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A survey of investment sentiment shows Australians are still concerned about their debt levels, with paying off such debts being the most common destination for left-over funds.
The MLC Quarterly Australian Wealth Sentiment Survey, however, did record an increased willingness to invest in property, shares and other risky asset classes, perhaps signalling a small improvement in consumer sentiment.
“[The] survey shows consumers balance sheets remain very conservative – with a heavy emphasis on deposits and paying off debt,” the report stated.
“That said there has been a marginal increase in risk appetite – with a growing desire to put more into property and slightly less aversion to direct shares.”
The survey, based on the responses of 2062 participants polled between August 9 and August 27, did find differences across different income levels.
Higher income earners favoured superannuation and property investment, while those on lower incomes were more likely to nominate keeping their money as cash.
Regardless of the wealth category, paying down debt was the most popular ‘investment’ choice over the next three months.
People in Western Australia were the most diversified across different asset classes. Men tended to hold more diversified assets than women.
Women were more likely to be concerned about the <a target="_blank" href="https://www.smartcompany.com.au/big-money/057730-big-money-the-reason-our-superannuation-system-doesn-t-work">adequacy of their superannuation savings</a>, with those over 50 being the most concerned.
“With people living longer, having extended retirements and being much more active in their retirement, the harsh reality is most people won’t have enough savings to fund their retirement,” MLC CEO Andrew Hagger said.
“For women this especially rings true, as women retire with 40 per cent less super than men because they take time out for children, are more likely to work part time and typically earn less than men.
“While it’s not surprising to us that women are worried about funding their retirement the survey is a timely reminder to women about how they can start to bridge the gap by adopting some key measures.
Men tended to be most concerned about missing investment opportunities.
 
<hr>
 This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
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mrobin-TVRYiru7si

Paying off debt the most popular investment for all income levels: MLC

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Last week, the US Treasury released <a target="_blank" href="https://www.treasury.gov/initiatives/Documents/POTENTIAL%20MACROECONOMIC%20IMPACT%20OF%20DEBT%20CEILING%20BRINKMANSHIP.pdf" rel="nofollow">a report</a> on the global consequences of a default. It makes for stark reading.
Its conclusion reads:
“In the event that a debt limit impasse were to lead to a default, it could have a catastrophic effect on not just financial markets but also on job creation, consumer spending and economic growth with many private sector analysts believing that it would lead to events of the magnitude of late 2008 or worse, and the result then was a recession more severe than any seen since the Great Depression.
“Considering the experience of countries around that world that have defaulted on their debt, not only might the economic consequences of default be profound, those consequences, including high interest rates, reduced investment, higher debt payments, and slow economic growth, could last for more than a generation.”
America has never defaulted on its debt. It has never had need to. It still has no need to.
But a political impasse means its $16.7 trillion debt ceiling is being used as a bargaining chip by Republicans to ensure the scrapping or delay of legislation passed by Democrats in the previous political cycle.
The American government is <a target="_blank" href="https://www.smartcompany.com.au/economy/057795-what-does-the-united-states-government-shutdown-mean-for-me-and-my-business-a-smartcompany-q-a">already shut down and has been for nine days</a>, as Congress Republicans refuse to put a budget to a vote unless it cuts funding to President Obama’s healthcare reforms.
But a bigger day is coming. On October 17, America is scheduled to breach its debt ceiling.
And while few think it’ll come to that, here’s what would happen if it did:
October 17
America will breach its debt ceiling on October 17, given current spending and taxation flows.
That means the Treasury Department would not be allowed to borrow more money to pay its expenses.
In its report, the Department says it will have $30 billion on hand, which it will use to pay what it can.  
Treasury Secretary Jacob Lew <a target="_blank" href="https://www.cnsnews.com/news/article/susan-jones/treasury-secretary-30-billion-not-responsible-amount-cash-run-government" rel="nofollow">has said</a> there will be $30 billion on hand to use on this date to pay the bills, an amount he said was “not responsible”.
All government spending goes through Treasury, so that $30 billion will be quickly eroded by scheduled payments to government programs like Social Security.
October 30
This is when Treasury says it will run out of money. This is just for domestic spending. A lot of government departments are already shut down, but this means essential services currently exempted – schools and defence contractors, for example – would begin to be affected.
October 31
This is the point of no return. America owes a $6 billion interest payment on this day, and the money to pay it would not be available.
“This is when the proverbial would hit the fan,” AMP Capital’s chief economist Shane Oliver said. “America’s never defaulted in that sense before. Greece came close a few months back, but that didn’t matter. Greece isn’t core to the global financial system.”
If America were to fail to make that repayment, credit rating agencies would have to class it as being in ‘Selective Default’.
And this would ensure the knock-on effects continue.
Global pension funds, central banks, you name it, all invest in American government debt. Many have mandates saying they can only invest in BBB-rated investments and above.
“If America downgrades, many will be forced to sell their US Bonds, and that’ll put upwards pressure on bond yields,” Oliver says. “Interest rates would quickly rise.”
There would be other effects too, some caused by the higher interest rates, and some just by the whole situation. Confidence in America would decline, sending the dollar plunging. Borrowing costs for businesses would escalate rapidly, as many global interest rates are tied to the price of US government debt.
We saw this happen in Europe, Oliver says. “When those countries had debt downgrades, their bond yields went up even before the downgrades occurred. The effect of this was that companies in those countries faced higher borrowing costs.”
Westpac economists Sean Callow and Richard Franulovich <a target="_blank" href="https://wibiq.westpac.com.au/Publications.aspx?PublicationId=5987&amp;customerid=181" rel="nofollow">wrote yesterday</a> that this’ll keep the American dollar low, which could have positive effects for the Australian dollar. However, they’re not expecting a dramatic change from where it is now.
November 15
Two weeks later, another, far larger interest repayment is due. If a deal still hasn’t been reached, America would default on $30 billion in scheduled repayments, throwing markets further into chaos.
After…
After that, it’s not really clear what would happen. While America could miss a few more payments, it’s unlikely to keep doing so indefinitely, Oliver says.
That’s because America still has trillions of dollars in tax coming in. It will breach its debt ceiling because its budget is not currently balanced. But if it were to pass a balanced budget – one that contains enough money to pay its liabilities while meeting its interest repayments by doing a mix of raising taxes or cutting government services, it could continue to make repayments.
However, this would likely choke off the global recovery, and the upheaval alone would likely be catastrophic for global economic growth.
There’ll be long-term consequences for America as well. The country currently enjoys enormous economic advantages by virtue of being the globe’s economic powerhouse, as well as its reputation for having never defaulted on its debt.
America can borrow more cheaply, it has the world’s most important currency, it’s where successful companies the world-over flock to list.
These and other advantages enjoyed by the American economy would be put at risk if the nation defaulted on some of its repayments.
“We’ve seen what happened to Argentina and Russia when they defaulted,” Oliver says. “It took them a long time to return to where they were. That stigma sticks for a while.
“America lost a lot of face through the global financial crisis. It was seen as having a strong, robust, innovative economy, and then the GFC tore holes through that concept.
“The world is increasingly starting to look towards China, and that comes as a difficult time for America. Another failure here could further accentuate perceptions of its economic decline.”
Back to reality
Ultimately, however, few expect these catastrophic events to come to pass.
“I think this is extremely unlikely,” Oliver says.
“If this does happen, it’ll be because of a miscalculation. At the moment, the main risk is that both sides assume the other will blink. Republicans think even if Obama says he won’t negotiate, he will, and Obama assumes the Republicans will cave in. If those assumptions are both wrong, we’ll have a lot to worry about.”
Overnight in America, Republicans proposed a deal where they would raise the debt ceiling for six weeks in order to negotiate a solution. However, President Obama rejected the deal as it would not re-open the government in the meantime.
Australian businesses with operations in America say the chatter is that a deal will be reached by Monday. We hope they’re right.

<hr>
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
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What would happen if the US defaults on its debt?

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Australians have the highest median wealth in the world, with average household wealth having grown a staggering 13% a year since 2000, Credit Suisse’s <a rel="nofollow" href="https://publications.credit-suisse.com/tasks/render/file/index.cfm?fileid=BCDB1364-A105-0560-1332EC9100FF5C83">annual global wealth report</a>, released yesterday, shows.

The world’s done well since 2000. Total global wealth has doubled since 2000, global financial crisis notwithstanding.
This has been driven by emerging markets.
But Australia is unique among the developed nations surveyed by Credit Suisse in also having experienced staggering growth in wealth over the period.
Australia’s average wealth per adult is US$402,600 (AU$426,100), which is the second-highest in the world after Switzerland. Australia’s <a rel="nofollow" href="https://en.wikipedia.org/wiki/Median">median wealth</a>, however, is the highest in the world, at US$219,500 (AU$233,504).
Median wealth is the wealth of the middle wealthiest person in Australia, and so would be higher in a relatively equal society. When it comes to wealth distribution, most (62.6%) Australians had wealth between US$100,000 and US$1 million. Only 6.9% of Australians had a net worth of under $10,000 – a very low proportion by global standards.
Australia’s wealth is heavily skewed towards ‘real assets’ as opposed to financial ones. Australians have the second-highest real asset allocation in the world, behind only Norway, with most of our wealth being bundled up in our houses.
Australia accounts for 3.8% of the world’s richest 1%, despite accounting for only 0.4% of the world’s population.
What’s driving Australia’s extraordinary wealth growth?
Half of it, Credit Suisse writes, has been driven by the appreciation of the Australian dollar. The dollar’s extended parity with the American dollar has made Australian assets relatively more valuable compared to those of other countries when converted into a common currency.
Australia’s Higher Education Contribution Scheme (HECS) system also plays its part: Australia has relatively low student loan debt, which means people start their working lives without being thousands of dollars in the red, as happens in many other parts of the world.
Australia also has relatively low credit-card debt.

<hr>
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
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Australians' median wealth is the highest in the world, new research finds

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After the most public Fed chair nomination battle in recent history, President Obama has finally appointed Janet Yellen to replace Ben Bernanke when he retires from his position atop America’s central bank next year.
Yellen was the frontrunner <a target="_blank" rel="nofollow" href="https://www.crikey.com.au/2013/09/18/fed-chief-form-guide-who-will-replace-ben-bernanke/">ever since Larry Summers pulled his name out of the ring</a> last month, and American markets rose on her appointment. She’s seen as a steady, safe pair of hands who will likely maintain many of the policies enacted under Bernanke.
She’s also the first woman to hold the role, and only the 17th woman to lead a central bank worldwide. Plenty of people say the American Fed is the most important economic decision-maker in the world, so that puts her in a pretty powerful position.
Here are five things you probably didn’t know about Yellen.
1. What’s she been doing lately?
Yellen’s been leading the Federal Reserve in some capacity or other since 2004. In a world with few high-ranking female economists, she’s been chair of the Council of Economic Advisers, an advisory body to the US President, and has been a professor of economics and management at Harvard University.
2. She’s one half of an economic power-couple
Yellen is married to Nobel-prize-winning economist George Akerlof, who got the award in 2001 for his work on a <a rel="nofollow" href="https://en.wikipedia.org/wiki/The_Market_for_Lemons">pretty seminal study</a> showing how markets malfunction when buyers and sellers have different, asymmetric information.
3. Her first contribution to economic theory: It doesn’t pay to pay workers peanuts
Yellen’s doctorate, earned at Yale, developed what she called the “efficiency wage” model of unemployment.
She showed that if people feel underpaid, they work less efficiently and are more likely to quit. This suggests, counter-intuitively, that paying people too little could actually undermine productivity. The employers with the highest productivity, she wrote, seek to improve morale by paying more than the minimum wage they can get away with. This can also mean their staff are less likely to be poached.
This finding came from Yellen’s own experience: when she hired a babysitter for her son, she and her husband decided to purposefully pay more than the going wage, figuring a happier babysitter would provide better care. They got plenty of great applicants, which led to Yellen’s paper.
Yellen’s done a lot more research, a lot of it with her husband.
4. She’s rich
According to her annual financial disclosures, the last of which was in August, she held investments worth at least $4.8 million in 2012.
That includes her stamp collection, which is worth at least $15,000.
Most of Yellen’s investments are in broad-based equity and bond funds.
5. Is she a dove? She hates unemployment and inflation
Many describe Yellen as a monetary ‘dove’ – someone who’s more concerned with boosting employment than combating inflation.
But her defenders say she’s been willing to raise rates to beat unemployment too.
The fact that she has grave concerns about unemployment is indisputable.
“These are not just statistics to me. We know that long-term unemployment is devastating to workers and their families,” she said <a target="_blank" rel="nofollow" href="https://federalreserve.gov/newsevents/speech/yellen20130211a.htm">in a speech</a> to an American unionist gathering in February.
But in other speeches, she’s stressed that the Fed should never repeat the experiences of the late 1960s and 1970s, when it didn’t respond quickly enough to rising inflation. She’s also long argued that the Fed should adopt a 2% inflation target.
Australia’s RBA targets inflation between 2-3% a year, but the American central bank has no explicit target. Instead, it has a ‘desirable’ target range of between 1.7%-2% inflation. Adopting a specific target would give policy makers less leeway to let inflation rise above this band.

<hr>
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
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Five things to know about the world’s most powerful woman, new Fed chair Janet Yellen

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Bank of America Merrill Lynch economist Saul Eslake says the Australian economy is likely to face reduced growth over the next 18 months, as local and international economic risks make it unlikely things will get better soon.
In a wide-ranging interview conducted over an Australian Institute of Company Directors lunch in Melbourne, the high-profile economist had few positive things to say about the coming economic conditions.
In his estimation, these are the four biggest risks to the Australian economy
Gas prices
Nominating this as his number one risk, Eslake said a rapid increase in gas prices could have far more disruptive effect than the carbon tax, and would be delivered with no compensation.
Global demand is why Eslake reckons prices are set to rise.
“In a couple of years, we could face a substantial increase in gas prices as Australia’s gas companies have signed contracts to export all of their gas,” he said.
Gas is expensive to transport and import, so prices could rapidly rise as a result.
This could have a large impact, particularly in New South Wales, where government policy prevents further gas exploration.
Gas is used in electricity generation, food processing and the making of construction materials, Eslake said.
Crazy politicians at home
Eslake took a shot at politics, particularly the Nationals, saying they could hamper the Abbott Government’s ability to undertake productivity-enhancing reforms.
“John Howard was lucky in that when he was prime minister, the National Party was led by Tim Fisher, John Anderson and Mark Vaile, all of whom were by Nationals standards very rational people,” he said.
“They were trade ministers who saw it as part of their job to sell free-market policies to an often sceptical, sometimes hostile constituency.
“That wing of the National Party is all but extinct.
“Now, we’ve got a situation where our country may be run by Barnaby Joyce while Abbott is out of the country. That’s frankly a quite frightening prospect.” Joyce has said he will run for deputy prime minister when current leader Warren Truss retires.
And politicians abroad…
But perhaps this is not as frightening as <a href="https://www.smartcompany.com.au/economy/057795-what-does-the-united-states-government-shutdown-mean-for-me-and-my-business-a-smartcompany-q-a" target="_blank">what is going on in America</a>. The American Government is currently closed after the failure of its legislature to pass a budget bill. On October 17, however, the American government will hit its debt limit, and unless its politicians manage to compromise this time, the American government will default on its debts.
An American government default of even “half a day” would have “catastrophic” consequences, potentially leading to a “cold-war-life” situation in the global economy, Eslake said.
“Until about ten days ago, the conventional wisdom of financial markets was that the Republicans wouldn’t go down this road.
“But to hear the way they’re talking now, well, you have to wonder what planet they’re living on. One can only hope enough Republicans come to their senses.”
The persistently high Australian dollar
The Australian dollar is still too high, and this hinders Australia’s adjustment to the period after the mining investment boom, Eslake said.
“The dollar is just too high to encourage investment outside of mining, and we need that investment in places like New South Wales.”
 

<hr>
This article originally appeared on <a href="https://www.smartcompany.com.au" target="_blank">SmartCompany</a>.
 
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Gas prices and crazy politicians: Saul Eslake's four biggest risks to the Australian economy

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It now appears almost certain that United States government departments will be on shutdown from tomorrow, with Congress Republicans holding firm in their attempts to use a budget bill to defund President Obama’s universal healthcare law.
The American Senate and the House of Representatives must reach agreement by midnight tonight in order to pass the funding necessary for government departments to keep operational.
Already, international markets are viewing a shutdown as a near certainty. The Dow Futures markets opened 101 points lower: traders are pricing in a shutdown.
While an 11th-hour deal is a possibility, it’s made less likely by the fact that any compromise by Republicans from their hard-line position is likely to result in Republican Speaker John Boehner being ousted by Tea Party conservatives in his own party. They are even less likely to compromise than he is.
Any shutdown – even if it only lasts a day or two – will push the Australian dollar higher, says Evan Lucas, a market strategist at IG Markets. .
“There’s a very real possibility of reaching parity by Christmas,” he said. “It’s out of our control.
“Overnight, a government shutdown would mean 800,000 federal government employees don’t get paid. That’s going to drive up unemployment, and it’ll impact confidence in the American economy. That’ll push their currency lower, and the Australian dollar higher.”
This might encourage some shoppers to doing their Christmas shopping on American websites.
Economists expect a government shutdown to shave 1.4% off fourth-quarter economic growth in America. Lucas thinks, because of the lower dollar, that’ll likely have some impact here, too.
“Imagine two or three days of a relatively high Australian dollar,” Lucas says. “That’ll distort fourth-quarter trading heading into Christmas, which is the worst time for it. Retailers need a strong quarter. But if you have confidence falling and a high Australian dollar, it’ll get back to the SME community.”
However Shane Oliver, the chief economist at AMP, said the effect will really depend on how long the shutdown lasts for. "If it's a prolonged shutdown, then that obviously would have global implications for growth, including in Australia.
"At this stage though, it's still early days.
Consumer confidence in Australia is highly tied to events in America, Lucas says. Confidence has been on the mend of late, but concerns over debt ceilings and government shutdowns aren’t going to help.
"We've seen this movie before," Oliver adds. "There have been four threatened shutdowns in the past few years. We've often gone to the brink, only to fall back in at the last minute.
"I expect if there is a shutdown, it'll be a brief one. Politicians don't want to get blamed for the crisis. But then again, US politics is more dysfunctional than it used to be."
If American politicians avert a shutdown, they'll likely to have the discussion again in October. The United States is scheduled to breach its debt ceiling on October 17. This will require further cuts to government spending, and if the two sides don't agree, this could trigger an American default on its deb.
"We're in for a fairly uncertain few weeks," Oliver says. "Even if there's good news late tonight, the markets will worry about the next thing. It'll be a fairly volatile couple of weeks."
"But I think it'll probably be resolved in a way that doesn't cause major harm."
It’s been 17 years since the American government shutdown after failed budget negotiations. In 1995, House Republicans, led by Newt Gingrich, refused to pass a budget over concerns about spending on education, public health and the environment.
For 28 days the federal government shutdown, which turned public opinion against the Republicans and is credited with having helped president Clinton’s re-election campaign a year later.
The American federal government has shut down 17 times since 1976.

<hr>
This article originally appeared on <a target="_parent" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
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Why we should be worried about the US government shutdown: Analyst warns of dollar parity “by Christmas”

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Australia’s superannuation system, the fourth largest in the world, is huge and growing.
The total assets held in superannuation accounts in Australia are currently worth 100% of annual GDP. By 2033, Deloitte reports that will grow to 180% of GDP – an extraordinary savings pool for a country with historically low savings rates.
Accountancy Deloitte has, for the past six years, been conducting an annual overview of the sector, and how it is meeting Australia’s retirement needs.
The latest report, <a rel="nofollow" href="https://www.deloitte.com/assets/Dcom-Australia/Local%20Assets/Documents/Industries/Financial%20services/Deloitte_Dynamics_of_Superannuation_2013_report.pdf">released yesterday</a>, is a fascinating glimpse into how the money that leaves our weekly pay cheque will end up serving us. Here are four gems from Deloitte’s report.
How much you need to retire comfortably
Going on current life expectancy rates, Deloitte has calculated how much super you need to retire with a ‘modest’ or ‘comfortable’ lifestyle.
For men aged 65 today, they need $330,000 in superannuation to fund themselves to the tune of a ‘modest’  $22,654 every year. For women, who generally live slightly longer, they need $360,000 in superannuation assets to pay out the same amount every year.
For those who want a ‘comfortable’ lifestyle in retirement, the figures are nearly double. A man requires $590,000 to pay themselves $41,197 a year, while women need to have $660,000 in superannuation assets for the same.
But most people don’t have anywhere near that
For most Australians nearing retirement, these figures are far, far more than they currently have in their superannuation balances.
According to the Association of Superannuation Funds of Australia, the average male 60-64 year old has $85,000 in superannuation assets. For women, who on average live longer, the disparity is even more stark – most have just $59,000 in superannuation assets.
For those slightly older – the 65-69 year olds, some of whom are already in retirement – the figures are worse. Men in that age group have, on average, $77,000 in superannuation assets while women have $55,000.
For those who have lived only a few decades under the current superannuation regime, there is no way they will have enough in their balances to fund their retirement, Deloitte notes. They will have to rely on the aged pension instead.
As the report’s author, Deloitte partner Wayne Walker, puts it, “despite the $7.6 trillion asset pool we project for 2033, [the potential of superannuation] to generate wealth and prosperity may well bat risk for the average Australian”.
“Many Australians now approaching retirement have only received super for a limited portion of their working lives as our system is still maturing.”
“The concern is that current policy settings, including changes to caps and drawdowns, and the SG 12% increase, will not deliver the lifestyle that the majority of those retiring in the next 20 years are seeking. The reality is that many Australians will need to work longer and where possible contribute more.
“To that end our report projects the possibility of Australians deferring retirement by two and five years respectively. The results are significant.”
 For Gen X, the situation is better
For those who’ve worked most of their life paying money into superannuation, the system is working, but not perfectly.
For a statistically average 30 year old working currently on $60,000 a year (the average income for people of that age), Deloitte estimates they’ll retire with $1.1 million in superannuation.
Given rising inflation, Deloitte thinks this’ll be enough to support themselves until they’re 94, but only on a ‘modest’ retirement. If this worker choses a ‘comfortable’ retirement, the $1.1 million will last them only until they’re 77. To have a comfortable retirement that doesn’t run out, Deloitte thinks that worker will need $1.6 million in superannuation assets if male, or $1.8 million if female.
Superannuation hasn’t recovered from the GFC
The financial crisis, which began in 2009, had a huge impact on Australia’s superannuation assets, eclipsing that of recent economic crises such as the dot-com crash.
Deloitte sees the superannuation asset pool remaining below GFC levels until 2016 (see graph), highlighting how much of a setback it was to the balances of millions of Australians, particularly those about to retire.
<img style="max-width: 540px; max-height: 480px;" width="470" height="355" src="https://www.smartcompany.com.au/images/stories/news/super-picture-540-408.jpg" alt="super-picture-540-408">
Industry funds as popular as SMSF
For much of the past few years, self-managed superannuation funds have <a href="https://www.smartcompany.com.au/finance/057570-asic-warns-smsf-trustees-when-it-comes-to-fraud-you-re-on-your-own">grown strongly in numbers</a>. But in the years to 2033, Deloitte expects industry funds to grow just as fast. Ultimately, most people move from industry funds to SMSFs as they retire.
Over the past year, growth in SMSFs has slowed, Deloitte notes. This reflects the reduction in concessional contribution limits and product innovation in industry and retail funds, which have blunted the advantages of SMSFs.
 
<hr>
 This artcile originally appeared on <a href="https://www.smartcompany.com.au" target="_blank">SmartCompany</a>.
 
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How much superannuation do you need to retire comfortably?

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The Australian Securities and Investments Commission wants to beef up the mandatory disclosures advisers give to people setting up a self-managed super fund, saying in many cases the advice given doesn’t reflect the risks.
In a <a rel="nofollow" href="https://www.asic.gov.au/asic/asic.nsf/byHeadline/13-243MR%20ASIC%20consults%20on%20the%20quality%20of%20SMSF%20advice?opendocument" target="_blank">report released yesterday</a>, the regulator flagged it wants to make SMSF advisers warn clients that if they set up a SMSF, they do not have access to compensation in the event of fraud or theft.
It also wants advisers to give more information about the roles and responsibilities of trustees, the costs of setting up a SMSF, as well as more information about other types of superannuation products that might be more suited to someone’s particular situation.
“When it comes to planning your retirement, establishing an SMSF is a very significant decision,” said ASIC deputy chairman Peter Kell.
“We want to help ensure that the SMSF sector is healthy, and that investors make informed decisions about SMSFs.
“Our recent surveillance of the sector found that advice was not up to a standard we would like.”
The warning comes after the Trio Capital affair, which saw the company collapse in 2009 after directors and executives stole $176 million from SMSF investors in<a href="https://www.smartcompany.com.au/economy/056372-trio-capital-directors-accept-enforceable-undertakings-from-apra-construction-sector-contracts-for-34th-consecutive-month-midday-roundup" target="_blank">what was called “the biggest superannuation fraud in Australian history”</a> by a joint parliamentary committee. More than 6000 investors lost money after placing it into two offshore hedge funds through Trio Capital.
However, Graeme Colley, the director of technical and professional standards at the SMSF Professionals’ Association of Australia, says ASIC’s concerns about poor quality advice may be overblown.
“Last year, ASIC decided to have a look at advice on a very select part of the superannuation industry, which was self-managed super funds with less than $150,000 in them that had received advice on property investments where the property was mortgaged. Looking at those, they concluded that the advice being given wasn’t adequate.
“But it was a very selective sample.
“Unfortunately, ASIC hasn’t provided examples of the poor or inadequate advice it saw.”
ASIC also released a report yesterday by actuaries Rice Warner, which looked at the minimum balances needed before SMSFs become cost-effective relative to other superannuation arrangements.
“Through our consultation we are looking to encourage further discussion and explore the issues relating to SMSF costs with industry and consumer stakeholders,” Kell said. “We think that understanding the costs associated with having an SMSF will help advisers and their clients consider whether a SMSF is a cost-effective option when compared with an APRA-regulated fund.
“ASIC does not want to see an influx of trustees who are ill-equipped to cope with the responsibilities and obligations of running a SMSF.”
The report found that when the maximum level of compliance administration is assumed, SMSFs do not become cost-effective when they have balances of less than $500,000.
However, many trustees do their own administration and compliance, which means the costs of maintaining a SMSF would be lower, Peter Burgess, the head of policy and technical at AMP SMSF said.
“This is in line with what we already knew – you need a reasonable amount in your SMSF for it to be cost-effective.
“But cost isn’t the only consideration here. There are other reasons to manage your own super – you might have specific estate-planning needs, or want to take advantage of specific investment opportunities and so on.
“And while it’s not cost-effective for very low balances, when you have more than $100,000 in your fund, it does depend on how much work you’re doing yourself. It’s hard to get data on this, but a significant amount of trustees do their administration work and so forth themselves. This can make it cost-effective below the $500,000 threshold.”
Colley was also reluctant to accept the higher threshold, saying that in his experience most trustees contribute to the operation of their fund.
“Much of the work with these funds is done by the trustees, so the expense is exaggerated. The Rice Warner report does say that where trustees do contribute, the running cost is around 1.5% of assets. In my view, that’s at the upper end, but probably more realistic.
“We think the $200,000 threshold mentioned by both ASIC and the ATO many years ago is still valid when it comes to cost-effectiveness.”
Recently, ASIC has flagged its <a href="https://www.smartcompany.com.au/superannuation/054815-asic-sounds-warning-bell-on-smsfs-2">concerns about the growth of the self-managed superannuation industry</a>, saying the increasing amount of money being held in SMSFs could prompt newcomers who are far less financially sophisticated to set up their own funds.
The self-managed superannuation industry now holds just under a third of all the money held by Australians in superannuation, having grown around 20% per annum in recent years. There is now $439 billion in assets held by SMSFs. There are over a million SMSF trustees who together manage half a million SMSFs.
Colley does not believe SMSFs are necessarily more risky than investing through a major fund.
“There are two persistent criticisms around SMSFs. One is that trustees don’t know what they’re doing, and the other is that SMSFs are being used by property spruikers to invest in property.
“I was at a major super fund conference earlier this year when one of the speakers got up and said: ‘If you think SMSFs are jokes, who don’t do as well, you need to think again’. They do, roughly, 1% better, on average, than bigger super funds.
“And there’s a huge amount of noise around property, but if you look at the statistics, less than half of 1% of SMSFs invest in property loans.”
Burgess believes there’s still further growth to be had for the industry. “There’s still significant room to grow. There’s a lot of research and statistics out there that shows there are plenty of people with tendencies that could benefit from a self-managed super fund, but who don’t currently have one.”
 
<hr>
 This article was originally publsihed on <a href="https://www.smartcompany.com.au" target="_blank">SmartCompany</a>.
 
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ASIC warns that when it comes to fraud, SMSF trustees are on their own

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James Packer has become the second-largest shareholder of Zillow, plunging $330 million into the Seattle-based real estate website.
A 9.3% stake was bought yesterday by Packer-controlled Cavalane Holdings, which bought 3 million shares for Packer’s Consolidated Press International Holdings yesterday.
It’s <a href="https://www.smartcompany.com.au/information-technology/056658-the-best-australian-dot-com-investments-ever-made">not the first time</a> Packer has ploughed money into online marketplaces.
Packer, along with close friend Lachlan Murdoch, has been arguably the greatest single beneficiary of the Australian dot.com boom.
He was one of the earliest investors of SEEK, having bought a 25% stake in 2003 for $33 million in 2003. When the business listed, Packer’s stake was worth $150 million. By the time he sold out, he had made $440 million from his investment.
He was also an early investor in Carsales.com.au, putting $100 million for a stake in the company that sold for $500 million a few years later.
In buying a stake in Zillow, Packer could be hoping to replicate the success of Murdoch, who invested nearly $10 million into RealEastate.com.au for a 66% stake in the company. That stake went on to be worth $2 billion.
Zillow already has a market capitalisation of $US3.5 billion, and its stock price has increased three-fold since the start of 2013. This suggests Packer isn’t getting in on the ground floor this time.
Last month, Zillow’s founders and executives sold off $205 million worth of stock, leading some to suggest <a href="https://news.morningstar.com/all/ViewNews.aspx?article=/MW/TDJNMW2013082166_univ.xml" rel="nofollow">the stock’s golden run could be ending</a>.
According <a href="https://www.afr.com/p/opinion/caledonia_gives_packer_helping_hand_SRPpjcDD1m1XAnvBW14JvK" rel="nofollow">the Australian Financial Review’s ‘Street Talk’ column</a>, Packer was convinced on the investment by Caledonia’s chief investment officer Will Vicars, who said Zillow had potential to dominate the market in America in the same way that RealEstate.com.au (owned by REA group) has done in Australia.
Compared to Australia, Vicars reportedly argued, American real estate was far less likely to be sold online, suggesting future growth in the sector.
 
<hr>
 This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
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Packer plunges $330 million into American real estate portal Zillow: Has he found the next REA?

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It might have been the most expensive pub ever bought in Brisbane, but it doesn’t look like millionaires John Singleton, Mark Carnegie and Geoff Dixon plan on slowing down the growth of their burgeoning pub empire anytime soon.
Earlier this week, the three bought Brisbane’s Exchange Hotel. The price wasn’t disclosed, but <a rel="nofollow" href="https://www.afr.com/p/business/property/singo_splurge_on_queensland_pub_oD2H90AS74fFKBcZ2PmzGM" target="_blank">newspaper reports</a> peg it at having sold for between $35 million and $40 million. If this is on the mark, it would be the most expensive pub ever purchased in Brisbane.
It’s been <a href="https://www.smartcompany.com.au/finance/047062-20111128-john-singleton-and-geoff-dixon-to-establish-200-million-pub-fund-2" target="_blank">less than two years</a> since Rich Lister and ad man Singleton, investment banker Carnegie and Tourism Australia chief Dixon established the Australian Pub Fund, but it’s already bought 11 pubs.
These include the landmark Marlborough Hotel in Sydney (<a href="https://www.smartcompany.com.au/property/051647-john-singleton-s-pub-group-buys-iconic-sydney-hotel-2" target="_blank">bought for $12 million at auction</a>), the Elephant Arms Hotel in Brisbane and Sydney’s Bristol Arms Hotel.
It might seem like a passion business for the three millionaires, but no doubt they would describe it more as a savvy business investment.
In the years leading up to 2008, pub values soared. Owners took on heavy debt to finance new renovations and pub purchases, but then the market crashed, and prices kept falling. By late 2011,<a href="https://www.smartcompany.com.au/finance/047062-20111128-john-singleton-and-geoff-dixon-to-establish-200-million-pub-fund-2" target="_blank">values were at rock bottom</a>. And so, Singleton and his mates went on a pub crawl.
There was, quite literally, a pub crawl, but given the <a rel="nofollow" href="https://www.dailytelegraph.com.au/singos-15-hour-pub-crawl-that-clinched/story-e6freuy9-1225886895424" target="_blank">15 hours of business meetings the trio took</a>, I’m sure they weren’t too sloshed.
Singleton booked in 15 hours of meetings with pub owners all across Sydney. And he liked what he saw.
The strategy, going by Singleton’s public statements, was simple but ambitious.
He, Carnegie and Dixon would tip in $100 million of their own money, along with some bank debt and other funding, and use it to buy distressed pubs, whose owners were keen to get out.
They would then turn these pubs into balanced cash cows, with food, drinks and poker machines contributing roughly one third of revenue each.
Once the pubs are fully up and running the way they should, the plan is to eventually list the pub fund on the stock market, hopefully netting the three founders of the Australian Pub Fund a handy profit for their trouble.
When news of the pub fund first broke, Singleton said it could buy “three or 33” pubs, depending on whether or not the opportunities were there.
Two years later, it seems there’s been plenty of undervalued real estate on the market. The fund has flagged its intentions to buy more pubs in Brisbane, and it’d be unwise to dismiss further purchases in the founders’ home city of Sydney.
Neither Singleton, Carnegie nor Dixon made their fortunes in hotels or property. But, when you’ve got the money, I guess the opportunity is there for the taking. Cheers to that.
<hr>
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
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No last calls for John Singleton and co's burgeoning pub empire

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Joel Robinson

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

The Walden pairs house-scale living with North Sydney connectivity

The ACT will become the first jurisdiction in Australia to abolish stamp duty for all first home buyers, with no income caps and no property price thresholds from 1 July.

The move, announced as part of the ACT Budget, completes a key election commitment from the Barr Government and removes what Chief Minister Andrew Barr described as one of the biggest barriers to entering the housing market. The reform forms part of the ACT's long-running transition away from transaction taxes and towards a broader-based property tax system.

"This budget marks a major milestone in our long-term tax reform program," Barr said, adding that the government had maintained a sustained focus on removing barriers to home ownership. He said stamp duty had long been one of the largest upfront hurdles facing buyers and that from July, "that barrier is gone" for first home buyers in the Territory.

[smartcode_project:default project_id=139989 project_image_fid=350986]

The changes come alongside a range of measures designed to encourage new housing supply, including support for the delivery of so-called "missing middle" housing such as terraces, townhouses and low-rise multi-unit developments.

The announcement has renewed debate around whether the ACT's approach could provide a blueprint for improving housing affordability nationally.

New research from OurTop10.com.au, conducted by Primara Research, suggests the Territory's decade-long reform agenda has produced outcomes unmatched elsewhere in Australia.

While stamp duty costs have increased by an average 67 per cent nationally over the past decade, the ACT has recorded growth of just 15 per cent, the lowest increase of any jurisdiction.

The Territory has also emerged as one of the strongest performers on housing delivery. Based on population-weighted housing targets, the ACT is sitting less than one per cent behind its target. Victoria is the next closest at seven per cent behind, while the national average sits 25 per cent below target. New South Wales is tracking 39 per cent behind.

The latest reform removes one of the final barriers facing first home buyers in Canberra.

[smartcode_project:default project_id=139989 project_image_fid=359152]

The average Australian home buyer currently pays $61,714 in stamp duty. In the ACT, that figure is $38,399 despite the Territory having the third-highest median house price in the country.

Until now, the ACT's first home buyer concession scheme only applied to purchases up to $1.02 million, around $51,000 below Canberra's median house price of $1.071 million. In practical terms, many first home buyers were unable to access the median-priced home without losing the concession.

From July, those restrictions disappear.

Every first home buyer in the ACT will pay no stamp duty, regardless of income or purchase price.

Canberra remains one of Australia's most expensive housing markets, with dwelling values increasing 82 per cent over the past decade. However, that growth ranks only 11th among Australia's 15 major housing markets, suggesting affordability pressures have been less severe than in many other parts of the country.

Simon Ma, CEO of OurTop10.com.au, said the latest reforms recognise that many first home buyers have simply outgrown thresholds set years ago.

"Many first home buyers aren't just looking for a way onto the ladder, they want a home their family can actually live in," Ma said.

"In a market where the median house price is over a million dollars, a concession scheme that cuts out at $1.02 million was never going to get them there.

"Removing the ceiling entirely means ACT first home buyers can now pursue the home they actually want, rather than limiting themselves to a price point designed for a very different market."

Whether other states follow remains to be seen. But at a time when most jurisdictions are struggling to improve affordability while also increasing housing supply, the ACT has quietly become the national test case for both.

15% stamp duty growth. Just 1% off the national housing target. Zero stamp duty for FHBs. Is the ACT the blueprint for the great Australian dream?

ACT abolishes stamp duty for first home buyers

A rooftop pool and spa overlooking the Brisbane CBD, private dining spaces, expansive landscaped gardens and a residents' lounge are set to crown <a href="https://www.apartments.com.au/new-apartments/callista-on-park-west-end-49-mollison-street-west-end-qld-4101">Callista on Park</a>, the final residential building within Brisbane's West Village precinct.

The rooftop amenity collection has been designed as an extension of the lifestyle already established throughout West Village, providing residents with a series of indoor and outdoor spaces that capitalise on the building's elevated position above West End.

A swimming pool and heated spa form the centrepiece of the rooftop offering, surrounded by landscaped gardens developed through a collaboration between developer Sekisui House and ASPECT Studios. The design incorporates expansive lawn areas surrounded by English garden-inspired planting.

[smartcode_project:default project_id=134800 project_image_fid=370648]

Residents will also have access to two barbecue and outdoor dining areas positioned to take advantage of views across Brisbane's skyline, neighbouring Mollison Park, and the surrounding inner-city landscape.

For larger gatherings, the rooftop includes a private dining room centred around a substantial stone island bench, complete with a full kitchen and a 10-seat dining table set beneath four-metre-high ceilings. The space has been designed to overlook both the rooftop gardens and the Brisbane CBD skyline.

A separate residents' lounge provides an additional indoor retreat connected to the broader rooftop amenity offering, creating another space for residents to work, relax or entertain guests.

[smartcode_project:default project_id=134800 project_image_fid=370647]

The attention to detail extends beyond the rooftop.

Upon arrival, residents will enter through a lobby featuring a bespoke ceiling light installation developed in collaboration between Sekisui House and Alcorn Middleton Architecture. The arrival experience is complemented by private resident mailboxes and carefully considered interior finishes designed to reflect the premium positioning of the building.

[smartcode_project:default project_id=134800 project_image_fid=372541]

The amenity offering forms part of Callista on Park, the final residential release within the decade-long transformation of the former Peters Ice Cream Factory site into West Village, one of Brisbane's most established mixed-use communities.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and being delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a>, Callista represents the most premium residential offering within the masterplanned precinct.

Construction is now entering its final stages, with scaffolding beginning to come down and completion expected in the first quarter of 2027.

Prices for the three-bedroom plus MPR apartments start from just over $2.6 million.

[smartcode_project:default project_id=134800 project_image_fid=351535]

Callista will mark the final opportunity to purchase within West Village, where residents have direct access to more than 35 retail, dining, wellness and medical operators including Harris Farm Markets, Woolworths, Function Well and Goodlife Health Clubs, Metro Arts, and a growing collection of restaurants and cafés.

Located just 800 metres from the Brisbane CBD, the precinct also places residents within walking distance of South Bank, West End's dining scene, riverfront parklands and major public transport connections.

For Sekisui House, which has delivered more than two million homes globally, Callista serves as the concluding piece of the West Village masterplan, bringing together the precinct's heritage character, parkland setting and emphasis on walkability in a final collection of larger-format residences.

[smartcode_project_cta:default project_id=134800]

Rooftop pool, private dining and skyline gardens to crown West Village's final apartment release, Callista on Park

<a href="https://www.apartments.com.au/developments/wahroonga-nsw-2076">Wahroonga</a>’s enduring appeal has long been tied to its balance of bushland, established amenity, and access to some of Sydney’s most respected education and healthcare institutions.

Along Fox Valley Road, that combination is becoming increasingly sought after by buyers looking to remain connected to the Upper North Shore lifestyle while prioritising walkability, wellbeing, and convenience.

Developer Capital Corporation's initial vision of a 62-hectare site on Fox Valley Road was that they could create their own walkable community, bordered by&nbsp;more than 25 hectares of bushland and adjoining Coups Creek.

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="b84917a1-0d75-49b9-888c-ddf7ebfd6692" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/NEW2026_Wahroonga_Walkway.gif?VersionId=Gk3_xi5ssYfalmwuQQ5umQakddceC31j" />

<a href="https://www.apartments.com.au/new-apartments/the-residences-at-wahroonga-estate-169-fox-valley-road-wahroonga-nsw-2076">The Residences at Wahroonga Estate</a> draws directly on the area’s natural landscape, with walking trails and green corridors linking into sections of Lane Cove National Park. The surrounding network of bushwalks, cycling tracks, and reserves reinforces the suburb’s long-standing reputation as one of Sydney’s most nature-oriented residential pockets, while still maintaining close ties to village retail and transport infrastructure.

The address places residents within minutes of Wahroonga and Turramurra villages, where cafés, local grocers, boutiques, and everyday services support a highly localised lifestyle. Popular nearby venues including The Fox Café and Breeze Valley Café provide easy options for morning coffee or casual dining, while longstanding retailers such as IGA Wahroonga Fresh and Novella Fine Books continue to anchor the area’s village character.

&nbsp;

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="c4a950f7-4f05-4370-b360-b106359788e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/2026_Wahroonga_Entry_Gates.gif?VersionId=7n5kh9ymu.azYEYDemJkPgiIAfSw44oj" />

Healthcare access remains one of the defining locational advantages of the estate. Sydney Adventist Hospital, known locally as The San, sits directly adjacent and is one of the largest and most respected private hospitals in New South Wales. The hospital precinct incorporates specialist medical services, radiology, physiotherapy, and outpatient care, contributing to growing buyer demand from downsizers and owner-occupiers seeking long-term convenience and peace of mind.

Research commissioned by Capital Corporation found that health and wellbeing considerations are increasingly influencing downsizing decisions, particularly among buyers wanting to remain within familiar neighbourhoods while accessing medical infrastructure more easily.

Education has also historically underpinned demand across Wahroonga and the broader Upper North Shore. The estate sits close to several of Sydney’s leading private and independent schools, including Knox Grammar, Abbotsleigh, Barker College, Pymble Ladies’ College, Ravenswood School for Girls, and Loreto Normanhurst. Co-educational options including Wahroonga Adventist School and Sydney Adventist School further strengthen the area’s appeal to established families looking for long-term schooling pathways within a tightly held catchment.

[smartcode_project:default project_id=135247 project_image_fid=262183]

Transport connectivity supports the suburb’s liveability without compromising its quieter residential character. Wahroonga and Turramurra train stations provide direct rail access into the Sydney CBD, while the nearby Pacific Highway and M1 motorway strengthen links across the North Shore and broader metropolitan area. At the same time, the heavily treed streetscape and low-density character continue to distinguish the precinct from more urbanised parts of Sydney.

The Residences at Wahroonga Estate forms the first stage of <a href="https://www.apartments.com.au/developers/capital-corporation">Capital Corporation</a>’s broader masterplanned vision for the precinct, delivered alongside the Seventh-day Adventist Church.

[smartcode_project:default project_id=135247 project_image_fid=364995]

Designed by <a href="https://www.apartments.com.au/architects/group-gsa">GroupGSA</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/coco-republic-interior-design">Coco Republic</a>, the development integrates landscaped communal spaces including a pet-friendly Green Spine, resident lounge, BBQ pavilion, and direct bushland access, reinforcing the project’s focus on outdoor connection and community-based living.

Now under construction by Gold Star iCIRT-rated builder <a href="https://www.apartments.com.au/builders/dasco-australia">DASCO</a>, The Residences at Wahroonga Estate will deliver a collection of one, two, and three-bedroom apartments priced from $990,000, with completion anticipated in 2027.

[smartcode_project_cta:default project_id=135247]

Myriam Robin

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