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Today I found a property on the internet that I thought had sold a few months ago.
It was still marked “Under Contract” but they’d just forgotten to remove this after the sale fell over.
I phoned the agent to check and yes, the sale had not gone through. Ah, I love it when everyone else thinks a property is sold; it gives me a bit more time to assess.
As I stared at the one measly photo on the agent’s website, my heart rate increased.
I started my Property Bloom development mental check list:
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Location – double tick. It was close to the Hunter Expressway interchange, this is a massive infrastructure project in the Hunter, a six-lane freeway link due to open later this year. And, the property was very close to the local public school.
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Land size – tick. Over 870sqm – more than enough room for a good sized duplex.
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Price – tick.  If we can secure the land at about a 9% discount it’ll be a great buy.
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Cost effective development - tick. This project will suit a developer on a budget (aren’t we all?) as the total estimated project costs are around $518,000.
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I continued my enquiries and found that the property was an estate sale and had been on the market for a few months now. I’m guessing those estate recipients may be getting a little impatient and more likely to take a lower offer.
I was chatting to the lovely young agent about how long it had been since the sale fell through and asked “what the vendor’s expectations were?”  What I meant was their expectation on whether the property should have sold by now.
But instead the agent blurted out a price... a much lower price than the listing price.  “Oh, ok, that’s interesting,” I said as a small smile started to form at the corner of my mouth.
So now I knew what the last offer had been accepted at and quickly plugged this figure into my feasibility spreadsheet. That certainly helped the bottom line. So I made a mental note to offer $10,000 less.
I received the contract by email and scanned straight to the Section 149 Planning Certificate. More boxes were ticked when I saw it wasn’t in a bushfire zone (like some of the land in the Hunter). Building to meet bushfire requirements can add another $10,000 or so to a dual occupancy cost.
The sewer location is ok but running through the middle of the block, we may need to spend some money on encasing the sewer line but perhaps not.  I added some contingency for this in case.
A quick look on Google Maps gave me an idea of what the demolition costs may be to remove the old house and to check the aspect, the way the land was facing.  The aspect was workable, not ideal but a quick redesign of the floor plan will see our living spaces north facing.
Looking on Google Earth and knowing the area, I could estimate that the land was pretty flat so that will minimise site works such as retaining walls.
Now, all I needed was an interested client.  I often find property before we have a client ready to move forward.  My newsflash went out to our database, people who had signed up to receive the free Property Bloom newsletters.
It may even be your lucky day.
However there’s still much more research to be done before an offer would be made on this site and for our new clients it’s important they have finance pre-approval and have discussed the project with their accountant and financial planner.
Jo Chivers is director of <a target="_blank" rel="nofollow" href="https://www.propertybloom.com.au/" title="Property Bloom" style="font-size: 14px;">Property Bloom</a>, which manages property development.
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When making extra real estate enquiries pays off: Jo Chivers

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From our experience project managing house renovations and designing new villas for investors over the years, we’ve gathered lots of information on what tenants want.  It’s easy to sometimes get caught up in what we would like if we were living there.
As investors, we need to remember that we are not renovating for our tastes and needs but for those of the tenant market in that particular area.
The tenants in one area may have different needs to tenants in other suburbs, depending on the demographics of the suburb. However there are common needs for all tenants.  It’s important to provide the necessities and then you can tailor your product for the specific market who you’ll be renting to.
Check in with local managing agents on the type of tenant who will most likely be renting from you. Start by telling them the number of bedrooms your property will have.  A granny flat will rent to a different market than a four-bedroom house. This may sound obvious but from here you can work on what this particular market needs. A family is more than likely to rent the four bed house and therefore a large laundry area, two separate living spaces and more storage will be in high demand.
Property Bloom has a list of items we consider when designing floor plans or renovating houses so that the properties will appeal to the rental markets in the Hunter Region of NSW, which is where we specialise.  So here’s our list:
Fresh – tenants love brand new, so new villas or renovated houses are popular.  Even if a house doesn’t necessarily need renovation, we will suggest to our client a fresh coat of paint and new carpet at least to the bedrooms. You can often push the rent a little higher on new homes as tenants will pay a premium if they are the first to live there.
Size – two-bedroom villas will appeal to a certain market; we’ve found predominately single parents or single men tenants who are most likely contractors working in the area for a certain period.  Whilst these two tenant types are very different, both want low maintenance outdoor spaces.
Three- to four-bedroom villas or houses will suit families so larger courtyards or gardens, two living spaces, two or more bathrooms and large laundries are important.
Flooring – we stick with tiled floors in the living areas, they are better for wear and tear, hygiene (no old, dusty carpets) and tenants can add their own floor rugs if they like.
Bathrooms – we strive for a minimum of two bathrooms where budget allows, or at least an extra toilet.
Double garages – these are in high demand from tenants. Sometimes their car is their biggest asset and they want to keep it safe. We add the feature of remote access garage doors as it’s seen as a nice touch but also important for security.  For our granny flat developments, we recommend clients consider an off street parking space or carport for the flat.
Storage – extra storage is always welcomed by tenants, we often add an additional large storage cupboard in the back of the garages.
Security – at a minimum we include a security screen door to the front door and the remote access to garage doors let’s tenants drive straight into their garages and close the door behind them. Our floor plans include internal access from the garage.
Low maintenance but usable outdoor spaces – flat and nicely presented outdoor spaces don’t need to be massive but easy to maintain. We will use pebbles to the sides of our villas rather than turf to minimise mowing.  We include Alfresco dining areas under the roof on our larger villas and houses or at minimum concrete patios with pergolas so tenants have an extra space to dine.
Proximity – the location of Property Bloom developments are close to schools, shops, hospitals and major employment hubs.
It’s important to know your tenant target market and renovate accordingly so that your investment will have an edge over the others available.
Jo Chivers is director of <a style="font-size: 14px;" title="Property Bloom" href="https://www.propertybloom.com.au/" rel="nofollow" target="_blank">Property Bloom</a>, which manages property development.
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Top tips for impressing tenants: Jo Chivers 

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The twins were the size they were supposed to be born at, but our client Rachel had an emergency delivery over twelve weeks ago.
She almost died on the operating table, losing a lot of blood.
If it wasn’t for her amazing obstetrician and team of surgeons on hand and a high tech method of stemming the blood loss (featured on the news) she wouldn’t be here today nursing her two gorgeous babies.
I was meeting with Rachel at her home to celebrate (with no champagne due to breast feeding requirements) the completion of her dual occupancy development.
The Property Bloom-managed development had gone particularly well and achieved the following outcomes:
-          Final costs were $38,459 LESS than the original estimates due to our lower offer on the land being accepted and also the build costs were considerably less than originally estimated. We also did not require our contingency sum.
-          The valuations came in $20,000 higher than our lower end estimate or right on target with our higher end estimate.
-          Equity position was $58,456 more than originally estimated.
-          The project was completed within fourteen months from Exchange on the land to Practical Completion of building works.
-          Return on Investment result was a massive 18% (within 14 months).
-          Gross yield was just under 7%.
-          Depreciation benefits were high.
-          The medium price for this suburb had grown by 6.08% over the past 12 months.
As I held baby Grace whilst baby Harrison looked on and trying to remember just how to burp a new born, I mused over how amazing this woman was.
As she was recovering in hospital from her near death experience, she was also settling on another property purchase, one that Property Bloom had found for her.
Rachel now owns eleven investment properties and was feeling a little frustrated because she couldn’t buy her next property or do another development with us until she went back to work, probably in a couple of years.
By the way, did I mention Rachel has four other children?  So just how does a mother of six come to accumulate eleven investment properties?
Focus, determination and drive.
These three words are so important to all of our plans.  Rachel told me how one of the accountants she saw said she was “lucky” to have so many properties!  We chuckled about this comment as luck has nothing to do with what she’s achieved.
Another comment made by her bank’s ‘relationship manager’ was she shouldn’t be holding so many properties, it’s risky and he wouldn’t give her any more money.
Funnily enough, she’s planning a move away from this bank, or at least this manager who works for one of the Big Four banks and can’t understand her strategies and goals.
Rachel will continue to invest and develop property until she reaches her goal of early retirement.  What an inspiration she is to all of us... so what’s holding you back?
Jo Chivers is director of <a target="_blank" rel="nofollow" href="https://www.propertybloom.com.au/" title="Property Bloom" style="font-size: 14px;">Property Bloom</a>, which manages property development.
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Focus, determination and drive are key to property investment success: Jo Chivers

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As a bushfire approaches a dwelling, or anything else in its path, the dwelling will be subject to the following threats:  

Wind-borne burning embers – these may be carried up to 5 km ahead of, or fall up to 1 km behind, the fire front (in extreme cases embers may travel 35 km). These embers may cause spot fires well ahead of the fire front or cause fresh fires to break out after the threat has seemingly passed.
High winds – the velocity of winds associated with bush fires may be greater than that for which houses in the same locality but not subject to bushfire attack have to be designed. Wind behind a bushfire creates a moving fire front that consumes fuel in its path. Fire fronts most often travel at about 5 km/h, but can move at up to 30 km/h depending on terrain, wind and fuel availability. In large fires, the thermal energy can create its own weather phenomena, eg flaming whirlwinds in crowns of trees and rolling clouds of fire. Where a bushfire front comes up to or passes a dwelling, these local weather phenomena within the fire may result in reversal of wind direction and increase the magnitude of the wind forces to which the dwelling is subjected.
Wind-borne debris – the high winds can tear off branches from trees or sheet metal coverings from roofs and these then may become missiles that impact on adjacent dwellings.
Heat – the fire heats the air above it; this heated air is then frequently blown ahead of the fire front and dries out and preheats potential fuel sources and may in some cases raise the temperature above the ignition temperature5. When the fire is close, external surfaces of the dwelling will be subject to radiation that also may raise the surface above the material’s ignition temperature.
Direct flame – if the dwelling is close to the bush (or if adjacent trees, shrubs or combustible material ignites), the external walls and roof may be subject to attack from flames. Further, the local weather phenomena described above may mean that buildings some distance away from the fire front may also be subject to direct attack from flame.  
Source:  <a href="https://www.concrete.net.au/publications/pdf/Bushfire.pdf" target="_blank">https://www.concrete.net.au/publications/pdf/Bushfire.pdf</a>  
Property Bloom recently found a development site across the road from a site where we had just completed a dual occupancy project.
On one side of the road where we had just built the land was not bushfire prone. On the other it was a different matter and the land was rated bushfire prone.
So what exactly does this mean and how will it impact on development costs?
Bushfire prone land maps are prepared by local councils across the State of NSW and are certified by the <a href="https://www.rfs.nsw.gov.au/dsp_content.cfm?cat_id=1052" target="_blank">Commissioner of the NSW Rural Fire Service (RFS)</a>.
 
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Whilst we want to build dwellings that are safe, what exactly do we need to add to our dwellings when they are in a bushfire zone to meet requirements?
Firstly, let’s define bushfire-prone. A bushfire-prone area is an area that can support a bushfire or is likely to be subject to bushfire attack. In general, a bushfire-prone area is an area occurring within 100m of a high or medium bushfire hazard.
New development on areas identified as bushfire-prone are subject to the development and planning controls of ‘Planning for Bush Fire Protection 2006’ and must be designed to improve the survivability of the development and the occupants that are exposed to a bushfire hazard.
For our development, to meet the requirements we need to add aluminium fly screens to all windows and doors in lieu of standard mesh made of woven fibreglass yarn coated with PVC.  
Tiled roofs must be fully sarked - sarking is an impervious barrier comprising of foils and films which is used to prevent water from penetrating the building envelope beyond the exterior roof and it’s a requirement in some bushfire prone areas.  
Metal fascia and gutter guards were also required to stop leaves from building up and becoming a potential hazard. During a bushfire, sparks can travel many kilometres in front of a main fire front and can ignite dried leaves and rubbish in your gutters. Another advantage of adding these guards is to keep birds and rodents out of the gutters and roof as they can cause damage and spread lice.
Spark proof garage door seals which involves an aluminium holder fastened to the door which closes any gaps to the entry.  It’s flame retardant rubber compound slides into the holder and rests above the lintel to provide a barrier to help delay the onset of fire.  
Metal covers for the weepholes to the brick vents. Sub-floor vents are screened to allow free air movement, but prevent spark or ember ingress. The non-combustible screen is covered with a corrosion-resistant metal spark guard.
This has impacted on the build costs for this particular dual occupancy project by about $10,000.  
What we will also consider is that mortar joint finishes ironed or flush joints have been found to perform better than raked joints when subjected to fire but this is not mandatory.  
BAL Risk Assessment – Granny flats
The <a target="_blank" href="https://www.rfs.nsw.gov.au/dsp_content.cfm?cat_id=900">NSW Rural Fire Service </a> regulations require a Bushfire Attack Level (BAL) for a granny flat project. If the BAL is 40 or the highest risk, Flame Zone, approval must be sought by a DA with the local Council.
If the BAL is low, there is no need to do anything except pay for a Bushfire Assessment from a qualified assessor as long as the property is complying.
If the BAL is 15 to 25, there will be requirements for protection measures. This may include toughened glass, aluminium flyscreens and gutter guards.
Generally, Property Bloom does not look for granny flats sites within bushfire-prone areas unless a water hydrant is nearby as it can add costs to the construction and this strategy is all about low costs and high yields.
It’s important to understand that whilst building and developing property in bushfire prone areas can be very desirable due to the views and peaceful environment a bush setting brings. But it will add to the build costs and these additional costs may not always be seen to add value.  You should use these upgrades as selling points as in effect what you have done is in included a ‘bush fire protection system’ for the home, much like a security system will add value, so should the bushfire protection system. So be sure to point this out to potential buyers and valuers.
In the end, the location of our dual occupancy project – a premium area close to all facilities – outweighed the additional costs for the bushfire requirements and we looked at this as an ‘opportunity cost’ to build in this leafy, green area.
Jo Chivers is director of <a style="font-size: 14px;" target="_blank" rel="nofollow" href="https://www.propertybloom.com.au/" title="Property Bloom">Property Bloom</a>, which manages property development.
 
 
 
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The impact of bushfire zoning on your development: Jo Chivers

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I was watching Deal or No Deal on telly yesterday afternoon whilst getting dinner ready for the family.
It’s a show where the player has a suitcase that contains an amount of money.  She then gets to choose cases to eliminate them in the hope she has the highest amount - which is $200k - in her case at the end. Along the way she can choose to take the bank deal offered or take a risk and continue to play. She may end up with $200k or with a much smaller sum.
I love the show and I’m always yelling ‘take the deal!’ as I vigorously rub the tips of my fingers together (this may sound weird if you haven’t seen the show).  My shouts at the TV get louder as the odds get slimmer.  I realised from playing this game even though I’m a property developer, I don’t like to take too much of a risk if it means losing money.
This threw me a bit as I always thought of myself as a risk-taker.  Then I worked out that I do like risk, but only calculated risk.
Calculated risk is defined by investorwords.com as:  “A risk associated with a certain course of action which has been given full consideration prior to making the decision to pursue that action. This is usually done when the potential gain is greater than any potential harm that might occur.”
The bit I like in this definition is ‘...when the potential gain is greater than any potential harm...’. Ah, so that’s why I like risk, it’s what I do everyday; assess the potential gains in a property deal.  Also, my job as property development project manager is to ‘give full consideration’ to a development and inform our clients before they ‘pursue action’.
As I watched the show I thought it was a bit like property developing.  If you hit the jackpot, there is good money to be made.  Making the decision on what case to chose could be somewhat like choosing a development site.
If you chose the wrong site, you can uncover a $50,000 problem and eliminate a lot of your profit.  If you chose the right site, you may create $200,000.
Property developing is about spotting potential and taking calculated risks. That’s why I love it.
Jo Chivers is director of <a style="font-size: 14px;" target="_blank" rel="nofollow" href="https://www.propertybloom.com.au/" title="Property Bloom">Property Bloom</a>, which manages property development.
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Calculated risks are key to property development and investment success: Jo Chivers

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As a mother of two beautiful boys, my focus is to teach my sons the value of setting themselves up for the future early.
I only really learnt that I was totally responsible for supporting myself after reading the book “Rich Dad, Poor Dad” by Robert Kiyosaki when I was pregnant with my first son twelve years ago.
The book opened my eyes to lots of things, but my two main insights were: the more time we have to build our investments, the more money we should have when we are ready for retirement. And, that we need to educate ourselves financially and not just handover our money and trust others to invest it for us. We are responsible for building our own wealth.
So off I rushed to build our investment portfolio and along the way I also created a business developing property for others. I found that I loved my new business; it was flexible to accommodate my baby and I was doing something that I loved: property.
As my son grew older and our second son was born, my investments started to really show the benefits of holding property over the long term. Rental returns slowly increased and capital growth created equity. Then I started to develop and add value to my regional investment which lead to my understanding of compounding equity creation through development.
I try to talk about property investing as much as possible with the kids, sometimes they come with me to the development sites and I try to explain in simple terms about basic economics.
“We are building houses here... if you borrow money to build or invest you’ll get some help from the government to help you pay the loan costs.  You will get paid rent and this will be a source of income for you...” I tell my eleven-year-old who is starting to understand.
We set up a term deposit that we empty his piggy bank into every now and then. I tell him it’s for his first property deposit. Slowly I plan to build on his knowledge of economics and how he can make money by being entrepreneurial.
Kids are pretty smart with money so engage them and encourage it. I try not to say ‘we can’t afford it’ and rather ‘how can we afford it?’ Let them come up with ideas to make money. To nurture the genius in your child is a great gift.
As Robert Kiyosaki says: “Don’t just protect your child from the future; prepare them for it”.
I don’t want my kids to have to deal with the tyranny of compounding bad debt as well as the compounding interest on that debt. We must educate our children and teach them the difference between bad and good debt.
The world is full of teachers and they are not all in the classrooms. Our kids need to learn early how to make money, invest and manage their finances. Experience and making mistakes along the way is the best way to learn. As parents we can help our kids think differently to the way we did when we were young.
Happy Mother’s Day for Sunday to all the mums out there.
Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" rel="nofollow" target="_blank" style="font-size: 14px;">Property Bloom</a>, which manages property development.
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Financial education is one of the best gifts for your children: Jo Chivers

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One of my favourite and most exciting research criteria when looking at areas to invest is infrastructure projects.
When a government or private sector announces a new infrastructure project, history tells us that it will boost the local community. Infrastructure projects yield indirect benefits through the supply chain, employment, business and retail growth, consumer spending, social benefits of community development related directly to the project and my favorite, property values increase.
The increase in property values that is associated with the construction of that piece of infrastructure goes beyond what would be perhaps the case of the normal appreciation of property.
I have been told there are two stages of a major infrastructure project that most affect property values. A spike in values will take place shortly after the announcement of a major new infrastructure project and then again when the project is completed and functional and the benefits of the project are realised.
I’ve seen this first hand with the announcement of the Hunter Expressway a $1.7 billion road project that will provide a dual carriageway linking the F3 to the New England Highway.
The project was announced in the 2009 federal budget but had been originally proposed back in 1988. It has been a long time coming.  What I saw after the announcement was a distinct demand in the areas impacted by the project, particularly around the interchange areas and where the highway would finish.
A development project we have completed for clients in one of these towns is testament to the impact the Hunter Expressway has had.  The development site was a three-bedroom house on a large block. The development strategy was to renovate the house, build two three-bedroom villas and subdivide.
Something amazing happened and the equity creation in this project was phenomenal. The land benefited from capital growth at the same time we were developing it.  So the normal equity we create through the development process was almost doubled due to the capital growth during the development period.  To add to that, the house was rented and still is, at a record high rent by construction workers employed in the project.
The cherry on the top for our clients will come later in the year when we hope to see that second spike and increase in property values when the Hunter Expressway is finished.
We are looking forward to seeing the impact the opening will have. For me the benefits will be twofold; firstly my clients in many of the Hunter towns we work in will benefit as we’ve been busy developing in these areas for the past ten years and secondly, it will shorten my travel time each week when I do my site inspections. I am really looking forward to cutting about 45 minutes off my trip to Muswellbrook!
Jo Chivers is director of <a style="font-size: 14px;" title="Property Bloom" href="https://www.propertybloom.com.au/" rel="nofollow" target="_blank">Property Bloom</a>, which manages property development.
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Infrastructure is key when considering where to invest: Jo Chivers

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This week as I climbed a mountainous sand dune for the twentieth time in two hours with my legs burning, I found myself reflecting on property development.
I know, that may sound sick but I needed some distraction; it's school holidays and the kids and I were in the largest living coastal desert in the Southern Hemisphere. It was hot and I was tired.
The Worimi Conservation Lands or Stockton Bright Sand Dunes as they are known are part of beautiful Port Stephens in the Hunter Region of NSW.
As my five-year-old whizzed down the dune at breakneck speed, I glanced down to see yet another load of Chinese and Korean tourists spill from the four wheel drive bus. The tourists scurried up the dune; perched themselves on narrow boards and then launched down the dune. Cameras and phones clicked to catch the moment and reels of laughter rang out with chatter in languages I didn’t understand. Everyone was having fun.
The next day we boarded our dolphin watch cruise only to see the launch next to us load with literally hundreds of Asian tourists. As we searched the clear waters for dolphin, I chatted to the captain, I was interested to hear about the impact that particularly Chinese tourists were having on the NSW multimillion dollar tourist economy. And I was interested to see how this would trickle down to the Hunter Region's property market.
After years of relying on the coal mining in the Hunter to support our property markets, I could see a very real and different industry emerging right before my sunglass-covered eyes.  Tourism... Chinese tourism. So I did a bit of research and of course the NSW government are onto this potentially massive industry.
From my very brief research, a few Google searches and chatting to the people running the tours I took the kids on over the past few days, I learnt that most of the Asian visitors are day trippers, booked before they leave home on bus tours from Sydney that take them to various Hunter Region locations. They go to the vineyards and the Hunter Valley Gardens in Pokolbin, they go to Nelson Bay and do a dolphin cruise and have lunch before heading back to Sydney and stopping to ride the giant sand dunes on their way.
In the past twelve months, NSW had the largest share of Chinese visitors to Australia, as well as the largest share of Chinese visitor expenditure. Between July 2011 and June 2012, visitors from China to NSW increased by more than 15% to 335,500.
During the same period, NSW received more than 60% of all Chinese visitors to Australia, compared to Victoria at 51% and Queensland at 43%.
Within NSW, Sydney is their number one destination and the Hunter has so much potential to lure these tourists and cash in on their expenditure.
"Not only do the Chinese want our coal and iron but our sun, our smiles, our sights, our wine, food, our education services and our attractions,'' the former managing director of the Australian Tourism Export Council (ATEC), Matthew Hingerty said a few years ago.
Destination NSW reports that China has the potential to <a href="/news">contribute more than $17.4 billion to the NSW economy</a> over the period 2012-20 and be directly responsible for 13,900 jobs.
So how will this translate to the property markets around NSW and particularly the Hunter Region of NSW? I think it can only be positive, tourism is a growing industry that is creating jobs. I look forward to watching this emerging market that will impact on the local economies of the areas we develop in.
Jo Chivers is director of <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://www.propertybloom.com.au/" title="Property Bloom">Property Bloom</a>, which manages property development.
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Chinese tourism to boost NSW Hunter Region: Jo Chivers

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I did a radio interview this week and was asked to answer three seemingly simple questions:
- Should an investor buy old or new property?
- Where should they be buying?
- When should they be buying?
Simple, right? Well, not really. The three questions above have endless answers but I’ll run through what I answered.
Should you buy new or old property?
Neither. My answer was to build. Right now the NSW government wants to stimulate construction and is offering a <a target="_blank" href="https://www.osr.nsw.gov.au/benefits/grant_scheme/">$5,000 incentive to build</a>.
If you buy the right land at the right price, then you can create equity even on a single house build. But if you build a duplex or dual occupancy on that land, then the equity created can be much more.
Just this morning I was offererd a duplex site that was only $160,000. To build a three-bedroom duplex will cost about a third more than a single four-bedroom house. But the end value of the two dwellings will be so much higher. That is how Property Bloom creates equity for clients.
Where to buy?
Well, of course, that depends on two main things.
Do you want negatively geared property or neutral/cashflow positive property? An investor on a higher income paying lots of tax may be more interested in buying in the capital cities and will more than likely end up with a negatively geared property.
If it’s a new apartment or house, then they will also benefit from strong depreciation benefits. An investor looking to boost their income with the property investment may find a more cash flow positive property in regional areas.
In general, yields are higher in regional areas compared to capital cities. Of course, you can build in regional areas and create both a high depreciating dwellings with strong yields and benefit from cashflow, equity creation and depreciation.
When to buy?
This was the easiest question and my answer was: right now!
My opinion has always been that property should be held for the long term, for me that is over ten years.
I remember in the early 2000s when the market was moving up and friends said to me, “I’ll think I’ll wait for the market to come back before buying”.
Of course, they kicked themselves years down the track when the market was still high.
In the Hunter region of NSW, we did not see any correction after the rapid growth of 2000-2004, and since the market has enjoyed controlled incremental growth.
I think it’s best to get into the market as soon as you can but do your research and look for areas of good value. If you are clever and choose a flow-on suburb rather than a suburb that has already experienced strong growth, you can buy well and watch as the suburb eventually goes up in value.
I also believe the conditions right now are perfect: low interest rates, high rental returns and a good selection of property to buy. Soon, we may see an undersupply of investment stock and that can push prices higher. For me, this is an awesome time to be buying property (and developing it), our clients seem to agree.
There are many questions to answer on property investment; starting with these three may help you get into the market sooner than later.
Jo Chivers is director of <a target="_blank" rel="nofollow" href="https://www.propertybloom.com.au/" title="Property Bloom" style="font-size: 14px;">Property Bloom</a>, which manages property development.
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When? Where? Old or new? Three key questions about property investment

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Switching on the telly the other night, I said to myself: “It’s that time again.”
I watched a media report on the age old Rent versus Buy Dilemma. It happens every cycle when we see rents increase and interest rates decrease. All of a sudden, tenants start to realise that they can buy for the same cost of renting.
What we have seen in most markets around the country is a continuous rise in rental returns over the past few years. We’ve seen this in the Hunter Region of New South Wales where Property Bloom develops.
The rise in rents has been great for investors already in the market who have benefited from strong yields. Our clients have achieved up to 9% gross yields.
But there comes a time when we reach a point in the property life cycle when interest rates are low so the cost to fund a mortgage is around the same cost as it is for a tenant to rent.
I’ve seen this happen before about twelve years ago in NSW when the interest rates were low, but the big difference back then was that the cash rate was fluctuating from 5.50% to 6.25% instead of 3% which is where we are now.
We thought the cash rate was low back then. So the average variable rate may have been around 8% compared to about 6% now.
Investors right now are on an awesome wicket... do you realise it?
If you are a new property investor, you may not appreciate this. We’ve had low interest rates since 2009. For the past four years, the cash rate has not been higher than 4.75%.
We oldies have worked with cash rates as high as 6.75% back in late 2007 so the variable rate would have been around 9%. I know my parents had to deal with much higher interest rates in the 1990s when the cash rate peaked at 17.5% - can you even imagine what that would have been like?
What I’m trying to say is: we are in such a fabulous environment right now for property investing.
Interest rates are at a record low, rental returns are high and we will very soon see tenants starting to buy rather than rent. This will create demand. Demand drives up sales prices and this translates to capital growth.
As property investors, this is great news as we will see our properties increase in value. But there is a flip side of course. As tenants move out of our investment properties to buy, there will be an oversupply of rental properties and we’ll have to drop our rents. This means lower yields.
We can’t have it both ways forever.
My message today is: don’t muck around if you are thinking of buying more property or your first property. Think of taking it one step further and add value to your property through developing it; I personally think you should be sitting pretty by developing now.
You’ll create or manufacture equity through the development process. And if you can time it when capital growth is occurring in your location, then you’ll hit the jackpot.
Jo Chivers is director of <a style="font-size: 14px;" title="Property Bloom" href="https://www.propertybloom.com.au/" rel="nofollow" target="_blank">Property Bloom</a>, which manages property development.
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We are in a fabulous environment right now for property investment

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Joel Robinson

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

A local downsizer has splashed $6.5 million on a penthouse in Perifa's Alex &amp; Willow development in Crows Nest. 
&nbsp; 
The purchaser sold their long-held family home in the area before embarking on a six-month search for the right apartment. After inspecting a range of options across the Lower North Shore, the buyer returned to <a href="https://www.apartments.com.au/new-apartments/alex-willow-crows-nest-82-90-alexander-street-crows-nest-nsw-2065">Alex &amp; Willow</a>. 
&nbsp; 
The buyer profile reflects the project’s broader purchaser mix. <a>Alex &amp; Willow</a> has attracted predominantly local downsizers looking to transition from larger homes without compromising on space or quality, alongside a smaller cohort of upsizers and investors drawn to the project’s location and design credentials. 
&nbsp; 
The milestone sale comes as the project, developed by&nbsp;<a href="https://www.apartments.com.au/developers/perifa">Perifa</a>&nbsp;and delivered by <a href="https://www.apartments.com.au/builders/versatile-made-construction">Versatile Construction</a>, both part of Versatile Group, reaches 60 per cent sold.

[smartcode_project:default project_id=6680 project_image_fid=371325] 
&nbsp; 
Eddie Mansour, Managing Partner of <a href="https://www.apartments.com.au/project-marketer/ray-white-projects">Ray White Projects</a>, said the result demonstrates not only a headline price but also depth of demand. 
&nbsp; 
“This is an exceptional outcome and a clear reflection of sustained buyer demand for premium, well-located downsizer product,” Mansour said.

“We’re seeing a consistent pattern of local homeowners selling family residences and reinvesting into high-quality apartments that allow them to remain within their community. Alex &amp; Willow has resonated strongly with this group because it offers genuine scale, thoughtful design and immediate proximity to the village.” 
&nbsp; 
The sale reflects a broader and consistent trend of local downsizers actively seeking high-quality, low-maintenance residences close to established village centres. Agents report that demand for this product type has remained resilient, particularly where developments offer a rare combination of scale, design quality and walkable amenity. 
&nbsp;&nbsp; 
Fabrizio Perilli, Managing Director of Perifa and Versatile Group, said the sale marks a defining moment for the project. 
&nbsp; 
“The penthouse sale is a strong endorsement of the quality we have delivered, alongside our partners, and the clear demand from local downsizers for premium, boutique residences in this location,” Perilli said.&nbsp; 
&nbsp; 
“Most importantly, we’re proud to see the Alex &amp; Willow community beginning to take shape. As we move closer to completion, we’re looking forward to welcoming residents and seeing the project come to life.”&nbsp;

[smartcode_project:default project_id=6680 project_image_fid=338516] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettleton Tribe</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>, Alex &amp; Willow is a boutique collection of generously sized two- and three-bedroom residences in the heart of Crows Nest village.&nbsp;

Completion is slated for early 2027.

[smartcode_project_cta:default project_id=6680]

Alex & Willow, Crows Nest penthouse sells off the plan for $6.5 million

Fresh from launching the first stage of its Wollongong precinct, <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, builder-developer Urban Property Group has unveiled plans for the next phase of the masterplanned community.

Now on public exhibition through the NSW Government's Housing Delivery Authority pathway is a State Significant Development Application for a further 657 homes on the prominent gateway site opposite Beaton Park.

The proposal comprises three buildings, including two build-to-sell towers rising 25 and 30 storeys, delivering 391 apartments, alongside a 12-storey co-living building with 266 residences, making it one of the largest co-living proposals currently planned in regional New South Wales.

Of the apartments proposed in the build-to-sell towers, the majority, 310, are two-bedroom dwellings. The balance comprises 44 one-bedroom apartments and 37 three-bedroom residences. Apartment sizes range from around 50 sqm for one-bedroom homes to approximately 90 sqm for three-bedroom apartments.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="19347059-1612-41a0-9c74-b86a657237f8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%2010.02.18%E2%80%AFAM.png?VersionId=sWXnaCcA.cIC6N8YT1dg5pJ2e1V3Z6z7" />

The submission says the proposal has evolved significantly from its original Housing Delivery Authority application following extensive consultation with the State Design Review Panel and Wollongong City Council.

The final scheme has been designed to align with the emerging vision for the Flinders Street Precinct, an area identified by Council as a future high-density mixed-use neighbourhood capable of accommodating substantial housing growth close to transport, employment and community infrastructure.

According to the design report prepared by COX Architecture, the development aims to "deliver a built outcome consistent with the future character of the Wollongong CBD while responding to the site's unique constraints and opportunities."

"Our vision for the next phase of the site evolution in Wollongong is grounded in three design pillars that guide the design response: place, natural environment and celebration," COX said.

"Inspired by its surroundings and grounded in the stories of place on Wodi Wodi Country, the design proposal acknowledges the established character of its setting while creating a unique and timeless identity that sits harmoniously within it.

"The design proposal responds to its specific site conditions, acknowledging the vegetation, climate, wind conditions and solar access of the site."

The architecture responds directly to the site's position between Wollongong's urban core and its natural landscape setting.

COX identified views towards Mount Keira and the Illawarra Escarpment as defining features of the site, while the upper levels of the towers will also capture expansive views across the city and out to the Pacific Ocean.

The design team has positioned the tallest buildings closer to the rail corridor, where overshadowing impacts can be better managed while establishing a landmark built form on the northern approach into the city.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="79580d5b-500c-4ebf-9629-797146a4a694" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.51.59%E2%80%AFAM.png?VersionId=WbTB1EKSG.KDfsfz0F3wp1QVa2oCMGR5" />

Urban Property Group secured the 11,000 sqm Smith Street site in 2022 and has since progressed plans for the broader Keira Place precinct.

Construction recently commenced on the first stage of Keira Place, which will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, alongside activated ground-floor retail and commercial space.

Urban Co-CEO Patrick Elias said the commencement of construction marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/groundbreaking-marks-start-of-construction-at-keira-place-in-wollongong-cbd">Groundbreaking marks start of construction at Keira Place in Wollongong CBD</a>

&nbsp;

&nbsp;

&nbsp;

Jo Chivers

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