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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?

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Margaret Lomas

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