dwellings. Understandably, asbestos if left alone and covered with paint or tiles doesn’t pose too much of a threat.
The problem is however found on two fronts; first, the desire by tenants to add fixtures and paintings, wall hangings and so on which are drilled into the walls. The second, there is the blatant disregard by some landlords to maintain their homes when the sheeting is compromised.
Is it the agent’s responsibility and what should they do? 
I can envisage a couple of scenarios occurring soon. In one of these, the real estate agencies will be placed in the firing line when tenants take action against the landlord for health issues, a dangerous position to be in.
The second which can occur, is where agents fall short of their regulatory requirements to disclose possible hazards due to ignorance and/or neglect.
Ignorance from agents is no defence against any claim made by the tenant. Furthermore, blatant neglect to disclose hazards in the homes by agents can be a criminal offence.
Smarter agencies will soon be offloading managements belonging to greedy landlords that simply do not have an ounce of care nor intentions to rectify these hazards.  To these agencies I say well done in advance.
My call 
My call at this stage is for government bodies and industry bodies to begin to take a more serious and pro-active approach to rectification work and remediation of some badly deteriorated homes in these areas.
Will we get to a stage where the government will just step in unannounced, isolate and demolish homes in the area that pose a health threat? I hope not, but who knows and it will only be a matter of time before we see claims surface more and more with people seeking compensation and answers. Will this be the catalyst for local governments to take action?
How will this affect your investment? 
Simply, if the government will step in and pay 100% of the costs for the remediation, well, happy days.
In the meantime, you just have to sit tight and hope no tenant takes action beforehand. We know that the chances of any government monitory intervention at 100% is drawing a very long bow however.  
Take action now while costs are low and thus also preventing greater damage in future.
Suggested Tips To Protect Yourself
<ol>
<li>Don’t allow any work to be done to your home by tenants without first being contacted. Not even hanging paintings or other ornaments and fixtures in bathrooms. Although these are considered reasonable requests remain informed at all times. </li>
<li>Add to the special conditions attached to the lease agreement, your own stringent and specific performance duties around work being carried out both, in the home and external area. </li>
<li>Make sure the “managing agents” are well aware of your requirements and have these in writing, as specific performance orders on the management agency agreement. </li>
<li>Have a professional property inspection conducted and attend to the required repairs and removal of compromised asbestos sheeting immediately.</li>
</ol>
As you may well know, you cannot contract yourself out of legislative requirements. Therefore, I suggest that you seek legal advice with any matters of concern and I encourage you, if you are an investor, to consider immediate repairs to benefit both you and your tenants before claims are made. Prevention is better than cure.
EDWIN ALMEIDA is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a>. 
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Welcome to the “asbestos belt” of Sydney

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Guest observation
Amid current speculation that John McGrath is looking at listing the reputable McGrath Real Estate Agency brand on the ASX, my mind turns to iconic investment tycoon Warren Buffett, a man referred to as "The Oracle". Buffett has the uncanny way of knowing when to take advantage of market highs and market lows.
It's interesting to take two pages from Buffett's encyclopaedia of successes and compare the premises to McGrath's alleged venture.
The first page, or principle, is Buffett's patience in waiting for markets to turn or bubbles to pop, enveloping vulnerable companies when the moment is right. He likens people's emotional purchases and the high risks taken when markets are overheated to "a virus spreading through a kindergarten".
Can we take Buffett's observation of 2003's mobile-home industry, where credit and purchasing was rampant and out of control, as a mirror of our current property market?
Is there a sign, a possible game changer to the operation of real estate companies, that our own Aussie Oracle sees?
Does McGrath see something that the average punter, property investor, or even real estate agent and property economist has failed to see? If the rumours prove to be true, I would judge  McGrath's move to float the agency (brand), as a bold and strategic consideration, at the present time.
It could also be the a possible ideal exit strategy for current real estate office holders, in a time where a turning property market is imminent. An exit strategy that can well end with a bang.
Another Buffett principle is to "invest in or buy a company that will produce 20% growth year in year out". Buffett refers to this as a "compounding machine".
When we apply Buffett's compounding machine strategy to the nature of the real estate business, in essence, the asset has to be a well-oiled and refined machine to produce high yielding dividends for stakeholders. Will this hold true of the individual agencies/offices that make up the McGrath brand?
Can a real estate brand or, more to the point, an agency with 61 offices, be a sustainable or profitable proposition that can be referred to as a compounding machine (even with growth into the Asian market)? Will the perceived growth in the real estate arena be enough to persuade investors to buy shares should McGrath list on the ASX?
False perceptions
In my view, there is a general and false perception that most real estate agencies are prospering.
The public have formed this belief solely due to high property prices, which are heavily inflated. Nonetheless, people make an association between high property prices and the myth that real estate offices are making it big.
Contrary to people's perceptions, the media is currently reporting that there has been a downturn in property listings.
This therefore means more competition among agents and agencies. As a matter of fact, more real estate offices are navigating towards bankruptcy, let alone being profitable enough to have any close association to this idea of being a "compounding machine".
I strongly believe that many real estate agencies, which are highly reliant and dependent purely on sales-listings, are pushing towards the red zone very quickly, and will soon be out of business. I know of many offices with rent rolls - landlord databases - in which the licensees have not paid themselves for up to a months.
The value of a real estate agency (other than the freehold).
The true value of a real estate agency is in the rent roll, not sales listings nor office fixtures or fittings. Not even the European cars most drive. Anything else outside of a rent roll is a liability, not an asset. Rent rolls are traded, "bought and sold". Some would like to believe that the so-called "databases" of purchasers an agency has, hold some sort of value. On the contrary, the only database of real value is the landlord database.
The current values of rent rolls on the market are reflecting ratios from $3.00 to $4.00 on a dollar income per annum. If the annual rent roll income of an agency was $100,000 per annum, the rent roll would be valued between $300,000 and $400,000,and this would depend on how clean and up to date the property management files are kept.
Would I buy shares in the float?
The main reason I would buy shares, if the McGrath brand was to be publicly listed, would be no different to a land release sale.
I would buy in the initial expression and I would be prepared to sell soon after the hype levelled out along with the price. As they say when buying in a land subdivision, buy in at Stage 1 and sell in Stage 3 and 4 before they release Stage 5. Anyone buying in after Stage 3 runs the very high risk of making no return on their investment, or worse still, going into the red.
I am of the opinion, because of the brand name and the level of respect the general public have of the brand, it may well be a welcomed stock. The public's misconceptions around how an agency is valued will further fuel the price of the shares. Therefore I will definitely buy in, sell soon after, and not buy with the view of keeping the assets long term.
Why I wouldn't buy shares?
It is not a question of why I wouldn't buy the shares; it is more a question of how long I would be prepared to keep them. Shares can take on similar characteristics to current overinflated real estate prices in most capital cities.
After all, shares tank every seven or so years and we have had a good six year run so far in this market.
To understand my short-term plan, allow me to scope the property management operation as a business. To do this, we need to drill down into how a successful office operates and have a better understanding of the need to maintain a profitable rent roll. These observations are not based on the McGrath rent roll operation. The following are general industry observations.
<ol>
<li>Young and inexperienced, underpaid property managers do not add value to the rent roll. Highly trained and skilled property managers and property officers add value.</li>
<li>It is an industry that requires a lot of "human attention" and care, as opposed to a manufacturing plant system that is automated with machinery and robots.</li>
<li>Although systems and office procedures can minimise the human work load it can never eliminate the need for skilled supervision required to run an efficient property management team.</li>
<li>Property management fees are highly competitive and volatile and these range from 4% to 7% from weekly rents collected.</li>
<li>The landlord's contractual obligation to an office is only by way of a 30 to 60 day notice. An Exclusive Management Agency Agreement does not mean you own the management in a literal sense.</li>
<li>The ratio of a skilled property manager (PM) to property managements (M) is 1PM:250M</li>
<li>The return of investment at the mid-range value of a management is three and a half years. It will take three and half years to recover any capital investment made, provided there was no attrition of clients/landlords.</li>
<li>Point seven does not take into account cost of overheads to maintain the office open.</li>
</ol>
Personal experience
Over the last 24 months I have seen rent rolls creep up in value, from $2.75 for every $1 to $4.00 for every $1 earned. When I have inspected property management files to determine whether or not our office would purchase these, they have come very short of the mark. Most have required more money and work to get the files up-to-date and in order, so their asking value was priced at more than they are worth.
We have in the 24 months also bought a rent roll for as little as $1.20 for each dollar of income it generated. This is not a common occurrence, but it does happen.
We have also been offered a rent roll for $2.20 per dollar of income generated. Although it looked like an attractive proposition, it cost more than it was worth. It was a risk not worth taking for the reason previously stated: no guarantee that the expenditure could be realised over the three and a half years and in this case in two and a half. It was just not worth the risk.
Therefore, on the previous figures provided, I have also wondered whether or not current rent rolls are overpriced. Are they also caught in a bubble of their own that could just as well pop?
As previously stated, I would be the first to take up an offer in the McGrath float.
I would not, however, buy in with the view to keep the shares long-term. There aren't enough factors that would make me consider the stock to be one Buffett would label a "compounding machine". I am nonetheless intrigued and keep asking myself: "Is this the perfect exit strategy for the man and the licensees that make up the brand?"
Again, I make my observations purely based on my understanding of a real estate office model and the perceived value of a rent roll. A share broker would have a complete and better understanding of the actual value or worth of the shares when taking into account other assets not just the rent roll.
EDWIN ALMEIDA is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a>.
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Is John McGrath the new Aussie oracle?

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

Edwin Almeida

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