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Savvy investors know that much of the money in property is made on the "way in" to the deal - that is, when you purchase. Buying for a discount also provides you a buffer in future should you be required to sell. Part of doing well is knowing how to negotiate carefully with the real estate agent or vendor so that you can secure yourself the best deal. While auctions can be a different environment, some of these negotiation skills will be useful.
Many experts will explain that it's largely about coming up with your "ending" figure, or the amount you are willing to pay, and then working from a "starting" figure to this point. For instance, if you are buying a property that you want to spend $700,000 on, and the vendor is asking $720,000, it might just be worth offering $680,000 and staggering upwards. Starting low will also ensure that the expectations of the vendor, particularly in a soft market, are brought down to the level where you want them to be.
The tricks to ensuring this will work are the following:
1) Know your market inside out
If you don't know what the property is worth, you run the risk of overpaying from the get go. If you don't know whether the market is hot and demand is going crazy for the type of home you are looking at, you also run the risk of irritating a vendor who will just go to the next buyer - who may be willing to pay more than you. Make sure you negotiate harder in softer markets where buyer interest is at a low, rather than playing hard ball in hot and fast moving areas where you'll be wanting to be just as quick with offers. Be realistic about the market. You may want to have a look at statistics such as vendor discounting and days on market to get an idea of what type of an area you are buying into. For suburb specific data, see our free data section.
2) Know how much you can afford
Don't be offering blind. Have finance pre-approval and a good idea about what you are able to borrow, as well as a clear understanding of your personal capacity to buy. Don't leave yourself in an uncomfortable spot while negotiating due to a lack of preparation. You can also use this to your advantage - by telling the real estate agent that finance will only allow you to borrow up to a certain amount, they are less likely to push you to prices you do not want to go to (remember that you do not have to tell them your true borrowing capacity).
3) Don't put all your cards on the table
If you're willing to go a little higher, but have a feeling the vendor is close to breaking point, then make sure you don't give any further suggestion to the real estate agent that you'd be willing to spend that extra $20,000 or so. You may also want to push the "This is as much as I can possibly spend" line, as well as falling back of the finance suggestion above. A good example of this was from the couple in our recent <a href="https://www.propertyobserver.com.au/auctions/day-in-the-life-of-an-auctioneer/2013120466796" target="_blank">Day In The Life Of an auctioneer</a>, where we see them play pretty hard to not increase their offer by saying "This is our final amount". Note how skilfully the agent coaxes them into revealing their hand, and how he presents the vendors thoughts in a positive way. Befriending silence and not rushing to fill it can be an important skill that you'll want to make the most of as well - do not be coaxed into letting yourself reveal important details.
{qtube vid:=wt6PdCNBPmU&amp;feature=youtu.be}
Look at about 3.17 onwards for when the negotiations begin.
4) Do not assume that price is everything to everyone
You might be able to knock down the price by offering different terms and conditions. Desperate vendors might be willing to take a lower amount provided they can have a longer or shorter settlement or similar. Find out what is important to the vendor - and find out as much about them as possible. Sometimes Googling or doing an RP Data search on the property can be revealing. However, remember that just because the property has been on the market for a long time, it doesn't necessarily mean that the vendor is desperate - sometimes the exact opposite can apply. Get to know your vendor's "cards" as best possible, including whether the property's price has already been discounted and how much they actually want for it. Observer <a href="https://www.propertyobserver.com.au/residential/sweeten-the-deal-by-negotiating-terms-of-purchase/2013121166912" target="_blank">Jo Chivers previously looked at negotiating the Terms of Purchase</a> to secure yourself more access and a better deal. Don't forget that you can offer multiple offers at once with different terms and conditions attached to each - for instance, you may provide their asking price but with strict terms and conditions favourable to you, while offering less for the settlement period that they want.
5) Provide reasons for lower offers
If you think that you can offer less than a property is expected to sell for and get a positive response, you'd be wrong. Sometimes justification is a powerful thing. Use comparables that you think fit your case better than those presented by the agent (which are almost guaranteed to be comparables in the favour of the vendor) and remember to use your handy building and pest inspection - anything that needs to be fixed can arguably come off of the price you pay (for instance, wHeregroup's Todd Hunter has told Property Observer that he uses details such as gardening that needs to be done, taps that need to be fixed and similar to present his case for a discount or to get the property in a better condition when he does purchase).
6) Put time limits on your offers
This can make you seem serious about the offer, and also means they are encouraged to make a decision as soon as possible. 48 hours would be a good starting point. Also add a cheque to the offer - show them that they can easily have the property sold with the simple act of accepting. Similarly, time your offers carefully and use the response from the real estate agent as a guideline on how to act next. If the agent isn't chasing you for the next offer, then you may need to face the consideration that there are potentially other buyers willing to pay more. You might want to play this same approach and ensure you have other properties of interest to you.
7) Have the team behind you to act fast
If another offer falls through and they come to you with a time limit themselves, you'll want to have a solicitor and a team who can turnaround the paperwork as quickly as possible. Cultivate your investment network so you can act as quickly as possible. This will also enable you to put the first offer onto a lot of properties.
Remember that you need to assess the situation carefully - while some buyers like to throw a negative or disinterested light onto the property they want, it can cause real estate agents to assume you are not serious about your intention to buy. They may take the easy route with another buyer. Other advice that is up for debate is contacting the seller yourself, or asking to meet the seller. For confident, competent property buyers this may be a powerful step, however those who are uncertain may be leading themselves astray.
Neil Jenman also shared his <a href="https://www.propertyobserver.com.au/trends/the-10-ways-to-negotiate-a-better-deal-in-property-neil-jenman/2012122058603" target="_blank">top 10 ways to negotiate a better deal</a>.  
What techniques have you used to negotiate the price that you want? What has and hasn't worked in the past?
 
YOU MIGHT ALSO BE INTERESTED IN: This <a href="https://www.propertyobserver.com.au/commercial/negotiating-the-best-deal-in-commercial-property-transactions-chris-lang-commprop/2013060461918" target="_blank">guide on negotiation for a commercial property</a> by Chris Lang 
<a href="mailto:jduke@propertyobserver.com.au" target="_blank"></a><a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
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jduke-EHk3XBmHkn

How to: Negotiate the property price you want

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With 2014 now in full swing, the new tribunal in New South Wales is underway – called ‘NCAT’ or the NSW Civil and Administrative Tribunal.
It has some key differences to its CTTT counterpart, including a difference process for a rehearing. Instead of applying for a rehearing, you head to the Tribunal’s Appeal Panel, notes The Brown Couch – a tenant’s advocacy blog.
Appeals based on questions of law must be heard, while appeals on other grounds will require some convincing of the tribunal – such as a miscarriage of justice or new evidence that wasn’t previously available.
There is now an eight-fold increase fee for appeals (the new rehearings), which sits at $317, despite the Tenants Union asking for the fee to stay at $38 as it was previously. A $78 fee for if you weren’t at Tribunal also applies if you want the decision to be altered or removed.
There is now also a time limit for making an application to NCAT that hasn’t got a specified time limit already – that is, 28 days from when you become entitled to make an application. This would include things such as applying for occupants to be recognized as tenants.
The Brown Couch notes that they “think imposing a 28-day time limit on these applications could lead to some unreasonable or harsh results, so will be recommending to NSW Fair Trading to specify more reasonable time limits. Until then, make sure you when you make one of these applications that you ask the Tribunal for an extension of time if you're outside the 28 days.”
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au </a>
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New South Wales’ new Tribunal, NCAT, has arrived

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Queensland homeowners have been alerted to a new phone scam in Brisbane that is related to a 'solar rebate'.
The scammers lure people in with the attraction of a $2,000 rebate on solar, and then request the homeowners' bank details.
Minister for Energy and Water Supply, Mark McArdle, said that residents in the Aspley area had been receiving calls from scammers claiming to be part of the Queensland Government's "renewable energy team".
"This is a scam. The Queensland Government makes no direct payments to residents under the solar rebate scheme" McArdle said.
"The best way to beat the scammers is for people to not be drawn into a conversation and immediately hang up if they receive a phone call like this."
Anyone who has received a similar call should speak to the Office of Fair Trading on their hotline - 13 74 68.
"The old adage that if something looks too good to be true, it probably is, certainly applies in this case," he said.
"Payments would only be made to a consumer by an electricity retailer – not the Government – if electricity is generated above and beyond a household’s electricity use."
Homeowners should not be providing their bank details to people they do not know or trust, regardless of the institution they claim to be from.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Homeowners beware: Solar rebate phone scam 

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Nominations are open for the New South Wales and Australian Capital Territory urban development industry, so if you know a business who has excellence in property then it may just be time to suggest them.
This 20th year of awards from the Urban Development Institute of Australia (UDIA) NSW looks to showcase companies that push the boundaries in the categories of innovation, affordability, sustainability and premium-quality construction.
UDIA NSW chief executive Stephen Albin said thast last year projects such as Crown Group's Top Ryde City Living, and the Gowings and State Theatre Restoration took out awards.
“This year, judging by the quality of projects that are coming online in areas such as Western Sydney, Canberra, Newcastle and the Illawarra, we expect to attract an interesting and diverse range on candidates that showcase best-practice in their respective fields," he said.
Currently there are 13 categories open, including concept design, government leadership for urban development, design and innovation, masterplanned development, sustainable development and affordable development.
Developers, councils, government agencies, consultants, contractors and markets are <a target="_blank" href="/news">encouraged to enter by March 14</a>.
jduke@propertyobserver.com.au
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Property awards for Excellence open with UDIA

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With variations across the globe in the way property is measured it can be undoubtedly difficult for anyone trying to get a grip on the property market.
However, difficulties caused by these variations are expected to become a “thing of the past” as a new global standard will be implemented later in 2014.
Research from Jones Lang LaSalle has found that, depending on the method used, a property’s floor area’s measurement can see results deviating by up to 24%.
The International Property Standards Coalition, who have proposed the new standard, are looking to ensure consistency in the measuring of property assets.
Currently, in parts of the Middle East the floor measurements can also include “hypothetical areas”, while in India floor measurements can include off-site carparks and common areas, and over in the United States some property is measured by air conditioned space used.
“The international standard is the first of its kind and will provide a common language for measuring offices across international markets, creating certainty for real estate professionals including investors, lenders, agents, valuers and occupiers,” said Kaye Herald, managing director for the Royal Institution of Chartered Surveyors Asia Pacific.
“It is about creating a more transparent marketplace, enhancing public trust, increasing consistency in the reporting of property size, and building investor confidence.”
“A property can be listed as 5,000 square feet, but unless it is clear how that measurement was arrived at, it is difficult to know for sure that you are comparing apples with apples,” Herald said.
“Under one standard a property might be 5,000 square feet and under another 3,500 square feet. The fact is you can never be 100 per cent sure what you are going to get.”
A public consultation on the new standard was launched today, which marks the start of a three month consultation period closing in April, which calls for sector practitioners and stakeholders to comment.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Global standards to measure commercial property to be introduced

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In December of 2012, Property Observer went to the experts to ask for their predictions for 2013. While crystal ball gazing is notoriously difficult, especially when property is concerned, some insights were remarkably accurate. Others, however, were not so much.
See the <a target="_blank" href="https://www.propertyobserver.com.au/news/the-10-insights-into-the-2013-property-market-what-why-when-and-where-to-look/2012121658500/Page-1">original prediction article here</a>.   
1. Sydney to do better, but best NSW prospects still in the regions: Terry Ryder
PREDICTION: 
 Hotspotting.com.au’s Terry Ryder expects the Sydney market to do better in 2013 but still tips a number of NSW regional towns to outperform the capital city. Regional towns, he says, are more affordable and have provided much better capital growth over recent years. He expects the following regional market to continue to outperform Sydney in 2013: Dubbo, Tamworth, Gunnedah, Mudgee, Orange, Goulburn, Albury and Wagga Wagga. For more on capital city vs regional prospects in 2013 watch the full webinar with Terry Ryder.
INCORRECT: 
With Sydney's phenomenal growth last year, it appears the regional areas did not keep pace. See prediction six for a summary of the growth experienced in the year to November 2013, as recorded by RP Data.
Yearly median growth (RP Data): <a target="_blank" href="/news">Dubbo</a>: 3.7% <a target="_blank" href="/news">Gunnedah</a>: 5.1% <a target="_blank" href="/news">Mudgee</a>: 7.9% <a target="_blank" href="/news">Orange</a>: 1.5% <a target="_blank" href="/news">Goulburn</a>: 6.2% <a target="_blank" href="/news">Albury</a>: -4.2% <a target="_blank" href="/news">Wagga Wagga</a>: Data unavailable <a target="_parent" href="/news">Tamworth</a>: Data unavailable  
2. Luxury market to recover first: Janusz Hooker
 PREDICTION:
LJ Hooker deputy chairman Janusz Hooker says a recovery in the housing market is “inevitable”, with the luxury high-end market expected to be the first to enjoy price recovery having been hit the hardest by the downturn. His advice to property investors is to “look for places that went down the most and also watch the big cities – when they move it fans out to the regions usually within six to 12 months”.
CORRECT:
The prestige market above $1.5 million to mid-year was one of the strongest earlier performers, with properties in the most expensive suburbs seeing 4.8% growth to June 2013, compared to slightly softer results in the middle and lower brackets. This may have been partly due to the surge of <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/chinese-buyer-surge-in-mosman-prestige-sales/2013020159086">Chinese buyers in suburbs such as Mosma</a>n. However, properties in excess of $3 million were far slower to perform. The bulk of the growth happened in the latter half of 2013, which then saw the middle market outstripping prestige sales. 
 
3. Sydney sub-$750,000 market the strongest as Australia’s “BHP of real estate”: John McGrath
PREDICTION:
McGrath Estate Agents CEO John McGrath says recent weekend clearance rates indicate clearly that the under-$750,000 market is still strongest in Sydney, with McGrath averaging a 69% clearance rate in this bracket, followed by 65% for the $750,000 to $1.5 million sector. "Sydney remains the BHP of Australian real estate – the big blue-chip market that generally outperforms the rest," says McGrath, who predicts a 2% to 5% price rise in the under-$750,000 market and a 5 to 8% rise in the $750,000 to $1.5 million bracket.
UNDERSTATES GROWTH:
Sydney far outperformed the expectations from John McGrath, and he was incorrect that the higher bracket would outperform, with the sub-$750,000 market appearing to just outstrip the prestige sales. RP Data's Cameron Kusher noted that the middle market saw 15.3% increases, while prestige sales clocked in at around 15%.
 
4. Consider the outer suburbs of Adelaide and Brisbane: Margaret Lomas
PREDICTION:
Destiny Financial’s Margaret Lomas says property investors are starting to take a look at the outer suburbs of Adelaide and Brisbane, with activity picking up towards the end of 2012. These were areas where house prices started to move up a little bit in contrast to the rest of the market, which mostly stagnated, she told realestatetalk.com.au.
Note: <a target="_blank" href="https://www.propertyobserver.com.au/south-australia/john-symond-suggests-adelaide-s-outer-northern-suburbs-are-investment-hotspots/2013032660086">John </a><a target="_blank" href="https://www.propertyobserver.com.au/south-australia/john-symond-suggests-adelaide-s-outer-northern-suburbs-are-investment-hotspots/2013032660086">Symond also tipped the some outer Adelaide suburbs for growth</a>, looking to the North in March 2013. 
PARTIALLY INCORRECT:
Australian Property Monitors' Andrew Wilson told Property Observer that where the Adelaide suburbs did well overall this year, despite economic difficulties, Brisbane itself was actually held back by its outer suburbs in its overall growth , being the "problem child" of the city. The outlook for Brisbane's suburbs does, however, look better for 2014.
To see how six other experts fared, see over page
 
 
 
<hr class="system-pagebreak">
  
 
5. Rent vs buy equation to sway more first-home buyers and renters into the market: Tim Gurner
PREDICTION:
Tim Gurner, director at Melbourne-based property development company Urban Inc, says the buy versus rent equation will sway strongly towards buying in 2013, “so we’re expecting to see a lot of first home buyers and renters return to the market”. Urban Inc is currently developing Alessi in West Melbourne. INCORRECT:
Using Australian Bureau of Statistics data, and comparing first home buyer 2012 and 2013 statistics (January to October statistics, due to November and December currently being unreleased for 2013) we see a marked decline. See the data for yourself <a target="_blank" href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/5609.0Oct%202013?OpenDocument">via these excel spreadsheets available online</a>. The average number of dwellings financed in a month across these months in 2012 was 9,228. In 2013 this dropped to 7,494. Percentage wise of the entire market this was also a marked decrease, from 18.8% in 2012 to 12.9% in 2013.  
6. Perth and Sydney to perform, Brisbane held back by unemployment: Aaron Maskrey
PREDICTION:
Aaron Maskrey, research director at PRDnationwide, expects Sydney to experience steady, but modest growth of around 5% throughout the upcoming year. He says Perth should also be a stronger performer in 2013, with a combination of mining investment and low interest rates helping to shift this market off the bottom of its property cycle. “A conservative estimate of price growth during 2013 would see Perth increase in value by 2%, but such is the swing with this resource affected region, greater market sentiment could give rise to 6% growth." Maskrey says Brisbane finds itself in a similar situation to Perth and would have been included with Perth’s forecasted growth but for the sharp rise in unemployment. “With a rising rate of jobless residents, any potential growth that was initially forecasted for Brisbane is now expected to be temporarily suppressed in early 2013,” he says.
UNDERSTATES GROWTH SIGNIFICANTLY: 
The below table, the latest release to November 2013, provides a fairly good account of the comparable growth in each city. Despite understating growth, he was correct that Perth and Sydney would perform, with Brisbane somewhat suppressed.
<img src="/images/stories/2014/01/13/RPDATA.png" alt="RPDATA" height="206" width="560"> Source: RP Data  
7. A more generic uplift in property prices for Sydney then Melbourne: Matthew Chun
PREDICTION:
Becton CEO Matthew Chun is more bullish on the Sydney property market than Melbourne in 2013. Chun tells Property Observer he expects “meaningful price growth” in Sydney of 4% to 8% with modest growth of 2% to 4% in Melbourne. Chun also expects a more generic recovery across the Sydney market, while Melbourne will be restricted to growth from unique, well-located properties within 10 kilometres of the CBD. “Outside of this zone growth will be flat, and I also don’t expect much growth in the Melbourne apartment market,” he says. Becton's two key projects are Divercity in Waterloo and Newleaf in Bonny Rigg in the west of Sydney.
PARTIALLY CORRECT:
Melbourne's growth figure across 2013 was 6%, according to RP Data, while they put Sydney's growth at 12.5%, higher than Chun's more modest prediction. <a href="/news">Melbourne's inner city unit marke</a>t was 5.2% up in latest statistics. Overall, however, he was right to be more bullish on the Sydney market.    
8. West Melbourne land market has better prospects: Jeff Garvey, director of ID Land
PREDICTION:
Jeff Garvey, director of Melbourne residential developer ID Land, says the outer west growth corridor, which includes suburbs like Truganina and Plumpton, have good prospects, in contrast to the perception that the Melbourne land market is struggling. Garvey says the area is supported by “really big infrastructure projects” including the $5 billion regional rail link running from Southern Cross to Werribee and due for completion in 2016. In addition, Truganina is only 20 kilometres from the Melbourne CBD. INCORRECT: (however much of the intended growth hangs on the 2016 completions.)
Yearly median growth (RP Data): <a href="/news">Truganina</a>: 3.8% <a href="/news">Plumpton</a>: Data Unavailable RP Data's 2013 December roundup explained the following: "House values in Melbourne still remain below their previous nominal peak despite a 6% rise in house values this year."  
9. Don’t expect or wish for the cash rate to reach 2%: Joe Sirianni
 PREDICTION:
Joe Sirianni, executive director at mortgage brokers Smartline, anticipates only one more rate cut in 2013 and says were the cash rate to fall to 2% it would undermine confidence, which he says is the key issue. “We’re living in changing times and the use of interest rate cuts as a lever to stimulate the economy just isn’t having the same impact as it has in the past. Therefore, I think the RBA will realise that there is little point in going much lower with the cash rate.  A cash rate of 2% would be unprecedented in Australia, and I think there’s a danger that if rates were cut to this level, it would un-nerve most people and exasperate the already low levels of confidence,” says Sirianni.
CORRECT:
We finished the year at 2.5%, still a record low.  
10. A modest recovery in new housing in NSW in 2013 with better buying conditions: Craig D'Costa
PREDICTION:
Craig D'Costa, senior development manager of Sekisui House, a co-developer of the $2 billion Central Park project in Sydney, says a recovery in the housing industry will be a key factor in boosting the NSW economy. "The housing industry is forecasting NSW to achieve a modest increase in housing starts for 2013, this comes of the back of government led stimulus for new home buyers with substantial saving in stamp duty and grants. Overall, improved affordability and better buying conditions will underpin home buying activity next year in 2013, with upgraders and investors also likely be very active sectors," he says.
CORRECT:
The Australian Bureau of Statistics' <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/8731.0Nov%202013?OpenDocument" target="_blank">latest building approvals data</a> saw the number of dwellings approved increase in November 2013 in trend terms. This number had risen for the previous 13 months, with every state seeing increases apart from the ACT with a 9% decrease in November. Looking specifically at the number of houses in New South Wales in the private sector, there was also a marked uptick.
jduke@propertyobserver.com.au
 
 
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How 2013's predictions held up: We put them to the test

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Professional women often earn good money and make their own decisions about spending, saving, investing and protecting their wealth. But some marry, or enter a defacto relationship, and relinquish some financial control along the way.
This loss of control usually creeps up, insidiously and unintentionally, over many years. Then one day – if they're lucky -- they wake up and realise they've become dependent on their partner managing the family funds. Even where a woman is earning as much or more than her partner, it can happen. It's one thing to earn money; it's another thing entirely to manage it effectively.
By not staying actively involved with what happens to your money, over time you place yourself in an incredibly vulnerable position.
If disaster strikes -- your partner is killed or becomes disabled and is unable to make decisions -- or if you decide to divorce, you will have no option but to take the reins once more, and it will make the world of difference if you have the know-how to do so easily.
Nobody likes to admit that they've taken a back seat on the family finances, especially well-educated and highly intelligent women – but this sort of thing happens to the best of us, as author of the best-seller Money, A Memoir: Women, Emotions, and Cash Liz Perle discovered.
She moved to Singapore with her husband and their four-year-old son, where her husband announced, shortly after they arrived, that he longer wanted to be married. Despite having forged a successful career as a publisher and editor, Perle found that at some point she had handed over financial control to her husband.
With very little idea on how to manage money and control her financial future, she learned the hard way that because she had not kept herself informed on the money front, starting over was incredibly scary and more stressful than she ever could have imagined.
For all Women's Agenda readers, here's a short quiz to assess if you have a handle on your finances:
<ul>
<li>Do you know exactly how much money you owe and to whom?</li>
<li>Do you know when you're going to pay off this debt and what the repayment plan is?</li>
<li>Do you know how much you have in your superannuation?</li>
<li>Do you know how much you need to save by retirement age to live the lifestyle you would like to?</li>
<li>Do you know how your superannuation is invested? You may need to think back to the box you ticked when you set up your account.</li>
<li>Do you know what insurances you have, with whom and how much you're insured for?</li>
<li>Do you take active involvement in reviewing your insurances every year?</li>
<li>Do you have full access to the family bank accounts and mortgages?</li>
<li>Do you know how all your family money is invested – what money is in shares, property and other investments?</li>
<li>Do you know where you'd like to be financially in the next year, the next five years, ten years and twenty years?</li>
<li>Do you have a plan to get there?</li>
</ul>
If you answered no to more than three of these questions, it might be wise to take the time to understand your own finances.
The famous poem Desiderata advises us to, "Keep interested in your own career, however humble; it is a real possession in the changing fortunes of time."
I would add to this: don't just keep interested in your career and in earning the money, also keep interested in how you manage those hard-earned dollars.
The bottom line is that women need to be vigilant in taking an active interest in their finances and not defer to their partner – no matter how strong the relationship, because we just never know what tomorrow holds.
Remember, it's your life so if you're uncertain or feel that you lack knowledge, then take responsibility and educate yourself – read up, take a course, speak to a professional.
Above all, insist on being equally involved with all money matters in your relationship -- don't ever rest on your laurels and let your partner do it all.
*Claire Esmond is an Authorised Representative of AMP Financial Planning Pty Ltd, ABN 89 051 208 327, AFS Licence No. 232706.
Any advice given is general only and has not taken into account your objectives, financial situation or needs. Because of this, before acting on any advice, you should consult a financial planner to consider how appropriate the advice is to your objectives, financial situation and needs.
This article was originally published on <a target="_blank" href="https://www.womensagenda.com.au">Women's Agenda.</a> 
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Marry, move in -– but never give up financial independence

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If you won the lotto tomorrow, you’d be rich. But in all likelihood, not for long.
Despite the life-changing potential of anyone suddenly being handed a few million to play around with, few of those to make their fortune through a lightning-flash of good luck are able to grow, replicate, or hold on to their riches.
According to the National Endowment for Financial Education in America, 70% of Americans who experience a sudden financial windfall lose the money within a few years.
Most lottery winners keep their windfall secret (this is especially the case in Australia), but plenty of those who do tell their story are living tragic lives a few years after their win, often facing bankruptcy, broken marriages, endless lawsuits and, in some instances, substance addition and mental illness.
Sometimes, they’re murdered.
Chicago cleaner Urooj Khan, who won $1 million in scratch lotto last year, died of cyanide poison a day later. The case is still being investigated.
Ibi Roncailoli, an Ontario housewife, was poisoned by her husband after he discovered she’d given $2 million of her fortune to a secret child she had with another man. Her husband was <a href="https://www.thestar.com/news/2008/02/17/doctor_guilty_in_wifes_death">later found guilty of manslaughter</a>.
Far more Lotto winners <a href="https://au.businessinsider.com/17-lottery-winners-who-blew-it-all-2013-5?op=1#ibi-roncaioli-was-murdered-by-her-husband-after-she-squandered-her-winnings-6">squander their riches</a>, and find themselves with huge debts to pay a few years later.
This isn’t the only reason we don’t see lotto winners on the Rich List. For one thing, they’re just not that rich to begin with.
In Australia, the largest lotto win ever wouldn’t even rank on the rich list. In 2009, a Queensland couple and an Adelaide man both won $53 million after splitting a $106 million Oz Lotto draw. This remains the largest ever lotto win in Australia (a $40 million win last year coming close).
But to rank among the 200 richest Australians, you need at least a $235 million fortune.
Other rich lists have lower thresholds.
The Yong Rich, for example, which ranks the wealthiest people under 40, cuts off at $18 million, while the Rich Women list cuts off at $30 million.
This means, while the Rich 200 list is out of reach of most lottery winners, plenty of the other lists are not.
Larger fortunes have been won overseas.
Last Thursday, a British citizen won £81million ($127 million) in the EuroMillions jackpot, making them the <a href="https://www.thesun.co.uk/sol/homepage/news/4948292/81MILLION-EuroMillions-jackpot-claimed-by-UK-Lotto-winner">908th richest person in the UK</a>, if we go on the 2012 Sunday Times Rich List. The winner is only the 6th largest winner in the famously massive lottery – the record is held by Adrian and Gillian Bayford from Suffolk, who won £162.87 ($256 million) last year.
Yesterday’s winner has chosen to stay anonymous, at least for now. It’s a wise decision.
For the rest of us, these stories serve as cautionary tales. It’s far better (and safer) to build wealth slowly than to land it all at once.


<hr>
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au">Smart Company</a>.
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Why few lotto winners end up on the world’s rich lists

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The sales of new homes in November 2013 recorded healthy growth, according to the Housing Industry Association's (HIA) chief economist, Harley Dale.
With new home sales up 7.5% in November, according to the HIA New Home Sales Report, it is the fastest monthly growth rate since January 2010.
“The upward momentum evident in new home sales since the closing stages of 2012 continued late last year – that is a good sign for residential construction activity in 2014," said Dale.
“Both new home sales and private sector building approvals increased strongly over the three months to November last year, with detached housing growing by around 4% according to both leading indicators, for example,” he said.
The first milestone of 2014 for new home sales will be for sales to reach the volumes experienced in the first half of 2011.
“Over the three months to November 2013 the volume of detached house sales increased in all five surveyed states, while the downward trend evident in multi-unit sales has now reversed due to strong monthly outcomes in both September and November of last year,” he said. <a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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New home sales post record growth since 2010: HIA

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A decision to allow director of Westpoint Realty Pty Ltd, Norman Phillip Carey, to renew a certificate allowing him to practice as a real estate agent has been overturned by the commissioner for consumer protection.
The director of Westpoint, currently in liquidation, Carey faced a unanimous judgement by the Court of Appeal yesterday morning, January 9, that set aside a previous State Administrative Tribunal ruling that had allowed him not to lose his triennial certificate.
Western Australian law required real estate agents to hold a current triennial certificate, renewed every three years, so this decision means that Carey cannot operate as a real estate agent.
In February 2011, Carey was found guilty at the Perth Magistrates Court on five charges of breaching the Fair Trading Act. This was in relation to the sale of a residential property development in 2005 in Riverdale.
Purchasers had been misled by the company, through its agents, around units in the Regent Apartments. They had been falsley informed that there were indefinite delays due to planning issues, which caused contracts of sale to be terminated.
The units had then been re-sold at a higher price shortly thereafter.
The Supreme Court dismissed an appeal by Mr Carey in January 2012 and the Court of Appeal dismissed a second appeal in August 2013; upholding the Magistrates Court decision and conviction.
In February 2012, the commissioner had initially decided not to renew Carey's certificate. This was on the grounds that he was not a "fit and proper person and of good character and repute" the Department of Commerce notes.
In December 2012, the State Administrative Tribunal reversed this decision and granted him the certificate.
Now, in January 2013, the initial decision has been reinstated under the Court of Appeal. He cannot operate in Western Australia.
In July 2011, Property Observer reported about former Westpoint directors <a target="_blank" href="https://www.propertyobserver.com.au/news/asic-brings-charges-against-wespoint-duo/2011070150678">Carey and Graeme Rundle, of Perth, being taken to court on two criminal charges each brought by ASIC</a> regarding Warnbro Fair Shopping Centre and adjoining land as well as a transfer of the option to purchase WFSC to Bowesco Pty Ltd, a Carey family trustee company.
The charges were then dropped by ASIC after an important document was located. In May of 2013, Carey had <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/westpoint-founder-norm-carey-to-sue-asic-after-charges-dropped-westpoint/2013052061436">said he would sue ASIC over the charges</a> and seek payment of damages.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Westpoint’s Norman Carey's real estate agent certificate not to be reinstated

For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

Jennifer Duke

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