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For most investors who focus on units and apartments, buying on the ground floor long time been a property industry taboo. Experts and successful investors historically have insisted on avoided the ground floor for a plethora of reasons. This sentiment was then reflected and evidenced in the market via property values. Take your stock-standard, older style, three-floor walk-up unit block without a lift.

For the past fifty years or more, you could almost guarantee that that the top floor units would achieve the higher values, followed by middle floor and then the ground floor with the weaker property values in those complexes.

There are a number of reasons why professional investors have avoided ground-floor units and apartments in the past, each of these being perfectly valid within the context of historical demographic and cultural trends/preferences:  

1) Safety and security

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Historically, unit dwellers have been mostly a younger demographic cohort, with singles, couples, or perhaps couples expecting their first baby, occupying units due to the cheaper cost of living whilst saving for a home of their own. Ground floor was always seen as less secure and therefore at greater risk of theft and damage.

2) Top floor units having better views and more private balconies

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With most investors targeting more of a young single/couple/family investor persona, views and privacy is a crucial feature for investors to ensure tenants have peace of mind. A better outlook and maximum privacy helps to keep tenants happy and thus keep them renting your investment unit longer. This reduces vacancy periods and thus maintains solid return on your investment, so top floor eclipsed ground floor units in terms of demand by investors.

3) Noise

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Top floor units have also been favoured by investors because of noise issues. With many light sleepers who are also rental property seekers, being on a ground or middle floor of a building can be a real turn-off, with footstep noise from the units above being the deal breaker between renting an apartment and not renting one. Top floor units do not have this problem and thus grow in capital value faster, as well as attract higher rental cost.  

However this preference could be changing, and for NSW investors with a keen entrepreneurial streak, there could be genuine opportunities emerging with ground floor units. With some due diligence and forecasting, investors could be well placed to purchase ground floor units at lower rates, and reap the rewards later on in the holding period.

The reason for this is a combination of two dynamic factors:

1)      The very recent – and well covered – news of the NSW state government’s upcoming changes to strata by-laws; and

2)      Changing demographic factors in the NSW population coupled with the an increasingly urbanised and unit-preferential population  

There are a number of strata by-law changes that the Department of Fair Trading is looking to push through, and these are expected to take effect by mid-2014. Of all the changes established, the most significant changes for ground floor investors are:

-          That smoking will be prohibited on balconies and courtyards within individual units

-          It will now be much easier to have a pet in a strata property than ever before  

So how do these changes positively affect ground floor units? The answer in my mind is all to do with Australia’s aging population. NSW is Australia’s most populous state and also has one of the highest baby-boomer proportional populations in the country. As this generation moves into retirement age, demand for easy-access, level ground floor dwellings will no doubt increase in this state.

For me, the smoking and pets by-law changes is about reading between the lines. Most complaints to strata committees (which, when unresolved at a strata committee level, escalate to the NSW Fair Trading department, the team responsible for the strata by-laws restructure) stem from refusal of pets, and also complaints from elderly and family dwellers about neighbour’s balcony smoke blowing into their unit.

In my mind, the new by-laws have been developed in part to benefit and assist our increasing aging population who are downsizing to apartment living, as well as benefit young families. Smoke is a genuine turn-off for these dwellers, and as for pets it is well documented that having a pet helps boost the mental health of retirement age and elderly people, especially those who may have lost their life partner and are living on their own. Pet ownership can curb depression and also assist therapy for illnesses such as dementia too.

Where it used to be a trend for retirees and elderly to move out of capital cities, seeking ‘sea-change and tree-change’ lifestyles, to live in a bigger dwelling (i.e. a house on a larger lot), in a quieter, more remote, and peaceful town, new trend data now that suggests the opposite is occurring.

Retiree-aged Australians are increasingly wanting to remain urbanised, with the main reason being to be close to their families and grandchildren; not having to travel so far to see them regularly. Affordable houses with yards in metropolitan areas then becomes a challenge for retirees to source.

The other cultural shift occurring is one geared towards low-maintenance, well-located properties. So, units and apartments that do not have yards are much easier to maintain.  

The pros of holding a retiree-age occupied, ground-floor investment property, far outweigh the cons these days, and here’s why:

-          A growing retiree demand for ground floor housing – providing stairs are minimised and access is easy – this creates a growing tenant pool, which in turn increases demand.

-          Sure, some mature tenants may simply prefer to live on the top floor of a building with a lift, however as an investor the increased strata costs to maintain a lift (along with any other amenities such as pools, tennis courts, water features etc.) may make this property type not as profitable as a modest non-lift building

-          Elderly folks make great tenants! It will be very unlikely that your tenant will trash the place, create noise issues etc. In fact, in my experience my elderly tenants have maintained the properties very well, and even created a sense of community within their buildings, as well as reporting suspicious activity to local police

-          Rental repayment security is also a positive. With most mature tenants being downsizers; cash-flow is quite positive and the commitment of an apartment is usually far less than the house they may have occupied previously

-          Occupancy tenure is usually also excellent, with many retiree-aged tenants establishing themselves in a property with more of a long-term view than say a young family or couple, who are looking to move out as soon as their home deposit is saved  

So perhaps it is time for investors to reconsider their stance on ground floor units and apartments. I do not doubt that middle and top floor properties will continue to grow also, however the opportunity for ground floor success is substantial.

 

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Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" rel="nofollow" target="_blank">Property Correspondent.</a>

 

 

 
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Down low can be the way to go: Ground floor apartments and units could be a good investment

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With an almost ‘perfect storm’ environment in the Australian residential property market at the moment, there is a new generation looking to get in to the real estate investment market. Many first time investors will not always be aware of which costs really should be paid, and those to avoid.
This is because few first-time investors actually calculate on a spread sheet their overall initial and continual commitment costs to a property in relation to the return it is giving them. This is high-risk because if you do not know the costs associated with procuring investment property, you could be building a portfolio that reads well on paper on weak foundations.
Successful investors know that minimising all unnecessary purchase (or acquisition) costs is one of the most crucial things they can do. Remember, a dollar saved here and there is a dollar re-invested later on when you wish to grow a small portfolio into a big one. And, as we know, a dollar invested will ultimately return bigger dividends, and this compounding effect is what really enables a portfolio to accelerate in the early years.
So today I thought I’d draw on some personal experience and share with you some ways to avoid paying unnecessary up-front and ongoing costs on an investment property. Remember, good habits formed when starting out will help you throughout your investing career will pay dividends when you really ramp things up in a few years’ time.
In some instances, saving even one thousand dollars up front can make the difference between having a good investment property in your portfolio that can unlock future equity access and one that weighs down your portfolio, costing way more than it should to hold.
It is also important to note the economies of scale that can be achieved when employing some of these capital-saving strategies. Why? Because the more exponential saving you can make as you add properties to your portfolio; the more exponential growth you will get.
Avoid lenders mortgage insurance (LMI) – At (and excuse the pun) all costs!
This is absolutely dead money that should never be paid, no matter if you are a new investor, or a seasoned investor holding dozens of properties. If your deposit isn’t enough to meet that 20% threshold for the property you wish to purchase. I recommend to re-think your strategy and opt for a more affordable property that still presents similar gains offerings, but allows you finance at 20% deposit, not 12% or 15% deposit.
There will be others who will disagree with this stance on LMI arguing that paying a small amount of LMI on a property loan can get you in to your investment property sooner. However this exposes you to much more risk. Say you pay the LMI and instead of saving 20% deposit, you save just 5%. Should you fall on tough times and need to unlock some equity in this property to use elsewhere, you will not have the flexibility to do so, with such a small deposit remaining in the property. The costs involved to restructure your mortgage at this point could be substantial.
Find a good conveyance/solicitor and ask about return customer rates
Finding a good solicitor who can work efficiently and does not cost an arm or a leg is an important part of the property investment process.  However, few investors consider the value they actually add to a solicitor as a repeat customer. It is therefore worth asking and potentially negotiating up front, if they offer discounted rates for repeat customers.
When selecting a professional, you should mention up front that you are a new investor with very big ambitions and are looking for a conveyancer who can help you grow a large portfolio. You may be able to negotiate discounted professional services rates for successive new property purchases
 
Get professional independent valuations, not just bank’s internal ones
Oftentimes in business, in order to save money, you need to spend money. Many times throughout your investment career, you will need to refinance properties to draw down on the equity created in your portfolio, to enable you to acquire more properties. Every time you do, lenders will need valuations done to prove that the properties have increased in value. Inexperienced investors are easily fooled by the lender they go with offering a free valuation by their internal team. This however could cost you money in the long run. More often than not, lenders’ internal valuation team will low-ball property values, in the pursuit of protecting their company’s bottom line (not yours).
Paying a small amount (say $50-$200 depending on the property) for an independent valuer to review your property, will pay big dividends. For instance, a lender’s internal valuer may only appraise your property at say $255k, whereas an independent valuer might give a higher valuation like $265-$270k. The small outlay cost of an independent valuation has just added potentially $10-$15k of additional equity, and that is enough to cover the closing costs on your next investment purchase!
Source a specialist accountant or one who is experienced in property investor clients – don’t do it yourself
In the same vein as above (spending some money to make or save you a stack of money); if your strategy is to acquire dozens of properties and hold them over a long time, you need to plan in advance your taxation minimisation strategies by speaking with professionals who are experienced to guide you in doing so.
Many new and inexperienced investors who have just one or two properties think they can do it all themselves (the tax minimisation part, I mean). And maybe for that first couple they can. As you grow the portfolio, however, you could have made structural mistakes in setting up the first ones that will hurt you later on as you grow. Smarter instead to pay a professional who will uncover tactics that could save you thousands of dollars you may not have realised that you could have saved, by doing it yourself.
Land tax – the tax that sneaks up on you
As above, a good accountant will work with you in regard to land tax minimisation and avoidance. This is a big – and highly unnecessary – cost that investors face and really should not pay. Well, at least for the first couple of dozen properties.
For those not in the know, land tax is accessed every December for investors and is payable every year; meaning that if you qualify to pay this tax it is not a one-off payment. You can imagine how that annual payment could hurt your bottom-line over five, 10, or 20 years of property holding. The tax is payable when the value of the ‘land’ of all your owned properties in a given state or territory, exceeds a certain threshold, for that state. For instance, in NSW the current annual threshold is $406,000. This means that if the value of the land parcels that each of your physical dwellings sits on top of (i.e. not the dwelling value itself), is higher than this amount, added up, you are up for extra tax. This tax varies per state also.
Best way to avoid it? Structure a growth acquisition strategy that ensures a multi-state approach (spreading your taxation ‘risk’), as well as multiple-dwelling-types approach. For instance, units in large blocks of hundreds of units, have minimal land value, because the percentage of land value each unit owner is entitled to, must be divided up between many other occupants. However, smaller blocks of just, say, six units, in very land-value-high suburbs will likely have a much higher land-value per owner and this will push up their land tax closer to that threshold.
As a rule of thumb though, and taking the abovementioned NSW example in hand, you’d likely be able to own around six to seven modest or average units (in line with general median unit prices in NSW state, encompassing Sydney and all other regional areas), before breaching that tax threshold. Still, this is generic only and something you need to investigate with state taxation offices annually.
Needless to say, if you are only acquiring houses and not units or apartments, in just one state, land tax will become a serious concern for you and a cost that over time, will really hurt your bottom line.
 
Buyer’s agents aren’t always a good idea
Buyer’s agents have a paramount role in the real estate industry. For home buyers, they enable people who have very specific suburb/dwelling/pricing needs to access more appropriate properties, and usually before they come on to the market. For starting out investors, they enable time efficiencies by taking on many of the due diligence items you’d have to carry out yourself, if you didn’t have them on board. So, for the time-poor, amateur property investor, I do not doubt a buyer’s agent’s value add.
With that in mind; the costs are very high, in regards to the fee they charge for their services. Again, when starting out, this may be a justified cost because the buyer’s agent may get you a deal where the cost or equity saving is greater than their professional fee for doing so. However, over time, as you move on to the second or third property purchase you’ll have been around the traps long enough to have confidence to procure properties without a buyer’s agent. Or, at least you should. We are all time-poor these days but if you want to be a successful and profitable property investor, you need to know how to do the due diligence yourself, have confidence in that ability and avoid paying someone else to do that for you.

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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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Saving money in property investing: the costs to avoid and the habits to maintain

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One of the most important steps you take, very early on in your investment career, is to identify and decide what type or class of investment is going to work best for you. Those who don't seek professional advisers conduct their own intensive research and due diligence. Basically, those who educate themselves and learn as much as possible will always have the best start to investing compared to those who don’t.
But beyond that, it is those individuals who are able to maintain a momentum over the years – and not just treat their investing life as a ‘set and forget’ approach that should be left to gather dust – who fare better as investors and are almost always rewarded more handsomely for it.
Before even thinking specifically about property as a class, you need to consider it against other investment classes, to work out if it is right for you. Perhaps the best way to do this is to work backwards. Start first by giving yourself answers to the below three main investment factors:
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Personal life timing and situational variables - These are things like your current age, income and means, borrowing capacity to invest, perhaps marriage or family commitment status and so on – how will these factors affect my time and energy I can put into any investment?
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Knowledge and time limits - Your previous exposure to existing investment classes and/or your willingness to learn, and level of pro-activity and effort you can feasibly to put into researching and educating yourself with – how committed am I and how much time am I willing to dedicate?
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Your risk profile - Your level of risk you are willing to live with, remembering that all investments will always carry some degree of risk with it. Can I sleep easily at night, knowing a portion of my savings are tied up in something that is constantly changing?
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The investment class you decide on will be shortlisted simply by the way you answer the three above areas.
I’ll give a brief overview of the main investment classes that many people choose from. Through this, it may give you an idea of the commitment level involved, and top-line risks associated with some of the major investment classes. Though there are many more investment types beyond what is listed, it will give you a good starting place to learn more about asset classes. As mentioned above, seeking the advice of a professional adviser is arguably one of the best courses of action you can take.
Shares:
-          Easy entry/exit process, and minimal costs to do so;
-          Works well for investors with not much starting capital – you can purchase shares online yourself through many online platforms such as E*Trade, iShares, and CommSec;
-          Risk flexibility is possible because you can opt for ‘safer’ blue-chip, ASX 200 companies with high pedigree and proven long term performance. Or, if your risk profile is higher, you can opt for more dynamic start-up or rapid-growth companies where the risk is greater, but so is the return
-          Shares do not work well for those who will have trouble getting to sleep each day without some kind of ‘status update’ from their share portfolio. Whilst such updates are available in real-time, checking them frequently daily is probably not a good mental space to be in, if you are the instant-gratification persona type.
Gold:
-          Finite global supply, increasing global demand. This makes for a solid investment type;
-          Risk profile is moderate for gold, as macro-economic market influences can greatly skew or influence performance of gold at any moment;
-          Gold used to be one of the safest investment classes. However, its connection with share market volatility leaves it open to greater influence and fluctuation;
-          Despite this, gold is a proven performer when the global economy weakens – and especially when major currencies weaken.
Cash and fixed interest accounts:
-          One of the ‘safer’ investment classes mainly because these come with the assurance and backing of financial institutions such as the big-four banks;
-          Fixed interest accounts come mostly in the form of government and corporate bonds, effectively operating in the same way as loans;
-          Interest payments are regular, enabling investors to re-invest the proceeds and add a compounded growth effect to their investment;
-          With lower risk does come lower reward as earnings over time are more modest in comparison to other asset classes such as gold, property, and shares.
Property:
-          There are a number of sub-classes of property. Most people immediately think ‘buying a residential property’ as property investment, and for most people this is true;
-          However, this class includes commercial and industrial properties as well (full ownership per investor), as well as investing in property securities, whereby an investor commits to a larger pool of like-minded investors who invest in a group that secures hundreds and thousands of various properties across different property classes;
-          Whatever the investment approach, property is certainly a medium-long term investment class for most people as the entry and exit costs and process and expensive and slow. This means if you were to get in and then out again within a year administrative fees would likely wipe out any gains made;
-          With the exception of property development, those who are looking to make a quick buck are out of luck here. As mentioned above, the entry and exit costs for single-title-owner properties are to prohibitive to do so without making a complete loss on the investment overall. So this is a caution to those who prefer a faster paced performance class like shares.
So why choose property over other classes?
This is a question open entirely to different views, opinions, and belief. In short, property works for those who find it suits their risk profile and objectives, over a medium-to-long period of time. It won’t work for those with a get rich quickmindset. Personally, I value the complete ownership of a property, as the key unique advantage of this class. When I own a house or apartment, I own it entirely and am able to make all of the operational decisions on that property.
This is different to, say, purchasing shares in just one company, like, for example, McDonald’s. You may have bought your shares with the understanding that McDonald’s is a sound investment due to the products it produces being in high demand by consumers. But what if, overnight, McDonald’s chose to make all restaurants vegetarian-only? As an shareholding investor, you have no control over how the company actually operates. McDonald’s could lose two thirds of its customer base overnight because of the decision, and you as a shareholder would suffer the loss. An extreme and unlikely example, sure, however when blue-chip companies acquire and merge with others, changes to the company product lines and demand often result.
With property, even though operational decisions (for apartments and units anyway) are made in collaboration with a majority-agreed strata committee, this is usually on a much smaller scale, meaning your voice in any operating decision changes is that much louder. With houses of course, investors have 100% decision-making control over the ongoing management of that asset. So, with the right kinds of property purchases, an investor is able to have a real voice in the management of the running of the investment.
Considering the investment class that will work best for you is all about knowing the facts about each class and making an informed decision before diving into anything. Do not rely solely upon the verbal advice of friends or passing comments at dinner parties; do you  due diligence, seek professional insights, and go from there.
 
<hr>
 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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Is property the right investment class for you?

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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.
 
<hr>
 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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Those new to property investment are likely to be in a ‘discovery’ phase of planning, data, and research tools. These tools are important because they make an investor’s life much more time efficient, enabling them to move more quickly with property buying decisions.
Most new investors will have a basic knowledge of the main data sources for property searches and information, such as Realestate.com.au and Domain.com.au, but these are only the tip of a very large data iceberg.
With <a target="_blank" href="https://www.propertyobserver.com.au/residential/with-james-packer-onboard-can-zillow-break-rp-data-s-stranglehold-on-australian-property-data-cameron-mcevoy/2013100265437">James Packers recent part-share acquisition</a> of US property research and buying site Zillow.com, it is great to see some similarly sophisticated tools become available in the Australian market. The best tools use data from multiple sources, as well as an innovative perspective, to allow investors to glean valuable insights for their planning decisions.
Here are some great tools I've identified that should aid investors in their due diligence phase and to minimise risk of suffering from the dreaded ‘analysis paralysis’ that many new investors experience.
1) <a target="_blank" href="https://www.nextforsale.com.au/"> Next For Sale</a>:
I’ve placed this site first because it is new into the market and offers something that many of the other online property listings sites do not.
Next For Sale is effectively a free service that enables property buyers and sellers to get a sneak peek of properties that might be listed for sale yet – but have not been formally placed on the market:
-          Owners can use the service before they officially list their property for sale, to identify if there is any pre-existing market interest in their property, before any formal sales marketing tactics begin. By identifying whether there is high or low pre-existing market interest, owners can set a better or more realistic sales price (or a better reserve price for auction), which in turn could make for a faster sale.
-          Home buyers can also use the service to keep tabs on properties they may be interested in, but are not yet officially on the market for sale. This is a useful tool for home buyers because it allows buyers to identify homes that fit their criteria, outside of the stock that is offered to them by agents.
From an investor perspective, the tool also has great benefits. Home buyers are very much motivated by lifestyle factors in their need to seek a home and this translates to a more speedy property buying process. Factors such as a coming marriage, baby, an expiring lease, a low-rate mortgage environment, or sudden changes like death and divorce, are what drive most home purchases.
Investors, however, bide their time, most of the time! Smart investors know to sit pretty and wait until the right property comes along, before purchasing for as an investment. So a tool like Next For Sale enables investors to identify street patterns within their chosen suburbs, to get an understanding of where latent buyer demand is. This is great because it means where there is home owner demand, rental popularity follows.
The tool could then effectively be used to spy on a micro (street-specific) market within a suburb, and pounce only when the time is right. And when that time comes; you can create a dialogue with owners before any formal sales marketing process begins.
 
2) <a target="_blank" href="https://www.propertyvalue.com.au/">Property Value</a>:
This is an RP Data product/service and works on a paid model. The site offers a great variety of tools that allow customers to access detailed financial and historical data about a property, in relation to neighbouring properties. The services the site offers include:
-          Street reports, allowing users to access the actual sales price each property in their target street achieved, over a specific historical time period
-          Suburb reports allow for the above street-level data, but for an entire suburb. These reports are more expensive but provide great intel behind an entire suburb
-          Professional services, which is effectively access to a network of industry professionals such as valuers, agents, pest/pool inspectors, finance and mortgage brokers and so on
These tools are valuable to investors starting out; as well as experienced investors who do not have enough due diligence data on a new suburb they might want to expand their portfolio with, by buying into.
3) <a target="_blank" href="https://www.onthehouse.com.au">On The House</a>:
This service is probably the closest Australian-based tool to Zillow.com that we have. It enables users to look up specific suburbs, streets, or even properties, to identify any known sales history. The site uses data tools that plug in to provide known historical sales value data. Where it does not know the actual sale price, it speculates based on relatable data what the last sale price may have been. It also offers insights for the rental market, and connects users with local real estate agents close to the property or street in question.
The site is free to join and the granularity of data you receive with a free membership is substantial. Investors could use this resource to:
-          Form a view of a street or suburb in terms of the likely buy-rate they’d be willing to pay for specific property types
-          Assess the rental return achievable in a suburb based on data revealing the actual rents paid on leases. Though the main players Domain.com.au and RealEstate.com.au can be used in a similar way to identify rental return likelihood; OnTheHouse allows you to drill down superficially to ‘rental history’ only, allowing a full view of actual rents paid, not rent rates advertised. This is important as rental application ‘bidders’ can inflate the actual weekly rent rate, so the OnTheHouse data picks up on this.
4) <a target="_blank" href="https://www.realestateview.com.au/">Real Estate View</a>:
This site works similarly to RealEstate.com.au and Domain.com.au; being driven largely by property rental and sales listings. There are two key differentiators with Real Estate View, however:
-          Where most sellers (whether directly or via their real estate agent) tend to pay for listings with just Real Estate/REA Group and Domain.com.au, Real Estate View offers investors and home buyers potentially a fresh group of property listings that may not be listed with the two main players. It is like assessing the supermarket industry, where two major players (Coles and Woolworths) effectively dominate the industry, but other players such as Aldi and IGA also have solid product offerings.
-          The other benefit for investors is the ‘expert view’ editorial approach to the site. Where news stories and data on Domain and Real Estate are often generic, light, and not specific to precise topic areas within the gamut of property buying, Real Estate View brings highly credible industry professionals, working across a variety of key topic areas such as finance, mortgages, search strategies, renovation, tax, growth strategies, moving house, and market intelligence (data plugins).
5) Mortgage Calculator Tools
These tools really are a dime a dozen; with virtually every major and minor bank – as well as non-bank institutions like credit unions and mortgage brokerage houses – are offering to the market. There are different types of calculators on offer, and all are free to play around with:
-          Maximum lending calculators – uses your personal financial and lifestyle data to work out the maximum loan amount you’d qualify for (approximation only), with a given lender.
-          Loan repayment calculators – easily the most valuable to a would-be investor, these allow you to track the feasibility of committing to a loan for an investment property over time.
Though they are very common and all function very similarly, it would be most efficient as a time-poor investor to begin with using or speaking directly to a mortgage broker. The reason being is that running these tools against several individual banks will produce differing results, and take a lot of your time, to do.
The more efficient way to do it is to have a broker run your personal details and financial data, against dozens of prospective lenders, at the same time. This will enable you to shortlist lenders most suited to you, and also to assess lenders based on their product offerings and not just their competitive rates alone.
 
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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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Five online investor resources to help find your first property: Cameron McEvoy

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It is no secret that apartment renters have high expectations when choosing somewhere to live. This is because these property seekers often have to sacrifice some of the more desirable features that a house rental offers.
Features like added space, yards, and reduced noise are sacrificed to enable renters to afford to live where they want to livein a smaller space, like an apartment or unit. For example, if a two bedroom house with a backyard in a popular beachside capital city suburb was just as affordable as a two bedroom apartment or unit in that same area, the house would be in higher demand.
This is not to suggest that apartment seekers will just accept any property. If anything, apartment rental seekers are arguably more picky due to the additional challenges that apartment living brings. Things like noise, space, and privacy become bigger issues in an apartment versus a house.
Adding weight to this is the ratio of apartments to houses in highly desirable rental areas. Investing in an apartment-heavy area means you will be up against more competition to make your apartment more desirable than most, in order to command the best possible rental return in that suburb marketplace. With this in mind, as investors, it is vital we consider all of the things that may turn off would-be renters when purchasing apartments as investment properties.
Here are 10 areas where tenants have high expectations of an apartment or unit if they are to pay top rent for it:
1)      Location
Location is usually the main reason renters sacrifice other things. If you are considering buying an investment apartment in a great suburb, but in the worst or most inconvenient street within that suburb, perhaps reconsider that property. Especially true if the entire area is unit or apartment heavy. Location needs to be near all the core things; transport nodes, retail.
2)      Traffic and exterior noise
Tied to the above, renters are getting more precious about noise these days as metropolitan city traffic increases. Buying a unit on a main busy road in your chosen suburb is a risky move. The location may be convenient in terms of transport, shops, entertainment etc. But remember: many people are not heavy sleepers. You will put people off who are sensitive to traffic noise.
If on a main road, only consider units with double-glazed windows. If double-glazed windows aren’t fit, use this as a negotiation point when buying. Explain that you’ll need to spend money on windows to attract the best return for your investment.
3)      Internal and neighbour noise
 Modern apartment block architects, engineers, and designers are increasingly factoring noise levels to their plans. In newer apartment block constructions architects are using less common walls and also distributing balconies that prevent neighbours peering in or literally living on top of each other’s balcony noise.
In older stock though, this is a factor that few investors consider in their inspections, but is very important. Rental-seekers really do value privacy in apartments and you should too when considering which ones to buy.
4)      Balconies in general
 Yes, renters love them regardless of suburb. If you take two units of a similar quality/street/size etc. – one with balcony and one without – the one with balcony will always be a big drawcard for renters. This is amplified if the suburb does not have many public parks/bbq areas/beaches or spaces where renters can properly entertain their guests. Covered and lit balconies are especially considered by would-be renters which is worth keeping in mind when looking.
5)      Bathroom layout
This one varies so there is no hard and fast rule. Different renters expect or need different things. For example, a bathtub is coveted in apartments in middle and outer ring suburbs, as well as regional towns, as it factors well with the younger family market.
Families with young babies or children under five will always favour bathrooms with bathtubs. However in other areas where the demographic is more young single professionals, students, or downsizers, bathtubs may not be expected and in fact you could likely retain the same rental rate for a bath-less unit as one with a bath. Yet, the bath-less unit may be $10k cheaper to buy.
6)      Laundry facilities
Laundry needs should also be considered in accordance to your target suburb demographics. Bigger apartments for young families will usually expect an internal, separate-to-bathroom, laundry room. Inner-city studios though, may just have a laundry cupboard in their kitchen, or even less, a shared laundry room with other units on the same floor.
Talk to local agents and get a feel for what the demographic expects. That way, you won’t be overpaying or an apartment or unit purchase that includes features that your future tenant are not really willing to pay extra rent for.
7)      Parking
 You need to find out what tenants expect in your chosen suburbs on this one. Again, ask local agents what renters expect. Also ask what the going rental rate is for a unit with parking included, and one without. Then ask if different parking types attract higher rent (for example, a full lock-up garage for exclusively that unit’s tenants, versus perhaps just an unsecure, open-air spot for just that unit, versus a shared open-air parking lot that works on a first in, best dressed approach daily).
Once you know this, you can calculate the rental return achievable for different parking option apartments in relation to purchase cost; and purchase a unit that drives the best return based on that.
8)      Resort-style features
 Again, entirely dependent on the area, needs of the area, renter demographic, and cost. In some areas, the renter expectation is that lifts, pools, gyms, rooftop BBQ areas, and so on, will be included. Of course, they pay for this in the form of a higher weekly rent. You should exercise caution if you find an apartment for sale in your chosen suburb that is significantly cheaper, but does not include any of these features.
If you area is expecting these features, and your unit does not have them, you won’t be able to command high rent for your apartment. This difference in cost likely won’t be proportional to the returns you’d get if you just purchased a unit with the features that your market is expecting.
9)      The little extras
 Your chosen area may be expecting Caesar Stone bench tops, Italian tiling, jet bath tubs, air conditioning, and so on. Or, it may not. Knowing the difference is what you as an investor needs to figure out. That way, you will ensure you do not pay for features that your apartment renter is not expecting – or not willing – to pay extra rent for.
For this reason, my personal investor style is to select more modern apartments in areas where tenants do not expect the bells and whistles. Though these renters may be willing to pay extra rent for them, the stakes are heightened when these goodies are damaged or need replacement after long-term wear and tear. You can find yourself in the same rental-return advantageous position with a more modest investment apartment in a more modest area, if you are smart.
Doing this means that when things break, these capital costs are cheaper and easier to repair than complex ducted air conditioning systems, spa and Jacuzzi bathes, and so on.
10)   Quality of life. 
Basically, if your chosen area’s demographic favours things like community spirit, quiet/calm behaviour, then this expectation has a whole value of its own.
Why? Because above and beyond and physical or location-based features is this wildcard factor of overall lifestyle desirability. To identify it if this is desired in your target suburb, you just need to compare the rental return achievable for, say, a no-frills apartment in an average (so, not poor, but not excellent) street location within your target suburb, with a similar apartment in neighbouring suburbs.
If you find that the suburb prestige is very similar overall, yet two almost identical apartments (when compared based on factors #1 – #9 above) are commanding substantially different rent, that tells you that the quality of life must be very high in the more expensive apartment.
If you suspect this to be the case, you then need to confirm it. This is easy to do, providing you are not too shy. Just ask the neighbours. Yep, if you are putting an offer in at inspection knock on the doors of the other units, it doesn’t matter if they are renters or owner-occupiers themselves. Mention that you are considering buying and simply ask them "is this block a nice place to live?" They will open up to you.
 
<hr>
 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 10 things a tenant wants in a top dollar apartment: Cameron McEvoy

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A friend shared with me an interesting story about <a href="https://www.propertyobserver.com.au/news/packer-plunges-%24330-million-into-american-real-estate-portal-zillow-has-he-found-the-next-rea/2013090564809" target="_blank">James Packer’s recent purchase</a> of a stake in the U.S. site <a href="https://www.zillow.com/" target="_blank">Zillow</a>.
Most Australians would not be familiar with this site unless they had experience buying property in the US. The site effectively enables home buyers and investment property buyers to see recent sales prices of every property in the same street and suburb. It does this by overlaying price data from their own third party data collection source with Google Earth-like maps of the neighbourhood where the property is located.
The key success of the site in recent years has been mostly attributable to the fact that top-line pricing information and comparison is readily available for free when using the service. The paid subscription version then enables for much more granular data about the property you are interested in buying, as well as neighbouring properties. Prices are updated via database inputs in almost real time, meaning that market values ebbs and flows per suburb, and per city, really can be recorded and monitored as they occur.
With Packer’s purchase of a substantial portion of the Zillow enterprise (about 9.4%) it will be interesting to see how this company progresses. Could there be opportunity for Packer to extend Zillow’s offering to markets beyond the domestic US? If an offering such as Zillow were to be made available in the Australian market, this would change the dynamic of how people purchase residential property here.
There are tools available to would-be home buyers and investors to allow them to access pricing and sales data about residential properties in Australia. The biggest of these is RP Data. RP Data plugs in to many of the ‘free’ data sources that property seekers already use in their searches – for example, median sales trend data per-suburb, as supplied on sites such as Realestate.com.au and Domain.com.au.
However, the ‘free kicks’ that RP Data gives away to such resource sites are really just snippets of the true value that the data can show. Of course, more granular detail on specific properties is made available by RP Data’s paid services. Paid RP Data reports can offer the following intel and detail on properties:
Property ownership history:
Red flags can be raised if a property has consistently been bought and re-sold every six to 12 months, for a long period of time. It could mean there are structural problems; potentially unresolved strata legal issues with property developers, or upcoming approved expenditure in strata complexes that will require huge ‘special levy’ increases to fund them.
Property detail:
This will give the true dimensions of the land plot a property is situated on; which may not always correlate with the dimensions contained in the contract of sale. This is important particularly in high-land-value areas where every single square meter of land ‘lost’ (based on assuming the block is bigger than it actually is) could result in thousands of dollars of lost value for that property.
Valuation:
Though bank and independent valuers are called in to assess value of a property (and often they themselves will use RP Data tools to corroborate their inspection findings); RP Data does offer a true market valuation of a chosen property.
Comparable properties:
Some paid reports allow property buyers to see similar properties in the area and the prices these properties have recently sold for. This helps provide peace of mind to the buyer of the true value of their chosen property in comparison to similar ones, in that same market (suburb, or sometimes street).
There are <a href="https://www.rpdata.com/residential_property_information/residential_property_information" target="_blank">additional services</a> that RP Data reports can provide. Unfortunately, many property buyers are not purchasing the RP Data sales history reports for their shortlisted property, prior to negotiating the final sales price. This means buyers could be overpaying for a property, thinking that their negotiated price was a good deal and in line with true market value, when in reality, the price they paid was still substantially higher than the true value.
Regardless though, my view is that Zillow is a far better model. RP Data, under its paid model, can give some idea of comparable property prices in just that street or in some similar properties in that suburb; to have access to an entire city’s pricing data – so, dozens and dozens of suburbs worth of individual properties – would cost a fortune. Zillow offers top-line, real-time, pricing data for entire cities and towns, not just a few ‘similar’ properties in one suburb, and this data is very valuable.
Why?
Because although it is all good and well to make sure you are not overpaying for your chosen suburb, what if the suburb choice itself in the first place is wrong? This would be similar to saying ‘I want to pick the best seat positions in a cinema’ when you want the best movie experience, when in reality the more important choice is not always just about the seat position, but the cinema type itself (Gold Class/IMAX/VMAX v a standard cinema).
Zillow also plugs in and amalgamates many other useful data sources that local services such as RP Data, do not. This makes your due diligence work time spent more efficient and productive. Included features such as mortgage rate comparison from different lenders, real estate sales and rentals listings from almost every local real estate who is affiliated, as well as the major search sites out there (this would be the equivolent locally of having Domain and RealEstate.com.au plugged in, as well as every local agent operating in every suburb with their own sales listings) provide added value to Zillow’s service.
Additional due diligence data such as local demographic and infrastructure data (so, how many schools, hospitals, and so on, a suburb has; in comparison to neighbouring areas) are also useful to have in one place. In Australia, this due diligence intelligence must be sourced from other sites.
So, whilst Packer no doubt has his own commercial success objectives to meet in acquiring his stake in Zillow, it will be interesting to see where the future of such a service could go, if introduced locally. Providing that Zillow would have the means and investment needed to acquire and fuse the data streams locally to provide such an end-to-end research service, it would most certainly be of benefit to home buyers and investors alike.

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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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With James Packer onboard, can Zillow break RP Data's stranglehold on Australian property data? Cameron McEvoy

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As investors, sometimes the most efficient unit buying strategies for some locations is to consider or favour older developments. In highly renter-desirable locations purchasing older apartment stock usually come with a few advantages, such as:
- A more cost-efficient buy-in rate than new stock;
- Locations that newly built blocks just cannot compete with (such as unobstructed ocean views, or the quietest streets in a suburb otherwise full of noisy, congested arterial roads);
- Oftentimes larger apartment square meter space;
- Opportunity for renovation and modernisation to both add capital value and also increase rental return.
This is not to say that buying new or near-new stock does not have its benefits. In many instances, you will be better off in your selected suburb or street to purchase newer stock. Depreciation schedules look much more tax advantageous, unit layouts are usually more befitting a 21st century lifestyle and this is attractive to would-be tenants, plus features and facilities are usually far superior than older blocks.
However, I’ll focus entirely on older blocks and ways to add value to them. Some of the ideas I have successfully implemented myself, whilst others I’ve observed peers and colleagues who have had positive rental return knock-on effects from such renovations. Some elements are things you can do within your own unit, whilst others are things that can add value to the entire block, but as such require voting-majority agreement in strata committee sessions.
 Adding secure entrance doors to the block
This is a project I am actually in the middle of, with one of my investment properties. Older blocks, say those of circa 1950?s through to 1990?s, are almost always your usual apartment block affair; being typically a three-floor ‘walk-up’ brick block.
Most blocks will have anywhere from four to t12 units, across two or three floors. These kinds of blocks would have originally been fitted with a basic wooden entrance door to the building. Some buildings do not even have a lock feature on these doors, and some in especially poor states disrepair do not even have a door at all!
Tenants value security when it comes to apartments and units, especially in inner and middle ring suburb locations in cities. Adding a modern, intercom-connected, secure aluminium-and-glass door system will add peace of mind to tenants living in that block. It will also add value to every unit in the block for this reason.
The challenge with implementing this of course is that being a shared problem; it is a strata solution. This means that there needs to either be enough money in the sinking fund to pay for it, or a special levy will need to be raised to pay for it. In either scenario, the strata committee and members must vote on such an addition to the building and a majority must indicate their preference to have the project done.
To give you an idea of scope, the property I referred to at the moment has been back-and-forthing the security door installation issue for over twelve months. First, the vote had to occur and be won. That took time. Next, multiple contractor quotes were required for submission, again taking more time. The strata committee had to then agree a candidate contractor. Finally, the contractor is still yet to commit to starting the work. Due to this issue affecting all tenants, we also must advise tenants well in advance of the works to be carried out.
Secure letterbox installation
This is a less labor-intensive renovation than a security door, but still it requires the agreement and funds allocation of the voting strata committee. Just like their personal security, tenants are increasingly valuing more secure letterboxes in older building.
Why? Because the fastest growing ‘category’ of crime in the world is not murder, traditional kidnapping, armed robbery and so on. Instead, it is a far more profitable and lower risk crime:  identity theft and digital theft of bank accounts, data, and personal information.
And it is happening all over the world. Russian organised crime and mafia families for instance, are transitioning from being leg-breaking, murderous, threatening gangsters to digital, thieving, and threatening gangsters. Identity theft via the hacking of social networking data to illicit sensitive personal banking and financial data, is becoming more and more common.
So is the instance of letterbox-raiding. This is because the letters you get from banking and financial institutions contain the ‘missing link’ information that, when combined with hacked digital data, adds up to be an almost-complete profile of a victim. From here, criminals are able to connect the data types and contact institutions, enabling them to steal money and other sensitive data from the victim.
Older blocks have decaying and easily breakable letterboxes where data thieves can access your information, so by having a modern secure letterbox be built, it gives renters a further comforting peace of mind. Usually these are built directly on top of an old brick wall style letterbox. The old letterbox holes then get a metal sheet covering them, which usually spells out the block number and building name too. These look quite nice and add a modern touch to older units; making them easier to see from the street and identify, when visitors are trying to find the place.
Maximising common property space to fit more parking
This is a much less common strategy but one worth mentioning. Take for example an older 1970?s, three-floor walk up block. Let’s say there are 12 units on it, with uncovered parking lines that can fit eight cars in it.
Usually in these instances, the eight parking spaces are not ‘on-title’ belonging to any unit. That effectively means that the 12 occupants must randomly share the eight spaces. It also means that when selling a unit in this block, the owner cannot sell the unit stating that it comes with its own parking space. In some suburbs in inner-ring areas of cities in Australia, a unit with dedicated parking can be as rare as hen’s teeth.
Typical in these older blocks too, are large clothes line areas (the old ones that screech when the wind blows them around in circles). If you are able to get the agreement of the strata committee to fund the investment; some blocks are converting the clothes line areas into extra parking spaces – enough to make a spot for each unit. The clothes lines are then replaced down the side of the building with modern space saving wall-mounted fold up clothes lines. The lawyers then draw up a new strata plan that allocates on title one car space per unit. This is the most expensive part. The valuers are then brought in at the end to assess each unit value now that it features a dedicated on-title car parking space.
This strategy will not be right for many blocks. In fact, in some suburbs, the costs involved above to add the improvement, may not be returned in terms of the value-add that on-title car parking spaces, per-unit, will give. However, the value-add will occur both in rental return increase of some degree, and capital growth over all of every unit value.
 
<hr>
 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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Three tips to increase rental returns in older apartment blocks: Cameron McEvoy

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With our increasingly urbanising population in Australia comes a race for space of sorts in our major capital cities, where desire to live in them remains high and is growing.
Like many geographically large nations around the world such as China, Brazil, and Russia, despite the seemingly endless supply of land these countries have, people are preferring to value the convenience of an urban lifestyle at the sacrifice of land and space.
I’ll take you through eight innovative changes or improvements that investors are updating their properties with in order to attract the best rental returns. These trends cover off things like space maximisation and the growing urban desire to bring the rural or country creature comforts into urban spaces.
The key thing is that these trends are happening in smaller, urban properties where space maximisation and lifestyle convenience are the things renters are seeking. Investors ought to take note as some of these can be quite cost-efficient to implement, and could see the rental returns increase as a result.
<img style="float: left;" alt="number-1" height="35" width="24" src="/images/stories/2013/09/17/number-1.jpg">Veggie ‘feature’ gardens: These are popping up in tiny terrace back (and front!) yards in suburbs in inner-western Sydney and south-east Melbourne. Basically these are a small dedicated veggie patches – perhaps just 1 metre x 2 metres – planted in a front or back garden where space is limited, as a feature garden. The gardens achieve three core design functions: 
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<div>-          Creating visually pleasant focal point for small gardens;</div>
<div>-          Saving much-needed space for entertaining – also high priority for inner urban renters;</div>
<div>-          Addresses growing urban renter demand for ‘grow your own’ produce</div>
<img style="display: block; margin-left: auto; margin-right: auto;" src="/images/stories/2013/09/16/mcevoy_sept_16_one.png" width="381" height="214" alt="mcevoy_sept_16_one">
<img style="float: left;" alt="number-2" height="35" width="31" src="/images/stories/2013/09/17/number-2.jpg">Elevated deck with under storage. According to US site <a target="_blank" href="https://Houseplans.com">houseplans.com</a>, these are trending well with ‘tiny’ cottage style homes; similar to the workman’s terraces/cottages in Australia. Elevated back yard entertaining decks have been including dedicated, secure, and weather-resistant storage ‘bins’ underneath them. These bins, or drawers, literally roll out from underneath the decking and free up space in otherwise cramped small properties.
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<img style="float: left;" alt="number-3" height="35" width="26" src="/images/stories/2013/09/17/number-3.jpg">Kitchen/study combos. Weaving in to apartment design in several upcoming Australian developments are kitchens that can double as a study space when needed. These work by allowing an entire cabinet wall (usually a floor-to-ceiling pantry wall), to have a hinge half way down so that the top half of the wall folds over 90 degrees. This creates an office bench when needed and is a good feature of micro-apartment design (units of under 45 square metres), where space is particularly lacking.
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<img style="float: left;" alt="number-4" height="35" width="26" src="/images/stories/2013/09/17/number-4.jpg">Wall dining storage: Similar to the convertible kitchen cupboard/study desk above, some micro apartment designs are including TV unit wall storage that actually store a dining table and four dining chairs on racks, to save space when not needed. <ol></ol>
<img style="float: left;" alt="number-5" height="35" width="26" src="/images/stories/2013/09/17/number-5.jpg">Filtered water taps. By no means are these a new trend. However, what is trending well are older-style apartments who are installing water filter taps to existing kitchens. Water filter taps make older apartments more desirable, particularly in inner-ring suburbs. These are easy to have installed when in between tenant occupancies and are a capital cost that can be added to your depreciation report within the financial year they are installed. <ol></ol>
<img style="float: left;" alt="number-6" height="35" width="26" src="/images/stories/2013/09/17/number-6.jpg">Pre-fabricated building design. Melbourne’s International Flower &amp; Garden Show was abuzz with word of this design material. For investors the value of using pre-fabricated wooden panelling in any small front or back yard renovation is cost-efficiency. Some investors use it to create ‘backyard rooms’ which are effectively an oversize cubby-house for adults. This can add a covered entertaining space to small urban courtyards that previously had no entertaining function, for a reduced cost. Additionally these add as a striking design focal point in the yard, in turn attracting tenants and maximising rental return.
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<img style="float: left;" alt="number-7" height="35" width="26" src="/images/stories/2013/09/17/number-7.jpg">Wee tree wall gardens. Funny name, handy cost-efficient addition. The wee tree wall trend started out in Chicago but is appearing in Australia too. When there is no courtyard or balcony space for a ground-planted garden, but when you want to cost-efficiently add greenery and a dynamic focal point for the space, these wooden-panel walls can be built and installed cheaply. They work well to either hide an ugly wall, or to create a garden where there was no space in the ground previously to do so. The wall slats have shrubs planted across all the gaps, adding a sense of nature to otherwise cramp and industrial-feeling urban yards. Again, these add perceived value for minimum cost, working to attract premium rental value for a property.
<img src="/images/stories/2013/09/16/mcevoy_sept_16_two.jpg" width="468" height="309" alt="mcevoy_sept_16_two">
<img style="float: left;" alt="number-8" height="35" width="26" src="/images/stories/2013/09/17/number-8.jpg">Clever Use of Mirrors. Again, nothing new with mirrors being used in small spaces to add the perception of more space. But it is the clever use of them in renovations that is innovative. Mirrored bottom-shoe-drawers inside wardrobes that angle so shoes are visible when the drawer is only slightly open, are trending well for urban spaces. These save people from sifting through shoe drawers when they are busy whilst also saving storage space. Wall-to-floor mirrors in living spaces duration renovations are also an age-old manoeuvre to convey a more spacious living area.
 
<hr>
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" rel="nofollow" target="_blank">Property Correspondent.</a>
 
 
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Eight quirky design features catching the eye of urban renters: Cameron McEvoy

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Starting out with your first investment property always has been, and probably always will be, a daunting process for most people.
No matter what the economic, political, and housing industry climate is at the time, there will always be multiple challenges that new investors face.
So what trends are emerging in the current Australian market, and what are the things to be cautious of?
I have compiled a list of six things I’d argue should be major considerations for any investor who is freshly starting out on the property ladder.
1) From a mortgage-repayment perspective, I would treat the next two years of your first investment ownership as a honeymoon and be ready for a sobering awakening in the years that follow. Interest rates are indeed near-bottom of market and though there are market slow-downs occurring and rising unemployment, interest rates will trend up in the coming years. 
Like most would-be problems for property investors, the safest way to avoid finding yourself in a stress-laiden situation in two-three years’ time is to do you due diligence. In this case, due diligence comes in the form of forecasting. Either your mortgage broker, lender, or yourself (with a little bit of Mircosoft Excel elbow grease) can create forecasted repayment scenarios, charting a variety of interest-rate increase situations.
My recommendation is run a modest increase, and another one that is more extreme (for example, what if interest rates hit 10% in three years time?) and assess your serviceability in line with these increases.
Remember also to forecast rental income increases annually that would be consummate with the average rental increases year-on-year, in the target suburb you are buying in. Doing this assessment will tell you in advance how easily you could (or couldn’t) hold the property during tougher times.
2) If your strategy is to purchase off-the-plan or purchase newly constructed stock, you’ll most likely be playing in the unit market. With units, one of the many golden rules is location and proximity to services, infrastructure, transport, and lifestyle.
Oftentimes the highest demand markets are inner to middle ring suburbs of major cities. One of the current trends in new developments going up in several cities, including Brisbane, Melbourne, and Perth, are <a target="_blank" href="https://www.propertyobserver.com.au/developments/six-star-vertical-village-apartments-come-to-brighton-genevieve-brannigan/2013082064213?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=ourobservers:adviceandanalysisforreaders">‘vertical villages’</a>. 
Vertical villages are worth considering in light of many councils around Australia recently introducing development restrictions that prevent medium to high rise apartment blocks being built in highly-sought-after suburbs. This type of living combines many desirable features that renters would seek out in such suburbs: location, mod cons, services, and most critically, the rising trend of avoiding living in high-rise hell.
3) Consider your gearing comfortability in light of recent instability in the Australian economic climate. What is trending upward in the last year or two is investor strategies migrating more towards neutrally or slightly positively geared investment properties, versus heavily negatively geared properties.
You need to ask yourself how comfortable you would be in feeding money into a ‘loss-making investment’, moving forward. This is somewhat tied to the first trend of avoiding the romance of honeymoon interest rate lows, because hikes in interest rates will usually find some otherwise netural or buoyant investors struggling to stay afloat.
Whether it is your first investment property or an addition to a growing portfolio; you need to assesss how comfortable you are with debt, in relation to your goals. If solid capital growth is your objective, you may find yourself holding negatively geared property. But what happens when rates go up, and your slightly negatively geared asset becomes hugely negatively geared?  
Negative gearing is a strategy that, in my experience, really only works over a prolonged or sustained period, for the very high-income earners (say the $250+ earning households). It can be effective for those of us earning more modest or national-average salaries, but really only in the initial growth phase of your property investing career.
It is wise to be cautious on this front; after all, there is good reason why investors are trending away from negative gearing strategies at the moment.
 
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4) The impact that foreign investor-driven buyouts is having on some locations. In some desired suburbs of capital cities and regional/rural towns, foreign investors make up a significant portion of the overall buying group. Recently it was reported that the <a target="_blank" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2013-06-07/chinese-market-develops-growing-appetite-for-sydney-real-estate/4739992">growth of the Chinese middle-class in China is resulting in increased Chinese buyers in the Australian property market.</a>
I have also recently investigated the nature and culture of the Chinese investor in the Australian property market. The biggest concern for local investors, when foreign investors play heavily in a market or suburb, is that prices can sometimes be artificially inflated beyond the true value of a property.
To document and follow this trend precisely is a challenge, as there is no finite way of knowing the nature of every investment property purchase in relation to country-origin of the investor making the purchase. By that I mean that some foreign investors may potentially invest via an Australian-citizen relative, which would skew any data that just singles out foreign-born/based investors.
What can be more ascertainable though, is data obtained from sources such as RP Data, which does record the proportion of foreign-investment within a suburb. When considering a suburb for investment, it is worth seeking an assessment of the levels of foreign investment in that suburb.
5) The other trend emerging is relating to schools and education facilities. Though Australia is famously an ageing population, there is a demographic trend highlighting a mini baby-boom occurring in many pockets of Australia.
This means that the demand for quality schools will be on the rise, as these babies grow up to school-entry age groups. So, it makes sense to consider investment locales that have highly desirable and reputable schools in them, or locations where the construction of quality schools is in the process. 
The problem is that this trend is nothing new. The desire of many parents to send their children to quality schools is so fierce that some families are willing to move entire suburbs, and pay a higher premium to live in that suburb, if it means being within the catchment zone of a well-regarded school.
Areas such as Sydney’s Burwood for instance, are by no means glamorous or luxurious locations by their own right, but these kinds of suburbs do come within catchment zones of excellent schooling. This in turn bumps up not only capital growth prices, but also rental return too (particularly for family style houses versus 1 or 2 bedroom units).
It would be smart for any would-be investor to seek out locations where quality new schooling is emerging.
6) Just as some foreign investors are investing in Australian property, so too are Australians investing overseas. The United States was arguably the most popular and well-reported Australian foreign investment property hotspot trending for Australian investors.
Due to mostly the US economic recovery, also in part to the weakening AU dollar and a variety of other contributing factors, Aussies have moved away from US property markets significantly.
So what markets are emerging overseas, for the more high-risk-profile investors out there?
Well, accoring to a Price Waterhouse Coopers ‘<a target="_blank" href="https://www.pwc.com.au/industry/real-estate/publications/real-estate-asia-pacific.htm">Emerging Trends in Asia Pacific 2013</a>’ report, Indonesia, specifically Jakarta, ranks highest as the city recommended for investors to buy, hold, and sell in, within the region. Sydney comes in at position #4, beaten by Tokyo and secondary Chinese markets.
Yet it is Indonesia where many Aussies are finding opportunity. Like the US was a few years ago, Indonesia offers buy-in rates that are a fraction of those found in Australia (and for this reason Aussies will likely avoid Tokyo due to the enormous buy-in costs).
Well-positioned property in developing neighbourhoods of the urban sprawl city that is Jakarta, is certainly trending up for Australians. Rental returns are typicall almost always in the double digits.
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Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" rel="nofollow" target="_blank">Property Correspondent.</a>
 
 
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Six emerging trends for new property investors: Cameron McEvoy

<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

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“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

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[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

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Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

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Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

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Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

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The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

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Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

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Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

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Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

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Cameron McEvoy

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