The final apartments in the most recently completed new development in Balwyn present some of the largest and most exclusive ever delivered in one of Melbourne’s most established and character-rich neighbourhoods.

Boutique developer&nbsp;<a href="https://www.apartments.com.au/developers/wulff-projects">Wulff Projects</a>,&nbsp;alongside partner <a href="https://www.apartments.com.au/developers/pga-group">PGA Group</a>, has just finished <a href="https://www.apartments.com.au/buildings/threadneedle-balwyn-1-5-threadneedle-street-balwyn-vic-3103">Threadneedle</a>, 17 home-sized residences designed completely for the owner-occupier.

Named after its location on Threadneedle Street, the new project has been shaped by the heritage fabric of Balwyn. It offers two low-rise buildings of eight and nine apartments respectively, designed to emulate traditional standalone homes.&nbsp;

[smartcode_project:default project_id=27816 project_image_fid=355582]

John Scaramuzzino, Director at <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, explains the design intention.

“Given the quiet residential character of the street with many homes dating back to the 1930s and 1940s, we approached Threadneedle wanting to appear less as a collection of apartments and more as a traditional residence. This led to creating not one but two buildings that could “breathe” with larger garden-based apartments functioning more like small homes.”

[smartcode_project:default project_id=27816 project_image_fid=355605]

The north-facing residences are nestled among extensive landscaped gardens by Ben Scott Garden Design, with over one-third of the site dedicated to greenery. The resulting setting is one of calm seclusion, where architecture and landscape work in tandem to offer immediate liveability.

With construction now complete, the final apartments include a top-floor, single-level penthouse residence priced from $2.8 million. This home offers three bedrooms, a dedicated study, two bathrooms plus powder room, and three car spaces with an oversized storage room.&nbsp;

Interiors prioritise spatial comfort and natural light, with three-metre-high ceilings, oversized internal doors and a full-width terrace oriented to the north, east and west.&nbsp;

[smartcode_project:default project_id=27816 project_image_fid=355604]

Floor-to-ceiling double-glazed windows ensure thermal performance across seasons, supported by automated external blinds, zoned heating and cooling, and a fireplace for added ambiance.

Each apartment has been individually designed to maximise privacy and garden outlooks. Kitchens combine refined finishes with practical considerations: stone benchtops, butler’s pantry, full-height joinery and concealed rangehoods.&nbsp;

The inclusion of dedicated home offices responds to contemporary living patterns, while bathrooms feature sculptural bathtubs and brushed nickel fixtures.&nbsp;

[smartcode_project:default project_id=27816 project_image_fid=355590]

Threadneedle also integrates best-practice sustainability measures, achieving a 7 Star average NatHERS rating. Initiatives include solar PV systems, rainwater harvesting for toilet flushing and irrigation, and high-performing building insulation. These elements enhance daily comfort while reducing ongoing maintenance and energy demand.

"We believe Threadneedle sets a new standard of design excellence and building quality for Balwyn,"&nbsp;Scaramuzzino added.

"It’s an architectural response we’re particularly proud of, and one we’re sure residents will be equally proud to call home."

[smartcode_project_cta:default project_id=27816]

Staff Writer

Final homes remaining as Threadneedle, Balwyn completes construction

Joel Robinson

Sydney's top 15 new apartments developments set to launch in 2026

Developer-builder <a href="https://www.apartments.com.au/developers/dasco-australia">DASCO</a> has pushed beyond the now-standard inclusions of rooftop pools and landscaped podiums at its recently launched new Epping project, Senso.

It has laid out over 4,000 sqm of resident-only amenity in a move designed to compete directly with low-density housing on livability, not just density. The result is a development that supports genuine daily use through purposeful spaces distributed across its five-building, 479-apartment precinct.

[smartcode_project:default project_id=134954 project_image_fid=4396]

Two rooftop pools form the anchor of Senso. One is a 27-metre lap pool adjoining a heated spa, designed for everyday fitness rather than just summer leisure. The second sits on a lower podium, allowing different buildings to share in vertical access and reducing crowding during peak times.

It is the secondary spaces that start to distinguish Senso from other large-scale suburban projects. A rooftop cinema is integrated into a landscaped terrace, offering open-air screenings with natural ventilation and passive cooling.&nbsp;

The inclusion of a “sensory walk”, an elevated boardwalk that threads through the site, suggests a rare investment in non-commercial, non-essential amenity: space for quiet movement that doesn’t double as access or traffic circulation.

[smartcode_project:default project_id=134954 project_image_fid=4402]

The gym and wellness centre, often relegated to a small ground-floor room in many builds, takes on more substance here. Residents have access to a fully equipped gym, as well as outdoor yoga areas and meditative zones that integrate greenery and natural light.&nbsp;

The Club Lounge is similarly designed to support multiple use cases, with a private dining terrace, kitchenette, workspace, and lockable wine storage. These aren’t superficial additions; their scale and spatial allocation indicate serious intent for frequent resident use.

[smartcode_project:default project_id=134954 project_image_fid=4391]

Importantly, Senso’s amenities are embedded within a site that spans more than 10,000 sqm, allowing for better separation between spaces and reduced noise spillover, a critical but often overlooked factor in high-density developments. This spatial generosity also enables multiple alfresco kitchens and communal terraces without compromising individual privacy or usable space.

While many developments make claims about lifestyle, few back it with this level of built infrastructure. Senso’s mix of dedicated fitness, wellness, social and passive green spaces suggests a conscious response to the post-pandemic shift in housing expectations, especially among owner-occupiers.&nbsp;

DASCO is one of several leading developers who have taken out Resilience Insurance's Latent Defects Insurance policy, providing buyers with a 10-year structural and waterproofing warranty, and giving them the ultimate peace of mind.

Senso is scheduled for completion in late 2028.

[smartcode_project_cta:default project_id=134954]

The outdoor amenities elevating life at Senso, Epping

Following the proposal by the Minns Labor Government to rezone Parramatta Road to create up to 8,000 new homes, prominent developer Ceerose has gone to the NSW Gov to increase the density of its new mixed-use residential building in Leichhardt.

<a href="https://www.apartments.com.au/builders/ceerose">Ceerose</a>, founded by Edward Doueihi nearly three decades ago, has filed plans for 154 apartments above ground-floor retail at 307-315 Parramatta Road, a key corner site near Norton Street, the main high street strip in Leichhardt.

It's an upsize from the previously approved scheme of 63 apartments across a seven-storey building.

<img alt="Ceerose" data-entity-type="file" data-entity-uuid="ba1ae75b-5f08-43fb-b8d5-3de6d9f6ef71" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-04%20at%2010.31.39%E2%80%AFAM.png?VersionId=yA3hBBLPH4ev7MsAE0_hieXeqiFqBUb7" />

The project is being advanced through the State Significant Development (SSD) pathway, with concurrent rezoning sought to facilitate the proposal. The 10-storey development would rise over a four-level basement and deliver two retail tenancies, one a larger-format offering and the other a smaller “hole in the wall” space, addressing the Parramatta Road frontage. 21 of the apartments are dedicated as affordable housing.

According to the Urban Design Report by Architecture AND, the scheme includes a podium and tower configuration, with a fine-grain, two-storey parapet street wall that references the traditional shopfront rhythm along the corridor. “An elegant tower form is proposed, combined with a characterful two storey frontage... articulating it as two related buildings, providing consistency with the rhythm and grain of Parramatta Road,” the report notes.

The residential component is split across two slender towers set back from the street edge, a design move aimed at preserving solar access and reducing perceived bulk. This massing strategy also seeks to improve residential amenity by focusing scale toward the quieter northern interface, away from Parramatta Road’s noise and pollution.

<img alt="Ceerose" data-entity-type="file" data-entity-uuid="347f2f8f-5d36-4388-b40a-2e77380b9c19" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-04%20at%2010.31.02%E2%80%AFAM.png?VersionId=xvyUE2ujT1lzivXTo.mHBJFF4SmfgLtz" />

Architecture AND has worked with Ceerose on previous Inner West projects, and cites a deep familiarity with the local character. Their design draws heavily on context, heritage, and sunlight access considerations, and engages with the Inner West Council’s “Our Fairer Future” strategic planning framework.

The site spans 2,712 sqm and is located near key intersections with Catherine Street, Hay Street, and Redmond Street. It adjoins a public carpark to the north and is within walking distance of Stanmore and Petersham stations. It is also flagged in state and local planning strategies, including the Parramatta Road Corridor Urban Transformation Strategy, as a suitable candidate for increased density.

Ceerose recently completed The Alex Collective on McEvoy Street in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay.

The Parramatta Road corridor is coming to life with the proposed rezoning which is serviced by a significant number of bus, light rail and train routes.

Deicorp is progressing with its $1.8 billion <a href="https://www.apartments.com.au/new-apartments/kings-bay-village-five-dock-53-75-queens-road-five-dock-nsw-2046">Kings Bay Village</a> precinct on Parramatta Road in Five Dock, as is <a href="https://www.apartments.com.au/news/nsw/toga-to-push-on-with-five-dock-mixed-use-masterplan">TOGA further down the street</a>. Those two projects alone will bring nearly 2,000 new homes to Parramatta Road.

First look: Ceerose plots mixed-use Leichhardt development on Parramatta Road

North Sydney's landmark 'SBS Building' on Alfred Street is set to be demolished to make way for a new mixed-use residential tower in the booming North Sydney.

Commercial property group FiveX is behind the plans for a <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">39-storey tower</a>, the latest project to advance under the NSW Government’s Housing Delivery Authority pathway.

They are proposing 184 apartments above retail spaces, which will replace the existing 20-storey commercial building. FiveX was set up more than five decades ago by Joshua and Marko Berger. It is currently led by Joshua's son Lesli.&nbsp;

<img alt="First look: Fivex plans 39-storey residential tower at 275 Alfred Street, North Sydney" data-entity-type="file" data-entity-uuid="2efa0980-53fa-4cca-9f9e-9c3c845d4746" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29%20%281%29_0.png?VersionId=y_YyPMq3NQLfYRs84pP4os9UgWiMLp75" />

According to the Architectural Design Report by <a href="https://www.apartments.com.au/architects/fjc-studio">FJC Studio</a>, the slender tower form has been deliberately designed to respect the site's transitional setting at the southern gateway to the North Sydney CBD, where high-rise towers give way to lower-scale residential precincts.

"The slender tower form and articulated podium establish a respectful relationship with nearby heritage and low rise buildings, including the Whaling Road Heritage Conservation Area,” the architecture firm noted, adding that the tower “completes a missing link in the urban fabric” while enhancing the Alfred Street streetscape.

The proposed building will include a mix of one-, two- and three-bedroom apartments, with 15 percent of the gross residential floor area allocated as affordable housing. There is an agreement already in place that those apartments will be managed by Evolve Housing.

The project aligns with broader state housing objectives, including the National Housing Accord target of delivering 1.2 million new homes by 2029. The Scoping Report filed with the State Significant Development Application (SSDA) suggests the site "presents no impediments to rapid delivery,” with construction able to commence within 12 months of receiving consent.

North Sydney has been one of the most popular suburbs in Sydney for new and off the plan apartment development, but hasn't had the supply to keep up with demand, until recently.

AURA by Aqualand was, for a long time, the only off the plan apartment building on the market. That completed last year, and has sold the majority of its 386 luxury apartments. Recently ALAND launched <a href="https://www.apartments.com.au/new-apartments/the-walden-173-179-walker-street-north-sydney-nsw-2060">The Walden</a> on the same street, selling over $100 million within just a few hours of its launch, while developer CASA also launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/the-mclaren-north-sydney-45-mclaren-street-north-sydney-nsw-2060">The McLaren</a>&nbsp;in the same precinct.

First look: Fivex plans 39-storey residential tower in booming North Sydney

Edwin Almeida

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To this day, I have not seen any financial planner, accountant, or other financial specialists offer secondary stock to their SMSF client when their client is being referred to buy property.
What I have seen are many financial professionals moonlighting as real estate agents and offer new stock to their clients in droves.
My belief is that many are attracted by the extremely high commissions being offered, some as high as 6%-8% of the value of the property. A standard commission paid to an agency is on average 1.7% as reported earlier in the year.
Now if I read correctly, our own representatives from the REIA believe the lines are blurred on our side: “Our involvement with this inquiry was at the request of the committee, although the REIA has been pro-actively working to address community and industry concerns about the blurring lines between real estate agents and the provision of financial advice,”<a href="/guides/the-blurring-line-between-real-estate-agents-and-smsf-advice"> said the REIA</a>.
Property marketing companies may blur the line but they are not the majority of what I call the “real” real estate industry. I’m of the opinion that the lines are blurred on the side of financial planning (FP) and the finance sector and there should be tighter controls there, or at least be on-par with the onus placed on the real estate industry.
As real estate agents, we work under very close scrutiny by the authorities when it comes to offering any form of financial advice. In a nutshell, we can’t offer any financial advice. Even hints in our marketing of property by using such terms as 'great investment opportunity', 'great rental returns', 'awesome growth potential' and even 'investors dream' may get an agent into hot water.
However, many financial professionals moonlight as real estate agents. It appears that individuals in the financial sector and property marketing companies can state all of the above under their governance. They can also refer property without being holders of real estate licences. Ironic, unfair, unjust? however seemingly true. It’s a marketing fee, a referral fee that they get and not a commission. Semantics I know, yet a major loophole in the regulations that needs to be closed.
I have had many discussions with Tim McKibbin from the REINSW with respect to these issues over the years. I have been assured the REINSW is lobbying to have these issues resolved. Closing these loopholes couldn’t come soon enough. 
A lawyer friend of mine says: "If you don’t want to be fined and serve time, don’t have a licence and you have a better chance to keep under the legal radar." Wow, I guess these words echo very loudly in the halls of many financial institutions and property marketing companies pushing new property to SMSFs.
We also have the reversal, an agency<a href="https://www.smh.com.au/business/comment-and-analysis/shock-as-real-estate-franchise-enters-financial-planning-market-20140916-10hljo" target="_blank"> Ray White looking to move into the financial planning sector</a>. In my humble opinion, this move is a recipe for major disaster. However this is a path chosen by one group. If this is a means by the agency to get a piece of the action where very high commissions abound in the sale of new properties to SMSFs. If it is, all I can say is “watch this space” and good luck.
Some real estate agent will be tempted to flirt with massive fines and law suits as they step into a paddock where they believe the grass is greener. But I am one to believe most, if not all, that work in the space of “secondary stock” were “normal/standard” commission are paid will not be tempted to flirt with danger, nor have time to see if the grass is greener on the other side.   
Edwin Almeida is licensee in charge of <a href="https://www.just-thin.com.au" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for<a href="https://propertyinvestingvault.com/" target="_blank"> propertyinvestingvault.com</a>.
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ealmedia-arK4DBYLjS

When it comes to SMSFs, blurred lines favour financial planners not real estate agents

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Many builders and civilizations have had the notion to reach for the skies to build their own versions of the Tower of Babel, be as gods in the developing world at their time.
I believe versions of these towers are about to emerge once again here in Western Sydney – Parramatta.
Two questions come to mind, as I recall previous residential towers that emerged some time ago and also not far from Parramatta. It was an event almost symbolic of the Babylonian culture to reach for the heavens. What we witnessed almost 10 years ago and what is happening now, seems to be a case of “deja vu” as builders, a decade later, are reaching for the skies once more.
The first question: Will these towers topple (not in the literal sense but in an economic one), as they did in the past? And secondly, how many developers, tradespeople and builders will go broke this time around as a result of them being built?
I recall some time ago when I was working with a property group, selling property in Westmead, it was “blue skies” for the developers. A term used for the money being made on the top floor apartments, a term representing the big bonus and very much symbolic of the amount of dollars that were made.
As I sell and assist with the sales of development sites currently, the same language has emerged again of “blue skies” and perhaps now because of the “Asian gravy train” sentiment being felt in Sydney. Whatever the reason, there is still the same ambition shown by developers to break through the clouds but also to break through cultural and economic borders where the financial bonus lie.
No different than what we witnessed about 10 years ago, construction cranes emerged all over Sydney. Robot-like staunches, building their lords' towers on an upward journey to break through the clouds. Distinctly however, the buildings weren’t as high. What is being built now will tower above and overshadow those developers' past exploits. Will this however be representative and signal a greater financial fall? Only time will tell. Looking back however, for many, it never ends well.
<img src="/images/2015/04/23/edwin%20april%2023%20two.jpg" alt="">
Construction cranes that are becoming more and more familiar around Parramatta CBD.
When the economic gods of yesteryears frowned upon the then developers, the excitement and calm before the storm that brewed then, are now emerging once again. The current excitement around property investing has led many to forget simple economics such as return on investment. Not to mention, the calm and tranquil overconfident approach that has made many believe that Western Sydney is sheltered from any property fall out.
Both excitement and placebo, fueled the ridiculous prices that were being paid for new apartments in the past and, once again, ridiculous prices are been paid. However, this time it may well be very different. Well, different from the last time when we saw the overarching towers emerge around Westmead but which had many local investors and developers lose thousands and millions of dollars.
<img src="/images/2015/04/23/edwin%20april%2023%20three.jpg" alt="">
Compared to what was being built in Westmead at the time, these buildings shown above overshadowed any other new building development nearby. Prices dropped from $440,000 to $320,000 overnight. Many of my clients were caught out half way during their construction face.
When the economic gods turned on the property market then and prices topple immensely below what properties were sold for off-the-plan, it hurt many investors along with smaller developers. It’s only recently that what properties were sold for in previous years off the plan that these prices are now being achieved on re-sales.
Put aside for a moment, the notion that there is an under-supply of property, the notion that we have run out of land to build and more-so the talks that our population is growing in uncontrollable numbers, which is foolishly driving prices through the proverbial ceiling. Think about the basic needs and concerns for sustainable development and affordable housing to accommodate the local market.
If the notion of undersupply was remotely true as we are lead to believe, why are rental vacancy rates pushing upward of 2% and climbing steadily? How is it that our property management team are experiencing greater delays in attracting tenants and at lower rental values and not only around Parramatta? Just some of the questions that have a bearing as to where we are headed.
<img src="/images/2015/04/23/edwin%20april%2023%20four.jpg" alt="">
Looking at the outer fringe figures for Sydney, the increase appears significant and growing steadily. Over the next three months I foresee a strong upward trend, due many developments in and around Parramatta coming to completion.
The primary concern I feel however, is the notion of job stability and security. I don’t believe we have one nor the other. With the high levels of unemployment recorded and as well as the need to have two high income earners to afford Sydney’s median entry level, it just doesn’t make any logical sense to buy into this overly heated market. Particularly in and around Parramatta and especially at the entry level prices paid by the passengers that arrive in the ‘gravy trains’ that developers feast on.
<img src="/images/2015/04/23/edwin%20april%2023%20five.jpg" alt="">
Nonetheless, these newly emerging towers are attracting sales figures, in and around $13,000 per square metre or $750,000-$800,000 for a two bedroom unit, in Parramatta and as far as Northmead. Excitement and placebo once more fueling the storm that is about to hit and it will hit hard.
However, more to the point is the nature of speculative buying fever fueled by the international dollar. It won’t take long for these fly-in, fly-out investors to find out that <a href="https://www.linkedin.com/pulse/like-lambs-yang-slaughter-read-how-asian-investors-being-almeida" target="_blank">not all that glitters is gold</a>. How they come and why they come will be at the center of the next article, part two of the series “Reaching For The Skies”.
The new towers that are being proposed to be built are taller, costly, bulkier and will overshadow what was ever built in the past. The three that come to mind as I speak to peers that work in the area are; the Northmead developments, Parramatta CBD and West Parramatta.
The old Parramatta Advertiser site alone, now being demolished, flags rumors of three towers being built that may well house up to 1,200 apartments. It is after all, an impressively large parcel of land. Rumors or not, distinctive traits of the last downturn are once more evident and forming the very strong overtones that angered the economic gods before.
<img src="/images/2015/04/23/edwin%20april%2023%20six.jpg" alt="">
Sitting with a local councilor and discussing the emergence of these towers, and the amount of apartment developments being approved, one cannot go past and reminisce how things changed overnight a decade ago and how the aftermath was rampant.
The grief caused didn’t discriminate as it hit many involved in the property market from; local investors to trades people to builders and developers. I am one to believe the devastation this time around just won’t be local to Sydney-siders.
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
Photos courtesy of the author.
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The higher you build, the greater the fall: Edwin Almeida

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If the topic of underquoting and misleading advertising wasn’t so serious, the <a href="/expert-insights/buying/smart-gimmicky-1-blacktown-reserve-valentines-day-auction-sells-for-565-000">Valentines Day $1 auction campaign</a> would make a great comedy screenplay.
At a moment of reflection, I ponder which actors would suit the roles of the Premier calling for industry reform, or the CEO of the REINSW as well as the <a href="https://www.fairtrading.nsw.gov.au/ftw/About_us/News_and_events/Media_releases/2015_media_releases/20150315_sydney_agents_to_face_claims.page" target="_blank">agents facing allegations of underquoting</a>.
It’s time I believe we unravel the possible motives behind the Valentines Day $1 auction. Was it worth the trouble and who paid the ultimate price?
As I discuss the outcome of the auction with industry groups, we feel that there are now more questions than answers. These are questions that are now being asked of the real estate industry (REI) as a whole now that the dust has finally settled.
<h3>The facts as we see it</h3>
<ul>
<li>First marketing campaign: Sale by private treaty</li>
</ul>
 
<img src="/images/2015/03/25/230_blacktown_sale-by-private-treaty-offers-above570K-copy.jpg" alt="">
Source: CoreLogic RP Data
On or about November-December 2014, the home was advertised as "private treaty sale” for offers over $560,000, to offers over $570,000.
The records procured from CoreLogic are significant. At the very least, these records, I feel, evidence the real price sought by the vendor and the agent. It may also assist, to help clarify their true intentions. Other sites tell the same story.
Information provided above, also obtained from another free to access website. A site property buyers should frequent: onthehouse.com.au. The graph shows the advertising pattern of the property's marketing campaign.
<ul>
<li>New campaign: Sale by auction $1 reserve</li>
</ul>
<img src="/images/2015/03/25/onthehouse_notice-of-sale-and-advertising.jpg" alt="">
<a href="https://www.domain.com.au/property/sold/house/nsw/blacktown/?adid=2011564208&amp;sp=1" target="_blank">A new campaign, and a newly devised strategy, is concocted</a> to create interest among the general public and the media. On this note, I take my hat off to the parties; a strategy that didn’t even "personally offend" the CEO of the REINSW.
<img src="/images/2015/03/25/valentines-day-auction-tim-McGibbin.jpg" alt="">
However, a strategy that only served one purpose, to lure a crowd of potential bidders that were never going to get a bargain. Buyers that invested time and money and made an emotional investment, under the belief that they would get a bargain.
<ul>
<li>
The outcome: <a href="https://www.domain.com.au/property/sold/house/nsw/blacktown/?adid=2011564208&amp;sp=1" target="_blank" style="font-size: 12.1599998474121px; line-height: 1.3em;">Sold at auction $565,000</a>
</li>
</ul>
The property sells for $565,000. Bring out the marching band, drums and all. The vendor and the agent can now get some sleep and stop biting their nails.
Meanwhile, on the other side of the fence, innocent buyers walk away with greater cynicism about the REI. This is on top of walking away with a financial hole in their wallets, one to match their unchanged perceptions of the REI.
"Hey! You weren’t going to buy it for '$2 bucks mate', stop your whinging," is the taunt from the industry, while the agents and auctioneers beat their chests after so-called achievements of 20%-30% prices above reserves throughout Sydney.
On the contrary , I personally encourage you to keep complaining about what just happened. You got ripped off, conned and all recorded on National TV, to remind you in future. There should be an entrenched pathway already, leading to the Premier's office, to voice your complaints.
You took the time and organised; pest and building inspections, sought legal advice and invested time and emotion. All this on the belief a bargain was to be had.
After all, you’re a reasonable person and all you expected was a reasonable chance, a fair crack of the whip. Like the magic cures and elixir sales of yesteryears, all you got was conned.
Who will repay you for time lost and money spent? Well, you did perhaps get to see your face on national TV. Perhaps, both the agent and vendor think this is good enough?
<ul>
<li>Cost to the industry:</li>
</ul>
I don’t believe there will be a substantive cost to the REI at all. Here's why:
First reason: <a href="https://www.dailytelegraph.com.au/news/nsw/premier-mike-baird-pledges-crackdown-on-real-estate-agents-who-underquote-no-fines-issued-since-2004/story-fni0cx12-1227251897133" target="_blank" style="font-size: 12.1599998474121px; line-height: 1.3em;">No auction campaign that stoops into under-quoting has been prosecuted in the last 10 years</a>. It's become a free for all. The agents get paid their commission regardless, the vendors get to see a crowd being spurred on by emotion. Happy days for the REI.
Second reason:
<ul>
<li>Will you personally sell your own home now, and not use an agent?</li>
<li>Will you now terminate the agency agreements with the current agents that are selling your home?</li>
<li>Will you stop attending auctions?</li>
<li>Most of all, will you stop looking to buy?</li>
</ul>
I can say with all confidence, no you won't. Therefore, there is no cost that will hurt the REI as much as it will hurt you.
<ul>
<li>Cost to the Real Estate Agent:</li>
</ul>
Apart from further sleepless nights now that Fair Trading NSW is on the war path, the thought of being investigated and the thought of not keeping the commission may be all that is lost for now.
Perhaps more sleepless nights will become pertinent, should Mr Baird step in and make his words felt and act on the deception and misrepresentation. Direct action that should stem from industry conduct that cost the public dearly. Shameful conduct, to warrant clawing back the commission earned at the expense of many innocent buyers that attended the $1 auction.
<ul>
<li>Cost to the vendor:</li>
</ul>
A bit of time, a little more vendor paid advertising perhaps? Unfortunately time wasted may be all the vendor loses at this point.
Hopefully, the vendor too is losing sleep after misleading the public with this fiasco of a campaign. Or will he?
Well, maybe and one can only hope as it may be a fitful ending to the comedy screenplay, should the agent end his dialog with: <a href="https://news.domain.com.au/domain/real-estate-news/underquoting-real-estate-agents-have-nowhere-to-hide-if-they-break-the-law-20150316-1m0amu" target="_blank">“the vendor made me do it”, as the agent faces the Tribunal</a>.
A further token reward, would be for the vendor to face the Tribunal and be fined. We can only once again corss our fingers and see.
Should we hold our breath? <a href="https://www5.austlii.edu.au/au/legis/nsw/consol_reg/psabar2014476/sch1" target="_blank">Will the law be enforced? </a>
<ul>
<li>What can we learn from this?</li>
</ul>
Many agents and the general public are not aware that just about everything in relation to property is stored. From advertising to sales figures and even as far as mortgage holder's records. It is collected, collated and stored for various reasons.
Property valuers use the stored information to set their estimates. Banking institutions and government bodies use this information for research and other purposes to suit their needs. Yes, we the REI use these figures to compare prices and check sales history and put together market appraisals.
With some websites, we incur charges to obtain more information than what the general public sees. Others sites like, onthehouse.com.au also have good insights, and for free, but this information may take time to source. However, the paid for sites will deliver information at a glance.
Unfortunately, the governing and licencing bodies, such as Fair Trading NSW, are just understaffed and overworked already and lack the resources to research all the sales as we do. Our estimate is that there are 23,000 registered selling REAs in NSW. To police most of the transactions will be a monumental task.
If the Premier wants to get serious about his promises in this area, he needs to look closely at the root issue of Fair Trading NSW being understaffed.
Now there are lies and there are real estate auction campaigns. Some would say both are the same, just packaged in different wrapping.
I can only sit back and wait for some of my peers to try and convince me otherwise.
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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Lies and real estate auction campaigns: Edwin Almeida

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“Price it low, watch it go” is another real estate industry (REI) mantra. It's a saying that is more prevalent among real estate agents (REA) that heavily promote auction campaigns. 
And it's a mantra that is more damaging than the one I wrote about before: <a href="https://www.edwinalmeida.com/blog/real-estate-buyers-are-liars-vendors-are-cheats" target="_blank" style="font-size: 12.1599998474121px; line-height: 1.3em;">“buyers are liars and vendors are cheats”</a>.
For years now, I have been very vocal about "underquoting" with respect to the damage and aftermath it causes among well-intending buyers. Damages and costs are being borne by purchasers in the form of emotional expenditure and financial burden.
Yet agents and auctioneers are well aware, some are even well entrenched, in the seemingly unlawful use of deceptive and tactical advertising to draw a bigger crowd. <a href="https://www.linkedin.com/pulse/lie-lies-real-estate-property-auction-campaigns-edwin-almeida" target="_blank">This illusion and make-believe</a>, created by the REA’s to convince buyers the property will sell at a low price.
A crowd drawn by the notion of low pricing, creates in the potential buyers mind, a greater sense of urgency. A belief of missing out if they don’t attend and bid. Consequently, the fear of missing out and the competition on the day spurs on emotional bidding, rather than rational common sense, placing people in financial over commitment.
The industry makes admissions, why not listen?
I have had a few chats over coffee with my peers, both REA’s and auctioneers, and I can categorically and emphatically say my peers have admitted that this practise goes on and the affect it has on buyers is well known. In fact both camps will go as far as saying that it is wrong, but simultaneously, question my reasoning and my hard line stand on this topic. Yet, in public view, the REI seems to believe it is “squeaky-clean”. A thought perhaps <a href="https://news.domain.com.au/domain/real-estate-news/agent-underquoting-in-government-crosshairs-20140426-37ax9" target="_blank">far removed from John McGraths mind?</a>
I have been accused of not playing the game, “bagging the industry that pays me” and even as far as turning my back on the industry. Why? All because, when rogue auctioneers and REAs beat their chests in glory for achieving 20 to 25% over the reserve, I question their initial price guides given to the buyers. Price guides that were well below their figures achieved on the day. Once you add the true difference, the figures show more of a 30% separation from values given (i.e. price guides), to those actually achieved on the day of the auction.
I hope for the sake of the REI, <a href="https://www.dailytelegraph.com.au/news/nsw/premier-mike-baird-pledges-crackdown-on-real-estate-agents-who-underquote-no-fines-issued-since-2004/story-fni0cx12-1227251897133" target="_blank">Mr Baird’s campaign to address this cancerous practice of underquoting</a> isn’t a political stunt. I hope it doesn’t fizzle in the desert of forgotten political promises like the one in our sister state of Victoria.
Where are the heavyweights - Where are our guardians? 
In all this, where are the so called heavyweights - the guardians of the REI both in NSW and Victoria? It appears that one of the institute bodies has become mute on the subject matter altogether. Particularly after its long support of <a href="https://news.domain.com.au/domain/real-estate-news/reiv-forced-by-members-to-address-political-involvement-20150310-13zrc7" target="_blank">political campaigning in Victoria</a>.
Perhaps, both the REIV and REINSW are more entertained with the notion and ambition of their pursuits in politics than they are in the dubious and borderline behaviour of its members. Or is their lack of action stemming from fear of losing membership support? Clean up the membership base; I’ll remain a member and so will the majority.
Ironically, <a href="https://www.reinsw.com.au/imis15_prod/web/Posts/Promoted_Latest_News/REINSW_CEO_explains_reason_behind_real_estate_political_party.aspx" target="_blank">Tim McKibbin’s explanation of the reasons behind the REINSW’s political pursuits</a> has some of the merit required to introduce positive changes to the REI. Changes that will only begin when the REINSW cleans out its own house before trying to sweep the streets.
Here are some suggestions to creating notable policy for the political branch the REI NSW desires:
<ul>
<li>Deregister from REINSW membership; agents and agencies that are practicing underquoting. 
</li>
<li>Push for the introduction of pest and building inspection reports to form part of the contract of sale. 
</li>
<li>Push for the introduction of independent valuations to form part of the contracts of sale.</li>
</ul>
What will it take for the awful taste underquoting leaves in buyers' mouths to be controlled and eradicated once and for all?
Most definitely, the answer is not going down the path of the REI's being converted into political parties. We can only wait and see if the REIQ got it right.
For more property discussions join me on Twitter <a href="https://twitter.com/justthink1" target="_blank">@justthink1</a>and you can contact me on <a href="https://www.edwinalmeida.com/" target="_blank">edwinalmeida.com</a>. 
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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What will it take to eradicate underquoting for good? Edwin Almeida

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As previously written under the article, '<a href="/expert-insights/the-property-investment-pandemic-how-to-avoid-spruikers-and-bad-advice">The property investment pandemic</a>', easy money is not the answer to affordable housing.
My view on this topic has not changed. All I see is the same pomposity from our leaders, just in a different package.
The notions proposed by our political parties; firstly, advocating <a href="https://www.smh.com.au/federal-politics/political-news/joe-hockey-flags-opening-up-super-funds-for-houses-job-training-20150307-13xwz1" target="_blank">use of super funds</a> to pay for the deposit and/or secondly, <a href="/expert-insights/investing/nsw-labor-promises-staggered-stamp-duty-for-first-home-buyers">staggered stamp duty payments</a>, is not the answer.
Easy money, contrary to popular belief, does not make housing affordable or cheaper to purchase. Utilising super funds for purposes of deposits on homes will not work. An opinion supported by the "super fund" fiasco created in Canada. It is a toxic idea at the very least.
Home grants passed on by the state governments and other government or non-government incentives only fuel home values. Perhaps many are of the opinion that developers, builders and home owners looking to sell and don’t listen to the news because they are too busy building and preparing?
Allow me to burst your bubble. Any easy money given out makes the property owner, developer and builders grin with inner most joy, as they can increase the value of the end property product by double that which is granted.
I can just see property owners rubbing their hands as they wait for one of the above incentives to be introduced.
If the government is serious about housing affordability they should look into the taxes and duties payable by developer/builders that are passed on to the consumer. Duties and taxes collected by all levels of government at the same time were fees that were meant to be abolished with the introduction of the GST.
Then there is my pet hate: over-inflated commissions.
Commissions paid to spruikers and financial institutions that sell real estate with no licences. Excessive fees that are added onto the property values, predominantly on newly built homes. This is an area which the governing bodies should look into if they want to get serious about affordability.
There is light at the end of the tunnel however in the form of the oversupply of property presently being built in Sydney. This may well be a welcomed relief to Sydney’s local first home buyers. I am one to believe, other property markets will soon be oversaturated as well.
No, easy money is not the answer. I have some friendly advice to the people wanting to enter the market in Sydney as first home buyers: wait. Wait and rent for now, it is becoming so much cheaper to rent where you would otherwise buy. Wait for the market to catch up.
For more property discussions join me on Twitter <a href="https://twitter.com/justthink1" target="_blank">@justthink1</a> and you can contact me on <a href="https://www.edwinalmeida.com/" target="_blank">edwinalmeida.com</a>. 
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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Easy money is not the answer to housing affordability: Edwin Almeida

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The first lesson I was taught by our real estate office licensee, when I was first inducted was: "buyers are liars and vendors are cheats". A mantra, which may still be chanted in the offices of many agencies.
After the events of Saturday's "<a href="/expert-insights/buying/smart-gimmicky-1-blacktown-reserve-valentines-day-auction-sells-for-565-000">Valentines Day Auction" campaign</a>, a campaign that presented a property with a $1 (dollar) reserve, my first lesson came to mind. It is a lesson that echoed in our real estate office at the time. Our licensee in charge, would hum, sing and yell out loud; “buyers are liars and vendors are cheats”.
As for my position, noted and voiced in a recent industry debate held in North Sydney, I hold strong to the belief that buyers are not liars but are guided by the professional real estate agents (REAs).
As a matter of fact, I believe that buyers are cautious, confident and confused. Cautious, because for some, it is a first time experience. Confident, as other buyers have the experience and know how to play the game. Confused, may be attributed to the majority of buyers and all because of the plethora of misleading and deceptive advertising and marketing campaigns published.
Buyers in fact I believe, act on information given by the REAs. Likewise, vendors are also guided by the REAs. After all, it is the REAs reputation and licence that is placed on the chopping block, if there is any breach of the regulations.
In the case of the Valentines Day auction, the professional is the real estate agent selling the home. A person with the same duty of care to, and under law, to advice the vendor and hold firmly to stipulated regulations governing our industry.
So who is trying to fool whom? Who is the liar and the cheat, exactly?
In all seriousness, do agents and agencies truly believe the premise that buyers are in fact liars? As incredulous as it sounds, some REAs apparently still do. Some even approach their day to day work with this notion in mind.
Do REAs also consider vendors to be cheats? Well, it is after all the duty of the agent to guide through what may well be pitfalls in cowboy styled advertising and disclose any material fact.
However, based on the Valentines Day auction campaign; would it be a fair call, to say that some agents hold little regard for the general public? Perhaps, they hold less regard of their licenses and their duty. A duty of care, to buyers and vendors, under the industry licence.
Now place yourself in the position of being a buyer of real estate/properties, or a seller of real estate/properties. Basically, you are being considered a liar and or a cheat by the real estate industry. Isn’t this a sweet cup of coffee? The beans have been scorched; the taste is bitter as that grumpy old relative in every family. To date, the mantra puzzles me and I hope it puzzles you as well. Next time you approach a REA, do consider the following before engaging their services, as these are handy tips to best judge what and how an agent can benefit you.
<ul>
<li>Other than a low fee, what else does an agent bring to the table to assist you with attaining the best price to your home?</li>
<li>Is the agent-agency promoting one form of sale only and if so, do ask, why?</li>
<li>If the agent-agency believes so much on a 'specific marketing campaign', will they be prepared to shoulder the bill?</li>
<li>Always ask for trust account receipts when being asked to contribute to 'vendor paid advertising'.</li>
</ul>
If you are approaching a REA as a buyer, then keep these points in mind.
<ol start="1">
<li>Place any offer you want to give, in writing and ask for a written response.</li>
<li>When you are given a price guide, ask the agent to substantiate the guide given.</li>
<li>Don’t fully rely on the REA’s information. Do your own research and if required call on the services of other professionals. Valuers, buyers advocates and pest and building inspectors are a few that come to mind.</li>
<li>Remember that the REA believes you are a cheat, therefore, play the game and stay one step ahead.</li>
</ol>
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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Do agents really believe "buyers are liars and vendors are cheats"? Edwin Almeida

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GUEST OBSERVATION
When we think about building inspection reports (BIR), we often refer to a report that is conducted and only relevant to older homes.
Older homes are sometimes referred to as secondary stock (SS), dwellings that have been up for more than just a few years.  I believe it’s time to rethink a critical part of the property purchasing strategy in general.
In light of current construction trends and more to the point, the emergence of fly-by-night builder and developers; it is prudent that a purchaser obtains a professional pest and building inspection report (PBIR).
The following points could save you tens of thousands of dollars.
<ul>
<li>Just because it is “new and shiny” does not mean that it was well built</li>
</ul>
The relaxed building codes, <a href="/expert-insights/is-a-storm-brewing-over-sydney-s-construction-and-development">as previously reported</a>, when coupled with bad workmanship, adds to the inferior quality of finished construction. The following is a summary of a building report conducted of a townhouse development in the Sydney suburb of <a href="/news">Homebush</a>, where the town house values reached $950,000.
The inspection report identified over 100 defects. Again, I point out that the home being inspected was newly constructed. The report was a building report carried out as a “pre-settlement report”.  
The background of the complex itself highlights some very interesting information. The development company is a newly established company. The majority of the sales in the complex were made to overseas investors that had not seen the property to date, and were relying on their “buyers agents/advocates”, to guide them on their purchase.
I spoke to the building inspector and asked about the person he represented. The purchaser was a local resident that wanted to buy something new, and in this particular location. He bought early in the piece and due to being local, felt he could keep an eye on the progress of the development.
Much to his surprise, as the development progressed and he had the opportunity to talk to the trades-people on site and the builder, he became more and more dismayed with their building practices. Although being a novice, he was able to see and talk to some of the tradespeople on site who raised several concerns.
Now nearing settlement, and not convinced of the quality of construction, the purchaser decided to engage “David” to conduct a pre-settlement or hand over inspection report. The report showed over 100 defects.
When the developer was questioned on these issues, the response via the selling agent was words to the effect: “If he doesn’t wish to settle, he can have his deposit… we have other buyers interested in the property.”
<ul>
<li>Where to from here?</li>
</ul>
It will not be a surprise for similar stories to arise over the next six to 12 months. The three main reasons for the rise in shoddy construction I see are: fly-by-night property developers, the building codes not keeping up with the strong rise in urban development and the use of new materials and building methods not being properly tested by the course of time.
However, regardless of how you and I view the deficiencies and raise concerns through legal avenues and consumer rights, whilst the property market remains as hot as it was in 2014, our voices will pale in comparison to the noise generated by the current appetite for new development in Sydney where the higher influence is the foreign dollar.
It is however shameful that what was recognised as one of the best and toughest building standards in the world which Australia had, is diminishing in stature. Perhaps it’s time that the relevant authorities conducted more spot checks, as opposed to purely relying on private certification.
<ul>
<li>Take action don’t rely on preconceived notions</li>
</ul>
It is, however, important to take personal action when accepting a new property once completed. Don’t be persuaded by the agent nor the vendor that you don’t need a building inspection just because it is new.
Do not be persuaded by the selling agents or marketing companies that tell you that the ongoing remedy for building issues will be taken care by the owner’s corporation (OC). At the end of the day, even this argument is flawed; you are part of the OC so you will pay for it in part.
Common areas may be less burdensome to fix as all owners chip in, but ultimately defects in your lot (property/unit) will not necessarily be taken care by the OC. You may have to bear the entire costs of repairs.
Once you accept the property, it is harder to enforce any legal obligations on the builder to rectify any substandard workmanship, specifically to the inside of your unit/townhouse. You have limitations of time to have issues fixed internally and can you just imagine having trades people trampling through your home day in, day out after you just spent a million dollars to buy a new property?
Some may say “better the devil you know”; this is true in construction when buying into highrise apartment blocks that have had ample time to settle and the major issues dealt with.
However, we should not be punished if we ourselves make a decision to buy a new home. To better safeguard yourselves in the purchase, appoint a property lawyer to act for you in regards to the conveyancing.
I am one to believe that developers and builders fear lawyers more than do conveyancers, when dealing with off the plan purchases and newly built property. This will assist in hedging the likelihood of being misled by a developer and safeguard you against major investing regrets, the purchase ‘hangover-regrets’ that tends to keep people awake at night.
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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How a building inspection report could save you tens of thousands of dollars: Edwin Almeida

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Preparing the inside of the home
<a href="/expert-insights/building/when-first-impressions-count-its-the-simple-things-that-matter">In part one</a> we discussed the preparation of the front aspect of the home.
We need to adopt the same simple steps, preparation, presentation and consider the marketing campaign, to the inside of the home.
This, should be taken into account, as we begin to prepare the inside of the home. <a href="https://youtu.be/0Z8u5qTArxg">First impressions count</a> and the online photos and videos could well be the first impression made other than driving up to the home.
{qtube vid:=0Z8u5qTArxg}
Once again, a simple process applying the following basic principles; de-clutter the home to provide the veneer of space, touch up walls that are damaged or marked to eliminate objections towards the property value, <a href="https://youtu.be/hrMKW_s2WhM?list=PL684D715699D0B23A">create an inviting ambience through non-intrusive fragrances</a>,  style the home by using simple yet appealing ornaments and adopt a minimalistic approach to furniture.
Where possible maintain a neutral appearance as though you are providing a blank canvas for the buyer to envisage their own style; through colour on walls to furnishings.
Another simple and cheap but yet effective tip, is to have the carpets professionally cleaned and/or timber floors buffed up. Flooring can be very expensive to replace, yet by refurbishing and not replacing the flooring, this adds appeal and value to the home. 
Associated Costs
<ol>
<li>Buying storage boxes on average $10 each. Getting rid of unwanted clutter costs less to pack and move. Take the opportunity. </li>
<li>On average, it will cost approximately $1,400 to paint a two bedroom apartment, in full. </li>
<li>On average, it will cost $100 per wall to repair superficial render cracks on internal walls. </li>
<li>Carpet cleaning ranges from: $50-$80 per room.  </li>
<li>Fragrances and decorating is all up to your own discretion. </li>
<li>Rebuffing and sealing timber flooring, the average cost is $120 per room. </li>
<li>General property professional cleaning services for a two bedroom unit: $280.</li>
</ol>
Taking care of the above once again enhances the aesthetic and perceived value of the home. First and foremost, as the property has been prepared for the photos and videos to be presented on the property listing portals and website. This allows you or the real estate agent, to maximise the impact of the marketing campaign. 
{qtube vid:=b4YuE0PSYNw}
First impressions count, and the first impression could well be on the online marketing.
It is relatively easy to prepare the inside or our own home to take to market.
When the property we are about to sell is tenanted however, the process may be hindered and it becomes more complex.
The better agents know how to deal with these situations and work with the tenants, to maximise the sale value of your property. 
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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When first impressions count, it's the simple things that matter (part two)

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In light of the much publicised record high <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2015-01-08/building-approvals-hit-highest-level-on-record/6006788" target="_blank">building approvals leading up to the end of 2014</a>, I am a strong believer that the majority of Sydney’s developments we are building are what I term <a href="https://youtu.be/XXZBkThEdkQ" target="_blank">million dollar ghettos</a>. To date I’m still not convinced otherwise.  
There are two fronts from which I base my beliefs. The first being that construction standards are not keeping up with construction trends to meet new living style demands, the shifts to urban consolidation (UC). The second, as previously reported, the <a href="/news/what-are-sydney-s-million-dollar-ghettos-and-where-are-they">“dangerous liaison” or  “unique”</a> relationships, between developers and strata managers is becoming increasingly evident.
The demise of construction standards, most would like to believe, hit a slippery slope when private construction certification came into play in New South Wales in 1999 and as early as <a href="https://www.hpw.qld.gov.au/SiteCollectionDocuments/improving-building-certification.pdf" target="_blank">1998 in Queensland</a>.
For the most part however, I do not believe private certification to be the demise in quality of construction. I am of the opinion that standards and regulations have not kept up with the construction of mass numbers of highrise building trends, to properly and adequately accommodate living style shifts and requirements. We now have more than one in four residents living in strata titled dwellings.
Building and construction trends, if I may add, that have also seen more would-be unskilled developers and builders enter the arena, and all because of home warrantee insurance (HWI) being relaxed.
Crudely, you may build anything over three levels and you don’t have to provide HWI. Added are the complications and the costly legal process making recourse for rectification, less accessible. A great platform for fly-by-night developers to thrive in a “hot property market”.
The onus should not so much as lay on the certifier, whether they work independent of the local councils or for the local councils. The process of ticking boxes and making sure ventilation ducts are in place, water proofing is laid down and so on, is that: a process.  See it and if it complies, tick the box. Again a crude and very simple explanation of some of the requirements.
If it therefore ticks the box, why are there so many issues? A standard is a measure, a quantifiable outcome to determine whether or not a job was done properly or a structure was built adequately. Why are these therefore not adequate? One of the answers is overbuilding and under engineering. Another is the downgrading and deterioration of materials being used. Yes, the materials and methods of application which still comply with building standards however.
In a way that you may better understand; think back to the three level, walk up, yellow and red brick apartment blocks built in the 70s. <a href="/expert-insights/investing/before-the-fall-balcony-safety-regulations-are-still-falling-short">The standard for balustrades, balcony rails or balcony wall heights</a> were 850mm, maybe even lower.  Who lived in these apartments? Mostly, it was young couples with very little use of the balcony other than to dry their laundry. We may say, not a lot of risk. Now, these heights are considered too low. Why? Buildings are taller, young families are living in the unit blocks with children utilising the balconies for recreation and entertainment purposes. Balconies have become the new backyards, where backyard cricket rules don’t apply.
Another is the ventilation in bathrooms and laundries. There is a standard that relates to how much air a vent will extract out of these areas. Again, in previous years, most bathrooms and laundries had windows as well as ventilation units. The same standard applies today, but the big difference is that there are now no windows. The mechanical ventilation units are installed to standard, but cannot cope with the work load. Therefore, <a href="/expert-insights/investing/one-rental-problem-that-may-be-opening-you-up-to-a-lawsuit">a large number of units end up with mould issues</a>.
Again, when looking at the new living patters in the habitation of these dwellings, you can comfortably increase the workload of the vent by a further 100%. How can these mechanical vents cope? Truth be told, the ones that only just meet the standards don’t cope at all. Similarly, a multitude of other areas of construction meet the ‘standards’, but with overcrowding and mass construction coupled with under engineering, buildings are not coping.
Now turn your mind to some of the most common issues faced with respect to building warrantees; waterproofing, concrete cancer, falling and cracking render and ventilation problems. The older units built in the 70s and 80s are almost in the same condition because of the high grade materials used at the time and the standards were suitable. Now, most of the unit blocks which face major problems, all fall within two to three years of construction.
Article continues on the next page. Please click below.
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Then, there is what I have referred to in past articles and videos as the “unique relationships” between builder/developers and strata management companies. 
The main issue is that not enough time is allowed for these taller, bulkier buildings to settle properly; to determine issues which should rest on the building company/developer to fix and not the owner’s corporation post the proposed 24 month liability tenure about to be introduced. However, that is only and if the strata management companies compile a report as prescribed in the proposed home Building Amendment Act 2014. In the main, “owner’s corporations” will only have two years to make a solid claim.
The rule of thumb that I use is that it takes a building four to six years to settle properly. Therefore, most faults in the construction: the main structure of the building, will not be evident for two years post the developer/builder has moved on from their fiduciary obligations.
Furthermore, under engineering and use of new construction methods and materials, are yet to be proven. However, one thing is a fact and is resounding true for now.  Large unit blocks have greater levels of maintenance issues than ever before and not in relation to quantity being built, but on averages overall.
Our personal experience in managing newly built apartments across Sydney has only highlighted the need for updated construction standards, as we witness how quickly new buildings deteriorate. Yes, then there is the ongoing battles we have with strata management companies that forever drag the chain when it comes to reporting back to the builder the issues that arise in properties that we manage. Perhaps you can tell me why they may adopt this tact, other than the obvious?
How to avoid being caught out:
<ul>
<li>If buying off the plan, be sure you conduct thorough background search on the developer/builder. This is particularly important if you are buying into a unit complex that is higher than three levels.</li>
<li>Visit other complexes built by the development company.</li>
<li>If buying into an established complex, ask occupants for building feedback.</li>
<li>Check for signs of mould and water marks along ceilings and where wet area walls meet the floors. Signs of issues are bubbling and peeling paintwork to the outer area.</li>
<li>Steer away from high rise apartments that have been rendered or will be finished with a rendered exterior for most of the surface area.   </li>
<li>Use of low grade materials and the use of fillers in the render, reduces adhesion properties between brick face and render. Settlement cracks also contribute to render falling away as well as waterproofing failure on balconies.</li>
</ul>
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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Is a storm brewing over Sydney’s construction and development? 

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You can almost say it’s a “piece of cake” to negotiate down when dealing with a greedy real estate agent. The agent that has their self-interest at heart and not their vendor’s.
These are simple negotiation tips, yet they are very effective and have worked well for clients, my family members and myself.
Number one: Preselect properties
The number one tip is to pre-select the property or properties in the area that you want to invest in, by doing research on the property listing portals. What you are looking for are the following features in the add-campaigns, which are run by the real estate agents;
Look for the badly presented properties, properties with bad photos, such as:
<ul style="line-height: 1.3em;">
<li>Badly maintained front and rear yards, 
</li>
<li>Cluttered rooms, 
</li>
<li>Untidy kitchens and 
</li>
<li>Dirty bathrooms</li>
</ul>
The quality of photos can also be a giveaway. The properties may be clean and look tidy. However, the selected agent isn’t familiar with nor believes in:
<ul style="line-height: 1.3em;">
<li>Utilising professional equipment, 
</li>
<li>Implementing marketing strategies to make the greatest return on investment for their client, and 
</li>
<li>Outsourcing or adopting professional teams to assist with the marketing, use of photos (quality) and video. 
</li>
<li>In the add campaign, run your eye over the headings and even the copy written for the listing advertisement. I’m not the best copy writer but I would certainly not use; “Cheap as Chips” nor “Desperate Sale” as the heading. You may laugh, but they are out there. In this case, they are out there for your advantage!</li>
</ul>
The marketing campaign tells you one of two things; the real estate agent cares or doesn’t care at all. It also represents to the general public that the vendors themselves care or don’t care.
Now that you have selected your targets, move to tip number two.
Number two: Make a very low offer
The second tip, is to make a low ball offer. I will simplify it as much as I can. Here in Sydney, Australia real estate agents would like to believe they are on top of the regulations. Therefore, they believe that an offer and particularly a written offer, <a href="https://www.fairtrading.nsw.gov.au/ftw/Property_agents_and_managers/Rules_of_conduct/Conduct_requirements/Duty_of_disclosure.page">must be presented to the vendor no matter what</a>.
Well, the above is not entirely true. In short, if the vendor has given the agent clear instructions and in writing as to what offers he/she will accept, then the agent is not required to pass on any offers below this value. In other words, a firm strategy is in place between agent and vendor.
How do we use the above to fool the greedy real estate agent?
Simple, make an offer and make it in writing. As a matter of fact, I take a step further and ask for the contract.
I place the offer with terms and further conditions attached, along with what we call a 0.25% deposit to exchange. This, of course is a low ball offer, an offer 15 to 20 per cent below asking price. The offer is made dependent on the current market conditions and the ratios will vary. I give this offer to the agent with a cheque for the deposit and signed contract. Ready, willing and able. There are however, my own conditions;
<ul>
<li>Ask for a 10 day cooling off period. Heck, if you can get away with it ask for more.</li>
</ul>
In some countries this is called a “due diligence” period. In Sydney the contract comes with a five day cooling off period. A period to do all the checks and final bank valuation to obtain finance.
<ul>
<li>Request access to conduct a thorough pest and building inspection. Thorough, is the key word. Make sure furniture is moved around and the building inspector even lifts rugs. 
</li>
<li>Your aim is to keep the property off the market for as long as possible.  </li>
</ul>
It will be very clear who the greedy agents are when your initial offer is accepted, and when they take the contract and present it to the vendor. In fact you are helping the greedy agent to work his/her magic, in convincing the vendor to sell low. You are equipping the agent with the ammunition they need to work in your favour.
You are on your way, this is what you want. The agent believes their final job is to convince the vendor to accept your offer and to “condition” the vendor to come down in price. This leads to tip number three.
This article continues on the next page. Please click below.
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Number three: Play the trump card
Tip number three is where the deal is locked in and when we play the trump card. Simple and effective.
We are working on the motivation of the greedy real estate agent. You made the offer, there was a counter offer and you were prepared to accept the counter offer, because it is already below market.
Now you strike and you strike hard at the core of greed. On what I call the eleventh hour, pull the offer off the table. In other words, be prepared to rescind the contract.
Keep in mind contracts have exchanged, the most you will lose if you do walk away is the 0.25% deposit. However, what you are really doing is testing the agent’s, and most of all, the vendor’s position.
I can assure you, in most cases, the agent has not advised the vendor to obtain a pest and building report prior to placing the property on the market. Why should they? It’s not their job and besides, it takes time and effort. They’re not getting paid for this, their job is to sell the home and sell the “vendor paid advertising” package only, isn’t it? The rest is just too much work.
Therefore the agent, nor the vendor, know what lays behind the walls, under the home or in the roof cavity. Your P&amp;B Report tells you what possible damage there could be or the damage that exists.
It startles me to note how many agencies are actually taking homes to “auction campaigns” without assisting the vendors and instructing their vendors to obtain P&amp;B reports. This itself makes for another story on another day.
Make it hurt, exaggerate the repair bill and cost, ask for a discount off the negotiated price. You may be puzzled by this? Yes, you can renegotiate a contract even after it has been signed and not have gone beyond the cooling off period or the DD period.
The agent doesn’t want to lose the opportunity to close the deal as soon as possible, because they have already spent their commission from the ‘sure sale’ 10 times over. Agents don’t want to place the property back on the market because of time and work this will require. They are lazy and it creates concerns in the minds of other buyers.
Most of the time, the lazy and greedy real estate agents will see it as less work to convince their vendor to reduce the price and take the re-negotiated offer. Come on! did you really believe the greedy agent wants to work that little extra to favour the vendor? Do the math, the extra $5,000 at 2% commission is not a lot. Happy buying and negotiating.
In closing:
These are only a few of the tips and secrets real estate agents don’t want you to know. The three points I have shared are a lot more complicated than what you have read, but as you do adopt these in your property investing journey, you will learn how to use these principles and hone in on your skills.
Every property purchase has its own dimension, form of purchase and negotiation tactics. I take a bold approach due to my background in the building industry and I can gauge costs of repairs and possible faults in the building, quickly and at times on the day. You may simply engage a builder to attend the inspection as a friend to guide you. Whatever strategy you implement be satisfied you did what knew best at the time. Simply have a go and don’t be surprised if you walk away with a bargain and a real estate agent as a new friend.
If you’re an agent, I hope you to have read the article and it may have assisted you to be better prepared. Who knows one day I may just come to your open home in search of a bargain for one of my clients. Let’s hope not.
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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Edwin Almeida

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