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For some (inexperienced) property investors, it’s often a burning issue: where is the next property hotspot going to be? It’s also a popular media topic and property spruikers love to claim to know where the next one will be.
Yet despite the hype around hotspots, they’re actually often irrelevant when it comes to property investment.
That’s because property investment is a long-term strategy requiring a 10-plus year view, while so-called hotspots are, more often than not, a short-term phenomenon.
To assess a suburb’s long-term investment potential, it’s crucial to know what factors will affect its value over time. Here are 5 features you can incorporate into your assessment of a suburb’s potential: 
 - Activity centres
Look for smaller local centres or larger shopping complexes that feature food and beverage offerings, retail stores and service providers, which can be utilised by local residents. This type of amenity will be valued by owner-occupiers and renters alike, meaning demand for suburbs that feature good activity centres will be higher. 
 - Close to major employment centres
Given the continued urban sprawl of many Australian capital cities, people want to live closer to the area where they work (such as city CBDs) to reduce their commutes. Suburbs closer to major employment hubs will typically be in higher demand. Furthermore, investing in suburbs on the urban fringe can limit capital growth as there is typically an abundance of land that can be developed, which adds extra housing supply that puts downwards pressure on prices. 
 - Public transport links
Growing capital cities are facing increasingly congested roads.  Public transport is therefore an important benefit to any suburb. Being in walking distance to good public transport links such as a train station or bus interchange is a highly sought-after feature. 
 - Parks and other recreational amenities
Parks, activity centres, playgrounds and other recreational amenities not only make suburbs looks more family friendly, but they also provide locals with some great lifestyle options, making the area more attractive and highly valued.
 - Schools and child care facilities
Many families want to live in specific catchment zones that feature high-performing public schools. Our research has uncovered as much as a 12% difference in prices for similar stock on 2 nearby streets, where the higher-valued street was in a catchment zone for a top-performing school whereas the other was not. You can check the performance of public schools on the NAPLAN website.  
Investors looking to invest in property in the coming years should take a long-term view rather than rely on hot-spotting. By focusing on the fundamentals, such as the above 5 features, you will be better positioned to find an outperforming property.
For more insight into the do’s and don’ts of property research, download your free copy of our latest ebook: <a href="https://wvw.momentumwealth.com.au/ResearchEbook?utm_source=Property+Observer&amp;utm_medium=Ebook&amp;utm_campaign=Ebooks" target="_blank">”How to find investment-grade properties using professional research principles”. </a>
 
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abarclay-WPE22ytcZC

Forget the hotspots – the 5 suburb features for long-term property success

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Baby boomers are guinea pigs in many ways. They are Australia’s first generation to retire on superannuation. It is an experiment designed to relieve the public purse of the burden of Centrelink pensions.
One of the side effects of an experiment is mistakes. And there have been plenty of those. The problem is that trial and error with a lifetime’s worth of earnings isn’t a mistake you’d want to make, and one that many people can’t recover from.
Noel Whittaker said that one of the ways people can be undone, is by attending a free property investment seminar. “The seminars always follow the same pattern,” says Whittaker. It starts by illustrating the growing strain on government budgets along with the pressure of longer life expectancies. Attendees are encouraged to take action to avoid certain poverty. The message is a pity one, rooted in essential truth. It’s the spruiker’s solution to the problem that’s often skew-whiff.
“The killer blow is that the spruiker then convinces the victim that the best property for them is one that the spruiker, or its associates, will build on their behalf,” says Whittaker.  
Warning signs abound with dodgy property investments. Although, obviously not all investments touted at seminars are sour, Noel Whittaker has seven warning signs that you’re dealing with a questionable investment:  
1. You haven’t initiated the contact
Whether it be an offer or phone call for a “free” property seminar, you usually won’t have sought out the contact, they’ll have found you. Once you’re in, they’ll draw you in and ramp up the pressure for the sale.  
2. They claim they are the only one who can find the deal for you
The spruiker’s aim is to sell you a property at well above its value so they can make a large profit for themselves. Contrast this with the common trait of successful property investors — who almost always search for properties themselves, or through a buyer’s agent they’ve contacted.    
3. A building contract is involved
From the outset, you’ll be told that having a building contract in place is great as you won’t have to pay stamp duty costs. But this can give a spruiker the chance to extract more profit out of you by loading the building costs with their own commissions and profits.
4. They manage all the aspects of the process
A dodgy investment will have the one salesman who has a solicitor, mortgage broker, builder and property manager all working for him. This way it is hermetically-sealed environment with no independent advice reaching the client.    
5. The property is in a different state
Your own backyard is the one you’re likely to know best. When you’re taken from your knowledge zone, you rely on the information provided by property spruiker. This is where their powers of persuasion (and deception) can paper-over a dodgy investment.  
6. Your property is used as security
A spruiker will try to get you to use your own property as security for any home loan. This is a sleight of hand which is an attempt to avoid you getting a valuation for the investment property (which clearly won’t be worth nearly what you’re told it is — or will be when finished). Valuations are required when the investment property itself is used as security for a home loan.  
7. A flashy website with plenty of testimonials
Good looking websites create trust, and no one knows this better than a spruiker. Expect their websites to be flash, with plenty of success-story testimonials.
Adrian Barclay is a finance journalist from <a href="https://www.finder.com.au/" target="_blank">Finder.com.au</a>
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Seven warning signs of a questionable property investment: Adrian Barclay

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A study on borrowing with a friend by HomeLoanFinder.com.au has found that 83.5% of Aussies wouldn’t even conceive buying a property with on of their mates.
Of the 83.5%, 57.2% said they would worry that buying a place with a friend could ruin the friendship, while 26.3% wouldn’t dream of trusting a friend to make this high level commitment.


A surprisingly large 16.5% of Aussies think that purchasing a property with a friend is a great idea.


Buying a property with a friend will take the relationship to extremes normal friendships aren’t meant to endure. Which is why the rules of purchasing a property with a friend must be established early, with the ground rules of the process and relationship clearly spelled out.
1. Use a co-ownership agreement

Establishing the ground rules from the start will communicate very clearly to your friend what your expectations are and seriousness of the commitment. As a co-ownership agreement is a legal document, there will be clear steps to follow in a disagreement.


2. Decide how costs will be shared

Does your friend have a realistic expectation of some of the ongoing costs with property? Are they good with their money? How would you deal with a situation where your friend always says ‘I’ll get the next one’ when the bills start rolling in?
Managing a mortgage together takes maturity and strict budgeting skills. If your friend lacks self-restraint, your joint-venture could be doomed from the start.


3. Have an exit strategy

When buying property, it is worth using Murphy’s law to plan — whatever can go wrong will go wrong, in the worse possible way.


This shouldn’t be approached in a way that scares people out of borrowing, however buyers should plan properly for the many various troubles that could occur:
- one of you dies or becomes seriously ill or disabled

- a cut in pay or loss of job

- bankruptcy

- relationship changes with your friend or issues with spouses and families become harmful

- the property is sold at a loss


Have in mind your desired outcome from the beginning and how this can be realistically achieved and managed amicably.


4. Choose the correct title on the property

A word to the wise, if you ensure that you get the correct title on a property, it will make any future legal issues much easier if death, illness, debts or breakdown in a relationship occur.


There are two types of title to use which have very distinct implications in the case of death.


A ‘joint tenants’ title means that, following the death of one of the borrowers, the property will automatically transfer to the co-owner and not those specified by the deceased in a will.


Tenants-in-common is the other type of title whereby the death of a co-borrower results in the property rights passing onto those nominated in their will. This is the better situation for passing on assets to a spouse, relatives and dependents.


Each borrower should seek independent legal advice on this matter.


5. Know how it could affect your borrowing power

In the eyes of lenders, each co-borrower is liable for the full debt on the property, and with that, the possibility of servicing the loan individually may be used as the basis for your current expenses when you seek to borrow for another property.


Therefore, borrowing with a friend could reduce your future borrowing power. It is worth talking to a trusted financial planner or mortgage broker as to how this could impact the growth of your property portfolio in future.


6. Get adequate insurance cover

As your assets and financial commitments are about to dramatically increase, it is worth considering insurance cover to close this gap.
Further, if you are binded by a co-borrowing agreement, it is important that you are covered if the conditions are proscriptive during times of financial stress.


It is worth considering <a href="https://www.lifeinsurancefinder.com.au/insurance-types/life-cover-death-benefit/">different l</a><a target="_blank" href="https://www.lifeinsurancefinder.com.au/insurance-types/life-cover-death-benefit/">ife insurance options</a>, health cover, <a target="_blank" href="https://www.google.com/url?q=http%3A%2F%2Fwww.lifeinsurancefinder.com.au%2Finsurance-types%2Fincome-protection-insurance%2F&amp;sa=D&amp;sntz=1&amp;usg=AFQjCNFYYmH4qliEzgNpgBV_En2GfeEYqw">adequate income protection</a> and home and contents insurance are all worth considering.


Lets face it, buying a property with a friend is not a decision to be taken lightly. Do it with some careful thought and it could be a savvy move, but be prepared to face friendship tests along the way. With proper preparation, you may just find yourself gaining memories rather than losing friends in the long run.


Adrian Barclay is a personal finance writer for the comparison website <a target="_blank" href="https://www.homeloanfinder.com.au/">HomeLoanFinder.com.au</a>
 
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Six important rules for buying a property with a friend

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Choosing between a three-year or five-year fixed-rate home loan is an important decision. Fixed-interest loans are great for your security, allowing you to lock in a predictable home loan repayment amount for the years ahead. The drawback is inflexibility. If you want to sell, renovate or make additional repayments in the near future, a fixed-interest loan may not be the best option.
Below are the considerations for choosing a fixed interest rate loan:
1. How long do you expect to hold the property?
Homeowners seem to be lulled into a false sense of permanence with bricks and mortar. While homes and units are there for the long-term, your financial commitment to it need not be. According to finance expert Noel Whittaker, “the average house changes hands every seven years and often people’s circumstances change and they are forced to change and incur exit costs.” So, if you lock in a five-year fixed home loan three years into your homeownership, on average, you may sell it before. This can be an extremely costly way to handle home ownership. The table below highlights an example of early repayments costs. The below is an example of the early repayment adjustment costs alone, before break fees are taken into account: Fixed-interest loan basic early repayment adjustment example:
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="156">
Original loan amount
</td>
<td valign="top" width="156">
$400,000
</td>
</tr>
<tr>
<td valign="top" width="156">
Loan term
</td>
<td valign="top" width="156">
25 years
</td>
</tr>
<tr>
<td valign="top" width="156">
Fixed period
</td>
<td valign="top" width="156">
5 years
</td>
</tr>
<tr>
<td valign="top" width="156">
Repayment type
</td>
<td valign="top" width="156">
interest only
</td>
</tr>
<tr>
<td valign="top" width="156">
Time elapsed
</td>
<td valign="top" width="156">
4 years
</td>
</tr>
<tr>
<td valign="top" width="156">
Difference between IR and market swap rate
</td>
<td valign="top" width="156">
2.315%
</td>
</tr>
<tr>
<td valign="top" width="156">
Early repayment adjustment
</td>
<td valign="top" width="156">
$9,260
</td>
</tr>
<tr>
<td valign="top" width="156">
Less inflation adjustment (at 2.1% p.a.)
</td>
<td valign="top" width="156">
$194.46
</td>
</tr>
<tr>
<td valign="top" width="156">
Plus exit fee
</td>
<td valign="top" width="156">
$400
</td>
</tr>
<tr>
<td valign="top" width="156">
Total early repayment adjustment
</td>
<td valign="top" width="156">
$9,465.54
</td>
</tr>
</tbody></table>
For the above example, this borrower has repaid their loan on the fourth year of a five-year fixed home loan. There may have been reasons that have forced the borrower’s hand, such as to repay debts from business failure or to refinance for a crucial structural renovation. In this example, the loan was broken one year early on a five-year fixed loan at an early repayment cost of just over $9,000. This is a significant cost. If your sole purpose was to finance a renovation, you’ve just lost the funds equivalent to a nice new kitchen.
2. Do you need to renovate within this period?
Even something as simple as obtaining finance for a renovation is easier when you’re on a variable-rate loan. Variable construction and line of credit loans are the main financing tools for a renovation. So, if you’re planning to renovate, fixing the interest rate may not be the option. 3. Are you going to make significant additional repayments?
Not many fixed loans allow extra repayments. Lenders that do tend to only offer limited additional repayments at best. Also, you can’t get a 100% offset account on a fixed loan. This is great for offsetting interest charged to the loan — so the ability to pay off your loan early and reduce interest are severely limited on a fixed interest loan.
4. How to choose between three or five year loans?
Of the two ways to choose, one is a constraint, and one is an opportunity. Firstly, the constraint is the length of time that you can bear the inflexibility of the fixed-interest period. If fixing your interest rate for five years suits your situation, all the better. But if you are thinking of refinancing for a renovation in three years or even upgrading to nicer place, then a three-year fixed period is probably the longest period you should commit to.
This then leads to the second decision. If you’ve decided that you’re staying put for five years or more without renovation, then you have the enviable position of choosing based on interest rate and not interest rate speculation. At the time of writing, interest rates for three-year fixed loans were lower in terms of headline interest rates. If you were going on that factor alone, three-year interest rates would be the go. But, for the security of fixed interest rates for an extra two years, 0.56% p.a. may not be (time will tell — variable interest rates could also drop) isn’t too much to pay considering <a href="https://www.loansense.com.au/historical-rates">historical home lending rates</a><a href="https://www.loansense.com.au/historical-rates">.</a> The average standard variable home loan rate was above 8% p.a. in 2008 (CBA).
Why lock-in? Fixed interest rates can be a useful option for borrowers who desire security and have a strict budget as to the rise in interest rates that they can afford. A rule of thumb is to budget for interest rates at 2% above the current rate if you’re on a variable home loan. But, if you don’t want to budget for that scenario, a fixed loan is the way to go.
When is the best time to fix?
When fixed interest rates are lower than variable rates. Or while variable rates are likely to rise. Tips for fixed rate loans: - check which variable interest rate the loan reverts to
- if you want a bit more flexibility, <a target="_blank" href="https://www.homeloanfinder.com.au/split-loan-comparison">consider a split rate home loan</a>.
 Latest rates for 3 year fixed loans:
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="78">
Provider
</td>
<td valign="top" width="78">
Loan name
</td>
<td valign="top" width="78">
Rate
</td>
<td valign="top" width="78">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="78">
UBank
</td>
<td valign="top" width="78">
<a target="_blank" href="https://www.homeloanfinder.com.au/ubank-home-loans/ubank-uhomeloan-3-year-fixed-rate-refinance-only">UHomeLoan 3 Year Fixed — Refinance Only</a>
</td>
<td valign="top" width="78">
5.13% p.a.
</td>
<td valign="top" width="78">
5.26% p.a.
</td>
</tr>
<tr>
<td valign="top" width="78">
eMoney
</td>
<td valign="top" width="78">
<a target="_blank" href="https://www.homeloanfinder.com.au/emoney-home-loans/emoney-plus-3-year-fixed-rate-full-doc-home-loan">3 Year Fixed Rate Full Doc</a>
</td>
<td valign="top" width="78">
5.40% p.a.
</td>
<td valign="top" width="78">
5.48% p.a.
</td>
</tr>
<tr>
<td valign="top" width="78">
Aussie
</td>
<td valign="top" width="78">
<a target="_blank" href="https://www.homeloanfinder.com.au/aussie-home-loans/aussie-optimizer-standard-fixed-rate-home-loan">Optimiser 3 Year Fixed</a>
</td>
<td valign="top" width="78">
5.39% p.a.
</td>
<td valign="top" width="78">
5.59% p.a.
</td>
</tr>
</tbody></table>
 
Latest rates for 5 year fixed loans:
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="78">
Provider
</td>
<td valign="top" width="78">
Loan name
</td>
<td valign="top" width="78">
Rate
</td>
<td valign="top" width="78">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="78">
Aussie
</td>
<td valign="top" width="78">
<a target="_blank" href="https://www.homeloanfinder.com.au/aussie-home-loans/aussie-optimizer-standard-fixed-rate-home-loan">Optimiser 5 Year Fixed</a>
</td>
<td valign="top" width="78">
5.69% p.a.
</td>
<td valign="top" width="78">
5.68% p.a.
</td>
</tr>
<tr>
<td valign="top" width="78">
eMoney
</td>
<td valign="top" width="78">
<a target="_blank" href="https://www.homeloanfinder.com.au/emoney-home-loans/emoney-plus-5-year-fixed-rate-full-doc-home-loan">5 Year Fixed Full Doc</a>
</td>
<td valign="top" width="78">
5.95% p.a.
</td>
<td valign="top" width="78">
5.71% p.a.
</td>
</tr>
<tr>
<td valign="top" width="78">
ME Bank
</td>
<td valign="top" width="78">
<a target="_blank" href="https://www.homeloanfinder.com.au/members-equity-bank/me-bank-ultimate-offset-member-package-5-year-fixed">SMHL Ultimate Offset Account Member Package</a>
</td>
<td valign="top" width="78">
5.79% p.a.
</td>
<td valign="top" width="78">
6.14% p.a.
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure
Adrian Barclay is a personal finance expert from <a target="_blank" href="https://www.homeloanfinder.com.au/" rel="nofollow">HomeLoanFinder.com.au</a>.
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How to choose between three-year and five-year fixed loans

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Refinancing is an expensive process to get wrong, yet Australians haven’t quite yet mastered it. According to the CBA MFAA Home Finance Index (Sept. 2011), only 64% of borrowers who refinanced felt they had benefitted from the process.
Why? Ill-considered switching can result in costs that are greater than the interest rate saving that can be readily recouped within two years.


Secondly, some fall for the trap of refinancing to an account with lower levels of customer service or less flexible features.
Here are a few considerations to think about when refinancing, along with tips to succeed with the transition:


1. Exit fees
Variable home loans financed before July 2012 can suffer from hefty exit fees. It is worth crunching the true costs of exiting against the potential gain.



There are also early repayment fees and discharge fees to factor in.



2. Refinance after a fixed loan period

Due to the high break costs still charged on fixed interest loans, it usually isn’t worth refinancing until the fixed interest period on a loan ends.



3. Ongoing fees

Check the comparison rate, because it is a good indicator of the ongoing fees. The headline interest rate alone does not indicate the true ongoing value of a home loan. 4. Credit record

If a borrower’s credit record has worsened since the original home loan was approved, this will drive up the cost of borrowing and potentially negate the benefits of refinancing. MyCreditFile.com.au is a way for borrowers to access their free credit file report. 



Searching for ‘specialist home loans’ (industry parlance for bad credit home loans) and comparing interest rates on such products will give an indication if refinancing is worthwhile following credit blemishes.



5. Property valuation
Falling property values don’t affect the equity of home loan until refinancing is attempted. hether your home has changed in value



An increased valuation will work in your favour — reducing the interest premium due to your lower loan to value ratio. A decreased valuation can cost you an increased interest rate premium or even push you into <a target="_blank" href="https://www.homeloanfinder.com.au/lenders-mortgage-insurance">Lenders Mortgage Insurance (LMI)</a> territory. 



In addition, properties mid-renovation don’t value well, which makes refinancing mid-renovation challenging.



6. Entry fees &lt;!--[endif]--&gt;

Common refinancing costs include application fee, valuation fee, loan transfer fee, settlement fee and registration fee.



The showstopper is when a borrower's <a target="_blank" href="https://www.google.com/url?q=http%3A%2F%2Fwww.homeloanfinder.com.au%2Fborrowing-power%2Fcalculate-your-lvr&amp;sa=D&amp;sntz=1&amp;usg=AFQjCNH3-KFwL-esQ9J0O58fvs-YhcL_6A">Loan-to-Value Ratio</a> (LVR) is still greater than 80%, as <a target="_blank" href="https://www.homeloanfinder.com.au/lenders-mortgage-insurance">LMI </a>can be payable in full again. This can cost in excess of $10,000. 





Tips for refinancing: 1. Request your credit record

2. Get a private valuation of your property

3. Approach your current lender first

4. Do your sums for costs leaving and entering a new loan

5. Don’t refinance until your LVR drops below 80% — otherwise LMI is payable in full, again.

6. Consider what you need in the whole loan package, from loan rate, flexibility, extra credit and customer service.

7. In general, construction loans can help save on interest while renovating, as interest only starts to be accrued on the payment installments that are withdrawn. Where can you go to refinance?

- Your bank

- A <a target="_blank" href="https://www.homeloanfinder.com.au/">comparison website</a>

- A <a target="_blank" href="https://www.homeloanfinder.com.au/mortgage-broker">mortgage broker</a>



Adrian Barclay a personal finance expert from <a target="_blank" href="https://www.homeloanfinder.com.au/">HomeLoanFinder.com.au</a>
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Six things to consider before refinancing: Adrian Barclay

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The question on everyone’s mind at the beginning of last month was undoubtedly around the RBA’s decision to cut rates. Anyone from property analysts to deposit zealots looked to lenders after 25 basis points were trimmed off the official cash rate. Now that the dust has settled, who passed on the full RBA cut? The good



Australia’s fifth largest lender, ING Direct, earns the gold star for the first to move after the RBA announcement. It passed on the full cut to its mortgage holders. You might remember it also passed the full rate cut on in October, too. 



Other lenders impressing consumers this year include newcomer Yellow Brick Road and MyRate. They all passed on the full quarter-percentage-point cut.



The not so good



The big four, including laggard ANZ, cut by only 20 basis points. Add to the naughty list Bank of Queensland, Suncorp, Bankwest, ME Bank, AMP, State Custodians and RAMS to name some of the vast majority of lenders who didn’t pass on the full cut. 



So why aren’t our lenders passing on the full cut to borrowers?



Lenders have argued the increased cost of funding is to blame. 



After the fallout from the global financial crisis settled, Australian lenders sought to protect themselves from the unstable overseas markets they previously gathered funds from. To do this they upped their sourcing of domestic funds through deposits from under<a href="https://www.rba.gov.au/speeches/2012/sp-ag-220312" target="_blank"> 40% in 2007 to a figure now around the 50% mark</a>. 



There has been an explosion in popularity in the humble term deposit because of this — it now makes up approximately <a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/publications/bulletin/2012/mar/5" target="_blank">45% of a major bank’s deposits, up from 30%</a> in 2007. Inevitably there are downsides to this. Lenders are now claiming increased competition in this sector is causing funding costs to skyrocket.



Borrowers may be angry that their lender hasn’t passed on the full rate cut, but let’s look at the RBA December decision itself. RBA deputy governor Philip Lowe admitted the last cash rate cut was partially because lenders haven’t been passing on previous cuts in full. In fact he says the cash rate is about <a href="https://www.news.com.au/business/breaking-news/banks-small-cuts-forcing-rbas-hand-lowe/story-e6frfkur-1226530773635" target="_blank">1.5% lower than</a> what it would’ve been if lenders were playing nice.



It’s true the last time the official cash rate stood at 3% was during the height of the GFC in 2009. The average mortgage rate then was <a href="https://blog.rpdata.com/2012/06/will-the-gap-between-the-cash-rate-and-mortgage-rates-come-back-to-normal-levels-not-likely-in-the-near-future/" target="_blank">5.8%</a> — much lower than what it is now. Even if we take the 150 basis points worth of cash rate cuts Mr Lowe is talking about conservatively, borrowers don’t have too much to complain about. 



Aside from the obvious, what’s changed since 2009 is that there remains potential for further rate cuts on the 2013 horizon. ANZ chief economist Warren Hogan believes about <a href="https://www.theaustralian.com.au/business/economics/rates-will-be-at-all-time-low-of-2pc-by-2013s-end-anz-economists-say/story-e6frg926-1226538403502" target="_blank">100 basis points worth of them</a>. In addition our lenders are safer and as a result at-call savings accounts and term deposits will experience more competitive rate battles in the long term. 



In my next post, I’ll share the predictions of the nation’s top <a href="https://www.homeloanfinder.com.au/rba-cash-rate">RBA cash rate picking economists.</a>



Adrian Barclay is a personal finance expert at <a href="https://www.homeloanfinder.com.au/">HomeLoanFinder.com.au</a>

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Why Australian lenders don't pass on RBA rate cuts in full

<a href="https://www.apartments.com.au/architects/bates-smart">Bates Smart</a> is one of Melbourne's longest standing architecture firms.

Founded in Melbourne in 1853 by Joseph Reed, the firm began as Reed &amp; Barnes and has evolved through various partnerships before adopting the Bates Smart name in the 20th century. With a continuous presence spanning more than 170 years, the practice has played a pivotal role in shaping Melbourne’s architectural identity.

In the 19th century, Bates Smart designed several of Melbourne’s enduring landmarks, including the Royal Exhibition Building (1880), a UNESCO World Heritage site, and the Melbourne Town Hall. The firm’s influence continued into the 20th century with notable works such as Ici House (1958), considered Melbourne’s first modern skyscraper and a milestone in post-war Australian architecture.

One of their landmark designs was&nbsp;The First Church of Christ, Scientist, at 336-340 St Kilda Road. The building, which is listed on the Victorian Heritage Register, was designed by Bates, Peeble and Smart with construction completed in 1922. Architecturally, the building is significant as a rare example of early twentieth century classicism applied to a religious building. Historically, the building is significant as the first church of the Christian Science movement.

Melbourne developer Time &amp; Place decided to bring Bates Smart back to the area to design their next residential apartment project, Park Modern.

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<a href="https://www.urban.com.au/new-apartments/park-modern-south-melbourne-1-middleton-lane-south-melbourne-vic-3205">Park Modern</a>, on one of the largest island sites on the Melbourne CBD fringe, bordered by Dorcas Street, Wells Street, and Middleton Lane, will comprise two sculptural towers. It is being positioned as a design-forward response to evolving owner-occupier preferences in the Domain precinct.

Tim Price, Director at <a href="https://www.apartments.com.au/developers/time-place">Time &amp; Place</a>, says&nbsp;Bates Smart have got a footprint on this city, probably like no other architect.

"It’s a really nice kind of next chapter story, that they created from a design perspective so long ago," Price told Apartments.com.au.

Park Modern will be the third time Time &amp; Place has worked with Bates Smart, having successfully designed and delivered Collins House and Opera on St Kilda Road together.

The brief focused on creating a built form that would feel contextually appropriate while offering a contemporary evolution of inner-city apartment living.

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The focus for Park Modern is squarely on owner-occupiers.

“It’s not always about downsizing," Price says.

"Sometimes it’s just about creating a space which is easily maintained, lock up and leave, reflecting people’s aspirations, whether they’re entertainers, big dining room spaces, big open terraces, they’re important parts of any design consideration.”

The building includes a mix of one, two and three-bedroom apartments, as well as penthouses, with layouts and floor plans designed to suit a broad demographic. The architecture has been shaped to capture&nbsp;view corridors to the Botanic Gardens, Port Phillip Bay and the CBD skyline.

Each apartment has been oriented to maximise natural light and provide a clear outlook, elements often cited by owner-occupiers as key criteria.

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Rather than defaulting to a generic luxury offering, the amenity strategy at Park Modern reflects specific insights into how residents want to live. The ground floor will include co-working areas, wellness facilities, and a concierge-led lobby that blends indoor and outdoor design cues.

“Wellness has become a more thoughtful consideration, not just gyms or lap pools, but things like magnesium plunge pools, saunas, daybeds, and studio spaces for Pilates and the regular cardio workout,” says Price.

One notable inclusion is a substantial porte-cochère, a covered vehicle drop-off zone integrated into the site plan. It’s a feature rarely seen in inner-urban developments and speaks to the team’s emphasis on ease of arrival and departure for residents and guests.

A display suite for Park Modern is now open by appointment, giving prospective buyers an early look at the project.

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Joel Robinson

100 years on, Bates Smart returns to South Melbourne's Domain Precinct to design Park Modern

One of the most significant beachfront projects ever proposed for the small suburb of Miami on the Gold Coast, has taken a major step forward.&nbsp;Monaco Property Group has secured approval for <a href="https://www.apartments.com.au/new-apartments/nalu-miami-122-marine-parade-qld-4220">NALU</a>, a $500 million development comprising just 45 ultra-luxury residences on the iconic former Nobby’s Outlook site.

Acquired by <a href="https://www.apartments.com.au/developers/monaco-property-group">Monaco Property Group</a> in 2024 for $70 million, the rare 7,238 sqm Marine Parade parcel boasts more than 80 metres of uninterrupted ocean frontage.

With approvals now secured, Monaco Property Group will move NALU into its delivery phase. The project has been designed by&nbsp;<a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, who collaborated with&nbsp;<a href="https://www.apartments.com.au/landscape-architect/ldg-landscape-architecture">LDG Landscape Architecture</a> and <a href="https://www.apartments.com.au/interior-designers/tom-mark-henry">Tom Mark Henry Interiors</a>&nbsp;to create the low-rise building, its landscaping, and interiors.

<img alt="NALU" data-entity-type="file" data-entity-uuid="3fdf578e-7cc4-4b17-bbc2-ba853522a5d8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/122_Marine_Parade_002.jpg?VersionId=zFhJWVzX0jmCO.5iIIxNELImHesTjWS4" />

Residences will range from 237 sqm layouts to beachfront homes exceeding 1,400 sqm.

At the heart of the project is a 2,200 sqm lifestyle precinct with a bathhouse, fitness centre and resort-style pool, elevated by a concierge service.

Jonathan Grasso, Co-Founder of Monaco Property Group, said the council approval marks an exciting milestone for NALU, which will launch in Q1 2026.

“The project will now progress toward construction, working alongside our world-class collaborators to bring NALU to life," Grasso said.

“Our vision is to create a legacy project for the Gold Coast, one that not only honours the history of the site but also elevates its future, setting a new standard for coastal living in Australia. NALU embodies the pinnacle of design and location and will stand as an enduring icon of prestige and liveability.”

<img alt="NALU" data-entity-type="file" data-entity-uuid="6ae8545b-87ca-4dea-90ed-ac273ec6515d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Image7.jpg?VersionId=Wnmie4bu3x2WQonnG4Pwmh39NdZVKeOV" />

Originally developed in the 1970s as Nobby’s Outlook and later refurbished in 2019 as Nalu, the property has long held a place in the local community’s coastal identity. The new vision will build on this legacy, creating luxury residences that capture ocean views while fostering a lifestyle defined by wellness, connection, and ease.&nbsp;

Beyond its residential offering, NALU will deliver significant economic benefits to the Gold Coast through job creation and opportunities for local suppliers and contractors. Construction is anticipated to commence in early 2026, with completion expected in Q3 2028.

Monaco Property Group approved for $500 million NALU apartments on Miami beach

The most elevated residential tower in Palm Beach, <a href="https://www.apartments.com.au/new-apartments/corallo-palm-beach-5-palm-beach-avenue-palm-beach-qld-4221">Corallo</a>, has officially launched this week, however only a handful of buyers will have an opportunity to buy in to the 17-storey project.

The $200 million mixed-use project includes ground floor dining and retail and is considered so valuable its developer, <a href="https://www.apartments.com.au/developers/changfa-group">Changfa Group</a>, will be staging its release of one-, two- and three-bedroom apartments and penthouses to the market.

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<a href="https://www.apartments.com.au/project-marketer/colliers">Colliers</a> International, Director, David Higgins, said the development’s location just metres from the beach on the corner of Palm Beach Avenue and the Gold Coast Highway influenced the sculptural design by the acclaimed Plus Architecture studio.

“<a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a> locals understand the rare opportunity here at Corallo, particularly being the tallest building in the suburb and its proximity to the beach and local restaurants, and they’ve represented the bulk of pre-launch enquiries,” Higgins said.

“The orientation of the apartments captures views of the coastline from Surfers Paradise to Currumbin, and the diversity of floor plans and apartment types provide an exceptional level of choice.

“The first release includes just 59 one-, two and three-bedroom apartments and two half-floor penthouses, with flexible use designed to appeal to both owner-occupiers and investors."

&nbsp;

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In addition to the ground floor amenity, residents will also have access to a private dedicated wellness level offering 734 sqm of resort-style amenities including a pool, cold plunge, wet deck, steam room, sauna, gym, day bed, fire pit, barbecue area, dining area and yoga/stretch deck.

The project is located within walking distance of Tallebudgera Creek, Burleigh Heads village, Currumbin Alley and Palm Beach Currumbin High School. The Gold Coast Airport is under 10 minutes away.

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Higgins said Palm Beach remained a hotly contested suburb for home buyers, with prices doubling in the past five years.

“What makes Corallo so appealing to the local market is the diversity of apartment types and pricing, with one-bedroom apartments starting from $841,000 and two-bedroom apartments starting from $1.34 million,” he said.

“The ground floor retail and dining offering will further expand on Palm Beach’s village atmosphere and create a meeting place for locals, and those opportunities for connection are highly valued.”

&nbsp;

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The on-site sales display, which includes a fully fitted kitchen, bathroom and bedroom, will be open until early works commence in Q1 2026. Each residence at Corallo will feature premium finishes including natural stone, artisanal brickwork, and warm copper accents.

Changfa Group has a two-decade history of delivering premium developments in Australia and internationally, having recently completed its collection of premium townhomes at Lyra, Hope Island, as well as apartment projects in Leichhardt, Carlingford, and Chatswood in New South Wales.

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$200 million Corallo Palm Beach launches with limited apartment release

In a move that aligns with NSW's accelerated planning incentives for affordable housing, developer&nbsp;<a href="https://www.apartments.com.au/developers/the-one-collection">One Collection</a> has revised its Hills District apartment plans, and taken it to the NSW Government, to secure approval.

The developer, which is currently delivering Horizon Hurstville, is seeking to add 80 more apartments to its <a href="https://www.apartments.com.au/new-apartments/the-one-castle-hill-16-dawes-avenue-nsw-2154">Castle Hill development</a> near Castle Towers. They already have approval for 280 apartments across eight six-storey buildings.

<img alt="One Collection" data-entity-type="file" data-entity-uuid="b3c298ba-1cc5-4db7-9872-607c75f8ceca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-10-13%20at%2010.19.22%E2%80%AFAM.png?VersionId=wN9KpFIu5ENSGZLLsaZgXQHrXcwEO3Vd" />

Now on the desks of the NSW Department of Planning is 360 apartments, 48 of which will be dedicated to affordable housing.&nbsp;Affordable housing is to be “fully integrated within the building and visually indistinguishable,” according to the planning submission.

The 15,697 sqm block, an amalgamation of 16 sites, spans across Dawes Avenue, Hughes Avenue, and Camdan Crescent, sits 550m from Hills Showground Metro Station.&nbsp;

"The existing context is quickly changing from free-standing homes into residential flat buildings in line with the Hills Showground Precinct planning framework," Place Studio noted.

<img alt="Castle Hill" data-entity-type="file" data-entity-uuid="3ec24948-c185-48fa-af8b-ed25adf302bf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-10-13%20at%2010.19.04%E2%80%AFAM.png?VersionId=zNDX.IeRROX1RlDeYcS38xn8w_dqgU2t" />

They said the design was informed by the site's unique condition of having three street frontages and was developed to to respond sensitively to iots surrounding context.

"The design adopted a conventional perpendicular alignment to the primary street frontage. The massing of the development was carefully modulated to align with the evolving character of the neighbourhood. The design ensured that the scale was not excessive or out of context, but instead contributed to a cohesive urban form consistent with emerging developments in the area."

<img alt="Castle Hill" data-entity-type="file" data-entity-uuid="f83ffdaa-f960-469d-b6fe-abcece57c9ef" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-10-13%20at%2010.19.09%E2%80%AFAM.png?VersionId=4oKlCyfaKes7jLi1_EMoqa46w2h_YvDZ" />

The apartment mix will be 46 one-beds, 168 two-bed apartments, and 146 three-bedroom units, with 631 parking spaces proposed.

Along the street frontages, the building heights are four storeys with a 7.5 metre setback, and eight storeys with an 11.5 metre setback. It should cost about $150 million to build.

One Collection works hand-in-hand with the respected development and construction firm Masscon, which has built a reputation for leveraging its expertise in the built environment to take on developments others can't. That's what they're achieving at Horizon Hurstville, having taken over the project to deliver it.

First look: One Collection advances plans for Castle Hill apartments

At Yarra’s Edge, <a href="https://www.apartments.com.au/developers/mirvac">Mirvac</a>’s newest tower under construction, <a href="https://www.apartments.com.au/new-apartments/trielle-at-yarra-s-edge-docklands-16-point-park-crescent-docklands-vic-3008">Trielle</a>, sets a new benchmark for elevated living. Rising 45 storeys, 12.5 metres from the Yarra River, the landmark building offers residents access to a private wellness retreat and spa, a resident-only golf simulator, and an elegant lounge, dining and bar complete with a self-playing piano, all without ever having to leave home.

Now, that sense of elevation has reached new heights with the Aerus Sub-Penthouses, a limited release of half-floor riverfront residences on the Collins St axis where the sought-after street meets the Yarra River.

Each Aerus Sub-Penthouse, located across levels 42 and 43, represents the most expansive offering within Trielle, aside from the yet-to-be-revealed crowning penthouses. Spanning between 269 and 301 sqm, these residences are designed to capture natural light and uninterrupted views of the city skyline, Yarra River, and Port Phillip Bay.

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Among the collection are three-bedroom sub penthouses, complemented by a media room, and expansive four-bedroom layouts. All include panoramic living areas and oversized master suites with luxury ensuites reminiscent of a five-star hotel, complemented by dedicated dressing rooms finished in timber and natural stone.

The interiors have been crafted by <a href="https://www.apartments.com.au/architects/mirvac-design">Mirvac Design</a>, the developer’s award-winning in-house architecture and design team. Every material has been chosen for quality and longevity, from sculpted stone island benches with feature soft wash LED lighting to bespoke joinery and chevron timber oak flooring.

Kitchens are fitted with a BORA induction cooktop with integrated downdraft extractor, alongside Gaggenau appliances, including a fridge, freezer, and wine fridge. The adjoining butler’s pantry incorporates the exclusive Gaggenau Minimalistic Series including oven, steam oven, microwave, coffee machine and warming drawer, all concealed behind handleless glass panels for a clean, integrated presentation. Bathrooms feature custom Apaisar freestanding baths and basins and natural stone benchtops, continuing Mirvac’s design emphasis on tactile, timeless materials.&nbsp;

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Michael Wiener, Design Director at Mirvac, says The Aerus Sub-Penthouse embodies the apex of Mirvac’s design ethos.

“Moving through your home is like walking on air - a private sanctuary where the craftsmanship is refined, the proportions generous, and the flow so effortless, you feel completely at ease in the sky,” Wiener says.

“In Aerus, we wanted to create a sense of weightlessness - a home that feels suspended in the skyline, full of light, grounded in luxury.”

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The Aerus Sub-Penthouses are expected to attract a mix of local and international buyers seeking a long-term residence of scale and quality in a riverfront setting, from returning expats to established families and business owners who value privacy, craftsmanship, and convenience within walking distance of the CBD.

With an unmatched suite of amenities, Trielle is the most extensively appointed development Mirvac has created to date at Yarra’s Edge. Within the tower will be The Oasis, a 900 sqm podium rooftop wellness retreat designed in collaboration with spa expert Naomi Gregory. Located seven storeys above the Yarra River promenade, it features a 25-metre lap pool, spa and sauna, hot magnesium spa, biophilic gym, yoga and Pilates studio, cold-pail contrast treatment, and day spa treatment rooms. Further amenities include a piano lounge, bookable dining room, cinema room, golf simulator studio, games room, teppanyaki bar, dog wash bay, and two flexible work hubs, The Biblioteca library and Mills Place office space, catering to residents’ evolving lifestyle needs.

Construction of the $350 million tower is underway through Mirvac’s in-house construction arm, with completion anticipated for mid-2027.

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Adrian Barclay

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