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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

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Joel Robinson

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Investors may soon find themselves with fewer reasons to buy established property and more incentives to look towards the new apartment market.

Proposed changes to negative gearing and capital gains tax concessions would see new and off-the-plan apartments retain access to the tax benefits, while established properties would miss out, creating a clear advantage for buyers purchasing newly built housing.

The policy direction aligns with what many developers have been saying for several years. Australia needs more housing supply, and governments are increasingly looking for ways to encourage investment into new stock rather than existing homes.

The challenge for investors is that suitable product is becoming harder to find.

For much of the last decade, one-bedroom apartments were the cornerstone of investor demand. They offered a lower entry price, strong rental appeal, and were a common feature across most apartment developments.

Today, the development pipeline looks very different.

Across both New South Wales and South East Queensland, developers are increasingly targeting owner-occupiers and downsizers, delivering larger two, three and four-bedroom apartments in response to changing buyer preferences. While one-bedroom apartments still exist, they now form a much smaller portion of many new projects.

That shift has created a shortage of investor-friendly stock, particularly in well-located projects close to transport, employment hubs and lifestyle amenity.

At the same time, rising apartment prices have pushed many new developments beyond the reach of traditional investors. On the Gold Coast and across South East Queensland, it's becoming increasingly difficult to find new apartments priced around the $1 million mark, particularly those offering strong rental fundamentals and long-term growth prospects.

We've rounded up four new apartment developments where investors can still secure a foothold in the market for around $1 million or less.

<h2 data-end="1140" data-start="844">Flourish Soleira</h2>

<h2>Priced from: $1.07 million</h2>

Popular Palm Beach developer Sherpa is soon to officially launch its newest local apartment development, Flourish Soleira.

The one-bedroom apartments in the building were only offered to first home buyers rather than investors, and all of those have been snapped up. The two-bedroom apartments will start from $1.07 million, and the three-bedrooms, still a good investment given the popularity of Palm Beach for owner-occupiers, starting at $2,045,000.

&nbsp;

[smartcode_project:default project_id=150017 project_image_fid=370964]

Flourish Soliera will comprise 153 apartments across two buildings, connected by a skybridge, the first ever delivered in the suburb.

True to Sherpa's booming Flourish brand of apartment projects, Flourish Soleira will have extensive rooftop amenity across both buildings including a&nbsp;wellness centre with gym, work from home, yoga, pilates, a&nbsp;heated pool, private dining rooms, pizza oven and barbecues, basketball court, and golf simulator.

<h2>Corallo, Palm Beach</h2>

Priced from: $841,500

Nearby Flourish Soleira is Changfa Group's beachfront-inspired Corallo development. They still have some one-bedroom apartments remaining, priced from $841,500.

The 105-apartment project on Palm Beach Avenue is otherwise dominated by larger two and three-bedroom residences, many of which are aimed at owner-occupiers and downsizers.

[smartcode_project:default project_id=112194 project_image_fid=808]

For investors, the appeal lies in Palm Beach's continued transformation from a laid-back beachside suburb into one of the Gold Coast's most sought-after residential markets. Residents at Corallo will be within walking distance of Palm Beach's surf beaches, the recreational amenity of Tallebudgera Creek, and the increasingly popular collection of cafes, restaurants and boutique retailers along the suburb's central dining precinct.

<h2>Corner House, Stones Corner</h2>

<h2>Priced from: $880,000</h2>

One of only two Brisbane apartment developments to make the list with prices under $1 million is DeMartini Fletcher's Corner House development in Stones Corner.

One-bedroom apartments start from $880,000 within the 88-apartment development, providing investors with exposure to one of Brisbane's most established inner-south locations.

[smartcode_project:default project_id=149098 project_image_fid=330594]

Stones Corner has long been supported by strong tenant demand due to its proximity to major employment and education destinations. The suburb sits less than five kilometres from Brisbane's CBD and is within easy reach of the Princess Alexandra Hospital, Greenslopes Private Hospital, Queensland Children's Hospital and several university campuses.

The project's location within a walkable urban village environment, surrounded by retail, dining and public transport infrastructure, continues to attract both professionals and healthcare workers seeking accommodation close to work.

Parkdrive Apartments, Chermside

Priced from: $749,000

The most affordable apartments across Brisbane's new and off the plan market are in Chermside where developer AusDev is selling one-bedroom apartments from $749,000, and two-beds from $929,000, at its recently launched Parkdrive development.

The development is strategically positioned in one of Brisbane's largest employment and retail precincts, placing residents within easy walking distance of Westfield Chermside, The Prince Charles Hospital, St Vincent's Private Hospital Northside and the suburb's major bus interchange.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Already under construction and scheduled for completion in early 2028, Parkdrive benefits from Chermside's ongoing evolution into Brisbane's northern metropolitan centre. The suburb continues to attract significant public and private investment, supporting population growth and underpinning long-term rental demand.

For investors focused on yield and tenant depth, the combination of healthcare, retail and transport infrastructure within close proximity provides a strong foundation for occupancy and rental performance.

Investors to turn to new apartments after Federal Government changes spark hunt for Queensland's best $1 million apartments

A mix of Gold Coast locals, fly-in, fly-out purchasers from Sydney and Melbourne, and Brisbane-based families has driven early sales success at Broadbeach's newest apartment tower, Lumara.

The 26-level project, a joint venture between builder-developer 5Point Projects and Bourke Projects, comprises just 37 luxury residences and is attracting a buyer profile that is looking for exclusivity, above the most amenity-rich suburb on the Gold Coast.

[smartcode_project:default project_id=150454 project_image_fid=364156]

Jamie Bourke, Director of Bourke Projects, says every buyer secured so far intends to use Lumara as a lock-up-and-leave residence, combining holiday use with the ability to work remotely when required.

“The size of the apartments, both half- and full-floor options, and the different zones within the floorplans, lends itself perfectly to dedicated home office setups and multi-generational family holidays,” Bourke says.

That flexibility has become a key drawcard for affluent buyers seeking a second residence on the Gold Coast without sacrificing the ability to conduct business away from their primary home base.

The absence of holiday letting within the building has also resonated strongly with purchasers.

“This type of buyer doesn't need to generate holiday rental income,” Bourke says. “They're paying for exclusivity, privacy and certainty around who their neighbours are.”

[smartcode_project:default project_id=150454 project_image_fid=366491]

The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.

“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.

“A lot of those buyers are looking to place more capital into premium lifestyle assets rather than investment-grade stock that has been targeted by the Federal Government.”

[smartcode_project:default project_id=150454 project_image_fid=366486]

Designed by Cottee Parker, Lumara adopts a slender, sculpted form with an emphasis on natural materials suited to its beachfront setting. The architectural approach draws on coastal influences, with a palette of stone, timber and concrete selected for durability and the ability to weather over time.

Apartments are limited to three and four-bedroom configurations, with a maximum of two residences per floor through the mid-levels and a selection of full-floor and dual-level homes in the upper levels. All apartments are oriented to the north to maximise natural light, cross-ventilation and views across the ocean, city skyline and hinterland.

A two-level amenity offering is positioned high within the building on levels 20 and 21, conceived as a sky wellness retreat. Facilities include a magnesium pool, spa, sauna and steam rooms, alongside more social spaces such as a private dining room, resident lounge, workspaces and outdoor barbecue areas integrated with landscaped greenery.

The uppermost levels are reserved for larger-format residences, including several full-floor homes and a dual-level penthouse with its own private wellness features and recreational spaces.

&nbsp;

To give buyers confidence, 5Point and Bourke commenced construction ahead of the apartments launching to the market, a sure-fire way to prove they mean business, and the building will be delivered. They are targeting a 2028 completion date.

[smartcode_project_cta:default project_id=150454]

Locals, interstate holiday makers, drive early sales at Lumara, Broadbeach's newest luxury apartment tower

Often when it comes to purchasing property, the biggest barrier to entry is the deposit. Buyers of established homes typically aim for a 20 per cent deposit to avoid the added cost of Lenders Mortgage Insurance, while most property transactions require around a 10 per cent deposit when contracts are exchanged.

The off-the-plan market works differently, with buyers typically paying a deposit during construction and settling the balance upon completion. As completion approaches at <a href="https://www.apartments.com.au/new-apartments/fabbrica-fitzroy-369-gore-street-fitzroy-vic-3065">Fabbrica Fitzroy</a>, developer <a href="https://www.apartments.com.au/developers/pace-development-group">Pace</a> is making it easier for buyers to secure a residence through a deposit-matching incentive. Purchasers need only contribute a five per cent deposit*, with Pace matching the remaining five per cent.

The offer comes as Pace unveils a completed display apartment and townhouse, now available for inspection by appointment ahead of the project's Spring completion.

[smartcode_project:default project_id=139552 project_image_fid=371009]

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/winwood-mckenzie-architecture">Winwood Mckenzie</a> and landscaping by <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a>, Fabbrica draws on Fitzroy’s industrial and manufacturing history, incorporating references to the former Argyle Shirt Factory and Life Savers Confectionery Company that once occupied the site.

The development comprises 85 residences, spanning low-maintenance apartments through to larger-format townhouses with private street access and double lock-up garages, a relatively uncommon offering in Fitzroy’s higher-density apartment market.

Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.

[smartcode_project:default project_id=139552 project_image_fid=371016]

Inside the residences, Winwood Mckenzie has focused on adaptable layouts and integrated detailing, with features including custom joinery, and concealed storage solutions. The material palette leans into warm, tactile finishes intended to complement the building’s industrial architectural language.

Fabbrica’s rooftop amenity is a key part of the project offering. Spanning around 800 sqm, the communal rooftop includes a private dining room, communal kitchen, lounge spaces, work-from-home zones, and outdoor dining areas overlooking the Melbourne CBD skyline.

[smartcode_project:default project_id=139552 project_image_fid=371017]

Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.

The Fitzroy location also positions residents within walking distance of Brunswick Street, Smith Street, parks, cafés, galleries, and public transport, while remaining only minutes from Melbourne’s CBD. The project has an enviable Walk Score of 96.

[smartcode_project:default project_id=139552 project_image_fid=371025]

Pace, which is also delivering the project as builder, has developed more than 100 projects across Melbourne over the past three decades. The vertically integrated approach has become increasingly common among developers seeking greater control over construction delivery amid broader market pressures affecting the apartment sector.

The strikingly contemporary Gore Street development is now around 70 per cent complete, with purchasers expected to move into their new homes in Spring 2026. A limited number of residences remain available under the current deposit match offer.

*Conditions apply in relation to the deposit match offer.

[smartcode_project_cta:default project_id=139552]

Pace offers five per cent deposit match at Fabbrica Fitzroy ahead of Spring completion

Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.

From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.

Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.

Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.

“We know the buyer profile exceptionally well,” Abolakian says.

“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”

That buyer has historically been overwhelmingly owner-occupier driven.

Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.

“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.

“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”

That philosophy extends well beyond apartment layouts.

From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.

“There was probably a period where having an approved project in market was enough,” he says.

“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”

“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”

[smartcode_project:default project_id=110379 project_image_fid=311393]

The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.

For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.

“People buying now often aren’t moving in for several years,” Abolakian says.

“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”

That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.

[smartcode_project:default project_id=149594 project_image_fid=362634]

While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.

“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”

That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.

“It’s about creating something that feels special without being excessive,” he says.

“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”

<img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" />

The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.

“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.

“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”

Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.

“There are definitely people waiting,” he says.

“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”

Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.

Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.

Jonathan Chancellor

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