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While we’re in uncharted territory in our financial markets and many investors are confused and concerned, older and more experienced investors have lived through similar times before. If you look back over the last decade, we’ve had the introduction of CGT, the dot-com stock market crash, September 11th, gone to war overseas, a change of government, periods of high interest rates and low interest rates, the GFC and a myriad other factors out of our control that seemed scary at the time and created uncertainty for our investments. The big lesson is: “This too shall pass.” 
Unfortunately these problems will not go away quickly, and we are entering new era in the financial markets. But this is not a time to panic or make rash emotional decisions. It is a time to learn from history. 
You just have to look back a few years to the correction after the GFC when local share prices plummeted 50%, but the peak-to-trough fall in Australian home values was just 3 to 4%. 
Compared with shares, property performed very well. 
It was much the same in 1987, when the share market crashed and property values languished for a while before property boom that created fortunes. 
This as also true after the dot-com boom collapsed into what became known as the “tech-wreck” in 2001. Many investors will remember the property boom of 2001-03. 
There’s no denying that things are probably going to get worse before they get better. 
However, if history repeats itself, as it surely will, while the majority of Australians will sit on the sidelines feeling sorry for themselves, successful investors are looking for and buying investment opportunities created by the change.
As always, some people will thrive not just survive in these difficult times.
Michael Yardney is the director of <a 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 href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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Lesson in turbulent market: This too shall pass

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Residential property is going through a crisis of confidence at present. The market has been stalled by a continual conveyor belt of concerns. We’re worrying about the rising cost of living, the threat of a housing bubble, the direction of interest rates, the state of our economy, an overseas sovereign default, the carbon tax and a whole lot more. 
Currently the market remains balanced between positive forces (our strong fundamentals) and negative forces (poor consumer confidence), and until some of the uncertainty clears we’ll see many home buyers and investors sitting on the sidelines waiting to see how things pan out. They’re scared of making a mistake and either buying the wrong property or over-committing to something that could slide in value. 
I recently read a good analogy: If a fortune teller told you that there was a 10% chance of dying in a car crash today, many would stay home or catch a train. It’s much the same with property at present. The chances of our markets crashing are small, but the average Aussie is playing it cautious. 
So is this a new era for our property markets? 
Over the last couple of years our property markets were similar to all the other cycles I have invested through. Fear and greed got out of balance and the price of some properties went up by over 20% a year for a few years. 
Many Australians stopped thinking of their homes primarily as shelter and a long-term investment, and had begun to think of their houses as a get-rich-quick scheme or a very large automatic teller machine. This was spurred on by rising property values and relatively easy credit. Banks were lending money at low interest rates and high loan-to-value ratios, but much of this has changed now. 
More recently many of us have found a renewed enthusiasm for filling our financial coffers. We’ve entered an era where we’re saving rather than consuming. 
The fact is we’re now saving 10% to 12% of what we earn, which is very different to a few years ago when we were spending more than we were earning by borrowing more and more. 
This renewed thrift is a good thing. Higher household savings, lower credit card debt and paying off our mortgages sooner is a sign of strength (rather than weakness) that will protect us if our economy hits some speed bumps. 
Where are we in the property cycle?
Today when I hear from investors who are concerned with the negative media about the property markets and the world financial markets, I try to reassure them that the property market is behaving normally. 
Let’s be clear: the property cycle peaked over a year ago now, but that doesn’t mean growth in values has stopped forever. It means the markets in our major cities are taking a breather allowing fundamentals to catch up. Some properties will continue to fall in value, others will hold their prices and yet others will creep up in value.
If you’ve owned real estate for a while you would realised that property markets have always moved in cycles of rapid upward movements, followed by periods of flat or even negative growth, followed by another move upwards. 
I have often suggested that the sooner an investor has traded or invested through a cycle or two, the better investor he or she will be. He or she will then understand that slower phases in the property cycle, such as the one we are currently experiencing, are normal and they will know how to take advantage of it. 
And the good news for property investors is that while prices remain flat, rents keep rising and investment yields are moving up. 
The market is correcting, not collapsing
Last week both <a target="_blank" title="RP Data" href="https://www.RPdata.com">RPData</a>  and <a target="_blank" title="APM" href="https://www.apm.com">Australian Property Monitors</a> released their latest property stats, and they showed that across Australia some markets have stalled while others are correcting, but other than the Gold Coast, our markets are not collapsing like many doomsayers were predicting.
<img src="/images/stories/yardneyaugust31.jpg">
Of course these overall figures don’t really indicate what is really happening. 
I accept that as our cities mature, they become more unaffordable to some. But as you look deeper into the figures you realise that in every state we have multiple property markets with some properties still increasing in value while others are falling in value. 
These different submarkets are defined by different geographic locations as well as different price points. 
Recently the higher-end properties have been suffering and the more affordable end of the market has held its values better. This is no real surprise, as over the long term lower-value properties have always had lower price volatility (their prices don’t fluctuate as much as high-value properties), but in general they also have lower capital growth. 
What’s ahead?
Looking ahead I see that there could be local consequences from the overseas problems some of us are worried about and for property investors these will hit hardest in the areas of the availability of finance and higher interest rates. 
However, overall our property markets will be underwritten by our generally strong economy, the deficiency of housing at a time of increasing demand from our growing population and changing demographics, rising cost of construction and possibly the new carbon tax – which is likely to make new housing more expensive. 
But I’m not suggesting we are in for another boom – not just yet, anyway. We are at a time in the cycle when we won’t experience extraordinary property growth for a while, but I’ve invested and prospered through times like this before. 
What this means is that to be a successful property investor over the next few years, it is likely you are going to need to take a different approach to the one you took over the last few years. 
Now, when there are fewer buyers and competition is reduced, is a good time for cashed-up investors to undertake thorough research, then takes advantage of the opportunities the current market presents by negotiating well and buying the right type of property. 
Michael Yardney is the director of <a 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 href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog. 
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A property market downswing is normal and presents good investment opportunities

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I’ve decided that I’m not going to participate in the property downturn, and I would like you to join me.
By now you are probably sick of hearing about the economic woes of the world and how Australia’s economy has now hit some speed bumps. Many of the messages we are getting tend to scare us, while at the same time completely ignoring the solutions on which we need to focus on to move forward.
Instead today I’m going to share with you four keys to succeed in any economy.
1. Take care of “your” economy.
Firstly you need to separate “the economy” from “your economy.” “The” economy is what is happening in the outside world. “Your” economy is what you think, how you feel and what you do.
While you have no control of the world economy, you do have responsibility for your own personal actions and prosperity. So focus internally.
 
Think about it – if I told you there would never be another property downturn or another recession, would you believe me?
So it should come as no surprise that we regularly have property downturns, that our property markets cycle has booms and busts and that most countries have a recession every seven to 10 years.
To stand out from the crowd you will firstly need to acknowledge that the economy and our property markets are cyclical. They have always been like that and will always be like that. Next you will have to work on your own economy.
2. Take stock.
Where is your focus? What are your beliefs? If you constantly focus on all the bad news and the difficult times, how does that make you feel?
As a property investor you need to focus on the opportunities around you because you will find what you look for. Your outside world is a reflection of your inside world. What you see is what you look for.
A great example of this was a few years ago when I took my son Harrison for a driving lesson. He was out looking at new cars and as we drove down the street he said “Hey Dad, look at the Corollas on the streets.” 
 
Interestingly I looked around and said, “Where? All I can see is Mercedes – look at all the Mercedes on the streets.”
 
What you look for is what you see. If you look for all the bad news you’ll find it. On the other hand, if you look for opportunities, you will find them. And boy, are there opportunities out there at present.
Interest rates are still reasonable and are likely to stay at these levels for a while. Residential rents are rising, which means that yields for investors are on the way up and the out-of-pocket expenses for owning a good investment property will decrease a bit.
With uncertainty about interest rates, the carbon tax, our local economy and overseas countries going belly up, many home owners and investors are sitting on the sidelines, meaning there is less competition for all the good properties that are out there.
If you focus on the bad times, your concerns about a downturn will become self-fulfilling. When you focus on the negatives, it’s hard to progress and prosper. Your negative beliefs will bring about negative behavior, which will limit your actions and limit your results.
But when you recognise that the current market presents you with a smorgasbord of opportunities you can step up and take advantage of them.
3. Take responsibility.
The value of your property portfolio may have dropped or you may have lost money in your superannuation, but your net worth is not your true worth. You are your greatest asset. Not a property or a stock.
Too many people are handing over responsibility of their own personnel economy to somebody else. You must take responsibility for your investment business and becoming financially fluent. Educate yourself; learn the rules of money for the new financial era and develop a supportive network of peers and mentors.
Find out who has already achieved what you want to achieve and then get the knowledge that you need to take advantage of the tremendous opportunities that surround us.
 
4. Take action.
In the past those who have prospered during difficult times have had specific knowledge about how to take advantage of the economic conditions and then they took effective action.
The same will happen again this time round. Currently the majority of Australians are sitting it out, saying things like “I don’t need to take action now – I’m scared.” At the same time a small group of people are taking action. That’s why the rich and financially fluent are getting richer. Nobody has ever gotten rich by doing nothing.
Currently some property investors are becoming wealthier than ever because they own the right type of assets and are taking advantage of some of the best deals available in their lifetimes. Others are just sitting it out hoping that it’s going to work out.
Which side are you on?
It’s time to increase your financial literacy by immersing yourself in the tools and knowledge to help you move forward. It’s time to take responsibility and regain control.
Let’s face it: unless you do it yourself, no rescue plan is being prepared for you. The government is not coming to bail you out, like some governments have done to their banks or certain large companies.
The more you focus on fear, the more afraid you become. The more you focus on obstacles the larger they get. And the more you focus on the doom and gloom headlines, the less time energy and faith you will have to focus on building your own wealth and prosperity.
So join me and many other successful property investors and become someone who sees opportunities where others see problems. Become someone who seeks growth when others expect collapse. And become someone who sees success when others see failure. I’m not going to participate in the downturn!
Michael Yardney is the director of <a 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 href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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Four keys to succeeding in any economy

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This may seem obvious, but I have to start with it: in order to create long-term wealth from property it is important to know the type of property that will to be in continuous strong demand in the future.
While many investors think about what will be popular with tenants or the rent they are going to achieve, that’s not what I look for in an investment.
To me a good investment property is one that will always be in strong demand by owner-occupiers. After all, home buyers purchase about 70% of all the properties on the market, and they’re the one who push up property values.
On the other hand, the type of property that is more influenced by investor demand or by tenants tends to be more illiquid and volatile in price.
Don’t believe me? Try selling a property in an inner-city high-rise block, a mining town or student accommodation today and see if you find any buyers.
On the other hand, well-located properties that are popular with owner-occupiers are always in strong demand. This means valuers are happy to put their stamp of approval on them and banks are prepared to lend against them.
This means understanding the needs of our changing markets will be fundamental to success when it comes to securing properties that will attract above-average capital growth in the years ahead. One of the keys to this is to study demographics – that is, the number and composition of our population and how we choose to live in our society.
Interestingly, Australian demographics are undergoing some radical changes at present.
With housing affordability becoming an increasing issue for many first-home buyers and our lifestyle becoming a lot more hectic, we are seeing an increase in the popularity of medium-density apartment living among the younger generations of Australians.
Rather than live in a house with a front and back yard, they’re keen to live close to where they work and play, and they’re happy to swap the back yard for a balcony. Clearly this is very different from the way their parents chose to live.
The fact is, the property investor of the future will be catering for a whole new breed of tenant and buyer.
Think about it…
Gen Y is on the move, as many from this 15-to-24 age group start to think about leaving the family home and starting their own lives independent of mum and dad. In 2010, about 150,000 new households were created in Australia, and approximately 65,000 of these comprised Gen Y singles, groups and couples.
Interestingly, the majority of this younger demographic will be destined to live as tenants for quite some time, stuck on the rental roundabout due to ever-increasing house prices and the cost of living, interest rate uncertainty and of course, annually rising rents. In fact, many won’t buy their first property until they’re in their 30s.
As a result many choose to live in shared accommodation and multi-income households in order to reside in the locations they favour, but could never be able to afford as a home buyer. These include inner-ring suburbs close to our major CBDs, where employment opportunities and a fast-paced lifestyle with plenty of recreation and entertainment facilities are the primary attractions.
With the number of Gen Ys looking for accommodation continuing to rise, rental demand for near-city and inner-suburban apartments will grow significantly in the coming years.
And our old friend the supply and demand equation will ensure that rents for these types of properties keeps rising, as will their values due to scarcity and higher rental yields.
This means that today medium-density properties – apartments and townhouses – make great investments and in general appreciate in value equally, if not more than houses in our capital cities.
Of course this is in part due to affordability, as apartments offer a much more affordable alternative housing option than houses. But it’s about much more than affordability.
Significant changes in our population profile and lifestyle priorities are creating a strong demand for apartment living. Today, our lifestyles are vastly different to those of our parents. We’re working longer, we’re increasingly time poor and we’re starting families much later in life. This means proximity to work, transport, entertainment, cafes, shops and beaches is becoming more important than owning a piece of land.
In Australia’s capital cities, apartments are continuing to improve in design and size and are generally closer to the CBD than affordable houses.
Of course there will always be a demand for houses with a front and back yard, particularly from families with more than one child, yet there is definitely a shift towards apartment living.
And it should be fairly obvious that this trend will continue in the long term.
People are getting married later in life, and apartments suit their busy lifestyles; and when a baby comes along, they will often stay in their apartment or buy a bigger one in the same location.
And don’t forget as baby boomers move into retirement they will also significantly increase the demand for townhouse and apartment living. Low-maintenance, secure “lock and leave” living is a priority for these buyers.
According to a report last year from <a href="https://www.rpdata.com)" title="RP Data" target="_blank">RP Data</a>, capital city units and apartments only accounted for 25% of all home sales 15 years ago. Today though, medium- and high-density accommodation makes up about 35% of all home sales.
Now that’s an interesting trend, isn’t it?
In our two most densely populated capital cities, RP Data found the proportion of unit sales is significantly larger. For the month of August 2010, Sydney and Melbourne unit sales were at 43% and 37% of all dwelling sales respectively.
So if you’re looking for a great investment property you should seriously consider a well-positioned, established apartment in smaller boutique block with value-add potential through renovations. I’d look for a property with a “twist” - something special or an element of scarcity.
Then hold it as a long-term investment and reap the rewards.
Michael Yardney is the director of <a 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 href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog. 
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The changing face of a good investment property

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In general property investors are all after the same thing. They buy property because they want to develop a degree of financial freedom. While some are looking to quit their jobs, others just want to have the choice of whether they work or not. Some are trying to save for their retirement while others want to leave something for their children.
Yet most property investors never achieve the financial independence they strive for, with close to 90% never owning more than one or two properties. On the other hand, a small group of investors manage to build substantial property portfolios.
Over the years I found that investors tend to fall into three main categories, which led me to investigate if one style of investing was more successful than others.
So let’s look at the 3 main types of property investor.
Firstly there is the passive investor, who tends to spend little time looking for a property. They are not interested in understanding all the ins and outs that go along with creating a property portfolio and are more likely to buy the first thing they come across, rather than conducting any due diligence or consulting others for advice.
The more active investor puts in some degree of work in order to find a good investment prospect. They gain a basic understanding of the principles involved in property, finance and taxation. They seek professional advice regarding structuring their portfolio and conduct some due diligence in the hope of increasing the likelihood of making a viable investment purchase.
Finally, there is the analytical investor, who tends to run around for months, sometimes even years, examining every nook and cranny of our property markets, endlessly comparing values and sales, reading reams of material regarding property do’s and don’ts and seeking advice from as many experts as possible before committing to anything. They like to conduct as much due diligence as possible and look for the ‘perfect' investment property.
If property investment is like many other things in life, the more effort and energy you sink into property investing, the greater your rewards are likely to be. In other words, the passive investor would enjoy smaller gains than the active investor, while the analytical investor would come out on top as they were willing to do the hard yards.
In reality this is only partially true!
Many passive investors purchase their investment properties the way they would buy their home – emotionally. They tend to buy their investments near where they live, or close to where they want to retire or holiday – all emotional reasons. Some live to regret their investment decisions and have difficulty holding on to their investments and end up selling their properties after only a year or two. Those who can hold on usually do well, but more of that later.
The more active investor puts in some degree of work in order to find a good investment prospect. They gain a basic understanding of the principles involved in property, finance and taxation. They also tend to seek professional advice with regard to the structuring of their portfolio and tend to conduct some due diligence in the hope that they can increase the likelihood of making a viable investment purchase.
What about the analytical investor? Let me share a story with you.
A while ago I bumped into Leonard, a successful IT engineer. When I first met him years earlier he said he was going to invest in property, so I asked him how his investments were going.
He explained that he was still researching the markets. Now Leonard is very intelligent but has a tendency to over-analyse things, hence he was still waiting for the perfect property, the perfect time and the perfect set of circumstances in which to buy.
What he doesn’t realise is that this will never happen.
If he had invested in a well-located property in his home town of Melbourne (or in almost any major city) three or four years earlier, when I first met him, despite that time frame including some of the worst years in property market in more than a decade, his property would have increased in value significantly.
While the value of many properties has gone by 20 or 30% in that time, Leonard had $500,000 sitting in the bank waiting for the ‘right opportunity’ to come along.
On the other hand, let’s look at Mark – a passive investor who was so naïve that he bought the first property that he could get their hands on 20 years ago for $50,000. At the time, everyone told him he was “crazy” – it was a bad time to buy; it was a foolish thing to do and he paid way too much.
Although he may not have done all of his homework, Mark bought in a popular inner suburb and the value of that property is now in the order of $500,000. And if he was half smart, Mark has borrowed against its increasing equity to allow him to buy more properties.
The lesson from all this is that it really doesn’t matter if you’re a passive, active or analytical investor, as long as you are taking action and are in the market.
Of course, you can’t just buy any property and hope it will increase in value – particularly in the current market. Educate yourself and make informed investment decisions, as long as you don’t get so absorbed in the process of learning that you forget to use that knowledge to buy something!
If you have been thinking about investing in property, maybe now is the right time to act. After all, we are in a buyer’s market – a time of great opportunity.
Buy a property that suits your current circumstances and investment strategy. If you are in it for long term, as you should be, doing something some might consider foolish right now could be much better than waiting to do something “smart” later.
Michael Yardney is the director of <a 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 href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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What type of property investor are you? 

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In the current buyer’s market we all want to buy our new home or property investment at the lowest possible price. On the other hand, the vendor wants the highest price they can get.
You know that the asking price quoted by the selling agent will usually be more than the owner is happy to accept for their home. It's just part of the real state negotiation game.
If you’ve been reading that there are more properties for sale than ever, that properties are on the market longer and that vendors are needing to discount their asking prices to get a sale, you’re probably wondering how much should you offer when negotiating for your next property?
If you ask the selling agent what price you should offer, you're asking the wrong person. Remember, the agent is paid by the seller to represent them and to get the best price possible. Despite this, I would still ask them what they would consider a fair offer, and then ask them to justify it with a list of comparable sales.
But unless you use a buyer's agent to help you negotiate, you are going to have to rely on your own research to work out what the property is worth – not just what the selling agent tells you.
By the time you end up at the negotiation table, you should have looked at many properties and have a pretty good idea of what similar homes in the area have sold for. Remember, it's the final sale price – not the asking price – that you need to focus on when you're doing your pre-negotiation homework.
In the current market most properties sell for less than their asking price. There is no standard discount, but as everyone knows there will be some 'argy-bargy' about the price as agents tend to list the property for sale at an asking price usually about 5-10% more than the vendor will accept to sell their home.
This means the asking price is just a starting point for the negotiations.
If you pay what the seller is asking, you could be wasting money. The trick is to know how much less the seller will accept. Sometimes it's only a few thousand dollars. In a buyer's market like we’re experiencing, many vendors are prepared to drop their asking price, especially if their property has been for sale for some time.
Before deciding what price to offer, here are five questions you should consider asking:
1. How did the vendor come to the asking price for their home? Was it from the agent's suggestion or because that's how much they need to buy their next dream home? Some sellers are unrealistic and unlikely to come down from their asking price if they have to get a certain amount for a particular reason. Others are still hoping to get the price their neighbour achieved last year.
2. Have there been any other offers made? This lets you know if you have any competition and how serious the vendor is about selling their home for a reasonable price.
3. How long has the home been on the market? If it's just been put up for sale, the seller may not be anxious to accept the first offer. If the home has been on the market for several months it's more likely the seller would be ready to accept your offer.
4. Why is the vendor selling? Are they going through a divorce? Do they have to move interstate urgently? Have they already bought another home that would put them under pressure to sell their current home? This will let you know how motivated the seller is.
5. Has the asking price been reduced during the time the property has been on the market? This will tell you whether the seller is really keen to offload their home and also let you know that you might have a motivated seller on your hands, and perhaps greater bargaining power.
Good luck with your negotiations!
Michael Yardney is the director of Metropole Property Investment Strategists <a href="https://www.metropole.com.au/">https://www.metropole.com.au/</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the Property Investment Update <a href="https://www.propertyupdate.com.au/">https://www.propertyupdate.com.au/</a> blog.
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Five questions to ask before making an offer on property

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I’ve heard it said that investing in property is simple, but it’s not easy.
Now this is not a play on words. Let’s face it: each year hundreds of thousands of Australians turn to property investment as a way of developing financial freedom, or getting more choices in their life or building a retirement nest egg. But very few achieve their goals.
Let’s look at the facts. About one in four property investors sell their property within the first year and almost half have sold within five years. Of those who remain in the game, less than 10% own more than two properties and less than one in 200 own six or more investment properties.
Putting it bluntly: most property investors fail to reach their objectives.
My concern is that in the current environment, this will only get worse.
The good news is that there is a way to make property investment work. I’ll explain how in a moment, but first let’s look at eight sure-fire ways to lose money in property.
Currently our property markets are a confusing place, yet property investors are being bombarded with messages of easy money which leads to a worrying trend where some investors are so keen to do something, or do anything, that they are heading for property investment disaster.
Even if they don’t have enough money, or haven’t developed the discipline to save, or they’ve already borrowed to their limit, some potential investors feel they’ve got to do something and in their bid to get into the property market, they are now speculating rather than investing.
I understand why they are keen to share in the profits others have achieved through property, but sometimes the right thing for an investor to do is nothing. I’ve made more money by the things I’ve said no to than the things I’ve said yes to. That’s because all my investments have been made as part of a planned strategy.
So here are eight ways to lose money in the current property markets.
1. Off-the-plan purchases
Sure, it sounds enticing: buy at today’s price then settle or on-sell at a profit in a few years’ time. Sound’s good, but does it work?
One of the big issues with buying off the plan is finance. Since loan approvals are only current for three months, obtaining a formal pre approval for an off the plan purchase is impossible. The problem is when the project is completed; some purchasers will be unable to obtain finance and have to sell. Others never planned to settle but intended to flip their property for a profit.
What this means is that when many projects are completed there will be a group of desperate vendors who lower their prices to sell at whatever the market offers.
And even if you are one of those who will be able to settle your purchase, the banks will only lend you against the prevailing market price of your property, which will be the lowest sale price achieved by one of the desperate vendors, rather than the price you paid.
Add to this the fact that banks often only lend on a 70% loan to value ratio in the postcodes where many of the big new developments are situated, and what looked like a good investment to start with starts to turn sour.
Of course there are a lot of other reasons I would avoid off-the-plan purchases, including the uncertainty about completion dates, the level of finishes and the market conditions when you eventually take possession. This means is you should buy your property at a significant discount to make up for these unknowns. But currently to get development finance, developers have to sell their products to you at a premium, not a discount.
And if that isn’t enough to turn you off buying off the plan, here’s one last point. Almost all off-the-plan developments are sold to investors. On the other hand, I like buying properties in buildings that have a good proportion of owner-occupiers in them. I just find owner-occupiers tend to look after the buildings better, and enhance their long-term capital growth.
2. House and land packages
I know some investors buy house and land packages because they’ve heard that land appreciates in value. But when you think about it, when buying this type of property usually the land accounts for less than half the purchase price, giving these properties a very low land to asset ratio.
While they may be great places to bring up a family, in general new or outer suburbs are not good places to invest. Residents in these areas tend to have less disposable income than people who live in more affluent suburbs which means that these areas suffer most in tough times or when interest rates rise.
Remember: 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 similar houses and more land 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.
3. Buy renovate and sell a property 
I’m all for adding value through renovations; but you can’t buy a property, do minimal work and then sell it at a profit, because stamp duty, buying and selling costs and tax eat away at your profits. On the other hand, buy, renovate and hold in the long term is a great investment strategy.
4. Positive cashflow properties 
If you’ve been following my blogs you will realise I believe the best way to financial independence through property is to accumulate assets. In Australia, properties with higher capital growth usually have lower rental returns. Sure, owning this type of property requires more discipline, but you can’t save your way to wealth with a few dollars a week positive cashflow.
5. Options
Another way to lose money is to follow some of the creative schemes currently being promoted by property spruikers. People with little or no money are being tempted by the prospect of bypassing the step of developing the discipline of saving. They are happy to hear the promoter’s suggestion that you can control millions of dollars worth of property using none of your own money when you buy using an option.
There’s nothing new about these schemes. And if history repeats itself the promoters of today will become very rich while their students will learn a very expensive lesson.
6. Rent guarantees
This is where the seller or the developer guarantees a certain rental for a period of time. This panders to inexperienced investors concerned about vacancies, but these guarantees come at a cost. Don’t be misled - they are factored into the purchase price and you’re paying the developer upfront for the rent he’s going to repay you over the next few years.
7. Regional properties 
I admit that some regional towns have exhibited better growth than some underperforming suburban areas; but on the whole capital city properties have outperformed other types of properties in the long term. Since two important drivers of capital growth include strong population growth and having a diverse strong local economy, I only invest in capital cities.
8. Investing in mining towns.
Yes I know we’re going through the mother of all resources booms and mining towns will grow in the future. But if history repeats itself, and it usually does, the property market in these towns will be driven by speculative investors. While there are likely to be some short-term booms, property prices in these towns tend to be very volatile. Don’t believe me? Try selling your property in one of these towns today and see if you find any buyers.
Well if these methods don’t work, what does?
There is one proven, time-tested method that has made average Australians very wealthy…
If you want to grow your own significant property portfolio, you need to own properties that provide wealth-producing rates of returns. This means buying a well located property below its intrinsic value, in an area that outperforms the average over the long term and one to which you can add value so you can create some capital growth. This could be through renovations, refurbishment or redevelopment. Then over time borrow against your property’s capital appreciation and grow your portfolio one property at a time.
That’s what the small group of investors who have achieved financial independence through property have always done.
Michael Yardney is a best selling author and one of Australia’s leading experts in the psychology of success and wealth creation through property. He is Australia's most published property author and has probably educated more successful property investors than anyone else in Australia. Go to <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #005c7a; padding: 0px; margin: 0px; border: initial none initial;" target="_blank" href="https://www.metropole.com.au/">www.metropole.com.au</a>
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Eight sure-fire ways to lose money in property

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
The Block was a hugely popular TV show last year. Three gruelling months of sleeplessness and renovations paid off for three of last year’s four couples, who, on the face of it, seemed to sell their apartments for a profit.
Not surprisingly, it encouraged a new generation of property investors to turn their hands to renovation.
But if you ran the renovations of The Block as a business and added stamp duty, buying and selling costs, interest for the holding period and payments for labour, there was no commercial profit in doing these renovations. 
And it could be the same again this year.
Watercress, the production company behind The Block, bought four unrenovated homes for $3.6 million in November last year after they passed in at auction for $2.85 million. Once you add stamp duty and acquisition costs, this would have brought the cost of each house to about $950,000 before the renovations began.
With properties at the top end of Melbourne’s property market struggling to achieve prices anything like last year, the result of this year’s show will be very interesting.
Now don’t get me wrong ­– I think renos are a great strategy in our current flat property markets. They increase the value of your property, make it more appealing to tenants, increase the rents and manufacture depreciation allowances.
But my strategy is to buy, renovate, refinance and hold for the long term. It’s just too hard to make money out of a “buy, renovate and sell” strategy.
So where do you start? And how do you ensure you don't end up over-capitalising, as many investors do?
Here are four rules to follow to make the most of a "renovate-for-profit" property investment:
1) Determine the "right" purchase price. Buying a renovator's delight at the right price is crucial in ensuring you are going to make some money when you finish your refurbishments. If you pay too much for your property at the outset, you will be chasing your tail trying to make the refurbishment profitable.
Start by determining what the end value of the property will be when you have completed all planned works. You can do this by researching the value of similarly renovated properties in your area.
Once you have the end value in mind, draw up an initial project budget to calculate your approximate renovation expenses. You should also consider getting a building and pest inspection on the property so you know exactly what you're getting yourself into, to help plan your budget accordingly.
Now, subtract all your costs from the end value, allow for a profit margin and this will give you a fair idea of how much you can afford to pay for your property in order to make your investment financially viable.
2) Be realistic with your budget The truth is, the job will usually cost more than you expect, and take longer than you planned. With today's shortage of good labour, it's hard to get tradespeople to quote on renovation jobs. We've all heard stories of how the budget blew out and the project took weeks longer than expected.
It's never as easy as they make it look on TV. And, funnily enough, the tradespeople never look as good as they do on the shows, either – I am yet to encounter a tradesperson wearing neatly pressed overalls!
3) Consider the type of tenant you wish to attract Think about the type of tenants you want to lease your property to and renovate with them in mind. Talk to your property manager to determine the predominant demographic seeking accommodation in the area, and plan your renovations accordingly.
4) Don't get personal! Another mistake I see investors make is that they become too personal about the renovation project they are undertaking. Remember, you won’t be living in the place, so putting your own personality into the property is not necessarily a good idea.
If you keep things simple and the decor neutral, to simply make the property liveable and functional, you can't go wrong.
Property renovating is not a licence to print money. It's hard work, if you intend to do it yourself, but it's a great way to manufacture capital growth.
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://www.propertyupdate.com.au/"> Property Investment Update  blog</a>.
 
 
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Four rules for maximising property renovation profits

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I hope you’re not thinking of investing in US real estate.
I know some Australians are considering it, having been encouraged by promoters offering properties at 70% off. After all, who could pass up a detached three-bedroom house for a 10th of the price that you would pay here in Australia?
There’s even a new listed US residential property fund, where 1,500 Australians have ‘invested’ funds from their self-managed superannuation.
I’ve heard it all before – there are places in the US where houses are virtually being given away, are cash flow-positive, loans are easy, rents are great and so on and so forth.
The reality is there are no free lunches. I learned a long time ago that not all that glistens is gold, and while investing abroad has always had its risks, in my opinion buying cheap and nasty properties in the US at present is a sure-fire way to lose money.
The reason some promoters are offering Australians these properties is because they can’t sell them locally. In many areas of the US there is a significant imbalance in the supply and demand equation – generally speaking, demand is almost non-existent and there is an oversupply of housing.
That’s right – there are some places in America where you can’t give a home away at any price! Doesn’t that make you suspicious? Something just doesn't seem right, does it?
So let’s look a few reasons not to invest in the US:
1.  An unhealthy economy Let’s not beat around the bush, the US economy is poor. Well, it’s worse than that, it’s in real trouble. I’d listen carefully to a recent warning made by Rupert Murdoch, one of the smartest business people around, when he cautioned that the US economy will be at a standstill for almost a decade. Currently the US government debt levels are at a staggering 80% of GDP. In contrast, in Australia this figure is 6%. 2.   Massive Unemployment With an official unemployment level of 10%, but a more realistic figure close to 20%, and you’ll find unemployment is even higher in the back waters where you can buy these cheap properties.  Sure unemployment means more tenants than home buyers – but how are they going to pay your rent?
3.  Huge Oversupply There are current millions of properties sitting vacant in certain parts of the US, and up to 20% of current home owners have negative equity in their homes – this means their debt is more than their homes are worth.
4. More foreclosures forecast I’ve read that a further 4 to 5 million US properties could go into foreclosure (get taken over by the mortgagee) in the next few years. Economist Robert Shiller, co-founder of the Standard &amp; Poor’s/Case-Shiller home price index, <a href="https://www.loansafe.org/housing-analyst-fears-25-slide-in-prices">recently suggested</a> that prices may drop as much as 25%, after inflation, over the next five years.
Then there are the currency risks, tax issues and property management issues. Do you realise that in many areas of the US the property manager goes around collecting the rent personally and rents are paid in cash?
Over the years I’ve spoken with many people who have invested (well, I’d call it speculated) in the US, and I haven’t met one Australian property investor who has made money out of it in the long term. The only people I’ve seen profiting from the US property market are the spruikers who promote these schemes.
Sure a $40,000 property sounds cheap, but what many Australian’s don’t realise is that in some cases the promoter has already added 50% to 100% to the purchase price. This means the promoter finds a property for $20,000 to $30,000 and sells it to an unsuspecting Australian (and particularly New Zealand) investor for $40,000.
Even though Australia has one of the most expensive property markets in the world at present, we have a booming economy plus a constant demand for properties from a growing population at a time when we have an undersupply of properties in some areas. This contrasting supply-and-demand ratio will underpinned our property markets.
There are some great investment opportunities in Australia at present – there is no need to look overseas.
Michael Yardney is the director of <a 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 href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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If it sounds too good to be true, it probably is

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We all know that property prices are driven by supply and demand. So on the face of it, reading that the amount of residential stock for sale has increased by 29.7% in the year to May does not sound good – does it?
Even worse, according to new figures released by<a href="https://www.sqmresearch.com.au" title="SQM Research" target="_blank"> SQM Research</a>, the amount of property for sale grew by c<a href="https://www.propertyobserver.com.au/residential/darwin-stock-levels-rise-evidence-of-dicey-market/2011061650506" title="Stock levels down" target="_blank">lose to 60% in Darwin and by almost 50% in Melbourne over the last year</a>.
SQM chief Louis Christopher says the result should be expected, given winter has started and although the amount of stock on the market is now staring to fall, it’s too early to see is this is the beginning of a turnaround.
"We've always said the decline on house prices will be mid to high single digits, and we still hold to that because there is still weakness in demand side, but what this means is that if listings do peak, we will unlikely see falls in the capital cities in the double digits" Christopher says.
How bad is the problem?
The amount of properties now available for purchase is up by a massive 29.7% when compared to the same time last year.
In Melbourne stock levels of houses for sale have increased by a 49.6% when compared to last year, while in Darwin stock has increased by 59.3%.
Canberra stock for sale has risen by 44.6%, Adelaide by 42.4%, Perth by 37.1%, Brisbane by 30.4% and Sydney by 25.5%. Hobart stock has risen by 35.7% across the year.
The question we need to ask ourselves is: does this hangover of unsold properties mean our markets are going to crash?
According to Christopher and other commentators too many properties for sale at a time when many buyers are exhibiting caution will cause property prices to drop prices by as much as 10% in some areas this year.
But let’s clarify things. There is not one property market in Australia. Our markets are behaving differently in different geographic locations and at different price points.
If you look at the Gold Coast, much of the stock for sale is developer stock that is sitting vacant or “discretionary properties” – holiday homes that are now up for sale. Some of these vendors have to sell and are prepared to sell at almost any price. And there are too many top-end luxury properties on the markets in our capital cities for the small number of buyers looking in this prestige segment.
On the other hand many of the mainstream properties for sale in streets of our capital cities are from vendors who would like to cash in on the high prices their neighbours achieved last year. The problem is they are unlikely to attain these types of prices this year, but most vendors are not in a hurry to sell.
Think about it. There is very little distressed stock on the market and few desperate sellers who need to sell at any price. But what is attracting media attention lately is the difference between the asking price (the inflated figure a vendor hopes to get for his property) and what the market is prepared to pay. And clearly this gap has widened compared with a year or two ago, when there were more buyers than sellers.
That’s what happens in a buyer’s market and it means that house prices will meander down slightly in some suburbs and hold steady in others – but there is no property crash ahead.
Michael Yardney is the director of <a target="_blank" title="Metropole Property Investment Strategists" 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" title="Property Update" href="https://www.propertyupdate.com.au">Property Investment Update</a> blog.
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Soaring stock levels do not mean prices will crash

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

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[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

<a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.

Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.

A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" />

"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.

"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."

The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" />

Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.

The architects say landscape is intended to be integral to the building rather than an applied element.

"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."

"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."

Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.

HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.

HG Developments doubles down in Newstead with second Maud Street apartment development

Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.

"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.

"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.

"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

Michael Yardney

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