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

<html><body>
As more property data is released we are fast seeing concerning scenarios that raise more questions than answers.
Although it was not well documented it is clear that the previous Labor government relaxed foreign ownership regulations to appease the state governments who were experiencing revenue drains, as these changes then topped up stamp duty revenues. The only problem is that the two standout property players are Chinese buyers and investors who are busily topping up their self-managed superannuation funds (SMSF).
Given that the Abbott government decided that a Housing Minister was not warranted in their new government, it appears that the weight of this portfolio now rests firmly on the shoulders of Reserve Bank Governor Glenn Stevens who is trying to balance Australia’s property imbalance.
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.
There is very little that the Australian government can do about the SMSFs, we are hearing strong rumours that in the May Budget the government will shut down the Chinese property splurge. Which many will argue is a good move for the long-term property markets given the overseas buyers are paying over and above the expected market price. More particularly with the Abbott government fighting opinion polls, such a move could vastly improve its consumer ratings.
With the Reserve Bank of Australia (RBA) deciding to leave the cash rate at 2.50% for the foreseeable future, such a move would open the property markets up again to the first home buyers who have been swamped by the overseas buyers and investors. The RBA released their financial aggregates to January 2014 this week which shows that investment and housing lending has reached $1.33 trillion. This now takes investment loan accounts to 32.9% of all loans, which is the highest ever recorded in Australia.
<a href="https://www.rwm.com.au/files/2014/03/18-02-2014-3-02-34-PM.jpg"><img class="aligncenter size-full wp-image-8454" src="https://www.rwm.com.au/files/2014/03/18-02-2014-3-02-34-PM.jpg" alt="18-02-2014 3-02-34 PM" width="460" height="279"></a>
Let’s face it, whilst new housing construction data showed an increase this month we are kidding ourselves if we believe we are keeping up with market demand. A recent study by Digital Finance Analytics estimated that over the next three years Australia will need more than 900,000 new properties to meet demand, when over the last 12 months Australia only managed to achieve 183,000 units. That would be a fail with a capital F! Given that <a href="https://www.smh.com.au/business/property/locals-priced-out-by-24b-chinese-property-splurge-20140305-346hd" target="_blank" title="locals priced out by $24b Chinese property splurge">locals priced out by $24b Chinese property splurge</a> where a report by Credit Suisse said: “A generation of Australians are being priced out of the property market. Many face a life time of renting.”
<a href="https://www.rwm.com.au/files/2014/03/3-03-2014-9-42-07-AM.jpg"><img class="aligncenter size-full wp-image-8456" src="https://www.rwm.com.au/files/2014/03/3-03-2014-9-42-07-AM.jpg" alt="3-03-2014 9-42-07 AM" width="460" height="244"></a>
Another factor that will have significant repercussions was the decision by the Canadian government on February 11 that a 28 – year old visa scheme designed to attract wealthy foreigners to the country would be axed, effective immediately. This announcement will bring greater attention to Australian real estate markets, which in turn will add additional pressures on the local markets to compete against the tsunami of funds coming into the country. Once word gets out that the Australian government could follow that same path as the Canadian government we will see quite possibly the strongest and most aggressive foreign acquisition activity ever seen before in Australia.
<a href="https://www.rwm.com.au/files/2014/03/28-02-2014-4-11-49-PM.jpg"><img class="aligncenter size-full wp-image-8458" src="https://www.rwm.com.au/files/2014/03/28-02-2014-4-11-49-PM.jpg" alt="28-02-2014 4-11-49 PM" width="460" height="273"></a>
We are right in the middle of the four week period in 2013 when Mosman houses sat above the 100 mark – it now appears that it is highly likely that Mosman won’t break the 100 mark in 2014. Should this be the case then that would the first time in decades that this has happened.
The simple reality of our property markets are that stock levels are at all-time lows which place that responsibility firmly at the state and federal governments where significant policy changes will need to be implemented. The current Senate inquiry into affordable housing won’t offer an iota of intelligent reasoning or solutions.
What remains to be seen is whether or not the Treasurer Joe Hockey has the fortitude to make such a decision? My tip is that yes he will.
 
</body></html>

robertsimeon-hRNTwJyXkQ

The end of the great Chinese property splurge?

<html><body>
With misleading <a href="https://www.propertyobserver.com.au/western-australia/we-buy-houses-claims-from-rent-to-buy-promoters-prompts-fine/2014030568189" target="_blank">rent to buy schemes</a> gaining momentum and property spruikers increasingly<a href="https://www.propertyobserver.com.au/queensland/cancer-patients-and-pensioners-found-to-be-victims-of-gold-coast-financial-scam/2014021267745" target="_blank"> targeting the elderly and the ill</a>, the dodgy practices of a few are threatening to tarnish the reputation of the property industry. Properties, once considered safe and reliable investments, are increasingly being used by unethical operators to victimise those looking for a stable source of income.
<img src="/images/stories/2014/03/07/jc-profile.jpg" alt="jc-profile" width="125" height="150" style="float: right;">A predator in the property sphere may cost someone their retirement savings, their biggest asset or their home. Jonathan Chancellor, editor at large of Property Observer, says there are a number of ways to spot an investment trap.
"Dodgy operators try to get you into something without allowing you a second opinion from your accountant or solicitor, and sometimes not even your partner or spouse, given the intensity of their “act now” imperative.
"But no deal being pushed by a spruiker is going to simply disappear overnight. If it did, they would be out of business.
"So you are entitled to sleep on it - without signing anything - cooling off promise notwithstanding.
"And then overnight, take the time to just do some simple research. The internet makes it easy. Research the sales person, their team and their potentially dodgy practices in online chat rooms, which have plenty of feedback on the worst of cases. Then research the property, its neighbourhood and the promised returns.
"If it still looks good, then getting an independent legal and financial review of any transaction could save you your hard earn income in the long term.
<blockquote>
"Remember, property investment falls largely outside the jurisdiction of major regulators, so you are on your own.
</blockquote>
"You ought to sign only once you are completely comfortable with the clarity of the offering. Quite simply, if you lack investment knowledge - and who doesn't - then you need an independent advisor. They could be your savvy estate agent or mortgage broker acting as an honorary sounding board, or a non-commissioned professional who preferably doesn't charge over the top, but who knows their stuff."
 
While strict regulations exist for financial advisors and real estate agents, property advisors, or “spruikers” operate in much more nebulous territory. They could be a regular on the investment seminar circuit, the face of an investment scheme or your own accountant. With such unclear waters, property investors are left largely to take care of themselves. Property Observer approached some leading advocates of ethical operations in property field to ask them about how to spot a dodgy operator.
 
<img src="/images/stories/2014/03/07/ben-kingsley-profile-2.jpg" alt="ben-kingsley-profile-2" width="113" height="150" style="float: right;">Ben Kingsley, chair of the <a href="https://www.pipa.asn.au/" target="_blank">Property Investment Professionals of Australia</a> (PIPA) and chief executive of <a href="https://empowerwealth.com.au/" target="_blank">Empower Wealth Advisory</a>
Unfortunately our property investment industry remains unregulated. Given that property is such a high value transaction, which can attract large commissions and incentivised sales campaigns from builders and developers, it naturally attracts some operators who are more interested in their own self-gain than the investment returns of their clients.
For me the two main warning signs of a dodgy operator are:
<ol>
<li>
A reluctance, or even worse, a total refusal to talk about or disclose how much they are being paid for recommending a property.
</li>
<li>
A hard sell in terms of what property they are pushing. Usually the classic line about acting now, as ‘this opportunity won’t last’.
</li>
</ol>
In any field of work there is always a chance that a ‘bad egg’ or two will find their way into a professional environment, even if their profession is licensed or regulated in some way.
Having said that, PIPA is steadfast in its belief that regulation is necessary in order to limit these kinds of operators.
When it comes to steering clear of dodgy operators, PIPA’s advice is to be very cautious, do your due diligence, ask plenty of questions and don’t be rushed into anything.
Article continues on next page. Please click below.
                     
<hr class="system-pagebreak">
<img src="/images/stories/2014/03/07/jacque-parker-porfile-3.png" alt="jacque-parker-porfile-3" width="113" height="150" style="float: right;">
Jacque Parker, director of <a href="https://housesearchaustralia.com.au/" target="_blank">House Search Australia,</a> president of the <a href="https://rebaa.com.au/" target="_blank">Real Estate Buyer's Agents Association of Australia</a> (REBAA)
When seeking a property advisor, including a buyer's agent:
<ol>
<li>Ensure they are appropriately licensed with their relevant state or territory licensing body, for example, the Office of Fair Trading.  This entails a simple check online via the Department of Fair Trading and also provides consumers with information on how long the operator has been in business for.</li>
<li>Ensure they are members of a professional industry body, like their state Real Estate Institute or preferably REBAA, for buyer's agents.</li>
<li>Confirm they are appropriately insured with personal indemnity cover, as this affords consumer protection.</li>
<li>An important question to ask a buyer’s agent is whether they are truly “exclusive” or “independent”. If they accept sales commission from vendors or developers then they cannot be classified as “independent” as they are acting in the interests of the seller.</li>
<li>Ask for references of recent clients and speak to them if possible. If a buyer’s agent can’t provide you with recent buyers, then there’s something wrong.</li>
</ol>
        
<img src="/images/stories/2014/03/07/jenman-profile.jpg" alt="jenman-profile" width="113" height="150" style="float: right;">Neil Jenman, property commentator, consumer advocate and <a href="https://www.jenman.com.au/index.php" target="_blank">investigative writer</a>
Honest people, straight people have always got something wrong with them. They make a mistakes, they muck up. Dodgy spruikers have nothing wrong with them. Their websites are perfect, their pitches are perfect – there won’t be anything wrong with them whatsoever, because they’ve gone to great lengths to whitewash their image completely.
They’ll quote statistics to scare people, most of which are made up. They’ll say things like “most people are going to be poor in their old age”.
Another one is the claim that they’ve “carefully researched properties for prime growth areas” – this is just doublespeak for “the developer is telling me to get people to invest here”.
The way that apartment buildings and developments used to be sold was with a full page ad in the Sunday newspapers. Now, there aren’t any ads in the paper, because property spruikers are getting commissions ranging up to $50,000 per property.
The developer will go to an accountant and say, “Listen, all your clients need to invest in something, they need tax deductions” – which means a loss. “If you get them to invest in one of our projects, we’ll give you $50,000 per property.”
They’ll often call themselves a club – this is a big warning sign. And they might not say it, but they’ll give the impression that they’re doing this out of love and helping the community. The word “club” is one of the worst things. There are right now about 15 or 20 dodgy spruiking outfits that refer to themselves as “clubs”. It’s not just in the property industry either; it’s also spread to the finance industry.
There is so much money to be made, because people are afraid of being poor; especially the elderly. I went through a copy of the Financial Review seven years back and cut out all the ads where people were offering high interest rates. There were about 11 of them, all targeting older people, with photos of elderly people walking on the beach, that sort of thing. I waited five years to see what had happened to those companies – every single one had gone into receivership.
[Of those who aren’t familiar with property investing and want to protect themselves] They should go to an ordinary real estate agent in an ordinary suburb. And buy an ordinary house, in ordinary times.
Years ago – when you wanted to buy a property, you went to the local real estate agent. Now, real estate agents are like angels compared to some of these property spruikers.
<a href="mailto:jrichardson@propertyobserver.com.au" target="_blank">jrichardson@propertyobserver.com.au</a>
                            
</body></html>

jrichardson-uRX5hFdKfN

Exclusive: How to spot a dodgy operator - tips from the experts 

<html><body>
The grand ‘success story’ is a marketing technique and also a caricature that is instantly recognizable in the real estate world. Whether it is a rags to riches story, the underdog winning against the odds, or just someone doing well with an investment – they are stories that everyone loves to tell and loves to read.
However, as is often asked of fairy tales, what happens when the curtain comes down and the happy ending has been reached? What happens after the story ends up in the waste paper bin?
A typical story emerged with two rent to buy practitioners in Western Australia. They were incredibly young when they started out. Siblings Patricia Mirawati Susilo and Bryan Artawijaya Susilo, the brother of the sibling pair being just 17 years old and still at school, attended a seminar and they became, like many others, hooked on property and the dream of making money through real estate.
Last week, Property Observer reported that they <a href="https://decisions.justice.wa.gov.au/supreme/supdcsn.nsf/judgment.xsp?documentId=0A4F904B45F9C89548257C8C001BBF99&amp;action=openDocument" target="_blank">had been fined for misleading and deceptive conduct by the Supreme Court of Western Australia</a>.  The pair were given penalties and ordered to pay costs to a total of more than $30,000.
Bryan has just turned 20 – his birthday was last month. But how did they get from being wide-eyed youths at a property wealth building seminar, to slightly stunned adults at the court house?
The court documents revealed that the pair had learnt about rent to buy from a course in Sydney that cost them $20,000 for four days, after an initial free seminar. The court records did not note who the provider of the course or the seminar was. The siblings set up Buy Houses Easy and began a small rent to buy business in Western Australia. They also have the website Easy Home Solutions, where Bryan is the main phone contact and his name is cited in the testimonials. His phone was turned off when Property Observer called.
Patricia, director of their self-created ‘Buy Houses Easy’, was operating without a real estate license and the court ruled that many of the terms they used on their advertising material were misleading or deceptive.
The promoter who taught the Susilos appears to have initially paid their court costs and provided the legal advice until the end of last year when everything changed, and the siblings did an about turn and pleaded guilty. At the time of publishing, it was unclear exactly who funded these legal costs.
The Susilos, softly-spoken Patricia and bolder younger brother Bryan, attended their first seminar in North Perth, held by TGR Seminars Pty Ltd and hosted by Stuart Zadel. It was 2009, and they had never done anything with property before, nor had they attended any other seminars at that time. The siblings, who have spent most of their lives in Perth, were told about the event by their father, who asked them to come with him. One of the sessions within the seminar was a ‘rent to buy’ presentation.
Zadel has since told Property Observer that given the reputation of the seminar industry, he has gone to great lengths to bring honesty, integrity, transparency and longevity to the industry with his events, noting that he is committed to making a difference in the world and always giving back to the community and environment. "Zadel Property Education is an established, well-respected personal development and property education company offering leading-edge information to inspire prosperity for all," he said of the events.
In a ‘success story’ interview with Zadel, Patricia explained that it was important to their father that they start a business and work together and that they saw an opportunity to do this through the information provided at the seminar. You can <a href="https://stuartzadel.com/stuart2012/wp-content/uploads/audios/patricia_and_brian_part1.mp3" target="_blank">hear the full interview online</a>, although the video has been removed from the <a href="https://stuartzadel.com/stuart2012/podcast/success-story-patricia-and-bryan-age-is-no-barrier-part-i/" target="_blank">main page of their success story</a>.
“I was at highschool at that stage, she [Patricia] was at work in an accounting firm doing auditing, doing this and that. When we first came to Stuart we had very little background in terms of doing our own business. Never bought a property before, never done any renovations, we were pretty fresh off the block,” Bryan told Zadel.
Their youth, heavily focused on in the interview, was said to be unusual, with the majority of people going to the seminars being significantly older.
The Susilos explained that they sometimes experienced difficulties due to people’s perception of them as inexperienced. Some people “don’t believe that we own the houses,” explains Patricia. However, she goes on to say that the potential clients eventually “get over” the sibling’s youth, as they appear to know what they’re doing.
“That’s fantastic,” says Zadel.
Bryan laughs remembering the first time he put his new skills into practice.
“I still remember the first meeting I had with someone who was selling their house. It was traumatizing,” he muses.
<blockquote>
“I still remember the first meeting I had with someone who was selling their house. It was traumatizing,” he muses.
</blockquote>
The first year of their business was slow. “The first year we only had one go through,” explains Patricia.
“It was slow,” says Bryan, “the first three quarters of that year were almost uneventful.”
As of the interview, they said they had about eight deals altogether that had gone through.
“We were starting from ground zero, no financial resources, no experience, we had the support, we had the resources from Stuart and his strategies… for that reason, our first few, some we had to let go in the sense that we weren’t in a financial position to commit from them… since then in the last 12 months we had [about five] deals stack up,” Patricia explains.
“We’re making, on average, around $30,000 per house,” she told Zadel at the time.
Evidence shown in court amounted to four property transactions. The profit received on these transactions was described in the judgment as including $2,825 on a Huntingdale property, and $17,676 on an Orelia property.
Further research has found that the ‘hand over’ course from the seminar, which the students told the Court their parents paid $20,000 for them to attend, was that from best-selling author of How to buy a house for one dollar, rent to buy promoter Rick Otton. This was not mentioned in the success story interview the siblings did with Zadel and was gleaned from further searching. Zadel tells Property Observer that this is the norm for his business and not undertaken with anything sinister in mind.
"In relation to the online "success interview", our long-standing company policy with such interviews is to focus on highlighting personal success with strategies and approaches, not the specific teacher," he said of the interview.
"The last time my company worked with Mr Otton in Western Australia was in April 2012. Around that time, we became aware of potential regulatory issues with Mr Otton's rent to buy strategy in that state (but in no other states), and immediately withdrew it from our program," he said.
"In all my legal agreements with my speakers, it is made very clear, amongst many other requirements, that: "All statements made by the Speaker during the event are true and accurate and not misleading in any way and any opinion given by the Speaker during the event is based on the Speaker's reasonable belief"."
At the time of writing, Otton has images of Bryan and Patricia on his Facebook (screenshots below) and refers to them as the ‘BKs’, or the ‘Big Kahunas’, in one of the 2012-uploaded images. This is a term he regularly gives to his successful students.
<img src="/images/stories/2014/03/10/facebook-march-10-one.jpg" alt="">
<img src="/images/stories/2014/03/10/facebook-march-10-three.jpg" alt="">
Source: Facebook 
The course went on for five days, and the judgement explains that it included information on many aspects, such as promotion, sales methods and documentations and also had a lawyer speak at one of the sessions.
The Susilos also paid $1,000 a month in ongoing mentoring fees after this date, which Justice Beech at the Supreme Court of Western Australia, believed to express the faith the siblings held in the course and its presenters.
“The defendants' evidence is that they followed what they were taught at the courses, including in the advertising of their business and the sales the subject of these proceedings. This evidence was not challenged, and I accept it,” said Justice Beech.
While it was claimed that they did not know at the time that their actions were misleading, "The Company Website Conduct was deliberate in that Ms Susilo knew that her business did not buy houses and knew that she derived fees and commissions. However, she believed, based on the course she had done, that the business did buy houses in a broader, non-technical sense of the word," the judgement ruled.
"Nevertheless, given the defendants' age and inexperience, and what they had been told at seminars, their beliefs might be said to be understandable."
<a href="https://www.thenaysayer.net" target="_blank">Consumer advocate blogger at Naysayer</a>, Carolyn Bond who previously co-ran the Consumer Action Law Centre in Victoria, and the Consumer Credit Legal Centre for 15 years, and has held numerous advisory body positions as consumer representative, has weighed in on what some of the recent judgments mean for others in Western Australia. She also told Property Observer that she has spoken to a number of those who have been involved in similar activities.
“While the court didn’t specifically discuss the reference to options in the legislation, I suspect that as far as “creative” property strategies, the question of whether an estate agent’s licence is required in WA (and possibly the rest of the country) may have been settled,” Bond writes in <a href="https://thenaysayer.net/2014/03/08/big-comeuppance-for-big-kahunas/" target="_blank">her most recent post Big Comeuppance for Big Kahunas</a>.
She also notes the following that rent to buy promoters can learn from:
Hold a real estate agents licence. if you are doing rent to buy or be very confident of any legal advice that indicates you don’t need one. While the licence decision was based on WA legislation, the wording of the decision suggests that the definition of ‘real estate transaction’ in other states’ legislation would be adequate to require that rent-to-buy operators hold a real estate agent’s licence.
Fix up your website, ads and signs. The Court relied on the Australian Consumer Law (Commonwealth) in finding the various statements to be misleading, so it is likely that similar statements would be found to be misleading in all other states.  While there could be prosecutions in other states for conduct over prior years, it’s better to comply late than never.
You can’t use the excuse “someone taught me". The problem for any seminar students is that it is not a defence to prosecution to say that someone suggested, or taught them to make particular representations. 
Unjust contracts. The decision relating to the exorbitant house price was based on the NSW Contracts Review Act.  However, this legislation contains similar provisions to the unjust provisions in the NCCP.  While purchasers in the same position in another state may not obtain a similar outcome from a deal which is not in the course of business, similar provisions of the NCCP may apply if a party is in the business of providing credit, or holds a credit licence.
Source: Naysayers Blog
And, finally, she indicates that there are many other rent to buy operators in Western Australia who are using very similar methods as those seen by the Susilos, and who are no doubt concerned as to whether they are compliant with the law.
The active, or soon to be active, nature of the rent to buy industry in Western Australia was also mentioned by Justice Beech.
<blockquote>
The active, or soon to be active, nature of the rent to buy industry in Western Australia was also mentioned by Justice Beech.
</blockquote>
"It is open to infer from the defendants' evidence that there is, or is likely to be, an active rent to buy industry. Some of the participants may have attended the same seminars and may be liable to engage in marketing and promotions strategies that raise questions of misleading conduct under the ACL. That engages the need for general deterrence. In any event, the object of general deterrence applies more widely," continued the judgment.
Both of the siblings, along with the fines, received three year injunctions requiring them not to engage in rent to buy real estate transactions without a license or without working for a licensee and not to represent that they "buy houses" unless they intend to acquire a freehold title.
They were also told not to represent that they are the owners, jointly or solely, of properties they are selling unless they are the owners and not to represent to buyers that they can purchase without a bank loan unless there are reasonable grounds for this.
Beech told them that accurate and complete statements of the money payable by prospective buyers under the arrangement must be provided, that rent to buy arrangements are not immediate sales of the property and this must be disclosed and that the promoters must also disclose what revenue they will attain from the arrangement.
When Rick Otton, director of We Buy Houses, was contacted by Property Observer he said that he was in a seminar but agreed to answer some questions by email.
He responded to the questions, which have been reproduced in their entirety below:
<ol>
<li>
 When did the Susilos become involved with you, and how did you meet them? Many people have attended my trainings at some stage over the last 15 years as these strategies have become more main steam (sic) and popular both here in Australia and overseas the solicitors handle the legal aspects at these events. Most attendees go to other seminars covering the same subject areas 
</li>
<li>
What support did you provide to the siblings through the court proceedings? (Including help with legal advice etc?) I did not believe that prosecuting a 17 school boy in the supreme court was in anybodies best interest let alone the expense or the message it would send to other young Australians for what ended up being a legal technicality. 
</li>
<li>
I have read a comment online that is said to be from yourself about the case on Australian Property Forum here: <a href="https://australianpropertyforum.com/single/?p=8444000&amp;t=9755161" target="_blank">https://australianpropertyforum.com/single/?p=8444000&amp;t=9755161</a>. Was this your post? [No response provided, and after a follow up email was sent Otton said that he would have to chase it up, as much of this is outsourced] 
</li>
<li>
Do you intend to alter the way you teach your students as a result of this? What are your overall thoughts on the judgement? Guidelines have now been set regarding advertising which offers more clarity as the industry is growing and constantly changing, as a result the industry has adapted. I'm glad but not surprised that the Justice agreed that all the strategies are legal. 
</li>
<li>
Had any of these issues as presented by Justice Beech been on your radar previously? This case has been ongoing for over two years as nobody could clearly define all variations in the way Australians now transact property The market is changing and therefore a lot of what was old does not necessarily apply to the needs of people today. The Justice agreed with our side on many issues raised by the commissioner of WA . On a couple of points he agreed with the WA commissioner 
</li>
<li>
Any other comments you think are pertinent. I believe that the way Australians transact real estate is ever changing as it is in other parts of the world.... In all areas of life change is inevitable, you can try to stop it or accept it and develop guidelines that accommodate the change</li>
</ol>
 
That there has been a crackdown on rent to buy in Western Australia, with Consumer Protection Commissioner, Anne Driscoll, leading the charge has been no secret in the industry. In fact, on their website there is <a href="https://www.commerce.wa.gov.au/ConsumerProtection/Content/Property_renting/Buying_and_selling/Rent_to_buy_schemes" target="_blank">a list of the warnings and court proceedings in regards to rent to buy</a>.
Rick Otton’s seminars have already been the subject of a voluntary ban in the state, <a href="https://www.google.com/url?q=https://www.propertyobserver.com.au/western-australia/best-selling-property-investment-author-s-wa-seminars-banned-dept-of-commerce/2013111266316&amp;sa=U&amp;ei=cS8dU5KnDY-FogST54CoCg&amp;ved=0CAYQFjAA&amp;client=internal-uds-cse&amp;usg=AFQjCNF4zFh4lif72QuiT-4uZ1SXOAKbng">as reported back in November last year due to potentially misleading advertising</a>. Action in other states and territories around the issue hasn’t yet been as pronounced.
Meanwhile, Zadel noted that this case had "nothing remotely to do with my business, which anyone who takes the time to read the publicly-available online judgment will realise."
As for the Susilos, one can only hope that their real estate dreams haven’t necessarily been broken and that they realize there is an appropriate method for everything. As well as that it's necessary to comply with the law - particularly when dealing with many peoples' most valuable asset and lifeline. It was noted in court that Patricia currently works as a credit assessor, while Bryan relied from the funds coming in through the business, as well as on his parents.
<a href="https://mail.privatemedia.com.au/owa/redir.aspx?C=UaqQaCzKr0mPHBbYLZDRkDI8X8tjD9EI6oITOZGSRU_X9kxubKT8jj90VXO4-8fs30k5GCGiPSU.&amp;URL=mailto%3ajduke%40propertyobserver.com.au">jduke@propertyobserver.com.au</a>
Note: The article has been updated to reflect comments provided by Stuart Zadel post-publication 
</body></html>

jduke-EHk3XBmHkn

From seminar to success story… to getting fined in the Supreme Court of Western Australia: How it happened

<html><body>
GUEST OBSERVATION
No matter how many investment properties you have or plan to have, assessing your risk profile before you purchase is vital.
Your attitude towards risk may affect what types of properties would better suit you. Everyone will most likely have a different attitude towards risk based on their own situation and future goals. What may be considered a risky property by one may be considered a safe option by another.
However, if you don’t do your research and you’re not 100% sure what your comfort levels are, you may end up purchasing a property that will end up costing you financially and emotionally.
So how can you calculate how much risk you can handle? Firstly, your personality will play a part in establishing your risk tolerance. For example, if you have a more conservative nature and tend to worry more, your risk tolerance may be lower than someone who is more of a go-getter. Although it is important not to let your emotions affect your investing decisions, you should still know how much risk you can handle so you don’t lose sleep over your decisions.  
Some other factors that may affect your attitude towards risk include:
Personal life: Are you single, married or have kids? Do you have a stable career? These factors could affect how much risk you are willing to take on.
For example, if you have a family to provide for, you may opt to purchase a property in an area with a lower rental yield, but a strong occupancy rate, giving you the stability of constant rental income to help pay off the mortgage.
However, if you are single and are able to cover the repayments without the rental income, you may be more willing to choose an area that has a higher rental yield, but a lower occupancy rate.
Money habits: Whether you are a habitual saver or live from pay to pay, your approach towards money may impact your risk tolerance.
For example, your money habits may influence which strategy you choose to build wealth on your investment property. When purchasing a property, investors need to decide whether to focus on capital growth or the rental income.
Some property investors find rental income less risky as the property pays them more than it costs to own it<ins cite="mailto:Melissa%20Urquhart" datetime="2014-01-09T15:39"> </ins>and comes to you in regular instalments rather than a capital gain which can be unpredictable.
Past experiences: Having past investment experience may affect your attitude towards risk.
If you have had bad experiences or big losses, your tolerance for risk may be lower.
However, if you have managed to successfully get through rough times before; riskier investments may not bother you as much.
Income: If you have a solid, stable career with a regular income, you may be more willing to take on extra risk compared to someone who does not have a regular income stream.
For example, areas such as mining towns may be more appealing if you have a regular income as the rental income will be high, but you can still meet repayments if the property is vacant. 
Although it will be hard to find an investment without risk, there are ways to meet your investing goals with being exposed to too much danger. Some strategies include:
<ul>
<li>Choose mainstream property investments: If you are new to the property market, it is best to steer clear of ‘get rich quick’ schemes. It may promise fast returns, but if you don’t know what you are doing, you could get into trouble. Remember, if it sounds too good to be true, it probably is.</li>
<li>Manage your finances: One of the main risks of property investing is relying on the rental income to repay your home loan. Most rental properties will experience vacant periods, so it is important for investors to ensure they have enough surplus funds to cover these vacant periods.</li>
<li>Select an investment that suits your needs and goals. Property experts are regularly releasing information on the up and coming investment hotspots and although an industry expert’s opinion may be valuable, this information is generalised and doesn’t take your own personal circumstances into account. Think carefully about what your needs and goals are and then look at properties that match this.</li>
</ul>
An investment is a serious financial commitment that can be extremely costly if you don’t know what you are doing. Extensive research and speaking with professionals will help you make informed investing decisions and give you a better chance of building a successful portfolio. 
Heidi Armstrong is the CEO for <a href="https://www.statecustodians.com.au/home-loans" target="_blank">State Custodians Mortgage Company</a>. As an expert in personal finance, securitised lending and the mortgage industry, Heidi is passionate about educating borrowers to help them make smart lending decisions.
</body></html>

jake-cSmGT7VXVf

How much risk can you handle? Assessing your risk profile

<html><body>
When owning a rental property, the safety of your tenants is in your hands. While this can be as a negative when it comes to investing in property, it’s still an aspect to be taken seriously. Disregard for the state of your rental can leave your tenant unwell and see you facing tribunal. Last year, the <a href="https://www.sunshinecoastdaily.com.au/news/mum-wants-out-of-mould/1265926/" target="_blank">Sunshine Coast Daily reported</a> about a woman claiming ill health due to a mould infused rental. Property Observer has also asked many times “<a href="/expert-insights/investing/is-your-tenant-living-in-squalor-this-video-is-hard-to-watch">Is your tenant living in squalor?</a>”. In the United States a number of landlords have faced lawsuits regarding mould and its effect on the health of tenants. Poorly ventilated properties are usually those most prone to mould and, while this can be in older homes, new homes do not get off the hook. The video below is of a property in Sydney – just two years old. Of particular note are the mould spores around the children’s room and bed.
{qtube vid:=kp4dwMrL1DU}
 A quick Google search online reveals forum post after forum post of different renters experiencing this problem, and many where tenants discuss respiratory difficulties and other ailments. In the above video, Just Think and Oz Real Estate TV’s Edwin Almeida explains that they use special equipment to expose the extent of what some tenants live with. “Our expert informed us; it is not what you see that you need to worry about as much as what needs to be seen with a blue light apparatus. The mould spores turn into shiny particles under the blue light and only then are we able to see where these toxins rest. In most cases the spores can be found on the other side of the homes, from where the naked eye sees the black stains. These spores become airborne and end up in the wardrobes, cold surfaces, enclosed areas and all over the furry toys children play with daily,” Almeida explains. “In most of the newly built apartment blocks post 2006, I have seen that the wet areas namely; bathrooms, laundries and kitchens, don’t have windows and these areas rely on mechanical ventilation to extract the humidity out of the room. Most of the time, the ventilation filters are seldom cleaned and at first they may be working at full capacity. However, the flexible ducting, which is meant to carry the moist air out, is usually compressed and twisted during the construction.” In a nutshell, the mechanical ventilation is failing. With fewer windows, smaller rooms and smaller rooms, ventilation problems are increasingly becoming a complaint. Investors dealing with a rental property with a mould issue should consider the following recommendations from Almeida: 
<ul>
<li>Act promptly on requests from tenants when they report musky smells in the property.</li>
<li>Identify dust-riddled areas and encourage these to be cleaned by the tenants regularly when conducting a mid-term reports. Dust and moisture is the breeding ground for mould.</li>
<li>Where possible assist the tenants by providing a dehumidifier to extract moist air from the apartment.</li>
<li>Encourage tenants to ventilate the apartments as much as possible even in winter.</li>
<li>Keep wet areas (rooms) ventilated and doors open when in use, mainly the laundry area when using the dryer.</li>
<li>Do not clean mould with bleach. Use commercial white vinegar with a tenth portion of methylated spirits andspray on effected surface then wipe clean. Re-spray the effected surface area with a fine mist of the same solution andallow it to dry, creating a barrier.</li>
<li>Do not paint over mould without first cleaning or properly preparing the surface area.</li>
<li>Contact a mould specialist immediately if the infestation is prevalent, as it is quite possible the entire home will require treatment as mould spores are airborne.</li>
</ul>
 <a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
</body></html>

One rental problem that may be opening you up to a lawsuit

<html><body>
The national construction sector has declined in February, according to the latest Australian Industry Group figures.
The Australian Performance of Construction Index (PCI) fell by four points to 44.2 in February, a 50% contraction in performance.
While house building continued to grow alongside commercial construction, a sharp drop in engineering and apartment building is being blamed for the pulling overall constriction figures down. New orders also fell to their lowest levels since July 2013.
In a statement, Ai Group director of public policy Peter Burn said developments in the construction sector reflected the conditions in the broader economy.
“The mining investment boom is fading, as seen in the sharp fall in engineering construction activity and new orders,” he says.
“Even though there is an accumulation of positive signs, other sectors are not filling the void.”
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank" rel="nofollow">SmartCompany</a>.
         
</body></html>

po-LsXgBTHBmX

Construction sector contracts further in February

Property Trivia: Medieval castles, top not-spots, the ‘X-factor’ of the market

<html><body>
Huang Shannian, a Chinese billionaire, was foundation chairman of the Zhouji Group, which became one of the top 20 shipbuilders in the world.
But in 2009 the Zhoushan Jinhaiwan Shipyard Co Ltd executive was queried by the CPC Central Commission for Discipline Inspection accused of constructing docks without National Development and Reform Commission approval.
Huang Shannian had been on the Huran Richest Chinese People 2008 list in 128th place, then in 2009, he ranked as the country's 88th-richest person, at 8,000,000,000 yuan in fortune. That was around A$3.5 billion.
But within a month of the list's 2009 publication, Huang Shannian, born October 1962, disappeared from public view.
Perhaps until now.
Last month Sydney's mystery purchaser of the $17 million penthouse in the Residence apartment complex over looking Hyde Park emerged as a Huang Shannian.
And Title Tattle can't but tempt the irresistible conclusion that they are the same tycoon, especially as the Sydney Huang Shannian directed an ASIC registered company, Zhouji Investments (Australia) Pty Ltd which was established in 2005.
He too was born in October 1962.
Title Tattle notes he has owned an apartment in Meriton's World Square since paying $1.3 million in 2006, with Min Lu, who was born in Zhejaing China.
Lu directs a series of companies under the Austino name which have invested at least $45 million in shopping centres, residential projects and offices. Min Lu and Zhou Ji Pty Ltd are behind the Austino property development group in Sydney.
But would such a high ranking Chinese tycoon really take a Westpac mortgage on the $17 million apartment?
The Sydney Huang Shannian did so, signing his name in Chinese (see below) with Jimmy Siu as his eligible witness. His lawyer was Derek Xu in the stamped signed paperwork showing the $1,130,000 stamp duty.
<img src="/images/stories/2014/03/06/signature-march-6.jpg" alt="signature-march-6" width="470" height="282">
And did he really operate initially out of a West Pennant Hills house on Mungarra Place when he first came from China? Title Tattle expects the answers will come from the cn internet chatrooms.
What makes Title Tattle really want to believe they are one and the same is the apartment was expressly marketed as number 88.
That's a lucky number hopefully even for Huang Shannian who in buying the penthouse would have bounced back quite nicely from the loss of his 88th place Huran rich list status.
 
<img src="/images/stories/flagtitletat.jpg" style="float: left; margin: 5px;">For a while in 2011 <a href="https://www.propertyobserver.com.au/residential/heather-ridout-%E2%80%93-now-on-the-reserve-bank-of-mosman-%E2%80%93-has-ridden-out-recessionary-downturns-title-tattle/2011120952768" target="_blank"> there was premature speculation</a> that Judith Neilson, the founder of the White Rabbit Collection, one of the world's most significant collections of Chinese contemporary art, had bought the penthouse. But it was not to happen.
Title Tattle wrote the sale of the penthouse of The Residence had become akin to pulling a rabbit out of a hat. The initial premature Australian Financial Reveiw September 2011 sale report even suggesting a very bullish $25 million. 
Back then Title Tattle envisaged any sale price as more likely to be somewhere around $18 million for the 810-square-metre two-level penthouse – known as apartment 88 at 18 College Street.  
The initial $25 million expectations purely came from when the penthouse was marketed to offshore Chinese buyers who the Australian developers hoped would pay a premium for the lucky number. 
There's no doubt the Hyde Park precinct, on the green fringe of the central business district, ranks among Sydney's priciest addresses. This 24-level Scott Carver designed College Street building – the gutted former NSW Police headquarters – has 87 five-star apartments with views across Hyde Park, the Opera House, St Mary’s Cathedral and Sydney Harbour. 
The facilities include a gymnasium, all-weather lap pool, sauna, spa and steam room, a residents’ lounge with a fully equipped kitchen and barbecue area and a 24-hour concierge service.The development also features a lockable, humidity-controlled wine room that can store a 100-bottle wine cellar for each resident.
The $350 million CBD tower was developed by Parmada in a venture with AMP Capital Investors, Galileo Group and Cbus Property, with the the sales through CBRE, Savills, Christie's International, Laing Real Estate, and Pagdens. The $17 million  sale of the Sulman penthouse was brokered through Nigel Napoli at Savills Residential Projects, according to the only offiicial comment to emerge from the sales network.
The lesser three-bedroom Archibald penthouse (pictured bewlow) in The Residence apartment tower remains on the market through CBRE.
{yoogallery src=[images/stories/2014/02/14/hyd]}
The last remaining penthouse in the complex comes with 690 square metre space designed by Sydney-based architectural firm Scott Carver with attention paid to its environmental efficiency. It was pulled from recent auction.
 
<img src="/images/stories/2013/08/511515.jpg" alt="511515" width="470" height="555">
<img src="/images/stories/flagtitletat.jpg" style="float: left; margin: 5px;">
It's not the first time there's been unravelling knowledge about the status of high ranking Chinese buyers of Sydney property.
Back in 2008 a Wolseley Road, Point Piper property sold for $32.4 million property.
Set high on a hill, above a towering sandstone wall and overlooking Sydney Harbour with picture postcard-perfect views of the bridge, Craig-y-Mor, the Point Piper non-waterfront residence  purchase was made just in the name of Jiang Mei.
Quietly during 2009, the name of the Wei Zeng was subsequently added to the title.
By late 2009 the couple were seeking its demolition, to be replaced by a $5 million new home, so they were both named for the first time in my much anticipated end-of-year Sydney Morning Herald Title Deeds Christmas party column.
Soon after the <a href="https://www.propertyobserver.com.au/residential/point-piper-on-the-chinese-tourist-route-for-insight-into-the-privileged-lives-of-communist-party-princelings/2011112852568" target="_blank">Chinese internet chat rooms had drawn the stunning conclusion</a> it was owned by a son of a former vice-president of China and his wife, Jiang noted for studying at the Beijing Dance Academy.
The proposed demolition hasn't taken place. But the buses of tourists from China seeking an insight into how the families of their leaders have made it in the outside world occasionally drive past. Title Tattle guesses College Street will soon be added to the itinerary.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
                        
</body></html>

jchancellor-FAypfDUnLy

Chinese riddle unravelling over the lucky penthouse 88 in Sydney's The Residence

<html><body>
QANTAS is dominating the headlines with results that are as bad as many expected, but nobody wanted to hear. Discussion has inevitably turned to how to save the airline, with the PM controversially advocating removing the restriction on foreign ownership of the airline. It is a debate that feels eerily familiar and I fear has no easy conclusion.
The connection between aviation and property isn’t immediately obvious, until you consider the heated debate that rages whenever the prospect of ‘foreign ownership’ looms large.
In real estate emotions run hot whenever reports emerge that Chinese buyers are outbidding Aussie mums and dads, driving domestic property prices out of reach of the masses. It seems that same level of emotion is bubbling around QANTAS, Australia’s national airline.
I have no problem with national pride and a desire to retain national assets, except often emotion and reality collide.
In property vendors are always seeking the best possible price. Naturally. In the global market these days there is a good possibility that might mean selling to an overseas investor. Let’s be clear -  I have never had a vendor stipulate the sale must only be to an Australian national.
In aviation travellers want to fly with an airline that is safe and inexpensive. But the reality is global competition has delivered a wide selection of airlines delivering equivalent service and safety to QANTAS. How many of us choose QANTAS because it is our national carrier if there is a more affordable alternative?
Perhaps that’s why the push is for governments to impose restrictions and regulations to restrict foreign ownership.  It removes the need for individuals to make those decisions.
Ewan Morton is managing director of the Sydney based <a rel="nofollow" href="https://www.mortonandmorton.com.au/" target="_blank">Morton &amp; Morton</a>. 
                           
</body></html>

emorton-DecMjPQt5h

Domestic or international? The parallels between QANTAS and property

<html><body>
More and more parents are helping their children get a kick start in the property market. This trend threatens to continue the upward trajectory of the market and make it almost impossible for average income earners – especially younger property seekers to buy their own homes with a kick start.
Late in 2013, I saw stories of parents buying their children properties outright. When asked why, they responded that the market will only get worse. If they don’t buy now, their child may never be able to afford their own house.
A property lawyer’s reasons for buying an apartment for his son’s sixth birthday were similar; even though the market is hot at the moment, there is a strong belief that the market will become ever more pricey.
Considered from another angle though; doesn’t this belief and such actions further drive up the market? If this trend continues, it is conceivable that only the children of high-income earners will be able to enter the market in areas of close proximity to the city.
The upward trajectory is not the only force behind this trend; the NSW government’s scrapping of the first home owner’s grant in favour of the first home – new home grant has also made it difficult for average income earners to enter the market around existing infrastructure.
Under the new scheme, grants are given to purchasers of new properties and those buying plots of land with the intention of building. The intention has been to promote investment in new developments. Since foreign investors are legally only able to purchase new developments, the competition is high. Many first home buyers are subsequently being forced out of the market.
Aside from buying the property outright or jointly, parents are helping in several ways. Some buy the house and rent it out to their children, who then effectively pay the mortgage repayments. Others help by providing guarantor support with either their home or help with the deposit.
I’d recommend entering into a written loan agreement to be protected via a second mortgage or caveat, so that in the event their child’s relationship with their spouse/partner breaks down, there is some protection for them.
Many others help by gifting or loaning their children the money for a deposit. Again, for protection, I’d recommend entering a binding financial agreement to ensure the gift or loan is repaid if the relationship fails.
What happens to those without parental support? If this trend continues, as it probably will, average income earners in search of their first home will struggle. They will most likely have to look to areas outside of Sydney, and continue to be pushed away from areas of employment and convenience.
Robert Projeski is the founder and managing director of <a href="https://www.amo.com.au/" rel="nofollow" target="_blank">Australian Mortgage Options</a>, winner of over 12 industry awards.
                                  
</body></html>

Latest Investing Insights

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News