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The auction of 1/21 Hampden Rd Armadale got off to a slow start and the property looked like it would be passed in at $950,000. But the rain failed to dampen the competition as four bidders finally declared their hand and the property sold for $1.21 million.
In Sydney there were no doubt a few Boags beers drunk last Saturday night as the family of the famous brewer sold the family home well in excess of the reserve. Prior to the auction the property was expected to sell for around $1.25 million but multiple bidders pushed the price to $1.415 million.
This week the downsizing baby boomers will be out in force when the perfect retirement property goes to auction. <a target="_blank" href="https://www.realestate.com.au/property-house-vic-hawthorn-113159479">1/15 Lisson Grove, Hawthorn</a> has the all-important master bedroom with ensuite on the ground floor and comprises a further two bedrooms and double lock-up garage.
The property (pictured below) is expected to sell in excess of $900,000 but don’t be surprised if it well and truly goes over $1 million.
<img alt="tippingmarch22one" height="349" width="470" src="/images/stories/2013/03/tippingmarch22one.jpg">
In Sydney, <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-newtown-113170791">87 Campbell Street, Newtown</a> (pictured below) is a tricky one to put a price on. It is a unique property with very few comparable sales to help determine the value. The warehouse conversion has been designed to accommodate a separate business and residence.
Agent Michael Glynn from McGrath Real Estate is looking for buyers with more than $1.7 million to spend.
<img alt="tippingmarch22two" height="311" width="470" src="/images/stories/2013/03/tippingmarch22two.jpg">
There's now a website, <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://mail.privatemedia.com.au/owa/redir.aspx?C=KgoIydkbbkqcxEmtHCpjYzenKRip4s8ILx-ixDagf2W2XMdG8J7GWA4FzDXhsR5a7S8fbUw_Jbw.&amp;URL=http%3a%2f%2fwww.propertytycoon.com.au%2f">www.propertytycoon.com.au</a>, where punters can guess five auction results in Melbourne and Sydney, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener. This season <a style="font-size: 14px;" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" target="_blank" rel="nofollow">Property Observer readers have their own competition, which you can access here</a><a href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" rel="nofollow">.</a> The winner of the overall competition will win $1,000.
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Unique Newton warehouse could crack $1.7m in Property Tycoon auction tipping

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When we talk about the strength of the property market it is very easy to point to clearance rates as the main barometer. Although clearance rates are a good indicator of what is happening week to week, we need to look a bit deeper to anticipate where the market is heading.
Once an auction is finished, the property is sold and the successful buyer exits the market. The result becomes historical the moment it occurs. The under bidders who are left to lick their wounds will determine what happens next. They are the ones we need to focus on.
The Melbourne market was weak throughout 2012 with clearance rates hovering between 50% and 60%. However, hiding behind the clearance rate was that fact that many of these properties were passed in and sold shortly after. This means the properties either failed to reach the expectations of the vendor and/or there was only one bidder. This means there was not much support underpinning the sale result and very little chance of market growth throughout 2012.
Fast forward to 2013 and <a href="https://www.propertyobserver.com.au/news/apm-s-melbourne-auction-results-for-march-16-weekend/2013031759905" target="_blank">auction clearance rates have lifted</a> by around 10%. Many people are asking if this will continue for the remainder of the year. I think there are clear signs it will. I have attended many auctions in the first weeks of 2013 and although not all of them have had a strong result there is no doubt we are seeing more competition.
Take, for example, <a target="_blank" href="https://www.realestate.com.au/property-house-vic-malvern+east-113084891">1/86 Paxton Street, Malvern East</a>. It (pictured below) was advertised to sell for between $560,000 and $610,000 prior to the auction and had a reserve in this range. On the day of the auction the rain was pouring down and usually this would drive the crowds away. When the auction started for the two storey, three bedrooom townhouse style offering, bids were flying left, right and centre and when the flurry stopped everyone was soaking wet and the price had reached $760,000. This was around $150,000 above the vendor’s expectations.
<img src="/images/stories/2013/03/armstrongmarch20one.jpg" width="470" height="351" alt="armstrongmarch20one">
In <a target="_blank" href="/news">Collingwood</a> a couple of weeks ago, the penthouse apartment at <a href="https://www.realestate.com.au/property-house-vic-collingwood-112993683" target="_blank">24/125 Oxford Street</a> (pictured below) was sold for more than $300,000 above the vendor's reserve. Multiple offers were received prior to the auction and the vendor correctly decided to let the buyers fight it out.
<img alt="armstrongmarch20two" height="353" width="470" src="/images/stories/2013/03/armstrongmarch20two.jpg">
 
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While it is clear these results are the exception rather than the rule, they are ‘spikes’ in the market. These ‘spikes’ are underpinned by multiple bidders – in some cases as many as 8 to 10 buyers – who have missed out and now form part of the future market.
This week <a href="https://www.realestate.com.au/property-apartment-vic-prahran-113157899" target="_blank">10/36 Grandview Grove, Prahran</a> (pictured below) will go under the hammer and the agents have been run off their feet with around 100 groups inspecting the property. The property was originally quoted to sell for $500,000 to $550,000 but due to demand the quote has been lifted throughout the campaign and is now expected to sell closer to $600,000.
<img alt="armstrongmarch20three" height="350" width="470" src="/images/stories/2013/03/armstrongmarch20three.jpg">
The sale of this property will set a new bar for this style of property and although the successful bidder will leave the market the remaining buyers and spectators will readjust their price expectations as they branch out into the market. This will result in increased pressure on prices and a greater chance of price growth throughout the year.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
 
 
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Multiple bidders suggest strength even deeper than clearance rate barometer: Mark Armstrong

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Another big auction is on the cards in Melbourne this coming weekend, with a mansion apartment in Armadale about to hit the market.
You will be hard pressed to find an apartment to compete with <a href="https://www.realestate.com.au/property-apartment-vic-armadale-113076279" target="_blank">2/21 Hampden Road, Armadale</a> (pictured below).
It is clearly in a class of its own and lies in Armadale's premier boulevard. The three bedroom, two bathroom accommodation comes complete with an open fireplace and a contemporary kitchen.
<img alt="tycoonmarch15two" height="350" width="470" src="/images/stories/2013/03/tycoonmarch15two.jpg"> As you would expect, a property like this has had many groups showing strong interest in the $950,000 to $1,050,000 quoted price range. Agent Elliott Gill from Bennison Mackinnon anticipates strong competition on Saturday.
Last weekend, the auction for <a href="https://www.realestate.com.au/property-house-vic-collingwood-112993683" target="_blank">24/125 Oxford Street, Collingwood</a> was one out of the box as the bidding flew past the $1.3 million reserve and did not stop until it past $1.5 million.
When all bidders had exhausted themselves the property (pictured below) sold more than $300,000 above the average tip at $1.512 million. Only a handful of Tycoons tipped this result.
<img src="/images/stories/2013/03/tycoonmarch15one.jpg" width="470" height="353" alt="tycoonmarch15one">
 The Sydney market fizzled last weekend with four out of five Property Tycoon properties being passed in. The owners of <a href="https://www.realestate.com.au/property-house-nsw-rozelle-112944407" target="_blank">84A Foucart Street, Rozelle</a> had an offer prior to auction of $1.22 million and decided to take the money and run. It will be a different story this weekend and there will be beers around after the auction of <a href="https://www.realestate.com.au/property-house-nsw-bondi+junction-112905499" target="_blank">25 Paul Street, Bondi Junction</a> as the descendants of beer brewer James Boags house goes under the hammer.  The Grand Old Victorian Lady is in the perfect location opposite the leafy green Waverley Park with schools, shops and transport so conveniently close. Agent Kevin Mendes from Laing+Simmons said there has been very strong interest in the property with 109 groups attending the open houses. While most buyers hold their cards close to their chest he is quietly confident the property will sell for around $1.25M
There's now a website, <a href="https://mail.privatemedia.com.au/owa/redir.aspx?C=KgoIydkbbkqcxEmtHCpjYzenKRip4s8ILx-ixDagf2W2XMdG8J7GWA4FzDXhsR5a7S8fbUw_Jbw.&amp;URL=http%3a%2f%2fwww.propertytycoon.com.au%2f" target="_blank" rel="nofollow" style="font-size: 14px;">www.propertytycoon.com.au</a>, where punters can guess five auction results in Melbourne and Sydney, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener. This season <a rel="nofollow" target="_blank" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" style="font-size: 14px;">Property Observer readers have their own competition, which you can access here</a><a rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">.</a> The winner of the overall competition will win $1,000.
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Strong interest in Armadale mansion apartment in Property Tycoon tipping's fourth round

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If you’re empty nesters still living in the suburban home where you raised your kids, you may be planning to downscale to a lower maintenance home closer to the CBD and cafe culture.
The inner suburbs are more expensive than where you’re currently living, so you’ll need to maximise the profits from selling the family home to get a foothold in a different market.
You face a choice. Should you play it safe, do a few cosmetic renovations to bring your home up to scratch and sell it pretty much ‘as is’ in the hope that strong demand from buyers will bring you a good sale price?
Or should you take a more aggressive approach towards increasing your potential profit by demolishing your old home, building two dwellings in its place and selling them on individual titles?
Many people think that subdividing is a sure way to make more money than simply selling a property in its current form — but like many ‘sure things’ in property, it ain’t necessarily so.
Working through the figures is the only way to make an informed decision.
Start by getting a firm quote for demolishing your home and levelling the site. Factor in the cost of obtaining the appropriate council permits, and the fee an architect or draftsperson will charge to draw up plans for the subdivision.
Next, obtain an accurate costing for the labour and materials required to build the two new properties. Add a margin of at least 10% for unexpected changes and costs that may crop up when the job is underway.
Then, calculate the cost of interest. Even if you’ve paid off your home, the chances are that you’ll have to borrow money to fund the subdivision. Remember: the longer it takes to complete the subdivision and sell the properties, the more interest you’ll pay on top of the loan amount. It’s worth adding a margin onto the time you estimate the project will take.
Now, work out the rental cost. You’ll need a place to live while the project is underway, so speak with local property managers to find out the likely cost of renting a suitable property in your desired location. Paying rent as well as interest on the subdivision loan could make things tight financially, so it’s important to work out whether you can afford the additional outlay.
You’ll also need to calculate the cost of selling the new properties, including the real estate agent’s fee and marketing costs. These expenses can be significant, so it pays to negotiate a competitive commission with the agent and to satisfy yourself that the recommended marketing campaign will deliver the best value for your dollar by maximising the properties’ exposure to the right buyers.
Then, consider your tax liability. You’ll incur capital gains tax (CGT) when you sell. This could eat significantly into your profit, so seek advice from your accountant as to the exact liability that will apply in your situation.
Finally, ask local real estate agents for an appraisal of what your home is worth in the current market.
It’s a common mistake to calculate the potential profit of a redevelopment by using the value of the property as it stood when you bought it. The land will have grown in value since then, so using the original value could lead to an over-inflated estimate of the profit margin — and bring you crashing down to earth when you actually sell. Make sure you use the property’s value in today’s terms.
Once you have gone through these steps, you’ll have a clear idea if the project stacks up in financial terms. If not, it may be best to opt for the simpler route, undertake a few cosmetic renovations and sell your family home ‘as is’.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
 
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Subdividing isn't always the best option: Mark Armstrong

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Well it’s a fait accompli: the property market is back with auction clearance rates in the 60s and 70s so it must be the right time to buy.
Well, that’s what the mainstream media would have you believe, as they flip the coin from negative market reports to positive.
This kind of mass-market reporting makes many people think they must act immediately. But while there is no doubt we are seeing a bit more strength in the market, it is not across the board.
Last weekend we saw two very high quality properties go under the hammer with strikingly different results.
This <a href="https://www.realestate.com.au/property-townhouse-vic-hawthorn+east-112919259" target="_blank">three-bedroom town house in Hawthorn East</a>, for example, was quoted to sell for around $650,000 to $700,000 but in the end sold for $735,000.
The point here is not what the property sold for but the number of bidders vying for the property.
Throughout the auction, six bidders declared their hand and four of those where still in the hunt when the property was declared on the market at $700,000. The property had very strong support from the market and the sale value was well underpinned.
This outcome was a far cry from what happened at <a href="https://www.realestate.com.au/property-apartment-vic-hawthorn-112927163" target="_blank">8/9 Coppin Grove, Hawthorn</a>.
The two-bedroom Art Deco apartment is in a block of only four in a blue chip location.
In anyone’s language it is a sound investment, but the auction was a fizzer. The property was quoted to sell for $750,000 to $800,000 and only attracted a single bid before being passed in.
It sold a short time later for $796,500.
At this stage of the market cycle many investors can feel the pressure to get into the market.
When it comes to residential property, most people’s opinions on the ‘right’ time to invest are based largely on market conditions.
Whilst the state of the market certainly plays a role, changes in factors like interest rates and the ratio of supply to demand are beyond the control of the individual investor.
This is why, if you’re considering buying an investment property, it’s wise to focus on the factors you have some level of control over; in other words, your personal and financial circumstances.
The key to maximising this control is managing risk. Like any asset class, investment property involves a degree of risk.
If your personal or financial circumstances change significantly and you haven’t planned for the change, the risk of getting in over your head is higher.
Before you invest, it’s important that you’re in a strong enough personal and financial position to ride out an unexpected event such as losing your job or contracting a major illness.
 
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Generally speaking, the least successful property investors are those who haven’t planned adequately for risk, cannot afford to hold the property and are forced to sell before the asset has begun to realise its potential.
To determine whether you’re in a strong enough position to buy an investment property and comfortably shoulder the risk, it’s sensible to seek personalised advice. Meanwhile, here are three of the most important factors to consider:
Income
 The best time to invest is during your peak earning years when your income is steady or, preferably, increasing.
You should also have a reasonable expectation of earning this income on an ongoing basis for at least seven to 10 years.
During this time, you can put any pay packet increases into the property loan to reduce debt rather than merely pay off the interest.
This will enable you to further expand your portfolio over the long term.
Before you buy, think ahead to any possible personal commitments you may make over the next seven to 10 years.
If you’re likely to experience a drop in income due to maternity leave or self-employment, or higher expenses due to home renovations or school fees, you’ll need to consider how these could affect your ability to meet your loan commitments and other property-related expenses.
If things could get tight, it may be best to delay buying an investment property until your income and expenditure is back on a more even keel.
Debt
 Before you invest, it’s sensible to reduce your non-deductible debt as much as possible.
Non-deductible debt is debt you can’t claim against your taxable income, such credit cards, car loans, store cards and the interest on your family home.
There’s little point in taking on more debt by way of an investment property if your current debt levels are already stretching your financial resources.
Gearing
 Only buy an investment property when you’re gearing (borrowing) to a level at which you can comfortably meet repayments even if interest rates go up.
There’s no ‘ideal’ gearing level; it depends on your individual financial circumstances and risk tolerance.
From the lender’s perspective, however, a gearing level higher than 80% is considered a more risky proposition, so the lender will require that you pay mortgage insurance before they approve the loan.
Remember to factor in this expense when you’re planning to buy.
In short, there’s little point jumping into an investment when market conditions are more affordable if you don’t have the capacity to hold the asset for the long term and benefit from its full potential. The ‘right’ time to invest is when it’s the right time for you.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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The 'right' time to invest depends on your personal situtation: Mark Armstrong

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I was driving in my car the other day when I heard a radio ad from a group that sells brand new property. The ad said the group only recommended properties in areas that have shown growth that is double that of Melbourne’s growth rate.
The statement got me thinking that just because you buy in a suburb that has had strong growth, it does not mean all property in that area will be a solid investment.   
Take a look at the properties below.
<img alt="armstrongfeb27one" height="326" width="470" src="/images/stories/2013/02/armstrongfeb27one.jpg">
These apartment blocks are located in the blue-chip suburb of Prahran. They each have a similar number of units and sit on similarly sized blocks of land. The only difference is that one was built in the 1960s and the other in 2000.   
Two-bedroom apartments in the 1960s block were selling for less than $200,000 in the year 2000. Conversely, the similarly sized apartments in the new block were fetching over $400,000. Investors who purchased one of the new apartments were paying a premium because they were new.
Today, the older apartments are worth about $550,000 and have been growing by about 10% each year relative to their purchase price. Conversely, the new ones have been growing by closer to 5% per annum and are worth approximately $600,000.   
So why has one grown by $350,000 and the other by $200,000 over the same time frame?  
It is because when you buy something brand new, it begins to depreciate - or lose value - the minute it is used.
A new car, for example, starts to depreciate as soon as you drive it out of the dealership.
Residential property is no different. The building itself, along with fittings and fixtures like floor coverings, stoves and hot water systems (to name but a few) loses value over time.
By contrast, the land underneath the building appreciates or increases in value. This is because buildings, fittings and fixtures are replaceable, while land is not.
The ATO recognises that depreciation is part of the cost of holding an investment property, along with expenses like municipal rates, insurance and interest on the loan. Hence, it allows you to claim depreciation as a tax deduction.
In the case of a building, depreciation is claimed over 40 years. For most fittings and fixtures, it’s claimed over five to ten years.
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Depreciation can only be claimed for investment properties, not the family home. Claiming depreciation each year can help make it more affordable to hold onto your investment property, because it reduces your taxable income and therefore your tax bill. Basically, it’s a tool to help manage your cashflow.   
Whilst depreciation is often touted solely in terms of its benefits, much less is written about the potential downside.
For starters, depreciation is really just a fancy way of saying that your property is losing value. Even if you don’t claim depreciation as a tax deduction, the property is still losing value. And, because the objective of holding a residential investment property is to achieve long-term capital growth, a property that’s losing value can’t be considered a good investment.
Second, if you do choose to claim depreciation as a tax deduction it will increase the amount of capital gains tax when sold. The ATO allows you to depreciate the building by 2.5% per annum but this will reduce the cost base of the property for tax purposes.
For example, if you buy a property for $500,000, including costs, and claim $25,000 in building depreciation, the tax department will recalculate the cost base to $475,000. If you sell the property for $600,000 your capital gain will be $125,000 not $100,000 as many people believe.
Third, most depreciation occurs within the first five to 10 years after you purchase a brand new asset. If you buy a house or apartment when it’s brand new, or in the first few years afterwards, the building will be losing value.
There is a danger that the depreciation of the building may be greater than the appreciation of the land it sits on. This could result in a loss when you sell.  
Fortunately, there is a way you can minimise the downside of depreciation, yet still gain some of its benefits.
By selecting an investment property that is at least 10 years old, and holding it for a minimum of seven to 10 years (the length of a full property market cycle) you’ll still be able to claim some depreciation, whilst giving capital growth a chance to counteract its effects.  
When used wisely, depreciation can be a useful tool in managing cashflow and helping you hold the investment over the short term. But if you focus equally on the long-term outlook by choosing an asset with strong capital growth potential, you can maximise the value of your property and take much of the sting out of the depreciation tail.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and homebuyers.
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Depreciation can be a useful property investment tool: Mark Armstrong

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Property Tycoon is back for another big year of auction tipping.
There's now a website, <a target="_blank" href="https://mail.privatemedia.com.au/owa/redir.aspx?C=KgoIydkbbkqcxEmtHCpjYzenKRip4s8ILx-ixDagf2W2XMdG8J7GWA4FzDXhsR5a7S8fbUw_Jbw.&amp;URL=http%3a%2f%2fwww.propertytycoon.com.au%2f">www.propertytycoon.com.au</a>, where punters can guess five auction results in Melbourne and Sydney, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener. This season <a style="font-size: 14px;" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" target="_blank" rel="nofollow">Property Observer readers have their own competition, which you can access here</a><a href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" rel="nofollow">.</a> The winner of the overall competition will win $1,000.
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This weekend, a couple of period gems will go under the hammer, and their agents say you will need deep pockets to add them to your portfolio.
Jellis Craig agent Clayton Smith says many people have fallen in love with <a href="https://www.realestate.com.au/property-house-vic-richmond-112894751" target="_blank">10 Erin Street, Richmond</a> (pictured below). However, the $2.5 million-plus price tag is a barrier.
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<div><img src="/images/stories/2013/02/tippingfeb25one.jpg" width="470" height="354" alt="tippingfeb25one"></div>
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This grand Victorian residence on an elevated site is one of Richmond Hill's most illustrious homes. This prime location ensures a great lifestyle and is close to Bridge Road, fine local parks and gardens, the MCG and Melbourne's sporting and arts precincts.
Another stunning Victorian house to be auctioned on Saturday is <a href="https://www.realestate.com.au/property-house-nsw-paddington-112903655" target="_blank">44 Gordon Street, Paddington</a>. This property (pictured below) ticks all the boxes with four bedrooms, two bathrooms and a double lock up garage at the rear.
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<div><img src="/images/stories/2013/02/tippingfeb25two.jpg" width="470" height="351" alt="tippingfeb25two"></div>
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The current owner bought the property in 2004 when they paid $2.37 million. McGrath agent Ben Collier has indicated the property will sell in excess of $3 million this time around.
If you think you know what it will sell for place a tip at <a rel="nofollow" href="https://www.propertytycoon.com.au/" target="_blank">Property Tycoon</a>.
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Auction tipping returns with Victorian beauties

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Auction clearance rates <a href="https://www.propertyobserver.com.au/auctions/apm-s-melbourne-auction-results/2013021759384?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_self">nudged 70%</a> in Melbourne last weekend and now all the major banks have followed Westpac’s lead in dropping their two year fixed rate to 4.99%. The scene is set for the market to move – particularly the inner urban areas – and I believe it will grow by more than 10% this year.
For many people, this is a scary proposition, as getting into the market is already difficult. With four young children of my own at home, I often wonder how on earth they are going to be able to afford to get into the market. I am sure it will just be a matter of time before they stop asking for iPods and get into more serious requests.
Many parents are already being called upon to assist their children either into their first home or to upsize as they start a family. It is important, however, that both parties enter any arrangement with eyes wide open.
Let’s say your child wants to purchase a $500,000 property (a fairly modest price in many parts of Melbourne). Without a substantial deposit, they are forced to borrow 95 per cent of the purchase price, or $475,000. Unless they can find a way to reduce the loan amount to 80% of the purchase price, or $400,000, they will have to pay mortgage insurance. On a loan of $475,000, this could cost around $15,000.
To avoid mortgage insurance, they need a $100,000 deposit plus around $25,000 to cover stamp duty and other costs. They either need to save $125,000 or call in some help.
If you are willing and able to help, that’s great — but what’s the best way to do it, at a time in life when you are probably focused on saving for your retirement and can ill afford to risk your hard-earned savings?
Option One is to put the funds into a term deposit and offer that as security for the loan. This carries relatively little risk for you because it doesn’t make you responsible for paying back the loan.
In this scenario, they borrow 100% of the property value with a principal and interest loan in their own name. Over time, with the combined effects of loan repayments and capital growth, the loan balance will drop to 80% of the property’s current value.
They should keep an eye on sales results for similar properties in the local area, and ask a local estate agent to give an opinion on the property’s current market value. If it looks like the value has grown to the level where the loan is less than 80%, they can ask their lender or broker to arrange a new valuation. No need to pay for it as many banks now provide free upfront valuations.
If the valuation confirms that they have reached the 80% mark, the lender can release the term deposit and the money is yours again to do with as you choose.
What if you don’t have a lazy $125,000 in cash? Option Two is to take out a line of credit against your family home or investment property. You transfer them the funds, and they take out a $400,000 loan in their name. This option is relatively low risk for you because you are not responsible for the loan repayments. However, you need to understand that lenders charge interest on funds withdrawn from a line of credit. The rate is generally around .15% higher than a normal home loan.
Option Three carries more risk for you and should not be entered into lightly. Under this option you put up the family home or investment property as security for their loan. In this case, you become guarantors and therefore responsible for the loan. If they don’t meet the repayments, you could lose the property, though this only happens in extreme situations.
If you choose this option, it’s preferable to ask for a limited liability guarantee, which means you are not liable for the whole loan amount. In addition it is better, if possible, to use an investment property as security. This way, if the worst happens, the family home won’t be jeopardised.
No matter which option you choose, you should aim to minimise the level of risk and the length of time your funds are tied up. The sooner they can take full responsibility for their financial affairs, the better off everyone will be.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers
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How to help your children break into the market: Mark Armstrong

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The global financial crisis has had a significant impact on the way Australians view American society. When I first visited the United States around 15 years ago they thought we wrestled crocodiles, called prawns shrimp and rode kangaroos to work. Their view of Australia was driven by the media they were consuming. 
We all laughed at the simple attitudes of the American public and how naive their view of Australia was, but we have to be careful not to fall into similar traps. 
If we were to believe the media, we would be under the impression that America is one massive foreclosure sign and every property has lost more than half its pre-GFC value. While there is no doubt many property markets in the States are in serious trouble, there are some markets that have held their ground. 
Take, for example, <a target="_blank" href="https://www.zillow.com/homedetails/15-W-11th-St-APT-3B-New-York-NY-10011/72513457_zpid/">this one-bedroom apartment</a> in New York City's Greenwich Village.
 <img alt="greenwich" src="/images/stories/2013/02/greenwich.jpg" height="174" width="300">
It was purchased in 2007 just before the GFC for $1.2 million. Five years later it came out with its head held high and sold for a respectable $1.15 million. 
Similar examples can be found on the west coast of America. In San Francisco <a href="https://www.zillow.com/homedetails/554-Valley-St-San-Francisco-CA-94131/15182872_zpid/" target="_blank">this four-bedroom family home</a> sold for $2,879,000 in 2007 and was sold again in Jan this year $2,725,000.
<img src="/images/stories/2013/02/sanfran.jpg" alt="sanfran" height="196" width="150">
Yes, they both slipped back by a small amount, but even during one of the worst economic environments ever seen these properties protected the majority of their owners’ capital. 
So why does this happen, and what can we learn from it?
Both these properties are located in major cities with strong employment centres, infrastructure and schools. Further, they are in areas where there is a shortage of land, and both are period-style homes that are almost impossible to replace today.
In short, these properties have consistent underlying demand from a large number of people and a limited supply. The laws of supply and demand indicate that regardless of the market conditions these properties are more likely to retain their value during down times and grow well when times are good.
These laws of supply and demand do not have a nationality and will apply to any property market all across the world. They were in full flight on Saturday when a massive crowd turned out for the auction of <a target="_blank" href="https://www.realestate.com.au/property-house-vic-thornbury-112730267">154 Hutton Street, Thornbury</a> (pictured below).
<img alt="huttonst" height="353" width="470" src="/images/stories/2013/02/huttonst.jpg">
During the campaign for this run down timber Edwardian more than 3,000 people viewed the listing online. This translated into more than 360 people turning up to the open for inspections. Impressive numbers in any market.
The property ticks the boxes of limited supply and strong demand. It lies within seven kilometres of Melbourne and sits on around 600 square metres of land. It was also well located to shops, transport, parks and schools. To top it off, the property was seen by many buyers as affordable, as the agent was expecting it to sell for around $800,000.
The scene was set for a big auction as multiple buyers viewed this property as "the one". With the exception of a few under-bidders, the auction did not disappoint anyone. It was declared on the market at $835,000 and when the hammer fell it had exceeded this point by almost $100,000, selling for $933,000.
In a strong market all property looks good, but it's not until the market turns south that the cream rises to the top. As the market heats up into 2013 buyers would be wise not to lose sight of the laws of supply and demand.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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What the American housing market crash can teach Australia

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 The Melbourne property market had everything thrown at it at 2012 with low clearance rates, international reports that stated it is overvalued and a barrage of negative reports in the media suggesting the market was going to experience a US-style crash.
But the latest figures from the REIV show not only did the property market hold its ground, but it actually began to pick itself up from the canvas and showed significant growth in the last quarter of the year.
<img alt="armstrongjan30" height="91" width="470" src="/images/stories/2013/01/armstrongjan30.png">
While the 2012 year started on shaking ground as property values continued to slide, the December quarter showed a massive 7.8% jump in median value for houses.
This growth is in line with what I was seeing in the market as reported in my September Property Observer article<a target="_blank" href="https://www.propertyobserver.com.au/residential/a-new-breed-of-upgrading-home-investors-injects-buoyancy-into-the-subdued-suburban-property-market-mark-armstrong/2012091856658"> A new breed of upgrading ‘home investors’ injects buoyancy into the subdued suburban property market.</a>
The research showed strong demand coming from home buyers who were looking to upgrade the family home and take advantage of a soft property market.
This jump in last quarter median values turned the corner for the housing market and resulted in a 4.7% growth for the year. Melbourne apartments also performed well. with 4.2% growth in the last quarter pushing it into positive territory by years end.
The wash-up is the market has proved to be very resilient and as we look forward into the 2013 there are some clear signs the property market will continue this trend and some sectors may even return to the heady heights of in explosive growth seen in 2009. The catalyst will be a growth in confidence driven by interest rates once again.
While history is no guarantee of what will happen in the future it does provide some useful insights. In September 2008 the cash rate was at 7%, seven months later it had plummeted to 3% and property investors exploded back onto the scene forcing the property market in Melbourne to surge by more than 20% in 2009.
This time around the RBA has been a bit more tentative with the trigger. It has been careful not to cause a frenzy and has slowly lowered rates to entice investment back.
The last upward interest rate movement was way back in November 2010, and the RBA has met to discuss the economies outlook 23 times since. On 17 of those occasions it has decided to leave the rates on hold. In the remaining meetings the board have voted to lower rates.  Rates have now fallen by 1.75% at sit at the 2009 level of 3%.
<img alt="armstrongjan301" height="199" width="470" src="/images/stories/2013/01/armstrongjan301.png">
This slow decline in rates has meant property investors have sat on the sidelines and watched. This will not last forever.
I don’t think the return of property investors will be as bullish as we experienced in 2009, and this is a good thing. Any market that experiences euphoric highs is destined to fall on the other side. I predict the market will learn from its recent experience and move into a more sustainable growth pattern.
Interest rates are not the only factor weighing on investors' minds. Their confidence is being enhanced by the fact many Australians have money burning a hole in their pockets. According to the RBA household savings rates are at the highest levels since the mid ’80s. They have been trending up since the mid-2000s and now hover around 10% of disposable income.
In addition, many borrowers have been making substantial excess principal repayments in recent years, and this will increase their equity and cashflow positions.
 
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
 
 
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Melbourne property market very resilient and may return to heady heights of 2009 in some sectors: Mark Armstrong

<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, Castile, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Mark Armstrong

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