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If you are currently paying land tax then you must be doing something wrong.  
You could potentially own 18 properties before paying any land tax as long as you plan things out properly.  
The old saying "one does not plan to fail, one fails to plan" is true in most things in life including the amount of land tax you pay.  
For example if you buy a property in partnership between two people then you have lost one whole land tax threshold.  
In NSW that will cost you an extra $6,000 in land tax for no reason when if the second property is in your spouse’s name then you have doubled your land tax threshold or saved $6,000 a year in land tax.  
That's a lot of money because property is a long term investment and over 10 years that's $60,000 or $120,000 over 20 years of land tax that need not have been paid if you had taken proper tax advice and planned things out before putting the wrong name on that Contract of Sale.  
Since land tax is a state tax, once you have "used up" your land tax threshold in one state, than by buying property in another state the land tax threshold starts again.
You could potentially have 18 properties around Australia before you need to pay any land tax at all.  
A word of caution.
You should get proper tax advice before investing in property because if the property is negatively geared it should be in the name of the person who is paying the higher income tax no matter what the land tax threshold is because you will lose more in income tax than land tax payable if held in the wrong name.  
If the property is positively geared then it should be in the person’s name who is currently paying the lower income tax which will help your land tax planning.  
As you can see its quite complex and in 50% of the cases you should hold it in a trust which will also save you land tax in some states.  
Please remember to take advice before you exchange contracts and not after you exchange contracts. Once you have exchanged contracts it's too late.  
The best time to take advice is when the contracts of sale is in your solicitors hands and they are doing the conveyance.  
You can contact <a href="https://www.chan-naylor.com.au/">Chan-Naylor.com.au</a> to determine the right name to put on that contract and it could be the last thing the solicitor does before exchanging contracts.
 
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 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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You could own 18 investment properties before paying any land tax: Ed Chan

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Land tax is a state-based tax, meaning it gets charged by the individual states; therefore the rules, conditions and land tax thresholds differ from state to state.
Generally the first property bought in most states will be below their land tax threshold, such as an apartment (unless it’s a really expensive property), and subsequent properties bought in the state will be added to the first for assessment purposes. Generally by the second or third property the total land value will be pushed above that Sstate’s land tax threshold.
To eliminate paying land tax completely one could simply buy a single property where the land value is below the threshold and the second in another state and so on, which means you start fresh with a new land tax threshold in each state. 
So, effectively<a href="https://www.propertyobserver.com.au/residential/four-reasons-you-should-consider-investing-in-property-interstate-ed-chan/2012101857271" target="_parent"> you could have eight properties without paying land tax.</a>
However having said that, it's not a wise investment principle to invest solely for tax reasons. Tax reasons should never drive your investment principles.
It should be part of the consideration, but never the only consideration as there other key factors to take into account.
For example, it may be land tax effective to invest in a particular state, but that state could be at the peak of its property cycle, which makes that a poor investment.
To get an estimate of what the land value is one can look at the Valuer-General notices attached to council rates.
Land tax is self-assessed. In most states you will not receive a land tax notice from the Office of State Revenue reminding you of your obligations, and it's up to you to voluntarily self assess and lodge a land tax return.
What happens if you don't lodge a land tax return?
Well, no one will know in most of the states; however if you are unlucky you may get found out in a random audit and or when you decide to sell the property the buyer will want land tax clearance before taking possession of the property because land tax liability is transferred with the sale of the property.
In that case you will need to back pay all the land tax owed plus penalties and interest. This could be quite significant.
So it's always best to lodge a land tax return, even if you are below the land tax threshold. Lodging a land tax return gets you registered in the system and you will receive a nil assessment notice each year which will avoid the situation where you were unaware that your land value one year had climbed above the land tax threshold and you were liable to pay land tax; the non payment attracts penalties, fines and interest.
Ed Chan is a founding partner of <a href="https://www.chan-naylor.com.au/" target="_blank">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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The best way for property investors to avoid paying land tax: Ed Chan

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Should you consider buying an investment property interstate?
I often get asked this question.
Some people say you should only buy within the area you live in because you are familiar with the prices, can drive past to inspect the property and if required make your own repairs.
While all those reasons have merit, the answer goes far beyond this. 
There are several really important reasons why you should invest in properties interstate, and it’s more about good investment principles than convenience. 
Here are a few: 
1. Ride the property wave
The property cycle moves differently in different states. When one state is at the top of the property cycle other states could be at the bottom. You should buy at the bottom of the wave and ride the property wave.
2. The property clock
The property market moves through a cycle and when things are booming in Victoria they may not be booming in NSW. When they are slow in Perth they might be booming in South Australia.
Currently Melbourne is oversupplied, Sydney is “steady as she goes”, Queensland is at the bottom of the cycle but the Gold Coast is anticipated to stay at the bottom for many years to come, while Brisbane is showing signs of life. Perth is steady as she goes, and so on.
As you can see, each state is at a different part of the cycle, so it’s important you time the purchase at the bottom of the cycle.
Buying in your own suburb or state might not be the proper thing to do if you are at the top of the cycle.
 
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3. Land tax
Each state has different land tax rules and allows a certain land tax threshold before land tax is payable.
Once you have “used up” your land tax threshold in one state by having several properties held in that state, further properties in that state will attract higher rates of land tax.
If you then buy in another state, the land tax threshold starts again.
Hence another reason to buy in other states is because of the land tax you are prepared to pay. 
If you carefully manage the timing of your new purchases you could buy both at the bottom of the cycle and minimise your land tax by buying in the right state at the right time. 
For example, while the property cycle suggests Brisbane is at the bottom right now and may be the best place to buy your next investment property, if you already have several properties in the state of Queensland and have breached the land tax threshold in Queensland. 
Further properties bought in Queensland (whether they are in Brisbane, Townsville or the Gold Coast) would incur excessive land tax.
In this instance, you should consider investing in another state that is at or close to the bottom of the cycle and one where you have not used up the land tax threshold yet.
In the above example you may consider buying in Darwin if you have no properties there, as you have the full Northern Territory land tax threshold to take advantage of.
Therefore, careful management of your property investment strategy could mean you pay no land tax at all, even while holding over a dozen or so properties.
Wouldn’t that be good?
4. Diversification
Just as it’s important to diversify your share portfolio it’s also important to diversify your property portfolio.
Diversification means that when some properties are slowing down in some states you should have properties in other states that are growing.
This will also help manage your bank’s stress levels because while some properties they hold as security are going down in value the other ones they are holding may have gone up. 
Risk management is about ensuring your banks do not force you to refinance when the market values are down or you are forced to sell properties when the market is down.
While there are emotional reasons for investing in the state or suburb you feel most comfortable in, investing is much more scientific than using one’s “feelings”. 
It’s always best to use professionals to assist in property selection because they have the research material to determine where you should be investing.
Timing is so important because the market could change within months.
Get a property accountant to assist you with buying it in the right structure to minimise tax and give you the flexibility should your circumstances change in the future.
Ed Chan is a founding partner of <a href="https://www.chan-naylor.com.au/" target="_blank">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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Four reasons you should consider investing in property interstate: Ed Chan

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The RBA cut rates by a further 25 basis points on Tuesday, October 2.
This should not have been a surprise, especially when one considers what is happening in Europe and the US and our own retail sectors, which would have to take a toll on public confidence. I would say it’s all about the rest of the world, and we needed a buffer to help us through the next few years of turmoil.
While there are encouraging signs from the US with a falling unemployment rate currently at 7.8% (first time in more than three years this has been below 8%), Europe's long-term outlook however is still bleak. I would anticipate 10 years of no growth in Europe.
The US will enter a long period of small to moderate growth as it tries to keep the economy growing (which keeps unemployment down) by the printing of money to the tune of $40 billion per month. On the other hand, the printing of money is similar to giving a drug addict heroin when what is really needed is a detox.
The USA and Europe have an ageing population and similar to Japan, which has had no growth for about 21 years, both Europe and to a lesser extent the US are compounded by record levels of debt.
China's growth has slowed to around 8% per year. As the world's baby boomers reach retirement, their spending naturally slows, which has affected demand for goods and services. China exports to the world, including the US, but the slowdown in demand from the baby boomers has affected China's economic growth. However, the demand for goods and services from their own burgeoning middle class as they become wealthier has kept the fires burning. Their desire to increase their urbanisation rate from 37.5% to those of Western nations will continue to feed the fire.
As stated above, an ageing population means spending slows, and when spending slows economic activity slows, which means higher unemployment and lower tax revenue. Japan has an extremely tight immigration policy, which means very few immigrants were allowed into the country, and the consequences to this is the older population were not being replaced by younger people.
Natural births to replace an ageing population have two disadvantages.
It generally takes 21 years of investing into a newborn before he or she is old enough to work, plus a further two years training on-the-job to attain a skill before he or she can start contributing.
This is slow and a highly costly process. Also, the number of children per household has dropped over the years. There is also no guarantee that job sectors that have skill shortages can be filled, because there is no guarantee that Australians will go into those areas even after they have attained the necessary skills, qualifications and experience.
Immigration, on the other hand, has many advantages for a young country such as ours.
It means one can select the skilled people required and only allow those who have those skills into the country in areas where we are experiencing a shortage, or restrict their entry conditions to areas that have a skill shortage. They are already trained and the training paid for by another country; they are immediately productive and can pay taxes; they also create an immediate demand for services such as homes, cars, schools, food and other services, creating economic growth and prosperity.
In Australia unlike Europe, Japan and even the US we have a robust and healthy immigration policy allowing in around 250,000 to 350,000 people annually. Our average age is 35; Europe’s is 45.
 
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Our unemployment rate is 4.8%, and this is considered full employment. Much of this can be attributed to Australians not being prepared to travel to take up jobs in mining towns and other areas that are perhaps hard to get to or other occupations that perhaps Australians are not prepared to accept. One will never achieve 0% unemployment.
Despite fears that immigrants will take Australian jobs and I have heard this statement for over 40 years, and the fact is that our long-term average unemployment rates have always sat at around 5.5%. This is considered full employment. Naturally there are times when it has hit around 10%, but it generally does not stay at that rate for very long as long as there is economic growth.
However, one must be careful and selective about immigration because it can change the nature and landscape of the country. Allowing people into a country with different values and beliefs can cause social unrest. One must balance economic wellbeing with the type of social fabric we want the country to become. That simply comes down to tighter government policies about the type and quality of people who are permitted to come into this country.
Economically there are very sound reasons for a healthy immigration policy balanced with a socially responsible selection process.
Australia does have a two-speed economy; certain industries such as mining are doing extremely well where other industries such as retail are not doing so well. With what is happening in Europe and the US, global market sentiment is a huge factor that affects our economy. This is proven true by our record savings in this country since the GFC as the general population adopted a defensive stance such as savings and paying down their debt, as opposed to an aggressive growth strategy such as leveraging through increased debt.
I believe the RBA has got it right with the recent 0.25 percentage point drop in interest rates leaving it more room to move if the world economy deteriorates further. This will give the property market a little optimism.
There is also a two-speed property market. The higher end market has continued to drop in value, but the lower end market has shown stability and in some areas has shown growth. However, when one averages all the markets together it distorts what is really happening at a micro level. One has to be much more careful and selective and do much more research to buy properties that are doing well.
Gone are the days when one could buy any property in any area and you could sit back and watch your properties grow in value.
Ed Chan is a founding partner of <a 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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Skilled immigration the key to Australia's economic growth - and property markets

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Since the GFC Australians have paid down a massive amount of their debt. So why have we seen record savings over the last four years? 
Well, consider this. 
Over the last four years we had predictions by some analyst of falls in property prices or at the very least subdued property prices. There are mixed predictions moving forward. Some are saying there won't be much growth for several years to come. 
If there is no growth it's much better to pay down loans because if you are not paying interest at say 6.15% then you are earning 6.15%. 
There are not many investments that are currently paying 6.15% return on your investment. 
Once the property market experiences growth again you will see investors going back to interest-only loans. 
At a normal long term capital growth of 8% per year plus a net rental return of 4%per year net giving a total return of 12% per year, it's better not to pay down the principal but to pay interest only. 
Instead of paying the principal back you would use the principal payments to cover another interest-only loan to buy another property. 
Two properties giving a return of 12% per annum less interest of 6% per annum gives you a net return on two properties instead of one property. This makes sense in a growth environment. 
But this does not make sense in a declining or flat environment. 
So one needs to roll with the punches. 
The rule of thumb is: 
1. In a growth environment pay interest only and maximise your cashflow to increase your asset base. 
2. In a down market or subdued market pay down the principal. It's the best return on your cash you will get.
Ed Chan is a founding partner of <a target="_blank" href="https://www.chan-naylor.com.au/">Chan and 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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When property investors should pay principal and interest on your mortgage

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Over the last three years of negotiating with the ATO to achieve an ATO-approved product ruling for our Property Investor Trust ® (PIT®) we have learned a few things that we thought was interesting to share.
Firstly some background information:
The use of privately held trusts in Australia has had a long history dating back many decades. Over the years many taxpayers inadvertently began using trusts incorrectly and in some cases exceeded the boundaries beyond what was acceptable in the eyes of the ATO.
This national exposure led four years ago to the ATO reviewing their position with a specific focus on hybrid trusts. As a result in March 2009 a tax determination was issued TD 2009/17.
Unfortunately the 2009 determination TD 2009/17 created significant confusion and lack of certainty regarding eligible interest tax deductibility in the marketplace at a client, advisor and accounting professional level.
In short it stated that the uncommercial use of trusts could lead to the denial of full interest deductibility on borrowed funds.
Many well-meaning and respected commentators, including accountants, interpreted that to mean that all hybrid trusts were illegal, and many practitioners ceased using hybrid trusts. This was compounded by the fact that many banks also ceased lending to hybrid trusts.
Commerciality means that there must be a motive to make a profit. Some trust deeds were written where they would never make a profit and thus never need to pay tax.
For example, when the property went from negative gearing to positive gearing and tax was due to be paid, some trust deeds allowed an event to occur such that the positive rental was driven else where and no tax was ever payable.
While many hybrid trust deeds did not do this, the ATO took a blanket view and the tax determination in 2009 created sufficient confusion that most people ceased using hybrid trusts. This was a great way for the ATO to win the war without the battle.
While our legal advice, backed up by Queens Counsel was that a properly constructed hybrid trusts was fine and certainly our Property Investor Trust® fell into that category, the tax determination created sufficient confusion that many accountants and commentators argued among themselves. We were divided into two camps: Those for hybrid trusts and those vehemently against hybrid trusts.
In the meantime Andrew Forrest (Twiggy) of Fortesque fame took the ATO to court on a similar matter in respect to his hybrid trust.
Three High Court judges ruled in Forrest’s favour, ruling that interest was fully deductible for monies borrowed to buy income units in his hybrid yrust. However, the ATO argued that apportionment (which was not in its draft ruling issued at the time) was not considered in the Forrest case and retained its position in the final tax determination TD2009/17.
Apportionment is when interest deduction is not fully allowable and maybe restricted to the net rental received by the taxpayer where the unit holder was not entitled to both income and capital.
A tax determination is not law, and it’s simply the judges’ view.
Of all the thousands of cases that end up in court it’s been reported that the ATO only wins approximately 50%. That excludes the thousands of cases where the taxpayer had simply conceded without a fight even though they may have been legally correct but did not have the financial means to see it through the courts.
 However the tax determination created enough confusion that those who were conservative in nature simply followed the tax determination and the ATO would have succeeded in stopping something that would have taken years to pass through Parliament.
Tax determinations, whether they are legally correct or not, is a cost-effective and practical tool for the ATO to achieve its means.
The ATO product ruling granted to the Chan &amp; Naylor Property Investor Trust® brings certainty to the community and opens the way for others to pursue this course if they believe that holding a property in a trust is for them.
This will have also opened the door for many banks to once again begin lending to hybrid trusts. Certainly the banks are lending to our PIT®, with the evidence of an ATO approved product ruling behind it.
This will have huge positive ramifications for property investors in Australia.
Is a “product ruling” the same as a “private ruling?”
A “product ruling” is NOT the same as a “private ruling”. While some have been able to achieve a private ruling for themselves this is not automatically transferable to another taxpayer. Relying on someone else’s private ruling in the hope that the ATO will also see your situation in the same light and the same facts is not recommended.
A private ruling is specific to the individual taxpayer and may not be relied upon by another taxpayer.
A product ruling such as the Chan &amp; Naylor product ruling on the Property Investor Trust® is an approval on the product itself and is applicable for all who own a Property Investor Trust Deed® as long as the ATO conditions are followed strictly.
Our negotiations with the ATO have reviewed some major points (among many smaller ones) they wanted to see in one’s trust deed:
<ol>
<li>There needed to be a fixed entitlement to both income and capital. Many trust deeds were not clear and left open the ability for the trustee to distribute income and capital at their discretion.</li>
<li>The income units needed to have some capital/market value attached to it</li>
<li>The ATO would apportion the interest deduction if there was not a definitive fixed entitlement to both income and capital, meaning they would not allow interest deductions in full and maybe restrict it to the net rental income of the property.</li>
<li>There must be commerciality in your dealings, meaning there must be an intent to make a profit, albeit it could be at a later date. </li>
</ol>
In summary, the ATO will apportion the interest deduction if someone other than the taxpayer can or will benefit from the transaction.
We hope this article helps you understand the background to the ATO’s challenge to hybrid trusts and in so doing assist you in structuring your affairs correctly.
 Ed Chan is a founding partner of <a target="_blank" href="https://www.chan-naylor.com.au/">Chan and 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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What we learned from the ATO about property and hybrid trusts

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The RBA cut rates by a further, 25 basis points on Tuesday, June 5.
This should not have been a surprise especially when one considers what is happening in Europe and the US and our own retail sectors, it would have to take a toll on public confidence.
I would say it’s all about the rest of the world and we needed a buffer to help us through the next few years of turmoil.
The US jobs came in worse than expected, and there is no short-term solution in sight for Europe, and its long-term outlook is bleak. I would anticipate 10 years of no growth in Europe.
The US will enter a long period of small to moderate growth as it attempts to pay down their debt.
Fundamental to both is that they have an ageing population and similar to Japan, which has had no growth for about 21 years, both Europe and to a lesser extent the US have record levels of debt. An ageing population means spending decreases, and when spending slows economic activity slows, which means higher unemployment and lower tax revenue. Japan had an extremely tight immigration policy, which means very few immigrants were allowed into the country.
Natural births to replace an aging population have two disadvantages.
It generally takes 21 years of investing into a newborn before he or she is old enough to work, plus a further two years training on-the-job to attain a skill before he or she can start contributing.
This is slow and a highly costly process. Also, the number of children per household has dropped over the years. There is also no guarantee that job sectors that have skill shortages can be filled, because there is no guarantee that Australians will go into those areas even after they have attained the necessary skills, qualifications and experience.
Immigration, on the other hand, has many advantages for a young country such as ours.
It means one can select the skilled people required and only allow those who have those skills into the country in areas where we are experiencing a shortage in, or restrict their entry conditions to areas that have a skill shortage. They are already trained and the training paid for by another country; they are immediately productive and can pay taxes; they also create an immediate demand for services such as homes, cars, schools, food and other services creating economic growth and prosperity where as an ageing population reduces their spending as they have less need for things such as larger homes and cars and school fees for education, etc.
In Australia unlike Europe, Japan and even the US we have a robust and healthy immigration policy allowing in around 250,000 to 350,000 people annually. Our unemployment rate is 4.8%, and this is considered full employment. Much of this can be attributed to Australians not being prepared to travel to take up jobs in mining towns and other areas that are perhaps hard to get to or other occupations that perhaps Australians are not prepared to accept. One will never achieve 0% unemployment.
 
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Despite fears that immigrants will take Australian jobs and I have heard this statement for over 40 years, the fact is that our long-term average unemployment rates have always sat at around 5.5%. This is considered full employment. Naturally there are times when it has hit around 10% but it generally does not stay at that rate for very long as long as there is economic growth.
However one must be careful and selective about immigration because it can change the nature and landscape of the country. Allowing people into a country with different values and beliefs can cause social unrest. One must balance economic wellbeing with the type of social fabric we want the country to become. However that simply comes down to tighter government policies about the type and quality of people that are permitted to come into this country.
Economically there are very sound reasons for a healthy immigration policy balanced with a socially responsible selection process should provide the best outcome.
While Australia does have a two-speed economy, certain industries such as mining are doing extremely well where other industries such as retail are not doing so well. With what is happening in Europe and the US, global market sentiment is a huge factor that affects our economy. This is proven true by our record savings in this country since the GFC as the general population adopted a defensive stance such as savings and paying down their debt, as opposed to an aggressive growth strategy such as leveraging through increased debt.
I believe the RBA has got it right with the recent 0.25 percentage point drop in interest rates leaving it more room to move if the world economy deteriorates further. This will give the property market a little optimism.
There is also a two-speed property market. The higher end market has continued to drop in value albeit it has slowed and some say even bottomed but the lower end market has shown stability and in some areas have shown growth. However when one averages all the markets together it distorts what is really happening at a micro level. Hence when the averages are reported that house prices in the Australian capitals fell 1.4% in May to the lowest level in six years it really is a distortion of what is happening at a micro level. It simply means one has to be much more careful and selective and do much more research to buy properties that are doing well.
Gone are the days when one could buy any property in any area and you could sit back and watch your properties grow in value.
 Ed Chan is a founding partner of <a target="_blank" href="https://www.chan-naylor.com.au/">Chan and 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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Increased – and selective – skilled immigration needed to help Australia’s economy

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Many people who have invested in property may have purchased the property in the wrong name, and the cost to correct it creates a stamp duty and capital gains tax liability and thus prohibits the property from being moved. 
Why would people buy properties in their own names? 
The main reason is for tax. 
Generally if the property is negatively geared, then having it in the name of the person paying the highest tax means that he/she gets back the largest tax refund from the ATO. However, if that person’s occupation exposes him/her to litigation, such as a doctor or someone running a business or a director of a company, then holding assets in their his or her own name would be a silly thing to do. 
If someone sued him/her than any assets that are in his/her own name are up for grabs. 
Australia only trails the US for being one of the most litigious countries in the world. Last year a mother of three in the US was sued by a music company for illegally downloading 12 songs from the internet. The judge found in favour of the music company and ordered damages of $100,000 per song. Unable to pay the total damages bill of $1.2 million plus costs she lost her home and any other assets she held in her name. 
Properties that have been bought in one’s name can be protected without needing to move them using several different strategies.
The principle behind this asset protection strategy is to protect the equity in the properties. Litigants are not interested in the property itself, but they are interested in the equity. Thus protecting the equity is more important than protecting the asset itself. 
1. You can strip any equity that is left within the "at risk" property by asking the bank to take 100% of the equity of the "at-risk" properties for their security and leaving properties that are not "at risk". 
2. Properties that are not "at risk" are those that are held in a property investor’s trust (PIT) or those held in a "not at risk" spouse’s name. However, be careful that you have considered the tax benefits that may be lost if the property is negatively geared and your spouse earns and pays less tax than you do. 
3. If you are unable to adopt the above strategy than you can use an "equity bank trust" that will strip the equity from your "at-risk" assets. This is a relatively low-cost solution but a very effective strategy. 
4. Naturally the best solution is to ensure that the properties are purchased in the correct entity to begin with. Having the property in an entity such as the PIT deed that has an ATO approved product ruling (Product Ruling PR2011/15) is better than trying to fix the problem later. The PIT allows you to claim the negative gearing in your own hands (as long as it’s set up correctly) and protects the property from litigation. The PIT does not have a vesting date, so the assets can be passed from generation to generation. 
5. If both husband and wife are in high-risk occupations they should not have their homes in their own names in case they are sued. However, the problem with holding the home in a trust is that one loses one’s principal place of residence tax free status for both land tax and capital gains tax. Depending on where you live (in which state or territory), one can hold the property in a PIT and grant a life interest to the individual to retain his or her land tax-free status  and capital gains tax-free status. However, you must seek advice, because if not set up properly this strategy could potentially backfire. It would also be a good idea to get a private ruling to ensure that this will work in your particular circumstances. 
6. If you have loaned money to your daughter or son to purchase a property with, make sure that you have either registered a second mortgage or a caveat over the property in case his or her marriage and or de facto relationship fails. The second mortgage/caveat ensures that you at least get back the loan or gift you had given your son or daughter.
Ed Chan is a founding partner of <a href="https://www.chan-naylor.com.au/" target="_blank">Chan and 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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Tax tips: Investing in property in the wrong name could cost you money

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Recently Gina Rinehart's problems with her children have been front page news across the nation.
There have been a few lessons from this saga that we can all learn from.
The main points are summarised below:
You may recall that her family trust had a vesting date that triggered a capital gains tax of $100 million per beneficiary. Most if not all trust deeds have an 80-year vesting date, which means that the trust deed ceases to exist at this point and all assets than pass to the beneficiaries, triggering stamp duties and capital gains tax.
The problem with this is where normally a person sells a property to than have the cash to pay the tax, when a trust "vests" the beneficiaries end up with a huge tax liability but no cash to pay for it.
Hence he or she is forced to sell the property to pay the tax – but what if he or she wants to hold onto it?
Then the beneficiary would need to find cash elsewhere to fund the tax. Or he or she could borrow from the bank (assuming he or she can secure a loan) with the property as security.
In either case it's not an ideal situation to be in.
You may say that 80 years is a long time and you won't be around to worry about it, but you will leave a huge problem for your children and grandchildren.
In Gina's situation this could potentially send the children into bankruptcy as they will have a $100 million tax bill each (as reported) without either the asset or the cash to pay the tax. Not a good position to be in.
Lesson 1:
Make sure that your trust deed does not have a vesting date. The Chan &amp; Naylor "Property Investors Trust" deed is one such trust deed that does not have a vesting date.
It also has an approved product ruling from the ATO and allows the negative gearing to be claimed against your salary and protects the property from litigation and at the same time keeps it within the family bloodline and away from the childrens’ in-laws in case of a marriage breakup.
Lesson 2:
Make sure you retain control of the money by remaining as trustee. The trustee has full control over the assets. You may recall Gina's children attempted to remove her as trustee. With control you can still distribute funds to them but at your discretion.
Lesson 3: 
Make sure you retain the position of appointor. The appointor has the power to remove and appoint a new trustee. The appointor is the most powerful person in the trust. In most husband and wife situations, they hold the appointor position jointly.
Lesson 4:
With marriage break-ups at an all-time high (above 30% and higher because many unwed people live together and their break-ups are not recorded as marriage break-ups).
Do not pass any assets across to the children until after one partner dies. You can still lend children money but register a mortgage or caveat over the property or assets. You can call those funds back in case their marriage breaks up.
Lesson 5:
Property that you hold can still be provided as security for a bank to lend money to your children to purchase their homes with. The bank will hold their home as the main security (80%) and should something go wrong than you are only exposed to 20% being the top-up security held on your property. You can safeguard this with a second mortgage over their property.
Lesson 6:
Never hold investment properties in your own name but in a property investors trust (PIT), because at your discretion you can still distribute rental income to them from the PIT. You can still put the property up as security for a loan from the bank for them and when you are ready to pass control and ownership to them the title on the property can be changed (i.e., trustee can be changed) with no stamp duty or capital gains tax.
If you held the property in your own name and attempted to transfer the title to your children (before your death) there will be stamp duty and capital gains tax to pay.
The problems experienced by Gina Rinehart and her children are not problems that you only find in the rich.  They are experienced by everyday people who have assets such as property. The only difference is that problems of the rich get published in newspapers.
Most importantly, make sure you get good advice before you do anything. It's very expensive to try and fix something after the event.
As my mother would say, "An ounce of prevention is better than a pound of cure".
Ed Chan is a founding partner of <a target="_blank" href="https://www.chan-naylor.com.au/">Chan and 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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Six lessons from Gina Rinehart and the importance of using the right kind of trusts

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Being the chairman of a national accounting firm that specialises in property investors gives you a special insight into the ATO’s areas of interest. We have noticed an interesting trend over recent months: the ATO is becoming more aggressive in its approach to collections of revenues and taxes when assessing claims. This could be a directive from the top, with so much discussion about budget deficits and the government trying to keep to their promises of balancing the books by certain dates there may be external pressures placed upon their biggest collection agency the ATO. Generally we find that the behaviour of people within businesses and organisations is a direct result of the management above who place directives upon their staff to reach certain targets.
The collections and assessment people hired within the ATO are no different than those debt collectors or assessors outside – they are employed for a reason, and that reason is to ensure that all taxes are paid and collected. That involves monitoring closely what individuals claim in their tax returns each year because this has a direct impact on the revenues and the budget. The  ATO simply through being more efficient and diligent can literally save hundreds of  millions – according to ATO sources more than $16 billion worth of deductions are claimed by taxpayers each year, and  if 10% of claims are incorrect… well, you get the picture.
Having completed more than half the tax year I thought it timely that I share with you some of the common mistakes made by taxpayers have been, what you can and cannot claim, how to ensure that the taxman does not come knocking on your door and if he does how you can survive the audit. The ATO is targeting property investors among others, and the most common errors are failing to keep receipts, wrongly claiming capital items as expenses, generally tardy record-keeping and misunderstandings about what you can and cannot claim.
Property investors
The ATO see the property area as an area where there is potential huge leakage of revenue due to incorrect claims. This year the ATO has said that more than 100,000 property investors will be contacted. Here are some useful tips to ensure you comply if you receive that ATO letter.
1. We always suggest to clients to get the real estate agent to pay for all expenses of the property from the rental it has collected. There are several reasons for this. Firstly, you are already paying the agency a commission for handling the management, so you may as well make use of the service. Secondly, you are working your money harder (rent sitting in the agency’s trust account). Lastly, when its tax time you simply ask for a yearly summary of rents and expenses, and you give this to your accountant, which will save in accounting costs. Than all you need to do is provide your accountant with a list of other expenses that you have paid for out of your own pocket.
2. Ensure you have a quantity surveyor’s report to back up the depreciation claims. Any capital works can be claimed as depreciation over many years, and you need a quantity surveyors report to claim this back
3. Also, if you have renovated you can claim back the items that have been thrown out such as old kitchens and demolishing of walls and other structures. To get these as a tax deduction you will need to secure a scrapping schedule from a quantity surveyor. 
4. Ask your bank to provide you with an annual loan interest summary that relates to each property so you claim the appropriate interest against the appropriate property.
5. If you have undertaken any major works to your property, be careful what you can claim as a repair vs a capital improvement, this is an area the ATO likes to focus on as many people get it wrong because it is quite grey . A repair is fixing something to bring it back into close to original workable condition, and a capital improvement is replacing it with something better. To provide an example,  if you had an oven and you just replaced the fans that is a repair, but purchasing a new oven  is a capital improvement. If you replace the roof tiles of the entire roof with new terracotta that is a capital investment, but if you replace a few broken slate tiles that is a repair. A word of advice: if the amount is substantial this will more than likely trigger an audit, so seek professional advice beforehand  or even go to the extent of contacting the ATO for a ruling.
6. Depending on the size of your portfolio you are entitled to claim an apportionment of things like use of home computers and home office costs to manage the properties, travel to view the property if the sole intention is just that (however, if the intention is say 50% to view property and 50% to holiday you will need to keep a diary record and receipts to justify the apportionment of expenses including airfares and accommodation).
7. If you have purchased an investment property in the last financial year, prepare a purchase statement that includes the purchase price, legal costs, stamp duties, borrowing costs and other capital costs, which are not tax deductible but carried forward to form part of the cost base. If and when you sell in the future you will have this information to help reduce the capital gain tax payable at that time.
8. Land tax paid by you for the property is tax deductible.
9. A word of warning: if you have incurred travel costs to inspect a property to purchase the cost is not deductible because it is part of the initial purchase cost, such as stamp duty.
10. Always seek professional advice if in doubt, as fees paid to professionals like your accountant are fully tax deductible.
Audit insurance 
Some accounting firms like Chan &amp; Naylor offer audit insurance, for a small tax-deductible fee per year you can insure yourself against the costs of having a professional represent your case on your behalf to the ATO. An ATO audit can be a very expensive exercise, time-consuming and stressful, and this type of insurance provides you with peace of mind knowing that your professional will be the go between and handle everything for you at little or no cost to you. This is simply risk management, and I believe is something everyone should consider especially with the ATO being so active. 
One last thing: we recommend that you get your work to your accountant on time to avoid the standard rush periods which helps avoid late lodgement penalties. Also note that the ATO standard work-related deduction amount of $500 does not apply until this year, and the standard deduction would be available regardless of whether relevant expenditure was actually incurred. For example, a person who completes his own tax return would be able to claim a deduction for his own efforts.  The standard deduction will translate into a $157.50 saving for a person on a 30% marginal tax rate in the first year of the measure; it remains at $300 for 2011.
Above all else, if in doubt we recommend you seek professional advice when lodging your tax returns, the tax-deductible fee paid to the accountant may be a lot cheaper exercise than getting it wrong and triggering an ATO audit.
Ed Chan is a founding partner of <a href="https://www.chan-naylor.com.au/" target="_blank">Chan and 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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The Tax Office has property investors in its sights

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

&nbsp;

Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

&nbsp;

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[smartcode_project_cta:default project_id=145590]

Ed Chan

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New apartments

New townhouses

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