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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

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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

Michael Yardney

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