<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]

Joel Robinson

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

Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

[smartcode_project:default project_id=111820 project_image_fid=344699]

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

[smartcode_project:default project_id=136442 project_image_fid=374084]

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

[smartcode_project:default project_id=134954 project_image_fid=4553]

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul>
	<li>Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li>10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li>An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li>Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li>No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li>Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li>Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul>
	<li>Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li>Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li>Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li>Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

NSW parliament passes 10-year defect insurance laws for new apartment buyers

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

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Overall we feel the market in Melbourne's inner east has finished very strongly and on a positive note for 2012. By the bay is a different story, more positive than 2011, but not as strong as the inner east.
Year starts tentatively
After 2011 finished with a whimper, the market mood from buyers, sellers and agents in early February 2012 was fairly sombre. There was a feeling that things were not going to go well this year, and this was reflected in the lack of quality homes on the market, the lack of buyers willing to push past anything remotely heavy price-wise, and a number of fringe agents considering alternative professions.
The first test for 2012 was on February 25. The mood was actually more positive than it might have been, given the negativity around. Homes were selling, but they were mostly the well-priced A-graders in the early to mid-$1 million segment, where buying and selling wasn’t about a discretionary desire, but a physical or financial need.
One area that did live up to the sense of doom and the gloom in this early part of the season was the $3 million market, the top end. It was as dead as doornail in the inner east. And while bayside had a little oomph over $3 million, it wasn’t travelling particularly well either.
Sizzling super Saturday
But the big story was about super Saturday, October 27. More than 150 $1 million-plus auctions were slated for this day – the end of a clear four-week period after the footy finals. This was the big test – and by our standards it was a sizzler. Clearance rates were up over 70%, Bidderman (the average number of bidders at every $1 million-plus auction on the day) was at 1.8 and, of the 42 auctions we attended, seven were ‘volcanoes’ with four or more bidders. That was a significant improvement on the equivalent super Saturday last year (October 22, 2011), which had a clearance rate of just 43% and a Bidderman rate of just 1.3.
Then, following the Cup weekend, this optimism seemed to take a bit of a stumble. The stats didn’t look too bad, with clearance rates in the mid 60%, and Bidderman at around 1.5. But the market felt quieter than it should have been given the great run up. Deals were still happening but not at the same level of excitement as October and, as another November week passed, some in the market started to wonder if maybe super Saturday was a dream – that the market hadn’t really picked up and that we were going to limp into Christmas much the same as last year.
 
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Market improvement seems solid
By the last weekend of November, though, it was back on. Clearance rates were back up to 75%, Bidderman was up at 2, and there was no longer any doubt that the underlying improved market strength felt in October was still there. There was in fact a feeling of urgency out there, as if buyers suddenly realised that Christmas was just around the corner and that they had to act now if they wanted a home.
This sense of excitement even filtered through to the top end $3 million-plus market. After a dramatic increase in sales in this segment in October, by November the top end could officially be removed from life support. There were around 50 sales over $3 million in inner east and bayside, a very big month and a lot stronger finish than 2011.
Positive end to the year – especially in the inner east
Overall we feel the market in the inner east has finished very strongly and on a positive note for 2012. By the bay is a different story, more positive than 2011, but not as strong as the inner east.
After a year of a ups and downs then, we go into 2013 a lot more positive than we went into the market at the beginning of this year. What happens next year will depend a lot on what happens with interest rates and the economy, but having survived a few knocks and blows, overall the market feels like it has reached a stage of resilience this year and there’s reason to feel more optimistic for the market over the next twelve months – but hey who really knows, that’s what makes the Melbourne top end so interesting!
Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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The year that was 2012 in Melbourne's $1 million-plus property market

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The north-west Melbourne satellite town of Sunbury has proved popular with Sydney and Melbourne commercial property investors with three properties selling recently on strong yields.
The top yield was achieved for a Sunbury childcare centre on Cornish Street, which sold privately for $2.31 million, equating to a sharpish yield of 8.45%.
The property is leased for 10 years with a 10 year renewal option to G8 Education – ASX listed operator with over 130 centres across Australia.
The property was marketed by Burgess Rawson’s Adam Thomas, who has sold a number of childcare centres over the course of the year including in Doncaster, Sydenham, Maribynong and Cranbourne,
The premises of a Subway store, with a five-year lease and renewal options to 2024 on the corner Station &amp; Evans Street in Sunbury, sold at auction last week for $610,000 on a yield of 6.55%.
The price exceeded the reserve by around 10% and was picked up by a "cashed-up Melbourne investor" according to Thomas.
And the 940 square metres premises of two showrooms leased to national car repair firm Midas and tyre retailer Beaurepaires until 2019 sold under the hammer for $2.9 million - $100,000 above the reserve on a yield of 6.25%.
Thomas says the sales demonstrate the appeal of Sunbury as a town in its own right and the appeal of commercial properties with strong and secure tenants.
Sunbury, about 40 kilometres north west of Melbourne, has a population of around 30,000 people.
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Investors snap up Sunbury commercial properties at yields ranging from 6.25% to 8.45%

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Sydney, Melbourne and Brisbane rank among the world’s top 10 priciest shopping strips, according to the latest CBRE global retail rents report.
Hong Kong tops the list and ranks as the world’s most expensive retail destination, with rents of US$4,334 per square foot (A$44,380 per square metre) for prime retail, per annum.
Hong Kong’s rent level is more than four times higher than the fifth-placed London - US$988 per square foot – as Central, Causeway Bay and Tsim Sha Tsui are dominated by luxury brands.
<img height="585" width="470" src="/images/stories/2012/12/cbredec19.gif" alt="cbredec19">
The CBRE report says that prime rents remain high in key gateway markets due to strong flows of international tourists seeking luxury products.
“Hong Kong and other Asia Pacific markets have benefited from international retailers – particularly fast-fashion, cosmetics, jewellery watch, and mid-range fashion retailers – aggressively seeking prime locations across the region,” says global chief economist of CBRE Ray Torto.
“Retail rental growth in the Asia Pacific region is expected to continue to ease as the economy slows, consumers cut back on discretionary spending, and retailers turn more cautious,” he says.
New York is the second priciest shopping destination with rents on fifth avenue increasing 17% quarter-on-quarter.
New York is $2,925 per square foot of prime retail per annum, almost triple that of Tokyo who is in third place at $1,084 per square foot of prime retail.
Sydney is Australia’s most expensive shopping strip, experiencing a slight rise in rents in the 2012 third quarter and coming in fourth on the list at $1,017 per square foot per annum. 
The report says that international groups expressed a strong interest in prime CBD locations in Melbourne, where its high streets performed well having been dominated by cafes and restaurants.
Melbourne is sixth on the list, at $850 per square foot per annum, falling short of London at $988 per square foot.
“Given the current economic landscape, retailers are understandably seeking highly trafficked prime locations. Cities with international reputations for luxury shopping are especially in demand,” says Torto.
Zurich is slightly cheaper than Melbourne at $830 and just beating that of Paris’ shopping strips at $828.
Moscow is in ninth place at $739 per square foot per annum and Brisbane is number 10 at $642 per square foot per annum.
“Given the limited supply of prime space throughout these locations, prime rents will remain high in the foreseeable future,” says Torto.
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Sydney, Melbourne and Brisbane in world's top 10 priciest shopping strips

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A pick-up in both population growth and overseas migration bodes well for the housing market, according to CommSec chief economist Craig James.
Australia’s population grew by 359,600 people over the year to June 2012 to reach 22,683,600 people with its annual population growth rate rising from 1.49% to 1.61% – a near three year high.
A total of 208,300 people migrated to Australia over year to June - the fifth consecutive quarter that annual migration has increased, with Western Australia claiming 23% of Australia's total net overseas migration for the year compared with 18% for the previous year.
WA managed population growth of 3.3% over the 12 month period - double the Australian average - and on the verge of breaking Queensland's record for highest interstate migration.
In absolute terms, Victoria had the highest number of new arrivals (both interstate and overseas) totalling 89,000 followed by Queensland (86,000) and NSW (78,900) and WA (78,000).
James says the latest population figures are “encouraging”.
“Population growth is again rising, underpinned by migration. And if more people are coming to Australia that means greater demand for houses, cars and retail items. Clearly faster population growth is good news for builders and retailers,” he says.
A similar point was made by Chart Keck Cramer’s Robert Papaleo with reference to the struggling Melbourne land market.
According to Papaleo, a pick-up in overseas migration will have flow-on effects for the Melbourne property market and help spur a recovery in the fringe residential new housing market.
“Net overseas migration has come off the bottom of its cycle, but there is usually a 12 to 18 month lag before it feeds into the housing market,” <a target="_blank" href="https://www.propertyobserver.com.au/victoria/long-slow-road-to-recovery-for-melbourne-residential-land-market-with-prices-to-fall-further-charter-keck-cramer/2012121158413/Page-2">he told Property Observer.</a>
A pick-up in overseas migration could result in a rise in demand for fringe housing from these new arrivals but could also see them acquiring established housing and those displaced residents choosing, in some cases, to buy a lifestyle property on the outskirts of the city.
According to James, a pick-up in migration is also positive from a longer-run point of view in that it flattens out the ageing profile.
“We will need more in the way of younger people over time to support the growing ranks of pensioners,” he says.
James does include the counter-argument that faster population growth may not always be a good thing.
“It is all about striking the right balance. If we need more workers and we can’t get them locally, it makes sense that we bring them in from abroad. It is vital that supply and demand for workers is brought into balance,” he says.
 
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Population and migration pick-up likely to deliver boost to housing market: CommSec

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There has been no official confirmation of a bid by Mirvac to merge with Australand in a move that would create a $7 billion listed property trust.
Australand posted an ASX statement to say that it was “not in receipt of any such proposal” with Mirvac, providing the same Australand statement.
Mirvac later sent an email to the Australian Financial Review (which broke the story) that it continually assesses opportunities to increase shareholder value.
"We are also aware of our continuous disclosure obligations and there is nothing to disclose." An article in the Australian Financial Review claimed that Mirvac, under the new leadership of Susan Lloyd-Hurwitz, was preparing a proposal to merge with its smaller rival.
The mooted merger proposal follows the Australand board rejecting an offer from GPT to acquire its non-residential businesses for $3 billion.
The AFR article did not name any source for its story, but says the proposal is being considered by Mirvac advisers Citigroup and is at an “early stage”.
For the deal to go through, it would need the backing of Singaporean real estate giant CapitaLand, Australand’s controlling shareholder.
AFR veteran property editor Robert Harley said a Mirvac merger proposal would be a better fit than GPT only wanting Australand's commercial assets.
Goldman Sachs A-REIT analyst Peter Zuk notes that the AFR article suggests that other parties could potentially join the offer process, including industrial specialist Goodman Group and Lend Lease.
Zuk says he could see a “strategic rationale” for the merger and says it would not surprise the investment bank “if some/all of these parties were interested in having a look at Austrland’s assets”
“Focusing on the reported potential Australand/Mirvac merger, we can see the strategic rationale behind any potential merger given the similarities between their business models,” says Zuk.
"Whether on a stand alone basis or a combined entity basis, we see both Mirvac and Australand as having leverage to:
<ul>
<li>The Australian residential market recovery; </li>
<li>Sourcing cheaper debt</li>
<li>Lower corporate overheads."</li>
</ul>
Recent mergers/takeovers in the listed REIT space include Goodman Group (GMG) and its consortium acquiring the then listed ING Industrial Fund in March 2011 and Blackstone acquiring the Valad Property Group in May 2011.
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No official confirmation of Mirvac proposal to merge with Australand

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The likelihood of house prices rising in real terms in 2013 are “not good”, according to the University of Western Sydney’s professor Steve Keen, who says his 2008 call of a slow 40% fall in Australian house prices over the next 10 to 15 years is looking “healthy”.
According to Keen, for house prices to perform better than the current inflation rate of 2% would require that property price growth start to accelerate.
However, he says the opposite has been happening following a “slight uptick in nominal prices over the last six months”.
According to RP Data, capital city house prices rose 0.4% over the three months to November, following a quarterly fall of 0.6% in October, a 2% gain over the September quarter and a 1.6% gain over the August quarter – to be up just 0.1% year-on-year.
Keen says the argument put forward by “permabulls” like Dr Andrew Wilson of Australian Property Monitors – tipping house prices to rise 3% to 5% nationally in 2013 – and BIS Shrapnel’s Robert Mellor – expecting 2% to 8% growth in Sydney, based on the “usual property mantra that house prices always rise faster than consumer prices because of the “fundamentals” of (a) a rising population and (b) tight supply” – is out of sync with what is actually happening in the property market, where prices have fallen 9.8% in real terms since peaking in June 2010.
Writing for Business Spectator, Keen revived comments that gained him notoriety in 2008, when he said in an interview with Kerry O'Brien on the ABC's Lateline the property prices would fall 40%, though he distanced Australia’s property predicament from that which befell the American housing market.
“While Australia’s house price fall post its bubble peak is clearly different to America’s crash, it’s on par with that experienced in Japan’s long, slow melt,” says Keen.
“That was the basis of the comment that dragged me into the property debate back in 2008, that Japan had experienced a 40% fall from its bubble peak over 10 to 15 years, and I saw no reason for Australia to be different. So that call is looking healthy.”
Keen says he does not accept the argument that an undersupply of housing will prop up the property market, and says the bigger issue is the high-level of debt held by Australian households, which has not diminished as it has in the US.
While mortgage lending is at its slowest on record, Keen says the main point to bear in mind is that it is still growing with mortgage debt at 85% of GDP compared with the situation in the US, where mortgage debt as a percentage of GDP has fallen from 86% in 2009 to 68% in 2012.
The following chart prepared by Keen on his <a target="_blank" href="https://www.debtdeflation/">www.debtdeflation.com</a> blog shows the much higher ratio of private sector debt relative to GDP (the blue line) compared with the red line showing the ratio of government debt to GDP, based on RBA data.
<img src="/images/stories/2012/12/keendec18.gif">


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Keen says for house prices to rise, “the flow of new mortgages has to exceed the flow of properties onto the market, and that requires mortgage debt to not merely rise, but do so at an accelerating pace”.
And it has sustain this accelerated growth for some time – something that  Keen says will be difficult with the debt burden of Australian households already so “immense”.
“Australia, with a mortgage debt to income ratio that has barely budged from its 87% of GDP peak, has precious little room to maintain accelerating mortgage debt.
“America, on the other hand, has some headroom because of the fall in mortgage debt from 86% to 68% of GDP,” he says.
Keen’s column on Business Spectator drew the usual volley of disparaging remarks about his forecasts.
But they’re unlikely to bother the thick-skinned Keen, whose international reputation is growing at a faster rate than Australians' propensity to take on new mortgages.
Keen recently gave addresses to the <a target="_blank" href="https://www.debtdeflation.com/blogs/2012/12/11/briefing-on-the-fiscal-cliff-at-congress/">US congress on the fiscal cliff</a> and in November took part in an <a target="_blank" href="https://www.debtdeflation.com/blogs/2012/11/29/a-macroeconomics-debate-at-cambridge/">economics debate at Cambridge University</a>.
This year he has also appeared on the BBC’s Question Time to discuss the impact of debt on economies along with addresses at conferences around the world.
He is currently mulling up a more permanent move overseas, telling Property Observer at the end October of his frustration at a decision by the University of Western Sydney to cut economics entirely from its curriculum.
“So we'll soon have a university with no economics courses at all, which I think would be a very dubious first in Australia – and maybe the world,” he said.
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Odds of Australian house prices beating inflation in 2013 'not good': Steve Keen

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After a long period of falling dwelling values, Brisbane's property market is showing signs of a turnaround, according to Australian Property Monitors.
"Brisbane has at last give positive indications of turning the corner from what has been a prolonged period of falling house prices," says APM.
"This is despite an underperforming local economy with unemployment rates persistently above 6% due in large part to state government job cuts."
APM predicts that investors will return to Brisbane in 2013 and forecasts house prices in Brisbane to rise from 3% to 5% in the new year. 
"Established inner and middle-suburban housing markets will continue to attract value buyers. High listings in the outer suburbs, particularly to the north, will however continue to place a lid on prices growth in those regions.
"The inner-city apartment market looks particularly promising with Hamilton and New Farm set to continue their renewal and expansion."
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/12/apmdec18.gif" title="Click to enlarge"><img src="/images/stories/2012/12/apmdec18thumb.gif"></a>
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/12/apmdec131.gif" title="Click to enlarge"><img src="/images/stories/2012/12/apmdec132.gif"></a>
<img src="/images/stories/2012/12/apmdec182.gif">
Source: APM
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Brisbane property market turning the corner: APM

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While I am of the belief that owning an investment property should be a long-term commitment, there may be times when a rental property needs to be sold, and those circumstances may include up and coming retirement, reducing debt, marriage separation and death – just to name a few. 
Selling a rental property can be a dramatically different experience to selling your family home. Not only do you need to think about your wants as the owner, but you must also strongly consider the tenants throughout the whole process. Yes, I know the tenants don’t own the property but you must remember it’s their home and when you sell a rental property, with tenants in it, you are selling their home. 
Of course, you may decide to sell the property between tenancies. There are arguments for and against putting an investment property up for sale when it is vacant: 
The pros of marketing a vacant property for sale include:
<ul>
<li>The property can be spotlessly clean at all times</li>
<li>There are no restrictions on showing prospective buyers through the property at any time</li>
<li>There is no concern for the next owner that they are inheriting bad tenants. </li>
</ul>
The pros of marketing a tenanted property (with good tenants) include:
<ul>
<li>The prospective owner knows the potential rental return in advance</li>
<li>The new owner has a rental income from the day he takes ownership</li>
<li>The property looks more comfortable and “homely”. </li>
</ul>
Good tenants can definitely add value to your property. But even the best tenants will be slightly concerned when you put their home up for sale. So I make one simple recommendation to assist everyone, and that is to make sure communication remains at the highest level possible. Over the years I have seen many things go pear-shaped, with a sales campaign of a rental property, and the worst way to start the campaign is to erect a For Sale board at the property before you let the tenants know. 
Can you imagine coming home from work one night and finding a For Sale board up on your home when you know nothing about it? Now I know that a sales agent would never do that to an owner-occupied property, yet it happens time and time again with rental properties. And I really don’t understand why. 
STEPS FOR A SUCCESSFUL SALES CAMPAIGN
We have managed many sales campaigns for our property owners over the years. A result of this experience is that I have come up with a series of steps that, if followed, will help you in your campaign. So let’s run through the steps which I believe are beneficial for all parties. 
1. The owner will normally make contact with the property  manager or the agency and ask for a market valuation. It’s important to ascertain what the purpose of the valuation is for:
<ul>
<li>Are the owners looking to sell the property?</li>
<li>Are they refinancing the property for other reasons, such as to purchase another investment?</li>
<li>Or is there some other reason – are they weighing up their options? </li>
</ul>
An owner will rarely just ask for a market valuation for the sake of it, generally there is an underlying reason, so ask lots of questions and find out their motivation. 
2. If the owners are asking for the market valuation because it is their intention to sell the investment property, then the next step is to make contact with the tenant to inspect the property. 
3. During this inspection take the time to have a chat with the tenants. You never know, perhaps they are interested in purchasing the property. 
4. During this appointment it’s imperative that you work on establishing some rapport with the tenants to gain their confidence that you will work hard to avoid inconveniencing them any more than is absolutely necessary. 
5. The owner/property manager and sales agent must decide what type of sales campaign they will be running. Will it be sold at auction or by private sale? The tenant should be informed of this decision and also given the timeframes for the campaign. 
6. Will there be set open times every weekend? On Saturday and Sunday? How many Open for Inspections will be conducted each week? Again the tenants need to be involved with these decisions. 
7. What happens if the property is slow to sell? How long will you keep the property on the market for?
Keeping a house ‘spick and span’ at the best of times can be hard work, let alone through a sales campaign. So it’s a good idea to provide the tenant with a ‘thank you’ or incentive during the campaign. Maybe some movie tickets so that they can take the family out during an inspection. 
Or even consider a reduction in rent over this period to compensate them or allow them to: 
<ul>
<li>Pay for a house cleaner once a week</li>
<li>Or for a gardener or pool man once a fortnight</li>
<li>Have fresh flowers around the house during open for inspections.</li>
</ul>
 
<hr class="system-pagebreak">
TROUBLE-SHOOTING
Let’s look at a couple of areas where things can sometimes go wrong… There have been occasions when the selling agent has not realised that a chattel within the property belonged to the tenants and therefore when it came time for the tenant to vacate, they also removed the chattel. If this occurs after settlement it could create an opportunity for a compensation claim to be made against the selling agent and/or vendor. 
The chattels people have been caught out on include window coverings – such as curtains – air conditioning units, portable spas and additions made to the garden, such as trees and plants. So if you are selling your investment property, make sure the selling agent establishes a good working relationship with your property manager and/or tenants and is able to clarify what chattels belong to the tenants. This will prevent such confusions potentially costing you money. 
Another more common area where things can go so wrong with the selling of the property is usually when there is conflict or a lack of a good working relationship between the salesperson and tenant. 
A good property manager may be the saviour here as they can generally work with both parties to come to an agreement that works for both the tenant and salesperson. 
They could get both parties to accept setting open times once or twice a week, instead of expecting the tenant to take telephone calls every day asking for an inspection. Providing the tenant with an outline of the marketing campaign in advance can also greatly assist. 
This avoids the chance of the tenants scheduling their twin sons’ seventh birthday party at that same time as an open for inspection! A little preplanning can save some major “oops” in the future. 
SETTLEMENT OF A RENTAL PROPERTY WHEN TENANTS NEED TO VACATE
 
Earlier in the chapter we mentioned the two scenarios: selling your investment property with tenants still living in the property and selling the property when it is empty. Of course, not all buyers of a rental property will want to continue to rent the property out. The new owners may choose to live in the property themselves and here is where complexities come into play. 
In the property world you will hear the expressions ‘rent and profits’ and 'vacant posession'. Rent and profits is when there is a tenancy in place and the purchaser of the rental property receives rent from their settlement date. If the new owner retains the same property manager then there is minimum inconvenience for the tenants who just continue paying the manager the rent in the same way as before. Should the management of the property change, tenants will have to be advised of to whom to pay the rent. It is not necessary for a new tenancy agreement to be prepared or signed at this stage unless the lease has expired or is coming up for expiry. It is also not necessary for a new condition report to be prepared – the original report remains in use until the tenancy comes to an end. 
Before settlement takes place, it’s important for the property manager to speak to or even meet the new purchaser in person if this is an option. It’s at this stage that a new management authority is prepared which will be effective as of the date of settlement. An owner’s instruction document should also be completed to ensure you have clear and concise instructions on how the owner wishes the property to be managed. 
Then, upon confirmation of settlement, all of the purchaser’s details must be added to the property manager’s software program. 
It’s a valuable exercise, a few days prior to settlement, to ensure you have checked that there are no outstanding matters relating to the property, such as maintenance. Are there any accounts still requiring payment by the vendor (the previous owner) such as an electricians’ or plumbing invoice? 
With tenanted properties, you may need to ask your owner who is completing the rental adjustment. This calculation ensures the vendor receives all the rent money up until the settlement date and the purchaser receives monies after that date. 
This can often be overlooked as some solicitors and/or conveyancers assume the rental adjustment will be completed by the current property manager. Make sure you find out who is doing it – it will save you potential headaches after settlement takes place. 
Don’t forget to let the tenant(s) know once settlement takes place. A simple letter is enough to confirm the change in ownership. 
A thank you may also be a nice gesture. 
I find it funny that sales agents provide gifts to the vendor and purchaser once the property has settled, yet the tenant, who may have made that property sparkle throughout the sales campaign, is completely forgotten. Why is that?
 
<hr class="system-pagebreak">
 
Pre-settlement inspections
With all property sales, there is the option to complete a pre-settlement inspection prior to the settlement date. It’s ideal to complete this inspection 7 to 10 days prior to settlement. This allows the purchaser to ensure the property is as per the original inspection. 
I would also recommend giving the tenants a good few days’ notice of this pending inspection.
Once settlement takes place, don’t forget to cancel the owner’s landlord insurance policy and activate a new policy. In many cases, the original owner will receive a refund for the unused portion of the policy. 
Vacant possession
Vacant possession is just as it suggests – the property is vacant at settlement. This means that if tenants were still living in the property during the sales campaign they must have left by the date of settlement. 
Over the years I have seen salespeople sign contracts with a purchaser, ticking the vacant possession option and then they have completely overlooked or (perhaps) ignored the fact that there was a fixed tenancy agreement in place. 
Or the one I love the most (note my sarcasm) is when the property is sold with vacant possession on a 60-day settlement, yet legislation requires the tenant be provided with a minimum of 65 days’ notice in order to have them vacate. 
Now I don’t know about you, but no matter how hard I try to make that one work the maths just doesn’t add up. An easy fix is to extend the settlement date. But what if the purchaser has another settlement lined up and needs to settle both properties on the same day? 
This error by the salesperson can ultimately result in:
<ul>
<li>The sale falling over</li>
<li>The purchaser seeking damages from the vendor for compensation for failure to settle on time</li>
<li>The vendor seeking those said damages and perhaps more from the selling agent.</li>
</ul>
So stay alert and watch out for this because it happens all the time.
<img src="/images/stories/2012/11/simple.jpg" style="margin: 5px; float: left;">
 
 
Leah Calnan is the director of <a target="_blank" href="https://www.metropm.com.au/" title="Metro Property Management homepage">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
Leah is the author of<a target="_blank" href="https://majorstreet.com.au/simple-and-successful-property-management/"> Simple and Successful Property Management</a>, published by Major Street. This is an excerpt.
 
 
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The seven key steps to selling a rental property: Leah Calnan

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The receivers of failed non-bank lender Provident Capital have terminated two high-interest mortgage funds after failing to find suitable new managers.
The two funds are the Provident Capital Monthly Income Fund and the Provident Capital High Yield Fund.
Investors in these two funds will receive initial distributions of between 30 cents and 50 cents for every dollar invested as the receivers seek to sell the properties financed with high-interest loans.
PPB Advisory receivers Marcus Ayres, Anthony Sims and Philip Carter had sought tenders to manage the two funds but in both cases the process did not result in a “suitable change of responsible entity proposal being identified”.
Investors in the high yield fund were due to be paid an interim distribution of 50 cents per unit by December 13 while investors in the monthly income fund were due to be paid a distribution of 30 cents for each $1 unit held.
As of November 30, the high-yield fund had cash of $409,859 which will be utilised to pay the first wind-up distribution of approximately $358,000 to unitholders while the monthly income fund had cash of $9,328,724, which, together with upcoming loan discharges of $1,032,646, will be utilised to pay the first wind-up distribution of approximately $9,460,000 to unitholders.
The monthly income fund has a total of 57 loans worth a total of $22.3 million with 10 loans in a arrears worth $4.4 million.
Provident Capital acted as a lender of last resort on risky development, charging very high interest rates and fees.
The majority of loans in the monthly income fund had annual interest rates of between 10% and 12.5% while a high proportion of borrowers - 15 loans worth $6.6 million - had interest rates in excess of 12.5%.
Of the 57 loans worth a total of $22.3 million, 10 loans are in a arrears worth $4.4 million.
The high-yield fund has three loans – two for residential purposes and for an industrial property – totalling $300,000 all with double-digit interest rates.
The receivers have warned <a href="https://www.propertyobserver.com.au/residential/poor-return-likely-for-provident-capital-debenture-holders-as-%245m-dividend-payments-investigated/2012120558316">Provident Capital debenture holders</a> to expect a maximum of 35¢ back for every dollar they invested in the failed non-bank lender and mortgage fund manager.
Small investors, many of them pensioners and mum-and-dad investors have $96 million invested collectively in the fixed-interest debenture fund.
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Provident Capital receivers terminate two mortgage funds with poor initial returns for investors

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National Australia Bank will lease the former Cartier shop on Exhibition Street in the Melbourne CBD, relocating from a more expensive location at the Paris-end of Collins Street.
The bank will pay $1550 a square metre net for the new premises at 100 Exhibition Street having previously occupied premises at 71 Collins Street.
The new 10-year lease was negotiated by Savills’ director of retail leasing Michael Di Carlo alongside colleague, Jeremy Marmur.
The shop became available after luxury watch retailer Cartier relocated to a bigger and better-located store at 101 Collins Street.
Di Carlo said NAB had required a more modern fit-out which offered superior customer access and exposure.
The lessor was a private investor.
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