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Watch the video below, and tell us: could you have lived in this?
According to <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>’s Edwin Almeida, who told us that on his inspection of the property he couldn’t be in there for more than six minutes, the tenants did so – for two years! They even paid $410 per week for the pleasure. The rental is in Sydney's Homebush area.
What you see on the ceiling there, is copious amounts of mould. Around the fuse box? Asbestos. Also note that there is no smoke detector.
{qtube vid:=v1dYcpRNkec}
The tenants were asthmatic and their fuses kept blowing out.
The investor had been self-managing and had allowed the property to get into this state, later asking a property manager to take over when he found himself dealing with tenants in arrears and some property damage.
Luckily, the landlord has now renovated, spending up to $15,000, and bringing the rent up to $480 per week. The renovation included fixing the broken fence, fixing the mould and electrical problems, fixing the concrete balcony, a kitchen upgrade and other more cosmetic fixes. The property could now achieve somewhere around $750,000 if it was put on the market, says Almeida, compared to around $600,000 beforehand.
See the gallery below for the fixed up property. These photos were provided as part of the most recent routine inspection report.
{yoogallery src=[images/stories/2013/11/14/sq]}
However, it could have created far more problems; including possible liability for the landlord should a tenant have gotten sick. Unfortunately, not all stories are happy stories.
With <a href="https://www.propertyobserver.com.au/victoria/landlord-sued-%24300000-over-balcony-collapse/2013111466359?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">Property Observer reporting about a landlord being sued $300,000</a> for a balcony collapse due to poor maintenance in a Melbourne rental, it’s now more critical than ever that investors, particularly self-managing ones, and property managers are aware of what is required from them.
Almeida has been providing Property Observer information for the <a href="/news">‘Is your tenant living in squalor?’ series</a>. He says the property above is not the worst he has seen, and that these problems are rife across Sydney.
He details the following:
The misnomer when we discuss the topic of “tenants and landlords” in relation to self-managed properties, that the landlord is somehow exempt from legislative obligations around duty of care, is far from the truth. This is not the case, and burying your head in the sand and thinking you have some sort of exception will only create more issues.
Some, no doubt, have come face to face with the “tenants from hell” as noted in this article but is it always the tenants that are at fault? This is a question that has to be asked and dealt with on a case by case basis.
What of the landlord’s responsibilities in relation to providing a safe living environment under the residential tenancies Act 2010? Regardless of whether the property is self-managed or managed by an agent, there is an obligation. We can blame the tenants all we like, and even jump up and down as much as we want, but the question remains: Why are the issues allowed to become so big in the first place? The law works both ways, it doesn’t just protect tenants as many would like you to believe.
Now back to the issue of safe living standards. Outside of damage caused by tenants, there is a clear obligation for the landlord to provide a safe living environment. Don’t be fooled in thinking that not many cases are recorded or heard around landlords being sued for damages in the area of health. Most of the cases around this are settled outside of the courts before they become too costly. These are costs that overshadow arrears and any other form of malicious damage done to property by the tenant.
The video attached to this article is a short glimpse of a self-managed property. Yes, there was an arrears, some damage to some of the rooms. But frankly, these problems are overshadowed by the fact that the property was riddled with hazards that may cost the landlord tens of thousands of dollars due to possible health and safety issues, if they are sued. Some of these issues included mould, being the most obvious, as well as electrical hazards, sharp objects and falling fences.
Again this is a third call for the governing bodies to be more proactive when it comes to dealing with living standards. We are not living in a third world country and surely we have more than a legislative obligation to providing a safe living environment. We have a strong moral obligation just the same if not more prudent.
I note the financial temperature of the property market is 'hot' and equity levels of properties are increasing on an almost daily basis. So why not put back and re-invest into these properties? Look at the upside: higher rental returns, greater values in terms of equity, and the obvious one: you won’t get sued!
If you don’t want to lose it all because you didn’t fix the issue early enough before someone was injured or suffered a health loss, then ask yourself the question one more time: Is your tenant living in squalor?
 
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a> 
 
 
 
<div id="_mcePaste" class="mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow: hidden;">managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a></div>
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jduke-EHk3XBmHkn

Is your tenant living in squalor? This video is hard to watch

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A tenant of a rental property in Melbourne's Frankston South has successfully sued his landlord for a $300,000 compensation payment after the balustrade of a balcony collapsed, causing injury.

Three people fell five metres to the ground in November 2007, with two dying since the fall - one from complications associated with injuries, the other due to unrelated causes.
The court-approved settlement occurred two days into the County Court Trial.
Landlord D T Wade and Associates was sued by the tenant, who was assisted by lawyer Trang Tran, a senior associate for Maurice Blackburn.
The balcony had not been properly maintained nor routinely inspected, and repair work prior to the client's tenancy was inadequate, said Tran.
"Our client sustained severe injuries to his arm and shoulder that have resulted in multiple hospitalisations and surgery, including a total shoulder replacement. He remains in constant pain and discomfort. This case highlights the need to ensure premises are properly and adequately inspected and kept in good repair to avoid serious injuries and even death to tenants and visitors," she said.
Rotted timber must be replaced, and structures should always be kept in a sound manner - particularly balconies and balustrades - with regular inspections and maintenance as needed.
The landlord, alleged the lawyer, had been told by previous tenants that the timber of the balcony was rotted, causing Tran to claim they had failed in their duty of care.
“This is a wake-up call for land owners, real estate agents and property managers. They should respond quickly and adequately when tenants say there are structural or other problems relating to rental properties,” she said.
In 2011, three teenagers were injured in a balcony collapse also in Frankston South.
The Victorian Building Commission has <a target="_blank" href="/news">this pamphlet available online</a>, which can also be found on the <a target="_blank" href="https://www.frankston.vic.gov.au/Search_Results?keyword=balcony">Frankston City Council website</a>.
"Any balcony has the potential, if not appropriately maintained, to fail at some stage. The legal and financial implications for home owners are enormous," it states.
Research conducted by the Building Commission in 2009 found that 45% of Victorian households have a deck or balcony, of which a third (27% decks, 33% balconies) were built between 1960 and 1990 when a widespread use of inappropriate timber, lack of building approval, inadequate design and poor workmanship were evident.
"Research also tells us that 39 per cent of respondents were not aware that decks and balconies require checks. In the last few years balcony collapses in several states and territories have resulted in a number of injuries and deaths," the pamphlet notes, pointing to a yearly visual inspection as a way that should identify any problems.
It notes that inspections should look for the following risk factors:
• Pooling of water on the balcony surface
• Handrails fixed through the balcony’s top surface
• Tops of solid balustrades and fixings at wall junctions
• Cladding finishing hard against the balcony
• No threshold between the building and the balcony
This may not just be contained to Melbourne, and Victoria, either. Just Think Real Estate's Edwin Almeida recently told Property Observer of his fears that a number of rental properties around Sydney are in less than habitable states, citing mould and electrical problems as two other potential problems that could see tenants getting sick, and a number of investors being sued in the future.
He asked,<a target="_blank" href="/news"> "Is your tenant living in squalor?"</a> in this latest article.
jduke@propertyobserver.com.au
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Landlord sued for $300,000 over balcony collapse

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Called one of the most beautiful properties in Australia, Maitraya is a 222.5 hectare property that has now been listed. It includes its own 900 metre airstrip and heli pad.
Located in Western Australia's Albany and <a target="_blank" href="https://www.mackhall.com.au/for-sale/albany/na/279864.aspx">on the market with Mack Hall Real Estate (updated)</a>, and now asks for "Price on Application", it is a one hour flight from Perth. Property Observer notes that it's apparently looking for offers over $20 million.
{yoogallery src=[images/stories/2013/11/14/alb]}
With features including 500 acres of "elevated pristine oceanfront land" - fronting three ocean beaches, a theatre room, tennis court, gym, indoor pool, spa and sauna... if you're looking on enviously right now, you're not alone.
The 15-bedroom offering (including an eight-bedroom sandstone manor, a five-bedroom fisherman's lodge and a two-bedroom Aviator's Cottage) is certainly not only a home, as it also has a significant business opportunity - there are weddings, events and retreats already booked in for the future.
<img alt="albany-floorplan-nov-14" src="/images/stories/2013/11/14/albany-floorplan-nov-14.gif" height="603" width="470">
With six open fireplaces, a hallway spanning 3.3 metres wide, lakes for fishing, fruit orchards, chickens, a glass conservatory, kayaks at the lakeside gazebo, a boardroom seating 14 people and a library, it seems there’s very little that can’t be done here – be it work, or play. It’s also said to have “aquaculture potential”.
The Maitraya Luxury Private Retreat website <a href="https://maitraya.com/wp-content/uploads/2012/08/BOUNDARIES.pdf" target="_blank">clearly shows the property’s boundaries on this map</a>, and notes Albany is “widely regarded as the premier destination for whale watching”. The estate is also eco-friendly, with the Aviator’s Cottage being completely self-sufficient.
Rates for those holidaying can span up to $700 per room per night, for last minute bookings.
 
{yoogallery src=[images/stories/2013/11/14/fish]} 
The <a href="https://maitraya.com/accommodation/fishermans-lodge/" target="_blank">Fisherman’s Lodge</a> is on a cliff top with 360 degree views over Taylor Inlet. It has access to a boat ramp, an open plan kitchen, living and dining area, a children’s play area with cubby house and swing set, a fully equipped games room and an undercover barbecue. It’s larger, able to cater to about 10 guests.
 
{yoogallery src=[images/stories/2013/11/14/avi]}
The eco-friendly <a href="https://maitraya.com/accommodation/aviators-cottage/" target="_blank">Aviator’s Cottage</a> is a short walk from the coastline, a private swimming lagoon and a surfing beach. Sleeping up to four people, it has a wood fired stove. It’s alongside the air strip.
{qtube vid:=rn-LTSi_N28&amp;feature=youtu.be}
 
{module Which of these on-site properties would you want to stay in?}
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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One of the "most beautiful" holiday resorts listed

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A recent realestateVIEW analysis has found that while we regularly source feedback and reviews for everything from makeup to cars, it's simply not the case when it comes to property.
In fact, investors like to conduct their own research on every aspect available, whether that be finance, the market or the prices, and even spreadsheet out the results they find.
Petra Sprekos, general manager for realestateVIEW.com.au, told Property Observer that this trend crystallises what is beginning to be seen in many industries across the board, with the growth of the internet changing buyer behaviour.
"I think it ties in to what we're seeing as general consumer behaviour across the board. The reason I say this is that I was with a representative from Google yesterday, and they said ... that people visit up to 13 sites during the research stage of searching for property. It could be any, media, three top portals, but it ties in what we saw from our research that they go out looking themselves," Sprekos said.
A survey they conducted, of which 72% owned their own home and 28% were looking to buy in the near future, found commonalities between the buyer groups.
Preparation rituals (overall results):
1. Researching everything possible to inform your purchase decision, from finance and local amenities to house prices
2. Attending open inspections to get a feel for the market
3. Efficiency in communication and research – doing everything online if possible, rather than over the phone in person
4. Ensuring all important information is organised and compiled into a spreadsheet
5. Talking to friends and family to gauge their opinions and experience with buying and/or the market
The first three were found to be common across the breakdowns - First home buyers, Next home buyers (upsizers and downsizers) and investors (both seasoned and first time), listed these three in that order.
However, while number four was common to next home buyers and investors, first home buyers found talking to friends and family to be of slightly more importance.
Sprekos said that this is largely due to where first home buyers are in terms of their life stage.
She also said that, by and large, apps and other software is being made to cater for the spreadsheets and journey planners needed, making recording information about home opens and listings far more easily accessed.
"Buyers are becoming more educated, we're seeing them coming into open homes knowing what other homes have sold for," she said.
"Two years ago, that information wasn't as easily accessible and now it increasingly is."
When looking at the data that is critical to the five different buyer groups (First home buyers, Upsizers, Downsizers, First Time Investors, Seasoned Investors) some slightly different considerations were revealed.
Top 5 pieces of information buyers want access to when researching a property
<table width="202" height="175" border="0"><tbody>
<tr>
<td>OVERALL</td>
</tr>
<tr>
<td>Recent sales</td>
</tr>
<tr>
<td>Recent auction sales</td>
</tr>
<tr>
<td>Crime statistics</td>
</tr>
<tr>
<td>Public transport links</td>
</tr>
<tr>
<td>
Median house prices
</td>
</tr>
</tbody></table>
<table width="431" height="196" border="0"><tbody>
<tr>
<td>RANK</td>
<td>FHBS</td>
<td>UPSIZERS</td>
<td>DOWNSIZERS</td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="top">1</td>
<td valign="top">Legal info</td>
<td valign="top">Recent sales</td>
<td valign="top">Recent sales</td>
<td valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr>
<td>2</td>
<td>Home loans</td>
<td>Recent auction sales</td>
<td>Crime statistics</td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>3</td>
<td>Recent sales</td>
<td>
 Crime statistics
</td>
<td>Median house prices</td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>4</td>
<td>Buying tips/advice </td>
<td>Median house prices</td>
<td>Recent auction sales</td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>5</td>
<td>Crime stats</td>
<td>Public transport links</td>
<td>Legal info</td>
<td> </td>
<td> </td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
</tbody></table>
<table width="405" height="150" border="0"><tbody>
<tr>
<td>RANK</td>
<td>NEW INVESTORS</td>
<td>SEASONED INVESTORS</td>
<td></td>
</tr>
<tr>
<td>1</td>
<td>Recent sales</td>
<td>Recent sales</td>
<td></td>
</tr>
<tr>
<td>2</td>
<td>Recent auction sales</td>
<td>Recent auction sales</td>
<td></td>
</tr>
<tr>
<td>3</td>
<td>
 Public transport links
</td>
<td>
 Public transport links
</td>
<td></td>
</tr>
<tr>
<td>4</td>
<td>Median house prices</td>
<td>Historical sales</td>
<td></td>
</tr>
<tr>
<td>5</td>
<td>Legal info</td>
<td>Median house prices</td>
<td></td>
</tr>
</tbody></table>
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a> 
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How we research when property buying: realestateVIEW.com.au

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The Housing Industry Association's (HIA) new forecast, the National Outlook, is noting an expectation for renovation activity to pick up over 2013/2014 after a 10 year low.
A higher level of new dwelling commencements was also said to be expected, with green shoots being seen for the majority of states and territories, said HIA senior economist, Shane Garrett.
"The improving level of dwelling commencements achieved in 2012/13 will be consolidated this year before moving up a further leg in 2014/15,"said Garrett.
"Meanwhile, renovations investment is expected to grow in a majority of states and territories after falling to a ten year low during 2012/13," he said.
Growth in housing starts was noted to be concentrated in the larger states - particularly New South Wales, Queensland and Western Australia, with renovation growth more broadly based.
"Looking further ahead, we see dwelling commencements lifting above the 170,000 per year mark by 2016/17, matching the highs achieved during the post-GFC stimulus," he said.
"Over this timeframe, renovations activity is also likely to increase steadily, reaching $30.3 billion by 2017/18."
Garrett's expectations are that this is on the back of record low interest rates and strong population growth, and points to the importance of planning reforms and infrastructure delivery to facilitate the needed supply.
"There currently exist many bottlenecks around land supply, infrastructure and the time taken to achieve planning approval for new dwellings," he said.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Renovation activity to increase after 10 year low: HIA

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Last night, Kevin Rudd retired from politics after serving as Prime Minister from 2007 to 2010, and in June to September of 2013.
"Madam Speaker, there comes a time in our lives as parliamentarians when our families finally say enough is enough," he opened his farewell address to parliament yesterday.
<blockquote class="twitter-tweet">
To all my friends on Twitter I wanted to tell you all that I have decided to go on to the next phase of my life.
— Kevin Rudd (@KRuddMP) <a target="_blank" href="https://www.propertyobserver.com.au/https://twitter.com/KRuddMP/statuses/400577700382785536">November 13, 2013</a>
</blockquote>
Over the years, he's had his exciting housing stories, a significant portfolio, as well as a certain influence on property in the country.
Rudd, and wife Therese Rein's, <a target="_blank" href="https://www.propertyobserver.com.au/australian-capital-territory/kevin-rudd-s-yarralumba-sale-highlights-canberra-s-likely-looming-challenges/2013102065810">$2.175 million Yarralumla, Canberra home purchase in 2010</a> (pictured below) and subsequent sale last month had Property Observer readers interested, particularly after it was listed in May and then taken off of the market in July.
{yoogallery src=[images/stories/2013/05/may31rudd]}
With electric gates and double lock up car accommodation, it sold for a reported $2 million.
In 2011 we also saw the couple <a target="_blank" href="https://www.propertyobserver.com.au/queensland/kevin-rudd-and-therese-rein-buy-brisbane-block/2011080951087">buy a Brisbane block near the river</a>, in his electorate at the time with plans to build a modern Queenslander style home, just a short walk from their Norman Park residence, which cost them $384,000 in 1994.
"We want somewhere our adult children can come home to because Brisbane is our home," Rein told the Courier Mail at the time.
They had also spent $3.1 million in late 2010 on a Sunshine Coast retreat through Zinc Property Noosa.
Housing has, for a long time, been a topic asked of, and brought up by, Rudd. We saw him bring in the<a target="_blank" href="/news"> First Home Save Account</a> inititiative and we saw him <a target="_blank" href="https://www.propertyobserver.com.au/developments/government-to-expand-nras-scheme-with-aim-of-50000-homes-by-2015/2013030659767">launch the NRAS scheme in 2008 with aims to expand in 2015</a>.
Property quotes from Kevin Rudd
"It shows that middle and low-income households are experiencing considerable housing stress, and the problem is growing over time" - Kevin Rudd discussing NATSEM results (March 2008).
"The construction sector and private dwellings investment are important generators of economic activity" - Kevin Rudd discussing bringing in increased cash grants for first home buyers (October 2008, Address to Parliament).
“We want to make sure that foreign speculators are not going to force up prices for Australians seeking to buy their own home, buy their first home and we think this is the right course of action" - Kevin Rudd discussing foreign property investment (April 2010, Announcement of new rules).
"Number two - there will be a ban on property developers as candidates; instructing the NSW branch to impose a ban on property developers from standing as Labor Party candidates in the future." - Kevin Rudd discussing potential Labor Part reform (July 2013, Press Conference).
"We need to take a more cautious approach to this in future, without throwing the baby out with the bath water" - Kevin Rudd on foreign investment in buying land (August 2013, people's forum Rooty Hill RSL Club).
"I remember coming into government and asking the question: Where is the housing portfolio, the homelessness portfolio. And there wasn’t one. That’s why we did, we created one," - Kevin Rudd’s Pre-Election Address To The National Press Club (September 2013).
"We’ve implemented the National Rental Affordability scheme so that folks who are finding it difficult to have a home of any description can have one effectively at a subsidised rate and that is, has a target of 50,000 units of affordable accommodation" - Kevin Rudd’s Pre-Election Address To The National Press Club (September 2013).
"And so, having said all that, on this final occasion in the parliament, and as is now officially recorded in the classics for occasions such as this, it really is time for me to zip" - Kevin Rudd's farewell address (November 2013).
jduke@propertyobserver.com.au
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Kevin Rudd zips out of parliament, leaves housing legacy

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Calling for a buyer who is an "Amateur chemist or horticulturalist," a description from Property Now advertises this <a href="https://www.propertynow.com.au/realestate-residential-parrakie-58622.aspx" target="_blank">Price Street, Parrakie, South Australia property</a> on the market for $55,000.
Owner of the property Michael Uspensky from National Rental Inspections told Property Observer that it is, of course, tongue in cheek.
With its nod towards Breaking Bad, Uspensky said he'd bought it about four years ago for around $60,000 and put it to market about six months ago, with the "normal, nice, happy way" of advertising.
It didn't work, so he decided on a different tact.
The photos, which arguably could have made their way onto our<a target="_blank" href="https://www.propertyobserver.com.au/news/the-worst-real-estate-photographs-you-ve-likely-ever-seen/2013110766234"> list of the worst real estate photography</a>, further help the amusement around this piece.
{yoogallery src=[images/stories/2013/11/13/par]}
Uspensky said that it's a $55,000 property, and says the photos are appropriate for the type of property.
"WAITING TIL THE HEAT’S OFF? PREFER TO BE LEFT ALONE? A steal at only $55,000 and 27 kilometres from the nearest cop shop. Seriously, a bargain buy for someone who wants to really get away from it all," the advertisement says.
With a separate garage, the property advertisement recommends a coat of paint and some minor work to fix it up.
"It has got some attention, some of the locals are a little bit concerned," he laughed, noting he was careful not to actually say 'drug-dealer' in the advertisement.
"Everyone pitches to first home buyers and the return on investment but I don't like to do the same thing," said Uspensky.
"A lot of my marketing is very politically incorrect. If I can get a smile out of a person they're listening."
And it seems to be working, so far he has had a number of phone calls.
Will it sell? Time will tell!
<img src="/images/stories/2013/11/14/poll-results-nov-14.gif" width="427" height="129" alt="poll-results-nov-14"><a href="https://mce_host/jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au </a>
 
 
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Advertising your property to drug-dealers? This owner is doing just that

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Sydney-based Rick Otton, the investment promoter and author of 'How to buy a house for a dollar' claimed as one of the Top 10 Most Popular Business Titles for 2013 by Money Magazine and Dymocks, is voluntarily foregoing promotion of his rent-to-buy scheme to WA investors.
This is due to WA Consumer Protection's belief that some of his advertising was misleading, requiring clarification based on statements made on a number of his websites.
Commissioner for Consumer Protection Anne Driscoll said that the seminars Otton and his companies run, which provide education and mentoring at a fee, appear to exaggerate the potential gains.
“These types of seminars highlight to potential investors the benefits of securing their financial future by investing in property, while downgrading the risks. They also appear to exaggerate the potential gains from property and other investments by following the promoter’s programs,” Driscoll said.
“We advise those who attend these seminars to resist the pressure to sign any contracts or pay any fees without first getting proper independent advice from financial advisers and property investment professionals. Consumers should be wary about any ‘get rich quick’ claims being made.”
The Department of Commerce notes that "Richard “Rick” Keith Otton, together with his companies Rick Otton.com Pty Ltd and We Buy Houses Pty Ltd, entered into an enforceable undertaking with Consumer Protection in which he undertook to refrain from conducting his seminars in WA."
This also requires him to refrain from sharing promotional material and promoting his real estate business in the state for a two-year period, as well as publishing information clarifying how the promoted arrangements operate.
Otton and his companies have not admitted any wrongdoing under Australian Consumer Law.
Driscoll said that WA consumers are being misled by the marketing of his scheme with statements including ‘buy a house for one dollar’ and ‘profit without initial investment’, the former being part of his book title also.
The way the scheme works is the following. Otton offers a vendor $1 for an option to buy their property at a future agreed price, while paying rent in the meantime with the seller retaining ownership during this time.
The investor then purchases the option on the condition they pay regular instalments at a rate higher than the rent, with an expectation of securing a loan to exercise the option.
Investors may know of this strategy as vendor financing or rent to buy.
As the scheme cannot really be completed with just $1, or without investment, Driscoll said that this constitutes as misleading.
Under their agreement, the Department of Commerce notes that Otton, his companies and his three websites (howtobuyahouseforadollar.com; rickotton.com, massivepassivecash.com.au) must make the following clear to buyers in WA:
- The purchase price for the property must ultimately be paid before they can own the property
- The one dollar payment to buy the option is only the initial step towards owning the property
- They may not necessarily satisfy a bank’s lending requirements to exercise the option to buy. Payment of instalments over time may not be proof of creditworthiness
- Legal advice should be obtained before being involved in a rent-to-buy property scheme
The following is now present on Otton's websites, which Driscoll said overcomes the concerns:
"The Commissioner for Consumer Protection (WA) has requested that the following clarifications be conveyed to our Western Australian customers:
A) In order to become the owner of real estate, the purchase price for the property ultimately must be paid;
B) This system does not enable you to become the owner of a house for $1 - you can only purchase an option for $1. This system may provide you with an initial step towards owning real estate.
C) The making of instalment payments can be seen by banks as a sign of credit worthiness for future lending, but it is not the only factor considered. You may not necessarily satisfy a bank's lending requirements just by pointing to payments of instalments over time as proof of creditworthiness.
D) It may be unlawful in Western Australia to effect transactions of real estate between other people without holding a real estate agent's licence under the Real Estate and Business Agents Act 1978 (WA). You should obtain legal advice relevant to your circumstances before operating a rent-to-buy business in Western Australia."
At present, Otton is allowed to continue with business as usual in other states and territories. 
A recent DVD in the mail in Melbourne from RickOtton.com came with testimonials including "I made $37,000 With Only $1 Invested!" "We Made $180,000 With No Money Invested!" and similar.
Rick Otton, in a press release <a href="https://vendorfinanceinstitute.com.au/consumer-protection-wa-our-industry-moves-forward/" target="_blank">circulated by the Vendor Finance Institute</a>, said: "Anyone who has read my book, 'How To Buy A House for A Dollar' or attended one of my property events, knows that you literally can't buy a house for one dollar. In order to avoid any confusion for WA consumers I've agreed to clarify statements they feel are misleading."
The institute notes that the industry is going through a transition period.
The <a href="https://www.commerce.wa.gov.au/ConsumerProtection/PDF/EnforceableUndertaki/RickOttonWeBuyHouses.pdf" target="_blank">enforceable undertaking is available online here</a> which, signed on 27th August 2013 by Otton and the Commissioner, states the following:
"The Commissioner for Consumer Protection (western Australia) (Commissioner) has raised concerns with the Otton Parties that the Scheme Representations may be capable of misleading Western Australian consumers, in contravention of the Australian Consumer Law (WA) (ACL), because: G.1 The Otton Scheme provides for the Promoter to pay $1 (or other nominal amount) for an option to purchase a house; G.2. But in order to acquire title to the house, the Promote must exercise the option; G.3. And in order to exervise the option, the Promoter must pay the Promoter's Exercise Price; G.4. hence, the Otton Scheme does not actually enable anyone to become the registered proprietor of a house for $1 (or other nominal amount); and G.5. A buyer may not necessarily satisfy banks' lending requirements merely by pointing to the Buyer Payment over time as a proof of creditworthiness."
Property Observer notes that there are also currently other companies using sales pitches surrounding little to no money down required to promote their products in Western Australia.  It remains to be seen whether the Department of Commerce will treat these in a similar manner.
<a href="https://mce_host/jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au </a> 
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Best-selling property investment author's WA seminars banned: Department of Commerce

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Canberra’s light rail design study Capital Metro consultation period for community input ends in just three days.
The Light Rail Integration Study aims to look at issues around the integration of the light rail corridor from Gungahlin to the City, explained Minister for the Environment and Sustainable Development, Simon Corbell.
"The Light Rail Integration Study is an essential piece of work that will inform the detailed design of the Capital Metro Project," said Corbell.
"It is part of the suite of preliminary design studies that are now being undertaken as a priority for the new Capital Metro Agency."
The first stage of the study was evaluating options for integrating the light rail with the ACTION bus network and current pedestrian and bicycle paths, the different potential kiss and ride, park and ride, and bike and ride locations, and the preferred light rail stop locations.
"The Capital Metro Agency wants to understand what the community thinks about a range of issues, including potential locations for light rail stops, the amenities people would like to see at the stops, and whether people would prefer to park their bicycle at the stops or take them with them on the light rail vehicle," he said.
Consultation closes on November 15.
<blockquote class="twitter-tweet">
Just three days to go to have your say on our Light Rail Integration Study for Canberra. Take a look - <a target="_blank" href="https://t.co/ucEkl6Z3sq">https://t.co/ucEkl6Z3sq</a>
— Time-2-Talk Canberra (@timetotalkcbr) <a target="_blank" href="https://www.propertyobserver.com.au/https://twitter.com/timetotalkcbr/statuses/400043480665182208">November 11, 2013</a>
</blockquote>
 
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Canberra's light rail integration consultation closing soon

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Having been convicted of 26 counts of failing to lodge bonds collected for rentals within the required 14 days, Century 21 Wentworth Real Estate in East Perth has been fined more than $10,000 after previous warnings, and it is apparent that landlords, or self-managing investors, can also face this fine.
As well as being fined $10,400 for failing to lodge security bonds with the Bond Administrator, Wentworth Mutual Investment Management Pty Ltd, trading as Century 21 Wentworth Real Estate, was also required to pay $643 in costs on 8 November 2013 by the Perth Magistrates Court.
The agency had taken between 17 and 53 days to lodge 26 bonds, totalling $39,200, according to lawyers for Consumer Protection.
The bonds had been collected during March and April 2012.
Landlords who self-manage and fail to lodge bonds collected for rentals within the time frame would also face penalties.
Century 21's Chairman Charles Tarbey told Property Observer that they had taken steps to fix the issue.
“I purchased the company in December 2011 and as soon as we were made aware of the issue, the company took immediate steps to rectify it," said Tarbey.
In May 2013, Property Observer reported on a <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/perth-century-21-branch-the-latest-to-be-fined-%248000-for-late-bond-lodgements/2013052761677">Century 21 office in Perth taking an average of three months to lodge 14 security bonds</a>. 
Maida Vale-based Dalefin Holdings Pty Ltd, trading as Century 21 Eastbelle Realty, was fined $8,000 for the late bond lodgements.
Three other companies were at that time on the radar for similar breaches:
<ul>
<li>A real estate agency was fined $15,000 in December 2011 over 51 late lodgements that were 17 to 72 days late</li>
<li>A real estate agency was fined $10,000 in April 2013 over 27 late lodgements that were, on average, 38 days late</li>
<li>A property management company was fined $10,000 earlier this month over 37 late lodgements that were 17 to 46 days late</li>
</ul>
In April this year, Consumer Protection warned real estate agents, property managers and landlords about late bond lodgements after Dalgon Pty Ltd trading as Acton West, now Acton Cottesloe, pleaded guilty on 5 April 2013 to 27 charges of failing to lodge security bond money as soon as practicable.
Commissioner for Consumer Protection Anne Driscoll urged landlords to comply with the law.
“Consumer Protection will take action against agents or landlords who retain these funds for an unreasonable amount of time and fail to comply with the law,” Driscoll said.
Century 21 have been contacted for comment.
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Real estate agency fined more than $10,000

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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