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It surprises me that some people are still suggesting Australians should invest in US real estate.
The US economy is still grim, as outlined in the <a href="https://business.financialpost.com/2012/07/09/11-ugly-facts-about-the-u-s-economy-david-rosenberg/">Financial Post</a> by Gluskin-Sheff chief economist David Rosenberg in a recent article.
Sure, the US economy is improving and jobs are being created, but the tepid 80,000 jobs the economy added (10,000 below already low expectations) slammed stock markets and sent the price of oil into a nosedive.
But the real devil, as they say, is in the details, and there was no shortage of disturbing details in this report.
Here’s Rosenberg’s list of “cracks in the jobs market”:
1. The jobless rate has topped 8% for 41 consecutive months, a post-World War record.
2. Only half of the jobs lost in the recession have been regained. Normally at this stage of the cycle – even in the most acute jobless recoveries – employment would now be back to all time highs, says Rosenberg.
3. More than one in four households have at least one member looking for a job – that’s another record.
4. 5.4 million Americans who are still looking for a job have been out of work for more than a year.
5. More than 8-million Americans are working part time because they can’t get a full-time job
6. Self-employment has risen 242,000 since March. “We are becoming a nation of freelancers and consultants in this era of corporate downsizing.”
7. More workers have signed up for federal disability benefits than new jobs have been created since the end of the recession in June 2009.
8.  The number of people who have vanished from the workforce altogether has surged 7.3 million over the past three years.
9. The current labour force participation rate of 63.8% is below the rate at the end of the recession – a record low for a post-recession recovery.
10. Household income is 5.3% lower now than it was when this “alleged” recovery began.
11. Food stamps are surging to record levels, up 32% since 2009.
Rosenberg’s conclusion?
“The labour market is broken and needs fixing; clarity over the fiscal policy outlook, a coherent energy policy and tax reform that provides incentives to save and invest as opposed to conspicuous consumption would be a good start.”
I’ve given my thoughts on investing in US property in previous blogs which you can <a href="https://propertyupdate.com.au/category/property-investment/property-investment-usa/">read here</a>.
Steer clear.
Source: <a href="https://business.financialpost.com/2012/07/09/11-ugly-facts-about-the-u-s-economy-david-rosenberg/">Financial Post</a>.
Michael Yardney is the director of <a rel="nofollow" href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a rel="nofollow" href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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Why US property investment is a no-no – 11 ugly facts about the US economy: Michael Yardney

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I hate being stuck in traffic and, if you’re like most Australians, so do you.
So if you’re a Sydneysider it’s unlikely to surprise you that a recent NSW Department of Transport survey reports that except for New York City, Sydney now has the <a href="https://www.bts.nsw.gov.au/ArticleDocuments/112/BR2012_04_transport_facts.pdf.aspx">longest reported commute time in the world</a>.
In fact, the average Sydney commuter spends nearly an hour longer travelling to work each week than the average Los Angeles commuter, as Sydney's average work trip travel time have blown out to 34.3 minutes one-way.
Even longer commutes ahead 
And as if that isn’t bad enough, Sydney's densification planning policies seem likely to lengthen commute times even more in the future.
It is therefore not surprising that more and more people are swapping their backyards for balconies and choosing to live in Sydney’s inner suburbs, with demand coming not only from young people but families wanting to live closer to the city.
The result is a shortage of established apartments that is pushing up property values and rents.
Residex <a href="https://www.residex.com.au">www.residex.com.au</a> reports that Sydney apartment rents increased almost 10% over the last 12 months and, in certain areas, such as pockets of the inner-west, the rate of increase has been significantly higher than this.
The Sydney market is segmented
 While the overall Sydney property market has been reported as flat over the last few years, it is in fact segmented. Apartments in the inner west and eastern suburbs have performed strongly, with double-digit growth not uncommon in a number of suburbs.
On the other hand, at the upper end of the market, luxury house prices have faltered, as have home values in the outer suburbs.
However, with the undersupply of good near-city apartments pushing up rentals, first home buyers are coming back to the market. At the same time, savvy property investors are getting ready for the next stage of the cycle.
The good news is the Sydney property market is moving out of the doldrums, but it doesn’t mean the next boom is upon us.
Typically, the next stage of the property cycle is the stabilisation phase. Buyers come back and slowly more sellers, including some who couldn’t move their properties over the last few years, are going to put their properties back on the market and we’ll have a period of unspectacular growth.
What smart property investors are doing 
Over the next year strategic property investors are going to set themselves up for the next Sydney property boom by buying the right type of property at the right price.
They will have learnt from the last few years and rather than speculating, they will buy a property with an element of scarcity that will be in continual strong demand by owner occupiers (because these are the ones who push up property values) and tenants.
Others who sit on the sidelines will look back in a few years time and say, “I wish I’d bought in 2012”.
I’ll be sharing my thoughts on the Sydney property markets at my upcoming National Property Market and Economic Updates around Australia. <a href="https://propertymarketupdate.com.au/">Click here</a> for further details.
 
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What will Sydney's long and lengthening commute times do to property? 

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Legendary American engineer Dr Simon Ramo wrote a book in 1970 about, of all things, tennis, titled Extraordinary Tennis for the Ordinary Player. 
The engineer in him noticed that the game of tennis involves two games – one is played at the professional level and the other is played at the weekend warrior level. 
Now, that's not particularly brilliant, but the conclusion he reached from his observation is. 
After extensive analysis, Ramo concluded that professional tennis players win points while amateur players lose points. 
In other words, for professionals, most points are won by the pro hitting a spectacular winning shot that is just out of reach of their opponent (a "winner's game"), while amateurs typically lose points by making an unforced error (a "loser's game"). 
In his blog, financial planner <a href="https://www.macleanfinancialgroup.com/new/MacLeanFinancialGroup/" target="_blank">Hawley MacLean explains</a> that noted investment analyst Charles Ellis, writing in a famous Financial Analysts Journal article from 1975, extended Ramo's tennis concept to the investment business. 
Ellis said investing had flipped from being a winner's game to a loser's game. 
He meant that to succeed at investing you need to focus on making fewer avoidable errors as opposed to making spectacular winning investments. 
Now making fewer avoidable errors is a worthy goal at any time, but it is critical in today’s turbulent markets.
The best way to explain this is that during property booms it’s easy to look smart – rising values cover up many mistakes. 
But now that our markets have been flat for some time, many investors who didn’t have a proven strategy are floundering and some have to sell their investments because, as they put it: “Property investing doesn’t work any more.”
 
That’s just confirmation of Warren Buffet’s famous saying: “When the tide is out you can see who is swimming naked.” 
Meanwhile, at the same stage of the cycle, those more strategic investors who understand the importance of correct timing, proper asset selection and smart financing using financial buffers to get through the lean years are still heading towards financial independence through smart property investing. 
These successful investors are not trying to get rich quick. Instead, they focus on making fewer avoidable errors by using proven, trusted property investment systems.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
For more advice on investing in property following times ot turmoil,<a target="_blank" href="http://propertyobserver.com.au/ebooks/investing-in-property-in-times-of-turmoil-free-ebook"> download our free eBook.</a>
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What tennis can teach us about successful property investing: Switch from a loser’s game to a winner’s game

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Now that we’re at the stage of the property cycle where capital growth is lower, and it’s likely to remain that way for some time, more investors are asking: “what’s the right investment strategy?” 
Recently Gail Kelly, CEO of Westpac, warned that Australia is unlikely to ever again see the type of housing boom that sparked a massive rise in personal wealth in the past decade. 
 
At around the same time Reserve Bank of Australia governor Glenn Stevens said the RBA was not trying to “engineer a return to a housing price boom” by lowering interest rates.
So what is an investor meant to do? Is it time to consider cashflow-positive properties? 
How property investors make their money
Firstly it’s important to understand property investors make their money in four ways:
<ol start="1">
<li>
Capital growth – the increase in value of their properties</li>
<li>
Rental returns – which provide cashflow</li>
<li>
Tax benefits – such as depreciation allowances and negative gearing </li>
<li>
Forced appreciation – this is where an investor “manufactures” capital growth through renovations or development. </li>
</ol>
Smart investors benefit from a combination of all of these.
Can I still get capital growth? Recently <a href="https://www.ampcapital.com.au/" target="_blank">AMP Capital</a> reported that since the 1920s, real estate has returned 11.1% p.a. after allowing for capital growth and rents. That’s a pretty impressive long-term track record  
While there is little doubt that average capital growth will be lower for the next few years, there will always be some pockets that outperform the averages. And within those areas there will be some properties that grow strongly in value while others perform poorly. That’s how averages work.
What about positive cashflow? A positive cashflow property is one where the rental income received covers all of the property’s expenses (including interest), leaving money in your pocket each month. 
In general properties with higher capital growth have lower rental returns. This means you can’t find cashflow-positive properties in the higher growth, better locations of our capital cities. You must look to regional areas or mining towns where buyers require a higher rental yield (cashflow) to make up for the lack of capital growth.
Of course buyers with lower loan-to-value ratios, those who put more money in the deal may also experience positive gearing. The problem is they miss out on the benefit of leverage.
 
<hr class="system-pagebreak">
 
Which strategy is better – capital growth or positive cashflow? There’s no simple answer. Clearly if both strategies exist there is a place for both of them.   
I see more beginning investors go for cashflow-positive properties.
On the other hand I tend to see more successful investors, those who have built a substantial asset base, grow their portfolio through leveraging off the capital growth of their investments.
Obviously property investment should be part of a wealth creation strategy, not just a purchase in isolation. So if you are considering property investment to build an asset base to one day replace the salary from your day job, then I would invest for capital growth every time.
The few dollars a week your positive cashflow properties might bring in immediately is not really going to make much difference to your lifestyle or your ability to acquire and service other, more desirable properties for your portfolio.
The problem is that you can’t save your way to wealth – especially on the measly after-tax positive cashflow you can get in today’s property market.
And when interest rates increase – as they will again some day – a property that is cashflow positive today may be cashflow negative tomorrow.
Think about it: Real wealth is not derived from income. It is achieved through long-term capital appreciation and the ability to refinance to buy further properties.
If you seek a short-term fix with cashflow-positive properties, you’ll struggle to grow a future cash machine from your property investments. It’s as simple as that.
But here’s the trick: You can’t turn a cashflow-positive property into a high-growth property because of its geographical location.
But you can achieve both high returns (cashflow) and capital growth by renovating or developing high-growth properties. This will bring you a higher rent and extra depreciation allowances, which convert high growth, relatively low cashflow properties into high-growth, strong cashflow properties.
This means you can get the best of both worlds.
So how do you cope with negative cashflow?
Of course investing in negatively geared, high-growth property means you have to cover the cashflow shortfall each month.
One way of doing this is to set up the correct loan structure. A line of credit could be used to supplement the rental to pay the interest on the investment loan and property expenses.  This buys an investor time. 
The line of credit is often set up to cover the shortfall for three or more years until the property’s value grows sufficiently to refinance the loan out of the extra equity. 
To use this investment strategy, correct asset selection is critical because to make it worthwhile you need the property’s value to increase significantly more than your outstanding loan balance increases. 
This means you need to be investing in high-quality assets so that you can maximise the chances of enjoying strong capital growth. 
This strategy is not without risks… The four main risks are:
<ol start="1">
<li>
Poor capital growth – that’s why correct asset selection is so important.</li>
<li>
Interest rate increases – which can be addressed by fixing interest rates on some or all of your debt.</li>
<li>
Poor rental growth – which highlights the importance of owning properties that will be in continuous strong demand by a wide demographic of tenants.</li>
<li>
Lack of financial discipline – never use your financial buffers for uses other than covering your property related expenses. </li>
</ol>
I can understand why beginning investors would be keen to buy a property with positive cashflow. They tend to be cheaper, so it is easier to purchase and support this type of property. While they may give you short-term income, these properties will never allow you to accumulate the equity necessary to become truly wealthy. 
And while the rent may seem relatively high initially, it is the ongoing capital growth of your property that will underpin its long-term rental income, which means that if you buy in low capital growth areas, your rents won’t rise over the years as much as rents in high-growth areas. 
This means the value of capital gains over the long term will blow comparable cashflow returns out of the water. 
Remember as a property investor your focus should be on safely building your asset base so you can eventually develop the passive income from your assets that will allow you to enjoy the financial freedom you desire.
 Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
For Michael Yardney's take on investing in property given current economic tumoil, watch the video below
{qtube vid:=gNeDx9IkM0I&amp;list=PLC827F0952BF6BF47}
 
 
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You don’t have to choose between positive cashflow and capital growth in property

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The Block was once again a hugely popular TV show. Three gruelling months of sleeplessness and renovations paid off handsomely for the four couples who, on the face of it, sold their terraces for substantial profits.
This will no doubt encourage a new generation of property investors to turn their hands to renovation.
But did they really make a commercial profit? The simple answer is no.
If you ran the renovations of The Block as a business and added stamp duty, buying and selling costs, interest for the holding period and payments for labour, there was no commercial profit in doing these renovations. 
But then we know that reality TV is not “real life” don’t we?
The production company behind The Block purchased the four unrenovated terraces in South Melbourne for $3.8 million and would have then spent another $209,000 on stamp duty.
The contestant couples each had a budget of $125,000 to spend made up from cash and vouchers. Add to that the cost of labour, agents’ commission, selling cost and interest on the holding costs during the renovations and over the next few months until settlement and that puts the auction result in a different light.
Are renovations a good strategy? Now don’t get me wrong – I think renos are a great property investment strategy in our current flat real estate markets. They increase the value of your property, make it more appealing to tenants, increase the rents and manufacture depreciation allowances.
But my strategy is to buy, renovate, refinance and hold for the long term. It’s just too hard to make money out of a “buy, renovate and sell” strategy.
So where do you start? And how do you ensure you don't end up over-capitalising, as many investors do?
Here are four rules to follow to make the most of a "renovate-for-profit" property investment:
1) Determine the "right" purchase price. Buying a renovator's delight at the right price is crucial in ensuring you are going to make some money when you finish your refurbishments. If you pay too much for your property at the outset, you will be chasing your tail trying to make the refurbishment profitable.
Start by determining what the end value of the property will be when you have completed all planned works. You can do this by researching the value of similarly renovated properties in your area.
Once you have the end value in mind, draw up an initial project budget to calculate your approximate renovation expenses. You should also consider getting a building and pest inspection on the property so you know exactly what you're getting yourself into, to help plan your budget accordingly.
Now, subtract all your costs from the end value, allow for a profit margin and this will give you a fair idea of how much you can afford to pay for your property in order to make your investment financially viable.
2) Be realistic with your budget The fact is, the job will usually cost more than you expect and take longer than you planned. With today's shortage of good labour, it's hard to get tradespeople to quote on renovation jobs. We've all heard stories of how the budget blew out and the project took weeks longer than expected.
It's never as easy as they make it look on TV. And, funnily enough, the tradespeople never look as good as they do on the shows either. I am yet to encounter a tradesperson wearing neatly pressed overalls!
3) Consider the type of tenant you wish to attract Think about the type of tenants you want to lease your property to and renovate with them in mind. Talk to your property manager to determine the predominant demographic seeking accommodation in the area and plan your renovations accordingly.
4) Don't get personal! Another mistake I see investors make is that they become too personal about the renovation project they are undertaking. Remember, you won’t be living in the place; so putting your own personality into the property is not necessarily a good idea.
If you keep things simple and the decor neutral, to simply make the property liveable and functional, you can't go wrong.
Property renovating is not a licence to print money. It's hard work, if you intend to do it yourself, but it's a great way to increase your rental returns and manufacture capital growth in our flat property markets.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
Property Observer readers<a style="font-size: 14px; text-align: left;" href="http://propertyobserver.com.au/ebooks/free-ebook-lessons-from-the-block-and-other-property-reality-television-shows." target="_blank"> can download a free eBook on renovation and reality television</a>. 
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Four renovating lessons from The Block 2012: Michael Yardney

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If you’ve been following my blogs you’ll know that I feel confident about the long-term prospects for our property markets. These prospects will be supported by the dual pillars of strong population growth and strong economy powered by a resources boom. 
With the recent <a href="https://www.abs.gov.au/census" target="_blank">release of census data</a> everyone’s talking about what’s happening to our population. 
The fact is that despite strong population growth, we still need to “import” more people to fill the demand for skilled labour. And over the next 15 years, we’ll need to replace close to five million baby boomers that will retire and leave the workforce.
So it’s good news that Australia has emerged as the second most desired location for people to live and work, according to a recent report by recruitment firm Hydrogen Group, titled Global Professionals on the Move 2012.
The report says Australia’s lifestyle and standard of living made it so popular, as well as the career opportunities presented by the mining boom.
Ivan Jackson, the managing director for Hydrogen Group in Australia, was reported in the Herald Sun as saying that there were 404 natural resources projects taking place in Australia worth about $450 billion in total.
“A lack of relevant skilled professionals is one of the main barriers to bringing these projects to fruition,”  Jackson said in the report. “Many oil and gas projects are reaching a point where they will suddenly need several thousand extra workers.
“In the next two to three years recruitment to Australia will be at its highest ever.”
Where else is popular?
The survey, which was conducted by ESCP Europe late last year, found that the USA was the most popular destination to work. This was followed by:
<ul>
<li>· Australia, which tied second with the UK</li>
<li>· Singapore </li>
<li>· Canada </li>
<li>· Switzerland </li>
<li>· Hong Kong and </li>
<li>France
</li>
</ul>
What’s happening to Australia’s population?
Australia’s population is estimated to be about 22,500,000. You can get an updated figure by clicking <a href="https://www.abs.gov.au/ausstats/abs%40.nsf/94713ad445ff1425ca25682000192af2/1647509ef7e25faaca2568a900154b63?OpenDocument" target="_blank">the Australian Bureau of Statistics population clock.</a> 
Even though population growth has eased since peaking back in 2008, when over 380,000 new arrivals called Australia home, Australia’s population increased by around 1.4% last year, which means we’re still growing faster than most developed nations. And a large part of this is because of strong immigration. 
Population and, more importantly, the change in population, are intrinsically linked with housing demand. To put it simply, more people means demand for more homes. And a prosperous nation means we can afford to buy or rent these homes. 
This is all great news for property investors with a long-term perspective.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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Australia’s increasing population great news for property investors

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Let's face it, we’re living through a period of great economic volatility, and a lot of what we hear from the media lately is scary stuff. 
Each day seems to bring more potential doom and gloom – another report of a company failure, more jobs lost, a schizophrenic global economy and concern about an impending recession around the world. 
This continuing conveyer belt of bad news has a way of instilling fear into us, causing many of us to withdraw from the markets and become obsessed with the worst-case scenario. 
Some doomsayers are suggesting we should sell up all our properties before the almighty crash arrives here, just like it has in the US and in parts of Europe, while other commentators suggest our current markets present some great opportunities. 
So is it a good time to buy properties or is it time to sell up everything? 
I wouldn’t blame you for feeling confused – it's difficult to sort through all the information and statistics bombarding us every day.
Sure, the real estate markets have slowed down and property values have fallen over the last year or two.
But while the doomsday speculators would like us to believe this is the end of the world as we know it, the truth is there are always peaks and troughs in property. It's just the way the market works.
Since I started investing almost 40 years ago, I’ve lived through nine property cycles, and in every decade there has been a three- or four-year period when the property markets have been flat or falling. Yet at the end of each decade the value of well located properties have doubled.
Why property values in Australia will increase in the long term
And there is no reason that this won’t continue to be the case for capital city properties around Australia.
The long-term value of property markets will be buoyed up by:
<ul>
<li>A growing population as we import more people to provide the required skilled labourers as well as replacing  the retiring baby boomers; and</li>
<li>our nation becomes wealthier driven by the mother of all property booms.</li>
</ul>
Why we won’t have a property crash: And we won’t have a property crash here like has happened in overseas markets because a number of factors are underpinning our property markets including:
<ul>
<li>
A healthy economy that has bucked the global trend as it grows strongly and that has become the envy of most developed nations. But there is still room for the government to stimulate growth further if required. (Hopefully the government has learned for last time and will think of something more sensible than pink bats) 
</li>
<li>Even though our interest rates are relatively low in the hope of stimulating the economy, the RBA has the ability to drop them further if required to further stimulate the economy. Compare this to overseas, where interest rates in the USA, Britain, Japan and Europe have been so close to zero that there is no scope to stimulate the economy with low rates. 
</li>
<li>Our low unemployment rate means that the average Australian’s job is secure. While job security fears appear to be playing on consumer confidence, data released by the Australian Bureau of Statistics showed the number of people in work rose by 39,800 in May, blowing out of the water some commentators expectations rising unemployment. Of course the job losses in sectors undergoing structural change are a concern, but we do need to focus on the big picture and remember that unemployment is close to historical lows. 
</li>
<li>We have a sound banking system and relatively few people in mortgage distress. 
</li>
<li>Our balance sheets are in good shape. Our government, our banks, many companies and most Australians have taken a conservative view since the GFC and paid down debt, including company debt, home mortgages and credit card debt.  In fact, at much of the outstanding household debt is in the hands of the wealthier people, those who can afford it. 
</li>
<li>We’re in the early stages of the mother of all resources booms. Sure China has slowed down a little recently, but there’s hundreds of billions of dollars worth of infrastructure spending already committed to Australia over the next few years and over the next two decades, the growth in China, India and to a lesser extent other developing Asian countries will underpin our resources sector.</li>
</ul>
 
<hr class="system-pagebreak">
 
Is the cup half empty or half full?
It’s important not to trivialise the possible consequences of the world’s problems, but equally it’s important to remember that every cycle brings downturns and times of opportunity.
In my experience, difficult economic times offer outstanding opportunities for those who are prepared.
You see, wealth is not necessarily lost during times of financial crisis. It is transferred from the financially uneducated to the financially fluent.
We have had global financial downturns before and we’ll have them again, because economic markets move in cycles. While the specifics may change, the patterns are similar.
The losers in financial crises will tend to be those who are over leveraged and don’t have cashflow buffers, those who speculate and investors who overreact and make long-term investment decisions based on short-term emotional factors.
On the other hand, the winners will be those cashed-up investors who have the long-term perspective to spot opportunities. 
The big lesson is: “This too shall pass.” Unfortunately the current world economic problems will not go away quickly, and we are entering new era in the financial markets. But this is not a time to panic or make rash emotional decisions. It is a time to learn from history. 
Take a look at the graph below from <a href="https://www.rpdata.com.au/">RP Data</a> , which highlight the upward growth of property over the long term. As you can clearly see, there have been long periods when the market has been flat before, but the general trend in property prices is an upward one.
<img src="/images/stories/2012/06/yardjune22.png">
In all capital cities growth has averaged around 8%, compounding each year over the last 25 years. 
But these are just averages. The better your property selection – where you buy, what you buy, how well you negotiate and how you finance your property investment – the better your returns could be. 
Look what happened over the last decade. Fact is about 10 years ago we were paying around $390,000 for the average house in Sydney, the median house price in Melbourne was just over $300,000 and in Brisbane the median house price was $171,000. It was $172,000 in Perth; $213,000 in Canberra,$189,000 in Darwin; $156,000 in Adelaide and $195,000 in Hobart.
Go back another 10 years to 1992 and we were paying around $182,000 for the average house in Sydney, the median house price in Melbourne was just over $138,000 and in Brisbane the median house price was $116,000. It was $172,000 in Perth; $96,000 in Canberra, $117,000 in Darwin; $108,000 in Adelaide and $91,000 in Hobart.
Fast forward 10 years. If history repeats itself, as it surely will, while the majority of Australians will sit on the sidelines waiting for things to work themselves out, a group of successful investors will be looking for and buying investment opportunities created by the changes. 
Then, when we look back in 10 years’ time we’ll probably remember a decade of economic turmoil, but, as always, we’ll wish we had bought more properties when they cost about 50% less when they were  “on sale” 10 years earlier.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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The current economic turmoil presents opportunities for property investors

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Here’s some good news for Queensland home buyers and a warning of some traps to avoid.
In one of his early moves as the new Premier of Queensland, Campbell Newman reinstated state stamp duty concessions for principal places of residence (your home).
Cabinet formally approved the reinstatement of the principal place of residence stamp duty concession from July 1, 2012, which will save Queenslanders up to $7,000 when they purchase an average family home.
The concession was dropped in June 2011 by then Queensland Treasurer Andrew Fraser in a bid to raise an estimated $161 million for the state government.
While this is good news for home buyers in Queensland, as I said, there are some traps to avoid.
Firstly, what is stamp duty? 
Stamp duty is a tax that is levied by the state, not the federal government, on certain documents.
Historically, this included the majority of legal documents such as cheques, receipts, commissions, marriage licences and land transactions.
I remember the old days when a physical stamp (a revenue stamp) had to be attached to the document to denote that stamp duty had been paid before the document was legally effective.
Today, the tax no longer requires an actual stamp to be placed on the document, but obviously the tax must still be paid.
Interestingly, this type of duty was originally introduced in the Netherlands way back in 1624 and subsequently spread to many other countries.
So what is this new concession?
With the reinstatement of the home concession, contracts to purchase a home in Queensland entered into on or after July 1, 2012 by home buyers will be eligible for the transfer duty home concession if they meet the concession conditions. 
The home no longer has to be the first home of the home buyer, and can be a new house or one that has been previously occupied. In other words – it’s not a first-home owner’s grant and it’s not a new home owner’s grant.
But the home buyers will need to prove that they are individuals and not trustees, and the residence must be occupied as the principal place of residence within one year of the transfer and the occupation as principal place of residence must continue for at least one year from the time it commences.
Where the concession applies, a concessional transfer duty rate of $1 for each $100 or part of $100 will apply to the first $350,000 of the consideration or value of the home. Duty at the general rates will apply to any remaining part of the consideration. 
Putting this into numbers – the average home buyer will save $7,000 and if you think about it you’d probably have to earn $10,000 or more before tax to have that $7,000, so it’s a substantial savings for the average Queensland homebuyer. 
Here are the warnings…
 
If you plan to buy a property this month don’t make false arrangements in the hope of avoiding stamp duty – the government will be on the look out and is likely to scrutinise all home sale contracts carefully over the next few months. 
There are three very important circumstances in which the old duty will still apply: 1.    If the transfer or agreement replaces a transfer, or an agreement for the transfer, that included the land and was made before July 1, 2012; or 2.    If the transferee had an option to purchase the land, or the transferor had an option to require the transferee to purchase the land, granted before July 1, 2012 and exercised on or after July 1, 2012; or 3.    If another arrangement was made before July 1, 2012 the sole purpose or main purpose of which was to defer the making of the transfer or agreement until July 1, 2012 or later so the concession for transfer duty under the relevant provisions, as in force on or after July 1, 2012, would apply in relation to the dutiable transaction.
Buyers should be aware that these provisions are trying to “catch” anyone who comes to an agreement in principle with the seller but tries to delay signing a formal contract until July 1, 2012. 
It is likely that any contracts dated July 1 or shortly after that may be scrutinised and “show cause” letters could be sent to the buyers seeking proof that the decision to purchase was actually made on that day and not prior to it. 
I wonder if the last few months leading up to June will be quieter ones for home sales in Queensland.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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Good news for Queensland home buyers, but beware of stamp duty traps: Michael Yardney

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The rich are getting poorer, according to the recently released BRW Rich 200 list. 
The fact is that more than half (104) had a decrease in wealth over the past 12 months, even though they are far from poor.
This year, Gina Rinehart was the richest person in Australia and became the richest woman in the world. The 58-year-old mining magnate's wealth has ballooned by $18.87 billion in the past year to $29.17 billion. That equates to more than $1 million for every half-an-hour and almost $52 million a day.
By the way, Rinehart’s wealth is approximately equal to the wealth of the bottom half of the list.
What can we learn from Australia's wealthiest individuals?
Firstly, despite all the attention the mining billionaires have received, property still remains the single biggest source of wealth, with 55 real estate entrepreneurs in the top 200 list. Many of those who didn't make their fortunes in property have stored their wealth by investing in property.
This should come as no surprise. Looking back over the years, no matter how the Australian economy changes, the Rich 200 has always been dominated by property entrepreneurs.
Remember, there's nothing wrong with seeing what other successful people do and applying those principles to your own life. If so many extraordinarily wealthy people have used real estate profitably, it stands to reason that there's money to be made in this sector.
Here are some other lessons I learned by reading the various entrepreneurs' stories.
Anyone can become rich in Australia
While 29 of those on the list inherited some of their fortune, most were self-made successes, some coming from working-class backgrounds.
Attending a private school and an elite education is clearly not a prerequisite to joining Australia’s wealthy. While some forged important networks at school, many went to public schools and others didn’t even finish high school. In fact, less than half have tertiary qualifications.
And, of course, the richest person in Australia is a woman. This year there are 15 other women on the Rich 200 List. 
The markets move in cycles
The stock market is down, commercial property markets are down and high-end residential property values have fallen. This caused the average wealth of those on the list (other than Rinehart) to fall 8.6%. 
However, in the past, many successful investors took advantage of the opportunities to buy assets when they were on special. So it will be interesting to see the results next year and how these countercyclical investors fair.
Warren Buffett’s famous quote sums up the lesson in this: "Be fearful when others are greedy, and be greedy when others are fearful."
 
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Here are some quick takeaway points to consider:
Make your millions and then reinvest it – don't spend it. This is really just using the power of compounding to grow your asset base before you start spending up big.
Take risks early on, but not once you are established. While many entrepreneurs took big risks to get their enterprises going, successful investors then preserved their wealth by cautiously investing rather than taking further risks.
Have one good idea and repeat it. One core trait that successful entrepreneurs share is the ability to take a good idea and repeat it over and over again. Look through the list and you’ll see so many entrepreneurs stick to the same concept for years and just expand in different locations.
Pick the trends. This is different to picking fads, which are transient.
Go for growth. Sure, cashflow is important but to become really rich you need a large asset base. While the average Australian tries to increase their cashflow, the wealthy are obsessed with building their asset base. Much the same as those on the BRW Rich 200 list who concentrate on building their balance sheets even more than they do on their profit and loss accounts.
Surround yourself with a good team. As I've often said – if you are the smartest person in your team, you are in trouble.
Take action. All the people who made it onto this year's BRW Rich 200 list started with a dream and then took action.
You’re never too young and you’re never too old. The youngest member of the BRW Rich 200 is aged 36 and has an estimated wealth of $915 million, which is even more than the oldest member, who at the age of 92 has accumulated $360 million.
And if all else fails: Try digging some dirt, you may find some valuable minerals.
What have you learned from Australia's richest people? What can you do differently to become a successful property investor and get ahead of the pack?
Please leave your comments below.
 Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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The BRW Rich List proves that property is still a path to wealth

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It is no secret that property markets – in fact, all economic markets – are driven by fear and greed.

During property booms greed is the dominant driver, but things have changed and now it's all about fear.
Fear of the world’s economic woes spreading to Australia. Fear of taking on more debt. Fear of investing because the property markets might collapse.
Fair enough. After all, any smart investor is going to opt for safety during a downturn. Right?
Actually, no. The opposite is true.
Most of Australia’s wealthiest property tycoons have made their fortunes by investing counter-cyclically, when everyone else saw doom and gloom and thought they were crazy to invest.
Why would anyone in their right mind follow such a principle?
Because, when you step back from the immediate, history shows us that the countercyclical approach always delivers the best results. It is, after all, the equivalent of buying at the bottom of a market cycle, isn't it?
But what is clear to me is the huge gap between two kinds of investors.
On the one hand you have the lambs; on the other, the lions.
The difference?
Lambs or sheep follow each other. They flock together. They follow trends. They are only comfortable with what is familiar. They seek safety and security in numbers.
And when it comes to property they are easily misled.
Why?  Because they are easily impressed by the promise of quick gains, glossy brochures and advertising hype. They invest emotionally and this always has pitfalls.
Lions are different and, like their namesake, they are rarer beasts.
They don’t follow trends. They are independent thinkers that make decisions based on cold, hard facts, not herd-like subjectivity. They can stay calm while others panic. They are ready to look at numbers and rational arguments and make investment decisions based on these.
So what type of investor are you – a lion or a lamb?
Depending on what type of investor you are, or decide to be, the next year or two will either be a time of amazing opportunity or a period of fear and missed chances.
Let me explain.
We've seen downturns and recessions before and we've heard the various pundits telling us all how this time it's different and the world will never be the same again.
What I’ve come to realise is that when enough people start to talk about 'paradigm shifts', such as certain events have now made basic economic patterns and cycles meaningless, you can be sure we're soon headed for an upturn, or a crash. It works both ways!
These doomsayers – who claim to have seen it all coming and to know what's coming next – just create fear. And this fear feeds on itself as the headlines sometimes seem to support their arguments.
During the past property boom – when the driver was, of course, greed and banks lent money freely and often without requiring proof of serviceability – more and more people shouted about how the traditional rules and models of property no longer applied and were “old-thinking”. Yes, greed also feeds on itself.
But right now the driver is fear. And fear is blinding the lamb investors, which creates opportunities for the lions.
If the “end of the world as we know it” merchants are wrong – and they always are – then your decision to be bold when all around you are fearful, and to invest when everyone else thinks it's crazy, will prove to be the kind of insight that truly great investors apply.
Buy at or near the bottom when others say you're mad to buy.
But, of course, you don't buy just anything. Far from it. You need to buy selectively.
You will need to see beyond fads and fashions, analyse long-term potential and have the insight to see the intrinsic value of assets and act accordingly.
I believe that window of opportunity is now open. But I’m not sure for how long, because things are panning out in a fairly predictable way.
The economy is going to recover, interest rates will increase and inflation will return.
More people will start buying or upgrading their homes and investors who have parked their money in the safety of bank deposits will start looking for a new safe haven for their funds. One that is a hedge against inflation. Many will turn to the security of residential property and then the markets will begin to lift.
And when that happens, the sheep will wake up and flock back to invest.
So, the opportunity is now!
The challenge is to be a lion investor when others behave like scared lambs.
I don't pretend it's easy. To do this, you require the long-term focus to buy well located properties with an element of scarcity, in areas that have outperformed the long-term averages.
I believe that for cashed up investors with a secure job, now is a great opportunity. Now is the time to step away from the flock of investors who tend to be emotion-driven speculators pulled along by the dominant mood of the market – fear or greed.
Simple, really – but not so easy to do!
Mark Twain wrote: “Whenever you find you are on the side of the majority, it is time to pause and reflect.”
Now, there is a man worth listening to!
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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Be a lion, not a lamb, when investing in property

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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

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

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

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

Michael Yardney

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