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It sounds simple enough. You embark on a journey to find the perfect property. This could be either your dream home to live in or that next investment property to add to your portfolio to make a sound return and a nest egg for the future. It doesn't matter if it's a tiny studio apartment with one window or a grand palatial manor on acreage, you've decided now is the time you want to take that plunge. And good on you!
So you do your due diligence, research, and investigation, all to get your ducks in a row. And now, armed with your precise budget, list of “needs” and “wants”, and target town/suburb/city, you hit the market to go shopping. Better still, your peers, your friends, family, colleagues, and mentors are all saying, “It's a cooler market, you'll pick up a great bargin!” This all sounds great! Off you head to your first weekend of open home inspections with a whimsical spring in your step. But as you look at places you start to ask yourself, “How do you I know if this is a bargain?”
Before you can know if you have found a bargain, you must first think about how to define the word itself, because it actually means different things to different people. More commonly, people tend to associate the word “bargain” with words like “cheap”, “reduced”, “discounted” and “low-cost”. And personally, those kinds of definitions are the first things that come to mind when I hear the word. I'd even go one step further and say that before becoming a property investor myself, my expectation was that a bargain is price reduction. But a true bargain, should you find one, can be so much more than this.
I got to thinking about how you can go beyond price and got stuck on the letter P. This is a good thing. My definition looks something like the below. And note, your perfect bargain could be just one of these factors, a mix of a couple of them, or indeed a blend of the entire list. It all depends on the property itself, and your attitude.
Price:
Yes, I put it up top. Undoubtedly, if a three-bedroom house in your target suburb medians at say $600,000, and you've found one asking $500,000, it's worth a first look. And lots and lots more looks. Price is a great indicator, but remember, a heavily discounted price is heavily discounted for a reason. You'd just prefer that reason to be something like a foreclosure, unfortunate death, etc, rather than say, an entire house needing re-stumping.
Potential:
By this I mean scope for renovation or improvement. Improvement isn't translated as renovation! For instance, a townhouse on a hill, 10 kilometres from the city, with a giant tree in the front garden. It just so happens that tree is blocking a magnificent view of the skyline (or beach, or mountains, or whatever). You know if you had lopping approval, that view would add instance value. Or, indeed, it could merely be that a couple licks of paint refreshes it completely.
Position: 
Location location location is what they always say. The good old “worst house in the best street” comes to mind here. Truth is, it's more than just the location of the dwelling, but the position of other factors (is it north-facing? Does it have a great view? Is it a quiet street?).
Prestige: 
There is the obvious prestige of the suburb/neighbourhood itself, along with the street within that neighbourhood. But what of other prestigious things? Unique architecture, for one. Everyone seems to go ga-ga for Art Deco, for instance (even though we know agents market some properties with the dubious tag “Art Deco-style”), and true Art Deco indeed only exists in a finite number of properties. Why? They simply aren't making that style any more. Or it could be more topography. Sure, position takes care of best suburb/street, but what of that amazing golf course/marina/country club nearby? Future buyers of your property might find this locale hugely prestigious.
Let's take an example that actually happened to me recently. I inspected a property and was convinced it was a bargain. It was a top-floor two-bedroom renovated apartment in a very popular Sydney inner-west suburb, in a quieter street with a private leafy outlook and many other trimmings. It was going for the same asking price as others in the area, unrenovated, on busier roads. I knew I had to act quickly. The property was listed only on Thursday, and Saturday was to be the first viewing. I knew right away that there would be no second viewing needed, and I was right – it was snapped up less than 11 minutes after the viewing timeslot finished! How do I know? Well take a guess who put the first offer in? Yours truly! The agent emailed back, seconds later, advising an offer was made at asking price. I would have happily paid more because I was confident it was a bargain, but I knew I was already at my comfortable maximum (sometimes you have to know when to walk away). The place had a great mix of price, prestige and position. Sure, the potential was minimal because it'd been renovated, but the other three elements made it a true bargain.
Many markets throughout Australia are indeed in a cooling phase. This is a natural cyclical occurrence in the grand scheme of any property market, and rookie investors should not be scared of it. While the tabloid and fear-producing media may bolster some bold, attention-grabbing headlines likening the state of the property market to, say, the world ending in December (or something equally as dramatic), the reality is the market is in a downswing. The lesson to impart here, then, is that not only can bargains be found and had in all kinds of markets (hot, cold, and everything in between), but bargains can exist in many different flavours (price, potential, position, and prestige). You just need to access which flavours taste better regardless of the temperature.
Cameron McEvoy is a property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" target="_blank">Property Spectator.</a>
 
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There is more to a property bargain than price

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<a href="https://www.propertyobserver.com.au/landlords/the-importance-of-good-tenant-selection/2012030453664">Recently I'd been observing the challenges of tenant selection</a> and the difficulty of finding rental accommodation in a market with low supply volumes. This prompted one reader to ask some questions around the idea of living in a home and investing elsewhere, versus renting or staying at home and buying and investment property. It is indeed a challenge faced by many young Australians looking to get onto the property ladder.
In fact, there are two popular investment trends that are emerging in some of the lower rental supply markets in recent years that have really taken off within the young investor community. Of course we all know of traditional “owner-occupier” approach to investing, as in, you save a deposit for your home, or “principal place of residence” (PPOR), buy and move in for a couple of years and wait until you've built enough equity to then buy an investment property.
But what of alternative options that young investors are doing to help get ahead, and also run from the pressure of a big mortgage repayment, while on comparatively lower (or “career-establishing”, as I like to call them!) salaries?
The notion of being a “renter-investor” came to prominence in recent years; and as someone who is a renter-investor myself, I thought I'd weigh up some of the pros and cons of owner-occupying and then investing, as opposed to renting and investing. Additionally, I started out as an owner-occupier/investor, so I've had experience in both.
Owning your own home and then investing:
Pro: The security of not being asked to leave after six months of tenancy.
Pro: You can personalise the space you live in and greater freedom to decorate as desired.
Con: You cannot claim any of the tax benefits of living in your own home unless...
...Pro: You rent out bedrooms to a boarder, entitling you to apportioned tax deductible expenses (effectively making your own home partially an investment property).
Pro: The advantage of being able to live in the area/suburb/street where you want to be. Renters are often at the mercy of accepting less than their ideal locale.
Con: You are at the mercy of paying the additional costs involved in home ownership (strata for units, council/water rates, house maintenance, repairs, etc) without any of the tax deduction allowances, making owner-occupying very expensive when coupled with mortgage repayments.
 
Investing while renting: 
Pro: Cash flow month to month - it's easily considerably cheaper to split bills and rent rate.
Pro: Probably the biggest one – you free up cashflow to save harder for a deposit on an investment property.
Pro: Many options exist within this: couples moving in together to split costs; friends can flat or house share to split costs; or simply living with parents and paying a little board can keep costs down.
Con: Insecurity of long-term tenancy. Owners can sell/move back in/even demolish the property you're renting.
Con: Costs aren't fixed; leases tend to hike up in rent at the end of one lease and the start of another one.
Con: Depending on whom you're living with, the challenge of personality clashes or inconvenient lifestyle issues with accommodation sharers.
Con: Lack of freedom in personalising your home.
My view on what gets you further ahead? It all depends on your goals. Ask yourself, is owning your own home the real end result you're looking for, or is it simply financial stability? At the end of the day, investment property is all about building wealth for your security, so do you really need to live in the security that you own? Both options will help you work towards achieving your goals – in the end you are still investing, but there's no denying that those who can share the cost of living, even for a couple of years in that tough starting-out phase, can build equity and savings quicker, to get them up the ladder faster.
Cameron McEvoy is a property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" target="_blank">Property Spectator.</a>
 
 
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The pros and cons of buying your first property as an investment and continuing to rent

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Recently I found myself thrown back into the rat race that is the Sydney rental market – as a hopeful renter. While I am an investor myself, I am actually not an owner-occupier at the moment, choosing instead to rent with a friend to both save on costs enjoy a change of scenery. But due to personal and work-related reasons, I'm looking to relocate to the other side of Sydney. So, I've once again found myself at mercy of leasing estate agents. And aren't they a tough lot! 
But this time around I bring with me a different perspective, one that has prompted me to write today to would-be and active investors out there, on the importance of tenancy selection. Both I and my flatmate-to-be are in our late 20s/early 30s and have long-term employment with decent salaries. We each have assets and a flawless rental tenancy history. We applied for a number of properties using as many tactics as possible, including the usual offering more money, providing more I.D, rental ledger and references, etc. than required in our application process. Where possible we also had our applications pre-completed, so upon favourable viewing we were able to submit them on the spot. 
For most of these rental applications, we weren't successful. Once we got over the usual “Why didn't they accept us – we're perfect tenants!” emotions, we did end up sourcing a place to live. 
However, the process made me reflect upon my own tenant selection experiences. Sure, as an investor you've likely taken out insurance to protect against tenant property abuse and loss of rental revenue, but finding good tenants offers so much more to an investor than just this. The “right” tenant will be longer term (ideally you'll get a good two or three years), saving you money on vacancy periods, stress and time wastage of finding new tenants, and above all, peace of mind. 
So I thought to myself, why not interview some of the agents who'd rejected our application in favour of others, to see what insights I can gain on the perception of what makes a “good tenant” by landlords in the Australian market? And what did I find? Some surprising things, some not so surprising. As a landlord myself, it came as no surprise to hear the agent say “Even though you offered $20 more per week in rent, the owner selected other tenants”. This is a strategy I encourage to all investors. If your leasing estate agent is worth his salt, after the open home, hi will have received a solid volume of applications, some of which will offer more money per week. Never let this be the defining factor to tenant selection. 
Instead, you should be looking for other things. Stability and longevity of income/revenue stream provides you the security and stability that the tenant won't skip town, leaving you months behind in mortgage repayments. This is important yes, but honestly, insurance can protect you for that. What insurance isn't so great at protecting against is vacancy. Treat vacancy like the plague – it is effectively “bad debt”. So look for applicants who stack up but also request longer-term leases, and applicants who have been in a previous rental for at least two years and a job for at least four. 
So, initial disappointment for me paved the way to logic and then self-assessment/reflection. Experiences you have “on the other side” of property investment can influence you and bring new perspectives. And that is something we can all take note of.
Cameron McEvoy is a property investor and maintains a blog, <a target="_blank" href="https://propertyspectator.blogspot.com.au/">Property Spectator.</a>
 
 
 
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The importance of good tenant selection

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Let's be honest; the outlook for 2012 is probably best described as “turbulent”. Some of the more influential voices in the community (Michael Yardney, Catherine Cashmore, for example) are touting 2013 as the more positive year for investment property.
With 2012 being an arguably tough year ahead, young investors feel the stress of this as much as, or even more than, experienced investors. This is because even at the best of times, new investors face the challenge of discerning mass volumes of data, stats, opinions, and trends, so in more ambiguous times, navigating the brevity of data becomes an even greater challenge. More and more conflicting opinions and even hard data (numbers, statistics, and trends) become harder to understand.
From here, new investors begin to question not only the data, but their own skills in interpreting it. They begins to lose trust in themselves and ask questions like, “What am I getting myself into?” and “Am I just throwing money blindly at something and hoping it works?”. You're not alone in doing this; I too go through these doubts from time to time, all based on the conflicting information I uncover.
One of the best ways to combat a case of analysis paralysis is to invest in your own property sleuth skills. Become like a detective; don't be afraid to follow a hot lead based on instinct, and remember to use all of your instincts and logic to lead to you the answers you seek. This means using logic such as questioning current data/numbers and comparing it to historical data, listening to the opinions of experts and agents, and comparing these with market sentiments observed on trusted media sources such as Property Observer and community blogs. As for instinct – go with your gut feeling. Sometimes a great deal that just doesn't feel right, probably isn't right for you. This does not mean it isn't a great deal – it just isn't the deal that's the right solution for your brief.
It's like anything in life: you need to use logic and instinct to achieve the best results. For example, lately I've been trying to improve travel time on my 15-kilometre journey to work each day, so I can map out a new route that gets me there faster. So the logic-based influences that I deduced were things like; Google Maps (for the shortest distance map), personal experience of the busiest stretches of the journey and the number of traffic lights I encounter on such a journey. Then there are the instinct-influenced factors, such as knowing the likely effect that bad weather has on traffic congestion, plus the day of the week it is (Fridays for example have a different flow to say Tuesdays).
Absolutely do your due diligence on any property decision you set out with,yes, but remember to use both logic and instinct when arriving at decisions, and you'll be making the best and most informed decisions you can. So trust your sleuth skills, listen to others, but invest first and foremost in yourself first, and in property second.
Cameron McEvoy is a property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" target="_blank">Property Spectator.</a>
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Trust your property-buying instincts

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Today I'm coming to you from inside a plane. I'm writing this post en-route to Dallas, Texas from Sydney. Sure, the main purpose of the trip is a holiday, but I'm also there to observe on the local investment property market.
American property is slowly but surely recovering from its 2008-09 foreclosure nightmare, and while the US economy is not the best it has been, there are early indications that it's beginning to turn around. While I am certainly no economist and am aware that the above sentence is a bold statement, it does ring true when speaking to local agents and experts on the ground. There are certainly markets that are not recovering – in fact, that are getting worse (Cleveland, Houston, and Chicago, to name a few), but many other markets that have bottomed out and now showing signs of a slow recovery.  Suburbs in cities like Phoenix, Detroit, Seattle, and Houston have taken a huge hit in recent years, with some house values reduced down by over 70%. There are many stories of three-bedroom houses in good suburbs that were once fetching the $300,000 to $400,000 price range. These same houses today can be picked up for a fraction of this cost, many even in the sub-$100,000 bracket. So, if America is tipped for a comeback, many investors view these properties as “easy growth money”. Effectively; buying at the absolute rock bottom and then playing the waiting game in the years that follow. Sounds great in principle. But the question remains; do the complexities of not only procuring property in this country but holding and managing it from afar equal the potential for gains in future years? So, my trip will involve some research. I'll be sure to write post more in coming months as I learn about the market and the intricacies of holding property there. I personally have not taken the plunge into the US market. however I am considering it. But until then, I'll leave you with a list of some pros and cons of US investment property, written from the perspective of one young rookie investor to others like myself. Pros
<ul>
<li>Low entry point. For young investors in their 20s (or even late teens!) on limited incomes (say, under $50,000 per year) and limited initial deposit (say $25,000 of savings), the US is a very appealing market.</li>
<li>To buy a US property, you must get a mortgage from a US bank. These mortgages are typically one to three percentage points below AU ones, thereby reducing interest and repayments from day one, which is great.</li>
<li>The biggest pro is that most buys are instantly cashflow-positive. This means that even if the US takes years to recover (resulting in zero capital growth for a few years), the rental returns are still very decent. For instance, some four-bedroom houses in areas of Texas and Arizona are able to command around $250 per week in rent ($1,000 per month). You could command the same weekly rent ($250) in Australia for, say, an outer-suburban two-bedroom apartment, the difference? That 2-bedroom apartment in Australia may cost you $220,000-$260,000 to buy, whereas the four-bed house may only cost $100,000 to $120,000. Already, you are ahead here.</li>
<li>Prices in some markets have bottomed out so much that there is nowhere to go but upwards. As in, the houses can't get cheaper because at the rates they are now, they literally cover the cost of the bricks, roof, and fittings, with the land value being that of basic rural acreage. So there is very little chances values can actually get “worse” in such places.</li>
<li>With that said, there is a great opportunity for capital growth. While it is a gamble in terms of knowing which cities/states are likely to recover first; there is certainly excellent potential for a property that is both high on rental-return and capital growth (which is a rarity in Australia).</li>
</ul>
Tax benefits. I need to explore these further; but my basic understanding is that it could be tax-advantageous for those earning under $50,000 a year to hold an investment property in the US. Cons: <ul>
<li>Whilst entry costs are low, they are not without their complications and restrictions in terms of finance. For example, the minimum mortgage product a bank will sell you is $50,000 of mortgage (actual value of the loan). Yet they still command a hefty deposit (typically one-third of the buy rate). So if you're buying a $75,000 house, you'd need $25,000 down as deposit/savings, a $50,000 mortgage, plus other buying costs (legals, fees, inspections, research, etc,)</li>
<li>You need legal counsel in both countries when settling a US buy, so in other words, doubling the legal cost you'd spend in Australia.</li>
<li>One of the biggest barriers is this: there is a perception that you can pay a local company in Australian to help find you an American investment. This is true, but sadly there is no way to avoid a trip to the US. Why? To legally own property in the US, you must have an American bank account. To set up an American bank account, you must do it in person, in America (physically signing documents in person and not by fax/email). There's no getting around this. So, instantly, you're adding (at minimum) $2,000 to your overhead costs to do a fly in/fly out to get a bank account. You could get one in Hawaii, which is cheaper travel costs than the mainland, but if you're flying all that way, might as well have a holiday! If it's viable though, try to go to the neighbourhoods/suburbs you're considering, while you are there, to get a feel for their amenity, stature, position etc.</li>
<li>You really need a local buyers’ agent/specialist to help find the best property for you, which in itself isn't a con, however, this involves additional costs.</li>
<li>I'm yet to fully explore the tax complications (and benefits) of US property, but you'll need to file a tax return annually in both countries, so in other words, more admin. Plus for your US tax return, you'll need to pay a professional to help you, so there will be more costs.</li>
<li>Managing real estate agents, regardless of what you think of them locally are infinitely worse in America! They care less, command more of a cut of the rent, and sometimes don't bother to screen tenants properly. This is especially bad because American laws are set up to protect the tenant more than the landlord. You cannot rely on the agent to sort good quality tenants</li>
<li>Further, ever wonder why American inner-city areas can be so dirty, yet suburban housing estates in those same cities can be so pretty, clean, and tree-lined? Well, most city councils enact an “owner pays” approach to violations in keeping the neighbourhood clean. For example, if a tenant continually ignores water restrictions and washes his car on the footpath at hours in violation to rules, a large fine is issued. The problem? It is not issued to the tenant, but rather the property owner. This makes you liable for your tenants' local mishaps. Similar fines exist for rubbish on front lawns, improper use of refuse/recycling bins etc. In effect, you will have to pay for your tenants' bad behaviour.</li>
<li>Your tenant could also break the lease without penalty. In Australia, your agent would get the tribunal involved and blacklist the tenant, making it harder for him to ever source another rental. This system doesn't really exist in America. A deposit is not always mandatory, meaning that a tenant will just rent a competing property to yours that isn’t charging such a deposit. There is insurance to help protect landlords, but these policies are quite expensive.</li>
</ul>
Cameron McEvoy is a property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" target="_blank">Property Spectator.</a>
 
 
 
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The pros and cons of investing in US residential property

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One of the founding principles of good property investment buying strategy is “location, location, location”. Within this is the notion of the “ugly duckling” suburb. You know, the idea of buying in the suburb directly next to that new, gentrified, up-and-coming trendy suburb, but at a reduced rate, with the ambition being to piggy-back on to the success of the trendy suburb throughout the next property cycle or two. As a young modest investor myself (with an accordingly modest investment budget!), the ugly duckling buying strategy is one I've explored with keen interest.
In a heavily urbanised country like Australia – where more than two-thirds of our population resides in metropolitan cities – investors do indeed flock to these cities and the suburbs within them seeking out contenders for their investment dollars. Over the past 20 to 30 years, we've seen pockets of our capital cities shift through the gentrification process – most times for the better, but on occasion for the worse - and investors have cottoned on to this process too.
And so the ugly duckling cousin becomes  a prized possession, right? The problem is it is now very tough to try to identify suburbs that tick all the mandatory boxes (transport, employment, healthcare, social outlets and education proximity) that are the cheaper neighbours to established investment suburbs with proven positive track records. I say this because in order for a property to tick all the right boxes in an urban environment, we are realistically talking the sub-30-kilometre radius of both Sydney and Melbourne, the sub-20-kilometre radius of Brisbane, Perth, and Adelaide, and the sub-10-kilometre radius of smaller metropolitan cities such as Canberra, Hobart, Gold Coast and Darwin.
Take Sydney, for example. Ten years ago I was living for a brief time in Balmain, Sydney, itself already well into the gentrification process. However, what about neighbouring Rozelle, Lilyfield, Haberfield? Not so much. At least they were without question rife with gentrification potential as ugly ducklings. Here we are 10 years later and these ducklings have now grown into swans. The same can be said of smaller metropolitan cities. Take Hobart as an example. Ten years ago, suburbs like Newtown, Lutana, and Taroona were the ugly ducklings of already-gentrified Battery Point and Sandy Bay. But today, these suburbs have come the leaps and bounds those investors had hoped they would, and then some.
So what's next? Do we go do our due diligence on the ducklings around these suburbs? The problem is that the areas around these have already inflated to the point where they now overlap into the territory of other blue-chip suburbs throughout these cities. n the above examples, even their cousins – Sydney's Summer Hill, Camperdown, and Five Dock and Hobart's Glenorchy, West Hobart, and West Moonah – have virtually caught up already, due to their double proximity to other blue-chip suburbs besides the 'pretty swans'.
It leaves this observer to ask himself the question: have we seen the end of the ugly duckling phenomena in Australia? Should investors instead change their strategies to investigate the cheapest properties in the “pretty” suburbs as opposed to the “ripe with potential” properties in the once-ugly cousin (which now has been tarted up)?
Cameron McEvoy is a property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" target="_blank">Property Spectator.</a>
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Ugly duckling suburbs increasingly hard to find for property investors

For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

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The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

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According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

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Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

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Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

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Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

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Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

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Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

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Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

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Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

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Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

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La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

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<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

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Cameron McEvoy

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