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;

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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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.

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.”

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 style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">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 style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">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 style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">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 style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">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 style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">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 style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">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 style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">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 style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

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

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

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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Ideal for the gourmand investor, the Cottage Point Inn in Hawkesbury has come onto the market for the first time in 23 years.
Investors can’t be too shy of water, as the restaurant sits on the waterfront in the Kuringai Chase National Park and is accessible by seaplane or ferry. Alternatively it’s a 40-minute drive from Sydney.
Originally a boat shed and general store, it was converted in the 1970s and has been operated by Daniel McKinnon for the last 20 years. The property is currently owned by yachtsman Dr Tony Fisher and his daughter Sally Smith through their company Helsal Investments Pty Ltd, named after the 70-foot concrete yacht Helsal which Fisher captained to win line honours at the 1973 Sydney to Hobart yacht race. They bought the property in 1989.
Steve Daley, of Irish and Maltese descent, is the current head chef after 15 years in the hospitality industry, including an apprenticeship at the Pier and time in Europe focusing on French training and techniques. He is reportedly an avid fisherman is often seen on the river fishing for jewfish and kingfish with other staff members.
The restaurant has a private floating deepwater pontoon for seaplanes and large boats for use by diners and guests. A package including sea plane charter from Sydney to the restaurant and a three-course meal costs $485 per person.
Cottage Point Inn includes two fully self-contained apartments, which along with the restaurant pay rent of $313,750 a year. The tenants pay all outgoing costs, including a $20,000 National Parks &amp; Wildlife licence. The apartments start at $220 a night.
The restaurant and apartments are on a five-year leases signed on April 1 plus five-year renewal option.
LJ Hooker Palm Beach agent Peter Robinson expects the buyer will also pick up a timber cottage at the back of the property on the same auction day.
On a separate title the 853-square-metre, three-bedroom home is being offered as part of a combo deal.
Robinson is expecting about $5 million for the two properties if bought together but says if there is no investor interest in buying both the vendors are willing to sell the Cottage Point Inn Restaurant and Apartments title for around mid-$3 millions plus GST and the residential house in the mid-$1 millions.
Cottage Point Inn and the house go to auction on May 31.
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awalsh-7Ub9EypybQ

Cottage Point Inn and apartments in Hawkesbury on the market

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Have you wondered how many properties you would need for financial freedom?
I’ve found that while most property investors hope to one day replace their personal exertion income with cash from their investment properties, most don’t have a strategy to achieve their goal.
So just how many properties does it take to enable you to quit your day job and live comfortably?
The answer is simple: it depends.
OK, that’s not what you wanted to hear, but in fact it’s the wrong question to ask.
It doesn’t really matter how many properties you own. What is more important is the value of your asset base and how hard your money works for you.
Why do I say this?
Because I’d rather own one Westfield Shopping Centre than 50 secondary properties in regional Australia.
How will you live off your property portfolio?
While many property investors know they want their properties to replace their income, I’ve found most don’t actually think about how they’ll actually achieve financial freedom.
They don’t have a strategy. They don’t have a plan. They just hope it will happen.
Other investors think that they’ll live off their rental income, yet I rarely see this happen. It’s just too hard to grow a portfolio of cashflow-positive properties of a sufficient size to replace your income.
On the other hand, the wealthy investors I deal with have built a cash machine by growing a substantial asset base of high-growth properties and then lowering their loan to value ratios (LVR) so they can transition into the next phase, the cashflow phase of their investment life.
They lower their LVR in a variety of ways. They could:
•             stop (or slow down) buying properties, so that while the value of their portfolio keeps rising, their loans remain much the same;
•             add value to their properties by manufacturing capital growth through renovations or development;
•             pay off some debt using their superannuation;
•             reduce their debt by pay off principal and interest; or
•             sell a property or two.
But the first stage of their wealth creation strategy always involves building a substantial asset base.
Can’t I just live off the rent?
Let’s say you want an annual after tax income of $100,000. How are you going to achieve that? How many properties do you need?
If you plan is to eventually pay down your debt and live off the rent, you’ll probably need at least $4 million worth of properties with no mortgage to get that $100,000 after-tax income.
Don’t believe me?
The average gross yield for well-located properties in Australia is around 4%, but let’s be generous and say you earn a 4.5% yield across your property portfolio.
This means if you eventually own $1 million worth of properties with no debt, you’ll get $45,000 rent. But you’ll still have to pay rates and taxes and agents’ commissions and repairs, leaving you with something like $35,000 a year. And then you’ll have to pay tax on this income.
When you do the sums you’ll see that you need an unencumbered portfolio worth at least $4 million to earn that $100,000 a year after tax.
Remember that’s $4 million worth of property and no mortgage debt, otherwise you cashflow will be lower.
And of course you’ll also need to own your own home with no debt against it.
Let me ask you a question: will you ever be able to save $4 million?
Will you ever build a portfolio that size on a few dollars a week positive cashflow from your rents?
By now it should be clear that the only way to build a substantial asset base is to take advantage, leverage and compounding growth of well-located properties.
In my mind the only way to become financially independent through property is to first grow a substantial asset base (by buying high-growth properties) and then transitioning to the next stage – the cashflow stage – by lowering your debt, but not paying it off completely.
Here’s how it works:
Fast forward 10 or 15 years and imagine you own your own home plus $5 million of well-located investment properties.
If you had a typical 80% loan to value ratio, you would be negatively geared.
On the other hand, if you had no debt against your property portfolio you would have positive cashflow, but would forgo the benefits of leverage.
Somewhere in the middle, maybe with a 50% LVR, your property portfolio would be self-funding. You may even have a little cash flow left over, but not enough to live on.
If you think about it, it will be much easier to amass a $5 million property portfolio with $2.5 million of debt than the same size portfolio with no debt.
You could then go to the bank and explain you’ve got a self-funding portfolio that isn’t reliant on your income and in fact, there’s a little cash left over for serviceability. You would then ask for an extra $100,000 loan, so you’re increasing your LVR slightly.
The good news is that you don’t have to pay tax on this money because it’s not income. But you would have to pay interest, which won’t be tax deductible if you use the money for your living expenses.
This means after the interest payments you’re left with around $93,000 to live off.
Crunch the numbers.
At the end of the year, you’ve “eaten up” your $100,000, but in a good year, your $5 million property portfolio would increase in value by, say, $500,000.
In an average year it will have increased in value by $400,000 and in a bad year it may have only gone up by $150,000 or $200,000.
Of course your rents will also have increased because your properties have increased in value.
Sure you’ve used up the $100,000 you borrowed, but because your portfolio has risen in value, along with rents, your LVR is less at the end of the year than the beginning, so you finish off the year richer than you began it. You truly have a cash machine, and then you can do this over and over again.
Does this really work?
In the old days living off equity was easy.
You just had to go to the bank and get a low-doc loan and as long as your properties increased in value it was smooth sailing.
Sure it’s harder today, but it’s definitely doable. You just have to lower your LVR to show serviceability to the banks.
Needless to say, you can’t achieve this overnight. It takes time to build a substantial asset base and a comfortable loan-to-value ratio. But if you take advantage of the magic of leverage compounding and time, it happens.
Do you have an asset protection plan?
Of course this strategy depends on the growth in your property portfolio and your ability ride the property cycle.
This means that as you build your asset base, buying high-growth properties and adding value, you will need an asset protection plan to see you through the ups and down that you’ll experience.
After all, over the next 10 we’ll have good times and bad. There will be periods of high interest rates and times of lower interest rates. And we’ll have periods of strong economic growth, but there will also be times of downturn.
Savvy investors count on the good times but plan for the downturns by having an asset protection plan, as will as a finance strategy and tax strategy to make sure they set up their structures in the most efficient way.
Don’t get me wrong, while I’ve just made gaining financial freedom form property investing sound simple, it’s not easy. And that’s not a play on words.
Fact is, around 20% of those who get involved in property investment sell up in the first year and close to half sell their property in the first five years.
And of those investors who stay in property, about 90% never get past their second property.
So if you want financial freedom from property investment to fund your dreams, you’re going to have to do something different to what most property investors are doing. You’re going to have to listen to different people to who most Australian property investors listen.
You’re going to need to set yourself some goals and follow a strategy that’s known, proven and trusted.
Then you grow your property investment businesses one property at a time.
Of course, you need to buy the right type of properties.
One that has a level of scarcity, meaning they will be in continuous strong demand by owner-occupiers (to keep pushing up the value) and tenants (to help subsidise your mortgage); in the right location (one that has outperformed the long-term averages); at the right time in the property cycle (that would be now in many states); and for the right price.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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How many properties do you need to own to never work again?: Michael Yardney

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Melbourne registered a 7.3% increase in housing affordability over the March quarter, with the overall national HIA-Commonwealth Bank Housing Affordability Index improving for the fifth straight quarter to its highest level since September 2009. 
Housing affordability has been trending up since December 2010, according to the index.
The index improved by 6.4% (3.7 index points) in the March 2012 quarter to be 11% (6.1 index points) higher over the year and at a reading of 61.8.
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This reading indicates that housing still remains relatively unaffordable for the average wage earner. 
An index reading of 100 indicates that an individual earning an average income could service a mortgage on a median-priced property with mortgage costs taking up 30% of their income. 
Currently, based on a median house price of $459,000 an individual would need to earn an income of $113,000 to comfortably service their loan and make monthly repayments of $2,800. 
The most affordable capital city housing market is Hobart, with an index of 73, while Sydney is the least affordable with an index of 50.
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<img src="/images/stories/hiamay242thumb.gif">
The March quarter improvement in Melbourne was matched by an identical improvement in Adelaide, with Brisbane up 6.3%. 
However, both Sydney and Perth recorded deteriorating affordability in the March quarter of 2012, with their indices falling by 1% and 1.8% respectively. 
Among the smaller capital cities, Hobart housing affordability improved by 3% and Canberra by 7.1%. 
Outside of the capital cities, affordability improved in all states with the exception of Victoria, which was unchanged. Affordability in non-metropolitan New South Wales was up by 2.4%, Queensland was up by 4.5%, South Australia was up by 6.4%, Western Australia was up by 8.7% and Tasmania was up by 0.4%. 
Conditions are beginning to tilt back in favour of those trying to enter the housing market, says the HIA.
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Melbourne and Brisbane lead housing affordability increase to highest level since September 2009: HIA-CBA index

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The Town and Country Hotel at St Peter's Sydney, immortalised in the Duncan song by Slim Dusty, was passed in at $2.21 million at its auction today.
Bidding on the hotel on Unwin's Bridge Road opened at $1.8 million through auctioneer Damien Cooley.
It's listed through Gerry Quinlan at Manetti Quinlan hotel brokers, who was seeking $2.5 million on initial marketing. It comes with 15 poker machines and potential redevelopment possibilities. The song was actually written by Pat Alexander seven years before it topped the charts in 1981 for two weeks.
The auction bids featured in the TGC Sydney Property Twitter updates from the auction room.
<img src="/images/stories/towncountrytwitter1.jpg">
Alexander wrote the song had come out of an experience while selling life insurance.
"I love to have a beer with Duncan, I love to have a beer with Dunc. We drink in moderation, and we never, never ever get rolling drunk. We drink at the Town and Country, where the atmosphere is great. I love to have a beer with Duncan 'cause Duncan's me mate."
Alexander sent one of his discs to Slim Dusty's post office box address and it was his wife, Joy McKean, who happened to play Duncan, and liked it.
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jchancellor-FAypfDUnLy

Slim Dusty 'Duncan' hotel passed in

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Finding a house or unit within 20 kilometres of the capital city that fits a small budget can be difficult, but there are still suburbs located 20 kilometres or less from the CBD of each capital city where relative bargains can still be had.
Across the combined capital cities, there are opportunities to purchase homes at prices below citywide median prices in locations that are still relatively close to the city centre. Of course, in the more expensive centres, these opportunities are more difficult to come by. There are still opportunities, however, within 20 kilometres of the city centre.
Across the combined capital cities, 34.8% of suburbs within 20 kilometres of the respective capital city centre have a median house price below $500,000, while, for units, the figure is a higher 73.6%.
These figures indicate that price sensitive purchasers still have some options closer to the city centre, in particular if they are prepared to purchase a unit.
It must be pointed out that across individual cities, the proportion of homes priced below $500,000 less than 20 kilometres from the city centre are quite varied, particularly for houses. Only 3.7% of suburbs less than 20 kilometres from the centre of Sydney have a median house price below $500,000, and the figures are also relatively low in Melbourne (21.7%) and Canberra (25.6%).
These results highlight the relatively high cost of houses in these cities and, subsequently, densification of inner city areas is occurring. For units, 42.5% of suburbs within 20 kilometres of the Sydney city centre have a median price below $500,000, while in each other capital city more than 65% of suburbs have a median price below $500,000.
Looking at the most affordable suburbs for median house prices across each city, some clear trends emerge from the results. Most of the suburbs are located more than 10 kilometres from the city centre; the exceptions are the flood-affected suburbs of Rocklea in Brisbane and Risdon Vale in Hobart.
Click to enlarge
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This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany.</a>
Cameron Kusher is senior data analyst at RP Data.
 
 
<div id="_mcePaste" class="mcePaste" style="position: absolute; left: -10000px; top: 561px; width: 1px; height: 1px; overflow: hidden;"><a href="https://www.smartcompany.com.au/index.php">https://www.smartcompany.com.au/index.php</a></div>
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ckusher-ujnxiKuFQs

Relative property bargains can still be found within 20 kilometres of CBDs: Cameron Kusher

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There was beer all over the dance floor and the band was playin’ rhythm and blues You got down and did the gator, and half an hour later, you were barfin’ all over your girlfriend’s shoes.
But the Greeks don’t want no freaks. The Greeks don’t want no freaks Just put a little smile on them rosy cheeks, ‘Cause the Greeks don’t want no freaks.
The Greeks Don’t Want No Freaks, The Eagles, The Long Run 1979
This is one of those sing-along songs, featuring Jimmy Buffett and the Monstertones as back-up, and yes, it really is about a frat party – the likes of which Glenn Frey used to gate crash – watch the movie Almost Famous to get the drift.
But still, the title somehow fits the current European quagmire.
Or does it? It maybe isn’t “all Greek to me” after all.
For mine, way too much attention is being spent on the PIIGS (Portugal, Ireland, Italy, Greece and Spain) of Europe, while not enough discussion is taking place – well, at least publicly – about the real forces behind a long-term united Europe, being the German/French alliance and demographics.  Europe cannot escape its demography. And the election of Francios Hollande (who? most Aussies might ask) last week as France’s new president is a potential game changer.
You see, the EU is – at its core – really about a Franco-German relationship and of late, France’s struggle for a more dominant role in European affairs at a time of German ascendency. And while this Franco-German consensus is immediately critical for Europe, it is demographics that are crucial for the EU’s survival. And the outlook isn’t very promising!
One of Europe’s many underlying problems (another is the rise of nationalism and populism – <a href="https://matusikmissive.wordpress.com/page/3/?s=%22The+EU%22">click here for more</a>) – and one that is completely divorced from the current political mess, is that the continent’s population is ageing rapidly. And to make matters worse, Europe’s youth are migrating overseas due to rising unemployment at home.
Across Europe it is fairly common for 50-somethings (and in many cases even 60-somethings) to outnumber teenagers. Not only is there insufficient money to pay for pensions, but 20- and 30-somethings do most of the consuming, and therefore drive most economic growth. Modern economies are reliant on this domestic consumption – something that is lost on Australia’s current federal politicians, too!
Fixing Europe’s economic problems isn’t a matter of simple accounting or belt-tightening. It isn’t just about Greece or the others PIIGS. It is really about restoring a “normal demography”, which requires a mass increase in the birth rate for a decade or so.  Even in the most aggressive case, this is a generational process, but more likely two – i.e. 50 to 60 years.
Europe’s days of economic growth do not have a bright future, regardless of whether France or Germany can agree on a common economic strategy. However, if France and Germany cannot get on the same page (or the rising trend towards nationalism/populism accelerates) then the underlying fissures within the EU will cause its current structure to breakdown.
It is somewhat ironic – just like the Eagles song that started this piece – that one of the EU’s more defining traits was its deliberate lack of passion. The EU also promised peace and prosperity. These thee Ps are now crumbling and with it the EU.  (<a href="https://matusikmissive.wordpress.com/page/3/?s=%22The+EU%22">click here</a>)
In short, there are no quick fixes here; the world will need to adjust. And sadly, as I will outline in another Missive soon, China faces similar turmoil.
We are definitely living in uncertain and unstable times.
 
Michael Matusik is the director of independent property advisory Matusik Property Insights. Michael is a 25-year veteran in the industry and his firm has helped over 550 new residential developments come to fruition. Michael has launched a new initiative, called<a href="https://www.matusik.com.au/" target="_blank"> Think Matusik</a>. Think Matusik brings together expert opinion and select property opportunities.
 
 
 
 
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michaelmatusik-49YzLvdmNv

Forget Greece, Europe needs to massively increase its birth rate

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The recent news that the aluminium smelt is closing in Kurri Kurri, a town in the Hunter region of NSW, is very sad.
My thoughts go out to the 350 or so workers who will be looking for new jobs or being forced to retire over the next three months as the business winds down.  The plant is blaming a lethal combination of prolonged record high trading of the Australian dollar and low metal prices. Ironically, the announcement coincides with the Australian dollar slump to a six-month low off the back of the situation in Europe, but the slump has come too late to help this business.
So how is this going to impact the local property market?   More importantly, will this impact the property market at all?  Of course it will, I hear them saying – but let’s take a closer look at this town and the underlying fundamentals.
Kurri is a small town with a population of just 14,000 at the last census.  However, its close proximity to much larger towns has made it a popular place to live for those who like the peacefulness of a small town.  It’s only 14 kilometres away from Cessnock, a major tourist and retail hub with a population of 46,000 and 13 kilometres away from Maitland– the fastest-growing inland town of NSW with a population of 63,000.
Kurri is certainly not located in the “middle of nowhere”.
So the big question is how many of the 350 people who lost their jobs actually live in Kurri?  I’m going to ask the local property managers this question to establish the possible impact on the vacancy rates. But will they need to vacate at all?
Can people still continue to live in Kurri and work elsewhere?  The answer is yes.
The saving grace for Kurri and hopefully the people who lost their jobs is the $1.7 billion dollar Hunter Expressway that is well under construction, currently employing about 800 staff directly on the project and more than 400 subcontractors.
This massive, four-lane freeway will have an interchange at Kurri.  This means that the expressway will cut driving time considerably from Kurri to the mining towns on New England Highway and also to Newcastle and the F3.  So people can still live in Kurri and work in the coal mines of Singleton – only an estimated 30-minute drive once the Hunter Expressway is completed – or even Muswellbrook, a further 40 minutes or so.  A short 20-minute drive will bring them to Newcastle.  Kurri is a more affordable rental market than Singleton, Maitland and Newcastle.  Having the interchange makes Kurri a very central place to live.
Then there is the undersupply of workers in the Hunter resource industries.   A quick look on one recruitment website reveals that there are 1,118 jobs available right now in the Hunter.  There has been an acute skills shortage for years with many businesses complaining that as soon as they train up an apprentice they are lured into the mines by well-paid jobs.  The Hunter Valley Research Foundation has reported that the region’s workforce grew by more than 8,000 in the March quarter.
The Hunter is a diverse area with thriving industries including tourism, agriculture, manufacturing, coal and mining, power generation and winemaking.
When one door closes, another door opens, so here’s to a bright future for the people of Kurri.
Jo Chivers is director of <a target="_blank" title="Property Bloom" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
 
 
 
 
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jochivers-wq5Bp59R5a

Kurri Kurri can survive the closure of its aluminium smelting plant: Jo Chivers

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About 70% of Australian households own their homes, according to Credit Suisse. This is a relatively high percentage when compared with other countries around the world.
Click to enlarge
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Source: Credit Suisse
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cknowlton-QnEa6ntUYP

Australian home ownership at relatively high levels: Credit Suisse

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The property investment industry is growing rapidly, with well in excess of $500 billion invested by small investors in property in this country every year. To think that this industry operates completely without any kind of governance is beyond belief.
You can start helping to change this by writing to <a href="mailto:mbill.shorten@treasury.gov.au">bill.shorten@treasury.gov.au</a> and asking him why he refuses to do anything about regulation for the industry. When we had a Liberal government, I had made some great progress with Treasury in not only designing potential regulation, but having the government commit to implementing this regulation. The minister of the day, Nick Sherry, had made a public commitment to this pathway on one of my shows, and he had guaranteed me that the property industry would be regulated as part of ‘tranche two’ of the Credit Reform. The green paper referenced the property investment advice industry, and also committed to including it in the Credit Reform Legislation.
Once the white paper was in existence and accepted by parliament, this commitment had curiously disappeared from the agenda. Next, we saw a change of government and suddenly any intention to even consider such regulation disappeared. I have continuously tried to gain an audience with Financial Services Minister Bill Shorten to outline the problem, and he steadfastly refuses to acknowledge my existence, let alone the issue itself.
To give you an idea of the extent of the issue, here are some facts:
The property investment industry is completely without regulation. This means that anyone can wake up one day, decide he wants to be a property investment adviser, and set up shop in his own business, or working for someone else, giving you advice about property investing. There is no licence required, no education or training needed, and no one is supervising the activities of these people to ensure that you are being protected.
Some of these people provide advice only, while others, in an outrageous conflict of interest, actually sell you the property, too. In some cases, the company may have a real estate licence, however these licences simply provide ground rules about how property is sold and still leaves the entire issue of the advice surrounding these sales without governance. I recently reviewed the website of one of these spruikers who has a real estate licence, and the claim was that, while this person “technically” acts for the vendor according to the provisions of his or her licence, in fact the spruiker acts for you, the buyer, by giving you advice. If that’s not a conflict of interest, and most likely also a breach of their real estate licence, then I am not sure what is.
ASIC provides no supervision, and the Australian Financial Services reform does not recognise the activities of these property investment advice companies because a property investment is not recognised as a financial instrument. ASIC makes claims that it has the issue covered, since new rules allow the organisation to investigate “spruikers” who cross the line into actual financial advice, but this is a weak argument provided by a government department that simply cannot bear the thought of adding responsibility to an already stretched agenda. In truth, spruikers who do cross this line make up less than 1% of the players in the property investment advice industry, leaving 99% of them free to operate completely without rules, regulation or any kind of supervision whatsoever. 
If that frightens you, then consider this: property investment advisers also operate without any kind of professional indemnity insurance to cover their “advising” activities. Those with policies have significant exclusions, which limit their cover to activities which fall under legislative governance, such as finance broking. The reason for this is that the underwriters refuse to provide coverage for activities that are unregulated, and rightly so. What this means for you is that, if you suffer any kind of financial loss as a result of poor property investing advice, you have no capacity to recover that financial loss, as the adviser most likely won’t have the funds to compensate you!
And so, in case you’re not seeing the full picture here, this is how it looks:
If you are seeking assistance or advice from a “professional” property investment advice company or person to help you make what is most likely going to be the largest investment you will ever make, the company you approach will have no licence, most likely no education or training, and is not supervised by any government department or licensing body. They are not required to disclose to you any commissions they may receive from any sales made to you (and these can be as high as $40,000 per property sold), they can freely give you advice to invest or disinvest in any property or product that suits them, and, if it all goes pear- shaped, you have absolutely no regulatory framework under which to seek recompense, and no likelihood of recovering your losses from PI insurance.
If this alarms you as much as it does me, let’s get together and take action! We need a groundswell of support. We need letters to the government and support from the media. We need outrage by the very people who are not being protected to force the government into taking real action which once and for all creates the regulation within which these companies and advisers must operate. And, we need it now!
(note: some advisers have taken the trouble to become members of the not-for-profit industry association, PIPA and complete a diploma-level course. For now you can go a small way toward protecting yourself by asking questions about those you go to for assistance, and making sure that at the very least they are members of an industry association AND have completed adequate educational courses.)
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News. She is the founder of <a target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny </a>
 
 
 
 
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mlomas-KC9MUPZ6Ca

Alarmingly, there is no governance whatsoever surrounding the property investment industry

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Australian houses are not overvalued, according to a report into the current state of housing and mortgages by investment bank Credit Suisse.
The report questions the likelihood of a house price crash and says households can manage their debt obligations. 
Australian houses appear to be fully priced according to the authors of the report, analysts Jarrod Martin and James Ellis along with Omkar Joshi.
They base this view “on a range of usual metrics for assessing house price levels”, including house prices to income, house prices to rents, house prices to GDP, per capita value of the housing stock to household income
The report notes that housing affordability has deteriorated.
However it questions the argument that an improvement in the ratio of income to house prices will be achieved through a “a sharp and disorderly retracement of house prices” (a house price crash) rather than a “slow re-balancing of this ratio through real house price erosion or flat nominal house prices combined with on-going growth in household income”.
Click to enlarge
<a href="/images/stories/csmay234.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/csmay234thumb.gif"></a>
Source: Credit Suisse
According to Credit Suisse, Australian household leverage is relatively high in both an Australian historical and in an international context – above that of both the <country-region>US</country-region> and <country-region><place>UK</place></country-region>.
Click to enlarge
<a href="/images/stories/csmay235.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/csmay235thumb.gif"></a>
Source: Credit Suisse
However, it notes that as the RBA has previously stated household debt in <country-region><place>Australia</place></country-region> is mainly held by higher income households, with households in the top two income quintiles holding almost three-quarters of household debt. 
While the report says there is a risk that the relative resilience of Australian house prices will not be sustained in the future, it says there are “numerous arguments” cited as to why Australian house prices “are (and presumably should be) relatively high by international standards”. 
Some of these include: 
<ul>
<li>Australia is a highly urban society by international standards with a cultural preference towards living close to central business districts / coastal cities (limiting desirable land area in an otherwise large land mass country) such that Australia’s capital city house prices to income ratio is comparable with coastal city metrics globally; </li>
</ul>
<ul>
<li>Australian housing stock is relatively of high quality in nature and both relatively large and land-intensive by international standards; </li>
</ul>
<ul>
<li>the supply of housing stock in <country-region><place>Australia</place></country-region> has been excessively constrained in long-term by land zoning and development restrictions (concurrently in some recent years by accelerating population growth); and </li>
</ul>
<ul>
<li>the Australian taxation system is unusually generous with respect to residential dwelling investment, reinforced by a cultural personal investment bias towards the residential real estate.</li>
</ul>
Due to Australian banks being so heavily exposed to the residential lending market (<a href="https://mail.privatemedia.com.au/exchange/cknowlton/Inbox/wednesday%20flicker%205%20http:_xF8FF__xF8FF_www.mcgrath.com.au_xF8FF_buy_xF8FF_house-mermaid-beach-qld-4218_xF8FF_152394.EML?Cmd=openhttps://www.propertyobserver.com.au/mortgages/dark-cloud-risk-for">59% of bank loans are residential mortgages</a>), Credit Suisse says there is a strong connection between house prices and financial stability, noting “house prices have the scope to create financial system instability, and financial crises have scope to exacerbate house price declines”. 
But it says factors in favour of a stable mortgage and housing market include the overall strength of the macro economy and an apparently “increased consideration of house price inflation in RBA monetary policy deliberations in the wake of the financial crisis” and the extent to which “mortgage interest rate changes are being undertaken outside of cash rate changes”. 
It also notes the stable rates of home ownership in recent years in <country-region>Australia</country-region> compared with rising home ownership rate in the <country-region><place>US</place></country-region>, “widely seen as a factor exacerbating the subsequent delinquencies crisis”.
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