<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

<main data-perf-region="main">
Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

Edwin Almeida

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We know property in the western suburbs of Sydney has reached an all-time high.
Many of my family and friends, as well as clients, are selling their old home investments. They all know that their investments have reached an all-time high and think now the wisest move is to sell.
Renovation works are becoming too costly and older homes in Sydney's western suburbs are also becoming more and more untenantable. They can also see mandatory changes looming due to the dangers around asbestos and old led paint, therefore feel it is time to sell out. Frankly I don't blame them, most property managers found in these areas aren't aware of the dangers and possible claims against the landlord.
Investing is all about numbers and frankly, the numbers just don’t add up presently in terms of rents v cost to purchase.
This however is not the premise for this article. This article is about the future costs I strongly believe will be incurred by many property investors in these suburbs and in the near future.
Watch this space, because what the average real estate agent doesn’t know is alarming. Or maybe they do know, but just don’t tell you, since they just want to keep your management. Whatever the case, in my humble opinion, it will cost you a lot of money.
<a href="/expert-insights/welcome-to-the-asbestos-belt-of-sydney">As I wrote</a> in Property Observer recently:
“You can just imagine a tour guide calling out through the loudspeaker, ladies and gentlemen, please put your masks on as we are about to enter the asbestos belt of Sydney. To our right we see 40 year old/plus homes riddled with asbestos and to our left…more homes riddled with the same and led paint."
For now, if investors that own properties in the “asbestos belt” of Sydney, believe that we are far removed from <a href="https://www.cincinnati.com/story/news/politics/2014/10/23/poisoned-kids-forces-landlord-fine-pricy-clean/17779535/" target="_blank">what is taking place in the US</a>. Well let me once again say; it is only a matter of time before we follow suit.
I am one to believe there will be civil action against many landlords within three to five years. I further believe the “asbestos belt” will undergo a major possibly mandatory transformation within five to 10 years.
This may not only happen in Sydney alone, as a matter of fact, <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-11-11/mr-fluffy-asbestos-home-owners-opt-in-to-act-government-buyback/5882940" target="_blank">the ACT have already commenced a similar program</a> to what I have been writing about for years. The worst case scenario for the owner is; for the value of the property to decrease to land value only and a further cost to demolish the old home made of fibrous sheeting. Or for the landlord to be caught up in a legal suit due to health issues, claimed by the tenants.
My stance on this matter, as once again written in Property Observer:
I can envisage a couple of scenarios occurring soon. One which will place real estate agencies in the firing line when tenants take action against the landlord for health issues, a dangerous position to be in. The second which can occur, is where agents fall short of their regulatory requirements to disclose possible hazards due to ignorance and/or neglect.
Can I say, ignorance from agents is no defence against any claim made by the tenant. Furthermore, blatant neglect to disclose hazards in the homes also by agents and all because they want to keep the management and don’t want to lose the landlord, is in my opinion criminal.
Further to this I see that the smarter agencies will soon be offloading managements belonging to greedy landlords that simply do not have an ounce of care nor intentions to rectify these hazards. To these agencies I say well done in advance.
What to look for when buying a home as an investment in Sydney Australia:
<ul>
<li>If it’s a fibro home and built pre 1986, you can be assured it has asbestos. 
</li>
<li>If it has been cladded, then it only shields the outer skin: what about the inside where tenants and trades people drill holes, affix nails and have exposed wall lining? Secure yourself on all sides. 
</li>
<li>Check the roof sheeting. Older homes generally have asbestos roof sheeting, again if affixed prior to 1986. 
</li>
<li>Ask the agent or agency that is selling the home to confirm when the home was built even if it is a brick home. Asbestos is found in the lining of the wet areas, bathrooms, kitchens and laundries. 
</li>
<li>Make sure you obtain a pest and building inspection report before you commit to a purchase. An outlay of a few hundred dollars may save you tens of thousands of dollars. 
</li>
<li>If you have or if you are considering purchasing an old home in Sydney's Western suburbs, be sure you have a strong property management team on your side. This should be a team that can protect you and the tenant from future issues, and can establish clear tenancy guidelines; to protect you from legal action and to protect the tenants from injury and harm.</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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ealmedia-arK4DBYLjS

Why I wouldn't buy an old home Sydney's western suburbs

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When it comes to selling your home, there are three areas you need to consider: preparation, presentation and the marketing campaign.
The core principle when it comes to a sale or purchase of anything is, of course, that <a href="https://youtu.be/rmNpIJieUi4" target="_blank">first impressions count</a>. You achieve the best return based on a positive impression and we buy based on the perceptions that we have of the product or object.
So why do real estate agents believe selling a home, property and real estate is any different?
When thinking about selling your home and when you are contemplating how to obtain the most value in the sale, consider both the need to eliminate as many objections as possible and secondly, engage a real estate agent that understands how to prepare the home so that the first impression does count in your favour.
Not all real state agents are apt in preparing a home for sale. Unfortunately <a href="/expert-insights/agents-pull-your-heads-in-about-commissions-you-re-getting-more-not-less">their interest mostly lays in the commission alone and not in obtaining the best value for your property. </a>
The sales process is simple and it starts with the marketing campaign. However, most real estate agents are unsure how to begin. The better real estate professionals will engage stylists and other professionals to assist with the process. Preparing the home and making the first impression starts with the main aspect, the front appearance of the property. Typically what buyers see when they first approach the property.
Simple tips to take into account when preparing the front yard and front aspect of the home. These tips are straightforward; yet they render a huge difference to the home’s perceived value. I have broken the costs down based on the services I have used here in Sydney, Australia:
<ol start="1">
<li>Take care of the lawns and edges. The estimated cost may range from $50-$150 on average across Sydney. 
</li>
<li>Weed garden beds, trim the hedges and add bark. The estimated cost ranges from $200-$400 across Sydney. 
</li>
<li>Pressure clean the driveway and footpaths leading to the front door. The estimated costs may range from $200-$500 on average across Sydney. 
</li>
<li>Pressure clean the roof area visible to the front. The estimated cost ranges from, $250-$600 across Sydney.</li>
</ol>
Therefore, at an average expenditure of under a couple thousand dollars, you have just added  tens of thousands of dollars value to the home. Not only do these simple tips add value, they add character and charm in a simple way.
Our aim as agents is to engage the buyer’s emotion from the moment they view the photos and video on online property portals. This is further enhanced when they walk up to the front of the home, see colour and presentable gardens.
Be mindful that a buyer’s objections are bargaining chips to drive the price down. <a href="https://youtu.be/3-uMKHTqxik">As agents and vendors, we have to eliminate as many objections as possible</a> to maintain the value and differentiate your home from others in the area that have been badly prepared for the sales and their marketing campaigns.
It’s the simple things that matter and first impressions count.
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

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

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GUEST OBSERVATION
Over the weekend I saw many social media posts of the number of homes auctioneers auctioned off on the day. Some numbers came in between seven to 11 properties sold by a single auctioneer.
Then there were the articles and reports of properties being on the market for as little as 13 days on average across Sydney.
I began to once again ponder on the costs involved in selling a home. More to the point, I wondered about the time given to the sale of the homes by the real estate agents (REAs).
This raised two questions.
<ol>
<li>Is if the real estate professional an overpaid individual.</li>
<li>Do we need to re-think the way REAs are being rewarded for their services?</li>
</ol>
Looking at figures closely
The majority of auctioneers in the field on a Saturday charge on average $500 per auction for attending and overseeing of the auctions. The mean time spent on site by the auctioneer is 30 minutes to one hour. Agents, as we know, on average are charging 1.7% in commissions off the sale price.
Added to the costs of selling a home is vendor paid advertising (VPA), which averages $1,500 per property. Allow me to once again do the math and break it all down to get a better understanding of what it costs to sell a home.
Keep the following numbers and values on hand.
<ul>
<li>Median Home Values in Sydney: $844,000</li>
<li>Average commission equal to: $14,348</li>
<li>Vendor Paid advertising: $1,500</li>
<li>Auctioneer fees: $500</li>
<li>Current - Average listing period in Sydney: 13 days</li>
</ul>
The following question began to re-surface in my mind. Are REAs overpaid? Some will no doubt refute this article and say: "Mate! If you pay peanuts you get monkeys!” Please bear with me and let’s look at the above figures in dollar values per “hourly rates” being charged, before you stone me.
For most of us, we learn early in life, the level of service you expect to receive is usually in line with the amount of money or value you are willing to place on it.
Is the above premise, however, true of the real estate industry or have we fallen into a bad habit into accepting a payment structure that may be seen as out-dated? Will the public wake up to this soon? 
This article is designed to further explore the above notion and to make a cost analysis comparison of professional services provided and client relationship between other professionals and the real estate industry; a cross-comparison in the value for hourly rates charged. You may say, a “pound for pound comparison” with other professionals and industries.
It is noted by the majority, professional service providers may study up to six years to attain their qualifications, their preparation forming a basis for the fees charged. Once their degrees are obtained, there are ongoing inductions of on-the-job training as a minimum requirement; in particular the legal, finance and medical professions commonly known as continuing professional development/continuing educational development (CPD and CED), or internships. 
A real estate agent however, may sell a home whilst in the care of a fully licensed REA and only after completing a three-day course and receiving a certificate of registration from the NSW Office of Fair Trading.
I note that a licensee in charge of an office a fully licensed REA, or a certificate holder, must undergo further courses and training. But these requirements are not as rigorous as most professions. At times a breakfast presentation or a half-day workshop meets the criteria.
Notably, the question persists, "are real estate agents overpaid?" I for one believe this question has crossed the minds of many vendors. Vendors that have sold and currently have properties on the market. Perhaps this is a question that will emerge over time and occupy the minds of the soon-to-be vendors.
Article continues on the next page. Please click below.
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To answer this puzzling question, I have compiled a series of graphs using the example of the legal profession as a cross-comparison.
Bearing in mind other professions also have similar fixed hourly/service rate charges.
I have used the legal profession sample as they break their service rates to six minute increments to itemise their bills and accounts. These are increments that allow you to account for detailed work on a case/matter at hand and determine what was done exactly and in detail for the fee being charged.
Time Sheet
<img src="/images/2014/11/11/edwin-nov-11-one.jpg" alt="">
KEY
Interview: a solicitor will interview the client for 30 minutes to 1 hour, which is usually at no cost. Phone calls, emails and other services performed can be charged at six minute increments or to round off say, $30 for each duty performed.
CMA: a REA agent will attend the home and provide a “comparative market analysis” to the prospective client also at no cost.
A solicitor’s brief may take up to three hours to prepare and this may be at a fee of approximately $300/hour. The REA, on the other hand, on being the successful candidate, may take up to three hours to collect contracts, organise photos and organise the advertising of the property. Yes, and for the ones that still use signboards, attend the property to erect the signboard.
Local data shows that a local Sydney property on average will be on the market for 30 days, in some areas for as little as 13 days, and national data shows property is on the market for an average of 80 days. A legal case can run for days but it is billed on actual hours the legal person spends on the matter specifically.
The legal profession is used as the control group to gauge and compare the performance of the test subject: the real estate agent. The agent’s entitlement of fees, such as commission, which is charged contractually and the perceived assumptions of what a REA does for the commission paid, can be two distinctive notions.
By adopting the use of a simple timeline spread sheet, we may be able to better represent what takes place during the marketing campaign and gauge a per hour cost of the property sale. Assumptions are made in the time actually spent when listing and marketing a property for sale, both by the REA and the vendor.
This view stems from the writer’s experience in running a personal business and in the employment of brand real estate offices over the years. I have also interviewed a pool of agents independently and gathered similar (anecdotal) evidence, which is reflected in the chart below: 
 <img src="/images/2014/11/11/edwin-nov-11-two.jpg" alt="">
The average sale of a home has been estimated to take 12 hours. Made up of: preparation time, open house inspections and post-sale time spent on paperwork as well as, valuation and pest and building inspection access.
Given the above figures (time versus cost comparison) it may be asserted there is a wide discrepancy in fees paid and charged when the sales process is broken down by the actual time spent on the sale of a home.
While understandably these figures may seem surprising and even alarming to some property owners, I do not wish to scare, but rather, to educate and highlight to vendors the need to know and ask, whether they are really getting value for their money’s worth.  
It is time vendors requested a detailed and comprehensive breakdown of fees, times and costs (i.e. itemised invoices) similar to those produced by other professional industries. I stress this even more and in particular when VPA is being charged as an added cost of sale.
In a knowledge rich world, Vendors need to ask questions not only upfront, but also throughout the sales campaign to ensure that they are getting value for money.
Questions such as: ‘Is my Real estate agent really marketing my property effectively enough?’ and, ‘Are they over relying on traditional signboard and costly newspaper advertisements?’ should be asked if doubts ever arise.
The next time you are approached by an agent, you should arm yourself with simple questions to ask before you sign over your rights to sell what may be your most valuable asset.
Article continues on the next page. Please click below.
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Traditional marketing, traditional sales approach 
Are real estate agents worth what they are being paid? My personal opinion is no. If the agency is relying on basic marketing tools and not keeping up with current trends and technology. A further no if the agent is not contributing to the sales campaign, by demanding VPA.
More time should be focussed in the preparation of the property, assisting the vendor in any way possible to achieve the best price. Not to mention working hard to making sure the property settles after achieving an above average price.
I do not subscribe to “paying peanuts” either. The REA should be well rewarded if he or she can show his or her value in the success of the sale. Keeping in mind, historically REAs were being paid 2-3% commissions on properties when the median price of a home was less than 50% what they are now.
Other themes stem from this: 
<ul>
<li>Has it become too easy to enter the industry?</li>
<li>Will there be a rising market of vendors selling their own homes due to high costs in having agents sell for them for the service being provided?</li>
<li>Is the industry ripe for “sell your own home” ventures?</li>
<li>Is there another alternative to commission structure and hourly rate structure?</li>
</ul>
KEY COMPARISONS:
<ul>
<li>
Interview/CMA: A lawyer interviews or briefs the prospective client to give general advice in respect of the issue. In the most part, this is free. The REA provides an on-the-market analysis CMA to sell his or her service to the potential vendor. 
</li>
<li>
PREP/BRIEF: A lawyer prepares a brief at an agreed fee of a/hourly rate to determine the validity of the case and advise the client accordingly. The REA prepares the property for market this includes: photos, advertising, videos, and virtual tours in the most part. 
</li>
<li>
OTM/RTC: A lawyer “runs the case” RTC by the amount of time spent which is charged to the client on a six minute interval (lawyers charge for time actually spent working on the case matter). Whereas, the REA works on a fixed commission, but we are making the assumption the property is on the market OTM for six or eight weeks and the REA spent one to two hours per week showing the property to potential buyers. 
</li>
<li>
Costs: A lawyer will incur filing fees and these fees are added to the charges. The REA may incur advertising costs if the vendor does not contribute with Vendor Paid Advertising. 
</li>
<li>
Total Hours: The lawyers’ fees are fixed on an hourly rate and the case may run for an undetermined period of time; remembering the lawyer only bills for time spent on the case. The REA has a fixed fee but figures would show that in general, Sydney properties are currently on the market for on average four weeks and nationally 11 weeks. 
</li>
<li>
Charges and Average/Hourly rates are self-explanatory. The total average hours spent in the sale of a home are 12 hours. The total charge on an hourly rate by REA is therefore $950 per hour if the vendor did not contribute to costs of advertising. 
</li>
</ul>
Now you may seriously ask the question, “what did the agent and auctioneer” actually do for the sale of the home? If you can answer this with great confidence, and believe they deserve the $950 per hour rate, you can throw the first stone.
{mijopolls 61}
EDWIN ALMEIDA is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a>. 
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Are real estate agents overpaid?

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GUEST OBSERVATION
You can just imagine a tour guide calling out through the loudspeaker: “Ladies and gentlemen, please put your masks on as we are about to enter the asbestos belt of Sydney. To our right we see 40 year old/plus homes riddled with asbestos and to our left…more homes riddled with asbestos and led paint”.
Ironically, the old James Hardie site where most of the asbestos came from in the first place, Harris Park/Parramatta, is being developed into a 3,000 unit apartment site with a possible remediation tag into the tens of millions of dollars.
For now, if investors that own properties in the “asbestos belt” of Sydney, believe that we are far removed from <a href="https://www.cincinnati.com/story/news/politics/2014/10/23/poisoned-kids-forces-landlord-fine-pricy-clean/17779535/" target="_blank">what is taking place in the US</a>, well let me once again say; it is only a matter of time before we follow suit.
I am one to believe there will be civil action against many landlords within the next three to five years. I further believe the “asbestos belt” will undergo a major, possibly mandatory, transformation within five to 10 years. 
The properties found in what is termed as the “asbestos belt”, were built well over 35 years ago. Any home built pre 1986 contains asbestos, mainly in the lining of the “wet areas” (bathrooms, kitchens and laundries).
However, when you drive from Wentworthville and west to the mountains, you see the forestry of “fibro-homes” dominating the landscape. Not only do these contain asbestos sheeting in the “wet areas”, but contain asbestos fibre sheeting from floor to ceiling, even roof sheeting!
It doesn’t just stop there; then there is of course external laundries, garages and all mostly finished with led-based paints inside the dwellings. Understandably, asbestos if left alone and covered with paint or tiles doesn’t pose too much of a threat.
The problem is however found on two fronts; first, the desire by tenants to add fixtures and paintings, wall hangings and so on which are drilled into the walls. The second, there is the blatant disregard by some landlords to maintain their homes when the sheeting is compromised.
Is it the agent’s responsibility and what should they do? 
I can envisage a couple of scenarios occurring soon. In one of these, the real estate agencies will be placed in the firing line when tenants take action against the landlord for health issues, a dangerous position to be in.
The second which can occur, is where agents fall short of their regulatory requirements to disclose possible hazards due to ignorance and/or neglect.
Ignorance from agents is no defence against any claim made by the tenant. Furthermore, blatant neglect to disclose hazards in the homes by agents can be a criminal offence.
Smarter agencies will soon be offloading managements belonging to greedy landlords that simply do not have an ounce of care nor intentions to rectify these hazards.  To these agencies I say well done in advance.
My call 
My call at this stage is for government bodies and industry bodies to begin to take a more serious and pro-active approach to rectification work and remediation of some badly deteriorated homes in these areas.
Will we get to a stage where the government will just step in unannounced, isolate and demolish homes in the area that pose a health threat? I hope not, but who knows and it will only be a matter of time before we see claims surface more and more with people seeking compensation and answers. Will this be the catalyst for local governments to take action?
How will this affect your investment? 
Simply, if the government will step in and pay 100% of the costs for the remediation, well, happy days.
In the meantime, you just have to sit tight and hope no tenant takes action beforehand. We know that the chances of any government monitory intervention at 100% is drawing a very long bow however.  
Take action now while costs are low and thus also preventing greater damage in future.
Suggested Tips To Protect Yourself
<ol>
<li>Don’t allow any work to be done to your home by tenants without first being contacted. Not even hanging paintings or other ornaments and fixtures in bathrooms. Although these are considered reasonable requests remain informed at all times. </li>
<li>Add to the special conditions attached to the lease agreement, your own stringent and specific performance duties around work being carried out both, in the home and external area. </li>
<li>Make sure the “managing agents” are well aware of your requirements and have these in writing, as specific performance orders on the management agency agreement. </li>
<li>Have a professional property inspection conducted and attend to the required repairs and removal of compromised asbestos sheeting immediately.</li>
</ol>
As you may well know, you cannot contract yourself out of legislative requirements. Therefore, I suggest that you seek legal advice with any matters of concern and I encourage you, if you are an investor, to consider immediate repairs to benefit both you and your tenants before claims are made. Prevention is better than cure.
EDWIN ALMEIDA is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a>. 
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Welcome to the “asbestos belt” of Sydney

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GUEST OBSERVATION
The battle, mainly evident on social media and on online industry publications, continues between the two juggernauts of property listing portals.
Domain and REA are each <a href="https://www.rebonline.com.au/breaking-news/8048-rea-threatens-agents-future-domain-ceo" target="_blank">staging online attacks on one other</a>. But should they pay more attention to their own business, rather than spending time attacking each other?
I believe if both of the two portal providers are not careful, both will lose substantial market share in this space.
The emergence of internationally recognised websites, such as Gumtree and EBay, has allowed for growth for direct listings of properties by landlords and vendors. These portals also allow agents and agencies to list properties for free.
I myself use Gumtree and we have had great results in the last 24 months. Results measured across both in our sales and property management listings. One case in particular where a buyer saw the advertised property online on Gumtree in England and emailed us directly. He also paid the asking price for the property, may I add.
The buyer paid $60,000 more than another sale in the same complex, just a few weeks earlier by another agent. A great outcome for the vendor.
Then there is the quiet achiever, a local property portal, <a href="https://www.homehound.com.au/" target="_blank">Homehound</a>. A free property listing portal that has been growing and has been around for 10 years. They now boast of having over 2,000 agencies on board. Agencies that are taking advantage of free online presence. Notably, Homehound also provide premium paid listing space, should any agency wish to take up their offer.
If REA and Domain continue to spend more time and money on slandering one another, rather than to focus on better outcomes and services for agents, this may just well become their Achilles heel.
Lets face it, both have increased their listing fees, both take on private listings. One takes on private listings directly from vendors (Domain), the other from online third tier sites that assist vendors to sell privately (REA). Remind me, why is the “pot calling the kettle black” once again?
Real estate agents seem to have jumped all over the recent commentary by Domain’s CEO as though he was on our side.
Real estate agents seem to also believe in the most part that Domain’s CEO argument and premise that REA’s actions will diminish the real estate roles by agents and thus causing more havoc in our industry. The havoc is interpreted as concerns within the industry by agents allowing REA to move back to what was their initial campaign. A campaign which was launched in the 90s calling for and allowing vendors to privately list their properties.
Have we forgotten REA’s original add campaigns in the late 90s, “home sellers wanted.. sell your home online… agents need not apply”? Then again I am reminded once again Domain take on private listings. 
I remind our industry and colleagues that it’s not a matter of fearing what these juggernauts do or don’t do for us that will be the main reason to turn the consumer away from using our services.
It is more about what we will personally do for our future vendors and landlords as individuals, as a real estate office, group and industry to keep the customs we have enjoyed for so long that will determine our personal and business futures.  
In my opinion, allow REA to slip back into the private listing market. If it wasn’t for the simple fact that both Domain and REA know how VPA fills agencies pockets as an income source, we would not be paying as much for access to these property portals.
EDWIN ALMEIDA is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a>.
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Property portals need to spend less time attacking each other and focus on better outcomes for agents

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GUEST OBSERVATION
Was it a case of one strike, two strikes and three strikes you’re out? Or was it a well planned and orchestrated auction campaign?
The agent and auctioneer would lead us to believe it was all planned. Perhaps not the weather, but some agents do believe this is in their control nonetheless.
The opportunity to own a prestigious 900 square metre plus block of land and one that sits on the right side of the road, went to market this weekend. It was the side of the road zoned to the Parramatta council, which has a reputation for being friendly towards development applications. First time on offer and a home built by a master builder himself, was the auctioneer’s pitch.
However, it did come with a surprise.
In this case, the surprise was disclosed to all attendees prior to auction. The gentlemen that once owned the property, peacefully passed away in the home.
From talking to the neighbours and other locals, he was a well know gentleman.
The facts
It is Father’s Day. It is Sunday. The owner had passed away in the home and this deterred many emotional and superstitious buyers.
To top it off, the day was overcast, but in all this, the crowd was filled with known developers and new ones wanting to make their mark.
The auctioneer
The auctioneer Peter Baldwin believed that the campaign was well organised and for the following reasons it made sense to offer the property on Father’s Day. It was a four week campaign and with the demand for this type of property, it made sense to have the auction on this day, he said. It gave time for people to do everything else on the Saturday and attend the auction on the Sunday with less hassles.
At the commencement of the sale, Baldwin even referred that this could well be the best Father’s Day gift for the lucky buyer. Baldwin, when asked what the expectations would be, he noted $900,000 - $1,000,000 as the price guide, and that he would be extremely happy above the $1,000,000 mark. He was also well aware the target market was developers.
The Agent
Conor Arnold from the Professionals, concurred with the auctioneers to the reasons behind the sale taking place on the Sunday. He further added, the property was in a prime location and they were looking for the developers that would not be influenced by the deceased passing away in the home, nor deterred by any other circumstance, such as a Sunday auction.
Conor was very clear and did inform all attendees that viewed the home during the campaign, of the conditions surrounding the sale. Could this have been the main reason why there were few Asian parties registered to bid? This was a question put to Conor. In response, Conor went on to emphasise the development interest of the block and the target audience.
Background and Observations
 
<ol>
<li>
I was made aware of this auction and the conditions by a developer that I knew and would be attending. He believed the home price will fall just above and not within the price guide given to him by the agent. At the million and even $1.1 million price, it was an attractive development proposition for him. The developer commented on the possibility of the home going at a reasonable price due to the surrounding circumstances that would keep Asian buyers away. It would be developers fighting it out toe to toe without the overzealous mix of buyers adding fuel to the competition. 
</li>
<li>The agent in this case went the extra mile in the presentation and the preparation of the home. Was he trying to entice the emotional buyer even still, although the real targets were the developers? I believe he was, and I can say, good on him for presenting the property in the manner it was presented in. Great job. </li>
<li>It is my personal opinion that the property was never worth under the million, regardless of the circumstance surrounding the sale. From when I was made aware of the sale I told my developer friend; forget what you have heard and have been told, the property will sell for between $1,150,000 - $1,200,000.</li>
</ol>
 
We spoke to an architect, who believed that two detached, four bedroom homes with double lock up garages could be built on the block. Each alone would sell for $1,200,000 respectfully.
Who bought the home?
It was interesting to note that the successful bidder was the next door neighbour. An Asian family that have made offers on other homes adjoining to this home and theirs.
What will they do with this home? They did not disclose what their intention was, but one of the neighbours told our crew an offer was made on his property two doors up for $1,300,000-$1,400,000 but he has since refused the offer. He said however, that he will sell at the two million dollar mark. Wishful thinking? If you base it on landbanking options for future development maybe not.
It is interesting to note that developers come in all shapes and forms and not all Asian families are deterred, nor superstitious, about what happened in a home. Perhaps at the right price, we all forget superstition and religion. It is interesting to also note that the neighbour from two doors up had been made an offer by the purchaser and this is at $200,000 more than what they just paid for the current property. 
{qtube vid:=vXEX-mzV6A8}
EDWIN ALMEIDA is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a>.
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A deceased estate with development potential: How did its Father's Day auction turn out?

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GUEST OBSERVATION
Like the common cold and flu that creep up when you least prepare, so do bad property investment seminars and advice.
A sickness fuelled by greed and the notion of a “get rich quick” investment solution. Do we blame the ones spreading the plague or the ignorance of the people voluntarily subjecting themselves to what is to become a property investment pandemic.
You only have to read online media and main stream posts to notice the two schools of thought. On the one side, the pro property investment at any cost spruikers. Their train of thought also coupled with an alarming push for new property and the further push, to use self-managed super funds (SMSF) to acquire the property.
The other side, most pro-property investors refer to as the “property bubble doomsayers”. These thinkers are often belting out article after article on the oncoming bubble bust.
Is there a middle ground, the safe zone if there is one, and how can we vaccinate ourselves against the property investment pandemic? A pandemic that is saturating the airwaves and our inboxes with advertising.
Two factors to consider
Property investing is a personal investment strategy that has to be tailored to suit each individual’s requirements. It should consider income source and financials, to property taste and the main reason/s for investing in property in the first instance.
The cliché, “location location location” also rings true when looking at property investment strategies. In some parts of Sydney you can literally cross the road and be $50,000-$100,000 apart when comparing like property. Why? Different council, aspect and selling agents marketing strategy are a few reasons which come to mind.
Property has its inherent unique qualities, this can be noticed even when comparing units in the same complex as each other.
What are the magic elixirs being sold at investment seminars? 
Before attending these property investment seminars, we need to ask the question, what are they actually selling? Some disguise the virus as free property investment strategy information, but ultimately present a project that has been priced appropriately to sustain the 8% - 10% commission. Some sell educational packages and yet, still direct you to a property project that happens to fit the topics learned.
There are many strategies being presented. Some property strategy seminars do come with good intentions and do provide great information. It is up to us to be clear on what it is that we personally believe will suit our individual financial requirements and wants in our property investment journey. Yes, it’s a journey not a flash in the pan, get rich overnight scheme. There is no magic potion to warp us there at light speed, it’s a strategy.
Schools of thought
As we look at the current climate and the hot property markets, I feel there is a strong need to sift through volumes of information. Further consideration and close attention is needed to assess what many spruikers and doomsayers are saying. Only then can we begin to chart a course for an effective strategy and one based on fact and less on emotion.
The information presently comes in many forms, shapes and people. From the ex-RBA economist Jeremy Lawson’s <a href="/news/australian-housing-prices-up-to-30-overvalued-standard-life-economist">warnings of our household debt-to-income ratio</a> being dangerously over 150%, to the AFR columnist Christopher Joye’s articles on <a href="https://www.afr.com/f/free/blogs/christopher_joye/cash_sacrificed_on_the_altar_of_VqWVy9UVwaGjtTGlE9uxUN" target="_blank">cash being sacrificed for easy credit</a> and his belief that <a href="https://www.afr.com/f/free/blogs/christopher_joye/record_housing_investment_boom_accelerates_LFmrGSAXr2YBcFBoOhRXIK" target="_blank">the property bubble is already upon us</a>.
Then there is Jesse Colombo, a renowned global economist, that predicted the GFC before it hit and is now a prolific writer on global property and economic bubbles.  Jesse <a href="https://www.thebubblebubble.com/home/about/" target="_blank">warns many readers to look at global economics</a> and not just local economics to make rational property investment decisions.
We do have our home grown local property gurus. Dr Andrew Wilson for one. On a discussion on radio 2UE, he shared his belief that we need not fear the overstated dangers. I asked the question of income to house price ratios. This is the comparison of, the median home values in Sydney to average household wages. A figure that represent 1,300% difference. Basic terms, we earn on average 13 times less per annum than what a house is worth. Normal ratios would be 300%-450% or a 3.5:1 ratio. 
Supporting the argument of the “don’t panic elixir vendors, it’s all steady as she goes”, are the four economists of the major banks; Bill Evans from Westpac, Alan Oster from National Australia Bank, Michael Blythe from Commonwealth Bank of Australia and Warren Hogan from ANZ. All in unison advising the government that <a href="/expert-insights/no-housing-bubble-the-big-bank-economists-conclusion">homes are still very much affordable and there is plenty of credit still</a>.  Is there when the average household debt to income is at 150%?
This article continues on the next page. Please click below.
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Easy money and my opinion
Easy money contrary to popular belief does not make housing affordable or easier to purchase. Utilising super funds for purposes of deposits on homes will not work in my view, also supported by the super fund fiasco created in Canada.
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 and builders don’t listen to the news because they are too busy building? Allow me to burst your bubble. Any easy money given out, makes the 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.
Then there is the mother of all incentives. The commissions payable to the agents to promote overpriced property. The term agents in this case does not only refer to “real estate agents” it also refers to but not limited to; mortgage brokers, financial planners, property clubs, accountants and other institutions that moonlight as property expert advisors. Only yesterday I was offered to sell a project in Melbourne with a fee of 12% commission. After a lengthy discussion with Catherine Cashmore, we both determined the true value of the complex to be 15 to 20% over valued. Why did they source me to have a crack at promoting the magic? It could well be my connection with agents who have investment syndicates and overseas investors. Unfortunately, local are also caught in the project.
How do you avoid catching the property investment plague?
Here are some simple tips on how to avoid being caught up with the hype and property flu. These are a few of what I share with family and friends. Tips that keep you and give you a healthier sight of investing in property.
<ul>
<li>Personally, research the area where the spruikers and buyers agents are taking you. Don’t just rely on the so called experts.  </li>
<li>Don’t rely on rental returns from one industry, such as mining. Check out local rents paid by the locals within the secondary stock.</li>
<li>Call on local agents to see what they have to say about the project.</li>
<li>Ask the local agent for comparable sales of near new secondary stock. Even other new property that may be available.</li>
<li>Ask for commission statements payable to the group providing the seminar.</li>
<li>Is the seminar geared to a single project or perhaps two?</li>
<li>Is the seminar’s single focus on new property alone?</li>
</ul>
EDWIN ALMEIDA is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a>.
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The property investment pandemic: How to avoid spruikers and bad advice

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GUEST OBSERVATION
It is interesting how underquoting is allowed to rear its ugly head.
Last week, the government-owned heritage property at 119 Kent Street, Millers Point (pictured above) <a href="/expert-insights/buying/vacated-millers-point-four-level-terrace-fetches-1-911-000-at-private-state-government-auction">sold at auction for $1,911,000</a>, through McGrath.
The initial price guide was reported to be $1,000,000 and then adjusted to $1,300,000. The property, as we well know, has been sold for $1,900,000. Almost 100% above the original price guide. Jonathan Chancellor’s article on <a href="/expert-insights/buying/buyers-needed-to-add-11-to-weekend-sydney-pre-auction-price-guidance">being prepared to adjust your expectations at auction by 11%</a> just went out the door. I cringe with disbelief that this has been allowed to happen.
This auction campaign was backed by the NSW state government. I wouldn't suggest that because of this the agents running the marketing campaign/auction sale have been absolved from following the strict guidelines of the real estate industry's regulations, but the agent has not gained any credibility. It could just be a sheer case of blatant ignorance and an agent simply not understanding their industry. But then again any publicity is good they say, even if it’s bad.
The property itself, regardless of the state it was presented in, has vast inherent value - it is located in an address that boasts local sales of up to $6,000,000. A harbourside, and much sought after, prestige location that for the postcode alone is worth $1,000,000.
Now, if we add the historical and actual building value, we could comfortably add hundreds of thousands more. Then there is the value of the actual block of land. Even if we looked farther afield, to <a href="/news">Annandale</a> and <a href="/news">Leichhardt, </a>shacks have reached the $1.2 million to $1.5 million mark in the past.
How, in heavens name, did the agent come up with the original price guide and, even when adjusted, fall so short of where the offers finished?
Were they looking for a crowd? Or publicity perhaps? I can’t figure it out.
If it is sheer ignorance, maybe a professional valuer should have been called in to provide a realistic price guide. I am once again alarmed how this four bedroom home in this location was advertised publicly for so low. The underlying question is: did the low price guide also work against the price achieved? Could a more realistic price guidance have attracted a different clientele that would have pushed the price even higher?
I guess we'll never know.
EDWIN ALMEIDA is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a>.
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Nearly 100% above the initial price guide? Underquoting rears its ugly head

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What is a property worth and who determines the end value? Odds on, it’s the valuer.
To most property investors, the phrase “a property is worth what someone is willing to pay and what the vendor is willing to accept” would hold true. This premise does not necessarily hold true with the banks funding the purchase, the agents and particularly the valuer.
How can so many industries hold vastly different opinions over the value of a property?
The Funding Banks Position
Over many years I have attended hundreds of bank valuations for settlement purposes and valuation inspections for re-financing purposes. As a novice I expected identical results. However, experience taught me that the same property may be valued for different purposes and the figures can be 10%-15% apart.
Sometimes one valuer will have a very different opinion to another valuer. Even worse, I have had the same valuer place different values on identical properties only a few weeks apart. Both were the same in style, configuration, position, block and level. How could this be so?
I soon learned it was due to the loan to value ratio (LVR). The funder simply wants to hedge their financial position and loan. It makes sense, the higher the LVR the lower the valuation. Different banks adopt different policies and therefore some are more lenient than others. The rule of thumb for a valuer is, as instructed by the banks, to value at a price point that could be achieved if the property was to be taken to an urgently orchestrated auction.
How is it that lenders settle on what is considered to be an overpriced property? As you dig deeper, the loans requested are typically at low LVRs, usually less than 70% of the sales value of the property. If the bank valuation does come in low however, the buyers are comfortable to tip in the balance. Most overseas investors do not walk away from a settlement as a local buyer would.
The alternative in today’s market is to hedge the loan with lenders mortgage insurance (LMI). Even if the banks do accept a lenient valuation and provide a high LVR, they are protected. The buyer however pays a high price to protect not themselves but the banks interest. This may be seen as typical in a hot property market like we are in now.
The valuer’s role
The role of the valuer is to provide fair and market value of a property. A simple request, but not a simple exercise.
The valuation is performed by an individual that has spent years obtaining a university degree to competently provide a report. However, market conditions and banking requirements negate the proper process of what would otherwise be a textbook valuation.  
Here are some of the difficulties and insights I have been able to hear firsthand from valuers over the years:
<ul>
<li>Time pressures to perform a well-structured inspection. Typically a valuer will only spend on average five to 10 minutes at the property. More time is spent travelling from one appointment to the next.</li>
<li>Pressures to adhere to individual banking requirements, as opposed to market forces.</li>
<li>Pressures of funders paying less, when valuers face greater costs to run a business and provide a service. Increasing costs of personal indemnity insurance and staffing overheads are some of their concerns.</li>
</ul>
So given these hurdles, how can the valuers do their job in the right manner? The valuation process may constitute measuring the property inside and out properly, ascertaining the value of the construction of the dwelling, working out depreciation of fixtures and fittings, the depreciation of dwelling ratio to appreciation of land ratio, rental returns and most recent sales in the area of like properties and how they compare in all aspects.
Not a lot of time is allocated or adequate reward given by the funder to do a proper assessment. Therefore the valuers rely on the local agents for recent sales data and other forms of online tools/websites. Most importantly, the valuers are reliant on the contract of sale (the front page outlining sale price and special conditions).
Special conditions may note any vendor guarantees such as rents, gifted cars or other incentives. The valuer can also work out from the contract as to who sold it to gauge commissions paid out.
For a valuation of a refinanced property, the valuers are also relying on the documentation which outlines the revaluation amount sought by the owner. Information passed on to the bank by the mortgage broker and by the bank to the valuer.
This article continues on the next page. Please click below.
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How independent is the valuation under the stated conditions?
I will throw my hat in the ring and say, not very independent at all. Allow me to raise the following concerns and you can assess for yourself if the valuations are as independent, accurate and as transparent as we would like to believe they are.
<ul>
<li>The bank orders the valuation and pays for the valuation.</li>
<li>The valuers understand who “the hand that feeds them” is. Therefore, are they persuaded by the policies put in place by the lenders, or will they genuinely adopt a totally arm’s length approach?</li>
<li>How can valuers make well educated assessments of the property when such little time is spent at the property due to time constraints?</li>
<li>How in-depth are the valuation reports and how much data is imported to create the report when the rewards are so small in comparison to time spent?</li>
</ul>
 If you believe the above is entirely a speculation on my part, made from purely a cynical point of view, then one should ask the following question: Why do valuers ask for and need the front page of the contract before writing out their report?
It is a question that underpins my belief that valuers are simply not paid well enough, nor given sufficient time to conduct and produce proper valuation reports. Valuers have become short change researches and quick photo takers, which rely purely on instant data to satisfy their client: the banks.
But not all is lost, as I do take my hat off to the valuers that take time to research the market, have an understanding of construction and keep up with market conditions and trends.  Not dissimilar to the good real estate agents that shine in the high markets as well as in the low turning markets.
So here are my four tips to achieve the most in a property valuation:
<ul>
<li>Prepare the property for a valuation as you would for an open house.</li>
<li>Don’t send the valuer to a tenanted property without being accompanied by the agent. The agent should be equipped with research data to promote desired outcome.</li>
<li>Do as much homework as you can for the valuer and have the print outs of like properties that will give you the desired outcome, even if it’s for a re-finance situation.</li>
<li>Always accommodate the valuer with time and don’t make them wait.</li>
</ul>
If you believe the above is true and you have had similar circumstances as those described, I would like to read your comments.
EDWIN ALMEIDA is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a>.
Propell's Bart Mead and Mark Nassif have responded to this article in a piece you can read <a href="/expert-insights/property-valuations-arent-an-opinion-they-are-a-professional-standard">here</a>.
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Edwin Almeida

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