Source: Goldman Sachs Asset ManagementGSAM’s data showed there were several factors keeping liabilities relatively unchanged.The accounting discount rate used by pension funds is guided by the yield of high-quality corporate bonds, generally assumed to be AA.Despite an increase in the headline interest rate, GSAM said, the yield from corporate bonds rose at less than one-quarter of the rate.The manager said a reason for the discrepancy was the rising yield spread between 30-year and 10-year government bonds, with the former only rising by 58 basis points compared with 137bps for the latter.Conversely, corporate credit spreads narrowed, and as a result, despite the rise in headline Gilt yields, the accounting discount rate did not follow suite, maintaining liabilities.The manager highlighted the UK government’s statistics body’s unexpected announcement on the retail prices index (RPI) as a primary driver for increasing inflation expectations.The Office for National Statistics (ONS), in January last year, announced its decision not to change its calculation method for RPI.However, market determinants already priced in a decrease to RPI, under the assumption that its calculation method would be more akin to the consumer index, thus lowering the inflation rate.A subsequent rise in market-implied inflation, after the non-decision, sent scheme liabilities rising by as much as £20bn (€24bn).In its analysis of investment strategies, which brought about the funding improvement, the manager highlighted some discrepancies between varying scheme sizes.While somewhat expected, GSAM said smaller schemes continued to be overweight equities, in comparison to their larger counterparts.Schemes smaller than £100m had a percentage allocation to equities as high as schemes larger than £1bn would to debt, at 52% of assets.As assets experienced growth of 9.5%, all schemes benefitted from equity market rallies. However, realised investment returns added a further 9.5 percentage points to funding levels, and, combined with a further 2.1 percentage points in sponsor contributions, brought the accounting valuation funding level for FTSE 350 schemes to 103%.#*#*Show Fullscreen*#*# Stronger investment returns over 2013 are the main drivers of improved funding levels at UK defined benefit (DB) schemes, according to analysis by Goldman Sachs Asset Management (GSAM).GSAM found that corporate schemes, among FTSE 350 constituents, experienced a 10-percentage point increase in funding, backed by investments over a fall in liabilities.While 2013 saw a rise in Gilt yields across a range of tenures, this only translated into a 5.6 percentage point increase in funding levels through a downward pressure on scheme obligations.The increase in inflation expectations and service and interest costs faced by DB schemes more than undid the funding gains seen.
Hedge funds, infrastructure and alternative risk premia are some of the new additions as Swedish pension fund SPK completes an overhaul of its investment strategy in response to low interest rates and new regulation.The SEK24bn (€2.6bn) pension fund for saving bank employees has thrown out its former strategy of 70% domestic government bonds and the rest in equities in favour of a more diversified and modern approach.Peter Hansson, chief executive at SPK, said: “These are the biggest changes in the history of the fund.“Our allocation looks completely different now, and we have about 10 asset classes instead of just two.” SPK, which relocated to a new office in central Stockholm a few weeks ago, has also reshuffled managers significantly as a result of the new strategy.The fund has not only split the portfolio into a liability-hedging and return-seeking sections but also diversified its fixed income allocation and made, or is about to make, its first investments in infrastructure, real estate, hedge funds and alternative risk premia.A total of 20% of its assets will be invested in alternatives, including real estate.A smaller part of its 12% hedge fund exposure is invested in a multi-strategy fund run by Swedish manager Brummer & Partners.The majority will, however, be dedicated to an alternative risk premia strategy – the latest fashion in institutional asset management.Alternative risk premia strategies are systematic strategies aimed at gaining exposure to the uncorrelated return sources usually harvested by hedge funds but with lower costs.Stefan Ros, SPK’s CIO, said: “The hedge fund industry in general is very expensive, so we’ve tried to be creative and look for alternative strategies that can achieve what the hedge funds do but to significantly lower costs.”Other Nordic investors, such as Danish pension company PKA and Swedish state fund AP2, were some of the first institutional investors to start investing in alternative risk premia.“The fund will complement the rest of the portfolio and be completely uncorrelated with equities – it will be a very well-diversified portfolio,” said Ros, who expected the mandate to be in place by the end of the summer.Hansson added that introducing a risk premia portfolio cut costs in half compared with using traditional hedge funds.The announcement of SPK’s new strategy marks the end of a lengthy and intense process that began a year and a half ago.Due to the very long duration of SPK’s liabilities, the previous regulatory regime forced the scheme to have a large chunk of its assets in long-dated Swedish government bonds.But a new discount curve, introduced at the end of last year, reduced volatility and opened SPK up for new investments, explained Hansson.Furthermore, the allocation changes were also made in preparation for rising interest rates and as a response to a more challenging investment climate.One of the most significant changes, according to Ros, has been the transformation of SPK’s fixed income portfolio.“The natural step for someone who previously only invested in domestic government and mortgage bonds would be to move into the foreign equivalent,” said Ros.“But we decided to go all the way. We’ve invested in a Goldman Sachs fund, which includes everything you can think of – like credit, high yield and emerging market debt.“It’s a broad mandate run under very controlled forms we believe has the ability to make money in a rising interest-rate environment.”SPK has also added a domestic corporate bond fund run by Handelsbanken, which manages its Swedish fixed income allocation alongside Swedbank Robur.Its 8% allocation to real assets is equally split between infrastructure and real estate.The infrastructure fund is a global core fund run by an as yet unnamed manager.“Our real estate exposure is made up of a more cautious Aberdeen euro-zone fund we are topping up with a Nordic value-added strategy, a mandate that will be finalised shortly,” said Ros.The fund’s total equity exposure remains unchanged, but it has added a Handelsbanken Swedish small-cap fund and reduced the number of global equity managers from four to two.T Rowe Price and Carnegie are kept on as external equity managers, but it has sold its Aberdeen and JP Morgan funds.SPK, which only invests in funds, decided early on not to use consultants but to run things internally.Five asset managers – Danske Bank, Deutsche Bank, Goldman Sachs, JP Morgan and Nordea – have, however, assisted the fund and helped shape the new strategy.The objective has been a portfolio that can deliver 5.5% in returns over a 10-year period.“We’ve had the rare opportunity to think fresh and new and to start from a blank sheet of paper,” said Hansson.“It’s been a fantastic journey.”
The North Yorkshire Pension Fund is tendering for an independent investment adviser.The £2.3bn (€3.1bn) local authority pension fund said the adviser would start the new role at the beginning of September, initially being employed for three years.In addition to advising on the fund’s strategic asset allocation and the performance of individual mandates, the local authority fund said the adviser would be expected to update the fund’s pensions committee on market developments.While the initial contract is set to run until the end of August 2019, North Yorkshire said it could be extended by one year three times, but no more than that. The fund’s administering authority hopes to attract interest from five advisers by the end of May.In other news, Germany’s PVW, the pension fund for psychotherapists in five federal states, has outsourced its asset management.EYB & Wallwitz, a Munich-based asset manager, said it had assumed responsibility for the Versorgungswerk, a first-pillar provider for self-employed workers, as of the beginning of April.Eduardo Mollo Cunha, head of distribution at the asset manager, said the mandate award was noteworthy, as it came shortly after a similar award by a pension fund for the construction sector.
Border to Coast, NN, Af2i, Redington, Mirabaud, Cairn Capital, American Century Investments, Xafinity Punter Southall, Aon, Fidelity International, Mens & Kennis, Société Générale, AMXBorder to Coast Pensions Partnership – The £43bn asset pool for 12 UK local government pension schemes (LGPS) has announced several senior appointments, including John Harrison as interim chief investment officer. Harrison – a former CIO at UBS, responsible for its UK institutional business – will start his new role next month, dropping the advisory work he had been doing before in his capacity as managing director at consultants Allenbridge. Border to Coast said it would appoint a permanent CIO in due course.Manda McConnell joins Border to Coast as chief risk officer. She has more than 25 years financial services experience including 20 years within leading banks, insurance and asset management firms. Mark Lyon is currently head of investments at East Riding Pension Fund, and has played a major role in the Border to Coast project team over the last two years. He will join the pool as head of equities and alternatives.NN – Sebastiaan van den Dries has been appointed as director of NN’s CDC Pension Fund board office. He joins from Shell where he was defined contribution plan manager. Before that he worked at Deloitte as director of pension and benefits advisory. One of his first responsibilities will be to implement a new pension arrangement, as the current scheme runs until 1 January 2019. Employers and unions will discuss a new agreement this year. Association française des investisseurs institutionnels (Af2i) – The French institutional investor association has hired Sylvie Malécot as a director. The association is looking to expand its permanent staff as part of a strategic plan to grow its influence in the interests of the country’s institutional investors.Malécot is founding chairman of the firm Millenium Actuariat & Conseil, an asset management advisory firm dedicated primarily to institutional investors. She has nearly 20 years of experience in asset management and institutional investing.Redington – The UK investment consultant has hired Marian Elliott as head of integrated actuarial to provide actuarial expertise as the firm seeks to expand its capabilities. In a press release, Redington said Elliott’s appointment would enable it to “deliver a level of consultancy beyond investment” and in compliance with the regulator’s push for ‘integrated risk management’. She was previously actuarial director at Deloitte.Mirabaud – The Swiss financial group has appointed four staff from Northern Trust Capital Markets to create a new research and analysis arm known as the Global Thematic Group. Neil Campling will lead the group as global analyst, along with head of sales Toby Clothier. Mark Taylor and Chris Bishop have also joined Mirabaud’s new venture. All four transferred to Northern Trust in 2016 as part of its acquisition of brokerage firm Aviate Global.Daniel White, head of strategy at Mirabaud, said: “We are very excited by this highly complementary product offering and are looking forward to working alongside the Global Thematic Group in our ongoing mission to deliver unique insights and analysis that aid investor decision-making and ultimately generate returns.”Cairn Capital – The alternative credit specialist has hired Melissa Bockelmann to strengthen its business development team in the Nordic Region and Germany. Bockelmann was previously a director at 3i Debt Management, responsible for fundraising in Europe. She has also worked for Cantor Fitzgerald, Bank of America Merrill Lynch and AXA Investment Managers. In addition, Zachary Farmer has joined from Camares Capital to focus on North American business development. American Century Investments – The $180bn (€145bn) asset manager has named Pia Michelsson as head of Nordic Region. She joins from Icelandic firm Alda Asset Management, where she was managing director for business development in Iceland and Finland. Michelsson will be based in American Century Investments’ London office and oversee the company’s targeted expansion in the Nordics.Xafinity Punter Southall – The newly merged pensions consultancy has hired Wayne Segers to lead Punter Southall Transaction Services, which advises companies on “the acquisition and disposal of defined benefit pension schemes”, according to its website. He joins from KPMG where he was a director in the company’s London pension practice. Aon – Mike Smaje has joined global consultancy firm Aon as a partner in its global investment practice. He was previously an investment specialist for Aberdeen Standard, focusing on liability driven investment. Before that he spent nearly 20 years in consultancy roles at Willis Towers Watson.Fidelity International – Hugh Prendergast will join the asset management giant next month as global head of product, a newly created role. He will be responsible for the company’s product teams around the world, and its global product development strategy. He previously worked for Pioneer Investments for 16 years, most recently as head of strategic product and marketing. Mens & Kennis – The Dutch consultancy firm has hired Guurtje Wolters as a partner. She previously worked for the country’s regulator, De Nederlandsche Bank, for 12 years, latterly as a supervisor for pension funds. Société Générale – Anna Grebenchtchikova has joined the French banking group as vice president of solution sales in the Netherlands as part of its plans to focus more on Dutch pension clients. Grebenchtchikova previously worked at political party D66 and Goldman Sachs. She has been a board member of Pensioenfonds Medewerkers Apotheken and CNV Jongeren.Asset Management Exchange (AMX) – Kimberley West is the new US head of AMX, the institutional investment platform set up by Willis Towers Watson last year. The newly created position reflects AMX’s plans to expand into the US, after recently surpassing $3bn in assets under management. West joins from BlackRock where she was a managing director and product strategist in its active equity business. She has also worked for JP Morgan for 12 years in a variety of roles. West will be based in New York and will report to global head of AMX Oliver Jaegemann.
Private equity was last year’s best returning asset class, delivering a net result of 14.1%, outperforming its benchmark by 6.9 percentage points.Infrastructure gained 8.8%, outperforming by 2.2 percentage points, PFZW said, while private real estate beat its benchmark by 1.7 percentage points to gain 2.9% overall.In contrast, the healthcare scheme lost 10.8% on its allocation to structured credit (2.6% of the portfolio) because of the implementation of a new valuation model.It also reported a loss of 13.3% on its insurance portfolio, which it largely attributed to the depreciating dollar. Less than 2 percentage points was due to exposure to hurricane insurance.The scheme said that the weakening dollar was also the main cause for a 2.1% loss from its non-euro credit and high yield holdings, as well as a loss on listed property (-2.2%). It made a 2.5% gain on mortgages.PFZW’s 30.4% fixed income allocation lost 4% during the year, in particular as a result of a 4.4% loss on its interest rate hedging position, which included Dutch and German government bonds.The pension fund credited a 7.3% profit on its commodities position to rising oil prices in the second half of 2017. Its asset management costs rose from 0.46% to 0.49%, which the scheme said was caused by higher performance fees paid to external managers. Transaction costs remained stable at 0.1%.Administration costs per participant dropped from €67.90 to €64.90 as a result of cost reduction in pensions provision as well as an increasing number of participants. Dutch healthcare scheme PFZW’s dollar hedging position contributed more than half of its overall investment return last year.In its annual report, the €397bn pension fund said its 70% hedge of the weakening US currency contributed 2.9 percentage points to its overall result of 5.1%.The scheme has reduced its currency hedging strategy, cutting the number of currencies involved from 14 to seven in order to reduce complexity. It said this decision would have little effect on expected returns or risks in its investment portfolio. As well as the currency gains, PFZW also credited an 8.6% yield from its liquid equity holdings, with the best results from its investments in the US and emerging markets.
Swedish national pension fund AP3 has trimmed half a point off its long-term return target following an asset-liability management (ALM) analysis, in a move echoing similar decisions by other buffer funds backing the country’s state pension.A spokeswoman for the SEK374bn (€35.6bn) fund told IPE that AP3’s board had decided in December to revise the fund’s long-term real return target to 3.5% from 4%. The target has no time horizon, she said.“The background is that the 2019 ALM analysis concludes that the AP3 portfolio’s risk level is well balanced to continue to meet AP3’s mission, which is to benefit the Swedish income pension system by delivering a high return at a balanced risk,” she said.However, she said the board also took note that the long-term expected returns on both low and high-risk investments had decreased over the past decade, and had therefore lowered the fund’s return target. “The decision is not expected to lead to a change in AP3’s overall investment strategy,” she said.AP1 – another of the Nordic country’s big four pension buffer funds – announced last month that its board had decided in August to cut the fund’s real return target for rolling 10-year periods to 3% from 4%, with effect from the beginning of this year.But AP1 also said it is keeping its long-term 40-year return target at 4%, reasoning that that after an initial low-return environment, things tended to normalise.Over at AP4, a decision was taken back in 2017 to cut the 40-year real return target to 4% from 4.5 %, and have a medium-term 10-year target alongside that of an average 3% annualised real return, because return were expected to be depressed over the following 10 years.
SOLD: 223 Wynnum Esp, Wynnum sold for $1.225 million.A DUAL living drawcard resulted in a $1,255,000 sale at 223 Wynnum Esplanade, Wynnum recently.Place Manly principal Marc Sorrentino said he had more than 60 people inspect the property while it was on the market and most were interested in its esplanade location and “true” dual living arrangement.“Being a corner block means it’s not sandwiched between two houses and the views are upstairs and also downstairs,” he said. >> FOLLOW EMILY BLACK ON TWITTER<< “If you’re sandwiched in between two houses, normally you’ve just got your garage downstairs and the views upstairs, so the garage is down the side.“The other that sold this property is that it was a true dual living house, so upstairs could be closed off independently to downstairs.“A lot of investors … looked at it to be able to rent it out individually.“The people who bought it are renting it out, that’s short term, and then they’re going to do quite a big renovation on it and turn it into a Hamptons-style house.”More from newsNew apartments released at idyllic retirement community Samford Grove Presented by Parks and wildlife the new lust-haves post coronavirus18 hours agoSOLD: 223 Wynnum Esplanade, Wynnum sold for $1.225 million.Mr Sorrentino said there was an appetite for premium properties on the waterfront.“If you look at Manly, my average price in Manly is $1.9 million, and the median house price is around about $750,000,” he said.“In Wynnum, the median house prices is around about $650,000, or $670,000, and my average sale price in Wynnum is $1.5 million.“That’s telling you that there is definitely people out there that are spending good money on properties.“There is actually a block of land about 100m away that I sold recently and that was $1 million just for a block of land.” Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 2:28Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -2:28 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels576p576p480p480p320p320p228p228pAutoA, 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 Rate1xFullscreenBrisbane market wrap up02:28
This cyclone shelter was built by a “bit of a doomsday prepper” in IrvinebankA CYCLONE shelter carved in to the side of a rocky cliff is just one of the features that comes with a rustic post office in North Queensland. Located on the site of Irvinebank’s original post and telegraph office, entry to the bunker is via a solid door, with the internal rock walls exposed. Inside the cyclone shelter carved in to a cliffAgent Kathlyn Johnson said the now vacant property, believed to be at least 100 years old, had stood the test of time — and the weather gods.“The current owners, their daughter and son-in-law lived there and he was a bit of a doomsday prepper so he built it,” Ms Johnson said.“He cut it in to the rock. It has been wired for generator power and has all the ventilation systems, its own water supply, a kitchenette and a bathroom.” MORE: What the coolest rentals will cost you This room doubles as a cyclone shelter/music room — and has been soundproofed to drown out gale-force winds and tone deaf musiciansOn the market for $510,000, the cyclone shelter at 42 Alstonia Drive has a solid brick core and is soundproofed and air-conditioned. The bunker at 3 Mark Cl, Pin Gin Hill, is hidden below one of the bedroomsAlso in Pin Gin Hill is a four-bedroom house on almost three hectares at 430 Henderson Drive.This house comes with a partially inground cyclone shelter that would not look out of place in Tornado Alley.Agent Billie Hammett said the current owners, which include a former rural firie, had built the house and the storm shelter.“They thought it was better to be safe than sorry,” she said. In Weipa, the sturdy cyclone shelter at this house serves as a music room — drowning out gale-force winds and off-key singing. This historic property comes with its own rustic cyclone shelter built in to the rock faceInside there is a simple table and chairs, and the bug out room comes with power, water, a generator box and a ventilation system. Also on the market is 3 Mark Close at Pin Gin Hill, west of Innisfail.The four bedroom house is on the market for offers over $449,000 and has a cyclone shelter below one of the smaller bedrooms. It even has its own front door. A place to escape the weather and enjoy the fruits of your labourAnd in Cardwell, you can harvest the fruit trees before escaping in to the cyclone shelter at 14 Roma St.Set a few streets back from the foreshore, this four bedroom home sits on a 1872sq m block, and also comes with its own bore water. The property is on the market for $200,000 and is just one of a number of properties currently on the market featuring a storm or cyclone shelter. Storm season has started with a bang in the southeast, and cyclone season officially starts on November 1.The Bureau of Meteorology released its cyclone outlook on Monday, predicting a below average number of cyclones for Australia due to weak El Nino conditions.“Although the tropical cyclone outlook indicates that there could be a below average number of tropical cyclones in the Eastern Region, past El Nino years have shown that severe tropical cyclones can make landfall about the Queensland east coast,” the outlook warned. More from newsFor under $10m you can buy a luxurious home with a two-lane bowling alley5 Apr 2017Military and railway history come together on bush block24 Apr 2019“During the 2009-10 El Nino, severe tropical cyclone Ului crossed the central Queensland coast and showed that it only takes one landfalling cyclone to cause significant impacts on the local community. “Similarly, tropical cyclone Debbie was the only tropical cyclone for the Eastern Region in the 2016-17 season (a neutral ENSO year).” MORE: Regional Queensland towns striking property gold
This pole house on Mount Glorious is the perfect rainforest retreat. If Bilbo or Frodo Baggins had a Hobbit holiday house in Queensland, chances are this would be it. The middle level is where the open plan kitchen, living and dining room is located, as well as a wraparound entertainers deck overlooking the rainforest. What an entrance!It even has a tree trunk hearth for fires on cold mountain days. Other features include a pool-turned-pond that has been designed and planted to encourage frog breeding, enormous and professionally-built aviaries, sculpted waterfalls, water tanks and an abundance of wildlife.The house listed for offers over $629,000. A cosy spot on a winter’s day. So unique, it even featured on Burke’s Backyard, according to the listing on realestate.com.auOn the lower level of the main house there is two bedrooms and a bathroom. Two more bedrooms are located on the upper level, including a master bedroom with a walk-in-robe and ensuite. Scene from film Lord of the Rings showing a Hobbit house. Supplied. “This extremely unique home is a place of enchantment where you can leave the city madness behind and walk past a waterfall flowing over an enormous sculpted tree as your front door,” the listing says.The three-level pole house sits on a 2431sq m rainforest block, and entry is via a door in an old tree trunk.More from newsParks and wildlife the new lust-haves post coronavirus14 hours agoNoosa’s best beachfront penthouse is about to hit the market14 hours ago A separate detached dwelling also has an additional bedroom with ensuite, a kitchenette and living space. Martin Freeman as Bilbo Baggins in New Line Cinema and MGM’s fantasy adventure film THE HOBBIT: AN UNEXPECTED JOURNEY, a Warner Bros. Pictures release.Located at Mount Glorious, it could easily be from Middle-earth, a fictional location in JRR Tolkien’s The Lord of the Rings.
The 647sq m property at 54 Goodwin Tce, Moorooka.The opening bidder at 54 Goodwin Tce escaped down the back steps midway through the auction when the property got ‘well above anything I possibly envisioned’.The two-bedroom pre-war house belonged to Raw Dance Company owners Lucy Chambers and Andrew Fee who will continue to run their international dance company from Moorooka.Nine Brisbane-based owner-occupiers registered to bid at the weekend auction and they were among 40 onlookers who gathered on the back deck with city glimpses. One of the two bedrooms at 54 Goodwin Tce, Moorooka, where the sellers were listening to the auction.“I think the price makes sense to us because you know you are getting your money’s worth,” Ms Chambers said of the property which had been raised to legal height underneath but not built in.“You have to be realistic, it’s not finished,” Mr Fee said. MORE REAL ESTATE STORIES What overseas buyers want This view made the property stand out among others in the area.“At great expense we’ve organised the Moorooka State School (fete) down the road,” Ray White auctioneer Haesley Cush announced before inviting an opening bid.That came at $500,000 and within three minutes, eight of the nine bidders had put their hands up to take part before there was a pause for Mr Cush to catch his breath. Australian boxing champion Jeff Horn and Anthony Mundine in action. No one was prepared to make a knockout offer against the lead bidder at this auction. Picture: Annette Dew.The crowd was silent and after a pause to consult the sellers, the FaceTime bidders increased their offer to $720,000 and the property sold under the hammer.“Good luck to them,” one of the underbidders said afterwards. Raw Dance Company owners Lucy Chambers and Andrew Fee sold their Moorooka house at auction on the weekend.A BRISBANE auction stunned bidders when a Moorooka house made $200,000 for the sellers in 20 minutes, making it one of the most expensive two-bedroom homes in the south Brisbane suburb. At $700,000 there were obvious signs the bidders were thinning.“If you don’t like $700,000 then give ‘em the Jeff Horn,” Mr Cush said. The couple knocked down walls to open the kitchen, living and dining areas.“I think people saw the aspect and how it’s been designed but also what they can do with it.”The property, which they bought in 2013 for $520,000, had been rented out in recent years and the couple are now living between Norman Park and Teneriffe and are renovating their Moorooka dance studio.The sale was the fifth highest price for a two-bedroom house in Moorooka on record according to CoreLogic property data.“Compared to the other homes in the area it is elevated, with city aspects, and it’s a good start home for a professional couple who want to start to have a family,” Ray White New Farm agent Karla Lynch said. Interested buyers spent a lot of time downstairs before the auction, where the property had been raised to legal height.“The family who bought it are in Greenslopes, a younger couple and they were the first people to see the house and have stayed with us to the end. I’m over the moon for them.” The back deck also has a built-in barbecue and outdoor laundry at one end.“Think about it, take your time, it’s not a race, although it sounds like it at times,” he said.As it happened, the lead bidder was actually at the races, attending a 30th birthday party at the Eagle Farm Racecourse and bidding via a FaceTime link. FOLLOW US ON FACEBOOK Brisbane’s hottest suburbs right now More from newsNoosa’s best beachfront penthouse is about to hit the market12 hours agoNoosa unit prices hit new record high as region booms: REIQ12 hours ago Ray White agent Karla Lynch holds her phone with the FaceTime bidder toward auctioneer Haesley Cush, with the hammer about to fall on the $720,000 sale of 54 Goodwin Terrace, Moorooka.“We thought it was going to go for a lot less. That’s a great result for the sellers.”After a celebratory cuddle in the front bedroom where they had been ensconced, the sellers, Raw Dance Company owners Lucy Chambers and Andrew Fee emerged gleaming.