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Depreciation is basically a tax deduction available to property investors across Australia.
Depreciation allows you to claim a tax deduction for the wear and tear on an investment property over time.
This tax deduction recognises the fact that the building itself, as well as its plant and equipment will become worn out over time and eventually need to be replaced.
It doesn’t matter that these items were paid for by someone else – the developer or prior owner – as you, the current owner, can claim deductions as they continue to depreciate in value.
To learn more about depreciation, download our handy guide.
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jchancellor-FAypfDUnLy

Four property depreciation myths that investors need to know: Washington Brown 

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GUEST OBSERVER
The Reserve Bank has given the Australian financial system a tick of approval although it is not without highlighting some of the medium term risks.
Generally policymakers believe that business and household balance sheets are in good shape and the financial system is sound. No doubt a lift in activity in the upcoming festive season would give the central bank more comfort.  
When it comes to hot button issues, the central bank continues to monitor the housing market. In particular the stock of new apartments that are likely to add to supply across capital cities and the housing downturn in mining regions. In capital cities on the Eastern Seaboard, the amount of new apartments that will add to supply have the potential to depress prices. The downturn in mining towns has also resulted in a substantial pullback in property prices, resulting in “increasing financial stress among households, with non-performing loans rising, albeit from low levels”.
Commentary over the past couple of months suggests that while a low inflation profile is likely to be part of the medium-term landscape, the central bank is more reluctant to cut interest rates further. No doubt the question that is being debated is if rates are cut further, will it do anything to foster growth or just artificially inflate certain asset classes. Unfortunately there is not much more that the central bank can do to stimulate activity and that may be why the Reserve Bank has put the onus on the Government sector to also look at avenues to support growth.
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The latest fall in lending finance is concerning – especially given the result follows the May and August rate cuts. Not only have total borrowings across the economy fallen for four out of the past five months, but they are down on year ago. The results are not just a one-month phenomenon. However it is important to keep in mind that late last year lending did hit a 7- year high. So it is not dire straits by any means, but the next few months will be more telling. It may also be the election uncertainty added to the weaker picture earlier this year. 
In fact there are anecdotal signs of a lift in activity taking place over the past month. From a broader sense ultra-low interest rates have been part of the landscape for well over the past year and are providing support to consumer and business confidence. A lift in activity levels across the economy could be more telling in coming months – particularly in the lead up to Christmas.
 China isn’t seeing deflation of consumer prices, rather modest inflation. Where there has been deflation is in the business sector – producer prices. However even business inflation has now ended. In fact business inflation has posted its first annual increase in over 41⁄2-years. No doubt that has been influenced by higher mining and energy prices in the past couple of months, as is occurring elsewhere in the world. The ongoing deflation over the past couple of years reflected low capacity use in the factory sector. Encouragingly the shift to higher inflation (if sustained) is a positive from that perspective as well.
What do the figures show?
Lending Finance:
Total new lending commitments (housing, personal, commercial and lease finance) fell by 1.2 per cent in August, after rising by 4.8 per cent in July. Lending totalled $66.7 billion in August, down 3.4 per cent over the year.
All housing finance (owner occupier &amp; commercial) fell by 1.6 per cent in August – the second consecutive fall.
Commercial finance fell by 0.4 per cent in August, after rising by 10.3 per cent in July. Within commercial commitments, fixed lending fell by 0.3 per cent while revolving credit fell by 0.8 per cent. Commercial loans are down 2.9 per cent on a year ago.
Personal finance fell by 4.3 per cent in August, after a 3.3 per cent rise in June. Fixed lending commitments rose by 0.8 per cent, while revolving credit commitments fell 12.3 per cent. Personal loans are down 0.1 per cent on a year ago.
Lease finance rose by 2.6 per cent in August after falling by 8.5 per cent in July. Lease loans are down 17.2 per cent over the year.
Chinese inflation:
Consumer prices rose by 0.7 per cent in September to be up 1.9 per cent on the year, against expectations of a 1.6 per cent lift. Consumer prices had lifted 1.3 per cent in the year to August.
Non-food prices rose 0.4 per cent in September to be up 1.6 per cent over the year.  
Food prices rose by 1.7 per cent in September to be up 3.2 per cent over the year, up from the 1.3 per cent annual gain in August.
Producer prices rose by 0.1 per cent in the year to September, firmer than the 0.8 per cent decline to August and ahead of the market forecasts centred on a 0.3 per cent decline. It was the first annual rise in business inflation since January 2012 (41⁄2 years).
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Reserve Bank Financial Stability Review
On the economy, the RBA noted: “Overall, the Australian banking system remains in good shape after a number of years of strong profit growth and efforts to strengthen bank resilience.”
On residential property: “Risks around the projected large increases in supply in some inner-city apartment markets are coming to the fore, especially in Brisbane and Melbourne. There are signs that some settlements are taking longer and lending valuations are coming in below their contract price, though settlement failures to date remain low.” 
“In residential property development, the risks in some apartment markets are closer to materialising, as the foreshadowed large and geographically concentrated increase in supply approaches. These risks appear greatest in inner-city Brisbane and Melbourne, where the new supply is largest relative to the existing dwelling stock. Developers face the risk that off-the-plan sales of apartments in these areas fail to settle due to tighter lending standards for buyers (particularly non-residents or those relying on foreign income) and valuations at settlement below the contract price. To date, settlement failure rates have remained low, although in some cases settlement has been delayed because the buyer has had difficulty accessing finance”
Commercial property: “In office property markets, while yields in Australia and abroad have fallen in line with the global ‘search for yield’, weak conditions in Brisbane and Perth stand in contrast to the stronger performance in Sydney and Melbourne.”
Banking sector: “Banks have recently tightened their serviceability requirements further by restricting lending to borrowers relying on foreign income; this might weigh on demand in some inner-city apartment markets. They have also taken steps to mitigate the associated risks by tightening lending conditions for new property developments. This could also help forestall future oversupply in some inner-city areas.”
“Australian banks’ domestic asset performance deteriorated slightly over the first half of 2016, after several years of steady improvement” .” To date, the pick-up in the non-performing housing loans ratio has been almost entirely in ‘past-due’ rather than ‘impaired’ loans, suggesting that, at current prices, banks generally expect to recover the full amount of their loans”.
Housing sector: “Risks to the household sector overall have lessened a little further since the previous Review.”
Business sector: “Businesses generally remain in good financial health, with aggregate levels of gearing arouir historical averages and the earnings of listed corporations broadly in line with prior periods.”
Mining regions: “ in areas reliant on mining there are clear signs of increasing financial stress among households, with non-performing loans rising, albeit from low levels.”
LVR’s &amp; debt servicing: “ the tightening of lending standards in recent years has meant that the profile of this new lending is lower risk than it was a year or so ago. For both owner-occupier and investment lending, the share of loans at high loan-to-valuation ratios (LVRs; those greater than 90 per cent) is now around its lowest level since the series began in 2008.”
“Households’ debt-servicing ability remains well supported by the very low level of mortgage interest rates. Households are also less leveraged than in 2012, when debt-to-asset ratios peaked”.
Banks &amp; developers: “ (bank) lending to developers is generally well secured and, as yet, the additional costs to developers associated with settlement difficulties have not resulted in losses to the banks.”.”
Property prices: “ any (residential) oversupply in Australia would be more localised to certain geographic areas, and potential price falls tempered as the population moved to absorb the new (and cheaper) supply of housing in these areas over time.”
What is the importance of the economic data?
Lending Finance is released monthly by the Bureau of Statistics and contains figures on new housing, personal, commercial and lease finance commitments. The importance of the data lies in what it reveals about the appropriateness of interest rate settings, confidence and spending levels in the economy.
China’s National Bureau of Statistics releases its monthly economic statistics around mid-month. Quarterly GDP data is released around the 19th of January, April, July and October. China’s Customs Office releases trade data, and the People’s Bank of China releases financial statistics, around the 10th of each month. China is Australia’s largest trading partner and changes in the Chinese economic have major implications for the Aussie economy.
The Financial Stability Review is published by the Reserve Bank every six months. The report is basically a health check on the financial sector but it also assesses the state of household and business balance sheets.
What are the implications for interest rates and investors?
The Reserve Bank has identified a couple of housing-related risks that it is watching closely. Banks remain well positioned to deal with any risks that may manifest into problems.
The bottom line is that Chinese inflation is not an issue but deflation is less of an influence as well. Chinese authorities still retain plenty of scope to ease monetary policy if that was considered useful to support economic growth.
Next Wednesday the key activity indicators are released in China – Economic growth, retail sales, production and investment. 
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Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a> 
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RBA weighs housing risks, Chinese prices lift: CommSec's Savanth Sebastian

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Veteran agent Kingsley Yates has departed the Ray White group ending a three decade long franchise association.
He has set up an independent agency named, Province.
His departure is the most dramatic sign that the future of franchise is set for turbulent times given lowered agent commissions along with the market listings contraction while all the time lumbered with geographic boundary restrictions of the franchisor. 
On his exit from the Ray White Lower North Shore, <a href="https://www.realestate.com.au/agent/kingsley-yates-33961" target="_blank">Kingsley Yates</a> had three property listings on realestate.com.au. The entire agency had 19 offerings on realestate.com.au in its franchise district covering an area stretching from Chatswood to Beauty Point.
Yates will launch the new agency with a Mosman listing of car dealer John Newell, inconjunction with LJ Hooker.
He headed three offices located at Mosman, Neutral Bay and Crows Nest. It is understood Ray White head office was keen during the renewal negotiations for wider penetration - and are likely to set up more offices across the lower North Shore as an outcome of Yates' departure.
Ray White Lower North Shore was the largest North Shore agency in the Ray White Group, with a team of 60 who have made the switch.
"The partnership with Ray White Lower North Shore has been a long and fruitful one for all parties, but at this point, due to our differing ambitions going forward we have mutually agreed to part ways," Dan White advised.
While at Ray White, the agency boasted offering continuous training to its team to ensure a high level of professionalism.
The Ray White Lower North Shore team was headed by Kingsley Yates, Shane Slater, Peter Matthews and Danny Grant who have a combined total of more than 70 years real estate experience.
For nine consecutive years Kingsley Yates was the number 1 Selling Principal Australasia wide in the Ray White group.
While not as active in recent years, Kingsley Yates, now in his mid-60s, had also been been named Ray White’s Top International Selling Principal over many years, selected from a network of more than 1000 offices, acknowledging him as one of Australia’s premier real estate salespeople. 
These days its is the Surfers Paradise agent, Sam Guo was named recent as Ray White's top sales performer who, additionally, was Ray White’s number one residential sales performer internationally.
The group revealed its September sales figures were down on last September, but up on August.
The $3.8 billion month was "a little bit behind September 2015," co-chair Brian White noted when around $3.8 million was secured.
In September the Ray White Group across Australia and New Zealand listed just under 5,000 properties for sale - which they estimated was more than twice of any of its competitors.
<a href="https://www.propertyobserver.com.au/images/2016/10/14/Screen%20Shot%202016-10-14%20at%2010.03.50%20AM.png" target="_blank">Click to enlarge</a>
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NSW achieved $1.2 billion with Ray White Double Bay just missing a $100 million month.
 
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Kingsley Yates departs Ray White franchise network

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Stockbroker Bell Potter suggest the next few weeks are key to the profit for McGrath Estate Agents.
It has advised in an update to clients that the real estate market has yet to see a meaningful rebound in auction volumes.
"The positive is that there has been a rising trend in volumes over the last couple of months and clearance rates have been consistently strong between 70-80 percent," analyst Chris Savage said.
"But the negative is that volumes are still below (in some cases well below) what they were a year ago and we are now almost in the middle of spring.
"The next several weeks are obviously key for how the 1HFY17 result will look for McGrath," the latest update advised.
He said each week we get data on auction volumes and clearance rates for each capital city in Australia and the key focus in the case of McGrath is obviously Sydney. 
"It has been well publicised that, after reasonably strong volumes and clearance rates in Sydney in 1HFY16, volumes then fell away materially in 2HFY16 which caused McGrath to downgrade its FY16 prospectus forecasts.
"The key focus now obviously is what happens to volumes and, to a lesser extent, clearance rates in Sydney in 1HFY17 and whether there is a rebound or not. 
"Spring is a key period for auctions so right now is when we would expect to see a rebound in volumes if there is going to be one."
The report came with an updated chart for auction volumes and clearance rates in Sydney up until last weekend.  
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"The key take-out of the chart is that we have really yet to see a meaningful rebound in volumes this half," it concluded.  
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Crucial spring weeks ahead for McGrath profit

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A Central Coast horse stud farm is set to become a home retirees after selling for $12 million through McGrath Terrigal agent Mat Steinwede. 
Bangaloe Stud is a 24ha property between the suburban neighbourhoods of Avoca Beach and Kincumber.
Living Choice bought the sprawling Kincumber acreage from Danny Bourke.
It anticipates making the property at <a href="https://www.realestate.com.au/property/253-avoca-dr-kincumber-nsw-2251">253 Avoca Drive</a> into a unique coast-meets-country retirement village.
Bangaloe Stud owner Danny Bourke took on the property almost three decades ago. 
Living Choice NSW Central Coast general manager, Tim Bentley, told News Ltd that the company planned to include a retirement village and an aged care facility in their development application.
It will be Living Choice’s fourth retirement village on the Coast behind established facilities in Davistown, Woy Woy and across the road in Kincumber.
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Central Coast horse stud bought for retirement village

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The former butchery property on the corner of Gilpin Street and St Marys Lane, Camperdown sold last weekend at $2.6 million.
It started life back at the turn of the last century as a butchery with an attached residence.
It operated until the 1950s when it then fell into disrepair.
The old butcher’s shop at 38 Gilpin Street, Camperdown, has been transformed into a flexible, contemporary living space displaying a contemporary design with industrial elements.
The property has exposed steel framing, polished concrete floors, high bay light fittings and a single stringer, open tread, checker-plate steel staircase rising to the second floor.
There are two living rooms divided by an EcoSmart fireplace and twin doorways. 
Old bricks from the original structure have been used to make garden beds on the 220 sq m block.
The pre-auction price guidance had been $2.7 million to $2.8 million.
It last traded for $579,000 in 2007.
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Former Camperdown butchery sold

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GUEST OBSERVER
Australian Treasurer Scott Morrison recently suggested the Reserve Bank of Australia (RBA) avoid cutting interest rates below the current 1.5 percent.
The Turnbull government’s “fiscal consolidation”, he said, was more important for stimulating the economy.
This is big talk, and to be anything close to credible it needs to be backed up by big policies.
Morrison is not alone among politicians wading into the current debate on interest rates. Republican presidential nominee Donald Trump has said US Federal Reserve Chair Janet Yellen “should feel ashamed” for keeping rates so low. US President Barack Obama and UK Prime Minister Theresa May have been more lucid, taking greater care to understand the tradeoffs that central banks face.
Debate is certainly warranted. Negative interest rates were widely considered “impossible” just a decade ago, yet today they are the norm for OECD countries. If they are here to stay then serious reforms will be necessary to keep capitalism working.
Australia, so far, remains an outlier. The RBA’s rate of 1.5 percent may be a record low on our shores, but it is enviably high compared to most of the OECD. 
But as Australia faces the end of the mining boom, the end of a housing boom, and the end of car manufacturing and gas-intensive manufacturing, downward pressure on growth and interest rates is building.
To counter this, Morrison must offer a credible way of avoiding further cuts in Australia.
<h2>Excess savings</h2>
Interest rates are low across the OECD due to excess savings. This is the same problem that caused prolonged unemployment during the Great Depression.
Imagine the world spontaneously decided to save 10% more of its income in 2017. As the year progressed, demand for goods and services would collapse. Businesses would find their warehouses packed with unsold goods and their staff under-utilised. They would be forced to lay off workers and halt production. Spooked investors would be unwilling to expand businesses, build housing, or invest in production. Asset prices would collapse, many debts would become unpayable, and the resulting financial crisis would further cut into employment.
In turn, high unemployment would feed back to further reduce demand. The negative feedback between employment and demand would send the economy into a downward spiral. During the Great Depression, US industrial output shrank by an astounding 50% and unemployment reached 25%.
What sends savings higher in the first place?
Both the Great Depression and Great Financial Crisis were triggered by asset bubbles. When the bubbles burst, savings increased rapidly while investment plummeted, due to negative expectations (which increase savings for the coming hard times), financial instability (which leads people and companies to hold on to their money rather than lend it to potentially insolvent others), and high levels of debt (which increase savings to pay down debt).
Interest rates are so important in this story because they affect the rate of savings and investment – they reward savers and cost investors.
Higher interest rates increase the incentive to save and reduce the incentive to invest. They will tend to cool the economy. Lower interest reduce the incentive to save and increase the incentive to invest, and tend to heat the economy up. 
The role of central banks is to set monetary policy to what is termed the “neutral” rate of interest. This is the rate that keeps the economy running at its full potential, by balancing intentions to save and intentions to invest – so that neither is in excess. 
For this reason, central banks do not reduce rates “on purpose”, but follow the underlying neutral rate by using (roughly) the following formula: 
<ul>
<li>If unemployment is high and inflation is below target (usually around 2-3%), then there is spare capacity in the economy. Interest rates are above the neutral rate and should be lowered to heat things up. </li>
<li>If unemployment is low and inflation is above target, then the economy is likely overheating. Interest rates are below the neutral rate and should be raised before inflation gets out of control. </li>
</ul>
Extremely low interest rates at OECD central banks are a symptom of current economic conditions, where too many people are saving and not enough people are consuming or investing. 
<h2>Why is the “neutral” interest rate so low today?</h2>
The global neutral interest rate has actually been trending steadily downward since the 1980s. This is unprecedented in the history of capitalism, and its importance cannot be overstated.
Bank of England researchers identify several reasons behind this trend, each of which either increases intentions to save or reduces intentions to invest: 
<ul>
<li>growing inequality, which increases savings because the rich save more of their income</li>
<li>an ageing population living longer, which increases lifecycle savings for retirement</li>
<li>the growth of emerging markets, predominantly China, which have very high levels of savings</li>
<li>the lower cost of capital goods, which reduces the capital outlay needed for the same investment</li>
<li>reduced population growth, slowed productivity growth, and reduced public investment, each of which cut demand for new investment.</li>
</ul>
Together these trends towards excess saving have reduced the neutral rate by around 4 percent since 1980. 
Importantly, we can be confident that most of these changes are here to stay. Low interest rates appear to be the new normal for advanced capitalist societies. 
<h2>Can our government policies credibly keep interest rates higher?</h2>
Treasurer Morrison acknowledges that rate cuts are a “matter for the RBA”, and that his comments will have little influence on its decision making. 
To actually influence the path of RBA interest rates, the Turnbull government must take actions that place substantially more of the load in boosting demand on fiscal policy (government spending). Given increasing government spending will further increase an already problematic budget deficit, such policies are only justifiable where their long-term benefits outweigh their immediate costs. 
The Turnbull government’s policy in this area rests heavily on the proposed company tax cut of A$48 billion over the next ten years. Ordinarily such a tax cut might increase investment. But investment in the OECD has been disappointingly unresponsive to the kind of small change in profitability that the company tax cut will bring. 
In the US, for example, investment remains low even while corporate profits are around record highs. Instead of investing, businesses are hoarding trillions of dollars in profits. This pattern is highly suggestive of monopoly-like rents being pervasive among larger corporations, in which case company tax cuts will only increase savings. 
The pro-investment signal businesses really need is greater consumer demand for goods and services. Yet to fund company tax cuts, the Turnbull government is cutting back on the most effective of demand-boosting fiscal policies: welfare programs. Poorer individuals live closer to subsistence, so tend to spend most of the additional income they receive. Taking money from welfare and sending it to corporations risks increasing corporate saving while reducing consumer demand – the exact opposite of what is needed. 
Given the cost to the ailing budget of A$48 billion, the proposed tax cuts are a waste of the Australian government’s minimal fiscal headroom. It is fortunate they will soon be blocked in the Senate.
Scott Morrison’s comments show some understanding of the challenges presented by the new low-rate era. The policies he promotes do not. 
While Australia faces its greatest economic challenges in a generation, it seems we are still waiting for the greatest economic reformers in a generation to arrive.
Reuben Finighan is senior research officer at The Melbourne Institute and Fellow of the ARC Life Course Centre of Excellence, University of Melbourne and auhtor for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/reuben-finighan-157147" target="_blank">here</a>.
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Can Australia stop interest rates from approaching zero? Only with a big shift in policy

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GUEST OBSERVER
Energy efficiency is a concern for many strata schemes that we talk to with several schemes recently upgrading their common property to capitalise on new technology and the ability to save money.
This is becoming increasingly important with energy costs rising and councils signing up to carbon emission reduction programs.
For instance the City of Sydney has a Sustainable Sydney 2030 target of 70 percent carbon emission reduction.
An interesting report for the City of Sydney by Wattblock details research on schemes in the City of Sydney and provides ideas of how energy efficiency can be achieved in existing residential buildings by retrofitting existing solutions.
The report can be found <a href="https://www.wattblock.com.au/how-it-works" target="_blank">here</a>
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Christopher Kerin is Sydney Director, Kerin Benson Lawyers and can be contacted <a href="https://kerinbensonlawyers.com.au" target="_blank">here</a>.
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Property 101: Energy efficiency and strata schemes

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The SMSF Association has produced compelling evidence that the Federal Government should increase the concessional contribution cap for people aged 50 and over and extend the carry forward of concessional contributions.
Research undertaken for the organisation by the actuarial consultancy firm Rice Warner “conclusively shows” that people only begin making significant voluntary contributions to superannuation from their mid-50s onwards.
The research confirms what the Association has long been telling policy makers: that there is a sharp difference between compulsory and voluntary contributions to superannuation – the former increase gradually over time while the latter jump dramatically in the years leading to retirement.
The Rice Warner research used a sample of 14,351 SMSF members provided to the Association by BGL, a leading SMSF software provider.
This research graphically shows why people aged 50 and over need to have a more generous contribution cap than the $25,000 that will apply from 1 July 2017.
The Association has argued for the Government to retain the current $35,000 cap for older workers and notes that even a compromise of a $30,000 cap for those over 50 years will still benefit fund members trying to save their superannuation savings to achieve a dignified retirement.
The research highlights the significant impact that voluntary contributions can have on a fund member’s superannuation balance.
The research also highlights that if the carry forward concessional contribution limit was increased from a balance of $500,000 to $750,000 it would benefit 13% of the members in the sample, of which half would be female. This measure alone would go a long way towards building adequacy for women.
The Association believes that this change would increase the effectiveness of the Government’s carry forward policy and deliver better results for people who have had volatile incomes throughout their careers and are trying to build adequate retirement savings.
These important policy changes will allow a greater opportunity for people to achieve a secure and dignified retirement by building their retirement savings.
It’s also significant that women’s contribution patterns show that when they are in the workforce they are engaged with their superannuation in an SMSF, and this particularly applies when they are in the 60-plus age group.
Rice Warner CEO Michael Rice said the underlying focus of the research was to measure the impact of recently proposed legislative changes to tax treatment in superannuation on SMSF members and potential refinements.
The three most significant of those proposed legislative changes were: the introduction of a $1.6 million cap on the amount that can be transferred from accumulation accounts to pension accounts, the reduction of the concessional contribution cap to $25,000 from $35,000 and the introduction of a $100,000 yearly non-concessional contributions cap (restricted to those with balances under $500,000).
The research shows that the proposed changes will have a material impact on the SMSF population and will restrict members’ ability to save in superannuation.” 
Andrea Slattery is managing director and chief executive officer of the SMSF Association and can be contacted <a href="https://www.smsfassociation.com" target="_blank">here</a>.
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Research shows ‘strong argument’ to lift concessional cap

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GUEST OBSERVER
I imagine if you are taking the time to read what I have to share with you, that you want more from life. To have more in our modern first world economy, it really helps to have money.
People who have more money, tend to focus on a few key factors towards generating wealth. They know that making money is not a sometime thing – it’s an every day journey that can take many years. There are few shortcuts, even for those who are lucky enough to win the lottery. Studies show that many of the winners have little or nothing to show after five years of winning their money. That is because they never learned about money and on which key factors tofocus upon.
There is no time limit on these factors – you can share them with school aged children or commence after you have retired from a lifetime of work. They will work just as well. They will however only work as well as you work them.
You are likely to have heard seen or even tried some or all of them before and may be tempted to dismiss the power of these factors when combined in to a single-minded focus point. They could be a timely reminder for you. And something else for you to consider – thesearen’t my points – they are distilled from lessons taken from some of the richest and most successful people on the planet.
So here they are.
1.     Set goals and visualize achieving them
If you want to make more money, you have to have a clear goal and then a specific plan for how to achieve that goal. Money won’t just appear – you have to work at it. If you have never set a goal before, Google “goalsetting” and find out how to do it.
Rich people choose to commit to attaining wealth. It takes focus, courage, knowledge, and a lot of effort. The main reason most people don’t get what they want is that they don’t know what they want. Rich people are totally clear that they want wealth.
2.     Invest in yourself
Probably the safest and best investment you can make is in your own future. Read at least 30 minutes a day, listen to relevant podcasts while driving and seek out mentors vigorously. You don’t need to be a master in your field, just well-rounded and knowledgeable – able to talk about any relevant subject whether it is financial or otherwise. Consume knowledge like air and put your pursuit of learning above all else. It is said that Warren Buffet spends 80% of his day reading – there’s a clue.
3.     Increase your income
Since it is incredibly difficult to save your way to being a millionaire, the logical thing to do is increase what you are earning now so that you have extra money to put aside. Studies have shown that the wealthyhave multiple streams of income – the most effective is usually three. This could be your day job, a part-time business, a business in which you have full or part-ownership, cash at bank earning interest, share dividends, real estate rental or capital profits from investments.
4.     Save to invest
The only reason to save money is to invest it. Your saved money needs to go into secured, sacred (untouchable) accounts. Never use theseaccounts for anything, not even an emergency. This will force you tocontinue to follow step three (increase income). When you have enough to make an investment, do so and then work to refill that investment account.
The key to consistently setting aside money is to make it automatic. You can start by having your bank account automatically shift a percentage of your income in to a separate untouchable savings account. That way, you’ll never even see the money you’re contributing and you’ll learn to live without it.
5.     Delay gratification
It is vitally important to control your expenditure while you are building your wealth. You might want to spend $20,000 on a holiday or $100,000 on a new car, maybe even a $5,000 suit or $2,000 pair of sunglasses or shoes. And these are all good things to have and do. But not before you have made it and have the kind of wealth and income that make the purchase of these things readily possible. The people who don’t succeed financially are those who have to have it all now. Imagine what you could do with the cash you would spend on thesethings – you could invest in a property or shares that might double in value in 5-10 years and throw off enough income to pay for the luxury things you want. And you would still have the asset.
Warren Buffet lives in the same home he always had and drives a modest ute that he loves. He invested his savings in to solid assets for the long term. Sometimes I wonder why he doesn’t spend some of his wealth on the fun things in life, but I guess he must have made theseconscious choices.
6.     Surround yourself with successful people
There is a long held school of thought that you become like those you associate with and tend to have a similar income to the average of that group of people. So if you want to increase your wealth and income, find others who are already doing that.
Andrew Carnegie has described this principle as the “Mastermind Group.” The idea is to surround yourself with talented people who share your vision, because the alignment of several smart and creative minds is exponentially more powerful than just one.
7.     Aim higher
I wrote my first book – “It’s Easy to Be a Property Millionaire” in 2001, when a millionaire really meant that you had sufficient wealth togenerate a high quality of living and you could choose to work or live your days out in pursuit of things you loves to do and people you wanted to be with. These days that same sum, while not insignificant, just won’t cut it any more. I think you need to aim for $2M or more – since $2M net worth – outside your family home, could reasonably provide you an income of about $100k per year, which is sufficient toprovide a reasonable standard of living.
Of course I encourage you to aim much higher, if that is your choice – it’s up to you.
What you do with these focus points is of course up to you.
But now that I have put them in front of you (again?) what will you do?
Craig Turnbull is an author, property developer and real estate investor. He can be contacted <a href="https://www.craigturnbull.com/" target="_blank">here</a>.
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Want to be wealthy? Focus on these 7 things

Developer <a href="https://www.apartments.com.au/developers/bottega-property-group">Bottega House</a> has secured council approval for its first Brisbane project - a $270 million luxury residential development on an absolute riverfront site in leafy St Lucia.&nbsp;

The 15-storey project, known as <a href="https://www.apartments.com.au/new-apartments/st-lucia-by-bottega-house-180-macquarie-street-st-lucia-qld-4067">St Lucia by Bottega House</a> , will occupy a prime north-facing site at 178-180 Macquarie Street, directly fronting the Brisbane River in the established inner-west suburb known for its rowing clubs, golf courses and sprawling University of Queensland campus.&nbsp;

St Lucia by Bottega House will feature a suite of amenities including dedicated wellness spaces, a mineral pool and cold plunge. The project has been positioned to attract affluent owner-occupiers seeking high-quality, house-sized apartments.&nbsp;

Bottega House has been set up by co-directors Nick Malloch, Louis Mennes and Craig Marsh.

Malloch said the project drew inspiration from its Brisbane River setting and leafy inner-west surrounds, while responding to the demands of discerning locals looking to transition from freestanding homes into apartment living.&nbsp;

"With an expansive river frontage and lush green surrounds, we knew we had to create something special that reflects the natural beauty of the location while offering residents masterfully crafted homes," said Malloch.&nbsp;

"Our intent was to complement the project's quiet, private setting by introducing residences that offer a calm retreat and sanctuary from the everyday. The result is a harmonious blend of architecture, interiors and amenity that emphasises wellbeing, comfort and beauty without excess."&nbsp;

Malloch added that project consultants had been carefully selected in alignment with Bottega House's commitment to care, quality and attention to detail. The design team includes architects <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, interiors practice <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and landscaping by <a href="https://www.apartments.com.au/architects/urbis">Urbis</a>.&nbsp;

Three-bedroom apartments are expected to start around $5 millio. Selling agents Keenan &amp; Byrne said the pricing strategy for the project was anticipated to achieve upwards of $25,500 per square metre.&nbsp;

The project's development approval this week follows the success of Bottega House's inaugural Queensland project - a 22-storey collection of full-floor sky homes at Broadbeach on the Gold Coast which included the sale of a two-storey penthouse at a record price for a beachside residence.&nbsp;

St Lucia by Bottega House is expected to launch to market in November, with construction anticipated to be completed mid 2029.

[smartcode_project_cta:default project_id=151826]

Joel Robinson

Bottega House to make Brisbane debut with St Lucia riverfront apartment development

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> is advancing its affordable apartment model into Brisbane with the acquisition of another site at Cordelia Street in South Brisbane for $27 million.

Sherpa, which has a $1.7 billion pipeline across Southeast Queensland, intends to bring a cohort of apartments exclusively for first homebuyers into its proposed 186-apartment project to be built at 2 Cordelia Street.

The Sherpa model has already been incredibly well received from their Gold Coast projects, where Sherpa Group set aside a number of apartments exclusively for first homebuyers.

The new $320 million project marks Sherpa Group's second development in Brisbane, following its $255 million Symphony project, also on Cordelia Street, which is currently under construction.

Symphony will deliver 146 apartments across 28 levels, offering a mix of one, two and three-bedroom apartments. With 114 already sold, construction by <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> is scheduled for completion in 2028.

[smartcode_project:default project_id=7574 project_image_fid=351654]

Sherpa Founder, Christie Leet, said the company was excited to be venturing into Brisbane for its second residential project.

“We’re big believers in the future of Brisbane as we lead into the 2032 Olympics and beyond,” Leet said.

“The success of Symphony has guided us into what will be our second project and we look forward to submitting our plans with council soon so we can deliver yet another quality project to the inner city residential market.

“Our Flourish model has been very well received both in Brisbane and the Gold Coast, and we’re excited to be able to offer some of these apartments again exclusively to first homebuyers to help get them into the property market.

“The model has been extraordinarily well received in our previous projects and it is something we are committed to moving forward.”

2 Cordelia Street will be designed by <a href="https://www.apartments.com.au/architects/hal-architects">HAL Architects</a> &amp; Finegrain and will include Sherpa’s signature residential amenities including pool, gym, recreation, wellness and work from home spaces.

The project will feature ground-floor commercial space, creating a vibrant amenity for residents and the surrounding community.

A development application will be lodged with Brisbane City Council in August on the code compliant site and will be launched to the market early 2027.

Sherpa acquires new site for second Brisbane apartment tower

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Jonathan Chancellor

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