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GUEST OBSERVER
Most Australians entrust their super funds to professionals but you can control your own superannuation and invest your contribution yourself.
Managing your super not only gives you the opportunity to take matters into your own hands, you may also save thousands of dollars on fees.
However, you need to know if managing your own super is right for you.
The biggest advantage of setting up your own SMSF is control. You can invest your money the way you want to – in companies, a property or a fixed interest term deposit.
You can choose among a wide range of investment options like direct mortgages, bank deposits, managed funds, direct property and shares.
Another advantage of DIY SMSF is lower fees. If you have over $300,000 in your superannuation, you may be able to operate your SMSF for less than the annual management fees of a company.
You can also use gearing and leverage to purchase assets like shares and property to expand your investment portfolio faster.
Remember that contributions to your SMSF are tax deductible so you can save more tax through franked dividend income and timing your capital gains carefully.
SMSFs also let you buy other assets for a maximum of 15% tax. SMSFs can continue indefinitely and family members may still enjoy this benefit even after the member's death.
However, you should be aware of the disadvantages, too. As a trustee, make sure you comply with super and taxation laws otherwise, you can be charged a hefty fine and even be imprisoned.
You also have to be savvy about investing to ensure that your SMSF is earning more than what a super company could earn. If not, you can choose to appoint brokers or advisors for a fee.
You will also be required to meet all record-keeping and reporting obligations such as transactions and contribution records and annual tax returns.
Just the same, you may want to ask the experts to handle this for a fee. Another downside of setting up your own SMSF is it may be less diversified than it could have been if handled by a superannuation company.
Note that gearing may add to the risk and though super funds sometimes come with insurance coverage, you still have to get an independent life, income protection and total permanent disability insurance that you need.
Do you think you can set up your own SMSF? Why don't you assemble a team of professionals, such as a lawyer, experienced investor, SMSF expert and financial partner to help you?
You can start with a solicitor, accountant, investment strategist and financial planner. Check their fees and accreditation and don't be afraid to get a second opinion.
ED CHAN is founder and non executive chairman of <a href="https://www.chan-naylor.com.au/" target="_blank">Chan &amp; Naylor Accountants</a>.
<a href="https://www.chan-naylor.com.au/contact-us/?utm_medium=propertyobserver" target="_blank">Click here</a> to schedule a chat or call one of their <a href="https://www.chan-naylor.com.au/contact-us/?utm_medium=propertyobserver" target="_blank">local offices</a>.
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How to decide if you should set up your own SMSF: Ed Chan

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GUEST OBSERVER 
If you are selling your home, you can claim the main residence tax exemption for the property you live in, including the land adjacent to it and other structures associated with the property like a separate garage or laundry. 
The main residence exemption includes compulsory acquisition of the main residence.
A residence or dwelling is a property used mainly for residential accommodation, including a cottage or home, a flat or apartment, a strata title unit, a unit located in a retirement village and a house boar, caravan or mobile home.
The land covered by the main residence exemption is close to, near, adjoining or neighboring the dwelling.
To be tax exempt, the land and dwelling should be sold together and the owner should have used the land mainly for private and domestic purposes with the dwelling. The total area should also not be more than two hectares. If it is more than two hectares, the owner can choose which two hectares will be exempt and the remainder will subject to CGT.
A home unit or flat usually comes with areas that are separate physically from the unit, such as a store room, laundry or garage.
If these areas were used primarily for private and domestic purposes associated with the unit, they will be exempt from CGT as well. However, if these structures are disposed separately from the unit or flat, the capital gain or loss will not be exempt from capital gains tax.
Ed Chan is founder and non executive chairman, Chan &amp; Naylor Accountants and can be contacted <a href="https://www.chan-naylor.com.au/">here</a>.
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Is your adjacent land or separate structure exempt from CGT? Ed Chan

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GUEST OBSERVER
The countdown to 1st July 2017 begins and people need to act now.
Starting 1st of July, superannuation legislation will change in Australia and everyone needs to understand how the changes will affect them.
Australians are encouraged to plan ahead with the upcoming super changes such as the $1.6 million transfer balance cap, removal of tax exemption for transition-to-retirement pensions, cut in annual concessional (before-tax) contributions cap to $25,000 and catch-up concessional contributions over 5 year period from July 2018, among others.
One advantage to the annual concessional before-tax contributions cap cut is the catch-up concessional contributions.
However, it will not start until 1st July 2018. Unused portions of the concessional cap every year will be allowed to be carried forward for up to five years if you have an account balance of $500,000 or less.
Australians who consider making super contributions starting July 2017 should know that the annual concessional before-tax contributions cap will be a lot lower than previous years, dropping to $25,000 from $30,000 for people under 50 and $35,000 for those over 50.
Starting 1st of July 2017, more Australians will pay double contributions tax (15% + 15%) because of the lowering of the income threshold from $300,000 to $250,000.
Those with adjusted taxable income of over $250,000 will have extra contributions tax and all concessional contributions will have 30% tax instead of 15%. Those in certain public sector funds will be hit with this extra tax which will raise $2.5 billion in four years.
According to the government, only a small number of affluent Australians will be affected by the superannuation changes.
The 2016 budget claims that the changes will affect only 4% of people in super but some disagree, saying it will impact a lot more people than the government expects.
Other issues include estate planning and succession.
Where the death benefit exceeds $1.6 million in estate planning, the excess should be cashed out as a lump sum. Those who wish to retain the superannuation benefits through reverting or paying a pension to their dependents upon inheritance will also be affected.
Those who are in second marriages and wish to make provision for children from a previous marriage will also be impacted.
People have already structured their estate to give pension to their children from their superannuation while the spouse can access the balance as well. With the $1.6 million cap, funds may no longer be enough to sustain the pensions and spouse’s standard of living.
The superannuation changes may be plugging revenue holes instead of building a sustainable system, which can provide for retirement adequately.
This may even result in bigger demands on public finances down the line. People may be discouraged to build their super and find other investment vehicles instead. They may turn to residential property investment but housing affordability remains an issue.
The good news is that superannuation will be more flexible for those with different work patterns as the new caps will be eligible for tax deductions.
This will be beneficial to those who salary sacrifice, who are self-employed and have part-time work.
 
Ed Chan is the founding partner of <a href="https://www.chan-naylor.com.au/" target="_blank">Chan &amp; Naylor</a>.
 
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Superannuation changes and their impact on estate planning and succession: Ed Chan

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GUEST OBSERVATION
Often when commentators use "income" to "property price" ratios and compare our property prices with other countries or even different periods in Australia and conclude that property prices are either over valued or undervalued, they are using the wrong statistics. 
We are currently being told that property prices when compared to our income levels make property prices unaffordable and therefore there will be a correction soon. 
We hear this especially from overseas commentators visiting Australian shores.
Harry Dent and Robert Kiyosaki are two such visitors to our shores recently who have said our property prices are overvalued when compared to our income levels. 
If you simply measured those two statistics against each other then one could arrive at that conclusion. 
However affordability is a function of house prices, income and interest rates. It's not simply between income and property prices. 
If you look at the graph below from BofA Merrill Lynch Global Research which compares: 
<ol>
<li>Implied price based on income growth  </li>
<li>Implied price based on income growth and interest rates </li>
</ol>
<img src="/images/2015/01/30/chan%20jan%2030%20one.png" alt="">
As you can see from the graph the red line is a lot below the blue line indicating that property prices are hugely overpriced. Most commentators use this line to run their argument that property prices as a ratio of income is in a bubble and a correction is imminent. 
If you look at the green line it is above the blue line which indicates that property prices as a ratio of income and interest rates are still affordable and not in a bubble. 
I think house price growth will slow in 2015 against a back drop of increasing unemployment figures amongst other indicators.
Ed Chan is founder and non executive chairman of <a href="https://www.chan-naylor.com.au/" target="_blank">Chan &amp; Naylor Accountants</a>.
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Australian housing is not overpriced - and here's why: Ed Chan

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GUEST OBSERVATION
Once again we have seen some commentators pushing for the abolition of negative gearing. 
The claim is that the government has lost some $13 billion dollars of revenue by allowing tax breaks through negative gearing to the 'so called rich'. 
As the government is trying to find savings to get the budget back in the black they have been criticized for asking the 'poor' to shoulder most of the budget cuts through GP co-payments, loss of family rebates, higher university fees, etc, etc, whilst so called 'rich' property investors are getting away with generous tax breaks through negative gearing. 
This is simply misrepresenting the facts.
Whilst taxpayers have claimed a total of $13 billion in losses in their tax returns, the actual revenue forgone by the government is calculated at their individual tax rates. 
Thus at an average tax rate of 35% the lost revenue is only $4.5 billion.
So the government has not lost $13 billion dollars by allowing negative gearing, but rather $4.5 billion.
Public housing provided by the government only accounts for around 4% of investment properties. The other 96% of housing is provided by the private investor.
Should they disincentivise property investment by removing negative gearing, we would see the government having to shoulder the weight of providing a much larger percentage of housing for tenants.
This would in effect cost the government much more than the $4.5 billion dollars a year in revenue forgone due to negative gearing.
In fact it would cost the government in the hundreds of billions to provide public housing.
You may recall that the Keating government attempted to remove negative gearing in the 80s but reversed their decision when the queues for public housing doubled.
Secondly there are around 1.6 million property investors in Australia and most of them are not so called 'rich'. 
In fact most property investors only own one property and fall into the category of middle class. They certainly are not considered 'rich'. 
In fact they should be applauded for the sacrifice to their lifestyle (due to the shortfall created by negative gearing) as they attempt to invest for their future and in so doing, reducing the government's burden in providing them an old age pension when they retire. 
In addition they save the government billions of dollars in not having to provide public housing for those unable to buy their own homes currently. 
Not to mention the knock on effect to the economy that property investors produce.
However negative gearing is only one piece of the jigsaw puzzle.
When it comes to the property market, many other factors such as jobs, interest rates, confidence, supply etc, have a far greater effect on the property market than negative gearing.
We need to have a growing economy which leads to increased revenues for the government as businesses do well and able to hire more people and with more jobs, our standard of living is improved. This will ensure the property market is stable and will continue to grow steadily.
Supply is a very important factor as successive governments have not provided the policies to generate more supply in past years. 
Ed Chan is non-executive chairman and founder of <a href="https://www.chan-naylor.com.au" target="_blank">Chan &amp; Naylor Property Accountants</a>.
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Negative gearing only one part of the property puzzle

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GUEST OBSERVATION
Now that is a dramatic headline and I left off 10 extra words: 'If you want to be rich and they are not'.
By the way that applies to all your friends also. 
If you want to be a great fisherman, then listen to someone who is a great fisherman.
If you want to be a great cook, then listen to someone who is a great cook.
If you want to be wealthy, than listen to someone who is wealthy.
I know that sounds like common sense but sense is not that common
What is even more important is the opposite to "listen to an expert" and that is "not to listen to a non-expert".
So before you decide whether to listen to someone or not, just look at their track record.
I know that's common sense, but how often have we been influenced by our friends and what their well-meaning advice has on us.
How many times have friends or family told us we were crazy to buy property when they don't have any themselves and really have no idea about it.
How many times have friends and family told us how to get rich when they themselves are not rich. We love and trust them so what they say tends to have more of an impact than the words of strangers.
However for example if your parents are not financially wealthy and you listen to them then you will end up exactly where they are.
If you listen to everyone instead of being selective about whom you listen to than you will get completely confused.
Ed Chan is a founding partner of <a href="https://www.chan-naylor.com.au/" target="_blank" rel="nofollow">Chan &amp; Naylor</a> accountants and a leading property tax specialist.
He has co-authored three best-selling books as a seasoned property investor who understands the relationship between property investment and tax.
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Love your parents, but don't listen to them

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Toby Johnstone wrote in the Sydney Morning Herald back in January 2014 that "investors' love affair with Sydney's property market could be over, with experts anticipating a slowdown in property speculation." 
"All the pointers are there showing that the Sydney investor market has overshot its fundamentals," the article quoted Andrew Wilson, the senior economist at Australian Property Monitors.
In the same piece, RP Data senior research analyst Cameron Kusher agreed, saying, "investors thinking of getting into the market had missed the boat. Whether you are chasing capital growth or rental return, neither look particularly strong at the moment certainly not as strong as 12 to 18 months ago. Given that, I do think that we will see a pullback in investor activity this year."
So what do you think? 
Recently I came across a graph (pictured below) that tracked both property growth over a long period of time but also identified yearly rates of change in property values. What's interesting about the graph below is that it shows where we are in the property cycle. 
 <img src="/images/stories/2014/03/14/chan%20march%2014%20one.png" alt="">
Source: Jon Giaan
The blue line shows property values but the orange line shows the actual change in property values year on year, and this is much more relevant in terms of determining when to get into the market and whether the market has run out of steam. 
You can see clearly that the market goes through many years with increasing annual growth rates and then reducing annual growth rates until finally several years of increasing negative annual growth rates before repeating itself. 
<blockquote>
There are several more years of increasing yearly growth rates before the yearly growth rates start to taper off. 
</blockquote>
The green line shows the current trend is upward in nature and, if history this will go on for a few years before the growth rate tapers off year on year until negative growth. 
You can see the positive yearly growth years are much more than the yearly negative growth years and that is why the blue line shows the property market trending upwards over the longer term. 
This also demonstrates that there are several more years of increasing yearly growth rates before the yearly growth rates start to taper off. 
In other words, if last year’s growth was 9.14%, and if the graph is right, we should get double digit growth rates this year and the next year an even higher rate. After that the yearly growth rates, whilst still positive, will be a lower rate year on year until it becomes negative. 
The reason for this is because of human nature. 
People are broken into four groups:
<ol>
<li>Early adopters</li>
<li>Middle adopters</li>
<li>Late adopters </li>
<li>Never adopters </li>
</ol>
The majority of people are middle to late adopters and they tend to create the momentum that is typical of property cycles. 
When the conditions first begin to change for property the early adopters get in first but the majority of people sit back waiting for more certainty and more people to invest. Hence the saying "the majority of people are like sheep".
In the meanwhile, if conditions change early adopters are also the first to get out (sometimes prematurely) but the middle adopters are still just getting in and this creates the momentum that shows up in the graphs as continuing forward momentum. 
This is than added to by the late adopters who are now just getting in, thus providing the "braking" effect to a plummeting of the annual growth rate. This gives the wave pattern we see in orange. 
If you believe the historic property cycle will repeat itself, then this graph demonstrates that the momentum has started to build, the middle adopters are still getting in the market and we are not as yet at the top of the yearly growth rate cycle.
Whilst there are no guarantees, the graph seems to indicate we are still on the upward path and we have not yet started to experience reducing growth rates which would normally run for several more years before we experience negative yearly growth rates. 
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Is it the time to get into property?

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The property market ebbs and flows over the middle to long term and different forces come into play to cause this.
For example economic growth with low unemployment, low interest rates create the demand for housing which attracts developers to build to meet this demand.
Eventually demand is met and the market reaches saturation as developers may have built too many properties and this causes developers to cease building until the oversupply dries up and demand is there again.  
This may take many years before the tide turns again however it creates the ebbs and flows that are associated with prices moving up and down.  
That was a very simplistic over view of the market. There are many complex dynamics that affects the market as well, the overseas confidence and the Australian dollar.  
One particular area that has not had much coverage but could be a great indicator of the potential movement of property prices is the difference between yields and property prices.  
As demand from investors make up a significant part of property price movements and investors are focussed on returns on investments such as rent yields, we should look at the correlation between rent yields and capital value.  
Let’s see how rental yields dictate where we are in the property cycle 
As rents increase it attracts investors into the property market, especially since the return from fixed interest instruments such as term deposits and other cash investments are considerably low at the moment.  
There is much talk from many economists about the end of the mining boom and predictions of a slowing economy due to China’s slowdown and running into potential head winds with unemployment growing to over 6.5% and economic growth slowing to below 2% per annum over the next five years causing a possible recession on the horizon.  
Whenever economists predict the worst, share investors react first, by cashing in their stocks for safer investments but cash returns are so low that property is the next best group to invest in. So as people hop out of the share market and into the property market, it generates demand for property.  
The other group that drives property prices are owner occupiers.  
Since interest rates on home loans are at its lowest, many people who are renting find it cheaper to purchase, causing a second group of people who drive demand in property.  
The last group that drives property is the supply line. Developers have not been building, where by there is also a shortage of properties.  
Our net immigration of around 250,000 into Australia also drives demand for property.  
Most rental yields are now over 4.2% to 5.2%. Interest rates on home loans are as cheap as 4.85% fixed for three years.  
Research from last month’s RP Data shows, rents have outpaced growth in values since the GFC and created a gap which indicates the conditions are there for the property market to move upwards.  
According to RP Data since the end of 2007, house prices have grown 13.4%percent. For five and a half years, combined capital house prices have been below inflation.  
However over the same period rents have grown 32.1%, almost twice the rate of house prices.  
Refer graph below:
 <img alt="chan_sept_24_chart_one" height="189" width="470" src="/images/stories/2013/09/24/chan_sept_24_chart_one.png">You can see the gap is largest right now which means yields are increasing.  
When yields are so high (namely it’s very expensive to rent) it opens the door for people to buy.  
When people start buying (owner occupiers) it pushes prices up faster than rental increases, thus reducing yields down to normal levels.  
As you know, to calculate yield, one must divide the yearly rent by the value of the property, e.g. rents per week of $500 is $26,000 for the year, divided by the value of the property $450,000 gives a rental yield of 5.78%.
So if property values drop, the yield would increase and should property values increase, the yields would drop, without the rental moving at all.  
The last property boom started when yields were around 6% to 7% and as the property market boomed and the values increased, the yields dropped to around 4% per annum making it more difficult to buy into the property market.
When the yields eventually drop to around 3% due to property growth it will hit a ceiling where the market will no longer tolerate and people will go back to renting and put pressure on rents to rise to a level where it becomes cheaper to buy again and thus the cycle repeats itself.  
Let’s look at city by city  
In Sydney, home values have increased by around 20% since the end of 2007, while rents have increased 35%. The gap between rental and value indicates potential for capital growth.
 <img alt="chan_sept_24_chart_two" height="206" width="470" src="/images/stories/2013/09/24/chan_sept_24_chart_two.png">In Melbourne both rents and capital growth have increased around 20%. This indicates that there is still a way to go before Melbourne is in a position for capital growth.
 <img alt="chan_sept_24_chart_three" height="220" width="470" src="/images/stories/2013/09/24/chan_sept_24_chart_three.png">In Brisbane, house prices have fallen by 3%, and rents have grown 27%. The huge gap between values and rental growth say’s that the high rentals will drag up the values so Brisbane shows a lot of potential.
 <img alt="chan_sept_24_chart_four" height="206" width="470" src="/images/stories/2013/09/24/chan_sept_24_chart_four.png">In Adelaide as well, house prices have grown just 7%, while rents have increased 21% and shows great potential
 <img alt="chan_sept_24_chart_five" height="227" width="470" src="/images/stories/2013/09/24/chan_sept_24_chart_five.png">In Perth, the gap is quite large where home values have only grown 2% since the end of 2007. Rents on the other hand have increased 48%. Perth appears to have the greatest potential for capital growth.
 <img alt="chan_sept_24_chart_six" height="205" width="470" src="/images/stories/2013/09/24/chan_sept_24_chart_six.png">Please be aware that there are many indicators that drive property prices and this analysis is based only on one indicator, but a useful indicator.
 
<hr>
Ed Chan is a founding partner of <a rel="nofollow" target="_blank" href="https://www.chan-naylor.com.au/">Chan &amp; Naylor</a> accountants and a leading property tax specialist.
He has co-authored three best-selling books as a seasoned property investor who understands the relationship between property investment and tax.
 
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Rental yields, where do they indicate we are in the cycle and where should you buy? Ed Chan

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Everybody is aware that property values move up and down in cycles.
The strategies used vary for different stages of the property cycle should move with them.
Growth Stage 
 
In a growth stage it's always best to go interest only with your loans as the repayments are less, leaving you with extra cash flow to fund another property. Two properties growing will make you more money than one property growing.
Decline Stage 
 
However the strategy is completely different if the property is in a decline stage. This stage is usually accompanied by a recession.
In a recessionary state there is pressure on interest rates to drop in order to stimulate the economy.
At this point the strategy should be to pay down your debts with lower interest payments you will be able to pay off your principle faster.
In a recessionary state most assets are not growing so the capital gain could either be negligible or even have declined.
Hence, if you pay off your debts in this period you will save paying interest. If you are saving on paying interest that’s the equivalent of earning it.
For example if your interest rate was 6.15% than by paying off the principle and not having to pay 6.15% interest you are actually earning 6.15%.
It's very unlikely in a down market you could earn 6.15% on your money. So the best return on your investment in this period is to pay down your principle.
Additionally in a down cycle your property values are also declining in the short term.
Lower interest rates allow you to pay off more of the debt so that when the property market recovers again you will have a lower debt level or greater equity. Therefore you have manufactured some equity if you like in a down market.
As the property market recovers so will interest rates go up but hopefully by then you would have paid off sufficient debt that it will be positively geared in addition to the equity being greater.
So the moral of the story is make sure you roll with the circumstances and adapt your property investment strategies to the market conditions and take advantage of them as they present themselves.

<hr>
Ed Chan is a founding partner of <a rel="nofollow" target="_blank" href="https://www.chan-naylor.com.au/">Chan &amp; Naylor</a> accountants and a leading property tax specialist.
He has co-authored three best-selling books as a seasoned property investor who understands the relationship between property investment and tax.
 
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Growth v decline; adjusting your investment strategy for stages of the cycle: Ed Chan

The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

[smartcode_project:default project_id=149670 project_image_fid=360975]

While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

[smartcode_project:default project_id=112024 project_image_fid=343235]

Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

[smartcode_project:default project_id=108274 project_image_fid=365786]

Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

75 cranes, $23 billion pipeline and a $55 billion economy: Inside the Gold Coast economic boom

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

&nbsp;

[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

Buyers rush to Homecorp's Florence Residences as Gold Coast wellness trend gains momentum

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

NSW expands Pre-sale Finance Guarantee to unlock more affordable and regional housing

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

Ed Chan

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