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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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mlomas-KC9MUPZ6Ca

Ask Margaret: Does the first-home owners grant make it worth the risk to buy off-the-plan?

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Hi Margaret, just wondering if things have changed in the Lockyer Valley and whether it is a growth area and worth looking at from a long term investment perspective?
Answer: 
When you make that decision to invest in property, there is much more to consider than whether an expert is predicting whether an area will make a good investment, or not.
You see, working out whether an area has the potential to be a good investment is a little like asking how long is a piece of string – that also depends upon the piece of string, and who cut it in the first place. 
You must start by establishing a few things about yourself – the time till you will need to realise this investment, the personal cash flows you can afford to support along the way, and how much is your borrowing capacity.  You also need to know whether your immediate reliance will be on growth, giving you equity quickly to be able to buy more property, or on cash flow – providing enough rental return to enable you to stay in the market and make your loan repayments and meet expenses.
Some investors have plenty of equity in their own home which allows them to buy more than one property, and so they can afford to wait for growth and buy in areas which may be a little more speculative or long term.  Such areas, as long as they have the correct growth drivers, will grow in the long term and probably get pretty good rent returns in the short term. 
Other investors have no equity or little in the way of deposits, and so each and every purchase must grow immediately, or they won’t be able to add to their portfolio.  Always remember that to make money from property you need to buy more than one, and so it is important to really understand what you can afford both in terms of supporting the property financially in the short term and seeing it grow in the longer term.
Once you know this you can establish what you can afford, whether you need a higher or a lower rental yield and if you can wait until the longer term for that important growth to occur.  Make no mistake, cash flow is important but if the property never grows, it’s most likely not worth the time and effort to buy it.
In terms of the Lockyer Valley, it’s a growing area, but it’s on a very slow burn and, in my opinion, will be so for some time.  Considered the ‘salad bowl’ of Southern Queensland, there’s still quite a way to go until the population mass reaches the critical point where super infrastructure begins to be built, population explodes and the micro economy burgeons.  I have no doubt that, over the longer term this is an area which can deliver some reasonable results, but that term is going to be quite lengthy.
It’s now up to you to determine whether you can speculate long enough and wait for this growth, or whether an area with more assured growth, sooner (albeit one which may have relatively lower yields) is more up your alley.
 Have a property question?  <a href="mailto:%20&lt;script%20type='text/javascript'&gt;%20/n%20&lt;/script&gt;&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;This%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;" target="_blank">Ask Margaret!</a>
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Property market in Laidley, Gatton and Lockyer Valley: Ask Margaret 

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Dear Margaret,
My husband and I would like to build granny flat through an SMSF at our own home – is this possible to do?
Lyn
 
Dear Lyn,
This one is a tricky one. I consulted Property Success team member Ian Rodrigues to get his thoughts and talk it through.
I’m not sure what it is that you are hoping to see as an outcome for doing this. Presumably, you are thinking that you can either get rental income from the granny flat into the super and it will be an inexpensive project since you won’t need to pay for the land, or that you can ‘rent’ some of your land to the super fund for the purposes of building the flat.
The issue is, once a building is built on a piece of land, that building becomes the property of the owner of the land.  And so the super rules would prohibit this, as the asset would no longer be owned by that super fund.
In talking this through with Ian, we considered what may happen if the granny flat was one of the mobile varieties, such as those often erected in holiday or mobile home parks. In this case, the super fund would be buying the flat as ‘plant’ and you would be allowing that piece of plant to be housed on your land. Technically speaking, if this piece of plant was fully mobile and could be shifted from place to place, it may be allowed, as the super fund can retain the ownership of this piece of plant, and receive any rent it attracted.   
Keep in mind that this granny flat would not be able to be rented out to any parties related in any way to the super fund, so if you’re thinking it could be a good way to get a place for the kids or a relative, then you won’t be allowed to do this. You may be able to personally receive rent on the land you provide to park the mobile home on. I say this because if you were, say, a plumber by trade, and your super fund rental property needed a plumber, you can carry out the work and be paid for that work.  I can’t see a lot of difference between that and receiving rent for land you provide.
The best way to check if any of this is allowable is to have a lawyer experienced in super fund law to check it out for you, or get a ruling from the tax office. As with all questions of this nature, pass it by your accountant to see what they think.
Regards,
Margaret
Have a property question?   <a href="mailto:admin@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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A granny flat with your SMSF? Ask Margaret Lomas

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Hi Margaret,
I got a question regarding buying off the plan in Bungarribee region close to <a target="_blank" href="/news">Doonside</a> in NSW.
The off the plan property will cost somewhere between $550,000 to $600,000 after construction, whereas the ready to move houses in the Doonside region are in the range of $480,000 to $500,000, albiet without the first home buyer grant and without stamp duty exemption.
Is it an attractive buy from a first home buyer perspective? Does it makes sense to buy property which is valued at least $50,000 to $60,000 higher than the ready to move, relatively new houses.
And what sort of growth is expected in Doonside and the surrouding region? Additional things I am considering are affordability, community, proximity to transport, schooling and resale value after five to seven years.
Regards,
Rajesh
Margaret's answer on the next page. Please click below.
                
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Hi Rajesh,
When off the plan marketing was first established, it was a great chance for buyers to obtain under- market value properties. Developers needed to get a proportion of pre-sales in order to qualify for development finance and so they offered up to 25% of the development as pre sales, usually at the prices of the day, or less. 
Lucky buyers committed to buy and years later, when finally finished, often found they were paying a lower price for property which due to market movements was now worth more.  The developer got his finance as the bank happily provided the money on the basis of the pre-sales.
These days developers are much greedier, trying to sell entire developments off the plan at tomorrow’s prices.  The entire risk sits with the buyer who is fully exposed to many drawbacks.
These include:
<ul>
<li>
Their commitment to the sale can often mean that, while they wait for completion, a bank won’t lend to them for additional purchases, as this off the plan purchase is a commitment with no income as yet.
</li>
<li>
The market may plateau or even fall after the commitment is made, making the property worth less at settlement than is being paid (and this is actually very common)
</li>
<li>
If the property is worth more than is being paid, there is often a clause deep in the contract allowing the developer to pull out for any reason, but no such clause for the buyer, whose commitment is irreversible
</li>
<li>
On delivery, the property is often quite different in appearance than it appeared in the brochures – developers can make changes of up to 10% without voiding the contract.  You cannot be assured of exactly what you are getting.
</li>
<li>
Though the lender may approve a loan to buy the property, on completion of the building they will reassess the borrower and value the property.  If the buyer’s financial circumstances have changed they may no longer qualify for the loan, and if the valuation is less than purchase price the buyer may not be able to borrow enough to proceed.  They will not, however, be able to get out of the contact and will be sued by the developer to complete.
</li>
</ul>
There are many more drawbacks than this, and a few positives, but as far as investing goes, off the plan can be a poor choice.
While I expect that Doonside will grow at slightly above average, you’ve already established that these off the plan properties are well above current market value, up to 25%.  The market will need to grow by at last that amount in the coming two to three years for you to at least be even, and even then it will be a wasted exercise, as you are tying your money up and there should be some upside to that.
If you would like to buy in Doonside, check out what else is available first in an already established, possibly near new property.  That way, by the time these off the plan properties are completed, you may well have a few existing properties already under your belt and growing!
Kind regards,
Margaret
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 rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? Ask Margaret!
                
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I'm a first home buyer, is off the plan a good investment? Ask Margaret

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Hello Margaret, I am currently seeking (with my partner and my parents) to purchase land and put two dwellings onto it. The land we are looking at is greater than two acres with the houses approximately 200 square meters +. we are thinking sub diving but We are unsure of how to best address this and the processes involved as so many people tell you different things. Are you please able to provide us with an insight into the best was to approach this? Kind regards,
 Ian
 
Hi Ian,
Your first port of call will be to the local governing body, the council, to find out their individual policy on subdivision.  It's useful to note here that, while all local councils subscribe to their state's planning rules, each one will have different local rules surrounding what you can and cannot subdivide.  These rules will relate to the original zoning of the block, minimum lot sizes allowed, and a  whole host of other things.  For example, in some areas, apparently residential land may actually have a rural or semi- rural zoning, and this would mean that you may not be able to further subdivide at all, while in others you may be able to make this 2 acre block into two x one acre blocks, or even more. If the current zoning allows the subdivision you are after, you can commence, if it does not then you need to seek the council's advice around your chances of having that original zoning amended to allow the subdivision you want. A frank and open discussion with the local council should give you a good idea of what the current zoning is and their attitude to the plans you have for the land. Once you know what you are allowed to do, it's my advice that you contact a local town planner for phase two. A town planner will be able to clearly advise you on whether your ideas for this subdivision will progress smoothly through council, whether you face objections which may be overcome, or whether the entire idea is so far out of what is allowed that you have no hope. It's a worthwhile expense to have this feasibility study done as it could save you not only a lot of money, but time in satisfying the lengthy progress of seeking subdivision approval, only to find that your proposal is rejected. If the planner agrees that you have a hope then they will also oversee the obtaining of the required surveys, site and engineering plans. Remember that the town planner's fees will be on top of the fees that you pay each of these independent contractors. I have found that town planners usually know the rules intimately, and many have previously worked for council, so they are in the best position to develop a proposal with the greatest chances of success. I want to point out that the costs of subdividing are rarely accurately able to be forecast - in other words, whatever you think you will pay for all of this is likely to be so far below what you will actually end up paying that you will be surprised and possibly a little stressed out by the resulting project cost. These potential costs include, but are not limited to: drainage and sewerage, connection of services, access driveways if they are needed, cutting and levelling to prepare the site for building, potential retaining walls, connection of services, drafting fees, application fees, surveys and reports, environmental studies, permit fees, council contributions... the list goes on.  You will need to fund all of these costs yourself, and it's likely that such fees cannot be included in any bank loan you plan to get for the construction. My advice is to prepare a complete list of all possible costs with the guidance of the town planner, and then add at least 20% to the bottom line. You should also include what you believe to be the total costs of building the houses - and don't go by the advertised prices of houses built by the major project home builders.  My recent experience with this saw a property with an advertised price of $290,000, which purportedly included site costs, end up at a final price of $450,000, and this did not include much in the way of upgrades to the tile allowances and basic provisions - in my opinion project home building is a total rort that you only discover after you have signed the contract. If you can get a good understanding around what the homes will cost you to build, and add this to your projections on the subdivision costs, you'll then know if all the headaches of subdividing are actually worth it in the end. Being forewarned is being forearmed, so it's well worth your time to spend a great deal of time figuring all this out before committing to the deal. Have a property question?     <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Ask Margaret: The key to purchasing land

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Hi Margaret,
If I put a deposit to buy a house before the new financial year, can I claim it this year tax time or is it to late to buy? Also, is it greedy to buy our 4th house in 7 months?
Regards,
Thor
 
Hi Thor,
To answer this question we must first work out what can and cannot be claimed against your tax. The deposit on a house is not a claimable item. The costs you incur when you buy a property are able to be claimed, but each item is treated differently.  For example, all buying costs such as legal fees and inspections form part of your cost base, and serve to essentially reduce your payable capital gains tax when you sell, rather than provide an immediate deduction.  Borrowing costs are divided up over 5 years (or the length of time you own the property if less than 5 years) and claimed at the end of the year. I think you are really asking me whether the interest on the deposit is claimable, and the answer is no, for two reasons.  The first one is that any deduction you claim against your income is only available on an 'income producing asset', an at the stage where you pay a deposit, this property does not produce income, for you.  The second one is that the deposit does not denote a transfer of ownership, and so you don't legally own an income producing  asset against which you are allowed to make these claims - the present owner does however, and they are allowed to make those claims right up until you settle the property. As to your second question, it's not greedy to buy your fourth property in seven months, but whether it is wise to do so is an entirely different thing.  You need to ask the following questions: 
<ul>
<li>Do you know your personal risk profile and whether this number of properties is consistent with that?</li>
<li>Have you had an independent, professional investment plan prepared for you by someone who is not trying to sell property to you?</li>
<li>Have you analysed your capacity to meet your current debts and property costs should interest rates rise?</li>
<li>Have you ensured that you have diversified your property portfolio across a number of markets? Some of our markets (namely, Sydney) will likely enter a protracted period of stagnation after this present frenzy, so you don't want all of your properties to be in such a market?</li>
<li>Have you considered your financial future - is there any upcoming changes which may make a larger portfolio create extra stress on your finances?</li>
</ul>
You should not simply buy a property every time you feel like it, or each time the bank offers you more money - instead, your acquisition of property should be part of a carefully articulated plan which considers all of your personal financial circumstances, investing time horizon and risk profile.
Have a property question?  <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Ask Margaret: Is it greedy to buy our 4th house in 7 months?

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 Hi Margaret,
I was looking at getting into property investment this year and my mother is retiring and plans to sell her older place for something easier living.
She currently likes where she lives so we are considering an option, if feasible, of me buying her current place to rent out and then she could build a modest seperate house at the rear of the property.
Apparently the zoning allows for this but not for a full subdivision (only 790m2) in Queanbeyan, NSW.
My question/s are, would setting up a strata be the best option? I still want an option of being able to sell one property in the future if needed. Who would I speak to and how do I go about setting something like this up? Or is it just too complicated (tax/titles, etc) for everyone involved.
Thanks
Kris
  
Hi Kris,
There is certainly a lot to consider when thinking about not only buying an investment property, but also carrying out a subdivision. So, let me tackle your question one section at a time:
1. You buying your mum's house.
While I think it is a very noble thought assisting your elderly parents in this way, I want to be sure that your own personal circumstances are well take care of first. If you have a sound retirement plan and feel that you are set up for your own retirement (so that you can make choices in retirement without depending upon your own dependents to assist you), then by all means, take this step to assist your mother.
However, if you are not, then you must seriously consider whether you would otherwise purchase a property like this one as part of your own investing strategy.  Thinking that any property, anywhere is suitable to start an investment portfolio is a trap which leads many to owning property which does not perform over the long term and which provides lackluster rental return.
So, to start off with, ask yourself the question "If this were a property advertised on a real estate website, would I be interested in buying it?'. To answer that question, you will need to carry out the same extensive research that you would on any area to ascertain the existence, or absence of suitable growth drivers. You also need to consider opportunity cost - if you bought this property, what is the opportunity cost of having bought somewhere which may have a better short term prognosis for growth than this area.
2. Subdividing
You say that this property is not eligible for 'full' subdivision, but a strata titled subdivision is a full subdivision. When you subdivide, you will do so either as a Torrens title (Green title in WA), a strata title or any number of other titles such as community title etc. All of them are full subdivisions and must satisfy both state planning rules and local authority subdivision requirements. Very often property investors underestimate the financial and time costs of subdivision – you will face architects fees, planning fees, engineers costs, labour costs if the subdivision requires any works, council contributions, fees and charges, titles office fees – the list goes on and on.  Far from gaining a free block of land when you subdivide, very often costs can run to tens of thousands of dollars and sometimes hundreds of thousands. You must be able to come up with these funds up front, since they are costs which cannot be financed unless you have other property elsewhere to offer as security. Often investors so underestimate these costs, and the time involved, that they are left disillusioned, exhausted and out of pocket by the end of the process.
If this property does not qualify for actual subdivision, you may be talking about the ‘Granny flat’ option available in NSW. This means that as, as long as the property is more than 450 sqm you may add a second dwelling to the property and this can be rented to anyone. Permission to add a granny flat bypasses normal planning rules and is approved within 10 days. The only issue here is that there is still only a single title, and so you cannot sell one property without selling the other. The decision to add a granny flat to any property brings its own issue – will it add or subtract value? Will it make it harder or easier to selling the future? Will it be harder to rent out the main house with a second dwelling in the backyard?
3. The Financials
When your mum sells the property to you, she wont pay any tax as it’s her own home.  When you buy it, you must pay stamp duty on its full market value, even if she sells it to you for less than that. When you rent it to your mum, you must rent it for the full market rent or you may not be able to claim full deductions, although you can give her a discount if you don’t have to pay a property manager or do some of the other things nornally associated with earning a rental income. 
Your first port of call should be to a local town planner. They should be able to give you an idea of what kind of sub division is allowed and also outline the kinds of costs you would be looking at.  Then ask a builder to quote you for the new build – complete to occupancy so you get the full idea of the costs involved.  Make sure the town planner you use has previously worked with council or otherwise is fully conversant with local government and state planning rules. Once you have a fair idea of the costs, add 20%, because in my experience this is the amount that the budget of a development usually blows out by.  And lastly, compare all of this to what it would cost for your mum to simply sell it to someone else, buy a unit somewhere which is ready to move into, while you look all over Australia for the next hotspot and invest there.
</div>
<div>Have a property question?    <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a></div>
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Ask Margaret: Can subdividing make for easy retirement living?

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Hi Margaret,
With banks now restricted to only 80% LVR do you think this will significantly affect prices? I have two properties in Sydney. Both are renting for $450 per week
Before this announcement one was probably worth at least 800K (house on land 873sqm) and the other at least $500,000.
Do you think it's worthwhile seeing the yield is so low for my Canley vale property to sell it and buy 2 properties in Brisbane where the yield could be higher and I'll have two more properties despite losing 1?
Would this be still worthwhile seeing I have to pay capital gains tax (purchased 7 years ago for 446K) and taking into account all buying and selling fees.
I have considered more on using buyers agents as maybe they are not all spruikers.
Regards,
Allen
 
Hi Allen, 
Firstly we must make clear that the banks are not technically restricted to only lending 80% (it's not law), and the new, tougher criteria being set by some banks is only targeting investors, with owner occupiers mostly not affected. In response to The Australia Prudential Regulatory Authority's (APRA) calls for stricter controls around investment lending, banks like NAB and CBA have announced an end to pricing discounts for investors. ANZ have done the same, unless you have a PPR mortgage with them as well. Many lenders are also changing the maximum Loan to Valuation ratios (LVR) that they will allow for investors. As an example, BankWest will now apply a maximum LVR of 80% for all investment purposes (property and shares). This means that you will still be able to access funding at higher LVRs if you're an investor, you'll just have to pay for it with an increased interest rate, or, more to the point, no access to the discounts which can usually be obtained if you negotiate well enough. It's my opinion that this won't have a big impact on property prices, instead landlords will simply raise their rents to make up for the difference in their cash flows which the loss of these discounts will cause. We have to remember also that it's simply not suitable to say we are in a boom in the property market - I am sure the people of Adelaide and Perth would be quite surprised to hear they are in a boom, which making such sweeping claims infers.  We should hope that this inappropriate move by lenders doesn't impact the property market, as many areas can ill afford anything else to stunt growth. In terms of your property, I believe that, with or without these moves, people holding Sydney property may well find that the values stall a little in the coming 18 months anyway.  The market has overshot the mark, with frenzied buying pushing prices up well over the intrinsic value of properties in many areas. When that happens and the market cools, as it always does, the values seen in the last phase of that boom often suffer and fall back a little.  In your case you'll still be fine, as even with an adjustment in values, you've still made a really good gain. While I believe that the Brisbane market is likely to run soon, that's not advice to sell what you have in Sydney.  You could be up for a hefty capital gains tax bill which will eat into the returns.  It can be better to instead leverage against the equity and hang on to property you already have, choosing to sell it at times when you know you will be in a lower tax bracket, such as when you have left the paid workforce. 
As you have bought in to these areas while prices were a lot lower, I'm sure that your yields are pretty good, for you.  Yield relates to what you paid for the property, not what it is worth, and as the property has gained so much value, you should be seeing a pretty good return on that initial investment. In terms of a buyer's agent, just make sure that, if you choose to use one, they are a Qualified Property Investment Adviser (with the Property Investment Professionals of Australia) and that they have a broad based knowledge of all markets in Australia. 
You want your adviser to be helping you to buy property in the best area at that moment in time, not just in the area where they personally happen to be active. You should also become as educated as you can about everything to do with investing (not just where to buy) before going any further. In my experience, those who take the time to become suitably educated first usually make better and more lasting choices and build stronger, better performing portfolios.
Have a property question?   <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Ask Margaret: Will bank LVR restrictions affect prices?

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Hi Margaret,
Can I move out from my own unit and rent a bigger place to live and claim my unit as an investment unit?
Kind regards,
Ramin
 See Margaret Lomas' answer on the next page.
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Hi Ramin,
You can move out of your principal place of residence, rent out your former home and claim all expenses and interest costs as a tax deduction as soon as it becomes available for rental, and as long as you also declare the income you receive. 
If you don’t have another property that you can apply your principal place of residence exemption to (for example, if you rent where you live) then you can have up to six years exemption from capital gains tax too, at the end of which you will need to either move back in, or sell.
Whether you should rent it out or not is another thing entirely.  Here are some things to consider:
<ol>
<li>If the loan on your home is presently quite low, and the one on any new family home you intend to buy is larger, then potentially you might be upside down from a financial perspective.  As your own home is non- deductible, then the interest repayments might be a high, non- deducible amount while those on your newly created investment property would be low, and a taxable profit situation may result. In this case it may be better to sell the family home while it is still capital gains tax free, use the proceeds to buy your new home with a low loan, and then use the equity to get a fully deductible loan to buy an investment property elsewhere. 
</li>
<li>It’s rare that people happen to live in an up and coming hotspot – therefore keeping the current home may not be the best investment.  It’s easy to think that you live in a great area but the reality is that it might not have the fundamentals required to perform well from both a yield and growth perspective.  Therefore, keeping it becomes an opportunity cost or not buying a better investment in a better performing area. 
</li>
<li>It can be very difficult to watch a tenant move into a home that was once your pride and joy.  It’s a fact that it simply won’t be treated how you want it to, and your emotional attachment may make you a bad landlord!</li>
</ol>
I have rarely seen the best option being to keep a former Principal Place of Residence. At this stage you need some good advice from a qualified property investment adviser who can help you make this decision as a part of a complete strategy which considers all of your financial and investing needs, rather than just this single, short term decision.
Regards,
Margaret
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Ask Margaret: Can I claim my unit as an investment if I move out?

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Dear Margaret,
I wonder if you can help I don't really know we're to start, we live in South Australia and my mother wants to transfer her home over to me.
 I have been living and caring for my mother for 16 years after my father died. What would be the cost to transfer the house to me? What do I need to do?
Ellen 
Dear Ellen 
When someone thinks of property and tax, they normally think about the relationship that those two have for investors, and the impact of taxation rules on property investors. 
However there are many aspects of tax law which become applicable to owner occupiers or owners of property which are not rented out which are often overlooked. This can create a real tax nightmare at a later date.
It may seem that transferring a home into the name of a child is a simple matter, however it can have far reaching consequences which must be thought through before it occurs.
The first consideration is stamp duty. Where a family transfer occurs, the only transfer which is exempt from stamp duty is between spouses.  Generally, a transfer from a parent to a child will attract stamp duty, levied on the market value of the home, even if no money changes hands on the transaction.
The second consideration is tax.  While there is no tax to pay on this transfer, since it was your mother’s principal place of residence, in some cases of family transfer, where the property was an investment property for the parents, capital gains tax responsibilities can pass to the child along with the property.
In your case, being in South Australia, the transfer of the property will attract stamp duty pursuant the Stamp Duties Act 1923 (SA). As you are receiving the property, this must be paid by you. The stamp duty payable on the transfer will be charged ad valorem, which means that it will be charged based on the market value of the interest transferred. So the amount of the stamp duty payable will depend on the value of the property.
You can get a lawyer to draw up a document which allows this transfer – a contract for sale should not be necessary, and that lawyer can also arrange for the transfer.  So, in addition to paying the stamp duty, you will pay for the legal costs of both drawing up the agreement to transfer the land plus any government and statutory charges applicable in your state for the title transfer.
Have a property question?  <a href="mailto:%20&lt;script%20type='text/javascript'&gt;%20/n%20&lt;/script&gt;&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;This%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;" target="_blank">Ask Margaret!</a>
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Transferring a property to a sibling: Ask Margaret

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]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
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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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