<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

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The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
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Joel Robinson

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

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

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

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

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

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

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

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

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

Smsfs

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The Assistant Federal Treasurer Josh Frydenberg says he has been troubled by stories of property spruikers pushing people to set up an SMSF so they could borrow against their retirement savings to make speculative property investments. 
However he said such events were the exception rather than the rule so he has given the strongest signal yet that the Abbott Government will not implement a recommendation to ban do-it-yourself super funds from borrowing to invest in property.
"In the final report of the financial system inquiry, which the government commissioned David Murray to prepare, he recommended a complete ban on limited recourse borrowing arrangements in SMSFs," Assistant Treasurer Josh Frydenberg said on Friday as reported by Fairfax Media from the Tax Institute annual superannuation conference in Sydney.  
"I want to emphasise that we have been considering this recommendation very carefully but flag that we want to make sure the approach we take is proportionate to the risks that have been identified."
"To put it in context only 0.07%, perhaps 6,500 properties, were held in an SMSF through a limited recourse borrowing arrangement in 2013," he said.
"David Murray highlighted the risks associated with increased leverage in the financial system. Increased leverage always represents a risk and we recognise that. The government also recognises that most SMSFs do the right thing". 
Tightening the rules around how SMSFs can borrow to invest, instead of placing an outright ban on the practice, remained "under consideration", he said.
Asked whether he thought targeting action against property spruikers was a better solution than limiting the SMSF borrowing rules Josh Frydenberg said that was certainly an option.
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jchancellor-FAypfDUnLy

No borrowing ban likely for SMSF: Josh Frydenberg suggestion

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ASIC has provided two information packs designed to better the advice given by advisers on investing in self-managed superannuation funds.
The downloadable documents stress ASIC's view that an SMSF with a starting balance of $200,000 or below is unlikely to be client-centric and more likely be investigated by ASIC.
ASIC Deputy Chairman Peter Kell said it is important that consumers receive good quality advice that will assist them in making informed decisions about their retirement savings.
'ASIC wants to ensure that only those investors for whom an SMSF is suitable are advised to establish an SMSF and that our expectations around the standards of advice are clear.
'SMSFs are a key priority for ASIC and we will continue to target inappropriate advice about SMSFs in our surveillance work,' Mr Kell said.
ASICs information packs can be downloaded <a href="https://www.asic.gov.au/about-asic/media-centre/find-a-media-release/2015-releases/15-192mr-asic-releases-guidance-on-smsf-advice/" target="_blank">here</a>.
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mick.cee-iDmgDDAmu8

ASIC offers to help SMSF investment advisers

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You know it wasn't that long ago that we lived in a totally different world. We had jobs for life. If you started work after leaving school in a bank, then you worked for a bank for the next thirty years or so. It was the same as buying a house and living in it for the same thirty years or so. That one house was deemed your 'investment for life' as superannuation was not yet invented.  
Also about 30 years ago, a little thing called the internet was introduced to us, we were told we could 'surf' the World Wide Web, little did we understand at the time the absolute massive impact this would have on the way we'd  live in the future.  
 I have trouble explaining to my kids that there was no internet when we were kids! The internet has now become an historical era; we talk pre and post internet. The internet opened up everything and now anyone, no matter what age can start a new business or become an 'entrepreneur'. So the 30 year careers in one industry have become extinct. 
A survey I read recently reported that 41% of all new business start ups in Australia are launched by people aged between 30 and 39, 21% aged 25 to 29 BUT 16% are aged between 40 and 44. I have a client starting her new business at the age of 58. Anything is possible. 
Today I received a call from a fifty something man who had made his fortune in buying, building up and selling businesses and now he was ready to park his money in property using a Self Managed Super Fund. He said "Jo, I'm ready now to kick back a bit and let my investments do the work for me." He is looking at a Property Bloom development that he'll fund from his SMSF that will create a nice chunk of equity during the development process and then result in a strong  yielding investment for him. 
The age for first time property investors is reducing. Whilst one in five Australians own an investment property, the number of Generation Y’s, individuals born roughly between 1982 and 1994, who own multiple properties is now on par with the Baby Boomers (17% own 2 or more). My step daughter fits this description with three properties under her belt.  Our youngest client will have six investment properties once we complete the two developments we have underway for him. His strategy is to build his portfolio as quickly as possible then as he starts a family, pull back and let time and capital growth work for him. The Gen Ys I know are clever. They embraces the internet early and used it as a tool to research and educate themselves on property investing. 
We live in a world overflowing with information and as older people realise that perhaps their 30 year career and original home is not going to deliver the retirement income they'll need over the next 30 years - because yes we are also living longer - then it's never too late to start investing and looking at entrepreneurial opportunities. Don't let physiological hang ups about 'comfort zones' set years ago hold you back. 
It's exciting times and why not build your own dream now? 
Jo Chivers is Chief Executive Officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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jochivers-wq5Bp59R5a

Never too old to own your future: Jo Chivers

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Investment in residential property through self-managed superannuation funds has risen 11% in the past year. 
The big increase in property investment by SMSFs is revealed by the Australian Securities and Investments Commission in its submission to the latest parliamentary inquiry on home ownership. 
"As at March 2015, the value of residential real property investments through SMSFs was $21.78 billion … up from $19.49 billion … in March 2014," the ASIC submission said. 
Despite the growth, residential property still makes up less than 4% of total Australian and overseas assets held by the 500,000 SMSFs. 
The Reserve Bank of Australia also observed that "although the share of the housing stock owned by these funds is small, it has grown quickly". 
Since the law changed in 2003 to allow SMSFs to borrow money, concern has increased about the influence of the small super funds on the housing market. 
SMSFs are the fastest growing sector of the superannuation industry and investment in property through SMSFs is consequently also growing, ASIC noted.
As at March 2015, the value of residential real property investments through SMSFs was $21.78 billion, or 3.7% of total Australian and overseas assets, up from $19.49 billion, or 3.6% of total Australian and overseas assets, in March 2014.
"There has been an increase in investment in residential real property through SMSFs of 11.78% from March 2014 to March 2015, and an increase of 58.69% since March 2011.
"ASIC’s primary role in relation to SMSFs is to regulate the gatekeepers—the financial planners, accountants, auditors and providers of products and services to SMSFs.
"We want to ensure that those who are advising retail clients about establishing and investing through SMSFs are providing good quality advice.
"We consider that gatekeepers have a critically important role in ensuring the overall health of the SMSF sector is sound.
"ASIC has publicly warned investors about misleading advertisements regarding the use of SMSFs.
"ASIC has also taken regulatory action in relation to the promotion of investment in residential property through SMSFs in a number of instances, including Money Choice, Charterhill and Park Trent," the submission noted.
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SMSFs spending on housing up 11%: ASIC

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SPONSORED POST
You put funds aside during your working years to support your retirement income needs. In Australia this is partly managed by the mandatory employer contribution to superannuation. 
Some think this will be sufficient to meet their needs. However, if you wish to live the life portrayed in your imagination and the advertising you also need to contribute. Jeremy Cooper, the Chair of the Federal Government’s Super System Review and Chairman, Retirement Income at Challenger, said it would cost about $1M today to buy a Government Pension for retirement. This $1M would buy an annual income of about $33,717 for a couple with no additional Government benefits.
You need your superannuation funds to grow for two reasons: firstly, because inflation is constantly eroding the spending power of these savings, and secondly to provide more choices in your retirement years. To support your choices you need to appreciate capital growth, inflation, and the role of leveraging through borrowed funds. 
Inflation
Superannuation saving begins in your teens or twenties and you want your money to have the same spending power in your sixties, seventies and eighties. However inflation is constantly reducing the value of money as goods rise in price over time. 
Inflation, which we measure as CPI, at 2% per annum means an income of $100,000 in year one buys only half the same goods in year 37. Many now expect to live beyond 80 or even 90 years, and the impact of inflation in retirement is a key concept to appreciate. It is in these latter years of your retirement that your health care costs can really escalate. If your spending power has reduced over time you may not be able to afford the care you need. 
If you invest your superannuation via a bank account it is unlikely your money would maintain its spending power over time, as the returns from interest after tax are not high enough. If you had invested in property it has maintained the value of your money and maintained your spending power over the last 30 years and more. 
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Capital Growth
Most are keen for their superannuation savings to perform, to grow at a rate greater than inflation. This performance increases the risks to the funds, however you need to invest in assets that grow. 
Because of the past performance of property many of you are confident to invest. Most of you have own your own homes, have seen them rise in value over the years and have successfully managed your debt. 
Leverage
Most of you intend to borrow money to invest in property, and in an SMSF lenders typically will lend up to 70% of the value of the property and sometimes up to an 80% LVR. 
This leveraging increases the returns on your investment. If you have $100,000 invested in a $300,000 property and it grows by 7% per annum then you have made three times that amount on your money and have a 21% return. It is this multiplying effect as you leverage your money with borrowed funds that creates much of the wealth from property. 
Many property investors buying property outside of super, leverage their properties hard to create strong returns on investment. Many plan to release equity to boost their capital to re invest. Inside of super the rules are quite different. You can’t release equity from a property as it grows in value. Rather the decision is to hold or to sell. 
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Why property investment through an SMSF? Forrester Cohen

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SPONSORED POST
People who buy property through a self-managed superannuation fund need to consider what to do with the asset after they have retired and how to pass it on after they have passed away. 
SMSFs allow for assets to be handed from one generation to another as an inheritance, but there are regulatory constraints and taxes to take into account. 
Reserves after retirement
At retirement, an SMSF member may start a pension from their fund, in which case the balance will reduce over time. The fund may have sufficient cash flow to support pension payments but as the person ages the proportion of the fund’s balance that must be paid out as a pension increases so it becomes more likely that the property will have to be sold to support the pension. 
If the family has other sources of income, and doesn’t need to draw a pension from the SMSF, it is possible to leave the assets untouched by keeping the fund indefinitely in what’s known as the accumulation phase. 
SMSFs in accumulation phase do not issue a pension but the income and capital gains made within the fund are taxed at 15%, while they would be tax free if the SMSF was paying a pension. For some retirees, the 15% tax is still less than they would pay if they held the property in their own name so there can be advantages to holding it in the SMSF to pass on as an inheritance.
Inheritance
When an SMSF member dies, the assets held in their fund do not automatically form part of their estate. The estate can access the assets and distribute them according to the person’s will but conditions in the SMSF’s trust deed and superannuation laws must also be satisfied.
There have been cases in which surviving SMSF trustees have been able to go against the wishes of the deceased fund member. SMSF members should seek legal advice on how to avoid that risk.
SMSF members may provide their fund with a binding death benefit nomination, which gives direct instructions on who should receive the deceased member’s share of the fund’s assets but there are restrictions on who can be named as the recipient. Whether such a nomination is appropriate will depend on the fund member’s personal circumstances. 
Relationships matter
The way in which beneficiaries receive their inheritance depends on their relationship with the deceased SMSF member.
People who are in what’s classified under superannuation law as a dependent relationship with the fund member can receive their inheritance payment as a lump sum or a pension from the fund. People who are not in a dependent relationship must be paid a lump sum. 
Dependants can include a spouse, de facto or ex-spouse, as well as children who rely on the person for necessary financial support or are aged under 18 years. Other people may qualify as being dependants of the deceased but adult children typically do not.
The amount of tax each beneficiary pays on the inheritance also depends, in part, on whether or not they are a dependant of the deceased. Other factors also influence the amount of tax due, including the tax structure of the fund itself.  
In some cases, a property held through an SMSF can be passed from a deceased fund member to their beneficiaries without leaving the fund. The way the SMSF is structured affects how easy and how costly it is to do this. 
SMSFs can have up to four members. They can be established with individual trustees, where each member is also a trustee, or with a corporate trustee where each member is also a director of the trustee company. 
If the fund was established with individual trustees, the titles on the SMSF’s assets and the individual trustees must be updated when a fund member dies. State governments and any administration systems the SMSF uses may charge fees for these changes.
Funds with a corporate trustee can change their members by updating the corporate trustee’s directors. The fund must notify the Australian Securities and Investments Commission and the Australian Taxation Office of these changes but there is no change to the title of the SMSF’s assets.
Are other vehicles better?
Holding property through an SMSF is just one way to pass the asset on through the generations. Other options include owning the property directly, or through another tax structure such as a company or family trust. Each has its advantages and drawbacks. 
SMSFs can be tax effective in some situations but there may be simpler and less costly alternatives. Each family is different and what’s best will vary depending on individual circumstances. Seek professional advice. 
 
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Set up future generations through estate planning: Forrester Cohen

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SPONSORED POST
Every property investor wants to buy well, so they can eventually sell well. But identifying a property that will deliver strong yield and solid capital gains over the long term is not always easy. 
Rental growth has been stagnant in some areas, while capital gains on individual properties are never assured, even in cities where the overall trend has been for price growth. 
Finding a property that will produce a positive result requires in depth research and consideration whether investors are buying directly or through a self-managed superannuation fund.
Investors who buy property through an SMSF typically plan to hold for the long term. The fund should have an investment strategy that documents its goals for holding investment property. This should consider diversification and liquidity requirements. Properties are high value assets making it difficult for a fund to be diversified unless the balance is large. They are also illiquid, meaning they can’t quickly be sold for cash.  
There are restrictions on the types of improvements SMSFs can make to properties they own if they borrow the money, particularly if the fund has borrowed to buy the investment. This means capital growth and rental income, rather than profits from developing or renovating and on-selling a property, will drive investment returns for the fund. 
SMSFs can buy most types of residential new and established property as long as the property is not purchased from anyone related to the fund members. Commercial property can be bought from related parties as long as the transaction meets regulatory conditions such as being sold at market value. 
Where to Buy
Location, price point and the property’s attributes are some obvious features to consider when searching for residential investment property.  Looking at these from a home owners’ point of view gives little depth to the considerations of what will drive the profits.  
There are various schools of thought on the best locations for an investment property. Some commentators advocate buying apartments in inner city areas, while others favour properties in middle and outer ring suburbs, or in regional locations. Schools of thought promote property commentary or opinion and these are real estate skills. It is much better to look to advice that presents and analyses the facts to support informed decision-making.
It can be difficult to predict the capital gains prospects of an area but some factors that influence growth potential include demand as measured by population growth or days on the market, supply as measured by dwelling starts and infrastructure that attracts a regional focus or increases accessibility to regional amenities and employment.
Suburbs where the growth in demand is outstripping the supply of new properties are more likely to experience capital growth than areas where supply and demand are in balance, or where an oversupply is emerging.  
Rental growth and the yield the investment property delivers will be affected by factors such as the appeal of the area, its life style amenities and commute times to employment and educational centres. Rental vacancy rates that reflect the current appeal, can be trended to support in depth understanding.
Timing
Property markets tend to move in cycles where prices rise fairly strongly, then plateau or decline before picking up again.  
Buying into an area where prices have already achieved significant capital gains may not offer the same growth potential as nearby suburbs that have not boomed as strongly. 
Timing entry into any investment is complex and holding for the long term can minimise the risk of a capital loss.  Trended capital growth rates versus days on the market can give much stronger support for informed decision making.
Be wary of areas that are dependent on single industries for their economic success. Mining towns for instance, delivered incredible rates of capital growth during the boom but their prospects are very limited now that investment in the resources sector has slowed. 
What
When considering individual properties look at the demographics of the area and favour the properties that will appeal to the broadest range of tenants for rental and to home owners for your exit.   
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Creating an SMSF portfolio of property: Forrester Cohen on entry strategy

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Self-managed superannuation funds are gaining popularity as more people seek control over the investments they hold in the compulsory retirement savings system.
At the end of December, 1,034,497 people had an SMSF, up from 983,982 at the same time a year earlier, the Australian Taxation Office reports.
These funds held a total of $568 billion in investments, of which more than $21 billion was invested in direct residential property. Almost $70 billion was invested in direct commercial property, ATO figures show. The value of the SMSF sector represents close to 30% of all funds in superannuation showing the depth of the desire people have to control their own investments and their belief they can do better than the professionals.
Property is appealing to SMSFs partly because it is a long-term investment. You can’t withdraw savings from superannuation until retirement so it makes sense to hold long-term assets there. 
People have had success investing in their own homes and believe they can bring that success to their SMSF.  However when PIAA interviews property investors about their knowledge of the market place over 90% comment that they know a lot about property but they don’t know how to move forward with the selection of a property for performance to their goals and time frames. In SMSF it is particularly important to invest in property that has long term performance support and has strong exit appeal to support its re sale as mandatory SMSF draw downs require.
Investment property can deliver attractive income levels when compared with assets such as term deposits, bonds and some Australian equities. On top of that there’s the prospect of capital gains.   
There are significant tax advantages to holding property within superannuation. Rental income is taxed at 15% and capital gains is taxed at only 10% after 12 months while the fund is in what’s known as accumulation phase, when the members are making contributions to its balance.
After the members have retired and start drawing a pension from the fund, any earnings and capital gains are tax free.  This can save tens of thousands of dollars in capital gains tax compared to holding a property in your own name.
Taxation rates on income to superannuation at 15% are also lower than all marginal taxation rates.  This means it can cost you less to earn the funds to invest in property in an SMSF than from your post tax savings account. 
Property held through superannuation qualifies for the same tax deductions as property held outside of a fund.
Residential property investments can also be used to protect against inflation, which is a significant risk to retirement savings as it erodes the purchasing power of money over time.
The Reserve Bank of Australia aims to keep inflation, measured by the Consumer Price Index (CPI), at between 2% and 3% a year over the medium to long term.
A 3% inflation rate means that every dollar worth of goods or services today will cost $1.03 in a year’s time. The effect compounds so in 10 years’ time, one dollar’s worth of goods today will cost $1.34. 
A well thought out investment strategy should have a plan for combatting the effect of inflation.  
Residential property can offset inflation as capital gains should, at a minimum, keep pace with the inflation rate. Rental income should also rise in line with CPI.  Residential property is more effective at combatting inflation than money in the bank, and is generally considered lower risk than shares by financial planners.
In reality, the capital gains made on residential property in most parts of Australia have surpassed the inflation rate over the long term.
Research from Corelogic RP Data shows that across Australia’s eight major capital cities, home values increased by a cumulative 38% from the beginning of 2009 to the start of 2015. Each market rose over that period with Melbourne property increasing in value by 51.8% and Darwin homes gaining 24%. Sydney’s market was the strongest performer with prices rising by 56.9%.
A longer term analysis by CBRE, presented in its most recent Global Living report, found property values in Australia gained 221% over the 30 years to the end of 2014.  This result was second only to the UK of their surveyed countries.
CBRE attributes the strong result to Australia’s economic resilience, low interest rates and comparatively stable political landscape.  These are key indices of a strong property market and indicate strong capital growth drivers.
One such driver, population growth, has been stellar. Sydney’s population has increased by 15% over the past decade and is expected to grow by a further 25% between now and 2029.  This is growth rate is amongst the highest in the Western world and higher than many Asian and African countries.  Significantly this increase is driven by our immigration policy rather than births, 457 visa recipients are often highly paid and very motivated to enter the property market.
Housing supply has failed to keep pace with this rising demand. CBRE says Sydney’s property supply is “restricted by land availability through geographical limitations, zoning, planning restrictions and suitable infrastructure”.
Housing Industry Association research confirms that over the past decade demand for housing has outstripped supply all around the country.  Identifying imbalances between supply and demand is one of the five key capital growth drivers to support due diligence.
Access the market
Investors with a large enough balance in their SMSF can buy residential property outright. Alternatively, SMSFs can borrow to invest using special lending facilities, known as limited recourse borrowing arrangements.
Borrowing to buy residential property can magnify the returns on the investment.  If your SMSF invests 33% of the value of the property and you borrow the balance then you have increased your returns three fold.
Say you have $250,000 to invest in property through your SMSF. If the property increases in value by 8% in the first year, the capital gain would be $20,000. By borrowing an additional $250,000 to buy one or two properties worth $500,000, you could double your capital gain to $40,000, assuming all properties increased in value at the same rate.  If the property portfolio was leveraged at 66% then your return on investment would be 24%. This is higher than most commercial funds over recent years.
With current LVRs for SMSF borrowing at 70 to 80% and very low interest rates many properties can be held as cash flow neutral, with depreciation benefits creating a small loss to be offset against other income or carried forward.
It’s important to note that should property values fall, any capital losses would be similarly magnified by borrowing. Rental property is not a risk-free investment and buying investment property through an SMSF will not suit every investor.
For more information on self-managed super funds (SMFS) and property investment, download Forrester Cohen's <a href="/news">U</a><a href="/news">ltimate guide to property investment, Part One, Property and SMSF here</a>.
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Tax advantage factor in super property investment: Forrester Cohen

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One of the most common questions I am asked these days comes from investors looking to use their self-managed super funds (SMSF) to invest and develop property.
It's no surprise that people who've had good experience with property investing want to apply the same strategy and take control of their superannuation investments.  But it's not as easy as it seems and you need to be clear on what tactics are permissible when investing money from your SMSF. You also need good, qualified advice.
I have to say I find it a little hard to stay on top of what you can and can't do with a SMSF.
When we recently started working with our new client Adam Mondy of <a href="https://www.mondyfinancial.com.au/" target="_blank">Mondy Financial Services</a>. I was delighted to hear that he was a financial planner who specialises in SMSFs. So I asked Adam if he wouldn't mind setting us straight on what we can and can't do with a SMSF.
Below are Adam's words of wisdom:
THE SMSF Developments
It sounds like a new movie release, but the SMSF world can be just as exciting and just as scary.
The Australian Tax Office are suggesting that 30,000 new SMSFs are opening each year, which is a lot of people wanting to be in complete control (or at least have the perception of control) over their retirement fortunes.
Investments in a SMSF
Any investment you can make in your current super fund or personal name you can make in an SMSF. Although if you are looking to boost your collection of fine wines and buy a few bottles of Grange Hermitage or perhaps add to your art collection with a Pro Hart, then that's a topic for a another time. Whilst it can be none, it's far more complicated.
You can invest in shares, term deposits, bonds, real estate trusts but a major drawcard and what has become very popular, is property.
Borrowing to Buy Property in your SMSF
The fact that you can take your super, borrow some funds from a bank and then buy a property that you may pay off in 15 - 20 years (yes slightly different than your traditional property strategy) using some or all of your superannuation guarantee payments, is a powerful strategy. Not a perfect, well diversified, sure fire guaranteed strategy, but nevertheless a powerful one based on past property prices. Basically if you are comfortable with gearing (using somebody else’s money, at a cost, to help build your future funds) using SMSF may suit you.
The standard method is to obtain a special loan from a normal banking institution, combining these funds and you can purchase any type of property. The ATO has very strict rules on “whom” you can purchase from and “who” can use these properties but any property type is fine.
The interesting thing about these loans is you cannot change the fundamental character of the property while the loan is on foot. For example, land cannot be purchased and then developed while a loan is attached. You could purchase a house and land package or an “off the plan unit” but there could be no ownership transfer under the package until the home/unit build was completed. The fundamental change being from vacant land to residential property.
On the other hand it is possible to make improvements to property, whilst the loan is on foot, so long as:
a) The improvements are not so extensive that they result in a change of the fundamental character of the property. Renovations to an existing residential property would generally be acceptable;
b) The improvements are not funded from borrowed monies, In other words the fund uses its own funds to make improvements to the property.
Can you develop property in a SMSF?
Many people think that you cannot develop in the SMSF environment. This is not correct. You can set up special trusts within the SMSF environment that allow you to use borrowed (by the SMSF) funds, develop property, subdivide, buy/sell, build a granny flat, or any property strategy you can think of. These trusts will even allow other investors, other SMSFs or you personally to invest with your SMSF to undertake a development.
The major catch, other than it is highly regulated, complicated and can be costly, is that you need to have the funds outside of the specific property you are developing. You cannot borrow against the property you are developing, as would be the “norm” in a traditional development. If you have access to funds, are able to borrow against other assets and/or have other parties involved, this scenario may be beneficial.
Using your own funds i.e. not borrowing
Basically you can do what you like with your own super funds in relation to property when borrowing is not undertaken. As long as the ATO rules of purchasing and “use” of the property are satisfied then any purchase, development, construction, subdivision or investment can be undertaken.
Your future self?
Whilst using your SMSF to invest in property has become common, you should consider that property is illiquid and may not produce the returns it has in the past. So it's important to do your due diligence carefully. In addition to this many property investors are committed to property over other investments, meaning there is little diversification across their portfolio. However, using different strategies such property development where you are adding value and creating equity through the process, can be a good way of building up the value of your SMSF faster than waiting on capital growth.
With any investment the return you receive should attempt to reflect the potential risk you are undertaking. Don’t forget in this instance we are talking about your future retirement funds, so you not only need to justify this strategy to your advisers, to your auditor and to the ATO but most importantly to your future self and family, so tread carefully.
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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Can I develop property using my SMSF? Jo Chivers

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Small and medium-sized enterprise (SME) owners are examining alternative ways to acquire and gear their business premises in the event that the government bars self-managed super funds from directly borrowing to invest using increasingly-popular limited recourse borrowing arrangements (LRBAs).
These SME owners are responding to a recommendation in the <a href="https://fsi.gov.au/publications/final-report/" target="_blank">final report</a> of the Financial System Inquiry, chaired by David Murray, that this form of borrowing be prospectively barred. There is speculation that the borrowing rules for SMSFs could significantly change in the months leading to the May budget.
Since September 2007, super funds have been permitted to borrow to invest – as an exemption to the general bar on borrowing – using limited recourse borrowing arrangements. The geared asset must be held in a holding trust until the loan is repaid and creditors cannot make claims against a super fund’s assets other than the geared asset.
SME owners are believed to be among the biggest, if not the biggest, users of limited recourse borrowing arrangements to gear investments – typically to their own business premises – through their SMSFs.
Significantly, business property is one the few types of assets that SMSFs are allowed to acquire from their members and other related parties. As well, business property is one of the few types of assets that funds can lease to related parties, including the members’ businesses, without being limited by the in-house asset rules in superannuation law.
In her latest newsletter, Meg Heffron, co-principal of SMSF administration group Heffron, asks a telling question for SME owners wanting to buy their business premises through their SMSFs: Does the possible demise of limited recourse loan arrangements “represent the end of the world as we know it” for SMSFs to acquire property if they don’t already have the cash?
It seems the answer is a resounding “no”, according to Heffron and Chris Malkin, senior consultant auditor with Baumgartner Superannuation.
Heffron and Malkin says the strategy that SME owners are likely to most use if limited recourse loan arrangements are barred is to arrange for their SMSFs to progressively buy their business premises through ungeared trusts or companies.
“I think ungeared trusts are much underutilised,” says Heffron, “probably because they are poorly understood.”
A typical strategy would involve the members of an SMSF and the SMSF itself owning units in the ungeared trust which acquires the business premises. And then the SMSF progressively acquires more units to eventually gain full ownership. Although the trust is ungeared, the law does not prohibit SMSF members from personal borrowing to acquire units in the trust.
Factors to think about when considering an ungeared trust as an alternative to a limited recourse borrowing arrangement include:
1. Security for the loan
With limited recourse loan arrangements, the geared business premises (or whatever other asset is being acquired) provide security for the loan whereas with a typical ungeared trust arrangement, SMSF members often borrow against the equity in their homes.
2. What’s at stake if the investment fails
This is, of course, linked to point one above. On the face of it with limited recourse loan arrangements, the geared business premises would be at risk if the investment did not succeed. Whereas with the typical ungeared trust arrangement, fund members would have borrowed against the family home and therefore the family home would be at stake. In practice, however, the contrast is not so clear cut.
Malkin emphasises that although with limited recourse loan arrangements, a financier can only make a claim against the geared asset, SMSFs often use almost all of their assets to pay the deposit or initial instalments on the investment. And lenders often require SMSF members to provide a personal guarantee, which typically means that their homes may also be at risk.
“Speaking as an owner of an SME, I usually try to divorce my personal assets from what I do with the business,” Heffron comments. “If I borrow to buy the business premises, I would like to have the loan secured on the business premises – not secured on my personal assets.”
3. Intended improvements to business premises
Under existing law, SMSFs using a limited recourse loan arrangement can only drawdown on the loan to make repairs not improvements to a geared property. (This applies to arrangements entered into after July 7, 2010.)
Heffron says that this bar on using borrowed money borrowed under limited recourse loan arrangements may make ungeared trusts more appropriate for an SME wanting to acquire business premises through their SMSFs and then to make significant improvements. Much depends on the circumstances, including professional advice received.
“The super fund or the family trust can buy more units in the ungeared trust,” says Heffron, “and that will provide the money to make improvements.”
4. Simplicity of strategies
Opinions differ among superannuation specialists about which strategy is simpler – limited recourse loan arrangements or ungeared trusts. Again much will depend on the circumstances.
Heffron believes that the limited recourse loan arrangement is generally simpler if the super fund does not intend to make improvements to the property and wants to simply rent it to the members’ business. This is partly because the geared asset is held in a holding trust until the SMSF makes the final instalments on the loan. There is no CGT event or transaction whenever the super fund makes loan instalments.
By contrast, Heffron says there is a CGT event with the ungeared trust strategy whenever the super fund acquires more units. Also Heffron warns in her newsletter that an ungeared trust is “permanently comprised” and loses its concessional treatment if it breaches the “fairly stringent” rules after a super fund invests in it.
5. Gearing tax benefits
From this perspective, the ungeared trust strategy would typically be the clear winner.
As Malkin explains, an SMSF member personally borrowing to buy units in the ungeared trust acquiring the business premises would be entitled to claim tax deductions for interest payments at his or her marginal tax rate. By contrast, an SMSF borrowing under a limited recourse loan arrangement would only be entitled to tax deductions at the standard superannuation tax rate of 15%.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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