High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

[smartcode_project:default project_id=5743 project_image_fid=372394]

For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

[smartcode_project:default project_id=5743 project_image_fid=927]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

[smartcode_project:default project_id=5743 project_image_fid=375255]

The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

[smartcode_project:default project_id=5743 project_image_fid=375281]

For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

[smartcode_project:default project_id=5743 project_image_fid=925]

The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

[smartcode_project_cta:default project_id=5743]

Joel Robinson

Buying with confidence: What NSW apartment buyers should check beyond the defect headlines

Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

[smartcode_project:default project_id=145324 project_image_fid=372749]

Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

[smartcode_project:default project_id=145324 project_image_fid=354343]

The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

[smartcode_project:default project_id=145324 project_image_fid=354347]

According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

[smartcode_project:default project_id=152069 project_image_fid=374394]

Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

[smartcode_project:default project_id=152069 project_image_fid=374399]

Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

[smartcode_project_cta:default project_id=152069]

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

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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The former chief executive of West Australian hotel chain Compass Hotel Group has had his original sentence quashed by the NSW Court of Criminal Appeal and has received a tougher sentence of three years and six months’ imprisonment.
Bryan Northcote pleaded guilty to breaching directors’ duties and submitting false and misleading documents to the Australian Securities and Investments Commission after the <a href="https://www.smartcompany.com.au/growth/economy/19201-20110323-another-hotel-group-collapses-with--100-million-in-debt" target="_blank">Compass Hotel Group collapsed in 2011</a> with debts of $100 million.
The chain consisted of 12 hotels and taverns including the Carine Glades Tavern, the Belmont Hotel and the Albion Hotel.
Following an ASIC investigation, Northcote pleaded guilty to dishonestly withholding information from the Compass Hotels Group board and using his position to gain a financial advantage after he <a href="https://www.smartcompany.com.au/legal/28240-former-boss-of-collapsed-pub-group-charged-over-alleged-hotel-sale-kickbacks" target="_blank">siphoned more than $1.5 million in hotel broker commissions</a> into his own private company.
Northcote was initially sentenced by the Sydney District Court to two years’ imprisonment on the charge of breaching directors’ duties and one year for each of the two counts of submitting false and misleading documents to ASIC, with the sentence to be served by way of Intensive Correction Order.
The Commonwealth Director of Public Prosecutions, in consultation with ASIC, appealed the sentence on the basis that it was manifestly inadequate.
The NSW Court of Criminal Appeal agreed and quashed the sentences imposed by the District Court.
Northcote was re-sentenced to a term of imprisonment for a period of three years and six months for breaching his directors’ duties and one year imprisonment for each of the lodging false and misleading documents offences.
Northcote is now due to be released on September 26, 2015, upon entering a recognisance that he be of good behaviour for the balance of the term of his sentence.
The court said the original sentence was manifestly inadequate “because it did not reflect the seriousness of the offence, the extent to which the respondent personally was financially advantaged by the offence, the need for general deterrence and to the need to impose a sentence which both punished Mr Northcote and denounced his criminal conduct.”
ASIC Commissioner John Price said the regulator is committed to ensuring company directors act appropriately as this is integral to ensuring fair and efficient markets.
“Directors who step over the line by abusing their position for their own dishonest purposes need to know that they are risking jail time for their actions,” he said in a statement.
Ian Ramsay, professor of commercial law at the University of Melbourne, toldSmartCompany ASIC is likely to be happier with the tougher sentence.
“What’s clear is that the sentence of imprisonment has gone up significantly from a total of two years to three-and-a-half years, what is unclear is how it is to be served,” he says.
“The original sentence was an Intensive Correction Order, which is essentially serving it in the community, there’s a vast difference between an ICO and serving your time in jail.”
Ramsay says if the revised sentence is to be served in prison “then this is a very substantial repudiation of the original sentencing decision”.
He says it indicates a willingness on the part of ASIC, when it does believe sentences are significantly adequate, to work with the DPP to seek an appeal.
“The conduct here was obviously very significant, this was a very blatant conflict of interest, where Northcote personally profited by taking funds that otherwise belonged to the company of which he was CEO.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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cwaters-YrtBR88nBe

Court slaps former CEO of collapsed Compass Hotel Group with three-year jail sentence

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China data was out last week and it confirmed that there is a slowdown. Fixed asset investment grew at 17.9% in the first two months of the year, against a forecast of 19.4%.
<img src="https://pbs.twimg.com/media/BimW-kSCMAA6DtW.png" alt="Embedded image permalink" width="460" height="363" style="line-height: 1.3em;">
Source: Commsec
Meanwhile retail sales grew at 11.8% which was the weakest rate of growth in eight years. <img src="https://pbs.twimg.com/media/BimU7a1CEAAPFWB.png" alt="Embedded image permalink" width="460" height="325"> Industrial production also slowed to 8.6%, also the weakest rate of growth in almost half a decade.
Normally of course, these would be considered blistering rates of growth in other economies, but since China has been growing at breakneck speed these numbers are significantly weaker than have been seen in times past.
This decade, China is in the process of moving some 300 million rural dwellers into urban areas thus raising the urbanisation rate <a href="https://www.propertyobserver.com.au/https://english.peopledaily.com.cn/90882/8348321" target="_blank" style="line-height: 1.3em;">to around 60%</a>. By way of comparison, the population of the whole of Western Europe is around 400 million, depending on your source. It's a demographic shift on a scarcely believable scale.
<div>Like it or not, the stark truth is that Australia has a heavy reliance on our exports to China, so developments and data will be watched closely over the coming years.</div>
<div> </div>
<div>Demographics</div>
<div> </div>
<div>Economists and property pundits bang on about demographics continually, and not without good reason.</div>
<div> </div>
<div>It's often said that where a population does not grow then GDP growth may likely stall, in part because Australia, like many developed nations, has an ageing population.</div>
<div> </div>
<div>For this reason, Australia has a policy of targeted population growth and <a href="https://www.abs.gov.au/websitedbs/d3310114.nsf/home/Population%20Pyramid%20-%20Australia" target="_blank">our population pyramid in 2060</a> is likely to have a very healthy shape to it. </div>
<div> </div>
<div>Unlike many other countries, we aren't expecting to see a so-termed demographic cliff, rather a rapidly growing population fuelled by immigration.</div>
<div> </div>
<div>ABS population pyramid</div>
<div> </div>
<div class="separator"><a href="https://2.bp.blogspot.com/-3Tb38zZpzsM/UyIt0zS3KOI/AAAAAAAAL2o/nRyv-6WIXR4/s1600/ABS.jpg"><img src="https://2.bp.blogspot.com/-3Tb38zZpzsM/UyIt0zS3KOI/AAAAAAAAL2o/nRyv-6WIXR4/s1600/ABS.jpg" width="460" height="579"></a></div>
<div class="separator"> </div>
<div class="separator"><a href="https://www.abs.gov.au/websitedbs/d3310114.nsf/home/Population%20Pyramid%20-%20Australia" target="_blank">Source: ABS</a></div>
Other developed countries have learned from the tribulations of countries like Japan, and Australia is expecting a huge population surge to more than 41.5 million by 2061 from just 23.4 million today.
Of course, just because GDP rises, this does not mean in turn that GDP per capita does so...our average standard of living may fall if things don't go according to plan.
Falling populations
I already alluded to Japan's demographic challenges and the disastrous impact on its own economy.
A little closer to home (for me anyway) I recently saw an article which said that house in parts of Stoke-on-Trent in England were selling for only one pound sterling.
As recently as a couple of decades ago the coal mines in Stoke were shattering production volume records, having undertaken a huge ramp-up through the post war years.
According to Census data the population of the town peaked back in 1931, while the 2011 Census confirmed the first <a href="https://www.stokesentinel.co.uk/Stoke-Trent-s-population-grows-time-1930/story-16548423-detail/story" target="_blank">rise in the Census population</a> in eight decades. Stoke may re-invent itself over time as a services industry town, but it's been a challenging period.
Other world cities with a heavy dependence of one industry have undergone similar fates.
<div class="separator"><a href="https://3.bp.blogspot.com/-bO2cgepmSe8/UyI0Srh8K1I/AAAAAAAAL24/IJnFO22rVhk/s1600/Detroit.jpg"><img src="https://3.bp.blogspot.com/-bO2cgepmSe8/UyI0Srh8K1I/AAAAAAAAL24/IJnFO22rVhk/s1600/Detroit.jpg" width="460" height="197"></a></div>
<div class="separator"> </div>
<div class="separator">Source: Census Data</div>
I don't have to go into great detail on the decline of Detroit's car industry, but as you can see, since the city population peaked at around 1.85 million in 1950, the headcount has plummeted by more than 1.1 million people - by more than a quarter in the last decade alone.
In total the population has fallen by a catastrophic 60%. 
The resulting challenges have included poverty, crime, very high unemployment rates and default's on the city's debts. In some areas, real estate prices <a href="https://www.nydailynews.com/life-style/real-estate/1-buy-house-detroit-article-1.1415014" target="_blank">collapsed to zero</a>.
Financial crisis and beyond 
We've been lucky in Australia in that we sailed through the financial crisis relatively unscathed. 
Last week I read Gordon Brown's account of how he attempted to deal with the collapse of Britain's banks and the ensuing fallout.
I found it to be an enthralling read, and also a somewhat alarming one. It is increasingly clear that global economies are far more inter-connected than we had thought before the crisis. 
Risks are not as well diversified across financial institutions as was widely believed (largely thanks to increasingly complex derivative transactions) and country's economies do not operate in a vacuum. 
Funds can also be shifted around the world to thriving economies at the click of a button, which is why despite the lack of hard evidence being produced, the news articles on Chinese property buyers in Australia continue to surface by the day. 
It's said that there are 60 million wealthy Chinese, many of who are looking to park their funds overseas, so there may be a significant impact in Australia, however difficult it is to produce statistical evidence.
It was also quite amazing to consider the financial crisis started back in 2007, which will soon be seven years ago!
When it comes to investing there are no rights or wrongs as such, only what is right for each person. I always try to take the approach of controlling the controllables. 
In the share markets we have learned that even giant, established companies are not immune from collapse, so it is wise to be well diversified, perhaps through equities products which achieve that instantly for the investor.
And while reading news articles over the past decade or two might certainly have turned the hairs of a few property investors grey (or perhaps just made them fall out), the reality has been that investors in cities like Sydney and London have done very well as the respective populations continue to grow (by around half a million persons per decade in Sydney's case).
As Chris Joye tackled <a href="https://www.afr.com/f/free/national/why_australia_needs_to_get_real_7hEC3IX0RZWitSkELPcJEI" target="_blank">in this article here</a>, Sydney and Melbourne are expected to grow in size by some 80% over the coming decades, with populations growing to more than 8 million. 
Of course, booming population growth does not guarantee higher real estate prices, but it appears eminently more sensible to me to be an owner of real estate in cities with that kind of population profile and a diversified range of industries rather than one-industry towns where cyclical forces too often apply. We know that supply in property tends to come in waves cyclically, but it appears wise to focus on areas where it is assured that demand from population growth will grow strongly over the long-term.
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pwargent-M4siyDbqQY

Long-term population growth forecast makes Australia a sensible investment

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When it comes to purchasing a property, it’s easy to forget that there’s a vendor on the other end of the struggle who, ultimately, will determine the outcome to your offer. Their motivations, requirements and attachment to the home in question can all be crucial in getting the deal over the line.
Usually, the real estate agent will play the part of ‘go between’ for yourself and the vendor, leaving very little, if any, opportunity to meet and discuss in person. While this can do wonders for keeping emotions out of the transaction, it can also leave you completely unsure of who you are dealing with and what you can do to push the deal over the line.
There are a number of ways to determine what you can about the vendor.
Questioning the agent correctly
Upon your initial conversation with the real estate agent, you want to take things fairly easy. Remember that the selling agent is the vendor’s agent and is there to act in their best interest. For this reason, you do not want to be asking them to reveal personal information, or details that may limit the potential success for the vendor.
One way to structure your questions is to do so in terms of offers. You could say to them something like the following: “I’m interested in making an offer. Are there any favourable terms and conditions I could include that might make my offer more acceptable? Such as a longer or shorter settlement?”
You haven’t put your cards on the table in terms of a dollar figure, but you’ve alerted the real estate agent that you’re a serious contender for this property and you’ve put the ball into their court.
Don’t be scared to further question why they want those terms, for instance “Excellent, yes, I can certainly put that in. Do they already have their next home lined up?”
If this isn’t particularly revealing, you can ask questions framed in terms of the property itself. You may say “This is a beautiful home, why are they moving away from it?!”
These non-threatening exchanges may provide you a few snippets to get started with.
Checking the property’s history
Heading on to the past records, such as RP Data, can show you a number of important pieces of information. This could include:
<ul>
<li>How long the property has been on the market for</li>
<li>Whether the vendor has changed agents previously</li>
<li>If it is/has been rented or advertised as a rental</li>
<li>Whether the price has been decreased over the sales campaign (also known as ‘vendor discounting’)</li>
</ul>
You can use the area’s averages to get an understanding for how it looks on a comparative basis. You may even find the vendor’s name and a few details within these records, otherwise a land title can reveal the information necessary.
With the vendor’s name, particularly for prestige properties, a quick Google may result in the reason for the move. High quality homes, with high price tags to match, can often be owned by the movers and shakers. Press releases and ‘about us’ staff pages may reveal whether they are moving for a new job offer, or perhaps heading overseas. You’d be surprised what information the internet holds about people – and their properties. Googling the street address can also be just as revealing.
You might just find that Property Observer has written about the home in the past. Here are <a href="/news/watch-your-tracks-the-digital-footprints-your-property-leaves-beind-peter-omalley">some of the digital footprints that properties might just leave behind</a>.
At the open home
Open homes can be good for multiple reasons. While it gives you an opportunity to have a thorough look around the property, you can also get an understanding of the people who lived here last. Children’s rooms, family pictures and new baby paraphernalia may suggest you’re dealing with an upsizer. Meanwhile, older and black and white photographs may indicate otherwise. Other clues can also be in what is displayed – are there certificates and trophies?
You may find that the entire house has already been cleaned out. If it’s the primary place of residence for the previous owners then this may suggest that they have already purchased their next home and that they are looking for a quick sale.
How well presented the home is, and whether it has been professionally staged or not, can also attest to how savvy the vendor is about property.
You may also find that the neighbours are poking around the open home as well, which may give you an opportunity to field some questions about the home and its occupiers as possible.
Speak to the agent again
Head back to the agent with this information. If it has been listed for a long time, you might want to ask questions like the following:
“Are the vendors actually interested in selling? It has been listed for five months, which is far longer than the area’s average.” If you look as though you might step away from purchasing, the real estate agent is likely to try a little harder.
You may also want to ask about any previous offers and the reasons they were not accepted.
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jduke-EHk3XBmHkn

How to: Find out as much about the vendor as possible

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Investment bank <a href="https://www.credit-suisse.com/au/">Credit Suisse</a> couldn’t have coined it better when they asserted:
"The marginal buyer of Sydney and Melbourne real estate has changed, as have the drivers of property prices."
The words are taken from their recent report on international investment into the Australian residential real estate sector, with the intention to highlight potential opportunities for future speculation. And the statement is correct.
Anyone, who is in the business of buying or selling property, is acutely aware how the push and pull of both supply and demand in our property markets, has been markedly shaped by both a change in the local demographics of our nation, along with international competiveness in recent years.
The roll over influence on values in concentrated regions of our largest capital cities has, in some cases, been significant. And whilst it remains the subject of much angst for those priced out, I have yet to meet a seller who did not welcome this increased competition.
However, heated debate in the mainstream media around what has long been known in the industry as little more than a ‘tick box’ formalit, designed to detract from what remains a largely unaudited system of ‘non-resident’ investment in Australian property – residential or otherwise - by the Foreign Investment Review Board, has been going on since 2008.
As property editor, Robert Harley recently pointed out in the <a href="https://www.afr.com/p/business/property/the_year_of_the_chinese_developer_KtqoIDtcggT8KGAMXv8OgKhttp:/www.afr.com/p/business/property/the_year_of_the_chinese_developer_KtqoIDtcggT8KGAMXv8OgK">AFR</a>;
“Even the ‘experts’ find the FIRB annual report.... tardy, lacking in meaningful detail and hard to reconcile with their own experience…”
And as the fictional character "<a href="https://news.domain.com.au/domain/nonexistent-man-granted-leave-to-buy-598000-house-20130327-2gu0p">Chodley Wontok</a>" discovered last year, claims in the foreign policy document that applications are reviewed against the “national interest,” on “a case-by-case” level, do not go so far as a mere passport or visa check!
However, the sheer hysteria around this subject needs to be bought under control.  And if we’re to make sure policies are correctly regulated and work in the national interest as ‘spruiked,’ the blame needs to be carefully targeted to areas of influence – namely, policy.
Something the government has to date, repeatedly failed to do.
A policy disaster
Following the 2008 crisis, Kevin Rudd decided to put in place measures to prevent any major deleveraging of household debt. One of these was to openly advertise ‘relaxed’ regulations around the acquisition of residential real estate for temporary residents, companies and developers selling solely to overseas buyers.
Whilst the wisdom of such a move was debateable, what followed was a truly disastrous state of affairs.
Attempts by Walkley Award winning journalist Chris Vedelago to obtain accurate data under the freedom of information act, to monitor the level of increased demand being widely asserted by industry advocates - was repeatedly frustrated.
According to the then Assistant Treasurer, Senator Nick Sherry, any effort to establish a greater understanding of the FIRB’s compliance system, was not in the <a href="https://theage.domain.com.au/home-investor-centre/blogs/domain-investor-centre-blog/secret-government-business-part-ii-20120202-1quse">public's</a> “best interest.”
Instead, the government, then panicking over the consequential effect to their ratings in the polls, came up with the incredibly smart idea of a ‘dob-in’ hotline. 
The hotline was designed to enable worried locals, to report those dubious looking foreign nationals, who were cleverly disguising themselves as local buyers and naughtily ‘bidding up’ neighbourhood prices. 
“That would put a stop to it!” thought Kevin.
Unsurprisingly, from the limited number of calls received (although, once again, probably not from those vendor’s who were happily selling their properties in the rapid run up to the market peak of 2010), most turned out to be Australian citizens and long standing permanent residents.  So, it did little - if anything - to stem the core of concern still prevalent within the community.
It is therefore of little surprise that anecdotal stories from agents, who maintain official figures that are under reported and rules are being flouted, continue to carry more weight. And a debate, which now walks a fine line between being termed racist or otherwise - continues unabated.
What’s going on?
Rising property prices - the product of the plot of land that sits underneath the structure - are unashamedly promoted in most modern economies as the key driver to boost the privatised wealth of its nation, with the hope the payoff effect will feed other areas of consumption.   
They are no longer just national affairs, but open to international speculation and investment, of which Australia is by no means immune.
When the federal government states in its policy document that it “welcomes foreign investment” which:
 “Has helped build Australia’s economy and will continue to enhance the wellbeing of Australians, by supporting economic growth and prosperity.”
You can assume toward the top of that list is the investment into the land market – residential or otherwise.  And as official figures <a href="https://www.firb.gov.au/content/Publications/AnnualReports/2012-2013/index.asp">show</a>, few – if any - applications are ever turned down and real estate captures the majority interest.
The recent recessions that have occurred in other countries as a result of their own residential speculative booms, have merely accentuated these international patterns of investment and migration.
For example, following the GFC, the number of foreign-born workers leaving Britain rose by nearly 30% as the government set about removing 300,000 skilled jobs from the list of positions open to workers from outside the European Union - evidently fearing political backlash from somewhat unsubstantiated claims, that this was significantly ‘harming’ British jobs and thus not aiding rising unemployment or the economy as a whole.
At the same time, distressed nations opened their doors to opportune investors from around the globe, who were encouraged to take advantage of now uniquely ‘cheap’ real estate markets, in a vain attempt to kick off a recovery in their own local terrains.  
It was only a few years ago, stories were littering the main stream media highlighting the surge of demand for USA properties, as spruikers made benefit of our strong Aussie dollar to lure local investors to purchase previously owner-occupied foreclosures and instead turn them into investor owned speculative rentals.  
None of this has assisted the home buying sector in America’s property market. 
Ownership rates continue to fall and local buyers remain priced out.
But the government cares little – the gains in property are the silver lining Obama needs to maintain popularity. And he had no hesitation in boasting as such when he <a href="https://blogs.wsj.com/washwire/2013/08/06/text-of-obama-speech-on-homeownership/">recently</a> stated:
”Today, our housing market is healing!” (Healing!) “Home prices are rising at the fastest pace in seven years.”
Faster even than incomes it seems, with first home buyers at their lowest level since the crisis began.
Premium localities in the cities of New York and London are openly marketed as ‘safe havens’ for the internationally wealthy.  Isolated from the local economy as local workers are forced out and rumours of homes laying vacant for much of year provoke neighbourhood outrage.
It’s now reported that in London for every <a href="https://www.ft.com/intl/cms/s/2/aeb87918-e560-11e2-ad1a-00144feabdc0">minute</a> you spend on the three Underground stops between Earls Court and Sloane Square, property prices rise by £96,647.
However (as with Australia), outside of half-hearted central bank ‘don’t spend too much’ warnings, there is little rush to limit the inflationary rises. 
This pattern is always the same.  It’s allowable to let productivity and industry fail whilst small businesses suffer, but woe to the government who allows the privatised wealth fund of its aging population endure any such demise.
Australia’s changing landscape
Australia is internationally marketed as the ‘lucky country’, an economic star on the world stage from which we derive much benefit. 
Population growth throughout the GFC was barely dented – and like every other country, we tow away the poor, whilst targeting skilled migrants, or those with dollars to invest.
Over the last census period alone, Melbourne’s population expanded by nearly 355,000 new residents and continues to grow at pace of roughly 2% per year.
Additionally, its population has grown in diversity, with the traditional European migrants of Greece and Italy falling as a proportion, whilst the growing number to our shores now comes from both China and India.
 <img src="/images/2014/03/17/cashmore-march-17-one.jpg" width="460">
Note: Settlers = skilled and family reunion migrants, along with humanitarian visas and refugees
The same trend is mirrored in NSW – projected to reach 8.4 million by 2060. Migrations to the harbour town also come increasingly from both China and India, as demonstrated below.  
<img src="/images/2014/03/17/cashmore%20march%2017%20two.jpg" width="460">
When, under Julia Gillard, the Government commissioned a white paper on ‘The Asian Century’ designed to:
“Generate a set of general propositions to guide policy development over the long-term.”
The importance and potential magnitude of Asia’s dominance on the world stage was emphasised, by Julia Gillard when in a speech she asserted:
“We are now seeing the most profound rebalancing of global wealth and power in the period since the United States emerged as a major power in the world.”
No kidding!
Indeed, it would be hard to over-estimate the economic force Asia holds for our local economy.
It will shape the most important social, cultural, business, domestic and foreign policy implications we will face in the decades to come.
By 2025 the Asian region will account for almost half of the world’s output and also be the world’s largest consumer – and if we play our cards right, Australia is best placed to advantage.
It’s not just the 1% of billionaires seeking out safe havens abroad in what’s been termed the “largest and most rapid wealth migrations of our time.” But the rise of China’s consumer class – middle income individuals, discretionary spenders, whose wealth goes largely under-reported in a  “grey economy” of illegal and quasi-legal activities.
If trend continues, in a few years, China will become the world’s richest country, and India won’t be far in its wake.
The number of Asian students studying on our shores is at record highs.
Trade flows, research and business development, education, tourism, and increased levels of migration have benefitted us significantly in recent years - and the potential to capitalise on the productive sectors of our economy remain.
Whilst the Gillard government’s white paper - now firmly locked into <a href="https://asiancentury.dpmc.gov.au/">“archive status,”</a> - remains a useful form of reference.  It was widely criticised at the time, for its vague approach as yet another study, which like a PHD paper is good in content, but lacks any hint of direct action.
It claimed that Australian manufacturing was expected to ‘grow,’ with wishy-washy advice on how firms must:
 “Adapt by anticipating changes in their markets, building the talents of their people and constantly innovating and lifting their productivity.”
Claims which now seem laughable.
We allowed the profits from the ‘once in a century’ mining boom to fall into private hands.
As Sydney Morning Herald's economics editor <a href="https://www.smh.com.au/business/comment-and-analysis/whos-taxing-who-and-who-pays-the-rent-20140228-33rb1">Ross Griffiths</a> recently clarified in his commentary on Abbott’s efforts to remove the mining tax: 
“There is a lot of ‘unearned’ economic rent associated with the exploitation of limited mineral deposits,” and countries like Australia would be “mugs not to tax much of that rent rather than letting largely foreign companies walk away with most of it.”
‘Mugs’ we are.
But what about land?
Asia’s influence is marketed as positive news; however, the one area that receives the most overwhelming negativity is its influence on our real estate market, precisely because of the some of the issues hinted in the paragraph above.
We have little, if any, understanding of the accumulated wealth is brought into the country and recent settlers have little experience with the local market, or misleading practices surrounding real estate price quoting.
This lack of transparency and education within the industry itself needs addressing; however, it’s a subject I’ll explore further in another column.
The geographical location of land is fixed and limited in supply. Therefore we can’t all benefit from economic advantage gained from ownership of the best seats in town without effective taxation of the resource.
A correctly administered broad based land value tax (as explained <a href="https://www.macrobusiness.com.au/2013/11/land-tax-must-kill-negative-gearing-stamp-duty/">here</a> – reducing taxes on productivity) would not only encourage the good utilisation of land, but if handled efficiently, gains could be fed back into the community to assist increased investment into infrastructure and social services.
This would further aid both the expansion and development of our cities, with the flow on effect ideally taking the speculative element out of the housing market and assist in reducing its destructive influence on prices. 
This alone, would go a long way to reducing the wealth <a href="https://www.macrobusiness.com.au/2014/02/housing-and-the-inequality-divide/">inequality</a> currently experienced in our big cities.
Presently, we’re doing a great job of building an abundance of cheap, high density, and no so inexpensive apartment blocks, full of small one and two bedroom flats, often no more than 60 square metres inside. Great for student renters - but do little to meet the needs of our biggest residential sector – family buyers with children. 
Therefore, the above issues need to be tackled from ground up policy reform – significantly on the <a href="https://www.macrobusiness.com.au/2013/11/urban-zoning-and-affordable-housing-are-opposites/">supply side</a>.
Offshore investment must be solely channelled into creating new supply – and audited to ensure the conditions stated in current laws are being adhered to.  
I’m not holding my breath, but hopefully some of these will be explored in detail and ‘maybe’ go so far as being implemented following the Senate inquiry later this year.     
We can’t – and wouldn’t want to - stop migration.  But we can ensure wealth invested in our established real estate market, is utilised effectively.
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catherinecashmore-6LXia3pPQj

We need to direct foreign investment in real estate effectively - not stop it

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Australia’s unemployment rate remained steady at 6% in February, in line with economists’ predictions.
The latest figures from the Australian Bureau of Statistics show the number of people employed in February grew by 47,300 jobs to 11,530,800, with an increase in full-time positions driving the growth.
Full-time employment increased by 80,500 jobs, but was offset by a fall in part-time employment, which was down 33,300 positions.
While the number of new jobs was up overall, there was still an <a href="https://www.smartcompany.com.au/growth/economy/36017-unemployment-rate-steady-in-february-reject-shop-managing-director-resigns-shoply-acquires-wowbaby-midday-roundup" target="_blank">increase in the number of unemployed people</a>, as the number of people out of work rose by 9,800 to 742,200 in February.
The figures, however, have caused some confusion, as people question how the number of jobs could have increased at the same time as the number of unemployed people.
JP Morgan economist Tom Kennedy told SmartCompany the result is influenced by the labour force participation rate.
“It all maps back to the participation rate. Labour force participation was quite strong, increasing by 2/10, meaning there were more people employed, or more people looking for work,” he says.
“When this happens you can get an uplift in employment, a rise in unemployment or an increase in both. In this case it was the latter and while there were almost 50,000 jobs created, there were also more people out there looking for work who were reclassified to be included in the labour force.”
The labour force participation rate now stands at 64.8%, an increase of 0.2 percentage points, according to the latest figures from the ABS.
In trend terms, the less volatile unemployment figure, which eliminates month-to-month discrepancies, rose from 5.9% to 6%.
On a state basis, the Australian Capital Territory has the lowest rate of unemployment, with the percentage of people out of work dropping from 3.6% to 3.4%.
Tasmania also recorded a fall in unemployment, but it still maintains the highest level of unemployment in the country, with 7.4% of people out of work.
The highest rise in unemployment occurred in Western Australia, with unemployment jumping from 5.2% to 5.9%.
Overall, Kennedy says in February there was a slight “uptick” in the labour market.
“The growth in full-time jobs was actually the second strongest on record dating back to 1976. However there are distortions in the data,” he says.
“The jobless rate held steady at 6%, which is consistent with what we predicted and this generally gives the best indication of how unemployment is tracking.”
Toward the end of the year JP Morgan predicts unemployment will reach 6.5%.
“It won’t come as a shock to us or the Reserve Bank, which predicts it will peak around the beginning of 2015,” Kennedy says.
Kennedy says when the jobless rate increases, it has broader economic impacts.
“When the jobless rate moves higher it suggests wage growth is soft and that the economy is running sub trend,” he says.
“Consumption is likely to remain soft going forward. As income growth is low, there won’t be much discretionary spending. Consumer sentiment is also likely to be subdued and this is clear looking at the Westpac-Melbourne Institute Index of Consumer Sentiment which has dropped around 10% in the last few months.”
This article first appeared on <a href="https://wwww.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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yredrup-o4Anfe78KF

More people in full-time work, but an extra 10,000 unemployed: What the unemployment figures really mean

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Landlord Watch Australia has taken the concept of a tenant blacklist and turned it on its head - how about a blacklist for landlords?
With the tagline "A safe and secure home is a need essential to human happiness and well-being" the <a href="https://www.landlordwatch.com.au/%20" target="_blank">Landlord Watch website</a> asks tenants to dob in their dodgy landlords, and provides "top five" lists of 'Bad Landlords' as well as the 'Rotten Realtor' of the year. It's not all bad news, there's also a 'Lovely Landlord Award'. Announced in July, it seems that last year they didn't present a landlord with this award as they didn't receive a single entrant for it. "We automatically review ratings submitted by tenants, but you can also nominate your realtor by email. Realtors can be nominated for the award at any time. We accept nominations from whistleblowers including advocates, officials, and neighbours. Please provide as much information as you can, including correspondence, photos, video footage, and so on," the site says. The not-for-profit was created in 2012 by two tenants, and it is located in New South Wales and Victoria. To make the bad landlord list, there's a judging criteria. Here are a few of the items taken into account:
<ul>
<li>Compliance with a tenant's human rights</li>
<li>Compliance with legal obligations</li>
<li>Compliance with contractual obligations</li>
<li>Community and media interest in the issue</li>
<li>Direct or indirect discrimination against tenants on the basis of gender, family status, sexual preference, age, race, etc</li>
<li>Denial of procedural fairness or natural justice</li>
<li>Consequences and impact of their conduct on the tenant and their family members.</li>
<li>Number of persons affected</li>
</ul>
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Are you on Australia's landlord blacklist?

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Meriton Group’s property management arm, called Meriton Property Services, says that they have an average vacancy rate of 0.5% across their 3,000 apartments in Sydney.
This compares to the city’s average vacancy rate of 1.7%, according to SQM Research.
Meriton managing director Harry Triguboff said that they have the advantage having built the entire blocks.
He notes that the positioning of the apartments, the generous sizes, and the fact that they’re well-appointed and close to public transport have helped them perform.
In addition they also station an onsite building manager, or caretaker, to each property to ensure that they are maintained correctly.
The 0.5% is a record low for the company.
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Harry Triguboff’s Sydney property management arm has 0.5% vacancy rate

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Work has begun on an IKEA story in Sydney's <a href="/news">Marsden Park</a>, north-west of the CBD.
The 76,000 square metre site in Sydney Business Park on which the store will be built is four times the size of the Sydney Cricket Ground. The store will take up 28,500 square metres.
A breaking the ground ceremony was recently held at the site (pictured above, L-R: Federal member for Chifley, Ed Husic, IKEA country manager, David Hood, NSW Premier Barry O’Farrell, Sydney Business Park development director, Owen Walsh)
Australia country manager for IKEA, David Hood, said that this is a result of the demand from new homes being developed.
“With the new homes that are being developed locally and an increasing number of families moving in, this new store is an important step in IKEA making its range of affordable, well-designed home furnishing products available to as many people as possible," said Hood.
“This new store will benefit our customers in Sydney’s northwest by providing more space to showcase our inspirational home furnishing ideas and improved accessibility."
This will be the second largest IKEA store in New South Wales, and will include 850 car parking spaces, staffed children's play facility, 5,750 square metres of Markethall, 5,753 square metres of showroom, a 450-seat IKEA restaurant and 7,600 products.
It is scheduled to open in June 2015, after a 15-month build. It will reportedly create 320 new jobs.
However, it won't be without competition. Woolworths has acquired a site, with <a href="/news/nsw/diy-battle-heats-up-with-woolworths-to-build-masters-store-in-marsden-park">rumours it is for a Masters Home Building store</a>.
Other big-name brands have also moved in, including <a href="/expert-insights/investing/costco-is-set-to-open-up-its-seventh-store-in-australia-in-sydneys-marsden-park">Costco, who will open their seventh Australian store</a> in the area. A <a href="/news/strong-buyer-demand-for-greenways-first-house-and-land-package-release">number of new house and land developments have also been announced</a>, or are under construction, nearby.
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Sydney welcomes IKEA to Marsden Park as area heats up

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HE SAID: 

<img alt="" src="/images/stories/2014/03/14/jc-silhouette-6.jpg" style="float: right;">

No – except in alpine regions where the design makes structural sense because the high-pitched roof line can handle a lot of snow without buckling under the stress.

While I appreciate the affordability of A-Frame houses, generally I think the designs are unattractive - especially when an extension is tacked on the side.

Often located in mountain and seaside locales, cartoonish looking A-Frame dwellings (mostly built during the 1950s, 60s and 70s) can be the least expensive houses for sale in a particular area due to their distinctive pyramid-shape design with limited buyer appeal.

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Two weeks ago, a turquoise-blue painted <a href="https://www.realestate.com.au/property-house-nsw-callala+beach-107224748" target="_blank">A-Frame house at Callala Beach</a> (on the NSW South Coast, pictured below) sold for $470,000 through Kelly Sprowles of Callala First National Callala Bay. Situated directly opposite the beach, the two-storey abode (with two bedrooms and two living areas) stands on an 803 square metre block.

<img src="/images/stories/2014/03/14/he%20said%201.jpg" width="460"> 

In January, a <a href="https://www.realestate.com.au/property-duplex+semi+detached-qld-rainbow+beach-112164691">twin A-Frame dwelling at Queensland’s Rainbow Beach</a> (pictured below) sold for $310,000 through Rodney Gray of Rainbow Beach Realty.  Sold as a deceased estate, the Cooloola Drive property was marketed as a holiday home or an investment opportunity given both dwellings were tenanted.

<img height="345" src="/images/stories/2014/03/14/he%20said%202.jpg" width="460">

At Hobart in Tasmania, <a href="https://www.realestate.com.au/property-house-tas-fern+tree-112249295" target="_blank">a one-bedroom A-Frame home</a> (pictured below) sold for $240,000 last September through Mike Speakman of Petrusma Property Sandy Bay. Set on an elevated 1,955 square metre block in Fern Tree, the house has sweeping views to the ocean. With its huge glass walls, I think it looks like a hydroponic laboratory.

<img alt="" src="/images/stories/2014/03/14/he-said-7.jpg">

In Queensland’s Toowoomba, <a href="https://www.realestate.com.au/property-house-qld-east+toowoomba-114416147">a substantial A-Frame house</a> (on a 730 square metre block, pictured below) sold for $350,000 last September through Lynn Maclean of Real Point Property Toowoomba. Spanning three levels, it has been listed for sale through expressions of interest in the price range of  $365,000 to $390,000.

<img height="345" src="/images/stories/2014/03/14/he%20said%204.jpg" width="460">

On the market in Victoria’s South Gippsland hamlet of Mirboo North (located 155 kilometres east of Melbourne), <a href="https://www.realestate.com.au/property-house-vic-mirboo+north-116249147" target="_blank">an A-Frame three-bedroom house</a> (pictured below) is for sale at $198,000 through Kaz Hughes of First National Real Estate Prom Country Mirboo North.

<img height="345" src="/images/stories/2014/03/14/he%20said%205.jpg" width="460">

And at Lawson in the upper Blue Mountains of NSW, a two-bedroom A-Frame house <a href="https://www.realestate.com.au/property-house-nsw-lawson-115249383" target="_blank">at 29 Vista Avenue</a> (pictured below) is for sale with price hopes of more than $319,000 through Gary Brown of First National Real Estate Mid-Mountains.

<img height="345" src="/images/stories/2014/03/14/he%20said%206.jpg" width="460">

 

SHE SAID:<img height="150" src="/images/stories/2014/03/14/mb-silhouette-5.jpg" style="float: left;" width="100">

Yes – but I think A-Frame designs are only suited to coastal and mountain holiday houses.

I’m rather fond of the A-Frame shape with its minimalist modern style. Relaxed getaways and happy holidays are what the A-Frame is all about.  Ideal for simple living and relaxed entertaining, these houses are designed to take advantage of mountain, lakefront or ocean views from floor-to-ceiling windows and outdoor decks.

Differing in size and style, A-Frame homes typically offer one-and-a-half to two or three levels of internal space with few vertical walls and an open-plan living area, sometimes with a fireplace or wood burning stove.

One such A-Frame that is ripe for a revamp is Wirreander at Mooney Mooney on the Hawkesbury River (pictured below). Owned by the same family for decades, it would be an idyllic weekender.

Set on 16.19 hectares and accessible only by boat, <a href="https://www.realestate.com.au/property-acreage+semi+rural-nsw-mooney+mooney-113587047" target="_blank">the property is being sold</a> with all the house furnishings as well as a single cylinder generator, lawn mower, a 14 foot boat (with 40 hp motor) and a trailer. 
For sale at $599,000 through Jeff Rudge of Hawkesbury River Real Estate Brooklyn, Wirreander is one of the priciest A-Frame holiday houses on the market near Sydney.

<img height="345" src="/images/stories/2014/03/14/she%20said%201.jpg" width="460">

Characterized by a triangular roof, the A-Frame design was popularized from the mid-1950s to early 1970s by middle-class American families with money to spare on vacation cottages and second homes - and Australian families followed suit.

The first American A-Frame residence was a holiday house <a href="https://architecture.about.com/od/houses/ss/Schindlers-A-Frame.htm" target="_blank">designed in 1936 by modernist architect, Rudolph Schindler</a>, who worked with Frank Lloyd Wright. Set in a resort community on the hills above Lake Arrowhead in California, it was built for Gisela Bennati, a costume designer, who wanted an inexpensive holiday cottage.

Of open-plan design, Schindler’s house (pictured below) with its glass gables and A-shaped roof almost reaching the ground, was well ahead of its time.

<img alt="" src="/images/stories/2014/03/14/she-said-10.jpg">

Photo courtesy of About.com. 

In 1951, John Carden Campbell, a San Francisco architect, received acclaim for his modernist A-Frame model (known as “Leisure House”) displayed at the Francisco Arts Festival. The following year, Campbell built his own “Leisure House” on a wooded hillside in Mill Valley, across from the Golden Gate Bridge. Featuring smooth plywood with all-white interiors, his simple and affordable A-frame designs spread nationwide via do-it-yourself kits and plans.

<img height="328" src="/images/stories/2014/03/14/she%20said%203.jpg" width="460">

Photo courtesy of <a href="https://aframehistory.com/book/leisurehouse.htm" target="_blank">aframehistory.com</a>

A-Frame holiday home designs propelled to prominence and took off like wildfire, after a house, designed by architect Andrew Geller, was featured in a 1957 edition of the New York Times. <a href="https://www.propertyobserver.com.au/https://blog.archpaper.com/wordpress/archives/15502" target="_blank">Known as Elizabeth Reece house</a>, it was built in Sagaponack, New York.

<img height="360" src="/images/stories/2014/03/14/she%20said%204.jpg" width="460">

Elizabeth Reese House, 1955, Sagaponack, New York, Courtesy of Jake Gorst/archpaper.com 

After peaking in popularity during the 1960s, the enthusiasm for A-Frame vacation homes waned in the 1970s when people opted to build bigger holiday houses or buy holiday apartments in beachside areas.

Throughout Australia, A-Frame holiday houses often are listed for sale in beautiful coastal and mountain villages. An ideal weekender which traded recently is <a href="https://www.realestate.com.au/property-house-vic-st+andrews+beach-113668995" target="_blank">an A-Frame home at St Andrews Beach</a> on Victoria’s Mornington Peninsula (pictured below). Sold for $451,ooo in December through Michael Christodoulou and Mal McInnes of Hocking Stuart Blairgowrie, it stands on a 856 square metre block in Sandy Road, just a few minutes walk from Rye Ocean Beach.

<img height="345" src="/images/stories/2014/03/14/she%20said%205.jpg" width="460">

At Recherche, a beautiful bay on the south-eastern coast of Tasmania, the price of a substantial A-Frame holiday house recently was reduced by $73,000. For sale at $452,000,<a href="https://www.realestate.com.au/property-house-tas-recherche-105759205" target="_blank"> the Cockle Creek Road property</a> (pictured below) is only 40 metres from the beach.

With beautiful water views across Recherche Bay to the Southern Ocean, the three-level A-Frame House is a self-sufficient home with solar power and a back-up generator. Also on the property is a separate two-bedroom wood heated unit. With a registered mooring in the bay, the property is located in a protected Wilderness and State Forest area with excellent fishing and magnificent bushwalking on the doorstep.

<img height="345" src="/images/stories/2014/03/14/she%20said%206.jpg" width="460">

Also in Tasmania, <a href="https://www.realestate.com.au/property-house-tas-sisters+beach-115754023" target="_blank">an A-Frame holiday cottage at Sisters Beach is for sale</a> (with all its goods and chattels on a “walk-in walk-out” basis, pictured below) with price hopes of more than $200,000 through Dennis Wragg of Roberts Real Estate Wynyard. Near Rocky Cape National Park on the island’s north-west coast, Sisters Beach is renowned for its long sandy beach, fishing, boating and bushwalking on tracks through the National Park.

<img height="345" src="/images/stories/2014/03/14/she%20said%207.jpg" width="460">

For Victorian ski enthusiasts, a <a href="https://www.realestate.com.au/property-house-vic-dinner+plain-111441039" target="_blank">modern A-Frame holiday house at Dinner Plain</a> (13 kilometres from Mount Hotham) is for sale at $520,000 through Lee Rourke of John H Castran Pty Ltd Melbourne. With five bedrooms, two bathrooms, a sauna and two storerooms, the vast snow chalet (pictured below) could be used in summer as well as during the season for Dinner Plain offers a wide range of summer activities including bush walking, horse riding, mountain biking and tennis.

<img height="345" src="/images/stories/2014/03/14/she%20said%208.jpg" width="460">

While Jonathan and I don’t agree about most things A-Frame, we do concur the style of A-Frame houses with a chopped-off roof is a hideous. Examples of this style can be seen in the NSW Snowy Mountains town of East Jindabyne where <a href="https://www.realestate.com.au/property-house-nsw-east+jindabyne-106068521" target="_blank">a two-level A-Frame house</a> sold for $225,ooo four years ago.

Marketed as the cheapest freestanding house in East Jindabyne or Jindabyne, it was built in the early 1960s as a fishing and skiing getaway. This A-frame shape was typical of many holiday homes built in East Jindabyne at that time.

<img height="345" src="/images/stories/2014/03/14/she%20said%209.jpg" width="460">
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jchancellor-FAypfDUnLy

A-Frame houses, do they work? He Said/She Said

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Many property owners have considered moving out and turning their original home into an investment property - and there are a number of benefits to this. You can avoid hefty selling and buying costs if you want to purchase another property, you can attain the flexibility of a renting lifestyle, perhaps in a more affordable area and you already know the area so well.
However, is this really the right approach for you? Here are five questions you need to be asking yourself if you want to convert your home into an investment.
<ol>
<li>
Are you willing to 'let go' emotionally? If your heart and soul are in that home and you're intending to put it on the rental market, then you need to ensure you are going to be able to handle any tenant damage, wear and tear or other issues that could make you the landlord from hell. You also want to ensure that you're not just keeping the property due to this inability to 'let go' that may cloud your judgement about its future potential. 
</li>
<li>
Did you buy your current home as an investment in the first place? If you did not - then does it stack up in terms of investment fundamentals? You may have purchased well, but it might not necessarily be the best place to park your money. Perhaps you bought there as it was close to your friends or family, or near to your workplace. Remember that what attracts you, might not attract other people. If you can't justify why the area is a good investment, then stop right now and reconsider - you might be missing out on the opportunities elsewhere by holding on to a lemon. 
</li>
<li>
What is the reason you are moving? You may be moving for a specific, unrelated reason or because it has always been the plan. But it might also be something about the property or area that you dislike. If the neighbours or the noise is driving you out then it might prompt you to ask yourself whether this is something that will keep the price down into the future. 
</li>
<li>
Can you afford to hold it as an investment? If you're looking to buy elsewhere and hold onto this current property, then you need to step back and look at the affordability equation. How long can that property stay vacant until you start feeling the pressure? Is it actually financially better for you to rent another property instead of buying? How much debt will you be in? What sort of rent will the property achieve? Speak to your accountant and your broker and have a think about what happens if you lose your job or the worst happens. You will also want to see what funds you need to pay to get the property "investment ready". This may include necessary renovations or upgrades, cleaning, new smoke alarms or other costs that many do not consider. 
</li>
<li>
Are you willing to lose your PPOR benefits, such as CGT exemption? There are a number of benefits to owning a primary place of residence rather than converting it into an investment. One of these is an exemption on Capital Gains Tax. You will still potentially achieve a partial exemption, but depending on how long it takes for you to sell and the proportion of ownership time compared to renting will dictate much of what you will pay. Similarly, if you received a government grant - have you fulfilled your obligations under that grant, such as length of time you need to have lived in the home?</li>
</ol>
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