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Hi Margaret,
I have been looking for a two-bedroom investment. Do you think Mascot is a good suburb to invest in?
And do you suggest off-the-plan or existing property?
Thanks,
Mag
Hi Mag,
I always find it interesting that investors write to me and ask if a specific suburb makes a good investment.  Thinking about this, usually someone will ask about a suburb because they live near it, or it’s within close proximity to their own home and they feel a comfort investing in property close by.
When someone decides to become a property investor, their first action is usually to buy a property.  They pick a suburb fairly randomly, and then try to get a bargain there. Later, when this investment does not perform as well as they would like, they blame the investment, or property investing in general, never seeing that they are most definitely responsible for things not working out!
Just like any occupation, becoming a good property investor commences with the process of gaining an education.  Asking me if Mascot is a ‘good suburb’ means that you have not acquired the very basic skills needed to become a successful property investor!
The process to choose an area requires you to consider the entire country first, and narrow down which areas within the country show the greatest number of growth drivers.  Growth drivers include things such as a population growing faster than the national average, an abundance of infrastructure development, a median household income growing faster than inflation, a diversified industry base, low unemployment and a strong and active local council.  Most notably, though, an area with these characteristics should also be one which has yet to ‘take off’.  Choosing long established areas may mean that you get some growth, and it may already be a proven performer, but your aim should be to buy in those areas that have everything about to happen, soon, so that you can buy there at an affordable price and before everyone else does.
Considering Mascot, it is well established with little room for the bigger growth drivers to exist to propel the prices along at higher than normal growth rates.  It should be a solid area, but it won’t have that ‘boom’ in prices which makes a great investment.  You need to look further afield to areas where growth drivers exists and where values are yet impacted by these drivers.  In and around Sydney this includes many of the outer Western suburbs and some of the larger regional cities such as Penrith and Bathurst.
With regard to the second part of your question, an off-the-plan purchase carries far greater risk than an established property, and little advantage over one.  It’s very difficult to establish whether the off-the –plan property is being offered at what will be a fair market value – even a registered valuer cannot forecast future values accurately enough to assure you  that what you pay is going to be what it is worth when completed.  When you tie up your borrowing capacity on a yet-to-be completed project, you may not be allowed by the bank to borrow for additional investments, as your true position cannot be determined until the property is complete and owned by you.  If you are getting a loan to buy the property, and the property subsequently has a value less than you have agreed to pay, you may not be able to borrow enough to complete the sale, as the bank will use the value at the time, not your purchase price, to determine how much they will lend.  If you cannot complete the purchase due to lack of funds, you will be sued to proceed and you may lose your deposit.
Confirming an accurate future rent return is also nearly impossible, as this is affected by demand and supply.  Where the development is large, there could well be a sudden oversupply as they all complete and come on line, and you could get far less rent than expected, causing further financial distress to you.
Finally, I’ve seen far too many off-the-plan properties with large commissions built in for middlemen marketing people, meaning what you pay may be well over its true underlying value.  That said, I’d prefer an established property which you can buy today, whose value you can easily confirm and whose rent return is more assured.
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 rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
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Ask Margaret: Should I buy off-the-plan or an existing property?

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Hi Margaret,   
I just wanted to ask if North Wollongong is a good suburb in which to invest in a one-bedroom apartment?  
Thanks,
Enrique
Hi Enrique,
There are many things which make a good investment – demand, infrastructure development, population growth and a good price to name a few.  Areas which display strong drivers in many areas, and are priced well, are usually those which see the greatest future demand and become good investments.  
North Wollongong has been fairly rapidly developed and it’s the unit market where we have seen most of the building.  There are quite a few spruikers actively selling there too, which means that some of these properties may well be overpriced.  
In this area there is a huge disparity between the prices of the newly built, stunning apartments and the older, established ones – up to $300,000 difference within a few streets.  This is telling me that many units are selling off-the-plan or as just completed and there has not been a true test of their value yet.  While people may well be buying them, we will not know the value of these new units until we see secondary sales. For those buying them first, there is a huge risk that the value will not hold up.  
If we add to that the fact that the demographics would suggest that demand in Wollongong is coming quite firmly from families, then we now see several alarm bells – an oversupply of units being presently sold well over market value to a demographic group not well represented in the area.  To me this does not bode well for the ability of these units to either hold their value or see suitable rent return.  
It’s vital that if you find an area which has the growth drivers, you buy the right kind of property there. Wollongong is an area where families live and so you should have families in mind when purchasing an investment.
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 rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
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Ask Margaret: Should I invest in a one-bedroom apartment in North Wollongong?

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Hi Margaret,   
We own a three-bedroom house in Sydney's North Shore and are considering the option of selling and buying a bigger house (we have three children). We bought the house five years ago (brand new) but given what we've spent on landscaping, don't think we'll make much from the sale. Given the current interest rate situation, would you advise holding off selling and buying in the same market (and for how long?) or selling/buying sooner rather than later? 
Thank you very much, 
Kris
Hi Kris,  
From your question, I gather that you are thinking of upgrading your family home to a larger one, and keeping the one you are moving out of until such times as the market is better and more advantageous to sellers.  In theory, this should mean that you buy now while the market is lower, and sell in a higher market.  
There are a few issues with this strategy though:  
<ol>
<li>
Depending upon the current mortgage on the house you live in now, the yields are likely to be very low and not enough to cover your holding costs.  Higher priced homes tend to have relatively lower yields and this makes the gap between what comes in and what goes out much greater than it would be if you owned an investment property in a higher yielding area.  These holding costs soon add up, and if the sale takes longer than you’d hoped, might eat into any increased value you will get from waiting.
</li>
<li>
If your equity lies in the current home, and you need to finance the new home to 100% of its value, your largest debt will most likely be the non tax deductible one on this new home, while your lower debt (on the old house)will be tax deductible.  This is an upside down financial situation to be in
</li>
<li>
As you can only have one Principle Place of Residence (PPOR) exemption, one of the two properties you own will begin to accrue Capital Gains tax (CGT).  If you choose for that to be the one you move out of, then any additional gain you may make by holding off will be further reduced by CGT.  The 6 year rule only applies if you don’t have another PPOR
</li>
<li>
While the North Shore might be considered ‘blue chip’ it does not follow that this is the best investment you can make.  It’s an area which has already had its boom and now, at top prices, movement upward will be significantly smaller. Other areas which are yet to be ‘discovered’ have their greatest period of growth ahead of them, while top end property, once it reaches the top end, tends to have much smaller incremental growth ahead of it. As an ‘investment’ your current home may not be the best you can do.
</li>
</ol>
It might be more advantageous for you to sell now and while you are in the CGT free period, use any un-encumbered proceeds to buy the new home, and then use the equity you have in your new home to immediately leverage back into a 100% loan for a property situated in a true, up and coming hotspot!
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 rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
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Ask Margaret: Should we hold off selling and buying again in Sydney's North Shore?

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Hello Margaret   
Long-time fan of yours!  Thank you for your insights.   
I am a single mum who has managed to grow (through some tough personal times), a small portfolio of three properties since 2004 in south-east Melbourne.   
I purchased a small development property during the GFC and have sat on this waiting for the “right time” to develop (it's a two-unit site). 
I am fast approaching retirement age (currently 53) and believe I should be developing now, but my “gut feel” says wait. 
How do I know “when is the right time”?   
I have contacted real estate agents to find out rental / sale values and research seems to show the area is devaluing slightly/stagnating as with a few areas of Melbourne. 
However the agents seem to talk up the amount of rent I could receive, as well as the amount I would get for them should I sell, once built. I don’t know who or what to believe. 
My current PPOR (beachside) also has potential for a 3-4 unit site.
Thanks.
 
The decision to develop any site must come after an extensive analysis of both the area, and the potential costs involved, before proceeding.  
It’s crucial that you first examine your capacity to meet budget blow outs and also the holding costs of waiting until this development is income producing.  Among the costs you will be required to meet will be:  
<ul>
<li>
Costs to obtain the DA, which can run to $40 - $50,000 and includes town planners fees and council contributions and fees
</li>
<li>
Costs to retain architects to draw up plans
</li>
<li>
The interest on progress payments as the build progresses
</li>
<li>
Stamp duties and other statutory charges
</li>
</ul>
Even if you are able to access a loan from a bank for the entire amount, you will need to meet the interest payments as you draw down, and you will not have any rental income to support this.  You must try to establish an overall loan amount, workout the interest payments and establish if this is within your capacity to afford.  Make sure you consider the worst case scenario – I have seen developments take years to complete and you will have holding costs right up until you can rent the properties or sell them.  
You also need to then add these holding costs to the overall project amount so that you can determine whether the final product is worth what you are paying to build it.  You would want to see at least a 20% profit margin to make this worthwhile, as there will be capital gains tax to consider.  In order to reduce that capital gains tax, you will need to ensure that you hold the properties for 12 months past the contract date to get the 50% discount, although if you are building with the intention to sell for profit, the tax office may treat you differently and you may not get the discount.  
There is so much more I could say about this, but I think you get my drift at this stage – developing is quite a risky venture and if you are a single mum who has worked hard to get where you are, you are about to add a level of risk to your investing which has the potential to undo all of your hard work.  
Your other option is to sell this development site to another developer and you might like to put in place the DA approval first, which can often make the property more saleable.  This still has costs attached though, which you will need to meet with no guarantees that you will recoup it via a gain to the value of the property.  
You should speak to a town planner to get a good idea of what you may be up for regarding costs, and then to a qualified valuer to see what potential value you might get out of building.  Then perhaps even talk to a builder about the costs of the build so that you can establish a ballpark project cost before making any decisions.
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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Ask Margaret: when is the right time to develop my investment properties?

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Hi Margaret, 
I have a brand new property settled in early June 2012. I have lived in it since settlement and claimed it as my principal place of residence until Jan 2013 after which I moved out and rented it out. 
I have also obtained a depreciation report and am trying to decide if I should depreciate or not this financial year. 
Since I’m claiming this property as my PPOR, if I sell within the six-year rule, what are the CGT implications caused by me depreciating? Will I still be fully exempt from paying CGT? 
Furthermore, my depreciation report lists a maximum I can claim every year. Since my property was settled early June 2012 (i.e. in the 2011-2012FY) does this mean this year I would only be able to claim a pro-rated amount on the year 2 figure on the report?
Thanks,
Min
Hi Min,
You have a number of questions here so I will deal with them one at a time:  
<ol>
<li>
As you probably know, you have a six-year window from Jan 2013 to either move back in, or sell, to avoid CGT.  Be aware though, that this is only possible as long as you do not own another property in which you live and on which you wish to claim the principal place of residence exemption.  The rule is that only one property can have the exemption – so if you have bought something else to live in, that may be the one you apply the exemption to, therefore losing this six-year window on the one you moved from.
</li>
<li>
Your depreciation report should show you the amount of depreciation available for the remainder of the year and then for each of the subsequent 9 years.  There is no real reason not to claim the depreciation in this FY as it does not roll over or accumulate – therefore not claiming it will not result in a better outcome next year.  Often, due to low value pools and items under $300, there are immediate write-offs for some items which can boost the amounts claimed.
</li>
<li>
There is no CGT impact, as far as I am aware. If we assumed that you bought an item, or the quantity surveyor specified the items and you subsequently write them off each year (as you would from your report) your accountant will most likely treat the depreciable assets as sold at written down value, so there is no write back of depreciation.  My tax expert tells me that the majority of contracts do not specify a value of these items, so the treatment of writing down the value is in accordance with the general rules around depreciation.
</li>
<li>
If you obtained the report when you bought it, rather than when you rented it for the first time, then an adjustment must be made for days rented/days not rented.  If it’s only just been prepared then this report should make allowances for when it first became income producing and provide a figure to be used from that date (therefore the report amount is the full amount which can be claimed).  If you are not sure you should go back to the quantity surveyor and ask them to give you an exact amount calculated from the date it was first rented until the end of the FY.
</li>
</ol>
Remember, I am not a tax accountant or a quantity surveyor and this general information is provided based on my experiences.  You really should consult both of those professionals who can accurately establish your true position in relation to tax.
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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Ask Margaret: what are the tax implications of depreciating my principal place of residence?

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Hi Margaret,
I am currently residing in Wisconsin, USA however I own a two-bedroom townhouse in north-western Sydney. I am interested in potentially selling this property with a view to buying a property in the USA. When, in your opinion, would be the optimum time to sell in Sydney in the next 6-18 months, and why? Thank you for any information and advice you may be able to provide. Kind Regards, Michael
 
Hi Michael,
I’d have to say that the optimum time to sell a property in Sydney is not likely to be in the coming 18 months at all!  Of course this will depend very much upon where your property actually is, but if it is somewhere around the Hills District, which I imagine it is since that is North Western Sydney, then this is an area which is slated to continue with some respectable growth.  
While the area has, over the past 15 years, had a population growth of almost twice that of Western Sydney, there is more to come yet. Industrial and office rents consistently rank well below the Sydney average, which means that business is well and truly attracted to the area. Purchase costs for commercial and industrial property also rank lower than the Sydney average and this should enhance employment growth.  
While question marks still hang over the development of good transport infrastructure, this must come, since the population is showing no signs of slowing down. There are some significant land releases planned which, for a time, may cause growth to hover a little, but an upward climb should still be seen.
In my opinion, I wouldn’t be likely to buy in right now, as to do so would be at the cost of buying into a market which will boom sooner, however I also would not be inclined to sell, unless you bought the property for a song and already have significant gains.  If that’s the case then selling now, or in 18 months’ time, won’t make a lot of difference.  If not, then I’d be hanging around for the gains likely to be seen over the coming 10 years.
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 rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
 
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Ask Margaret: is there a good time to sell in Sydney soon?

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Hi Margaret,   

I would like to ask you how one can go about converting residential property into commercial property such as a medical centre.  

What are the pros and cons of doing that?

Thanking you.

Regards,

Opinder

<hr>
Hi Opinder,

The answer to this question may vary a little from state to state – each state has their own department of planning and, sadly, not all states are on the same page with the same rules.  

Having said that, and generally speaking, the ability to convert a standard residential property into a commercial property is going to depend upon the current zoning.  Note that this is different from electing to run a home business from a residential property – in some councils that may also need some kind of approval, however the purpose of such a venture does not specifically change the purpose for the building itself.

Where you wish to turn a house into a doctor’s surgery or some other business, the zoning must be appropriate for the new use.  This is because there are many considerations to make: – will there be sufficient parking so that the neighbours properties aren’t affected by cars in the street? Will the business affect the peaceful habitation of homes in the area? Will the presence of customers have any kind of impact which may be detrimental to the area? and so forth.  

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In some cases there may already be a commercial zoning or a ‘mixed business’ zoning in place, and in these cases often doctors’ surgeries and the like are allowed.  However, where the zoning is purely residential, then the intended use will either be not allowed, or you will have to apply to council for a change in zoning.  

In these circumstances it’s often better to engage a town planner to assist you with the application.  The money you spend on such a professional will most likely save you countless hours of your time.  The town planner can usually give you a good indication of your chances of success before you incur much time, or spend much money.

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" rel="nofollow" target="_blank">Destiny</a>.

Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Ask Margaret: how can I convert residential property into commercial property?

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Hi Margaret,
I have a number of properties in my portfolio and I know that you do too.  Can I ask – do you have yearly pest inspections done on each property?  My agent says I need to do this, but this is quite costly and usually it doesn’t turn up anything.  Are they required, or is the property manager on a commission with the pest inspection companies?
Sarah
 
 
Hi Sarah,
Mostly we need to be able to trust our property managers to advise us on what we need to do with our properties, and when, but you don’t have to take all of their suggestions on board and carry them out.  In the end you are the owner and common sense should always prevail.  Whether you get yearly inspections done, or not, is up to you and will depend upon many things including the age of the property and its history of pest activity.
My suggestions are:
<ul>
<li>Ensure that, before buying, you get a pest inspection done.  Your legal person or real estate agent should be able to point you to a qualified professional</li>
<li>Read and be familiar with it – it will outline the risks for the future.  You might even use this as a negotiating tool</li>
<li>Some properties at higher risk may need regular inspections and I highly recommend yearly in this case</li>
<li>Others, and depending upon your report, you can probably do every 2 or 3 years, but always read the reports thoroughly.</li>
</ul>
Some property managers will automatically suggest pest inspections be done yearly, and while I don’t think they are on any commissions for this, they may not always be necessary.  I always tell all of my property managers not to arrange anything without my prior approval, and I treat each property differently, according to its age, the level of risk it has and the findings in that original pest report.
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 rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
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Ask Margaret: do I need annual pest inspections on my investment properties?

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Dear Margaret, We are aware of the benefits of having a depreciation schedule compiled for investment properties. Can you tell me if there is any benefit in having a depreciation schedule compiled for one's principal place of residence? Many thanks,
Maria
While I frequently talk about depreciation, I guess we haven’t really painted the picture of how it looks as a bottom line.
Basically, all of the fixtures, fittings and furniture in any income producing property are eligible for you to make a claim for the depreciating value. This is done in consideration for the fact that one day you may have to replace them, and getting the tax breaks can help you to save up for that eventuality.  In a nutshell:
<ul>
<li>Each item has a different rate depending upon its effective life.
</li>
<li>Each year you work out how much value has been ‘lost’ and deduct from the income.  
</li>
<li>No money is lost, only value. That’s why we call it ‘on paper’.
</li>
<li>The same applies to the building but over 40 years
</li>
</ul>
Each movable item has a different rate that you can claim depending upon how long the tax office thinks it will last – usually between 2 and 10 years. This means that each year you work out how much value has been ‘lost’ and take that amount off the income.  
You haven’t lost actual money here, only value, but you do get actual money back as you now pay less tax on the income.  That’s why we call it ‘on paper’. You can do the same with the building, but it takes longer for that to run out, being 40 years
The extra tax you get back helps a lot with your cash flow – in essence the rent, plus your extra tax, make up your cash inflows, while your expenses make up the outflows. Claiming depreciation can mean that you reduce the gap between what comes in and what goes out and helps you to stay in the market longer!
As for your own home, as it does not produce an income there’s no point in having a schedule done as you cannot make any claims there. If you move out and make it a rental, you can have one done at that time.
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 rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
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Ask Margaret: do I need a depreciation schedule for the home I live in?

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Hi Margaret,
 I was wondering, if I buy a house that can be rented out on the short-term holiday rental market, can I, if I wanted to, stay there and rent this back from myself?
 Regards,
Scott
Hi Scott,  
The issue of whether you can rent it back from yourself is only one of the many to consider, and when you buy such a property you have to think of them all! Often the ability to get some kind of personal benefit from a property causes investors to buy property which is not in a potentially good area and which, without the benefit of the holiday option would not be a good investment at all.  
Here are some important points:
<ul>
<li>
The tax office may not see this as an arm’s length transaction if you stay there yourself and may not allow claims for that period
</li>
<li>
Paying the rent, or not receiving the rent if you stayed there free, is pretty similar and still represents a period of personal benefit
</li>
</ul>
Scott I am unclear as to why you would be doing this anyway – paying rent to yourself, presumably via the manager who would be looking after it, means you only get the net rent after management costs.
As I said earlier, the problem is that few places we would like to holiday too are actually good places to invest and a holiday unit is often amongst the worst type of property too. Therefore, doing this could mean you would end up with a bad property, in the wrong area, just for the few weeks benefit, which is not a benefit since you are paying rent anyway!
Stick to buying great properties in strong areas which you legally rent to bona fide tenants – build up a solid portfolio and soon enough you’ll be choosing to holiday anywhere you want.
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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Ask Margaret: can I rent my holiday house from myself?

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

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Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

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Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

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For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

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Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

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Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

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Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Margaret Lomas

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