<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the official departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The entity that submitted the plans is directed&nbsp;by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil's son.

Sunland paid $9.5 million for the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue late last year, and are now seeking to build a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="9b5ace00-dd04-4875-a2dc-1b7583c2da24" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_2.png?VersionId=GfaTxcd9XPo3IZ.jP9pGjYYrmx7i7iCQ" />

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

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The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

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

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

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

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

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

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

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

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

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

Insurance

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The non<a href="https://www.brokernews.com.au/tools/people//121276/">-</a>major lender MyState has announced it will offer loans up to 85% loan to value ratio (LVR) without lender's mortgage insurance (LMI). MyState says it will be available to select borrowers, available only through brokers. It is also available through The Rock Building Society.
It will be offered to residential borrowers in Melbourne and Sydney and other mainland metropolitan districts with <a href="https://www.genworth.com.au/docs/downloads/location-guidejanuary2013.pdf?Status=Master" target="_blank">Genworth Category 1 postcodes</a>. 
The maximum loan amount will be $1 million.
The borrowers must have clear credit with no defaults along with stable employment of two years full<a href="https://www.brokernews.com.au/tools/people//121276/">-</a>time or longer with the same employer.
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jchancellor-FAypfDUnLy

MyState loosens LMI requirement for Genworth Category 1 postcode buyers

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Genworth Australia chief commercial officer Bridget Sakr says that consumers have some common misconceptions about lenders mortgage insurance (LMI), which are often due to a lack of understanding about what it is.
Sakr notes that they’re here to clear the record with <a href="https://www.genworth.com.au/lmifactually/welcome" target="_blank">LMI Factually</a> – a digital platform where property investors, first home buyers, mortgage brokers and industry leaders discuss LMI.
She says that misunderstandings may have deterred people from considering it as viable to help them enter the market.
“The reality is there are many consumers, brokers and leading business figures who are advocates for the product and even use it personally,” she explains.
This has spurred on a series of video interviews with leading industry figures such as Century 21’s Charles Tarbey, Finance Made Easy’s Tony Bice, Aussie Home Loans’ John Symonds and Empire Property Portfolios’ Chris Gray.
“LMI Factually aims to showcase a number of these views while encouraging Australians to learn more about the product and decide whether it is an appropriate product for their circumstances,” said Sakr.
“Achieving the dream of homeownership is one of the most exciting accomplishments in life for many Australians. However, it can also be one of life’s most difficult challenges due to the length of time it takes for most people to save the traditional 20 per cent deposit.”
If you want to know more about LMI, you can read this article where <a href="/expert-insights/finance/how-buying-lenders-mortgage-insurance-can-allow-you-to-grow-your-property-assets-faster">Chan &amp; Naylor’s Albertus Waldron explains how it can get you into a property quicker</a>.
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jduke-EHk3XBmHkn

Genworth looking to clear up “common misconceptions” with new online portal

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GUEST OBSERVATION
All lenders require building insurance before a loan settles, but what about the very thing that is going to repay the loan? You!
Whilst we don't necessarily want banks enforcing borrowers to take up their insurance, as an investor or anyone that is taking on any type of debt it’s vital that you review your personal insurances (life, trauma and disability) as well as income protection.  
The funny thing is people will insure their cars, boats and even pets without hesitation, but when it comes down to the bigger assets like their lives and their property portfolios, their coverage too often falls well short.  As a mortgage broker, this is unnerving when I consider that more than one in five Australian families will be impacted by an tragic event in their working lives, and 95% of those families will be underinsured.
I don't speak to my clients about the specifics of insurance, but I do refer them on to my top insurance advisor for health checks.  It’s scary how uninsured people are when it comes to their financial wellbeing.  In fact, in any unfortunate situation that one person that is inflicted with either a temporary or permanent disability or serious illness or worst-case death; the typical family income will drop by more than half. Can you imagine how a family or a person can survive after the living expenses like food, utilities, childcare and mortgage repayments come out. Let alone further costs through medical expenses.
<blockquote>
People will insure their cars, boats and even pets without hesitation, but when it comes down to the bigger assets like their lives and their property portfolios, their coverage too often falls well short.
</blockquote>
It’s easy to panic when you hear all the frightening statistics and react by calling up the first company that comes up under ‘risk insurance’ in your search, but beware of the offers like those on the television promising cheap cover with one quick call.  Risk insurance can be really quite complex to get right.  The best way to this is to speak to a top financial planner to get you the best value for your money and be adequately covered.
As part of the finance process, now mortgage brokers need to check that you are aware of insurance and if you think you are adequately covered. Most people assume they have enough cover in the superannuation but often don't know what it exactly is when asked.  It is common to think, as I used to think it myself, that when someone offered to review my insurances I was getting sold something I probably didn’t need.  Though times have changed, and as an investor today your debt levels are at higher levels, you need to take this into consideration.
I have been fortunate enough to not have a client be in the position to claim under their insurance and I hope that this is the case for all my future clients.  However, I have had people that I know personally that have been caught out by devastating events; if they were insured, their lives would be very different now.  A family friend had a stroke at, aged only 38; he has a lovely wife and three children. He ran his own business, and their whole lives changed as he was the sole income earner with no back up plan, or adequate insurances in place.  The pressure to return to work was massive, and still after five years he is still struggling with his health.  It is heartbreaking.
Imagine for a moment this was you.  As we forge ahead building up our investment portfolios, I feel we can sometimes take even our most basic provisions for granted.  Though imagine a life where not only paying essential household expenses presented a challenge, but dreams of education or holidays needed to be shelved indefinitely.
Even if you think you are covered it never hurts to get a second opinion, especially when it comes to the most important asset - your life.  A financial planner will give you a complimentary review for insurances and not charge any fees and a good time to check is always when you are applying for finance.
Life is important, not just yours, but your family’s as well.  If you’re not absolutely sure you are adequately covered, it might be time to get that health check.
Michelle Coleman is an award winning finance broker and managing director at <a href="https://www.wfinancial.com.au/" target="_blank">W Financial</a>.
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mcoleman-u4QTxPRvfF

Why do people not insure their lives and portfolio like they would their cars?

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The Australian Business Roundtable has released a report that argues better risk management and preventative actions could save up to $14.6 billion a year in recovery costs following natural disasters.
The roundtable group was formed in late 2012 following an unprecedented number of floods, storms and bushfires across Australia. Its members are the chief executive officers of Insurance Australia Group, Investa Property Group, Munich Re and Westpac, as well as the Australian Red Cross and Optus.
The Roundtable released a white paper last year estimating that the economic cost of natural disasters would rise to $23 billion a year by 2050 from about $6.3 billion now.
Property insurance costs have already risen dramatically as insurers have reassessed the risks and costs of natural disasters over the past few years. In areas of North Queensland in particular, the costs of insurance have become too high for some property owners to afford.
The claims bill for tropical cyclone Ita in Queensland in April was around $8.4 million, <a href="https://www.insurancecouncil.com.au/statistics" target="_blank">the Insurance Council of Australia estimates</a>. Bushfires in Perth in January cost $15 million and bushfires in NSW in October 2013 cost $183.4 million.
The latest Australian Business Roundtable report, Building an Open Platform for Natural Disaster Resilience Decisions, argues that well-planned investment focused on risk minimisation could save between $12.7 billion and $14.6 billion a year in disaster recovery costs.
It found natural disaster research could be difficult and costly to access and incomplete, which hampered efforts to manage and reduce risks of natural disasters. In some cases research was duplicated or was unsuitable for organisations that would find the information useful.
The report recommends:
<ol>
<li>Developing a single point of access to national information on topics such as flood elevation, the location of assets, the resilience of building materials and long-term weather patterns that could be used to protect homes and property nationally from natural disasters.</li>
<li>Removing restrictive barriers on accessing data and research by standardising research and addressing concerns such as unnecessary restrictive licensing.</li>
<li>Prioritising investment in helping communities to become resilient to natural disasters, especially in the highest risk areas.</li>
</ol>
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zfielding-GvX3Uq9KTa

Natural disaster preventive action and risk management could save over $14 billion a year

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A new report shows that home insurance companies are more profitable than banks in Australia.
The Fire Services Levy Monitor Allan Fells has called for greater competition in the industry.
“Insurance companies in Australia are more profitable than banks and this suggests an absence of effective competition. One of the things that would help drive effective competition is for consumers to be better informed,” said Fells.
Fells found that insurance consumers don’t have easy access to their coverage level, with no information about their risk assessment from insurance companies.
He called for a number of measures to improve transparency in the industry, including requirements that insurance companies:
<ul>
<li>Explain premium price changes when policies are up for renewal.</li>
<li>Provide more accessible information about what consumers are covered for under a policy and what they are not covered for.</li>
<li>Explain how they assess an individual’s risks like bushfire, flood and burglary – eg low, medium, high, very high risk.</li>
<li>Clearly indicate any statutory charges (eg stamp duty, GST, fire services levy), detailing them separately to the basic premium cost in the quote or invoice.</li>
<li>Explain what additional charges might be incurred as a result of choosing to pay insurance in instalments.</li>
</ul>
Source: The Office of the Fire Services Levy Monitor
According to Fells, Australia’s home insurance industry also need mandatory short form Product Disclosure Statements.
“Information about what is covered in the policy is often buried in a Product Disclosure Statement that are typically over 50 pages long,” said Fells.
“Other financial services products are subject to requirements to provide a more consumer-friendly, short-form Product Disclosure Statement.”
The Consumer Action Law Centre say the new report exposes “high profits, poor product and price disclosure and a severe lack of competition”.
Gerard Brody, chief executive of the Consumer Action Law Centre, says many people are paying too much for their home insurance due to industry practices, with the insurance industry promoting a false image of market competition by offering many brands.
“While there are many insurance brands in the marketplace, most consumers would not be aware that many brands are dominated by key insurers. The report finds that just three insurers—Suncorp Group, Insurance Australia Group, and QBE—had over 70% of the Victorian residential insurance in market in 2012-13,” says Brody.
He says consumers face difficulties comparing products due to complex and lengthy disclosure forms and unfair contract terms.
“For competition to be effective, we need simple products which can be easily compared with other policies. Comparing product disclosure statements is time consuming, difficult and, frankly, beyond the capabilities of many people,” says Brody.
"Policy terms and exclusions also need to be fair. We’ve seen a caravan insurance policy which said the owner wasn’t covered if the caravan was being towed. This type of ridiculous term can be hidden away in a policy document which is why it’s so important to understand your policy,” he says.
“But if consumers have to go through each contract with a fine tooth comb looking for hidden terms, they’re just going to tune out.”
The Consumer Action Law Centre receives a distribution of over-collected fire services levies, as agreed between the Fire Services Levy Monitor and insurers.
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jrichardson-uRX5hFdKfN

Big profits, bad disclosure in home insurance industry

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Hi Margaret,
I just settled and was having a look at the settlement and saw lender’s mortgage insurance (LMI) was charged as a lump sump straight out.
I would have preferred that LMI payment to be added on to the loan.
Can I change this now and how can I do this in future?
Should I wait next time so I don’t have to pay any LMI?
Kind regards,
B.
Margaret's answer on the next page. Please click below.
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Hi B,
LMI, also known as lender’s mortgage insurance, is a policy which is taken out by the bank, on your behalf, on any loans where the amount of that loan is greater than 80% of the total value of the property you are buying.  
The purpose of LMI is for the protection of the bank – if for some reason you default on your loan and do not repay it, the insurer will pay to the bank any shortfall between the loan balance and the sale price of the property, and then pursue you to get it back.  This might occur if you just stop paying the loan, or if you have a forced property sale and the property sells for less than what you owe to the bank.
The reason it applies to loans of more than 80% of the property’s value is that loans where the owner starts out with little equity are the ones most at risk. Where you borrow less than 80%, there is a greater chance that any forced sale would still recover enough to pay off the debt.
Be aware that although the insurance policy covers the bank (and not you), you pay the premium.  LMI does not cover you for any inability to meet repayments – and so it is not a policy for you, and if you want to cover your mortgage payment in the event of your incapacity to pay, you would need a mortgage repayment protection policy as well.
Where LMI is concerned, you usually have two options – to meet the payment yourself, or add it to the loan. Note that if you add it to your loan, not only will you increase your mortgage repayments (and essentially pay interest on this premium), you reduce the equity you have in the property.  This means you own less of the property, and it would then take you longer to gain the equity you need to leverage into the next property.  It is for this reason that I always advise borrowers who need LMI to meet the payment themselves, if possible.
It’s unlikely that you will now be able to go back and simply add it to the loan without paperwork.  The bank may, however (and depending upon the loan type) go back and reapprove your loan at a higher amount to allow you to  repay yourself for the LMI.  This is known as a loan increase and is possible with many loan types these days.  A loan increase is easier as it does not require a discharge of mortgage to be put in place - it’s just an additional advance of funds.  Note that in doing this you are changing the loan to valuation ratio further (as LMI can be up to 2% of the loan amount) which incurs further LMI again.
Be aware though that if this is an investment loan and you choose to do this, the interest on the amount you ‘draw back’ will not be tax deductible. The tax office will consider this amount to be a payment to you, and therefore of a ‘personal nature’, and so they will not allow deductibility on that portion of your interest.
Regards,
Margaret
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Do I have to pay LMI as a lump payment?

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The Australian Government Actuary’s latest strata title pricing report has the Insurance Council of Australia saying that the system in Queensland is efficient and that intervention cannot be justified.
This comes after the <a href="/expert-insights/north-queensland-strata-property-owners-slugged-with-massive-insurance-premium-increases">Strata Community Australia Queensland branch president Simon Barnard said that strata insurances had skyrocketed</a> – up 200% over the last five years in some instances.
This is the second report on Strata Title Insurance Price Rises in North Queensland, and ICA’s CEO Rob Whelan said that the conclusion is that North Queensland has much higher risk compared to other markets, and that pricing is “reasonable”.
“The Australian Government Actuary conducted a thorough and independent investigation using claims data going back to 2005-6. The report provides the facts about strata pricing in east coast and northern Australian insurance markets, and explains the complex pricing factors in play in the volatile North Queensland market,” said Whelan.
He said that the report notes insurers are not gouging and are instead providing appropriate risk-priced products after a period of underpricing, which now reflects the region’s exposure to cyclones.
“The report supports the evidence that insurers have provided to the Federal and Queensland governments since 2011, and also demonstrates that pricing is reasonable,” he said.
Despite noting that the prices are reasonable, Whelan said that they are looking into developing affordability initiatives looking to show the relationship between risk, available data and premiums.
“Market driven responses are the only practical and appropriate solution, and we implore governments to take this report into account before considering any form of intervention,” he said.
“The greatest risk for governments in market intervention is reduced competition and consequently further negative pricing pressures for consumers.”
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North Queensland strata insurance prices are reasonable: Insurance Council of Australia

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Owners of strata properties in North Queensland have been hit by insurance premium increases of up to 200% over the past five years and the industry is calling for action to alleviate the strain.
Strata Community Australia Queensland branch president Simon Barnard, who is also a principal of Hartley's Body Corporate Management, said skyrocketing strata insurance premiums were affecting owners’ corporations across North Queensland.
Barnard said under state laws, strata buildings must be insured to full replacement value.
“There’s no option to not insure or to self-insure and that put enormous pressure on owners and property values. In some cases the debts became worth more than the properties,” he said.
Between 2007 and 2012, strata premiums in North Queensland rose by around 200% as strata insurance underwriters realised they had previously under-priced their policies in the wake of Cyclone Yasi.
Barnard said there was currently no mechanism for insurers to use to differentiate risk between individual properties.
“If you’ve got a brand new building that’s cyclone rated next to an old one that’s not, they are currently paying the same insurance,” he said.
North Queensland presents a greater risk to insurers than other regions as it is more prone to severe weather events. An Australian Government Actuary study in 2012 found that strata insurers in the region spent $130 on claims, commissions and operating expenses for every $100 of premium they earned.
At present only two insurers – IAG and Suncorp – offer cover to new strata buildings in North Queensland. Other strata insurers have exited the North Queensland market, or limited their exposure by only offering renewals.
Barnard said more competition would help to lower premiums, as would measures to allow insurers to better assess the risks of individual strata properties.
The federal government released a discussion paper examining the high cost of home and strata title insurance in North Queensland on 9 May and is calling for submissions by 2 June.
Minister for Finance Mathias Cormann noted in the discussion paper that homeowners in North Queensland were paying premiums around two and a half times higher than Queenslanders who live in the state’s south.
The paper also noted that home contents insurance prices across Australia had risen at twice the rate of the consumer price index since 2009, while home buildings insurance prices had risen at six times CPI.
Properties in North Queensland were worst affected with average premiums for combined home and contents policies in that region around two and a half times those in Queensland’s southern cities.
Average premiums for home and contents insurance for a property with no or little flood risk for a sum insured of about $300,000 for building and $80,000 for contents could range from $3,000 to $6,000 a year.
Adding to the costs for owners’ corporations, the Queensland state government has recently lifted stamp duty on strata insurance products to 9% from 7.5%.
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North Queensland strata property owners slugged with massive insurance premium increases

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Personal insurance isn’t something that property investors should ignore, warns EPS Property Search director Patrick Bright.
Australia is one of the most underinsured developed countries in the world, Bright said, and many investors are failing to adequately protect themselves.
“Before you sign a contract to purchase a property you should have the appropriate insurances in place, at the very least income protection,” said Bright.
“You not only want to protect your 10% deposit in case something unforeseen happens between exchange and settlement but you want to know that you can complete settlement.”
He said that one of the quickest ways to lose your home is through unpredictable occurrences that stop your ability to earn. Many property investors consider burglary, tenant damage or natural disaster, but then fail to consider the possibility of dying or getting ill.
Pointing to an Australian and New Zealand Institute of Insurance and Finance study on the Victorian Black Saturday bushfires, he noted that for 171 people who died – less than $1 million was paid out in life insurance.
“You need to insure the person who is paying for the asset rather than just insuring the asset itself,” he explains.
“Ask yourself how your family will manage if one of the breadwinners becomes sick or dies? Do you have the necessary income protection and life insurances in place to protect your assets and allow your family to continue their quality of life rather than being forced to sell the family home?”
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Investor warning: Don’t ignore your personal insurance

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It sounds unpalatable, and certainly no one would wish for it, however if a tenant dies in your rental property, there are a number of implications that you should be prepared for.
While landlord insurance can cover you in the event of a tenant's death, different policies offer varying levels of cover, explains EBM Insurance Brokers' RentCover division general manager, Sharon Fox-Slater.
“The financial costs vary depending on the situation. There can be direct costs, in terms of lost rent and clean-ups, and indirect costs if a property is slower to re-lease because of the associated stigma. Most landlord insurance provides some cover if a tenant dies, although the extent varies depending on your insurer," Fox-Slater explained.
She cites the example of a pay out they made to one investor, in the tragic event of a murder suicide in Melbourne, where a $50,000 repair bill and further $22,000 of lost rent over a 10-month period were funded by ther policy.
New carpet, tiling and repainting was required. Other claims included a $17,000 loss of rent over 11 months due to a tenant in Perth's passing and the real estate agent's difficulty tracking down next of kin to recover their goods.
Another case mentioned by Fox-Slater included a Melbourne tenant who committed suicide and had no next of kin. In this case, the State Trustee becomes responsible and the landlord was unable to access the premises until the possessions were auctioned and a funeral had been held. The lost rent paid out in this case was $11,000.
Frequently, for tenants living alone, the landlord or the property manager can be the person making the discovery of a death, when looking to find out why rent has not been paid.
“Dealing with a family that is grieving can make negotiations around issues like clearing out possessions quite difficult. However, many property investors aren’t in a position where they can afford to lose money indefinitely," she said.
10 tips to bear in mind in the event that a death may occur:
<ol>
<li>Be tactful, sensitive and compassionate in all dealings with the tenant’s family and friends. 
</li>
<li>Contact the next of kin and pay your respects. 
</li>
<li>Ask the next of kin who they would like you to deal with regarding the property. 
</li>
<li>Contact your insurer to ask about your cover and what paperwork is required to make a claim, for example a death certificate or published funeral notice. 
</li>
<li>If police are involved, liaise with the officer in charge of the investigation as to when access can be expected. 
</li>
<li>Organise a meeting with the person nominated by the next of kin about plans for vacating the property. Approach the conversation tactfully. 
</li>
<li>Offer the person contacts for firms who might be able to help pack, sort and store possessions until the family is ready to deal with them. 
</li>
<li>Be sensitive about the timing of any open for inspections or other contact – being mindful of events such as the funeral. 
</li>
<li>When the property is vacated, clean it, using specialist assistance if necessary, and re-advertise it for lease. 
</li>
<li>Keep all receipts and records to assist in your landlord insurance claim.</li>
</ol>
Source: RentCover
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