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Hi Margaret,   
I have a brand new home and am about to rent it out.  I have building and contents insurance, as well as landlord insurance.  
The real estate agent in Queensland is telling me that they will not accept my business if I do not have public liability insurance to cover the tenants in case of injury.   
It is my understanding that this was the responsibility of the tenants?  
Your help is appreciated.
Kind Regards,
Salllie
 
Hi Sallie,
This is a good question and one which many new landlords ponder.  The responsibility for ensuring that a person has access to financial recompense if they injure themselves when on premises not owned by them falls to the owner of that premises.  In the case of a rental property, this responsibility clearly lies with the landlord, and so the agent is correct.  
However, you say that you have building, contents and landlord’s insurance already. This means that you will have public liability included in the building policy and the landlord’s policy, and both amounts are likely to be for cover of up to $10m!  Grab your policy and have a good read as I know you will find this inclusion in both.  
Which leads me to my next piece of advice.  Don’t use that particular manager to manage your property!  If you have told them that you already have both building and landlord’s protection insurance, they should know that you already have this cover.  Even if you have not told them you already have this, rather than just refusing your business, they should have explained how to get this cover, and you would then have been able to advise that it was already in place. 
In short it’s you who should be refusing their business!    
Regards Margaret,

<hr>
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News.
She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Do I need public liability insurance to cover my tenants? Ask Margaret

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Hi Margaret, 
 I am interested in buying a property in <a target="_blank" href="/news">Ropes Crossing NSW</a>, The developer Bells River have asked me to sign two contracts: one for the land and the other for the house. I have to pay interest only when the house is being contructed.
 On the other hand I went to another developer and he said that he only has one contract, one for both land and house together. You just have to pay $10,000 up-front and the rest I have to pay after it has been constructed.
 I am still confused about what to do and where to go. Please help me one this.
Thanks,
 Ahsan
 
Hi Ahsan,
When you build a ‘project home’ or buy a house and land package, you are essentially buying directly from a builder.  He has already purchased the land and is about to undertake the construction on your behalf.

It’s very normal for you to be requested to firstly pay a deposit equal to the amount of the land, and then make progress payments, usually around five of them, as the construction gets to the different stages.   As you make these payments, you will pay interest to the bank and you won’t have any income to assist you with that.  I usually advise investors to add the total of these interest payments to the starting value to get a better idea of the true ‘buy in value’, as this is what should be used to asses true yield.

These days though, some larger developers offer, as an incentive to use their company, the option of simply making a small deposit at commencement and a final payment at the end.  This can have both advantages and disadvantages.  Obviously you don’t have any costs to meet until the property is ready for occupation, however it can place a strain on the developer, who still has to buy the materials and pay the holding costs on the land. unless they are exceptionally well financed, there could be issues down the track, such as a situation where they cannot meet their current liabilities, which may result in liquidation before you take delivery of your completed property.

I’d chat to the one offering the ‘buy now, pay later’ option and make sure that they can reassure you of their financial stability.  Outside of that, it comes down to what you can afford to do and whose product you think suits you the most.
Regards,
Margaret

<hr>
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News.
She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? Ask Margaret!
 

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How do I choose between house and land projects and why are the contracts structured differently? Ask Margaret

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Hi Margaret,
I have recently bought an investment property, and wish to maximise depreciation.  In the market there are so many quantity surveyors, how do I go about finding the best one? Are they all the same?
Many thanks, Daniel
 
Hi Daniel, 
Maximising depreciation on a property is really important, as it adds to the cash flows and can turn a previously negatively geared property into a positive cash flow one.  Even in a low interest rate environment, the possibility of achieving a positively geared result in your property investing (where raw rent exceeds raw expenses, and you pay tax) is limited to those areas with unusually high rental yields – these are usually areas based on one industry and with a greater risk to the investor. 
Where you have purchased in an area with more normal yields in the 5 – 6% range, on paper deductions, which are items which do not add to the expense ledger, can result in extra tax back.  This extra tax can plug up that shortfall between what comes in and what goes out and help you to stay in the market longer, as your holding costs are more well covered.  
Finding a quantity surveyor who is going to maximise these deductions is an important part of the investing process.  Understanding how they perform their calculations can help you to narrow down the good ones.  
The depreciation allowances themselves do not change from company to company – there is a prescribed amount which can be claimed on plant, equipment and buildings and the period of time over which they can be  claimed is  also prescribed, in the main, by the tax office.  It is the way that a quantity surveyor does their estimating that creates the difference in two different reports from two different companies.  
A quantity surveyor must, in effect first look into the past to establish what the original construction costs may have been for your property.  Then, they must estimate the value of the items within the property such as carpets, curtains and light fittings.  The first part is easier as there are tables which outline construction costs according to the years in which they were effected, but estimating a second hand value on an item for which you do not know the original purchase price is where the skill comes in.  
I’d suggest that first of all you ensure that the company you choose employs only duly qualified people and has a fairly long history in the business.  I like to choose companies which do a lot of the larger work too – the ones who do the big commercial and industrial estimating, as this is harder and requires a greater level of skill.  Next ask for a copy of a sample report, and then compare them across a couple of companies – these sample reports often contain similar sample properties so you can see how they differ.  
Lastly nothing is as good as a testimonial from satisfied clients.  Ask if they have happy clients who are willing to talk on their behalf, and whether it’s OK for you to contact them or be contacted by them.   If they can provide people who use them over and over again, this kind of testimonial can tell you much more than you can ever know from asking the company itself if they think they are good.  If they cannot provide this type of testimonial, there could be a good reason why!
Regards,
Margaret

<hr>
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel onYour Money, Your Call, both on Sky News.
She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
 
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I wish to maximise depreciation; how do I find the best quantity surveyor? Ask Margaret

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Hi Margaret,
We bought 1.33 acres of land in a subdivision on at the end of last year with the hopes of building a home on it in 2014. Since we bought the land my husband was in a pretty bad work accident and our plans to build a home have changed. 
We would like to put the land up for sale now but have questions on the capital gains that we may owe since we have not owned it for a year yet. We paid $35,000 and are not looking to make a profit on it when we sell. 
Help!
Shawn


<hr>
Hi Shawn,
When you buy any property as an investment, it immediately begins attracting capital gains tax (CGT).  CGT applies to all property you own, regardless of whether you intend for it to make a profit for you (as in a pure investment) or whether you think you might use it at some time in the future for yourself.
Your own home, or principal place of residence, is exempt from CGT, but you can only claim one property at any one time for that exemption. It must also be a property which is your bona fide principal place of residence (unless you are invoking the six year rule which allows you to move out of a principal place of residence for up to six years). 
The rate of tax is determined by how long you held the asset for – in the case of property, you get a 50% discount if it is over 12 months and you pay full tax (according to your own marginal rate of income tax) for any asset held less than that period of time.
In your case you purchased this acreage for the purposes of building your own home, but at no time has it been your principal place of residence and so you may have a CGT liability, at the full rate, if the contract for sale is signed within 12 months of you signing your own contract when you purchased.
However if, as you say, you do not intend to make a profit, you may instead have a capital loss. This is because your cost base (that is the starting value) is the purchase price plus costs to buy, and your ‘proceeds’ figure is the sale price less any cost to sell. In addition, the interest on any loan you had to hold this land, plus any costs you incurred while you held it (such as rates), add to the cost base, effectively reducing the difference even further!  
This difference becomes the gain, or loss.  If you sell for a similar price to that which you paid, once you account for all of the costs I mentioned, you will be more than likely to have a loss and there will be no tax.  However there will be no tax deduction either, as this loss can only be carried forward indefinitely to be written off against any future capital gain you may make from other investments.
You should be sure to get some good guidance from an accountant around what you can and cannot claim prior to making the sale.
Regards,
Margaret

<hr>
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News. 
She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
 
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Do I have to pay capital gains tax on land I haven't owned for a year? Ask Margaret 

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Dear Margaret,
I am thinking of buying a house as an investment in Eastwood, NSW. Is this the right time? I see many houses in Eastwood for sale at present but the price is moving up so fast. 
Do you have any advice? 
Thank you,
K. C. Wong
 
<hr>
 
 
Dear K.C.,
Eastwood, along with many areas in Sydney at present, is very much the subject of buyer frenzy.  On the weekend we saw a ridiculous result where a property in this suburb sold at $1m over the reserve.
I always marvel at the fact that, when the buying is good (after a GFC, or other times when we have economic uncertainty) no one is brave enough to buy, as the uncertainty creates fear.  Yet, when there is buyer frenzy artificially pushing up prices, everyone wants to rush in before it's too late!  It's the latter scenario which actually carries the most risk.
When buyer frenzy exists, it's very easy for the investor to overlook the important growth drivers.  All they see is an increasing price and they want in on the action.  Often when you strip away the current demand you are left with very little, and this means that, once the attention is removed from the area, prices will stagnate and possibly fall.  If instead you buy in an area which has all of the known growth drivers, and you manage to get in before any kind of major demand begins, you can be sure that the area will show great growth even after the frenzied demand settles down.
Where Eastwood is concerned there is no question that the values are strong and that, under normal circumstances, a buy there would not lose money for you.  However, I caution you to take care at present, as the latest sale prices are far exceeding the intrinsic value of the area.  This means that when Sydney goes off the boil, areas like this will suffer and those who bought as part of the current demand cycle may well find that they either lose value, or sit for a long time with little or no growth.
It might be better to find an area just like Eastwood which is yet to come under too much attention, then you can be sure of maintaining your buy in price, and possibly even increasing it over time and in the future.
Kind regards,
Margaret 
 
<hr>
 Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News. 
She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
 
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Is it the right time to jump in to one of Sydney's hotspots? Ask Margaret

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Hi Margaret,
 I have my rental unit for sale and the real estate agent says a buyer is requesting a copy of my depreciation schedule. Should I supply this as it contains the purchase price?
Regards, 
David
<hr>
Hi David, 
There is no reason to provide this depreciation schedule at all, since a depreciation schedule is prepared for a person, not for a rental property per se. 
The new buyer will not be able to use this schedule for their own claims and must have one of their own prepared. This is because their acquisition date is different than yours and the plant and equipment will be dealt with differently for them than it was for you. 
Essentially, the plant and equipment will get a ‘new effective life’ in consideration for the fact that it was not new when they bought the property from you.

Having said that, you can provide, for their information only, the amounts which have been listed therein, as this does not give away your original purchase price at all. 
Depreciation is divided into two main parts – that for the building and that for the plant and equipment.  Neither relate to what you paid for that property.  It’s possible that this information might provide a good guide to the buyer as to what they can expect, but it should be provided with a disclaimer that this is not provided as part of any tax advice, or even an expectation of what the new owner can achieve.
You should also advise them they must have their own report prepared. 
I’d put this in writing if you do decide to go ahead and provide this information, as you would not want the buyer to come back at you later claiming they only bought it on the basis of your advice about how much tax they could claim.   
Regards,
Margaret
<hr>
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News. She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
  
 

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Should I supply a buyer with my depreciation schedule? Ask Margaret

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Hi Margaret,   
I have read some of your books and in particular I am trying to apply the <a target="_blank" href="https://www.propertyobserver.com.au/landlords/the-20-questions-to-ask-before-you-buy-an-investment-property-margaret-lomas/2013072163457">20 Must Ask Questions</a> to a property purchase. 
However I am not 100% sure if I am applying them correctly.  
I am looking at Kallangur in Queensland. It seems to have a good mix of demographics &amp; employment, and a steady increase of population. However <a target="_blank" href="https://www.abs.gov.au/AUSSTATS/abs@nrp.nsf/Lookup/314021388Main%20Features12007-2011?OpenDocument&amp;tabname=Summary&amp;prodno=314021388&amp;issue=2007-2011&amp;num=&amp;view=&amp;">in the ABS it gets grouped along with Dakabin</a>, so I can't be sure of the exact figures.  
There seems to be some positive signs for their infrastructure, with a new train line coming to town. There are also a lot of shopping centres  opening up in neighbouring suburbs, which I think may help with local industry.    
The vacancy rates seem low, and there seems to be enough of a demand for rental properties. However as it is located in a growth corridor there are a lot of new homes being built in neighbouring suburbs. I am not sure if this will increase supply too much, or help to keep industry and population growth humming.   
Also at the moment I see there aren't very high sales volumes in the area, which means I can probably get a bargain, but at the same time the market is slow so capital growth could be a while off.     
Can you tell me your thoughts?  
Thanks,     
Evan 


<hr>
Dear Evan,
One of the reasons that I created the 20 Must Ask Questions ® was to provide a template by which someone could assess whether an area is one which has the potential to provide a suitable cash flow in the short term and sufficient growth over the longer term. 
The thing about these questions is that they make it very easy to identify areas which you should not consider, but when it comes to those you should consider, you have to be able to apply a little bit of analysis to the answers you are getting.  
One of the questions is ‘what are the trends’ and when you expand this it points to being able to identify a growth driver, but then work out why it is there and if it’s sustainable.  If an area has a decreasing vacancy rate, for example, on the surface that may appear to indicate an increasing demand for rentals. 
Scratch that surface though and you may discover a short term employment project which has brought itinerant workers to the area seeking six – 12 month leases, and once that project is over the vacancies rates may trend up again.  
You talk of ‘growth corridors’ but sadly this has become a term used loosely by the spruikers who sell property and it has little application for an investor who wants to be sure that every property they buy is ‘pre-hotspot’ – that is, it’s not too late yet and growth is imminent.  
Single factors like those uncovered when you ask the 20 questions don’t drive growth in their individuality – rather it’s the ‘concert of factors’ which is what you should be looking for.  And so, a new rail station or a new hospital on its own is not a growth driver – yet a population growing faster than the national average where there is a shortage of property, no new land and a council ensuring that transport and health needs are met through infrastructure development certainly is!  
Lastly you need to look at recent history to see what has happened from a growth point of view.  All of Moreton Bay Shire has fairly recently had a significant shift upward of prices in response to the earlier development of a better road system and the inward migration of first-home buyers, which created a demand that, for a time, left supply behind. But this settled as the prices grew that little bit past true first home buyer range, and the bulk of the ‘new’ infrastructure was completed. 
The best window of buying opportunity is past for now as we see supply outstripping demand, and in my opinion, until the demand factor once again exceeds supply, the best growth is behind this area, for the time being.  
You are looking at the right things though – you are just not building a  complete picture by looking at all of the drivers as they relate to each other, and then working out if you’re too late, or not.  Take this knowledge you have and go and find a Kallangur which hasn’t taken off yet!  
Kind regards,
Margaret

<hr>
Margaret Lomas is a best-selling author and writes and hosts the popularProperty Success With Margaret Lomas and heads up the panel onYour Money, Your Call, both on Sky News. She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Am I applying the  20 must ask questions correctly? Ask Margaret

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A property broker has suggested that I invest in Brisbane in government income guaranteed apartments.
Currently, I live in Sydney and my bank has warned that interstate investments using a broker often are 'two-tiered pricing'. 
I had never heard of this.
Thanks,
Shirley
 
<hr>
 
Dear Shirley,
First let’s get clear exactly what this might mean.  There is no such thing as a ‘government income guaranteed’ apartment and many spruikers use this term very loosely to inspire confidence in you and to infer that what they are selling to you is, in some way, iron clad – not true!
I can think of only two scenarios where a spruiker might attempt to trade off on some kind of government backing – Defence Housing Australia (DHA) and the National Rental Affordability Scheme (NRAS).
DHA is a scheme whereby you purchase a property in an area where this department has supply and they provide to you a ‘management agreement’ type service. 
This management agreement costs more than a standard management agreement (around 16% of rent) but in return your property is maintained against wear and tear (not major repairs) and a member of the defence force is chosen for a tenant. 
In some ways this is a rent guarantee and the terms are usually between 7 and 10 years.  
NRAS is a scheme whereby, in return for the owner leasing their property at a rent which is 20% below market value, tax credits of around $10,000 per annum for 10 years are supplied. 
This scheme was originally designed for large institutional investors, such as insurance companies and superannuation funds, who would build and supply lots of 100+ properties and in return receive the tax credits. 
Somewhere along the way spruikers got their grubby little hands on them and on-sold the scheme to individual investors. 
The tax office had to run around placing interim tax arrangements in place to deal with this and now we see them offered as an investment opportunity for anyone.  
While both schemes have a possible cash flow upside, the existence of an overlying scheme cannot assure you of a quality underlying asset.
Just because you get a tax benefit or a guaranteed rent doesn’t mean you are buying a property which will grow well or be a good investment. 
You must separate the scheme from the asset and ask <a href="https://www.propertyobserver.com.au/landlords/the-20-questions-to-ask-before-you-buy-an-investment-property-margaret-lomas/2013072163457" target="_blank">20 questions</a> to determine if the property would be a good buy without the scheme.  
Where NRAS is concerned I happen to know that the re-sellers are in for around $25k+ in commissions and so do be careful that the property is at market value when you buy it. 
Remember too that, as they are usually built in lots of 100, all completed at the same time.
The market is often flooded with properties – this not only impacts values (and usually they are worth considerably less on completion than the investor pays) but it means there are plenty of rentals available. 
This will push down yields and, as you already have to charge 20% below the market rent, if the market rent falls you could be up for very low yields indeed.  
My final word on the subject is this – you should never take investing advice from a property ‘broker’, or anyone whose aim is to sell a property to you. 
They cannot possibly be independent if they are giving you advice about where to buy and then profiting from selling you a property there!
Margaret Lomas is a best-selling author and writes and hosts the popularProperty Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News. She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Is there really "government income guaranteed" housing?: Ask Margaret

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We have just sold our family home of thirteen years and have been told we have to pay capital gains tax on three acres of the eight the house was built on.

Is this true and if so how do they estimate the amount we owe? 

We originally bought the land with a view to subdividing at a later date but because it is now included in the green wedge overlay we cant do this. 

Land can only be subdivided to twenty acre blocks surely that makes our three acres worthless as we can't sell them. 

We are about to retire and the thought of having to pay this tax is quite alarming.

 

Thanks,

Pat

Dear Pat,

This is a little known fact about acreages and one that people can often be inadvertently caught by. 

If you own a property which is more than five acres, then any part of the land more than the five acres is subject to capital gains tax and cannot attract a Principal Place of Residence exemption. 

I’m guessing this is to prevent people from buying a larger, broad-acre lot, living on it and then trying to profit from DA approvals which can increase the value significantly while they avoid the tax they would otherwise pay if it were a pure investment. 

The only way to get out of this is to conduct a business on the property (such as a farm).  

In your case you did buy with a view to subdividing, so I guess it’s fair enough that it was more than just a PPOR for you and you bought it as an investment.  

You might feel that as it has not turned out and you cannot make the profits you had planned that you should not have to pay the CG. But, that’s like saying that if you bought a parcel of shares expecting them to double and they only went up by 10%, you shouldn’t have to pay any tax on the smaller gain!  

One of the things about the acreage is that usually the five acres upon which the house sits is usually far more valuable than undeveloped portion and when you sell you don’t have to necessarily apportion the value equally across the eight acres.

This is because you can choose which five acres is exempt, as long as you include the land on which the dwelling is built in the portion you claim the exemption on. 

This means you can have a valuation done showing the value of the land holding the house and the value of the residual, unused three acres, and it’s likely that the unused amount will have a proportionately lesser value. 

From this, you apportion the percentage that the three acres represents of the entire value, and work backward – this is the percentage of the original purchase price which becomes your cost base for working out the value upon which you must now pay CGT.  

Remember as you have held it for more than 12 months you qualify for the 50% discount and so it may well work out that the CGT burden is not as large as it may first appear.

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Do I have to pay capital gains tax on land, even if I haven't subdivided it?

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Hi Margaret,
I have read your response to the question raised on <a target="_blank" href="https://www.propertyobserver.com.au/residential/ask-margaret-should-i-buy-off-the-plan-or-an-existing-property/2013062862801.">should you buy off the plan or existing dwelling for investment</a>.
After reading this I had some questions of my own. My current situation is that I'm 23 and looking at buying my first investment, obviously to also take advantage of the first-home owners grant (FHOG) &amp; stamp duty exemptions as well. My strategy was live in the apartment for 6 months and then rent it out.
I have done quite a bit of reading about buying an investment property, the risks of negative gearing, buying property off the plan and all the other jazz. I've also done some speculative/assumption modeling for buying off the plan and investing but I don't want to be disillusioned by my own thinking.
Since I was wanting to take advantage of FHOGs I’m limiting myself to new and off the plan apartments, so from a risk perspective I tried to lower the risk by investing in a blue chip/boutique suburb such as Lane Cove North (there’s about 5 other developments in the area too).
A lot of the developers already include commissions/the gov grant included in their pricing matrix so buying off the plan I will already be overpaying for a property in Sydney.
Say my investment strategy is for the long term and I’m willing to hold on the apartment, would it still be worth it to invest in off the plan (taking advantage of the $15,000 and all stamp duty exemption)?
Regards
David
 
David,
Before I answer the question, let’s get a few things straight.
The FHOG is a sum of money available to homebuyers who wish to acquire an owner occupied property. 
It is not for those who wish to buy an investment property, and who are planning to live in it only for the minimum 6 months to keep the grant. The 6 month minimum (which must occur within 12 months of settlement) is provided for those who genuinely access the grant, intending for the property to become an owner occupied one, and then have changed circumstances which require them to move out.
If your aim is to use the grant to buy an investment property, you will run the risk of having that grant revoked in the future, should there be any evidence that you never intended for the property to become your own home.
If you buy an investment property without accessing the grant, this grant remains available to you for your first home purchase, as long as you never live in any properties you buy before that time.  So, not using it will not result in you losing it if you buy a property purely for investment.
You talk about ‘blue chip’ suburbs, but this term has little meaning any more. 
Originally used to describe shares of long standing, well- established companies, this term was then applied to those long held, established areas where it was believed that growth would always be better and bigger. 
Much has changed about how property performs and this is largely attributed to the urban sprawl, and the capacity of larger regional areas to meet the lifestyle and employment needs of a more diverse range of people.
In other words, some areas which used to be considered ‘country towns’ are now thriving metropolises in their own right. 
If you use old time thinking to invest today, you may well make a very large mistake. In the past 20 years we have seen some lacklustre performances indeed from what has always been referred to as blue chip suburbs, and I’d say this is because their values, having already hit fairly high levels, have little room to move when you consider the average buying power of the majority of the population.
And so; if your aim is to buy an investment, then you will see a far better short term yield and likely a better long term return in terms of growth, if you can find those areas which have not had large gains yet, but which have an abundance of growth drivers. 
You don’t have to take the risk involved in buying off-the-plan, where you cannot confirm true market value and where often those commissions are built in to make them overpriced.  You should be casting your net more widely and looking for areas where population is growing faster than the national average, diversified employment opportunities exist and property is still affordable to the greater portion of the buyers. 
Property such as this is more exposed to the demand factors which push up prices and result in better growth for you, and these same properties generally have a better rental yield in relation to purchase price, making it easier to hang on to as the cost to you is minimised.
Most importantly David, do nothing until you become educated.  Attend a good course (like Destiny’s Essential Property Education) and take no action until you are better trained.  It makes no sense to make such a large investment if you haven’t got the knowledge and skills to get it right.
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel onYour Money, Your Call, both on Sky News. She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
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Ask Margaret: Does the first-home owners grant make it worth the risk to buy off-the-plan?

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

Joel Robinson

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

&nbsp;

Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.

The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.

The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.

The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.

[smartcode_project:default project_id=144441 project_image_fid=370975]

Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.

Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.

Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.

[smartcode_project:default project_id=144441 project_image_fid=370981]

Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.

“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.

“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”

“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.” 
[smartcode_project:default project_id=144441 project_image_fid=370977]

The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.

Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.

The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.

The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.

[smartcode_project:default project_id=144441 project_image_fid=370980]

Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.

“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.

“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”

A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.

That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.

The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.

[smartcode_project:default project_id=144441 project_image_fid=370978]

According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.

Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.

The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.

The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.

That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.

The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.

[smartcode_project:default project_id=144441 project_image_fid=370979]

The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.

“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.

“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”

The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.

[smartcode_project_cta:default project_id=144441]

Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more internation and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

Margaret Lomas

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