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Guest observeration
Recently I read two very different articles about our 'property markets'.
The first was an in depth piece by arguably Australia's most accurate property analyst, Michael Matusik. The <a href="/expert-insights/finance/unprecedented-low-interest-rates-wont-last-forever">second article</a> was attributed to the chairman of Century 21 Real Estate, Charles Tarbey. Both articles rammed home why the average Australian finds it difficult to know (let alone understand) what's really happening in 'the property market'.
Matusik suggested that "caution and common-sense" are the order of the day for owner occupiers and investors alike (along with investing for rental income of course).
Tarbey on the other hand declared that there was no bubble in Australian real estate, and that "we're in a very steady adjustment growth mode driven by the shift to a market where buyers and sellers negotiate a fair price". Caution and common sense?
Neither pundit addressed this point though: your bank has a dirty little secret (weapon) that they can't wait to use on you.
Our current low interest rates and housing shortage issues have lured thousands of people each week into paying 'whatever it takes' to get into a property, especially in Sydney and Melbourne. There's so much evidence of this that it's just plain scary.
Whether you like it or not, Sydney is the undisputed engine of Australia. Melbourne comes in second and not-so-sleepy Brisbane is third in line.
So let's take a close look at Sydney, shall we? With 4.35 million residents, the largest workforce, strongest Gross Domestic Product (GDP) and highest home prices in the nation. House prices (in Sydney and every other overheated market) are poised for a serious downward adjustment, not if, but when interest rates go back up from their current 50 year historical lows.
Most people flocking in to buy a home today don't understand that an interest rate of 6.70% isn't just a "bit more"; it's a whopping 37% extra interest each month.
How will life change for an average Sydney couple with a $400,000 mortgage currently and 4.89% interest rate? Their current monthly repayment is $2121 with an interest component of $1630; and they're paying the principal down by $491 a month. It will take them 30 years to own that home at that rate.
But what happens when their interest rate goes back to 6.70% - still well below the long term average?
Have a look at the 'smoke &amp; mirrors' their bank uses to hide its dirty little secret. Although the monthly repayment for our Sydney couple jumps by $460 to $2581, the interest component jumps by almost $150 more, from $1630 to $2233.
The interest component on their loan is now $112 a month more than their previous principal and interest repayment.
Their interest is now $603 higher, however their monthly repayment only increased by $460. Even though their monthly repayment jumped by almost 22% - the interest component jumped by 37%.
Hello, did you see that: they've gone from paying almost $500 a month off, to now only reducing the debt by just $348 each month.
Kiss that 30 year repayment period goodbye!
Score 1:0 to their bank, who win big time, with each rate rise working in their favour.
 This article continues on the next page. Please click below to continue.
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So I simply cannot agree with Tarbey's view. When people are competing in record numbers, for the few properties available, and prepared to pay above the odds to secure a place to call home, then common sense has gone out the window.
I know we're in a bubble right now, when real estate agents tell me that the house I bought for $680,000 just over five years ago would probably now fetch $1.1m.
I know we're in a bubble right now, when real estate agents tell me that they'll now accept "offers over $280,000" for the two bedroom units I was buying for investor clients 21 months ago for $200,000 - and their rents have either remained static or dropped $10 a week in the process.
I know we're in a bubble right now, because my house hasn't increased in value by over $500,000 or 73%. I know we're in a bubble right now, because those two bedroom units haven't increased in value by $80,000 or 40%.
I also know we're heading for a severe correction in those markets because:
<ul>
<li>This insanity is driven by an abundance of cheap money</li>
<li>The supply component is out of synch to match the demand caused by the abundance of cheap money</li>
<li>Money is the cheapest it's been in over 50 years because our economy is in trouble</li>
<li>Borrowing to the hilt because you can afford to pay whatever it takes for 'that' property based on today's interest rates is maybe the new definition of insanity</li>
</ul>
Michael Matusik, I think you're closer to the truth than even you might know.
What should you do right now? A couple of things, actually:
<ul>
<li>Get rid of all that credit card debt, personal loans, and any other high interest rate facilities</li>
<li>If you can't get rid of that debt, if you've got enough equity in your home consider rolling those debts into your home loan. Better still, roll them into a separate facility and pay it off over say three to five years</li>
<li>Seriously consider switching your home and/or investment property loan to either a three or five year Fixed Rate loan - sooner rather than later</li>
<li>Pay more than the minimum repayment on your home and/or investment property loans; in fact use these ridiculously low interest rates to pay as much extra as you can afford</li>
<li>Right now, the smartest thing you can do - for you - is to reduce debt fast. The lowest interest rates in five decades is your best chance to do this, probably in five decades.</li>
</ul>
 
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klee-LzAEhB2j7n

Your bank has a dirty little secret

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GUEST OBSERVATION
Six years ago McCrindle Research (one of Australia's leading research houses) predicted that by 2020 the Australian population would reach 24 million. At the time - 2008 - our population was 21.4 million.
Based on the Australian Bureau of growth statistics (2013), we're growing by:
<ul>
<li>one birth every one minute and 42 seconds,</li>
<li>one death every three minutes and 34 seconds,</li>
<li>a net gain of one international migration every two minutes and 14 seconds, leading to</li>
<li>an overall total population increase of one person every one minute and 20 seconds.</li>
</ul>
As I write this article in August 2014 Australia's population sits at 23.5 million (<a href="https://abs.gov/" target="_blank">abs.gov</a>). If my calculations are correct, we're growing by 395,188 people every year. By New Years Eve in 2020, we'll add another 2.371 million people to our population. Last time I checked ... 23.5 million plus 2.3 million equals 25.8 million.
We'll be 10% bigger at almost 26 million people. By 2020 we won't just reach 24 million - we'll have enough new blood to add another Adelaide, Hobart, Darwin, Canberra, Townsville and Cairns into the mix!
It's just "numbers" you say, but take note - these "numbers" will have a massive effect on the Australian economy and the thousands of property markets across Australia.
As the federal government has recently signalled - adding salt to the wound will be our ageing population; lots of significantly older adults.
Around 200,000 people reached 65 years of age in 2011. Between January 2012 and December 2020 another 5.4 million will join them. That little fact may not mean much today - but with Baby Boomers exiting the workforce in large numbers, we're staring down the barrel of a lot more people and a lot less tax payers.
A bit more research (another McCrindle report) revealed that in 2012 the median age was 38. They also predict that in 2050 our median age will be 43. We're growing older and living longer.
The double-edged sword? We're also losing our kids to the 'global village' - what we read about at university back in the 60s and 70s, they now live in. Our younger generations grow up, study, possibly received government funding or HECS support to gain their qualifications and leave our shores in increasing numbers to work in others countries.
In 2012, a reported 257,258 Australians left the 'lucky country' permanently - a quarter of a million Aussies said goodbye!
When I sat my HSC 42 years ago we didn't have pocket calculators - they weren't available in Australia. "How the times they are a changing"
I know at least some of these kids found that international job on their mobile device, accepted the offer, negotiated their remuneration package and booked their flights the same way. Leaving without a second thought.
The undeniable challenge we must now address is that we have a mass exit at the top of the age scale, a significant one in the lower age bracket - and the people in the middle are going to suffer. Your retirement age has already been increased to 70 years of age.
What's next then?
This is what's next, and it's a real eye opener. In 2013, only four percent of Aussies over the age of 65 years were self-funded retirees.
What the? 96% of people over the age of 65 were either reliant on a tax-payer funded pension, still working, or deceased. And as I said earlier, with the Boomers exiting the workforce in large numbers, we're staring down the barrel of a lot less tax payers to fund those pensions.
If people in the middle age bracket (38-55 years of age) don't take control of their financial futures right now, they really won't have much to look forward to in retirement.
If you're in that middle group and you're 'stuck'; unsure of how to shape your financial future so you can see the retirement you want and deserve, then you need to invest in your financial education now.
By developing your financial education, you'll create the ability to identify opportunities to help maximise your income and asset potential, and in return create a passive income in retirement.
Kevin Lee is the property investment expert and buyer's agent at <a href="https://www.smartpropertyadviser.com.au/" target="_blank" rel="nofollow">Smart Property Adviser</a>.
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The demographic storm about to hit Australia

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GUEST OBSERVATION
A<a href="/expert-insights/investing/australias-top-25-most-expensive-suburbs-rp-data"> recent RP Data report</a> stated the number of suburbs across Australia with a median price of at least $1 million has increased by more than 33% in 12 months - and it looked as though they were suggesting this is a good thing.
Make no mistake - this revelation of 417 suburbs should sound warning bells for the 'average Australian'. Our state and federal governments rabbit on about the need for affordable housing - since when did house prices of $1 million fit that bill?
As you might expect, many of the suburbs that made the list were in the major capitals - Sydney, Melbourne and Perth. The combined population of these three cities is approx 11 million, or 46% of Australia's total.
So let's do the math for a 35 year old working Sydney couple with one child. They're buying a home in a Sydney suburb for that median price of $1 million and they don't want to pay lenders mortgage insurance (LMI).
Suppose they met and fell in love eight years ago and started saving for their 'average home' pretty soon after. Our 'model couple' married, had a baby and have been super diligent too - saving $250,000 i n that time. That's an average of $31,000 a year for eight years.
Nice one! Who do you know that can do that? Not many? Mmmm - thought so.
Let's stop here for a minute: what buying a home for $1 million plus is doing is sucking the life out of people who are in the prime of their life, just so they can buy an average home in one of those 417 suburbs.
Out of that $250,000 deposit, they need to allow:
<ul>
<li>A little over $40,800 for stamp duty + associated fees in Sydney</li>
<li>Around $3200 for their legals and conveyancing</li>
<li>And $500 or so for their bank fees</li>
</ul>
By the time they add removal costs and a few other incidentals, they've just burned $50,000. Leaving this lovely couple $200,000 to put towards the purchase: their deposit. This means that they need an $800,000 mortgage. No problem, book that appointment with your friendly bank manager or mortgage adviser.
Oh dear ... do they qualify for an $800,000 loan? A quick calculation suggests that with the current 'super low interest rates' on offer, our couple with one child, two cars and a car loan only need to earn a combined $130,000 a year to be approved for this loan.
For this exercise I'll assume a split of: $85,000 for the breadwinner and $45,000 for the person who most carries household and child responsibilities. These two incomes deliver $64,000 and $38,250 after tax. A quick monthly calculation tells the real story: they have $5,324 &amp; $3,189 net monthly income after tax.
I t's time to celebrate - your loan is approved!
But now it's crunch time people! At just 4.69% (the super low rate currently on offer) the $800,000 loan to purchase that average home will cost our average family $4,145 per month.
That's monthly until they reach 65 years of age. $4,145 a month for the rest of their working lives! Almost 49% of their combined net income goes towards making their minimum loan repayments. And if our friends can't pay it off faster, they will have paid more than $1,000,000 in bank interest during t hat time.
What will happen though when their interest rate increases to just 6.6%? That monthly repayment jumps by a grand to $5,157 - ouch. I think you can work the rest of this math exercise out?
So our average couple bought an average home in one of 417 average suburbs with an above average deposit and above average sized mortgage...
And pretty much gave up their opportunity to become an average family of two adults and two kids.
Listen up people. Unless he's Walter White they can't ever afford to have baby number two.
Article continues on the next page. Please click below.
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The mysterious world of finance can be honed down to just three questions:
<ol>
<li>Can you pay back the loan?</li>
<li>Will you pay back the loan?</li>
<li>If it goes pear shaped, what can we sell?</li>
</ol>
If you fail to meet any one of the three criteria questions you will not be approved for finance.
Here's what hurts the feelings of so many people: the primary reason a couple wants to purchase one of these million dollar homes is to keep up appearances - I see it all the time.
Shelling out almost half your net income each month for a roof over your head is not the smartest move for most couples. Lose your job, become ill or have an accident that stops you from working and you're in trouble. This kind of financial stress kills even the strongest relationships.
People who need to keep up appearances aren't thinking about their financial future at all. They're all about 'I want it and I want it now'. Dangerous ground indeed - especially when interest rates increase in 2015 and beyond.
Many a credit rating (CRAA File) has been severely damaged over the years by this scenario and the resultant relationship breakdown.
It's articles like that RP Data Report that feed ego driven decisions and encourage people to believe that it's a 'fantastic' idea to purchase these types of properties.
Because we all know the mantra: "Property values always double every seven to 10 years."
Yeah right! Pigs might fly too.
It kills me to know that so many people fall into the trap of buying the wrong type of property, when the investors I'm working with are buying their first, second and third investments just weeks after getting started.
It's time for a reality check.
Here's a sample of the ‘no go’ suburbs from the RP Data list:
 <img src="/images/2014/08/21/rp-data-aug-21-two.png">
Kevin Lee is the property investment expert and buyer's agent at <a href="https://www.smartpropertyadviser.com.au/" target="_blank" rel="nofollow">Smart Property Adviser</a>.
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Are million dollar suburbs destroying the 'average' Australian family?

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We've all read those adverts in the industry magazines and publications. You know ... the ones touting super high rental yields on average houses or townhouses in a far flung mining town?  
So it was a kick in the teeth for those developers and marketers this week when CBA - Australia's biggest housing lender - announced that when assessing loan applications for investment properties located in mining towns, from next Monday (irrespective of what actual rent the property receives or is estimated to receive), they will now cap rental yields at 8% for their servicing calculations.  
I wasn't surprised in the least when I saw CBA's recent credit policy change. Here's why: in a blog article I published a few weeks ago titled <a href="https://spionline.com.au/blog/latest-blogs/12089-investor-fyi-how-the-banks-works" target="_blank">"Investors FYI: How banks work"</a>, I openly exposed how banks work, detailed how they assess their lending and interest rate on offer using a simple explanation: 'rate for risk' and emphasised how the banks calculate all of their lending based on risk.  
This latest change to credit policy is heavily based on the need to minimise the risk of CBA customers defaulting on their loans: "With high rental yields in some areas of the country, particularly in mining towns, and a view that these yields are not sustainable, the Bank will be capping rental yields at 8%. By capping the rental yield we are proactively moving to minimise the risk to customers defaulting on their loan while supporting brokers in maintaining their customer portfolio."
What they didn't mention is that many investors have bought investment properties purely on the premise that the advertised rental would last - possibly for decades. CBA has changed both their credit and postcode policies over the past few months to further mitigate any impending risk.  
Investors would be wise to take note.  
In another published article I commented on the risks associated with investing in mining or 'one industry' towns and expressed my professional and researched opinion. I concluded that it was naive for investors to invest in mining town areas. The article was titled <a href="https://spionline.com.au/home/11088-naive-to-fall-for-mining-town-investments" target="_blank">"Naive for investors to buy in mining towns"</a>.  
The risk of investors defaulting on their loans is increasing amongst those investors with investment properties in mining towns and especially in light of increasing interest rates.  
Banks know this &amp; they definitely know 'their game' better than anyone else. You want proof? Check their annual profits. 
Their job is to minimise their risk and maximise their profits. CommBank is taking action now; it won't be long before other lenders follow.  
CBA statement:
"On Monday 25 November 2013, all Home Loan/Investment Home Loans and Lines of Credit reliant on rental income from a residential security for servicing must not exceed the 8% rental yield.
"All applications (including Home Seeker) decisioned after Sunday 24 November 2013, will be subject to the new rental yield cap...
"Customers who earn greater than 8% p.a. rental yield must be advised that the Bank can only use the maximum of 8% p.a. rental yield for servicing."
 
<hr>
Kevin Lee is the property investment expert and buyer's agent at <a rel="nofollow" target="_blank" href="https://www.smartpropertyadviser.com.au/">Smart Property Adviser</a>.
Kevin specialises in helping investors identify and acquire positive cashflow properties that generate high rental returns, enabling his clients to grow their portfolios.
Kevin's free report "How To Turn Your Negatively Geared Property Into A Positive One In 3 Steps - Without Selling" is available at <a href="https://www.smartpropertyadviser.com.au/" target="_blank" rel="nofollow">www.smartpropertyadviser.com.au</a>. 
 
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What does the Commonwealth Bank's changing stance on mining towns mean for investors?

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Investors who aren't good at managing money could find a line of credit (LOC) to be their biggest mistake: helping them to get in way over their heads financially. LOC's are an exercise in compounding interest - and work really, really well; for the bank!


Although the interest rate on an LOC appears competitive compared to a credit card - used incorrectly it often becomes a massive financial problem. 

This is the biggest downside investors should be wary of - LOC's allow you to capitalise the interest until you reach the limit (or 90% of the credit limit). Many people don't think this through; capitalising the interest fools people into a false sense of security, but in fact it means that the interest incurred is simply being added to the amount already drawn down.
For example, if you borrow $250,000 via a LOC and interest for the month is $1500, instead of being required to pay the $1500 into the loan, the balance simply becomes $251,500. Repeated monthly that $1500 interest component grows: maybe only by $10 to $1510 the next month, but by the end of the first year that monthly interest component will be well over $1600.

If you are using your line of credit for personal purchases, you can see how easily this can become dangerous. Ignoring the debt by allowing the interest to capitalise will directly affect your ability to expand your portfolio. 

Tip: you should budget to repay your LOC in full over 10 years. 

Question yourself if that timeframe seems impossible; if you can't pay it off don't be deluded into believing its helping you get where you want to go.

Smaller amounts like $5,000 or less should be paid back within two years; three years is realistic for amounts such as $10,000. 

Never forget that growing your portfolio is your priority and every decision you make must contribute to its growth. Therefore using a line of credit to purchase depreciating assets such as cars is nothing more than a step backward in your journey to financial freedom.

Of course investors often access funds from a LOC to fund renovations or repairs needed to improve their investment property, potentially improving the rental return and value. That's OK - as long as a plan is in place to pay that debt off over a given timeframe.

If you're a home owner wanting to invest, beware of using a LOC attached to your home - you should seek advice from your financial planner and/or accountant. Get it wrong and you'll be sorry!

Don't mix business with pleasure, park your pay as you go income in your owner-occupied property offset account to save interest on your owner-occupied debt. Don't park your income in the LOC.
However if like so many people - you've already mixed business with pleasure - see your adviser as soon as possible  to help get you back on track.

What's all the fuss? Mixing business expenses (investment) with pleasure (personal) means you will lose tax deductibility status on some of the loan. This will ultimately also increase your accountancy costs substantially.

Lines of credit can be useful for consolidating other debts into your mortgage, however they are not for everyone.

Before you consider a line of credit ensure that you have a strict budget plan in place to stay within your financial limits. 

Don't become dependent on your line of credit, it will ultimately do you more harm than good - often slowly and without you noticing it.

<hr>
Kevin Lee is the property investment expert and buyer's agent at <a href="https://www.smartpropertyadviser.com.au/" target="_blank" rel="nofollow">Smart Property Adviser</a>.
Kevin specialises in helping investors identify and acquire positive cashflow properties that generate high rental returns, enabling his clients to grow their portfolios.
Kevin's free report "How To Turn Your Negatively Geared Property Into A Positive One In 3 Steps - Without Selling" is available at <a href="https://www.smartpropertyadviser.com.au/" target="_blank" rel="nofollow">www.smartpropertyadviser.com.au</a>.
 
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Why investors should be wary of lines of credit: Kevin Lee

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Most people confuse cash-flow and gearing believing they're the same thing; they're not.
Cash-flow is the pre-tax income your investment property generates week after week, whilst gearing relates to how your investment property is financially structured after tax.
Few investors are aware that negative gearing is a financial trap. In a nutshell, negative gearing is where you lose money month in month out - because you believe the value of the property will increase sufficiently over the short term, to offset those monthly losses. Some people mistakenly believe that it's smart to invest purely for the tax benefit.
Smart investors however, know that negative cash-flow on a weekly to monthly basis does not facilitate a multi property portfolio.
Negative cash flow is when the expenses for a property exceed the income the property generates.
Some investors don't realise that negative cash-flow can also occur in positively geared properties as well. Longer-than-expected vacancy periods, major repairs, maintenance and other ongoing expenses can sometimes result in negative cash-flow, for a short period of time.
If you're property is positively geared and generating negative cash flow then you've probably run into some larger than normal expenses.
Tip - it's a good idea to keep a cash buffer of three months loan repayments in an offset account - it becomes useful when you have repairs or go through short term financial hardship.
Also don't ignore the fact that your property could be producing a negative cash flow because the market in which your property lives may be experiencing low rental demand. This could signal that it's time to renovate.
Nonetheless, in its purest sense negative cash-flow is highly disabling and will prevent you from going forward and growing your portfolio. A smart property adviser can help you reverse your negative cash-flow situation; often it's simply a case of restructuring your incorrect or impractical finance structure.
However - as is the case with negatively geared property - your income can only service a limited number of negative cash-flow properties .... before you start to feel financial strain.
 
<hr>
 Kevin Lee is the property investment expert and buyer's agent at <a href="https://www.smartpropertyadviser.com.au/" target="_blank">Smart Property Adviser</a>.
Kevin specialises in helping investors identify and acquire positive cashflow properties that generate high rental returns, enabling his clients to grow their portfolios. 
Kevin's free report "How To Turn Your Negatively Geared Property Into A Positive One In 3 Steps - Without Selling" is available at <a href="https://www.smartpropertyadviser.com.au/" target="_blank">www.smartpropertyadviser.com.au</a>.
 
 
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Negative gearing is not the way forward: Kevin Lee

The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

[smartcode_project:default project_id=144913 project_image_fid=297741]

The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 41-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 41-storey tower, which has 229 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

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One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

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There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

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A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

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"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

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The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

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The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

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Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

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While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

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That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

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Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

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The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

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The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

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What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

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Kevin Lee

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