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APRA  <a target="_blank" href="https://www.apra.gov.au/Pages/default.aspx">recently revealed</a> that the Australian superannuation industry lost $18.5 billion of its clients’ money in the last financial year. 
It’s been a tough year for all types of investments, so let’s look at the returns over the longer term. 
They’re not much better. 
Apparently the average rate of return from the superannuation industry over the last 15 years  (between 1997 and June 2012) was 4.9% a year, and this came with a volatility of 8.4%. 
Not a very good return considering that for most of that time you could have invested in government bonds with minimum risk and received a divided of over 5% and the average return from the All Ordinaries accumulation index for the past 15 years has been 7.03% per annum.
Reality Check
A recent <a href="https://www.rabobank.com.au/Pages/new.aspx">Rabobank poll</a> showed that baby boomers are retiring, on average, on about $200,000.  
While most folks don’t know how much they need in retirement, it’s generally accepted by the financial planning world that you need around $1 million in retirement to live comfortably.
By the way, I think you need much, much more!
The way planners see it is that, assuming you live in retirement for 15 years with no extra income, $1 million would give you an annual income of around $65,000.
So you can see retiring on $200,000 simply won’t cut it.
Little wonder that more and more baby boomers are looking at taking control of their financial future and setting up self-managed super funds (SMSF).
What’s are our options?
If these facts teach us anything, it is that it’s up to each of us to become financially fluent and take charge of our future. 
More baby boomers are setting up their own self-managed super funds and taking their destiny in their hands. Many are investing in shares, but more and more are investing in property. As a matter of fact I have a mixture of both in my super fund.
But my personal preference is for property, largely due to the fact that residential real estate has proven itself to be less volatile than shares or managed funds. 
Combining the security of bricks and mortar with the tax office changing superannuation regulations back in 2007 so that people can borrow within their own SMSFs, it is not surprisingly that real estate is becoming an increasingly popular super fund cash cow. 
Fact is more and more Australians are recognising the benefits of property as a strong, stable asset base for their super funds, given its ability to generate excellent returns and capital gains over the long term. 
Now, not only can you borrow up to 70% (and under certain circumstances even up to 80%) of a property’s value to invest within your SMSF, you can also seek extra funds to make improvements on the residential properties in your SMSF (with some conditions of course and with special emphasis on repair and maintenance versus improvements). 
So what are the main advantages and disadvantages of taking this tact when it comes to building your own retirement nest egg? 
The good
<ul>
<li>
Control – you have complete control over your SMSF rather than entrusting your future financial wellbeing to a complete stranger, who will take your hard-earned cash and invest it in shares and managed funds that may or may not perform.</li>
<li>
Tax savings – If you buy and hold the property within your fund until you retire and your super goes into the pension phase, you will be exempt from paying either capital gains tax if you sell the investment, or income tax on any rental income should you decide to hang onto it. Before you retire, any capital gains or rental income generated by your SMSF are taxed at a rate of 15%, or 10% CGT is applicable if you hold onto the property for over a year.</li>
<li>You could have a diversified investment portfolio that is not reliant on just one investment vehicle, meaning you will have better financial security for your future. </li>
</ul>
The bad
<ul>
<li>
The cost – There can be a significant cost in initially setting up your super fund, and the annual compliance costs could be up to a few thousand dollars. But don’t forget the management fees you’re saving by not leaving your money with a fund manager.</li>
</ul>
<ul>
<li>
Higher borrowing costs – Currently there are slightly higher fees involved in borrowing to buy property through your SMSF.</li>
<li>
The confusion – There’s no denying that managing your own super fund can be a minefield of complicated rules and regulations. Get something wrong and you could end up paying hefty penalties. Of course, you can always pay a professional to manage it on your behalf, and this is something I would advise anyone with an SMSF to do – whether they’re buying real estate or not.</li>
<li>
The money – You generally need a bigger deposit to buy a property in your super fund than you need to buy one in your personal name. How much you need will also depend on the amount of your super contributions. This is not a strategy for someone with a small amount of cash in their super. </li>
</ul>
Be careful
Of course before you go down the route of setting up your own SMSF, it is critical to seek independent advice from a properly qualified financial planner and to ensure you set up things correctly so you don’t fall afoul of the tax man. 
With 5.3 million baby boomers moving transitioning into retirement over the next 15 years or so, I see properties bought in a SMSF as a major driver of property values over the next decade.
Michael Yardney is the director of <a target="_blank" href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a>, a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the<a target="_blank" href="https://propertyupdate.com.au/category/property-investment/"> Property Investment Update blog.</a>
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myardney-DFoGhGbSJX

How investing in property through a self-managed super fund can help you retire comfortably

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Despite our property markets having turned the corner and the lowest interest rates for many, many years, the fact that first-home buyers (FHBs) have been sitting on the sidelines rather than buying into the market has confounded many property watchers.
It hasn’t surprised me for a number of reasons:
<ol>
<li>
Looking back at previous cycles, FHBs haven’t been as active at the beginning of the property cycle as later on unless they were induced to buy through enticements like the extra home buyers boosts they received recently; and
</li>
<li>The incentives given to FHBs a few years ago brought forward demand and depleted the pipeline of potential FHBs. 
</li>
</ol>
FHB commitments down 10.6% year-on-year  
While the number of first-home buyer finance commitments rose 17.0% in May, the figures are still down –10.6% year-on-year.
 <img alt="yards_aug_29" height="221" width="470" src="/images/stories/2013/08/yards_aug_29.jpg">      
Based on finance approvals it seems that currently around 12% of property purchasers are first-homebuyers, around 33% are investors and 55% are people buying their second or subsequent home.
 <img alt="yards_aug_29_two" height="329" width="470" src="/images/stories/2013/08/yards_aug_29_two.jpg">  
But they’re not buying new homes…  
While many of the government incentives encourage FHBs to buy a new dwelling, it seems that only 18% or so of them are buying a new home, with most choosing to buy an existing property.  
In many cases they find that they can purchase a two or three-year-old home in the outer suburbs cheaper than they can get a new dwelling or they find an established apartment with a superior floor plan cheaper than they can buy a new apartment.  
According to an interesting report by Westpac:
“The dominant reason FHBs are missing is because of the 'shadow effect' of earlier pull-forwards in activity associated with changes in government assistance. Although these were not as large as the 2009-10 pull-forward they have effectively depleted the pipeline of potential FHBs which could take over a year to rebuild.”  
Also…  
“The Westpac-Melbourne Institute Consumer survey suggests buyer perceptions have also been a restraining factor, most likely relating to affordability issues. Overly conservative assumptions around mortgage interest rates may be muting the response to what is otherwise a reasonably positive picture on affordability.”
 
Is housing really unaffordable?  
Housing affordability has been in the headlines again, however, while first-homebuyers might find it hard to believe, housing affordability conditions in Australia are among the best we’ve seen for decades.  
While house prices may in general be on the up, weighing against that are lower interest rates and rising incomes, which make for a better outlook for those trying to buy.  
Let’s face it, it’s never been easy for FHBs to get their foot on the property ladder, but some are making it harder for themselves by wanting the type of property today that it took their parents 30 or 40 years to afford.  
Many are looking for a three-bedroom home with all the modern appliances and a big front and backyard, while others are looking for a swish apartment in lifestyle suburbs, while their parents are likely to have had more modest expectations for their first property.  
Before you call me unsympathetic to the plight of FHBs…  
Now don’t misunderstand me, I have six children in my blended family, some who own their own homes, but most are still waiting to get in the property market.  
However, only last week one of my sons was offered finance and a mortgage for 95% of the value of his first property, because he’d had a credit card with a major bank for six months. Of course he also passed their other lending criteria.  
The banks are back to lending money again and those who practise the age-old discipline of spending less than they earn, investing the balance and then reinvesting until they have a sufficient deposit will be able to join the ranks of home owners in the future.  
Fact is the property cycle will move on and real estate values will increase.  While some will get on board and buy a home, others who spend money they haven’t got or keep buying the latest toys and gadgets are more likely to remain tenants.
<hr>
Michael Yardney is a director of <a rel="nofollow" href="https://www.metropole.com.au/">Metropole Property Strategists</a>.
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Where have all the first-home buyers gone? Michael Yardney

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Are great property investors born or made?  
If you’re like me you were told from very young age that if you want to succeed at something – be it sport, school or a musical instrument – that you must put in time, hard work and importantly, practice.  
Most of us learnt our times tables by repeating them over and over – practicing multiplication was the most effective means of learning this skill.  
Well the same applies to property investment. Successful property investors are not born with a “how to” manual and they certainly don’t rely on luck.  
Fact is one of the big differences between the athletes, musicians and business people who excel in their chosen field, compared to the “average Joe” is in the years of practice they dedicate to honing their craft.  
And this also applies to property investors.  
Successful property investors understand that to be good at what they do – creating wealth with real estate – they must learn the rules, gain experience by “doing it” and then improve by refining how they do it.  
Training for investment success
In his book Outlier, Malcolm Gladwell noted that in most occupations where complex cognitive and motor skills are required – such as performing complicated surgery or playing the piano – experts in these fields have had an average 10,000 hours of training.  
The key is being able to eliminate all the “noise.”  
You need to be able to chunk down all the information available into usable bite-size pieces through a finely honed retrieval system that can quickly screen out irrelevant options given the specific situation.  
This skill comes from familiarity gained by “doing it.”  
It’s like top tennis players who through experience have developed a sense of where a ball is likely to be served by unconsciously noting the subtle changes in the stance of their opponent.  Or the champion cricketer who seems able to anticipate where a ball will be bowled even before it has left the bowler’s hand.  
It’s the same type of perspective that gives seasoned property investors an edge over the average investor.  
Think about it…  
Having lived and invested though five property cycles means I don’t get carried away by all the property naysayers and doomsday merchants that seem to concern many other investors.  
I’m not an eternal optimist. I’ve just seen it all before.  
Consistency is key
No matter which investment strategy you select, be it capital growth or cash flow, renovations or property development; you’re likely to find that a small group of investors, say 10% do really well and the rest struggle.  
Rather than jumping from one shiny thing to the next like the average investor, these successful investors do the same things over and over again.  
They set their goals, map their course and then keep doing what works, refining their skills along the way.  
By sticking with a tried and tested strategy, these investors know how to navigate any tricky bumps in the road and become accustomed to seeing the opportunities and potential earning power in market movements.  
This means their success depends on them and the skills they have refined throughout their investment journey, rather than on the market place.  
But that’s not how most beginning investors do it.  
They want to climb the property ladder all the way to the top and nothing will stand in their way.  
They start using the latest fad from some get rich quick seminar, buy their first investment and then look for the next big way to make millions. And thus begins a cycle of jumping from one bandwagon to the next.  
However we know most investors never achieve financial freedom. In fact most never get past their second property.  
This is in part because they have never refined their real estate strategy and taken the time to learn the rules of the game, so they inevitably fall at the first hurdle and more often than not, call it quits before they make any progress at all.  
That’s why around 20% of those who buy an investment property sell up in the first year and around 50% of those getting involved in real estate investment sell up in the first 5 years.    
So when will I become an expert?
The way to become an expert is to do one thing a hundred times, rather than 100 things once.  
Yes practice makes perfect, which means that rather than looking for the “one big deal that will make you rich quickly”, you should start your investment journey gently, knowing that you’ll make mistakes along the way and learning from these will make you a better investor.
 
Before you panic about having to commit 10,000 plus hours to property investment before you can call yourself an “expert”, let me assure you that there are ways to speed up the learning process in real estate.  
The simplest is to find a mentor who has already achieved what you want to achieve and let them guide you.  
Study how they think, because it’s likely a large part of their success comes from their mindset.  
Then emulate their successful behaviours and learn from the mistakes they made in order to advance your own skills and refine your own strategies.  
How will you know when you’re an expert?  
The main thing that separates the successful investor from the wannabe’s is an ability to consistently outperform the averages.  
And yes, to get to this level of expertise, takes time, patience and practice.
 
<hr>
 Michael Yardney is a director of <a rel="nofollow" href="https://www.metropole.com.au/">Metropole Property Strategists</a>.
 
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Successful property investors put in time, hard work and importantly, practice: Michael Yardney

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As the cycle moves on and our property markets boom, memories of the last few difficult years will slowly fade.  

However, it would be a pity to have lived through the challenging times many property investors experienced over the last years without learning some lessons so that we are not destined to repeat the pain.  
So what did you learn from the property downturn?  
Probably the most important lesson we can all learn is to never get too carried away when the market is booming, or too disenchanted during property slumps. Letting your emotions drive your investments is a sure-fire way to disaster.  
To ensure you never get caught again, let’s look at five big lessons I’ve learned about property booms in my close to 40 years of investing.  
Lesson one: Booms don’t last forever
During a boom everyone is optimistic and expects the good times to last forever, just as we lose our confidence during a downturn.  
Our property market behaves cyclically and each boom sets us up for the next downturn, just as each downturn paves the way for the next boom. 
Let’s face it; while the news regarding property is positive today, we know that over the next few years the buoyant market conditions will be followed by a property bust and then another boom.
And over the next decade or two we could even have a recession (we haven’t had one since the early 90s) and we’ll most likely have another depression one day.
The lesson from all this is that even as you take advantage of our booming markets, get prepared for the next phase of the property cycle. During the last cycle, most investors didn't really have their downside covered or their upsides maximized.  
Lesson two: Beware of doomsayers
As long as I have been investing I remember hearing people with excuses why property prices will stop rising, or even worse, why property values will plummet.    
However in that time, well located properties have doubled in value every eight to 10 years.  
Fear is a very powerful emotion, and one that the media used to grab our attention. Sadly some people miss out on the opportunity to develop their own financial independence because they listen to the messages of those who want to deflate the financial dreams of their fellow Australians.  
Lesson three: Follow a system
Smart investors follow a system to take the emotion out of their decisions and ensure they don’t speculate.  
This may be boring, but it’s profitable.  
Let's be honest, almost anyone can make money during a property boom because the market covers up most mistakes. But many investors without a system found themselves in financial trouble when the market turned.  
Warren Buffett said it succinctly: "You only find out who is swimming naked when the tide goes out." In other words, if you aren't following a system that works in all market conditions you will be caught naked when the market changes.  
If you prefer to have consistent profits and reduced risk, follow a proven system. Make you’re investing boring, so the rest of your life can be exciting.  
Lesson four: Get rich quick = get poor quick
Real estate is a long term investment yet some investors chase the “fast money.”  
You’ve probably met people like that - they look for that deal that will make them fabulously rich. When you see them a year later, they’re usually no better off financially and still talking about the next deal that will make them rich.  
They are often influenced by the latest get-rich-quick artist with a great story about how you can join them and become stupendously wealthy.  
Their stories can be very compelling, even hard to resist.  
They often pander to the wishes of people who would like to give up their day job to get involved in property full time, but in reality it takes most people many years to accumulate sufficient assets to do this.  
Patience is an investment virtue. Warren Buffett said it right when he explained that: “Wealth is the transfer on money from the impatient to the patient.”  
Lesson five: It’s about the property 
 You’re in the business of property investment, yet during the last boom many investors forgot the age-old property fundamentals of buying the best property they could afford in proven locations.
Instead they got sidetracked by glamorous finance or tax strategies and some lost out.
Smart investors do it differently. They make educated investment decisions based on research and buy a property below its intrinsic value, in an area that has above average long term capital growth and then add value creating some extra capital growth.
These are just five of the many lessons that I learned from previous property cycles.  
If you head these teachings the rollercoaster ride will not be as dramatic next time round because you won’t let emotions drive your investment decisions. Both fear and greed will drive you down the wrong path.  
Promise yourself that as the boom rolls out you won't get too excited, then when the next downturn hits (and you know it will) you can just confidently smile because you will have made the most of our next property boom.
 
<hr>
 Michael Yardney is a director of <a href="https://www.metropole.com.au/" rel="nofollow">Metropole Property Strategists</a>.
 
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Five lessons I’ve learned from past property booms: Michael Yardney

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There is an old army expression that cautions us to “hurry up and wait”. 
   This means that you should be prepared to leap into action at the drop of a hat, whilst exercising patience sitting around and waiting for that moment to come, only to do the same thing all over again as the cycle of waiting, then proceeding very quickly and then waiting some more continues.   This expression is very apt for those who want to achieve long term wealth through real estate or any other asset class.   While it is necessary to be pro-active as to the strategy you take into the bricks and mortar battleground, there are many times when the best thing to do is nothing at all and simply wait for the right time or for the power of leverage and compounding to work its magic.   And yes, you guessed it, this too will follow a cycle of intensive moments of action and activity followed by a hibernation period, where you wait for the value of the property you bought to grow in order to fund the next investment. The property cycle.
If you’ve been involved in property for a while you’d know the market moves in cycles. After each period of strong property growth, prices stagnate or perhaps drop a little and then flatten out before once again they begin to rise. 
   Just another instance of “hurry up and wait” isn’t it?   Strategic property investors know how to use this cycle to their advantage.   Rather than waiting for the times when all the good news has already happened and is then being reported in the media, they “hurry up” and buy their investments at the bottom of the cycle, taking advantage while everyone else is waiting.   They then recognise the right thing to do is wait until they have built up enough capital to refinance and use the equity in their investment to make the next purchase.   The power of this is that if you buy the right type of property, one that will be in continuous strong demand by a wide range of owner occupiers, regardless of the housing cycle’s ups and downs, the value of your property is likely to double every eight to 10 years.   Of course you can speed this up by buying well, purchasing a property in an area that outperforms the averages, by choosing a special property with unique features that will give it a scarcity factor and by “manufacturing” capital growth through renovations or redevelopment.   This minimises your risks and maximises your upside. Each strand represents a way of making money from property and combining all four is a powerful way of putting the odds in your favour.   Patience equals profits.
The trick to getting the cycle working to your advantage as you build a long term, wealth generating residential property portfolio, is to be patient. 
   Warren Buffett famously said that “wealth is the transfer of money from the impatient to the patient,” and this is very true in property.   I’ve seen so many investors so keen to do something, in fact so keen to do anything that they make mistakes they regret for years.   Some buy cheap properties because they can’t afford to buy good properties. They buy in secondary locations or in new estates where capital growth languishes or in small regional towns and then find they’ve bought a lemon.   Others don’t wait to save enough of a deposit so they speculate and buy off-the-plan, lured by the developer’s flashy promise of profits before they settle their purchase. Unfortunately many find that on completion the value of their property falls short of their contract price and rather than making a profit they’ve lost out.   Then there are the inexperienced investors who attend a seminar and walk away with unrealistic dreams of putting down a dollar (or less) and getting their foot in the property door and walking away rich in just a few years.   Yet others look for excitement in their property ventures and get involved in speculative endeavours or property development before they’ve cut their teeth on traditional investments.   Instead I suggest they should look for their excitement elsewhere. Go bungy jumping! Go trail bike riding! Your property investments should be boring so the rest of your life can be exciting.   Sometimes, as boring as it might seem, the best thing you can do is to wait and do nothing! In fact over the years I’ve made more money by saying “no” to deals than “yes” to so-called opportunities.   Sometimes the best thing you can do is to wait for the time to be right.   Wait until you have enough deposit or sufficient serviceability for a loan to buy the right property in the right location.   Or wait until that right property comes along and then wait out the negotiation process to get the best possible deal.   The take home lesson is that just like being in the military, investing in property is not a fast paced world of non-stop, go-go-go action. In order to prosper in property, you must be content to sit and do nothing for long periods of time, often years, while you allow the market to do the work for you.   It might not be exciting in the beginning, but when you see the fruits of your initial labours and the periods of hibernation starting to build, you’ll think patience is indeed a very valuable virtue. 
 
<hr>
 Michael Yardney is a director of <a rel="nofollow" href="https://www.metropole.com.au/">Metropole Property Strategists</a>.
 
 
 
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Sometimes the best thing you can do is to wait for the right time: Michael Yardney

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There’s a school of thought that suggests buying affordable property is the way to go for property investors. The argument goes – there will always be demand for this type of property, especially by young families.
This has some investors buying houses in the newer or outer fringe suburbs of our capital cities as they read that these are some of the fastest-growing locations in Australia.
While I accept that the population in some of these suburbs will double in size over the next 30 years, and they may be a great place to bring up your family, that doesn’t mean that houses in the new outer fringe suburbs make good investments.
Population growth does not necessarily translate to capital growth. In fact, I’ve never considered these areas investment grade locations.
Poor planning
While many new outer suburbs have been planned to be affordable, and may not be expensive in terms of money, they are expensive in terms of travel costs and particularly in terms of health.
The problem is in some estates poor planning has created a dependency on cars as many have poor ‘walkability’ and poor public transport links. There is also a paucity of parks and open spaces in many new housing estates.
In fact in 2012 a Victorian State Government study showed that some new suburbs in Melbourne (and I can only assume the same applies to some other areas of Australia) are so poorly designed that residents face an epidemic of chronic diseases such as anxiety, obesity and depression that may cause these locations to become the slums of the future.
Of course there are other reasons houses in new estates don’t make good investments
Residents in these areas tend to have less disposable income than people who live in more affluent suburbs, which means that these regions suffer most in tough times or when interest rates rise.
Also, one of the big factors that enhances capital growth is scarcity, and that’s something missing in these suburbs. Many properties look the same, and there’s always another estate with more land and similar houses just across the road.
Another reason I would avoid investing in these areas is their demographics, as they don’t attract the same demand from a diversity of tenants as the inner and middle ring suburbs do.
Then there is a very low land to asset ratio
I know some investors buy houses because they’ve heard that land appreciates in value.
But when you think about it, when buying a new house on a block of land in one of these outer suburbs you may be paying $450,000, of which the land (the component which increases in value), could be worth much less than half – say around $200,000.
What’s the alternative?
While many homebuyers still would like to own a home, for them it’s the great Australian dream, an increasing large demographic of young families and older downsizers are trading their backyards for balconies and an inner suburban lifestyle.
In fact in many of our capital city built-up suburbs, established apartments have similar capital growth, in fact better capital growth, to houses and currently, with low vacancy rates, investors are achieving higher yields for apartments.
Of course, the rental is not the most important factor; we want properties that are going to grow in value significantly.
What it all boils down to is that as living in the more leafy inner and middle ring suburbs grows in popularity, it will come at a cost – higher property prices and higher rentals. That’s why I’m buying my investment properties in these locations.

<hr>
Michael Yardney is a director of <a href="https://www.metropole.com.au/" rel="nofollow">Metropole Property Strategists</a>, who create wealth for their clients through independent, unbiased property advice and advocacy. Subscribe to his <a href="https://propertyupdate.com.au/category/property-investment/" rel="nofollow">Property Update</a> blog.
 
 
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Affordable properties come at a price: Michael Yardney

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Let's be honest, most of us want to be rich and many of us are fascinated by those who already are. How did they do it? How can we do it too?
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Michael Yardney is a director of <a href="https://www.metropole.com.au/" rel="nofollow">Metropole Property Strategists</a>.
You can also read Michael Yardney's full article on <a target="_blank" href="https://www.propertyobserver.com.au/residential/why-property-investors-make-money-work-for-them-michael-yardney/2013090564815">why property investors make money work for them</a>.
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Why property investors develop financial freedom: Michael Yardney

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Let’s be honest, most of us want to be rich and many of us are fascinated by those who already are.  
How did they do it? How can we do it too?  
The truth is wealthy people don’t do different thing, they just do these things in a different way; from the way they think to the actions that they take.  
I’ll let you in on a little secret, not everybody has to work hard for their money.  
People who own businesses have employees who are willing to work for money, whereas the business owner generally has his money working for him. The same is true for investors, their money works for them.  
It’s called passive income. Being a property investor or a business owner is like owning the proverbial money tree – you control something that makes money for you, without the need to even be there.  
In his <a target="_blank" href="https://www.richdad.com/Home.aspx">Rich Dad, Poor Dad</a> series of books, Robert Kiyosaki explains how the rich differ from the poor. It’s not just because they have more money. The main difference is how they think about and interact with their money.  
When it comes down to how people make money, we can all be placed in one of four categories:   
1. The employed – have a job
Employees trade hours for dollars; however what they really get are leftovers – after the government takes its share in taxes.  
“So what? They do that to everyone!” you may be thinking.  
Well no, they don’t. Business owners and investors only pay tax on what’s left over after their bills are paid.  
Wouldn’t it be nice to only have to pay tax on what you don’t spend?  
2. The self-employed – own a job <ol></ol>
Self-employed people and professionals usually want to be their own boss. They’re prepared to work hard, but often what they’ve done is swap one boss for hundreds of bosses – customers or clients.  
In reality, self-employed people aren’t business owners – they still work for their money, but they’re somewhat better off than employed people because they’re able to take advantage of tax deductions that allow them to pay their business expenses before being taxed on what’s left over.  
3. The business owner – owns a system and people work for them
The true business owner not only doesn’t have to work, he doesn’t have to be at work every day, because he has a system and people to do it all for him, and possibly even supervisors to manage his workers.  
The true business owner asks, “Why do it yourself when you can employ someone to do it for you?”  
After initially investing in a business idea, and a business system, they let the money they have invested – which is now in the form of a business – work for them.  
4. The investor – money works for them <ol></ol>
Investors don’t have to work either, because their money works for them.  
If you hope to become rich at some point, you have to belong to this group because investors convert money into wealth.  
Obviously, you’re not going to jump from being an employee to a full time investor overnight. But you can start taking the steps to move from being an employee or self employed, by building your own property portfolio.  
Done correctly, income earning residential real estate can be your vehicle for getting out of the rat race!  
There are also many legal tax advantages available to investors. One of the reasons the rich get richer is that in some cases, they make millions and legally pay very little tax. That’s because they build their assets, not their income and make their money as investors, not workers.  
Imagine you own investment properties worth $1million that increases in value by 8% each year. In twelve months your asset base will have increased by $80,000, yet no tax is payable on this. Wealthy property investor can borrow against the increased value of their assets and use the money to reinvest or live off.  
Where do you stand?
Which category do you fit in? Are you an employee, self employed, a business owner or an investor?  
In the past there has been a slow but steady transfer of wealth from employees and self-employed to business owners and investors. They’re all playing the same game, but each group is playing with a different set of rules and their mindsets are poles apart.  
Employees and the self-employed work harder and harder, trying to build cashflow, yet many dig themselves deeper into a hole of consumer debt.  
In the meantime, business owners and investors slowly build up their assets. The employed and self-employed pay the most tax, while business owners and investors take advantage of legal tax loopholes.  
Logically, if you want to become wealthy you are going to have to become either a business owner or an investor. It’s just too hard to become rich as an employee or self-employed worker.  
Does that mean you should give up your day job?  
Not necessarily. Many employees have become very successful investors – in particular property investors.  
So rather than relinquish your job, I suggest you start educating yourself with the aim of becoming a property investor – initially in your spare time and then maybe, if you choose, on a full time basis.  
Should you become a business owner?  
Most small businesses fail in the first five years.  
In general I think the opportunity to become rich through successful property investment is much easier for the average Australian. That’s why I recommend you seriously consider making your fortune as an educated, financially fluent real estate investor who treats their property like a business.
 
<hr>
 Michael Yardney is a director of <a href="https://www.metropole.com.au/" rel="nofollow">Metropole Property Strategists</a>.
 
 
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Why property investors make money work for them: Michael Yardney

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Fast forward a few weeks and the federal election will be over, the result will be known and we'll be getting on with our lives. So what will that mean for the property markets? What will happen to the value of our home or investment property? Fact is, whatever the election result the news is good for our property markets. Let's look at 10 reasons why:
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What's going to happen to property after the election? Michael Yardney

An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" />

It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." />

Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Michael Yardney

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