Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Joel Robinson

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

Luxury apartment buyers have long prioritised design, space and finishes, but increasingly they're placing equal importance on something less tangible: how easily they can live without relying on a car.

At <a>Richmond Square</a>, <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> believes that convenience begins beyond the apartment itself, with the mixed-use precinct earning a near-perfect Walk Score of 99.

The development has been planned around the idea that some of the most valuable amenities aren't contained within a building, they're the restaurants, cafés, parks, transport connections and daily conveniences that can all be reached on foot.

Located just behind Swan Street and Church Street, <a href="https://www.apartments.com.au/new-apartments/richmond-square-1-wiltshire-street-richmond-vic-3121">Richmond Square</a> places residents within one of Melbo​u​rne's most established lifestyle precincts while offering a quieter residential setting removed from the busiest thoroughfares. East Richmond Station is moments away, trams run along both Swan and Church Streets, and the MCG, Melb​​ourne Park, Yarra River trails and the CBD are all within walking distance. At the same time, the precinct itself will introduce a curated mix of dining, retail, hospitality and wellness offerings, creating a destination that extends well beyond its residential buildings.

[smartcode_project:default project_id=13181 project_image_fid=348530]

For Fortis, that combination of location and scale was what made the site unique.

"<a href="https://www.apartments.com.au/developments/richmond-vic-3121">Richmond</a> is one of Melb​o​urne's most established and distinctive inner-city neighbourhoods, with a rare combination of dining, culture, recreation, public transport and proximity to the CBD," the developer said.

"The opportunity at Wiltshire Street was particularly compelling because the site sits slightly removed from the activity of Swan and Church Streets while remaining only moments from everything that makes the area desirable."

Rather than developing a standalone apartment building, Fortis consolidated 15 individual properties to create one of the larger development parcels assembled on Mel​b​ourne's city fringe in recent years. That allowed the team to deliver a genuine mixed-use precinct comprising 107 residences across Wiltshire House and Carmine House, premium office space, hospitality venues, retail, wellness offerings and a future 57-room hotel.

"The scale of the site allowed Fortis to think beyond a standalone apartment building," the developer said.

"Richmond Square could be planned as a complete lifestyle precinct, bringing homes, workplaces, dining, retail, hospitality and wellness together around a series of activated public spaces. The aim was to create a destination that feels connected to Richmond rather than separate from it."

[smartcode_project:default project_id=13181 project_image_fid=348533]

The emphasis on walkability has also resonated with buyers.

Interest has been strongest from established owner-occupiers, particularly downsizers from Richmond and Melb​ourne's inner east who want to remain close to familiar restaurants, workplaces, family and social networks while moving into a more secure, lower-maintenance home. The project is also attracting Mornington Peninsula and interstate buyers seeking a Melb​ourne residence they can lock up and leave between visits.

Many are looking for generous living spaces, room to entertain, quality finishes and confidence in the project team, but location remains one of the biggest deciding factors.

"For many buyers, Richmond Square provides a way to simplify the practical side of home ownership without reducing the quality of their lifestyle," the sales team said.

"Location is also a major driver of interest. Buyers can remain connected to the CBD, major sporting events, the arts centres, local restaurants, cafes and bars and their family while living in a private and secure residence that is easy to lock up and leave for weekends or longer periods away."

[smartcode_project:default project_id=13181 project_image_fid=348549]

The residences themselves have been designed with that buyer in mind. Award-winning architecture practice SJB and interior designers Hecker Guthrie have created spacious two and three-bedroom apartments and penthouses that prioritise generous living areas, natural light, bespoke joinery and private terraces. Above, a rooftop sanctuary by Acre includes landscaped lawns, bookable dining rooms, barbecue facilities, wellness spaces and panoramic views across the CBD, the MCG and Port Phillip Bay.

Fortis believes Richmond Square reflects a broader evolution in apartment living, where the surrounding neighbourhood becomes just as important as the residence itself.

"Richmond Square introduces a different proposition: generously proportioned residences within a genuinely mixed-use, hospitality-led destination," the developer said.

"The project's location and Walk Score of 99 further support a lifestyle where residents can complete many everyday journeys without relying on a car."

Fortis has assembled an experienced team that includes <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, <a href="https://www.apartments.com.au/interior-designers/hecker-guthrie">Hecker Guthrie</a>, <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a> and builder <a href="https://www.apartments.com.au/builders/hacer-group">Hacer Group</a>, reflecting the developer's commitment to creating projects with enduring design quality and meaningful connections to the communities in which they sit.&nbsp;

Richmond Square is an expression of that philosophy, bringing together homes, workplaces, hospitality and wellness within one of Me​lb​ourne's most walkable neighbourhoods.&nbsp;

Construction is now almost complete, providing purchasers with growing confidence ahead of its expected September 2026 completion.

[smartcode_project_cta:default project_id=13181]

Walk Score of 99 places Richmond Square at the heart of Melbourne's most connected lifestyle

<h3 data-end="19" data-section-id="1dvgwoe" data-start="0">Summary</h3>

<ul data-end="634" data-start="21">
	<li data-end="170" data-section-id="1o77v31" data-start="21">Walker Corporation has lodged plans for a second major residential development in the Maroochydore City Centre, a 29-storey tower known as Celeste.</li>
	<li data-end="327" data-section-id="1lb0y6t" data-start="171">The Plus Studio-designed proposal at Lot 30 Sunshine Coast Parade would deliver 208 apartments, including four four-bedroom sub-penthouses and penthouses.</li>
	<li data-end="487" data-section-id="za720" data-start="328">The application comes as Walker doubles down on Maroochydore following the strong sales campaign at SOL by Walker, where the first tower is nearing sell-out.</li>
	<li data-end="634" data-section-id="5sovec" data-start="488">Walker is a key partner in the transformation of the Maroochydore City Centre, which is expected to ultimately deliver at least 4,000 new homes.</li>
</ul>

Walker Corporation is doubling down on Maroochydore following the successful sales campaign at its first residential project in the emerging CBD.

The national developer has filed plans for <a href="https://www.apartments.com.au/new-apartments/celeste-30-sunshine-coast-parade-maroochydore-qld-4558">Celeste</a>, a new 29-storey apartment tower at Lot 30 Sunshine Coast Parade, just metres from its under-construction SOL by Walker development.

The plans, prepared by Plus Studio, would see 208 apartments delivered across a 100-metre tower on the 2,376 sqm site, which fronts Sunshine Coast Parade, First Avenue and Future Way within the Maroochydore Priority Development Area.

<img alt="Walker" data-entity-type="file" data-entity-uuid="17038209-6fea-4ed2-855d-fd4df65b3d02" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.16%E2%80%AFAM.png?VersionId=iZD.oVXcQn.aLpUytDAW.CWjxP4puWMy" />

The proposed apartment mix comprises 36 one-bedroom apartments, 48 two-bedroom apartments, 72 two-bedroom apartments with an additional multipurpose space, and 48 three-bedroom apartments.

The upper levels would be capped by two four-bedroom sub-penthouses and two four-bedroom penthouses, taking the total apartment count to 208. The preliminary yield study also provides 262 car spaces, 114 resident bicycle spaces and storage for each apartment.

It represents Walker's next major residential move in the new Maroochydore CBD after the success of SOL by Walker, its $220 million two-tower project nearby.

SOL launched to market in early 2025 and has since seen strong demand, particularly from local owner-occupiers. By February this year, Walker said the first SOL tower was nearing sell-out, with a strong waitlist also emerging for its recently released penthouse collection.

Construction is already underway on SOL, with the first tower expected to be completed in late 2027 and the second to follow in early 2028.

[smartcode_project:default project_id=147777 project_image_fid=319846]

<h2 data-end="2518" data-section-id="1b2dyo5" data-start="2459">Celeste to rise 100 metres over Maroochydore City Centre</h2>

Celeste would take a different form to the twin 19-storey buildings at SOL.

Plus Studio has designed a single 100-metre tower above an activated podium, with the architecture responding to the site's prominent position and three street frontages.

The podium would incorporate commercial tenancies and public art, with sweeping façade elements wrapping the street edges. The scalloped concrete podium has been inspired by the patterns created in sand at low tide, while extensive landscaping would continue vertically through the tower.

The ground level plans show three commercial tenancies addressing Sunshine Coast Parade alongside the residential lobby and landscaped public realm. The podium would then accommodate several levels of car parking before the residential tower rises above.

<img alt="Celeste" data-entity-type="file" data-entity-uuid="121f77b1-71c5-46d7-9b36-0a7d474211ca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.47%E2%80%AFAM.png?VersionId=MGrg9Hb7HgzLN0Lelq_xrXNAruVl77ia" />

Plus Studio said the tower had been designed to maximise views from each apartment, taking in the Maroochy River, Sunshine Coast hinterland, Cotton Tree and Maroochydore Beach and ocean.

Those views have also shaped one of the project's key features, with Walker proposing to put the primary resident amenity on Level 29 rather than lower within the building.

The rooftop would feature a 284.9 sqm pool area with an infinity edge, along with a cold pool, spa, sauna, 93.2 sqm gym, sunset lounge, BBQ and dining areas, pool deck and private dining space. Cabanas and day beds are also shown across the recreation level.

The two penthouses would extend across the upper levels and each feature private terraces and plunge pools.

<h2 data-end="4202" data-section-id="v5f4ix" data-start="4160">Walker's growing Maroochydore footprint</h2>

Celeste further reinforces Walker's commitment to the transformation of Maroochydore City Centre.

Walker is one of the key partners delivering the new CBD alongside Sunshine Coast Council and SunCentral Maroochydore, with the broader 62-hectare Priority Development Area occupying the former Horton Park Golf Course and surrounding land.

The precinct is ultimately expected to accommodate at least 4,000 new homes as Maroochydore evolves into the Sunshine Coast's principal commercial and residential centre.

When SOL secured approval in February 2025, Walker Managing Director and CEO David Gallant described it as the "first of many residential projects" the company planned for the Maroochydore City Centre.

Celeste now provides the clearest indication yet of what comes next.

The site sits immediately within the new CBD, with the design report identifying Sunshine Plaza and surrounding parkland within walking distance and Maroochydore Beach around a five-minute drive away.

For Walker, the timing of the application comes as its first residential bet on the new CBD appears to have been vindicated.

SOL has progressed from planning approval to construction while its first release has approached sell-out, giving Walker confidence to push ahead with another 208 apartments and take its residential pipeline in the Maroochydore City Centre to around 450 dwellings across the two projects.

Celeste remains subject to planning approval, with the architectural material describing the scheme as a preliminary yield study that may change through the assessment process.

Walker doubles down on Maroochydore with 29-storey Celeste apartment tower

For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make

The location, floorplan and price are often the first considerations, but in recent years another question has become increasingly important: who is actually delivering the project?

A series of high-profile builder collapses, construction delays and defect concerns have fundamentally changed how many Victorians approach buying off the plan. The collapse of Porter Davis in 2023, which reportedly left around 1,700 homes unfinished, became one of the most visible examples of the risks that can emerge when a construction company fails. <a href="https://www.equifax.com.au/sites/default/files/lpassets/pdf/Final-Business-Market-Pulse-June-Sector-Deep-Dive-Report-2.pdf">Similar challenges across the broader construction sector</a> have left buyers asking more questions before signing a contract.

As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.

One tool increasingly entering the conversation is the <a href="https://icirt.com/">Independent Construction Industry Rating Tool (iCIRT)</a>, an independent assessment framework designed to help buyers better understand the developer or builder behind a project. Originally developed by Equifax in consultation with government and industry as part of NSW's Construct NSW reforms, the system has since expanded nationally.

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

Most Australians are familiar with independent ratings in everyday life.

We compare ANCAP safety ratings before buying a car. We look at Health Star Ratings in supermarkets. Banks rely on credit assessments when lending money.

Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.

That gap is what iCIRT was designed to address.

Builders, developers and other construction professionals with an iCIRT rating have demonstrated high-trust characteristics through an independent, evidence-based assessment across six criteria: Character, Capability, Conduct, Capacity, Capital and Counterparties. This involves a rigorous review of financial health, past project track record, and ethical conduct. Crucially, an iCIRT rating could help provide property buyers with confidence that they are working with a professional who has demonstrated the capability, capacity, and willingness to return and rectify issues.

Importantly, iCIRT is not a recommendation to purchase a particular property, nor is it a traditional credit rating. It is an independent assessment framework designed to provide objective information about a construction business using a <a href="https://icirt.com/sites/default/files/2025-08/iCIRT-Methodology-Issue1-May-2021.pdf">published methodology</a>.

The system has been widely adopted in New South Wales, where more than one-third of medium and large residential builders and developers now hold an iCIRT rating, representing over two-thirds of the state's residential building market by value as of 2025/26.

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.

It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.

<a href="https://icirt.com/sites/default/files/2026-07/iCIRT%202025%20Consumer%20Survey%20Report%20v05.pdf">Consumer research commissioned by iCIRT</a> found more than half of respondents believed current protections do not adequately safeguard buyers from builder insolvencies or defective projects. Other research found 88 per cent of prospective buyers would seek independent ratings or due diligence before purchasing, while 90 per cent said trust in construction professionals is essential.

That doesn't mean buyers should rely on a single rating alone.

Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.

However, an independent assessment can provide another source of information alongside those traditional checks.

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

The conversation isn't only changing for buyers.

Developers are also recognising that trust has become an increasingly important part of the sales process.

Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.

Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.

For companies with strong governance and established delivery records, an independent iCIRT rating provides another way to demonstrate those credentials before buyers even visit a display suite.

According to Equifax, the assessment can also help businesses drive sales and <a href="https://icirt.com/resources-for-business/icirt-rating-helps-scion-secure-high-value-projects">secure high-value projects</a>, as well as identify operational improvements and <a href="https://icirt.com/resources-for-business/mirvac-reinforces-brand-trust-and-quality-independent-icirt-rating">attract top talent</a>.

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

The influence of independent construction ratings is also extending beyond consumers.

According to Stamford Capital's Real Estate Debt Capital Markets Survey, an increasing number of lenders now incorporate iCIRT ratings into their due diligence processes when assessing residential development finance applications.

The survey found lender adoption has continued to rise, with many respondents saying independent assessments provide additional insight into governance, counterparties and delivery capability beyond traditional financial analysis. Some lenders also reported declining funding applications where businesses had poor or no ratings.

As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

Victoria's apartment market is entering a new phase.

The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.

For buyers, that means there are more tools available than ever before to research the businesses behind a project.

For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.

Buyers are asking more questions than ever before and increasingly expecting independent information, not just marketing material, before making one of the biggest financial commitments of their lives.

Find out how to get iCIRT rated <a href="https://www.icirt.com/sites/default/files/2025-08/iCIRT-Infographic-Assessment-Process-Final.pdf">here</a>.

<hr data-end="6469" data-start="6466" />
The information contained in this article is general in nature and does not constitute personal, financial, legal or tax advice. It does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it and, where appropriate, seek independent professional advice.

This article contains links to third-party websites. These links are provided for convenience only. Equifax Australia does not control and is not responsible for the content, accuracy or privacy practices of external sites.

Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

<html><body>
Seumas Dawes, the London-based Australian merchant banker, sits in equal 859th place with a £90 million worth on the latest Sunday Times Richest 1000 list.
Dawes was in 821st in last year's list. The list, now in its 25th year, was released on Sunday.
Dawes, currently the chairman of the investment committee at Pepper Investment Management, has been the long time senior funds manager at Ashmore, and before that at Paribas and ANX Investment.
It reports that Dawes, 56, sold £17 million of Ashmore shares and <a href="/news">retained a stake worth £75 million in 2006</a>.
Dawes held a number of positions in the Australian public sector including three years as a senior advisor to Paul Keating, the then treasurer of Australia.
<a href="/news">Property Observer reported in February this year that Dawes had poured splurged some of his net worth in a serious Bronte acquisition</a>.
The funds manager and his wife, Rosemary initially spent $12.3 million for a large, modern three-storey residence in 2006.
Unquestionably one of the most expensive coastal suburbs in Sydney's east, the <a href="/news">Bronte </a>property sits along the exclusive strip known as The Cutting.
It was a modern five-bedroom residence on the ocean side of Bronte Road overlooking the beach and ocean.
Then earlier this year the couple splashed out with the $16.5 million purchase of the neighbouring house, which they're set to bulldoze and expand their garden and garaging in grounds prepared by Formed Gardens.
The new works which include gym and cabana, improve the neighbouring contemporary houses's north eastern aspect. It's only going to cost $846,000 apparently, which will take the spend to $29.6 million.
He once had an abode in Potts Point's landmark complex, Wyldefel Gardens.
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Australian merchant banker Seumas Dawes features in 2013 Sunday Times 1000 Rich List

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Australia needs to rework its superannuation system to cope with a wave of five million expected retirees by 2033, according to Westpac’s BT Financial Group chief executive Brad Cooper.
Speaking at an American Chamber of Commerce lunch in Sydney last week, covered by The Weekend Australian and The Sydney Morning Herald, Cooper warned the superannuation system will fail many, despite it being the biggest pension system in the world relative to GDP.
He encouraged political parties to work together to build a system that encourages more voluntary contributions, otherwise the system will be unsustainable. But he said any tax breaks should cut out once people reach a certain level of wealth.
He said should be a formal target on how much super should aim to provide in retirement.
“To shift most super balances towards a healthy income replacement rate, we need to acknowledge the importance of voluntary contributions in our system,” Cooper said.
He says to live comfortably, retirees need to be earning 65% to 70% of their pre-retirement income, but at the current rate many won’t be able to achieve that.
“Take a 20-year old male who enters the workforce and earns an average salary of $72,000 during his working life,” Cooper said.
“He receives 12% compulsory contributions, makes no voluntary contributions and retires at 65.”
Johnson said at a rate of return of 5%, the figure used in recent government announcements, he will earn just 51% of his average salary.
“So, on the compulsory super payments alone, a person earning the average salary cannot get near the preferred income replacement rate of 70%,” Cooper said.
“When you look at the adequacy of compulsory super contributions, you realise that even those earning $90,000 a year or $120,000 a year will also have a large shortfall. They will replace just 45% and 37% respectively.”
Only those who earned $40,000 a year in their working life would reach the 70% standard, but only because of top-ups by age pension.
“Without a government age pension, they would only replace 31%,” Cooper said.
He said this should be ringing alarm bells as the system was designed to ease the burden on future generations of paying for age pension.
With retirees to represent a larger share of the economy, Cooper said that it makes economic sense to foster a system that allows retirees to live comfortably and spend on services.
“Regardless of what we think of the financial challenges facing the governments of today, they’ll be many times worse in 20 years if we do not create an adequate system of savings,” Cooper said.
“If today’s 30-year-olds are the government ages pensioners in 2050, our future economy is in real trouble.”
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Superannuation system will fall short: Westpac’s BT Financial Group chief executive Brad Cooper 

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Julia Gillard has always been a passionate advocate for education and although there’s been heated debate over the Gonski reform package, there would be few to disagree that our education system needs a significant overhaul if we’re to successfully compete on an international arena.
As it stands, Australia pales in comparison to a host of other countries in basics such as reading and maths, and this must change.
Whilst I am largely in opposition to any proposal which suggests stripping funding from universities or converting scholarships into student loans, placing new graduates in a debt situation which - in the USA - has reached proportions oft compared to an unsustainable <a target="_blank" href="https://en.wikipedia.org/wiki/Higher_education_bubble">‘bubble’</a> on the scale of their pre-GFC housing crisis. The problem of providing children with a decent education also resonates across the housing market for our biggest home buying demographic – the family buyer.
No one is debating how lucky we are to live in a wealthy country which has thus far avoided the fate of Europe and America - in which youth unemployment is crippling the prospects for following generations.
However, if we’re to maintain a pool of talent essential for driving the necessary innovation to successfully navigate Australia into a post mining culture, as well as provide the necessary qualifications to enable the earning opportunities for younger generations struggling to ‘afford’ the affluent lifestyle Australia has forced upon its residents – (housing costs of which have been inflated through years of poor planning for population growth, ensuring most need to stay closely located to the capital city centres to secure adequate employment) - Education is a big part of the puzzle.
Yet it remains the case, that one of the substantial difficulties for families – or university students – fighting to gain a foothold into the best university or school suited to their needs - is locked in the cost and scarcity of accommodation.
Melbourne has experienced the largest population growth over the past decade and the subsequent squeeze has forced the greatest influx of residents into the outer suburban ‘growth regions’ – areas such as Caroline Springs, Point Cook and Melton for example, in which you can purchase a family home on a decent block of land for half the current metro median of $561,500.
Yet the advantage these regions offer in terms of affordability gets stripped away due a woeful inadequate supply of infrastructure which is always promised, but rarely delivered. This would include poor roads, nonexistent ‘fast’ public transport systems, and more importantly, oversubscribed, underfunded schools unable to cope with the massive boom of new residents – most of which are families.
Last year the Victorian government announced the development of six new fringe suburbs – Diggers Rest, Lockerbie, Lockerbie North, Manor Lakes, Merrifield West and Rockbank North – which are planned to accommodate no fewer than 100,000 new residents.  Planning Minister Mathew Guy made a point of stressing these suburbs would be adequately facilitated with appropriate infrastructure, and I don’t doubt the goodness of his intentions.  However, currently there are barely a handful of small local primary facilities servicing the area.  
Despite the continual tiresome argument by the HIA that cheap credit, by way of reducing rates, is the ‘only’ quick fix answer to encourage first time buyers to the new housing market.  Many of these first home buyers are young couples looking for suitable abode to raise a family; therefore getting adequate facilities into the regional growth areas is the only long term and ‘urgent’ solution to solving current construction crisis.
This infrastructure should include well facilitated and resourced schools – which I’d advocate is something that would provide a far greater level of encouragement to move ‘outwards’ than a rate cut.
 
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For families in the middle suburban regions of Melbourne, gaining a good education for their children is one of the main reasons many battle to stay centrally located, yet if you analyse the statistics, being in a school zone for one of the top 20 or so government schools in Melbourne can increase the price of properties in the area by at least 10 to 15% – and the smaller the zone, the greater the pain.
For example, the McKinnon Secondary College, located South East of Melbourne’s CBD is one of the best-performing non-selective government schools in Victoria, yet it only has a zone of around six square kilometres which spans over four suburbs.  
<img src="/images/stories/2013/04/cashmoreapril22one.jpg" width="470" height="204" alt="cashmoreapril22one"> Comparing a property on one side of a road outside the zone to the opposing side which falls inside the zone, can result in $100,000-plus difference in the sales price.  Therefore, whilst the school doesn’t discriminate on ability, it unwittingly reserves a place only for those able to afford the inflated accommodation costs.
Rental yields for family accommodation are also significantly inflated for properties located within a popular school zone, and due to consistent demand, capital growth tends to provide better than average returns, therefore, it’s no surprise investors and developers are another demographic who target the localities.
Neither is it unheard of for an old property within the neighbourhood to be rented by a desperate family never intending to move in, but simply using the address to meet the criteria for enrolment into year 7.
I’ve even heard of school principals camping out early mornings and late into the evening, checking letter boxes and electricity usage to assess the level of activity in a property “suspected” of sitting vacant while the family lives elsewhere.
It’s also follows that housing within a popular school zone tends to be held for longer periods – periods lasting at least the length of a child’s secondary education and often beyond.  Issues of supply are therefore at the forefront of concern for families hoping to move in and get a bite of the educational cherry.
It was reported early last year that 229 government schools in Victoria turned students away due to pressures of capacity – the urgency of reform to ensure good teachers and educational facilities meet a certain standard across the board cannot be overstated.
The unfortunate bubble effect on real estate prices in well-established popular and restrictive school boundaries is an issue of concern for all hoping to provide their child with a good education. This is especially the case when school zones are either reduced or extended based on under- or over-capacity.
Therefore, should a property suddenly fall outside the zone, it results in an instant loss of equity. The same would result if a school moved or for some reason closed – something we saw happening with relative frequency in Victoria last year.
Below is a map from the REIV which illustrates the median house price by suburb, relative to the metro median at the end of 2012 which was recorded at $555,000.
The colours coded with the darkest blue indicates house prices which are more than double the metro median, and orange - house prices more than 25% below the metro median.  (The white spaces are areas for which there is insufficient data.)  
 
<img src="/images/stories/2013/04/cashmoreapril22two.jpg" width="470" height="273" alt="cashmoreapril22two">
<img src="/images/stories/2013/04/cashmoreapril22three.jpg" width="470" height="324" alt="cashmoreapril22three">
Source: <a href="https://reiv.com.au" target="_blank">REIV</a>
Not surprisingly, all areas surrounding the ‘good’ government schools which reportedly provide the “best” educational facilities Victoria has on offer, are a shade of blue or deep blue indicating inflated house prices. They also map very closely to the colours exhibited on recently released ABS data which ranks geographic areas across Australia in terms of their relative socio-economic <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/2033.0.55.001~2011~Main%20Features~Main%20Page~1" target="_blank">advantage and disadvantage</a>.
The orange areas are the ‘fringe’ suburbs where first home buyers or families - supposedly ‘moaning’ about inner city house prices - are encouraged to “migrate” and raise their children.
 
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As mentioned earlier – until we can get a reasonable level of infrastructure into these localities to provide a comparable educational advantage – or fast train services to enable students and quality teachers to commute outside their immediate area – the colours are not set to change and they will continue to suffer a social disadvantage.
University students don’t find it any easier.  We all read the story earlier this year in which contained an example of a young graduate <a href="https://smh.domain.com.au/real-estate-news/theres-also-a-random-guy-that-lives-in-our-laundry-man-rents-newtown-balcony-for-215-a-week-20130319-2gc7m" target="_blank">renting out a balcony</a> in Sydney for $215 per week.  It’s little better in Melbourne, where student accommodation can often equate to a three-bedroom house being converted into a seven-bedroom model (as below) and marketed to a potential investor offering ‘huge rental returns.’
<img src="/images/stories/2013/04/cashmoreapril22five.jpg" width="400" height="559" alt="cashmoreapril22five">
Whilst most students expect to live in ‘sub-par’ accommodation whilst gaining their degree, it should be understood that the price, standard and supply of housing facilities is one of the major aggravations a young graduate will have to endure.
The adequate provision of secure accommodation obviously plays a significant part in the success or failure of their studies.  Expecting students to foot a larger proportion of the bill to support their term at university – as suggested in the Gillard Government reform package – will inevitably feed into the problems mentioned above in regard to overcrowded accommodation.
It will be years until we see the significant effects of increased education funding, and the issues above pose additional questions – do we do away with school zones all together? Pour a higher proportion of any funding package to the disadvantaged suburbs to level the playing field by way of providing comparable alternatives?
There does seem to be a case for highlighting the unfortunate social divide between accessing quality education and the consequential “bubble” in accommodation costs which plays into issues of relative inequality.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
 
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School zones inflate real estate prices and maintain a social divide: Catherine Cashmore

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The Sunshine Coast has taken top spot in a list of the 10 most expensive regional markets in which to buy residential land compiled by the Housing Industry Association and RP Data.
The Queensland region, which had a median lot price of $240,000, edged out Richmond-Tweed (NSW), which had a median lot price of $235,000.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/04/hiaapril18two.gif" rel="shadowbox"><img src="/images/stories/2013/04/hiaapril18twothumb.gif"></a>
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Sunshine Coast heads 10 most expensive regional markets for residential land: HIA-RP Data

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There was a big argument about superannuation earlier this year. Unfortunately, it was about taxing the ‘fabulously wealthy’ and missed a much bigger issue in superannuation: the disadvantage to women.
Superannuation is predicated on time spent in employment, and the gross income of each member. So while the current median super balance of men aged 35 to 44 is around $41,000, for women of the same age it’s $22,600. For those about to retire – 55 to 64 year olds – men have a median $91,000 compared to women with $55,000.
The problem isn’t so much gender bias as structural inadequacy.
Women have different lives to men. They typically take time out to have kids, they work part-time when they re-enter the workforce, and in order to have flexibility with their family responsibilities, they often work on contract from home or they do informal work for cash. All of these choices take contributions out of their super.
During the week I asked my female Twitter followers what financial issues they had right now and what money concerns they had for the future. And I must thank these women for responding – candour about money takes some guts.
Many female respondents said they couldn’t commit to superannuation strategies when they have kids to raise, bills to pay and a mortgage to service (or a deposit to save for).
This connection between current living pressures and poor savings is why the current superannuation system has a compulsory contribution component (9% of wages currently). But relying on compulsory super doesn’t get you to the desired income replacement rate of 70% by the time you retire. It gets you slightly over half – it’s your voluntary contributions that get you to 70 per cent replacement of your working-life salary.
Clearly, women are not making voluntary contributions.
Another theme I saw in the Tweets was the subject of young divorcees: women who marry in their twenties and divorce in their thirties. This is a significant life disruption and leaves women the poorer, especially if property is split and they have custody of children.
Perhaps the most chilling element was the admission that superannuation was beyond their understanding, out of their control and not really set up for them.
They have a point. When you look at the superannuation industry, the funds focus on nine-to-five, full-time workers. They don’t really talk to casual, part time and self-employed workers – the cohorts in which women are strongly represented.
I am largely concerned that we are pushing women away from super, especially if the current system is forcing them to turn away, or turn off completely. What matters most is that half our population is disadvantaged by a supposedly universal system. That’s not something we can ignore.
In the 2030s there’ll be more than five million retirees, and the women can expect to live into their 90s. That’s 30 years of retirement, and they’ll all need an income.
It’s time to bring women into the system.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
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Women are disadvantaged in our superannuation system

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Nationally advertised distressed property offerings are possibly on the decline.
The number of distressed sales in the March quarter was down by 25% on the same quarter in 2012, according to the Landmark White report.
The report noted residential project offerings were at "an untypically low 19% of the total," with the highest numbers of distressed listings in the March quarter coming in the agricultural sector, accounting for 23% of the total number, in part, as a number of farming aggregations were being broken up and sold off individually by receivers.
The latest mortgagee rural sale is the 5440-hectare Goondiwindi Queensland offering, the irrigation stations, <a target="_blank" href="https://www.realestate.com.au/property-cropping-qld-goondiwindi-7537323">Mobandilla and Kingumbilla </a>(pictured below) which has a May 23 expressions of interest closing date through Ray White Rural.
<img src="/images/stories/2013/04/distressedapril22one.jpg" width="470" height="326" alt="distressedapril22one">
Across the other sectors industrial and leisure offerings sat at 16% and retail at 15% in the Landmark White report.
As usual the smallest number was provided by the office sector, with only 4% of the nationally advertised receiver sales.
Over the full 12-month period, the residential sector (mainly development opportunities) suffered from a higher ratio of receivers’ listings than any other - with almost one in two (48%) assets in distress when it came to nationwide sales marketing campaigns collated by LMW.
The vast majority of receivers’ stocks advertised for sale were in regional (80%) rather than metropolitan (20%) areas, in the quarter which wasn't that dissimilar to the full year split at 78% to 22%.
For the fourth time in six quarters, more than 50% of all distressed nationally advertised listings were in Queensland, with the Sunshine State making up 54% of the national total during the first quarter of 2013 and 53% across the last 12 months.
The New South Wales share of distressed listings fell significantly in the March quarter; accounting for only 9% of the total, versus 22% across the full year.
The growing share of receiver sales found in Victoria continued in 2013, as 15% of all advertisements placed by receivers and mortgagees were located in the Garden State in the March quarter. This was up from 11% in the December 2012 quarter and 10% in the year to date.
New South Wales had the the most positive change, as only 7% of all properties advertised in that state were listed by a receiver or mortgagee - a record low. By comparison, the proportion in the same quarter of 2012 was 31% and the next lowest was 17% in the September quarter of 2012.
Although the distressed ratio in Queensland dropped by 6%, the report noted it remains stubbornly high at 39% of all advertisements. Victoria saw the smallest improvement in the distressed ratio, with a drop from 20% to 19%, which meant that for the first time in the series, Victoria had a higher ratio than New South Wales.
The report noted the overall national distressed ratio was at its equal lowest of the past 18 months, at 23%.
"Both of which are certainly positive indicators," the Landmark White report noted.
However they noted with just 343 properties advertised for sale (distressed or otherwise), there were fewer new listings in the March 2013 quarter than during any time in the series so far.
They also noted the first quarter of the year was typically quieter than the other quarters due to the Christmas break.
The low number of distressed sales nationally – listed by either a mortgagee, receiver or liquidator –surprised the LMW research manager Ross Horsley, who compiles the data using sales advertisements listed in the national commercial property press.
But Mr Horsley suggests anecdotal evidence suggested that a lot of distressed property remained on banks’ books.
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Victoria overtakes NSW, sitting second to Qld in distressed listings

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Hi Margaret,
 I was wondering, if I buy a house that can be rented out on the short-term holiday rental market, can I, if I wanted to, stay there and rent this back from myself?
 Regards,
Scott
Hi Scott,  
The issue of whether you can rent it back from yourself is only one of the many to consider, and when you buy such a property you have to think of them all! Often the ability to get some kind of personal benefit from a property causes investors to buy property which is not in a potentially good area and which, without the benefit of the holiday option would not be a good investment at all.  
Here are some important points:
<ul>
<li>
The tax office may not see this as an arm’s length transaction if you stay there yourself and may not allow claims for that period
</li>
<li>
Paying the rent, or not receiving the rent if you stayed there free, is pretty similar and still represents a period of personal benefit
</li>
</ul>
Scott I am unclear as to why you would be doing this anyway – paying rent to yourself, presumably via the manager who would be looking after it, means you only get the net rent after management costs.
As I said earlier, the problem is that few places we would like to holiday too are actually good places to invest and a holiday unit is often amongst the worst type of property too. Therefore, doing this could mean you would end up with a bad property, in the wrong area, just for the few weeks benefit, which is not a benefit since you are paying rent anyway!
Stick to buying great properties in strong areas which you legally rent to bona fide tenants – build up a solid portfolio and soon enough you’ll be choosing to holiday anywhere you want.
Margaret Lomas is a best-selling author and writes and hosts the popularProperty Success With Margaret Lomas and heads up the panel onYour Money, Your Call, both on Sky News. She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Ask Margaret: can I rent my holiday house from myself?

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The last five years have been difficult for investors. The GFC and its aftermath of private sector deleveraging, public sector debt problems and household, business and investor caution have led to poor and volatile returns from shares. It seems we are constantly on edge with prognostications of doom getting constant replay with every twitch in markets. Just like The Rolling Stones single last year "all I hear is doom and gloom". Methods of investing that seemed to work well for years have seemingly broken down, or at least many have lost faith in them.
So what should investors do? The following is a list of things that are critical for investors to know and do. Obviously when it comes to investing everything is debatable to some degree, but I hope you find this list to be of value. First, some investment market realities.
Investment market realities
There are four key things to bear in mind about investment markets.
There is always a cycle. The historical experience of investment markets - be they bonds, shares, property, infrastructure, whatever - constantly reminds us they go through cyclical phases of good times and bad. Some are short term, such as those that relate to the 3 to 5 year business cycle. Some are longer, such as the secular swings seen over ten to twenty year periods in shares. But all eventually contain the seeds of their own reversal. Ultimately there is no such thing as new eras, new paradigms and new normals. Such jingles - as wheeled out through the tech boom and more recently through the post GFC gloom - make good marketing spin. But markets tell us there is nothing new under the sun. In fact, when someone tells you about a new whatever, it’s probably already run its course.
It’s a mad, mad, mad world. It’s well known that investment markets are prone to bouts of irrationality which take them well away from levels that may be justified on a long term basis. This is rooted in investor psychology, which is far from rational and flows from a range of behavioural biases investors suffer from. These include the tendency to overreact to the current state of the world, the tendency to look for evidence that confirms your views, overconfidence (particularly amongst males!), an erroneous feeling of safety in numbers and a lower tolerance for losses than gains. While shifts in fundamentals may be at the core of cyclical swings in markets, they are usually magnified by investor psychology if enough people suffer from the same irrational biases at the same time. This in turn creates opportunities for investors who can take a longer term approach and look through extremes of market madness either on the upside or the downside.
Starting point valuations matter, a lot. It stands to reason that the cheaper you buy an asset the higher its prospective return will be and vice versa. Good guides to this are price to earnings ratios (the lower the better) and yields, ie the ratio of dividends, rents or interest payments to the value of the asset (the higher the better). But while this seems obvious, the reality is that many find it easier to buy after shares have had a strong run because confidence is high, and sell when they have had a strong fall because confidence is low.
The power of compound interest. Although the average annual return on Australian shares (11.9% pa) is just double that on Australian bonds (6% pa) over the last 113 years, $1 invested in bonds in 1900 would today be worth $704 whereas $1 invested in shares would now be worth $350,356. Yes there were lots of rough periods along the way for shares just like the last few years (eg the 1930s, 1970s, 1987-96), but the impact of compounding at a higher long term return is huge over long periods of time.
What should investors do?
So, given these market realities, what should investors do?
Know yourself. Now I know we all like to think that everyone is mad except you and me, but the reality is that we all suffer from the psychological weaknesses referred to earlier. But smart investors have an awareness of their weaknesses and seek to manage them. One way to do this is to take a long term approach to investing. But this is also about knowing what you want to do. If you want to take a day to day role in managing your investments then regular trading and/or a self managed super fund (SMSF)  may work, but you need to recognise that investing is not easy. If you are going to trade or run your own investments with, for example, an SMSF, then recognise that this requires a lot of effort to get right and will need a rigorous process. If you don't have the time and would rather do other things like sailing, working at your day job, or having fun with the kids then it may be best to use managed funds
Seek advice. Flowing on from the last point, given the psychological traps we fall into as investors and the fact it is not easy, a good approach is to simply seek the advise of a coach such as a financial adviser, in much the same way you might use a specialist to look after other aspects of your life like fixing the plumbing, your medical needs or helping you get fit. Even I’ve got one.
Invest for the long term. In the 1970s a US investment professional named Charles Ellis observed that for most of us investing is a loser’s game. A loser’s game is a game where bad play by the loser determines the victor. Amateur tennis is an example, where the trick is to avoid stupid mistakes and thereby win by not losing. The best way to avoid losing at investments is to invest for the long term. Get a long term plan that suits your level of wealth, age, tolerance of volatility, etc, and stick to it. This may involve a high exposure to shares and property when you are young or a focus on funds targeting a particular return outcome or level of cash lows when you are close to or in retirement.
 
<hr class="system-pagebreak">
Diversify. This is another no brainer. Don’t put all your eggs in one basket as the old saying goes. But plenty do. It seems that common approaches in SMSF funds are to have one or two high yielding and popular shares and a term deposit. This could potentially leave an investor very exposed to either a very low return or if something goes wrong in the high yield share they are invested in.
Turn down the noise. Once you have worked out a strategy that is right for you, it’s important to turn down the noise on the information flow surrounding investment markets. The past couple of decades have seen an explosion in the volume and ease of access to information surrounding economies, investment markets and individual investments. This is great in a way. But there is little evidence that it’s helping investors make better decisions and hence earn better returns. We seem to lurch from worrying about one crisis after another. Just think about this year: already we have seen a long list of worries starting with the US fiscal cliff, then worries the Fed may exit monetary easing too early, then the Italian election, the US budget sequester, Cyprus, bird flu, North Korea, China, etc. In fact the combination of too much information has turned investing into a daily soap opera - as we lurch from worrying about one thing after another. You'd be better off turning the financial soap opera off and watching The Days of Our Lives or Home and Away!
Avoid short termism. Flowing from the last point, the ease with which information on returns can be accessed is likely reinforcing shorter and shorter investment horizons for investors. An end result of taking a shorter and shorter investment horizon is an ever higher allocation to perceived safe assets such as bonds and cash/term deposits. This may have been fine through the GFC and its aftermath, but will ultimately mean locking into ever lower returns given the low yields now prevailing for bonds and bank deposits. Well might you say, at least I won't lose money on term deposits. But the point is that low yielding deposits will lock in low returns making it hard to meet long term financial goals.
Focus on investments offering sustainable cash flow. This is very important. There’s been lots of investments over the decades that have been sold on promises of high returns or low risk but were underpinned by hope based on hot air (eg, many dot com stocks in the 1990s, resources stocks periodically) or financial alchemy where rubbish was supposedly turned into AAA yield generators (the sub-prime CDOs of last decade). But the key is that if it looks dodgy, hard to understand or has to be based on obscure valuation measures to stack up then it’s best to stay away. By contrast, assets that generate sustainable cash flows (profits, rents, interest payments) and don't rely on excessive gearing or financial engineering are more likely to deliver.
Recognise there is no free lunch. Related to the last point, if an investment looks too good to be true in terms of the return and/or riskiness on offer, then it probably is.
Buy low, sell high. If you do have to trade or move your investments around then remember to buy when markets are down and sell when they are up. This seems like a no brainer, but most people do the opposite. There’s an old saying in investment markets: “flows follow returns”! In other words inflows are strongest after periods of strong returns and outflows are strongest after weak returns. It should be the other way around.
Don't fret the small stuff. It’s easy to spend lots to time worrying about an individual share investment or whether to use this fund manager over that fund manager. But the reality is that the key driver of your return is the assets (shares, bonds, cash, property, infrastructure, listed/unlisted, onshore/offshore, hedged/unhedged) that you are exposed to. In other words asset allocation is paramount and it’s very hard to avoid this.
Don't over rely on expert forecasts. The well known economist J.K. Galbraith once observed that there are two types of economists "those who don't know and those who know they don't know". While that may be a bit harsh - you might say I would say that being an economist - the reality is that point forecasts as to where the share market will be at a particular time or as to its short term return have a dismal track record. Hence all the bad jokes about economists! Good experts will help illuminate and point you in the right direction, but this is what they should be used for.
Recognise the aim is to make money, not to be right. Many investors miss this. Lots of people have lost money doggedly following some assessment that they were sure would be right. But the key is to recognise that getting some view right is not what it’s about. What it’s about is making money. Don’t get hung up on extreme views about where markets are going.
Beware the crowd at extremes. For periods of time the crowd can be right and safety in numbers provides a degree of comfort. However, at extremes the crowd is invariably wrong. Whether it’s lemmings running off a cliff, or investors piling into Japanese shares at the end of the 1980s, Asian shares into the mid 1990s, IT stocks in the late 1990s, US housing and dodgy credit in the mid 2000s. The problem with crowds is that eventually everyone who wants to buy will do so and then the only way is down (and vice versa during crowd panics). As Warren Buffet once said the key is to "be fearful when others are greedy and greedy when others are fearful".
Finally, if you have the right long term strategy, never despair. Things normally turn out ok eventually. Fortunes are invariably made out of tough times.
Dr Shane Oliver is the head of investment strategy and chief economist at AMP Capital. Please note that this article is intended as general information and not as investment advice.
 
 
 
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Four key things to bear in mind about investment markets

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Byron Bay has recorded the highest median house price among 17 key coastal towns during the second half of 2012, according to PRDnationwide research.
PRDnationwide research analyst Aaron Maskrey noted the Byron Bay house price currently sat at $664,000, equating to an increase of 11.1% from the previous year.
The 17 coastal towns also included Coffs Harbour, The Entrance and Yamba in NSW; Agnes Water, Gold Coast, Hervey Bay, Port Douglas, Sunshine Coast, Whitsundays and Yeppoon in QLD; the Fleurieu Peninsula in SA; Bells Beach, Lakes Entrance and 90 Mile Beach in Victoria; and Broome and Dunsborough in WA.
The report found the average gross rental yield achieved for Australian coastal town houses was 4.8%, reflecting a small 0.3% decrease from the previous year. 

Coastal town units registered an average gross rental yield of 4.9% reflecting a 0.8%.

But PRDnationwide warn that despite increasing gross rental yields for units "potential investors should do their homework on each particular market they are interested in, as some unit markets could be subject to oversupply.” 

Mr Maskrey said the highest coastal town rental yield for houses was 8.7% in 90 Mile Beach in Victoria and the highest coastal town rental yield for units was Broome in Western Australia at 7.7%.
"Of all coastal towns included, both Byron Bay and Coffs Harbour were in the top three gross rental yields for units - at 6.3% and 5.9% respectively," he said.

"The Byron Bay house market appears to have lifted off the bottom of its cycle from the second half of 2011," he said.
<img alt="byronbayapril19one" height="264" width="470" src="/images/stories/2013/04/byronbayapril19one.jpg">
"Annual growth in the median house price over 2012 was an exceptional.
"And sales activity strengthened by 42%," he added.

"Observing the demographic shifts within Byron Bay, it is apparent that a large portion of the youth population aged 24 and under have left the region over the past five years, amounting to a fall of almost 3%.
"The age segment of 55 to 74 has increased by a large 5.6% of total residents.
"This significant shift is greater than just a resident population ageing, and signifies a growing number of incoming residents that have just retired or are near retirement."

The research indicated that Coffs Harbour also demonstrated similar demographic changes, with a contraction of 1.3% in youths aged 5 to 14, while the portion of residents aged 55 to 44 increased 1.3%.
"Coffs Harbour has recorded a median house price of $365,000, registering an increase of 2.8% from the previous year." 

Mr Maskrey said The Entrance was another New South Wales coastal market with an increase in sales activity despite the adverse macro-economic factors which have influenced other coastal regions.

"Conversely, buyers have taken advantage of the favourably low interest rates and increased government stimulus spending during 2009 which observed a boost in sales activity coupled with a rise in both the median price of houses and units," he said.

"Over 2012, the median house price has increased by 2.4% to $425,000, with the majority of house sales occurring in the $300,000 to $399,999 price bracket. By observing movements within the house price points, it is apparent that the price bracket of $700,000 to $799,999 has expanded by four per cent, while the $900,000 plus bracket has contracted by three per cent."

The house market within Yamba experienced a significant price correction over 2011 and into 2012.

"However, the second half of 2012 has seen renewed demand enter the market with an increase in activity, resulting in the median price rising by $35,000 (9.5%).
"If there is a sustained period of increased sales activity in 2013 (upwards of 40 house sales over a six month period) then the improved buyer sentiment should see house values continue to build upon the growth experienced at the end of 2012."
Images of Byron Bay lighthouse courtesy of Flickr.
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Byron Bay prices have lifted off the bottom as it tops the list of 17 Australian coastal towns

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A five-bedroom holiday home in Tangalooma Queensland tops the list of the nation's most discounted property with a price slash of 41% over four years, according to SQM Research.
Located in the Bay View Estate of <a target="_blank" href="/news">Tangalooma</a> Island Resort on Moreton Island, the property was first listed in March 2009 for $1,495,000.
It is <a target="_blank" href="https://www.realestate.com.au/property-house-qld-tangalooma-104624146">currently listed</a> by Paul Hagedorn from Ray White Moreton Island for $875,000 and has spent over 1,400 days on the market.
The home (pictured below) features two bathrooms, two living areas, a media room and a rooftop deck.
<img alt="sqmapril15two" src="/images/stories/2013/04/sqmapril15two.jpg" width="470" height="350">
Hagedorn says the original asking price in 2009 was at the top end of the market, and like every owner, the vendors wanted the highest achievable price.
Hagedorn says there is currently a very low demand for holiday let properties and therefore a number of properties have been reduced in price.
He says the 41% price slash is purely a reflection of the market.
“I have never seen prices reduced so much and I’ve been in the industry for over 40 years.
“The market is right at the bottom end,” says Hagedorn.
The current owners built the home around eight years ago.
The property comes with a sub lease to Tangalooma Resort.
Victoria is the only state not represented in the list.
Until recently, <a href="https://sqmresearch.us5.list-manage.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=401d6a899d&amp;e=0aab96dc54" target="_blank">65 Felstead Ave, Sunshine 3020</a> had featured in the list, but the three-bedroom home (pictured below) has recently gone under contract.
<img alt="sqmapril15one" src="/images/stories/2013/04/sqmapril15one.jpg" width="470" height="347">
 
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The top ten most discounted properties nationwide are as follows:


1
<a href="https://sqmresearch.us5.list-manage1.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=def11a2629&amp;e=0aab96dc54" target="_blank">7 Cassidae Crescent, Tangalooma, 4025</a> 
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Days on the market: 1462</div>
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Initial asking price: $1,495,000 Current asking price: $875,000 Reduction: 41%</div>
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2
<a href="https://sqmresearch.us5.list-manage2.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=50b2df11cf&amp;e=0aab96dc54" target="_blank">5756 Arthur Highway, Taranna, 7180</a> 
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Days on the market: 902</div>
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Initial asking price: $499,000 Current asking price: $299,000 Reduction: 40%</div>
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3
<a href="https://sqmresearch.us5.list-manage.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=b9c21ae7f6&amp;e=0aab96dc54" target="_blank">1/1 Freeman Loop, North Fremantle, 6159</a> 
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Days on the market: 826</div>
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Initial asking price: $4,500,000 Current asking price: $2,795,000 Reduction: 38%</div>
4
<a href="https://sqmresearch.us5.list-manage2.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=2c144e1326&amp;e=0aab96dc54" target="_blank">19 Lychee Drive, Caboolture, 4510</a> 
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Days on the market: 1042</div>
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Initial asking price: $949,000 Current asking price: $598,000 Reduction: 37%</div>
5
<a href="https://sqmresearch.us5.list-manage.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=948f43f499&amp;e=0aab96dc54" target="_blank">15 Gretel, Two Rocks, 6037</a> 
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Days on the market: 1190</div>
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Initial asking price: $1,100,000 Current asking price: $699,000 Reduction: 36%</div>
6
<a href="https://sqmresearch.us5.list-manage.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=e37ebb72b6&amp;e=0aab96dc54" target="_blank">19 Cliff Terrace, Macleay Island, 4184</a> 
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Days on the market: 294</div>
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Initial asking price: $600,000 Current asking price: $385,000 Reduction: 36%</div>
7
<a href="https://sqmresearch.us5.list-manage.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=64a99b213a&amp;e=0aab96dc54" target="_blank">368 Rheban Road, Spring Beach, 7190</a> 
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Days on the market: 875</div>
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Initial asking price: $760,000 Current asking price: $500,000 Reduction: 34%</div>
8
<a href="https://sqmresearch.us5.list-manage.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=1e0368fab2&amp;e=0aab96dc54" target="_blank">20 Rheban Road, Orford, 7190</a> 
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Days on the market: 538</div>
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Initial asking price: $370,000 Current asking price: $245,000 Reduction: 34%</div>
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9
<a href="https://sqmresearch.us5.list-manage1.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=f76162d8ec&amp;e=0aab96dc54" target="_blank">161 Central Avenue, Mount Lawley, 6050</a> 
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Days on the market: 357</div>
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Initial asking price: $1,295,000 Current asking price: $875,000 Reduction: 32%</div>
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10
<a href="https://sqmresearch.us5.list-manage1.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=1084d9914a&amp;e=0aab96dc54" target="_blank">2/106 Avoca Drive, Avoca Beach, 2251</a> 
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Days on the market: 238</div>
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Initial asking price: $1,995,000</div>
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Current asking price: $1,350,000</div>
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Reduction: 32%</div>
 
 
 
 
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