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Can you use a green builder and still have a cost-effective result?
In our experience the answer is yes. We found that using an eco-friendly builder not only added to our client’s bottom line and benefited their tenants, it also gave peace of mind that they were doing their bit for the environment.
When it came to finding a builder for our granny flats, at first I had one thing in mind: cost effectiveness, because this development strategy was all about creating the highest yield possible. We asked our regular brick and tile builders to price a two-bedroom 60-square-metre flat by using their traditional slab/brick/roof tile construction, but their price was coming in too high.
Thus our search began for a cheaper way to build the flats without compromising on quality. We researched caravan park-style cabins that could be trucked to site but found this method was about the same price as our brick builders. We even looked at converted shipping container boxes, but they were not up to our standards.  Then we found our eco-friendly builder.
I’ll quickly explain what is involved with this development strategy.  First we locate a house in a strong rental area, one with “good bones”. By that I mean a large house with at least three to four bedrooms and one that doesn’t need too much renovation. The property needs to tick a number of boxes but in particular be complying so we can use our private certifier to fast track the complying development application to build the granny flat.   We bring the house up to the standard where we could maximise the rent, there is an income during the build phase and on completion the flat is rented, usually to a separate tenant than the house. The result is a 9% gross yield.
So back to our eco builder. I was impressed to see his company is certified as a climate-friendly business, encompassing not only its corporate operations but every granny flat and house it builds.  The company undertook extensive assessment and calculations to estimate emissions associated with the construction of each home.  On completion, clients are supplied with a certificate from <a target="_blank" href="https://www.climatefriendly.com/">Climate Friendly</a>, certifying that during the construction process emissions of greenhouse gasses were minimised and then offset. This reduces the adverse affects on the planet throughout the stages of design, construction and completion.
This company’s process includes using alternative building materials and construction methods. By using sustainable and lightweight building products and cost-efficient design principles it achieves energy efficiency. The company has even won lots of awards and is considered an innovator in the field.
Transporting products to building sites usually results in the use of large quantities of both fuel and other resources. This builder has put in place a system to greatly reduce the amount of transport required and therefore reduce the amount of greenhouse gasses being emitted during the construction process. One of the key facets of this is the ability to produce our granny flats to lock-up stage in the factory, enabling a single delivery of the flats and all components needed to complete lock-up stage onsite.  The construction process takes approximately 50% of the time required for a typical slab/brick/tile house.
As well as the faster completion time and environmental benefits there are other positives as well. Electricity bills are reduced, water bills are minimised, and our clever granny flat design reduce the need for heating and cooling. Use of natural air movement for cooling, solar or gas heating and appropriate positioning of the flat on-site is all part of the process. Research has shown that heating and cooling account for an average of approximately 40% of household energy costs across Australia. Homes designed to suit the climate of their location result in a significant reduction in the amount of energy required to heat and cool the home.
So we found a winner with our eco-friendly builder. His tender came in 15% lower than the other builders, our flats are completed in half the time, tenants will save on their bills and we have a carbon neutral result. To me that’s a win-win-win!
Jo Chivers is director of <a target="_blank" title="Property Bloom" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
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An eco-friendly builder pays off with a smart granny flat

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When I explain to people what I do and how I’ve made a business out of what I love – developing property – they often say, “I wish I could do something like that”.
My reply is always, “You can do it. If I can do it, you can do it.”  What I’ve worked out over time is the difference between someone who fails and someone who succeeds is the courage to act, not just once, but repeatedly.
Something else I’m often asked is: when is the right time to invest in property? In my books, the right time is now. I’ve seen so many people over-analyse the market and end up sitting on the sidelines for years because they’ve lacked the confidence to take action and invest. Then they look back and say, “If only I did buy that property back then...”   I’m not recommending you buy any old property, of course you must do your due diligence, but when you’ve ticked the boxes and the deal stacks up, have the courage to act.
An important element to help us act is to overcome fear. Fear is a powerful emotion and is described in the dictionary as “an unpleasant emotion caused by the awareness of danger or expectation of pain”, which I’m sure we have all felt at some point in our lives.
Any successful investor will tell you the journey has not all been plain sailing. They have all learned to overcome doubt, fear and uncertainty along with recognising the persistent drive to never give up.
To some of us, the thought of failing or making a mistake is traumatic. Others seem to be able to pick themselves up and keep going until they make the next mistake only to pick themselves up again. They learn from each mistake and see them as opportunities to improve.  This is the type of resilience needed to enable us to bounce back each time. Is it passed on from parents who have instilled this resilience into their children, or is it learned? From my experience, I believe it is learned over time. It’s like anything, if you want to be good you have to practise. Repeat the process time after time and keep refining it.
As a property development project manages this is exactly what we do. Every development is different, each piece of land brings challenges, but we can overcome them easily now because of our experience and yet we are constantly looking at ways to improve our process.
While reading a blog on the internet, I came across these tips, 9 Steps to Overcome Fear, which I’d like to share with you.  As a property developer and businesswoman I could really relate:
<ol>
<li>
Make the decision to succeed - Once you decide on success you rarely allow doubt to enter your mind. Your persistence, dedication and resilience are strengthened. You free yourself to do the uncommon and the impossible. 
</li>
<li>
Take risks – Chase your fear. Do what scares you. Make the dreaded phone call. Ask for what you want. When you experience rejection ask someone else. 
</li>
<li>
Be prepared – Anticipate your own needs. Don’t live in fear, create solutions in advance. Know how you will get out, get over, around and through what could go wrong. 
</li>
<li>
Let go of urgency and fear – Learn to relax and go with the flow. Our anxiety and stress are caused by living in the pain of the past or the far of the future. Life happens in the present moment. 
</li>
<li>
Focus on the benefits of your success – Become focused on what you will gain. Is your benefit financial freedom, travel, saving the lives of others or leaving a legacy you can be proud of? When the going gets tough, focus on your why. 
</li>
<li>
Calm your body – Find a quiet place and bring attention inward, notice where your fear resides in your body. Learn to calm and centre yourself. 
</li>
<li>
Create your own fan base – Your family and friends will be supporting you to succeed. When you are scared, imagine them all cheering you on. 
</li>
<li>
Participate in life – Turn off your television, electronics and the negative media. Take a guitar lesson, a skydiving or yoga lesson or swim in the ocean to basically feel good. 
</li>
<li>
You are enough – Accept who you are and where you are today. When you compare yourself to others, you create your own suffering.</li>
</ol>
When thinking about developing property, the whole process can be daunting. Stay focussed on the end result, make sure you take action and move toward your goal by taking one step at a time.
Tips from <a href="https://zenhabits.net/" target="_blank">www.zenhabits.net</a>
 Jo Chivers is director of <a target="_blank" title="Property Bloom" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
 
 
 
 
 
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Property development is daunting, but you must learn to master your fear

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As part of our property development project management process, after locating a suitable development site, we’ll then recommend to clients the type of design of villas that the development requires.  This is very important because there is a fine line between building for the market and overcapitalising.
We look at four things to determine the level of building investment required:
<ul>
<li>Demographics for the suburb</li>
<li>Surrounding properties to the site</li>
<li>Tenant demand in the area</li>
<li>Recent sales references in the suburb</li>
</ul>
Today I looked at a dual-occupancy site in a suburb that had a couple of different demographics: young families with one or two kids attending the local private school and retirees looking to downsize and live close to shopping facilities in low-maintenance properties.
I’d been given a build cost based on what had been built in this estate to date. It is an upmarket estate.  The build cost for a three-bedroom, two-bathroom duplex to the standard that had already been built in the suburb was around $400,000.
I knew we could build a similar duplex, slightly smaller without a walk-in wardrobe to the master bedroom (that the other duplexes have) for about $370,000. There were other small differences to the façade and finishes, but were they worth the difference of $30,000?  My take on it: nup, because tenant demand is high and we could get the same rent as the other, slightly “better” villas in the area.
A few years ago, I build some fabulous duplexes in an upmarket estate in the Lower Hunter region of NSW.  I wanted to build something of a standard above what was being offered in this estate. So I had the duplex architecturally designed with asymmetrical roof lines in lieu of a pitched roof and we included upgrades such as rendered external finish instead of brick, stone kitchen and vanity benches, shadow line finish to living areas, upgraded European appliances and smart-looking column fencing with aluminium slats.  I thought when the bank valuers see these villas they will see that they are higher in standard than the past sales references of three-bedroom, two-bathroom villas in the area.
Wrong.  The valuer looked at past sales of three-bedroom, two-bathroom attached villas and valued them at the same level.  The upgrades we’d included were not seen to be substantial enough, but of course they did add to the build cost.  A few years later the client decided to sell one of the villas, he was convinced by a local agent that the price was acceptable for three-bedroom, two-bathroom villas as that was what they had sold for before.   I’m sure if the client had “sold” the property to the agent, meaning he needed to emphasise all the points of difference that his villa had to the others, he may have sold at a higher price (mind you, a good agent would pick up on these “selling points”), but he didn’t and so his more upmarket villa did sell at the same price as the stock-standard ones.
So now I’m faced with the opposite opportunity. Can we build slightly below what is in the market, save on costs but end up with the same value on completion?   I reckon we can. Being a bit of a city slicker, I’d always thought higher cost means higher quality.  But I also have a “value for money” vein running through me.  I ran the numbers and our client is looking at making an additional $30,000 or so in equity out of this project for not much concession.
As a property developer, I think this can sometimes be a better option.  Look to build slightly below the market than the other way around.  But this is based on this particular location in a large regional country area.  It may be different in capital cities. My message today:  walk the fine line well and you could make more than if you pay for the fine upgrades.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" title="Property Bloom" target="_blank">Property Bloom</a>, which manages property development.
 
 
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Beware of costly extras in your development that won't help its sales price

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Once we’ve located a suitable development site and if there’s an existing house on the land, we order a pest and building inspection. Management of the renovation is part of the development process.  But to what degree do you renovate, and when is it considered overcapitalising?  In these regional areas, we are not looking to massively upgrade a house but to add cost-effective value and maximise rental returns.
It’s crucial that we receive the pest and building report before our client exchanges on the property, so we always make our offers “subject to a pest and building report”.
When the report arrives, it’s usually around 30 pages long and for first-time readers, can completely shock and turn them off a property. The report contains a lot of information that the inspector needs to explain and also to include in order to “cover” himself.  It’s his job to point out all the things wrong with the house, but then it’s our job to sift through the data and explain to our clients what we believe to be acceptable or common in houses in this particular area and of this particular age.
Property Bloom has renovated many houses, and we have picked up some common problems that may sound a bit scary but can be quite cost-effectively solved.  Most of the houses that fall into the right price range – so that the numbers stack up to develop – would be over 50 years old.
And these properties do have defects, depending on the age and the general maintenance they’ve experienced, however the property usually still represent good value.
I thought it would be interesting to translate some comments we often find in the building report that can raise alarm bells. In our experience these ‘defects’ are actually are not too hard to fix by using cost effective renovation strategies.
Defect: Various downpipes discharge rainwater to ground and require connecting to stormwater pipes or storage tanks.
Solution: A plumber can cost-effectively connect down pipes to the stormwater for approximately $800.
Defect: The external painting and finishes reflect an inadequate maintenance program and will require extensive preparation, detailing and painting to ensure long-term qualities.
Solution: Most houses can be washed down and may not require painting.  If they do, we can usually have it painted for $2,500.
Defect: Roof mortars require repointing randomly to ensure further long-term waterproofing qualities.
Solution: Pointing is a substance that is used on the roof capping tiles. A quote from a roofer can be quickly obtained, however if the roof is not leaking then it may not be required urgently.
Defect: Internal painting is in poor condition and requires professional upgrading.
Solution: One person’s “poor condition” is another person’s “OK”.  We like to wash down internal walls and ceilings with sugar soap and they usually come up like new. What is acceptable for a tenant may be different to your own standards.  We can internally paint a house for around $2,000 and a new coat of paint does wonders to a house, so it’s worth considering.
Defect: Asbestos linings were possibly present in some areas.
Solution: Asbestos materials remain serviceable and are considered safe as long as asbestos is not tampered with.
Defect: There is sagging to the ceilings.
Solution: Sagging ceiling are easily identified by the ceiling areas being wavy and not level and can be repaired by a handyman securing ceilings to partitions.
Defect: There are variations in the floor structure and some bounce.
Solution: Over time piers do sink or timber floor joists can deflect or bend.  Piers can be packed to stop some of the bounce and variation. To re-pier an entire house is usually not necessary, but we always ensure the ant caps are on piers.  Bent joists can be replaced if required.
Defect: Some damage due to wood decay fungi.
Solution: Wood decay fungus is commonly known as wood rot.  The type of fungi encountered by pest controllers usually resides in poorly ventilated subfloors, below wet areas of the home, exterior timbers and in areas that retain waters in the soils. The durability and type of timbers are factors along with the temperature and environment. Removal of the moisture sources usually alleviates the problem.  Have a carpenter inspect and replace any rotted boards or timbers. Most old homes will have some degree of wood rot.
So don’t be put off when reading through reports, if you have any doubts or don’t understand the information, discuss it with your building inspector, as often a conversation can explain things in more simple terms.
If your strategy is to create high-yielding property then be careful not to overcapitalise when you are renovating.  We base our renovation assessments on what’s required to bring a house up to the market standard and to make the house safe and clean.  Right now we are finding properties where just a few thousand dollars needs to be spent to increase the rent substantially due to the high demand in these town.   Once you’ve completed your house renovation and then go on to add a new dwelling, granny flat or even a duplex, the yield can be dramatically increased and equity can also be created.
Jo Chivers is director of <a title="Property Bloom" target="_blank" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
 
 
 
 
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How to read between the lines of a pest and building report: Jo Chivers

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I met with Danielle this week for a coffee.   Danielle is a part-time town planner and mum to three kids.  I’d met Danielle when she’d asked me about helping her with a medium-density development.
Then, through some unfortunate circumstances Danielle found herself a single mum.  She couldn’t finance a larger development.  But she used her experience and prowess in understanding the planning process to make herself a cool $70,000 profit from a simple two lot subdivision.
Danielle purchased a large lot in a new release of a big, well-known development in the Hunter region of NSW.  My first reaction was, “You can’t buy a lot in a new release and then subdivide it, as there are restrictions under the 88B Instrument in the contract”.  A Section 88B Instrument is the part of a deposited plan that upon registration can put certain restrictions on the land.
You would assume a large developer would protect the right for someone to come in and then subdivide its lots, especially in a new, upmarket release.  But Danielle went through the massive contract with a fine-tooth comb, and with her ability to read the local environment plan and development control play and understand what the council would allow, and what she was legally permitted to do, she went for it.
There was one hiccup when the town planner managing her development application started to question it.  But as she’d had no opposition from the vendor, the original developer or her neighbours, she was able to talk her way around this.  Once approved, she paid for the necessary works and then soon sold off both smaller lots and made her profit.  Go girl!  So I thought I’d explain to you more detail about subdivision. Because although it worked out well for Danielle, it can be costly and not so rewarding if not managed the right way.
Subdivision is one of the many strategies you can use to develop property.  It involves converting one piece of land or existing dwellings into several.
Raw land subdivision entails legally and physically converting raw, undeveloped land into developed land so that one or more buildings – residential, commercial or industrial – can be constructed.  As you will be changing the land’s usage and appearance, for example perhaps from a rural rezoned paddock into a residential land subdivision, you’ll also be building the infrastructure required such as roads, paths, drainage systems, water, sewerage and perhaps even public utilities such as a park.
You can also subdivide developed land (much more easily) by simply splitting a block in half.
Subdivision of existing buildings is the conversion of a single title to multiple titles. For instance, a block of 10 units on a single title –often referred to as units “in one line” – can be converted into individual titles such a strata title. This is a great way to add value to the properties and allows you to sell them off individually.
Subdivision is a great development strategy for the current market conditions.  It gives you flexibility to play is safe and sell off a newly created piece of land to reduce your loan, or to hold and add value to the property by registering the new lots and holding or further developing them.
The objective here is to have a creative outlook while searching for potential subdivision sites, as it is this creativity that can determine the success of the development.
So when would you subdivide?
An investor might buy a dwelling that is on a large piece of land, where he or she can renovate a house and then subdivide, or perhaps a home owner living on a potential development site where subdivision may be permissible. The site will, however, need to meet council regulations.  The first question you need to ask the council is, “What is the minimum lot size?”  You can find this out from your council’s Development Control Plan for Subdivision and their guidelines.  The minimum lot size will vary from council to council and from different zonings. For instance, the residential minimum lot size will be smaller than the rural zoned land size.  One council I work with has a residential minimum lot size is 450 square metres.  So we can subdivide a 900sqm corner block into two lots. However, if we had a 900-square-metre piece of land that was not on a corner, then we could not subdivide this, as we also need to allow for a driveway to access the back lot and the area needed for the driveway is in addition to the minimum 450 square metres.  So we would need a block of land approximately 1,100 square metres in size to be able to subdivide and allow for our access handle.   Another type of property to look for is land with two street frontages, so if it is 900 square metres in size and the minimum lot size is 450 square metres you can literally cut it in half and each lot will have its own street frontage.
Different types of subdivision
When looking to develop with subdivision, it’s important you understand the different types of subdivisions. Getting professional advice will help you to make the best decision for your site and also which potential purchase will make the process through council the smoothest.
Strata subdivision – Dividing a property into separate units, apartments or villas.  Strata is land title based on the horizontal division of air space and may involve common areas shared by each title holder and usually managed by a strata manager.
Torrens subdivision – Dividing one land lot into two or more separate land titles. This form of subdivision gives the owner complete autonomy with their land as they don’t have to answer to the strata manager or adhere to certain strata rules and regulations.
Community subdivision – A development with common property such as roads may be used by all residents.
The figures
When budgeting for your subdivision you’ll need to start with a realistic target for how much the completed development will be worth, and then subtract costs to calculate profitability. It’s important to run a feasibility analysis on the subdivision (<a href="https://www.propertyobserver.com.au/developments/how-to-determine-if-a-site-is-feasible-for-development/2012031453848">covered in detail in last week’s article</a>) including possible costs for stamp duty, legal fees, surveyor services, council application and developer charges, civil works and service connections such as gas electricity and water.
Make sure you also discuss your subdivision strategy with an accountant and understand the possible tax and GST implications if you are planning to sell.  You will also need to estimate your holding costs such as interest on your loan and rates.  This can be a real drain on finances if the process drags out and you are not getting any income from the land to help offset your holding costs, so time is money in this type of development.  Try negotiating long settlement periods with permission to lodge a DA from the vendor or buy under an option.
Location
Getting the location right can either make or break your development success. Research is important here to ensure you are building a property where people in that area want to live. You have to totally remove yourself from the development, as you won’t be living in it, your target market will be.
Inner cities are limited with the availability of land, so in this case strata division is being created through developments.  Looking up to two hours outside the city allows you to be more creative in your development, plus you can usually create a Torrens subdivision. There may also be more room for growth in the outskirts, especially if there is some infrastructure taking place in that area.
Choosing the right property
<ul>
<li>The first item you need to properly assess a potential subdivision site is a survey. It’s amazing how many sales contracts I review that do not have a survey.  So you may need to pay for this before exchanging as you need to be sure of the land size and whether there are any easements affecting it. </li>
<li>The next item I always ask for is the sewer diagram. You need to know where the sewer is located and if it is actually feasible based on the slope of the land, to cost effectively extend it to service a new lot. </li>
<li>You need to check the slope of the site for drainage issues.</li>
<li>Check the aspect of the site and think ahead of where any new dwellings will sit to take advantage of the aspect.</li>
<li>Research the zoning regulations and read council’s subdivision guidelines.</li>
<li>Compare market value – is vacant land in demand?</li>
<li>Check service connections – is there sewer available in the area, is there an electricity source close by?</li>
<li>Corner blocks are good for your first subdivision </li>
<li>Structure of property – this is important if you are developing a strata division as the building will need to be structurally sound to handle the requirements such as firewalls between units.</li>
<li>Have your solicitor check for restrictive covenants or easements. You may find land in a new estate has a covenant over it that does not allow for further subdivision.</li>
</ul>
 
DA approval 
Getting a surveyor to manage your subdivision DA can save you a lot of time.  If you’re researching a new area, the first place to start would be the local surveyor. They can give you advice on the subdivision process and cost indications. You need to use a surveyor to prepare your subdivision plan.
Once you have abided by the council’s regulations, it is then the residents you may need to win over. Generally if the land you’re subdividing meets zoning requirements and you comply with the subdivision development control plan then there should be little your neighbours can do about your subdivision, however it is always a nice gesture to talk to them personally about your plans.
I always look at the best way to subdivide as part of our development process, the way that will be most cost effective and not hold up the development process, and we have found in many instances it may not be the most obvious way.  What may look like a simple subdivision can turn into months and months of complicated work.  The service connections, plumbing and civil works alone can really blow out a budget, so it’s important to understand the entire process before you embark on your first subdivision.  I’d recommend you start with a simple two-lot subdivision.
There are many more things to consider when planning a land or building subdivision, so make sure you engage professionals to assist you if you’re a beginner.  A development project manager will be able to work with you on every stage of the process and you’ll be amazed at how much you learn along the way and like Danielle, you could find yourself making a nice profit for your efforts.
Jo Chivers is director of <a title="Property Bloom" target="_blank" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
 
 
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Subdivision can make you money, but there is a lot of potential for costly mistakes

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You’ve found what you think is a brilliant development site.  Now it’s time to jump on that roller coaster and start the ride of your life as you commence the analysis process.  Will the project be feasible?  What is feasible, anyway?
Let’s find out.  Feasible is really another word for “is it going to be financially worth it for you to spend your time, energy, money, blood, sweat and tears developing this site?”.
Some advice I can give you about property investing and anyone in property will also tell you, to stay emotionally unattached to the property, as this is where bad decisions can be made. I have seen it many times, and this is where it can all come undone.
Firstly, it’s important to determine your development strategy and your investing criteria prior to looking for a development site.  Your strategy may include:
<ul>
<li>Land subdivision</li>
<li>Renovating an existing dwelling</li>
<li>Dual-occupancy or low-density development</li>
<li>Renovating an existing dwelling and building new villas/units also on the land</li>
<li>Medium-density development</li>
<li>All of the above</li>
</ul>
Your budget will help to determine your development strategy. A simple land subdivision will be less costly (but not necessarily quicker) than a larger villa/unit development, for instance.
As part of your strategy, you will need to think about what profit margin you would feel comfortable making from a development.   You may have heard about the “20% profit margin” rule for developers?   Once all development costs are taken from the potential sale result of the properties, (when selling the properties) there will be a 20% profit margin.  Personally, I don’t always work back from a certain profit margin, as I find this restrictive.
Most of my clients are looking to boost their portfolios and hold the new properties long term, so we also need to meet other criteria.  By other criteria, I mean rental returns on completion.  For instance, if a client wants to create a positively geared development the end gross yield will need to be around 10% and we will actively search for development sites in very strong rental areas of the Hunter region of NSW to meet this objective.  Other criteria will include the amount of equity we can create from the project.  We strive to create over $100,000 in equity after our project management fee.
To determine the feasibility of a site, you will need to:
<ul>
<li>Talk to an accountant who specialises in property and one who preferably develops property him or herself as he or she can advise you on the best structure to purchase under and explain the tax implications when developing such as GST and CGT. </li>
<li>Meet with a financial lender or a bank to determine your budget and the best loan structure for your development.  It’s important to choose a lender that offers construction loans and find out what their lending criteria is around this, i.e. not all residential lenders will lend to you for a four unit site for instance.  Check interest rates on these loans.</li>
<li>Meet with solicitor to determine his or her costs. He or she will check for restrictive covenants or easements that may affect the land and will also make sure services are available and connected, especially if you are developing in a new area, as well as finalising the deal for you.</li>
<li>Read the local development control plan (DCP) and local environment plan (LEP) and speak with your council’s town planner to find out development application and CC (construction certificate) costs. Get friendly with the town planner to find out which developments the town wants to see in the area, as this could save you time and money by getting it right the first time. </li>
<li>Meet with an architect and builder to determine what you can build on the site.  Some builders offer standard designs which will save you design fees.  If they do this, then they will be familiar with the local planning requirements.  If you are not happy with a standard design, engage a local architect to design specifically for the site. Get a quote.</li>
<li>A surveyor will give you advice on the subdivision process. He or she will prepare your subdivision plan and estimate costs relating to the subdivision including sewer extension and service connection costs. </li>
<li>Once you have a concept design and before you lodge your DA, meet with builders to determine construction costs. Try to get three quotes and make sure they offer you a fixed-price contract.</li>
<li>Talk to real estate agents to determine the value of your development and rental returns on completion as this will have huge impact on the success of the feasibility.</li>
<li>Research other costs such as stamp duty, reports, insurance and interest payments.</li>
</ul>
The aim is to keep the above costs to a minimum so you will receive a higher profit margin. All this information can be kept in a spreadsheet, or there are software programs to help you with this process.
Below is a quick one-page analysis I do to determine if a development is going to be feasible. In this case the client is keeping the three properties we have created from one.
Purchase price three-bedroom house on 1,012 square metres of land: $210,000 Estimated set-up costs, stamp duty, legals, pest and building reports, survey: $8,500 Estimated renovation cost: $8,000 Build cost for a two-bedroom duplex (2 x villas) to be built behind existing house: $353,000 Contingency:  $20,000 Note: build costs includes all council, subdivision and other fees and charges. I always ask my builder to wrap all development costs into their contracts so my clients can maximise their lending.
Total development cost to create three properties from one in Hunter region of NSW:  $599,500 
Estimated end values:
Renovated three-bedroom house on 400 square metres:  $220,000
Two-bedroom villas $260,000 each:  $520,000
Total end values:  $740,000
Potential gross equity to be created: $140,500
Note: lending costs are not included at this stage:
 
Estimated rental returns:
Renovated house: $300 per week
Two-bedroom villas @ $280 per week each:  $560 per week
Total rental return: $860 per week or $44,720 per year
Gross yield on completion of development: 7.5%
 Gross rental yield: How it works One of the first calculations you will need to understand if you intend renting the properties on completion is the gross rental yield (GRY). To calculate the GRY you need the annual rent and the total cost of the development. If we use the above example:
Annual rent: $860 per week x 52 = $47,720pa Total development costs: $599,500 Gross yield: $47,720 divided by $44,720 =  7.5%
The yield on the above example of 7.5% is ideal at the moment, as anything over 7% is considered to be a strong yield.  Some of our developments are creating up to a 10% gross yield.
Once you have obtained the estimates for your development and the figures are looking good, you have some actual estimates to go back and speak to your lender about and ensure you can finance the project. There are various finance options so seek professional advice on the best one for your situation.  Then before you purchase, ensure you have discussed the best legal entity to be purchasing under for your individual circumstances with your accountant.
When your finance is preapproved, you can then start to negotiate the purchase. Always ensure you have a preapproval before making an offer so you can move quickly to exchange. This is a good negotiation tool.  Ask for a longer settlement and a lower deposit which will reduce your holding costs.
There are many more things to consider for your site selection, so it’s important you do your due diligence.  In the development game, time is money. So you will need to learn to assess a potential site very quickly. One way to fast track the analysis process is to engage other professionals to do this important work for you.  If it is your first development then work with an experienced project manager so you can learn from them as you progress through the complicated and challenging journey of your property development.  Enjoy the ride!
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom">Property Bloom</a>, which manages property development.
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How to determine if a site is feasible for development

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Today I’m using the occasion of International Women’s Day to reflect.  I thought about my role as a wife, mother, daughter and what I was doing to try and make a difference in my life and the lives of others.
There are two words that describe why I do what I do: financial freedom. This is behind my driving desires to build my investment property portfolio and also Property Bloom, my property development project management business.  Not just for myself, but for my family.  This drive has come from watching my parents in their retirement.  While they are living in a beautiful part of NSW and own their own home, they are on the old-age pension and really struggling to pay bills. There is no spare cash for a holiday or to reward themselves for working so hard all their lives, but they are still happy.
I want something different for my retirement, and I worked out 10 years ago after picking up the book Rich Dad, Poor Dad that unless I take full responsibility for my future and management of my own investments then I’d be in the same boat.
I also wanted to her other inspiring stories so I asked my female staff and clients what it meant to be financially independent.
Here’s Kylie’s story...I remember sitting down with my Nan many years ago and she was telling me how she had always had what she referred to as a “cunning kick”. Her cunning kick consisted of a couple of hundred dollars, which back then was a lot of money. She had it hidden in an envelope stashed at the back of the hall closet so no one, not even my Pop, could find it.
Later on in years, this amount grew to $1,000, then $2,000. She felt so confident that she had this safety net for her “just in case”. When we would visit, she would go to the envelope and give my sister and me $20, sometimes $50. It was obvious to us it made her feel good that she could do this for us.
Later on in life when they were on the pension, my Nan would go shopping and buy nice things for herself. She would come home and secretly change the price tags on clothes, jewellery or anything she had bought for herself, telling Pop she paid less than half the price she actually did pay for it.  My Pop never found out. Seeing my Nan in this situation, I soon realised I wanted something different.
Here’s Joanne’s story....Financial freedom means I have the choice to live where I want, somewhere that brings peace and joy to me just by waking up being surrounded in beauty.
I want to grow organic foods on my land to keep me healthy into old age. I want to have time to exercise and stretch.
I want to be able to travel if I want to both overseas and closer to home to experience more of the world and the people in it.
To really enjoy the beauty of nature by spending more time in it not rushing by it.
To have time to spend with family and friends, taking my niece and nephew on adventures.
Financial freedom is knowing that I can choose to work whenever I want to keep me stimulated and challenged and choose to not work when it is time to rest, meditate or play in the garden.
It is having the ability to say yes more often: "Yes I would love to go hang gliding!"
Financial freedom is being self-reliant empowered, in control of my own life and destiny.
Here’s Sandi’s story...
Financial freedom to me means a few things. Firstly it means that if anything ever happened to me or I ended up on my own, my family would be OK without me financially or I would be OK financially if on my own. That gives me piece of mind.
Then I suppose from a more selfish point of view, financial freedom would be to have our investments working for us: not us working for them. That’s the ideal position I’d like to get into. To have more time for the family and also importantly, for myself (I’ve learnt that this week from ending up with pneumonia from over-doing it!).
What is your plan to financial freedom?  Perhaps it’s a good question to ask yourself today, even if you are not a woman.
Jo Chivers is director of <a title="Property Bloom" target="_blank" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
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What financial freedom means for women

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Last week my senior project manager used an interesting story to illustrate an important lesson in patience when developing property. 
Rich is a country lad brought up on a farm in rural NZ – no, it wasn’t a sheep station. Lucky for me, he decided to “cross the ditch” and settle in Australia to make his fortune developing property in the Hunter region of NSW. He was working with one of my builders when I discovered his expertise. It was some time later that we ended up working together. 
Rich’s story message was simple: “Pushing too hard at the wrong time can cause problems rather than solutions.” 
The message came about while discussing how we could fast-track lodgement of a particular development application.  As project managers I knew we were doing all we could.  I also knew that the other people involver, our builder and engineering consultants, were too.  We wanted to illustrate this to our client.  And then Rich sat down with a steaming cuppa in his hand and spun me a yarn. 
I thought I’d share his tale with you because it really made sense, even to a city gal like me.  Hope you enjoy it as much as I did. 
Rich: “On the farm we never had a dog to chase the cows into the milking shed. But our neighbours did and they were always in a hurry to get the milking done for the day. One day I asked Dad, ‘Why don’t we have a dog to chase the cows like our neighbours?’ 
“He responded by saying,  ‘Son, when a dog chases cows, by the time they arrive at the milking shed, they’re all nervous and tense because that dog has been snapping at their heels, barking and generally causing them grief.  Because of this, those cows never milk for long and as a consequence, they don’t produce much milk.’ 
“What those stressed out cows did was to produce a lot of crap.  The cow manure mounted up quickly and ended up covering the shed while they stood waiting to be milked. 
“The neighbours with dogs always finished milking earlier than we did, but spent more time cleaning up their milking shed at the end.  They produced very little milk. 
“When it was all washed up and done, we always finished around the same time as the neighbours. Although our cows milked longer, we had less to clean up and we always produced a lot more milk.” 
Going back to our property development situation, the bottom line is if we do things properly and not rush the procurement stage of the process, the delivery and close out will move along smoothly and end up producing a better, more profitable, on-time result. 
My take out of Rich’s yarn:  There are times for snappy dogs, but use them sparingly and intelligently. 
Property Bloom understands the need for speed, as do our builders.  At the end of the day we all want to complete the project quickly.  But what we really want to ensure is a development that is delivered efficiently, on budget – and hopefully with very little crap to clean up at the end!
Jo Chivers is director of <a title="Property Bloom" target="_blank" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
 
 
 
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Don't try to force a property development

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Ever walked down the street and thought, ”Yes, I really like that house” or “Yikes! That house does nothing for me!”?
At the very first glance of a property we instantly form an impression.   It is human nature to judge a book by its cover.
You'll never get a second chance to make a great first impression. You may have heard that people will form an impression of you, your character, your personality — an impression that is nearly indelible — all within the first 60 seconds of meeting you.  But wait – recent reports say now it could take as little time as a blink of the eye!
It may take just a 10th of a second to form an impression of a stranger from their face, but objects are categorised as soon as they are perceived. That really leaves nothing to chance.
Try this: stand on the opposite side of the street from a property and turn your back to it, then turn around to face it for a few seconds and turn away again.  Anything that caught your eye in that time should be neutralised or removed.  Perhaps there was an over-grown bush, a bright coloured balustrade, a broken window awning. If you noticed anything that did not bring you a good feeling then the property hasn’t given you a good first impression.
While it’s pretty important to like a house if you are living in it, it’s equally important for your tenants to like where they live, too.  When developing property for our clients, we want a great first impression. When it comes down to it, we are creating a dream, for our client as investors but also for their tenants so they look after the property and stay a long time.
Once you find a development site, you should move quickly to the design phase. Ensure your design blends in well with the local surroundings.  Look at direct neighbouring properties and what materials they are made of and look at the best property in the street (based on the highest sale price) and see what it is made of.  While you should be conscious of not over-capitalising, you still want to stand out in the street so your development will be noticed.
Today there is so much choice when choosing exteriors for the new dwellings that there’s really no excuse to produce a boring front façade. Street presence is what house facades are all about.  It can be a little overwhelming to start with. Do you go with metal roofing or concrete tiles? Do you choose a face brick or go for the clean rendered look?  Should you combine weatherboard cladding with other materials? Obviously your budget may dictate some choices.
When looking at exterior colours for your project consider this:
<ul>
<li>The roof represents around 30% of the total look;</li>
<li>The walls are roughly 60%; and</li>
<li>The fascias and guttering represent about 10%</li>
</ul>
 The exterior of even a low budget development can be maximised. Here are a few suggestions to discuss with your architect:
<ul>
<li>Use a combination of finishes – perhaps some rendered walls combined with face brick or other elements such as lightweight cladding or stacked stone (depending on location and budget).</li>
<li>Another finish making a big comeback is external panelling. There are products we use that look like weatherboard but are actually a lightweight fibre cement panel – its low maintenance and rot resistant.</li>
<li>Use contrasting brick work – two different face bricks.  It won’t cost any more as long as both bricks are within the builder’s range.</li>
<li>The mathematical precision of brickwork can be emphasised by using a contrasting mortar to the brick colour, i.e. for dark brick, use a white mortar. Or using a light-coloured brick with flush mortar joint finish in a matching colour will give the impression of a large single-coloured area similar to a rendered surface. I call this the “poor man’s render look”.</li>
<li>Feature columns – we’re not talking Julius Caesar-style, but contrasting brick or bagged columns to the front can add some interest.</li>
<li>Bagging is a lighter form of rendering that isn’t straight with perfect angles. It allows for the slight imperfections to be seen but can look just as good on the right property and is much cheaper.</li>
<li>Timber inserts to gables – A gable is the triangle formed by a sloping roof.  Rather than just paint it, you can use timber, aluminium panels or even Colourbond cladding.</li>
</ul>
If you really do want to make a “statement”, remember the garden planting you put along your facade is another opportunity, and probably contributes just as much to the street impact. And the good news is, when you grow tired of a garden bed, it’s much easier to change about than the front of a home.
Jo Chivers is director of <a title="Property Bloom" target="_blank" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
 
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Streetside first impressions count in property

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If you are looking to become a property investor things are looking good for you right now. And, if you happen to be the grandmother of an investor in NSW, you could count your lucky stars. 
Interest rates are steady after dropping over the past few months, rental returns are climbing and it’s a great buyers market.  But wait, there’s more... there is a way you can increase your return dramatically. 
With the Affordable Rental Housing – State Environmental Planning Policy (SEPP) or granny flat initiative introduced by the NSW government in 2009, you can add a granny flat to your investment property and rent it separately, resulting in an increased yield and good depreciation benefits. You can also add a granny flat to your own home if you have a large enough block size. 
This strategy allows investors to dip their toe in property developing starting with a smaller project like the granny flat to build their property portfolio. 
The Sydney market can be expensive, which is what sent one me further afield to find a more affordable investment area. 
After purchasing a few investment properties in Sydney, I found that they were all negatively geared. I needed to find properties that would assist with cashflow not drain me.  My research took me to the Hunter region of NSW, and it’s there that I found the perfect fundamentals for an investment market. The local economies are booming thanks to the coal mining industries but also very diverse with wine growing, tourism, manufacturing, agriculture, horse breeding and retail all supporting strong employment.  Coupled with massive government spending on infrastructure projects and strong demand for rental properties, I thought I’d struck gold. 
Property Bloom now offers a granny flat service along with our other development strategies. We find properties suitable for a granny flat development, usually three-bedroom houses on large blocks, but not just any houses. They need to meet a long list of our criteria.  We manage all the fine details, including renovating the house and building the flat, creating a positively geared investment. 
Investors will benefit from casflow from the rent on two dwellings and also receive good depreciation benefits on the new flat.  This means people can keep moving forward with their investment strategy.  Unlike buying a single apartment in a capital city for instance, which is likely to be negatively geared, adding a granny flat to a property that already has an existing dwelling can result in a cash-flow positive situation. 
In the past granny flats were only permitted in certain residential zones, but this SEPP has opened up a whole new real estate door. The aim of the granny flat is to boost the supply of affordable rentals by providing housing for the elderly so families can support each other, as well as the younger generation who are living at home and are not in a position to move out just yet. 
Government projections show us that single-person households are likely to be the fastest-growing sector over the next 20 years, so demand is definitely there. 
Small secondary dwellings are an attractive option for singles and couples who don't need a lot of room and are the most likely people to be under rental stress. Young people are also staying at home longer, and granny flats can provide extra space for them and be a lifesaver for baby boomers who were hoping to empty their nests sometime soon. 
In the Hunter, we are finding properties for around $240,000 and with the addition of a two-bedroom granny flat, which we can build for around $95,000; it’s a really affordable investment for a total cost of around $350,000. These projects are creating a 9% to 10% gross rental yield, and like the northern beaches, the rental markets are extremely tight in the Hunter. This type of development suits someone starting out in developing or an investor looking to create a positively geared investment.
To take advantage of the NSW government’s Affordable Rental Housing - State Environmental Planning Policy (SEPP) the regulations include:
<ul>
<li>Granny flat must be no more than 60 square metres in size</li>
<li>Land must be more than 450 square metres</li>
<li>Can only be one house and one granny flat on the land</li>
<li>The land cannot be subdivided</li>
<li>You will need to comply with the LEP of your council (contact council re building requirements)</li>
<li>It must meet the requirements of the Building Code of Australia</li>
</ul>
For more information on the Affordable Housing SEPP <a href="https://www.planning.nsw.gov.au/plansforaction/pdf/Affordable%20Housing_Fact_Granny%20Flats.pdf">visit the government’s website.</a>
Jo Chivers is director of <a title="Property Bloom" target="_blank" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
 
 
 
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A granny flat is a good way to maximise your NSW 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>

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Jo Chivers

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