Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Joel Robinson

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

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The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

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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Urban development policies do not reflect the needs of Australia’s wealthiest group of property buyers leading to a mismatch between the housing stock available and what is in demand, according to architecture and design firm Hames Sharley’s associate director Arun Broadhurst.
Speaking at the Urban Development Institute of Australia’s national congress in Brisbane last week, Broadhurst said public policy around the country was designed with an overwhelming desire to increase the density of capital cities. As part of that, developers were encouraged to build smaller types of housing with one to two bedrooms.
“The problem is that Generation X, which is our most wealthy generation, is of child bearing age and the policies don’t necessarily reflect what they need. They’re still going to need three, four or five bedroom houses,” Broadhurst said.
Most of the members of UDIA are large land developers that focus on green field sites on the city fringes. First home buyers form their main target markets.
Broadhurst told conference delegates that while some first time buyers were interested in one to two bedroom homes, many were still looking for three to five bedroom homes because they were planning to have children in future.
Broadhurst’s comments were based on the findings of The Housing We’d Choose: a study for Perth and Peel report, which was released last year. The research was conducted by Curtin Business School with Hames Sharley managing the project. The report analysed the compromises people in Perth were prepared to make when they bought a home.
The Grattan Institute had put together similar research in 2011 based on the Sydney and Melbourne markets.
The studies constrained people’s decision making by forcing them to make realistic assessments based on their own financial situations.
“If you asked people ‘What do you want to buy?’ people would say a five bedroom house in Kirribilli but we know this is unattainable for most people. [The research] constrains people’s choices by income and available stock to get a better feeling of how the real housing market works ,” Broadhurst said.
The Perth and Peel study found Perth was well catered for in three to five bedroom houses but had a large undersupply of one to two bedroom homes that suited people looking for smaller, more affordable homes. “It’s probably similar in Brisbane,” Broadhurst said. 
“In Melbourne and Sydney there’s a greater amount of housing diversity,” he said.
However, there were opportunities for developers to attract a greater variety of people to live out on the city fringes if they built homes that better suited wealthier growing families.
“Generation X tends to be affluent enough to live in the suburbs of their choosing,” Broadhurst said.
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Urban development policies leading to a mismatch between demand and supply

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Someone asked me last week if I am "bullish on property?".
It's a bit of wild concept if you think about it.
At the last count there are around 9,300,700 dwellings in Australia, and the vast majority of them I wouldn't invest in.
There are a huge number of areas that I would consider to be extremely risky, in fact, including a whole range of mining towns and regional centres, and even some larger cities with weak population growth and job markets.
My position always been that if you can demonstrate a certain level of skill and invest in the right suburbs and property types you can make a lot of money, but I wouldn't say that makes me bullish on housing per se.
In Britain, London and its surrounds has been the only area worthy of investing for my money over all the years.
In Australia, I generally stick to certain suburbs in Sydney. 
In 2007, that meant a number of key suburbs in the inner west, and even then only certain types of property. 
Last year we were buying on the lower north shore, but again only in a handful of suburbs and certain types of property. 
At the weekend, the lower north recorded another blistering auction clearance rate of 92%. 
I wouldn't get too bogged down in the weekly conspiracy theories about under-reporting: just look at the actual results <a href="https://domainmastheads.homepriceguide.com.au/saturday_auction_results/Sydney.pdf" target="_blank">reported</a> in suburbs like Kirribilli, Wollstonecraft, Cremorne and Neutral Bay. 
The lower north shore is now absolutely flying!
We expect to see Milsons Point and Waverton outperforming in 2014 too.
We try to avoid buying in heated markets, however, so we may leave the hordes to the auction frenzies at ever-higher prices now, and look elsewhere.
Next on our hit-list will include three suburbs in particular to the west and south-west, a little further out than the traditional capital growth hotspots, in order to catch the ripple effect of capital growth which is repeated in most property market cycles. 
March property prices 
RP Data will released its <a href="/expert-insights/investing/melbourne-tops-the-list-of-best-performing-capital-cities-in-march-quarter-rp-data-rismark">property price results for the month of March</a>, which unsurprisingly will continue to report very strong gains in Australian capital cities (+2.3%) for the 10th month in a row.
Leading the way, of course, were Sydney (+2.8%) and Melbourne (+2.3%), although in fact gains were recorded everywhere in March.
Over the past 12 months, the best performing capital city has continued to be Sydney, and the worst, perhaps not surprisingly given its weak jobs market and low population growth, Adelaide.
<a href="https://1.bp.blogspot.com/-j43vYsDmeWo/Uzjzxz9ceQI/AAAAAAAAMN4/3tun4W9-5oA/s1600/RPD111.jpg"><img src="https://1.bp.blogspot.com/-j43vYsDmeWo/Uzjzxz9ceQI/AAAAAAAAMN4/3tun4W9-5oA/s1600/RPD111.jpg" width="460" height="181"></a>
Philosophy 
Like most people, my investment philosophy has changed a bit over time, but the basic principles remain the same.
About a decade and a half ago, Robert Kiyosaki wrote a book, Rich Dad Poor Dad, which showed a diagram something like the one below which demonstrates the difference between the typical financial profile of a salary earner (lots of expenses, lots of liabilities) and that of an investor (fewer expenses and lots of income-producing assets).
<blockquote>
My basic philosophy is to think of investment as being like a snowball, compounding and growing its income and capital appreciation year after year, for as long as I live.
</blockquote>
Spending less than you earn and investing the difference was a real "aha!" or "light bulb" moment for millions of people around the globe. Kiyosaki sold 26 million copies of that book alone and went on to build a substantial business empire from this one very simple core idea.
<div><img src="https://www.richdad.com/MediaLibrary/RichDad/images/blogs/rdpd-wealthy-vs-middleclass-chart.jpg" width="400" height="303"></div>
Concept: Robert Kiyosaki
Kiyosaki's point was that investors should try to avoid getting into bad debts (credit cards, car loans, school loans etc) and instead load up the asset column with your business, real estate and stocks.
My one simple big idea
Like many people I've experimented with a few different approaches, including trading or buying speculative stocks. These days I have stripped back my investment philosophy to keep it as simple as humanly possible. My one simple ideas as it relates to my investment philosophy is this: 
I want every single dollar I invest to still be going out to work for me if I live to be 110 years old. 
That's my basic philosophy, to think of investment as being like a snowball, compounding and growing its income and capital appreciation year after year, for as long as I live.
What to invest in? 
So what assets to invest in to achieve that goal? 
You can spend a lot of time analysing companies and still get it wrong. The simplest method for most average investors might be to pick out some diversified Listed Investment Companies (LICs) which have a proven track record of increasing their profits and dividends for decade after decade after decade.
I don't recommend individual stocks for others to invest in. You have to pick companies which suit your own risk profile. But this is the kind of chart that I look for:
<div class="separator"><a href="https://1.bp.blogspot.com/-iZUT2PTDq2g/Uznpgh8Z4HI/AAAAAAAAMOI/AX9f8KgSmjc/s1600/MLT.jpg"><img src="https://1.bp.blogspot.com/-iZUT2PTDq2g/Uznpgh8Z4HI/AAAAAAAAMOI/AX9f8KgSmjc/s1600/MLT.jpg" width="400" height="173"></a></div>
<div class="separator"> </div>
<div class="separator">Source: MLT Annual Report 2013</div>
<div class="separator"> </div>
<div class="separator"><a href="https://2.bp.blogspot.com/-7UCvvjPl6TU/Uzn3J6MCj2I/AAAAAAAAMPA/lWOyNZnEWAY/s1600/WHF.jpg"><img src="https://2.bp.blogspot.com/-7UCvvjPl6TU/Uzn3J6MCj2I/AAAAAAAAMPA/lWOyNZnEWAY/s1600/WHF.jpg" width="400" height="236"></a></div>
Source: WHF Annual Report 2013
If a company can achieve this type of result with its bottom line profits with its and franked dividend payments then the share price will likely take care of itself over time.  Through investing in these types of diversified companies your dollars can go to work for you from now until... forever.
You don't even need to know what the wires do, although of course, you can lift the cover plate and see what the inner workings are up to if you so desire.
<div class="separator"><a href="https://3.bp.blogspot.com/-m6Ug96wmaaE/UznqPMdYIPI/AAAAAAAAMOQ/Yg_SYJCw978/s1600/BKI.jpg"><img src="https://3.bp.blogspot.com/-m6Ug96wmaaE/UznqPMdYIPI/AAAAAAAAMOQ/Yg_SYJCw978/s1600/BKI.jpg" width="400" height="317"></a></div>
<div> </div>
<div>Source: BKI Annual Report 2013</div>
<div> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-a8UdJKNChMo/Uzn2XPoACII/AAAAAAAAMO4/eTCnft7XLm0/s1600/ARGO.jpg"><img src="https://1.bp.blogspot.com/-a8UdJKNChMo/Uzn2XPoACII/AAAAAAAAMO4/eTCnft7XLm0/s1600/ARGO.jpg" width="400" height="371"></a></div>
Source: ARG Annual Report 2013
Companies may in theory be perpetual but, surprisingly, many of them come and go. How much more re-assuring it is to be invested in a company which holds 100-120 top companies and trusts? Even if one of the companies held experiences a huge corporate fraud or failure, the investor should not be hurt too much. I covered in more detail why I like LICs <a href="https://petewargent.blogspot.com.au/2013/04/5-reasons-to-consider-lic" target="_blank">here</a>.
Real estate 
I apply very similar principles in property investment. I want to invest in cities which will still be thriving if I live to be 110 years old. That means that for the core of my portfolio, I tend to steer away from small regional cities or one-industry towns. 
It's no coincidence that my company has offices in London and Sydney, by the way, for those are two cities with tremendously strong fundamentals for the long-term.
Knight Frank reported yesterday that London prices are up by 68% in the last five years since March 2009. How on earth, and why on earth, is that happening? 
It's partly because of desperately inadequate construction. Parts of the market are desperately undersupplied and the activity in the market resembles a feeding frenzy at the moment.
It's also because in recent times, there has been a tremendous shift of funds towards residential real estate as a store of wealth, but only in certain key global cities. It's fairly obvious why prices have been growing when you consider this chart.
<div><img src="https://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/03/London%20market_0.jpg" width="400" height="322"></div>
<div> </div>
<div>If you know your history, you'll know that London has had something of a rollercoaster ride as a city.</div>
<div> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-gLopaBB9AhA/UzntvXvbM7I/AAAAAAAAMOc/wCMOLBe16KE/s1600/LONPOP.jpg"><img src="https://1.bp.blogspot.com/-gLopaBB9AhA/UzntvXvbM7I/AAAAAAAAMOc/wCMOLBe16KE/s1600/LONPOP.jpg" width="460" height="275"></a></div>
Centuries ago we had wars, plagues and even a Great Fire, and from the Second World War through to 1991 the city population declined for five consecutive decades as the city de-industrialised and went through a process of slum clearance and suburbanisation. 
Since 1991, London has been busy establishing itself as a major financial centre, and international migration combined with an economic boom has seen the population explode from 6.4 million to above 8.1 million. London's population has been increasing at twice the speed of that of the rest of the UK and is expected to surpass 9 million by the end of this decade.
Importantly, the population in inner London has often been expanding at the same percentage rate as that of the Greater City of London, despite the limited availability of land. I don't worry too much what the talking heads in the press consider likely to happen this year or next. I just know that over the decades, London property will continue to represent an absolute no-brainer.
Sydney
As a newer city, Sydney has not been through such a rollercoaster ride: the population trend is simply up, up, up and away.
The below is a dated population projection from the Bureau of Statistics. More recent data suggests that the estimates have been under-cooked and that Sydney's population could rise much more rapidly still than this (click chart) to <a href="https://www.afr.com/f/free/national/why_australia_needs_to_get_real_7hEC3IX0RZWitSkELPcJEI" target="_blank">around 8 million by 2050</a>, instead following the trajectory of the red line (click chart). 
<div class="separator"><a href="https://4.bp.blogspot.com/-bS0zccQITYI/Uzn49dmzSuI/AAAAAAAAMPM/WMo25KmGhDU/s1600/POPSYD.jpg"><img src="https://4.bp.blogspot.com/-bS0zccQITYI/Uzn49dmzSuI/AAAAAAAAMPM/WMo25KmGhDU/s1600/POPSYD.jpg" width="460" height="245"></a></div>
So much energy is diverted towards what might happen to prices in the next 12 months, but as an investor, inactivity can actually be your greatest friend. 
As for the flow of international funds, well let's be blunt: this will have very little (if any impact) on regional centres. The impact will be felt most keenly in inner Sydney where land is scarce, and inner Melbourne.
Through owning properties in suburbs where the supply is fixed you can be assured that your dollars you invested in investment properties will still be out there working for you for decades and decades to come. And more comforting still, the nature of compound growth means that they gains just get better and better over time. 
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His new 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

My basic investment philosophy

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The top performing capital cities in the March quarter, according to the RP Data-Rismark Home Value Index.
<ul>
<li>
5.4%  Melbourne was the best performing capital city over the March quarter recording a 5.4% rise in dwelling values. With a median dwelling price of $515,000 Melbourne's dwelling values have increased by 11.6% over the past 12 months. 
</li>
<li>
4.7%  Hobart recorded a strong gain of 4.7% in the March quarter. However, this result is tempered somewhat by the year on year stat, which indicate that values in the Tasmanian capital have only increased by 0.9% in that time frame. Hobart remains the country's most affordable capital city with a median dwelling value of $338,000. 
</li>
<li>
4.4%  Sydney continued its strong market gains, ticking up by another 4.4% over the March quarter. The median dwelling price is now $630,000, a year on year rise of 15.%. 
</li>
<li>
2.8%  Darwin recorded the strongest gain in the month of March of 3.3%, contributing to its quarterly gain of 2.8%. Darwin's median dwelling price remains second behind Sydney at $547,000. 
</li>
<li>
2.0% A strong March result of a 2.2% rise in dwelling values, saw Canberra head back into positive territory. The nation's capital posted a 2.0% increase over the March quarter and values are now up by 1.7% on this time last year. 
</li>
<li>
1.5%  Brisbane has been tipped by some experts as the next capital city market to take-off. These forecasts have yet to come to pass and Brisbane values were up only 1.5% in the March quarter. While Sydney and Melbourne have seen values shoot up by 15.6% and 11.6% respectively over the last 12 months, other capital city markets have remained below 5% over the period. Brisbane was the next best, recording a 4.8% rise year on year, while Perth and Adelaide followed shortly behind at 4.7% and 4.6% respectively. 
</li>
<li>
1.2%  Adelaide secured its entire quarterly gain in March when values increased by 1.4%. 
</li>
<li>
-0.6%  Perth was the only capital city to show a negative change in dwelling values over the March quarter. Perth values were up 4.7% on a year on year basis. 
</li>
</ul>
<img src="/images/2014/04/01/rp-data-april-1.gif" alt="">
Source: RP Data-Rismark Home Value Index
 
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jake-cSmGT7VXVf

Melbourne tops the list of best performing capital cities in March quarter: RP Data-Rismark

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When you’re investing in any asset class, there’s no such thing as a sure bet — and residential property is no different. Whilst there’s potential for capital growth, there’s a flipside of a potential stagnation or decline in market value.
You can reduce these risks by implementing a simple strategy—diversifying your property portfolio. You can do this in two ways. First, buy properties in a range of locations; that is, different suburbs within a city, and/or different states.
Buying all your investment properties in the same suburb or neighbourhood means you’re intensifying your exposure to potential changes outside your control. For example, if you buy all your properties in an area where shifting ground increase the prevalence of major cracking, you could be up for tens of thousands in repair bills, more than once.
<blockquote>
By diversifying your portfolio and choosing good quality properties, you can minimise the risks.
</blockquote>
Further if you buy all the properties in a location that later loses popularity (such as a ‘boom’ town based on a single industry which later goes bust) reduced demand from buyers could affect the resale value of all your assets. If you buy all your properties in an area which later plays host to a freeway that creates considerable nearby traffic noise, you’ll bear an increased risk that not one, but all your properties will stagnate or fall in value.
By diversifying across areas within a city, you can minimise the risk of substantial cash outlays and capital stagnation or loss. If one property takes a hammering, the pain won’t be as bad when your other properties are holding their own.
The second diversification strategy involves buying across different price ranges. This will provide more flexibility when the time comes to sell and free up equity; for example, when you’re nearing retirement and want to top up your super fund.
Let’s say you have $1 million to spend. You can purchase a single asset with the whole amount, or two assets worth, say, $650,000 and $350,000 each. If you buy two assets, you need only sell one to free up cash; enabling you to keep the other and continue to amass a source of equity and income outside super.
This strategy can also spread your tax burden. If you bought one property worth $1 million and sold it for a profit, you’d be liable for capital gains tax (CGT) on the whole profit at once. If you bought two properties and sold them in separate financial years, you could spread your CGT liability over two years.
Because houses are generally more expensive than units or townhouses, diversifying your portfolio across different prices ranges means buying across all three property styles. Having said this, diversifying doesn’t mean compromising on the quality of your investment assets. When it comes to residential property, quality is definitely more important than quantity.
You can’t control changes in the local environment, infrastructure or demographics. But by diversifying your portfolio and choosing good quality properties, you can minimise the risks associated with these factors and come through the worst of storms relatively unscathed.
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marmstrong-sd3emVLPPb

Diversifying your property portfolio

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The number of businesses in Australia slumped to just under 2.1 million as at June 2013, a fall of 2.9% according to data released today by the Australian Bureau of Statistics.
The ABS figures (<a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/8165.0">available in full here</a>) show fewer new businesses are starting up in Australia, but the number of businesses <a href="https://www.smartcompany.com.au/technology/information-technology/31806-number-of-businesses-in-australia-continues-to-stagnate-abs">shutting up shop has also decreased slightly</a>.
The entry rate of businesses was 11.2%, down from 13.5% in 2011/12 while the exit rate was 14.1% per cent, up from 13.1% in 2010/11.
<img src="https://www.smartcompany.com.au/images/stories/new/business-chart-1-296.jpg" alt="">
The figures show construction is the biggest industry, making up 15.8% of businesses with 328,485 businesses, followed by professional, scientific and technical services at 11.6%, and rental, hiring and real estate services at 10.6%.
Electricity, gas, water and waste services had the smallest number making up only 0.27% of businesses with 5606 businesses recorded. 
Craig James, chief economist at CommSec, says it is clear from the data how tough the last year has been for Aussie businesses.
“Clearly if Aussies are more confident and business conditions are good, then you would expect to see fewer businesses folding and more businesses starting up,” he said in a statement.
James points to the fall in business numbers and the rise in unemployment. 
“As you would expect, the relationship between the number of businesses and employment is quite precise with a lag of around six months from the decline in business numbers to the decline in jobs.”
James says the good news is that monthly business numbers from the Australian Securities and Investments Commission have lifted since September and there is tentative evidence that employment is starting to lift again.
<img src="https://www.smartcompany.com.au/images/stories/news/business-chart-2-600.jpg" width="600" height="346">
The ABS statistics show the most common business in Australia is a small company, employing few staff with a turnover of less than $200,000 a year.
“No wonder the job market is holding up despite high profile job losses at big companies – most businesses employ few staff and they have been holding onto staff or making modest additions to employee numbers over the past year,” James said.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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cwaters-YrtBR88nBe

Number of businesses in Australia slumps: ABS

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The Sheraton hotel brand, absent from the city for nine years, has returned with the Sheraton Melbourne Hotel on Little Collins Street.
Located at the ‘Paris end’ of Little Collins on the former Navy and Military Club site, the Sheraton Melbourne was officially opened for business yesterday, although the hotel has been taking room reservations since January.
According to general manager Hal Philps, the project began four years ago, when Golden Age Development purchased the site. The development company, owned by 37 year old Jeff Xu, is also responsible for the Rainbow World entertainment plaza on Bourke Street and a proposal for the largest apartment building in Melbourne’s CBD, a $250 million 75 storey development on Elizabeth Street.
<img src="/images/2014/04/01/sheraton-april-1-two.jpg">
Philps says the return of the Sheraton brand, the largest in Starwood Hotels’ portfolio, is the result of a combination of factors.
“We have an amazing owner at the right time, in the right location, and it’s a really perfect partnership for us at this time,” said Philps.
Starwood, Philps says, “has a lot of aggressive growth planned for this year globally for the brand.”
“Starwood are always looking for development opportunities. And it’s about those opportunities all stacking up, and they certainly did for the Sheraton Melbourne.”
Sheraton’s Melbourne offering will be aimed the city’s prestige tourism market.
“As a five star luxury operator we’ll very much be targeting that sort of clientele, that look for the brand, Sheraton, and look for the experience we deliver around the world,” Philps said.
“We have 174 bedrooms, and that includes luxury terrace suites. In addition to that we have our signature restaurant, which is called Little Collins Street Kitchen, a new concept we developed just for Sheraton Melbourne here, and one which we believe will very much fit in with our location here in Melbourne, and be a great asset to the Melbourne dining scene.
“In addition to that we have a little under 700 square metres of meeting space, all with the latest technology and natural light. We have a spa with five treatment rooms, Sheraton Fitness with an indoor heated lap pool, and also a rooftop bar concept that we will open this week.” 
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jrichardson-uRX5hFdKfN

The Sheraton returns to Melbourne with new hotel open for business

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As many property investors know, the best investment opportunities sometimes lie a little beyond your doorstep.
Are you a Sydney resident priced out of your home market, but thinking of finding some capital growth in Brisbane? Or maybe you’re dying to buy in Melbourne, but are based in Western Australia for work. While searching, buying and settling – let alone maintaining – a property from a distance may seem impossible, it’s in fact entirely manageable and often a <a href="/expert-insights/investing/four-reasons-you-should-consider-investing-in-property-interstate-ed-chan">terrific wealth builder</a>.
Finding the right property
It may well be the Property Observer mantra: do your research. If you’ve heard that the Queensland market is undervalued, take the time to determine what you want out of your investment and look at area data to see which suburbs stack up. 
Purchasing property interstate can force you to be realistic about your investment prospects – remember, you won’t be living there, so keep your eyes on the numbers and <a href="/news/qld/the-five-most-overrated-queensland-markets-to-buy-in">don't buy into hype</a>. 
With online listing sites, you can always know what's available, no matter where it's available. So there's no excuse to limit your search to your state. Finding the right people                                  
Once you’ve figured out which suburbs and what sorts of properties you’re interested in, it doesn’t hurt to enlist a little help. If you have a property savvy family member in the area who doesn’t mind putting in a little time for you, you might be able to palm off some of the legwork, like attending auctions to see whether homes tend to go for more than their listed price, or scoping out buyer demand.
Better still, consider putting some money down for a <a href="/news/how-buyers-agents-pick-the-best-performing-properties">buyer’s agent</a> or a conveyancer. Their local knowledge will surpass yours in <a href="/news/the-argument-for-against-buyers-agents">almost every way</a>; good connections with agents, the inside scoop on what properties are really worth and an understanding of <a href="/expert-insights/investing/buying-interstate-the-information-you-need-to-know">state purchasing laws</a> can be invaluable.
A conveyancer, a specialist lawyer, can look after all aspects of the process for you, from researching properties, lodging your legal documents and putting your deposit in a trust account.
Once you’re really serious about a property, it’s worth a flight to walk through yourself and have a look at the neighbourhood. You might also need a builder to do a walk through and inspection for any faults in the property and to let you know if you’ll have any troubles with renovations further down the track. 
And once the property is purchased and settled, you will, as always, need <a href="/expert-insights/investing/six-things-to-look-for-when-choosing-a-property-manager">a good property manager</a> – one who can source good tenants and maintain your property and your flow of cash.
Key differences
There are three standout differences between the states and territories when it comes to buying property: information, cooling off and government support and taxation.
The changes in the level of information vendors must disclose may influence just how much help you need to engage to buy your property. In Victoria, all vendors are required to provide Section 23 documents, which include any mortgages or debt against the land, planning information and any registered works on the property. When purchasing a property in the ACT you will have access to similar documents which will also include a pest inspection report and an energy efficiency statement.
The other states and territories require varying but generally less comprehensive levels of disclosure: NSW and SA vendors must provide Schedule 1 and Form 1 documents respectively, which won't include details of building works. Vendors in Tasmania, Queensland, NT and WA can all sell properties without giving disclosure statements to buyers.
As for "cooling off" periods, if you're buying a property in ACT, NSW or Queensland, you'll be allowed a five day period to change your mind after a purchase. SA properties come with a two day cooling off period that commences either once the contract is signed or once the Form 1 documents are provided, whichever is later. There is no legal requirement to provide a cooling off period for property purchases in WA or Tasmania, or for Victorian properties purchased at auction.
Each state has its own rate of stamp duty or land tax that is applicable. Make sure that you factor this into your budget when considering a property purchase. Many state government websites provide stamp duty calculators. Grants and concessions also differ from state to state. If you're buying a new or substantially renovated property in the ACT before June 30 2014, you may be eligible to be charged duty at the concessional rate. Buying an off the plan land and home package will get you a concession from the Victorian government. Similarly, the NSW government offers a $5,000 grant for the purchase of new homes.
Purchasing a new build in SA could also make you eligible for a Housing Construction Grant of up to $8,500. Buying an off the plan property in the state before June 30 2014 could also give you a stamp duty concession in the state. For a run down of the concessions and charges you'll be subject to, see each state and territory's revenue office website (see below).
State and Territory Revenue Offices:
<a href="https://www.sro.vic.gov.au/sro/sronav.nsf/Home+Page/SRO~Home+Page?open" target="_blank">Victoria</a>
<a href="https://www.osr.nsw.gov.au/" target="_blank">New South Wales</a>
<a href="https://www.revenuesa.sa.gov.au/" target="_blank">South Australia</a>
<a href="https://www.finance.wa.gov.au/cms/section.aspx?id=209" target="_blank">Western Australia</a>
<a href="https://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/Pages/default.aspx" target="_blank">Northern Territory</a>
<a href="https://www.osr.qld.gov.au/" target="_blank">Queensland</a>
<a href="https://www.revenue.act.gov.au/" target="_blank">Australian Capital Territory</a>
<a href="https://www.revenuesa.sa.gov.au/generic-pages/i-am-a-property-ownerbuyer" target="_blank">Tasmania</a>
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How to: Buy property interstate

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Got a bee in your bonnet about an issue and want some national attention? Go harass the federal government and they’ll create an inquiry.
It’s not hard to achieve. The ruling junta will believe almost anything, particularly if there’s been a bit of media hysteria to put the issue front and centre.
Certainly the property industry is having no trouble getting federal politicians to waste time and taxpayers money on talkfests about some of their pet topics.
Last week there was a housing affordability roundtable. According to the “communiqué” issued from Parliament House in Canberra, this was prompted by the belief first home buyers can’t afford to get into the market. It also stated that: “a major driver of increasing house prices and declining affordability is the under-supply of housing.”
In other words, a major talkfest involving government and industry leaders was based on real estate’s biggest furphies.
These are (a) that the only explanation for the low levels of first home buyers is a lack of affordability, (b) that affordability is declining, and (c) that there’s a housing shortage and that’s been forcing up prices.
All are red herrings which have been dragged around by some of the industry’s representative bodies for the past several years. (The true reason for lower first home buyer numbers is a major demographic shift that everyone seems to be missing).
<blockquote>
It’s a stunt to talk politicians into making decisions favourable to the industry, such as reduced taxes, faster approvals and favourable development policies.
</blockquote>
The prime mover behind this monumental waste of time was the Real Estate Institute of Australia, which is determined to oust the Housing Industry Association as the voice of insanity in the residential property industry.
The REIA has a serious obsession with first home buyer numbers. The reasons for that are obscure, given that major markets around the nation are rising and the institute’s members are having their best time of it in several years.
The institute hasn’t bothered to do any research into why first home buyer numbers are lower than normal. It has simply assumed that the only explanation is that they can’t afford to buy. This is surprising because the REIA is joint-publisher of a quarterly index that shows affordability has improved markedly over the past five years and is currently as good as it’s been any time in the past decade.
Why do they bother producing the report if they’re going to ignore its findings? Especially as the findings (that affordability is particularly strong at the moment) is supported by a host of other research reports, including those by the Housing Industry Association, the Australian Bureau of Statistics, Canstar and CommSec.
Apparently federal politicians don’t read because, despite the weight of evidence that we don’t have an affordability problem, they’ve accepted the industry line that young buyers “are finding it increasingly difficult to enter the housing market”.
They’ve also swallowed real estate’s biggest lie – that we have a serious housing shortage.
Given that price growth over the past decade has been lower than wages growth and not much bigger than inflation, and that there has been negligible rental growth in most of our major cities in the past couple of years, it’s clear we do not have the much-touted housing shortage.
Indeed, the most serious current issue is oversupply in some of our major markets.
Unless the forces of supply and demand no longer apply to real estate, how can the REIA and other industry bodies explain the lack of price and rental growth (keeping in mind that only Sydney had major growth last year, its first growth year in a decade) when they’ve been claiming a “chronic housing shortage crisis” for the past five years or so?
It’s a stunt to talk politicians into making decisions favourable to the industry, such as reduced taxes, faster approvals and favourable development policies.
The housing affordability roundtable follows the recent announcement that elements in the industry have managed to talk federal politicians into an inquiry to examine how foreign investors (read Chinese) are forcing up Australian property prices and dooming a whole generation of young Australians to a lifetime of renting.
If the inquiry is genuine, it will discover that the impact of foreign investors on the mainstream market populated by Aussie home buyers is zero and that they’ve wasted a lot of time and money.
<a href="https://mailto:ryder@hotspotting.com.au" target="_blank" style="line-height: 1.3em;">ryder@hotspotting.com.au</a>
<a href="https://www.twitter.com/hotspotting" target="_blank">twitter.com/hotspotting</a>
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terryryder-YECXbqmri2

Major talkfests based on nothing but industry's biggest furphies

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I am fast coming to the conclusion that despite having a total value of $5.02 trillion, real estate in Australia is one of the least understood industries.
During the global financial crisis (GFC) where property prices dropped on average by approximately 30% despite some market choruses calling for 50% plus price corrections. When we had clear evidence that the markets had bottomed we were then accused of falsely talking the markets up even though there was anecdotal evidence that this was in fact the case. So based on these observations with the markets now buoyant we constantly hear of the markets now being over – inflated and on the precipice of an almighty implosion.
To balance the argument I would make a few insider observations:
<ul>
<li>Historically real estate markets have always been valued from the top end down, so when the GFC arrived this actually skewed the valuation process as the top end markets experienced the greatest valuation decreases. The demise of the merchant bankers and their annual bonuses further stymied price growth as this once dominant market aggressor dissipated at a rate never seen before.</li>
<li>Post GFC we saw the markets bounce back from the bottom – end as against the previous top – end in the shape of investors. The Bureau of Statistics housing finance figures for December show investors now account for 39.8% of the value of home loans issued in December. That is the highest proportion of loans going to investors since October 2003, during the height of Australia’s largest recent housing boom.</li>
<li>What we are clearly seeing here is investors moving funds from the stock market back into bricks and mortar given the added attraction of negative gearing and self-managed superannuation funds is far too alluring to pass-up. Hedge funds and stock market manipulations have played a major role in this investor decision.</li>
<li>
Australia does not have, yet urgently needs, a housing strategy that would enable local, state and federal governments to work together on this blueprint over pork-barreling strategies every time an election comes around. Infrastructure Australia should be handed this responsibility especially in light of <a href="/expert-insights/buying/significant-dwelling-supply-problems-across-country-udia-report">significant dwelling supply problems across country.</a>
</li>
<li>
MP Kelly O’Dwyer is heading up the inquiry into Australia’s foreign investment policy in the context of residential real estate. Ms O’Dwyer wrote a vague insight the Australian Financial Review this week – <a href="https://www.afr.com/p/opinion/foreigners_and_real_estate_XzWUwJcAuIKXv0TRV7QdUP" target="_blank" title="Foreigners and real estate" style="line-height: 1.3em;">Foreigners and real estate</a> - where the focus is clearly on Foreign Investment Review Board (FIRB) data – which is about as useful as an ashtray on a motor bike. Real estate agents (the ones actually at the coal face) keep discussing the unprecedented explosion of online inquiries by Asian families from within Australia, I might add. So what percentage of acquisitions by overseas purchasers do not get processed, when they should, by the FIRB?
</li>
</ul>
<a href="https://www.rwm.com.au/files/2014/03/13-03-2014-12-00-27-PM.jpg"><img class="aligncenter size-full wp-image-8482" src="https://www.rwm.com.au/files/2014/03/13-03-2014-12-00-27-PM.jpg" alt="13-03-2014 12-00-27 PM" width="682" height="369"></a>
Source: Digital Finance Analytics
<ul>
<li>Temporary residents in Australia are permitted to purchase an established dwelling although they are legally required to sell this property when they depart Australia. As if they are going to sell – it is much easier to simply transfer the name on the deed into another name so technically the property has been sold. What is the data from the relevant Stamp Duty offices on property transfers?</li>
<li>The latest figures from the Foreign Investment Review Board (FIRB) reveal overseas buyers purchased a record 5,091 established homes worth $5.4 billion last financial year, compared with 647 properties to a value of $810 million in 2009-10. Next year’s figures will in all probability be much higher again as there is a clear movement of new residents to Australia because they want to get their fortunes out of China.</li>
<li>Another great Litmus test will be this week’s Mosman trophy listing with price expectations around $40 million plus which would smash the previous record set at $22.500 million by double – <a href="https://smh.domain.com.au/real-estate-news/mosmans-top-price-to-shift-next-door-20140327-35jf5" target="_blank" title="Hopetoun Avenue">Hopetoun Avenue</a>.</li>
</ul>
<a href="https://www.rwm.com.au/files/2014/03/13-03-2014-11-58-11-AM1.jpg"><img class="aligncenter size-full wp-image-8483" src="https://www.rwm.com.au/files/2014/03/13-03-2014-11-58-11-AM1.jpg" alt="13-03-2014 11-58-11 AM" width="711" height="361"></a>
Source: Digital Finance Analytics
So I expect the Inquiry into Australia’s foreign investment policy which will not be released until later in 2014 to unveil nothing sinister simply because the terms of reference are not specifically examined to explore the current loopholes that can be easily manipulated without our federal government even knowing.
The state governments like it as they are receiving a double whammy in stamp duty, but I guess we are not supposed to be saying that as the evidence is inconclusive given there are no terms of reference to explore such ridiculous assertions.
Which brings me to where I started, why is Australian real estate one of the least understood industries despite having a conservative total value of $5.02 trillion? There are a lot of question that could be asked to better understand its make-up and composure; it's just that nobody in the government is really concerned about providing those answers at the moment.
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Australian real estate has plenty of questions with fewer answers

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Australia’s automotive sector has been tipped to overcome the closure of its manufacturing division and emerge stronger than ever, according to an industry expert.
A new report from Auto Skills Australia found small businesses were struggling to survive due to financial pressures. However, the ones that survive will be better, more capable businesses.
Small businesses with less than 20 staff account for 94% of the sector, and sole proprietors and partnerships have fared worst.
But chief executive of Auto Skills Australia Geoff Gwilym told SmartCompany it’s important people remember the industry is still growing, and there will continue to be work for the sector.
“The industry is growing on average by 400,000 vehicles on the road each year and the industry needs to be capable of servicing and maintaining this growing fleet,” he says.
“There won’t be a collapse of the industry. It will be leaner, but it will also be more progressive and better positioned for the future of the sector. We foresee a lean, capable and modern industry going forward.”
While tens of thousands of jobs are expected to be lost as a result of the closure of Ford, Holden and Toyota in Australia by 2017, in 2012/13 net employment actually increased in the automotive sector.
Over the entire industry there were an additional 4,132 jobs added, as car repair and wholesale retailers performed well.
The sector is also suffering from a skills shortage of 21,175 workers across key areas of the car industry.
Gwilym says the auto manufacturing segment of the sector only comprises 13% of the industry and workers who lose their jobs as a result of Ford, <a href="https://www.smartcompany.com.au/finance/cashflow/34848-if-holden-leaves-toyota-follows-the-disastrous-impact-on-small-business" target="_blank">Holden and Toyota manufacturing plants</a> closing will be able to be absorbed within the sector.
“At the moment growth in the non-manufacturing side of the industry is outpacing any decline,” he says.
“It depends where they are in the age cycle of their employment, but a number of young workers will be able to transition to other areas of the industry. Workers who are getting on in age will probably look at retirement and others will transition directly into auto-service businesses.”
The industry’s contribution to Australia’s gross domestic product remained stable at 2.6%, equating to $38.4 billion.
In the next 12 months Auto Skills Australia found most businesses were expecting mild growth, as trading conditions have been variable.
The report found subdued levels of consumer expenditure on vehicle repairs, servicing and maintenance had already resulted in considerable downsizing and leaner operations for many companies.
Gwilym says the small businesses which survive the tough economic times will have upgraded their workshops and facilities and be “quite progressive in the industry”.
“There already are many innovative small businesses in this respect and it’s the ones which don’t keep up with investment in new equipment and up-skilling requirements which will fall by the wayside,” he says.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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