Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Joel Robinson

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

A local downsizer has splashed $6.5 million on a penthouse in Perifa's Alex &amp; Willow development in Crows Nest. 
&nbsp; 
The purchaser sold their long-held family home in the area before embarking on a six-month search for the right apartment. After inspecting a range of options across the Lower North Shore, the buyer returned to <a href="https://www.apartments.com.au/new-apartments/alex-willow-crows-nest-82-90-alexander-street-crows-nest-nsw-2065">Alex &amp; Willow</a>. 
&nbsp; 
The buyer profile reflects the project’s broader purchaser mix. <a>Alex &amp; Willow</a> has attracted predominantly local downsizers looking to transition from larger homes without compromising on space or quality, alongside a smaller cohort of upsizers and investors drawn to the project’s location and design credentials. 
&nbsp; 
The milestone sale comes as the project, developed by&nbsp;<a href="https://www.apartments.com.au/developers/perifa">Perifa</a>&nbsp;and delivered by <a href="https://www.apartments.com.au/builders/versatile-made-construction">Versatile Construction</a>, both part of Versatile Group, reaches 60 per cent sold.

[smartcode_project:default project_id=6680 project_image_fid=371325] 
&nbsp; 
Eddie Mansour, Managing Partner of <a href="https://www.apartments.com.au/project-marketer/ray-white-projects">Ray White Projects</a>, said the result demonstrates not only a headline price but also depth of demand. 
&nbsp; 
“This is an exceptional outcome and a clear reflection of sustained buyer demand for premium, well-located downsizer product,” Mansour said.

“We’re seeing a consistent pattern of local homeowners selling family residences and reinvesting into high-quality apartments that allow them to remain within their community. Alex &amp; Willow has resonated strongly with this group because it offers genuine scale, thoughtful design and immediate proximity to the village.” 
&nbsp; 
The sale reflects a broader and consistent trend of local downsizers actively seeking high-quality, low-maintenance residences close to established village centres. Agents report that demand for this product type has remained resilient, particularly where developments offer a rare combination of scale, design quality and walkable amenity. 
&nbsp;&nbsp; 
Fabrizio Perilli, Managing Director of Perifa and Versatile Group, said the sale marks a defining moment for the project. 
&nbsp; 
“The penthouse sale is a strong endorsement of the quality we have delivered, alongside our partners, and the clear demand from local downsizers for premium, boutique residences in this location,” Perilli said.&nbsp; 
&nbsp; 
“Most importantly, we’re proud to see the Alex &amp; Willow community beginning to take shape. As we move closer to completion, we’re looking forward to welcoming residents and seeing the project come to life.”&nbsp;

[smartcode_project:default project_id=6680 project_image_fid=338516] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettleton Tribe</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>, Alex &amp; Willow is a boutique collection of generously sized two- and three-bedroom residences in the heart of Crows Nest village.&nbsp;

Completion is slated for early 2027.

[smartcode_project_cta:default project_id=6680]

Alex & Willow, Crows Nest penthouse sells off the plan for $6.5 million

Fresh from launching the first stage of its Wollongong precinct, <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, builder-developer Urban Property Group has unveiled plans for the next phase of the masterplanned community.

Now on public exhibition through the NSW Government's Housing Delivery Authority pathway is a State Significant Development Application for a further 657 homes on the prominent gateway site opposite Beaton Park.

The proposal comprises three buildings, including two build-to-sell towers rising 25 and 30 storeys, delivering 391 apartments, alongside a 12-storey co-living building with 266 residences, making it one of the largest co-living proposals currently planned in regional New South Wales.

Of the apartments proposed in the build-to-sell towers, the majority, 310, are two-bedroom dwellings. The balance comprises 44 one-bedroom apartments and 37 three-bedroom residences. Apartment sizes range from around 50 sqm for one-bedroom homes to approximately 90 sqm for three-bedroom apartments.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="19347059-1612-41a0-9c74-b86a657237f8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%2010.02.18%E2%80%AFAM.png?VersionId=sWXnaCcA.cIC6N8YT1dg5pJ2e1V3Z6z7" />

The submission says the proposal has evolved significantly from its original Housing Delivery Authority application following extensive consultation with the State Design Review Panel and Wollongong City Council.

The final scheme has been designed to align with the emerging vision for the Flinders Street Precinct, an area identified by Council as a future high-density mixed-use neighbourhood capable of accommodating substantial housing growth close to transport, employment and community infrastructure.

According to the design report prepared by COX Architecture, the development aims to "deliver a built outcome consistent with the future character of the Wollongong CBD while responding to the site's unique constraints and opportunities."

"Our vision for the next phase of the site evolution in Wollongong is grounded in three design pillars that guide the design response: place, natural environment and celebration," COX said.

"Inspired by its surroundings and grounded in the stories of place on Wodi Wodi Country, the design proposal acknowledges the established character of its setting while creating a unique and timeless identity that sits harmoniously within it.

"The design proposal responds to its specific site conditions, acknowledging the vegetation, climate, wind conditions and solar access of the site."

The architecture responds directly to the site's position between Wollongong's urban core and its natural landscape setting.

COX identified views towards Mount Keira and the Illawarra Escarpment as defining features of the site, while the upper levels of the towers will also capture expansive views across the city and out to the Pacific Ocean.

The design team has positioned the tallest buildings closer to the rail corridor, where overshadowing impacts can be better managed while establishing a landmark built form on the northern approach into the city.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="79580d5b-500c-4ebf-9629-797146a4a694" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.51.59%E2%80%AFAM.png?VersionId=WbTB1EKSG.KDfsfz0F3wp1QVa2oCMGR5" />

Urban Property Group secured the 11,000 sqm Smith Street site in 2022 and has since progressed plans for the broader Keira Place precinct.

Construction recently commenced on the first stage of Keira Place, which will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, alongside activated ground-floor retail and commercial space.

Urban Co-CEO Patrick Elias said the commencement of construction marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/groundbreaking-marks-start-of-construction-at-keira-place-in-wollongong-cbd">Groundbreaking marks start of construction at Keira Place in Wollongong CBD</a>

&nbsp;

&nbsp;

&nbsp;

Urban Property Group unveils trio of towers for next stage of new Wollongong precinct, Keira Place

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

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A home with great street appeal can be a joy to come home to and if you are thinking of selling, can add that WOW factor that has potential buyers hooked from the moment they see your home.

The good news is that there are heaps of DIY tasks that you can do for little or no cost. For a more substantial makeover, you can engage professionals which will involve some expense, but deliver spectacular results!

TIP 1 - <a href="/expert-insights/buying/how-to-spring-clean-your-home">Declutter</a> and tidy up

Remove damaged or rusted furniture and rubbish from the yard. Most local councils have annual junk pick-ups from your verge. Make sure you know when this is and clear your yard and shed at the same time!

TIP 2 - Clear the Letterbox

Ensure that your letterbox is regularly cleared. A letterbox with weather-beaten junk mail hanging out of it screams neglect and is very unappealing. 

TIP 3 - Trim and Prune

Trimming and pruning overgrown bushes is a great way to freshen up the yard. Check with your local council and find out when the next green verge collection is taking place in your area so that you can take the offcuts off your hands. 

TIP 4 - <a href="/expert-insights/buying/10-benefits-of-having-plants-in-the-house">Plant some blooms</a>

Planting fresh flowers makes everyone feel good! Spring is the perfect time to plant a few cheap and cheerful blooms such as Petunias and the kids can join in too. 

TIP 5 - Pressure clean hard surfaces

Driveways, paths and verandas get stained and look dull over time. Hire a Pressure Cleaner from your local equipment hire store. This will get rid of oil stains on the driveway and freshen up tired and dull paving. 

TIP 6 - Landscaping

Engage the services of a Landscape Architect/Gardener. They will have great ideas and water-wise recommendations for your garden. A popular trend is to liven up boring fence spaces with vertical gardens.

TIP 7 - Roof restoration

If your roof cover needs attention you have a few options to consider. Old tiled roofs can be completely replaced with a Colorbond tin roof and completely transform the look of a home. Otherwise, an old tiled roof can be restored. Replace cracked and damaged tiles and follow with a fresh spray coating. This is an affordable alternative to a complete replacement.

TIP 8 - External Render

If your home has unattractive face bricks that belong to a bygone era, consider rendering your home. Covering up the old and dated bricks can give your home a real lift. 

TIP 9 - Repainting the exterior of the home

A repaint of the external walls can lift the look of any home. But don’t just repaint in the same colour! Some of the cream and stone tones that were popular in the past are now out of style. If deciding on a colour leaves you scratching your head in confusion, engage the services of a colour consultant. 

In summary, the end result of <a href="/expert-insights/buying/decluttering-experts-share-effective-downsizing-advice-for-apartment-living">sprucing up your home</a> can give it the wow factor and street appeal that makes you beam with pride.
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jieyee_46282

8 Top Tips for increasing your Home’s Street Appeal

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Many of us have lived through economic uncertainty in our lifetime. That uncertainty comes in many levels for people at different stages of their lives. It could be when you were young and left home for the first time, trying to manage your money, paying rent, buying food, and enjoying the fun things in life. It might be the struggle to save for a deposit to purchase your first home or an investment property. It may not cause economic uncertainty, but it could be financially challenging saving while trying to continue to balance daily living expenses. 

Depending on your age you could have lived through and survived many financial crises and now they are just distant memories. Can you remember how you were affected by the Global Financial Crisis? You may not have been old enough to remember it. Then we had the impact of 9/11 on businesses. What about the Y2K bug when all the computers across the world were supposedly going to cease to work? We had the 1990 recession in Australia with the now-famous quote by Paul Keating, then the Treasurer of Australia:

<blockquote>
“The first thing to say is, the accounts do show that Australia is in a recession. The most important thing about that is that this is a recession that Australia had to have” – Treasurer Paul Keating, November 1990
</blockquote>

Going back to the early 20th century there was the Spanish Flu in 1918. Then the Great Depression in 1929, and the list goes on. 

However, after these hard times, came hope, then growth, and then we prospered.  We forgot about our pain. We survived and we moved forward. Now it is 2020, we are again in fight mode and facing an enemy we cannot see. Through this time there will be many that face economic hardship. There will be people that will struggle. There will be unemployment, loss and adversity. The effects will be felt by people in our communities, our neighbours, friends, business colleagues, or our family. 

On the other hand, there are many who will weather this period of uncertainty with minimum impact. They are employed in industries that haven’t slowed down through this pandemic, they continue to earn an income and life goes on. 

This is where confidence comes into play. If people have confidence, are in a financially sound position and have the foresight to purchase property in a slow market, over time they will find the current economic climate presents a great opportunity for investing in property. There are many great opportunities currently out there in the market, and these opportunities are better described as VALUE.

<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/silver-and-gold-coins-128867.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="387" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/silver-and-gold-coins-128867.jpg?itok=3LRN7Gl6" width="580"></a>

<figcaption> </figcaption></figure>This is what VALUE might look like. 

<ul>
<li>
Reduced pricing of properties

	<ul>
<li>This could be a discount on the purchase price and might be 5-10% </li>
	</ul>
</li>
	<li>
Cash Incentive
	<ul>
<li>A further incentive to buy at this time. This could be offset against the purchase price or a rebate on a settlement. </li>
	</ul>
</li>
	<li>
Rental guarantee if you are purchasing an investment property
	<ul>
<li>This should be at market rent or close to market rent. If you are offered a rental guarantee well above market yields in the area you are looking to invest in, then this could be a red flag to walk away. </li>
	</ul>
</li>
	<li>
Job Guarantee 
	<ul>
<li>If you lose your job over the duration of the COVID-19 lockdown, you might be able to have a clause in your contract that you can walk away from the purchase and receive a full deposit refund before settlement</li>
	</ul>
</li>
	<li>Stamp duty relief package from governments or developers</li>
	<li>
Turnkey property
	<ul>
<li>This means that there is nothing more to spend on the property. It is ready to move in – make sure it includes free blinds. </li>
	</ul>
</li>
	<li>
Furniture package for properties
	<ul>
<li>This may not be a good option in the current climate due to the downturn with national and international travel or limited people moving. This type of property might have higher vacancy periods.</li>
	</ul>
</li>
</ul>
The above may not be available for all properties on the market. But the time has come to negotiate and see what added VALUE you may be able to receive. Remember, completing your due diligence first is a must and don’t purchase on price alone. 

Lastly, a quote from Warren Buffet to ponder: “Price is what you pay. Value is what you get”.
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Finding value in property during an economic downturn

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Everyone is aware that there’s a bit of friendly (and sometimes not-so-friendly) generational rivalry going around between the Baby Boomers and the Millennials, with a lot of spicy debate around which generation faces the biggest number of issues. Millennials think Baby Boomers inadvertently set them up to fail – while Baby Boomers believe their younger counterparts are lazy, smashed-avo-loving layabouts. But just how true are either these assumptions, if at all?

How the generations compare

There are a few major differences between the upbringings and lifestyles of Baby Boomers and Millennials which create a clear distinction in their lived experiences. Take career paths, for example. Generally speaking, Baby Boomers were likely to leave school, gain employment, then remain in that job throughout their working career. Baby Boomers were definitely loyal, even if it was to their own detriment. Millennials, on the other hand, can enjoy something called the ‘gig economy’, which embraces freelancing, virtual positions and moving from job to job, seemingly at a whim. This freedom doesn’t create the same job stability and financial security that Baby Boomers enjoyed, but it lends itself more to expression of creativity and potentially higher levels of individual happiness.

Another example can be seen when we look at relationships and family. While high numbers of Baby Boomers were likely to be married and planning for kids by the time they were 25, Millennials are waiting much longer to lock it all down. Millennials have also been deemed more health-conscious than their older generational counterparts, putting more emphasis on productive daily habits and overall healthy living to achieve a healthy lifestyle. Furthermore, Millennials have been noted as a generation that undertakes more formal education compared to Baby Boomers.

But what about <a href="/new-townhouses">housing</a>?

Was it really harder for Baby Boomers to own their home?

When it comes to <a href="/guides/how-to-buy-a-house-in-2021-a-guide-for-first-time-home-buyers">buying a home</a>, Baby Boomers can often be heard saying they had it much harder. To determine whether this is true or not, let’s take a look at both situations. Back in the Baby Boomer home-buying era, around 30-40 years ago, they were dealing with a period where interest rates reached 17 percent, compared with rates of around 2-3 percent at the time of writing this article. At the same time, housing was much cheaper, with a median house price of $36,800 in Sydney, $32,900 in Melbourne and $26,275 in Brisbane.

To keep this relative, the average wage in 1975 was $7,600, compared to around $72,000 today. Over the years, as with all goods and services, the price of property has increased. Property moves in cycles, with boom and bust periods. According to statistics from the Reserve Bank of Australia, between the years of 2012 and 2017 in Sydney and Melbourne, property prices rose 75 percent and 58 percent, respectively – this was most definitely a growth period!

So Boomers had it easier – right?

Property prices were around the same as a new small car costs today. Surely, that means Baby Boomers were able to buy property more easily, doesn’t it? But before you arrive at that conclusion, another point of difference to consider is the <a href="/guides/how-much-should-you-spend-on-your-first-house-in-2020">income to price ratio</a>, which determines how high the price of a house is when compared to annual income (before tax). When we take a look back some twenty years, Tim Lawless, property analyst and head of research at CoreLogic, says “a typical ratio was around four and a half times”. That means the average house cost around 4.5 times the average salary.

Today, the ratio is generally around six and half and seven times – higher in Sydney. “Off that measure alone, it’s clear that getting into the market has become a bigger issue than it was,” Lawless says. This might be why the number of renters has been steadily increasing over the years, with a 2017 report published by the Committee for Economic Development of Australia (CEDA) revealing a rise of 22 percent in the number of renters aged between 25 and 34 years who rented, between 1982 and 2012.

Unfortunately for those out for blood in this debate, it seems that there is a relatively fair argument for both generations having either an easier or harder time in the housing market. Both age groups had their challenges to overcome – and property buyers of the future will have their own set of <a href="/expert-insights/buying/why-the-real-estate-industry-must-replace-fear-with-opportunity-during-the-covid-19-crisis">setbacks</a> to conquer. So, rather than directly comparing the two generations and debating about ‘who had it harder’, it’s best to view it as a level playing field.

Cross-generational understanding could encourage both generations to teach and learn from each other. And, realistically? It does not matter. Both generations had their own struggles in terms of property, in different ways. You can either complain about who has it harder, or start working on some strategies today to grow your own wealth through property investing.
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Millennials and Baby Boomers both claim they had it harder…

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Never in the 12 years as Managing Director of Xynergy Realty have I seen this many empty apartments in Melbourne. The lack of international and domestic tourists along with the reduction of international and interstate students living in the city whilst studying at Melbourne universities has caused inner-city apartment rents to plummet.

This has been the biggest decline in overseas tourists in Melbourne's history. Since I have been in Australia I’ve seen the Victorian government invest millions of dollars in tourism, growing the number of international tourists from 5 million in 2009 to 8.5 million in 2019 with the government planning to grow this to 15 million by 2026. Out of the 8.5 million tourists that come to Victoria every year, 3 million of them visit Melbourne as well as 10.8 million domestic tourists.

The real estate market has changed because of this. Due to the increased demand for short term accommodation, landlords can now rent out their apartments as AirBnBs. While this is riskier in terms of consistent cash flow, most investors see greater rental returns in such short-term rentals compared to leasing out long term for 12-months. Some buildings in suburbs like Melbourne CBD, Docklands and Southbank have close to 20% of buildings being used as short term accommodations and <a href="/news/airbnb-plans-to-help-house-100000-covid-19-responders">AirBnBs</a>. This has helped accommodate the increase of tourists in our city.

However, these short-term operators have now become a double-edge sword to many landlords. Most residential buildings in the CBD are not built to cater to commercial activities that short-term accommodation operators present to the buildings’ facilities and amenities. Most of these operators are signing <a href="/guides/covid-19-what-are-your-rights-as-a-tenant">Residential Tenancy Agreements</a> instead of Commercial Tenancy Agreements. Hence, landlords and other owners in the buildings have to cope with significantly higher maintenance costs that are built in their Owner Corporation’s levies and all other outgoings attached to the properties. Given the COVID-19 pandemic situation, the units that are leased out to short-term accommodation operators are the worst performers, since many of these operators are now completely unable to pay rent.

Over the years, students have made up a significantly large portion of tenants in Melbourne's CBD. Most of the students that choose to come to Melbourne come from large cities and they are perfectly fine with that style of living and because some of our largest universities like Melbourne Uni and RMIT are in the CBD, so students will much prefer to live close to Uni and benefit from all the conveniences of CBD living. The Australian Bureau of Statistics showed that only 307,500 foreign students entered the country in March 2020, a drop of 60% the lowest it's been since I came to Melbourne as a student in 1994.

Our nation's vacancy rate usually sits just below 2%. Now in April, it has risen to 2.6%, the highest it's been since the Global Financial Crisis in August 2009. According to figures from the Melbourne City Council, the rental vacancy rate in the CBD and surrounding areas has nearly tripled since last April from 1.9 percent to 5.4 percent, reaching its highest point in more than a decade.

A concern for a lot of landlords if they are unable to rent out their property in 6 months is that they might be hit with the Vacancy Tax, which was originally proposed for landlords who deliberately left their apartments empty. This is obviously not the case now and the tax should be abolished over this period of time.

In summary, with the shrinking number of short term accommodation and a drop in international students, there are <a href="/expert-insights/buying/why-now-is-the-best-time-to-be-a-rentvestor">plenty of empty apartments now competing for tenants</a>. We have seen landlords give huge discounts on rents just to lease out their property. This is great news if you are a tenant looking for an apartment in the city.
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Why Melbourne City rentals are so cheap - and why it's never a better time to be a renter

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One of the most important factors in building a <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">large investment portfolio</a> is generating deposits that allow you to continue purchasing. This aspect of property financing is often overlooked as many people spend their time focusing on how to maximise their servicing. However, having servicing capacity is only useful if you can also produce the deposit needed to purchase! Investors will often look to the equity in their existing portfolio to use as the deposits for new purchases. A good finance structure will play a large role in maximising the amount of equity you have access to. This in turn gives you the firepower to continue to grow your portfolio. 

Here are 2 financing tips for those thinking about using <a href="/guides/how-does-equity-work-in-property">equity </a>to grow a portfolio. Flexibility from the bank will help you release equity 
Some banks are much easier to deal with when it comes to releasing equity, while others can be a massive roadblock (particularly at higher LVRs). Banks will ask what you plan on doing with the equity release and how detailed an answer they require is key to getting your equity out.

If the lender determines that the equity is being released in order to take on more debt (say another loan with a different lender who has a more favourable servicing calculator), then they will have to add an estimate of this additional debt to your servicing. This often results in a servicing fail and it means that the lender won’t approve of the equity release.

Therefore, taking into consideration the process each lender uses to approve equity releases and what verification they require is an important consideration as part of lender selection. Having your loans with lenders who have favourable equity release policies is a great way to position your finances for future growth.

Valuations 
This perhaps is the greatest tool to finding equity that you didn’t think that was there. There are three main types of <a href="/guides/top-7-tips-on-how-to-value-a-house">valuations</a>: a computer estimate, a ‘kerbside’ valuation and a full valuation.

A computer estimate is allowed by some banks at an 80% LVR. Due to their automated nature , these estimates can produce better results than when a conservative valuer walks through the door. It typically helps when you have a property that isn’t as glamorous on the eye but has features that a computer can recognise is valuable. A computer can’t see your renovations, but it does know you’re land size, bedrooms, and comparable sales. 

Being with a lender that allows you to use this valuation tool is a great way to maximise your chances of being able to release equity. This is because you can always upgrade the valuation if you think the computer underestimated the value, but if you think it is favourable you can just accept the computer valuation and access the equity. 

Lenders that don’t allow computerised valuations will make you complete a ‘kerbside’ or full valuation as part of any equity release application. A ‘kerbside’ valuation is when a valuer drives by the property as makes a valuation assessment based on what they can see from the street. A full valuation involves an external and internal inspection by the valuer and a full report is issued outlining the estimated value. 

By choosing your lenders carefully, not only is it ensured that you are best placed to service a large portfolio, but you are also best placed to take advantage of different tools and techniques that savvy investors are using to get that little bit further.
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Build your deposits to grow a large investment portfolio

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Perhaps the most important financing consideration investors have is selecting the right lenders to partner with. Lenders can be viewed as your partner to success – without them, <a href="/guides/balancing-a-property-portfolio">building your portfolio</a> may not be possible.

When people choose between different lender options for a loan, it is usually a very simple thought process: ‘what loan best suits my requirements?’. However, it is natural human behaviour to prioritise the most immediate questions when thinking about these decisions, such as:

<ul>
<li>Which loan has the best rate at the time of signing?</li>
	<li>Which loan has the lowest application fee?</li>
	<li>Are there any promotional offers that take my fancy like rewards points?</li>
</ul>
But this is short term thinking. When you are looking to grow an investment portfolio over time, a loan should never be a ‘strait-jacket’. It’s important to remember as an investor, you’re looking for ways to have more options and possibilities in the future, not less! 

It is really about how to make sure you are always playing the long game – bringing your long-term goals front and centre in your decision making.  Property investing is a long-term game, and your financing strategy and lenders need to match up with these objectives.  Thinking ‘short term’ may ‘snooker’ you in the long run and stop you from achieving your goals.

Instead, the right questions investors should be asking is whether the lender and loan product can help you achieve your longer-term goal. Investors should be seeking to balance:

<ul>
<li>Lenders that suit a diversified lending structure that allows you to multiply your borrowing power over time; and</li>
	<li>Lenders that offer the flexibility and control you need to grow a portfolio over time.  </li>
	<li>To go into further detail on these points, you are looking for some key loan features that become very useful for those trying to grow a portfolio, which are often overlooked in favour of the short term considerations. </li>
</ul>
Lenders that can offer you the following features will pay dividends in the long run:

<ul>
<li>Favourable policies on releasing <a href="/guides/how-does-equity-work-in-property">equity</a>, allowing customers to access equity with ease.</li>
	<li>Easy access to valuations on your existing properties, ideally through a computerised valuation system where the lender can provide an instant valuation without the need for a full inspection.</li>
	<li>The ability to split loan accounts and maintain separate offset and redraw facilities.</li>
</ul>
These may not be the first things you think of when assessing a lender, but as your portfolio grows and your affairs become more complicated, these are powerful tools. I encourage any budding investors to keep these in mind at the start of your journey, it will leave you in a better position down the track.
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How investors looking to grow portfolios should select lenders

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With the effects of COVID-19 being felt across the world’s economies, the question for those in the property market is “<a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">what's going to be happening in the current financial climate and how is the market going to return, if it does?</a>”

Before COVID -19 hit Australia, we were already seeing a number of different jurisdictions in different states around the country making changes to their residential tenancy act, and some of them are still in that process right now. These changes are weighing in favour of the tenant rather than the landlord. 

A number of these agencies, councils and legislation changes basically advised landlords and residents that “they are currently in an embargo situation and need to work with each other to create an agreeable outcome.” 

Of course this ‘work it out yourselves’ approach has both good and bad outcomes for people on both sides of the property fence. One positive of this is that for the first time, many people who sat on the left side of society, the socialists, who have previously viewed landlords as capitalists who are just out to make money from them, have suddenly realised that this is not the case at all. The majority of property investors in Australia, only own one or maybe two properties, and those landlords are the ‘mum and dad’ investors who own these properties in an attempt to put their family in a better financial position. 

The outcome of that is the realisation is that really, we are all the same. 

In various stages and circumstances of life, we are all renters at one time or another. We are all landlords at other times, and we're all homeowners in yet other moments of life.  When it all boils down, there's not much that will change among us. 

What has been startling during these times of lockdown, job losses and property uncertainty is the research that showed only 30% of people have enough money to live on a week to week basis. But what does that really mean? Well, it means that in the property market, we need to ensure that we can get an outcome that has a positive benefit for everyone. 

At this point in the economy, we are in a position of having a 'V' shaped drop, and we are only halfway through. From the beginning of the announcements of Covid-19, before there were discussions or decisions about a social lockdown, I suggested that what we were going to see was a decrease in property prices, a decrease in the sentiment of the market and then a very quick return of market sentiment as well. So, to put it simply, in a V-shaped economy return there is a sharp drop and a sharp increase. This is similar to when the political landscape prepares for an election. When an election is announced six weeks out, there is a stall in the property market and the only properties that sell before an election are those where people are desperate to sell, giving rise to a buyer’s market. 

In a buyer's marketplace, the properties sell for a low price point or with conditions that are not in favour of the seller, which means as an overall median, we witness a drop in the marketplace. Then, as soon as an election is over and the results are announced, within a six-week period, there is a return of confidence in the marketplace, the sales go back into place and then we generally have things turn into a sellers’ market.

It isn’t possible to be 100% correct with predictions but, if we look at 18-year property cycles and the movements in Australia during 1960, 1972, 1989, 2004, 2008, 2015, experienced investors are able to see a pattern. If we experience a second wave of the pandemic, we will see what is called a 'W' in financial and property markets. This means a sharp drop, in the three months and if there is a second run at COVID-19, it will drop again and then go up again. 

I believe that one of the last things that the Australian government wants to see is for landlords to go under financially. Politicians don’t want to experience an economic landscape where there is no investment and no growth. To avoid this situation, the governments are going to be working towards ensuring that you, as an investor, have a better outcome moving forward, because if your tenant stopped paying rent, if you went broke, generally there would be a run for the banks. If you are mortgaged, they would have to foreclose on you and nobody wants that, especially not the government.

The banks wouldn't have enough money because the funds that they lent you actually came from the savings of those people who need it the most. Those are the ones that are most likely renting where they live and it’s their savings that are lent out to you as an investor. And so, it would be a catastrophic event if mortgages had to be foreclosed because with that run to the banks, they would remove that money out of the marketplace. 

Coming from many years of property investing experience, my opinion is that we will witness a fast return to a very strong marketplace. It is an opportunity to begin looking at those areas where you can buy right now for the prices that you could buy 10 years ago. The suggestion here is not buying new houses and land packages but about purchasing properties that have the potential for you to do something more to them. During this current period there is only one state in Australia where it is possible to buy properties at the prices you would find back in 2004. These are properties that are 15 years and older where you have the ability to buy, create cash-flow and ride the capital growth. 

Sitting on capital growth and hoping things are going to work for you isn’t the best way forward.  By researching marketplaces, looking at the 18-year cycle, and working out where you think the market is in that cycle, you can see if you can get the capital growth, and, more importantly, how you can manufacture growth. 

The way to get manual growth on the property is by doing something to increase your return from that property. You may think this means ‘just renovating’, but using the flipping strategy is not the best approach here. The wealth creation that you are going to see in your lifetime is from holding onto property, not by buying it, doing something to it and then selling it. But for you to be able to hold it, you need cash-flow. Creating that cash-flow from the actual property itself is much more than renovations. By looking at the possibilities that property can offer, you may be able to do a subdivision. Some questions to consider might include:

<ul>
<li>Is there potential for a secondary dwelling or can you have a duplex on that block? </li>
	<li>Can you create a duplex secondary dwelling or a type of house that has more potential? </li>
	<li>Can you use the unused and unknown policies around the country that allow you to transform those properties into micro-apartments that give people their own self-contained areas, their own kitchen, sitting area, lounge-room and bedroom and involve themselves in one communal area of the house? </li>
</ul>
Depending on which Australian state you're in, this may be a kitchen, a living room or a lounge room. It could be a number of different aspects that create one communal area. When you think about this as an investor, you will realise it's not a ratio return. If you compare the rents of a one, two, and four-bedroom house, if the one-bedroom house rents for $100, the two-bedroom doesn’t rent for $200 and the four-bedroom for $400. It’s much closer. Research from the Department of Health and Human Services shows that a four-bedroom medium-priced house across the metropolitan area for rent is $415 and a two-bedroom house is $400 so it's only a small difference. So, if you know you can create smaller micro-apartments in larger houses, you get a better outcome, and a way to create additional revenue for yourself.

If you can purchase property and cover your cash flow, you have a good outcome for the future and the financial ups and downs won’t impact you as greatly as if you had to find money to make up the shortfall each and every month.  If you can hold a property in Australia for longer than 10 years, you can double your equity and wealth. For example, if you bought in the peak of the last 50 years, around 1988 to '89 and kept that property with positive cash flow, by 2004 it would have tripled its value.

Right now, it’s the same. The property market is where you get cash flow and your wealth creation happens over a period of many years. Cash flow gives you your lifestyle. Equity gives you your wealth and an ability to leave your job and know that when you retire, you will have plenty of wealth in your name.
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Bounce back? Dip? Boom? Bust? What’s next?

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There is a lot of speculation in the media right now about property prices, clearance rates, the bottom of the market and basically everything else you can think of. In fact, if you have a pulse and a theory, you are probably going to get some airtime. Personally, I think there is more value for property investors in studying the longer-term trends and there are a few key trends that are likely to continue.

Just before the COVID-19 pandemic, we completed a four-year study on <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">investor behaviour</a>. The study took four lots of 1,000 property investors to chart any trends over the combined period and 4,000 residential properties. The data is a mix of unique information we gather from our investor clients through the course of completing our tax depreciation schedules, and from our own investigations, we found some interesting trends.

1. Investors are buying more new property than they ever have

It was not a huge surprise, but it is a trend that has some sizable implications. Even in the last week, we have had incentives pointed at new properties with the Government announcing cash incentives to build. One of the biggest changes that shifted investors towards new property was the May 2017 changes to tax depreciation legislation for plant and equipment items. Basically it meant that if you bought after May 2017, you’re no longer able to claim key deductions for items such as floor coverings, window furnishings, air conditioning and kitchen appliances unless you either buy a brand new property or buy the asset brand new. <a href="/guides/looking-to-buy-an-investment-property-top-3-things-you-must-do-online-first">New property</a> was already arguably more attractive from a tax deductions point of view, but this really shoved the incentives squarely towards the new property investor.

What did the data show? Well, the four-year increase in people buying a new property was up by 107.53%. As at the end of last calendar year, 49.6% of investors purchased a brand-new property. 

What are the implications I mentioned earlier? Well if there is one place that property spruikers tend to loiter, it is around brand new property. There is a whole industry dedicated to selling brand new property and that is not in itself a bad thing, but there’s potential for advisors to value the commission cheque over the value of the investment. It’s much easier to overpay for a new property than it is for an established one (though I’m sure you could manage it), and there are plenty of stories about investors trying to settle on their off-the-plan apartments that have fallen in value even before the development has finished construction. Generating new supply is good for the economy and the construction industry, but investors need to be careful that they are doing their due diligence and receiving the best advice.

2. A lot of property investors become investors <a href="/guides/how-to-invest-in-property-with-no-money">by accident</a>, and the numbers are increasing.

25.7% of investors occupied their property themselves, prior to turning it into an investment. Now that was once a complete surprise. I couldn’t have guessed that the number would be that high. For anyone not paying attention, that’s a quarter of residential investment properties were not investments from day one!

Ok, so now you’re thinking that it was too hasty for me to say “these people were accidental investors, after all this could have been their plan from the start. You’ve also got your investors that live in the property for 12 months to claim the first homeowner grant and then move out.” These are all great points, hypothetical reader voice in my own head, and in many ways you are correct. It’s not true to say that ALL these investors are accidental. However, you’d be surprised how little of them are living in their property for strategic reasons. For me, it all comes down to the magic little piece of extra data, that is, the average number of days these investors occupy their property for. If it was for a first homeowner grant, it would be close to 365, right? Well the average number of days was 1,537 last year. So that is, on average, of the quarter of all investors that occupy their property prior to renting it out, the average amount of time they spend living in it is 4.2 years! That figure for me says that there’s more to this story. Yes, there will be some first homeowner investors, yes there will be some tactical investors. However, there will also be some homeowners who want to upgrade and realise that their broker is telling them they don’t need to sell their old property to buy the new one. The percentage of people living in their property prior to rental has gone up just shy of 4% per year over the last 4 years, so it is increasing as well.

 What are the implications here? Well, it is important to consider whether that property is indeed ‘<a href="/guides/how-to-ensure-financial-return-on-your-property-investment-in-15-simple-steps">investment grade</a>’, but that’s a whole other story. The study found many other trends that provide some valuable insights for investors, but those are the two I’ll leave you with today. You can get a copy of the ‘MCG 1000 Assets Study’ <a href="https://1000assets.pages.ontraport.net/">here</a>.

To summarise, property investing is a game of patience and too many investors chase the hotspots or try and time the market. The same rules of investing pre pandemic are likely to hold true. That is that good quality assets with scarcity value will remain popular. If it was in demand before, it is likely to be again, so try and avoid the noise and read the long-term trends.
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2 Property investor trends that are likely to continue post pandemic

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Whether you just own a home, or you have an expansive <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">investment property</a> portfolio, you might like to consider opting for a Testamentary Trust Will.

A Testamentary Trust Will is a will that is only set up after you pass away and acts as a discretionary family trust. The trust has one or more people who hold and control the trust property (“the Trustee”) on behalf of a range of other persons who will benefit from the trust (“the Beneficiaries”). As it is discretionary, it is entirely up to the trustee to decide each year which one or more of the beneficiaries will receive any income generated by the trust assets, and who will receive the remaining assets when the trust eventually ends.

So what are the advantages of having a Testamentary Trust Will?

First, flexibility. A simple old-fashioned Will divides a deceased person’s assets (their “estate”) into fixed shares (for example, between their children in equal shares). However, this will also mean that their children will pay tax on any income generated by their inheritance, at their own marginal tax rate (which could be up to 45% plus 2% Medicare Levy). Now, suppose instead that each child was able to receive their inheritance in a Testamentary Trust. This would mean that they could allocate the income from their inheritance each year between themselves and/or other family members, such as their spouse and their own children. It also means that they could allocate the assets in their trust flexibly as well between the different beneficiaries of their trust, depending on their individual needs. This flexibility allows for changes in personal circumstances so that distributions of income and assets can be made to suit each child’s needs from time to time.

Second, said flexibility together with special tax concessions that apply to a Testamentary Trust income gives rise to significant taxation benefits. Under section 102AG of the Income Tax Assessment Act 1936, any income received by a minor beneficiary (under 18 years old) from a Testamentary Trust is treated as an “excepted trust income” and taxed as if that beneficiary were an adult. This means that adult tax rates apply so that the first $18,200 received by that beneficiary from the trust is tax-free every year. 

For example, say Homer’s Will leaves two investment units directly to his wife Marge. Say they earn a combined rent of $50,000pa. If Marge is on the top tax rate, she will pay tax and Medicare Levy of $23,500 just on that income. However, if, instead, Homer’s Will leaves the units to a Testamentary Trust for his wife and 3 kids, if the kids earn no other income then the $50,000 rent can be split equally between them and they pay no tax at all – a saving of $23,500 in just one year! If this situation continued for 10 years, the savings could add up to $235,000!

Third, by having assets held in a discretionary Testamentary Trust, each child’s inheritance is protected from lawsuits that might arise from their own business or profession, or from creditors if they fall on hard times. This is because it cannot be argued that the child owns the assets, as they are just one of the number of potential beneficiaries of the trust who only get anything if the trustee says so. This also means that the trust’s assets are protected if any of its beneficiaries file for bankruptcy. It can also provide meaningful protection of trust assets in the event of a familial relationship breakdown, with the Family Court often treating the Testamentary Trust as a financial resource instead of part of the matrimonial property that is available for division by the Court.

The only drawback of having a Testamentary Trust Will is that it is usually more expensive to draw up than a traditional Will. Additionally, each year after the trustor’s death, the trust has its own tax return to lodge, which may cost around $1,500 - $2,000 per year. But if the tax savings are anything like in the above example, the Testamentary Trust will more than pay for itself.
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Why every property investor should consider a testamentary trust will

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Among the many changes that may occur in society over the coming months and years is the potential for one of our most inefficient taxes to finally be axed. <a href="/guides/step-by-step-guide-to-placing-an-offer-on-a-house">Stamp duty</a> has long been the bane of most property owner’s existence with buyers having to fork out tens of thousands of additional dollars for the supposed “privilege” of purchasing a piece of real estate. 
Over the decades, as the price of property has increased, the percentage rate of stamp duty has generally stayed the same, which has resulted in the cost of stamp duty soaring. 
In some cases, in exclusive <a href="/developments/sydney-nsw">Sydney</a> suburbs, for example, buyers are stumping up more than $100,000 every time they purchase a home. 
In many other locations, you won’t get much change from $20,000 to $40,000, depending on the property’s price point. 

However, it appears that a new way of tax thinking is potentially on the way.

Time to heave-ho

Stamp duty has been identified by experts as an inefficient tax that needed to go for years, but successive governments failed to listen. 
Perhaps it all seemed a bit hard, with State Governments now overly reliant on stamp duty proceeds to fund their budgets. 
Of course, we’re all currently living through some of the most difficult days of our lives, which has created the ideal conditions for significant changes to how we live, including the taxes we pay. The push to stamp out stamp duty has already begun, with many experts suggesting now is the time to give it the heave-ho. 
The timing is perfect, because stamp duty has always slowed down the market, which we need to be firing to help reignite our economy. What I mean is that stamp duty always prevented more people from buying a property, because they simply couldn’t afford the additional fee to do so. 
Likewise, it stopped many other people from selling, which reduced supply, because they also didn’t want to have to pay stamp duty when they bought somewhere bigger or smaller or just something somewhere else.  
Removing stamp duty will also increase the deposits of investors and home buyers, which will give them more choice of where and what to buy. 
For example, in <a href="/developments/qld">Queensland</a>, the stamp duty on a $500,000 home is about $18,000. 
Say, a would-be buyer had saved $68,000, but no longer needed to pay stamp duty, their purchasing power has increased by a staggering 26 per cent. 
That means they could not only potentially buy a more appropriate property for their needs, but they could also simply buy sooner because they no longer have to stump up nearly $20,000 in tax.  

Of course, you can’t just remove a huge revenue stream and not replace it with something, which is likely to be land tax. 
How that will look in practice is not clear, but it’s likely to include an annual fee of a few hundred dollars for all property owners based on the rateable value of their land. 
That system would ultimately be more equitable whilst also providing the income that government’s need from year to year.  It’s clear that sometimes there needs to be a fresh perspective for big changes to occur, which is usually because of a change in political power. However, that is not the situation today. 
While all of us would prefer that <a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">coronavirus</a> never existed, its impact long-term on our society may also include leaving a legacy of a fairer taxation system for everyone.
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