IPE Awards Seminar: State Street calls on pension funds to revisit illiquidity measures

first_imgThe Norwegian Government Pension Fund Global (NPFG) recently approached State Street with the view to applying its new illiquidity assessment to the oil fund’s NOK4.5trn (€560bn) portfolio.The results of the assessment are to be published in the first quarter of next year in a paper co-authored by Patel and David Turkington entitled ‘The Shadow Price of Liquidity in Asset Allocation’.In the case study, the investor considers allocations to private equity, real estate and infrastructure alongside a public equity and bond portfolio.State Street found that, with the NPFG, the “shadow cost” of liquidity was less than 1%, but it warned that the figure “may be higher for other investors”.For Patel, another misconception in portfolio construction is the “correlation coefficient described from long-term averages”.Looking at upmarket and downmarket periods, there are “only very few” assets that exhibit the desirable correlation asymmetry.“Risk-averse investors choose negative correlation in downturn markets, but it’s OK for them to have correlation in upmarket phases – in traditional relation measurements, this is not taken into account,” he said.Patel stressed that this rethinking needed to be done no matter whether a quantitative or qualitative approach was taken, as portfolios were “always built with some kind of correlation assumptions”.“And if those break down, the portfolio unwinds, hedges are no longer holding and de-correlation no longer works,” he said.According to State Street’s figures, assets with key risk premiums – including global equities, small equities, growth equities or hedge funds – exhibit “significant underperformance” during 10% of the most turbulent periods.“It is not only about high volatility – looking at big moves in certain directions is much more important than looking at volatility alone,” he said.In addition to reassessing illiquidity and correlation, State Street has also developed a risk measure to take “realised rather than perceived” volatility into account.“Most investors continue to rely on bar and loss measures that are very much ‘end of horizon’ – for example, a five-year period,” he said.“But, in practice, you are not going to hand an asset manager your money and come back five years later – you care about risk during the period.”According to observations by State Street, a standard Value-at-Risk measure for a conservative portfolio at the end of 2006 was calculated at 2.1%.An amended VaR that takes into account the risk in the most turbulent periods sets the risk at a 26.3% loss.When State Street looked back at what happened two years later, the real loss in the portfolio was around 25.8%.“We are trying to describe risk parameters in turbulent versus quiet periods,” Patel said, adding that it depended very much in which periods shocks were happening, as shocks in rough periods reverberated to a much greater degree. Traditional risk measures “considerably understate” downside risk over a given period, and the cost of illiquidity measures needs to be recalculated, according to Chirag Patel, head of the EMEA region at State Street Associates.Speaking at the IPE Awards Seminar in Noordwijk, the Netherlands, Patel urged investors to revisit their illiquidity measures, as most of them “do not take investor specifics into account”.These include rebalancing or capital calls one has to meet, the ability to use market-timing skills, or the cost of failing to make use of such skills.“Quantifying these benefits or penalties shows the true cost of illiquidity,” he said.last_img read more

PNO Media loses 1.8% of return due to interest hedge

first_imgThe €4.2bn media pension fund PNO said it lost 1.8 percentage points of its 4.5% return on investments due to a 50% interest hedge on its liablities, following rising interest rates last year. It closed 2013 with a funding just over the required minimum of 105% – meaning the scheme is still at risk, the board said in its annual report.It concluded that, as a result, indexation before 2017 was unlikely, with inflation compensation currently in arrears of 17.5%.With a yield of 13%, equity was PNO Media’s best performing asset class. The scheme chiefly attributed the under-performance of 0.8 percentage point to disappointing performance of investments in the Far East, as well an under-weight in Japanese equity, which performed well. In contrast to high returns of equity developed markets – European small caps delivered 37% – the media scheme incurred losses on investments in Latin America and Asia, following disappointed growth and a drop in local currencies.It reported a 2.7% loss on its fixed income investments – an out-performance of 1.1% – with the underlying portfolios showing mixed results.Dutch mortgages and credit generated 7.3% and 3.2% respectively. However, the pension fund lost 8% on its emerging markets bonds, while its investments in euro-denominated bonds delivered -5.9%, following rising interest rates, it said.Property investments – in non-listed residential and retail funds, chiefly in the Netherlands and other Western Europe – returned 0.6%.PNO Media further attributed the modest 1.5% yield of its infrastructure holdings to the addition of two new funds during their (expensive) start up phase.Private equity – in a joint portfolio with the €12.6bn railways scheme SPF – produced 6% last year, it said.PNO Media’s board indicated that it had decided to slightly decrease the strategic weighting of emerging market equity, property, private equity and credit, in favour of developed country equity, mortgages and government bonds.Last year, it reduced the pensions contribution from 19% to 17.6% of the salary, following lower pension costs, triggered by a decrease of the yearly pensions accrual as well as the rise of the official retirement age to 67.PNO Media reported administration costs of 220 euro per participant, and said it had spent 0.72% and 0.16% of its assets respectively on asset management and transactions.The pension fund has 15,610 active participants, 8,930 pensioners and 32,225 affiliated with 465 companies.last_img read more

Dutch government abandons plan for National Mortgages Institution

first_imgTwo years ago, the NHI was expected to issue at least €25bn in government-backed mortgage bonds within five years.But now the need for an NHI is far less urgent, according to housing minister Stref Blok.In a letter to Parliament, he noted an improvement in the market, driven by a sharp decline in mortgage rates and a narrowing funding gap at banks through alternative means of financing.At the same time, Dutch pension funds have increased their investments in mortgage funds, in 2014, nearly doubling their holdings to €6.7bn.Despite this increase, mortgage funds – which consist largely of indirect investments by pension funds through asset manager funds, or co-operation with other market players – still account for just 1% of all issued residential mortgages in the Netherlands. After the government’s announcement that the NHI would be scrapped, a spokesman for MN, the €110bn asset manager for the large metal schemes PME and PMT, said the Dutch mortgage market had finally “sorted itself out”.He noted that pension funds had been investing increasingly in mortgage funds, with PMT recently an additional €1bn commitment to the Dutch Mortgage Funding Company (DMFCO).Jeroen van Hessen, managing partner at the DMFCO, said: “We are pleased the market can do its job now. The combination of mortgages, state support and banks in the NHI was not a good idea from the start.”PGGM, which had been involved in the establishment of the NHI, said it was pleased with this “workable” instrument.However, it declined to confirm whether it would have invested in NHI-issued bonds.At present, PGGM does not invest in mortgages. Meanwhile, APG, the €424bn asset manager for ABP, said it understood the banks’ conclusion that complying with the European Commission’s conditions would have meant they would lose money by participating in the NHI. The Dutch government has scrapped plans for a National Mortgages Institution (NHI) after the parties involved in the project failed to agree on how best to address the European Commission’s decision that the NHI would be tantamount to state aid.Jan van Rutte, a former banker who was responsible for setting up the institution, said the European Commission’s conditions for preventing unintended state support – or passing financial benefits on to consumers – were “too stringent”.The Dutch government intended the NHI to stabilise financing in the local residential mortgage market.It was to streamline access to the market and increase competition via the issuance of government-backed mortgage bonds.last_img read more

KLP attributes third-quarter loss to weak markets, low interest rates

first_imgIn addition to this, risk premiums in loans to businesses are rising because of increased loss expectations.“So it is now particularly important to have adequate financial strength to withstand further market events,” Thornes said.The pension fund reported that its solvency margin ratio rose to 245% at the end of September from 213% at the same point the year before.Assets in the common portfolio grew to NOK405.6bn (€30.9bn) at the end of September from NOK364bn at the same point last year.KLP’s total assets rose to NOK526.7bn from NOK470.3bn.In the first nine months of the year, equities made loss of 1% for KLP, after bringing in a return of 8.6% in the same period in 2014.The asset class made up 19.3% of the overall portfolio at the end of September, having shrunk from a 21.3% slice at the end of September the year before.The return for short-term bonds receded to 1.7% from 5.8%, while long-term and hold-to-maturity bonds produced 3.4%, little changed from the previous January-to-September period when they returned 3.5%.Property was the highest returning asset class in the nine-month period this year, generating 6.6%, down from 5.4%.Lending, meanwhile, returned 2% in the first three quarters, down from 2.4% in the same period the year before. Norway’s KLP pension fund made a 0.3% loss on its investments overall in the third quarter, and said low interest rates and lower prices in the equity markets had taken their toll on returns in the period.The public service pensions giant said the value-adjusted return on the common portfolio, which constitutes the bulk of KLP’s investment assets, was -0.3% for July to September and 2% for the year so far. These figures compare with a 1.2% quarterly return and a 4.9% nine-month return reported for the same period last year.Chief executive Sverre Thornes said: “Low growth prospects globally and in Norway are contributing to the fact interest rates remain at a historically low level.”last_img read more

Finnish roundup: Veritas takes profits on equities

first_imgShe said that even with a secure portfolio profile, Veritas had managed to achieve a good return in the first half.Fixed income investments returned 2%, and private equity investments generated 11.3%.Total investments rose to €3.1bn at the end June from €2.9bn at the end of December 2016.Elo nets 4.4% returnMeanwhile, the larger pensions insurer Elo announced a 4.4% return on its investments in the second half, up from 1% in the same period last year.Net pensions assets increased to €22.8bn by the end of June, from €21.8bn at the end of December.Elo’s CIO Hanna Hiidenpalo, said: “The global investment market, especially the equity market, has yielded extremely good returns since March 2009. This has been the second-longest streak of good returns from investments since World War II.”In the reporting period, the US dollar weakened by almost 10% against the euro in the currency market, but “the share of Elo’s open currency risk of investments was kept at a moderate level”, Hiidenpalo said.Listed equities produced a return of 8.9% between January and June, Elo reported. Real estate generated 3.1%, but fixed income investments registered a loss of 1%.Elo said the new partial early old-age pension, which was introduced in Finland at the beginning of this year, had proved particularly popular. In the first six months since it was brought in, Elo said it had issued the new pension to to 1,536 customers.VER positive after strong equity, infrastructure gainsFinland’s State Pension Fund (VER) reported a 3.7% return on investments in the first half.Of its main asset classes, VER said listed equities gave a return of 6.9% and liquid fixed-income instruments generated 1.2%.VER said listed companies data had improved in the first six months of this year relative to 2016, and future prospects were felt to be quite bright.Real estate funds returned 0.4% and infrastructure investments yielded 6.6%, VER reported.At the end of June, fixed income instruments accounted for 43.7% of the pension fund’s portfolio, equities made up 44%, and other investments amounted to 9.5%.VER’s assets totalled €19.2bn at the end of June, up from €18.8bn at the end of December.The pension fund transferred €914m to the government budget in the first half – more than the €719m it received in pension contributions.“This gap between income and budget transfers will continue to grow year on year and slow down the growth of the fund,” it noted in the interim report.VER was established in 1990 to balance Finland’s state pension expenditure.The fund said that as of the start of this year, it would concentrate more and more on long-term outcomes and future prospects instead of quarterly reporting, but would continue posting quarterly figures and commentary on them as before. Finnish pensions insurance company Veritas has rolled back the equities weighting in its portfolio in response to high valuations.The company reported a 4.2% return on investments between January and June in its interim results, up from 0.9% in the same period last year. Equities performed the best out of all asset classes with an 8.3% return.Niina Bergring, Veritas CIO, said: “Shares are now valued at a relatively high level, and we should adjust our long-term return expectations accordingly.“We have therefore had a cautious line in our allocation to risky assets and have recently reduced the equity weighting.”last_img read more

Ilmarinen to take on OP Group’s €1.1bn pension scheme

first_imgThe final decision on the transfer is to be made in July, in which case it would take place by the end of 2018. Ilmarinen, one of Finland’s two largest pension insurance companies, has won the first stage of a major deal to manage the statutory earnings-related pension scheme for OP Financial Group.The decision came at the end of a competitive bidding process in which the country’s biggest pension insurers were invited to bid, said OP Financial Group. The company is one of the country’s main banking groups.In a stock exchange announcement yesterday the group said it had decided to start talks to transfer the management of its pension liability, worth around €1.1bn, to Ilmarinen.Harri Luhtala, chief financial officer of OP Financial Group, said the investment environment was “unusually favourable” for the transfer. Harri Luhtala, chief financial officer, OP Financial Group“Based on the initial plan, the remaining pension liability would be transferred to Ilmarinen at a later date, but no earlier than at the end of 2020,” the group said in its announcement. If the transfer were to be carried out, Luhtala said it would strengthen the entire OP Financial Group’s capital base and reduce its volatility.The pension insurance portfolio under discussion accounts for roughly 90% of the company’s total pension liability.The transfer is subject to approval by the pension fund’s board of trustees and representative assembly, the pension insurance company, and regulators.Ilmarinen was not immediately available for comment.Since Ilmarinen’s merger with the smaller pension insurance firm Etera at the beginning of this year, it has closely rivalled fellow insurer Varma in the Finnish ranking in terms of assets under management – although Ilmarinen has a much larger customer base.At the end of the first quarter, Varma reported €45.7bn in investment assets while Ilmarinen had €46.1bn.In March, Ilmarinen’s chief executive Timo Ritakallio become the new president and group executive chairman of OP Group.last_img read more

Brisbane architecturally designed homes go under the hammer this weekend

first_imgThe home at 2/35 Victoria St, Kelvin Grove, is built with sustainable living in mind.The cottage at 2/35 Victoria St, Kelvin Grove was built over a number of years by an environmental engineer and thoughtfully designed to make the most of the natural elements, according to Harcourts Solutions licensed real estate agent Bridget Gabites.“The owner collected the timber, and it’s all been designed to make sure it stays cool in summer and warm in the winter by keeping windows away from the western side,” Ms Gabites said.“There are solar panels that almost provides all the electricity for the home and there is a water tank outside.” The cottage was designed to make the most of a small block.Ms Gabites said blocks in Kelvin Grove were traditionally small and the vendor had maximised the space available through the minimalist style of the house. The home is open-plan living.The Queenslander had an architecturally designed renovation and extension which was completed about a decade ago, so while the front of the home remains in traditional fashion, the rest of the residence is ultra-modern. The home was architecturally designed by the owner’s son in 1969.The retro-chic home is back in style and has garnered the attention of buyers, many of whom want to preserve the property.“The majority have been looking to maintain the style and have come just for the architecture, while the others have come for the area,” Mr Morgan said.The home will go to auction on July 7, midday. More from newsNew apartments released at idyllic retirement community Samford Grove Presented by Parks and wildlife the new lust-haves post coronavirus17 hours agoThe home at 35 Kanofski St, Chermside West, will go to auction for the first time in nearly 50 years.Further north at Chermside West, a home is set to change hands for the first time in almost 50 years. The backyard of 42 Beeston St, Teneriffe.Backing onto Teneriffe Park, the home at 42 Beeston St, Teneriffe sits on what is an almost unheard of 911sq m. The home flows through from inside to outside.The five bedroom, four bedroom home had undercover lockup accommodation for five cars.“When you have older children and they start to get cars, you can fit all of their cars, plus your own cars undercover in the garage,” Mr Lancashire said.The home will go to auction on July 7, at 11am.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 10:02Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -10:02 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p270p270p180p180pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenJune, 2018: Liz Tilley talks prestige property10:02 Retro-chic is back! This home has drawn attention for its architecture.Ray White Chermside sales consultant Matt Morgan said the 35 Kanofski St property had been architecturally designed by the vendors son, who built and moved into the home in 1969.“The most common word I’ve heard is ‘timeless’,” Mr Morgan said.“A lot of people who have come here have said the house is better than the photos.” The bedrooms are large.The slice of prime property will go to auction on Saturday and Ray White New Farm sales principal Matt Lancashire said a block of that size at an inner-city location was rare.“In New Farm and Teneriffe anything over 600sq m is considered inner city acreage,” Mr Lancashire said.“There are only a limited amount of blocks in the area above 800sq m and this is one of them.” The master bedroom has an ensuite and walk-in robe.The unique property had been popular among potential buyers with 70 groups through at inspections.“Our average amount of buyers through is about 30 to 40,” Ms Gabites said.“Proof is in the pudding that buyers are looking for something very unique and special.”The home will go under the hammer on July 7, at 10.30am. The cottage at 2/35 Victoria St, Kelvin Grove, is set to go to auction on Saturday.ARCHITECTURALLY designed homes are the flavour of the week with a number of them going under the hammer around the city this weekend.There is everything from an ecologically sustainable home, a modern mansion, and a 1960s stunner which will hit the market for the first time in almost 50 years.last_img read more

Buying now a capital idea

first_imgDAISY HILL: 484 Springwood Road. Renovated using timeless finishes and is conducive to relaxed family living. Price: Offers over $749,000; Agent: Nathan Strudwick, Elders Shailer ParkEAST Cleveland: Enjoys bayside living and genuine choice when it comes to value for families and their needs in a home. TW Balmoral: Restaurants and bars within walking distance and the suburb with multiple public transport options. Earmarked major multistagemixed-use development will impact the suburb also. DH Camp Hill: The Inner East continues to be unbeatable for families and the lifestyle so close to the city. BW Manly: Lovely bayside lifestyle choice for families. Escape the high density, and enjoy the larger blocks. JI Wynnum: The family’s first pick for eastern Brisbane living. Great schools, relaxing bayside living and lifestyle. This suburb wasmade for families in mind. PA WESTSherwood, Graceville and Chelmer: Some of the most beautiful and long established suburbs in Brisbane. There’s still good buying in this price bracket hereto but you have to move fast. TW Indooroopilly: Local golf course and shopping centre and close to major thoroughfares leading to the CBD and west. DH Kenmore: Country living in the city, homes perfect for the family. Top rated public and private schools. BW More from newsParks and wildlife the new lust-haves post coronavirus16 hours agoNoosa’s best beachfront penthouse is about to hit the market16 hours agoKenmore: With its changing demographic towards younger families, neighborhood bars and eateries are on the rise. New builds, renovationsand redevelopments are now the focus in this transitioning suburb. JI Auchenflower: This tightly held community is great for young families wanting to be close to everything, including the city, great schoolsand just around the corner from Paddington. PA GOLD COAST Palm Beach: A fabulous blend of community on the beach. Only minutes from the airport and heart of Surfers’ Paradise. JI Elanora: Big homes on large lots at affordable prices and close to the beach. DH Robina: It has it all. Great retail precincts and good links to the nearby lifestyle suburbs. TW Ormeau: Family-friendly area with lost of new infrastructure going in or planned. BW Bundall: This suburb is undergoing a resurgence and is close to Surfers Paradise. Very family friendly. PA SUNSHINE COASTMoffat Beach: Moffat is becoming a favorite for family’s due to its easy lifestyle. It’s an all-embracing community, with many locals callingthis pocket home for generations. JI Coolum: Affordable beachside living surrounded by infrastructure and new developments. DH Buderim: A beautiful established high land suburb that enjoys coast living and often has great views. TW Kawana: Affordable and close to the beach and amenities with a lot of new developments and infrastructure. BW Buderim: Close-knit community with good schools and perfect for families. PA *** LUXURY – $1 million-plus NORTH Bridgeman Downs: It is becoming more popular with people who are after acreage not too far from the CBD, while the traditional dress circlesuburbs of Ascot and Hamilton will never go out of style or vogue. TW Ashgrove: Heritage homes, close to schools and public transport, with plenty of parks. DH Clayfield: Grand homes on large allotments. Prestige plus. BW Hamilton: Hamilton has a perfect blend of community vibes, heritage aesthetics and entertainment culture, and is home to top-tier villasand large estates. JI Clayfield/Kalinga: With so much growth potential. there is a reason why all the astute prestige buyers are coming to these two suburbs. PA SOUTH South Brisbane: It offers wonderful opportunity in a myriad of high quality property. Close to CBD and always sought after for its lifestyle.TW Sherwood: Borders the Brisbane river so many homes feature river frontage and stunning views. It is well connected by public transportto Brisbane’s CBD and Ipswich. DH Highgate Hill/Yeronga: Beautiful riverfront to green leafy homes with all the amenities close by. BW Coorparoo: Maintains a balance of old and new, with enduring character-rich homes and entertainment and lifestyle developments movinginto the area. It’s well renowned for its elevated prestige residences. JI Coorparoo: Quickly becoming the luxury hub of Brisbane’s south, Coorparoo represents a prestige location with the convenience of inner-cityliving. PA EAST Norman Park or Bulimba: These suburbs offer truly unique Queensland colonial style properties right through to mega mansions on the riverfront. TW Hawthorne: Average price of $1.2 million with the suburb featuring a retail and food hub. Plenty of green spaces and a cinema. DH Coorparoo: Mix of young, urban affluence with funky cafes and restaurants. BW Hawthorne: Within easy reach of the CBD and Oxford Street café district. Hawthorne’s style and quality can’t be argued. JI Manly: The Bayside boasts some of the best luxury homes in Brisbane, with stunning views close to the city. PA WESTPaddington: The western suburbs of Brisbane has always been popular for prestige buyers. There’s some outstanding properties on the marketright now in Paddington. TW St Lucia: Many homes have impressive river, mountain and city views. Multiple public transport options. DH Ashgrove/The Gap: Proximity to the city with large blocks, family feeling. BW St. Lucia: With it’s prestigious, renovated Queenslander and Federation homes, St. Lucia’s residential pockets are highly sought-after.Its consistent ranking in the top suburbs of Brisbane is of no surprise. JI The Wester Waterfront Corridor: This includes Indooroopilly, St Lucia, Chelmer, Sherwood, Yeronga, Corinda, Tennyson all the way down to Fig Tree Pocket.PA GOLD COASTCoolangatta: Retains the old Australia coastal lifestyle vibe with the world’s most insanely beautiful beaches. BW Broadbeach: Towering high-rise and contemporary apartment plus its bar and dining scene just keeps outdoing itself. Away from the bustle,family abodes and contemporary houses line cul-de-sacs along the canals in Broadbeach Waters. JI Palm Beach: Lots of new homes being built close to lifestyle amenities and the beach. DH Broadbeach Waters: Genuine GC living opportunities with both narina and est homes within beach lifestyle and amenities. TWMain Beach: A lot of luxury units but there is the odd luxury home amongst them and each has good rental possibility. PA COOLANGATTA: 61 Rutledge Street. Brand-new home with clear views from the Hinterland, beaches and out to sea. Price: $1,550,000-$1,650,000; Agent: Ben Gazal, Harcourts BMGSUNSHINE COASTBuderim: Perfect location for a tree change. Close to beaches and hinterland with terrific infrastructure. BW Sunrise Beach: The sea and tree change is certainly on, as the old makes way for the new. There is a renewed focus on prestige new buildsand renovations in this highly desired location. JI Noosa: Stunning luxury homes in arguably one of the best beach locations. DH Alexandra Headlands: Coastal luiving in a high land position with views and renovated or establish new homes. TW Noosa: It is hard to go past Noosa in terms of location and luxury. Great amenities and cafe culture. PA *** Holly Robinson with partner Michael Webb, are selling Holly’s mother’s home in East Brisbane. (AAP Image Steve Pohlner)QUEENSLAND’S enviable lifestyle, climate, opportunities and affordable housing is expected to drive strong growth in the southeast’s property market for years to come, with Brisbane and the wider region consistently outperforming their southern counterparts. The Courier Mail has spoken with the people who know the market the best – the agents – to get their predictions for the rest of the financial year, and the top spots to buy across the state’s capital.“Brisbane and southeast Queensland are in a very good position,” Ray White Surfers Paradise CEO Andrew Bell said. “They are the beneficiaries of a changed perception … where we are seen as a viable area in which to live with a good lifestyle and excellent employment opportunities.”Mr Bell said he was seeing a growing trend of people exiting the major markets like Sydney and Melbourne for a number of reasons but mainly lifestyle, affordable housing and to free up cash for retirement.Australian Bureau of Statistics data shows Queensland recorded its highest interstate migration in more than a decade last year, with jobs growth and more affordable house prices behind the trend.But local agents say Brisbane, and the southeast was still largely undervalued and prices will likely continue to go up, albeit steadily rather that astronomically as in Sydney.“If I was a buyer I’d be buying in Brisbane,” Sarah Hackett of Place Bulimba said. “There isn’t that vulnerability of prices going up or down like other markets … we just have good, steady growth.”Buyers agent Meighan Hetherington of Property Pursuit said her interstate client list had doubled in recent times. “I would say our interstate clients sat at around 15 per cent but now it is more like 30 per cent,” she said. “And we have quite a lot of expats.”Ray White East Brisbane agent Madi Roach said she expected the Brisbane market to ‘hold steady, with an increasing amountofinquiries from interstate expected. One of the houses currently on her books is 48 Didsbury St, East Brisbane, which has already garnered local and interstateinterest. Owner Holly Robinson said she had many fond memories of the house, which was given to her deceased mother by a family friendwhom she cared for. “It is a lovely character Queenslander in a fantastic location and in a quiet street,” she said.“We would love to keep it but we have bought a hobby farm and it is time to move on.”Ms Roche said she expected the Brisbane market to “hold steady”, and is predicting more price growth in her East Brisbanepatch. “There’s a huge amount of money being spent on infrastructure and with more restaurants, bars and coffee shops opening, thelifestyleappeal is only getting better as well,” she said. “We’re finding that young couples, families and expats are wantingto livewithin a proximity to the school they choose for their kids. “We’re fortunate that we have one the Brisbane’s best private boys’ schools in East Brisbane. “A recent example of this was theproperty we sold at 103 Mowbray Terrace, where all eight registered bidders were Churchie families.” Ms Roche said both East Brisbane and Wolloongabba had experienced “fantastic growth” in recent years, and she expected that to continue. But it is not just East Brisbane that is on the property watchlist.Five property experts have shared their top spots for first home buyers, families and luxury buyers. Those key players are Damian Hackett (Place Estate Agents CEO), Tony Warland (Ray White Qld CEO), Brendan Whipps (Harcourts Qld CEO), Jon Iceton (Belle Property Qld) and Paul Arthur (Queensland Sotheby’s International Realty CEO)*** FIRST HOME BUYERS – under $500,000 NORTHRedcliffe Peninsula/Woody Point: It’s on the water and it has a new rail line too which is perfect for access to the city. TW Stafford: It has its own retail precinct and cinema, bike paths and green space, along with walking paths along the Kedron Brook creek.DH Banyo: A great place to live that’s close to Nundah Village, CBD and public transport BW Boondall: Striking distance to CBD, good sized blocks and easy access to Motorway and two train stations. JI Chermside/Aspley: Great value with great growth potential for future capital gains. center_img 5 Humpybong Esplanade – Cute cottage in a prime location and within walking distance to shops, schools and public transport. Price: Offers over $489,000; Agent: Andrew Campbell, Ray White RedcliffeSOUTH Browns Plains: It has always provided fantastic infrastructure and amenities for the needs and requirements of first home buyers. TW Rocklea: Close to main thoroughfares and connected to the CBD by public transport. It’s also home to the long-standing Brisbane Markets.DH Springfield Lakes: Continued investment in the area makes this a terrific starting point for young buyers BW Springwood: Easy access to the Gold Coast or Brisbane. Entry level market with good opportunity to value add. Plenty of schooling optionssurround. JI Mount Gravatt: Quickly getting outpriced, first home buyers must act quickly to secure entry level homes in this quickly thriving suburb.PA EAST Alexandra Hills: Nice, steady suburb for homebuyers and investors with good returns. TW Murrarie: It is well-connected Eastern suburb on the fringe of some of Brisbane’s blue chip suburbs, Murrarie presents a great opportunityto enter the market. DH Wakerley: City is accessible, big blocks for young families, great opportunities for buyers. BW Murrarie: hard to find but good proximity to the city. Post war homes that can easily be updated. JI Wynnum West: Great place to enter the property market in an emerging area. PA WESTIpswich: The Ipswich corridor has long been the most affordable place to buy in all of SEQ and it has great schools and amenties.TW Oxley: Located on the Western train line, Oxley is now starting to benefit from the start of new development and change in the localarea. DH Oxley: Leafy, family orientated, quiet neighbourhoods, value for money. BW River Hills: Affordable leafy area in the Centenary Suburbs. Plenty of parks, and a nice area to bring up the family. JI Ferny Hills/Arana Hills: These are great growth and infrastructure suburbs. PA GOLD COASTCoomera/Hope Island: Within reach of the beaches and an easy commute to Brisbane, the Coomera/Hope Island districts offer some great opportunitiesfor the entry level buyer. JI Upper Coomera: New homes and developments keep this area evolving DH Oxenford: A solid market with the blessing of easy access to the beaches, Brisbane city, and both airports. TW Coomera: Good access to the M1 to get to Brisbane or the Gold Coast and beyond. Retail, schools, plenty of amenities. Affordable.BW Carrara: Plenty of new infrastructure post-Commonwealth Games. PA SUNSHINE COASTMaroochydore: With an urban community feel and backed by quality infrastructure, here you’ll find some of the Coast’s most affordable living.JI Sippy Downs: Plenty of affordable housing close to amenities. DH Kawana: Close to the coast with lots of new development including the new hospital. A lot more infrastructure underway or in the works.TW Sippy Downs: Heaps of new infrastructure and house and land packages. Easy commute to Brisbane. BW Peregian Springs: Close community surrounded by good infrastructure and amenities and the beach. PA *** FAMILIES – $500,000 to $1 million NORTH Bracken Ridge: I’m a long time fan. Buy your family home here and you’ll be set. It’s close to good arterials and shopping centres. TW Red Hill: Heritage listed suburb in walking distance to the CBD and Roma Street Parklands, with many properties boasting city views. Wavell Heights: It doesn’t get more family than Wavell Heights and the location continues to be a hotspot. BW Shorncliffe: Lovely area with public transport, surrounded by water, great local school and beautiful older homes. JI Grange. A Fantastic suburb suburb for new and established families, with excellent schools nearby, infrastructure and so close tothe city. PA SOUTH Rochedale: Offering small and large family value in well established communities. TW Moorooka: Connected to the Brisbane CBD and the Gold Coast via rail. Boasts own shopping area with more than 100 businesses. DH Daisy Hill: Great area to buy for a forever home, lovely homes. BW Tarragindi: Rolling hills. Plenty of parks, local cafes and close to the CBD. JI Holland Park West: So close to the Brisbane CBD, this is Brisbane’s best kept secret, where over 60 per cent of all home owners are families,and the average sales price is still around $800,000. PA last_img read more

Dad’s inspiration lives on in daughter’s award-winning house

first_imgThe riverfront property at Sinnamon Park.VEETA Bassi moved house 35 times by the age of 40 and she’s about to do it again, leaving the Sinnamon Park home she designed seven years ago. Custom-made pivoting glass doors channel breezes into the house.A lawyer by profession, Mrs Bassi hired Neo Building Design architects to realise her vision and builder, Scott Russell.The Windermere Estate house has a media room that is custom-made with a sound barrier wall similar to those used in convention centres. A rosewood staircase tapers from double width at ground level to single width on the first floor with Mexican-inspired battens. The rosewood staircase provides internal access while an external staircase also connects the two levels.Extinct wood from 100 year old Chinese fishing boats has been turned into tiles and used as a feature wall in one of the living rooms.Despite all these incredible features, communal areas are where Mrs Bassi feels most at home.“It’s the kitchen I feel connected to, a big communal area,’’ Mrs Bassi said. Rooms are enhanced by views to the Brisbane River.“I said I’m taking the best of every house you ever made and putting it into my home.”More from newsDigital inspection tool proves a property boon for REA website3 Apr 2020The Camira homestead where kids roamed free28 May 2019The result is 32 Burdekin Drive, Sinnamon Park, with 650sq m of living space designed to enjoy Brisbane River views from every angle, with pivoting glass doors. FIND MORE HOUSES FOR SALE IN SINNAMON PARK This is where Mrs Bassi and her family love to hang out.“We have three outdoor areas that come off the kitchen, the pool area, as well as two living spaces.“The back is the Brisbane City Council Reserve and the river.”Mrs Bassi’s father passed away last year, but his knowledge will be carried forward through Veeta and Harry Bassi’s daughters.“It’s in my blood and I’m going to teach the girls,’’ Mrs Bassi said. Relax by the pool at 32 Burdekin Drive, Sinnamon Park.Her father, Sukha Sandhu, was a builder in Canada with over 400 homes to his credit, and she was his greatest apprentice. “I designed the inside layout and my Dad came over and helped me with the structural things,’’ Mrs Bassi said. <<>>last_img read more

How to decorate your home to create Christmas cheer this year

first_img At home with ironman Matt Bevilacqua Yes it is that time of year again. December 1 is just two weeks away and then it’s time to break out the tinsel.But where to start? “So, don’t be too precious with your tree, put all the decorations that mean something to you up there and augment with a few that tie in your colour scheme and you will be sure to have a standout tree.” RELATED: Repeat the same bows used at the front gate on a wreath on a door.“Red, green and gold are traditional favourites for good reason, blue and silver works beautifully, and whites and jewel tones have been very popular recently,” she said.“I love mixing blues, whites, reds and greens with natural timber and textures and a hint of gold for a relaxed summer scheme. “Repeating your chosen colours throughout the house in all your Christmas displays is the main trick to ensuring your chosen colour scheme works. “This of course includes the tree. It doesn’t matter if you are a real tree or faux tree fan the pro tips are the same.“Get a tree as big as your space and budget allows.”When it comes to decorating the tree, Ms Hartigan said first “festoon with lights” and then decorate with love. “My favourite trees are those that tell the story of the people who decorate them — the ones covered in made-at-kindy decorations and great grandma’s heirloom angels. More from newsParks and wildlife the new lust-haves post coronavirus15 hours agoNoosa’s best beachfront penthouse is about to hit the market15 hours agoFleur Hartigan uses fewer oversize decorations rather than lots of little ones. (Photo by OLI SCARFF / AFP)“Repeating your colour scheme and style of Christmas decoration throughout your home will ensure a cohesive scheme,” she said.A festive entry is a must. She said tulle bows on the front fence or entry gate are a fun and inexpensive do-it-yourself way to celebrate the season — and they withstand the occasional December thunderstorm.“Repeat the bows in smaller scale on a wreath on the door,” she said.“I’ve been using the same evergreen wreath for years, just changing the bows and baubles as I change my Christmas colour scheme.”The options are almost limitless for Christmas colour schemes and Ms Hartigan said there really were no rules except it should make you happy. The Courier-Mail reached out to interior designer Fleur Hartigan for some advice on how to create Christmas cheer, instead of Christmas chaos this year. How to beat Brisbane’s median by $200k Once that is done, Ms Hartigan said it was time to bring the decorations out of storage and make sure the lights are still working.“Work out what you will focus on or add to in your Christmas scheme this year in time for the December 1 install,” she said.“A few major groupings of Christmas objects will always have greater decorating impact than a sea of tinsel.”“I decorate the entry, have the tree in the living room, decorate a sideboard in the family room, the mantle in the kitchen, the dining table and a tree on the deck so there are groupings of decorations as you move through the house.“I use clusters of objects rather than a sea of single ones: a group of pillared candles of different heights on a festive tray, a bowl of oversized Christmas baubles, a family of reindeer on the sideboard. “I tend to use fewer oversize decorations rather than lots of little ones.”Ms Hartigan said to “apply the decorator’s golden rule” and make sure you decorate in groups of odd numbers. >>FOLLOW EMILY BLACK ON FACEBOOK<< MORE: Fleur Hartigan shares her top Christmas decorating tips.Ms Hartigan said she started her Christmas decorating with a major mid-November clean and declutter. “Put away everything you don’t absolutely need and make sure the areas of the house you’ll use to entertain family and friends, including the outside areas, are sparkling clean and inviting,” she said.“Vacuum the sofas, clean the windows and power wash the outside areas. “It’s a fool proof way to make sure your Christmas decorations are a welcoming standout in your interior scheme and avoid running the risk of them looking like festive clutter.” Developer ditches cookie-cutter designlast_img read more