No expense was spared in the renovation. Picture: Realestate.com.auMr Stevens said he was desperately seeking more prestige properties along beachfront.“I am inundated with astute buyers from Sydney and Melbourne whoa re looking for similar products not only on Hedges Ave but also along the coastline,” he said.“I can’t fill the demand I’m receiving from these kinds of clients.” 7/255 Hedges Ave, Mermaid Beach has changed hands for $3.065 million. Picture: Realestate.com.auA COUPLE from Sydney spent $3.065 million on a luxury retro penthouse on the Gold Coast.The recently renovated apartment at 7/255 Hedges Ave, Mermaid Beach is described by Harcourts Coastal agent Tolemy Stevens as the “ultimate in prestige living”. Check out that view. Picture: Realestate.com.auMore from news02:37Purchasers snap up every residence in the $40 million Siarn Palm Beach North5 hours ago02:37International architect Desmond Brooks selling luxury beach villa1 day ago“By the time you stop looking and marvelling at everything and just sit down and take a breath, it’s the most amazing and relaxing place to be in. “Nothing has gone into this penthouse that isn’t absolute top-notch.” A kitchen with a view. Picture: Realestate.com.auHe said the buyers were looking forward to using the property as a holiday home.“They are very excited for the property that they have secured,” he said. The residence was recently renovated. Picture: Realestate.com.au“I was blown away by not only how tasteful the renovations are but also by how modern and on trend the apartment is.“The vendors went about creating a masterpiece on the beachfront that not only reflects its surroundings but complements them by the amazing vibe you get when you’re inside. The bathroom. Picture: Realestate.com.auThe two-level apartment is on levels six and seven of residential building On The Park at the northern end of Hedges Ave, also known as “Millionaire’s Row”.It has spectacular ocean views from almost every room while the private rooftop terrace is complete with a plunge pool and lavish entertainment facilities. Gold Coast living at its finest. Picture: Realestate.com.au
While the German pension fund association and PensionsEurope criticised the inclusion of the HBS in the assessment, Valkenburg said it made sense from “an efficiency point of view” to have pension funds calculate the HBS for the quantitative assessment and then use them in the stress test.But the actuary also argued that it was “very difficult to have a single framework for capital requirements” in the pensions sector, as schemes are “executing pension promises in very different ways”.He said using a single risk-free rate would work if all the pensions funds used stochastic evaluations, and the risks were modelled in the same way.But he said this was not the case in reality.“Using a risk-free rate to give a good estimate of the valuation of pension promises that are not fully guaranteed would lead to too high values if the risks are not modelled in the cash flows,” he said. Valkenburg said one of the most “valuable” aspects of the stress tests EIOPA will conduct among European IORPs will be the assessment of defined contribution (DC) plans.While industry group PensionsEurope has questioned whether the stress tests will yield any useful results regarding DC scheme members, Valkenburg stressed the importance of “informing members about how a stressed situation can impact them”.He added: “It is good to see DC is included in the stress tests for the first time because most new accrual of pension assets in Europe is in DC.”One of the goals of the stress test is to assess the impact on the macro economy, which, according to Valkenburg, will not be as great as the impact on individual members who “might have less money to buy a pension” on retirement.“This is important to be aware of, and, hopefully, we can help members to navigate through their lives and minimise the impact,” he said.The AAE issued a paper in February on decumulation in which it warned that the requirement to buy an annuity on the day of retirement might force people to buy at the wrong time.Valkenburg said the stress test might also highlight the problem of guarantees being much higher than the current interest rate. “Guarantees are very expensive, and they were given in times when stakeholders were not expecting a sudden change in the environment like we have seen in the past couple of years,” he said.Valkenburg expects guarantees to come down or be removed altogether in the wake of the stress tests, which he said would, in turn, highlight the problem of people having to work longer. The European Insurance and Occupational Pensions Authority (EIOPA) needs to “take another look” at using the holistic balance sheet (HBS) approach as a means of calculating capital requirements, according to Falco Valkenburg, chair of the Actuarial Association of Europe’s (AAE) pensions committee.Valkenburg said the HBS was “an interesting concept that should be explored further, maybe as part of pension funds’ risk management”, but he also stressed that the HBS concept was “quite new”.“Not even we at the AAE are fully convinced it will lead to something that can work in practice,” he said. EIOPA announced the details of its first stress test for occupational pension funds on Monday.