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A new financial year begins this month and for some lucky people, it may bring a handsome income tax return along with it. If you are expecting a nice return and intend to add this to, or make a start to, a deposit for your first property purchase, well done!
Whether it be that first home purchase that you hope will leapfrog you into an investment career, or making that first property buy an investment, as you save for your deposit over the years leading up, you’ll have plenty of time on your hands to prepare. As you get within a few months of your target property purchase time; the due diligence and research you need to conduct ramps up considerably.
But what if you are still a year, two years, or further, away from purchasing? Other than saving the money in your bank account, there is plenty that can be done, so today I’ll cover off some basics that you should really be doing in this slow build-up. <a imageanchor="1" href="https://1.bp.blogspot.com/-zwd_PXqYuuE/Uc6Nf3c9l2I/AAAAAAAAAf8/ijz839PsA4g/s850/Buying+your+first+property+home+investment+in+Australia+tips+to+help+you+save+more+deposit.jpg"></a> Credit history – Sort out those credit cards and personal loans Though you may be more than twelve months away from applying for a mortgage, it is important you start to build a positive credit rating, and for two reasons:
-          Firstly, if you have several credit cards, a personal loan, and any outstanding unpaid debts or bill, you can imagine how poorly this reflects on your credit history, and restricts your borrowing capacity if you still have all these overheads when you make your application. Against some popular belief though, sometimes having just one or two personal debts (like a single credit card or modest personal loan) that features a diligent (never late; and where possible; beyond making the ‘minimum repayment’) and sterling payment history. This can be good evidence of a committed repayment-maker, and may work favourably for some applicants.
-          More importantly though; if your property goals are very ambitious and you perhaps have not formed good spending and saving habits, now is a good time to reign that in and take stock of your self-discipline and self-restraint. Having entered my thirties recently, I have become a much more disciplined and well-budgeted individual compared to my early twenties. These days though, it is not uncommon for young Australians in their late teens and early twenties to develop property ambitions early on. I purchased my first property when I was twenty-five and I can tell you, in the two years or so leading up to that achievement, I really had to take stock of credit card debts and begin showing an evidenced savings approach. It is important to do this to avoid future disappointment.
 
Mortgage Broker – Get one to do a borrowing capacity check now, even if you do not use them Most mortgage brokers effectively work ‘for free’ to their client. Like some ‘no win, no fee’ solicitors, mortgage brokers typically only get paid for their service as a commission from the lender once you are unconditionally approved for, and take up, a mortgage with a lender.
However, lenders offer so much more than just helping with the process and finding you the best rates/package features in the market.
Lenders have access to software that allows them to do a run across dozens and dozens of lenders, using your personal data, to give a pretty precise ‘maximum lend capacity’ for each of the lenders. Also, they will identify which lenders, after considering your current (or future-predicted) financial situation, will flat-out refuse to lend to you (or lend to you an amount or a product that does not work for you).
So contact a broker now, give them either your current financial situation/current deposit amount, or a future-predicted situation in twelve or more months’ time and have them run their report on who will lend to you, and by how much. Sometimes the results are startling – and this can be positive or negative.
If the amount you had in mind is nowhere near the reality of even the most generous lender’s maximum lend rate, it could be a time to reassess your goals or rethink your first purchase strategy. Conversely, if your aspirations are more conservative, you may be pleasantly surprised by how much various lenders will give you, assuming a certain set of personal circumstance variables.  <a imageanchor="1" href="https://3.bp.blogspot.com/-3JLIr19tu-8/Uc6NfuN6SuI/AAAAAAAAAgA/zmQLdN9t-RU/s500/Saving+for+your+first+house+purchase+Australia+research+how+to+save+for+your+first+property+and+tips+and+tricks+to+do+this.jpg"></a> Develop a ‘property needs assessment and usage over time’ document This does not need to be ‘War and Peace’. Rather it should simply be a bullet-pointed word document that forms the plan for how you intend to you use this property over time and what the ‘must-haves’ for this property are. This is really just to ensure you form a plan and stick to it.
It is no good saving up for a modest apartment to use solely as an investment property; then twelve months down the track when your savings goal is achieved, you throw the plan out the window and decide you want to by a lavish home to live in instead. This will throw back to the drawing board, right at the time when you should be ready to act/execute on all of the planning and due diligence you’d done.
This could see you making hasty or foolish buying decisions in light of an inconsistent or poorly kept-to plan.
This comes back to what I mentioned earlier about developing self-discipline. It is important to have goals and stick to them. The other element of this plan is how the property will be used over time. Though I am a big advocate of purchasing property for a single use (say, home or investment) and not detouring from that usage, I have made exceptions to this for a couple of property purchases over the years too.
So this plan will look very different depending on whether it is bought as a home or as an investment. Here is a shortlist of questions to consider answering, in writing your list:
Home purchase: -          Is it a starter home? I.e. something modest that you’ll have for just a few years, then upgrade when you have the means to move into a bigger/more expensive home. -          Will it always be a home? I.e. will you sell it to move to a bigger home, or keep it as an investment, thereby changing the property usage? If so, have a think about what the ramifications of this will be, before you buy. -          Are you looking for a home that is established, renovated already, with not a thing to do? Or, are you looking at taking something on that requires a bit of work over the first few years, to bring up to scratch?
Investment property: -          What is your risk profile? Identify how much risk you are willing to take on and this will usually dictate the area, type of dwelling, and overall investment you pursue. -          Is this the only one? Do you just want one investment that you can keep over the years and pay off over time, so you have it as a revenue-stream when you retire? Or is this the first of what you want to be many investment properties? Think about the consequences. -          Depending on how you answer the above question; what are you seeking most from this investment – capital growth (the property increasing in overall potential sale value over time), or rent return (where the monthly rent more than pays for all expenses and produces you positive income each month).
In a utopian world, we’d all be buying properties that can do both; but this is often a challenge to find! Particularly for your investment property you may be better off pursuing on type of return initially.
Investors who are content with buying one property only typically focus more on capital growth over time. Portfolio-builder on the other hand will sometimes value rental return more; as it can enable them to have good enough cash-flow to progress to their second purchase and beyond.
 
Educate yourself – You need to do this proactively; wisdom is rarely imparted, rather it is requested You have plenty of time up your sleeve while you are saving, so it is time to school up! Be like an interrogator with information that comes to you. Some would-be buyers take a passive approach to this, casually overhearing conversations with friends, or flipping through a magazine and a story on property happens to come up.
Whilst this can be nice to get a feel for the climate, this is not proactive research. Proactivity means you need to seek out independently, the answers that matter to you, rather than being influenced by other people’s casual conversations or news-grabbing dramatic headlines about the property market/industry.
Even as you read this article; ask yourself – ‘did I casually stumble upon it and read it because I was bored?’ Or were you actively Google-searching something like ‘how to buy your first house’ or something similar? Once you have written your word document above, you’ll have lots of questions you’ve created for yourself.
Pursue these answers proactively and independently; and do not be afraid of being taken on a tangent every time you learn something new (I.e. you open a second browser window to search about something you read in the first browser window!).
As I say above, I believe that wisdom is rarely imparted, rather it is requested. In the end though, the key to planning a successful first property buy – be it home or investment – is to remain active.
Do not become passive and do not push out all of your pre-purchase tasks as ‘things I can do later’. Instead of using your feet to toe-tap and wait for information and opportunities to come to you, use your feet to hit the pavement and start preparing. The key to a successful purchase – and especially to a successful property investment – lies in proactivity and planning, so get started now!
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a target="_blank" rel="nofollow" href="https://propertyspectator.blogspot.com.au/">Property Correspondent.</a>
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Taking the first steps towards your first home: Cameron McEvoy

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It was reported recently in October 2013, the NSW state government made the largest monthly windfall on stamp duty since it began recording such data trends back in 2005.
With over $350 million collected in the month of October, stamp duty is unquestionably one of the biggest revenue raisers for NSW.
However, we shouldn’t get too carried away with what, at face value, appears as a larger than usual money-grab by the state government. The increase in stamp duty revenue also needs to take into account some other market factors, such as near-record high auction clearance rates for the months of August, September, and October of 2013. It is within these two to three months that the state government’s stamp duty tax windfall reported, would have been derived from.
It is safe to call a spade and spade and realise that in NSW, higher than usual auction and private sales data – and thus higher volumes of stamp duty collection as a result – is an indication of renewed buyer and market interest in residential property.
And hey, why wouldn’t there be?
The current property market climate has been something of a perfect storm for home buyers and investors alike in recent months. This is especially evident in NSW. Though housing affordability challenges continue to persist, there are just too many well-received positive factors at play that are stirring home buyer and investor market activity. These include:
-          Some of the lowest interest rates on offer of all time
-          Not only are rates low, but some of the most competitive and cost-efficient two-year, three-year, and five-year fixed interest rate deals are on offer. These deals are ‘security’ music to a first home buyer’s ears
-          Though affordability remains a challenge, property values throughout most of NSW have not risen in as high a proportion as other states in the past 12-24 months
-          Previously the construction industry was in a slump, however it is starting to heave back into prosperity and with more construction upstarts and projects commencing, buyer confidence levels boost
As an investor, my view on stamp duty is in a constant state of flux. Though it prohibits many first home buyers from entering the market initially, it can be argued that it also prevents first home buyers entering the market foolishly and setting themselves up for failure. Yes, saving that initial first home deposit will take a little longer due to the needed stamp duty capital being raised, however it also means buyers need to learn more diligent saving and spending habits in their quest to home ownership.
This can be a good thing for buyers who have unrealistic expectations or a view that their first home purchase should be the ‘forever dream beach house’ that they want, long term. First home buyers need to view stamp duty as a challenge; a necessary evil that means they may need to compromise on certain elements of their first property purchase.
Stamp duty also encourages would-be first home buyers to consider renting longer, and perhaps buying a more affordable investment property to start with, saving first home ownership for a few more years down the track. I personally think this is one of the smarter and more cost-efficient strategies out there.
Say for example your goal is to buy your first home, a $500,000 property, within the next few months and you have your 15% deposit saved. Here’s what you’d be up for if you bought it as a home and lived in it for three years:
-          15% deposit: $75,000 (leaving a mortgage value of $425,000)
-          LMI (Lender’s Mortgage Insurance) because you do not have the needed 20% deposit: around $4,000 (that’s $4,000 of wasted money you can never get back or make any claims on)
-          NSW stamp duty on purchase of $500,000 (payable at time of settlement, remember): $18,010 (yes, that is dead money you can never get back)
-          Other settlement costs (legal, any loan fees, searches): $2,000
-          Total upfront payable: $99,010
Assuming you take out a mostly-fixed loan product (say 30 years), two to three years of chipping away at the mortgage will not make much of a dent, because remember, most 30-year mortgages do not start to make headway until around year #5 or #6. You are also liable to pay hefty interest on your mortgage from day one, because of a substantial $425,000 sized mortgage.
In my view, a better strategy for this home buyer is to rent for a few years, but buy a cheaper investment property up front. Let’s say a modest unit or apartment in middle-outer Sydney suburbs, or a well-located property in a regional centre such as Wagga, Newcastle, or the North Coast. Let’s say you still have that $99,000 upfront budget mentioned above to spend.
-          Buy one $250,000 investment property right away
-          Put down 20% deposit (thus negating the need to pay LMI): $50,000
-          This means you have a loan amount of $200,000. I’d take out a split loan that is 60% fixed for three to five years, and 40% variable (with an offset facility that is redraw-capable). This means 40% ($80,000) of your mortgage is offset-capable
-          NSW stamp duty on $250,000: $7,260
-          Other settlement costs (same as above): $2,000
-          You are ‘all in’ for $59,260 initially
-          As for the remaining $30,000 of savings, don’t spend it, but put it into that $80,000 offset account. This means that for the first few years you are only paying interest on $50,000 of offset plus 120,000 of fixed loan = interest payable only on $170,000
-          Over years one to three you continue to rent and pour savings into that offset account, all the while reducing the interest you pay on the investment property. Then in year three, you pull out your original $30,000, plus three years’ worth of savings revenue. Assuming you save an average $20,000 per year, this will see you back at the $90,000 mark to buy your home with.
-          Oh and let’s not forget some of the tax minimisation benefits that often come with well-purchased investment properties. Even if this saves you only a couple of thousand per year, that’s still an additional $2,000 each tax year that will help to ease the mortgage stress of your big chunky home mortgage, when you are ready to buy your home.
This strategy will not work for everyone or every situation. It is not financial advice and is not to be construed or applied as such. However, it is an example of how renting for a few more years whilst having an investment property up your sleeve, can better your home-buying position later on.
Stamp duty is one of those necessary evils in the property game. It may not always be, but for now, it is. In my view, though stamp duty is an evil, it is not the real problem here – a poor buying strategy mixed with unrealistic buying expectations is. Australian property buyers need to get smarter in their home ownership aspirations and realise that the best course to take isn’t always the direct one.

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Cameron McEvoy is a NSW-based property investor and maintains a blog, <a target="_blank" rel="nofollow" href="https://www.propertycorrespondent.com.au/">Property Correspondent.</a>
 
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The best course to home ownership is not always the most direct one 

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April 24th, 2015 was a significant date in the Australian property investment landscape. Why? On this date, APRA (the Australian Macro Prudential Authority – an institution who helps regulates the rules of play for banks and other kinds of lenders) implemented some new rules / codes of conducts for lenders to adhere to.
The new rules mean that for some lenders who previously had very liberal lending rules and practices for local Australian property investors; had to tighten them up to comply with APRA’s policies.
Whilst it is still early days; we have seen a number of “Big 4″ lenders, as well as many other tier #2 and tier #3 lenders, begin to implement more restrictive borrowing rules for investor-based loans.
These have come in all shapes and sizes, such as (but not limited to):
- Restricting maximum LVR (loan to value ratio) allowance for ‘investment’ category mortgages from, say, 90/10 to 80/20. Part and parcel with this has been some lenders refusing to allow LMI (Lender’s Mortgage Insurance) as a capitalised cost on to loans at those higher (say, 90/10) LVR ratios.
- Removal of discounted interest rate package deals for their mortgage products; again, for investor-only mortgages (many lenders have retained discounts for owner-occupied, or PPOR – Principal place of residence – loan products)
- In light of further interest rate cuts from the RBA in recent months; some lenders have; whilst passing on rate ‘cuts’ not actually reduced their ‘calculation of repayment capability’ for mortgage applicants. What this means is, let’s say when interest rates were 0.50 basis points higher, several months ago, and lenders were calculating an applicant’s serviceability based on a scenario where interest rates spiraled to say, 7% (they run these calculations as standard for all applicants); typically when RBA rates drop by 0.50 basis points; so too should the lender’s serviceability calculation assumptions (I.e. their calculation should be using a rate of say 6.50%, not 7%). However, lenders in recent months have maintained say that 7% figure in that calculation.
These changes have substantial implications for would-be property investors: 
1) The reduced LVR allowance by lenders means borrowers need to cough up more initial deposit. Say you wanted to borrow to buy a $300K investment property. Some lenders at 90/10 LVR acceptance would only require your $30K (10%) deposit, plus purchase costs. A drop to 80/20 means borrowers need to find another $30K to make up a $60K deposit.
2) Removal of discounted interest rates also is a deterrent to first-time investors entering the market, as their interest repayments will now be slightly higher than what home owners pay. There could thus be a cooling of investors being active in many markets throughout Australia.
3) For investors who remain active or don’t perceive the above two changes to inhibit their ambitions; they’ll continue with their property investment purchases. However, they simply won’t be allowed to borrow as much. If banks are calculating serviceability based on a higher ‘worst case scenario’ forecast; the banks won’t lend as much. To some investors, this could be the difference between being allowed to buy a $500K investment property, to now only perhaps $320K – $350K. If this eventuates, this will be a game-changer in the market as it’ll wipe a lot of the Sydney and Melbourne potential investor buyers out (who can play in the Sydney and Melbourne markets with &gt;$350K, these days) and into lower-median markets such as Brisbane, Adelaide, Hobart, and some regional centers.
The role of foreign investors in amongst APRA rules for local lenders: 
And what of the foreign investors? What will be the effect on foreign investor demand of APRA-inflicted local bank and non-bank lender restrictions on investment-based loans? This is hard to infer with any kind of concrete certainty; due to all data relating to foreign residential property investors (including actual volumes of them; types of financing etc.) not being readily available to the public.
As such, there is already speculation and confusion on just how many foreign investors are using the following kinds of financing for their Australian purchases:
a) Pure cash from overseas sources/local funds, to buy (no loans required). In this instance; APRA regulations on local lenders will have zero consequence on foreign buyers; or;
b) Financing/loans given by their local country’s lenders (in these instances; the lending rules imposed by APRA on local Australian institutions don’t apply – meaning foreigners may continue to have access to great cost-efficient mortgage products, for the purchase of Australian property); or;
c) Foreign buyers who are accessing local Australian lender mortgage products. For this type of foreign buyer; the APRA rules will have the same consequence as for local buyers.
When comparing drivers for foreign investors to local investors, we must be mindful that there are so many more variables beyond purely the loan or finance structure of choice, that affects their overall attraction to buying property in this country. For instance; exchange rates, FIRB levies or taxes they must pay, the type and condition of the housing stock they have access to, to purchase, are just a few of the many other factors related to foreign investor demand in this country’s residential housing stock.
So – and I must stress this is pure speculation based on the resources and news I’ve been reading on this subject – there are two quite likely outcomes I would speculate as a result of the tighter APRA rules on local lenders, in regards to the effect of these on foreign investor interest in the market, and on residential property values as a result:
1) Local buyers (investors, not home owners) get scared off and this takes a substantial amount of ‘heat’ out of 'most' markets. I say ‘most’, because the exception (as in; the markets that will still remain hot despite the APRA rulings) will be the foreign-investor ‘obsessed’ postcodes around Australia. These are the suburbs built in areas where foreign buyers and local buyers alike; both highly desire to purchase in. I say this because though we don’t know what foreign investors are using what finance structures; a more consistent and reliable metric of measurement here, is the actual postcodes they take interest in buying within.
2) Or, more markets will remain hot anyway. Why? Because those wannabe local first home buyers (FHB’s) who were thinking of applying the recently growing strategy of ‘Keep renting and buy an investment property now instead of a home; to kick start some growth so I can have enough money for a home deposit later on’, will throw that strategic approach straight out the window and say ‘nope, forget investment, the APRA rules don’t make it worth the effort; I’m going to go for that home purchase straight off the bat; better rates, discounts, and possibly LVR’s (depending on their chosen lender…) so I might as well go ‘all-in’ and buy my dream home’. 
Unfortunately, for FHB’s who want to buy into suburbs that also happen to double as hotbeds for foreign buyers; the same bubbling of high housing prices will remain, and continue further. However, in this instance, opportunity could present for FHB’s buying in non-foreign-buyer postcodes, as the local investor volumes will dilute, which should deflate the bubble in those other postcodes enough to help FHB’s.
So, if either of these outcomes eventuate, I think it can only be a good thing for FHB’s, and less so for local investors. Foreign investors will likely remain unperturbed in their relentless pursuit of the postcodes that they so desire.
This means that in postcodes where the top 10-20 schools are, per-state (the ones where the Chinese investors specifically, are most active); prices will likely remain as high as ever.
 Cameron McEvoy is a NSW-based property investor and maintains a blog, Property Correspondent. He can be contacted <a href="https://www.propertycorrespondent.com.au/contact-us/" target="_blank">here</a>. 
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Liberal local lending rules tightened: Cameron McEvoy

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In recent years, some Australians have adopted an interesting strategy of being a ‘renter-investor’. I’ve written about this previously, and it is a trend I have kept an eye on ever since.
They will actually not buy a home to begin with,  instead saving their deposit money for a property that will become an investment from day one. They will then rent for the duration of this. There are several situations or reasons why some people may opt for investment ownership instead of home ownership:
- Perhaps home ownership in the desired suburbs or areas where they most enjoy the lifestyle is too cost prohibitive to be a home owner.
- They may be a younger aspiring investor and be in a situation where they can continue to live at home with parents or relatives, rent-free, enabling them to poor their savings entirely and quickly into pure investment.
- Transient lifestyles. Those in military or international business jobs may not value home ownership much at all, as their lifestyle involves lots of travel or placement in other states and countries.
- Some investors may not see the value in home ownership in Australia. For some investors, the ongoing burden of a large mortgage may not seem to be the best use of their savings dollars.
The other option for renter-investors is to begin their investment career as a home owner, which is how I started out. Renter-investors will usually do this to qualify for any government grants, exemptions, or benefits offered to first home buyers, and then live in the property for the minimum time required. This is usually around six months. These investors will then move out of the property and into a rental property. This strategy works works well for people who:
- Cannot save enough of a deposit for the home where they want to live, but wish to invest for several years to help them eventually afford to buy a home in the area they wish to live.
- For those investors looking to maximise the initial cash-flow when first buying, via accessing government grants that are paid at time of settlement. This can enable these investors to move quicker into the purchase of investment property num,ber two.
- Those who are comfortable and flexible enough to live in a temporary home for six-12 months in an area that perhaps is not their dream area, but can view it as a necessary stepping stone to move into their desired area.
In fact, another emerging trend that goes part and parcel with the above strategy is to use home ownership as a temporary springboard into an investor life,all the while retaining a capital gain tax (CGT) exemption on one of the properties you own.
How does it work?
It goes something like this:
-          An aspiring investor will purchase their first home in whatever investment area they can afford, and through their due diligence represents solid rental return and/or capital gain potential.
-          This area probably won’t be in their desired dream suburb or where they see themselves living for a long time.
-          They then live in this property for the first six months or as long as is needed to qualify for any grants or stamp duty concessions/exemptions that are on offer by federal or state governments at the time.
-          Then, the investor will move out of their home into a rental property in the area they actually want and desire to move to, and convert their home into an investment property.
-          The investor can now continue to rent for many years and use any growth achieved in their home property as a springboard to purchase their next investment property.
-          For future CGT minimisation purposes, the investor may move back into the home property in year five or six of ownership, perhaps also doing a mild renovation whilst living there again, before moving back out again and re-renting it out.
The advantage of using this strategy, as opposed to just starting as an investor from the outset, is that the investor gets to maintain a CGT exempt ‘haven’ which will help when selling the property in the future. This is a very simplistic approach, and it gets more complex as you grow a portfolio.
It is best to consult with a professional accountant and the ATO when considering a tax-minimisation strategy across a portfolio of properties. The very general rule of thumb though, is that the ATO will only allow you to claim one residence as your principal place of residence (PPR – otherwise known as your ‘home’) for tax purposes. So as some investors grow a portfolio of multiple, even dozens, of properties, and they continue to rent elsewhere, they will usually find ways to nominate the highest-value property in their portfolio as their PPR for taxation purposes.
Renting where you want to live, whilst investing where you can afford at the time, really is a strategy that can work for young and newly-starting investors. It offers the best of both worlds; enjoying the lifestyle of the area you want to live in, whilst establishing your investment career on the property ladder, at an earlier age and time in your life. This of course is ideal, because the the earlier you can make your start on the investment property ladder, the more chance you’ll have to acquire more properties and see them grow, through to retirement age.
 
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 Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://www.propertycorrespondent.com.au/" rel="nofollow" target="_blank">Property Correspondent.</a>
 
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Buying where you can afford while renting where you want to live: Cameron McEvoy

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As a buy-and-hold investor, I’ve come across tenants of all walks of life.
Bachelors, single mums, share-house friends, retirees, young families; I thought I’d had a taste of every type of tenant possible. But then I realised, this is incredibly naïve. The truth is the diversity of the rental pool at any given time is as limitless as the diversity we find in humanity. So, I recently had my own little ‘witching hour’ of property insight recently with one such tenant.
With over seven billion people living on planet Earth, there is a practically infinite volume of lifestyles that people can live, making for so many different types of tenants that one could attract to their property.
Today I thought I’d share one such ‘out there’ example.
I recently acquired a new investment property that very much added up for me. After much due diligence on the area itself, the property itself, and some crunching of numbers, I made the decision to purchase the property.
This decision was made despite the appearance of the property which was, how do I say it, a little ‘kooky’. Upon looking at the property ad online, the property clearly appeared to be inhabited by, well... a practicing 'witch'.
Some of the interior features included:
<ul>
<li>Gothic statues hung above the kitchen cupboards</li>
<li>Animal skin rugs, an Eastern European throne chair, hanging Native American dreamcatchers, and many, many candlesticks adorned the living area</li>
<li>Dolls, fairies, tepees, more dreamcatchers, a witch’s hat, and mystical elements appeared in the bedrooms</li>
</ul>
To most prospective buyers, the creepy appearance of this property would have been enough to turn them away. Clearly, the price of the property, which was slightly below market rate for such a property in the area, was compensating for this appearance.
But to the trained investor looking a little deeper under the surface of things can sometimes fruit some great surprises. Upon further investigation, I discovered that:
<ul>
<li>The appearance, whilst full of kooky knick-knacks, was pristinely maintained. Not a speck of dust, not a single mark on the tiles, the floors squeaky clean. Clearly this tenant went to a great deal of effort to make the property appear clean – at least for the sale.</li>
<li>Why did the tenant do this? Turns out that she has been living there for 10 plus years, and had no desire to move out anytime soon. She clearly treated the property like it was her own, owned home.</li>
<li>I also learned that the tenant had been OK with incremental rental increases (in line with market rate) over the years, another good sign for the investor.</li>
<li>The body corporate of the property checked out well, as did the building and pest inspection. The townhouse was in a small complex, at the back of the block, avoiding the noise of any nearby roads.</li>
</ul>
Sometimes the quality of a tenancy applicant, or a tenant you may ‘inherit’ when you take ownership of a property, needs to be judged beyond any perceptions you have about that person based on their lifestyle.
I couldn’t care less about what a tenant in my property does in their personal life, so long as they comply within the requirements I maintain when seeking a good tenant.
These things are:
<ul>
<li>On-time payment of rent always; and understanding/respecting the odd occasion when rental rates need to increase in line with the market</li>
<li>Not damaging the property and generally looking after it</li>
<li>Reporting malfunctioning appliances, or maintenance works required; as/when they come up</li>
<li>Respecting common property areas and neighbours nearby</li>
<li>(Ideally) looking to stick around for as long as possible</li>
</ul>
If you have employed a highly skilled and competent managing agent to look after your property then they are the ones to make the best guided ‘judgement call’ on the quality of any particular tenant.
At the end of the day, astute investors need to draw up a list of the things that actually matter when seeking quality tenants and look beyond initial perceptions when weighing up tenancy selection decisions.
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My investment property witching hour: Cameron McEvoy

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Residential property is virtually a national pastime for many Australians around the country.
In my native city of Sydney, residential property is arguably the number number one topic of conversation at BBQs, dinners out, family gatherings, and office water coolers.
So it is no surprise then that property conversations and public discourse over the past 12 months have focused on the topic of weakened housing affordability as a (possible) result of an increase in foreign investors in the market.
The challenge in discussing it properly, of course, is that up until recently whilst some initial figures have been published by the RBA and a couple of news outlets, there hadn’t been a thorough market analysis of affordability based on foreign influence.
However the federal government has listened to concerns and as a result it has commissioned an inquiry into foreign investment in Australian residential property.
Though the study is ongoing and results are yet to be released, the initial feedback was that foreign investment in Australian residential property has not been a major contributor to any ‘price bubbling’ occurring in capital city markets throughout the country.
Further perspectives outside the governmental inquiry however, have been coming to light in recent weeks and it has been interesting to hear the views put forward.
What is certain right now, however, is that residential property buying is strong in many major capital city markets around the country.
Influential factors such as limited land supply in high demand capital city suburbs (both inner, middle, and outer ring ones), current home owners blocking higher-density construction within city limits areas, and a low interest-rate environment are all stimulating a buying frenzy among locals and foreign investors alike.
These factors have collectively led to a major values growth ‘boom’ period in several markets.
The elephant in the room though is the notion of the foreign investor – in particular the Chinese investor – who are <a href="/news/foreign-buyers-at-record-9-5-of-established-property-demand-nabs-alan-oster">accounting for small but rapidly increasing percentages</a> of all residential property buyers.
However, this is where the research may be coming up short. Like asking the question ‘which came first, the chicken or the egg?’, looking at sales data volumes over time may not account for the buyer's motivations for purchasing the properties they did; for the prices they did; during this time.
As a Sydney native who invests in this city (and is also currently looking for a home to purchase too), I’ve been privy to sentiments expressed “straight from the horses’ mouth” recently from both colleagues in the industry and other buyers ‘on the ground’.
When I am out at open home inspections most weekends, I’ve been speaking to other buyers with interest, hearing what the feedback is. It is certainly true that local buyers are ‘believe’ that foreign investors are having a significant impact, despite concrete official data confirming it.
So, the ‘real’ impact of more foreign buyers in the market could actually be a placebo-like effect. It is likely that the ‘scary thought’ of all the foreigners pushing locals out of the market is the actual catylst for locals pushing themselves out of the market! Or, the ‘FOMO’ (Fear of missing out) effect.
Regardless of your personal position or belief (however well or poorly researched it may be) on foreign investment jacking up prices for locals, the reality is that there are too many contributing factors to any property market’s growth (or indeed, lack of growth) at any one time to be sure.
One area where I do have a concern is in the ‘official’ data. One example here may be that foreign buyers (Significant Investor Visa or otherwise) are not permitted to purchase established dwellings – they are supposed to only be purchasing newly built stock.
However, most in the industry know that this is just not happening and is likely to go unchecked. Foreign buyers, especially from non-western cultures, are using one of the oldest group-buying strategies in the books, consortiums or shared-buying, to crack in to the established property market.
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Buying through a consortium means that a distant family member or family friend who is an Australian citizen (and thus not counted as a foreign buyer) may aggregate funds from several other family/friends together who themselves are not Australian residents or citizens.
This enables for the purchase of established houses on land (often without the need for a mortgage as the funds collected between the group/consortium are usually enough to buy the house outright).
As someone who is looking for a house (not a unit), on a decent size block of land in Sydney, I can confirm that I’ve seen this in practice during inspections.
How do you I know? I’ve been engaging in conversations with would-be buyers at inspections who have told me they're using this strategy themselves.
Whilst I do not take personal issue with the notion of foreign investors buying established houses (provided that the scale/extent of this permitted does not substantially prevent local buyers from entering the market), I do take issue with the official inquiry overlooking these purchases.
Consortium-style buying is often unofficial and unstructured, making them very hard to trace and keep a paper trail on. The Australian culture of group-buying (when it actually does happen – which is highly infrequent) is all about drawing up official legal contracts, split loans, and so on (at the point of property purchase – which of course helps to keep more official records on the group buying going on).
Foreign group-buyers tend to have just one person or couple (who have either residency or citizenship status) gather all the funds separately and externally, who then brings these to the solicitor as one lump sum in cash at the point of purchase.
This makes the true nature of the transaction highly difficult to trace locally and will likely not be reflected in any official findings. That said, China’s government has recently put rules in place to make it harder for Chinese nationals to bring funds overseas for investment purposes.
It will be interesting to see the findings of the inquiry as these become available. What will be more interesting though, will be to see if any governmental action is taken thereafter.
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How foreign buyers are cracking into the established property market

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To the inexperienced buyer, finding a quality property at an affordable price is pretty hard to do.
Whether you are a home buyer or investor, this is very hard to do, especially in Australia’s major capital city markets.
Buyers without experience face difficulty drawing a distinction between a crappy property that is full of potential and a property that should be avoided completely.
I’ve always been intrigued by the phrase ‘buying a lemon’. Perhaps I take the opportunist view a little too much though, because this lemon phrase is very similar to ‘what do you do when life throws you lemons? You make lemonade, of course!’.
In the reality of a property context though, this is rarely true. With property it is more accurate to say that some properties are lemons, sure, but only a few of those lemons are actually ripe and ready for harvesting. Other property lemons, though, have fallen off the tree long ago; turned brown, decayed, and are utterly useless.
So, we have ‘ripe’ property lemons and ‘rotten’ property lemons.
In my experience, I would distinguish between ripe and rotten by asking oneself: ‘What are the property’s problems that I can change (cost-efficiently, of course), versus those problems that either cannot be changed or are too costly to do so?’
By no means is this a definitive list; but here are some ideas of ripe lemon (possibly worth buying) ‘problems’ compared to rotten lemon ones (deal-breakers that translate to ‘walk away now’).
<ul>
<li>Rotten Lemon Problems:</li>
</ul>
Location:
First of all comes the biggest problem one cannot change in a property; its location and the other properties surrounding it. If the property is too far away from fundamental ‘renter must-have’ proximity features (transport, work node access, shops, schools etc) than this is something you cannot change, no matter how beautiful the property itself is.
Aspect/outlook:
We cannot change the way the sun rises and sets every day, for instance (though I would like to meet anyone who could!). To some future tenants and buyers aspect is very important. Ensuring enough sunlight is given to living and communal areas is important.
Serious structural problems:
During your due diligence, building, pest and/or strata reports will identify any serious structural issues. For house buyers this will be the house itself. For unit buyers, the strata report will highlight upcoming major capital works and maintainence scheduled in coming years.
Any serious structural problems identified are almost always hugely expensive to fix. When these are identified, the property is a true rotten lemon. Whether it's an investment or a home, you’ll be up for a lump sum of cash to repair it that you may not have so readily handy once the loan itself finalises.
So what about the things you can change? And cost efficiently, too? 
Click through to the next page to find out.
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<ul>
<li>Ripe Lemon Problems:</li>
</ul>
Outdated and ugly properties:
Drab, old, and outdated look (internally for units and both internally/externally for houses). Expert property ‘flippers’ Nathan Birch and Cherie Barber have built entire wealth strategies around this very specialty.
Ripped up ugly carpets can expose beautiful floorboards; cheap fresh paint can add exponential value and appeal, and so on. Inexpensive light (cosmetic) renovation can help bring what looks like a ‘dud’ property up to scratch.
The problem is, selling agents are keenly aware that buyers know how to spot these properties and accordingly the discounting offered may not offset that cosmetic renovation outlay required.
Ugly, cluttered yards:
Poorly presented properties frequently feature cluttered rear yards, sometimes overgrown, or with poorly placed/planted trees and overgrown garden beds. Buyers need to look beyond this to realise this property may not be a lemon and could offer scope for future improvement.
Not enough bedrooms:
More of a house opportunity than a unit one; but consider the problem of too few bedrooms. If the property is especially discounted and the major reason is, say, it is a two bedroom house in an area where three bedrooms is the expectation, there may be scope to cost efficiently reset some internal walls to create a third bedroom.
In older houses this is usually done by consolidating large laundry rooms into kitchen cupboard laundries (when a kitchen is also being renovated) and re-purposing that laundry space.
Awkward layouts:
If it is an older house it may feature an awkward layout that impractical to today’s families/inhabitant types. However, this is another example of ‘ugly duckling’ perceptions; particularly if, at first inspection, the rooms are being incorrectly presented.
How many times have property photos showed dining rooms being used as studies/offices, and so on?
If priced accordingly, there may be an opportunity to consider a poorly laid out property if there is scope to easily move some rooms around later on to suit a better layout.
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Making lemonade from property lemons: How to pick the properties ripe for renovation

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Over the weekend I attended the Sydney Home Buyer and Property Investor Show, at Sydney’s Olympic Park. Having visited the show every year since 2011, I was on the lookout for any new trends and shifts in booth exhibitor types.
Below are some observations I made about the 2014 show in comparison to recent years. Of course, the types of companies that were exhibiting may not be reflective of overall market demands and shifts. However, it does offer an insight into to the changes year on year and this variety of show booths helps as a measuring stick of the trends emerging in the Sydney/NSW markets, from both a home buyer and residential property investor perspective.
 
<ol>
<li>
Lender exhibitors shift focus Every year, the major Tier #1 and Tier #2 lenders exhibit and 2014 was no exception. What I did find interesting this year was the promotional shift towards ‘service’ loan product features over others like rate and inclusions/features. In a low-rate environment this makes sense for lenders as it may become hard to discern and differentiate mortgage products based on rate alone. 
</li>
<li>
Exhibitor stands providing bilingual signage is on the up This has been present for many years; with traditionally a number of developer and ‘off the plan’ sales stalls printing their signage and leaflets/info packs in both English and <a href="https://www.translatorscafe.com/cafe/article84.htm" target="_blank">Simplified Chinese</a>. However this year, in my observation (and I wasn’t counting precisely), the uplift of bi-lingual signage stands was substantial. Almost every developer and/or property sales stall was bilingual, with some of them even being Simplified Chinese-only. Also, several of the major and minor lenders featured bilingual signage. 
</li>
<li>
More focus on ‘first timer’ small scale developments Peter Koulizos gave a lecture on small-scale developments 101, and it was easily one of the biggest crowd-drawers during the show. Small developments have been a minor focus of previous shows however there was a clear sustained interest in this topic during this show. Similarly, Cherie Barber’s Renovating For Profit show also drew large crowds, as they often do each year. Several magazines have given extra attention to small developments in the last six months and this could indicate a market shift towards development versus passive investment. 
</li>
<li>
Homes with attached granny flats and second dwellings at the back Detached granny flat companies have been consistently prominent in the last couple of years at the show, however this year there was a clear dominance of developers and builders offering home builds that come complete with an attached granny flat/second dwelling at the back of the property. Think of these as duplexes where the second dwelling is hidden away behind the first. The clear difference was that these properties, unlike duplexes, sit on one title, on one block. From an investor perspective this might be a little unappealing, however for home buyers/builders, this approving could offer a handy value-add. 
</li>
<li>
Off the plan apartments ever prominent Another observation consistent with previous years was the prominence of off-the-plan apartment developers selling their product. Many of these are in high density residential towers being built in most eastern seaboard capital cities around Australia. I did observe a number of international developers too; with offerings in Indonesia, Great Britain, and New Zealand. Interestingly, USA-based property spruikers were lower in volume this year compared to previous years. Below are some photos taken of some of the major speakers who presented during seminars and lectures on the day.
</li>
</ol>
 
<img class=" wp-image-698 aligncenter" src="https://www.propertycorrespondent.com.au/wp-content/uploads/2014/07/Sydney-Home-Show-2014-1.jpg" alt="Sydney Home Show 2014 - 1" width="576" height="346">
<img class="aligncenter wp-image-696" src="https://www.propertycorrespondent.com.au/wp-content/uploads/2014/07/Sydney-Home-Show-2014-4.jpg" alt="Sydney Home Show 2014 - 4" width="576" height="346">
<img class="aligncenter wp-image-695" src="https://www.propertycorrespondent.com.au/wp-content/uploads/2014/07/Sydney-Home-Show-2014-3.jpg" alt="Sydney Home Show 2014 - 3" width="576" height="346">
Photos: Author.
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Five observations from the Sydney Home Buyer and Property Investor Show

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Foreign residential property investment is arguably the hottest topic in Australian property circles right now.
Whether it is at a BBQ, dinner party, or casual drinks after work, when the topic of ‘house hunting’ or property pops up shortly after the topic of foreign investors gets introduced.
Prime Minister Tony Abbott has declared Australia is ‘open for business’ and this sentiment has certainly extended to foreign investment in our residential property class.
Though foreign national investment in single family homes, apartments, and units has been a common occurrence for years in this country, there has been an undeniable upswell in foreign investor-purchased property in the six months of 2014 thus far.
So is this a good thing or a bad thing?
Though market commentators and economists are divided on whether the influence of large waves of foreign investors are having a positive or negative effect on the residential property market, foreign investor influence is certainly being felt in capital city markets.
However, unlike other commodities and investment classes that foreigners ‘can’ buy into in this country, residential property is a delicate asset class; unlike gold, shares, natural resources, technology, and even commercial/industry property investment, residential property investment has social and societal consequences, not just economic ones.
Positive: Investors bring wealth into Australia
Foreign investors bring new money into Australia, greatly influencing our economy. This investment can return dividends for our wider economy as it stimulates further growth into our cities and potentially a better quality of services.
Negative: Higher foreign investor demand could artificially ramp up prices and drive overall housing unaffordability
Yes, this is cited by most Australians who complain about foreign housing investors. Though many Aussies may form this view based on hearsay and/or a lack of researched opinion, the truth is they may be right. The city of Vancouver in Canada is a perfect case study of this. Canada’s relaxed ‘Immigrant Investor Program’ was introduced back in the 1980s and basically enabled for a wealthy foreign national to ‘buy’ their way into becoming a Canadian national, simply by investing a fairly small ($800,000) loan to the Canadian government. The government would then pay back the investor over a five year period and issue a visa in return.
Many of these people purchased investment property specifically in Vancouver, and then left again. However, the buying frenzy over many years saw Vancouver become one of the least affordable cities to live in in the world; with residential property becoming hugely unaffordable for median-to-above-average Canadian income-earners who lived there. The tap was turned off however, in 2012 when the program was abolished. There are concerns by Australians that a similar approach could happen here. 
Positive: Our construction industry gets a much needed boost
Our construction industry – which collectively and peripherally employs over one million Australians – benefits immensely as new residential estates and apartment buildings are demanded by investors, construction companies are employed to build them, thus creating jobs and stimulating the economy. 
Negative: Money laundering on a global scale?
Though Australia welcomes foreign cash injection into Australia, foreign investor funds into residential property are usually pretty unregulated. With a number of investors simply paying cash outright for developments off the plan, the developer takes the cash on a ‘no questions asked’ basis.
The lack of paper trail means that Australia runs the risk of accepting funds that could be ‘dirty money’. Once word gets out of the ease with which funds can be routed into residential properties, Australia runs a risk of an upswell in corrupt foreign funds entering the country. 
Article continues on the next page. Please click below.
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Positive: City planning ensures that construction projects get approved in highest-demand areas
Several cities such as Sydney have faced residential property undersupply issues in their highest demand suburbs and working nodes for years, and foreign investment could help resolve this. Local council areas will consider medium and high-density planning applications by developers in much-needed areas that may not have been possible had there not been enough foreign investor interest to get the project off the ground. Foreign investment helps to encourage construction of higher density housing in these areas to meet current demand. 
Negative: Not everyone wants to live in a shoebox
It is a good thing that foreign investors are helping to build high-density housing (apartment towers) where they are needed most. In high-demand suburbs not everyone wants to live this way.
Developers can make higher profit margins on towers of this scale, versus, say, single-family homes with yards. As land increasingly becomes the prize commodity, developers are under pressure to effectively fit as many people on to the smallest parcel of land that they are legally allowed to do. However, not everyone wants to live in high-rise apartment buildings. 
Positive: Foreign investor demand in certain areas may result in much-needed rezoning
This rezoning could be in the interest of all; and could help open the floodgates to encourage greater provisions of services in much needed areas; things like improved road works, more schools and hospitals being built, and greater stimulation for small businesses to enter areas where higher population growth has been earmarked for. 
Negative: A more expensive property market can cause house-crowding
Many factors contribute to house and unit median prices increasing – foreign investors are just one of them. However, any contribution to making high-demand property exponentially more expensive for occupants could result in house crowding; or worse, illegal housing facilities being built.
A recent example is the Alexandria, NSW, <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-07-02/squatters-rescued-from-massive-fire-in-inner-sydney/5564762" target="_blank">fire that revealed an illegal housing ‘shanty’ facility</a>, which endangered the lives of dozens of people illegally living in squalid conditions. This, in an inner suburb area of Australia’s biggest city.
I’ve <a href="https://www.propertycorrespondent.com.au/overcrowding-properties-happens-stop/" target="_blank" title="Overcrowding In Properties – Why It Happens &amp; How to Stop It">written previously</a> about house and apartment crowding and this trend is only on the up. Beyond the immediate safety problems of cramming, say, 10 people into a two bedroom apartment, are the drain on local services and council facilities.
This is where foreign investors could be contributing to making high-demand properties more expensive from the outset, and for a portion of urban Australians such as students, new arrivals/immigrants, and low-income earners, overcrowding; whilst not an attractive option; may be an option they resort to, if they cannot afford the rent on their own. 
Positive/Negative: How much does our economy and society really benefit from foreign national property investors?
A number of news outlets have reported on foreign investors paying cash for their properties and leaving them untenanted/vacant most of the time. I have not been able to find sources that verify this as being a significant occurance/portion of foreign investors; however, there is risk of this occurring more in the future could grow.
If an investor is not using a local (Australian) bank to finance the purchase; and then leaving the property vacant for much of the year, this is a bad thing both economically and societally. Yes, the property investor may pay their dues in the form of council rates and so on, however, with vacant properties in high-demand areas it does little to ease any supply/demand shortfall currently being faced.
Negative: Councils get greedy for revenue, at the expense of citizen quality of life/services
This one is less a finger pointed at the foreign investor more so than it is the greed of some local councils back home.
As mass-scale property developers, themselves fuelled by the lure of foreign investors with very deep pockets quite willing to pay ‘asking price, and above’ for their giant unit blocks; present their plans for submission to councils; the councils themselves are hard-pressed to say no.
This can result in council areas approving higher housing density than perhaps they have the true infrastructure to actually handle. In other words; the lure of developer revenue is too great, at the expense of quality of life and sense of community for the inhabitants of the area.
Councils do this because they believe that the revenue generated by mass development will be used to provide better services to their area. The problem is, most councils under cook the true cost of these services provisions in the first place, or worse, they re-allocate the funds they receive from the developer somewhere else, before the development is complete.
This then sees a suburb increase enormously in population, without the infrastructure and investment in things like community programs, parks, public transport, and local commerce, provided. <a href="/news">Burwood</a>, NSW, is a good example here.
The Sydney suburb has a very relaxed local government, and is hungry for the foreign-investor-driven high-rise developments to be built there, yet the council is plagued with a backlog of infrastrucutre items it cannot possibly afford.
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Increased foreign investment in Australian residential property: The pros and cons

There’s a quiet patch of <a href="https://www.apartments.com.au/developments/hawthorn-vic-3122">Hawthorn</a>, between the bustle of Glenferrie Road and the curve of the Yarra, that rarely sees change, and even more rarely, new apartments. But that’s exactly where <a href="https://www.apartments.com.au/developers/pomeroy-pacific-quattro-corp">PQD</a> is planting Kooyongkoot: a deliberate, 18-residence answer to the question of what downsizers actually want.

“This is something this pocket of Hawthorn has never seen before,” says Fil Gacesa, head of sales at PQD. “<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a> will deliver just 18 large-scale apartments in the heart of Hawthorn. It is the true definition of resort-style living.”

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/59D7VxzltmM?si=1iCzRD7FRneKryfv" title="YouTube video player" width="560"></iframe>

That scale is central to the story. It’s what allows for two dedicated lift cores, short corridors, and a generous lightcourt that draws natural ventilation and sunlight into every residence. It’s also what makes room for the sort of amenity usually confined to high-density towers: a fully equipped wellness centre with infrared and traditional saunas, yoga and pilates studio, cold therapy shower, and treatment room. There’s a golf simulator, car and dog wash stations, and extensive storage too, not bolted on, but baked in from the start.

But more than the checklist, it’s the design intent that carries weight. “This project has been many years in the making,” says Mark Pomeroy, Director of PQD. “Not just in planning, but in listening, to what our buyers and the local community are looking for”.

[smartcode_project:default project_id=102717 project_image_fid=355289]

That listening shows up in the materials, oak floors, natural stone, V-ZUG appliances, and in how space is handled. Penthouses feature private rooftop terraces with pools. Terraces and garden residences embrace outdoor connection. Inside, the layouts skew large and open, geared for hosting, not just housing.

Architecturally, <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>’s approach is grounded. There’s no reaching for spectacle here. Instead, the building offers a sculptural calm, anchored by landscaping from Eckersley Garden Architecture.&nbsp;

“We wanted to create spaces that feel expansive, serene, and meaningfully connected to daily life,” said founding partner Chris Stribley elsewhere.

[smartcode_project:default project_id=102717 project_image_fid=355304]

That sentiment, calm, connection, echoes in the location itself. Kooyongkoot sits just a short stroll from Central Gardens, Fairview Park, and the Rivoli Cinema. Tram lines and schools are close, but the street is tucked, quiet, and leaf-lined.&nbsp;

“Residents of Kooyongkoot will be a short stroll from Fairview Park, Central Gardens, and the Glenferrie Road retail strip," Gacesa notes, "but you're also cocooned in this peaceful pocket behind extensive landscaping by Eckersley Garden Architecture.”

Kooyongkoot is set for completion in late 2026.

[smartcode_project_cta:default project_id=102717]

Staff Writer

The project that said no to compromise: Inside Kooyongkoot, Hawthorn

When long-time Ivanhoe locals Graeme and Catherine, decided it was time to downsize, they weren’t necessarily in a rush.&nbsp;

Like many in their stage of life, they had started thinking about apartment living, but anticipated making the shift in two to three years.

That timeline changed when they visited <a href="https://www.urban.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe">Candela</a>, a new boutique development by <a href="https://www.urban.com.au/developers/salter-brothers">Salter Brothers</a>. The project ticked all the boxes they were looking for: location, quality design, and long-term lifestyle benefits, which prompted them to bring their decision forward.

“It was the right place at the right time,” they said. “We knew immediately it ticked all the boxes, and we didn’t want to wait.”

[smartcode_project:default project_id=342 project_image_fid=358855]

Their decision to downsize was driven by a combination of practical needs and lifestyle considerations. Their existing home, while much loved, had become increasingly difficult to maintain. It spanned multiple levels, included extensive front and back gardens, and was starting to show the wear that comes with age.&nbsp;

They were looking for a more manageable lifestyle, one with less upkeep and more freedom. A brand-new apartment with no maintenance requirements and the ability to simply “lock up and leave” gave them peace of mind and a greater sense of control over their future.

Financially, the purchase made sense as well. The available stamp duty savings, strong price-to-value offering, and timing of the settlement suited their plans, making the transition smoother and more cost-effective. The apartment's design and inclusions further supported their choice.

[smartcode_project:default project_id=342 project_image_fid=357493]

The layout was both functional and flexible: three bedrooms, a butler’s pantry, a separate laundry, and a large open-plan living area. It gave them the freedom to host a family, accommodate guests, or set up a home office. The expansive balcony and elevated views added to the appeal, providing a sense of openness and connection to the outdoors.

“It just had a really good flow,” Catherine noted, something they found lacking in many other apartments they’d considered, particularly in the established market.

Candela’s boutique scale was another deciding factor. With a smaller number of residences and a top-floor penthouse position, the couple felt the development offered the privacy and space they were looking for, without feeling isolated.

“We liked that it wasn’t a huge development. It felt well-balanced, modern but still with a sense of community, not overwhelming,” they said.

[smartcode_project:default project_id=342 project_image_fid=357508]

Equally important was the ability to remain in Ivanhoe, a suburb they know well and have deep roots in. After 46 years in the area, proximity to local parks, shops, and familiar faces mattered just as much as the apartment itself.

“We didn’t want to give up the community we’ve known for decades. Candela allowed us to upgrade our lifestyle while staying in the place we call home.”

With a Walk Score of 90, the village location supports a convenient, connected lifestyle. <a href="https://www.apartments.com.au/developments/ivanhoe-vic-3079">Ivanhoe</a> Station is just a eight-minute walk away, and the neighbourhood offers access to parks, cafes, restaurants, and schools along Upper Heidelberg Road, all within easy reach.

Beyond the apartment, the couple also saw value in the broader vision for Candela, one that integrates residential living with public spaces and local amenities.&nbsp;

The development introduces 58 new apartments as well as a mix of commercial and social spaces that integrate contemporary architecture with the suburb’s existing character.&nbsp;

At ground level, residents will find a charming café and a lifestyle wellness centre, perfect for unwinding and rejuvenating. Meanwhile, the rooftop garden offers a stunning vantage point for residents to enjoy breathtaking sunsets, host gatherings, or enjoy barbecues with family and friends. It's not just a place to live; it's a vibrant community where every moment is an opportunity to connect and create lasting memories.

[smartcode_project_cta:default project_id=342]

Why Ivanhoe locals are choosing to downsize to Candela

Mark and Roy Makari are expanding their presence in Sydney’s South West with a second major proposal for Leppington, this time envisioning a 900-dwelling mixed-use development just 850 metres from their previously lodged tower trio on Fifth Avenue.

Project management and construction management firm Creative Vision filed the plans for the&nbsp;multi-building project at <a href="https://www.apartments.com.au/new-apartments/230-rickard-road-leppington-nsw-2179">230 Rickard Road, Leppington</a>. The proposal seeks to establish a new focal point for the precinct through a high-density, transit-oriented development supported by diverse land uses.

According to the Scoping Report prepared for the Department of Planning, the scheme includes around 900 apartments across multiple towers, including 135 dwellings designated for affordable housing. A mix of market and subsidised apartments will be supported by ground-level activation through retail and office space, a childcare centre, and a hotel, forming a comprehensive urban precinct.

<img alt="Mixed Use Development 230 Rickard Rd Leppington" data-entity-type="file" data-entity-uuid="34797362-f3dc-4d84-8235-2657fc5f3bde" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Plan.png?VersionId=Uzckrz9tUpDQl5lX1_WMhjnv16bsr8wG" />

The Design Report by <a href="https://www.apartments.com.au/architects/studiosc-0">Studio SC</a> notes that the project “intends to deliver a high-quality, high-density built form that supports the vision for the Leppington Town Centre, integrating mixed-use outcomes and public domain upgrades.” The development is expected to be delivered in stages, although a precise timeline is yet to be confirmed.

The project will be assessed through a future State Significant Development Application, with the Scoping Report indicating the team will seek design excellence via a competitive process or through an expert design review panel. Early massing diagrams suggest a series of mid- to high-rise buildings framing a central landscaped spine, with emphasis on pedestrian permeability and public space.

The planning documentation flags a strong sustainability agenda, stating that the development will “respond to the urban heat island effect, incorporate water sensitive urban design, and prioritise active transport”.

<img alt="Mixed Use Development 230 Rickard Rd Leppington" data-entity-type="file" data-entity-uuid="369d7b54-1279-4cde-88ec-dcb215594414" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Podium_1.png?VersionId=QArL7B2kkLt63vl5xvL0FNV_ardAlez4" />

The proposal follows in the footsteps of the Makaris’ nearby Fifth Avenue site, where they’ve submitted plans for three towers comprising nearly 500 apartments, with 10 per cent dedicated to affordable housing. That project features commercial podiums, a childcare centre, and a new public park that would occupy more than a third of the site.

Both developments are situated within walking distance of Leppington Train Station and fall under strategic precinct plans promoting higher density housing. The town centre is undergoing substantial transformation, driven by state government planning reforms aimed at fast-tracking housing delivery.

Together, the two projects represent a combined ambition of nearly 1,400 new homes across just under two kilometres of central Leppington.

First look: 900-home mixed-use precinct planned for Leppington

Leading Australian integrated property development group, <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a>, has released the signature penthouses crowning its landmark AURA by Aqualand precinct at 168 Walker Street in North Sydney, unveiling Il Magnate and La Divina as the largest and most luxurious penthouses in the suburb.

With prices anticipated to commence from $15 million, and each accompanied by a new Porsche Carrera 911 valued at over $500K, the residences mark the culmination of <a href="https://www.apartments.com.au/buildings/aura-by-aqualand-north-sydney-168-walker-street-north-sydney-nsw-2060">AURA by Aqualand</a>’s decade-long journey and the beginning of its final sales chapter. 
&nbsp; 
Their release follows more than $850 million in record-breaking residential sales and the building’s completion and occupation.

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The Richards Stanisich-designed 284 sqm Il Magnate and 224 sqm La Divina penthouses, collectively known as The Icons of AURA, are conceived as grand luxury homes rather than apartments, with expansive proportions, elevated materiality and curated identities that reflect their status as one-off residences.&nbsp;

Il Magnate features a grande master suite, complete with substantial walk-in dressing area and ensuite, three other bedrooms, second ensuite and another bathroom, powder room, open plan kitchen, scullery, substantial dining area and generous living room divided by a feature fireplace, and a multifunction wintergarden, which is ideal for a study and adjoining office breakout space. &nbsp;

Meanwhile, the La Divina residence offers the same amenities, sans the powder room, on a slightly smaller alternate floor plan configuration.

[smartcode_project:default project_id=30959 project_image_fid=358863]

Each occupies half of AURA by Aqualand’s topmost 28th level, comes with four secure car spaces and pairs sweeping Sydney Harbour panoramas with large-scale living spaces, refined detailing and a level of craftsmanship and amenity rarely offered in the North Shore market.&nbsp;

Penthouse residents will also receive Etymon’s ‘Black Key’ private concierge and lifestyle management service, an invitation only offering providing the ultimate in bespoke personalisation, including a range of everyday discrete services, from dinner party management, grocery deliveries, pet feeding or plants watered, dinners, snacks and coffee deliveries, event ticket sourcing, right up to organising travel visas and international airfares. Rarely seen in Australian properties, the service provides residents the benefits of living in a world-class luxury hotel-style home, akin to The Ritz, or the Waldorf Astoria.

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<a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>’s Director, Kirsten Stanisich, said the studio set out to craft residences that feel profoundly considered, contemporary and deeply connected to their setting.

“From the outset, we approached these penthouses with the sensibility of a grand Parisian residence - generous in scale, elegant in proportion and designed to feel more like a handcrafted home than an apartment," Stanisich said.

“Their elevated position and sweeping harbour outlook informed every decision, creating a rare connection between urban sophistication and natural calm. We shaped each space with expressive materiality, sculptural forms and bespoke detailing that invite touch and interaction.&nbsp;

“The result is a pair of residences defined by volume, light and an inherent softness - refined, flexible and deeply personal. These penthouses are unlike anything else in North Sydney, offering a sanctuary of true luxury framed by some of the city’s most remarkable views.”

For Aqualand’s Head of Sales &amp; Marketing, Alex Adams, the collaboration with Porsche underscores the shared ethos behind the residences.

“Aqualand’s collaboration with Porsche underpins both brand’s sharing an obsession with craftsmanship, design excellence, and enduring value," Adams said.

“Our penthouses are created for those who appreciate the finer details and expect the extraordinary at every touchpoint. Including a Porsche simply extends that experience beyond the residence - it’s a continuation of the lifestyle our buyers already live.”&nbsp;

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Aqualand’s Managing Director, Jin Lin, said the penthouses represent both the pinnacle of AURA by Aqualand and an important design benchmark for the company’s future pipeline.&nbsp;

“These stunning penthouses reflect the purest expression of Aqualand’s design ambition," Lin said.

“The unparalleled design intent makes them not only the glistening crown of AURA by Aqualand, but the crown of North Sydney itself. They’re essentially a thank you gift to a burgeoning community that deserves this level of quality and architectural consideration.&nbsp;

“We’re leveraging the unrivalled standard set here as the foundation for what comes next, including our upcoming Anderson Street, Chatswood; 15 Blue Street, North Sydney and Central Barangaroo projects. Purchasers of these penthouses will essentially be living inside the blueprint of Aqualand’s future.

“These landmark residences demonstrate how far North Sydney has evolved and the strength of demand for highly curated, bespoke luxury homes. They’re more than penthouses, they’re legacy residences.&nbsp;

“With AURA by Aqualand now a thriving new precinct with residents well and truly settled, and our in-house world-class lifestyle amenity activated, Il Magnate and La Divina represent a once-in-a-lifetime opportunity to secure an extraordinary piece of North Sydney’s future.”

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Joel Robinson

Aqualand launches North Sydney penthouses with free Porsche Carrera 911

<a href="https://www.apartments.com.au/developments/bokarina-qld-4575">Bokarina</a> Beach has quietly evolved into one of the Sunshine Coast’s most complete coastal lifestyle precincts, defined not just by proximity to the ocean, but by how residential living, local retail and everyday amenity are stitched together.&nbsp;

Gardner Vaughan Group’s <a href="https://www.apartments.com.au/new-apartments/bask-bokarina-38-bokarina-boulevard-bokarina-qld-4575">Bask Bokarina</a> now represents the final residential chapter in that transformation.

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Over recent years, the Bokarina Beach precinct has taken shape as a walkable, community-oriented neighbourhood, anchored by beachfront access, Lake Kawana to the west, and a growing mix of cafés, specialty retail and public open space.&nbsp;

With Zinc Bokarina already delivered next door by <a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> (GVG), Bask is the last opportunity to buy a brand new apartment within the precinct, effectively rounding out a fully formed coastal village.

GVG has positioned Bask to strengthen that lifestyle framework. Ten ground-floor retail spaces are planned beneath the residences, extending Bokarina Boulevard’s existing activity and reinforcing the area’s everyday convenience, from casual dining and coffee to local services, within a short walk of the beach.

[smartcode_project:default project_id=141609 project_image_fid=333359]

The residential component comprises 135 apartments across two buildings, Mydas and Caretta, with a clear shift toward larger three- and four-bedroom layouts and penthouses. That mix reflects a maturing buyer profile in Bokarina, where demand is increasingly led by owner-occupiers and active downsizers seeking space, permanence, and connection to place rather than short-term coastal accommodation.

Design and amenity have followed the same logic. Residents will have access to a heated plunge pool, gym, private dining room with a full kitchen, landscaped communal gardens with barbecues and a firepit, and a shared herb and vegetable garden, facilities intended to support daily use rather than resort-style turnover. Pet-friendly features, including a dog wash bay, acknowledge both buyer expectations and the area’s dog-friendly beach, located around 250 metres from the site.

[smartcode_project:default project_id=141609 project_image_fid=333366]

“Bokarina has become one of the Sunshine Coast’s most desirable beachside communities, and Bask represents the very last chance to buy new in this location,” GVG Director Sam Gardner said.&nbsp;

“Our focus has been to create spacious, functional apartments that meet the needs of locals who want to downsize without compromise, as well as those seeking a full-time coastal retreat.”

Positioned between the Pacific Ocean and Lake Kawana, Bask apartments have been oriented to capture outlooks toward the water or the Glass House Mountains, reinforcing the project’s connection to its natural surroundings. With parks, beachfront paths, hospitals, retail and public transport already in place, Bask arrives at a point where the broader precinct is no longer emerging, but established.

Construction is expected to complete in Q3 this year, with apartments ready to move into this Spring.

[smartcode_project_cta:default project_id=141609]

Cameron McEvoy

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