Family-owned builder and developer <a href="https://www.apartments.com.au/developers/omaya">Omaya</a> is bringing its 27-storey The Maybelle development to market, with the 229-apartment tower rising alongside Ismay Reserve near North Strathfield.

<a href="https://www.apartments.com.au/new-apartments/the-maybelle-21-parramatta-road-homebush-nsw-2140">The Maybelle</a> will comprise one, two and three-bedroom apartments, with its height providing elevated outlooks towards the Sydney skyline and Harbour Bridge, while other residences will look across neighbouring Ismay Reserve.

Designed by <a href="https://www.apartments.com.au/architects/squillace-architects">Squillace Architects</a>, the tower combines its parkside setting with proximity to the established retail, dining and transport amenity around North Strathfield.

[smartcode_project:default project_id=134873 project_image_fid=376196]

Residences will feature open-plan living spaces and a choice of two interior schemes, while communal amenity is spread across two elevated levels of the building.

Level 8 will be home to the Garden Pavilion, a full-floor resident space incorporating communal entertaining and breakout areas, seating and recreation spaces. Further up the tower, a landscaped Sky Terrace on Level 14 will provide another communal area with panoramic views towards the Harbour Bridge and Sydney skyline.

At ground level, the development sits directly alongside Ismay Reserve, where lawns, walking paths, children's play areas, picnic spaces and recreational facilities extend the green space available immediately around the project.

[smartcode_project:default project_id=134873 project_image_fid=376194]

The Maybelle is also within walking distance of North Strathfield and the Bakehouse Quarter, which provides a mix of cafés, restaurants, shops and everyday services.

Existing rail and bus services provide connections across Sydney, while the future North Strathfield Metro and access to the M4 will add to the transport options available around the precinct. Walking and cycling routes also extend via Powells Creek towards Sydney Olympic Park and its sporting, entertainment and parkland precincts.

Families are also well positioned for access to a broad selection of established schools and education options across Strathfield and the surrounding Inner West.

[smartcode_project:default project_id=134873 project_image_fid=376181]

Omaya has operated in Sydney for more than 35 years, managing projects from acquisition and design through to construction and delivery. The family-owned company is both developer and builder of The Maybelle.

Apartments start from $560,000, with the development protected by 10-year Latent Defects Insurance.

Construction is well underway, with completion expected by the end of 2026 and move-in anticipated from Q1 2027.

[smartcode_project_cta:default project_id=134873]

Joel Robinson

The Maybelle brings 27-storey parkside tower to market near North Strathfield

Melbourne developer <a href="https://www.apartments.com.au/developers/pdg-corporation">PDG</a> has unveiled its vision for the former Water Tank Site in Ivanhoe, which would see it transformed into a thriving residential neighbourhood, complete with a 2000 sqm public park.&nbsp;

Delivered in partnership with <a href="https://www.apartments.com.au/developers/development-victoria">Development Victoria</a>, the proposal would transform the prominent corner of Bell Street and Upper Heidelberg Road into a connected community comprising two residential buildings, generous public open space and shared amenities.&nbsp;

The vision includes 287 one, two and three-bedroom apartments, with a minimum of 10 per cent allocated to affordable housing, alongside a 2,000-square-metre publicly accessible park featuring a children's playground, activity lawn, indigenous planting, timber climbing logs, seating areas and a rock gathering circle.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/dko-architecture">DKO Architecture</a>, the proposal draws on the site's industrial heritage, using a robust architectural language that references the former water tank through expressive structural elements and durable, self-finished materials.&nbsp;

Extensive landscaping has been woven throughout the development, creating a living landscape that strengthens connections to nature while responding sensitively to the surrounding neighbourhood. Two residential buildings ranging from three to 12 storeys are linked by a landscaped forecourt, creating a welcoming arrival experience and improving pedestrian connections through the site.&nbsp;

Residents would also enjoy more than 1,000 square metres of communal open space, including barbecue and dining facilities, vegetable gardens, landscaped seating pavilions and a dedicated coworking space.&nbsp;

PDG Founder and Managing Director Vince Giuliano said the vision reflected an opportunity to transform one of Ivanhoe's most recognisable sites into a place that balanced housing, community and landscape.&nbsp;

"This is an opportunity to reimagine an important site and create a neighbourhood that delivers lasting benefits for Ivanhoe," Giuliano said.&nbsp;

"We're creating much more than new homes. The vision brings together affordable housing, quality architecture, meaningful public open space and shared places that encourage people to connect, while respecting the site's history and its place within the local community."&nbsp;

Development Victoria’s Executive General Manager Precincts, Niall Cunningham, said the application is an important step for the government-owned site.&nbsp;

“This is about delivering more homes in a well-connected location, along with public open space that the Ivanhoe community will benefit from for years to come,” Cunningham said.&nbsp;

PDG was selected as development partner in late 2025 following a competitive tender process.&nbsp;

A planning submission for the project is currently being progressed through the Victorian Government's Development Facilitation Program, with positive early engagement from both Banyule Council and the Department of Transport and Planning.

PDG unveils plans to transform landmark Ivanhoe Water Tank Site

Shane Wilkinson's <a href="https://www.apartments.com.au/developers/pace-development-group">Pace Development Group</a> has lodged plans for a major residential precinct on the former Presentation College site in Windsor, with an eight-building masterplan ultimately rising to 10 storeys.

The proposal at <a href="https://www.apartments.com.au/new-apartments/167-dandenong-road-windsor-vic-3181">167–187 Dandenong Road</a> spans a substantial 19,027 sqm site and is being progressed across six stages, with the first residential stages comprising 170 homes across four buildings designed by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>.

Stage Two will deliver the bulk of the initial housing, with Building A comprising 81 apartments and Building B 49 apartments, both rising to six storeys.

Stage Three will deliver a further 40 homes. The heritage Nagel Building, identified as Building C, will be converted to 12 dwellings, while a new five-storey Building D will comprise 28 apartments at the Hornby Street and Dandenong Road corner.

The 170 homes across Stages Two and Three will include a mix of one, two and three-bedroom apartments, including townhouse-style dwellings.<img alt="First look: Pace plans landscaped housing precinct on former Windsor school site" data-entity-type="file" data-entity-uuid="83c56e3e-dfb9-4e12-b172-c3f18513ec32" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_9.png?VersionId=xRcRpSZsxX.UX_NDDGcRZktw7HVrzx7u" />

&nbsp;

The longer-term masterplan points to considerably greater density across the site.

Indicative plans show Building E accommodating around 80 dwellings across up to 10 storeys, while Building F is earmarked for around 120 dwellings and also up to 10 storeys. Building G is planned to range between four and 10 storeys, however its apartment yield is yet to be determined. That means the masterplan currently identifies at least 370 dwellings across Buildings A to F before any apartments within Building G are counted.

Across the 1.9-hectare site, that represents an indicative density of at least 194 dwellings per hectare, with the final figure to increase once the yield of Building G is established.

Pace is pursuing the project through the Victorian Government's Development Facilitation Program, with Urbis lodging a combined Section 96A planning scheme amendment and planning application on behalf of the developer, which secured the site earlier this year.

The application seeks detailed approval for Stages One, Two and Three, alongside approval of the broader masterplan framework that will guide the later residential stages. Stage One will see an existing heritage building adaptively reused for a wellness and fitness-related facility, while the broader precinct will retain several significant heritage buildings and established trees as part of the redevelopment.

A minimum 10 per cent affordable housing contribution is proposed across both the initial residential stages and the later masterplan stages, delivered through a discounted rental model.

The project comes immediately after a major change to the site's planning controls.

The site was rezoned to the Housing Choice and Transport Zone through Planning Scheme Amendment GC285, gazetted on July 22, 2026, and now sits within the inner catchment of the Windsor Station precinct under the State Government's Train and Tram Zone Activity Centres Program.

While the new controls identify large sites within the inner catchment for buildings of up to six storeys, Pace's masterplan pushes height to 10 storeys in parts of the site, with the taller buildings concentrated toward the centre and along the Sandringham railway corridor.

Lower-scale built form is proposed toward the site's more sensitive residential and heritage edges, with Buildings A and B generally stepping from three storeys at their interfaces to six storeys at upper levels.

Cera Stribley's masterplan breaks the development into a collection of separate buildings rather than a continuous built form, with landscaped spaces, new pedestrian links and a new publicly accessible road forming part of the precinct.

The planning report says the development will create new pedestrian connections to Elm Place and along the railway corridor, as well as a new publicly accessible road linking Elm Place with Dandenong Road. The proposed buildings will occupy around 54 per cent of the site, leaving a substantial portion available for landscaping, communal areas and permeable surfaces.

Urbis said the scale of the project reflected the site's strategic location close to Windsor Station, tram services and the Chapel Street Activity Centre, with the former school campus identified as a significant opportunity to increase housing supply on an underutilised inner-Melbourne site.

&nbsp;

First look: Pace plans landscaped housing precinct on former Windsor school site

<a href="https://www.apartments.com.au/developers/jl-place">JL PLACE</a>'s Veil Brighton is approaching its final months of construction, with the nine-townhouse development at 17 Rooding Street expected to complete in December 2026.

The milestone is bringing the boutique project closer to becoming a finished part of the <a href="https://www.apartments.com.au/developments/brighton-vic-3186">Brighton</a> streetscape, with much of Brighton's everyday amenity within a short walk.

Palace Cinema, Coles Supermarket and North Brighton Station are all around five minutes on foot from <a href="https://www.apartments.com.au/new-townhouses/veil-brighton-17-rooding-street-brighton-vic-3186">Veil</a>, alongside numerous cafés, restaurants and bars. The station provides a direct rail connection toward Melbourne's CBD, while Bay Street and the wider Brighton retail and dining network add to the range of services accessible without relying on a car for every trip.

"The location was fundamental to the project. Brighton is an established suburb where many buyers already have strong connections to the area and want to remain close to the people, places and amenities that form part of their everyday life," the developer said.

"Veil sits in a highly walkable part of Brighton, with a Walk Score of 90/100."

For buyers looking to right-size within Bayside, that level of walkability adds to the appeal of a more manageable way of living. Everyday shopping, dining, entertainment and public transport can be accessed without relying on the car for every trip, while residents remain connected to the places and routines that make Brighton familiar. It allows buyers to simplify day-to-day life without giving up the convenience, amenity and connections they already value.

[smartcode_project:default project_id=7877 project_image_fid=355754]

As completion approaches, the architecture, landscaping and material palette are progressively becoming visible on site, giving prospective purchasers a clearer view of the finished development beyond its plans and renders.

Veil comprises nine townhouses, predominantly three-bedroom homes with between 2.5 and 3.5 bathrooms, two car spaces and, depending on the residence, study areas and private outdoor space. Selected homes include a bedroom on the ground floor.

Veil occupies a middle ground between detached housing and apartment living, retaining private gardens, storage and secure parking within a more manageable residential format.

<a href="https://www.apartments.com.au/architects/schmidt-pang-architects">Schmidt &amp; Pang</a> designed the architecture around natural light, ventilation, privacy and practical use of space. From Rooding Street, the façade has been composed to read as a cohesive residential building rather than nine individual townhouses, with landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick Landscape Architects</a> integrated throughout the site.

Inside, natural stone, oak flooring, integrated joinery and brushed nickel finishes establish a restrained material palette, while kitchens include Miele appliances and substantial storage such as pantries. Walk-in robes and dedicated study spaces have also been incorporated across the collection.

[smartcode_project:default project_id=7877 project_image_fid=355852]

The project team said the planning of the homes has been informed by how the spaces function for both daily routines and larger gatherings.

"Our new homes owners at Veil have enjoyed the attention to detail in creating efficient layouts that use every space well. Hosting Christmas lunch and large family gatherings is an ease when care is taken to consider how people really live and entertain."

Private landscaped gardens extend the living spaces outdoors, while secure basement parking and bicycle parking are provided below. The homes have also been designed to achieve a 7-star energy rating, supported by double glazing, high-quality insulation, natural ventilation, LED lighting, water tanks and water-efficient fittings. Each residence is backed by a 10-year building guarantee.

Veil is being built by <a href="https://www.apartments.com.au/builders/jeniton">Jeniton</a>.&nbsp;Limited-time stamp duty savings are also currently available on selected purchases at Veil, adding another consideration as the project moves toward completion.

[smartcode_project_cta:default project_id=7877]

Veil Brighton nears completion in one of the suburb's most walkable pockets

<a href="https://www.apartments.com.au/developers/mosaic-property-group">Mosaic Property Group</a> has recorded 134 sales worth just over $400 million in two months of pre-release activity at The Riversdale, as the developer brings its $750 million South Brisbane riverfront project to the broader market.

The sales represent more than 60 per cent of the project's 213 apartments, with Mosaic reporting the majority of purchasers have been local owner-occupiers and downsizers.

<a href="https://www.apartments.com.au/new-apartments/the-riversdale-by-mosaic-south-brisbane-91-montague-road-south-brisbane-qld-4101">The Riversdale</a> will rise 39 storeys from its north-facing site at 91 Montague Road, delivering a mix of two, three and four-bedroom apartments alongside a collection of Mosaic's premium Masterpiece Series Sky Homes.

[smartcode_project:default project_id=151614 project_image_fid=371872]

The early buyer response comes ahead of the wider evolution of the northern end of Montague Road, where The Riversdale will be one of the first major residential projects delivered within an emerging riverfront precinct.

Directly adjoining the development is a planned 7.1-hectare mixed-use precinct, set to introduce new residences, parkland and public realm along the river's edge. The Riversdale's position directly on the Brisbane River gives it a relationship with the waterfront that Mosaic says cannot be replicated by future buildings within the precinct.

The site is also the result of a years-long pursuit by Mosaic. The developer first earmarked the <a href="https://www.apartments.com.au/developments/south-brisbane-qld-4101">South Brisbane</a> property in 2018, reflecting what Founder and Managing Director Brook Monahan has described as a deliberately patient approach to acquiring development sites.

[smartcode_project:default project_id=151614 project_image_fid=372083]

"We aren't opportunistic," Monahan previously told Apartments.com.au.

"Every site purchase is carefully considered. As seen with Kangaroo Point and South Brisbane, it can take years to eventuate. There are sites we're looking at now that we may not secure for several years."

Designed in collaboration with <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau Proberts</a>, The Riversdale has been shaped around the qualities of the riverfront site, with apartments oriented to capture northern light and uninterrupted Brisbane River views.

Generous floorplans and expansive balconies extend the living spaces towards the river, while natural materials and a restrained interior palette have been selected with longevity in mind.

[smartcode_project:default project_id=151614 project_image_fid=371890]

Residents will have access to a level of amenity more commonly associated with world-class hotels and private members' clubs, with almost 3,000 sqm dedicated to wellness, connection, recreation and everyday convenience.

At ground level is a business lounge, private meeting rooms and dedicated workspaces. Mid-tower is a wellness sanctuary featuring magnesium hot and cold plunge pools, sauna, steam room, infrared therapy facilities, a Pilates and yoga studio, and a commercial-grade gymnasium.

Crowning The Riversdale is a rooftop featuring a 35-metre swimming pool with lap lane and spa, outdoor dining and seating terraces, firepit lounges and views of the city, river and Mount Coot-tha.

A private members' club-inspired retreat offers private dining rooms, a whisky lounge, media rooms and immersive entertainment experiences. Completing the amenity offering are two hotel-style guest suites and a resident-exclusive electric vehicle fleet and car-share program.

[smartcode_project:default project_id=151614 project_image_fid=371877]

The Riversdale sits at the northern end of Montague Road between South Bank and West End, around 1.3 kilometres from the Brisbane CBD, providing access to the city's major cultural, dining and recreation precincts.

It becomes Mosaic's largest Brisbane project to date and adds to a pipeline already under construction across the city.

In Brisbane, the developer is currently delivering The Bedford and The Carter at Kangaroo Point, both of which are approaching sell-out, with a further four projects being delivered on the Gold Coast. Mosaic has completed more than $2 billion in projects since 2012 and has a further development pipeline exceeding $2 billion across South East Queensland.

Early works are underway at The Riversdale, which will be delivered by Mosaic's in-house construction division. Completion is anticipated in late 2029, with remaining apartments priced from $1.98 million.

[smartcode_project_cta:default project_id=151614]

Mosaic records more than $400m in two months at South Brisbane's The Riversdale

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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GUEST OBSERVATION
With interest rates at or near-record lows and the recent release of the 2015 Australian government Intergenerational Report, people nearing retirement may well be evaluating their retirement investment decisions.
Retirees who invest in increasingly conservative assets, such as reallocating their capital from equities to bonds and/or cash, are under threat. If current low bond yields and cash rates persist, which looks likely, the lifecycle method of investing, with all its benefits, will fall short in meeting retirees’ income needs.
Lifecycle investing is the conventional idea of allocating capital into risky assets (equities) during your working life and then de-risking your super savings into more conservative assets (bonds and/or term deposits) as you approach retirement.
A glidepath is the relationship between a fund’s asset allocation and an individual’s age. While equity investment do not typically fall to zero at retirement for lifecycle strategies, many advisors justify the concept of a declining equity glidepath on the basis that retiree’s horizon decreases with increasing age.
Put simply, the young investor is assumed to be able to accept more risk than the older investor. Hence the young investor should invest a large proportion of their savings in equities at the onset and gradually reduce the allocation to equities over time.
Although recent studies suggest otherwise, financial planners are resolute in reducing their clients’ asset allocation in equities when their clients approach retirement. Why? Because it seems right! Conventional thinking suggests that retirees with a moderate nest egg will look to protect their savings in retirement and deploy their lifetime savings in low risk investments.
A big challenge to the lifecycle strategy in an era of low interest rates is accumulating enough lifetime savings to fund your longevity risk. This is the risk of individuals living for an unusually long time and thereby outliving their retirement incomes.
In Australia, many funds use the Strategic Asset Allocation (SAA) framework as a default investment strategy. This strategy is representative of the optimal combination of different asset classes. These assets are periodically rebalanced to the target allocations as investment returns skew the original asset allocation proportions.
With the masses of Australians paying their Superannuation Guarantee (SG) into their fund’s default strategies, the Australian government introduced a cost-effective product called <a href="https://www.apra.gov.au/Super/Publications/Documents/20141002_MySuper_selected_feature_overview.pdf">MySuper</a>.
There are currently 116 MySuper products, 88 of which have a single investment strategy with the remaining having a lifecycle investment strategy. The static strategy has up to 49% of assets invested in equities while the lifecycle strategy holds approximately 31% of wealth in growth assets (equities) at retirement age 65 and the remainder in conservative assets.
<a href="https://aatheory.blogspot.com.au/2007/12/dynamic-allocation-strategies-for">Research</a> has shown that the SAA outperforms portfolios with decreasing asset allocations in equities. More importantly, <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2324930">recent studies</a> find evidence to support an increasing (that’s correct, increasing) asset allocation to equity investments in retirement which challenges the conventional thinking in the financial planning profession.
The increasing equity glidepath has the potential to reduce both the probability of failure and the magnitude of failure for investment portfolios. The idea of an increasing equity glidepath in retirement may present some concerns for retirees from a risk tolerance perspective, and therefore require a very meticulous approach.
<a href="https://www.mercer.com.au/content/mercer/asia-pacific/au/en/newsroom/white-collar-workers-killing-average-life-expectancies">Life expectancy</a> among Australians is among the highest in the world today. Retirees have elongated life expectancies of up to 86 and 90 for males and females, respectively. There is a 15% chance that one person of a retired couple will live past the age of 95.
Some 20% of white collar male and females are now expected to live to age 94 and 96, respectively. And 5% of the male white collar cohort will live to age 99, with the females living beyond 100. These statistics suggest that if you’re planning to retire at 65, you potentially face a very long retirement period which you will need to fund. The current world of low interest rates means retirees investing in safe assets risk facing financial ruin over long retirement horizons.
These low interest rates in today’s financial markets may be the “nudge” financial advisors need to address the issues of longevity risk. One proven method is to consider these new equity-focused investment strategies that exhibit a higher probability of investment success. Although the past is not necessarily indicative of the future, it is illustrative for risk purposes.
Strategies that follow the concept of de-risking with increasing age under-performs <a href="https://www.researchaffiliates.com/Our%20Ideas/Insights/Fundamentals/Pages/F_2012_Sep_The_Glidepath_Illusion.aspx">contrarian strategies given 141 years of historical data</a>. When we lower our expectations and live in the present, with low yields and market uncertainties, the outcomes do not change. Equity-centric strategies perceived to be riskier provides more certainty with retirement outcomes.
The eminent economist John Maynard Keynes famously said, “When the facts change, I change my mind. What do you do, sir?” From a retiree perspective, when bond/cash yields change, let our investment and retirement advice change along with it.
Osei K. Wiafe is research fellow, Griffith Centre for Personal Finance and Superannuation (GCPFS) at Griffith University.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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po-LsXgBTHBmX

Low interest rates set to stay, so what’s the best investment course for retirees? Osei K. Wiafe

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GUEST OBSERVATION
My most read and commented on blog was <a href="/news/i-d-rather-stick-a-fork-in-my-eye-than-buy-nras-todd-hunter">my thoughts on the NRAS “scheme</a>”.
Well, I can say I was right and the story of this “scheme” only gets worse I’m afraid.
Earlier this year I had a client call me and let me know her NRAS property in Sydney that she purchased through another property company had been trashed. She only found this out after not receiving rent for two months. This sparked her to inspect the house to find they had fled the house and left it damaged along with rubbish everywhere.
When she investigated it further, she found that four bedroom house had eight people living in the house. The lease agreement was only approved as having four people living there. The consortium managing the property had not done any of the required property inspections, like they had said they would do.
And funny enough, they now don’t return her phone calls.
So after spending several thousands of dollars in repairing and cleaning the house, they thought they may want to sell it. The bad experience had put a foul taste in their mouth. I offered to refer her to a friend who is an agent, who works in the area and they have done an inspection. Now the fun begins…
The agent gave them what they believed to be fair market value price in a strong Sydney market and this dollar figure was still $80,000 less than what they paid for the house.
So, now they have a house that has been trashed, now vacant and worth far less than what they paid for it.
Could it get any worse?
Yes it can.
Now I don’t know the reasons why, but it would appear that the government department responsible for NRAS has amalgamated with another government department and as a consequence many (and quite probably all) of the tax refunds for NRAS were not paid for the last financial year, due to a software glitch that they couldn’t repair.
These payments amount to close to $10,000 per annum that the investor is supposed to receive back in compensation for letting out their property 20% below market value.
To make it even better, they have no ETA on when the problem will be fixed, if at all.
This was money these investors could have really done with to help pay for the trashed and damaged property they have been left with.
So I am sorry, but have I missed the positives of NRAS?
TODD HUNTER is a buyer’s agent, director and location researcher for Sydney-based <a href="https://www.wheregroup.com.au/" target="_blank">wHeregroup</a>.
He reached a personal investment portfolio of 50 properties in 2006 and has also started building an SMSF portfolio.
This article was originally posted on <a href="https://www.wheregroup.com.au/blog/todd-hunter/" target="_blank">Todd's blog</a>.
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thunter-umjjMzoT8b

NRAS – you've got to be kidding me: Todd Hunter

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The No Land Tax Party candidate Peter Jones is ahead of the Liberal Party in the race for the final of 21 seats up for grabs in the NSW Legislative Council.
The Daily Telegraph report the Coalition on track to win nine, Labor seven, the Greens two and the Shooters and Fishers and Christian Democrats one each.
The final results should be declared on Friday with the veteran ABC election analyst Antony Green saying he was “confident” No Land Tax will take the 21st seat.
If No Land Tax does win a seat for the next eight years, it would leave the ­Coalition with 20 of 42 upper house seats. 
The party secured the prime Group A spot on the long Legislative Council ballot.
It secured about 80,000 upper house votes with 70% of the vote counted, representing about 2% of the overall vote. 
The party, which went close to imploding in the days before the 28 March election, owes money to a large number of the 3,600 people who worked by handing out how to vote cards on election day. 
The promised wage delivery had been revised, yet again, to be undertake this week.
"I profoundly apologise," party candidate Peter Jones told 2GB's Ben Fordham.
The No Land Tax Party was initially throught to be in battle with the Animal Justice Party for the 21st spot, with the election result feared set to be challenged.
Due to human error, the Animal Justice Party was left off about 19,000 iVote ballots in the early pre-poll voting.
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jchancellor-FAypfDUnLy

No Land Tax looms as NSW Upper House policy gadfly

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Most of the debate surrounding so-termed "negative gearing" in Australia circles endlessly debating one point: were the rules regarding deductions to be quarantined again as they were previously in 1985, would rents increase at eye-watering growth rates?
<img src="https://2.bp.blogspot.com/-LekpHXdEyV4/VSebrNLNTaI/AAAAAAAAUYc/Fm6u0wlxNzg/s1600/VIc4.jpg">
In other words, are the existing rules an effective rental subsidy that are now pushing rental growth down below the rate of inflation. It's something of a hypothetical debate. Firstly that's because looking historically nobody knows the counter-factual (i.e. would rents have kept rising beyond 1987 had the rulings not been reversed?). And secondly, because to all intents and purposes there were no property investors in the lead up to 1985, so conditions today are completely different. In the year 1985 investor finance accounted for a miserly 13% of total housing finance, compared to a whopping 40% or a stonking <a href="https://petewargent.blogspot.com.au/2015/04/housing-finance" target="_blank">$139 billion of domestic investor finance</a> over the past 12 months alone. 
<img src="https://4.bp.blogspot.com/-6JnIgcfHRIA/VSeb36SW8dI/AAAAAAAAUY0/oK4u8WnVBU8/s1600/HF3.jpg">
I'm sure that nobody believes for a minute changes to the tax law would force rents higher in Kununurrra or Kurrajong, but research has consistently shown that there is a heavy concentration of investor-owned dwellings in the inner- and middle-ring suburbs of our largest capital cities - remove a portion of the rental stock in these locations and some increases in rents would be certain. Moreover, changes to the tax law would quickly undo the system which has succeeded in kick-starting the <a href="https://petewargent.blogspot.com.au/2015/03/building-approvals-smash-record-high" target="_blank">greatest residential building boom</a> in Australia's history, which will soon result in an oversupply of dwellings in at least six of our capital cities, and possibly eight of them. <img src="https://2.bp.blogspot.com/-c7hq4qdu59o/VPUtgH00IUI/AAAAAAAATfQ/HYH30ROsgMA/s640/Approvals3.jpg"> With a nascent boom in residential construction now underway and home starts <a href="https://petewargent.blogspot.com.au/2015/01/record-high-for-dwelling-commencements" target="_blank">breaking record highs</a>, the tax law won't be changed because it's creating the supply that's needed, estimated at more than 180,000 dwellings per annum. Budget impacts
The rents argument is a sideshow in any case. It's often also argued that negative gearing rules should be scrapped in order to "save" $4 billion from the budget and $2 billion per annum going forward but this is a flawed notion.
Between 1985 and 1987 the numbers on the New South Wales housing waiting list reportedly increased alarmingly by almost a third from fewer than 110,000 up to nearly 140,000 in only 18 months, a trend which was immediately reversed upon the re-introduction of the previous ruling on interest deductions.
In Britain, approximately 17% of households live in social housing. The problem in Australia is that at a measly 4.5% of total housing stock, public housing "cannot provide a realistic alternative to a private rental market for existing homeowners" - AHURI's 2010 <a href="https://www.ahuri.edu.au/publications/projects/p40561" target="_blank">report</a> on the future of public housing explains in detail the many reasons why:
"Through the stimulus package, the Commonwealth put $6 billion on the table to build 20,000 houses. That’s lovely. But the shortfall in social housing is 160,000 dwellings. So either they find another, whatever that is, another $50 billion - no way!".
Other estimates put the shortfall at up to 200,000 dwellings, and without adequate additions the social housing shortfall can only get worse.
<img src="https://4.bp.blogspot.com/-GB5kSEgYZoc/VShKLsYGTEI/AAAAAAAAUZY/A_AO-ngvJ84/s1600/AHURI.jpg">
Source: AHURI
As highlighted in AHURI's report, with Commonwealth and state elections held in 3-year cycles, committing large amounts of money for long-term capital housing investment is seen to be risky for politicians. It's just not going to happen. And indeed, there is no intention of addressing underfunding of the sector, with core funding declining in real terms by 26% between 1996 and 2008. Confirmed the AHURI report "there is no way that Commonwealth or state governments are going to kick-in capital funding which is going to enable social and affordable housing to grow at 2% per annum". Australia is projected to have <a href="https://petewargent.blogspot.com.au/2015/03/43-million-more-households-by-2036" target="_blank">4.3 million more</a> households in the 25 years to 2036, and (and<a href="https://petewargent.blogspot.com.au/2015/03/aussie-investing-until-2055" target="_blank">millions more</a> by 2055, particularly <a href="https://petewargent.blogspot.com.au/2015/03/big-australia-to-give-way-to-huge" target="_blank">if my assumptions on population growth are proved correct</a>) so the total demand for rental accommodation will be beyond huge. 
<img src="https://1.bp.blogspot.com/-ag1ZbNZWc3Q/VSitV8CD1LI/AAAAAAAAUZs/cJOsx22Ue9Y/s1600/AHURI2.jpg">
Source: AHURI
As I will discuss below, the solutions can only come from private individual and offshore investors, with upwards pressure on prices encouraging more construction, which is exactly what is playing out right now. 
Case study: Public housing in Victoria
Having been the subject of an <a href="https://www.audit.vic.gov.au/publications/20120328-Public-Housing/20120328-Public-Housing" target="_blank">audit</a> in 2012, public housing in Victoria is worthwhile case study. In my living purgatory as an auditor I wrote seemingly endless reviews and reports for Central Banks, Treasuries, Ministries of Finance, Government Finance Departments and the like - the reality is that such reports in draft form often promise to be somewhat spicy, but after internal reviews and by the time final reports are issued the recommendations tend to be watered down and uncontroversial. I don't think I've seen many more damning auditor reports than the one issued by the Auditor-General to the Legislative Assembly on the subject of "Access to Public Housing".
The main source of social housing in Victoria is public housing, yet as at the audit date there were fewer than 83,000 social housing dwellings in Victoria, 65,352 of which were public housing, owned and managed by the Department of Human Services (DHS).  Victoria's population, meanwhile is <a href="https://petewargent.blogspot.com.au/2015/03/help-commentary-on-demographics-and" target="_blank">rapidly approaching 6 million</a> and counting.
<img src="https://1.bp.blogspot.com/-gcUpwdaGmkk/VRPWXczZb7I/AAAAAAAAT-M/AWfaCu1AmRE/s640/Dem4.jpg">
The chart below shows those 65,253 public housing dwellings by type and location at 30 June 2011.
<img src="https://1.bp.blogspot.com/-mQRMvvwP1RI/VSebrJYBj0I/AAAAAAAAUYU/zR_qakFZrGc/s1600/VIC1.jpg">
Source: Auditor General 
A $17.8 billion property portfolio, housing around 127,000 Victorians, noted the auditor, requires “informed, cohesive and comprehensive asset management”, but condemningly the audit found no such systems in place. Here are four reasons that public housing is not a viable alternative to the provision of rental stock by private investors. 
This article continues on the next page. Please click below.
<hr class="system-pagebreak">
Reason one - The public housing financial model is unsustainable
The situation for public housing was found by the auditor to be “critical” and public housing’s operating model “unsustainable”.
Funding for the division in 2011–12 was $402 million, with set aside $169 million for social housing activity, and the audit found that the operating model for public housing, with costs comfortably increasingly exceeding revenues, to be unsustainable. 
The review found that in 2011 operating costs exceeded rental revenue by a thumping 42%, up from 30% in 2002. The review further forecast that the division's deficit would more than double from $56 million in 2011 to $115 million by 2015 and that all cash reserves would be exhausted by within two years.
<img src="https://1.bp.blogspot.com/-mbA3FPTqdHg/VSebr1fo_1I/AAAAAAAAUYg/fAUj9uATIRk/s1600/Vic2.jpg">
Source: Auditor General
The division’s short-term strategies to address its financial position had only deferred and compounded the problem using short-termist band aid solutions to address its dire financial situation.
Such short-term solutions included the reduction of stock acquisitions, the deferring of preventative maintenance, and funding deficits by utilising cash meant for long-term programs - which only compounded the issue, particularly the growing maintenance liability.
While rent and other property income had increased by 7% (in nominal terms by $24 million between 2007 and 2012), operating costs had spiralled by 27% or $92 million in nominal terms over the same period.
Reason two - Public housing stock is grossly inadequate and under-supplied
The Auditor-General found that demand for public housing had easily exceeded supply over the preceding ten years - the cost of living and household numbers had increased and the availability of affordable housing had decreased. 
The demand for public housing is measured as the number of households that have applied for public housing and are on the public housing waiting list.
The audit found that as at 30 June 2011 there were more than 38,000 households on the waiting list – and once applicants are approved for public housing, they still have to wait to be housed. 
In 2009–10, applicants who had received a priority allocation waited an average of 8.5 months for housing, and non-priority applicants wait several years. 
Reason three - Public housing stock is grossly mismatched
The tenant profile of public housing has changed substantially over time.  Large estates built in the 1960s were intended for working families on low to moderate incomes as a transitional measure before moving into private housing. Most properties were accordingly built to meet the needs of families as opposed to an increasingly single and older tenant group.
Today, however, public housing now serves an increasing proportion of elderly, single and economically and socially disadvantaged tenants.
Thus the need for one-bedroom dwellings has increased dramatically while the need for larger dwellings has decreased. The chart below shows the mismatch between public housing stock, and demand as reflected by the public housing waiting list.
<img src="https://4.bp.blogspot.com/-AOPBSIO7JD4/VSebrPFmwMI/AAAAAAAAUYY/oOr3pbg_uxo/s1600/VIC3.jpg">
Source: Auditor General
Unfortunately, legislative, regulatory and policy settings prevent authorities from actively trading public stock to help finance necessary dwelling upgrades (or from expanding stock levels by changing the mix of densities, dwelling types and locations to match the needs of target households). As was shown in the above graphic, at the audit date it would have required almost 100% turnover of households in one-bedroom properties to meet waiting list demand, as compared to only 25% for three-bedroom properties. The National Housing Supply Council projected that the demand across Australia from older householders for single households would increase from 86,500 to 189,800 between 2010 and 2029.
Reason four - The quality of public housing stock is in sharp deterioration 
The public housing portfolio was found to be in a seriously deteriorating condition with the division estimating that 10,000 properties (or 14% of the total) would reach obsolescence over the following four years, and a significant mismatch of properties to tenant needs.
The asset base was found to be deteriorating awfully with 42% of housing stock being over 30 years old. Of course, properties of this age generally require more frequent and larger scale repairs, maintenance and upgrades. 
Yet the division was found not to have articulated any long-term objectives or plans at all for public housing.
A property portfolio approaching $20 billion in value housing 127,357 Victorians, requires an "informed, cohesive and comprehensive asset management system", but in fact no such systems were found to be in evidence.
In 2011 well over 14,000 dwellings (25%) had not been assessed for over three years, with 2,400 of those not inspected for over five years, in spite of the supposed divisional policy to assess all properties at least three-yearly.
The division also estimated that, due to limitations within the system, maintenance costs of $298 million across the portfolio were, on average, understated by a whopping 138% for each property.
The wrap
As concluded by AHURI, is very little optimism that public housing can or will play a significant role in the overall housing system, or contribute in any significant way to addressing the supply of affordable rental housing stock. Perhaps more importantly, there is no political will at all to invest in public housing. Private housing is all there is, and government policy has clearly concluded that the road ahead will necessarily involve incentives for Mum and Dad investors to provide rental accommodation. Institutional funds and the private sector won't touch the sector because rental returns are too low. Indeed the Treasury was approached with a request for investment from the Future Fund and the response was exactly that - the Future Fund will not invest in residential property because rental returns are too low. So if the private sector won't invest in rental housing because the returns are too low, and the Australian government won't invest its money there either, the only remaining alternative is to incentivise individual investors to do so. And that's why the negative gearing rules won't be squashed. 
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
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pwargent-M4siyDbqQY

Four reasons negative gearing won't be squashed: Pete Wargent

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GUEST OBSERVATION
The Reserve Bank of Australia’s (RBA) announcement to hold the cash rate for April at 2.25 percentage points could ease the increase in house and unit values over the next month. A market slowdown would allow greater purchasing power for first time home buyers in unaffordable housing markets.
The number of first time homebuyers taking out home loans has declined as a result of the recent housing boom, which saw more investors enter the market. This is supported by ABS data, which shows that home loans taken out by first time homebuyers have steadily decreased from 18.8% in 2012 to 14.9% in 2015.
Furthermore, according to ABS data, the size of the average home loan increased 1.07% between December 2014 and January 2015, to $346,600.
The decision to hold rates is partly attributable to Australia’s two-tiered housing market. According to <a href="https://Onthehouse.com.au" target="_blank">Onthehouse.com.au</a> data, at February 2015, Sydney experienced quarterly growth of 3.55% for houses, and 2.83% in units. These are down from the January quarter of 4.10% for houses and 3.04% in units, although they still reflect strong investor demand.
Despite Sydney’s strong performance, other markets, including Melbourne and Brisbane, saw contraction in property values at the end of the February quarter.
On the supply side of the housing market, February housing approvals were almost at a five-year high. In NSW, approvals for February 2014 totalled 4,692 dwellings, approximately 2,600 of which were units. Dwelling commencements in NSW, as last recorded in September 2014, were at a high of 14,063, which is a 43% increase in commencements from the previous quarter, and is 49% higher than the five-year average of commencements.
Dwelling commencements also increased in QLD and VIC, but at a lower rate. Nationwide, commencements hit a record high of 54,436, despite migration currently sitting below the five-year average. A further cut in the cash rate could have seen funds misallocated in a market where migrant and first homebuyer demand is in decline.
Overall, despite the benefits to first time homebuyers, the rate hold decision does come within a tricky economic climate for the RBA, where economic indicators have remained virtually unchanged for the previous period.
Some notable indicators include:
<ul>
<li>The unemployment rate decreased from 6.4% in January to 6.3% in February. However, this was coupled with a decrease in the participation rate from 64.7% to 64.6%, suggesting that the unemployment rate fell as people came out of the labour force, rather than finding work.</li>
<li>Annual wage price growth was at a five year low in the quarter ending December 2014, at just 2.5%. The December quarter also saw low inflation, which was last recorded at 1.7%.</li>
<li>Iron ore is currently at a 10 year low, at $US46.7 a tonne. Iron ore is expected to fall further as competitors amplify supply to win greater market share.</li>
<li>Oil prices seem to be stabilising following a significant decline since July 2014. Oil rose marginally in the latest trading session to $US53 per barrel. While the price is stabilising at approximately half the five-year average, Australians may no longer enjoy further discounts in the oil price. </li>
</ul>
Though the above factors call for a further cut in the cash rate, the hold is more about timing than tightening monetary policy. This month will reveal new quarterly inflation figures and employment data, which would allow more insight into the impact of February rate cuts. 
Eliza Owen is a market analyst at <a href="https://Onthehouse.com.au" target="_blank">Onthehouse.com.au</a>.
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The RBA April rate hold will benefit first time home buyers: Eliza Owen

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Michael Cameron, the GPT chief executive, has warned the office markets in Perth and Brisbane are moving into a "dangerous area".
"I think there is a sufficient oversupply of money looking for investment into Australia, and investment into Australian real estate, that some of the underlying problems associated with the demand from the resources sector are being overlooked," Michael Cameron told BOSS Magazine, the AFR publication.
"There's the potential for a continual level of overheating,"  he warned, followed by a "dramatic slowdown" in Perth and Brisbane. 
With the end of the resources investment boom, office vacancies in Perth and Brisbane have soared and rents weakened. At 1 January, nearly 15% of Perth CBD offices were empty and in Brisbane over 15%, according to the Property Council. 
Last month the Reserve Bank of Australia warned the risk in the commercial property sector had increased.
Cameron noted commercial property rents had dropped 30% in Perth in the past year compared with a 3% rise in Sydney and Melbourne.
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Perth and Brisbane office markets in dangerous space: GPT boss

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Claims have been made that the new Victorian Planning Minister Richard Wynne had been bullied by the trade union movement into knocking back the Spring Street apartment tower planned by Grocon in the Melbourne CBD.
Wynne acted against the advice of his department, according to claims by the opposition leader and former Planning Minister Matthew Guy.
Matthew Guy claimed the Construction, Mining, Forestry and Energy Union (CFMEU) bullied Richard Wynne to <a href="/news/victorian-planning-minister-richard-wynne-refuses-grocon-application-while-list-awaiting-approval-lengthens">refuse permission for construction of the 43 level tower at 85 Spring Street</a>.
Grocon has been locked in a state of fierce workplace relations war over several years with the CFMEU.
Guy said Wynne's decision had been made after his chief of staff met with union officials about the project.
“Dick Wynne needs to explain why he failed to take his own independent departmental advice and reject a project weeks after his staff met Grocon’s arch enemy the CFMEU,” Guy said.
The 335 apartment project in a sensitive area close to the Bourke Hill heritage zone was ruled as too high and too close to other buildings within the precinct.
Melbourne City Council had not been keen for permission to be granted.
Despite acknowledging on ABC radio that the union had raised its opposition to a CBD tower during a meeting with his chief of staff whilst he himself had been sick, Wynne denied any suggestion that the union had influenced the decision in any way, the website Sourceable noted.
“Any representations that the CFMEU may have made, they were in relation to a pipeline of works for their employees, and any suggestions that the CFMEU played any role in my decision-making is completely wrong and false,” he said.
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Matthew Guy accuses Richard Wynne of being bullied by unions over Grocon refusal

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Smart Property Investment magazine teamed up with three experts in June 2012 to pick 20 "inner city steals": suburbs where one in four units were selling for $300,000 or less.
CoreLogic RP Data's Cameron Kusher, Domain Group senior economist Andrew Wilson and SQM Research founder Louis Christopher ranked 20 suburbs within three kilometres of capital city CBDs based on their capital growth potential over a five year period.
At the halfway point of their time horizon, we've taken a <a href="/expert-insights/investing/looking-back-on-2012s-inner-city-steals">look back at the 20 suburbs</a> to see how they're faring.
We've picked the list's winners – the five suburbs which have displayed the biggest median unit price growth between June 2012 and the end of 2014. We've also identified the five biggest losing suburbs, where the median unit price was lower at the end of last year than it was in mid-2012. Note that any price growth or decline may not have been consistent over the 18 month period, and the percentage differences may display season variations.
<h3>The Winners:</h3>
<ul>
<li>Wayville, South Australia:</li>
</ul>
Median unit price in June 2012: $312,000 Median unit price at the end of 2014: $608,500 Price change: 95%
<ul>
<li>North Melbourne, Victoria:</li>
</ul>
Median unit price in June 2012: $390,000 Median unit price at the end of 2014: $495,000 Price change: 26.9%
<ul>
<li>North Hobart, Tasmania:</li>
</ul>
Median unit price in June 2012: $312,000 Median unit price at the end of 2014: $375,000 Price change: 20.2%
<ul>
<li>Kent Town, South Australia:</li>
</ul>
Median unit price in June 2012: $505,000 Median unit price at the end of 2014: $600,000 Price change: 18.8%
<ul>
<li>North Perth, Western Australia:</li>
</ul>
Median unit price in June 2012: $385,000 Median unit price at the end of 2014: $452,500 Price change: 17.5%
<h3>The losers</h3>
<ul>
<li>West Leederville, Western Australia:</li>
</ul>
Median unit price in June 2012: $385,000 Median unit price at the end of 2014: $452,500 Price change: -23.5%
<ul>
<li>Keswick, South Australia:</li>
</ul>
Median unit price in June 2012: $240,000 Last recorded median unit price: $202,500 Price change:-15.6%
<ul>
<li>New Town, Tasmania:</li>
</ul>
Median unit price in June 2012: $270,000 Median unit price at the end of 2014: $240,000 Price change: -11.1%
<ul>
<li>West Hobart, Tasmania:</li>
</ul>
Median unit price in June 2012: $330,000 Median unit price at the end of 2014: $317,000 Price change: -3.9%
<ul>
<li>Carlton, Victoria:</li>
</ul>
Median unit price in June 2012: $297,500 Median unit price at the end of 2014: $290,000 Price change: -2.5%
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jrichardson-uRX5hFdKfN

The 2012 so-called inner city "steals" winners and losers 

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As a buy-and-hold investor, I’ve come across tenants of all walks of life.
Bachelors, single mums, share-house friends, retirees, young families; I thought I’d had a taste of every type of tenant possible. But then I realised, this is incredibly naïve. The truth is the diversity of the rental pool at any given time is as limitless as the diversity we find in humanity. So, I recently had my own little ‘witching hour’ of property insight recently with one such tenant.
With over seven billion people living on planet Earth, there is a practically infinite volume of lifestyles that people can live, making for so many different types of tenants that one could attract to their property.
Today I thought I’d share one such ‘out there’ example.
I recently acquired a new investment property that very much added up for me. After much due diligence on the area itself, the property itself, and some crunching of numbers, I made the decision to purchase the property.
This decision was made despite the appearance of the property which was, how do I say it, a little ‘kooky’. Upon looking at the property ad online, the property clearly appeared to be inhabited by, well... a practicing 'witch'.
Some of the interior features included:
<ul>
<li>Gothic statues hung above the kitchen cupboards</li>
<li>Animal skin rugs, an Eastern European throne chair, hanging Native American dreamcatchers, and many, many candlesticks adorned the living area</li>
<li>Dolls, fairies, tepees, more dreamcatchers, a witch’s hat, and mystical elements appeared in the bedrooms</li>
</ul>
To most prospective buyers, the creepy appearance of this property would have been enough to turn them away. Clearly, the price of the property, which was slightly below market rate for such a property in the area, was compensating for this appearance.
But to the trained investor looking a little deeper under the surface of things can sometimes fruit some great surprises. Upon further investigation, I discovered that:
<ul>
<li>The appearance, whilst full of kooky knick-knacks, was pristinely maintained. Not a speck of dust, not a single mark on the tiles, the floors squeaky clean. Clearly this tenant went to a great deal of effort to make the property appear clean – at least for the sale.</li>
<li>Why did the tenant do this? Turns out that she has been living there for 10 plus years, and had no desire to move out anytime soon. She clearly treated the property like it was her own, owned home.</li>
<li>I also learned that the tenant had been OK with incremental rental increases (in line with market rate) over the years, another good sign for the investor.</li>
<li>The body corporate of the property checked out well, as did the building and pest inspection. The townhouse was in a small complex, at the back of the block, avoiding the noise of any nearby roads.</li>
</ul>
Sometimes the quality of a tenancy applicant, or a tenant you may ‘inherit’ when you take ownership of a property, needs to be judged beyond any perceptions you have about that person based on their lifestyle.
I couldn’t care less about what a tenant in my property does in their personal life, so long as they comply within the requirements I maintain when seeking a good tenant.
These things are:
<ul>
<li>On-time payment of rent always; and understanding/respecting the odd occasion when rental rates need to increase in line with the market</li>
<li>Not damaging the property and generally looking after it</li>
<li>Reporting malfunctioning appliances, or maintenance works required; as/when they come up</li>
<li>Respecting common property areas and neighbours nearby</li>
<li>(Ideally) looking to stick around for as long as possible</li>
</ul>
If you have employed a highly skilled and competent managing agent to look after your property then they are the ones to make the best guided ‘judgement call’ on the quality of any particular tenant.
At the end of the day, astute investors need to draw up a list of the things that actually matter when seeking quality tenants and look beyond initial perceptions when weighing up tenancy selection decisions.
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cmcevoy-Go82SmsJA9

My investment property witching hour: Cameron McEvoy

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New Savills research shows that London is the most expensive city in the world for businesses to relocate their employees.
Hong Kong and New York are not far behind. In all three cities, the provision of office and living space now costs more than $110,000 per employee, per year.
Sydney ranks ninth on the Savills Live/Work Index (see table below) which has been dominated by London, Hong Kong and New York since it was launched in 2008. 
It is the second time that London has reached the top slot, having toppled Hong Kong in 2014, the capital's live/work costs at $118,085 per year, are still some way off the record $128,000 per year set by Hong Kong in 2011.
The recent Live/Work Index also indicates that London costs have dropped 7.3% in dollar terms since 2014.
Meanwhile, Hong Kong and New York have closed the price gap with London, showing a drop of 2.3% and a rise of 1.1% respectively.
Further down the rankings, a strong economic recovery and rising commercial and residential rents are combining with the strong dollar to make north Amercan cities increasingly expensive.
San Francisco, in fifth position, has shown the biggest increase, with growth in rent and other real estate costs up 4.8% since 2014, and 55.1% since 2008. 
<div align="center"><img src="https://232.v3.savills-vx.com/_images/Relocation_4.jpg?1428443524.16361" alt="Live/Work Index" width="475" height="712"></div>
<div id="txt_03" class="vx_text">
Source: <a href="https://www.savills.co.uk/research_articles/186576/187068-0" target="_blank">Savills World Research</a>
</div>
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