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With the year coming to an end, it’s interesting to look back and see how turbulent the last 12 months have been and how many crises we’ve survived.
The troubles in Europe and the US didn’t bring the financial system to its knees, our economy performed well, and our property markets didn’t collapse, as some doomsayers predicted. In fact, our markets finished the year in much better shape than they started.
While it looks like 2013 will be another “interesting” year and the media will continue with its barrage of negative messages, the good news is out there -- you just have to look for it.
In the spirit of optimism, here are 17 things you should feel good about.
<ol>
<li>Biomedical gerontologist Aubrey de Grey thinks the first person to live to see his or her 150th birthday is already born. Medical technology is awesome.</li>
<li>The International Monetary Fund reported that Australia is now the world’s 12th largest economy, steadily moving its way up the list and punching well above its weight for a nation of 23 million people.</li>
<li>Swiss Banking giant Credit Suisse reported that Australians have the highest edian net worth in the world – $217,559 per person. By the way, that’s almost four times the net worth of each person in the U.S.</li>
<li>A cancer-stricken man from Eritrea received an artificially grown trachea derived from his own cells. More awesome medical technology at work.</li>
<li>Part of the reason our health system is a money pit is because we are living much longer than previously expected. I can think of worse problems.</li>
<li>If you're reading this article, you're part of the 30% of the world with internet access. Some 70% of the planet would love to be in your shoes.</li>
<li>Australia’s population is growing at around 1.4% per annum. Faster than almost every other developed nation.</li>
<li>94% of Australians who want a job are gainfully employed.</li>
<li>Today's personal savings rate is higher than it has been for many, many years.</li>
<li>Life expectancy for someone born today is eight years longer than someone born in 1960.</li>
<li>Ten years ago, mobile phone technology consisted of a calculator and game called Snake. Today you can watch full-length movies, bank online and get driving directions on a phone half the size and a fraction of the price.</li>
<li> Almost all news on the internet is free.</li>
<li>You had to be rich to get on an aeroplane in 1950; today almost every Australian can afford to fly.</li>
<li>In the U.S. and Europe, death by stroke has fallen 70% since the 1950s.</li>
<li>In the early 1970s, an influential study predicted the world would exhaust all known supplies of oil and natural gas by 1992. “End of the world” predictions are nothing new.</li>
<li>Interest rates are low, affordability is the best for a decade consumer sentiment is increasing, auction clearances are firm and prices are creeping up. Putting all this together, it looks like our property markets bottomed in the middle of 2012 and 2013 will be a better year for property.</li>
<li>Around 0.3% of the world’s population live in Australia. Odds are, you're one of them.</li>
</ol>
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
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Reasons to be thankful in 2012

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Australia has had a boom and gloom economy over the past year. On the one hand our economy still grew – unlike many others around the world –underpinned by a resources boom.  But on the other hand, consumers and businesses were gloomy.
And it was much the same with property. Some areas fared well through the year, but many didn’t.
However, looking back, 2012 will be remembered as the year the property market turned.
It didn't crash like many property pessimists predicted. Sure it stalled in some areas, dropped a little in others and prices fell significantly in a few spots, but in the middle of the year things slowly started to change.
So what gives? 
Our property markets started the year in a tug-of-war caught between falling interest rates on the one hand and market uncertainty on the other.
There were concerns of a meltdown in Europe that could bring the financial system to its knees as well as worries about the US economy. The European economy is still a “basket case” and will remain so for years, however the major risks to the financial system seem to have been averted and over the year the USA economy has improved, albeit slowly.
However we have something new to worry about – the health of our resources boom has come into question. The Chinese economy, the powerhouse behind our resources boom, slowed down during the year, and falling commodity prices and high costs of production have brought concerns about the future of many of Australia’s major mining projects.
What happened in our property market?
We started the year with more properties on the market than there were buyers as many potential home owners and investors stood on the sidelines, too nervous to make a decision waiting for the market to bottom.
Of course it’s not really as simple as that, because there is not one property market.
Well-priced properties in prime locations and with an element of scarcity in the middle price range (say $450,000 and $850,000) have still been selling well, even though clearly there was less interest from both owner-occupiers and investors than before.
However, “B”- and “C”-class properties have not been not selling well. Nor have expensive properties in our more affluent suburbs or holiday properties. Some dropped in value by up to 10%, and some couldn’t be given away.
Well, it wasn’t really as bad as that, unless you were in some remote regional location, but you’d have to give a very steep discount for someone to buy them.
Then things changed:
Eventually a combination of increasing affordability due to higher wages, lower prices and falling interest rates brought buyers back into the market, heralding an upwards trend in values from around the end of May.
This trend, shown in the following graph from RP Data, has also been confirmed by figures from <a target="_blank" href="https://www.apm.com.au/">Australian Property Monitors</a>, <a target="_blank" href="https://www.residex.com.au/">Residex</a> and the <a target="_blank" href="https://abs.gov.au/">Australian Bureau of Statistics.</a>
Click to enlarge
<a href="/images/stories/2012/12/yardneydec7.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/12/yardneydec7thumb.gif"></a>
How did things finish off?
The latest figures from <a href="https://rpdata.com/">RP Data</a> up till the end of November show that capital city home values remain 5.6% lower than their historic highs of November 15, 2010, but up 2% from their low of late May 2012. 
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/12/rpdec33.gif" title="Click to enlarge"><img src="/images/stories/2012/12/rpdec33thumb.gif"></a>
 
<hr class="system-pagebreak">
 
More good news
Another positive sign is that the level of confidence among Australian consumers (as measured by the Westpac-Melbourne Institute Consumer Sentiment Index) has been rising since April this year.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/11/lawlessnov230.gif" title="Click to enlarge"><img src="/images/stories/2012/11/lawlessnov230thumb.gif"></a>
An easy way to interpret this index is that when it is over 100, optimists outweigh the pessimists and when the index is lower than 100 there are more pessimists than optimists.
In November 2012, the Consumer Sentiment Index was showing a value of 104.3.
Coincidentally <a target="_blank" href="https://comsec.com.au/">Comsec</a> reported housing affordability as the best it’s been in a decade, as shown in the following chart:
<img src="/images/stories/2012/12/yardneydec71.png" width="470">
Consumer confidence is one of the most important leading indicators for the housing market. Put simply, when consumers are lacking in confidence (as they have for the last few years) they tend not to make important and expensive buying decisions such as moving house. And when confidence is high, the number of home sales increases.
And this is already translating into higher levels of finance approvals, which is another important leading indicator, as most home buyers and investors get their finance two or three months before they buy a property.
 
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Where are we now?
What these figures don’t show is how fragmented the markets really are. 
We know there is not one Australian property market. There are many different markets in different geographic locations, at various price brackets and for different types of property. There is no doubt that home values are still falling in some areas and they are rising in others, but overall things are improving.  
Buyers are back in the market, but at the right price. Stabilising house prices and interest rate cuts are breathing life into the property markets.
Auction clearance rates are up in and vendors are more willing to accept realistic offers.
Vacancy rates are less than 2% in every capital city other than Melbourne, pushing up rentals. This together with better affordability will eventually bring more first-home buyers back into the market.
At the same time overseas investors are snapping up many of our new apartment projects and baby boomers are buying properties in their self-managed superannuation funds.
We’re in the stabilisation phase of our property cycle.
<img src="/images/stories/2012/12/yardneydec72.jpg" width="470">
(c) Metropole Properties
We’ve moved into the stabilisation phase of the property cycle.
You see, the markets don’t move directly from the downturn phase to a property upturn. There is a period of time where buyers return and take up the slack before prices start rising significantly.
And I expect more buyers to return to the market in 2013 year when they realise prices won’t fall any further.
By the way, the stabilisation phase is a great time for smart home buyers and strategic investors to get set for the upturn stage of the cycle.
This may be a good time to buy property – I have always found it a good time to buy when everybody tells you that property is a bad investment. Now is the time to get set for the future.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
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Australia's property markets turned in 2012

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The Victorian Baillieu government is drawing up plans for the future of Melbourne. 
And it’s got quite a task ahead, as Melbourne's population is expected to increase by half again from the current 4.1 million. This means an extra 2 million residents in less than 40 years.
This influx is sobering when you consider the amount of infrastructure required to support that many new inhabitants.
A planning report, Planning for Community Infrastructure in Growth Areas, has revealed we’ll need eight new hospitals, 67 secondary schools, 125 new maternal and child health centres and 222 kindergartens by 2050 to cater for Melbourne's booming population.
Melbourne today
 There are just over 4.1 million people living in Melbourne today, and its population is projected to grow by about 65,000 new residents each year over the next decade.
Currently there are 1.63 million private dwellings in Melbourne, of which about 15% are apartments. Over 70% of Melburnians own their own homes, with almost half of these owning their homes outright (with no mortgage.)
While on average there are 2.6 people per dwelling, almost one-quarter of the city’s residents live alone.  In fact less than half of Melbourne’s homes have children living in them.
What about the future?
 These figure suggest we’re going to need around 760,000 new dwellings built in Melbourne in less than 40 years, of which close to 250,000 could be apartments.
Our changing lifestyles mean more Victorians are going to trade their quarter-acre block for a balcony and the percentage of apartments in Melbourne is likely to grow closer to 30%.  As a point of comparison, currently 25% of all dwellings in Sydney are apartments.
We already know that Melbourne has been voted as one of the world’s most liveable cities, but in order to maintain this mantle our federal and state governments as well as local councils will have an important role to play by investing in key infrastructure in a timely manner.
Melbourne will start to look like many other large international cities, with high-rise apartment building dotting the landscape.
What does this mean for property investors?
 Melbourne’s strong population growth, together with the increasing affluence of its residents, coupled with the fact that many of them will want to live in the same suburbs close to where all the action is, will ensure the value of well-located properties will keep increasing over the long term. 
The trick will be to own the type of property that will be in continuous strong demand by a large demographic of these new residents, and for many, this is likely to be well-located apartments.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
 
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What kind of property you should invest in as Melbourne grows by 2 million people

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With flat or falling property markets around Australia for the last few years, many property investors are worried and wondering: "What will my property be worth next year?"
Every Monday they look at the auction clearance results, and each month they check on median property values. While it's not as bad as watching your shares fluctuate in value on a minute-by-minute basis, this short-term focus is unhealthy for investors, who are generally in it for the long-term.
I think a better question to ask would be: "What will my property be worth in 10 years’ time?"
The scary thing for some is that there are still commentators out there suggesting property values won't rise for another decade. “Just look at the financial mess the world has got itself into,” they say.
Then there are those overseas gurus who predict the world is about to go through an economic tsunami that will finally swamp Australian property, taking prices all the way back to where they were a decade ago.
Of course there's nothing new about these property pessimists – they've always been around, and they've always been wrong.
Look what happened over the last 10 years
 The value of well located capital city properties have more than doubled over the last 10 years despite the introduction of the GST in 2001, the dotcom share market crash, going to war in Iraq, a change in government, periods of high interest rates, periods of low interest rates and the world's worst economic downturn since the Great Depression.
I'm sure more Australians would have bought properties 10 years ago if they knew what would happen to values over the next decade.
Of course I don't know what's ahead in the next 10 years, but I do know that there will be just as many hurdles to jump over.
Australia is well-positioned for the future
 While many parts of the world are in economic turmoil, Australia's economic fundamentals suggest the next 10 years are going to be just as good, if not better, for property than the last 10 years were.
Our economy is the envy of most other developed nations, unemployment is low, our banking system is sound, our population is growing and on average we are the wealthiest people in the world.
Putting all this together means that property values are once again likely to rise significantly over the next decade.
But if history repeats itself, and it will, during that time we will have another property boom, a further property slump and most likely another economic downturn.
To safely steer through the next decade to the point where their property values will have once again double, strategic investors will need to stop worrying about the "market noise" and not be intimidated by the small stuff, like interest rate increases, tax issues and the negative news in the media.
Instead, they will need to focus on the big picture.
 
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So what will Australia look like in the future?
Our population will keep growing as skilled immigrants come to Australia to take up the jobs that will be created as well as replacing the retiring baby boomers. 
According to a report from research firm <a target="_blank" href="https://www.ibisworld.com.au/">IBISWorld</a>, the average Aussie in 2025 will be greener, live in a city apartment with a balcony and shop on the internet. 
The research shows that increased urban sprawl, gentrification and multi-occupancy housing will continue to be the big housing trends in the coming 10 years. 
The population of all our capital cities will increase significantly, but looking towards 2025 Western Australia is expected to exhibit the strongest population growth, adding an additional 1 million people to its population over the next decade. 
In terms of types of residences, the report suggested that property price increases, combined with family and lifestyle factors, will drive a trend towards apartment and high-density living. More Australians will be trading in quarter-acre blocks for balconies in the future. 
The increasing average age of marriage (now 29 for females, 32 for males) and the trend to wait longer to have children is another factor fuelling the shift towards apartment living – with young people opting to live in close proximity to work, entertainment, dining and public transport.
It becomes fascinating when you consider that Melbourne and Sydney may each require around 30,000 new apartments over the next 10 years. This is equivalent to 150 high-rise buildings, each accommodating 200 apartments. Things will get interesting because while Australians request less urban sprawl, they also want less high-rise living, so the idealistic preferences will have to give way to reality.
It is likely that we will have more decentralised development in the future with the emergence of medium- to high-rise residential buildings in the suburbs rather than just in the inner-suburban areas. These will occur around public transport terminals, railway stations and possibly conjunction with large shopping centres. We will also see the continuation of the trend of integrating medium-density residential development with existing strip shopping centres.
What should a property investor look for?
What this boils down to it that over the next 10 years conditions in our capital cities are likely to be even better than we experienced over the last 10 years and overall properties will increase in value by billions of dollars a year. 
If you want to develop financial independence through real estate it will be important to own the type of property that will be in continuous strong demand in the future, and particularly the type of property that will be in demand by owner-occupiers (who are the ones that push up property values) rather than what tenants will want. I’ve found there are always tenants for all levels of property, and this is likely to continue in the future as affordability of well-located apartments will become an issue for more young buyers.
It will be interesting to look back in 10 years’ time and see how things pan out.
In the meantime, strategic investors will take a big picture view, buy more located properties and see the value of their portfolio steadily increase.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
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Why property investors should not be worried about values falling: Michael Yardney

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While 500 million people have moved from rural China into modern cities, <a href="https://www.pnas.org/content/early/2012/05/09/1205672109.full.pdf">a recent study</a> by Richard Easterlin, a professor of economics at the University of Southern California and the author of Happiness, Growth and the Life Cycle, shows that there is no evidence that the Chinese people are, on average, any happier.
If anything, according to an article in the <a href="https://www.nytimes.com/2012/09/28/opinion/in-china-growth-outpaces-happiness">New York Times</a>, they are less satisfied than in 1990, and the burden of decreasing satisfaction has fallen hardest on the bottom third of the population in wealth. Satisfaction among Chinese in even the upper third has risen only moderately.
What were the findings? Starting in 1990, as China moved from socialism to a free-market economy, real per-capita consumption and gross domestic product doubled, then doubled again. Most households now have at least one colour TV, and many have refrigerators and washing machines. This was rare before 1990.
In the studies conducted by Easterlin participants were asked about their satisfaction with life as a whole and he was startled to find that Chinese people’s feelings of wellbeing have declined in a period of such momentous improvement in their economic lives.
After all, most of us would assume that a fourfold increase in a people’s material living standard would make them considerably happier.
What happened?
Interestingly, before free-market reforms kicked in, most urban Chinese workers enjoyed what was called an “iron rice bowl”: permanent jobs and an extensive employer-provided safety net, which included subsidised food, housing, healthcare, childcare, pensions and jobs for grown children.
Life satisfaction during this period among urban Chinese, despite their much lower levels of income, was almost as high as in the developed world.
The transition to a more private economy in the 1990s abruptly overturned the iron rice bowl. Hundreds of thousands of Chinese who worked at inefficient and unprofitable state companies were laid off. The loss of jobs also meant the loss of the employer-provided safety net.
Worries about job security are reflected in feelings of financial satisfaction. At the same time more Chinese were reporting that their health deteriorated.
China’s transition has been similar in several respects to the transitions of countries in central and Eastern Europe. In almost all countries, life satisfaction initially declined and then recovered to numbers somewhat below pre-transition levels.
 
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What can we learn from China’s transition? Certainly not that China should return to socialism and the gross inefficiencies of central planning, according to Easterlin.
What it does show is that its market transition has given birth to increasing concerns among everyday Chinese about such matters as finding and holding a job, the availability of reliable and affordable healthcare, and provision for children and the elderly.
To its credit, the Chinese government has taken some steps in recent years to broaden and improve unemployment and pension benefits, as well as to upgrade the health care system. But the safety net remains in need of substantial repair.
My thoughts:
These finding don’t surprise me. While many of us strive for more money thinking it will make us happier, that is rarely the case. 
It took me a number of difficult life lessons to learn that money is important in those areas of life where it is important (such as paying the bills and the school fees) and it’s not at all important in those areas of life where it is not important.
To be truly wealthy you need a lot more than money. 
You need your health, family and friends that love and appreciate you and the time to enjoy life. In my mind you also need spirituality and the ability to give back and contribute to the community to be truly wealthy. 
So owning more properties or having a colour television, washing machine or fancy appliances won’t necessarily make you happier. 
However, I remember someone once telling me that it felt much better to turn up to your troubles in a Mercedes than a Hyundi.
 Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
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Why doesn't money buy happiness?

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Fact: most property investors never get past owning one or two properties. In my experience, the two big things most property investors fail to do are:
<ul>
<li>Have a formulated property investment strategy; and </li>
<li>Regularly review their property portfolio’s performance.</li>
</ul>
If you don’t really know why you want to build a property portfolio or how it will one day get you out of the rat race and if you don’t really know where you are heading, how will you know which properties to buy? How will you know if you’re on track and on target?
The trouble is if you don’t know where you are going, any road can get you there, but any road can get you lost. And nowhere is this truer than property investing.
What are your goals?
How much money do you want your property portfolio to produce? How many properties will you need to achieve this?
And what type of strategy are your going to follow – capital growth, cash flow or are you just going to leave it up to luck?
Currently there are over 400,000 properties on the market in Australia. Not all of them will make good investments. In fact, most won’t.
To ensure I only buy properties that outperform the market averages I use a 4 Stranded Strategic Approach:
1. I buy a property below its intrinsic value.
2. In an area that has a long history of strong capital growth.
3. I look for a property with a twist – with something unique, special, different or scarce about the property.
4. And I buy the type of property where I can “manufacture capital growth” through refurbishment, renovation or redevelopment.
While most investors read a book or two, do a little research and then buy one of the first properties they come across, strategic investors are smarter than that. They follow a system that is rooted in the real world and has stood the test of time and changing markets.
By following my 4 Stranded Strategic Approach I minimise my risks and maximise my upside as each strand represents a way of making money from property and 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.
But it doesn’t end there. I also suggest you…
Regularly review your property strategy
While most investors just buy a property and hold it for the long term, strategic investors regularly review their investment portfolio’s performance.
When I ask investors how their properties are performing they usually have no idea. They’ve just closed their eyes, crossed their fingers and hoped for the best. It makes no sense to invest in a property and then not review its performance every year or so.
Some investors avoid the tough decisions and excuse their property’s poor performance by saying things like “it will turn around eventually” or “I don’t want to make a loss, so I’ll sell it when I can cover my costs.”
 
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Interestingly, every year I like to ask myself some questions about each of my investment properties:
<ul>
<li>How has this property performed over the last few years?</li>
<li>Knowing what I know now, would I buy this particular property again?</li>
<li>Is this property likely to outperform the averages over the next decade?</li>
<li>Is there anything I could or should do to improve this property and generate a better return on investment for me?</li>
</ul>
Logically, if a property has not performed well over a three or four-year period, it’s likely to be a dud investment. The answers to these questions help ensure that I only retain top performing properties in my portfolio and that my money is working hard for me.
But isn’t it the wrong time to sell?
If due to your financial capacity you can only afford to hold five properties, you should aim to own the five best performing investment properties you can. This means that if your property isn’t giving you the return you feel it should, then it might be time to make a change either through renovations, by changing property managers or by selling up and buying a better performing investment property.
I know the market is flat and you may not get the optimal price today, but don’t wait till the market picks up because the gap between your underperforming property and better performing investments will only widen as the market improves and it will become harder and more expensive to buy the type of property you’d like to own.
Essentially the sooner you can identify and offload an underperforming property, the better. Sure, you may crystallise a loss, or have to pay some capital gains tax on the sale and then pay stamp duty on your next purchase.
I understand this may mean that you’ll take two steps back to move three steps forward; but if you treat your property investments like a business, and that’s what all strategic investors do. You’ll recognise that it’s not how much money you make that matters; it’s how hard your money works for you and how much you keep that counts.
Sure, there are lots of other mistakes you could make as an investor, but if you adhere to a proven property investment strategy and then regularly review the performance of your real estate portfolio, you’re likely to avoid the majority of blunders that other investors make.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
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Why most property investors don't get rich: Michael Yardney

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Once again the value of negative gearing to allow property investors to buy their properties has come into question. 
Some academic commentators and social welfare lobbyists seem to regard negative gearing as primarily a tax avoidance device use by the wealthy to rort the system, which has the added consequence of pushing up property values. 
Negative gearing is not just for the rich
The assertion that all negatively geared property investors are “ugly wealthy Australians” is simply unfounded and incorrect. 
According to 2006-07 ATO taxation records, 1.6 million taxpayers claimed rental income, and of those, two in three negatively geared their investment(s). Interestingly, these investors predominately do not come from the wealthy end of town. Indeed, 74% of negatively geared investors earned less than $80,000. Only 4% were in the top tax bracket. 
The fact is, using the benefit of negative gearing investment has allowed many ordinary working-class Australians to invest in property and to take control of their financial destiny. 
Property investors provide an essential service
While some opponents of negative gearing appeal to the frustration of would-be home owners, suggesting they have been locked out of the market by greedy, tax-driven property investors who receive billions of dollars of tax breaks that push up property prices, I would argue that property investors provide an essential service to millions of Australians who chose to, or have to, rent their accommodation, and as such these investors should be treated like all other businesspeople. 
In our modern society we pay taxes and expect the government to provide us with certain essential services. These include hospitals, roads, schools, jails, public transport, aged care and public housing. 
In Australia the government often shares the burden of providing these services with private enterprises that can often deliver them more efficiently and cheaper. 
When the government can’t supply enough public hospital beds, privately run hospitals step up to the mark and not only receive tax deductions for their business loans, but also allowances to subsidise them. So do aged care providers, schools and public transport providers that provide services in tandem with the government.
Our government also provides public housing, but not enough for all those who can’t afford to buy their own property. While government programs such as the National Rental Affordability Scheme and other social and public housing programs are helpful, it is only the private rental market that can deliver rental accommodation at the rate and scale that is required at present. 
Property investors save a deposit, buy a property, commit to a loan for 25 or 30 years and provide accommodation for others in our community. In return we expect to get a reasonable return on our investment risk, just like other businesspeople do. 
We know that the rent won’t cover our expenses, but accept that certain tax benefits plus the long-term capital growth will make up for this. 
Sometimes it does, and sometimes it doesn’t.
What if the government removes negative gearing?
Leverage and negative gearing compounds returns in the good times, but multiplies losses when property prices are flat or falling. I know as many people who have lost money in property investment as those who have made money.
Much like most other small businesspeople.
If the government takes away my tax concessions, I would have to consider my investment options. To ensure I get a decent return I’d put up my rents if I could, or maybe I’d invest elsewhere to get the best bang for my bucks.
The result would be that rents would rise and tenants would have to fight over the few rental properties left, or the government would have to invest its own money and buy or build properties and enjoy the pleasures of being a landlord.
Of course the government already provides some public housing, but not enough, leaving the task of providing rental accommodation not only in our capital cities, but also in regional Australia and in the remote mining towns to private investors. People like you and me who have chosen to run our own little property investment businesses.
If I set up a dog wash business or a restaurant, I’d be able to claim a tax deduction for legitimate business expenses including loans to set up our business or purchasing business equipment.
Why should it be different for property investors who take on a business risk?
 
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Doesn’t negative gearing push up property values?
To say negative gearing has pushed up property prices is a smoke screen.
Just look what happened to property prices overseas in countries like the USA and parts of Europe, where negative gearing isn’t allowed. They experienced a boom and a subsequent bust of much greater magnitude that we have.
What these lobbyists may not recognise is that borrowing in order to undertake productive investment actually helps economic growth because value is being added.
After all, there will always be some investments that have lower returns than the interest expenses on the loans taken on to acquire them. This economic reality has nothing whatsoever to do with tax.
For example, a typical property investment may start off with a large loan and lowish rent. As time goes by the loan is paid down and the rent increases. Overall the investor makes a profit and the tax office gets its share of this.
Actually, there is not as much loss of revenue to the authorities as some critics believe, because for every dollar of interest claimed as a tax deduction by a borrower there is a corresponding dollar of interest assessable to a lender.
But that’s not all
If the government stops the availability of negative gearing benefits, the danger arises that there may be unintended consequences.
It is possible that even following a positive cashflow strategy you end up negatively geared and suffer. What if:
• Interest rates rise after you buy your investment?
• Rents fall or your property becomes vacant for a period of time? Or
• You have to undertake a major repair of your investment property?
To deny the person making commercial a loss like this a tax deduction would be to inflict a double whammy on them and increase their hardship unduly.
In conclusion:
Any reduction in negative gearing benefits would significantly reduce rental investment in both new and existing properties and would worsen rental affordability through a reduced supply of investment housing. A reduced rental supply means lower rental vacancies and increased rents.
Property investment is a real and effective method for bolstering the savings of middle Australia at the same time providing accommodation for those who the government can’t or won’t help and should remain as is.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
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Negative gearing helps all Australians, not just the rich

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We’re into the last few months of the year and our property markets haven’t crashed like the overseas doomsayers and many in the blogosphere predicted.
Yet they’re still out there – the property pessimists looking for a reason why our property markets will tumble. Only last week another overseas 'expert' claimed that property in Australia was significantly over-priced and likely to crash by up to 60%!
Are they right? 
The property pessimists were wrong in 2008, 2009, 2010, last year and this year, so I guess some will push their “end of the world as we know it”predictions into 2013.
I doubt whether they will be right next year either, as there are a number of signs that our property markets have already bottomed.
<a href="https://blog.rpdata.com/2012/10/tale-of-the-tape-a-history-of-the-recent-market-correction-and-beginning-of-what-may-be-a-market-recovery/">RP Data’s</a> Home Value Index covering Australia’s five big capital cities, shows that Australia’s housing market reached a trough in May this year and dwelling values rose 2.5% across the five cities since then.
Some more good news
Last week’s Australian Bureau of Statistics housing finance approvals data showed that, excluding refinancing, housing finance rose by 2.6% for the month and up 5.7% for the year. This means more people are getting set to buy properties.
Around the same time the International Monetary Fund reported that Australia is now the world's 12th largest economy, steadily moving its way up the list.
It’s important to put this into perspective: our economy has become the envy of all developed nations and is bigger than that of many countries with much larger populations than ours.
And in further good news, Swiss Banking giant Credit Suisse reported that Australians have the highest median net worth in the world – $217,559 per person. By the way, that’s almost four times the net worth of each person in the US.
What does this mean for property?
While in the short term property prices are influenced by a host of macro and micro economic factors, in the long term there are really only two major factors affecting property values:
<ol start="1">
<li>
Population growth (which pushes up demand) and</li>
<li>
The wealth of the nation (our ability to afford higher priced property)</li>
</ol>
What’s happening to our population?
The <a href="https://propertyupdate.com.au/housing-demand-is-rising-at-the-fastest-rate-since-december-2009/">latest demographic update</a> released by the <a href="https://a/"></a>ABS showed our population growing at 1.49% per annum, the highest rate of growth since 2009, and net overseas migration was at the highest level in two years, with just over 197,000 net overseas migrants arriving in Australia over the previous 12 months.
That’s 18% higher than what was recorded a year ago, highlighting how significantly Australia’s rate of net migration growth has turned around.
Add to this the fact that our economy is performing well and I don’t think that anyone would dispute that as a nation Australia will become wealthier over the next 15 years.
This means things are looking good for our property markets in the medium to long term.
So have our property markets turned the corner?
It seems so. The latest <a href="https://www.rpdata.com/">RPData</a> figures for the September quarter show growth in Sydney (2.8%), Melbourne (3%), and Darwin (3.9%).
 
Adelaide has had two consecutive quarters of positive growth (1.2% for the September quarter). And Brisbane is finally showing growth (0.8% percent for the September quarter).
The Perth property market may be turning, with a slight increase over the last month, but it is down 0.2% over the September quarter. Canberra continues its sideways trend, with just 0.1% growth for the September quarter and Hobart’s property market fell 1.8% over the last quarter.
 
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Where to now for our property markets?
While we may have turned the corner, there are still some “interesting” times ahead.
Different markets – not just different state markets, but different classes of property – will perform differently.
I still see a significant oversupply in the inner-city apartment markets in Melbourne and Brisbane, which will keep a lid on prices and rents in those markets. And there is a substantial oversupply of new houses in Melbourne’s western and northern suburbs.
I can’t see the top end of the market (luxury homes) picking up until the business world and our share markets pick up; but there are definitely some suburbs in every state that are outperforming the averages.
These markets are being driven by owner-occupiers getting into the market and strategic investors getting set for the next stage of the property cycle.
We’re not going to have another property boom any time soon
We’ve entered the stabilisation phase of the property cycle – that stage where more buyers enter the market soaking up the properties for sale, but as the numbers of buyers and sellers are roughly in equilibrium, property prices will remain flat or only move up slowly.
However this is a time of great opportunity, which is not always recognised by investors and home buyers.
You see, it’s still generally a buyer’s market, where they can call the shots and set themselves up with good properties that will increase in value as the property cycle inevitably moves on.
In conclusion
As the cycle moves on, and it always does, the combination of population growth and increasing wealth will underpin the strong growth of capital city property values – as they have done for decades.
If you’re interested in securing your financial future through property investment, now may be a good time to buy property. I have always found it a good time to buy when many are still a little uncertain of what’s happening in the market.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
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Australia's property markets stabilising, which presents buyer opportunities

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With our residential property markets in a slump over the last few years, some investors are wondering if it’s worthwhile considering commercial property. 
They see that these are the type of properties owned by people in the BRW Rich 200 list and the big institutions; and they hear of high rental yields, long term leases and tenants paying the outgoings. All this makes commercial property sound very appealing. 
So let’s do a Q&amp;A to find out a bit more:
 Q: What are commercial properties? 
A: Commercial properties consist of shops (retail), factories and warehouses (industrial), and office space (commercial). 
My experience shows that commercial real estate has – both historically and in recent times of economic turbulence – proven to be significantly riskier for investors than residential real estate.
 
Q: What’s the fundamental difference between the two types of investment? 
A: These are very different investment vehicles. Residential property is a high-growth, low-yield investment while commercial property is a higher yielding but low-growth investment.
The values of commercial properties are yield-driven rather than (owner-occupier) demand-driven in residential property and fluctuate over time related to yields available from other investments and the prevailing interest rates.
As most commercial rental increases are usually pegged to the rise in the CPI, your rent increases at around 2% or 3% each year, stifling your capital growth. Then when the economy falters and businesses languish, commercial property tends to be out of favour and drops in value. 
Q: If the total return is similar, why not go for the investment with the higher cashflow, in other words, commercial investments? 
A: The fundamental job of property investors is to build themselves a substantial asset base to one day create a “cash machine” to replace their personal exertion income. This is much easier to do with capital growth, which is not taxed, than with cashflow, which is taxed. 
Q: How else does commercial property investment differ from residential real estate investment? 
A: There are considerable differences between the two types of property which may make them a less safe option for beginner real estate investors: 
Commercial properties tend to yield a higher return than residential properties – usually between 7% and 10% net compared to residential properties which yield 4.5% to 5% gross (then subtract rates, taxes, insurance, etc). Professional investors require a higher rental return to make up for this type of property’s inferior capital growth and longer vacancy factors. 
With commercial properties, the tenants usually pay all the outgoings such as rates, taxes and insurance. 
Because your tenant conducts their business from your commercial property, they tend to look after it better by maintaining the property, including painting it, and most leases require the tenant restore the property to its original condition at the end of the lease.
 
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Leases for commercial properties tend to be for longer periods, often three to five years as opposed to the one-year lease you can get from a residential tenant. 
However, when vacancies occur in commercial properties they are often for considerably longer periods than the week or two you may have a residential property vacant. How often have you seen a shop in your local shopping centre vacant for months on end? And when you do find a tenant you often have to offer them an incentive such as a rent-free period or a fit-out to entice them to lease your property. 
Lenders will usually only lend up to 70% of the value of commercial properties and I don’t know of any mortgage insurers who will lend on commercial property. 
Interest rates for a loan on commercial properties are usually higher than for residential properties – sometimes around 1% higher. 
Investors need significantly more equity to purchase a commercial property. This is partly because a bigger deposit is required and also because a good commercial property usually costs significantly more than a house or apartment. Sure you could buy cheap shops or factories in secondary centres, but they will usually have secondary tenants who are likelier to go broke and leave you with a vacancy. 
The cycle for commercial properties is different to that for residential properties and is more dependent on the general economic factors than the residential market. 
The lease required for a commercial property is a much more complex and is often prepared by a lawyer. 
It’s easier for the average investor to pick a top performing residential investment. Most know what to look for in a residential property but few would know what a tenant looks for in a good commercial or industrial property unless they have conducted their own business from one. 
While I have a substantial commercial property portfolio, I wish I had moved into commercial property a little later in my investment life as this type of property is more suitable for investors who already have a substantial asset base and have transitioned to the cashflow stage of their lives. It also makes a great investment in your self-managed super fund if you have substantial equity in it.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
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Commercial property investment not for everyone

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Most Australians spend 40 years or more preparing themselves for retirement, yet over 95% of them fail, remaining dependent on the government for their main source of income. However, a small group of wealthy individuals reach financial freedom in a fraction of the time. 
I’ve found these wealthy investors have mastered seven skills that make it easier and faster for them to achieve financial prosperity. 
Let’s examine these master skills: 
1. Creating and controlling capital
The wealthy understand the importance of building a substantial asset base. Some do this by building a business while others grow a sizable share portfolio, but my preferred method is growing a multimillion-dollar property portfolio.
Smart investors know how to create and add value to their properties using techniques like renovations and development. They also add value through their expertise or through smart negotiations and buying well.
And it’s no coincidence that the wealthy control as big an asset base as they safely can by leveraging and borrowing against appreciating assets.
2. Transforming capital into passive residual income
Successful investors grow money trees and recognise that cashflow is the fruit. This means that once they have built a substantial asset base, they transition into the cashflow stage of their investment life by lowering their loan-to-value ratios and then borrowing against and living off their equity.
Savvy investors follow these four rules of capital:
<ol start="1">
<li>
They concentrate it – rather than diversifying, they focus their energy and efforts on their area of expertise. </li>
<li>
They don’t risk it –once they’ve built a substantial capital base the wealthy invest rather than speculate. They are prepared to forgo a “potential” future profit not to risk their current assets.</li>
<li>
They protect it – by owning their assets in the correct structures to safeguard their capital and by having financial buffers in place.</li>
<li>
They value it – professional investors don’t eat away their capital. Instead they convert their capital into cashflow and live of the fruits of their money tree.</li>
</ol>
3. They are financially fluent 
Smart investors recognise it’s not how much money they make that matters, it’s how hard their money works for them and how much they keep that counts. So they learn how the finance, tax and legal systems work and how they favour investors who treat their properties like a business. 
The wealthy understand the language of accounting and know how to read balance sheets and income statements, understand how to calculate the internal rate of return on their investments and how to assess their different investment options. 
4. They understand the importance of building a great team around them
Savvy investors know they can’t do it alone; so they recruit, direct and refine a team of finance, tax, legal and property professionals. They know that if they’re the smartest person in their team they’re in trouble.
As CEO of their property investment businesses, the wealthy don’t abdicate control of their money to others. Instead they set up systems to evaluate the performance of their investments and their advisers.
 
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5. They are decisive
Way back in the 1930s Napoleon Hill discovered that successful people had the habit of making swift and committed decisions. This principle, which is just as relevant today as it was almost a century ago, holds the key to determining the level of success you will achieve. Successful property investors are able to see the big picture and don’t seem to get caught up in detail. They assess the situation and take decisive action.
6. They understand the true importance of money
The wealthy recognise that to be truly prosperous, they need a lot more than money. Sure money is important in those areas of life where it is important (such as paying the bills), but it’s not at all useful in those areas where it is not important.
Wealthy people have much more than just money. They have the time to enjoy it; the relationships to share it with; the sense of purpose and passion with which to direct it. And they understand the importance of contribution to the community, which brings meaning to their lives.
On the other hand, I’ve found that most people who don’t have money spend so much time struggling to make money that they lose out on the quality of life they deserve. When you have enough money you can go about creating real wealth. 
7. They have the capacity for growth
Wealthy people are voracious leaners. They know the fastest way to wealth is through consistently investing in their personal development.
They read books, attend seminars and cultivate relationships with mentors who can advise and guide them. They also network with other positive wealth builders with whom they can brainstorm. It is no surprise that the more they grow, the more their wealth grows.
What about you?
When you are truly wealthy, when you have all the money that you need, what is your life going to be about – above and beyond the money?
Remember money is just a power that amplifies your ability to live your life to its real purpose. It’s no use just chasing money, so what is your vision for your life? What is your purpose? What are your values you will strive to live in accordance with?
It’s this focus on living consistent with your purpose and your values that will give you a balanced and fulfilling life.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
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Seven ways for property investors to reach financial freedom

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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