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

Joel Robinson

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

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

&nbsp;

Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

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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At a time where it would seemingly be an unfortunate game of “free-for-all” in the real estate and property arena that has negative-compounding effects on the public, the question remains; what institution or governing body, should take centre stage and curve the unethical practices of many agents, by adopting and implementing higher standards in new-training curriculums, before issuing licenses? 
Will it be the Real Estate Institute NSW (REINSW) or should Fair Trading and NSW Government offices alone handle the accreditations and certifications? Perhaps it should only be handled by specialists groups that are privately owned. Bodies that are licensed and empowered by the respective State Government.
No matter what the right or wrong answer may be, one thing is clear: it is presently a free-for-all in training provided to upcoming would-be real estate agents, as it is in the same agent’s behavior in and on their field of practice. It appears the answer is not closer today than it was yesterday. 
The reason for this article continues to center around current practices followed by real estate agents. Behavior that stems from practices adopted by agents in falsely presenting property to market and to bait consumers. Also further alarming discoveries of property not being properly represented. I have heard of property that has sold for 10 percent it’s true worth under a “forced legal auction [campaign]” and this being one of many that warrants further investigation and an article of its own. 
Staying true to this article and not being tempted to discuss our findings about these forced auctions, as I’m sure they will also make a great piece to read later on over another coffee; allow me to briefly discuss the anomalies around our industry’s state of affairs when it comes to training.  
The Real Estate Institute’s role
Admittedly, very little is known about the level and standard of training provided by REINSW. The actual course is not dissimilar to any other certification or licensing course found outside its walls. 
One thing for sure is that there is a common thread occurring, as most of the recipients of allegations and accusations labeled at agents for bad and unethical behavior, are actually members of the REINSW themselves. So the question is, how many have been trained and licensed through the REINSW's classrooms?
Yet, it is the voice of the REINSW that mainly calls on reform and changes to education but it appears in their eyes this will work, only if they are in control of the course curriculum and standards. 
I find it difficult to see how organizations with so much to offer as a lobby group, want to corner the market in so called implementing “ethical-training” measures but only as they see it. I won’t even venture into notions of parliamentary representation as a political party which has come from my friends in office at the REINSW.
My question to REINSW is simple. What other industry organisations and lobby groups train and license the work force they represent? 
The NSW Government
It is no secret and we all understand that our NSW Government Institutions are sadly under-resourced and therefore unable to maintain what I thought was once a well-controlled and monitored training and licensing unit. 
It’s not to say they don’t provide the service through TAFE courses. Again sadly, with privatization, options that are more readily accessed are available and the latter being the path of least resistance to many wanting to enter the industry. It is a no brainer to guess, where the wannabe real estate agents obtain their accreditations from.
The Private Sector
Most of the private Training Facilitators I know are both ethical and provide rigid and structured programs. I say most but despondently not all. 
Sadly, I feel it is in this lack of oversight by the government that some private institutions run what may well be questionable programs and courses to license an individual to sell and manage, the most valuable assets people have. 
However, this oversight cannot be blamed entirely on the current system, again how can governing bodies run proper audits when they are understaffed? 
What I am aware off is this: an audit is conducted on a private facilitator once every 5 years.  Please do tell me how this does not dissuade operators from implementing free-for-all training programs with very little accountability? 
I do not have the answer to what is the ideal solution but: if the real estate institute wants to rule the nest in providing training, again I say clean out your own house before preaching to the masses. If the Private Training Facilitators is the answer, then the governing bodies should implement auditing measures that are less susceptible to low rate training practices. Finally, if the government is to resume control, perhaps it’s also time the Federal Government got involved and laid down the law. Legal requirements with more stringent penalties and levels of accountability and all, before licensing individuals to deal with major assets.  
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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Curbing the free-for-all mentality of the real estate industry: Edwin Almeida

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<div>No surprise that the Reserve Bank of Australia opted to leave interest rates on hold at 2% yesterday, preferring to "wait and see" how data flows play out in the months ahead.</div>
<div> </div>
<div>Not all that many surprises in the <a href="https://www.rba.gov.au/media-releases/2015/mr-15-11" target="_blank">media release</a> either in truth. </div>
<div> </div>
<div>Perhaps the most notable point was this:</div>
<div> </div>
<div>"The Australian dollar has declined noticeably against a rising US dollar over the past year, though less so against a basket of currencies. Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices."</div>
<div> </div>
<div>Although the Aussie dollar has touched a six year low against the US dollar at 74 cents, with commodity prices in an ongoing funk, the Reserve Bank wants to see further depreciation still. </div>
<div> </div>
<div><a href="/images/2015/07/08/audusd.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/07/08/audusd.jpg" alt=""></div>
<div> </div>
<div>
<div>Just how much further depreciation is open to interpretation, but given the strength of the wording one might safely assume that this means at least 10 per cent, and probably more.</div>
<div> </div>
<div>With the release also noting that "monetary policy needs to be accommodative" there is every chance that interest rates will fall again at some point within the next year.</div>
<div> </div>
<div>Futures markets are all but pricing in another cut over that time frame.</div>
<div> </div>
<div><a href="/images/2015/07/08/RBA.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/07/08/RBA.jpg" alt=""></div>
<div> </div>
<div>
<div>Asset markets</div>
<div> </div>
<div>The ASX 200 (XJO) surged by well over 100 points for no apparent reason to record its second strongest trade of the year to date.</div>
<div> </div>
<div>Another interesting development this week has been lenders tightening the screws further on investor loans.</div>
<div> </div>
<div>As of today Westpac - the Australian bank with the largest dollar amount of credit outstanding to investors - will reportedly apply a maximum 80 per cent loan to value ratio on its investment loans.</div>
<div> </div>
<div>This will make it comparatively more difficult for investors without substantial deposits to purchase property.</div>
<div> </div>
<div>To compensate we can expect that some lenders will instead encourage owner occupier loans, perhaps by dropping lenders mortgage insurance in some instances, or by dropping standard variable rates in others.</div>
<div> </div>
<div>The regulator APRA has evidently applied heavy pressure to banks and other lenders to slow the pace of credit growth to investors, and therefore the outlook for our property markets will shift accordingly over the period ahead.</div>
<div>
 With rock bottom interest rates all but assured through 2015 and 2016 we can expect to see a shallower but probably longer recovery in property markets, driven increasingly by owner occupiers.</div>
<div> </div>
<div>Another point of interest is that certain capital city markets have already been distorted by a steady flow of foreign capital, while simultaneously we also have a central bank which wants to depreciate the currency by a further 10 to 20 per cent. </div>
<div> </div>
<div>This may well be the action which opens the sluice gates...just sayin'.</div>
<div> </div>
<div>
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 latest book is <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>.
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No surprise from the RBA: Pete Wargent

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<div>Halifax released its House Price Index for the month of June 2015 which showed the average house price passing £200,000 for the first time.</div>
<div> </div>
<div>After a long slow recovery nationally, the average UK house price has also finally eclipsed its August 2007 peak.</div>
<div> </div>
<div>The index moved 1.7% higher in June to be up 3.3% over the quarter and 9.6% over the year.</div>
<div> </div>
<div>This represents a clear acceleration on the annual growth rate recorded in May of 8.6%.</div>
<div> </div>
<div><a href="/images/2015/07/09/UK.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/07/09/UK.jpg" alt=""></div>
<div> </div>
<div>
<div>Homes sales increased by 1% in the month of May to 98,540, despite a tight market.</div>
<div> </div>
<div>The housing shortage and population pressures in South East of the country continue to be major market drivers.</div>
<div> </div>
<div>Nationally the price per square metre has increased by 18% since 2010 from £1,179 to £2,010 in 2015, according to Halifax research.</div>
<div> </div>
<div>Unsurprisingly the strongest performing market on this metric since 2010 has been London (+45%) with the next best performing region being the adjacent South East (+22%).</div>
<div> </div>
<div>By comparison the North (+3%) and Scotland (+5%) have recorded very little growth over the past half decade.</div>
<div>
 Supply remains tight in the South East with rents in the Home Counties reportedly soaring by 5.4% in the six months to June 2015.</div>
<div> </div>
<div>While mortgage approvals dipped in the May, the seasonally adjusted three month rolling figures show approvals up by 6% on the three months to February result according to <a href="https://www.bankofengland.co.uk/" target="_blank">Bank of England </a>data.</div>
<div> </div>
<div>
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 latest book is <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>.
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UK house prices pass 2007 peak: Pete Wargent

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For what seams a long time we have been in the midst of a debate about the impact of offshore investment into our domestic residential property market, both private buyers and now increasingly developers. Revelations that FIRB regulations appear not to have been enforced for some years has as fuelled the idea that offshore buyers are driving up local prices and as a result locking some buyers, in particular first time buyers, out of the market.
However I think it’s important to acknowledge that this is not a new trend, offshore investment into Australia has been going on now for a very long time. Currently there appears to be a particular focus on Asian buyers, and this was a topic of a recent breakfast presentation I was involved in.
The breakfast presentation was hosted for a very interested audience by Coco Republic at their Sydney flagship store. The event has helped focus my views about this important debate, and so I am recounting some of the key points from that presentation.
There’s a Lot of Wealth in Asia
We need to remember that these buyers have very deep pockets, in some cases very deep and this extends to high net worth individuals (HNWI). While Asia is generally considered to rank third in number of HNWI after Europe and the USA, Asian numbers are growing rapidly, and will soon overtake the USA. Wealth also creates mobility and Asian buyers have always been happy to travel and invest in other countries, this mobility is often overlooked.
For these wealthy buyers as well as for a rapidly growing middle-class across the region, Australia is seen as a safe investment destination that also comes with a great lifestyle. Political stability and our property laws are also positives. Because of the current restrictions most offshore investment is naturally focused on new apartments, but within that market activity is generally spread across diverse areas, it’s not only CBD centric and I think that investment growth should be welcomed.
To say this is pushing up prices is too simplistic, prices are increasing, but it’s because of a combination of factors. Above all it’s tied to supply problems and poor delivery of infrastructure to enable a free flow of new stock and problems with supply are not new, we’ve know about problems with supply for years.
The supply side is also now being influenced by the direct development involvement of Asian investors into our markets, and so they are helping boost supply.
What we are seeing is the offshore investors/developers being very competitive in the market. They move quickly, they bring new ideas and we have to also keep in mind the impact of the local currency. Local and state governments with a development focus are looking for investment and many Asian investors have a critical level of expertise and access to capital that will only see this trend strengthen as more sites are acquired.
Lifestyle a Key Factor
One key point I made during my presentation is that offshore buyers are not coming here to play cricket in the streets, they are anxious to engage in every aspect of society and they take a long-term and very considered view of what and where they buy. Many buyers also have long term existing family connections here.
The flow of Asian buyers and the number of Asian students is one key example that has had a marked impact on some areas of the market in Sydney, and Melbourne and other cities. Big student numbers help drive demand for accommodation, and Sydney’s Broadway/Ultimo area is a dynamic example.
Largely because of student numbers and associated development, the area is heading for a true ‘downtown’ feel with 7-day a week activity. Because of its direct impact on residential property, it’s worth looking in more detail at the impact of the education sector. Figures show that in 1994 total student numbers were less than 100,000, by 2000 that had grown to 150,000.
However in 2009 numbers last peaked at around 620,000 students, numbers then fell away until 2012 and but since then numbers have been on the increase again and in 2014 were heading back towards 590,000, and the biggest sector is students in higher education. Although there’s growth in numbers also attending, and paying to do so, at the primary and high school level. There’s a direct link with more offshore buyers as some apartments are purchased for investments to cater for this demand, or parents buying to directly house their kids.
I think from a marketing perspective this has helped create more vibrant areas, and is a progressive development across several sectors and it is a big boost to economic activity; it’s a good example of why offshore direct investment into residential property is a positive trend. Education is a key part of the service sector economy and growth is required to help re-balance the economy as we exit the mining boom.
Helping to Revive the CBD
And while we have a strong in-flow of funds this is also helping to further shape core CBD residential markets, and is driving demand that will see more and more B &amp; C grade office buildings converted for residential use.
As the CBD evolves it can also be seen that offshore buyers are also having an indirect influence in a more subtle way. For example planners looking to change our local dependence on cars can have apartments with no parking and they can influence demand and size of apartments, all deriving from the fact that offshore buyers take a different view of these two sometimes touchy areas for local buyers, this helps to create diversity of product and supply.
This trend of re-developing secondary office stock will go on and motivate demand for new office inventory for example in Sydney in areas like Barangaroo.
Such investment activity has a deep and powerful impact on our cities, it helps make sure they are ever more dynamic places, and that’s important if Sydney’s continued ambitions of being a major international city are to be realised. We cannot have that ambition on the one hand, and then on the other restrict or shackled offshore buyers, we have to have an open (if regulated) approach.
We are Not Creating ‘Little Asia’
A question I was asked at the Coco Republic event was centred on the idea that some buildings or projects might be focused just on offshore or Asian buyers.
In reality this is not the case, really it is just the opposite, as might be expected in an open market, buildings vary with the buyer profile they attract. Just what might be seen as Asian facilities I am not sure, but as far as design and interiors and common areas are concerned, projects are being built to meet the general demands of the market, we are not setting out to just accommodate Asian buyers.
What is true is that just like any local buyer, offshore buyers do put a lot of energy into selecting the right home or investment. They don’t just rush in and buy anything. They may appear to be dominant in particular areas but this is more as a result of where supply happens to be. Most offshore buyers are astute buyers – they express 5-10 year plans, and re-sale is the key concern.
Like all investors, they also focus on the potential of capital gains in later years and so they look for apartments that have strong appeal to the local market, after all it is often said you can’t exactly pack up an apartment and ship it off in your luggage on the next Qantas flight.
There are some location specific buyer profiles, but again that is not a unique factor, local buyers will be attracted by access to a particular university or school or shopping centre or business park, the same applies to offshore buyers.
I think it’s also worth acknowledging that the big four banks are looking at buyer profiles and they can put a cap on lending to the sector, however offshore buyers can access external funds.
ATO Takes on Part of FIRB Role
The recent changes to FIRB merit some comment. From my experience over the last few months, the government changes have not had any significant impact. Most buyers accept that there is a need to enforce the current laws, the ATO is now checking and perhaps it’s more a failure of policy and not an attempt to contravene the laws that really reflects market sentiment.
As I suggested earlier, the rule of law is important to offshore buyers, this helps make our market attractive alongside the fact that title is secure, here in Australia. I see constant evidence that these buyers never take anything for granted and so they are happy to work within the rules.
The Federal Government is also taking up the benefit’s Free Trade Agreements, and Significant Investment Visas as ways of boosting economic activity and investment, and so I do not think that residential property can sit outside these sorts of policies.
Suggesting that offshore buyers are the main cause of higher prices and tight markets is counter productive. Offshore buyers are looking for a full cultural involvement with Australia and that extends beyond the apartments themselves, they go on and buy furniture, cars and services and so that filters into the economy. If you look at the education sector again, and were to remove foreign students then the sector starts to look pretty poor. I think offshore buyers can do much the same for the housing market, helping to sustain activity and also directly boosting supply via direct development and sizeable investment as is already happening.
Given the existing FIRB rules, it is not reasonable to suggest that offshore buyers are having any more than a marginal impact on the local market, and while that may be more apparent in some pockets, I think it’s a distraction from the failure of long-term policy, that all levels of government need to take responsibility for. This include the chronic neglect of infrastructure, neglect that we are now being reminded of almost daily.
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au" target="_blank">here</a>.
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Offshore investment is essential: Peter Chittenden

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Back in my distant and naive past, I regarded Time Magazine as a quality publication. It had the aura of authority and integrity in the presentation of global news. Until one day it published an article on a subject I knew well. I was appalled at the inaccuracies and the sensationalism.
It was the worst kind of tabloid journalism in a publication with pretensions to quality. I could never again see the magazine in the same light, because I began to wonder about the authenticity of its information on other subjects.
I’ve just had a similar experience with GetUp. I’ve admired the achievements of the GetUp movement as an expression of people power and I’ve supported many of its campaigns, particularly those related to environment. My support of some of these campaigns was based on the assumption that the arguments they presented were anchored in facts.
That all changed this week when GetUp launched a campaign against negative gearing. I received the GetUp email letter asking for my support and could scarcely believe what I was reading. It was a dishonest and emotive rant littered with falsehoods and unsubstantiated claims.
Sadly, it was based on the kind of misinformation that is rife in real estate media. The people who wrote it are either unethical or incompetent - probably a mix of both.
Everything the organisers of this movement tell me on any subject henceforth will be tainted by the suspicion the information has been distorted or fabricated.
Because that is certainly the case with the “information” presented on negative gearing.
The people who wrote the GetUp statement smelled the blood of Joe Hockey following his alleged gaffe about housing affordability. I say “alleged” because there is nothing in Hockey’s statements (that the key to affording a home is a good job that pays well and enhances your chances of getting a loan) that justifies the media hysteria that followed. Further proof that a rational debate on any subject is beyond the scope of Australian media.
The GetUp statement began with the claim that there are “millions of frustrated first home buyers priced out of a skyrocketing housing market”.
This is plain wrong and easy to disprove. Australia has 8.6 million households, of which 6 million are home-owners and much of the rest (according to the research) are renters by choice. The research shows that 25% of all current residential sales are to first-time buyers, which means around 120,000 households bought their first property in the past 12 months. The two affordability indexes published quarterly indicate affordability overall is strong and, if you remove Sydney from the equation, the best it’s been in 12 years.
It’s impossible on those numbers to substantiate the claim that there are “millions of frustrated first-home buyers” across Australia.
The claim about “a skyrocketing housing market” is patently absurd, given that only one of the eight capital cities has a boom market. Of 16 major markets (eight cities, each with a house market and a unit market), based on the latest annual price data, six are going backwards (prices decreasing), seven have price growth below 3.5% and only one has double-digit growth. One big growth market out of 16 does not, by any definition, constitute a skyrocketing property market.
This suggests the campaign is based on two false premises: that we have a skyrocketing market and that there are millions trying to buy who can’t.
And the GetUp argument goes downhill from there.
It takes a further leap of imagination in claiming that negative gearing is “one of the root causes” of the alleged affordability problem. This, like all the sweeping statements in the GetUp letter, is not supported by any factual evidence.
An 18-month federal parliamentary inquiry was unable to produce any evidence that negative gearing had any bearing on the cost of housing for first-home buyers. The final report said they suspected it might, but couldn’t provide any definitive evidence that it did. After 18 months of inquiry, which included four time extensions.
Then there’s this statement: “Negative gearing forces everyday Aussie home buyers to compete with investors armed with generous tax breaks looking to buy their second or third property. It reduces home ownership and locks many out of the housing market, increasing the gap between the haves and have-nots.”
The claim that investors are commonly buying second or third investment properties is contradicted by ATO data showing that three-quarters of investors own only one property. The statement also assumes that all property investors are negatively-geared, whereas the ATO evidence shows that 640,000 Australians own investment property but don’t claim negative-gearing deductions. I’m one of them.
It further claims: “A massive $4.2B in negative gearing tax breaks per year go to the top 10% of income earners.” That is another lie. There are many different figures bandied about in terms of how much is claimed in negative gearing benefits - the Green have quoted two different figures this week, $2.9 billion and $4.2 billion, but to suggest it all goes to the biggest income earners is, once again, clearly false. The ATO data shows that most Australians who own an investment property earn less than $100,000.
The GetUp statement also lies when it claims: “There's consensus among housing experts and economists that negative gearing is one policy area driving unaffordable housing in Australia.” No such consensus exists, nor anything remotely like it. In my reading of media, those who see a link between negative gearing and housing affordability are very much in the minority, albeit a very noisy one populated by people from the lunatic fringe, like dodgy forecaster Saul Eslake.
Beyond the inaccuracies and sweeping political statements, the GetUp campaign is based on the notion that eliminating negative gearing will somehow make housing cheaper. The process by which that would occur is not explained - possibly because it makes no sense.
There is also the furphy that increasing housing supply will somehow, again miraculously, bring down the cost of housing. There’s evidence that a massive oversupply will cause prices to fall but how we convince large numbers of developers and builders to be willing to lose money to create such a scenario is not explained. There’s no evidence that an orderly increase in supply, which is what we’ve had in Australia for three years now, will lower prices.
There’s also this statement: “The thing about bubbles is that they eventually burst. If we don't take some heat out of the property market now, we could see a crash that would devastate homeowners and investors alike – with dire implications for the Australian economy.” 
Well, actually, no. Media has been writing about alleged bubbles in our property markets – constantly - for the past 15 years but there has been no property crash - which suggests those bubble claims were false. What we have seen throughout history is that boom markets eventually stop growing and prices level out. But we have never seen a crash, not in the history of this nation.
Finally we have this statement: “It’s high time we saw Government leadership to make housing more affordable for all Australians.” But eliminating negative gearing simply won’t achieve it. The tax benefits of a small number of people are not the problem, if indeed there is one.
GetUp has been an interesting experiment in ordinary people using modern media resources to lobby for worthy causes. But they’ve crossed the line with this dishonest and misguided anti-investor campaign and I wonder how many people, like me, will withdraw their support.
TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a> 
Terry is presenting a free webinar with Property Observer editor at large Jonathan Chancellor on Tuesday June 16 at 12.30pm titled on why research is the key to successful property investing in 2015. Sign up here.
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Present arguments anchored in facts: Terry Ryder

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Hi Margaret,
If I put a deposit to buy a house before the new financial year, can I claim it this year tax time or is it to late to buy? Also, is it greedy to buy our 4th house in 7 months?
Regards,
Thor
 
Hi Thor,
To answer this question we must first work out what can and cannot be claimed against your tax. The deposit on a house is not a claimable item. The costs you incur when you buy a property are able to be claimed, but each item is treated differently.  For example, all buying costs such as legal fees and inspections form part of your cost base, and serve to essentially reduce your payable capital gains tax when you sell, rather than provide an immediate deduction.  Borrowing costs are divided up over 5 years (or the length of time you own the property if less than 5 years) and claimed at the end of the year. I think you are really asking me whether the interest on the deposit is claimable, and the answer is no, for two reasons.  The first one is that any deduction you claim against your income is only available on an 'income producing asset', an at the stage where you pay a deposit, this property does not produce income, for you.  The second one is that the deposit does not denote a transfer of ownership, and so you don't legally own an income producing  asset against which you are allowed to make these claims - the present owner does however, and they are allowed to make those claims right up until you settle the property. As to your second question, it's not greedy to buy your fourth property in seven months, but whether it is wise to do so is an entirely different thing.  You need to ask the following questions: 
<ul>
<li>Do you know your personal risk profile and whether this number of properties is consistent with that?</li>
<li>Have you had an independent, professional investment plan prepared for you by someone who is not trying to sell property to you?</li>
<li>Have you analysed your capacity to meet your current debts and property costs should interest rates rise?</li>
<li>Have you ensured that you have diversified your property portfolio across a number of markets? Some of our markets (namely, Sydney) will likely enter a protracted period of stagnation after this present frenzy, so you don't want all of your properties to be in such a market?</li>
<li>Have you considered your financial future - is there any upcoming changes which may make a larger portfolio create extra stress on your finances?</li>
</ul>
You should not simply buy a property every time you feel like it, or each time the bank offers you more money - instead, your acquisition of property should be part of a carefully articulated plan which considers all of your personal financial circumstances, investing time horizon and risk profile.
Have a property question?  <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Ask Margaret: Is it greedy to buy our 4th house in 7 months?

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As coincidence would have it I recently had a conversation with Dr Hazel Easthope, Senior Research Fellow, City Futures Research Centre UNSW following the news last month of yet another delay being announced in the now long over due review of NSW Strata Title legislation.
It has been confirmed that the Strata law reforms in NSW are to be delayed (again) with changes now not due to come into force until July next year. That’s another 18 months, which for such an important area of reform appears almost to be neglected.
The plans have been delayed several times since being announced in 2011. The reforms to the state’s 50-year-old strata laws are now urgent, but this message appears not to being heard by the State Government. In part a series of ministerial changes have hampered the process, but concerns among apartment dwellers are on the rise, and their concerns are justified.
The research being undertaken by Dr Easthope is looking at the experience of people living in strata titled property. Her work will look at details of people and seek to learn about their experiences of living in an apartment, and what they like and dislike about strata tile living. How strata title impacts the feeling of ‘home’ and how the quality of building management impacts residents. It’s notable that the quality of building management is now a key issue for many apartment buyers and investors.
The aim being to better understand the needs of different people living together in strata schemes and what can be done to make them more attractive places for everyone. The survey is due to be completed by 30thJune 2015 and I look forward to seeing the results.
The survey can be accessed at <a href="https://www.be.unsw.edu.au/research-centres-and-clusters/city-futures/about-us" target="_blank">City Futures</a>, and along with Dr Easthope I will keep readers up to date on the survey and related topics.
 Also in a national survey on strata-titled property conducted by Queensland’s Griffith University, the author, Professor Christopher Guilding has named building defects as the main challenge for apartment owners, which was also identified as the biggest issue for strata lawyers, and in the top five by resident building managers.
As a result the SMH recently reported that Professor Guilding is calling for a federal government inquiry about the issue, which must also put even more pressure on the NSW review process.
Professor Guilding will be releasing the results of the Inquiry Into Key Challenges In Australian Strata Title in September at the launch of the biennial national conference Strata and Community Title in Australia for the 21st Century.
The work by Professor Guilding and Dr Easthope appears very opportune and may well be central to helping to maintain the quality of life for the many apartment owners and future buyers across Australia and I am sure there will be a lot of valuable information and insights to share.
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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Yet more strata legislation delays: Peter Chittenden

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The developer lobby is the boy who cried wolf in Australian real estate. He’s actually right about something and desperately wants to be heard, but no one is listening anymore.
The recurring topic is the cost of housing. It’s absorbing far too much time and energy for stakeholders everywhere, because politicians find the obvious solutions unpalatable.
If politicians stopped taxing real estate to within an inch of its life, life for home-buyers would become so much easier. The cost of a new home for a first-timer could be massively reduced. One estimate suggests the typical new home in Sydney could cost $250,000 less.
The developer lobby argues that stamp duty is the single biggest problem. I have to agree that stamp duty is an obscenity. Having to cobble together a deposit is a big enough challenge for property buyers, without having to save to pay an exorbitant and unjust tax as well.
Stamp duty on the median priced dwelling in Sydney ($752,000 according to RP Data) is almost $30,000. It’s similar sum for the same purchase in Perth, while anyone buying a home at that price in Melbourne would pay over $40,000.
It’s tantamount to paying a fine for the crime of buying a home or an investment to fund your retirement.
The developer lobby has been targeting this issue with one of its endless campaigns. It wants stamp duty scrapped. It presents some compelling evidence, but I doubt anyone important will take any notice because builders and developers have been crying wolf on multiple issues (e.g. the mythical housing shortage crisis) for years.
And its proposal overall is a massive turnoff. Its argument essentially is this: everyone should pay more tax so that the development industry can make more money.
The Property Council of Australia, arguably the most self-absorbed group in society, is suggesting that stamp duty should end and the lost government revenue be recouped by increasing the GST. 
The proposal, therefore, is that everyone should pay more for everything they buy so that real estate can be exchanged cheaper. I’m sure that’ll go over well with the general public and the politicians they elect.
The council argues stamp duty is inefficient and "a runaway cash grab that's hurting Australia's economy and locking out potential home buyers". It says the community should be outraged at figures like these:
The cost of stamp duty to a home buyer with an average-sized mortgage has increased 795% in Melbourne and 749% in Sydney in the past 20 years. 
Property owners have become Australia's largest collective taxpayer, contributing 9% of total tax revenue.
Property taxes make up as much as 46% of state, territory and local government budgets. Stamp duty alone contributes more than 20% of the total revenues of the NSW,      Victoria, Western Australia and Northern Territory governments.
The cost of stamp duty over the life of an average mortgage is now $61,542 in Sydney, $56,616 in Melbourne, $49,701 in Darwin and $35,427 in Canberra.
The Housing Industry Association, another noisy member of the developer lobby, says property taxes add around $250,000 to the price of a new home in Sydney. That, it says, accounts for 40% or $1,350 per month for the life of a home mortgage.
"Taxes on new housing are a brake on economic activity, and represent a constraint on housing affordability and labour productivity," the association's head of industry policy Graham Wolfe says.
Wolfe says stamp duty is the most inefficient tax in the system. However, he says there are many other taxes on new homes, including developer infrastructure levies, which can add $70,000 to the cost of a new home-and-land package. GST is also levied on new homes, but not existing properties, adding tens of thousands of dollars to the cost.
The problem is: state governments will never give up their property taxes. They’re addicted to them.
We’ve seen what’s happened with the ACT Government. It went to an election promising to eliminate stamp duty within a specific time frame. Now they’re reneging on their promise. They just can’t let go of all that lovely money.
And, for them, the protests of the developer lobby are just background static. No one is listening.
TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a> 
Terry was recently joined by Property Observer editor at large Jonathan Chancellor for a webinar on why research is the key to successful property investing in 2015. You can download slides and audio from the webinar here.
 
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State governments addicted to property tax: Terry Ryder

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 Hi Margaret,
I was looking at getting into property investment this year and my mother is retiring and plans to sell her older place for something easier living.
She currently likes where she lives so we are considering an option, if feasible, of me buying her current place to rent out and then she could build a modest seperate house at the rear of the property.
Apparently the zoning allows for this but not for a full subdivision (only 790m2) in Queanbeyan, NSW.
My question/s are, would setting up a strata be the best option? I still want an option of being able to sell one property in the future if needed. Who would I speak to and how do I go about setting something like this up? Or is it just too complicated (tax/titles, etc) for everyone involved.
Thanks
Kris
  
Hi Kris,
There is certainly a lot to consider when thinking about not only buying an investment property, but also carrying out a subdivision. So, let me tackle your question one section at a time:
1. You buying your mum's house.
While I think it is a very noble thought assisting your elderly parents in this way, I want to be sure that your own personal circumstances are well take care of first. If you have a sound retirement plan and feel that you are set up for your own retirement (so that you can make choices in retirement without depending upon your own dependents to assist you), then by all means, take this step to assist your mother.
However, if you are not, then you must seriously consider whether you would otherwise purchase a property like this one as part of your own investing strategy.  Thinking that any property, anywhere is suitable to start an investment portfolio is a trap which leads many to owning property which does not perform over the long term and which provides lackluster rental return.
So, to start off with, ask yourself the question "If this were a property advertised on a real estate website, would I be interested in buying it?'. To answer that question, you will need to carry out the same extensive research that you would on any area to ascertain the existence, or absence of suitable growth drivers. You also need to consider opportunity cost - if you bought this property, what is the opportunity cost of having bought somewhere which may have a better short term prognosis for growth than this area.
2. Subdividing
You say that this property is not eligible for 'full' subdivision, but a strata titled subdivision is a full subdivision. When you subdivide, you will do so either as a Torrens title (Green title in WA), a strata title or any number of other titles such as community title etc. All of them are full subdivisions and must satisfy both state planning rules and local authority subdivision requirements. Very often property investors underestimate the financial and time costs of subdivision – you will face architects fees, planning fees, engineers costs, labour costs if the subdivision requires any works, council contributions, fees and charges, titles office fees – the list goes on and on.  Far from gaining a free block of land when you subdivide, very often costs can run to tens of thousands of dollars and sometimes hundreds of thousands. You must be able to come up with these funds up front, since they are costs which cannot be financed unless you have other property elsewhere to offer as security. Often investors so underestimate these costs, and the time involved, that they are left disillusioned, exhausted and out of pocket by the end of the process.
If this property does not qualify for actual subdivision, you may be talking about the ‘Granny flat’ option available in NSW. This means that as, as long as the property is more than 450 sqm you may add a second dwelling to the property and this can be rented to anyone. Permission to add a granny flat bypasses normal planning rules and is approved within 10 days. The only issue here is that there is still only a single title, and so you cannot sell one property without selling the other. The decision to add a granny flat to any property brings its own issue – will it add or subtract value? Will it make it harder or easier to selling the future? Will it be harder to rent out the main house with a second dwelling in the backyard?
3. The Financials
When your mum sells the property to you, she wont pay any tax as it’s her own home.  When you buy it, you must pay stamp duty on its full market value, even if she sells it to you for less than that. When you rent it to your mum, you must rent it for the full market rent or you may not be able to claim full deductions, although you can give her a discount if you don’t have to pay a property manager or do some of the other things nornally associated with earning a rental income. 
Your first port of call should be to a local town planner. They should be able to give you an idea of what kind of sub division is allowed and also outline the kinds of costs you would be looking at.  Then ask a builder to quote you for the new build – complete to occupancy so you get the full idea of the costs involved.  Make sure the town planner you use has previously worked with council or otherwise is fully conversant with local government and state planning rules. Once you have a fair idea of the costs, add 20%, because in my experience this is the amount that the budget of a development usually blows out by.  And lastly, compare all of this to what it would cost for your mum to simply sell it to someone else, buy a unit somewhere which is ready to move into, while you look all over Australia for the next hotspot and invest there.
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<div>Have a property question?    <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a></div>
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Ask Margaret: Can subdividing make for easy retirement living?

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Commentary on the affordability issue has become so twisted that media is quoting Sydney’s median house price as a relevant topic.
We recently had the Australian Financial Review, which should know better, writing about the level of income needed by a first-home buyer to afford the median Sydney dwelling, as well as the median-priced dwelling in the other capital cities.
My question is: how is this in any way relevant to the issue of affordability?
First-home buyers don’t buy at the median price, not in Sydney, nor in Melbourne, nor anywhere else in Australia. First-home buyers buy below the median, indeed well below it. Always have done – and, I dare say, always will.
The median price for dwellings in the major cities at the moment are $750,000 in Sydney, $570,000 in Melbourne, $465,000 in Brisbane and $510,000 in Perth. According to CoreLogic RP Data, the median across the eight state and territory capital cities is $570,000.
But the average first-home-buyer loan at present is $334,800, according to the latest figures from the Australian Bureau of Statistics. Assuming the typical first-timer has a 10% deposit, this means the median dwelling price for a first-home buyer is around $370,000.
Given that 25% of all residential sales are being made to first-time buyers, there’s are a lot of novice buyers out there acquiring properties at the lower end of the market. In the past year, around 120,000 Australians have made a first-time purchase.
Those numbers are relevant to the discussion. The median price in our most expensive city is not.
The Real Estate Institute of Western Australia published some numbers this week that also have some relevance to the topic. Good to see those people putting out material that’s actually useful to a sensible debate, unlike some of their recent talk-down-the-market nonsense.
REIWA president David Airey said, quite rightly, that it was important not to use the median price as the guide for the costs of getting into the market for first-home buyers and others.
Airey said the median was the middle point in the market and that half of all sales were under it. This means buyers don’t need to be able to afford the median-priced dwelling to enter the market.
I think it’s sad that anyone needs to make this point, which is so obvious it should be a given in the debate. But the media coverage of the issue has become so irrational that industry people have to go back to kindergarten levels to try inject some balance.
“It’s also important to recognise that first-home buyers, in particular, usually purchase homes well under the median price, with Office of State Revenue data for May showing the median point for entry-level buyers being $450,000 in Perth and $366,000 in the WA regions,” Airey said.
“Even the median purchase price for first-home buyers means that half of all entry-level buyers are paying under these city and country median prices for their demographic.”
Airey said it was more useful for first-home buyers to look at the lower quartile, or bottom 25%, of the more affordable homes in an area to get a better perspective of what was available at more accessible prices.
REIWA data for the year to March shows that the south-east sub-region of Perth through Gosnells, Armadale and Serpentine-Jarrahdale had the most affordable lower quartile, with  houses selling around $370,000. 
Apartments and land were most affordable in the south-west sub-region through Cockburn, Kwinana and Rockingham.
Airey said even within the various sub-regions around Perth there were individual suburbs which were under the lower quartile for their local area.
“For example, the central sub-region has a lower quartile of $550,000, but it’s possible to find houses in Balga priced at around $385,000.
“Similarly, while the median price for units in the south-west sub-region is $277,000, you can find them in Orelia at around $196,000.”
Airey said that buyers should not be put off by the median price for a region or suburb, and look to the lower quartile for opportunities in areas they might initially think are out of their price range based on the overall median.
So true, so bleeding obvious and so sad that anyone needs to stand up and say it. 
 
TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a> 
Terry was recently joined by Property Observer editor at large Jonathan Chancellor for a webinar on why research is the key to successful property investing in 2015. You can download slides and audio from the webinar here.
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