Irish pension fund liabilities rise 15%, offsetting 9% asset growth

first_imgPension funds in Ireland saw their assets rise by 9% on average in the first half of this year on the back of bond price rises, but liability values rose by around 15%, according to consultancy Mercer. Sean O’Donovan, head of DB risk at the firm, said: “Global equities saw strong growth over the period.  “The majority of outperformance can also be attributed to falls in bond yields, which have seen fixed income assets increase in value by more than 10%.”However, the same market dynamic expanded pension fund liabilities. Because falls in government bond yields were echoed by corporate bonds – which companies refer to when valuing pension liabilities – pension fund liabilities rose by around 15% in the six months to the end of June, Mercer said.It said this had more than offset the gains made on scheme assets, with accounting deficits climbing to €7.6bn from €5.4bn.In 2013, deficits narrowed by €1.8bn.Mercer said employers and trustees wanted to capitalise on the big recovery in equity markets, but the problem was where to invest these assets, with bond yields now at historic lows.“More and more clients are looking for a half-way house between equities and long-dated bonds to capture equity gains until such time as bond yields hopefully increase”, O’Donovan said.last_img read more

Norwegian oil fund writes to companies over low-carbon transition

first_imgIt added that, despite the decision not to divest fossil fuels, NBIM had long sought to address matters of climate change, and had been assisting CDP in drawing up metrics for carbon disclosure.However, it noted that measuring a company’s greenhouse gas emissions was not enough to assess the risk of climate change properly, and that a company’s business plan and operation should therefore be examined as well.As part of the initiative, NBIM said it had in 2015 written to a number of undisclosed energy firms asking them to outline their plans for dealing with a future low-carbon economy.The disclosure of the letters comes shortly after both Shell and BP endorsed a shareholder resolution backed by 50 institutions worth more than £160bn (€214bn) to report on the resilience of its business in a future low-carbon economy.The resolution asked them to disclose their low-carbon research and development plans, with Shell noting its work in the area of biofuels and carbon capture.Throughout the letter, NBIM emphasised the importance of an evidence-led approach to RI, in line with the view of chief executive Yngve Slyngstad, who last year called for more rationality in the sustainable investment debate.Read more about carbon risk in IPE’s recent in-depth report on the topic,WebsitesWe are not responsible for the content of external sitesNBIM Responsible Investment report (Norwegian only) Norway’s sovereign wealth fund has written to energy companies, asking them to outline their plans to deal with the transition to a low-carbon economy.In a letter to the Ministry of Finance accompanying its inaugural responsible investment (RI) report, Norges Bank Investment Management (NBIM) noted a recent decision not to use the Government Pension Fund Global as a tool for enacting climate policy by mandating a blanket divestment of fossil fuel holdings.NBIM contrasted the blanket exclusion of one or more sectors with its ability to monitor companies actively and potentially not invest in them, noting that sector-wide bans would directly conflict with the “basic premise” of its approach to management.“Use of the fund as a climate policy tool beyond what is consistent with the fund’s role as a financial investor would be very unfortunate for the management of the fund,” it said. last_img read more

Aviva Investors slapped with FCA fine over conflicts of interest

first_imgAviva Investors has been fined £17.6m (€24m) after failing to manage conflicts of interest within its fixed income team, after evidence of ‘cherry picking’ trades for more lucrative fee arrangements was discovered in 2013.The Financial Conduct Authority (FCA) charged the asset manager after the UK watchdog found it in breach of two of its Principles for Businesses.Between 2005 and 2013, Aviva Investors, the investment arm of UK insurer Aviva, managed certain fixed income strategies side-by-side, resulting in funds that paid differing fee levels being managed by the same desk.Because a proportion of the fees were paid to traders in the fixed income team, traders were incentivised to favour one fund over another – using internal processes to delay certain trades for several hours before allocating favourable price movements to one fund, and non-favourable to others. Aviva Investors discovered two fixed income traders had been conducting the ‘cherry picking’ process in May 2013 and addressed eight impacted fixed income funds with £132m of compensation.In additional to internal compensation for the affected funds, the regulator fined the asset manager £17.6m for failing to take “reasonable care to organise and control its affairs responsibly and effectively”.FCA acting director of enforcement and market oversight Georgina Philippou said Aviva Investors’ failings were serious, but the regulator recognised the “exceptional” reaction of the manager during the investigation.Aviva Investors was offered a 30% discount on its fine by settling with the regulator in the first stage of investigation.“This case serves as an important reminder to firms of the importance of managing conflicts of interest effectively by implementing a robust control environment with effective systems to manage the risks,” Philippou added.Euan Munro, chief executive at Aviva Invetsors, said the issued within the manager had been fixed.“We have improved our systems and controls, and ensured no customers have been disadvantaged and also made substantial changes to the management team,” he added.The FCA said Aviva Invetsors had operated a ‘three lines of defence’ model of risk management, and that conflicts of interest would have been avoided had it operated effectively.“Its failure to implement robust systems and controls in this area where there were clear conflicts of interest led to an unacceptable risk these weaknesses could be exploited for personal gain,” the FCA said.The regulator did praise the manager, however, calling its response “exceptionally open and cooperative”, and said its compensation procedure to the eight affected funds was prompt.The asset managed breached Principle 3 (management and control) and Principle 8 (conflicts of interest) of the FCA’s Principles for Businesses and related Rules.Munro was announced as the asset manager’s new chief executive in July 2013 after a period of instability in the management structure. He started his new role in Janaury last year.Parent firm Aviva has emphasised a need for improving revenue from the subsidiary with its 3% contribution, described as “inadequate” by chief executive Mark Wilson.The asset manager’s prospects have been raised by Aviva’s proposed merger with fellow UK insurer Friends Life.last_img read more

Nine European asset owners among ‘most responsible’ investors [updated]

first_imgPGGMNetherlands242 Caisse de dépôt et placement du QuébecCanada235.12 Public Sector Pension Investment BoardCanada135.6 New Zealand Superannuation FundNew Zealand25.9 Khazanah Nasional BerhadMalaysia37.7 ATPDenmark118.9 Ontario Teachers’ Pension PlanCanada139.3 Adrian Orr, CEO of New Zealand’s $25.9bn Superannuation Fund and chair of the International Forum of Sovereign Wealth Funds, said: “For stewards of long-term capital, like sovereign wealth and government pension funds, the question was not whether they could afford to invest responsibly but rather, whether they could afford not to.“No sensible asset allocator would knowingly invest in companies that pollute the environment, exploit labour or operate unethically, behaviour [that is] certain to destroy value over the long term.”The Bretton Woods II concept, known as the Responsible Asset Allocator Initiative, was developed in partnership with the Global Development Incubator, Dalberg, and the Fletcher School at Tufts in the US.The funds were ranked according to 10 criteria, including disclosure of ESG and related objectives, integration of these across the portfolio, implementation of strategies and benchmarks, commitment of resources, accountability, and partnerships with other investors and businesses.Responsible Asset Allocators: Top 25 (alphabetically listed)Source: New America/Bretton Woods IIFUND NAMECOUNTRYAUM ($bn) British Columbia Investment Management CorpCanada107.5 California Public Employees’ Retirement SystemUSA331.9 APGNetherlands531.76 ERAFPFrance26 Alberta Investment Management CorpCanada95.7 Canada Pension Plan Investment BoardCanada251.3 Public Investment CorpSouth Africa137.86 Caisse des Dépôts et ConsignationsFrance231.2 Some of Europe’s largest pension funds have been included in a new list of the world’s most responsible allocators.APG from the Netherlands (the asset manager for the €356bn ABP pension fund), Denmark’s PKA, the Irish Strategic Investment Fund, and France’s ERAFP were all named on the list, produced by US think-tank New America as part of its “Bretton Woods II” work on responsible investment. Collectively, the funds on what is known as the Bretton Wood II Leaders List manage $4.9trn (€4.2trn) in assets. They were distilled from an original pool of 300 sovereign wealth funds and large pension schemes.“A 1% allocation of total assets to sustainable investments in the developing world would be equal to twice as much as all loans and financial services extended to developing countries by the International Bank of Reconstruction and Development in 2016,” said Tomicah Tillemann, director of the Bretton Woods II programme at New America. United Nations Joint Staff Pension FundGlobal60.33 Temasek HoldingsSingapore202.2 Ireland Strategic Investment FundIreland10 Government Pension Fund – GlobalNorway980.82 PKADenmark40.14 PREVIBrazil74 National Pension ServiceSouth Korea521.8 New York State Common Retirement FundUSA192 Commonwealth Superannuation CorpAustralia30.2 AP FundsSweden195last_img read more

UK schemes face £15bn bill from pension equality ruling

first_imgMen and women must receive equal benefits from workplace pension fundsMembers of some DB schemes accrued GMPs up until 1997. The concept was introduced as a way of ensuring that DB scheme members were no worse off if their scheme decided to opt out of the state second pension, an earnings-related addition to the UK’s basic state pension that was scrapped in 2016.In 1990, an EU judgement stated that workplace pension schemes could not grant different pension benefits to men and women, and pension schemes were adjusted accordingly.GMPs are payable to men at age 65 and women at age 60. Although GMPs are paid directly by pension schemes, they were based on laws governing the state pension – which is payable at different ages for men and women. As such, it has been unclear ever since the 1990 ruling whether GMPs needed to be equalised along with other workplace pension benefits.Although this week’s decision only affects benefits accrued between 1990 and 1997, the payments – now deemed to be unequal – are still being paid by some schemes. Long-term impactIn a report published earlier this month, consultancy LCP predicted that companies could be forced to foot this bill in the current financial year.However, Royal London director of policy and former pensions minister Steve Webb warned today that the complexity of calculating payments could mean that “members will not be receiving cheques any time soon”.Carolyn Saunders, partner at law firm Pinsent Masons, added: “While the difference in an individual member’s benefits will be relatively small, the actual cost to schemes is likely to be huge because the calculation process is far from straightforward.”Complications aheadWhile the industry broadly welcomed the ruling, there remain implementation questions beyond the cost of paying benefits in arrears, particularly as the High Court gave pension schemes four methods of equalising GMPs. John Cormell, a scheme actuary at Barnett Waddingham who leads his firm’s work on GMP equalisation, said the decision “leaves open the door to… ultimately a much simpler pension landscape”. However, the options open to schemes to implement the decision could result in further disputes and delays if sponsors and schemes cannot agree on a methodology, he added.Simon Evans, employment legal director at DLA Piper, warned that some schemes that had transferred to insurance companies through buy-ins or buyouts without factoring in the GMP issue. “Further thought will be needed in relation to whether such cases now need to be re-opened,” he said.The Department for Work and Pensions is expected to publish guidance in response to the ruling, subject to any appeals. Deborah Cooper, partner at Mercer, put the figure at closer to £20bn, despite the court approving four options for implementing the judgement.Aon’s Yorath argued that men were more likely to benefit from adjusted payments as their GMP payments started from age 65, whereas women received theirs from age 60. However, individuals were unlikely to experience major changes to their payments.He said: “While the overall costs to the industry are certainly significant, this ruling will not have a material benefit for all scheme members. Most pensioners will see no increase and for those pensioners who see some increase, only a small number will receive more than an extra few pounds a month.”What is the GMP? UK pension schemes face a collective bill of around £15bn (€16.9bn) after the High Court ruled that men and women must be paid the same benefits accrued through the country’s “guaranteed minimum pension” (GMP) policy.The ruling related to three defined benefit (DB) schemes sponsored by Lloyds Banking Group, but lawyers and consultants said the decision could affect thousands of UK DB schemes and payments going back over nearly 30 years.Consultancy giant Aon, which advised Lloyds on the case, said the High Court had “acknowledged that there is legal requirement for schemes to equalise between male and female benefits” and had also presented several options for schemes adjusting to this requirement.Tom Yorath, principal consultant at Aon and an expert witness in the case, said: “Our analysis suggests that for a typical scheme the average increase to individual pensions is around 1% – although depending on the scheme rules we have seen schemes where costs were up to four times this. On an industry-wide level this could mean a cost of around £15bn.”last_img read more

More large shareholders vote against excessive CEO pay [updated]

first_imgMN 24.3% 99.6% More large shareholders – including large asset managers and pension funds – are voting against CEO pay packages, according to US non-profit As You Sow.However, although shareholders have become more successful in voting down excessive pay proposals, overall CEO remuneration has continued to rise, the organisation said.Its fifth annual report included a survey of CEO remuneration at companies listed on the S&P 500, which revealed that average pay for an S&P 500 CEO rose from $11.5m (€10.1m) in 2013 to $13.6m in 2017. The highest paid chief executives were at infrastructure company CSX Corporation ($151m) and software firm Broadcom ($103m).At CSX, this equated to 1,539 times the average pay of an employee. LGIM11.5%**46% Mountain View: Google’s headquarters in the USThe asset manager said it applied these criteria worldwide, resulting in voting against 70% of remuneration proposals. These often comprised US firms, including Alphabet/Google, ExxonMobil and American Express.Achmea IM said it voted against pay packages at Mondelez, Mattel and Comcast last year.Robeco added that remuneration proposals had become much more complex in the past few years.UK-based Aviva Investors increased its opposition to proposed pay packages at US firms from 27.7% to 79.7% between 2013 and 2018. HSBC Global Asset Management voted against 97.1% of packages in 2018, from 20% in 2013.Legal & General Investment Management’s rejection of remuneration increased from 11.5% to 46% of cases since 2015.As You Sow reported that, if the votes of the world’s three largest asset managers – BlackRock, Vanguard and State Street Global Advisors, which tend to approve almost every CEO pay proposal – were excluded, the approval rate would drop dramatically.The organisation said that the three asset managers together controlled 15-20% of the shares of every public company in the US.This article was updated on 25 February to add a comment from APG. Allianz Global Investors11.1%76.6% PGGM 58.8%97.6% Robeco/RobecoSAM 16.2%42.3% NN Investment Partners 9.8%49.6% HSBC GAM20%97.1%center_img APG 61.8%53.8% Royal London AM97.2%*71.4% Aviva Investors27.7%79.7% Pension funds were more critical on pay packages, As You Sow found, and European investment funds voted more often against remuneration than US-based ones.As You Sow also reported that Dutch asset managers MN and PGGM voted against almost all pay recommendations, opposing proposals in 99.6% and 97.6% of cases, respectively. This compared with 24.3% and 58.8% in 2013.Last year, Achmea IM, NN IP and Robeco/RobecoSAM voted against 69.6%, 49.6% and 42.3% of pay packages, respectively, compared with 16.7%, 9.8% and 16.2%, respectively, in 2013.However, the ngo noted that at the €463bn Dutch asset manager APG the percentage of rejected proposals had dropped from 61.8% to 53.8% in the same period.APG declined to comment on the findings, but emphasised that it actively engaged on executive remuneration issues with the companies in its portfolio.Asset managers’ votes against executive pay packages* Data from 2014 ** Data from 2015 Achmea IM 16.7%*69.6% Speaking to IPE’s Dutch sister publication Pensioen Pro, the €130bn asset manager MN said that most remuneration proposals at US firms didn’t meet the “stricter than average” voting rules that it had agreed with its main clients, the metal and engineering sector schemes PMT and PME.MN’s voting policy stipulates that remuneration must meet a company’s long-term goals, that the short-term bonus can’t be larger than one-third of the entire pay package, and that performance-related pay must be capped and target-linked.In addition, pay conditions must have a clause to enable the company to claw back performance pay in case of incorrect or fraudulent information.  2013 2018 last_img read more

Redcliffe local honoured in modern renovation

first_imgThe main house at 482 Oxley Ave, Redcliffe, with ‘Maria’s cottage’ positioned behind.QUEENSLAND property investor, Neil Holloway, has honoured a Redcliffe local whose deceased estate he has been renovating.The philanthropic investor, who donated 15 hectares of his Maleny property on the Sunshine Coast to the Wildlife Land Fund as a nature refuge in 2011, has turned a two-bedroom cottage in Redcliffe into three separate dwellings, each with its own kitchen, in a Hamptons style makeover.But when Mr Holloway bought 482 Oxley Ave, Redcliffe almost two years ago, he was inundated with information regarding the previous owner.“It was a deceased estate and the owner’s name was Maria, she was 102 years old,’’ Mr Holloway said.“All the people who walked past knew Maria, so when I bought the place, her nieces wanted to know what I had planned for the place.”To acknowledge the fond memories the street had for their long term neighbour, Mr Holloway restored the rear shed and named it ‘Maria’s Cottage’ in her honour. The upstairs kitchen at 482 Oxley Ave, Redcliffe.At the back of the property, ‘Maria’s Cottage’ features a bathroom, combined kitchen and laundry and a large room that could be a bedroom, office, lounge or studio. SEE WHAT ELSE IS FOR SALE IN REDCLIFFE >>>FOLLOW THE COURIER-MAIL REAL ESTATE TEAM ON FACEBOOK<<< Maria’s Cottage is a converted shed named in honour of the original owner.The main house he raised, building a separate two-bedroom residence on the ground level. The combined kitchen and laundry in ‘Maria’s Cottage’.“I’ve built to suit the current market,” Mr Holloway said. “It’s a property that has many options, and while it’s about what the people want, it’s also about what the lenders want.“Today, young kids can’t afford to move into homes of their own so they’re living at home, and more parents are living with their children.” The downstairs kitchen opens on to this back patio area.From the outside the solid timber chamferboard house retains its Queenslander charm, with manicured hedges. Iron gates and surveillance cameras add an extra level of safety.Mr Holloway has previously renovated in Woody Point and Maleny, and his next project is in the Whitsunday Region. The downstairs kitchen and living area.More from newsLand grab sees 12 Sandstone Lakes homesites sell in a week21 Jun 2020Tropical haven walking distance from the surf9 Oct 2019Following an almost identical floorplan, Mr Holloway renovated the upstairs level.last_img read more

Gold Coast home’s unusual style and design makes it stand out for all the right reasons

first_img70 Serenity Boulevard, Helensvale. Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:50Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:50 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p180p180pAutoA, 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 Rate1xFullscreenDifferences between building in new or established estates01:50 70 Serenity Boulevard, Helensvale.More from news02:37International architect Desmond Brooks selling luxury beach villa13 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag2 days ago“We just really liked the feel of dark rendered walls with timber and concrete,” Mr Van Kersen said.MORE NEWS: Live on the Edge 70 Serenity Boulevard, Helensvale. The couple built the house themselves through Mr Van Kersen’s building company, Van Kersen Homes. They have lived in it for the past year.“The design process was actually really quick because we knew exactly what we wanted then it only took us about six months to build,” Mrs Van Kersen said. 70 Serenity Boulevard, Helensvale.IT is the type of house that stands out in a crowd, and not just because it has an unusually dark exterior.Feature lighting, natural materials including travertine stone, timber and polished concrete as well as wide windows give the two-storey Helensvale property a sense of elegance.Owners Danielle and Jonathan Van Kersen took an industrial style and blended it with warmer tones when they designed the four-bedroom house on Serenity Boulevard.center_img MORE NEWS: Fancy a NRL halfback for a landlord? 70 Serenity Boulevard, Helensvale. 70 Serenity Boulevard, Helensvale.The waterfront home has a main bedroom with ensuite on each level, a built-in bar, alfresco dining area and pool.Mrs Van Kersen said they loved the home’s open floorplan, especially that they could further open the living area out onto the alfresco area.“In the afternoons, we get an absolutely wicked sunset,” she said. While reluctant to sell the house, they want to pursue another project. 70 Serenity Boulevard, Helensvale.last_img read more

Seller shouts buyer dinner after Bardon auction

first_imgThe pool was one of the house’s many drawcards.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:44Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:44 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p288p288p180p180pAutoA, 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 Rate1xFullscreenHow to bid at auction for your dream home? 01:45 The house at 34 Coopers Camp Rd, Bardon, sold at auction for $1,240,000.The seller of this Bardon home was so pleased with the outcome that she invited the buyer to dinner.The house at 34 Coopers Camp Rd went to auction on February 23 and one bidder was all it took to get the sale of the property underway. The seller took the buyer out for dinner after the auction.Ms O’Dea said the seller took the buyer out for dinner that night, something the agent had never seen before.“In my 15 years of selling at auction, I don’t think I’ve had anyone selling at auction and then inviting the buyer to come and have dinner,” she said.“Everyone was clapping and it was a sensational outcome.” MORE REAL ESTATE STORIES The auctioneer entered bids on behalf of the vendor, until the house sold under the hammer for $1,240,000.More from newsParks and wildlife the new lust-haves post coronavirus14 hours agoNoosa’s best beachfront penthouse is about to hit the market14 hours agoRay White Paddington agent Judi O’Dea said the sale of the tri-level, five-bedroom home was a “lovely outcome”. The two-level house sold at auction.“The woman (seller) was the builder (and) lived in a caravan at the back of the property while she directed the building of the site,” Ms O’Dea said.“The woman and her family are moving to Vietnam, and her husband and family were already there and she’s been here holding the fort on her own.” There is an open-plan kitchen, living and dining area.last_img read more

Why you should ditch the dud and buy a property goldmine

first_imgSA — Adelaide — St Marys — $477,602 — $78,955 (State – Significant Urban Area – Locality – Median House)NT – Darwin – Rosebery – $528,020WA – Perth – Henley Brook – $577,080VIC – Melbourne – Clyde North – $589,725WA – Perth – Jindalee – $572,623NT – Darwin – Farrar – $513,736WA – Perth – East Cannington – $444,566WA – Perth – Wandi – $507,977WA – Perth – Shoalwater – $428,932WA – Perth – Bentley – $451,875QLD – Brisbane – Bahrs Scrub – $457,678WA – Perth – Helena Valley – $570,389NT – Darwin – Howard Springs – $599,621WA – Perth – Munster – $523,772WA – Perth – Piara Waters – $482,822WA – Perth – Noranda – $524,283 (Source: sellorhold.com.au) QLD — Sunshine Coast — Kuluin — $509,258 — $62,817 (State — Significant Urban Area — Locality — Median House — Price Better off in three years)ACT — Canberra/Queanbeyan — Charnwood — $439,483 — $123,520 VIC — Ballarat — Miners Rest — $400,425 — $79,644 Bilambil Heights is just 30km south of Surfers Paradise … NSW — Gold Coast/Tweed Heads — Bilambil Heights — $559,164 — $105,787 NSW — Newcastle/Maitland — Tenambit —$442,552 — $50,089 TAS — Hobart — Geilston Bay — $475,613 — $88,949 NSW — Canberra/Queanbeyan — Karabar — $525,599 — $122,546 NSW — Newcastle — Maitland — Largs — $555,042 — $60,986 SA — Adelaide — Largs North — $428,047 — $64,039 Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:58Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:58 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD576p576p360p360p216p216pAutoA, 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 Rate1xFullscreenWhy location is everything in real estate01:59THEY are the suburbs where homeowners could make over $120,000 in just three years, just by offloading their underperforming properties.The top money-spinner suburbs — Charnwood and Karabar, both in the Canberra/Queanbeyan area — could see owners reap rewards of $123,520 and $122,546 respectively between now and 2022.Bilambil Heights, which is just over the Queensland/NSW border, came in third, with a potential earning of $105,787 over the same period. MORE NEWS: Inside a Palazzo Versace condo Housing more affordable: Where it’s cheaper to buy than rent Murder mystery station for salecenter_img TAS — Hobart — Old Beach — $448,259 — $50,958 SA — Adelaide — Birkenhead — $418,158 — $71,945 QLD — Brisbane — Underwood — $538,244 — $97,727 And this Kuluin property, which is listed for offers over $495,000 has three bedrooms and a 825sq m block.The research analysed suburbs with median house prices between $400,000 and $600,000 located in significant urban areas.In Queensland, Underwood in Logan ($97,727) and Kuluin on the Sunshine Coast ($62,817) were the suburbs to watch, with each suburb potentially sitting on a property goldmine. Mr Sheppard said investors opting to sell out of underperforming markets to buy into the high performing regions could find themselves well ahead, even after transactional costs such as sales commissions and stamp duty were taken in to account.Only one Queensland suburb made the top 15 list of low growth suburbs over the next three years, according to the research.*** Low forecast growth locations over three years More from newsParks and wildlife the new lust-haves post coronavirus12 hours agoNoosa’s best beachfront penthouse is about to hit the market12 hours agoSA — Adelaide — Croydon Park — $468,535 — $58,470 This three bedroom house at Bilambil Heights is on the market for $545,000, and it even has water viewsLocated in the Tweed Shire, Bilambil Heights is just 30km south of the tourist mecca, Surfers Paradise, and 70km north of celebrity hot spot, Byron Bay. ***Head of research Jeremy Sheppard said low growth forecasts were common in a number of suburbs in Darwin and Perth, which means that investors would likely be better off looking further afield.“The research showed that vainly holding on to properties in some of these locations could see your property wealth erode every year,” he said.“Savvy investors recognise that, even after transactional costs, they could potentially be better off by tens of thousands of dollars in a handful of years by simply literally cutting their losses.” *** (Source: sellorhold.com.au) TAS — Hobart — Austins Ferry — $404,453 — $72,635 World’s richest man creating a NYC skyhome And just 70km north of celeb haven, Byron Bay Picture: Getty ImagesRounding out the top 5 were Underwood in Brisbane ($97,727) and Geilston Bay in Hobart, which could see house values jump by $88,949 in three years, according to new research by sellorhold.com.au, part of the Select Residential Property Research Group. This Underwood house has three bedrooms and a pool, all on a 607sq m block. It is listed for offers over $499,000The new research uncovered 15 affordable suburbs where buyers are tipped to make at least $50,000 in three years after offloading underperforming properties elsewhere. The analysis identified the top and bottom affordable suburbs for housing forecast growth and took into consideration selling and buying costs.The research showed that holding on to properties with poor price potential could cost owners dearly in just three years.*** High forecast growth locations over three yearslast_img read more