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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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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

Growing national developer Time &amp; Place has announced its fifth new apartment development.

With two projects in Manly and two upcoming in Surry Hills and Potts Point, the developer, which expanded beyond Melbourne just a few years ago, is now heading to Mosman. It is planning 53 new apartments on Redan Street.

The 3,233 sqm site, spanning <a href="https://www.apartments.com.au/new-apartments/40-48-redan-street-mosman-nsw-2088">40–48 Redan Street</a> with frontage to Redan Lane, is located just under 400 metres from Spit Junction Town Centre. It is reported the developer paid around $100 million for the five-site amalgamation.

Time &amp; Place, founded by Tim Price and backed by James Packer’s private investment firm NPACT, has submitted the project as a State Significant Development through the NSW Government’s Housing Delivery Authority pathway.

Of the 53 apartments, 42 will be released to the market, with the remaining 11 allocated as affordable housing in line with NSW Government requirements.

fjc Studio has designed the building. In its Design Report, the architect said the diverse mix of dwelling types and sizes, including 11 two-bedroom affordable housing units, 40 three-bedroom apartments, and two four-bedroom residences, will support a broad demographic, including families, downsizers, and key workers.

The development will rise to nine levels, a height encouraged by the NSW Government due to the site’s proximity to Spit Junction, which has been identified as a low- to mid-rise centre. Developments within a certain proximity to these centres are permitted increased height.

fjc said the project “achieves an appropriate density outcome for its setting by balancing increased housing supply with strong amenity performance,” adding that it “makes a measurable contribution to NSW housing supply targets through the delivery of additional dwellings and dedicated affordable housing.”

The new development will replace five existing two-storey homes.

“By aligning with the objectives of the Housing SEPP and applying careful architectural and urban design principles, the development provides high-quality residential accommodation that integrates sensitively within its established Mosman context and delivers enduring benefits to residents and the wider community.”

Mosman has become increasingly popular with developers in recent years.

Developer Abadeen has been particularly active, with Mosman Residences currently on the market and under construction on Clifford Street. It also has an upcoming Burran Avenue project, comprising just three apartments on the Balmoral Slopes, and recently secured the Midas and Honeysuckle nursery site on Military Road.

Prosker Property has a project on Redan Lane, just a few doors down from Time &amp; Place’s proposed development.

Developers including Toohey Miller, DARE Property Group, and WINIM also have projects underway in the area. In 2024, a five-year target was set for the Mosman LGA to increase housing supply by 500 dwellings by 2029.

Time &amp; Place entered the Sydney market with Two Tides, its under construction Manly development. Given its sales success, it has secured another development in the area, more boutique, facing the beach on North Steyne.

They are hoping to launch their redevelopment of The Chimes in Potts Point this year, and next year will look to take to market Marlborough House, an adaptive re-use of the landmark David Jones warehouse in Surry Hills.

Joel Robinson

Time & Place to take on Mosman apartment market

Brunswick’s civic heart continues to consolidate around the Merri-bek Arts and Culture Precinct, where a growing cluster of cultural institutions, recreation facilities, and public infrastructure has created one of the inner north’s most defined community hubs.&nbsp;

Within this evolving precinct, <a href="https://www.apartments.com.au/new-apartments/saxon-street-by-milieu-brunswick-31-saxon-street-brunswick-vic-3056">Saxon Street by Milieu</a> introduces new housing directly alongside the civic anchors that shape daily life in the suburb.

At 31 Saxon Street, the project sits immediately beside Brunswick Baths and within moments of Brunswick Library and Town Hall, longstanding institutions that support both community services and everyday amenity.&nbsp;

[smartcode_project:default project_id=136434 project_image_fid=348840]

Next door, the newly delivered Balam Balam Place arts precinct has emerged as a central piece of Merri-bek Council’s cultural strategy, bringing together creative studios, exhibition spaces, maternal and child health services, and community programming in a purpose-built civic facility. Together, these destinations have reinforced the surrounding blocks as a focal point for public life in Brunswick.

This part of <a href="https://www.apartments.com.au/developments/brunswick-vic-3056">Brunswick</a> forms a key pocket within the suburb’s designated Major Activity Centre, where long-term planning has prioritised walkability, civic investment, and increased housing supply close to transport and services. The surrounding street network reflects that strategy, with compact blocks, established retail corridors and active transport links supporting a lifestyle that is largely navigable on foot.

Within a few minutes’ walk, Sydney Road delivers one of Melbourne’s most recognisable streets, known for its long-running mix of independent retailers, international dining venues and everyday convenience. Tram routes along Sydney Road provide frequent connections south toward the CBD and north through Brunswick and Coburg, while Jewell Station on the Upfield line sits within roughly a ten-minute walk, offering direct train access into the city.

[smartcode_project:default project_id=136434 project_image_fid=348839]

Active transport also plays a significant role locally. The nearby Upfield Bike Path forms a key north–south cycling corridor linking Brunswick through Parkville and into the central city, reinforcing the area’s reputation as one of Melbourne’s most accessible inner-urban neighbourhoods for cyclists and pedestrians alike.

The surrounding civic cluster extends beyond cultural infrastructure. Siteworks, a nearby creative hub supporting artists and community organisations, adds to the concentration of cultural activity in the immediate area. Educational institutions such as Brunswick North Primary School, Brunswick Secondary College and RMIT’s Brunswick campus are also within easy reach, contributing to the suburb’s diverse resident base spanning families, students and professionals.&nbsp;

[smartcode_project:default project_id=136434 project_image_fid=348841]

Designed by <a href="https://www.apartments.com.au/architects/jackson-clements-burrows-architects">Jackson Clements Burrows Architects</a> in collaboration with <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> and landscape architects <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, the nine-level building has been shaped to respond to the surrounding streetscape, with lower levels aligning to the street and upper storeys stepping back to soften its scale and improve solar access.&nbsp;

Curved balcony forms reference nearby heritage architecture, while the development’s public realm improvements include a widened footpath along Saxon Street to strengthen pedestrian connections between the precinct’s civic sites.

Sustainability also underpins the project’s approach. The building is designed to operate entirely on electric infrastructure supported by rooftop solar, with an average 7.5-star NatHERS energy rating and EV-charging readiness across the development. Shared resident amenities will include a landscaped rooftop terrace with barbecue and covered dining areas intended to encourage informal interaction between residents.

Saxon Street marks developer Milieu's fifth project in Brunswick and continues its focus on design-led infill housing across Melbourne’s inner suburbs.&nbsp;

Construction has commenced through reputable builder Manresa, who will complete the project in 2027.

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Saxon Street by Milieu connects residents to Brunswick’s cultural and civic core

Within <a href="https://www.apartments.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe-vic-3079">Candela Ivanhoe</a>, <a href="https://www.apartments.com.au/developers/salter-brothers">Salter Brothers</a>&nbsp;takes a different approach to larger residences, moving away from the constraints of a single level.

In Grand Residence 3.05, known as the Lustre, plays out across two levels, with a mezzanine configuration that is uncommon in apartment living.

Lustre is a four-bathroom residence where the layout creates a clear distinction between shared and private zones, with uninterrupted views toward the Dandenong Ranges extending the sense of openness from the main living areas.

Entry is to the primary living level, where the kitchen, dining, and living areas are arranged as one continuous space. Timber flooring runs throughout, with a fireplace set within the living zone. Full-height glazing brings in natural light, supported by double glazing that improves thermal performance.

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The kitchen is configured as both a working and social space. A large island bench provides seating, while a walk-in pantry extends storage beyond typical apartment expectations.

Gaggenau appliances, including a 900mm gas cooktop and 600mm oven, are integrated into a layout that connects directly to the adjacent dining and living areas, and outward to the terrace. This balcony includes a built-in BBQ, reinforcing the apartment’s capacity to accommodate larger gatherings without compromising internal space.

A dedicated laundry room, powder room, and a wine cellar area sit discreetly off the main living zone, ensuring that functional requirements are resolved without encroaching on primary living areas. The master suite is also located on this level, designed as a retreat with a walk-through wardrobe and an ensuite that includes double vanities, a bath, and a dedicated dressing table.

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The mezzanine level introduces a second layer of living, rather than simply additional bedrooms. Two large bedrooms with built-in robes are positioned alongside a central bathroom, while a secondary lounge and study area create a self-contained zone suited to children, guests, or extended family. A large storage room further supports long-term usability, addressing a common shortfall in apartment design.

This separation of levels is central to how the residence functions day-to-day. It allows the lower level to operate as the primary entertaining and living space, while the upper level provides privacy and flexibility. The result is closer in feel to a townhouse or standalone home, but with the benefits of apartment living, security, and low maintenance.

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Candela is close to 80 per cent complete, with Ironside delivering construction ahead of its expected October 2026 completion. The development comprises 58 residences, with a strong owner-occupier profile and a mix of one to four-bedroom apartments and loft-style townhouses.

Candela has exclusive access to private amenities, including a residential lounge and rooftop terrace. A charming café and a lifestyle wellness centre are located on the ground level, designed to foster community connection and extend the living experience beyond individual apartments without competing with the scale of homes like Lustre.

Candela, positioned in the heart of Ivanhoe Village, reinforces the practicality of the address. With a Walk Score of 90, residents are within immediate reach of cafés, retail, parklands, and Ivanhoe Station, while also benefiting from proximity to established schools and healthcare services.

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Inside Lustre: Grand Residence 3.05 at Candela Ivanhoe

<a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a>’s <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a> is being shaped around a simple but increasingly rare premise in apartment development: that the built environment should actively support residents’ wellbeing.&nbsp;

Located on the former ABC Studios site on Gordon Street in Melbourne’s south-east, the new neighbourhood sits on an expansive 11,740 sqm site neighbouring the heritage-listed Rippon Lea Estate, whose gardens date back more than 140 years.

Rather than positioning wellness as an add-on amenity, the development integrates it into the physical planning of the site. Architecture by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> is arranged across six low-rise buildings set within extensive landscaping designed by <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, with more than 40 per cent of the land dedicated to gardens and green space. Walking trails, pocket gardens, and mature trees are threaded between buildings, creating a network of green corridors that encourage residents to move through the precinct on foot and spend more time outdoors.

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Milieu has intentionally framed these gardens as an extension of the neighbouring Rippon Lea Estate. More than 16,000 new plants will be introduced across the site, with species carefully selected to protect and complement the area’s ecological significance. The approach focuses on strengthening existing environmental conditions while establishing new habitats that support native wildlife, reinforcing the role of the landscape as both an active ecosystem and a defining element of daily life.

A private resident gate will provide direct access to the historic grounds during opening hours, allowing residents to move seamlessly between the development’s landscaped gardens and the estate’s expansive lawns, lakes, and mature trees. The project’s gardens will also be maintained by the same gardeners responsible for Rippon Lea, reinforcing the visual and ecological continuity between the two landscapes.

Complementing the landscape is a dedicated wellness hub designed to support everyday health and recovery. Residents will have access to a gym alongside yoga and Pilates studios, while mineral pools and infrared saunas provide spaces for relaxation and restorative wellbeing. Shared lounges, workshop spaces, and pet care facilities expand the concept of wellness beyond fitness, creating opportunities for social connection and community interaction within the precinct.

Environmental performance is another key component of the project’s wellbeing focus. Elsternwick Gardens will be entirely fossil-fuel-free, with homes designed to operate on renewable electricity rather than gas. Passive design strategies, including cross-flow ventilation, high-performance insulation, and thermally broken double glazing, are intended to maintain comfortable indoor temperatures while reducing energy demand. Solar photovoltaic systems will power common building services, while rainwater harvesting will help irrigate the extensive landscaping across the site.

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Milieu Founder and Managing Director Michael McCormack says the scale and setting of the project allowed the team to take a different approach to urban apartment living.

“This site represents a once-in-a-lifetime opportunity to build something truly special,” McCormack says.

“Through that process, we arrived at a design that centres on a fully realised natural landscape – a series of private, interconnected gardens that encircle the homes and extend seamlessly from Rippon Lea Estate.”

Elsternwick Gardens will comprise three residential offerings, Gordon Place, Ripponlea Terrace, and The Garden Pavilion, each designed for owner-occupiers and shaped around high-quality interior design by Woods Bagot, K.P.D.O., and Flack Studio. The first stage, Gordon Place, includes one-, two-, and three-bedroom apartments designed with a strong focus on indoor-outdoor living and sustainability.

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Milieu recently appointed <a href="https://www.apartments.com.au/builders/brady-constructions">Brady Constructions</a> to deliver the project, marking a key milestone for the development. The appointment follows the demolition of the former studio buildings on the Gordon Street site, with construction progressing toward the delivery of the nature-led community.

Situated between the established villages of Elsternwick and Ripponlea, the development balances its garden setting with strong urban connectivity. Residents will be within walking distance of cafés, restaurants, and local retail, while nearby train and tram connections provide quick access to Melbourne’s CBD and the beaches of Elwood and St Kilda.

With construction underway and the first residents expected to move in by early 2027, Elsternwick Gardens represents a growing shift in apartment development toward environments that prioritise wellbeing as much as density or location. By placing landscape, sustainability, and shared spaces at the centre of the design, Milieu is positioning the project as a residential neighbourhood where wellness is not just promoted, but built into the structure of everyday life.

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Elsternwick Gardens' wellness-first design strategy

Brisbane-based developer <a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a> has made a striking debut on the Gold Coast, officially unveiling its $250 million COMO development in Varsity Lakes, a lifestyle-driven residential project anchored by an extensive rooftop wellness and activity precinct.

Having recently launched to market, construction has already been fast-tracked by <a href="https://www.apartments.com.au/builders/5point-projects">5Point Projects</a>, ensuring momentum continues on what is set to become a landmark residential address for the growing Varsity Lakes community.

Located at 22 Lake Street, Varsity Lakes, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO</a> will comprise 156 apartments across 16 levels, comprising one-, two- and three-bedroom residences designed for modern living. However, it is the project’s rooftop amenity offering that sets COMO apart.

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Designed as a dedicated wellness and recreation hub, the rooftop will feature a 25-metre lap pool, fully equipped gymnasium, and multiple pickleball and paddleball courts - amenities rarely seen in boutique apartment projects.

Residents will also have access to a sauna and plunge baths, while landscaped gardens and relaxation zones will provide tranquil spaces overlooking sweeping panoramic views across the Gold Coast skyline.

The rooftop precinct has been designed to function as the social and wellness heart of the development, encouraging residents to embrace an active, balanced lifestyle within their own building.

&nbsp;

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Red &amp; Co director David Laverty said the amenity offering was central to the project’s design from the outset.

“Amenities were at the forefront of our decisions,” Laverty said.

“Buyers today are looking for more than just an apartment - they want a lifestyle that promotes health, connection and balance.

“The rooftop at COMO has been designed to be the epicentre of that lifestyle, with a suite of wellness and recreation facilities that are quite unique for a boutique development of this scale.”

&nbsp;

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Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, the residences prioritise liveability, featuring spacious layouts, 2.7-metre ceilings and high-quality finishes throughout.

The development sits beside Bond University, placing residents within walking distance of education, retail and dining options within the vibrant Varsity Lakes precinct, including Robina Town Centre, Varsity Lakes Train Station and a range of leading schools.

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Laverty said the location was a key driver behind Red &amp; Co’s decision to bring the project to the Gold Coast.

“<a href="https://www.apartments.com.au/developments/varsity-lakes-qld-4227">Varsity Lakes</a> was a clear choice for us to invest in as it’s a lifestyle hub that seamlessly blends lakeside living with urbanity,” he said.&nbsp;

“Como will capitalize on this great location, delivering a project that not only creates premium homes, but a lifestyle defined by community, wellbeing, and connectivity.”

Red &amp; Co has delivered more than 500 apartments and townhouses across 26 projects in Brisbane in recent years, with COMO marking the company’s first major Gold Coast development.

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Kevin Lee

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