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This morning I was watching my favourite morning show while getting the kids’ breakfast sorted. I always look out for the financial overview; it’s not much, but it gives me a little something to go on through my day (that sounds a bit boring?).  But by watching this 20-second update, I can see what the share markets around the world are doing, the value of the Aussie dollar, inflation figures and gold and oil prices and occasionally they’ll touch on property.  This is when I grab the remote and turn it up. I have to say, I find the financial overview very biased, but what can a property investor do?
Today I was rewarded as I saw one of the researchers I follow, Louis Christopher of SQM, on the show. He’s pretty much on the ball in my books.  He was talking about the turn of the market that he had noticed.  He spoke about the auction clearance rates increasing and he thought the interest rate cuts were really starting to kick in.
“This is going to be an affordability driven recovery,” he said, and my ears pricked up.  I totally agreed.  When property becomes too expensive, usually in the cities, investors start to look for more affordable areas. The exact same thing happened to me about nine years ago. After buying a few negatively geared properties in Sydney I needed to find more cashflow-positive ones. I needed property that wouldn’t hinder me and that I could add a lot of value to, so I could keep buying more.
That’s when I discovered the Hunter region of NSW.
Louis went on to say that he thought that growth would occur “particularly in the outer rim in most capital cities where housing is affordable”.
The same day I took the kids into the city (school holidays!). We caught the ferry to Circular Quay then a train up town where we disembarked to have yum cha lunch with my hubby. It was a fun day and we got home and as I checked the mail, I found a letter from one of the local real estate agents.
They wanted to keep me updated of the local sales and how our suburb was performing (I guess in the hope I am blown away and want to sell up?). The letter had in big bold letters our medium price at $1.260 ,million.  It went on to tell me that there had been 52 sales in the past 12 months and this suburb’s gross yield was 4%. The 10- year (long-term) growth per annum was 4.4%.
In contrast, I thought of the Hunter suburbs Property Bloom develops in and pondered on the extreme difference.  One of the large regional towns we work in has a medium price of just $253,000 with 240 sales in the past 12 months with a gross yield of 6.7%. The 10-year (long-term) growth per annum was 12%.
You don’t need to be a rocket scientist to know which of these two suburbs would make a better investment.
I’m happy to live in the suburb we do, our house is within walking distance to the beach and a great place to bring up our kids. We have actually received awesome capital growth over the past 15 years or so.
But for an investment, I’d rather have four properties for the price of one in that Hunter region town.
My mind wandered back to Louis’s words this morning about affordability and it just rang so true to me as a property investor and developer.  I think you need to invest in areas where there is long-term growth potential but more importantly, you need to be able to hold your properties and keep moving forward.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.</body></html>

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Affordability will drive a property market recovery

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Last week Property Bloom was offered a few development application and construction certificate approved dual-occupancy sites. They are in a town where dual occupancy sites are extremely hard to find right now. This town’s median price has been growing steadily as a result of investor activity increasing over the past 24 months as people are attracted to the high rents being achieved due to an undersupply of housing.
If there is a two-speed economy, this Hunter town is in the top speed category.
As I spoke to the builder offering me these sites (off market), I was running the figures in my spreadsheet.  The builder had a set price for the land and the building costs.  I jotted down the costs for the three sites, and then went to work comparing them with other dual-occupancy developments we had recently completed in the town.
Usually Property Bloom’s first aim is to achieve a high level of equity from a development for our clients. Then we look at the yield and strive for 7.5% for a dual occupancy, higher on other types of development.  Dual occupancy means building two dwellings on one lot.  We can usually achieve a good amount of equity by sourcing the land and building two villas. The villas can be attached and therefore part of a duplex or they can be freestanding.  A dual-occupancy project may typically take 12-18 months to complete (usually depending on the council processing time).
Looking at the expected equity outcome on these sites we could see it was a little low. But the real advantage in these deals was time and money; the fact that we could start building immediately and the price was fixed.
There would be no contingency required, and the builder is essentially taking up all the risk. Even hitting rock was including in the fixed, turnkey price.  Turnkey means that all landscaping, driveways, letterboxes, clotheslines, etc, is included, so you can turn the key and move in.
The other important factor was that the costs for the development application and construction certificate were included, even subdivision was included.  So all fees and charges had been paid for. I estimated there was at least $15,000 in this.  We could start building immediately.
The icing on the cake was in the terms. This builder was structuring the drawdown schedule for us so that only 10% of the build cost was paid by the time the slabs were laid and 90% on completion.
This is where my clients could save some serious holding costs.
Normally there would be five draw downs during the building works, typically at slab 20%, frames and trusses 20%, brickwork and roof 25%, interior linings/mould out 25% and completion 10%.  With 90% of the cost being paid on completion, clients will save thousands of dollars in holding costs.
If we only looked at how much equity we can create from a development, we would have passed on these opportunities, but when we look at the other valuable advantages of getting into this market quickly, high depreciation benefits, high yields and low risk then these development opportunities are attractive.
A development you can turn over quickly will allow you to move onto the next one.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.</body></html>

Saving time is saving money in property development

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Last week I bumped into an old client, Sunshine, at our local coffee shop. She looked wonderful with a baby on her hip, on her way to music lessons. When we first met about 10 years ago she was working with a large financial planning firm. I was meeting with her to do a presentation on what was then my new business.  Property Bloom had just launched and we had our first two clients, but I needed more and thought I’d present my property development project management service to a business that may help me find many more clients and fast.
Sunshine said she really liked the concept, so much so she decided to do a development project with us herself.  She was certainly the first financial planner I’d met who really walked the talk and who didn’t just promote boring old managed funds. She owned her first property at the age of 23 and accumulated 10 properties by the time she turned 30.  I really liked Sunshine, and we connected through property.
It was a great compliment for me that a financial planner saw merit in my new business. Here was a numbers person, a professional who basically helps others create wealth, wanting to work with me. I was chuffed.
So off I went and found her a great development site in the Hunter Region in NSW, a large corner block with an existing house we could renovate, and we built a three-bedroom duplex and completed a subdivision. She then went on to recommend Property Bloom to a few of her clients, and I was appreciative as this was instrumental in building my business in the early days.
I stayed in contact with Sunshine and watched admirably as she opened her own business, which quickly grew to one of Australia’s leading independent financial service companies.  On top of this she also wrote a fabulous book I love, called <a href="https://www.buypropertynotshoes.com/" target="_blank">Buy Property Not Shoes!</a>  It’s a girl’s guide to financial independence. 
A few years later, after starting a family, Sunshine decided to sell the financial planning business.  She wanted time to spend with her baby daughter and husband. This must have also given her time to think more about property, as it wasn’t long before she was converting one of her properties, an industrial warehouse located on the central coast of NSW, into <a href="https://www.theentrancebackpackers.com/" target="_blank">backpackers’ accommodation</a>. She managed to get a government grant to help fund this venture and created a higher use of this property than leasing it as a warehouse. She is so clever. 
During our quick catch-up she told me that she still holds the development that Property Bloom managed for her today. “It’s been so easy, always tenanted, and we’ve been slowly increasing the rents on all three properties, it’s now tracking at an 8.3% yield,” she told me. It was good to hear she was still benefitting from the development. We’d created thousands of dollars in equity on completion, the properties gave good depreciation and after all these years it was still a good investment for her. By using this development strategy in the Hunter Region, Sunshine was able to boost her portfolio by three properties for the price of a two-bedroom apartment in Sydney.
I’m looking forward to the next chapter of Sunshine’s story, I’m sure it will continue to include property in some shape or form.  I love this quote from her book:
”Wealth creation is not rocket science. In fact it is incredibly simple. Anyone can do it. You just need to put in place a few logical behaviours and habits that over time create an outcome you desire.” - Sunshine Estivo.
See, easy!
Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.</body></html>

Buy property, not shoes

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Last weekend I packed up my four-year-old son and we embarked on a road trip to Bulahdelah, a small country town about three hours from Sydney. I wanted to see my dad on Father’s Day. Mum had to suddenly find a nursing home who could take dad when she recently discovered she needed some medical treatment herself and would not be able to look after dad during her treatment. Dad has Alzheimer’s disease, and while still in pretty good physical condition at 89, his memory is deserting him, he now needs full-time care. It’s a cruel disease and very hard on carers.
We were very lucky that there was a vacancy in this lovely country nursing home, and he is being well looked after. Driving home, I found myself reflecting on my future. Where will I end up?  My parents had no superannuation, no investments (apart from the family home) and this meant they had no choice.  They needed to go onto the pension and they needed to take whatever care they could find that would be covered by the pension.
For my retirement I want choice. Money gives choice.
In fact, I’ve joked around with a few friends that I will develop a fantastic facility where we can all hang out in our retirement.  I’ll find a few acres of land near the coast and build the perfect retirement village.  It won’t be a quiet place with boring quizzes and games of bingo; we’ll have a state-of-the art gym with nice-looking instructors to keep our old muscles strong and our minds sharp.  We’ll sit on top of one of the green, rolling hills looking out to the ocean and do yoga in the mornings. We’ll have our chef prepare gourmet seafood lunches. We’ll be served cocktails and canapés at afternoon tea, not instant coffee and bickies. There’ll be in-house black jack tables and a roulette wheel, and we’ll hold Vegas parties (like Prince Harry).
We’ll each have a personal carer or butler (as we’ll call them) who will remind us to take our vitamins and medication and ensure that we don’t fall out of our wheel chairs at happy hour.
Our “outings” will be to exotic destinations: shopping in Melbourne, day spas in Queensland, wine tasting in the Hunter Valley, theatre and concerts in Sydney.  The men can have their own drivers so they can check the surf each day and maybe get out there on a mal or do some laps in the ocean pools and sit around in their Speedos spinning yarns in the sun.
There’ll be guest houses for our families to come and visit and animals everywhere for us to play with: horses, dogs, cats, goats, pelicans, alpacas...whatever we want in our nursing home.
This is my dream retirement, to stay active, mind, body and soul, relax and have fun in my twilight years and be with my friends. Not to be in a strange nursing home or a burden on my family or the government.
What’s your retirement look like?
We need to plan for it, and we needed to start yesterday.  In most cases, our super is not going to be enough, especially for us women.  Women tend to live longer and have less super due to being out of the work force raising children or caring for parents for some period of time. Then there’s the pay inequality issue – so there are lots of reasons we need to be even more diligent than men in planning our futures.
My message today is to keep building your property portfolio and hold onto it.  I’ve found that property really does double in value over 10 years, some of mine have tripled in less, and if you really want to build that portfolio, look at developing property.
Property Bloom’s latest completed three-villa development has just created around $167,000 in equity within about 18 months.  By developing property, you are adding value and manufacturing equity.  There are strong depreciation benefits and if you develop at the right time, you’ll also enjoy good capital growth to come.  These villas have a strong yield and were leased out within a week of completion.
Dream up your retirement, work hard now, make some sacrifices, build your investments and you’ll be able to choose your future.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.</body></html>

How property development can help you have the choices you want when you retire: Jo Chivers

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Property development can encompass many activities including renovating an existing dwelling or building, demolition of buildings and/or building new and subdividing or changing the use of land.
Developing property can be risky and not for everyone. There are many things that can go wrong, so it is important to really do your due diligence and understand the many facets involved.
I’ve compiled what I think are the top three things to do first when embarking on a property development. <a target="_blank" href="https://www.propertyobserver.com.au/land/the-first-step-when-getting-involved-in-property-development-choose-the-right-location-jo-chivers/2012081656083">Step one is finding the right location.</a> Step two is finding the right site. Step three is assembling your property development team.
Who will I need in my property development team? 
Your property team should consist of: 
<ul>
<li>
Property accountant – It’s very important to have the correct structures in place before you buy. My accountant is a key member of my team and well worth her weight in gold (that’s how much she charges me! Of course, accounting fees are tax deductible). </li>
</ul>
<ul>
<li>
Property lawyer – Every property transaction is different, and even the simplest contract should be looked over by someone with experience. My lawyer is like a father to me, and I thoroughly trust his judgment and advice. </li>
</ul>
<ul>
<li>
Finance broker – It is vital to use a broker with a strong understanding of construction finance. Establish a close relationship with your broker so she understands your individual situation and be able to fast-track the sometimes tedious process of obtaining development finance. </li>
</ul>
<ul>
<li>
Architect/draftsman – A local architect will have an understanding of the council requirements but always have your builder check over the plans before you lodge your DA to get a construction perspective. Some small changes by the builder can make a big difference in building costs. </li>
</ul>
<ul>
<li>
Builder – A close working relationship with your builder is important. They need to be flexible and accuracy in their pricing with enough clout be offer economies of scale with their buying power of materials. Some builders may have existing designs for villas or duplexes that will save you money not having to engage an architect. You can usually make minor changes to these plans. </li>
</ul>
<ul>
<li>
Surveyor – He or she will have a strong knowledge of the local area and has often conducted surveys or subdivisions on land in the area. </li>
</ul>
<ul>
<li>
Quantity surveyor – important to maximise tax rebates on completion of your development. </li>
</ul>
<ul>
<li>
Project manager/development manager – If it’s your first development, an experienced project manager will hold your hand through the process and you’ll learn what’s involved so you can then manage your next development. A good project manager will also bring discounted rates and other advantages to the project. </li>
</ul>
This is a nutshell of information on what to consider as you get started. Sometime is will seem a lot easier just to buy existing property but if you really want fast-track your portfolio and create some equity along the way, then property development may be for you.
 Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
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The third step when getting involved in property development: Assemble your property team

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Property development can encompass many activities including renovating an existing dwelling or building, demolition of buildings and/or building new and subdividing or changing the use of land.
Developing property can be risky and not for everyone. There are many things that can go wrong, so it is important to really do your due diligence and understand the many facets involved.
I’ve compiled what I think are the top three things to do first when embarking on a property development. <a href="https://www.propertyobserver.com.au/land/the-first-step-when-getting-involved-in-property-development-choose-the-right-location-jo-chivers/2012081656083" target="_blank">Step one is finding the right location. </a>
Step two: Find a good development site
Once you have found the area you want to develop in, it then comes down to good site selection. 
When looking at a development site consider:
<ul>
<li>Location</li>
<li>Aspect</li>
<li>Slope</li>
<li>Frontage</li>
<li>Depth</li>
<li>What’s on top of the land</li>
<li>What’s underneath the land</li>
</ul>
 Location of your development site is obviously important. We all know that being close to community amenities is top priority whether you are planning to keep your new dwellings or sell them, so being close to schools and universities, shops, transport and medical facilities is very important.  You should check out the neighbours on all sides of the land to make sure there are no dog breeding kennels, chicken coups, car workshops or noisy businesses that may make the location undesirable for tenants. Ask the locals about crime rates and take a drive around the streets to get a “feel” for the area. Trust your gut feel or intuition; we will often get an instant negative feeling if something is not quite right.
Aspect is the direction the land faces – north, south, east or west.  It’s important to have the living areas of your development as close to facing north as possible to maximise natural light.  Aspect is also very important for the energy rating of your development.
The slope of the block is important. Most people think a dead flat block might be good for developing, but although it may be better than a steeply sloping site you may need to build up the site with fill and retain it to meet drainage issues. So the ideal block will slope or fall slightly to the street, which will assist with natural stormwater runoff and drainage.
A wider frontage or width of the block is usually desirable, particularly if you are looking at a medium density development as you will be losing some of the width to a driveway to access the rear dwellings. Some councils have a calculation as to how wide the driveway needs to be based on the number of dwellings. So make sure you have taken this into consideration and have a wide enough block.
 
Depth is important and will determine how many dwellings you may get onto the land.  Be careful with very deep blocks, as the deeper the block, the longer the driveway. A long driveway can add thousands to your costs. You may also need to run services such as sewer, water, gas and electricity from the front of the block to the back, depending on where the connection points for these services are located.
 
What’s on top of the land? For a quick assessment, take a look around to see how many large trees may need to be cleared. A mature gum tree can cost up to $5,000 to remove, so if there are a few of these, you will need to allow more for you site clearing costs. Also look out for asbestos sheds on concrete slabs, which are expensive to remove. If there is an existing house that you plan to keep, check there is good access to the back of the block for the large site clearing machinery that may be required.
 
What’s underneath the land?   In some regional areas, you should check for old mines.  If you know it’s a mining area, you can apply to the local mine board for a subsidence report.  You can still build over an old mine, but it adds considerable foundation costs. Is there a natural water course running under the land?  The soil type is also important. In most cases, you won’t know unless you commission a geotechnical report, which is advisable to have done if after all your research you are sure this is the correct site. It may cost around $800 but worth every cent if it means you can more easily assess projects viability.  You will also need to know the location of the sewer line, sewer junctions and sewer manholes as some of these may be built over but one of them most certainly cannot.  You can request the sewer diagram from the agent or the local water authority.  A detailed survey will show other important things so again, if you are serious about the site, get a detail/contour survey done as you will need this to have a builder or architect work on a design for your project.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
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The second step when getting involved in property development: Find a good development site

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I had a call this week from a chap who was weighing up whether he should develop property or just go out and buy some new properties.  I explained that buying existing property is like buying at full retail prices or perhaps at sale prices if you are lucky. 
But by building your own properties, and I mean two or more, not just one, is more like buying at cost prices as you can manufacture equity through the development process. 
I thought I’d share what I believe to be the main benefits of developing property over buying an existing today and give you my three top tips to get started on your development journey.  This will run as a three-part series, beginning with part one today.
Property development can encompass many activities including renovating an existing dwelling or building, demolition of buildings and/or building new and subdividing or changing the use of land.
By developing property you are adding value and will be creating or manufacturing equity through the development process rather than waiting for capital growth, as you do when you purchase an existing dwelling.  Most the towns we develop in are growing at an annualised rate of over 10%.
If you plan well and time your development so that you are adding value and manufacturing equity while the market is in an upswing, then you could make some good money, as you’ll also benefit from the capital growth during the period you are developing
But if your timing and/or location is wrong and your plan is to sell on completion, then you may find it hard to sell or your margin has diminished if values are dropping.
Developing property can be risky and not for everyone. There are many things that can go wrong, so it is important to really do your due diligence and understand the many facets involved.
I’ve compiled what I think are the top three things to do first when embarking on a property development. 
Select the right location for your property development 
Which region and then which town are you going to develop in?
You'll need to do lots of research. Start with the local council's website, which will give you information on:
<ul>
<li>Community profiles – who lives in the area?</li>
<li>Population estimates – very important to see if the area is growing</li>
<li>Migration figures – where is the community coming from?</li>
<li>Working population breakdown – is it mainly a retiree area or does it have a large working community? You will obviously be looking for the latter for a strong rental market.</li>
<li>An overview on the economic development of its community – what is planned for the future?</li>
<li>Recent development approvals will be listed so you can see what type of developments are currently being approved.</li>
<li>Tourism – how much does the area rely on tourism as an industry?</li>
<li>Infrastructure investment/planning – very important, make sure there is considerable investment being made here</li>
<li>Development control plans (DCP) and local environment plan (LEP).  Find the one that gives guidelines on the type of development you are planning to do, for instance and there should be a separate DCP for dual occupancy development, which is building an additional dwelling on land that would normally house just one.</li>
<li>Long-term strategic plans – this is a really important document to read as it will show housing and employment needs for the future and pinpoint the areas earmarked for growth.</li>
</ul>
When talking to a council town planner and ask questions like: 
<ul>
<li>How long the average DA takes to process?</li>
<li>Is the council open to new development in the area? </li>
<li>What is the minimum lot size?</li>
<li>How many dwelling can you build on this particular lot; and</li>
<li>Can the planner see any issues that may impede developing this lot; for instance, is it in a flood zone? </li>
</ul>
The council website will usually include many valuable links to other websites in the area. 
Speak to local agents to understand the average lot size and use Google Earth, it’s a fantastic tool for armchair street inspections. 
Of course, you will need to visit the area and drive around, chat to the locals and take note of the type of housing currently available and what perhaps is missing. 
Look for an area that is currently undervalued and has huge potential to grow and whose population is actually growing and is supported by diversified industry. 
This means it will probably have a strong rental demand. You can find out the vacancy rates by asking all the local agents how many properties they manage and how many they have available to rent. Add them all up and divide the available for rent properties by the total under management and you’ll get the vacancy rate percentage.  Areas with a consistent vacancy rate around 1% have a strong rental market. 
For example:
Total number of properties available to rent in X town:  29
Total number of properties under management: 1,397
Vacancy rate:  2% 
You'll need an area that has affordable land with large lot sizes.  The more dwellings you can build on one block, the more equity you can create. 
Also consider how far you want to travel, in order to manage your development you’ll need to do regular site visits.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
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The first step when getting involved in property development: Choose the right location

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What a special day it was yesterday, a real contrast for me.
I attended my Uncle Phil’s funeral and saw two Aussie women win Gold at the Olympics.
My morning started by watching the awesome efforts of both Sally Pearson and Anna Meares, who won Olympic Gold medals for Australia.
I listened with a tear in my eye as Sally Pearson (100m hurdles) told the camera and everyone around the world, what she had said to herself before her race.
“I want this, it has to be mine...it can’t go any other way...”
These powerful words brought her take the gold. She had already won it in her mind.
Then I heard the story about Anna (sprint cyclist) who in 2008 fractured her neck, dislocated her shoulder and tore ligaments and tendons when she crashed her bike at 65 kilometres per hour.  She was 2mm away from needing life support to breath for the rest of her life.  Here she was today winning gold (beating the Brits, too!).
What struck me about these two women was focus and determination.
Back to my morning. Once I had the kids sorted, I headed off to Uncle Phil’s funeral in Sutherland in Sydney’s south.  I arrived to find the funeral parlour filled with lots of different people: old family friends, air force colleagues and Qantas pilots.  Uncle Phil had served his country in the RAAF then worked as a commercial pilot for many years.  The stories told at his funeral of his tough upbringing in Queensland, unwavering support for the Cronulla Sharks (that’s commitment!) and successful career and family life was touching. Uncle Phil had achieved a lot in his 90 years of life, the word they described him as was “steadfast”.
The inspiration that I received today was amazing, the theme I was seeing for the day was:
Focus, determination and steadfastness
In the morning, I was jumping up and down and full of pride as I watched our awesome Aussie women win gold medals at the Olympics.
Then, later in the day, I found myself reflecting on what has been an equally awesome achievement of my uncle, who I most remember for being pretty hard nosed and strict on us kids, but he was obviously focused, determined and steadfast in order for him to achieve what he did in his life.
My take-out of today is:
<ol>
<li>We can really achieve great things in our life, no matter our circumstances. </li>
<li>All we need to do is focus on our goals and commit to achieving them and stay steadfast. </li>
</ol>
When I started investing in property 12 years ago, my motivation was my family’s future (and still is).  I was pregnant with my first son and realised after reading a life-changing book that if we didn’t take responsibility for our future then we’d end up at the mercy of others (government pensions).
So instead of kicking back and relaxing while pregnant, I studied and sat in lecture halls while my ankles swelled.
Then I worked two jobs so that I could be in a position to borrow enough money to invest and pay my half of our home mortgage. I purchased my first investment property at seven months pregnant and sold it when my son was three months old, netting $120,000.  That was my first property investment experience, and I was hooked.
Not long after my son was born, I also started my own business. My husband worked full time.  As we raised our son and then had another, I grew my business to what is now a very successful property development project management business.
This has not been easy by any means. I’ve stayed steadfast during times when it would have been easy to give up.  I’ve been determined to change our situation and thus our future as quickly as possible.  I knew I couldn’t afford to wait until the kids are older; I needed to increase the momentum, using the time during growth spurts and starting school to invest in property.
I haven’t missed anything vitally important, but I had vitally improved our retirement prospects.
I’ve focused on my goals and 12 years later, I’m achieving great things.  Maybe not as magnificent as those women who won gold, or my Uncle Phil’s, but things I’m incredibly proud of.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.</body></html>

Focused and steadfast in property investment

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Recently, we found a fabulous property for a client wanting to do a granny flat project with Property Bloom.
It was fabulous for two main reasons;
<ul>
<li>It was a large 950 square metre block with extra wide frontage and rear lane access.</li>
<li>It was renovated.</li>
</ul>
Normally, for this development strategy we would look for houses that need a cosmetic renovation. Our definition of a cosmetic reno is internal paint and perhaps external paint (if absolutely necessary, sometimes a good gurney is all that’s needed), new carpet/floor coverings and some repairs, and perhaps a little work to the front garden to increase the street appeal. We’d be looking to spend no more than $10,000. Often once we start our cosmetic reno we find lots of other repairs and upgrades that should or could be done and clients sometimes decided that they really do want a new bathroom or kitchen after seeing the house empty and painted. The older kitchen that looked fine before the fresh paint now looks a little drab. They start saying, “If we do the kitchen, we may as well do the bathroom...” and so the reno budget expands. But where do you draw the line?
As project mangers our job is to keep the emotion out of it and advise our clients on what’s required to achieve a certain rent. It all comes back to the return on investment and we don’t want to overcapitalise.
With our cosmetic renovation we can increase the rent quite dramatically in this town; usually we’d see a jump in rent of around $60-$80.
The real benefit of finding this fully renovated house meant that not only was all the hard work done, but the risk in renovating was also removed. Also, it wasn’t just cosmetically renovated it was fully renovated. It had a new kitchen, new bathroom, had been painted, floating timber floor boards, new carpet, new internal doors, new light fittings and ceiling fans, revived built-in-robes, new blinds, had been rewired and even a new solar powered hot water service had been installed. The cost of the renovation done by the previous owners was well over $40,000.
The big win for us was the price of this property. The median price in this suburb is $246,000. We paid $265,000, so just $19,000 above the median. This property is above average due to the size of the land and its location – close to schools, shops and walking distance to the local club. Un-renovated this house may have sold for around $250,000 in today’s market; the previous owners purchased it years ago so they still made good money. So in reality, for an extra $15,000 we have a fully renovated property and the “unknown” was removed.
The other major benefit was that the house is not occupied and we negotiated access to hold open houses to find a tenant during the settlement period, so the day after settlement our clients will start receiving rent without any down time due to renovations. The expected rental return on this property is $340 per week; on a purchase price of $265,000 this is already a 6.7% gross yield.
Property Bloom will add further value by building a granny flat for around $96,000, which will rent for $280 per week and our end result will be a strong 9% gross yield.
Sometimes the value has already been added to properties. As long as you can purchase at the right price what’s the point of renovating yourself if the numbers stack up? Save yourself the time and pain and move onto your next deal.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
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To renovate or not to renovate? That is the question.

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In my former life (before I was a property developer) I worked in the cosmetics industry.  One of my claims to fame was that I invented a whole new product category.  A category is a group of products that have similar characteristics. For example, when you go into the grocery store, everything is categorised in aisles; so the cereal aisle will be made up of categories such as mueslis, oat products, biscuits (e.g. wheat bix), etc.
My “invention” was depilatory cream for men.
Yep, you heard right.  Back then in the early 1990s I was a young product manager looking after a women’s wax and depilatory range.  For those who may not know, a depilatory cream dissolves the hair just below the skin’s surface so you get a smoother result than shaving and it’s not as painful as waxing (ripping the hair out by the roots sometimes causing ingrown hairs).
After some in-depth research, I found that men were starting to focus on hair removal.  Not just on their faces but also on their chests and legs.  Some men would remove hair for sporting reasons –  i.e. triathletes or swimmers, apparently making them faster – but others had started doing it for aesthetic reasons, as apparently a bare chest accentuated their muscles (not that I noticed).
How did I research this?  Back in the old days, I would occasionally venture into the city and go to nightclubs with my now husband. I would see guys, mostly gay or body builders (or both) dancing around with no shirts on and with not much body hair.  As I was managing a brand of hair removal products I decided to conduct a little research (hoping I could tax deduct the exorbitant door fee!) and ask the guys how they removed their hair.  Funnily enough, they were more than happy to tell me they were shaving or waxing and not happy with the results.  I won’t go into any more detail here as this is actually a column on property developing, but suffice it to say the light bulb went on and I saw an opportunity in the market. I soon launched the first extra-strength depilatory cream for men and called Andre.  If anyone has ever used this product, I’d love to hear from you!
So what has men’s hair removal have to do with property development?
Nothing, really.  The point I’m trying to make is that this week I came up with a new development product to fit into our established property development category.  The new product slips in right between our existing granny flat and dual-occupancy development strategies.  It’s filling a gap and I think a need in the market.
I can’t really say we’ve invented it as perhaps others are already doing it, but we’ve taken a proven strategy – building a granny flat on existing property – to a higher level.
I’m calling it the “new, new granny” opposed to the “old, new granny”.
With the “old, new granny” strategy we are finding properties with an existing (old) house that is suitable to renovate and then building a new two-bedroom granny flat on the land. This strategy has been very popular, and the main benefits are:
<ul>
<li>It’s cost effective; about $360,000 in total costs (in the Hunter region of NSW).</li>
<li>High gross yield of 8-9%.</li>
<li>We add value to the house through renovation.</li>
<li>Usually the property is located in established suburbs with good sales and rental history. The suburbs we choose have and charm and character.</li>
<li>It’s quick, typical timeframe about three months to complete.</li>
</ul>
This strategy appeals to people on a certain budget wanting cashflow.
In our “new, new granny” strategy, we build a new house and a new granny flat at the same time.
This strategy will be very popular as the main benefits are:
<ul>
<li>We can design the type of house we want to build.</li>
<li>Maximise rental return by adding rooms, increasing the size of house or other features in demand.</li>
<li>Higher depreciation benefits are achieved.</li>
<li>Design to fit the granny flat rather than have to work with position of existing house.</li>
<li>Appeal to higher-income tenants looking to rent new property and achieve higher rent.</li>
<li>Building warranty included for both new dwellings.</li>
<li>Total cost around $520,000</li>
<li>Possible higher capital growth prospects</li>
</ul>
The difference is a lower yield for the “new, new” strategy of about 7.5%, but depreciation is higher so most likely a cashflow-positive result for the investor (depending on their taxable income).  This strategy suits someone wanting more depreciation and possibly higher capital growth potential, as we’ll be building these in upmarket land estates.
It was fun running the figures and seeing just where this new development strategy would fit into the Property Bloom range of developments we offer.  We now have a firm build estimate, some great land lots lined up and are ready to launch our new product. I knew my marketing background would come in handy one day!
Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank">Property Bloom</a>, which manages property development.
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Bringing new products to market: A smooth new granny flat option

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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