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GUEST OBSERVER
Every year the spring market attracts massive attention. September is seen as a litmus test for the rest of the year and a stern assessment of how resilient the property market really is. It’s the AFL Grand Finals of real estate – which, oddly enough, is on at the same time.
This year’s been no different. After a very strong winter, especially in Sydney and Melbourne, the pressure on the September markets has been huge. This has been exacerbated by the stringent restrictions brought in on investment loans by the major banks. Also, cautionary warnings of apartment oversupply have meant that investors are studying the market with high-beamed intensity.
But how much can we really read into September? Is it really just a snapshot in time or is it indicative of long-term market trends?
Let’s start with the clearance rates. Sydney’s clearance rates have slightly dropped as have Melbourne’s. Last year Sydney was hitting the 80% clearance mark regularly, whereas this year it’s been around the mid 70s. The so called “Super Saturday”, the last Saturday of September saw clearance rates in Sydney slip a fraction below 70 percent for the first time this year.  Melbourne has also lost a few points, from around the high 70s to mid 70s this month. However, it’s crucial to remember two important things: this year has seen a record number of properties come onto the market. This has been because such a buoyant winter has caused many owners to try and cash in quickly. So the market has been absorbing a flood of properties and the increased competition has led to a slight drop in clearances. A result in the 70% region for September is still very strong.
The second thing worth noting is that while clearance rates have dropped, prices really haven’t. So while various media outlets have been quick to prophesy doom and gloom there’s absolutely no evidence of falling prices. In the same article in Sydney Morning Herald’s Domain about the drop in clearance rates there was news of a Darling Point property going for almost $3 million above reserve. Auction results generally have shown that sales prices are still strong. The market is robust enough to cope.
There is a clear confidence in the local markets as shown by the numbers of investors going to auction. The markets have themselves repaid this confidence with still strong auction results and relatively short turnarounds.
To get a handle on the national figures you need to delve deeper. There is a clear disparity between cities like Sydney and Melbourne which have been relentlessly driving the property markets upward and that of cities like Darwin, Perth and Canberra which are all experiencing negative growth and sliding clearance rates. This then averages out the national sales figures. 
The media has also been a big factor. Every week there’s been warnings of an imminent burst in the property bubble or a collapse in prices. This can cause a flow on panic factor, with investors rushing to sell before doomsday arrives. So far doomsday is still running late.
It’s important to remember that since 2009 Sydney has recorded a phenomenal growth of 76 percent according to Core Data figures. If you bought a property back then, on average, you would have seen this jump by around $300K in the last six years. Sydney and Melbourne remain highly desirable cities to live in. They’ve shown their resilience and ability to absorb wild property price swings in the past. They’re both international cities highly attractive to overseas investors. Whilst an oversupply of apartments in both cities may slow down parts of the market in the short term - it will inevitably catch up again. 
Beyond the two big cities, outlying regional centers such as Wollongong in NSW and Geelong in Victoria have been experiencing record property price booms as investors start to look outwards.  In the Illawarra region, for instance, auction clearances are going over 80%, a truly remarkable outcome.
To understand the clearance rates each city has to be broken down into its geographic areas. These can wildly differ. For example, Sydney’s North Shore has been having very good clearance rates and the eastern suburb properties are firing yet the south western suburbs are identifiably weaker. In fact clearance rates in the south west have fallen in the last year from around 69.8% to 54.9%. This is a pretty dramatic drop. But does it speak for the rest of the heated Sydney market? Probably not.
So ultimately it comes down to picking the right long term growth suburb and choosing the ideal property type. A good long-term investment property will not be affected by the vagaries of the spring market. This is why it’s always an excellent idea to chat to a professional who can offer solid research and help create a strategy that bypasses the flurry of the market.
SAM KHALIL is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
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SamKhalil-UNoWQ73CmG

The property doomsday is running late: DPN's Sam Khalil

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GUEST OBSERVER
We’ve seen a spate of stories and articles recently about how foreign investment is unlikely to slow down. 
There’s been much print around the unabated interest of Chinese investors in Sydney. 
We’ve also read about the eagerness of foreign investors to find building opportunities in Melbourne. There are now predictions that Perth will have another housing boom off the back of foreign investment. So across most of Australia, the enthusiasm for property from overseas buyers is still aflame.
This is partly to do with current world factors – the easing off of capital controls in China; the freeing up of other markets like India and a rapidly growing middle class in various parts of Asia. But this only tells part of the story.
The restrictions brought in by APRA earlier this year and then passed on by the main mortgage lenders were aimed to curb the rising tide of investment. However these measures have plainly had little effect.
Australia is now firmly in the sights of foreign investors and it’s highly unlikely that this will change. Here are some reasons why:
1) Growth of apartments in capital cities: The Asian investors, especially, are very attracted to apartments as an investment. It’s a commodity they understand well as it’s the mainstay of most major Asian cities. Melbourne has been going through a frenzy of apartment building over the last few years and this doesn’t show any sign of slowing down. With Melbourne predicted to outstrip Sydney in terms of population in the next fifty years, buying an investment property in the city is a pretty safe bet. Sydney also has seen an expansion of apartments into traditional suburban areas such as the North Shore and Sutherland Shire. 
2) Sydney and Melbourne now truly global cities: For many years Australia was in a little bubble and something of a secret tucked away from the world. Most of the investment was European and British. It wasn’t roughly until the 1990s and the determined push to make Australia’s major cities international and cosmopolitan that it really turned up on the radar of overseas investors. Certainly events like the 2000 Sydney Olympics helped promote the country. With major financial headquarters in Sydney and Melbourne, both cities offer an easy and accessible base for the foreign investor.
3) It’s the lifestyle: Australia has an extremely friendly environment compared to other countries. It’s worth noting that much of the foreign investment has been aimed at the eastern seaboard: Sydney, Melbourne, the Gold Coast and other parts of Queensland. The weather, beaches, excellent health care and a small population make it a honey pot for Asian investment. International agency CBRE reports that of the total foreign investment into Australia in the lat few years, two thirds of it is from Asia. This is highly significant as Australia’s lifestyle and environment compares very favourably to most Asian countries and is unlikely to change.
4) Economic advantages: When Australia survived the GFC in 2008, its strong and stable economy meant that it was very attractive proposition to foreign investors. The government’s tax breaks for property investment make it even more so. Other cities like London and Hong Kong have clamped down heavily on overseas investment, making Australia, with its relaxed foreign investment rules, a prime target.
Will this hurt local property investment?
It’s actually unlikely that foreign investment will damage local property investment. While it adds a bit more competition it also boosts the building and architecture industries. It creates jobs and energises the economy. It drives up property prices, but this simply means that capital growth on all investments move upwards. So all investors benefit from the upsurge. It’s also worth remembering that foreign investors are often playing in a different pool. Mum and dad or first time investors may typically go for cheaper investments in the outer suburbs, as a way of cautiously dipping their toes in the water. 
Foreign investors (Asian investors especially) tend to zone in on specific areas and types of dwellings. So while there’s been much alarm sounding and panicking about the effect of foreign investment, there really doesn’t need to be. If anything it confirms the desirability of Australia as a property investment option. And as long as the local investors ensure they have sought out information and a comprehensive service from a property professional they’ll be in a strong position.
SAM KHALIL is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
Direct Property Network (DPN) provides clients with an end to end property investment solution from selecting the right property through to settlement and beyond.
 
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Foreign investment and why Australia is attractive: DPN's Sam Khalil

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GUEST OBSERVER
A quick study of the latest property data shows that a new type of property investor has definitely emerged. We still have the other traditional kinds: like the classic, slow build investor who has built up a portfolio over decades. Then there’s the mum and dad investors who are carefully looking to dip their toes in the water after getting on top of their mortgage. However, this new breed is different.
It’s a weird amalgam: first home buyer/investor/renter. They’re the people who simply can’t afford the place of their dreams. They’re struggling with the heated urban market, especially Sydney or Melbourne. Yet they’ve scraped together a deposit and recognize the value of getting something, anything, before the market once again rises. So they’ve bought a property out in an area where they don’t want to live, usually the outer suburbs, and they are renting and living somewhere else. This is especially a phenomenon of younger couples who want to send their kids to a certain school or have a love for a certain area. For example, couples who rent in beach side Sydney or a desirable family friendly suburb in Melbourne like Camberwell or Bentleigh. They can’t buy into these places but want to live there. They can see the value in buying a place out in the sticks, but certainly aren’t thinking in terms of portfolios or multiple properties.
They’ve become unwitting, unplanned investors. Let’s call them the reluctant landlords. They’ve replaced the owner/occupiers. The owner occupiers were a classic force in Australia right up till recent times. They saw a property as long term and would quietly suffer economic downturns, feeling sure that their ultimate plan of property appreciation would eventually happen. As they generally were in it for the long haul they were never prone to alarm about sudden market twinges. However, they’ve started to disappear as first time buyers simply struggle to get into the market. So reluctant investors/landlords have their own long term approach. Priced out of their own desired area they plan to invest in a medium-short term rapid growth suburb as investors. They generally don’t plan to be doing this for too long. Their hope is to perhaps do up the property, rent it out then resell it after one-two years and take advantage of the heated market to buy the house they’ll remain in. It’s like a two phase strategy of the owner occupier plan.
Most of them are twenty somethings or thirty somethings, either renting or else living with their parents while they save up. Except instead of buying a house for themselves they’re buying an investment property.
The reluctant landlords often feel uncomfortable as investors or renting out their property. This is because it’s not their long-term goal. Consequently they can sometimes make bad decisions, such as selecting an inferior property manager or not vetting tenants properly. They also may make other poor choices like identifying a suburb that is likely to rise as an investment area but not being aware of costly strata or title issues. Essentially they’re amateur investors and prone to making mistakes.
The more savy or those partnering with service providers who can pass on their expertise, are using renting and investing as a combined long-term strategy, keeping them in their desired urban hub and investing in affordable high-growth areas maximising depreciation and tax benefits to their advantage while  building a passive income for their future.
The latest figures from the Australian Bureau of Statistics showed that investor loans galloped ahead of owner-occupier loans by four times the amount. Added to this a new study by Digital Financial Analytics shows that property investors are younger than ever before. This gives credence to the theory that we’re seeing young couples being pushed into investor roles through the sheer white heat of the current property market. It’s also in part due to the slashing of first time buyer grants from the Federal Government. Conversely negative gearing and the steady stream of low interest rates have made the market very conducive to investors. First home buyers, to some extent, have been forced to become investors through a rearranging of the laws of property.
Yet we’ve seen that there’s a cooling in rentals, partly due to an oversupply of apartment buildings in cities like Melbourne. And areas such as the Gold Coast are not the booming rental markets as they used to be. This leaves the reluctant landlords on shaky ground. Property investment will never be an exact science and the stakes are too high to make the wrong choice, especially as a first time buyer. So careful analyses and researching the market is vitally important. So too is getting accurate information and seeking it out from property experts may be the first steps in the property path to success.
SAM KHALIL is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
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The new breed of property investor: DPN's Sam Khalil

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GUEST OBSERVER
For the last few years, Sydney has been virtually synonymous with <a href="https://www.dpn.com.au/services/property-investment" target="_blank">i</a>nvesting in property in Australia. Sometimes it seems like it's all anyone is talking out.
It's not surprising, given that property prices have seen a year-on-year increase of 14.5%, as noted by the latest RP Data Hedonic Home Value Index. But over time, this focus on Sydney has come to seem less like excitement over a well-performing market and more like tunnel vision.
Starting from the top
A lot of the reason why people are excited about Sydney is because of this exceptional growth. And make no mistake, there are still areas in the Harbour City where you can get incredible value. However, it seems like many people are basing this enthusiasm on how well it's performed in the past, and as I've cautioned before, past performance is no guarantee of future returns.
In fact, those who are trying to invest in some parts of Sydney now could well be buying at the top of the market. Future capital growth in these suburbs that have seen extraordinary increases is likely to be subdued going forward - so it's best to avoid following the herd. It would be unwise to buy something that has increased in value considerably, hoping that this will simply continue on and on.
Expanding your horizons
Of course, one shouldn't discount Sydney entirely. But if you're desperate to buy into the city, you'll need to be more selective, less emotional and buy in emerging markets instead of the ones doing spectacularly well. Those suburbs do still exist in the New South Wales capital.
Alternatively, it could be just as beneficial to look at the emerging markets outside of Sydney.
In New South Wales, for instance, two cities that show some promise are Newcastle and Wollongong. Here, the house prices are lower, the yields are better and the cities boast strong, diversified economies and population centres.
Meanwhile, outside the state, Brisbane is looking increasingly attractive. The Queensland capital has a greater degree of potential as its real estate values haven't seen as much growth as cities like Sydney and Melbourne, and yields are higher on average. In particular, I'm thinking of the suburbs in the corridors between Brisbane and the Gold Coast, and the northern and northeastern areas.
In the latter two, you've got neighbourhoods that are close to the coastline, have a billion dollar train line coming in and are a mere 25 minutes from the Brisbane CBD. Suburbs in the North Lakes region are especially encouraging, given the large amounts of investment in retail, infrastructure and education. An equivalent area in Sydney would be triple the price.
Why Queensland is poised for big gains
I was at a barbecue over a weekend, and someone told me they were thinking of moving to Queensland because they could sell their house in Sydney and buy a large home there outright with cash. There is a huge divergence in price between Brisbane and Melbourne and Sydney, and people are taking notice.
Interstate migration is picking up, with Melburnians and Sydneysiders moving over to Brisbane for its warmer climate and the cheaper house prices. It's appealing for both foreigners and Australian families looking for a certain lifestyle without the stress and burden of large debts. All of this means that there are likely to be a lot of investment property buyers in Brisbane in the coming years.
It's all about applying the same methodology of finding emerging growth suburbs, but applying it to new areas and suburbs. If you've had your fill of Sydney, expand your horizons and look across state lines.
SAM KHALIL is founder and director of Direct Property Network. He can be contacted <a href="https://www.dpn.com.au/" target="_blank">here</a>.<a href="https://www.dpn.com.au/" target="_blank"> </a>
 
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Crossing state lines: Where to after Sydney for property investors?: Sam Khalil

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GUEST OBSERVATION
For decades, the concept of the Great Australian dream of home ownership was a guiding premise for Australians. To buy a quarter-acre block with a yard was a seemingly universal aspiration across the country.
Of course, home ownership is still the goal of many Australians - the dynamics have just changed. Urbanisation has brought us reduced block sizes and the prevalence of apartments, while people are having fewer and fewer children, and later. At the same time, you can't ignore that property prices have increased - the median price of the five big capitals is now $686,590, according to RP Data CoreLogic.
However, I don't think these are barriers, but rather obstacles to home ownership, whether you're a first time buyer or first time investor. And obstacles can be surmounted. Unfortunately, certain mindsets hold us back.
The attitudes that limit our options
For some people, it's the lifestyle factors that cloud their judgement. They want to live closer to the city or to their job, or even to certain lifestyle areas, at all costs - even if that dream home means they're lumped with a nightmare loan. Others say they want a place of their own where they can hang up their photos and really make the property their home.
When it comes to both of these mindsets, realising you can be a tenant and an Australian property investor all in one is the key. There's even a name for it now - a "professional renter". Some people say rent is a waste of money. I think interest can be an even bigger waste.
Rather than striving for a property they could never afford, these individuals continue renting in the area they want to live while purchasing an investment property - or two, or three - elsewhere. They can then use their investment income to help them pay rent and the mortgage, while eventually capitalising on their equity to fund a home purchase. More and more first home buyers are going down this road. According to Digital Finance Analytics, around 30% of first time buyers in August 2014 were investors.
And for anyone who thinks they can't make a rental property their home, they should know they can hang up photos when they're renting as well. Some landlords are happy to have good tenants who will add value to a property through some minor renovations, and they find they can live in a place for many years without moving. At the same time, they're not paying council rates or other expenses, money that can be put to work elsewhere.
Affording the deposit
Of course, at the end of the day, you still have to save for a deposit and get into the market when buying an investment property. Like I said before, the situation is far from hopeless.
Affordability isn't insurmountable - you just need to be open to adjusting your strategy. If you don't get an affordable investment property in the area you were looking at, be flexible enough that you can look at another. You're not buying this house to live in.
Remember, also, that there are many property markets. You can't solely focus on one area. Particularly with today's ability to access better financial products, you will be able to find the right property eventually - it just may not go exactly how you imagined it.
Finally, one of the most encouraging trends I've seen is that younger people are more open to seeing a financial planner or advisor now, early on in life. This is good, because not only can they make use of their greatest asset - their age - they can also set themselves up with a vision and strategy, which can make budgeting and financial sacrifices much easier.
The fact is, not only can first home buyers afford one property, they can afford multiple. The sooner they start, the more of a chance they have to put together a property investment plan and start a portfolio. It might be a challenge, but the younger generation today could well end up with more wealth than their parents - with the right attitude.
Sam Khalil is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
Direct Property Network (DPN) provides clients with an end to end property investment solution from selecting the right property through to settlement and beyond.
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First home affordability isn't insurmountable: DPN's Sam Khahil

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GUEST OBSERVATION
For a long time now Australia has been a <a href="https://www.dpn.com.au/services/property-investment" style="line-height: 1.3em;">hotspot for investing in property</a> with people all over the world vying for a slice of the Australian real estate market. According to the Reserve Bank of Australia (RBA), foreign investment in residential property has grown from $6 billion a year in the 1990s to more than $17 billion in 2012/13. The year after that, the value of foreign approvals for home purchases was more than 12% of total dwelling turnover.
Of course, overseas investment in Australia's real estate industry need not only come from foreign buyers. In Michael Fullilove's World Wide Webs: Diasporas and the International System, he estimated the Australian diaspora at around 1 million people, scattered mainly throughout Europe, North America and South East Asia.
Many of these will be Australians who are living and working overseas temporarily, for lifestyle, career or even tax purposes. But whether these expats are aiming to stay away for good or someday return, they too may want to purchase a piece of investment real estate in Australia.
If you count yourself among either of these <a href="https://www.dpn.com.au/services/international-buyers">groups of international buyers</a>, you'll want to be armed with as much information as you can going into an investment purchase. Consider this a short guide to buying investment property in Australia. 
Why invest in Australia?
There are four core factors that make Australia a great place to invest:
<ul>
<li>23 years of uninterrupted economic growth, including a forecast GDP of 2.8% between 2013 and 2019 by the International Monetary Fund</li>
<li>One of the most skilled, diverse and educated work forces in the world - 40% hold tertiary qualification or an advanced diploma</li>
<li>Proximity to the quickly growing Asia Pacific export markets, coupled with the third most transparent real estate industry in the world</li>
<li>Total projected infrastructure investment of $125 billion between 2013-14 and 2019-20 across every state and territory</li>
</ul>
The latter is particularly significant - with such a large amount of planned infrastructure projects in the pipeline, it means a widening radius of areas that could experience <a href="https://www.dpn.com.au/news-resources/sydneys-top-growth-suburbs">significant capital growth</a>.
The other significant attraction of Australia as an investment location is its rapidly growing population. The 2015 Intergenerational Report recently revealed that, by 2054-55, Australia's population is expected to grow to nearly 40 million - an increase of almost 17 million. This means more households needing homes, pushing up demand for currently scarce housing stock - according to Master Builders Australia Chief Executive Wilhelm Harnisch, there is currently a shortfall of 9 million homes in regard to this target.
What kind of properties can international buyers purchase?
Australian citizens, whether here or abroad, as well as foreign nationals with permanent resident visas, have no restrictions on what kind of properties they can buy. Everyone else will have to seek prior approval from the Australian Foreign Investment Review Board once they've chosen the property they want to buy. 
Once you've applied, you should receive a decision between 30 days. It's also important to note that there are certain limits on what kinds of property foreign nationals can buy - broadly speaking , foreign buyers can only purchase new homes or vacant land, and only for investment purposes.
The essentials of buying an investment property in Australia
Before making your investment, be sure you're aware of the full cost of investing. You'll need at least 5-10% of the purchase price to make a deposit, as well as enough to cover supplementary expenses, such as:
<ul>
<li>Stamp duty, which varies from state to state</li>
<li>Legal costs</li>
<li>Insurance</li>
<li>Building inspections</li>
</ul>
Most foreign buyers can borrow 80% of the property's value, allowing them to avoid the cost of lenders mortgage insurance. 
In order to successfully invest, you'll also need to get the <a href="https://www.dpn.com.au/services/home-loans-finance">right investment finance</a>. Some lenders now offer the same features and interest rates on mortgages for non-residents as they do for more typical borrowers, including extra repayments, 100% off set accounts and the option of interest only loans. DPN are credited with all of the major banks and lenders, including those who offer non-resident home loans, so we can be instrumental in securing the right loan for you. 
Thanks to the record low interest rate environment currently prevailing in Australia, there's never been a better time to invest. However, you won't want to enter the market without a solid strategy in place first.
This is where DPN come in. Whether you're an Aussie expat living abroad or a foreign national wanting to invest in our property market, we can provide you with a <a href="https://property%20investment%20plan">free property investment plan</a> that matches your goals and circumstances with a specific property-buying strategy. We can then move on to finding you the right loan, and provide you with peace of mind with our rental guarantees.
Sam Khalil is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
Direct Property Network (DPN) provides clients with an end to end property investment solution from selecting the right property through to settlement and beyond.
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Why Australia is a prime target for overseas property investors: DPN's Sam Khalil

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GUEST OBSERVATION
Although 'fad' and 'trend' are considered synonyms, in practice they have very different meanings.
A fad implies something fleeting and of little value that will pass soon without importance.
Trends, however, while they might be equally temporary, can provide us with valuable insight about where something is heading.
It's therefore worthwhile for any Australian property investor to have a closer look at some of the trends and hot topics which are defining the current market.
We found one of the most noticeable trends is the amount of investment activity in real estate at the moment.
Investors are becoming key drivers of growth and purchasers of new stock, which was the domain of first home buyers.
Investors have a natural advantage over first time buyers, due to their access to a greater amount of equity and income, and the fact that the expenses involved are tax deductible.
As a result, virgin buyers are finding it increasingly hard to compete with them.
A segment of the investor market which is becoming particularly more prominent is that of self-managed super fund (SMSF) investors.
The number of SMSFs in Australia is growing - 29% over the last five years, according to the Australian Taxation Office - and with it are the number of SMSF holders considering property as an investment.
Part of the appeal lies in the fact that investors can leverage their superannuation monies to fund themselves through retirement without relying solely on accumulation-based savings.
Also additional purchases are becoming increasingly common.
It's becoming almost a sport.
While buyers were previously happy to buy a single investment property and stick with it, more and more people are thinking in terms of multiple properties or portfolios.
When it comes to the most popular topics in the world of investment over the last three months, one of these was the record demand for high yield assets like dual income properties, duplexes or high rent properties.
While buyers were desperately looking for properties with yields of 7% or upwards, he warned that the search may not be so easy.
That market has been quite exploited, so it's really down to who you know as opposed to tripping over them now.
Land needed for a dual-income property - 450 square metres or greater in New South Wales - is getting tighter.
Because of a shortage of land, most of the lots released fall short of this number and unfortunately, legislation hasn't changed to fit this new state of affairs.
It seems that while investors are finding it ever more advantageous to enter the property market, getting the ideal investment property is still no piece of cake.
Sam Khalil is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
Direct Property Network (DPN) provides clients with an end to end property investment solution from selecting the right property through to settlement and beyond.
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Planning legislation is triggering shortage of NSW land: Sam Khalil

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GUEST OBSERVATION
When you work in the property industry, you tend to notice patterns. Anytime you're immersing yourself in data in order to predict how things are going to turn out in the future, this is bound to happen.
In terms of real estate, one unmistakable trend that I've noticed is that more and more Australians are looking outside the Sydney CBD to fulfil their property goals. Rather than looking at smaller apartments in the city centre, buyers are opting for houses and land in suburbs that we might think of as more remote.
These investors have the right idea. As Sydney gets bigger and bigger, the premium on its outer suburbs is only going to follow suit.
Bucking the conventional thinking
This all might sound strange or even counter-intuitive for those who feel they know the Sydney real estate market. For some time, investors were quite cautious about looking outside the CBD area, which has always been a strong reference point.
This reflects one of the issues around property investment. There are 1.7 million property investors in Australia. Rather than taking a scientific or math-based approach to their investing, however, most of these Australians base their investment choices on instinct, gossip and what they already know. Familiarity, not fact, becomes the basis of judgement.
Unfortunately, while this might seem like a safe approach, it can also close you out of a number of opportunities. In fact, it is the investors who broke away from this trend earlier and invested in outer suburbs who are reaping the benefits now.
Outer suburbs mean big returns in Sydney
When you look at the totality of Sydney, it's clear how limited simply focussing on the CBD is. For one, let's take the fact that, for most investors, the price range is around $400,000-$700,000. Today, to afford something in the CBD for around $600,000, you're looking at a one-bedroom apartment. This is on top of the fact that rental yields aren't necessarily high, that you're facing high body corporate costs and you've got a low land component.
As well as this, there's the massive amount of growth and development happening in parts of Sydney other than the CBD. You've got a city like Parramatta emerging, which is about to overtake Adelaide as the fifth biggest CBD economy in the country, is a considerable economy in its own right and is seeing the construction of the tallest tower in Sydney.
You can also look at key infrastructure areas like Penrith, or maybe Liverpool, whose hospital is the largest in the southern hemisphere. There is a massive amount of growth and development happening in many previously overlooked parts of Sydney, making them more viable for investors to consider.
It used to be that people wouldn't think twice about a region like western Sydney, which is stereotyped as a low socioeconomic area. But it's also one that's experiencing a large amount of investment, from the new airport in Badgerys Creek to the $11 billion WestConnex road project, along with the many housing developments taking place in the region.
The first law of economics
The fact is, Sydney is a basin, and there is only so much land - something investors are increasingly becoming aware of.
Because of this, it's the areas that were once ignored that will be the new growth centres over the next decades - that's where the affordability is. If you can get land there now and hold onto it, you stand to win. It's basic supply and demand.
A good example of this is Kellyville. Years ago I was telling people it was a great place to invest, and people would ask me if anyone actually worked out there and whether they had high incomes. Today, land is virtually impossible to access in Kellyville, and before I even start talking, people ask me if I have anything available there.
If investors can look beyond conventional wisdom and forget about what they're familiar with, they can benefit just like the landowners in Kellyville have.
Sam Khalil is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
Direct Property Network (DPN) provides clients with an end to end property investment solution from selecting the right property through to settlement and beyond.
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When you invest in property, leave familiarity at the door

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GUEST OBSERVATION
In the aftermath of the global financial crisis, many investors adopted a 'mark time' strategy and withdrew from the investment sector.
However during this time, property investors with a disciplined methodology were able to purchase great properties. 
They were able to afford two properties at the same cost as one 18 months prior and locked up their loans via fixed rates for five years.
Whilst there is no doubting the generous returns that investors can experience through property investment, the global financial crisis was a timely reminder for many investors of the need for professional advice and assistance, especially when times get tough.
Some property investors panic as property prices stalled and some struggled maintaining repayments on investment loans.
Other savvy investors however who had planned their strategies well and had taken professional advice at the beginning of their investment plan were able to sleep comfortably at night knowing that their plans were still on track.
These five simple tips can really set you up on the path to acquiring a fruitful property investment portfolio.
<ol>
<li>At the outset, it is important to recognise that generalist media opinions about investment strategies are not necessarily the best source of information for a savvy investor. Whilst journalists are happy to rely upon general statements, every successful investor knows that specifically tailored plans are the only reliable method upon which an investment plan can be based. Investors also need to take a broader view of the market than local journalist articles would otherwise have you believe. Reading limited information about local area or general advice about a state is insufficient when it comes to research and that is why independent advice and research are imperative. </li>
<li>The aim of investment property research is to identify growth and emerging suburbs within cities that are affordable and target properties with a larger land component. For example, buying a house and land package in Brisbane in a growth suburb based on specific research is better than buying any unit in Sydney even though a journalist may choose to state that Sydney will outdo Brisbane. The reality is no person will be buying a whole city, so suburb comparison is far more precise. If you are only able to afford $450,000 then a comparison of what you could buy in Sydney, probably an older unit further out from the city, compared to a house and land package in Brisbane's middle ring suburbs is the value decision you need to consider. The decision to be based on a commercial basis and not on a emotional whim, or idea of where you may want to live yourself. As an investment property, you need to be return driven. If it is a home, that is a different story. </li>
<li>Every element of buying an investment property portfolio needs to be hand in glove with every other aspect of the strategy. After you have chosen a suitable property for example, it is important to look at the taxation position that applies to your income and family circumstances and then choose the appropriate financing vehicle that will suit your purposes. </li>
<li>You should always make sure that your finance is flexible enough to cater for not just your current purchase but also any planned future purchases as your strategy unfolds. Lines of credit may have more advantages over term loans and interest only packages. Whilst obtaining the cheapest finance is one important aspect, you still need to look at all options to ensure your strategy is not compromised further down the track. </li>
<li>Using a property specialist is a prudent way to plan your strategy. In the same way that you leave your tax problems in the hand of an experienced accountant, your property accumulation strategy needs to be planned in overall context and having all professional resources under one roof can be a big advantage.</li>
</ol>
Sam Khalil is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
Direct Property Network (DPN) provides clients with an end to end property investment solution from selecting the right property through to settlement and beyond.
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Five simple tips on the path to a fruitful property investment portfolio

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GUEST OBSERVATION
One of the most common questions asked by Australian property investors is when is the right time to get started in property investment?
Should you wait until you are more financially established or should you postpone buying your first home and buy an investment property instead?
These and many other questions face the first time property investor, but the fact is there are no simple answers to any question. The answer really lies in a more comprehensive approach to property investment as a whole. The fittest and healthiest members of our community do not get their advice out of magazines and newspaper articles. They consult medical experts, dietitians and other health-related professionals and put a plan in place that incorporates a healthy diet and regular exercise.
It is the same in the case of property investments. You should start by consulting experts in the field before you buy your first investment property. This may include a one-stop shop investment advisory service or consulting with a range of professionals including accountants, property strategists, solicitors, mortgage brokers and quantity surveyors. Collectively, these experts provide you with the full suite of products you need to make successful and profitable decisions.
To get down to the nitty-gritty however, it is impossible to pinpoint any time in history when purchasing property may or may not have been a good decision. The most important thing to consider is your personal circumstances, because whilst you might be able to afford to purchase a property at a certain time in the cycle, other investors may not be so fortunate. The decision is really based around your personal circumstances and priorities.
Some pundits say that the best time to buy property is when there is limited stock on the market and not many buyers. This is a simple case of supply and demand and any economic theory will tell you this is true. However, if you are not in a position to borrow sufficient funds or to have the comfort in terms of cash flow to service a loan in the absence of adequate rental income, then the circumstances are certainly not right for you.
That's why it is always important to take professional advice at any stage of the market cycle to ensure that you are in the best position to proceed with the purchase. The best financial plans lay out a long-term strategy with constant reviews so that adjustments can be made for psychical economic conditions as they develop. There is no point having a 'purchase at any price' mentality simply because you think it is a good idea; you should only proceed when you have sound professional advice to back you up, coupled with independent research. It is not just about when you buy, but more importantly where and what you buy.
You can buy an investment property at any time and make a profit, over a reasonable time frame, considering you take care of what and where you buy.
Never try to second-guess what the market will be doing in the future. Base your property investment decisions upon well researched professional advice and be prepared to adapt your strategy to suit changing circumstances including your own as well as what's happening on the world stage.
Sam Khalil is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
Direct Property Network (DPN) provides clients with an end to end property investment solution from selecting the right property through to settlement and beyond.
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How do I know it's the right time to start investing in property?

ASX-listed developer Cedar Woods is progressing its plans for its Southbank arts precinct site.&nbsp;

The developer has filed plans, which are now with the&nbsp;Department of Transport and Planning, for a new 20-level tower at&nbsp;<a href="https://www.apartments.com.au/new-apartments/141-151-sturt-street-southbank-vic-3006">141–151 Sturt Street</a>, a 2,718 sqm block opposite the Habitat Filter sculpture.

The proposal seeks to demolish the two-level&nbsp;commercial building, including a small supermarket and medical tenancies, and create a new building with 180 apartments and a focus on an&nbsp;active public realm and arts integration.

&nbsp;

<img alt="Southbank site" data-entity-type="file" data-entity-uuid="76a72db6-91ef-43ae-827d-a9cfa72893d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Site.png?VersionId=DZgtB4K6BswVh0QtCs3iLjXaLp0CbcEb" />

&nbsp;

There will be a full mix of apartment configurations, including 28 studio apartments, 16 one-bedroom, 104 two-bedroom, and 32 three-bedroom units.

Retail, creative arts, and residential amenity functions are integrated across the lower levels. A food and drink tenancy is planned to front Dodds Street, while a retail tenancy fronting Sturt Street will be accessed via an elevated walkway. The first floor includes a substantial 734 sqm creative arts space, envisioned to support Melbourne’s growing cultural and digital industries.

Architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has put together the plans. In their&nbsp;Urban Design Report they highlighted the project’s ambition to embed itself within Southbank’s evolving cultural fabric.

A central feature of the design is a through-block link connecting Sturt and Dodds Streets, landscaped with native plantings and embedded with universal access ramps.

“The ramp has been thoughtfully integrated as the primary access point, ensuring universal accessibility for all users,” the report noted, with the link offering “a direct response to the urban planning scheme of creating more green spaces within our communities”.

<img alt="Southbank podium" data-entity-type="file" data-entity-uuid="4d24b1b2-d69c-4a11-a11d-ec6df432221c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium.png?VersionId=geWoJyZDmPSLODZ_.PNJ0LvpOmyyCdpo" />

The building’s podium form responds to the mandatory height limits along Dodds Street and maintains a fine-grain interface to adjoining developments. Above the podium, the tower is articulated with recessed balconies and a focus on views toward the CBD and surrounding arts institutions. A communal rooftop recreation deck and indoor lounge are positioned on level four, adjoining seven apartments and providing over 900 sqm of resident amenity space.

Vehicle access and loading will be provided via Dodds Street, with 155 resident car spaces located across two basement levels and the first three above-ground floors. Bicycle storage is more generous, with 226 spaces distributed across resident, staff and visitor needs.

Rothelowman describes the architecture as “humanist,” with ground-level interfaces designed to encourage social interaction and provide a dignified entry for both residents and passers-by. “All street interfaces are crafted to invite and nurture human connections,” the design report states. “The façade transitions to a human scale, providing an approachable and engaging streetscape”.

Cedar Woods, while well-known for its large communities it develops outside of Australia's capital cities, they have recently developed in Melbourne's inner-ring before. They are approaching completion at <a href="https://www.apartments.com.au/new-townhouses/88-leveson-north-melbourne-88-leveson-street-north-melbourne-vic-3051">88 Leveson</a>, just 15 townhouses in the heart of North Melbourne.

Joel Robinson

Cedar Woods progresses with new apartment plans in Southbank arts precinct

Brisbane developers Core Property Partners and Vector Property Australia has teamed up for Brisbane's newest apartment development.

The duo identified <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as their preferred suburb, on the fringe of the Gabba Precinct, where they've just revealed BANKSII, 72 apartments opposite Raymond Park.

[smartcode_project:default project_id=136432 project_image_fid=5481]

The one-, two-, and three-bedroom apartments will sit in a glass-wrapped building that will also feature a rooftop with an&nbsp;infinity-edge pool, a BBQ area and alfresco dining spaces, sun lounges, and a sauna, as well as a resident-only gym and a ground-floor cafe.

Rhett Williams, Director of Vector Property Australia, said the project will lift the quality of the East Brisbane community and set a new benchmark.

"In Brisbane’s current property landscape, <a href="https://www.apartments.com.au/new-apartments/banksii-east-brisbane-169-wellington-road-east-brisbane-qld-4169">BANKSII</a> stands out through its emphasis on lifestyle-oriented living, connectivity and sophisticated design," Williams says.

[smartcode_project:default project_id=136432 project_image_fid=5479]

The 10-level building has been designed by MAS Architecture. Their designs were inspired by the native Banksia flower, with the architecture and interiors reflecting the organic symmetry of its namesake flora. MAS has interpreted this throughout the building’s curved form, façade detailing and interior palette.&nbsp;

The building’s flowing geometry and natural tones are complemented by large balconies and floor-to-ceiling glazing, maximising cross-breezes, daylight and views over the city, parklands and river.

“Having a strong narrative for a building helps us architecturally,” MAS noted. "We can choose colours that come off that species of flowers. The trunk and the trees and the flower elements all are now visible in our joinery on the inside and in our architectural finishes on the outside."

[smartcode_project:default project_id=136432 project_image_fid=5485]

Apartments will feature timber floors, soft porcelain tiles, brushed bronze fittings, and stone benchtops with warm veining.&nbsp;

Kitchens feature premium SMEG appliances and generous storage, while bathrooms have been designed as calming retreats with curved cabinetry and twin sinks in the master ensuites.

The building will feature a suite of rooftop and wellness amenities. Residents will have access to an infinity-edge pool, BBQ and alfresco dining areas, sun lounges and a rooftop sauna.&nbsp;

A residents-only gym will be located on the podium level, while a ground-floor café and landscaped laneway will further activate the site and improve neighbourhood connectivity.

[smartcode_project:default project_id=136432 project_image_fid=5488]

BANKSII will rise from a prime Wellington Road site, with the building oriented to overlook the adjacent Raymond Park and take in extensive city views. It is also on the doorstep of key&nbsp;lifestyle infrastructure, including the future Kangaroo Point Green Bridge, The Gabba stadium, and the planned Brisbane Live arena.&nbsp;

Public transport options, including ferry, bus and rail - including the future Cross River Rail Woolloongabba station - are all nearby, supporting a car-optional lifestyle just minutes from the CBD.

Williams said the team spent over a year searching for the ideal site before securing this location.

"We were attracted to <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as it is a vibrant and growing community that offers a perfect balance of urban convenience and natural beauty with the parklands and river on our doorstep.”

The project is part of the broader Woolloongabba Games precinct, which is undergoing significant investment in the lead-up to the 2032 Brisbane Olympics. This urban renewal, coupled with infrastructure upgrades, is expected to enhance long-term liveability and capital growth in the area.

Given the wide max of configurations, BANKSII is expected to suit everyone from first home buyers and investors to families and downsizers.

[smartcode_project_cta:default project_id=136432]

BANKSII sales launch in booming East Brisbane apartment market

The Minns Labor Government will deliver Sydney’s first new heavy rail station in more than a decade – enabling up to 10,000 new homes by rezoning land around Woollahra and Edgecliff stations, right next to the CBD, to tackle the housing crisis and rebalance growth across the city.

Recent reports by the NSW Productivity Commission have warned that Sydney is losing twice as many young people as it is gaining, while also finding that Woollahra is the most feasible Local Government Area (LGA) in New South Wales to build new housing.

Despite this, housing approvals in Woollahra consistently lag well behind other LGAs, and the population has declined by 11 per cent over the past 50 years while Greater Sydney as a whole has grown by 74 per cent.

The new station that will be an eight-minute trip from Sydney CBD, will be located on the Eastern Suburbs train line in Woollahra, where a station build was started in the 1970s but never completed.

To enable the delivery of new homes the NSW Government will lead a rezoning of Woollahra and Edgecliff stations similar to other state led rezonings to allow additional homes to be built around the stations.

Affordable housing will also make up a proportion of development on the site with the final amount of affordable housing required, to be determined as part of the rezoning process.

The area surrounding the new station is within walking distance of major green and recreational space including Cooper, Trumper, Rushcutters Bay and Centennial Parks.

The Eastern Suburbs train line between Bondi Junction and Sydney CBD also has the lowest passenger usage rates during the AM peak of any line on the Sydney network, with only 43 per cent of operating capacity during the AM peak currently being utilised by passengers.

Sydney Water and Infrastructure NSW have confirmed there is capacity in the water and wastewater systems to accommodate the proposed 10,000 dwellings without major upgrades.

The rezoning is expected to take around two years and will further support the Government’s housing targets that rebalance the delivery of new homes around existing infrastructure.

&nbsp;

&nbsp;

Next stop Woollahra train station - delivering up to 10,000 new homes in the heart of Sydney

<section data-element_type="section" data-id="b086848">
Fresh off completing its mixed-use Malvern project Malvern Collective, Kokoda Property Group has acquired a prime site on Richmond's Bridge Road.

They are planning a mid-rise residential development with&nbsp;integrated wellness amenities and a vibrant ground-floor retail and dining offering.

The site, at&nbsp;487–495 Bridge Road, spans&nbsp;1,650 sqm with 50 metres of dual frontage across Bridge Road and Palmer Street. It is currently leased to Adairs, and has a large retail building and 20 onsite car parks.
</section>

<section data-element_type="section" data-id="534a164">
Kokoda Property Group’s acquisition forms part of a broader phase of growth in Melbourne, building on momentum from the completion of Malvern Collective and the recent purchase of a Burnley Street site for the developer’s first commercial project.&nbsp;

Mark Stevens, Kokoda Property Group’s Founder and Managing Director, said that the company’s Bridge Road site acquisition signals confidence in a city that is re-accelerating.

“Melbourne is regaining momentum,"&nbsp;Stevens said.

"After a cautious period post-COVID, we’re seeing buyer sentiment stabilise and capital leaning back into well-located, quality projects. Victoria now benefits from deep builder capacity and competitive delivery pricing, creating a rare opportunity to bring design-led inner-city developments to market without compromising on craftsmanship.

“Richmond ticks all the boxes for us – connectivity, culture and everyday amenity – making Bridge Road the perfect address for an amenity-rich, multi-use development."

<img alt="Kokoda" data-entity-type="file" data-entity-uuid="9a8de51d-8092-480a-8b7e-e081816692c2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-29%20at%208.54.27%E2%80%AFAM.png?VersionId=VRHpV5.6beOu2cieKHWrw3ErMPuVOAuj" />

Envisioned as an “urban lantern” the building will bring a distinctive new presence to Bridge Road with a sculptural retail frontage, designed to honour the street’s heritage character while contributing to its renewal.

Stevens said the acquisition reflects the developer’s commitment to design-led addresses in Melbourne’s inner city.

“Drawing on Richmond’s rich heritage and dynamic character, we’ve envisioned a contemporary building that respects the past while elevating the way people live today. With dual frontages, curated ground-floor spaces, and a focus on wellness, this project will contribute to the neighbourhood’s evolution, appealing to both downsizers and a new generation of professionals.”

Kokoda Property will now progress concept design ahead of a future planning process.
</section>

Mark Stevens, Kokoda Property Group’s Founder and Managing Director, said that the company’s Bridge Road site acquisition signals confidence in a city that is re-accelerating

First look: Kokoda secures Richmond site for new apartment development

Gold Coast developer Drew Group is fast approaching sell-out at its Main Beach apartment development, Lagoon Main Beach.

In the last nine months, Drew Group and sales partner Pezet Matheson have secured 31 sales totalling over $75 million, as the two-tower development advances towards completion under the expert eye of Hutchinson Builders.

“Today's buyers are more discerning than ever," Drew Group Managing Director Jon Drew says.

"It's essential to provide something truly unique that sets a development apart, and we believe Lagoon has achieved just that."

[smartcode_project:default project_id=108747 project_image_fid=193023]

Just over 50 per cent of recent&nbsp;sales have been to local buyers, reflecting the deep trust and connection within the Gold Coast community that Drew Group has developed over the years.

Demand has been particularly robust at the top end, with two of the three exclusive penthouses already sold, alongside five sub-penthouses. Only seven apartments remain in Lagoon's Signature Series — one&nbsp;penthouse and six sub-penthouses.

[smartcode_project:default project_id=108747 project_image_fid=284864]

Drew Group has also removed the much-maligned sunset clause from all contracts at Lagoon. The sunset clause — although rarely invoked, yet on occasion known to have been — allows developers to take back contracts on apartments should the building not be completed within the timeframe specified in the contract.

Pezet Matheson Co-Director Jayde Pezet says the fact Lagoon is&nbsp;within a year of completion, and has no sunset clause in contracts, provides certainty to buyers.

"This is paramount in the current market," Pezet says.

Drew Group has committed to providing the highest level of security inclusions — none more impressive than the Ubiquity Access Control System, a cutting-edge facial recognition technology that is one of the most state-of-the-art keyless entry systems on the market.

[smartcode_project:default project_id=108747 project_image_fid=190743]

One of the biggest drawcards to Lagoon has been the size of the apartments.

"It is unlikely that any future new development in Main Beach will be able to offer such spacious living at this price point," Drew says.

"Today's buyers are more discerning than ever, carefully evaluating amenities like gyms, spas, workspaces, and beach lockers, along with quality finishes. It's essential to provide something truly unique that sets a development apart, and we believe Lagoon has achieved just that."

Lagoon is set to complete construction in mid-2026.

[smartcode_project_cta:default project_id=108747]

Sam Khalil

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