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According to the <a href="https://www.ato.gov.au/About-ATO/Research-and-statistics/In-detail/Taxation-statistics/Taxation-statistics-2017-18/?anchor=Individuals#Table8">Australian Taxation Office</a> (ATO), figures released for the 2017-18 tax year showed 71% of property investors in Australia own just one property while .09% (or 20,756 Australians) own six properties or more properties. 

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Why is it that 1.5 million people are financially savvy enough to appreciate that investing in property is a great way to build wealth, but a fraction of those people purchase additional properties to build a meaningful portfolio? 

When you are working to build a financially sound portfolio, there are four main pitfalls that you need to look out for. 

These include:

<ul>
<li>Falling in love with a property</li>
	<li>Trading property </li>
	<li>Negative gearing</li>
	<li>Cross securitisation </li>
</ul>
Falling in love with a property 

When most people consider buying an <a href="/expert-insights/buying/resetting-your-finances-during-covid-19-a-financial-coachs-guide">investment property</a>, they view the property and make a decision based on whether they love the property and personally would like to live in it or not. 

This is the scenario that sales agents want to see. Ideally they will be looking for two or three prospective buyers to fall in love with the same property and push up the price. 

Emotion is why auctions work so well – people get carried away and keep on bidding even when the price surpasses their budget.  

Falling in love with a property means you will almost certainly pay more than you should, and then you will struggle to let go when the time is right to sell – both can be costly. 

Keep in mind that the investment properties you buy should make you money for the long term. It’s all about the numbers and how it will help you reach your future goals.

Trading property 

Trading property can be a legitimate way to make money but it’s not always the best way to build wealth. 

Even if you sell your recently renovated property for a handsome profit, it’s not that different from the money you earn working your day job. 

In a job you need to pay tax before you ever see a cent of your wages. If you trade property, then the government is going to take its slice by way of capital gains tax before you see a cent. 

On top of that, you’ll have agent’s fees, legal fees, and possibly bank fees too. This means that your <a href="/guides/buying-right-investment-wise">profit is constantly</a> being eaten away by other interested parties keen to take their slice. 

As long as a property is positively geared or cash flow neutral I’d strongly suggest you hang on to it. Not only will you benefit from the capital growth over time but the property will start working for you by creating residual income through rent. 

Real wealth comes from the accumulation of assets, not trading assets.

Negative gearing

The idea of negative gearing is that you buy a property and then rent it out. However, if property values are rising, often it means that your rental income wouldn’t cover your mortgage payments, strata fees and other running costs. 

The result of this is that each month you would need to eat into your savings or divert funds from your day job so you can cover the shortfall. 

The story told by the banks and accountants was that as long as you are able to meet those additional cash flow needs for a few years, the rent would rise to meet those costs and you would be fine. 

Basically, your tenant would be paying off your mortgage and you would keep the appreciating asset and any additional income from the rent. This would mean you don’t pay any tax because your property is losing money.

Forget about the tax you might save – if the property is costing you money and eating into your income or salary then it’s keeping you in a job. It is not helping to liberate you from it.

If building wealth is creating constant stress then perhaps the price is too high and you need a better strategy. 

I would suggest doing thorough research and only buy properties that are cash flow neutral or positive. This way, the property pays for itself without any additional cash injection from you.  

Cross securitisation

Once you start building your property portfolio the biggest mistake you can make is cross securitisation – in other words, borrowing money from the same bank for all your properties. 

If one bank owns all your debt, they control you and that’s never a good position to be in. They can dictate how much borrowing is available to you and can also increase the interest rate if they want to. To tempt you in, they may offer an insignificant reduction (such as 0.2%) below the normal interest rate. 

Don’t bite the bait. Stay protected and maintain some control and flexibility!

The key is not to have all your properties with one lender so that if any of them change their lending rules you can more easily move to another lender that you already have a <a href="/guides/how-to-secure-a-mortgage-free-lifestyle-sooner">relationship with to refinance</a> quickly. 

The other benefit is that you will create a track record with a number of financial institutions which will make it easier to get finance from a new lender in the future.

There is little doubt that buying property can build wealth but it is just like any other investment vehicle – you really have to do your research.
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Nick Dante

Avoid these 4 pitfalls in property investment

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Many investors are wondering whether now is a good time to invest in an off-the-plan property, given we’re in the middle of a recession. While the current economic conditions can be daunting, they can also offer the savvy investor opportunities. 

Here’s what investors should consider about investing in an off-the-plan property in today’s climate. 

Interest rates are at record lows 

During the recession in the early 1990s, interest rates reached a staggering 17.5%. Compare that to today when interest rates are at a record low 0.25% and you can see that not all recessions are alike. 

Low interest rates make investing in property much more affordable, which is a great opportunity for investors. 

Take the example of a family with a household income of $150,000 per year and $80,000 saved for a property. They could purchase a <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">$550,000 investment property</a>. With an interest only rate of 3% and a 4.5% rental yield, this property is likely to cost around $40 per week before tax. 

However, when we consider the potential tax benefits and the total deductions, the after-tax cash flow of this property is likely to be positive, at almost $88 per week. To put this into perspective, two years ago when interest rates were around 4.5% for investment properties, that same property would have cost you $8 per week after tax. 

Given the cash rate is so low and will take a while to rise significantly, investors can have confidence that holding an investment property will remain affordable for some time. 

Property prices are unlikely to fall substantially

The current recession has been met with a record level of government spending to keep people employed and stimulate the economy. So far the government stimulus has managed to prevent those who are unemployed from being forced to sell their homes which could lead to an oversupply and steep price falls. 

In many markets across Australia, a lack of supply combined with low interest rates, has led to plenty of sales activity. As a result, we’re yet to see significant drops. According to CoreLogic, in June property prices nationally only fell by 0.7%. <a href="/new-apartments">Property prices actually grew</a> slightly in Darwin, Canberra and Hobart in the same period.

As government stimulus is gradually lifted we may see more supply hit the market and therefore dips in prices in the short to medium term which will give investors an opportunity for a discount. However, we’re not likely to see prices plunge. Low supply and low interest rates are likely to prevent steep falls. Investors may be able to secure a discount while retaining confidence that their investment will hold its value, especially over the long-term. 

There are many areas of undersupply

Many areas across the country still have an undersupply of properties. In some cases this has been further exacerbated by would-be sellers postponing their plans to sell due to the current conditions. 

An undersupply can have a big impact on how that market performs. A good example is the <a href="/new-apartments/zetland-nsw-2017">Zetland apartment market</a> compared to the Maroubra apartment market in Sydney. Over the last few years, Zetland has dealt with far higher levels of new property supply. This has significantly impacted the performance of that market by diluting potential growth. In contrast, the Maroubra apartment market has seen lower levels of supply brought to market resulting in the suburb outperforming Sydney’s average during the growth cycle and remaining stable throughout weakened market conditions.

But it’s important to remember not every market is experiencing an undersupply. The unique conditions caused by the pandemic have led to oversupply in some areas. Any areas that typically attract students, foreign investors or tourists may need to be avoided as they are likely to be experiencing an increase in supply, higher vacancy rates and decreases in rental prices. 

Investors should look to those areas with an undersupply, low vacancies and high demand from local purchasers. 

Owner occupier grade stock will continue to perform well

When selecting an off-the-plan investment, it’s important to be very selective and do your research. It’s best to look for developments targeted at owner occupiers. These will tend to be higher quality with better finishes, larger floor plans, and will be more attractive to tenants and any future purchasers. They are also less likely to be located in areas with an oversupply. 

Avoid developments solely geared towards investors. You don’t want to invest in an area where it is difficult to secure a tenant or where rental yields have been seriously impacted. 

Now is a good time to secure favourable terms

In the current environment, buyers are in a strong position to negotiate favourable terms in an off-the-plan contract. Work with the developer or your buyers agent to see if you can negotiate flexible terms which will reduce any risk to you such as the ability to exit your investment without penalty if your job situation changes in the future, a reduced deposit (for example 5% instead of 10%) or a 12-24 month rental guarantee. So long as these terms aren’t accompanied by an inflated selling price, the investor can really benefit.
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Is it wise to buy an off-the-plan investment property during a recession?

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Buying a home and securing a mortgage is a significant life milestone that will not just happen overnight. Banks need to see that you can be disciplined in your approach to saving money by demonstrating this through your lifestyle behaviours and habits.

To help get you on the right track, I have outlined four tips to prepare you for buying your first property. Every dollar you save will reduce the amount you need to borrow from a bank, with a deposit of 20% or more negating the need for lenders mortgage insurance.

Cull unnecessary expenses to reduce spending 

Reducing your outgoing funds is the first step to build the foundation for entering the property market. Consider cancelling subscriptions – such as streaming platforms and unused gym memberships – and try to negotiate cheaper rates on any recurring payments. For example, you could reduce your mobile plan, internet package or stop paying for entertainment subscriptions such as Spotify, Netflix or Stan. Often, first home buyers end up doing this after they already have a <a href="/guides/2019/06/17/urbans-first-home-buyer-guide">mortgage and are struggling to make repayments</a> – so why not get a head start by culling the expense early and boosting your savings account further? Pay off your debts and close lines of credit

When considering how much a bank will lend, they assess how much debt you currently have. Not only is the amount of debt currently owed investigated, but ‘available credit’ is also looked at. This means the limits on your credit cards and what you could hypothetically spend is taken into account. Aim to pay off (and close) all sources of debt to put yourself in favour with the banks. If you don’t like the idea of parting with your credit card, many mortgage agreements include one anyway so you may have it reinstated in the near future. Organise your bank accounts 

The money that you save by reducing your spending is best streamlined into a savings account. Consider setting up a separate <a href="/guides/how-to-secure-a-mortgage-free-lifestyle-sooner">high-interest savings</a> account through your bank of choice (or whichever has the best rates at the time). Ideally, this will be an account that is harder to access (such as a Term Deposit) to reduce the temptation of dipping into your hard-earned cash. Use the Money.com.au compound interest calculator to see how much interest you can earn on your deposit over the course of your savings term.

Save the same amount that equates to your potential mortgage repayments 

If you know how much you are aiming to borrow for your mortgage, demonstrate that you can meet your monthly repayments by saving the same amount now, if you live at home. By using an online principle and interest home loan calculator, you can see how much your regular repayment would be. To prove that you can afford to take out a home loan, try putting the amount into your savings account for 6-months. However, if you are already paying rent, demonstrate that you can pay your potential<a href="/guides/precautions-you-should-take-before-you-sign-up-for-a-fixed-rate-home-loan"> loan repayments</a> by saving the difference in amount. For instance, if your monthly loan repayments are expected to be $1500 and you currently pay $1000 a month in rent, set aside the $500 difference in your savings. Not only will your savings account grow, but it will give lenders the confidence to approve your loan knowing you can afford the repayments.
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4 simple steps to follow before you put down your deposit for your first home

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OPINION:

Australia is in prime position for a speedy economic recovery, as we’re still seen globally as a safe place to live and invest. The Government has thrown us a life raft, buoyed by a <a href="/expert-insights/buying/home-building-grant-to-benefit-affordable-areas-and-first-timers">$259 billion dollar economic support</a> package; some may say, we truly are the lucky country, prepped to float out of this crisis with the wind in our sails.

The above, however, is not enough to turn a U-shape turnaround into a V-shape recovery; good management is required too and unfortunately, this is currently lacking. Let’s take the analogy that Australia is like a cafe. Domestic business is the equivalent of friends and families dining to help you out, but longterm, this is not viable for any cafe.

What we really rely heavily on is the business of the rest of the world to survive and to thrive; international tourism, migration, education, investment. But for international business, we’re charging a 12.5% premium on market value and expecting the world to dine at our cafe. On top of that, we’re picking a fight with our biggest patron, China.

This sort of management doesn’t come without consequences and without a thriving business, money stops coming in and jobs will be lost. This is an analogy that many small businesses can relate to and currently, this is what is happening to the Australian property industry due to mismanagement of the Government.

With our strongest investment sectors likely to see a more drawn out recovery as a result of restrictions on international travel, the property investment and development sector is waiting in the wings, primed to get Australia back on its feet. The only issue is, it’s fraught with headwinds. So, what does the Government need to do?

Replace stamp duty with land tax alternatives

Remove exuberant fees that discourage buyers, such as stamp duty, and replace this with land tax alternatives. Stamp duty is an inefficient tax that reduces the liquidity of property, whereas a land tax makes much more sense as it is an ownership tax that helps fund the state from people who own land in the state.

This reformed land tax would apply to new transactions and continue for all future transactions, ultimately phasing out stamp duty altogether. It should also be collected over a long period of time, given property is a long-term asset. Existing land tax rates have not been adjusted for years, while the value of land has increased substantially.

Additionally, a focus on taxing land value makes higher-density properties such as apartments more affordable to own. This encourages greater purchaser demand for this type of product, which in turn, will result in greater density development around hubs, putting less burden on infrastructure development and budgets; which means taxpayer money can be distributed more efficiently. This also encourages further investment in<a href="/expert-insights/buying/how-to-research-an-off-the-plan-property-thoroughly-and-effectively"> off-the-plan medium and high-density development</a> as ongoing land taxes will remain low. Greater demand in this will drive development activity, meaning more jobs. 

GST rebates to encourage buyers

Strong purchaser demand goes hand in hand with developments being able to reach necessary sales hurdles in order to secure finance to either commence or complete projects, but without this demand, many projects will be put on hold or cancelled.

So, how do you ensure this demand remains? Lower and more affordable prices, opening a wider pool of buyers. Rather than pocketing the GST collected from developers, the Government could instead use this to incentivise buyers via a rebate system. Yes, they forfeit the GST but theoretically speaking, they wouldn’t receive this GST if there is no buyer demand and therefore no supply. The rebate system would allow more projects to get off the ground and in turn, achieve economic stimulus.

Open up the HomeBuilders initiative  

Some may think the recently announced <a href="/news/everything-you-need-to-know-about-australias-25-000-homebuilder-grant-how-much-off-the-plan-homebuyers-could-save">HomeBuilder Package</a> is the government’s way of encouraging buyers but the reality is, the eligibility criteria is very narrow; the maximum $750,000 value of end property is lower than the median house price in Victoria. This is encouraging those on lower incomes to undertake builds and renovations and consequently, accumulate more debt when instead, the Government should be casting a wider net by encouraging the wealthy to spend; if something goes wrong, they’re more likely to have a contingency plan as they can afford it.

Encourage foreign investment

All Government imposed property taxes on foreign investors are simply a means of raising money, yet it’s dressed up as helping affordability because that’s what the Australian public wants to hear. If we go back to the analogy of the cafe, foreign property investors are being charged an absolute premium. The foreign investor is characterised as a common threat to citizens alike when in reality, they are important and significant contributors to the market. Without their contribution, it’s renters that are needing to make up the shortfall.  

Increased taxes will discourage foreign buyers, meaning there is less supply for developers and ultimately, fewer taxes collected. Economics 101 will teach us the relationship between supply and demand determines price so naturally, the price will go up with higher demand (<a href="/news/new-housing-development-aims-to-cater-to-significant-population-growth-anticipated-for-geelong">increased population</a>) and less supply, bringing us full circle to our affordability issues.

And lastly, if the feud with China continues, it will be hugely detrimental to our five most important sectors - property, education, tourism, mining and agriculture. In each of these sectors, China is our biggest customer; we need them, but they don’t necessarily need us and this is a fine line we are treading.
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The Australian property sector could be the catalyst for economic recovery, so why is it facing so many headwinds?

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As a first-time property investor, there may be a number of reasons why you want to renovate your investment property. Maybe it was previously your home and you want to give it a facelift before opening it to tenants, or you purchased a ‘fix-it-up’ property to turn into an investment. 

No matter the reason, renovating an <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">investment property</a> is substantially different to renovating your own home, as the priorities aren’t the same. There are some key things to consider before completing a renovation to <a href="/guides/how-to-ensure-financial-return-on-your-property-investment-in-15-simple-steps">ensure the best return. </a>

Here are four key considerations to consider for investment property renovation projects:

Install assets that boost cash flow sooner 

Depreciation is the natural wear and tear of a building and its fixtures and fittings over time. Plant and equipment is one category of depreciation. The plant and equipment assets of a property are easily removable, such as carpets and lighting, and are generally depreciated over their individual effective lives. 

Each asset’s effective life determines how much you can claim back each year. This is a key consideration as some assets will let you claim more sooner. 

For example, window blinds have an effective life of ten years, and when using the diminishing value method of depreciation, a rate of 20%. However, curtains hold an effective life of six years and depreciate at a higher <a href="https://www.bmtqs.com.au/bmt-insider/choosing-depreciation-methods-diminishing-value-vs-prime-cost/">diminishing value rate</a> of 33.33%. This means that you would claim back more sooner from curtains than blinds. 

Renovate key areas first

It’s no secret that renovated properties attract an abundance of tenants. When you’re only able to renovate part of the property, focus on the areas that will win tenants over. 

For example, a kitchen or bathroom are key rooms tenants look at when searching for a rental. It may be more worthwhile to invest in improving one of these rooms instead of a study or hallway. If you’re looking at a smaller scale, replacing old carpet throughout the property or painting the interior makes a big difference to a property’s perception. 

Scrapping

When you remove items during a renovation, such as flooring or bathroom fixtures, they can still boost your cash flow. A balancing process called scrapping allows you to claim any undeducted value of removed items as a total tax deduction. This deduction is in addition to the first-year depreciation deduction on the new assets. 

Yes, that means you can get money from things that you were going to throw away. Sounds too good to be true, right? 

To make sure you can claim scrapping you must have a tax depreciation schedule completed before and after the renovation. If these steps are missed, you will miss out. 

It’s also important to note that if you live in the investment property while completing the renovation you can’t claim depreciation on the newly installed assets. This is because they will be classed as ‘previously used’, making them ineligible. 

Low maintenance and high durability 

Another factor to consider when choosing assets is how durable they are and the <a href="/guides/2019/06/24/own-rental-property-here-are-14-things-to-check-to-avoid-major-problems-in-future">level of maintenance they require</a>. 

It’s always preferable to have low-maintenance assets installed when renovating an investment property. A renovation is a costly exercise, so you also want to make sure anything you install is durable.
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What you need to know before renovating an investment property

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When applying for a home loan to purchase a property, two boxes that need to be ticked. 

1. Can you prove that you can afford the loan required using the lender’s servicing calculation?

2. Do you have enough savings to <a href="/guides/how-much-can-i-borrow-for-a-new-home">contribute to the loan?</a>

Both of these requirements must be met, and if they are then there’s a good chance you’ll have your loan approved. But what is the required savings amount?

Ideally the greater deposit you have and the less you need to borrow, the higher your chances of securing your dream home. However, the more accessible funds you have available, the less risky the loan is from a lender’s perspective. 

What to do if you have a deposit of less than 20% 

Having a smaller deposit amount is still sufficient, however, it can come at the cost of a higher interest rate (depending on the lender) and the additional fee of Lenders Mortgage Insurance (LMI). Banks will still be willing to lend you the funds, but will need to have their loan insured.

The cost of this insurance premium is passed onto the borrower, despite the insurance being for the bank’s protection in the first place. The insurance covers the bank against default on the loan by the borrower. This premium is a one-off payment, paid at settlement, and typically added to your overall loan. For example, <a href="/guides/is-property-still-a-good-investment-find-out-why">a property valued </a>at $700,000 where the buyer borrowed a base loan amount of $595,000 (85%) could see the insurance premium reach anywhere between $6,500 to $11,000 depending on the lender. If you have less contribution and need to borrow a greater amount, this premium will increase.   

What’s the minimum deposit required?

As a general rule, most lenders will cap the loan at <a href="/guides/20-things-you-should-look-out-for-before-you-buy-property">95% of the purchase price</a> (if buying as an owner occupier), however this rate will need to include LMI, so again in the above example, you would realistically, need factor in 14% of the purchase price, so that you can be confident that any Stamp Duty fees are covered as well.

Sometimes Stamp Duty concessions are available or buyers may be eligible for Government grants, incentives and exemptions. So it really pays to look a little deeper into the numbers to figure out what’s available to you, the total amount you’re required to pay and your ability to fund mortgage repayments once you secure your dream home.
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 How much are you required to save for a house?

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OPINION:

If you are in property, the impacts have been felt along asset class lines with industrial performing reasonably, residential benefitting from subsidies and office feeling the beginning of a pinch. Retail and hospitality have been hard hit and will likely continue to feel the effects for quite a while. There are now also geographic chasms occurring with the Victorian economy going back into lockdown. 

The economy has been propped up by government transfers not seen since World War 2 (in real terms). While transfers provide temporary relief and it can be argued just delay the inevitable pain, structural reforms to industries can make permanent changes to productivity and benefit the economy in getting out of the trap it is in. 

REFORMS

On that note what we have just been through should be used as a learning experience and a catalyst for reform. The reforms will be far more important than cash handouts in the medium term. It needs to be said that in New South Wales the operational reforms that have been implemented by the Department of <a href="/news/definitions-around-affordable-housing-in-victoria-come-into-force">Planning Industry and Environment</a> have been very successful.  The fast track program has been implemented very well and seems to have provided the Department with a focus that they haven't had for decades. Jobs and investment have delivered a very effective means in helping risk averse organisations with an organising principle to help them better manage risk. While the fast track program appears no different from the gateway approvals process it has worked well in an operational sense and should become a permanent fixture of the Department’s toolkit.

Also changes foreshadowed by the Premier at a recent CEDA luncheon and then further explained by the Planning Minister offer further shards of hope. One of the changes mentioned was the right of appeal in the Land and Environment Court to decisions made by Planning Panels (and Councils) on planning proposals. While long overdue such a reform is critical in getting the industry back on its feet.  Certain Councils really haven't been acting with the same amount of urgency as other levels of government during the past six months and seem to be struggling with the changes. This change may bring a shot of reality into the picture. It will be up to the NSW Parliament to make the call on this when they vote on the changes.

WORKING FROM HOME

During the past six months, <a href="/news/clarke-hopkins-clarkes-jordan-curran-explains-how-covid-19-could-influence-the-design-of-mixed-use-communities">working from home</a> has become the standard feature of many people’s employment. It was ironic that I was sitting at home watching a presentation on line from the Greater Sydney Commission where they said that they were going to continue with the policy of sterilising employment land from any other uses. I almost fell off my chair. Here I am in employment at a residential premises on residentially zoned land (and I have been for six months). Surely, they have seen that Optus and many other corporates have said that working from home will be permanent. Major law firms are <a href="/expert-insights/buying/bounce-back-dip-boom-bust-what-s-next">seeing 15% of their employees</a> back in the office and it is unlikely they will be back to full use in a long time. If there ever was a case to jettison a last year’s policy fashion now is probably the time. Rather than rely on edicts from above, the local planners need to bring to bear some of the skills they learnt at University. There are strong cases for mixed development in some employment zones (not all but some) and sterilising land by decree will simply lead to an oversupply of employment land and/or a less efficient city as employment patterns change. Rather than sterilising the land a case should have to be made by local planners as to why the land should be employment only.  

KEY LESSON

The lesson from lockdown is simple. Flexibility is the key in responding to events that could never have been expected. When you find something that works stick to it until it no longer works. No-one really knows how events are going to unfold and to respond appropriately will take a great deal of effort.
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Planning, policy + property: Lessons we’ve learnt from Australia’s COVID-19 lockdown 

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When the time comes to sell, property owners are often caught off-guard by the expenses that are associated with selling property.

"While the bulk of the cost associated with property transactions are for the buyer's account, the seller will incur at last some costs," explains Giel Viljoen, Principal at Leapfrog Stellenbosch.

Make sure to take the following into account and budget accordingly.

Bond cancellation costs

If you have a bond on the property you're selling, there is likely to be a cost for cancelling the bond. The cost varies from bank to bank but prepare to pay in excess of $4000. 

<a href="/guides/how-to-buy-a-house-in-2021-a-guide-for-first-time-home-buyers">The seller</a> needs to give the bank written notice 90 days in advance before consolidating the bond in full as a result of sale, or risk incurring a notice period penalty. Failing to provide notice in good time will result in bond notice period penalty interest, which is a significant but avoidable expense.

In some cases the transfer process may also incur costs for the seller, but that only really happens if the sale of the property is finalised before the bank is notified, which then results in penalty interest.

"If you need to settle other fees with the money available in your bond to do so before issuing the bank with notice of bond cancellation.” Giel Viljoen, Principal at Leapfrog Stellenbosch

Compliance costs

Compliance certificates (which includes electrical, gas, plumbing, beetle and electric fences) are the seller's responsibility and must all be in order before a property can be transferred. Also note that the cost of the certificate does not include the costs of anything that needs to be fixed or repaired, based on the findings of the inspection.

Agent commission

The agent's commission is the seller's responsibility to pay and is usually calculated as a percentage of the purchase price of the property. 

"We often hear complaints about this 'cost' but bear in mind that the agent renders a professional service and the commission is compensation for their work in ensuring the transaction offers the best deal to both the buyer and the seller." 

Giel Viljoen, Principal at Leapfrog Stellenbosch

Rates, taxes and levies

As part of the process of <a href="/news/opinion-the-best-time-in-the-near-future-to-buy-property">selling a property </a>the conveyancing attorneys will require a clearance certificate from the local authorities stating that all rates and taxes are fully paid. In some cases, the seller will be required to make future-dated payments of between two and six months in advance. The amount will be an approximation based on past accounts, and can be rather a large sum for the seller so it is useful to plan and budget accordingly when you decide to put your property on the market. If, however, the property is registered to the buyer in a shorter time frame the council will refund the seller.

Similarly, if the place being sold is in an estate or a sectional title property, the homeowners' association could require the seller to pay the levies a few months in advance to ensure all costs are covered while the property transfer is in process.

Miscellaneous costs

A cost that does not apply in all cases but that certainly needs to be planned for if it does is Capital Gains Tax (CGT), which is the tax payable on the disposal of an <a href="/guides/is-property-still-a-good-investment-find-out-why">asset (your property)</a> where the proceeds exceed the base cost. CGT is the responsibility of the seller and forms part of income tax.

Lastly, don't forget to take the cost of moving your things from one property to another into account. Moving costs tend to be more flexible as it depends on factors, including how far you're going, but should still be planned for.
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Selling your property? Be sure to take these 5 costs into account

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<h2>OPINION:</h2>

Navigating the planning system in New South Wales can often seem like a tedious problem. At a local level, development applications are governed by a seemingly endless list of statutes, frameworks, guidelines, and advisory notes. Adding onto this burden the issue of heritage and suddenly, the odds of doing any form of adaptation or alteration to a building can, on the surface, seem like an insurmountable challenge. 

Yet lying underneath this mountain of legislation is a <a href="/news/upcycling-australia-why-demolish-when-you-can-re-polish">wealth of untapped opportunities around heritage adaptation</a> which offers flexibility and a chance to develop projects which would otherwise not be possible. By bringing in both planning and heritage expertise in-house as architects, we can engage in a close exploration of how architecture can work coherently and concurrently with the plethora of planning legislation, using heritage buildings as a gateway to provide new opportunities which deliver positive outcomes for development and the local community. 

These opportunities recognise that the idea of heritage preservation is not an end in itself and in fact, as the historian David Lowenthal reminds us, “‘preserve’ also carries with it the meaning of ‘pre-serve’. It is an act that preceded some aim to be served through it. Preservation is not action or epilogue; it is only prologue.” When we begin to look at heritage buildings from this perspective of pre-serve prologue, what we find is a wide array of opportunities for adaptive reuse, and the chance to give new life to old structures in the very heart of our city.

Planning for adaptation

The potential for heritage items to lead new lives is embodied in the provisions under <a href="https://www.legislation.nsw.gov.au/#/view/EPI/2006/155a/part5/cl5.10">Clause 5.10(10)</a> of the Local Environmental Plan (LEP) which states that,“...The consent authority may grant consent to develop for any purpose of a building that is a heritage item…even though development for that purpose would otherwise not be allowed…” 

The threshold test for activating this incentive is to ensure that the conservation is “facilitated by the granting of consent” meaning that whilst an opportunity is offered to repurpose a heritage building, it is also balanced with the responsibility for any potential development to also adequately manage the item. This clause, therefore, gives credence to the principle of adaptive reuse by enabling potential alternative functions to be explored and implemented whilst also ensuring that a historic building is maintained and enhanced. 

Alternatively, some councils in our inner-city also have specialised provisions for the conversion of historic structures into new, more applicable uses in an attempt to preserve the historic character of an area whilst also accepting the need for change. Marrickville LEP’s <a href="https://www.legislation.nsw.gov.au/#/view/EPI/2011/645/part6/cl6.9">Clause 6.9</a> (Soon to be the Inner West LEP) for the Conversion of Industrial or Warehouse Buildings is one such example. As the old industrial suburbs of Alexandria, Marrickville and Waterloo have become progressively redefined as key inner-city housing precincts, departing industries have left behind a legacy of sturdy, warehouses and factories. The expansive floor plates and tall ceilings of these buildings provide an equally unique opportunity for conversion into a range of housing typologies, including mezzanine and loft-style developments. Conversions such as these provide a bridge between the historical and the functional – retaining the old industrial character of an area, whilst meeting the new residential needs of Sydney in the 21st Century. 

Order in the court

In exploring additional opportunities for adaptive reuse, we can also turn to how the Land and Environment Court has interpreted the issue. In the pivotal case <a href="https://www.caselaw.nsw.gov.au/decision/549f83703004262463abc5a1">Hesse v Parramatta</a>, which became one of the key planning principles of NSW, a four-part test was established to determine the public interest benefit of adaptive reuse, where a proponent would have to advocate for one or more of the following attributes:

<ul>
<li>The building is of historical or heritage value</li>
	<li>The building is attractive and fits into its urban design context</li>
	<li>The building is much loved by the community</li>
	<li>The new use serves the public interest better than the existing use</li>
</ul>
Whilst the case demonstrated that adaptive reuse is not automatically in the public interest, these four guiding principles are extremely useful because it allows designers to engage more directly and critically with a local context to deliver, ultimately, a better outcome for the proponent of a project, the final users as well as the local community – a triple-win scenario. 

A world beyond heritage 

Beyond the world of heritage architecture, the potential for adaptation also exists in structures littered across our city more generally. The zone adjacency provisions contained in <a href="https://www.legislation.nsw.gov.au/#/view/EPI/2006/155a/part5/cl5.3">Clause 5.3</a> of the LEP once again offers flexibility to sites which lie adjacent to more intensive development zones. Caught between the interface between high and low density or commercial and residential zoning, lies dormant possibilities to reuse structures.

Old factories, old commercial buildings can often be converted without substantial demolition, providing substantially denser projects in areas where this may no longer be allowed. Similarly, recent development approvals in Glebe and Balmain have shown that old, pre-existing structures, whether origin<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2020-07-23_at_3.46.46_pm.png" rel="gallery-all" title="On-site construction image, current development – removal of interior fabric and reinforcement of the top floor for construction of the new penthouse level. "><img alt="" class="image-article-full-width-580px" height="383" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2020-07-23_at_3.46.46_pm.png?itok=8MiYTTJs" title="On-site construction image, current development – removal of interior fabric and reinforcement of the top floor for construction of the new penthouse level. " width="580"></a> On-site construction image, current development – removal of interior fabric and reinforcement of the top floor for construction of the new penthouse level. ally a boarding house, a warehouse, or offices, can be converted with substantially little structural change, but far higher floor space and height than current planning constraints.

These developments make clever use of existing building envelopes, providing a sound argument in their <a href="https://www.legislation.nsw.gov.au/#/view/EPI/2006/155a/part4/cl4.6">Clause 4.6 Variation</a> that amenity in the neighbourhood remains unchanged, whilst modernising tired, old structures to supply much needed, high quality, sustainable housing to meet the needs of our growing city

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2020-07-23_at_3.50.41_pm.png" rel="gallery-all" title="On-site construction image, current development – removal of interior fabric and reinforcement of the top floor for construction of the new penthouse level. "><img alt="" class="image-article-full-width-580px" height="392" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2020-07-23_at_3.50.41_pm.png?itok=FcmHlFZs" title="On-site construction image, current development – removal of interior fabric and reinforcement of the top floor for construction of the new penthouse level. " width="580"></a>

<figcaption>On-site construction image, current development – removal of interior fabric and reinforcement of the top floor for construction of the new penthouse level.</figcaption></figure>The future lies in our past

So often our planning system is thought of as an adversarial system, a tangled web woven to confuse and to prevent any change or progress from taking place. But when we begin to look closer, more carefully and more critically, we can actually find the individual paths of untapped potential of warehouse conversions, heritage incentives and pre-existing site benefits. This enables us not only to use heritage buildings in a useful way, but also in a meaningful one, preserving what is best for our past, whilst also looking ahead to the endless possibilities for our future.

<figure><figcaption> </figcaption></figure>
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The untapped opportunities of adaptive reuse

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<h2>OPINION:</h2>

They say that in times of great distress, humans have two distinct responses to a perceived harmful event: fight or flight. Right now, we are seeing collectives, organised groups and societies across the world-over, exhibit their response to arguably the greatest disjuncture most of us have witnessed in a single lifetime, and will likely ever endure, in their lifetime – the <a href="/expert-insights/buying/opinion-is-the-impact-of-covid-19-a-repeat-of-sars-for-the-property-market">COVID-19 pandemic</a>.

There’s nothing like a crisis to focus the mind on a good outcome and reality is that we should always be striving to be more effective and more productive in the interest of the welfare of our people – that’s a truism. It is like seeing a 4m tiger shark in the water whilst you are surfing at <a href="/developments/bondi-beach-nsw-2026">Bondi</a>. There is no more effective and powerful action than the one you’ll take next in that circumstance.

We’ve recently seen evidence of this in the urban planning and built environment sector, with Premier Berejiklian offering up her finest “fight” response, announcing her intentions to reform the antiquated and woefully anachronistic planning system, in order to cut onerous red-tape and 'turbo-charge our economic recovery'.

As anyone in the industry will attest, the current planning system is long overdue for major reform. Every day, I hear stories of how it takes three years to get a carport approved - it’s simply a system that isn’t built for a current, modern-day purpose.

The NSW <a href="/expert-insights/buying/news-that-da-assessment-times-have-halved-are-grossly-exaggerated">planning system</a> in its current form is starting from an incredibly low and ineffective base - it is the slowest in every single category of assessment according to the most recent report of the NSW Productivity Commissioner. The system has also largely ignored the legitimate role of rezoning proposals to enable flexibility and accommodate changes in economic circumstances for too long. The Premier has even admitted that it takes a ludicrous 579 days and thousands of pages of expert consultant reports, to progress any rezoning of land.

Everyone agrees that meaningful reform of the system is long-overdue, and we have all heard a lot of talk around fast-tracking before. Most of it, though well-meaning, however, has actually only ever achieved added complexity. And for that reason alone, it should not have taken a pandemic for the Government to act. But in any case, it’s good to see our legislators and policy-makers putting up a fight, at precisely the right moment.

There is no greater challenge than a world-wide pandemic to test the psyche of governments and billions of intelligent people world-wide. In the end, it is always about the human: we are the problem and we are also the solution. While we are yet to see just how effective these latest reforms will be, at least we are now having renewed vigour and purpose. Perhaps even with a planning system that stimulates the economy and properly serves the people.
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Hope for planning reforms to get NSW back on track

The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

[smartcode_project:default project_id=144913 project_image_fid=297741]

The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 41-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 41-storey tower, which has 229 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Nicholas Failla

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