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Hi Margaret,
Is stamp duty payable on a transfer of real estate from father to sibling or vice versa?
Please help. What would be the best way to do this transfer?
Regards,
Neville
Margaret's answer is on the next page. Please click below.
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Hi Neville,
The answer to depends upon which state you live in.
For example, if you live in NSW and the property is located there, then the stamp duty which would apply will be the same amount that you would pay were you to buy the property.  This means that the property must be valued by a duly qualified person and then stamp duty is assessed on the basis of this valuation. 
You will also have the costs of a solicitor or conveyancer, who must still have the property conveyed to you and so will charge you for that in a similar way to how you would be charged if it were a purchase.
Where property is transferred between family members, it's theoretically possible to transfer property using a 'transfer' form and without going to the expense of having a full contract for sale prepared, with appropriate disclosure documents such as title searches and council zoning certificates. You may prefer to use the usual contract for sale however, as this will protect all parties to a greater degree.
In some states there may be an exemption for transfer between family members, although this usually applies only to spousal transfers.  Depending on the nature of the real estate some exemptions may apply - property used for primary production (family farm) may be exempt and other real estate might have some exemptions depending upon the circumstances around the transfer.
Also be aware that, depending upon the nature of the property for your father (for example if it was his investment property), there may be capital gains tax to be paid.
I find the offices of state revenue in each state are very helpful, so you should give them a call and discuss your personal circumstances.
Kind regards,
Margaret
Have a property question?   <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Do I need to pay stamp duty if I transfer a property to a family member? Ask Margaret

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Hi Margaret,
My wife and I are considering building a duplex on the Sydney residential block where we currently live in our principal place of residence. The loan on the home is in my wife's name only and the balance of the mortgage is held in cash in the offset facility.
Our plan is to borrow to build the duplex, live in one and use the rental income from the other to pay down the loan and keep them both. We would both like to be signatories on the new loan. From a gearing perspective my wife is most likely to be the highest salary earner over the life of the loan.
My question then is what would be the best way to refinance/restructure the loan to minimise our tax liabilities? Alternatively, who would be the best person to approach for advice on this matter? Our accountant? Taxation specialist? Mortgage broker?
Margaret Lomas' answer is on the next page. Please click below.
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You will need to check with your accountant for your own individual circumstances, but I would suggest that he or she will most likely advise you that, for tax purposes, the land owner ( your wife) is treated as the recipient of all income / deductions including interest.
You have not specified if she is the only one of the two of you on the certificate of title - if so then only your wife gets the deductions. If you are both on title, but the loan is only in your wife's name, you need to check on her deductibility status, as I would suggest that the entire loan may not be deductible if only half the property is hers.
The name on any loans is irrelevant - except in regards to providing the security for the debt - as it is treated for tax as "on lent". I always tell people to be very careful when they structure their loans as the bank may not be giving the correct advice, or any advice at all in regards to structure. 
The bank will notoriously protect themselves by seeking commitment from both parties (where there is more than one) even where both parties may not be on the title, and this can really play around with your ultimate deductibility. 
I would have to say that when a new client comes to my company, Destiny, eight times out of 10 they have the wrong structure in place.  At times this can be fixed, but at others it cannot, and the best we can do is ensure that going forward, all is correct!
With regard to the new loan for the duplex, you must have your accountant correctly establish the relationship between the current debt in your wife's name and the present property, which is your Principal Place of Residence (PPOR). This is because the portion of the end debt which relates to the PPOR will not carry any deductions, while any portion of the debt relating to the new part of the build will be if it is income producing.
In relation to obtaining that new debt for the build, I am not sure why, if your wife will be the higher income earner, you wish to have this new loan in both names.
The highest income earner brings the highest deductions, and therefore the property and loan is best placed in that person's name, as long as you expect this situation to continue. In any event, even if you do use both names on any new debt, this won't change the fact that the title is in her name and so the deductions are hers.
You can only change this if, prior to undertaking the project, you essentially buy half of the property off your wife. You will pay stamp duty on half of the market value of the whole property, even if she sells it to you for a nominal amount.
I am not sure where you live, but in some states (such as Victoria) you can make a transfer of title by way of 'love and affection' and avoid this stamp duty - so check with the office of state revenue in your state.
When you do rent out the new property, be careful how you manage the rental income to pay off your personal debt.  he tax office does not like you to capitalise interest on an investment debt, and it will be critical for you to get proper tax advice appropriate to your personal circumstances before undertaking any rapid mortgage reduction strategy.
At the end of the day, always check with your accountant before making any move at all. 
Well-meaning mortgage brokers and banks are not usually able to provide you with the right kind of guidance in this very complex area. 
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Ask Margaret: How can I restructure my loan to minimise my tax liabilities?

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Hi Margaret,
I have an interesting issue relating to a property my wife and I are renting. The property is in fact two separate units: the down stairs is a commercial premises where my wife runs her hair salon while upstairs is a separate residential unit. We live upstairs and pay separate rent on a separate lease for this property.
This is where it gets murky. The landlord is demanding my wife pay the full rates for the premises. As I understand it, my wife is responsible for the rates on the commercial premises below, but not the residential domicile above. The landlord refuses to get the property registered as two separate units and as such is demanding we pay all the rates.
The entire building is on one single water system, making calculation of bills nigh on impossible as well but interestingly upstairs has a separate electricity and gas supply to downstairs. Surely this would be indicative of a separate property.
The landlord is a solicitor and is using a bullying and brutish attitude to try and brow beat us into submission. Her attitude it would seem is that because neither of us has the legal acumen to rebuke her demands she can just steamroller over us. I'm hoping you can point me in the direction of the relevant legal statutes that would help us fight our corner.
Read Margaret Lomas' answer on the next page.
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I have taken a while to do some research for this question, including seeking some advice from my friend Rob Balanda, who is a QLD property lawyer.
You say that:
"The property is in fact two separate units: the down stairs is a commercial premises where my wife runs her hair salon while upstairs is a separate residential unit. We live upstairs and pay separate rent on a separate lease for this property."
This means that you have two leases in place – a commercial lease for the hair salon, and a residential lease for the unit above, in which you reside.
While it is important to point out that each state has its own Tenancy Act, they do share some commonalities and these commonalities most likely relate to your current problem.
Generally speaking, a commercial lease requires that the tenant pays all outgoings, including council rates, which is currently occurring for you.
Again generally speaking, a residential lease requires that the landlord pay all council rates, and not the tenant.
When it comes to the water rates and usage, a commercial lease requires the tenant to pay both, but in a residential lease the landlord must pay the water rates while the tenant pays the usage.  Note that the way usage is dealt with is different in each state, so you should check with your Department of Fair Trading to see how they are dealt with in your state.
As your water usage is shared and not seperately metered, things are a little tricky.  In QLD, this is what the Tenancy Act has to say:
Residential Lease
If the residence is not individually metered, the tenant can be made to pay water consumption charges for the premises only if:
(a)  the tenant is enjoying or sharing the benefit of a water service to the premises; and (b)  the premises are individually metered for the supply of water or water is supplied to the premises by delivery by means of a vehicle; and (c)  the agreement states that an amount for the water consumption charges for the premises is payable by the tenant.
However, the full cost can only be passed on to the tenant if the premises are "water efficient" - this being where the premises complies with water efficiency requirements under regulation.
In your case this is going to be difficult, as you won't be able to determine which portion of the usage is for upstairs, but it could be a moot point anyway if you live in a state where all usage is the responsibility of the tenant.  The landlord does, however, have to pay the water rates on the residential part of this property, and could be asked to determine a fair way to separate these out so you, the residential tenant, do not pay.
Note that it is not the zoning which determines the treatment, it is the basis for the lease.  Therefore, the fact that your home is not a separate unit matters little if you have signed a residential lease.
You should contact your state Department of Fair Trading and seek some advice about this.  In my experience they are very helpful and they will be able to act for you to establish a fairer system with this difficult landlord. As a lawyer you would expect her to know the law, but this is not always the case.
 
 
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Ask Margaret: Can my landlord make me pay the rates for my residential unit? 

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Hi Margaret,
I was reading one of your articles. 
I'm wondering: Say I purchase my first property but don't live there. Instead, I rent it out for income. Say 10 years later, when I sell this property, how do I avoid paying Capital Gains Tax (CGT) - assuming this is my only property in the next 10 years?
What would happen if I make deduction on the interest of the loan, or do not making any deduction at all? Is the latter legal, from the ATO's point of view?
Thanks. Wesley
To read Margaret's answer, click below.
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When you own, and occupy, a home of your own, you may claim a 'principal place of residence' exemption on that property.
This means that, when you sell the property, you will not pay any capital gains tax on any gain you have made.
Further, if you move out of your principal place of residence (PPOR), you may rent it out, and claim any related tax deductions, for a period of up to six years and, as long as you either move back in, or sell it, before those six years are up you also will not pay any CGT. The only catch is that, during this 6 years you cannot own another property on which you would like to claim the exemption – you can only claim one exemption at a time.
The operative word here is 'own and occupy'. If you buy a property and you do not move into it as soon as it settles, then the property is not considered to be your principal place of residence until such times as you do move in, regardless of whether it is the only property you own, or not.
While you can move in at any stage and make it your PPOR, thus invoking a potential six year rule exemption at a future date when you move out, the fact that you did not live there from the moment you owned it changes a few things. You have to keep all of your records accurately on everything you spend, and then when the time comes to sell, your CGT liability must be worked out proportionately for days rented/days not rented.
Your cost base would be the cost base as at the date you bought it and then the gain is apportioned after the six year period is accounted for.
This can easily be overcome, as long as, when you buy the property, your intention is to live there and you move in when you settle, thus establishing the property as your PPOR. 
If, at a later date, your plans change and you move out, the six year period can commence, and your cost base for CGT would be the value as at the date the 6 years expire, if you don't move back in.  You can reset a new 6 year period at the end of the first by moving back in for a time.
Note that the tax office does not prescribe how long you have to stay there on either occasion – it just has to be your intention to live there and you must move in.
 
 
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Ask Margaret: How can I avoid CGT if my first home is an investment property?

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Hi,
I'm thinking about purchasing a property that has been built in underneath with no council approval. The problem is that it is a high set home on recently flood zoned area of <a href="/news">Logan</a>. My question is, is it still possible to get building certification for lower levels in flood areas or does the council never allow it?
Margaret Lomas' answer is on the next page. Please click below to continue.
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When you own a house or unit in any local government area, it is your duty to ensure that the building codes provided by the state department of planning, and administered locally by the council's own planning departments, are adhered to. 
This also means that, if you make any changes to a property which has previously been approved as compliant, you must first ask council for permission to make such changes.
These rules exist for many reasons - to ensure that an area remains aesthetically pleasing, to provide safe living environments for residents, and to protect the environment itself. If you have ever visited a country where there is no building code, and seen how the residential areas look when people build whatever they like, you will better appreciate these rules! 
You will also know that when a natural disaster strikes, the loss and injury caused is far more catastrophic, often due to the unsafe nature of what has been built and the overbuilding of those areas.
And so to your dilemma. You are thinking of buying  property with an unapproved alteration, and you should know that the council is within their rights to ask you to revert it back if they so desire. If the council feels for any reason that the alteration contravenes the current development rules, or in any way poses a risk to the surrounding community in the event of a flood, then they will ask you to revert it. 
You should check the flood maps available on the Logan City Council website, and see if this property falls within a flood zone. If so, your chances of having this alteration retrospectively approved is next to none, and the chances of being asked to remove the alteration is in play.
You should ask the current owner to either have the alteration approved prior to your purchase, or provide a letter from the council attesting to the fact that the alterations do not contravene any planning rules, and would be otherwise approved if you submit a development application. Then, as soon as you settle, take the steps to have the alterations approved to remove any future doubt.
 
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Ask Margaret: What happens if I buy a house with an unapproved alteration?

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Hi Margaret,
I am currently working full-time earning $875 per week after tax. I want to buy a franchise coffee business that is about $500,000 inclusive of everything.
If I buy a property and build a duplex, strata subdivide and then sell one for $600,000 and keep the other, can I use that money to invest in the coffee business?
Or does that $600,000 need to go back to the home loan repayment?
Assuming: 
<ul>
<li>Purchase price of property - $650,000</li>
<li>15% deposit no mortgage insurance - $97,500</li>
<li>Construction loan - $450,000</li>
<li>Total loan - $650,000 + $450,000 - $97,500 = $1,002,500</li>
<li>Repayment (5%) - $4,062 per month</li>
<li>Rental income from one half of duplex ($450 per week)</li>
</ul>
Kind regards,
Daniel
Margaret's answer on the next page. Please click below.
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Hi Daniel,
Regardless of what you intend to use the money for at the end of your project, when you borrow from a bank to purchase or develop residential property, you must at all times have in place enough security to cover the outstanding balance of the loan in the proportions required by the maximum LVR allowed.
In your case, you are after a 15% deposit loan ($85% loan). So, when the time comes to sell one duplex half, you must pay back enough of the original loan to ensure that the remaining loan does not exceed 85% of the remaining security.
In your case, if you ended up with two duplex halves each worth $600,000 and you sold one, the remaining security value is $600,000. This means the maximum loan you can have outstanding, at 85%, is $510,000.  If your loan was $1,002,500 you would have to repay $492,500.  You can keep the remaining $107,500.
Having said that, it’s probably not going to be so straightforward. 
Here are some things to think about:
<ol>
<li>Developments always cost far more than people realise.  Subdivision alone can run to more than $100,000 by the time you add a driveway and or even begin construction.  There are many costs and council contributions that people simply never think about that can blow out a development and mean that you don’t make any money or worse, come out behind the eight-ball. 
</li>
<li>When you sell you will pay capital gains tax at your highest marginal rate of tax.  If you sell inside 12 months, you pay CGT on the full gain.  So, let’s say the gain after allowable costs is $100,00, and you are in the 45% tax bracket, you pay $45,000 CGT.  If it is more than 12 months, the gain would be halved to $50,000 and you would pay $22,500. 
</li>
<li>When you sell a duplex, you will lose its rental income and when you start your coffee business you will be considered a new business. This will change your borrowing capacity – in fact it will probably be two years before you can borrowing anything.</li>
</ol>
I gather you are thinking of being able to put in place this loan now, while you are working, and then use the funds once you sell the property to provide a home loan rate loan for the business.  Unfortunately you won’t be able to achieve this.  Some lenders will, however, provide franchise finance and include a fit-out loan too, so this is the pathway you are better going down. 
If I may observe – starting a new business takes a lot of time and effort and I am not sure you want to complicate that by also taking on a development of this type.  Simplify your life by concentrating on one project at a time! 
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Can I use the profits from a duplex development to start up a new business? Ask Margaret

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Hi
There is a property I'm interested in is going to an auction while I'm travelling interstate. What's involved in engaging a professional to bid for us and sign the paperwork on our behalf?
I looked into a few buyer's agents but they were after 1% commission, which I believe is way too much just for bidding on the day. I have done my own research so don't need this as part of the service it's purely the bidding.
Also what's involved in signing the paperwork if we are not physically present, could this be done electronically or via fax?
Thanks for your assistance.
Regards
Katie
Margaret's answer is on the next page. Please click below.
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Dear Katie,
Having someone else bid for you on auction day is becoming more and more common these days, with people either telephoning in bids and having them presented by someone else, or appointing someone else to bid for them either in their presence or when they cannot attend the auction themselves.
In your case, you have done all of your research and so you should find someone you can trust to attend on the day and make the bids.  Depending upon how skilled you think they may be, you might want to phone your nominated person when the auction starts and make the bids yourself, using that person to simply present your bids.  If you are not available to do this, be sure that you carefully coach the person on how much you would like to pay and what your upper limit is.
While you can appoint someone else to bid for you, be careful when it comes to signing on your behalf. Although there is a nominee clause in all contracts, this can result in double stamp duty being paid when the contract passes from the nominee to you, and this can be very expensive.
The person bidding on your behalf must give the auctioneer written authority from you before the auction starts. You will need to furnish them with a letter which includes your name, address and details of proof of identity, such as your driver's licence or passport.
It also needs to contain an acknowledgement that the person on whose behalf bids are made has been given a copy of the conditions that are applicable in respect to the sale, and has seen a  copy of the contract.
If your bid is successful, and depending upon the state you are buying in, either the auctioneer can sign the contract on your behalf, or you may wish to have a power of attornery granted to your representative prior to the auction.  In some states a power of attorney can be 'limited', where you provide a power of attorney for a single instance, such as bidding at a particular auction.  These powers of attorney forms can usually be downloaded from the internet from the government department in your state.
Kind regards
Margaret
Have a property question?  <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Should I hire a buyer's agent? Ask Margaret

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Hi Margaret, 
What would be your thoughts on ways to mitigate the risks involved in hotspots? 
One such example would be Gladstone which has good strong fundamentals but is now experiencing oversupply.
The reason I am asking is that while a location is flagged as having good capital growth and yield,  I believe it is also important that I protect myself against overzealous developers who contribute to oversupply.  I am sure the above happens to many locations too.
Assuming that I've bought in a hotspot before a majority of the building stocks are dumped into the market, I might still be experiencing long periods of negative growth in a solid location when that happens.  I would be losing money if I sell out, but holding it would be extremely "painful".    
Thanks,
Adelyn
Article continues on the next page. Please click below.
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Hi Adelyn,
The first thing we have to sort out here is ‘what is a hotspot’. 
Here, you say that Gladstone is an example of a hotspot. In reality, Gladstone is an example of an area that some property experts, and many property spruikers, have said is a hotspot. But is it?
In my opinion, no, but then again, this is just my opinion, and it will (often) be different than others.  I personally define a hotspot as an area which possesses an abundance of growth drivers, the capacity to experience ‘generational’ growth (where growth occurs steadily throughout an entire generation), a limited land supply, and very few people buying there as it has yet to be discovered and pillaged by the experts.
Growth drivers include things such as diverse employment opportunities, significant infrastructure development, low land supply and a population growing faster than the national average.
If we compared Gladstone to that description, it comes up wanting, and for that reason I feel that Gladstone does not qualify to be called a hotspot.  Instead, Gladstone is a speculative investment which requires precise market timing, both in and out. 
There are significant drawbacks attached to areas such as Gladstone – the single industry employment (mining), the itinerant and unstable population, the existence of too many developers selling properties at prices which bear no relationship to intrinsic value, to name a few. 
<a href="/expert-insights/the-tenant-in-my-mining-town-investment-has-done-a-runner-ask-margaret">Investors with money to lose who are willing to gamble </a>can make money in such a market but they must accurately read the micro economy to establish when to buy and when to sell. 
Ordinary investors attempting to create a sound portfolio which has an identifiable time frame (as in they know when they are likely to want to exit) should not be considering investing in such volatile markets where the fortunes are linked to an industry which is completely governed by the world economic situation.
The other thing to remember is that the word ‘hotspot’ these days seems to apply to the areas being written about by the ‘experts’. 
I can assure you that if it is being written about, you are far too late to be buying there. Thousands of people are reading the same report as you, and many of these will attempt to jump into such a market, at the same time.  This creates an upward pressure on prices and seems to justify that the area is actually a hotspot after all!
It’s a little like insider trading for shares – let the word out, everyone buys in and makes it look like the share is good after all, when in fact it is the market pushing up the price, not the underlying value.
The best way for you to be sure that what you buy is actually a sound investment, with the capacity to perform year on year, is to learn how to choose the right area yourself. 
In this world of instant gratification and busy lives every one wants someone else to do it for them - tell them where to buy, find a property for them, or worse, sell a property to them.  This is the best way to set yourself up for a poor or inappropriate buy which performs less well than  you would have liked and leaves you vulnerable to market falls. 
Learn what really makes an area perform for the long-term, and you’ll be able to scour the country and choose areas which are pre-hotspot, long before you read about them in the magazines.
Regards, 
Margaret
Have a property question?  <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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What are the risks involved in buying in a 'hotspot'? Ask Margaret

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Hi Margaret
I'm buying my first home in Melbourne and I am worried about how this will effect my investments later if I borrow at 90%.
Does it matter, or should I be saving for longer or buying cheaper?
Ive been told that I should buy as soon as I can even if it means LMI?
Regards,
David
Margaret's answer on the next page. Please click below. 
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Hi David,
I always wonder who is doing the telling when investors say ‘I have been told to…’ 
Very often it is either someone wanting to sell you something like a property, a loan, or a training program, or a well-meaning friend who may have done some reading or been to a course. Or it could just be that they did whatever it is they have been told to do and experienced some success from it.
The important thing about any property investing strategy is that there is simply no one size fits all approach. 
When it comes to the level of gearing you should be undertaking, there are many things to consider such as:
<ul>
<li>Your personal risk profile – are you conservative, balanced or assertive? Your results from profiling your risk will determine the level of gearing you should use.</li>
<li>Your time till retirement – if you borrow 90% and it all goes horribly wrong, how many more years of earning capacity do you have to get back on top?</li>
<li>Your present income levels – if your property experiences vacancy and you have high levels of debt, can you maintain the mortgage?</li>
<li>The security of your job – if you are unsure about your tenure then you will not want to be taking on high levels of borrowing.</li>
<li>Your other assets.  If you have little in the way of other assets, a 90% loan can be a big mistake.</li>
<li>The lender’s mortgage insurance – at up to 3% of the loan amount, this will further reduce your equity to a very risky 7%. Add stamp duty and borrowing costs and you will likely owe more than your property is worth.</li>
</ul>
One of the things I find about proponents of high levels of gearing, such as a 90% loan, is that their thinking is what I call ‘good time’ thinking.  They operate out of a misplaced notion that property will always go up and that it will only be a matter of time before your equity increases. 
Nothing can be further from the truth and, in addition to the fact that there are many moments in times past when property has indeed fallen (such as after a crazy period of buyer frenzy such as we have been seeing in Sydney), there is a good chance tha, as a first time investor your first property may well perform far less well than you had hoped. 
You are new to this and your first property purchase brings with it the greatest risk you are likely to ever have of choosing badly, not doing the research well or falling prey to a spruiker who sells you something with an upside bigger to him than it is to you!
There are many things you can do from here, including saving more, biting off less with a cheaper property, or maybe even seeing if your parents are interested in helping out a little by offering a little bit of their equity to get you started. 
Whatever you do, don’t try to do it alone.  Get some good quality advice from someone with no vested interest in what you are about to do, and get educated before you start.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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What level of gearing should I accept for my first investment? Ask Margaret

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Hi Margaret,
I bought a unit in <a href="/news">Emerald</a>, Queensland and the tenants have done a runner.
Vacancy rates are now high, with minimal chance of getting someone to lease out our two bed unit.
Do you know of any mining or corporate contacts to help, the real estate agents are at a losss and have run out of ideas.
Do you know when some of the anticipated nine mines might start construction stage?
Regards,
Peter
Margaret's answer on the next page. Please click below. 
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Hi Peter,
The biggest issue when buying property in a mining town is, and has always been, getting the timing right.
When you invest in property anywhere, property price growth is always driven by a range of factors:
<ul>
<li>Demand</li>
<li>Availability of land</li>
<li>Growing population</li>
<li>Provision of the services to support that growing population so that people don’t move away</li>
<li>Suitable infrastructure planning and provision</li>
<li>The existence of diverse employment to ensure that, if any one industry suffers, residents can easily retrain and transfer to another without having to leave town.</li>
</ul>
All of these factors rely on one another to create the right kind of economic underlay.  Where any one of the above factors is absent,  it becomes like the missing link which then upsets the entire chain and makes it weak.
Where mining towns are concerned, virtually every one of the factors which drive growth are constantly at risk of being impacted in some way.  For example:
<ul>
<li>Mining towns with fly in, fly out workers tend to have weak underlying economies as the money earned by workers flies out with them – hence they usually have little in the way of significant infrastructure projects</li>
<li>The populations of mining towns tend to be extremely itinerant and this includes those not working in mining jobs – most other jobs, such as those in retail and hospitality, still require mining to be in existence. An itinerant population usually means rentals are good when the main industry is good and not so good when it isn’t. It also means there is big demand from renters but little demand from buyers.</li>
<li>Investor sentiment becomes the biggest driver in a mining town as investors rush in to take advantage of rising prices when mining is lucrative, and rush out when it has a downward trend.  In fact, investor sentiment is probably the most significant driver in any mining town and so it has a far bigger impact than it would on an area where other drivers are in abundance.</li>
</ul>
This all means that timing becomes critical. 
Either you invest in a mining town knowing that it is likely to be very good and very bad, in cycles, and you are prepared to hold through those cycles, or you invest there in an attempt to time the market – you buy in before it takes off, then you sell just prior to the peak to someone else who has been watching the growth and has decided, too late, to buy. 
The former strategy requires you to be able to support negative cash flow when rents are low, which you can probably do by stockpiling that positive cash flow when it’s high. The latter requires you to have either insider knowledge of which projects are coming up and when, or psychic abilities to be able to read the future.
As I possess neither, and I have no industry contacts who can say when those projects will come on line. All I can do is provide some strategies for managing the situation you are now in and a warning for future investments. 
For now:
<ol>
<li>Work out how low you can go in your rent to keep you in the market – how much negative cash flow can you support for now?  Then drop the rent to this level as soon as you can and hopefully attract a tenant from that dwindling pool.  Get an accountant help you to assess the deductions and take those into account. As with an income tax withholding variation, you can claim those deductions weekly and they may help your cash flows.</li>
<li>Seek out some alternative avenues for advertising – possibly find out where the majority of workers come from and look at advertising to them in publications they might read and,</li>
<li>Start offering incentives such as rent free periods, or 12 months for the price of 10 etc.  Incentives work, and although they may cost you a little, a small amount of lost rent is better than no rent.</li>
</ol>
As for the warning, no property investor, except for those with money to lose, should ever buy in a mining town. 
I am not suggesting for one moment that you cannot make money from a mining town as I know you can. 
I am suggesting though, that the risk is significantly higher than investing in an area which possesses all of the drivers. While a mining town has the capacity to make a lot of money for you, it has an equal capacity to lose a lot too. 
This experience is a perfect example of how it is not where the property is that should be your number one consideration, it is matching a property to your personal circumstances that matters most. 
Once you have a sound portfolio of properties which are performing pretty well and receiving a sound return, then it may be time to start looking at these higher risk ventures.
</body></html>

The tenant in my mining town investment has done a runner! Ask Margaret

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.

<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/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

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."

[smartcode_project:default project_id=135096 project_image_fid=356829]

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."

[smartcode_project:default project_id=135096 project_image_fid=351104]

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.

[smartcode_project:default project_id=135096 project_image_fid=356826]

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.

[smartcode_project:default project_id=135096 project_image_fid=351102]

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."

[smartcode_project:default project_id=4661 project_image_fid=314259]

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.

[smartcode_project:default project_id=5743 project_image_fid=925]

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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