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Hi Margaret,
I am buying my first home at 30, having rented before this with a friend.
I have got about $50,000 saved as a deposit and some other money set aside for costs, and have been given the option to either buy on my own or with the friend I’m renting with.
What are the benefits of buying with him and should I be considering it?
Thanks,
G.
Margaret's answer on the next page. Please click below.
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Dear G,
I am often asked by many investors whether or not they should be buying property with a friend, a sibling or with a group of other investors.  It’s a common thing for people to buy property with a spouse, and if you think about that, you are already taking the good with the bad when it comes to a life partner. Sharing real estate is only another facet in the complex fabric of life.
When it comes to a friend, you could be tossing up buying together for a number of reasons.  It could be that you can’t afford to go alone, or can’t save enough of a deposit.  Another reason may be that you feel more confident buying with someone else than you would alone.  Whatever the reason, it might seem like a good idea at the time, but like a lot of good ideas, it can all come apart later on.
If you are tossing up whether or not to buy with someone who is not your spouse or life partner, it can help if you go in with your eyes wide open. 
Here are just a few of the things you must know:
<ol>
<li>
You can trust yourself, but.... You probably know that you can afford to meet the repayments, and that in times of stress you have enough money to be able to see through until the good times.  You know that your job is secure, and so you will always have a steady income flow.  But can you be as sure about the person you are planning to buy with? It is easier when it is your spouse – when you get married or choose to live together it is always for better or worse.  And it may seem easy when we are talking about a brother or a sister, a mum or dad or son or daughter (although often that is not the case). However, when it comes to friends you can never be sure how much of what they are telling you is actually true.  It’s amazing how quickly someone’s circumstances can change, and the last thing you need is to be left holding all of the commitments on a property whose title you only half own.  
</li>
<li>
Difficult financing arrangements Where all parties are bringing in the same amount of money as a cash deposit, and a joint loan, secured by only the property in question (the one being purchased) is accessed, this may remain relatively simple. All parties pay their required portion of the debt, receive their share of the income and complete separate tax returns claiming their own tax deductions. Where differing amounts are provided by each person, or where the other party may be borrowing against the equity they have in another property and bringing in their deposit via another loan from elsewhere, things get tricky. All bills will then need to be divided up according to the original allocation and the tile will need to reflect the different proportions of ownership. The risk increases too, if one party is using a loan for their deposit – it creates a higher risk of that person not being able to manage their repayments. It is useful to note here also that, when you sign mortgage documents for a debt where another party is involved, you become jointly, and severally, responsible for the repayment of that debt.  If the other party takes off to Rio, you cannot call your bank and offer to repay only your half, or to keep repayments on only your half going.  You become responsible for the entire debt, while at law you still only own half (or your share) of the property. 
</li>
<li>
What’s yours is mine – including all your debt! Since you become jointly and severally responsible for any loan you take out with other people, the commitment for the entire loan, rather than half of it, may be considered when establishing your serviceability with a bank.  So, you may have a loan of $300,000 with two other people, and your share is $100,000, but a bank may consider that you have a commitment to the entire $300,000. Conversely that same lender will only consider the income on your third of the property, since you only own a one third share. This may limit your ability to borrow additional funds to undertake more borrowing to buy investments in your name only, and could hamper your ultimate progress. 
</li>
<li>
Using the growing equity Imagine if the equity in your shared property grew so quickly that you were ready to buy again soon – but you decided that you did not want to buy with that person again. Unless you are prepared to liquidate, lose a fair portion in capital gains tax and start again, unfortunately you may have difficulty using this equity to invest further. 
</li>
<li>
Time to get out – but do you both agree? Your life suddenly changes.  You meet the perfect partner and want to move to the country, you are offered a divine job overseas for 20 years, or you simply want to cash out and take a Harley around route 66.  If your timing does not coincide exactly with that of your fellow property owner, you may not be able to take advantage of this great new opportunity because you cannot realise your assets.  Unless you are both ready to make a major change, owning property with others can often prevent you from taking on a great opportunity which may come along out of the blue. 
</li>
<li>
When you are doing all the work. Owning a property is not without its hard work.  If you suddenly find yourself doing all the work, it may seem like an unfair thing that you are only accessing your title’s share of any growing equity.  You may believe you are entitled to a greater share, but at law, this is not possible.  You cannot really know the capacity of another person to do their bit until after the deed is done, and by then it may be too late.
</li>
</ol>
In summary:
If there is absolutely no other way for you to get into the market than to do it with another, non spouse person, then at least sign a partnership agreement at the commencement of the deal in which you cover every possible eventuality and agree to a procedure to manage it. Going in with your eyes open may prevent a major disaster in the long-term. So will not investing with others at all!
Regards,
Margaret
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Should I buy a property with a friend? Six things to consider first: Ask Margaret

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Hi Margaret,
I have already met eligibility requirements to buy a property with my First Home Saver Account (FHSA) money. 
Do you know whether i still have to meet the 'live in the property for at least six months over the next 12 months' requirements given the 12 months will extend beyond the date that this rule is abolished?
Regards,
FHB
Margaret's answer on the next page. Please click below.
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Hi FHB,
The First Home Saver Account (FHSA) was an initiative by the federal government to boost the savings of first home buyers by providing incentives via an additional deposit and tax advantages to this account as long as you placed your own savings in it. 
The rules were simply that you use it only on your first home, do not draw anything out of it for four years, and pay at least $1000 a year into the account over at least four years. In return the government made a 17% contribution on the first $6,000 and only taxed any earnings at 15%. The funds from your first home saver account could only be used to buy a property you intended to live in. The occupancy rule stated that you must live in the home for at least six months and it must be your main residence.
The six-month period must start within:
<ul>
<li>12 months of you becoming the home owner (from settlement date) or;</li>
<li>12 months from the day construction was completed if you are building a home</li>
</ul>
If you failed to use the funds on your first home, it had to be rolled over into superannuation.
However these accounts did not take off as expected and so the following changes will occur:
<ul>
<li>Accounts opened after 7:30pm Tuesday 13 May 2014 will not be entitled to the government contribution</li>
<li>Existing account holders will not be eligible for a government contribution on personal deposits after the 2013-2014 financial year</li>
<li>Tax and social security concessions will cease 1 July 2015</li>
<li>Restrictions on withdrawals will be removed on 1 July 2015</li>
<li>First home saver accounts will be abolished on 1 July 2015</li>
</ul>
Having said all of that, as of today the accounts are current and this means that the requirements are current.  Since ‘living in the property for six months starting sometime within the first 12 months’ could potentially mean that your six months might feasibly start after the abolition of this rule, one would expect that it would no longer apply at that date. 
However, as you would be accessing the funds during the time that the scheme is still current, you will most likely be required to fulfill your obligations and start living in the property, staying there for the full six months, regardless of when this falls.  The government has provided the benefit and so you should follow the rules relating to that benefit.
If I were you I’d make a call to the Office of State Revenue in your state and clarify their position.  If they do, be sure to get it in writing so that you can prove that this is what you were told, if questioned at a later date.
Regards,
Margaret
Have a property question?  <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Do the First Home Saver Account eligibility requirements still apply?

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Dear Margaret,
I have a mortgage of $420,000 and my home is worth $750,000.
Is my equity $330,000 and would the bank theoretically allow me to borrow this amount and buy an investment property to rent?
Does your wage dictate the amount the bank will lend for the investment loan, or does it just lend you the $330,000 if you indicate that the rent would cover the loan?
Thanks, 
PC
Margaret's answer on the next page. Please click below. 
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Hi PC, 
The bank allows you to borrow up to 80% of the entire value of your property without lender’s mortgage insurance (LMI) applying, or up to 95% (depending upon the lender) of the value with LMI. 
LMI is an insurance policy to protect the bank in the event that you default and a forced sale does not provide enough proceeds to cover your outstanding debt. While it’s a policy for the bank, you pay the premium which, depending on the loan amount and how close to 95% you get, can run to thousands and thousands of dollars.
In your case, your total property is worth $750,000 and so, at 80% of that total value, you can borrow $600,000 all up. As you only owe $420,000, this means that you still have $180,000 of potentially available borrowings. Now remember that this potentially available borrowing is on the existing property – once you find a property to buy and add it to the mix, you can borrow up to 80% against that property, too! So that means that whatever you have left as potential available borrowings on your current home will cover the 20% deposit. 
Given that you have $180,000, technically it’s enough to cover the 20% deposit on $900,000 of additional property. As you will have stamp duties and costs in there too, you can probably expect to easily be able to secure a further $800,000 of property with the current equity you have in your own home, and cover all costs too.
I say ‘potentially available borrowing’ as equity is not the only criteria for borrowing. 
You also need to be able to demonstrate the ability to service a debt. Your income, plus any rent from the property you want to buy, will be considered and a formula used to determine if you can afford to meet your daily living expenses plus the cost of your total borrowings.  
Most lender’s will accept the total amount of PAYG income you earn, self-employed income, as long as you can prove it over two years, and 80% of the actual or projected rent return. Some lenders will consider things like family allowance payments and child support, some investment income and other income – each lender is different.  
In considering your total liabilities, banks will take into account current payments on all loans and credit cards, commitment to child support if any, and the future repayments on the new loan being applied for. Usually, they will add a margin to the new loan repayment just to be sure you can Afford any unforeseen interest rate rises.
Regards,
Margaret
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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How much can I borrow against my home to buy an investment property? Ask Margaret

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Hi Margaret,
I just settled and was having a look at the settlement and saw lender’s mortgage insurance (LMI) was charged as a lump sump straight out.
I would have preferred that LMI payment to be added on to the loan.
Can I change this now and how can I do this in future?
Should I wait next time so I don’t have to pay any LMI?
Kind regards,
B.
Margaret's answer on the next page. Please click below.
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Hi B,
LMI, also known as lender’s mortgage insurance, is a policy which is taken out by the bank, on your behalf, on any loans where the amount of that loan is greater than 80% of the total value of the property you are buying.  
The purpose of LMI is for the protection of the bank – if for some reason you default on your loan and do not repay it, the insurer will pay to the bank any shortfall between the loan balance and the sale price of the property, and then pursue you to get it back.  This might occur if you just stop paying the loan, or if you have a forced property sale and the property sells for less than what you owe to the bank.
The reason it applies to loans of more than 80% of the property’s value is that loans where the owner starts out with little equity are the ones most at risk. Where you borrow less than 80%, there is a greater chance that any forced sale would still recover enough to pay off the debt.
Be aware that although the insurance policy covers the bank (and not you), you pay the premium.  LMI does not cover you for any inability to meet repayments – and so it is not a policy for you, and if you want to cover your mortgage payment in the event of your incapacity to pay, you would need a mortgage repayment protection policy as well.
Where LMI is concerned, you usually have two options – to meet the payment yourself, or add it to the loan. Note that if you add it to your loan, not only will you increase your mortgage repayments (and essentially pay interest on this premium), you reduce the equity you have in the property.  This means you own less of the property, and it would then take you longer to gain the equity you need to leverage into the next property.  It is for this reason that I always advise borrowers who need LMI to meet the payment themselves, if possible.
It’s unlikely that you will now be able to go back and simply add it to the loan without paperwork.  The bank may, however (and depending upon the loan type) go back and reapprove your loan at a higher amount to allow you to  repay yourself for the LMI.  This is known as a loan increase and is possible with many loan types these days.  A loan increase is easier as it does not require a discharge of mortgage to be put in place - it’s just an additional advance of funds.  Note that in doing this you are changing the loan to valuation ratio further (as LMI can be up to 2% of the loan amount) which incurs further LMI again.
Be aware though that if this is an investment loan and you choose to do this, the interest on the amount you ‘draw back’ will not be tax deductible. The tax office will consider this amount to be a payment to you, and therefore of a ‘personal nature’, and so they will not allow deductibility on that portion of your interest.
Regards,
Margaret
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Do I have to pay LMI as a lump payment?

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Dear Margaret,
I have read some of your Q&amp;A's and decided to email you. I hope that you may be able to give me some advice.
I am going through my divorce settlement with my partner and we have a one bedroom apartment investment house in Melbourne that is currently leased.
I intend to keep the investment house and turn into my principal place of residence after the divorce settlement.
Therefore, I hope you can advise whether this is a good idea and what the pros and cons of changing an investment house  into my principal place of residence?
Looking forward to hear from you soon.
Kind regards,
Thomas
Margaret's answer on the next page. Please click below.
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Dear Thomas,
In Victoria, it is possible to transfer ‘by way of love and affection’ a property from one spouse to another and avoid stamp duty on that transfer.  In a divorce in any state, you can also make the transfer under a divorce settlement and avoid any transfer duty.
However there are a few other issues to consider.  Firstly, and depending upon the value of your spouse’s half at the time, she may incur capital gains tax on her half which is disposed of to you.  This would be assessed on the difference in the value as at time of transfer and the original cost base.  In your case, you would then have two separate cost bases on this property – the half you already owned would have the cost base applicable at the time of purchase and the half you acquire would have one applicable at the time of transfer under the property settlement.
If you live in the property and subsequently sell at a later date, half of the property would incur pro-rated capital gains tax using the cost base on the first half and the eventual sales price, calculated according to days rented, not rented. The second half would be CGT free. 
If at any time you do rent the entire property out, then it’s all complicated further – the half you owned is still pro-rated as above, but the half you acquire may qualify under the six year rule CGT exemption (as long as you do not claim that exemption elsewhere), or not, in which case it has a different method for CGT calculations.
In any event there is no impact on you until you eventually sell, but in the meantime I advise you to keep full and accurate records about everything, even any money you may spend on the property, as these records will be required by the tax office and be crucial for you to correctly establish all of your different cost bases. Apart from this issue, I cannot see anything else you should really worry about, as you are planning to make this your own home and so no further taxes should arise.
Kind 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 pros and cons of moving into an investment property post-divorce?

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Hi Margaret
My father has owned his 150 acre property since the '60s. He subdivided the land into three 50 acre blocks in the '90s, but he still owned all three blocks. He lives on one block and is intending to pass a vacant block into my name so I can build my home on it. All blocks are used for a farming business, however he has no taxable income. He is registered for GST.
There is no way to avoid the capital gains tax (CGT) when he places it in my name is there? 
Do you know roughly how much he will have to pay? The CGT calculators don't make sense to me. Even if I do not pay for the block, it is worth about $800,000. The three blocks were purchased for $60,000 in the 60s so the one would have been $20,000.
Many thanks,
Alan from WA
Margaret's answer on the next page. Please click below.
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Hi Alan,
As you father owned the block in the pre CGT days, this block is still a pre-CGT asset. Subdividing the one pre-CGT asset into three does not changed the pre-CGT status and subdividing does not result in capital gain or capital loss. 
Although your father will make a capital gain when he sells (or passes title of) the block to you, the date he acquired the block is considered to be the date that he acquired the original parcel of land, and the cost base of the original land is divided between the subdivided blocks on a reasonable basis. Therefore there is not CGT for your father to pay at all.
More importantly for you is considering how you will receive this block of land, and in what entity.  If you plan to live there then it may become your principal place of residence, and later if you sell there may be CGT consequences from the date you acquired the land in your name. This is because any part of the land over five acres attracts capital gains tax and cannot use the principal place of residence exemption. 
If you are going to conduct a farm then it could be considered business real property, or the part where the farm is conducted could be. It’s worth considering potentially using a self-managed superannuation structure, as business real property can be transferred into super even if it has initially been given to you.
In any event, my advice is for you to seek quality accounting advice before the transfer takes place. This will allow you to ensure that the right structures are in place from the outset.
Kind regards
Margaret
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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My father subdivided a property he's owned since the '60s, does he have to pay CGT?

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Hi Margaret,
My partner and I are thinking of buying our first home by the end of this year and are currently researching on where to build, the demographics, etc which will suit our budget.
We are from WA and are thinking of going for a home and land package. Therefore will you have any piece of advice as we are newbies to the property market and believe that extensive research needs to be conducted before we embark on this journey.
Is there any of your books that are specifically targeted towards first home buyers.
Regards,
Amira
Margaret's answer on the next page. Please click below.
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Hi Amira,
It's really important to understand that the parameters around how we choose the home we wish to live in are not the same as those we choose the home to invest in.
If you were buying purely for an investment, it's more likely that you would not invest in the same kind of area that you would choose to buy in as an owner occupier.  This is because, at any moment in time, some areas make better investments than others due to the existence of growth drivers which have not yet had a big impact on that market.
If you were choosing to invest you would be looking for areas which are not yet fully serviced, yet show signs of increasing population, infrastructure and popularity. These areas then have a good chance to grow quickly and you will benefit from that by having an investment which grows well.  If you are looking to buy a home to live in you would be looking for an established area which most likely already has had some good growth - you choose it for the convenience and lifestyle benefits it can provide to you and consider its potential to grow as a secondary requirement.
You want to buy in WA, and most residential areas in Perth have had a good run last year, with prices softening this year.  Therefore, as an investment it's not as good, at this moment in time, as say, Brisbane, and so you would most likely not choose a Perth suburb as an investment right now.  But as you want to live there, your aim instead should be to find something within your budget which also allows you to meet all of your lifestyle needs - a decent proximity to your work, near family and friends and close to any of the things you like to do in your leisure time, such as go to the beach, go bushwalking etc.
As you are choosing a house and land package, make very sure that the total price to build this house does not exceed the current price for similar, established properties which are already built.  Often there is a builder premium which you cannot recover through market growth, as this house will only have the same value as similar established houses once it is built.
Then, make sure that you get the right type of loan, right from the start, one which is flexible and will allow you to redraw anything you pay off it to make a deposit on an investment property.  You want to be able to pay down your loan as quickly as you can so that the combined effect of debt reduction and market growth of the property creates the equity you need to get started with a property investment portfolio. 
While my books don't specifically help a first time owner occupier, the latest one, <a href="https://www.booktopia.com.au/how-to-achieve-property-success-margaret-lomas/prod9780987368294" target="_blank">How to Achieve Property Success</a>, which is a combination and update of my first three books, definitely helps you to undertake effective mortgage reduction and prepare yourself for starting on your property investing journey. 
Regards,
Margaret
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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What should I look for in a house and land investment? Ask Margaret

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Hi Margaret,
Just a query on capital gains tax (CGT).
Our principle place of residence is currently on the market to sell, and once it does we would like to buy another property.
However the kind of property we would like to buy next as a primary residence is at this point out of our price range.
What we would like to do is climb the property ladder by doing a quick reno then selling.
Is there a required time frame for us to live in this property to be exempt from CGT?
Regards, 
Grace
Margaret's answer on the next page. Please click below.
 
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Hi Grace,
As long as you live in a property and do not claim another property as your principal place of residence (PPOR) during that time, then there is no set period of time in which you must live in a property in  order to avoid capital gains tax (CGT). 
The CGT exemption applies to any residential property in which we live and claim the principal place of residence upon. The requirements to claim this exemption are that you live in the property and it is your primary place of residence, and that you have no other primary place of residence.
If you kept buying properties, lived in them and did a renovation, and then sold them quickly, doing it again and again in short periods of time, you may place yourself in the situation where the tax office would consider that you are in fact in the business of property renovation and may disallow the exemption. Under such circumstances it is more likely that they would also see the gains you made as income and tax you accordingly, rather than apply capital gains tax.
If you are genuinely moving in in order to climb the property ladder for your personal circumstances only, rather than looking to make more and more profit from renovations and using the PPOR exemption rule simply to avoid tax, then it won't matter how long you live there, the exemption should apply.
Kind regards, 
Margaret
Have a property question?  <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Moving up the property ladder via renovating and selling: But do I need to pay capital gains tax?

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Hi Margaret,

I currently live in Sydney and on a 970 square metres property, and have been for 27 years now. The property is located approximately 20 kilometres from Sydney CBD.

I am thinking to knock down my existing home, building a duplex and then selling one to finance the construction costs for both. Thereafter, I intend to live in one of them. 

What is the taxation implication on my current and future property (i.e. one of the duplex I plan to live in)? Will I pay tax on both properties? What tax (and deduction) do I need to pay for one of the duplexes I plan to sell?  Can you provide a sample taxation calculation? Is there a correct procedure to minimise my tax?

Thanks in advance.

Cheers! 
Dave 

Margaret's answer on the next page. Please click below.

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Hi Dave,

If you subdivide a block of land, each block that results is registered with a separate title. In terms of capital gains tax (CGT), the subdivision means that you will end up with two separate assets. Subdividing the land does not result in a CGT event if you retain ownership of the subdivided blocks and this means that you don’t make a capital gain or a capital loss at the time of the subdivision.

You are intending the demolish the family home, leaving you with a vacant block. As you bought the original property 27 years ago, you may trigger CGT once you erect the new dwellings and sell one. Your principal place of residence exemption can be applied to one property (likely the one you live in) but the second dwelling will incur CGT.

The date you acquired the subdivided blocks is the date you acquired the original parcel of land and the cost base of the original land is divided between the subdivided blocks on a reasonable basis. Then, the cost of erecting the dwelling on the block you intend to sell will add to the original assessed value of the newly created block to create a cost base for that property.

[smartcode_project:default project_id=94621]

Once you sell you will be charged CGT on any profits you make. As long as the new house and land is kept for 12 months from the contract date to build the new house, then the 50% discount will apply.

I chatted to my Property Success tax expert, Ian Rodrigues, about this and he said that I should add that practically any gain is likely to be in the land, not the building, in such a short time frame. Even over time, most gain is in land and not building value, but it is a matter for a valuer to split the amounts to establish which is worth what.

Regards,

Margaret 

Have a property question?  <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Building a new duplex on the family home block: What tax do I have to pay?

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Hi Margaret,
My husband and I brought a property in Emerald, Queensland in 2008 and resided there while he was working in the town as a paramedic. After we moved on we decided to rent the property out. We understand that with the economic downturn, we have been patiently waiting for things to improve but we're beginning to wonder if and when they ever will. 
It's frustrating to hear comments that property owners are seeing great capital returns while we are just treading water. I regularly log on to CQ News to see what is happening in Emerald and it all seems very negative. I have met people who still have family over there and they're saying a lot of projects are still going ahead. My question is do we still hang in there or cut our losses? I know Emerald has not been picked as a hotspot in the past for nothing. 
Regards,
Yvette
Margaret's answer on the next page. Please click below. 
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Hi Yvette,
One of the inherent dangers of following ‘hotspot’ recommendations (even those I make myself) is that these recommendations can only be based on the available data at the time.  No one has a crystal ball and when we use such data to suggest hotspots we are doing so using the data available at the time.
One of the things I have always tried to do is to suggest a risk rating alongside any hotspot recommendation.  This is because certain types of areas have greater downside risks than others should the hotspot not turn out to be a hotspot at all.
For example, a hotspot which is in a residential area, say a suburb of a capital city, with a diversity of employment, lowering unemployment rates, rising population and improving median household income is one which will either boom soon, rise nicely over the longer term or not fulfil boom expectations, but rather experience the average kind of growth we would expect from a stable market. A buy in such an area carries little risk as you either get a great return, or an OK one.  Investors with lower appetites for risk and a need to preserve capital can buy in these areas confidently knowing that the downside risk is small.
At the opposite end of this scale is a hotspot in a single industry town, such as a mining town.  It will fulfil boom expectations as long as the economy does not turn or an outside influence does not conspire to damage its potential.  As the chance for this is fairly high, only investors who can face losses and who have a big appetite for risk should buy in such areas.
At present, the future of Emerald is impossible to predict.  This is because it is an area which suffers extreme impact from economic circumstances and, as confident as we all feel right now, these remain at high risk of a second downturn.  The information you are reading now about the area is current now, but could equally change as soon as the economy changes and become positive again.
For you, you must consider your entire financial circumstances and ask yourself whether you can withstand the downside risk – will short or medium term values losses impact on your ability to leverage into more property (do you have enough equity to see you through any potential value losses?) and do you have the personal cash flows required to support this property if there is a significant fall in rental returns?  If not, then selling now might be the best choice – although if you do sell, you cannot later look back and bemoan any growth you subsequently missed.  You must instead realise you made the decision that was right for you at the time.  Considering all of these things is something that the person helping you to buy this property (if any) should have done with you in the first place.
If you think you can withstand any storms, Emerald, like all mining towns, is likely to see good times ahead again, although I cannot predict when, so there’s no way of knowing how long this present situation will impact you. Perhaps buy more property in more stable areas so that you don’t watch and focus on Emerald and continue to keep your finger on the pulse of all mining markets.
Regards,
Margaret 
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My hotspot investment is treading water: Should I hang in there or cut my losses?

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

Joel Robinson

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

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

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

Maréa Residences brings parkside apartments to Coolangatta

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

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

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

Margaret Lomas

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