Podcast appearances and mentions of Opal Tower

Sometimes it takes a sensational event to bring attention to major problems. Take, for example, the evacuation of approximately 3,000 people in Sydney's Opal Tower and Mascot Towers. Through these two stories dominating the headlines, Sydney's dysfunctional planning and development system has been highlighted. How big is this problem? How can both ordinary citizens and our governments address this issue? Laura Crommelin of UNSW shares with us her findings on the research she has conducted into building defects in strata, the truth about building defects, problems with design and construct contracts, and everything about the hazards that may be present in a building. If you enjoy the show, do like, rate, subscribe, and share us on social media and if you have your own questions you need clarity on, email us at questions@theelephantintheroom.com.au! See you in the episode!   Episode Highlights: Why Laura decided to tackle Sydney's building defects in her research [01:54] The challenge of finding out the truth [06:52] Coming up with a definition of a ‘defect' [10:44] What are the most common building defects? [12:21] Design and construct contract and its issues in residential construction [14:39]  When does the government get involved in these building problems? [19:38] Is the government's strata building bond inspection scheme a good move? [22:23] Data blindness when purchasing brand new properties [25:37] The star-rating system for developers [29:21] Do developers and builders care about the building defect issues? [32:57] Luxury and quality may go together, but what about affordability? [37:09] How can we get out of this mess in the property industry? [43:15]  The light at the end of the tunnel [47:02] Laura's property dumbo [49:35] Being aware of the defect issues before you suffer from them [53:11] Creating a standard for record-keeping in strata properties [56:06]   Links from the Show: Cracks in the Compact City: Defects in Strata Episode 188: Is your property fire safe? | Rob Broadhead, 2020 Fire Protection Episode 176: Developers are in the Government's crosshairs | David Chandler, NSW Building Commissioner Episode 206: Buyers Beware: Who Controls Your Access to Information? | Dr. Nicole Johnston, Deakin University Episode 112: Pandemic Crisis, What Will Happen to the Market | Veronica Morgan & Chris Bates   About Laura: Laura Crommelin is a Senior Lecturer in the City Planning Program at UNSW Sydney, teaching planning law and governance and working on research related to urban and housing policy. She is also a Fellow at UNSW's City Futures Research Centre. Laura's research interests cover a range of trends and issues in post-industrial cities, including urban renewal, urban governance, digital disruptions (e.g. Airbnb), place branding, and DIY urban revitalisation practices.   Connect with Us: Looking for a Sydney Buyers Agent? www.gooddeeds.com.au Work with Veronica: https://linktr.ee/veronicamorgan Looking for a Mortgage Broker? www.wealthful.com.au Work with Chris: hello@wealthful.com.au  Send in your questions to: questions@theelephantintheroom.com.au    Find this episode on our website: https://www.theelephantintheroom.com.au/podcasts/216    If you've enjoyed this episode, don't forget to like, share, rate and subscribe for more! See omnystudio.com/listener for privacy information.

What's a better investment in today's market -  apartments or houses? That's the topic of today's show. Now I could give you a simple answer, but I thought it was better to help you understand the thought process behind my decision than give you an immediate answer. Of course, I'll also be sharing my mindset message for today before the end of the show. So is it better to invest in a house or an apartment? The change to a new working and home life prompted by the COVID-19 pandemic, combined with a loss of confidence thanks to some shoddy high-rise apartment buildings during the last building boom has seen investors increasingly shy away from investing in apartments. It seems that more investors are now asking if apartments are still a good investment in the current market. Well… my response is… it depends. I remember times when apartments outperformed houses, but for the last decade or so house values have risen at more than twice the rate of units. And the current property boom widened what was already a sizeable difference in prices. Of course, historically apartments have been cheaper than houses but the gap in prices has grown particularly wide in the past year. Some apartments, especially family-friendly low-rise apartments in lifestyle neighborhoods have still performed well and are likely to remain in continuous strong demand. The Numbers of Apartment Living The 2016 Census of Population and Housing found that 10% (2,348,434) of all people in Australia spent Census night in an apartment. This meant that there was around one occupied apartment for every five occupied houses in Australia - compared with one to every seven, back in 1991. While the number of vacant rental listings has fallen significantly in Brisbane, Darwin, Perth, Adelaide, and Hobart over the past year, Sydney and Melbourne continue to bear the brunt of closed international borders that has left many inner-city apartments without tenants. Data from Domain showed Melbourne's vacancy rate sat at 4.7 percent as of February 2021 — a massive spike from the same time last year when the vacancy rate was 1.6 percent. Choosing the right neighborhood Sure, last year offices were shut and lockdowns were in place but moving forward more of us are likely to continue working flexible rosters and working at home more than ever. This means gone are the days where our ‘home' was simply the place we rest our heads and enjoy some downtime between work and our social lives – the coronavirus crisis has put an end to life as we once knew it. If you can leave your home and be in short 20-minute proximity – whether that is on public transport, bike ride or walk - to a great shopping strip, your favorite coffee shop, amenities, the beach, a great park, that's the new gold standard of where people want to live. What matters in a home? And it's not just the importance of neighborhood that has shifted Australians' views. The legacy of the lockdowns and the work-from-home-movement have made many Australians reevaluate what exactly they want in the home itself. All of a sudden people were trying to find space to be able to work, study, and also relax all under one roof - and in many cases, this hasn't gone well. Prior to COVID-19 more Australians were trading space for place and were embracing apartment living, trading their backyards for balconies and courtyards in inner-city locations. Now we want more space – a zoom room, a bigger yard, and a garage that can be converted to a gym. High rise apartments: The slums of the future It's worth pointing out that while large well-located suburban medium-density apartments will make great investments increased substantially in value over the long term, many of the high-rise towers built in the last fifteen years will continue to underperform with poor, if any, capital growth in the foreseeable future. Of course, these cookie-cutter-style apartment blocks never made good investments. The sad reality is that today, in light of the many media reports of structural problems in some of these high-rise towers, there is a crisis of confidence. This sector of the property market has lost the trust of the buying public and confidence will take quite some time to restore as various stakeholders including state and local governments as well as the construction industry including building surveyors and certifiers scramble to shore up the building sector. Investors are shying away Historically, a significant volume of apartments were bought by local and overseas investors. But as I explained, now many of these investors are shying away from apartments, due to increasing concerns about vacancy rates, capital growth, and also because of COVID-19 related concerns. Highly-publicized failures and defects in high-rise apartments, such as the Opal Tower in Sydney, are also playing their part and dampening demand. But it's important for investors to remember that not all apartments can be lumped into the same category. While many new homes are being constructed, the pipeline for new apartment complexes is very thin meaning when our borders eventually reopen and demand for apartments increases from the many new migrants and students returning to Australia, apartment prices will start increasing again as the cost of constructing new projects will be considerably higher than previous building costs. This will of course push up the price of new apartments and with it drag up the price of established apartments. Remember, property markets are cyclical In the short run, returns can be inconsistent, but it's well documented that investment returns eventually revert to their long-term averages. That is, periods of below-average growth tend to be followed by periods of above-average growth and vice versa While houses outperformed apartments with regard to capital growth over the last decade, for the 10 years prior to that many well-located apartments grew in value as much as houses did. The fact the houses have displayed strong capital growth rates over the past 10 years due to appreciating land values, interestingly implies that apartments are currently intrinsically undervalued. But comparing apartments to houses is unfair Of course, if your budget allows you to buy a house or townhouse in an A-grade location, that's first prize when considering an investment purchase, but our booming property markets mean that more and more investors will be unable to afford a house in an investment-grade location. Fact is, the rich are getting richer and they don't want to travel further out and I believe the gap between values in our established inner suburban locations and the outer suburbs will only widen. Australia's apartment market: The outlook In the short term…. Over the next year or two, it is likely that there will be less demand for apartments while first home buyers continue to prioritize houses and investors remain wary. In the long term…. Over the next 10 years, I think we're going to see a shift in Australia's apartment market and a much more substantial increase in capital growth. Why? While currently around 10% of our population living apartments, this is significantly lower than the percentage of people living in apartments in similar size western cities to Sydney and Melbourne, where it's not unusual to find 20 to 30% of the population living in apartments. Then, in light of structural and building problems in recent years, the next round of apartments will cost significantly more to build as builders and surveyors will be forced to avoid cutting corners and risking further scrutiny. This will, in turn, push up new apartment prices and therefore values of good established apartments. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a range of my ebooks here: www.PodcastBonus.com.au  Shownotes plus more here: What makes a better investment in today's market – a house or an apartment? Some of our favorite quotes from the show: “There's not one property market, so we can't even say there's one apartment market.” – Michael Yardney “These days, the place people want to be is not near the CBD, but in lifestyle neighborhoods where all the amenities are close by.” – Michael Yardney “Watching a movie that excites you, inspires you, makes you laugh, takes you away to another place, that's a good way of turning off your stress.” – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

The brand-new apartment building Opal Tower in Sydney may have been the building that put large property developments in the spotlight. That along with a global pandemic was going to do a lot of damage to an industry that is often referred to as the barometer of the economy. A city was only as successful as the cranes in the city skyline. We have talked to buyers and investors and now its time to speak to those that do the building. Those that are involved in the actual construction. Steve Chandler is the CEO of Lefta Group a property consultancy service and he walks through the realities of a new build of the future where we could be working from home more often. What a new build whether it be an apartment, or a home is going to look like? What is it going to need? Steve has 40 years of experience, he has lived and worked through the different economic and property cycles and his media commentary is needed. Commercial properties in a world where more people are working from home is going to be the most significant change in the property industry. Steve shares some numbers “75% of people can work from home and be productive, 20% of those that hide at work need to be managed and there is 5% that are people that need to be around other people. This great experiment of work from home is going to mean that businesses will be able to upgrade and those buildings not up to scratch are going to need to improve. “I am always going to have an opinion on matters, I won't share an article without my opinion supporting it.” The conversational style of Steve is very easy to listen to and he backs it up with observations that only an experienced industry person can do. He does not talk to prop up or promote an industry or a message he does it because he is an advisor to the full circle of property construction and development. There are some significant learnings that come from this podcast as an expert of an industry you are not necessary an expert communicator. Steve is getting pretty good at this media game.

Over the past few years I have observed a strong trend of investment-grade house prices growing stronger than apartments. It is true that all markets move in cycles and all cycles come to an end, eventually. It’s my thesis that several factors (such as the fall in the volume of new apartments, contraction of borrowing capacity and high population growth) are conspiring to create a growth cycle for older-style, investment-grade apartments.Supply of new build apartments drying up, fastDevelopment approvals for new apartments has been falling dramatically over the past few years. In Sydney, the volume of new apartments approved for construction has more than halved since its peak in 2016. In Melbourne, approvals have fallen nearly 40% in the last 18 months. The Brisbane apartment market is almost non-existing with less than a quarter of the volume compared to the peak in 2016.Major residential developments typically have a lead time of at least 18 to 24 months (i.e. planning through to construction). Therefore, if this trend continues, there will be a massive supply-shortage of apartments within the next few years. There is still some pipeline stock to come onto the market, however, once those properties are completed, supply is expected to fall.New-build apartments aren’t constructed with the secondary market in mindPurchasing a new build apartment and an establish apartment are materially different things.Typically, a brand-new apartment purchaser is influenced by things such as apartment finish and building amenities such as theatre rooms, pools and gyms. In the beginning, these buildings are all shiny and new and present very well. However, they tend to wear and tear quickly and these largely superficial attributes become far less persuasive (and costly to maintain).Conversely, established apartment buyers rarely focus on these factors – mainly because older style apartments rarely offer such amenities. Instead, these buyers tend to focus on factors such as location, privacy, soundproofing, natural light, smaller blocks (fewer tenants) and so on.Understandably, when you compare a brand-new apartment to an established apartment, the shiny new object gets all the attention. However, because a newer apartment is no longer shiny after 3 to 5 years of wear and tear, an older-style apartment starts to look comparatively more attractive.Borrowing capacity is diminishedIt has been very well documented that borrowing capacity has contracted significantly over the past few years. This means a property buyer’s purchasing power is less which forces them choose between two options. First, an apartment in a nice, blue-chip suburb close to everything. Or, second, a house in the outer suburbs. Many people will choose the first option. Consequently, I predict the reduction of borrowing capacity will force more property buyers into the apartment market.Houses are too expensive for many peopleApproximately ten years ago it was possible to purchase an investment-grade house in Melbourne for around $800,000. However, today, you need over $1 million. Therefore, if your budget is $800,000 you have two options. You can purchase an apartment, not a house. Or you can find a house in an adjoining, non-investment-grade suburb (i.e. compromise on the investment’s quality).With house prices continuing to increase, an increasing number of property buyers will be forced into the apartment market.Cladding and building quality issues make new apartments harder to sellBuilding quality issues in a few Sydney apartment complexes (e.g. Opal Tower and Mascot Tower) were well publicised during 2019. It is unclear how much of the restoration liability rests with the owners, but it’s safe to say that they will likely suffer some loss.In addition, many buildings are investigating the type of cladding used to ensure its adequately fire retardant, to avoid a repeat of the Grenfell Tower fire in London in 2017.These issues will impair the marketability of new-build apartment complexes. Consequently, developers will need to spend more money on marketing as well as improve the quality of their construction (higher cost). Both of these factors make constructing new residential towers less attractive to developers – and less attractive to property purchasers too.Population growth marches onAccording to the ABS, over the past 8 years, Victoria’s population has increased at a rate of between 100,000 and 150,000 people per year (rolling 12 months average) and NSW by between 75,000 and 130,000 people. Population growth in both states is driven heavily by overseas migration. Interstate migration is negative in NSW (minus 15,000 - 20,000 people per year) whereas its positive in Victoria (plus 12,000 - 15,000 people per year).If this growth continues, and supply of new apartments fall as indicated above, this imbalance in supply and demand will inevitably translate to property price growth.In the last 10 years, we have constructed too many apartmentsThe chart below compares Victoria’s population growth with Melbourne apartment approvals. In 2011 approximately 24,000 apartments were approved when Victoria’s annual population growth was only 75,000 – but 32% of people probably don’t want to live in an apartment! It appears that current construction volumes are now at a more sustainable level.Steer clear of Brisbane apartmentsI do not advise any of my clients invest in apartments in Brisbane (at the moment). Brisbane’s population growth is mainly driven by overseas migration as interstate migrants go to the Gold and Sunshine coasts e.g. retirees. Overseas migrants tend to be skilled workers and Brisbane has the best job opportunities in Queensland. These migrants tend to be young families and need a house, not an apartment. In addition, the apartment market is still in over-supply and it will take many years until this surplus stock is absorbed by demand (natural population growth).But not all apartments are good investmentsYou are probably sick of reading this, but it must be said: “not all apartments will make good investments”. In fact, I would say that very few apartments can be regarded as investment-grade. Therefore, I always recommend that people engage a reputable and experienced buyers’ agent to assist them with selecting the right property to invest in. This blog will remind you of the three attributes needed for a property to be deemed investment-grade i.e. strong land value component, scarcity and proven performance.Markets move in cyclesIt is my observation that apartments have dramatically underperformed houses over the past five to ten years i.e. house prices have increased at a much higher rate. As I illustrated in this blog (using historical data), most property markets move in cycles. A high growth period of 7 to 10 years is typically followed by a low-growth period. If we agree that the established (investment-grade) apartment market has recently been in a low-growth phase, that should mean a higher growth phase will follow. I predict this growth phase will begin in the next five years, for the reasons discussed above.If you need assistance with your property investment plans, including a referral to a reputable buyers’ agent, please don’t hesitate to reach out.

Amanda Farmer returns to the Elephant in the Room Property Podcast to discuss all things Strata. Amanda is the Director of Lawyers Chambers on Riley and Founder of Your Strata Property. With 16 years under her belt as a specialist Strata Lawyer, Amanda is a respected and well known authority in the property market. In this Episode Amanda opens up on the rights and obligations of strata owners and looks at the case study of Mascot and Opal Tower. Here's what we covered:  How building defects impact strata owners What are the strata challenges facing Mascot and Opal Tower How to have your say as a strata owner? Is Opal Tower legally obliged to repair the building? What are your rights as a strata owner Why your strata report is important How to learn more as a strata owner How embedded network contracts can impact strata owners The importance of strata meetings Why you should always do your due diligence MENTIONED EPISODES:Episode 25 | Amanda Farmer Episode 1 | Simon Russell GUEST LINKS:Lawyers Chambers on Riley Your Strata Property - Website - Podcast HOST LINKS: Looking for a Sydney Buyers Agent? www.gooddeeds.com.au Work with Veronica: info@gooddeeds.com.au Looking for a Mortgage Broker? www.weatlhful.com.au Work with Chris: hello@wealthful.com.au EPISODE TRANSCRIPT: Please note that this has been transcribed by half-human-half-robot, so brace yourself for typos and the odd bit of weirdness…This episode was recorded on 14 November, 2019. https://www.theelephantintheroom.com.au/podcasts/103

I'm chatting to Daniel Holt - strata lawyer turned strata manager - about how to stay calm in a crisis. And he would know: Daniel was the manager who received the phone call on Christmas Eve 2018, informing him that Opal Tower needed to be evacuated. In this wide-ranging conversation, we also cover: how to... The post 194. The art of crisis management – with Daniel Holt appeared first on Your Strata Property.

I'm chatting to Daniel Holt - strata lawyer turned strata manager - about how to stay calm in a crisis. And he would know: Daniel was the manager who received the phone call on Christmas Eve 2018, informing him that Opal Tower needed to be evacuated. In this wide-ranging conversation, we also cover: how to... The post 194. The art of crisis management – with Daniel Holt appeared first on Your Strata Property.

#OpalTower #Construction #HeiseSays Icon has spent $26 million on the Opal Evacuation and repairs. https://youtu.be/Lp8xV39QakI My Kit Rodes Podcaster - https://amzn.to/2IfOEVV Logitech C920 HD Webcam - https://amzn.to/2Kh6UR5 Rode PSA1 Swivel Mount - https://amzn.to/2WI2DNl Rode WS2 Microphone Windshield - https://amzn.to/2K9edI1 Microsoft Surface Pro - https://amzn.to/2YFUHrO Stream Deck - https://amzn.to/364HDjO Buy HeiseSays Merch https://says.heise.com.au/shop/ Read More: Why Buildings Stand Up https://amzn.to/2stNb5O Why Buildings Fall Down Why Structures Fail https://amzn.to/2RqpREZ Great Streets https://amzn.to/2YsORy0 A Pattern Language https://amzn.to/2K7qA7B Donate and support my content Patreon - https://www.patreon.com/HeiseSays PayPal - https://www.paypal.me/fheise Libera Pay - https://liberapay.com/HeiseSays/donate Support (crypto) - https://says.heise.com.au/support/ Independent Reserve Referral Link https://www.independentreserve.com/invite/SSEFMM Amazon Australia Link https://amzn.to/2KHmtiv The Freedom Map Map of issues concerning freedom and political authoritarianism. https://says.heise.com.au/the-map/ The Construction Map Map of buildings with construction issues featured in episodes. https://says.heise.com.au/the-construction-map/ Social Media Telegram - https://t.me/HeiseSays Discord - https://discord.gg/uj9Y4sy Podcast - https://itunes.apple.com/au/podcast/heise-says/id1332588853?mt=2 Facebook - https://fb.me/Heisesays Minds - https://www.minds.com/heisesays Twitter - https://twitter.com Gab - https://gab.com/HeiseSays Heise Architecture Our Architectural Practice. http://www.heise.com.au/ Point Clouds Australia Our Point Cloud Scanning and Equipment Hire business. http://pca.heise.com.au/

Last year’s Opal Tower crisis and this year’s Mascot Towers event has heightened the spotlight on build quality. This will continue in 2020. Topic – 2020 property forecast Mentor – Doug Driscoll

Icon construction only allocated $1 million for defects in Opal Tower. An insufficient amount given that Icon has reportedly spent $24 million already.

Broken Buildings Expert, Dimitri Livas explores the recent evacuation of Mascot Towers due to structural issues and cracking support beams. How many more buildings will be evacuated? In the space of six months, two predominant towers in NSW have been evacuated by emergency services due to the safety of residents after structural issues. First it was the Opal Tower in December 2018, and now Mascot Towers has experienced movement and cracking in a major structural support beam that prompted engineers, building management and emergency services to evacuate the building pending further investigations. Why is this happening? Is it just happening in NSW? What is the cause of these building issues and how widespread is the problem? Is this just the tip of the iceberg? The builder seems to be the first one everyone points the finger at, but it’s a much more complex problem than that, involving engineers, architects, strata managers, owner corporations and government authorities. So, how do we fix the problem and focus on creating healthy buildings? Savil Group - Construction Remediation Company Website: https://www.savilgroup.com.au Dimitri Livas - Speaker and Media Website: https://www.dimitrilivas.com

Dimitri Livas discusses the current state of play at at Sydney's troubled Opal Tower? Can it be Fixed? What are the possible next steps in rectifying the defects in the design and construction of this 36 storey Broken Building? Savil Group - Construction Remediation Company Website: https://www.savilgroup.com.au Dimitri Livas - Speaker and Media Website: https://www.dimitrilivas.com

The Owners from Mascot Towers are facing the prospect of a lifelong repair bill.

Developers are admitting that demand for Apartments is waining as buyer become warier following recent defect issues in the media.

The New South Wales Parliamentary Inquiry into the Regulation of Building Standards, Building Quality and Building Disputes is underway, let's look at the Terms of Reference and the submission by the Royal Australian Institute of Architects.

The Opal Tower class action lawsuit has been delayed by 42 days due to the complexity of the class-action lawsuit. Let's look at the Judges concerns and the portions of the Home Building Act that would be relevant to this case.

Property Analyists are encouraging apartment owners to sell because of recent issues in the constuction sector. Simply scare mongering or sound advice?

Opal Towers' Insurance premiums have increased 20 time and agents are telling us that Buying off the Plan is still in demand!

The owner's of Opal Tower have launched a class-action lawsuit against the Sydney Olympic Park Authority (SOPA). This case will certainly be an interesting precedent, particularly if the government pursues cross-claims.

Let's look at the drawings for the Zetland Lofts and discuss some of the issues that could arise from the box gutter design.

Let's look inside the Zetland Lofts in order to get a better understanding of the issues facing the owners and occupants. Unfortunately, this isn't a simple problem.

Cracking has appeared in the basement of Clemton Park Village in Sydney. While the NSW Government is pretending that implement four reform will fix their industry, I would argue this is just another example of far deeper and systematic issues.

The Dilapidation Report of Mascot Towers prepared to protect the interests of the Peak Tower Developer has been released to the public.

Bayside Council has released all of its information concerning Mascot Towers and neighbouring Peak Towers.

Mascot Towers was built on the Botany Sands Aquifer which has been polluted due to years of industry and imposes restrictions on excavation.

Owners of Mascot Towers face bankruptcy because they might have to wait a year to access their apartments.

The media is reporting that the Mascot Towers is sinking on the northern and eastern elevations. Let's look at the neighbouring building to get a better understanding of the situation.

Comments have been left online critical of the Mascot Tower Strata committee claiming that previously reported cracking was not addressed.

Let's look at the Building Designers Association of Australia's response to Mascot Towers.

Let's look at Engineers Australia's response to the recent Mascot Towers failure. Am I the only one cynical that organisations who would benefit the most from progressional registration are calling for professional registration?

The contracts used to procure buildings can have a significant impact on the quality of the final outcome because it can change the relationships of the traditional police of construction.

Units at the troubled Mascot Towers have now crashed in price, with real estate agents recommending pulling properties from the market until the extent of repair work is determined.

Owners of units in Mascot Towers will liable for any repair work because the building is outside of its warranty period.

Mascot Towers in Sydney have been evacuated due to movement and large structural cracking. Another significant construction issues in a building just ten years old.

Opal Tower Residents are still waiting to access the homes, with over half of the buildings dwellings still uninhabitable since Christmas.

Town planner and certifier Adam Mainey moved to property investment after deciding that he didn't really "get" shares. Now with a property portfolio already built to support his retirement, low cost renovations that added a ton of value, and a thorough understanding of what makes for a well-built property, it is fair to say that Adam has found his investment tool of choice. In this episode of The Smart Property Investment Show, Adam joins host Phil Tarrant to unpack the role of a town planner and certifier, analyse "what went wrong" in the recent Opal Tower incident, and reveals what he looks for when adding a property to his portfolio. Adam will explain his investment plans going forward and discuss the properties in his growing portfolio. If you like this episode, show your support by rating us or leaving a review on iTunes (The Smart Property Investment Show) and by following Smart Property Investment on social media:Facebook, Twitter and LinkedIn. If you have any questions about what you heard today, any topics of interest you have in mind, or if you'd like to lend your voice to the show, email editor@smartpropertyinvestment.com.aufor more insights!

Today we look at the 169 apartments empty Apartments in Opal Tower.

A new plan to save us from a future Opal Tower.

Looking at advice about finding the perfect Apartment block.

Let's discuss their response.

I was intrigued this week by the announcement by the Federal Labor leadership that they plan to pour some of the money from their proposed “honesty tax” on banks into lawyers to help ordinary people get back what they’ve had chiselled out of them by unscrupulous money people. What a great idea. Make the baddies pay for people to help their victims. Now, how about a defects tax on developers to do just the same? OK, developers aren’t making the shed-loads of moolah that the banks are coining – the latter’s profits went UP the day after the Banking Royal Commission issued its damning report – but they are doing OK. And we are never going to get a Royal Commission into property development for the simple reason that neither side of politics is squeaky clean in that regard, and irrespective of how upright and honest they are now, no Labor or Liberal Coalition leader wants to lift that particular rock to see what’s still wriggling underneath. Also, in the week in which the Opal Tower report illustrated how a systemic failure of quality control – from inadequate design to poor construction – can lead to a building crumbling literally before your eyes, you realise that NSW’s defects bond is a droplet in a bucket when serious problems are discovered in a building. Now, as I argue in my Flat Chat column out later this week, the Opal apartment owners’ experience may be very different from the usual one. Given government support, developer concern for their public image and the whole of the state waiting to see how this pans out, you’d put your money on the defects being dealt with expediently and with minimal fuss. But for too many apartment buyers in NSW, the experience is more akin to the Elara Apartments scandal in Canberra, where where unit owners have been left with a $19 million defects bill, after they had tried to sue over defects but the builder went into voluntary administration. And just the other week, the Federal Court ruled that subsequent claims to the Master Builders Fidelity Fund, set up for situations just like that, were invalid as they had been lodged after the five-year deadline. A more typical experience here is that the unit owners belatedly discover there are defects (allegedly in 85 percent of buildings, according to a UNSW report), they rush to get a survey done, the defects cost way more than the two per cent defects bond, the developer and the builder argue over who’s to blame, then whoever loses goes into liquidation and the other one hires lawyers to prove that they aren’t responsible.  Or they go into liquidation too. So our new owners are left with a bill for the survey, for the lawyers and what’s left after the defects bond has been used up. Now, I admit that's a very cynical view and there are good developers who value their reputations and want to do the right thing by their customers.  They may even be in the majority - but there's enough of the other kind to cause a lot of heartache. By the way, there’s a theory that the less honest developers in NSW are factoring the defects bond into their budgets and cutting more corners than ever. The quality of the final product could be worse, rather than better, because they’re never going to get that money back anyway. Now, if that sounds like a rant, that’s because I’m in a ranting mood.  This week’s Flat Chat Wrap Podcast takes no prisoners as the defects disaster, flammable cladding and, of course, Airbnb come on to my radar. Enjoy. https://episodes.castos.com/flatchatpod/Flat-Chat-Wrap-14-rants-.mp3

JimmyT rants about Airbnb, defects (and the Opal Tower report) and cladding ... and explains why we'll never get a Royal Commission into the apartment building industry.

The fire earlier this month (February 2019) on the outside of the Neo200 building in Melbourne conveniently coincided with a meeting of state and federal government ministers at which it was announced that the highly dangerous product would be banned from our shores. Of course, this is way too late for the people who have bought apartments in buildings that are covered in the potentially deadly material. You might as well set fire to the stable door - the horse has bolted. Although they are approaching this in very different ways in different states, the end result for apartment owners like you or me, is that we have to identify the stuff then - unless we are very lucky - pay to have it removed. Now, there may be cases where the buildings are still under warranty and the developers haven't disappeared up their own flammable phoenixes, and then you just have to pay lawyers to persuade the developers to get it removed.  Good luck with that. Now, I can hear a chorus of voices saying: "Tough luck!  Nobody told you to go and live in apartments. In fact, we told you it was a bad idea.  So don't expect us, the taxpayers, to pay for your stupidity." Hmmm.  Imagine if we applied that to bushfires. "Hey, we didn't tell you to go and live in the middle of forests full of trees that nature has designed to burn ferociously.  So don't expect us to pay for the back-burning that might just prevent you from losing your home (or even worse) next bush-fire season." Of course, we don't say that because we believe in collective responsibility.  We'll contribute to your back-burning if you contribute to our freeways. So why doesn't that apply to flammable cladding?  The people who are responsible, if they get half a chance, are walking off whistling their "nothing to do with me" tunes. Politicians have overseen lax and laissez-faire controls on  builders and developers for decades.  And as for the aforementioned high-rise high rollers ... well, we are all reaping the dubious reward of allowing unscrupulous people to do unspeakable things in pursuit of profits.  In fact, it doesn't need to be all that blatantly corrupt.  Cut a few corners here and there and it's money in the bank. Meanwhile 85 percent of new blocks report defects and the average rectification bill is, according to experts, over 20 per cent of the cost of the building (so much for NSW's 2 per cent defects bond). So now we find ourselves in a phase of punish-the-victims policies. Whether or not we live in blocks covered with cladding, or crumbling like the Opal Tower, we deserve better. All of which I didn't say when I was invited on to Weekend Sunrise a couple of weeks ago to talk about cladding. Click in the pic below to watch the item. (Note to self - next time iron shirt.)   https://episodes.castos.com/flatchatpod/Weekend-Sunrise-JIMMYT-on-CLADDING.mp4

In this episode of the Smart Property Investment Show, host Phil Tarrant is joined by investor and buyer’s agent Meredith O’Reilly who shares her advice to those looking at investing for the first time, and gives her pick for the Sydney suburb with reasonable prices and the potential for a good return Meredith reveals where she is buying property at the moment and discusses how the current media hype surrounding the falling market is in fact having a positive impact on the property market for those looking to invest. In light of the Opal Tower incident, Meredith also discusses off-the-plan property purchases, and why she believes sub-dividing shares is a good opportunity to get a good return on your investment. If you like this episode, show your support by rating us or leaving a review on iTunes (The Smart Property Investment Show) and by following Smart Property Investment on social media: Facebook Twitter and LinkedIn. If you have any questions about what you heard today, any topics of interest you have in mind, or if you'd like to lend your voice to the show, email editor@smartpropertyinvestment.com.au for more insights!

Every so often, I get invited on to a radio or TV show to talk about apartments.  This week I've been on Breakfast on ABC 702 with Josh Zepps, (usually hosted by Robbie Buck and Wendy Harmer) and then on Friday I got up at 4am to go on ABC's early morning show with Rod Quinn (which will be featured in next week's podcast). That was a challenge (apart from being two cups of coffee under par)  because we had lots of callers from all over Australia. Next week, I will be on Triple-M in Adelaide to talk about Airbnb. Back to this podcast, I was on the ABC with Josh to discuss why residents of the Opal Tower had been told to move back into their apartments, whether or not they felt safe.  It's an emotive issue and we tend to forget that the driving principle behind why developers are in business is to make money, not necessarily house families. They were paying hotel accommodation for people who could have moved back home - so they pulled the plug. We also discussed the damage done to owners' investments that aren't covered by defects claims - the plummeting values of apartments that are no longer worth what some people have borrowed in mortgages. It would be nice at this point to say we moved on to lighter fare, but it doesn't get much darker than the legal battle to get defects fixed in Part Two of our Strata Disaster podcast. Sue Williams and I recall what happened when our owners corporation had freed itself from the dodgy developer's management and committee cronies, only to be led by so-called "experts" into a $6 million battle with attack-dog lawyers. And all the time, the strata committee was being undermined by disgruntled neighbours, overly secretive lawyers, liars and spies and then, finally, subjected to the most horrendous personal abuse.  Fifteen years on, we can laugh at the ridiculousness of it, but there are people in the building who still haven't uttered a word to each other since those days. Pour yourself a stiff drink and plug in to the podcast. https://episodes.castos.com/flatchatpod/Flat-Chat-wrap-10.mp3

The independent investigation into the cracked Opal Tower apartment block confirmed yesterday what most residents were all too aware of: the 36-storey building has significant damage. - Cuộc điều tra độc lập về vụ rạn nứt tại toà nhà Opal hôm qua xác nhận những gì mà hầu hết các cư dân đã hết sức quan ngại, đó là tòa chung cư 36 tầng thực sự có những thiệt hại đáng kể.

An overview of the Opal Tower case and what the chances are that it’s happening in Queensland right now.

1. Opal Tower is Australia's housing bubble collapsing under its own weight 2. The far side is not the dark side: China's moon landing is great for humanity Presented by Robert Barwick and Jeremy Beck Watch Sick Buildings - The Latest From Our Property Insider Edwin Almeida, an Interview by Martin North here: https://www.youtube.com/watch?v=A-fOz97vHtg&t=6s

In this episode of the Smart Property Investment Show, host Russell Stephenson is joined by Katarina Taurian, who shares how her investment journey has been since her first property purchase in 2016. In light of the recent coverage surrounding the structural concerns of the Opal Tower in Sydney, Katarina shares why structural integrity was top of her list when purchasing her first property, even revealing that she would take a tool kit with her to property inspections. Katrina explains what build quality means to her, the surprising belief that she regularly encountered when dealing with conveyancers and reveals where she sought the information that helped her to make an educated property purchase. She also reveals her plans for her portfolio going forward, why even as a property owner she is glad that property prices are softening, and why she believes pricing rental in your investments shouldn't necessarily meet what the market value suggests. If you like this episode, show your support by rating us or leaving a review on iTunes (The Smart Property Investment Show) and by following Smart Property Investment on social media: Facebook Twitter and LinkedIn. If you have any questions about what you heard today, any topics of interest you have in mind, or if you'd like to lend your voice to the show, email editor@smartpropertyinvestment.com.au for more insights!

JimmyT and Sue Williams ask the questions everyone else is avoiding, and provide the answers people need to hear, about the Opal Tower in Sydney and the whole defects disaster in high-rise apartment blocks in Australia.____________________________________________________Flat Chat is all about apartment living, especially in Australia.Find us on Facebook and Twitter and the Flat Chat website.Send comments and questions to mail@flatchat.com.au.Register to ask and answer questions about apartment living anonymously on the website.Recorded by Jimmy Thomson & Sue Williams; Transcribed by Otter.ai; Transcription tidied up and sensified by Raphie.Find out more about Sue Williams and Jimmy Thomson on their websites.

JimmyT and Sue Williams ask the questions everyone else is avoiding, and provide the answers people need to hear, about the Opal Tower in Sydney and the whole defects disaster in high-rise apartment blocks in Australia.

If you think you've heard everything there is to know about the cracks crisis at the Opal Tower in Sydney, and the whole defects disaster in NSW and Australia as a whole, think again. So far, media coverage has barely scratched the surface. Meanwhile, politicians - in full election mode - are playing the blame game: it's the certifiers, it's the Labor party, all those years ago, it's the Liberals who've done nothing since. But as for looking at the real problems, which are systemic and endemic, don't hold your breath. JimmyT and Sue Williams explore the cracks and crevices of the whole issue and come up with solutions that are so sensible, they have zero chance of ever being adopted by politicians. You can hear it all on this week's podcast here: https://episodes.castos.com/flatchatpod/Flat-Chat-Wrap-8.mp3  

Kristen Tsiamis with the top stories for Friday December 28 See acast.com/privacy for privacy and opt-out information.

Episode for 27 December, 2018 - We talk about the horrific trading seen before Christmas, and the Opal Tower saga from Monday. --- This episode is sponsored by · Anchor: The easiest way to make a podcast. https://anchor.fm/app Support this podcast: https://anchor.fm/australianmb/support