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If you’ve been reading my property investment blogs, you’ll know that I feel confident in the long-term prospects of our property markets, which will be underpinned by the dual prongs of a growing population (which will require housing) and the fact that we are a wealthy nation (we can afford to pay for housing).
I know some commentators are concerned that our economy will slump as the resources boom slows down and some doomsayers are gloating that the property market has fallen for two consecutive months.
But I see it differently.
We are entering a new economic stage; a period of continued prosperity, albeit at a slower pace. This stage will be underpinned by a generally buoyant economy.
It’s much more than just resources
Sure, the construction phase of the resources boom is coming to an end and other sectors of the economy will have to step up.
And yes, our economic growth will slow down a little over the next few years, which will keep interest rates and inflation low.
But it’s not all doom and gloom.
Government analysis last year suggested that over the next five years we’ll need an extra 800,000 workers to ensure our continued economic growth as a surge in service industries eclipses the resources boom.
This means there is a looming structural shift in the jobs market as demand grows for professional skills, offsetting the expected loss in the manufacturing sector.
A regional shift is forecast as Queensland outstrips other parts of the country in job creation, adding 220,000 positions compared with about 190,000 in NSW, 180,000 in Victoria, 150,000 in Western Australia and 50,000 in South Australia.
Countering assumptions about our economy slumping as the resources boom slows down, the findings of the report show the service industries will need more workers than any other part of the economy.
While mine companies will need about 100,000 new workers over the next five years, healthcare and social assistance employers will need 240,000 staff and professional services companies will require 110,000.
Education, tourism, retail and financial services will also create new jobs as the manufacturing sector shrinks.
The forecasts come with danger signs, as 19 of the 20 strongest job categories require qualifications higher than secondary school.
"The structural change in the Australian labour market and the significant shift towards higher skills occupations will limit the opportunities available to job-seekers without appropriate levels of qualification, work experience and employability skills," the analysis says.
 
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What about our ageing population?
At the same time that we need more workers, our population is ageing, and in many ways this could provide a greater challenge for us than population growth.  
Demographer Harry Dent caused a stir when he suggested that our ageing population and its lack of spending is going to cause the next depression. The fallout of a baby boom gone wrong has been witnessed in Japan, where the number of retirees escalated beyond the number of working age citizens and had a notable impact on their local economy.  
Dent suggested that Australia is facing its own demographic tsunami as more of our Baby Boomers hit retirement age.  
Again, I see it differently: we are going to have to populate or perish.  
Look at the facts. Today, 43% of our workforce is made up of Baby Boomers (people born between 1945 and 1964).  
The Baby Boomer crisis 
Think about it. Australia is on the crest of a demographic tsunami as Australia’s 5.3 million Boomers are going to reach retirement age over the next 15 years.
The country's money box faces a double whammy as these Baby Boomers leave the workforce and stop paying tax, yet at the same time many will go on the pension and use our public health care system.
The problem is that most Baby Boomers don’t have enough savings or superannuation to see them through retirement.  This means many will have to keep working longer than they had anticipated but eventually, when they do retire, they will place a massive burden on our financial system.
The government will have to find money for their pensions and health costs while at the same time making up for their lost taxation revenue by either:
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<li>
Increasing taxes on those in the workforce, which would be political suicide, or;
</li>
<li>
Increasing the size of the tax-paying workforce by importing younger workers. These young skilled adults that will migrate to Australia to fill our increasingly wide gap in skilled labour will be gainfully employed and, given their skills, will earn high incomes and pay their share of tax.
</li>
</ul>
Fact is Australia's population will keep getting bigger under every realistic scenario and no matter what politicians do, population growth is going to happen. This is a certainty.
What does this mean for Australia?
There is no doubt that our population growth will bring with it significant social, infrastructure and environmental impacts.
In Australia at present, 87% of us live in urban areas. There is an obvious emerging trend toward smaller dwellings and inner-city lifestyles, which means more of us are going to be concentrated around our major capital cities.
With more and more of us wanting to live in the same four big capital cities, and in fact in the same suburbs of those capital cities, our old friend the supply and demand ratio will keep pushing up the value of well located inner suburban properties.
Sure, these properties will be unaffordable for some of us who’ll remain tenants. But others will be able to afford these higher priced properties, as I don’t think that anyone would argue that as a nation Australia will become wealthier over the next few decades.
The good news is that by many accounts Australians are already the wealthiest nation in the world and if we play our cards right, this is likely to continue as Australia is well positioned to benefit from the growth of Asia, which represents 50% of the world’s population.
Yes, our economy is slowing down, and of course there will be speed bumps along the way, but our economy is still the envy of most developed nations.
It’s most likely we’ll have a change of government later this year but the new government will inherit a particularly good set of economic fundamentals. This means Joe Hockey will likely be able to deliver much the same in his first term in government.
If he can keep GDP growth near 3%, underlying inflation around 2.25% and the unemployment rate around 5.5% then we’re likely to remain in a low interest rate environment.
The bottom line is that our economy is going to soldier on, as are our property markets. I can’t see a bust ahead for either!
Michael Yardney is a director of <a rel="nofollow" href="https://www.metropole.com.au/">Metropole Property Strategists</a>, who create wealth for their clients through independent, unbiased property advice and advocacy. Subscribe to his <a rel="nofollow" href="https://propertyupdate.com.au/category/property-investment/">Property Update</a> blog.
 
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Despite gloom our economy and property markets will soldier on: Michael Yardney

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When economic news from around the world gets all gloomy, one sector that always seems to get hit is Australia’s tourism industry.
But there are some travel changes in the wind that could be good for some property markets. And they are probably not the specific real estate markets you are thinking of.
What’s gone on over the last few years?  
The fact is since the GFC we have turned from a nation of spenders into a generation of savers.  
Today, Australians tend to be cautious with their disposable income, wondering whether the annual family holiday is such a good idea or whether it’s better to save those extra few pennies.  
Add to this the fact that the strong Aussie dollar has until recently bought us far more bang for bucks overseas, and those of us who had a desire to travel suddenly got itchy feet for the likes of Asia, the US and Europe.  
This meant that locals in our holiday towns have been doing it tough as they face rising unemployment due to a slowdown in the tourism sector.  
And many residents in our holiday locations have been struggling to cope with their mortgage commitment, with these areas recently recording some of the highest rates of repayment delinquencies in the country.  
But now things are changing…  
You’d have to be living under a rock not to have heard that over the last month the Australian dollar has plummeted from its previous highs, now making overseas holiday more expensive for locals and holidays in Australia more economical for foreigners.  
That’s the first bit of good news for our tourism industry, but there’s more.  
We could become the new playground for Asia  
The rapid urbanisation of China and India, two of the world's most populous countries, has created a new population of potential tourists at our doorstep.  
The rapidly expanding numbers of cashed-up Asians are choosing to spend their downtime (and disposable income) right here as China and India’s burgeoning middle class start to embrace holidays Down Under.  
Interestingly, almost as fast as we ship coal and iron ore to China’s steel mills, the number of inbound visitors to our shores from China is soaring.  
A surge in tourism  
In the past decade, the number of Chinese tourists visiting Australia has escalated by 13.4% annually, overtaking Japan and Britain.  
In fact, China is our biggest source of local tourism revenue, with Chinese holidaymakers spending more per person on average than Kiwis or Brits.  
In contrast, the number of inbound tourists from the financially flailing Britain has grown by a dismal 0.2% per annum, while the number of tourists from Japan and the United States has shrunk.  
With many analysts predicting a rapid expansion in China’s middle class, we will no doubt see this trend continue. In fact, some suggest that Chinese visitors will account for a third of the tourism export industry’s growth between now and 2020.  
Where do they want to spend their money?  
The big question then for Australia’s tourism operators is where and how do these new Asian jetsetters want to spend their time and money?  
In the 1980s, the priority was sun, sand and surf as Japanese holidaymakers flocked to the Gold Coast and far north Queensland.  
But the Chinese have different priorities, with a greater emphasis on the attractions offered by urban centres such as Melbourne, Sydney and Brisbane.  
While the traditional holiday hotspots in regional Australian towns struggle, capital city operators are adapting and, in turn, profiting.  
This is because the average Chinese tourist spends more than two-thirds of their entire trip in the nation's three biggest cities, but relatively little time in tropical Queensland.  
So what does this mean for property?  
Well, like anything, where there is economic viability and demand fed by a number of industries (as there is in our capital cities), there is prosperity to be had.  
Regional areas that rely heavily on tourism to sustain their local economies are unlikely to benefit strongly from overseas travellers. However, local tourism should eventually pick up as our cheaper Aussie dollar makes overseas holidays more expensive for locals.  
In the meantime, the economies of our three big capital cities are being strengthened by this new wave of tourism and this can only be good for their property markets.
Michael Yardney is a director of <a href="https://www.metropole.com.au/" rel="nofollow">Metropole Property Strategists</a>, who create wealth for their clients through independent, unbiased property advice and advocacy. Subscribe to his <a href="https://propertyupdate.com.au/category/property-investment/" rel="nofollow">Property Update</a> blog.
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New wave of tourism is good news for Australian property markets: Michael Yardney

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Australians seem to have lost their mojo! For much of the last few years we were an unhappy lot, then just when confidence seemed to be returning earlier this year, it took a slump again.
So what does it take to make us happy?
Obviously, it's more than money because we're already the world's richest people.
Now, before you shoot me down, let me explain that I certainly realise that to be truly wealthy you need more than just money. Of course I realise that money is important in those aspects of your life where it is important (like paying the bills and the school fees) and money is not important in those areas of our lives where it is not important.
But many of us are still worrying about getting more money so we don't have to worry about money anymore.
Back to the point I was starting to make – we're already wealthy
Yes, we're already wealthy. This was confirmed in the <a href="/news">Credit Suisse 2012 Global Wealth Report</a>, which showed that Australians are now comfortably the richest population in the world with a median wealth per adult of $US194,000.
This is more than double that of second-placed Switzerland with $US87,000.
Interestingly, the report states that Australians comprised some 1,571,000 people in the top 1% of the planet’s wealthiest people.
By the way, in order to be in the world’s top 1% you need a net wealth of $US710,000 and if you have net assets of over $US71,000 you are in the richest 10% of global wealth holders.
<img src="/images/stories/2013/05/yardneymay30one.jpg" width="470" height="285" alt="yardneymay30one">
Source: <a href="/news">credit-suisse.com</a>
The fact that the proportion of Australians with wealth above $US100,000 is the highest of any country, and eight times the world average, is mainly thanks to Australia being sparsely populated, our high levels of natural resources and our high real estate prices.
How many millionaires?
America still has the largest number of millionaires – more than 11million – three times higher than its nearest rival Japan and Australia boasts more than 905,000 millionaires.
Better yet, the report forecasts that the number of millionaires in Australia will jump to 1.6 million over the next five years. That’s a staggering 82% increase!
<img src="/images/stories/2013/05/yardneymay30two.jpg" width="368" height="215" alt="yardneymay30two">
Source: <a href="/news">credit-suisse.com</a>
What's ahead?
The report suggests that total world household wealth is expected to increase by almost 50% in the next five years, with the United States retaining the top spot with wealth of US$89 trillion.
China is expected to add US$18 trillion to global wealth and overtake Japan as the second-wealthiest country in the world.
This bodes well for Australia – we just happen to be in the right spot at the right time.
As China transforms from an industrial economy into a consumer-driven society, this will offer abundant opportunities for Australia.
Not only will China and other developing Asian countries require our resources, but we can supply them with health services, education, food and technology. If we play our cards right, we can be the tourism playground for a new generation of middle-class Chinese, just like we were for the Japanese in the 1980s.
Yes, there’s some good reasons for our mojo to return!
Michael Yardney is a director of <a rel="nofollow" href="https://www.metropole.com.au/" target="_blank">Metropole Property Strategists</a> who create wealth for their clients through independent, unbiased property advice and advocacy. Subscribe to his <a rel="nofollow" href="https://propertyupdate.com.au/category/property-investment/" target="_blank">Property Update</a> blog.
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Australia is at the top of the wealth pyramid and our future is bright: Michael Yardney

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Savvy property investors know how to negotiate a better deal for themselves by applying pressure to three critical negotiating points.  
These pressure points are at work in every negotiation; either you are applying pressure to the other party or they are using them on you. So let’s take a look at them.  
1. Options  
When you’re buying a property it is important to convince the seller that you have more options than they do, because power in negotiation goes to the person with the most options.  
Look at it this way: if a seller has two buyers lined up waiting to offer him $500,000 for his property, then he has options. You probably have little chance of getting him to accept your offer of $480,000.  
However, it’s important to realise that in negotiations you often deal with perception rather than reality.  
Agents will often tell you they have other buyers interested or better offers than yours, but they are simply applying this same pressure tactic on you.  
To gain power in negotiations you must convince the vendor through his agent that you have more options than they do. Currently, this isn’t too difficult because in most markets there’s an abundance of properties for sale.  
Let the agent know that there are also other properties you are interested in. You could say something like: “We like this property but there are two others we have in mind in a better location and at a lower price”.  
Remember: the person with the most options has the upper hand in the negotiation.  
2. Time
 
If a vendor is highly motivated and under time pressure you could find yourself a terrific buy.  
While it may be hard to work out what type of pressure the vendor is under, the selling agent will sometimes tell you that they have already purchased another property and must settle at a particular time.  
Other time-motivated sellers include people going through a divorce or moving interstate.  
To help find out how motivated the vendor is you could ask the selling agent: why is the vendor selling? Where are they moving to? Would they consider a lower offer for a quick settlement?  
Other sensible questions to ask are:
• How long has the property been on sale?
• Have they received any offers on the property?
• How did the vendor come to his selling price?  
I like to use time pressure when making a written offer to purchase. I’ve found it helps if I put a deadline on my offer such as “this offer expires at 6.00 pm on Thursday 23rd May.”  
I always give an explanation to the agent such as: “Well…I’m considering purchasing a particular property that’s going to auction this weekend and if the vendor doesn’t accept my offer by Thursday I’m keen to purchase the other property and can’t have this current offer remaining open when I go to the auction .”  
3. Knowledge
 
In negotiations, the side with the most knowledge will do better.  
If you’ve done the proper research you should know more about the property market in which you are buying than the seller.  
However, apart from researching the local property market, it’s also good to find out what you can about the vendor. The problem is that most of what you know comes from the agent.  
But the reason you should find out as much as you can about the seller and their property is that it will give you a better insight into the real motivation for selling. This could lead to a creative win-win solution that will let you buy the property at below market price.  
In summary:
Remember these three critical negotiating pressure points when negotiating your next property purchase. Make sure you take advantage of them and that the selling agent doesn’t apply them to you.    
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, who create wealth for their clients through independent, unbiased property advice and advocacy. Subscribe to his <a href="https://propertyupdate.com.au/category/property-investment/">Property Update</a> blog.
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Three pressure points that can swing property purchase negotiations in your favour: Michael Yardney

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You often hear that location is paramount when choosing a great investment property. But what makes a good location?  
While a lot of factors come into play, easy access to facilities must be near the top of the list.  
Walking distance to transport, shops and the café lifestyle is one the strongest trends attracting buyers and tenants. This is particularly so among the growing demographic living in apartments in our inner suburbs.  
Australian cities have been ranked by WalkScore
Well, now you can find out how ‘walkable’ your suburb is.  
Walkscore.com measures the number of typical consumer destinations within walking distance of a dwelling. It issues scores ranging from 0 (car dependant) to 100 (most walkable) and has recently ranked more than 100 Australian cities and 3,000 suburbs.
With a ‘walk score’ of 63, Sydney comes out on top in the ranking of <a href="https://www.walkscore.com/rankings/australia" target="_blank">The Most Walkable Australian Cities and Suburbs</a>.  
While a number of real estate websites have incorporated WalkScore and more are likely to follow, the ‘walkability’ index has a number of shortcomings.  
Consider the low-scoring regional dweller who enjoys walking their dog on a rural path. Not to mention that what one person considers a ‘walkable’ trip may seem an epic hike to another.  
Walk Score’s ranking of the top 10 largest Australian cities:  
Here is how our cities ranked:
1. Sydney (Walk Score: 63)
2. Melbourne (Walk Score: 57)
3. Adelaide (Walk Score: 54)
4. Brisbane (Walk Score: 51)
5. Perth (Walk Score: 50)
6. Newcastle (Walk Score: 49)
7. Wollongong (Walk Score: 48)
8. Gold Coast (Walk Score: 48)
9. Central Coast (Walk Score: 41)
10. Canberra (Walk Score: 40)  
While this is interesting, what is more important is that in every city some suburbs are more ‘walkable’ than others.  
You can check out the complete list of ranked cities and suburb <a href="https://www.walkscore.com/rankings/australia" target="_blank">here</a>.
Walk scores are turning up in a number of property portals and agent websites and you can expect to see more in the future.  
What does all this mean?
Over the past decade, <a href="https://www.smh.com.au/nsw/walkability-can-step-up-house-prices-20120330-1w3he" target="_blank">home values in Sydney’s ‘walkable’ neighbourhoods</a> have outperformed the rest of the city and can attract a 20% premium.  
It was much the same overseas where studies indicate that properties with above-average levels of ‘walkability’ command a premium over homes with average levels of ‘walkability’.  
It gets even better…  
‘Walkable’ neighbourhoods offer a number of health and economic benefits. For example, a 10-year long study of Australians by the <a href="https://www.sciencedaily.com/releases/2013/03/130307124427.htm" target="_blank">University of Melbourne</a> found that ‘walkable’ neighbourhoods with proximity to shops, parks and public transit improve people’s health and wellbeing.  
As our population grows and our cities become denser, I see the importance of easy access to amenities and ‘walkability’ becoming more important.  
With more of us trading backyards for balconies and living in apartments, we’re spending more time in cafés and restaurants rather than entertaining at home.
Add to this the fact that 22% of our population are living alone, then the opportunity to stroll up the road to visit their favourite café for a coffee or a meal is particularly important to them.
So when you’re looking at buying your next home or investment property consider its proximity to amenities. As our lives become more hectic and our cities become more congested, many of us will be prepared to pay a premium to be close to - but not right next to - transport, shops and amenities.
Michael Yardney is a director of <a href="https://www.metropole.com.au/" rel="nofollow" target="_blank">Metropole Property Strategists</a> who create wealth for their clients through independent, unbiased property advice and advocacy. Subscribe to his <a href="https://propertyupdate.com.au/category/property-investment/" rel="nofollow" target="_blank">Property Update</a> blog.
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'Walkability' will become more important as cities become denser: Michael Yardney

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I recently read an article suggesting that financial planners often recommend that, based on current average annual returns, a couple would need close to $1 million in superannuation when they retire to live modestly.
In my opinion that would only give them a very modest lifestyle since they would, in general, live off the $40,000 or so interest they receive on this, or on dividends from the shares in the super fund.
Apparently, a single person would need about $800,000, once again to live modestly.
By the way; I think you will need much, much more than this to fund a comfortable retirement.
Either way, this means millions of Australians will struggle in retirement because only 10% of Australians have more than $100,000 in their super accounts. 
A report from last year by the Association of Superannuation Funds of Australia says:
“On the basis of the current average superannuation balance and average income of those aged 35 to 44 and the assumption of only compulsory superannuation contributions being made, the average retirement superannuation payout at age 60 for a male currently aged 35 to 44 would be $183,000, while for a female it would only be $93,000.”
That’s scary stuff…  
Most Gen X-ers will fall far short of being able to retire on their superannuation.  
Little wonder that more and more Australians are looking at taking control of their financial future and setting up self-managed super funds (SMSF).  
With 5.3 million Baby Boomers transitioning into retirement over the next 15 years or so, I see properties bought in a SMSF as a major driver of property values over the next decade.
How much super is enough? 
So, the big question is how much money do you really need for your retirement?
Well, lifestyle is a very personal thing – luxury living for one person is a modest existence for someone else.
While you’re in your working years, choosing a lifestyle is simple – most of us live the life we can afford. If we want a fancier lifestyle, we need to earn more, win the lottery, marry someone rich or inherit money from a rich relative.
However, if you want a comfortable life in retirement, then you better start working on your financial independence now. Super alone is unlikely to get you there, but growing a substantial property portfolio just may.
The 4-step formula to financial independence
Here are four timeless rules for achieving financial freedom. Please don’t dismiss them because they sound so simple:
1. Spend less than you earn
This maxim may seem obvious, but many people have difficulty following it. If you're spending more than you earn, you will never become financially independent. You will be paying money to others for the rest of your life. The earlier you start living by this rule, the better. It is never too late to start.
2. Invest the difference wisely 
It may surprise you, but the average Australian earning between $50,000 and $60,000 a year for 40 years will earn somewhere between $2-3 million during their working life. Yet most of them will retire poor. Clearly, the level of your income has no bearing on the level of wealth you achieve; what is critical is the amount you save and invest wisely.
3. Reinvest your investment income so you get compounding growth
As you are beginning to understand, you will never become financially independent on your earnings alone. You need to keep reinvesting. In fact, by the time you become financially free almost all your assets will have come from compounding capital growth, not from your income, your savings or your rent.
4. Keep doing steps 1 and 2 until your asset base reaches a critical mass so that you have the cash machine that gives you the income you desire.
If you’ve been following my blogs you’d know I advocate growing a multi-million dollar property portfolio as your cash machine. In fact, I’ve written a best selling book on that topic, <a href="https://www.thebookonpropertyinvestment.com/">How to Grow a Multi-million Dollar Property Portfolio</a>. This book is about helping you build your own cash machine.
So how many properties do you need to retire? 
Do you know? Well, it’s a trick question.
It’s not really how many properties you own that’s important. I’d rather own one Westfield shopping centre than 35 small regional properties.
In other words, what’s really important is the size of the asset base you build – the size of your cash machine. And this probably needs to be a lot bigger than you think.
Over the last few years, more and more property investors are considering setting up a self-managed superannuation fund (SMSF) as a vehicle to buy their properties and increase their asset base.
So what are the main advantages and disadvantages of taking this tack when it comes to building your own retirement nest egg?
The good
&gt; Control – You have control over your SMSF rather than entrusting your future financial wellbeing to a complete stranger, who will take your hard-earned cash and invest it in shares and managed funds that may or may not perform.  
&gt; Leverage – You can make the money in your SMSF work harder by using it as a deposit and borrowing to buy investment properties that grow in value.  
&gt;Tax savings – In the past, those who bought a property in their fund until they retired were exempt from paying either capital gains tax if you sell the investment, or income tax on any rental income should you decide to hang onto it. Before they retired, any capital gains or rental income generated by your SMSF was taxed at a rate of 15% and 10% Capital Gains Tax was applicable if they sold the property after holding on to it for over a year.
Recent changes to the tax law means that in the future these concessional tax rates will change, but owning property in super may still be tax effective for you.  
&gt;You will have a diversified super portfolio that is not reliant on just one investment vehicle, meaning you will have better financial security for the future.  
The bad
&gt;The cost! This usually involves thousands of dollars in establishment costs and sometimes there will be higher fees involved in borrowing to buy property through your SMSF.  
&gt;The confusion – There’s no denying that managing your own super fund can be a minefield of complicated rules and regulations. Get something wrong and you could end up paying hefty penalties. Of course, you can pay a professional to manage it on your behalf and this is something I would strongly advise anyone with a SMSF to do – whether they’re buying real estate or not!  
&gt;You have to have the cash to do it. This is not a strategy for someone with a small amount of cash in his or her super fund. Basically, unless you have over $150,000 of available funds in your SMSF and are still contributing to your SMSF, the banks may not be willing to lend money for you to buy property in your SMSF.
If you’re at all concerned about financial independence in retirement, put some plans in place, review your finances, do something now and don’t leave it until it’s too late.
Be careful  
Of course, before you go down the route of setting up your own SMSF, it is critical to seek independent advice from a properly qualified financial planner to ensure that it is appropriate for your circumstances, and that you set up things correctly and don’t fall foul of the tax man.  
Michael Yardney is a director of <a target="_blank" href="https://www.metropole.com.au/">Metropole Property Strategists</a> who create wealth for their clients through independent, unbiased property advice and advocacy. Subscribe to his <a target="_blank" href="https://propertyupdate.com.au/category/property-investment/">Property Update</a> blog.
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Weighing the pros and cons of SMSFs as you plan for retirement: Michael Yardney

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Recently one of my sons who has taken a keen interest in property investment asked: “Dad, what’s the worst advice you’ve ever been given on real estate investing and what’s the best advice you could give me?”  
The worst advice:
I explained that the worst real estate investment advice I was given was that property investment is easy.  
This was clearly wrong because most property investors fail!  
Look at the facts: 50% of those who get into property investment sell up in the first five years and of those who keep their properties, the vast majority never ends up owning more than one or two properties. This means they don’t ever achieve the financial independence they desired.  
However, over the years I have found that property investment is simple, but not easy.  And that’s not a play on words.  
It’s simple if you follow a proven formula but it’s really hard to become wealthy in property if you do what everyone else is doing. While many investors chase cashflow or the next hot spot, I’ve found successful investors build their asset base.  
Over the years I have developed a four-stranded strategic approach to property investment that ensures the properties I buy will outperform the market averages.
<ol start="1">
<li>
I buy a property below its intrinsic value.
</li>
<li>
In an area that has a long history of strong capital growth
</li>
<li>
I look for a property with a twist – something unique or special or different or scarce about it.
</li>
<li>
And a property where I can manufacture capital growth through refurbishment, renovations or redevelopment.
</li>
</ol>
This means I minimise my risks and maximise my upside as each strand represents a way of making money from property. Combining all four is a powerful way of putting the odds in my favour. If one strand lets me down, I have two or three others supporting my property’s performance.
The best advice I’ve been given:
When I first became involved in property investment I didn’t understand the cyclical nature of the property market – my only experience was a rising property market.  
An early mentor taught me to prepare for the lean times by having a cashflow reserve to see me through the down times of the property cycle or to handle unforeseen expenses.  
Rather than use my full borrowing capacity and buy the most expensive property I could afford, I learned the concept of setting aside a buffer.  
While I was initially concerned that I was not using my full borrowing capacity, having this safety net helped me get through the high interest rate period of the early 1990s, while many other investors had to sell up their properties.  
It’s a lesson I’ve never forgotten and has let me sleep peacefully at night through five property cycles.  
Another piece of good advice – treat your property investments like a business
Over the years I’ve seen a small group of property investors, those who treat their investments like a business, become very, very rich by growing a multi-million dollar investment property portfolio.  
They do this requires understanding of “the system”, getting the right type of finance, setting up the correct ownership and asset protection structures and knowing how to legally use the taxation system to your advantage.  
Let's face it: the majority of Australians will be always be employees but we all have the ability to become financially free by becoming property investors who treat their investments like a business. And you can set up your own property investment business while you are still an employee or self-employed.  
In fact, that’s what I did and what almost every wealthy property investor I know has done.  
They built their wealth by growing their real estate portfolio one property at a time. While this was going on they lived off the income they earned from their day job.  
They started off with one property, then leveraged off its capital growth to invest in another and another until one day they found themselves with a true property investment business.  
One that gave them financial freedom and choices in their lives.
Michael Yardney is a director of <a href="https://www.metropole.com.au/" rel="nofollow">Metropole Property Strategists</a>. 
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The best and worst property investment advice I've received: Michael Yardney

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Recent reports reveal that Australia has overtaken the US as titleholder for “home to the world's largest houses”.
Large ‘McMansions’ on expansive suburban blocks have long been held up as the ‘Great Australian Dream’ ideal, while smaller inner city apartments copped a pretty bad rap as the cheap and nasty end of the property market.
However, <a href="https://www.propertyobserver.com.au/residential/times-are-changing-and-apartments-are-on-the-rise-terry-ryder/2013041560408" target="_blank">times are changing</a>, with many home buyers and tenants forced to reflect on whether their priority is square footage and a big backyard in the burbs or getting into a property without breaking the budget.
Suddenly that one-bedroom apartment seems a lot more appealing.
Whilst many developed countries have embraced the virtues of high-density accommodation clustered around major cities – think New York, Paris, London and Tokyo – here in Australia, our culture has been based on backyards, BBQs and wide-open family spaces.
Now though, a demographic shift is occurring, with more single person households and childless couples choosing to live in and around our big cities where employment and lifestyle factors are big drawcards.
Figures from the Australian Bureau of Statistics (ABS) reveal that the number of one person households will surge to between three million and 3.6 million by 2031; a dramatic shift when you consider that in 2006 only 1.9 million people lived alone.
This massive increase is due to a number of factors, including:
<ul>
<li>Gen X downsizing as their children grow up and leave the family home.</li>
<li>A forecast jump in the number of DINKS (Double Income No Kids). According to the ABS, couple-only households are set to overtake the number of families with offspring in the next two or three years, and it's expected that DINKS will make up 60% of all couple-only households by 2031.</li>
<li>A rapidly growing population and continuing housing shortage in some of our major cities.</li>
<li>Ongoing affordability issues and increasing rental prices forcing many to rethink their size requirements.</li>
</ul>
Demand for one bedroom apartments, which skeptics have long considered to be less desirable, is set to soar as many Australians adjust their ideals according to what they can afford. And one of the questions they'll be asking is: do I really need that extra bedroom?
In the past, singles and couples have, by and large, sought out two bedroom apartments with the perception that they offer larger living spaces and the convenience of extra storage.
However, with median price tags for such real estate heading upwards of $500,000 and rents soaring over $500 per week in many desirable locations, the affordability barrier is encouraging many tenants, investors and home buyers to accept one bedroom units as a viable alternative.
Recognising this growing trend, developers are jumping on the bandwagon and including more one bedroom units in their large scale projects. But be wary – the price of many of these new apartments is going up as their size is going down.
 
<hr class="system-pagebreak">
So do one bedroom apartments make good, affordable investments? 
 
Is there enough ongoing future demand from tenants and owner occupiers alike to ensure they perform as long-term cash cows?
The simple answer is – yes!
Why?
Because affordability means more owner-occupier buyers will be pushed into this type of real estate as they sacrifice size for location, thereby increasing demand and placing upward pressure on prices. These apartments are often located closer to the city and major work nodes as well as universities and hospitals, in areas that generally have efficient transport connections, plenty of retail facilities and social amenity; all key elements high on the list of young buyers.
In addition, tenants seeking rental accommodation in and around desirable lifestyle locations will look for affordable one bedroom alternatives, meaning investors will have a large tenant pool to help pay the mortgage.
Sure, one bedroom accommodation caters to a narrow demographic of one and two-person households, but the reality is this is a mismatch of the demand from this growing demographic and the relatively restricted supply of established one bedroom apartments that are “investment grade” properties.
I have to say that some of my best performing investments over the last few years have been one bedroom apartments. They attract a diverse range of tenants, including Gen Y’s making the break from mum and dad; young professional couples, middle-aged singles as well as downsizing baby boomers.
A few words of warning:
<ul>
<li>Small spaces can either be highly functional or incredibly pokey, meaning the design and layout of your apartment is critical.</li>
</ul>
<ul>
<li>Avoid studio apartments. They are too small, the banks don't like them and they are very hard to on sell. Instead, go for something that offers at least 50 square metres of indoor space and if you can manage a balcony and plenty of clever storage options, all the better. Off-street parking is a desired bonus, but not necessarily required if close to transport</li>
</ul>
<ul>
<li>Steer clear of new and off-the-plan developments, especially in the CBDs of our major capital cities. Especially in Melbourne, where there is a huge oversupply and Brisbane with a potential oversupply problem.</li>
</ul>
<ul>
<li>Avoid the large generic developments sold off the plan in the center of major cities. While these might seem shiny and new, they quickly lose their lustre when people realise they lack character and the timeless appeal that puts property in continuous strong demand. Usually the majority of buyers in these soulless complexes are investors, while owner occupiers – the true driving force behind real estate values – tend to stay well away in preference of something more established or in a boutique block.</li>
</ul>
So next time you're shopping for an investment remember that it's not the size of the property that counts, it's the size of the profit you'll realise at the end of the day!
Michael Yardney is a director of <a rel="nofollow" href="https://www.metropole.com.au/">Metropole Property Strategists</a>.
 
 
 
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Warning, but yes small apartments offer big property investment possibilities: Michael Yardney

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Many young Australian families are having difficulty getting a foot on the rungs of the property ladder and the common catch cry is “property is unaffordable”. Some blame the high cost of housing on greedy developers while others blame wealthy investors who use tax dodges like negative gearing.  
But is that really the case?  
There is no doubt housing in our capital cities is expensive, but is it really unaffordable? Let’s have a look.  
Why are house prices so high?
House prices are obviously made up of the land component and cost of the dwelling on it.  
The cost of building a new house has hardly moved (in inflation-adjusted terms) over the last 20 years, however land prices have skyrocketed.  
By restricting the <a target="_blank" href="https://www.propertyobserver.com.au/australian-capital-territory/increasing-land-supply-is-not-the-answer-to-affordability-issues-terry-ryder/2013041060295">amount of land</a> available on the urban fringes of our cities, in part to cap urban sprawl and the associated costs of building infrastructure, state governments have sent the price of entry-level housing through the roof.  
I’ve heard it said that Australia does not have a housing affordability problem, it has a land affordability problem.  
How much of the cost of a new home goes into taxes?
If I asked you how much of the cost of a new home goes toward paying for various taxes, what would your guess be?
Would you guess 5%? Or maybe 10%?  
Well, you would be way of the mark. It can be as much as 44%.  
Research by the Centre for International Economics, commissioned by the HIA, found that Sydneysiders paid about 44% (or an average of $268,000) in various taxes when they built new homes. In Brisbane the figure was about 36% (or $191,000) and in Melbourne taxes accounted for 38% of the cost of new homes.  
In other words, new housing is one of the most heavily taxed sectors of the Australian economy.  
Are houses really unaffordable?
Having said that, do today’s first homebuyers really have it tougher than their parents did?  
Is it all really as bad as what many commentators and the media would have us think?  
I know when I bought my first property close to 40 years ago, properties were unaffordable.  
My first mortgage was for $16,000 and I had no idea how I was ever going to pay it off over the 20-year term. Remember, I was only getting $12 a week rent from my tenant back then in the 1970s.  
According to the ANZ’s head of property research, Paul Braddick, those looking to get their foot in the proverbial property door are no worse off today than purchasers from the 1980s.  
Contrary to popular belief, Australian property prices have increased in line with rising incomes and lower interest rates over the past thirty years. Over the last few decades, increasing income and falling interest rates have been capitalized into house prices.  
The increased number of households with two wages, as well as higher average incomes for women, has put buyers in a better financial position than they were in three decades ago. And recently flat or falling house prices plus falling interest rates have made properties more affordable for many.  
A reality check
Before we complain too much about the cost of new housing, let’s not forget that the type of property many first homebuyers expect today is very different to what their parents started off in. In fact they expect to start off in the type of house it took their parents 30 years to be able to afford.  
Today’s first-home buyers are looking for bigger homes on a large block of land with an ensuite, probably a double garage, all the modern conveniences including air conditioning, a dishwasher and let’s throw in a media room for good measure.  
It’s also worth noting that today around 70% of people own their own home and just 30% rent. In 1911 those figures were reversed; at that time the typical house would have only had one bathroom (an outside toilet).  
By the way, did you know Australia can lay claim to having the largest homes in the world? The average size of our new homes is 214.6 square metres. While US home-builders have been building smaller homes over the last few years, Australian homes have continued to get larger. 
 
<hr class="system-pagebreak">
So what is affordable?
There are many ways to measure housing affordability and many of the models used by overseas economists are not really relevant to Australia.  
To me the key question is: do households in 2013 have more or less disposable income after buying a home and paying down the mortgage than their predecessors?  
Last year the RBA found that, contrary to popular myth, today's households actually have more disposable income than at any other point since they began their analysis in 1993.
Of course, there are some good explanations for this. Per capita disposable income has been growing very strongly, and has outpaced house price appreciation, over the last 7-8 years.  
Over the longer-term, we have had a structural decline in the unemployment rate from the double-digit peaks in the early 1990s to just over 5% today. And then we have had the rise of multi-income households thanks to a secular increase in the female participation rate.  
Last month, the Reserve Bank assistant governor Christoper Kent presented the following chart, which shows that payments on new housing loans now represent less than a quarter of disposable income due to the property price correction we experienced in 2011 and the in first half of 2012 (a time when the cash rate fell from 4.75% to 3.00%).
On the other hand, wages continued to grow <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/6345.0" target="_blank">across Australia last year</a> by an average of 3.4%.
<img alt="yardneyapril19one" src="/images/stories/2013/04/yardneyapril19one.jpg" width="374" height="353">
In summary
Currently, interest rates are at record lows and may even fall a little further at a time when incomes are likely to keep rising as our economy chugs along. This will make housing even more affordable for many this year.   Now may be as good a time as any to buy your next property.
Michael Yardney is a director of <a href="https://www.metropole.com.au/" rel="nofollow">Metropole Property Strategists</a>.
 
 
 
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Housing is more affordable than you think

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“It was the best of times, it was the worst of times…” These words seem as relevant describing the Melbourne property market today as they were when written by Charles Dickens over 150 years ago in A Tale of Two Cities.
The latest RP Data stats show that overall Melbourne dwelling prices increased by 2.5% over the last quarter and have risen 4.9% since the market turned in May last year.
Not a bad result! But when you dig deeper you find there is a shortage of well-located, desirable, established apartments and houses in Melbourne’s middle ring suburbs, causing prices to rise and auction clearance rates to remain high.
But on the other hand, there is a glut of new apartments coming onto the market and a dearth of new house and land packages standing vacant not able to find buyers.
Add to this the record number of new apartments coming onto the market in some of Melbourne's inner suburbs over the next few years, which will put further pressure on the city's supply and demand ratio.
According to a recent report by valuers <a href="https://www.charterkc.com.au/" target="_blank">Charter Keck Kramer</a>, about 25,500 new apartments will be completed in metropolitan Melbourne by the end of next year, four times what was built in 2005, when the market for apartments last peaked.
And there are even more in the pipeline. Across the Melbourne metropolitan area there were about 10,250 apartment completions last year, 19,250 under construction and 16,300 being marketed but not under construction.
Many off-the-plan purchasers will be disappointed
The problem is that many Melbourne purchasers bought their off-the-plan apartments a few years ago during more buoyant times, and according to Charter Keck Kramer, eight out of ten off-the-plan apartment sales coming up for completion over the next two-and-a-half years could be facing negative equity.
Apartment prices across Melbourne have fallen between 7% and 11% in the past 12 months and even more than that in some areas of oversupply.
The potential problem for off-the-plan buyers is that, on completion, valuations will fall far short of their contract purchase price and the banks will only lend against the lower valuation. This means many buyers will have to bridge the gap, coming up with the shortfall as well as the stamp duty and acquisition costs.
If history repeats itself, some buyers will try and walk away from their contracts, accepting the loss of their deposits. But they could be in for a rude surprise if the developer on-sells the apartment at a lower price and sues the original purchaser for any loss.
 
<hr class="system-pagebreak">
Melbourne house and land sales are also in big trouble
One more thing: the new house and land market in Melbourne also has a huge oversupply.
According to real estate group Oliver Hume, there has been a 29% increase in the number of residential projects being marketed on Melbourne fringes since 2006, at a time when there is a 5% decline in the number of land settlements.
Land prices have now fallen by a cumulative 16% over eight consecutive quarters, forcing developers and marketing companies to entice first home buyers and property investors by offering substantial incentives.
At the same time as experiencing an oversupply of land, these areas lack infrastructure and facilities, meaning there will be no swift recovery in the outer-Melbourne residential new housing markets.
If you want to get an idea of the huge oversupply just hop on to <a href="https://realestate.com.au/" target="_blank">RealEstate.com.au</a> and type in <a href="/news">Point Cook</a> or <a href="/news">Truganina</a> and you’ll be shocked by how many properties are for sale.
I’ll save you the trouble: Point Cook and surroundings – 3482; Truganina – 4020.
And it’s much the same for many of the northern and western outer suburbs in Melbourne.
So why are the stats showing the Melbourne property market is rising?
Considering the outer suburbs are performing so poorly, the overall figures just show the strength of the established home and apartment market in Melbourne’s inner and middle ring suburbs where there is a shortage of good properties.
Now is a time to be very selective in what you buy in Melbourne. While there are some good buying opportunities, there are also a lot of secondary properties on the market right now.
Michael Yardney is a director of <a rel="nofollow" href="https://www.metropole.com.au/">Metropole Property Strategists</a>.
 
 
 
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Melbourne's property market is a tale of two cities: Michael Yardney

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."

&nbsp;

[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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