For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Investor Warning

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The Melbourne man arrested after an alleged $110 million mortgage fraud, Aizaz Hassan, was writing loans until his accreditation was stopped this week.
Hassan held his credit licence through several lenders since 2011, currently with Australian Finance Group, one of the country's largest mortgage brokerage networks.
His credentials were listed on <a href="https://www.linkedin.com/profile/view?id=118590288&amp;authType=NAME_SEARCH&amp;authToken=6a7k&amp;locale=en_US&amp;srchid=1644771001420581775102&amp;srchindex=1&amp;srchtotal=1&amp;trk=vsrp_people_res_name&amp;trkInfo=VSRPsearchId%3A1644771001420581775102%2CVSRPtargetId%3A118590288%2CVSRPcmpt%3Aprimary" target="_blank">linkedin</a>.
The allegations relate to loans between 2008 and 2011, so do not relate to his recent employment. 
 <img src="/images/2015/01/07/Picture%2021.png" alt="">
<img src="/images/2015/01/07/Picture%2022.png" alt=""> 
An AFG spokesperson advised Hassan had been suspended, according to Fairfax Media.
His position was as a finance and operations manager at Cigna Financial, which is part of the AFG network.
Hassan and another Melbourne man, Najam Shah, have been arrested and charged following an ASIC investigation into the alleged use of false documents in support of loan applications valued at about $110 million.
Shah and Hassan have been charged with one count each of common law conspiracy to defraud, according to an ASIC release.
The charges relate to the men’s roles at a Footscray company, Myra Home Loan Pty Ltd trading as Myra Financial Services (no longer trading).
It is alleged that between April 2008 and December 2011, Shah and Hassan conspired to defraud 12 lenders, banks and other financial institutions, by creating and using false documents to support loan applications submitted on behalf of Myra clients.
The false documents included bank statements, payslips, citizenship certificates and statutory declarations. These were predominantly used in support of applications for home loans for house and land packages as well as for the purchase or refinance of existing homes. 
<a href="/expert-insights/finance/arrests-follows-after-12-lenders-caught-in-alleged-110-million-myra-home-loans-fraud">At least 350 loans valued at $110 million were submitted and approved</a> on behalf of Myra clients.
The alleged conspiracy involves submission of false documents for more than 300 loan applications to numerous banks and financial institutions, including the Commonwealth Bank of Australia, Westpac Banking Corporation, St George Bank, Bankwest, Adelaide Bank, ANZ, Bank of Queensland, Choice Home Loans, Citibank, National Australia Bank, Pepper Homeloans and Suncorp Bank.
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jchancellor-FAypfDUnLy

AFG suspends mortgage manager after $110 million Myra Home Loans fraud arrest

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A new collaboration of six of Australia’s property experts has created Your Property Team, a group who are warning that the spruikers are out in force in the current hot market.
The <a href="https://www.yourpropertyteam.com.au" target="_blank">Your Property Team</a> group includes Destiny Financial Solution’s Margaret Lomas, Australian Property Monitors’ Andrew Wilson, consumer advocate Lisa Montgomery, BMT’s Bradley Beer, Bishop Collins’ Ian Rodrigues and Block Strata’s Michael Teys.
Lomas says that the main problem facing the industry is a lack of regulation and a failure on behalf of the federal government to recognise property investing as an industry.
“I’ve been lobbying the government, both Liberal and Labor, for around eight years now, to step up to the plate and provide supervision and control to prevent the often spectacular financial losses  by hapless property investors who fall prey to spruikers,” she said. 
“I’ve seen some really sad cases of every day Australians losing all they have worked for and having nowhere to turn and no laws to back them up.”
To counter a number of questionable seminars, they’re making their own.
She selected the team, from regular guests on her show Your Money Your Call, to create a one day national workshop series under the slogan ‘Nothing to sell except their expertise’.
“We hope to go some way toward making it hard for the spruikers who offer ridiculously expensive ‘boot camps’ and workshops to get business,” Lomas said. 
“There’ll be no upgraded course costing tens of thousands of dollars on offer and definitely no property to sell at the end – just a full day of current information, from six highly skilled experts, to help you make the most of 2015.”
The cost of one adult ticket is $410, with 400 available, according to the Your Property Team website, with Sydney Property Intensive 2015 being their first event. Melbourne and Brisbane will also see the team visit, with the possibility of visiting other capitals.
Topics covered include growth drivers, the national state of the market, financing your portfolio, depreciation strategies and strata titled property.
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jduke-EHk3XBmHkn

Property experts warn that spruikers out in force in hot market

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Two Melbourne men, Najam Shah, 55 of Glen Waverley, Victoria and Aizaz Hassan, 34, of Truganina, Victoria have been arrested and charged following an ASIC investigation into the alleged use of false documents in support of loan applications valued at about $110 million.
Shah and Hassan have been charged with one count each of common law conspiracy to defraud, according to an ASIC release.
The charges relate to the men’s roles at a Footscray company, Myra Home Loan Pty Ltd trading as Myra Financial Services (no longer trading).
It is alleged that between April 2008 and December 2011, Shah and Hassan conspired to defraud 12 lenders, banks and other financial institutions, by creating and using false documents to support loan applications submitted on behalf of Myra clients.
The false documents included bank statements, payslips, citizenship certificates and statutory declarations. These were predominantly used in support of applications for home loans for house and land packages as well as for the purchase or refinance of existing homes. 
At least 350 loans valued at $110 million were submitted and approved on behalf of Myra clients.
The alleged conspiracy involves submission of false documents for more than 300 loan applications to numerous banks and financial institutions, including the Commonwealth Bank of Australia, Westpac Banking Corporation, St George Bank, Bankwest, Adelaide Bank, ANZ, Bank of Queensland, Choice Home Loans, Citibank, National Australia Bank, Pepper Homeloans and Suncorp Bank.
Property Observer gleans the company was established in 2006 out of Whitehall Street premises.
The offence carries a maximum penalty of 15 years imprisonment.
Shah appeared at the Melbourne Magistrates’ Court and Hassan before a bail justice on 2 January 2015.
Shah and Hassan were bailed on conditions including that they report to police twice a week, surrender valid passports or any other valid travel documents and not apply for any other, not attend any points of international departure and not leave Australia.
Both men are to reappear at the Melbourne Magistrates’ Court on 17 April 2015.
Manija Zayee, Shah’s partner and former Myra director, has also been charged on summons in connection with this matter with one charge of obtaining a financial advantage by deception. Zayee is to appear at the Melbourne Magistrates’ Court on 27 January 2015.
It is alleged that Zayee submitted false documents in support of a loan application for a home loan, in her own name, in September 2009.
The matters are being prosecuted by the Commonwealth Director of Public Prosecutions.
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Arrests follows after 12 lenders caught in alleged $110 million Myra Home Loans fraud

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Police have warned would-be renters in the Lake Macquarie area of scammers copying genuine rental advertisements.
After finding rental listings on legitimate sites, the scammers reportedly copy the information and post it to a community and classifieds site.
Interested renters make contact, but are then told they must pay rent up-front before getting access to the property. The scammers cease contact as soon as the money is handed over.
According to NSW Police, there are a few common warning signs for this type of fraud.
They include landlords who mention money transfer services like Western Union or MoneyGram or claims the landlord is uncontactable or lives overseas. Scammers may also claim the renters aren't allowed to visit the property before delivering the money, or put the renter under a lot of pressure to pay the money.
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jrichardson-uRX5hFdKfN

Scam alert: Lake Macquarie renters warned

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In the lead up to Asbestos Awareness Day on 28 November, it is a crucial time to consider your investment property and homes, as well as the safety of those who live in them.
One in three Aussie homes contains asbestos, including those constructed of brick, weatherboard, fibro and clad.
All property owners, particularly those who own a home built or renovated prior to 1987, should be aware of the dangers that asbestos can pose.
In Canberra, an Asbestos Buy Back Scheme is currently underway as a result of the <a href="/news/real-estate-agents-could-face-1-1-million-fine-for-not-disclosing-mr-fluffy-asbestos">Mr Fluffy asbestos insulation scandal</a>. The scheme involves the government purchasing affected properties and demolishing them.
Around 40 home owners have agreed to take part in scheme, according to the Asbestos Response Taskforce.
Home owners have until the end of June next year to decide whether or not this is what they want to do.
For those unable to choose this option, renovating or rebuilding can be an option. But owners must take care, explains Peter Dunphy, chair of the Asbestos Education Committee.
“There is no safe level of exposure to asbestos fibres,” said Dunphy.
“With at least one in three Australian homes containing asbestos, many home owners, renovators, tradies and handymen are putting their health and the health of families at risk when doing home renovations, maintenance and demolition if they release dangerous asbestos dust and fibres that can be inhaled and lead to asbestos-related diseases including mesothelioma.”
So where can asbestos be in your home?
Click to open in new window:
<a href="/images/2014/11/18/asbesto%20onv%2018%20one.png" target="_blank"><img src="/images/2014/11/18/asbesto%20onv%2018%20one.png" alt=""></a>
Source: Asbestos Awareness
Here is a useful <a href="https://asbestosawareness.com.au/dangers-of-asbestos-nsw/safety-facts-nsw/" target="_blank">20 point checklist for you to look at to safety check your home</a>.
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Infographic: Where might you find asbestos in your property?

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Nineteen electrical retailers and wholesalers have recalled thousands of electrical cables that failed to meet electrical safety standards.
The Australian Competition and Consumer Commission said on Wednesday it estimates 40,000 households and businesses could be affected by the recall of the cables, which were supplied in all states and territories except the Northern Territory.
The Infinity cables, sourced from a company called Infinity Cable Co, were sold by 18 Masters Home Improvement stores and one independent wholesaler between 2010-2013 in NSW, between 2011-13 in the ACT, 2012-13 in Victoria, Queensland, South Australia and Western Australia, and in 2013 in Tasmania.
ACCC chairman Rod Sims said the recall is being co-ordinated by a taskforce of consumer agencies, building regulators and electrical safety regulators.
“Testing has found that the cables will degrade prematurely and if the cables are disturbed, the insulation could break and expose live conductors, resulting in possible electric shock or fires,” Sims said in a statement.
Households and businesses that had electrical work carried out during the relevant periods of time are urged to contact the responsible builder, electrical contractor or appliance installer to see if the cabling was used.
Further information is on the <a href="https://www.accc.gov.au/media-release/national-infinity-electrical-cable-safety-recall">ACCC website</a>.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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40,000 households and businesses affected by electrical cable recall

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The Real Estate Buyers Agents Association of Australia (REBAA) is warning prospective buyers to double check that the buyer’s agent they are choosing is independent and licensed, especially when they’re considering property interstate.
REBAA president Jacque Parker said that more must be done to protect consumers from unprofessional operators.
“Often an agency can be licensed in one state but not the other and still act for purchasers of property interstate,” warned Parker.
“Every state and territory in Australia has different licensing requirements so you need to make sure that the agency you’re dealing with holds a real estate qualification for the state that you’ll be buying property in.”
If the buyer’s agency is licensed, it means that a minimum of one agent within the agency is qualified.
“Currently there is no barrier to anyone setting up and practising as a buyers’ agent in an interstate location,” she said.
She also warned about double checking the independence of your buyer’s agent, suggesting that some are working for a vendor or a developer at the same time and receiving a commission from both sides of the fence.
The question she says buyers should be asking: Are you licensed in that state and are you an exclusive buyers’ agent? Exclusive agents are those who only receive payment from the buyer.
If the answer is no, Parker says that it’s time to ask whether they’re really working in your best interest.
REBAA supplied these minimum buyer’s agents training requirements across the country:
<ul>
<li>South Australia</li>
</ul>
Certificate IV in Property Services (real estate) to obtain registration and work as a buyers agent representative (or sales representative) for a fully licensed agent.
Full licence (Registered Land Agent) if you wish to open your own agency (buying or selling) - Complete Diploma of Property Services (Agency Management).
<ul>
<li>New South Wales</li>
</ul>
Need to have either full real estate licence (or dedicated buyers’ agent licence)
You can’t act on behalf of another person as a buyers’ agent without the right qualifications.
<ul>
<li>Queensland</li>
</ul>
A full real estate licence.
<ul>
<li>Victoria</li>
</ul>
Complete Certificate IV for those wanting to run a licensed buyers’ agency, which according to the Real Estate Institute of Victoria takes about eight weeks to complete.
Must complete 12 months practical experience within three years of applying for a licence.
Note: You can check with <a href="https://www.consumer.vic.gov.au/businesses/licensed-businesses/estateagents/public-register" target="_blank">Consumer Affairs Victoria online public register of licensed agents</a>.
<ul>
<li>Tasmania</li>
</ul>
Requires a full real estate agent licence to transact in property whether buying or selling.
Diploma of Property Services (agency management).
<ul>
<li>Western Australia</li>
</ul>
Be at least 18 years old.
Be a person of good character and repute and a fit and property person to hold a licence.
Have access to sufficient assets and financial resources enabling them to comply with all the requirements of the Act.
Understand fully the duties and obligations imposed upon agents by the Act.
<ul>
<li>Northern Territory</li>
</ul>
A full real estate licence.
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Investor warning: Is your buyer's agent properly licensed?

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The Victorian, New South Wales and West Australian state governments have issued letters to property spruikers in their states outlining their obligations under consumer law.
Victoria’s consumer affairs minister, Heidi Victoria, spoke to <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-07-08/state-governments-warn-spruikers-to-stick-to-the/5581698?section=business" target="_blank">the ABC</a> about the high pressure, persuasive techniques used by property spruikers at seminars and events.
“The sort of things that we’re concerned about is, for example, a high pressure sales environment – so when people come along just for information, but then feel obliged to either spend money on an education program, or that type of thing,” said Victoria.
“We want to make sure they’re not feeling pressured into signing anything on the night, that they are given plenty of time. But also to understand that those operating in the space must give a 10 day cooling off period.”
In February, the ABC reported that West Australia, New South Wales and Victoria’s governments were monitoring 15 property spruikers. However, Victoria said though some property spruikers had received letters outlining their legal obligations, Consumer Affairs Victoria was not currently investigating any particular property spruikers.
“This is just more a general ‘get to know you’ sort of letter, and say, ‘these are your rights and obligations’,” Victoria said.
“We’re very much about educating people who are operating in any business. The type of letter that has gone out to them just outlines their responsibilities, and also their obligations, and of course if they don’t abide by their obligations, and if they’re not working correctly under Australian consumer law, then we can take it much further.”
Of people investing in property through a self-managed super fund, Victoria said consumers must know their rights.
“A lot of people have to understand that when they’re doing this sort of investment, that they need legal and financial advice,” she said.
“It’s not something that can be taken lightly. As I said, it really is something that many people put their life savings into, and the last thing they want is for that to go belly up. So they do need to know their rights, their obligations as consumers and make sure they are investing in something that’s going to be safe, and something that has that long term projection.”
To see the letter sent by West Australia’s Commissioner for Consumer Protection, see next page
<hr class="system-pagebreak">
West Australia’s notice to the state’s property spruikers warns them of penalties associated with misleading consumers, which include fines of up to $1.1 million.
In a letter sent to property spruikers by West Australia’s Commissioner for Consumer Protection Anne Driscoll, she states:
<img src="/images/2014/07/10/cut-out-july-10-one.jpg" alt="">
In particular:
<img src="/images/2014/07/10/cut-out-july-10-two.jpg" alt="">
 
She adds:
<img src="/images/2014/07/10/cut-out-july-10-three.jpg" alt="">
Driscoll notes that misleading claims “can result in penalties of up to $1.1 million for a corporation or $220,000 for an individual”.
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Property spruikers receive warning letters from states

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Real estate would be a delight for investors, were it not for the real estate “industry”.
There are times when the industry appears to exist only to mislead consumers into taking action not in their best interests.
Consumers’ best interests are subverted by industry vested interests.
There are myriad examples. Here’s one. There’s a company that makes it money marketing property in specific locations. But the principal markets himself as a mentor. Someone who guides investors on how to buy the best properties in the best locations.
A recent promo advised consumers on the best places to buy for high yields. By the purest of coincidences, the “top three picks” in Australia to buy for positive cash-flow were all places where the company is marketing product.
They included the company’s specialty area, the Pilbara region of Western Australia. South Hedland and Karratha were recommended as the best places in the nation to buy.
Here’s the pitch from the “mentor”:
“I’m a big believer in investing for cash flow and I’m always keeping an eye on which locations around the country are performing well in this area. Knowing how to locate these is vital if you want to find positive cash flow properties in Australia.
“I have some great strategies for how to locate high yield investment properties, but for now I want to share with you my top three property picks.
“There are plenty of towns where investors are achieving higher yields than those that I suggest. However, I have greater confidence in the long term outlook for the ones I’ve featured in my blog.”
He then suggests areas in which his company is a major marketer of off the plan apartments and other properties.
Here’s the reality for Port Hedland/South Hedland and Karratha. Both markets are in decline but remain outrageously overpriced.
The median house price for <a href="/news">Port Hedland</a> was $1.2 million, but has dropped 17% in 12 months and is now down to $970,000 - still way too high for investors to consider.
Rents have declined a lot so, despite the price drop, yields are typically 8%. In the boom times they were commonly 12%. Vacancies have been around 6% since late in 2012 and this market is still falling, with discounting of about 11%, according to Australian Property Monitors.
<blockquote>
Here’s the reality for Port Hedland/South Hedland and Karratha. Both markets are in decline but remain outrageously overpriced.
</blockquote>
Nearby South Hedland is also in rapid decline, with the median house price down 6% and the median unit price down 14% in the past year. The marketing company says yields from 9% to 12% are typical, but APM says the median yields is 7.8% for houses and 7.5% for units. It takes six months to sell on average, with discounting around 12%.
It’s even uglier in <a href="/news">Karratha</a>, with price decline steeper, yields lower, discounting higher and time on market longer.
In the Karratha suburb of <a href="/news">Nickol</a>, the median house price has dropped 17% in 12 months. That includes 5% in the most recent quarter, so the market is still falling. The last time there was any price growth was 2010, with the market sagging an average 12% per year for the past three years.
Discounting is around 13% and it takes five months to sell the average Nickol property. In nearby <a href="/news">Pegs Creek</a>, it takes seven months to sell.
Typical yields are claimed by the marketing company to be 8-10%, but APM indicates 6-7%, amid 6% vacancies.
Keep in mind that the mentor says these are not just good places to buy, but the best places to buy in Australia. Mentors like this you don’t need.
To provide a further feel for how this organisation pitches to consumers, here’s what is claimed to be a testimonial from a “seminar attendee” …
“I spent an evening at (name of presenter)’s seminar and all I have to say is: this guy delivers. It was a supersonic combo of strategic investment insights and wealth-building how-to’s from people who walk the talk. Incredible speakers, killer content and amazing connections, all brought together in one jam-packed evening. They clearly have a talent for creating a valuable, education, high-energy experience.”
The chances of a genuine customer writing such a tribute are zero. A “supersonic combo”? Who talks like that?
You will note they claimed it came from a “seminar attendee”, which was probably a team member or possibly the seminar presenter himself. Technically, it’s not untrue.
You can contact Terry via <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
Image courtesy of Wikimedia Commons.
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terryryder-YECXbqmri2

Port Hedland and Karratha "the best places to buy"? Don't get roped into that one

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Rent to buy schemes, also known as vendor financing, have received some bad press over the past year – and it seems that their run isn’t up.
Consumer Affairs Victoria has promoted tweets, warning that property buyers should be wary of “high risk” property investments, including rent to buy.
<img 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" alt="">
Warning <a href="https://www.consumer.vic.gov.au/housing-and-accommodation/buying-and-selling-property/buying-property/high-risk-property-investments" target="_blank">against property spruikers in the same link</a>, rent to buy schemes are targeted. It notes that this variation of vendor sales targets lower income earners, or “prospective property buyers unable to obtain mainstream finance”.
It warns that buyers have limited legal rights if the arrangement goes wrong.
Under a rent-to-buy scheme, the buyer enters into a rental agreement with the vendor where they are charged high rent (well above market rate). At the end of the rental period they may buy the property but ownership of the property does not pass to the buyer until they exercise the ‘option to purchase’ after the rental period has expired.
Those who clicked on their promoted tweets would have seen the following:
The risks for buyers
<ul>
<li>Rent-to-buy contracts are high-risk schemes for buyers because the title of the property is not transferred to them until they have purchased the property outright. 
</li>
<li>You will likely be paying significantly above market rate rent and will not have any equity in the property until the full purchase price is paid. 
</li>
<li>The rental period may last several years and, if your circumstances change, you may be unable to complete the payments. Therefore, if you pay almost the full purchase price but do not complete the payments, you won’t get your money back and will not have any claim over the property. 
</li>
<li>Even if you complete the rental payments, you may still not obtain a home loan and lose not only the property, but also all of money you have spent. 
</li>
<li>Be aware that if you use your first home buyers grant to buy a property, you will lose the right to apply it to any future property transactions. 
</li>
<li>Some rent-to-buy contracts may indicate that you will lose all payments made and have no claim over the property, if you fail to make even a single payment on time. 
</li>
<li>In addition to rent payments and an option fee (for the option of purchasing), some contracts generally require you to pay for repairs and maintenance, council rates, insurance and other outgoings. 
</li>
<li>Potential buyers should be aware that these costs may be substantial, particularly with an older or run down property. 
</li>
<li>If the vendor has a mortgage over the property and fails to keep up their own repayments, their lender may have the right to repossess the property.</li>
</ul>
Source: Consumer Affairs Victoria
Vendors must be aware that they must:
<ul>
<li>Abide by the rent-to-buy contract and be unable to sell the property to the another buyer (perhaps offering a higher price) while the contract is in force, even if you need to liquidate your assets due to a change in circumstances. 
</li>
<li>Be effectively locked into a long-term settlement period where the purchase price is fixed and you will lose any right to future capital growth if the property’s value increases over that time. 
</li>
<li>Remain legally responsible for the property until the buyer makes the final payment and the property title is transferred.</li>
</ul>
Source: Consumer Affairs Victoria
They also warn that if you are using the rent to cover the mortgage then you will be left vulnerable if the buyer fails to pay, and the renters may choose not to buy the property mid-way through the rent to buy process.
As an example of what can happen, on one instance in 2011, <a href="/expert-insights/investing/tenants-sell-landlords-pool-in-rent-to-buy-swindle">tenants sold a vendor’s pool in a rent to buy swindle</a>.
Western Australia’s Consumer Protection has been particularly bullish against rent to buy schemes. For one company, the Supreme Court ruled that one operator was illegally functioning as the owners were not licensed estate agents and also misled those who signed up – this was <a href="/news/wa-rent-to-buy-scheme-ruled-deceptive-and-illegal-with-other-similar-schemes-facing-investigation">in the case of No Loan Home Pty Ltd in June 2012</a>.
In another publicised situation, a WA rent to buy property scheme saw <a href="/news/wa-consumer-protection-targets-rent-to-buy-property-scheme-that-took-david-beckham-jersey-in-lieu-of-deposit">vendors taking a signed David Beckham jersey and a Franklin Mint Edition Monopoly Board in lieu of a deposit</a>.
Property Observer followed what caused a young brother-and-sister duo to be led <a href="/expert-insights/investing/from-seminar-to-success-story-to-getting-fined-in-the-supreme-court-of-western-australia-how-it-happened">from a rent to buy seminar to being fined in the Supreme Court of Western Australia for their property dealings</a>.
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