Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

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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