The Hidden Costs of Tropical Property Investments: Paradise Comes with a Price

There’s a lot to think about when purchasing an investment property, and location is often at the top of the list. This will crucially affect rentability, income and ultimately, sale price. Investors also need to factor in its knock-on effect on maintenance costs. And nowhere is that more apparent than in the Tropics.

The Wet Tropics World Heritage Area accounts for the land between Townsville and Cooktown on the north-east coast of Queensland, covering an area of more than 8000km. Within this, FNQ holiday hotspots such as Mission Beach, Cairns, Palm Cove and Port Douglas have become sought-after investment addresses in the post-pandemic era. Ah, the Aussie Tropics! Year- round sunshine, a holiday lifestyle and (compared to our more southerly cities) affordability. So far, so idyllic.

But what else do you need to know before you put down that deposit? Here are some of the ongoing costs involved in investing in a tropical dream.

Growing pains

Most landlords in the Tropics include regular garden (and irrigation) maintenance as part of the monthly rent. Mitch Sullivan, horticulturalist with Papillon Landscapes and Construction, works on properties in Cairns, the Daintree and everywhere in between.

“Anyone who’s been around long enough, knows how hard it can be,” he says. “People from down south often aren’t aware of the rate at which everything grows. If you don’t have the knowledge, or the time, it can get away from you really quickly.”

And if you have paying guests, you need to keep your corner of paradise in tip-top shape.

“Occasionally you may get a tenant who says they want to look after the gardens but that usually doesn’t go too well,” he says.

Landscaping companies charge from around $120 for a fortnightly service, depending on the size and scope of your block. It’s always good to get a quote upfront.

Keep it covered

Extreme weather patterns all over Australia in the past few years have made it clear that adequate insurance is a no-brainer. And when you’re buying property in a region that’s at risk of cyclones for six months of the year, it’s especially pertinent. According to financial comparison site Canstar’s calculation of average annual home and contents insurance premiums across Australia in 2021, North Queensland’s premium more than doubles the Queensland average and approximately triples the other states and territories (except NT). While the risks are minimised by the fact that the properties are built to code — ie to withstand a cyclone — it isn’t a foolproof system, and the wise investors will have their properties checked prior to cyclone season for signs of deterioration.

How’s the humidity?

With winter lows at around 25 degrees and hot, humid conditions in the wet season, aircon is a must. Jason and Anne Moore (pictured below) are resident managers at Freestyle Resort in Port Douglas, where air conditioning is a responsibility of the individual apartment owner/investor.

“Aircon units have a relatively short shelf life here because they’re almost constantly in use,” says Jason. “They often don’t outlast the warranty period so it’s something else for buyers to factor in.”

Humidity is also responsible for mould, which can be a major issue in the tropics, especially if a property is left vacant for periods of time during the wet season.

“If you leave a place locked up for eight weeks you may well come back to find it’s turned green,” says Jason. “Once it’s in, mould is not easy to get rid of. Removal is an expensive exercise.”

In the swim

Not every property has a pool but it’s one of the most popular add-ons for a rental in the Tropics, so let’s assume your investment has one. As with gardening, pool maintenance is generally built into the rent. Holiday makers expect a pristine pool, and you probably don’t want to trust long-term tenants to maintain the chlorine levels and keep the filter running.

Daryl Taylor owns and runs Happy Pools, servicing pools from the Northern Beaches of Cairns northwards up the coast.

“Most landlords have a pool maintenance service,” he says. “It makes sense up here because people swim pretty much all year round, so you need it to be operating perfectly. In the wet season, we get an enormous amount of rain, and this dilutes the chemicals and washes the garden into the pool.”

Happy Pools offers different tiers of service for rentals from monthly and fortnightly regulars up to several times a week.

“Holiday properties need more attention because guests are in the pool a lot — people are leaving beer bottles around and kids are weeing in there — so we need to service it between each booking.”

Expect to pay around $45 (plus chemicals) for a fortnightly service, depending on your pool.

Amazon Earnings Top Estimates but the Cloud Business Is Just OK

Amazon shares gained ground in late trading Thursday after the company posted better-than-expected financial results for the September quarter.

Amazon (ticker: AMZN) said third-quarter sales were $143.1 billion, up 13% from a year ago, accelerating from 11% growth in the June quarter, and above the high end of the company’s guidance range.

Profits were 94 cents a share, well above the consensus of 58 cents. Net income of $9.9 billion included a $1.1 billion pretax noncash gain on the company’s stake in Rivian Automotive (RIVN).

Amazon Web Services revenue was $23.1 billion, up 12.3% from a year ago, which was about in line with Wall Street estimates, and consistent with the 12.2% increase one quarter earlier.

Amazon CFO Brian Olsavsky said in a call with reporters that the company increased AWS revenue by about $900 million versus three months earlier. He also noted that customers continue to focus on spending optimisation, but that the process is slowing down. He declined to say whether the growth rate for AWS has now bottomed.

Amazon shares were trading around breakeven heading into the company’s conference call late Thursday, but they moved higher after CEO Andy Jassy said on the call that AWS booked some large contracts late in the third quarter. They won’t start showing up in results until the fourth quarter, he said.

The stock was up 4.6% in late trading as of 6:15 p.m.

Heading into the earnings report, AWS growth had decelerated for six straight quarters, falling to 12.2% in the June quarter, from 39.5% in the last quarter of 2021. The slowing growth reflects a recent focus from cloud customers on “optimising” their cloud spending, figuring out how to get more value from their growing cloud outlays.

This week’s results from cloud rivals Alphabet (GOOGL) and Microsoft (MSFT) both noted that the optimization trend is continuing. The Google Cloud business posted disappointing results in the quarter, while Microsoft topped expectations. Amazon largely split the difference. Amazon bulls have expected AWS growth to begin accelerating soon as corporate spending budgets loosen and a focus on AI workloads expands, but there was no big jump in the latest quarter.

Operating income was $11.2 billion, well above the company’s forecast range of $5.5 billion to $8.5 billion. That incudes an operating profit in North America of $4.3 billion, reversing a loss of $400 million in the year ago quarter. AWS had an operating profit of $7 billion, up from $5.4 billion in the year-earlier period.

“We had a strong third quarter as our cost to serve and speed of delivery in our stores business took another step forward, our AWS growth continued to stabilise, our advertising revenue grew robustly, and overall operating income and free cash flow rose significantly,” Amazon CEO Andy Jassy in a press release.

Shares of Amazon were up 3.4% in late trading following the report.

Online store sales were $57.3 billion, up 7%, improving from 4% growth in the June quarter, while third-party services revenue was $343 billion, up 20%, versus 18% growth in the June quarter.

Amazon said subscription services revenue—mostly Amazon Prime—was $10.2 billion, up 14%. Sales at physical stores were $5 billion, up 6%.

Advertising revenue jumped 26% in the quarter, from 22% in the June quarter, to $12.1 billion. Olsavsky said the company isn’t seeing an impact from geopolitics. That’s a contrast from Meta, which noted on its earnings call Wednesday that the company was seeing some slowdown in spending tied to the outbreak of violence in the Middle East.

Olsavsky noted that ad growth has outpaced overall company growth, driven by improved targeting and higher click-through rates.

For the fourth quarter, Amazon sees sales of between $160 billion and $167 billion, with operating income ranging from $7 billion to $11 billion. Wall Street estimates for the quarter have called for revenue of $167.2 billion, up 12%, with operating income of $8.7 billion.

Amazon shares were down 1.5% in Thursday’s regular session.

Best-Performing Super Funds Over 10 Years Revealed

The top-performing balanced super fund in Australia has delivered average annual returns of almost 9% over the past decade, according to research. Consumer comparison company Finder has published a list of the top-performing super funds over the 10 years to 30 June 2023, with Hostplus revealed as the No. 1 investment for returns.

Chant West provided the data, canvassing only balanced investment options among super funds. Balanced investment options are popular because they typically spread an investor’s superannuation monies across several asset classes, including shares, infrastructure, property, bonds and cash.

Here are the 5 top-performing super funds over the past decade

Hostplus Balanced (average 8.9% p.a.)

Hostplus’s balanced portfolio invests primarily in high growth assets with high stock diversification, according to the website. The minimum investment timeframe is more than five years and the target return is inflation (CPI) plus 4% p.a. over 20 years. The total investment fee is estimated at 0.98% p.a.

AustralianSuper Balanced (average 8.6% p.a)

This super fund invests in a wide range of assets, including shares, private equity, infrastructure, property, fixed interest, credit and cash, according to the website. The minimum investment timeframe is 10 years and the target return is CPI plus a minimum 4% p.a. over the medium to long term. In an example of fees on a $50,000 portfolio, the fee totalled 0.76% p.a.

Australian Retirement Trust (average 8.4% p.a.)

This fund has adopted the investment strategy of the Sunsuper Balanced investment option, according to the website. It invests in a wide variety of asset classes with a large allocation to Australian and international shares. The minimum investment timeframe is five years and the target return is CPI plus 3.5% p.a. over 10 years. The total investment fee is estimated at 0.8% p.a.

UniSuper Balanced (average 8.4% p.a.)

UniSuper balanced invests in a diversified portfolio of mainly higher-risk assets such as Australian and international shares, property, infrastructure and private equity, with some fixed interest and cash investments, according to the website. The minimum investment timeframe is 10 years and the target return is CPI plus 3% p.a. over 10 years. The total investment fee is estimated at 0.51% p.a.

Cbus Growth (MySuper) (average 8.3% p.a.)

The Cbus MySuper fund invests in growth assets including Australian shares and global shares, private equity, infrastructure, property, global credit, fixed interest and cash. The target return is CPI plus 3.5% p.a. over 10 years. The total investment fee is estimated at 0.5% p.a.

Source: Chant West, average annual returns among balanced super funds, 10 years to 30 June 2023  

If we compare these funds’ performance to other assets owned by Australian investors, we find that over this same 10-year period, the median house price across Australia’s combined capital cities rose by about 70%. In other words, your home’s value grew by an average of 7% per year, according to CoreLogic data. If you owned an investment property during this time period, then rental returns would be added on top.

Compared to shares, the top super funds above outperformed the ASX 200. Using a popular index-based exchange-traded fund (ETF) as our yardstick, we see that the iShares Core S&P/ASX 200 ETF (ASX: IOZ) has delivered an average annual return of 7.5% (combined capital growth and dividends) since inception in 2010.

If you want to switch super funds, Finder provides the following advice and a four-step process.

Step 1: Choose a new super fund

Look for a combination of low annual fees, high long-term returns (10 year performance) and an investment strategy you understand and agree with.

Step 2: Join the new super fund

Download and complete the new membership form from the fund’s website.

Step 3: Transfer your existing super

Download and complete a second form to transfer your existing super to the new fund.

Step 4: Tell your employer

Download and complete a third form from your new fund’s website called the ‘employee super choice form’ or similar.

From the country to the coast

Mollymook is a small town cooking up a huge reputation. Although its permanent population sits at about 3,500, thousands more descend on the coastal patch and surrounding villages each year for a slice of its laidback lifestyle and five star culinary offerings.

Like its beachside peers across the country, Mollymook on NSW’s South Coast turned heads during the pandemic years. City slickers narrowed in on the space, serenity and affordability of the region transforming the sleepy holiday town into a desirable destination among more permanent buyers.

A return to normal

In 2020, the median house prices in Mollymook Beach and Mollymook were $785,000 and $750,000 respectively.

By the time the property cycle hit its peak in 2021 those figures

had almost doubled. Domain data reported that Mollymook Beach clocked up the highest house price growth of any suburb in Australia over the five years to July 2022, registering an incredible 106 per cent price hike.

Today, however, the extraordinary flight to the country has eased with

interest rate rises pouring water on boiling house prices.

While down 2.4 percent from peak prices, Mollymook’s house median is still $1.22 million while Mollymook Beach sits at $1.05 million, down a significant 21.3 per cent over the same period according to REA Group data.

Andrea Tucker, principal of McGrath Estate Agents Mollymook said the region has travelled through a price adjustment and is coming out the other side.

“We’re still ahead if you round those figures up,” she says. We’re really trading back in a normal market after quite a bullish time.

“There’s a little caution from buyers now, but they’re still quite active in the market. They’re
just sitting back waiting for opportunities, particularly if they’re looking for investment properties.”

Tucker adds that when it comes to home prices, Mollymook has several sweet spots.

“If you can pick up anything in Mollymook under $1 million, you’ll have people all over it,” she says. “Then you go up in gradients but once it gets over $2 million the buyer pool starts to thin out.”

Local agents place the luxury market in excess of $3 million, however in the heady days of 2021, a beachfront house in Mollymook sold for $10 million via online auction. Just five years prior, the same four-bedroom house at 15 Shipton Crescent was bought for $2.26 million.

Dishing up the good life

Motel Molly, Mollymook – Review | The Australian
Once known as the Surfbeach Motel, Motel Molly has been restored and updated by interior architects Richards Stanisch with an eye on our nostalgia for the classic beach holiday.

In addition to its popular surf beach, Mollymook has a large natural rock pool known as the Bogey Hole and Mollymook Golf Club maintains two prized golf courses; an 18-hole championship course known as the Hilltop and a smaller 9-hole beachside course.

“One of the beautiful things about living here is you’re less than 10 minutes from the beach or the countryside. We’re really blessed,” Tucker says. “Not to mention we’re quite spoilt for fantastic restaurants.”

In 2009, English celebrity chef Rick Stein put Mollymook on the national food map when he opened his first Australian restaurant, Rick Stein at Bannisters. Other high-profile restaurants include the Asian-inspired Gwylo and The Beachside Bistro with nearby fine dining spots such as Cupitts Estate and Small Town are also attracting the tourist trade.

With the food scene flourishing, the accommodation landscape is developing in Mollymook too. Earlier this year, Motel Molly became the latest in a string of revived retro motels across the country. Following the multi- million-dollar refurbishment of a former beachside motel by Knox Developments and Richards Stanisich — also responsible for refitting historic Sydney joints Hotel Rose Bay as well as The Woollahra Hotel.

Sensing its saleability, developers are also waking up to Mollymook. Peniche, a four-storey luxury development of eight three- bedroom apartments, was given the green light by Shoalhaven Council in early 2023. The
project at 1 Buchan Street is currently being marketed through McGrath Mollymook and is set for completion in late 2024.

Its perks will include a shared pool, views to the ocean as well as Mollymook golf course with prices starting at $1.75 million.

Holiday home trends

Local buyer’s agent, Matt Knight of Precium, says while investors making the most of the tourism trade had stepped back after a flurry of activity post-COVID, there still is a holiday home market in Mollymook.

“While we’ve seen a softening in tourist numbers, they’re still very large tourist numbers. When international borders were shut there was a captive audience of tourists with nowhere to go except for where they could drive to. As a result, we had a very high hotel and holiday home occupancy rates and a subsequent massive spike in prices,” he said.

Airdna, which analyses the performance of short-term rental properties listed on Stayz and Airbnb, revealed that by December 2022, demand for Mollymook Beach holiday rentals was down 27 percent for January compared to
the previous summer. As Australians began venturing abroad once again, owners invested in the short term rental market started rethinking their strategies according to Knight.

“The Airbnb occupancy rate has dropped a little and some of those properties have come back to a more normal holiday vacancy rate,” he says. “A few people may have decided in response to pull their property off the holiday let market and put in a permanent tenant, particularly in the light of all the interest rate rises. So that’s caused a bit of an easing in the long term rental market.”

What buyers want

House hunters turning to Mollymook cover a wide cross section, Tucker explains, but the hottest properties are four-bedroom houses with retirees, investors and families all in the mix.

“I get really excited about the young professionals still moving here,” Tucker says. “We had a lot come through COVID, and although some have had their corporate companies claw them back into the office, they’re still coming.

“They’ve had their eyes opened. They realise they can take up surfing, there are smaller class sizes for their kids, they’re not spending so much time in traffic.

“There’s still a lot of enticement for young professionals to move here.” Knight agrees the stream of buyers is a mixed bag from expats hoping to return Down Under, to retirees and digital nomads.

“There’s still a small number of people leaving the cities because they can work from home. I’d say the volume has gone down, but it’s still there and people are making real estate choices based on that,” he says, adding that Mollymook and its surrounds has something not all quiet coastal towns can offer.

“It’s really become a place where a sophisticated buyer, who wants the beach but also the mod cons of life, can have it all. Whereas some of the more remote beaches are beautiful, but they just have a little general store.”

Ultimately, Mollymook’s “critical mass” offers something for almost everyone according to Knight.

“I left Sydney more than 15 years ago and raised four children down here. It’s actually a viable area with schooling options and an economy that’s holding its own. It’s not just a one-club town for retirees, it certainly appeals to a wider age demographic and a wider set of expectations.”

Crypto Lender Genesis Prepares to Liquidate Without Deal With Parent Company

Crypto lender Genesis Global is pursuing a chapter 11 liquidation plan that abandons a previous settlement proposal to restructure the $1.7 billion in loans it extended to its parent company Digital Currency Group.

Genesis filed court papers Wednesday for a plan to exit from chapter 11 without a resolution of its claims against DCG, the crypto conglomerate founded by finance veteran Barry Silbert. Genesis is now preparing to liquidate its assets without the settlement proposal reached in August that intended to deliver estimated recoveries of between 70% to 90% for Genesis customers, including users of crypto exchange Gemini Trust’s Earn program.

The settlement proposal didn’t get the support of key stakeholders, notably Gemini and its founders, the Winklevoss brothers, and the parties had been in continuing negotiations. Ultimately, Genesis was unable to reach an agreement with DCG on final debt terms, Genesis said in filings with the U.S. Bankruptcy Court in New York.

And last week, New York Attorney General Letitia James filed a lawsuit against Gemini Trust, Genesis and DCG for allegedly defrauding more than 230,000 investors of more than $1 billion. In light of the lawsuit, Genesis and the official committee representing its customers determined that a settlement with DCG isn’t a viable route, Genesis said in the filings.

A Genesis spokesperson said the lawsuit’s claims against the company have no basis, and it has been cooperating with all authorities.

A DCG spokesperson last week said the firm was blindsided by the lawsuit because it cooperated with the attorney general’s investigation. Gemini last week said it disagreed with being named in the lawsuit because the company and its Earn program investors are victims of fraud.

The attorney general’s lawsuit alleges that Gemini misled investors in the Earn program by failing to disclose its risks despite knowing that Genesis’s cryptocurrency loans were undercollateralized and heavily concentrated.

Under the new plan, Genesis customers can expect estimated recoveries of between 61% to 77%, pending court approval. Genesis filed for bankruptcy in January in the wake of the collapse of crypto exchange FTX.

The customers’ estimated recoveries under the new plan is smaller compared with a settlement with DCG that would have delivered more value upfront. Now, customers would have to wait for the outcome of litigation against DCG seeking to collect on its outstanding loans from Genesis.

A DCG spokesperson said in an email that the company remains committed to reaching a fair resolution for all parties, and that a resolution through litigation would result in far lesser recoveries for creditors. The spokesperson also said the company is “fully prepared to defend and win.”

The prior settlement was meant to restructure DCG’s debts to Genesis, including about $630 million in a past-due unsecured loan, and a $1.1 billion unsecured promissory note due in 2032.

Australia has the world’s highest rate of mortgage pain

Homeowners in Australia allocate a higher share of their income to mortgage repayments than any other developed nation, according to the International Monetary Fund (IMF). In its Global Financial Stability Report released this month, the IMF says Australian households allocated 15% of income to home loan repayments in December 2022, the highest level among all advanced economies.

Although official interest rates in Australia are slightly lower than other developed countries, we have the second highest level of household debt in the world – primarily due to high house prices – and 75% of our home loans are on variable rates. This makes Australia different to many other advanced countries where longer fixed-term home loan arrangements are the norm.

The Reserve Bank of Australia (RBA) says Australians are keeping up with home loan repayments but are cutting spending in other areas to cope with higher interest rates and inflation. In a report released this month, the RBA said some homeowners were taking on extra work, or drawing down on savings buffers, to cope with the higher costs of living. “Many households continue to face a squeeze on their budgets as high inflation and the increase in interest rates over the past 18 months have reduced available income after essential expenses and housing costs. Consistent with this, consumer sentiment remains near historically low levels, particularly for owner-occupier mortgagors,” the RBA said.

Home loan repayments for most borrowers have increased by between 30 percent to 50 percent since the RBA began hiking interest rates in May 2022. “Borrowers with high debt relative to their income – including some new mortgagors and first home buyers – have been particularly affected as their scheduled loan payments relative to income have increased by a greater amount than those of other borrowers,” the RBA said.

However, very few Australians have fallen behind on their loan repayments or sought temporary loan modifications from their lenders. “In the event that more borrowers became unable to service their loans, only a very small number would be in negative equity on their mortgage. As a result, losses to lenders are expected to remain low and manageable.”

The IMF noted that supply constraints have contributed to house prices remaining above pre-pandemic levels in many countries, thereby “complicating central bank efforts to bring inflation back to target”. This is certainly the case in Australia, with the latest inflation data released by the Australian Bureau of Statistics yesterday showing rents and new housing purchases, along with petrol prices, were the biggest contributors to the 1.2% rise in inflation over the September quarter.

CoreLogic Research Director Tim Lawless draws a direct correlation between the surprisingly strong rebound in home values across most markets in 2023 with the low number of homes for sale. The latest CoreLogic data shows that during the September quarter, home values grew most in Adelaide at 4.3%, Brisbane at 3.9% and Perth at 3.6%. Mr Lawless said: “The three capitals recording the highest capital gain each have advertised supply levels that are around 40% below their previous five-year average. Advertised supply levels across Hobart, where values are still trending lower, have been holding at above-average levels since June last year and were almost 40% above its five-year average.”

Most experts say the rate hiking cycle in Australia is coming to an end as inflation continues to trend down. Demand in the property market appears set to remain strong, with the usual seasonal increase in the number of homes for sale in Spring failing to put any meaningful brake on price growth. A high rate of migration over the next five years is likely to exacerbate demand, while new housing starts remain suppressed due to high construction costs and labour shortages.

 

Tips from RateCity to manage your mortgage

Ask your lender for a lower rate:

If you have a good credit score and always make timely repayments, your lender may not want to lose your business and might offer you an interest rate discount or perhaps waive some fees.

Refinance to reduce your interest:

If you’ve managed to build up some equity in your property, you may be in a position to refinance your home loan with another lender on a lower interest rate.

Make extra repayments to lower servicing costs:

By making extra home loan repayments on top of your obligations, you may be able to shrink your home loan principal and therefore reduce the interest charged on your mortgage.

China Increases Bond Issuance to Help Its Economy

China ramped up efforts to stimulate its beleaguered economy, issuing additional sovereign bonds and raising its budget-deficit target, the first time it revised its budget outside the regular legislative session in more than a decade.

The country’s top legislative body approved on Tuesday a plan to raise 1 trillion yuan, equivalent to around $137 billion, in additional sovereign debt, half for use before the end of this year and half for next year, according to the official Xinhua News Agency. Policy makers said the bond issuance was intended for infrastructure projects in the wake of severe flooding and other natural disasters, Xinhua reported.

The latest stimulus, which follows a flurry of piecemeal measures such as interest-rate cuts and the lowering of mortgage costs for home buyers, signals that Beijing continues to worry about the weakness of the economic rebound it had counted on after doing away with all pandemic restrictions.

Part of the problem is a mounting debt burden for local governments in more areas of the country and a real-estate crisis that shows little sign of abating. Beijing has so far avoided offering support to households to help the economy transition into one more driven by consumption, in large part because of leader Xi Jinping’s focus on ideology and reluctance to resort to handouts to consumers.

While many economists puzzled over the timing of the announcement as growth in recent weeks has appeared to stabilize, they viewed the new debt issuance as incremental in nature and said it wouldn’t be enough to reverse longstanding headwinds for the economy such as a lack of demand from businesses and consumers.

The 1 trillion yuan of sovereign bonds make up less than 1% of China’s gross domestic product. By comparison, the stimulus China launched in the 2008 global financial crisis accounted for more than 12% of its GDP at the time.

“It’s certainly not a game changer,” said Larry Hu, chief China economist at Macquarie Group. “But it confirms that the overall policy stance stays supportive given the recovery is still fragile.”

Some economists say the stimulus bill sent an unusual signal that the central government is willing to shoulder responsibility in funding infrastructure projects, after leaving the task to local governments for much of the past few decades.

The Wall Street Journal reported in June that policy makers weighed issuing around 1 trillion yuan in special treasury bonds to help indebted local governments and prop up business confidence. The policy proposal didn’t get approved at the time by Xi, who has centralized decision-making. In the top leader’s view, austerity is preferred over stimulus, according to people close to Beijing’s policy-making process.

But the heavy flooding this summer displaced millions of people and further strained finances in northeast China, especially the province of Hebei that neighbors Beijing. Public anger flared up following the losses caused by the flood.

The decision to help the disaster-struck regions was made at a high-level meeting presided over by Xi in August, according to Tuesday’s Xinhua article.

Much of the new debt raised will be used to help with reconstruction after recent flooding, improve urban drainage and help fend off other natural disasters, according to the plan that was approved by the standing committee of the National People’s Congress this week, Xinhua said.

As a result, China’s official fiscal deficit, which doesn’t count special bonds issued by local governments, will rise to 3.8% of GDP, up from the 3% ceiling set by the government in March.

While the fresh stimulus should help China maintain 10% growth in infrastructure investments for the remainder of the year, according to Hu from Macquarie Group, it falls short of the type of stimulus that economists say China desperately needs: direct or indirect transfer of wealth to households to boost consumption.

Chinese officials last week reported a stronger-than-expected 4.9% on-year growth in the third quarter, a result that will likely ensure China will hit around 5% growth this year as desired, dimming the prospect for Beijing to unleash more relief measures urgently, economists said.

China last changed its budget outside the legislative session in 2008, when officials said they planned to spend 1 trillion yuan in funds raised through local government funding, bank loans, donations from residents and other channels to rebuild areas devastated by the Sichuan earthquake. Later that year, Beijing announced a stimulus package it billed as totaling $586 billion to bolster domestic demand and help avert a global recession.

“It is rare for the central government’s fiscal plans to be revised outside the usual budget cycle, so this move signals clear concern about near-term growth,” economists from Capital Economics said in a note to clients.

The funding gap for local officials has been exacerbated by the bursting property bubble, since local governments long have counted on land sales as a source of revenue, said Wei Yao, chief Asia economist at Société Générale.

“At minimum, Beijing recognized that local governments face structural fiscal constraints,” she said. “That’s a pretty big deal.”

From ‘Wild West’ to Gold Standard: How NSW’s Building Commissioner Revitalised a $24 Billion Industry

There was a time not so long ago that the NSW building industry was referred to as the Wild West. One in 10 new residential apartment blocks in NSW had serious defects and there was no way to tell the good developers from the bad, as buyers crossed their fingers and hoped for the best when choosing a new apartment. As NSW Building Commissioner David Chandler joked, people buying new apartments had less consumer protection than someone buying a toaster or washing machine.

Add to that the scenes that played out on the nightly news of the thousands of residents evacuated from their Sydney Olympic Park apartment block on Christmas Eve 2018 as it threatened to collapse, followed by the 130 residents given hours to flee their Mascot apartment months later.

Into this scenario stepped the first ever NSW Building Commissioner, David Chandler. In just four short years, he has managed to bring a new transparency and confidence to the $24 billion industry. As one industry expert put it, “he managed to turn the Titanic around” not only because of the positive changes he brought to the industry, but the speed with which he did it.

“I remember back in the day the barbecue conversation was ‘You wouldn’t buy an apartment built in the last 10 years’,” says Urban Development Institute of Australia NSW CEO, Steve Mann.

“That was probably not right but there were enough problems for that to be a reasonable conclusion for consumers. We lost the confidence of consumers and no industry can afford to do that.

“So, although that was just true of the fringes (of the industry), we had to hone in on those fringes and reign it in.

“And that required very strong leadership.”

It is almost universally accepted in the building industry that one of the most positive changes in recent years is the introduction of the independent Construction Industry Rating Tool (iCIRT). It allows consumers buying a new or off-the-plan apartment in NSW to check the credentials of the company delivering the work.

So far, more than 200 companies have been rated through an independent and rigorous process, which experts claim is giving consumers the power to choose wisely, for the first time ever, who builds their home.

“Consumers are now asking for iCIRT ratings when visiting display units,” says Karen Stiles, director of the Owners Corporation Network of Australia. “And savvy real
estate agents are now focused on marketing rated developments.”

Fabrizo Perilli, the NSW president of the Property Council of Australia, calls iCIRT a “catalyst for change” in the multi-residential property industry.

“We are yet to see consumer confidence and the purchasing of apartments return to pre-COVID levels, however we anticipate this to improve as more and more developers and builders adopt the iCIRT rating,” he says.

“In the current market, trust, transparency and certainty are paramount for buyers and investors.” Perilli adds it’s also an effective way for developers and builders to differentiate themselves from their peers when communicating to purchasers who are rightly seeking an additional layer of certainty and peace of mind.

NSW chapter president of the Australian Institute of Architects, Adam Haddow, says Chandler’s cleaning up of the industry benefits not only consumers, but all elements involved in the building process.

“From an architect’s point of view, the checks and balances that Chandler has been able to put in has reigned in some of the challenges we felt with the construction of apartments,” the director of architecture firm SJB says. “Before Chandler came in, a lot of things like materials could be swapped out during the construction process and we had little control.

“He brought in more constraints over what can be changed, so you just can’t swap brickwork for aluminium, for example. Most new apartments in NSW are sold off the

“plan and consumers commit to buying an apartment on the info provided during the marketing phase. Now there’s more consumer confidence that they will get the product they committed to.”

While Chandler’s four-year role was due to expire in August, the Minns Government has encouraged him to stay on until the new Building Commission is established by the end of 2023.

The Building Commission was a Minns election promise to ensure quality building and an increase of supply to stem the ongoing housing crisis that has dominated public debate in recent months.

Despite the positive changes, Mann says the apartment sector is “in turmoil” in terms of supply. At its peak in 2018/19 new apartment builds represented almost half of all new housing stock, delivering around $33,000 apartments a year. Mann says that number is down to around 10,000, highlighting a crisis in housing shortage.

“We have a whole lot of economic challenges,” he says.

“There has been layer upon layer of challenges, through the COVID years, the financing of these big projects and construction costs have become more difficult.

“But with the deep affordability challenge we’ve got, apartments must be the big future, it has to be.”

President of the Strata Community Association of NSW, Stephen Brell, agrees.

“The government has predicted NSW needs 30,000 strata lots per year just to keep pace with current demand and given that we are falling behind, that is a challenge for the government and for the planners,” Brell says.

“With affordability, in Sydney in particular, being very expensive the Minns Government has a focus on medium-density living, particularly around the major transport hubs of Sydney. As Sydney is bounded by national parks to the north and south, mountains to the west and the ocean to the east, the only way is to go up.”

Brell adds the future of the apartment sector in NSW looks bright because Chandler is not only looking to improve the quality of new builds, but also to maintain the existing stock.

“By 2030, 60 percent of strata schemes will be more than 30 years old so we need to focus attention on existing buildings, of properly maintaining them,” Brell says.

“We have to make the industry resilient going into the future.”

How an Academic Uncovered One of the Biggest Museum Heists of All Time

ITTAI GRADEL, an academic–turned–gem dealer in Denmark, was trawling eBay a decade ago when he thought he had stumbled across a gold mine.

On his screen, Gradel saw a seller called Sultan1966 advertising a glass gem from the 19th century. Gradel immediately recognized it as something much more valuable: an agate Roman Medusa cameo from the second century, featuring the mythical Gorgon with snakes as hair. He snapped it up for £15 plus postage, then turned around and sold it to a collector for a couple of thousand pounds.

In the following years, Sultan1966 kept unearthing incredible finds at rock-bottom prices. Gradel bought a ring for £150, which he assumed was a copy of one from the Ptolemaic kingdom, an ancient Greco-Egyptian empire. But when he received the item and verified it was an original from over 2,000 years ago, Gradel told Sultan1966 he had mispriced his ring and sent him an extra £500. “It was ridiculous,” he remembers thinking.

Gradel inquired as to how the seller, an Englishman whose name was listed as Paul Higgins, had come across these items. Sultan1966 said he had acquired them from his grandfather, who owned a junk shop in York, in northern England, and died in 1953. Gradel checked the death records and found that such a man with the matching name did indeed die, but in 1952. The ludicrously low prices and oddly credible backstory left Gradel comfortable that he had encountered every dealer’s dream seller. “He was clueless,” recalls Gradel.

Then, in 2016, Sultan1966 posted a piece on eBay by mistake. It showed a fragment of a sardonyx cameo dating from Roman times engraved with the head and shoulder of a girl stooping to her right. Intrigued, Gradel screenshotted the item. Sultan1966 quickly removed it from the website and said that it actually belonged to his sister, who didn’t want to sell it.

Gradel thought not much more about it. But in 2020, he came across an image on the British Museum’s website that showed the exact same item in its collection. Furthermore, the color photograph was recent. It suddenly dawned on Gradel: There was a thief in the British Museum. “And he was likely still within the walls,” he says.

So began an antiques whodunit—whose cast of characters include an Oxford-based priest-cum-archaeologist, a handful of rare-gem dealers and some of the British Museum’s most august researchers—that has shaken the premise behind the museum’s most important reason for existing: that it is the best place to safely house some of the world’s greatest treasures.

This summer the British Museum said that around 2,000 items had gone missing from its collection. The museum’s director resigned. The police are on the case. So far, no one has been charged with a crime. But nations from Nigeria to China have used the scandal to further long-running requests to have items stored in the museum returned. The damage to the museum’s reputation is potentially incalculable, and many of the allegedly stolen items may never be found.

The art world is full of tales of audacious heists involving high-profile pieces, from the former Louvre worker in 1911 who simply snatched the Mona Lisa on his way home to the two men who swiped Edvard Munch’s The Scream from an Oslo museum in 1994, leaving behind a note to its directors thanking them for the poor security.

In this case, Gradel suspects, what happened was far more humdrum—and, therefore, more disturbing. The British Museum had failed to properly catalog thousands of its pieces. Meanwhile its curators had free rein over one of the biggest treasure troves in the world. And one had possibly gone rogue.

The 58-year-old Gradel makes for an unlikely Hercule Poirot. Sipping a tomato juice in a central London bar on a September afternoon, the academic rattles through the precise details of his interactions with the museum and gives an impassioned description of the engraved stones he has seen and collected over the years.

As a young man, the Israeli-born Gradel worked as a railwayman on the London Underground to pay for his studies. After studying archaeology, and a stint in British academia, which he greatly disliked, he decided in 2008 to trade antiques.

He started with books but discovered that it was already a widely mined market. He switched to a more niche specialty: gems from the Greco-Roman period. Only a handful of experts possess enough knowledge to sort ancient glass or semiprecious engraved stone gems from latter-day copies. Gradel, who has no office and works from a modest house on an island in Denmark, spends his days scouring the wares of auctions and dealers, trying to find mispriced cameos and intaglios that he can buy and sell at a profit.

Gradel has one major advantage over fellow dealers: a photographic memory. Peter Szuhay, a London-based dealer who has known Gradel for over a decade, says Gradel has memorized which hairstyles ancient Romans wore in different years, a skill that helps him to accurately date portraits carved into gems. “No other dealer would have caught the thief,” Szuhay says.

Around the time that Gradel saw the sardonyx piece in 2020, which he suspected came from the British Museum, he made another worrying discovery. Back in 2015, Sultan1966 had put up for sale a fragment of a green stone showing the profile of a Roman man with a likeness to Emperor Augustus. The profile on the stone had a distinct lock of hair sticking out of the front, a feature Gradel noted was unusual for Roman coiffure at the time. Gradel lost the bid to a fellow dealer, who bought it for £69.

A few years later, another dealer, Malcolm Hay, who now owned the piece, tried to sell it. An intermediary sent it to Gradel to see if he was interested in the fragment, which measures roughly the width of a finger.

A while after, Gradel read a book by a Polish gem specialist that featured an image of a stone from a 1926 British Museum catalog blown up on a large scale. “I thought that looked familiar,” he recalled thinking. There, in the book, was the gem with the same Roman profile and the same distinctive hairstyle. That, along with a couple of tiny scratches on the man’s nasal ridge, matched exactly the piece Gradel received a year earlier. Clearly, Gradel concluded, they were the same piece.

Sitting in his study in Denmark, he then went through his payments to Sultan1966, or Paul Higgins, checking out his PayPal account. Though the seller listed his name as Paul Higgins on eBay, he had a different name on his PayPal account: Peter Higgs. At first Gradel didn’t think much of this—he hadn’t heard of anyone of that name. Then he called a dealer friend of his, Rolf von Kiaer, who had also bought items from Sultan1966, to explain the weird situation. “Ittai,” a shocked Kiaer told him. “You do realize this is the name of a curator in the British Museum, don’t you?”

Gradel felt the hairs on his neck begin to stand up. But the evidence accumulated. Paul Higgins’s email was Bodrum1966@gmail.com, an oblique reference to an ancient Greek city in Turkey. Higgs, a curator in the museum’s department of Greece and Rome, had once published a book called After the Mausoleum: Hellenistic Sculptures From Bodrum in the British Museum. Higgs’s Twitter handle was @sultan1966.

Gradel was floored. Still, he had to be sure that the pieces he had seen on eBay were indeed from the British Museum’s collection and weren’t just replicas knocking around the antiques market. It would be no small feat: Only around 4.5 million of the 8 million estimated pieces in the British Museum have been cataloged online.

Gradel emailed Martin Henig, an 81-year-old archaeologist and priest who is one of the world’s foremost gem experts at Oxford University. Henig quickly dusted off the 1926 Catalogue of the Engraved Gems and Cameos, Greek, Etruscan and Romanin the British Museum, which he happened to have in his home library. Grainy images indicated the pieces Gradel had flagged were indeed original and had resided in the museum.

Gradel also raised the alarm with Hay. In 2020 Hay, a wiry Englishman from west London, went to the museum, which was half empty because of the pandemic, to meet with its deputy director, Jonathan Williams, and another curator from the gem collection. The meeting was slightly surreal, Hay says. The British Museum officials talked vaguely about how the museum had been bombed during World War II, which disturbed some of the collections, Hay recalls. After being thanked, he asked if he could see some more gems, but was instead bustled away and told they were all in boxes. Hay gave them the stone but left bemused. “At no point during the meeting did they say, ‘This is our gem,’ ” he said.

Then—nothing happened. Gradel became obsessed with the idea that he had inadvertently traded stolen goods. “If I had given up on this, then I would have become complicit,” he says. He flitted between despair at the prospect of the British Museum being dragged through the mud and feeling like a coward for not immediately naming the suspected thief outright. Higgs meanwhile was promoted to acting keeper of Greek collections.

In early 2021, Gradel decided to email Williams, laying out, in a somewhat manic way, his conclusions. “I write to you because of a disturbing discovery I have made, involving theft from the British Museum, apparently by one of your curators,” he wrote. For months, he received no reply. Then Williams emailed back to inform him that his fears were misplaced, an investigation had concluded and that the gems he had inquired about were still in the collection.

Gradel then made a mistake. He shared his finding with Dorothy Lobel King, an archaeologist-turned-author, as he weighed the idea of leaking the news via social media. It later transpired that King went straight to Higgs to ask him about the allegation. King declined to comment.

Suspicious that a cover-up was underway, Gradel asked his dealer friend who had initially bought the green Augustus gem from Sultan1966 whether the British Museum had bothered to ask him about his purchase. It hadn’t. Clearly the internal probe was a joke, he concluded.

In October 2022, Gradel got the contact details of a trustee of the British Museum and emailed him to warn him a thief was on the loose and the museum management wasn’t doing anything about it. The trustee forwarded the email to the chair of the British Museum, George Osborne, who ordered a fresh probe. This summer the British Museum announced it had fired a member of its staff after items from its collection had vanished, including some dating back to the 15th century B.C. It said it would launch an independent inquiry into security and kick-start a program to recover the lost items. Days later, it emerged that the staff member fired was not a janitor or clerk, but Higgs. Williams also stepped back from day-to-day duties.

Higgs’s son told the U.K. media he believes his father is innocent. Efforts to contact Higgs were unsuccessful.

The curator was a stalwart of the British Museum, where he worked for the past three decades. Higgs briefly gained notoriety as one of the museum’s “Monuments Men” who helped identify looted pieces. In interviews at the time, he spoke passionately about his field and how he fell in love with ancient artifacts as a young boy. The 56-year-old did not appear to be living in great luxury. He was recently photographed outside his terraced house in Hastings, where he drives a Nissan Micra. Top-level keepers at the British Museum typically earn around £65,000 a year, according to recent job postings; middle-ranking curators make less.

In the aftermath, Gradel has been in contact with police and the museum’s independent investigation. He says that upon opening a drawer, the British Museum staff found almost an entire collection of 935 individually uncataloged gems missing. Perhaps another 150 pieces with gold fixtures or mountings may have been melted down and sold off.

The British Museum declined to comment on the ongoing probe, or on Higgs’s alleged involvement, but said it was accelerating the cataloging process under new management. The museum says the vast majority of the missing items are from the department of Greece and Rome. It added they mainly consist of gems and gold jewelry. “We were the victims of an inside job by someone who, we believe, over a long period of time was stealing from the museum, and the museum had put trust in,” Osborne, the British Museum’s chair, recently told a British parliamentary committee. He added the thefts may have gone on for up to 25 years and the alleged culprit altered computer records to hide his thefts. The museum has so far recovered 350 items.

A representative for London’s Metropolitan Police Service declined to comment on the specifics of the case but said the police force had interviewed a man in August.

Gradel, Henig and others involved still can’t understand why anyone would take the risk to sell valuable items at such a discount, let alone a curator who had devoted his life to protecting and understanding these ancient artifacts. They speculate that it must be a volume play that went on for years in hopes that a drip-drip of small underpriced items wouldn’t attract attention. “It only made sense if only the tiniest tip of a much larger iceberg,” Gradel says.

Particularly shocking was the idea that some of these ancient gold pieces may have been melted down. The Roman cameo owned by Hay was chipped, indicating it may have cracked while being prized out of a ring mount. The 2,000-year-old ring Gradel had bought from Sultan1966 had nicks around the edge, which he suspects were caused by pliers to test whether it was made from gold (it wasn’t). Melting down antique jewelry reduces its value, but once sold or made into new jewelry, it becomes untraceable.

Recently Gradel went back through his other purchases—in particular a cluster of several hundred gems he bought for £20,000 between 2010 and 2013. The seller, says Gradel, claimed in an email to be an elderly English gentleman who said they were heirlooms from an estate sale in northern England. Gradel recalls how, in 2011, a fellow dealer offered to meet the vendor on Gradel’s behalf. But shortly before they were due to meet, the vendor’s purported son emailed to say that the elderly man had passed away. The old fellow was called Paul Higgins.

Gradel says he is preparing to hand that collection of around 290 gems back to the British Museum, as he assumes they were pilfered. After that he won’t devote time to hunting down the remaining gems on the open market. “My work,” he says, “is done.”

John McGrath’s Best Suburb Selections for 2025: Where to Invest Next

Australian property industry veteran, John McGrath says the next major market upswing is “just over the horizon” amid strong auction clearance rates this Spring and rebounding prices in many areas.

Mr McGrath says he expects greater market activity in 2024 as inflation continues to trend down, thereby bringing an end to the fastest interest rate hiking cycle in decades.

McGrath has just released its annual market report, in which Mr McGrath names his top suburb picks for 2024 across the East Coast of Australia and why these areas are poised for price growth.

Kanebridge News profiles 10 of Mr McGrath’s top suburb picks for 2024 below.

Fairfield, Sydney  

Fairfield is one of Australia’s most multicultural communities, making it an attractive place to settle for some of the 715,000 net migrants expected to arrive in Australia over the next two years.

Mr McGrath says the Western Sydney International Airport will create a new local jobs hub when it opens in 2026. He notes that significant medium-density development “has led to affordable homeownership opportunities” for younger buyers, with the median apartment price just $410,000.

 

Chifley, Sydney

Mr McGrath says Chifley offers a great outdoorsy lifestyle with close proximity to national parks and reserves, walking trails, sports fields, an equestrian club and several golf clubs.

“The neighbourhood has had a facelift in recent years, with young family buyers replacing original houses with new, contemporary residences,” he says. “There is also a much higher-than-average number of semis and townhouses in Chifley, providing more affordable options for buyers.”

 

Point Cook, Melbourne  

Point Cook is a well-established suburb that is packed with amenities and offers great value, with a median house price of $760,000, according to Mr McGrath.

“Prices have remained resilient during the recent downturn, and rents have grown strongly in the past year,” he said. “The suburb … has a good mix of housing stock and its proximity to the water is a big drawcard for residents.”

 

Spotswood, Melbourne  

Spotswood has flown under the radar in the shadow of neighbouring hotspots Seddon and Yarraville, says Mr McGrath.

He points out that Spotswood has a solid track record of price growth and “strong growth fundamentals” for the future, including an expanding dining scene and good road and rail links.

 

Mansfield, regional Victoria

Mansfield was an extremely popular treechange destination during the pandemic, when many people left Melbourne and moved to the regions because they were able to work remotely.

Mr McGrath says there is still room for Mansfield home values to grow further, pointing out that “price growth has not yet reached the heights of high country lifestyle locations like Bright”.

 

Clontarf, Brisbane 

Located at the southern end of the Redcliffe Peninsula, Mr McGrath says Clontarf was one of the top growth suburbs in the Moreton Bay region in 2023. He says the suburb is highly desirable among family buyers due to its transport links to Brisbane, sprawling beaches and waterfront parks.

 

Southport, Gold Coast  

Southport offers a more affordable price point but the same attractive lifestyle amenities as Broadbeach, Burleigh Heads and Palm Beach. “The plethora of high rises here makes it an attractive option for those who like to live close to the action,” Mr McGrath says.

 

Coolum Beach, Sunshine Coast

Mr McGrath says Coolum Beach is known for some of the most consistent waves for surfers on the coast. He says the suburb is popular with family buyers and couples and sits in a central location within an easy drive of Sunshine Coast Airport and only 20 minutes south of Noosa Heads.

 

Moonah, Hobart

About 5km north of Hobart’s city centre, Mr McGrath says Moonah is “an up-and-coming suburb where you can still find houses for less than $650,000.”

He adds: “Its affordability and wide quiet streets make it a magnet for young families, as well as those buying their first home. Another drawcard is its thriving food scene clustered around Main Road, with renowned restaurants like St Albi.”

 

Riverside, Launceston 

On the banks of the Tamar River about 4km from the CBD, Riverside is appealing to family buyers due to its proximity to the city and four local schools.

Mr McGrath says the Riverside market provides the opportunity to buy homes with water views, or homes on larger parcels of land a bit further out where many residents keep horses and chickens.

 

A Vision for Sustainable Cities And The Need for Change

It’s remarkable how quickly notions of sustainability have gone mainstream in a few short years. From the rapid uptake of renewable power sources to the growth of the circular economy, there’s now a widespread acceptance that the earth’s resources are finite and will require more sophisticated management strategies if we wish to continue to enjoy a high quality of life.

For our built environment, sustainability in Australia has begun to move beyond the actions of individual motivated homeowners to discussions about how entire cities can and should perform to better support not just the people who live there but the entire ecosystem.

Earlier this year, Adrian McGregor, co-founder of globally recognised multi-disciplinary landscape architecture firm McGregor Coxall, released a new book, Biourbanism, a magnum opus dedicated to creating better cities for a sustainable future. McGregor says the problems we’re having now are of our own making.

“The environmental crisis is a design crisis,” he says. “We’re making a lot of poor decisions about the design of cities. Fundamentally cities are our creation and we’re not getting them right. In developed countries, there’s no reason why we should be getting these things so badly wrong.”

In his book, he argues that for too long, we have worked on the assumption that cities are somehow separate from the rest of the environment instead of being an integral part of it. Indeed, their impact is felt well beyond city fringes, with 75 percent of greenhouse gas emissions derived from cities. As countries around the world begin to feel the impact of extreme weather events, he says we need to shift to a decarbonised city model as quickly as possible.

“Those that move the fastest will be the most resilient to increasingly extreme weather events,” he says.

Along with planning for office blocks and high and low density residential releases, he says it’s crucial that ‘green’ and ‘blue’ infrastructure (landscape and water) are considered as an inherent element in design.

Shannon Foster is a D’harawal Eora Knowledge Keeper, founder of Bangawarra and lecturer at the School of Architecture at UTS. She says the balance in cities needs to fundamentally shift if they are to be sustainable places to live.

“We don’t like to talk about ‘green corridors’ because there should be ‘grey corridors’ — predominantly green space that humans can move through as well,” she says. “Not that we are going for the ‘I Am Legend’ look, but we are looking for ways we can allow for spaces to thrive.”

She points to water management in urban areas, particularly storm water, which is often considered a problem to be solved.

“It’s all about how to get it off site,” she says. “But water gives us life so how is it a problem?”

In recent years the notion of ‘sponge cities’ has gained traction among urban planners around the world as a way to mitigate flooding. It relies on sufficient green spaces, including floodable parks and wetlands within cities to manage the water onsite. The payoff is to reduce dependence on pipeline infrastructure used to redirect high volumes of water which is costly to repair and maintain.

It’s not a new concept to Indigenous knowledge keepers.

“Everything begins from country,” Foster says. “We overlap beautifully with sustainability because we are looking at country, plants and water Author of Biourbanism Adrian McGregor (above) and Indigenous knowledge keeper Shannon Foster (below).

and air are protected and sustainably managed.”

NSW chapter president, Australian Institute of Architects, Adam Haddow, says while sustainability will look different for each of the thousands of cities around the world, they all need to work harder than they do now.

“We don’t want lazy cities,” Haddow says.

“Sustainability is different for every city because every city has a different measure of what might be sustainable for site.

“Regional Victoria might be different to NSW or the NT in their ability to engage with and capture water or solar or wind. The thing that is consistent across all the cities is the question: how do we make better use of what we have?”

That includes the existing built environment, he says.

“We should consider every building as heritage,” he says. “We have made a lot of mistakes in the history of our cities and it’s about ensuring we don’t make them again by demolishing to rebuild.”

Demolishing and starting again would add to the carbon load and negative environmental impact. Haddow says there’s a better, less invasive way to approach it.

“If you think about it in medical terms, we should be focusing on urban acupuncture rather than urban surgery,” he says.

Haddow is part of a growing movement in planning and architecture circles in support of the 15-minute city, a concept where everything residents need on a daily basis, such as the office, school and shops is within a 15-minute walk or bike ride. Critics says it confines residents to Hunger Games-style districts that embed inequalities rather than eliminating them. Regardless, it relies on a higher density living and working model than currently exists in most Australian cities.

“We are still one of the least dense places in the world, and we have forgotten about the middle type of living environment — lower density projects up to six storeys,” he says.

For Fred Holt at Danish firm 3XN and lead architect on the award-winning Quay Quarter Tower, it’s about diminishing the reliance and role of motor vehicles to move about the city.

“There is always opportunity to go to other parts of the city but the idea of a sustainable city is to limit the dependence on vehicles, especially those that produce pollution,” he says. “So having a connected city is about connected precincts that are self sustaining but also having ease of transportation between various precincts.”

It’s also getting more out of the space you’re in, he says, so that they stay activated for longer.

“In the Quay Quarter Tower and Quay Quarter Laneways precinct, the idea was to create an 18-hour precinct where you could play and work within the same proximity or neighbourhood as a sustainable model for urban planning.”

His colleague, architect Dan Cruddace, led the Quay Quarter Tower project for the Australian firm, BVN. Now at 3XN, he says there’s one city he thinks of as a good model for sustainable living.

“When I was in Copenhagen, everyone cycles there, from the children to people in their 90s,” he says. “It’s a way of life. The air is clean, the streets are safe, the infrastructure is in place.

“Everything is set up correctly.”

For McGregor, there are cities around the world that have elements of sustainable living about them that we could learn from.

“I love London because of how hard it has worked over the past 20 years to enhance walkability and to increase pedestrian space which underpins that tremendous public transport system,” he says. “Singapore is really progressive in terms of urban greening. Even cities like Hong Kong are really interesting for their walkability and their density and the way they manage vertical urban activity.”

Inevitably, the commitment to sustainable cities comes down to cost. That, says McGregor, depends on where value is placed.

“Economics is the lever behind all change, it has to be,” he says.

“What sits behind all of it is giving natural capital value. When I met David Suzuki years ago, he said modern economics doesn’t give a value to natural capital. You can use your resources for free — it will cost you nothing.

“Until that is given a value in any manufacturing process or construction process, then the model is completely flawed.”

Ultimately, cities are habitat for humans, which is where their success or failure rests, says Holt.

“There is a movement towards understanding that we have a finite amount of resources and the most sustainable building or city is the one that already exists,” he says. “It’s important to not only look at a sustainable city as one focused on reducing carbon but places that are sustainable socially.

“The most sustainable place is one where people want to be and they want to be there for a long period of time, over generations.”

The future is already here.

How Many Credit Cards Should I Have?

Over my 30-plus-year career as a financial educator, I’ve answered thousands of credit-related questions, but there’s one that’s always on the top of the list. “How many credit cards do I need?” There’s no set number that’s right for everyone. The average American with a credit score has three cards, according to Experian . (Though people with perfect credit scores tend to have six.) The truth is, while there is no magic number of credit cards that will work for all people, there is probably a sweet spot that will work for you. It will be based on your spending habits and credit, as well as how much time and effort you want to put into managing the plastic in your wallet.   Use this guide to identify what kind of credit card user you are—and how many credit cards you should have.

If you need to build credit…

How many cards: 1

Most issuers require credit scores of 680 or above, especially for premium reward cards. If your scores are below 630, though, you’ll probably need to consider a credit card that will help you build or rebuild credit. (Not sure of your credit score? Free credit scores are available from a variety of sources.) A secured credit card can be a smart option if you don’t have a very good credit score . Secured cards typically require a security deposit that is refundable when you close the account. Your credit line is often equal to your deposit. Make your monthly payments on time and you’ll build credit that may help you qualify for additional cards in as little as six to 12 months. Once your credit scores are higher, you can shop for the card you really want.

If you don’t want to play the points game…

How many cards: 2

You want a credit card for convenience and you like perks, but you want to keep it simple. A cash back card is a perfect choice for you, as everyone can use more cash. Although you’re likely to use that card for most of your spending, I recommend you have a second card as a backup in case your card is stolen or declined.  A second credit card can also help boost your credit score . That’s because having more credit available to you will lower your “credit utilization ratio,” which compares your credit limit to your balance. If your credit report lists a credit card with a $10,000 limit and a $3,000 balance, for example, your utilization is 30%.  “Try to keep utilization below 30%,” recommends Jeff Richardson, vice president and group head at VantageScore Solutions. (VantageScore is one of the two major companies that creates credit scores. FICO is the other.)

If you want points but not a lot of hassles…

How many cards: 4 to 5

You want points and perks but you won’t agonize over every purchase to make sure you use the optimal card each time. You can benefit from a few cards that offer bonus rewards in the categories where you spend the most. Popular reward bonus categories are U.S. supermarkets, restaurants/dining, gas stations/fuel and hotels. Make sure other purchases go on a card offering a good ongoing reward rate: Aim for 2% cash back or 2x points.  In addition to two cards from major issuers, you may also want a store card from a favorite retailer. But be careful with store cards. I once missed a payment on a retail card because it wasn’t in the normal rotation of bills I pay, and the late fee and interest were steep.  To pick the right card, you’ll need to understand your spending habits. Your current credit card issuer likely offers a spending report that will break down previous spending for you. Or if you use a budgeting app , such as Mint or YNAB, you can view your top spending categories there.

If you love points—and you’re willing to be a little obsessive…

How Many Cards: 10 or more

You want to earn rewards, lots of them, and your goal is to earn more than one or two points per dollar spent, or 1% to 2% cash back, whenever possible. You have excellent credit and you’re comfortable opening new cards. You’re also willing to pay an annual fee of several hundred dollars when you know the rewards you earn will easily offset that cost.  That means you’re willing to use specific cards for different types of purchases, which may mean one card for groceries, another for gas and another for travel. When you’re trying to earn a welcome offer, though, you’ll prioritize using that card to meet the spending requirement, which usually means spending several thousand dollars in the first three to six months after you’re approved for the card.  You may also want a co-branded airline credit card with the airline you fly frequently to earn perks such as free checked bags and priority boarding, and a co-branded hotel credit card with your favorite brand to earn upgrades and free stays.  All of this analysis takes a lot of work, and it may mean you use a spreadsheet to keep track of perks, annual fees and progress toward spending requirements. Or you may turn to a number of apps that help you decide which card to use for specific purchases.

If you have a small business or side hustle…

Cards: 2 in addition to your personal cards

Use business credit cards to make tax time simpler by separating your business and personal purchases. And to earn rewards on business purchases, of course.  You don’t have to have a huge payroll—or any payroll at all. Freelancers, gig workers and side hustlers qualify for many small business credit cards that can be a great addition to your personal card. Most small business credit cards require a good personal credit score and sufficient income from all sources, not just the business. However, many business credit cards don’t appear on consumer credit reports, which means they don’t impact your credit scores as long as you pay on time.  Similar to choosing a personal credit card, pick your business credit cards based on your spending habits. Someone with an e-commerce business, for example, may spend heavily on shipping and online advertising, while a service-based business may have higher fuel expenses.  As your business grows, you’ll likely need more cards for different types of purchases or to increase your credit lines.

Yes, There Is a Best Time of Year to Buy a New Car

You can save thousands of dollars on a new car by buying at the right time of year.

Typically, the best time to shop for a new car is when the new version of that same vehicle is about to go on sale, so dealerships will want to clear space for the new models. The closer you get to the new model’s arrival date, the more you can save on older models, said Lori Wittman, president of retail solutions for Cox Automotive.

“Savvy buyers who time their purchases around redesign releases, year-end clearances, tax season or other demand shifts can secure substantial savings,” said Zach Klempf, chief executive of Selly Automotive, a San Francisco-based software company.

This guide explains which weeks to mark on your calendar if you’re shopping for discounts on a car, and why these strategies hold true year after year.

  • What are the best months to start car shopping?
  • When are the best times of year to get a deal on a car?
  • What are the best months for buying electric vehicles (EV)?
  • If there is one best day of the year to buy a car…

What are the best months to start car shopping?

If buying the latest model or a specific color or trim isn’t a top concern, start car shopping in August.

Car buying is not unlike buying an iPhone: When new iPhones are released, old models will drop in price. Cars take up a lot more space than an iPhone, though, so dealerships tend to start discounting in the summer—a few months before new models arrive—to clear out inventory.

“Traditionally, automakers retool their factories for the new models in the summer, so that makes August, September and October a good time to shop for an earlier model,” said Wittman.

Look for cash-back programs and other incentives as manufacturers start clearing out their inventory, said Klempf.

“We’re currently seeing incentives return with strong interest rates and deep discounts on 2023 inventory,” said Wittman.

Start paying attention in the fall, from September to December. New models are typically released in the fall of the preceding year, with 2024 models announced in the fall 2023 and start arriving in October. For new car models released in the fall, dealerships will typically have units on-hand for same-day delivery.

When are the best times of year to get a deal on a car?

Big holiday “sales” at dealerships—think Memorial Day and Labor Day—are more of a marketing gimmick than an actual chance for deep discounts, according to Nathan MacAlpine, the founder of CarMate, a Los Angeles-based car brokership.

For used cars, MacAlpine said tax season, from early April to early May, is a sweet spot for buyers. When people get their tax refund back in the spring, a lot of them go car shopping. Dealerships compete for customers by offering deals.

“Just after tax time, I always find it’s busy on my end of selling cars, which means there are more discounts,” said MacAlpine.

What are the best months for buying electric vehicles (EV)?

EV sales are seasonal, too. The months leading up to the end of the year tend to be a popular time for EV buyers who want to take advantage of tax benefits before they expire, said Klempf.

Next year, this will be less of a problem: EV buyers will get up to $7,500 off the purchase right at the dealership, rather than wait months until filing their tax return to get the credit.

If there is one best day of the year to buy a car…

To time your car purchase for maximum savings, Cox Automotive’s Wittman recommends marking some dates on your calendar.

“The end of the month, the end of a quarter or the end of the year are also good times to find deals on both new and used cars,” said Wittman. Salespeople are under pressure to hit sales quotas at those times to earn bonuses for high sales volume, and they’re more likely to offer discounts to get deals done.

“My personal favorite time to buy a car is on the last day of a calendar year, in the evening,” said Klempf of Selly Automotive.

He personally helped family members secure end-of-year deals on Toyota vehicles, such as a gold-colored Camry, a hue that wasn’t in high demand. “We managed to negotiate a discount of nearly 20% on the car,” he said of the purchase, which was made near close of business in December. The dealership explicitly told them that they were striving to hit their sales quota.

Australian Homeowners Stay Put: New Report Highlights Suburbs With the Longest Tenure

Australians are holding onto their homes for longer, as a new report reveals some of the suburbs that are the most tightly held in the country. The newly released Domain Tenure Report reveals house owners are staying put for an average of nine years, up from seven years in 2013. Apartment owners are holding their homes for an average of eight years, up from six years in 2013.

There are many reasons why tenure periods are lengthening in Australia. Across the capital cities, the most consistent tenure increases have been in Sydney and Perth houses and Sydney and Melbourne units. Housing affordability challenges are likely a factor in more home owners staying put in Sydney and Melbourne. Whereas in Perth, a long period of weak market conditions may have discouraged people from changing homes until they can sell for more than they bought. It’s cheaper to buy a house today in Perth than in any other capital city bar Darwin, so the increasing period of tenure may also reflect buyers’ ability to secure a ‘forever home’ on the first purchase.

The report notes that transactional costs associated with moving, such as stamp duty, can distort housing decisions and be a disincentive to move. “The financial burden of stamp duty can be linked to people’s willingness to change homes to suit their current needs,” according to the report.

A long average tenure period can also reflect a suburb’s high desirability or aspirational nature, perhaps due to its strong community, the style of housing, or a prized school catchment zone. Domain chief of research and economics, Dr Nicola Powell says: “There are certain areas that people tend to stay at for much longer and that’s because they are committed to the community. So, what you can find is that those tightly held areas are very hard to gain access to.” Dr Powell commented that in certain areas “people almost stalk for houses to come up since it means you’ll gain access into that suburb”.

A long average tenure can also indicate a lack of variation in local housing stock. Growing families may opt to renovate and/or extend their existing homes to suit their changing needs, thereby staying put longer. Would-be downsizers may also stay in larger homes for longer periods because there is a lack of smaller homes available in the area.

The areas with the longest average tenure periods across Australia’s capital cities are profiled below.

 

The suburbs we love not to leave

 

Strathfield-Burwood-Ashfield area, NSW (average tenure 13 years – houses)

 

Within the Strathfield-Burwood-Ashfield area is the suburb of Strathfield, which is known for its grand modernised Federation homes on generous blocks in wide, leafy streets. The suburb has a large number of schools including Strathfield Girls High School, Trinity Grammar, Santa Sabina College and St Patrick’s College. The area attracts older families with teenage children who want to buy forever homes in their preferred school catchments. The median price for a four bedroom house in Strathfield is $3.01 million, down 6.3% in 2023.

 

Whitehorse-East, VIC (average tenure 13 years – houses)

 

Balwyn North is the most populous suburb within the Whitehorse-East area. Located about 10km east of Melbourne CBD, it is one of the city’s most affluent suburbs. It is known for its wide, leafy streets, large parcels of land and post-war homes that have been modernised or knocked down and rebuilt over the years. Balwyn North offers close proximity to some of Victoria’s best private schools. The median price for a four bedroom house in Balwyn North is $2.345 million, up 2% in 2023.

 

Centenary, QLD (average tenure 14 years – houses)

 

Within the Centenary area of Toowoomba is the suburb of Centenary Heights, about 4km from the CBD. The suburbs attracts younger families on a budget looking for homes they can renovate or extend over time. It’s a great alternative to the pricier neighbouring area of Middle Ridge, with the median price for a four bedroom house in Centenary Heights being $615,000, up 13.5% in 2023.

 

Port Adelaide (average tenure 11 years – units)

 

The suburb of Port Adelaide has a strong maritime history and is home to the Techport naval construction base. It was developed in the 1800s and showcases some of the best preserved colonial buildings in South Australia. A sizeable part of the town centre is heritage-listed. Much residential development over the past decade has provided more apartments and townhouses, thereby attracting younger buyers who are also drawn to the thriving social and sporting scene. The median apartment price in Port Adelaide is $533,500, up 23% in 2023.

 

Joondalup, WA (average tenure 11 years – houses)

 

The suburb of Joondalup is about 26km north of Perth CBD. It is the primary urban centre of the outer northern suburbs and has its own train station, many parks and a coastal zone featuring Burns Beach in the north and Beaumaris Beach in the south. Joondalup began its journey to becoming Perth’s ‘city of the north’ in the 1980s, when many houses and businesses were established in the area. The median price for a four bedroom house in Joondalup is $633,000, up 2.9% in 2023.

 

North Canberra, ACT (average tenure 12 years – houses)

 

Within the North Canberra area is the suburb of O’Connor, which borders bushland on the edge of the CBD. O’Connor is a uniquely quiet residential area with a much-loved local village, yet is only 3km from the city centre. O’Connor is gentrifying as families seize the opportunity to buy quarter-acre blocks with 1950s homes that they can replace with architecturally designed dream homes in tranquil bush surrounds. The median price for a four bedroom house in O’Connor is $1.588 million, down 27.8% in 2023.

 

Litchfield, NT (average tenure 13 years – houses)

 

The Litchfield municipality is on the eastern and southeastern outskirts of the Darwin-Palmerston urban area. Within Litchfield is the suburb of Humpty Doo, a popular tourist spot on the way between Darwin and Kakadu National Park. The town has a thriving agricultural industry and the warm climate enables top-quality mangoes to be grown and picked earlier than Queensland fruit. The median price for a three bedroom house in Humpty Doo is $650,000, up 11.5% in 2023.

 

Hobart Inner (average tenure 8 years – houses)

 

Within the Hobart Inner area is Sandy Bay, an affluent residential suburb known for its natural beauty, with many homes enjoying spectacular panoramic water views. It is just 1km from Hobart CBD and offers a mix of historical homes and contemporary residences. It is home to many prestigious schools and has a vibrant restaurant and café scene. The median price for a four bedroom house in Sandy Bay is $1.51 million, down 9.9% in 2023.

 

 

Australian Shares Set to Stay on Course for Weekly Loss

Australian stock futures suggest the S&P/ASX 200 will follow US equities lower at the open, making a weekly loss even more likely.

ASX futures are down by 0.6% after US traders failed to glean a sense of direction on interest rates in comments by Fed Chair Jerome Powell .

The ASX 200 is 1.0% lower so far this week and on course for its fourth weekly loss in five weeks.

Ahead of the open, Worley said it had seen no business impact from geopolitical tensions Growthpoint Properties maintained its annual funds from operations and distribution guidance.

Insignia Financial said its CEO was stepping down.

In the US, the S&P 500 dropped 0.8%, the Nasdaq Composite fell 1.0%, and the DJIA declined 0.7%.