Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

&nbsp;

Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

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?

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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Apartment living is popular and apartments are also sought after investments and today the location, price range and style of apartment you can buy is varied.
So I found myself asking, given all of the options available, what makes a good apartment?
So I spent a little time having a look at a number of chatroom and information sites where other people were asking just this question. I found potential buyers, investors, people looking to rent and parents looking to buy for their kids, asking this question, sharing their views, experiences and their concerns. What I found was a pattern of comments and advice that soon came down to about fourteen points.
Many of the points were common and we would recognise them here in Sydney, or indeed in any city. Some concerns like noise and parking and access to a local supermarket came up quite a few times.
I thought that I would share with you the results of my personal research, because I think it’s a good idea to keep reminding ourselves about what buyers, tenants and investors are looking for when they come into the market, no matter how robust conditions might currently be. Here are some of the key points I discovered.
Upfront, having apartments that were soundproof was a clear concern, and it’s not an uncommon point of discussion when taking a project to market. Clearly people want peace and quite when they are at home. Then came a comment about water pressure, it’s one that does not come up that frequently, but again it’s an important day to day issue. I do know of comments however in buildings with central hot water systems that it’s sometimes necessary to run taps for a few minutes to get hot water to the shower or kitchen sink – something to think about.
However in third place I found repeated comments about noise, street noise, traffic noise and pool noise, there’s been some discussion about noise pollution and as urban areas become far more concentrated clearly it’s a point of concern. Personal safety was also a high-priority issue, secure buildings and neighbourhoods are seen as a plus.
Now the next one did surprise me. Many people buying into an established building were trying to establish if there were short-term leases on offer. This was seen as a big negative and a possible indication of poor management. Most people believed that these buildings should be avoided. This a recent concern in Sydney and an issue that needs a lasting solution. Residential apartment buildings are clearly not hotels in the minds of the community.
Then I came to a very familiar topic and one that got lots of attention, parking. The topic was a concern not only about secure parking in particular buildings, but also easy access to visitor parking and easy on-street parking for deliveries or service calls. Day time parking was an issue in areas with clearways and the restrictions they impose on both residents and visitors. All of which is very familiar.
Ample storage was another pointer, storage that was clean, easy to access and not damp! Then I saw many comments about looking for buildings that allow pets, so that’s an area we seem to have right in Sydney, where most buildings welcome pets and it’s seen as a sensible policy.
The appearance and up-keep of an apartment building was covered in many comments, however the main concern was the ventilation of common areas, in particular the hallways leading to apartments. Buyers were unimpressed with cooking smells, stale air and artificial light. Clearly all common areas need to be fresh, with some natural light and good ventilation top of the list.
Talking about design, buildings and apartments that were well designed to cope with high summer temperatures, or cold winters were seen as a plus, environmental planning for shifting weather patterns is clearly on the minds of apartment dwellers. Nobody wants to come home to an apartment that feels like an oven in summer or a fridge in winter. Natural shading and cross ventilation is seen as a good option here by many chat participants.
Then I came to three common pointers regarding location. These were, look for apartments within walking distance of a supermarket, so there’s not always a need to drive. Be close to public transport or easy road and motorway access and the third golden rule of location for apartment dwellers was access to varied areas of open space, parks and wilderness.
But when looking to buy into or rent an apartment it was this last point that I thought was the most telling. That was to look for buildings that have clean and well ordered garbage rooms, because this means good management and above all thoughtful residents.
I found my chatroom visit very reassuring and helpful and worth sharing.
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pchittenden-eLqUUC8TWW

What makes a good apartment

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New South Wales home owners' rights to claim compensation for structural defects in their home will be reduced after legislative changes that will soon take effect.
Currently, the NSW government grants a six-year warranty for "structural defects" made by developers or builders. The warranty now only covers "major defects", which the government defines as those that cause "the inability to inhabit or use the building (or part of the building) for its intended purpose," or "the destruction of the building or any part of the building" or "a threat of collapse" of the building or any of its parts.
Some speculate that the downgraded scope of the warranty will result in only a two year warranty being granted for many defects which were previously covered for six years.
According to David Bannerman of Bannerman Lawyers, the changes will mean home owners will no longer be compensated for issues such as external cracking, reducing costs for the government.
"The relief to the Government coffers should be immediate, because it has taken the extraordinary step of making many of the amendments, including the change from 'structural' to 'major' defects, retrospective," claimed Bannerman.
The changes introduced in the Home Building Amendment Act 2014 are likely to come into effect on 1 December.
For home owners who wish to make claims for building defects made within the past six years, Bannerman advised they take the following action before 1 December:
<ol>
<li>Commence legal proceedings against the builder or developer responsible for their home, where there is an available action for breach of the warranties (i.e. building defects), or</li>
<li>Where the circumstances and policy terms allow, lodge a claim with the home owner's warranty insurer.</li>
</ol>
Source: Bannerman Lawyers
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jrichardson-uRX5hFdKfN

NSW home owners' dodgy construction claims curbed by government

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When purchasing an investment property, or even a home, it’s unlikely for many to consider what they’re going to do on the selling end. However, considering your future re-sale prospects and what you may need to do if your property plans go toe up is a worthwhile exercise.
It is this type of future planning that is what is known as your ‘exit strategy’. By thinking about what you will do if you lose your job, or the property doesn’t perform, you are not only preparing yourself for the worst case scenario but also providing yourself some significant forethought that may see you re-think your property purchase.
This term is often used to explain your “end game” – that is, where you hope to end up with property. For some, this may be selling down a whole portfolio and living off of the capital gains in retirement. However, an ‘exit strategy’ is more your emergency plan for when things are not going according to how you’d imagined.
Even if your mantra is “never sell” or you are purchasing the property to hand down to your children, an exit strategy is prudent.
Types of ‘exit strategy’
Selling up is likely the most common, although not the only, exit strategy available. There are some other far less likely outcomes that may be worth a consideration. For instance, for those who are renting and looking to buy an investment property nearby, moving into the property could be considered a form of exit strategy. You may also want to develop the block if this is a possibility.
There is also the possibility, particularly if you have a portfolio of properties, that you can restructure your loans, or that you can organise to sell specific properties but not others. It’s worth discussing the CGT implications with your accountant and to get your broker on board early on to discuss your loans. For example, you may be able to pay interest only for a period if you are finding it unaffordable.
For the purposes of this article, we will assume that your exit strategy is to sell.
You must consider the following:
<ul>
<li>How much of a loss can I stomach on this property? </li>
<li>In what situation would I sell up? (Falling market, loss of job, long-term vacancy, other opportunity becomes available) Knowing the signals can help you sell before it’s too late, and you can ensure that you have adequate protection that may stop you, or your family, needing to sell up. This could be life insurance, landlord’s insurance or even income protection.) </li>
<li>What are the costs associated with selling? </li>
<li>When am I likely to need to sell? </li>
<li>Are there many prospective buyers (and will there be in the future)? </li>
<li>How long is it likely to take to sell the home (days on market, current trends)?</li>
</ul>
While you don’t want to employ your exit strategy until you very much have to, remember, this is your last-resort option, if you haven’t adequately planned upfront or the unexpected occurs, then you may need to sell fast.
To protect yourself from rushing through a sale process, ensure you have built in the correct insurances and buffers to have a financial barrier that allows you to hold the property for a full selling campaign that is typical of the area. You will want to speak to an accountant, and potentially a financial planner, to help prepare yourself in case of a downturn. Some areas will take longer to sell than others, and if you’re falling in a downward spiralling market then you need to be prepared. 
Some investors even go so far as to consider “market indicators” that will dictate when it’s time to bring in the exit strategy. Perhaps it’s when the market gets too hot, or when a notable decrease in rent is noted. Each investor will differ in when they think the indicators suggest it’s time to sell, and some are happy to weather out a downturn in the cycle, confident that the future will bring an upturn. It’s up to you to determine your own comfort level.
The aim is to never be forced to put the exit strategy into place – hopefully by purchasing well and planning in advance – but if you forget this crucial stage then you may find yourself in a less than comfortable position.
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jduke-EHk3XBmHkn

What is an ‘exit strategy’? Investment terms explained

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The local <a href="https://www.smartcompany.com.au/growth/economy/25199-sorry-gerry--we-re-thriving-smart50-online-furniture-retailers-say-harvey-wrong-on-sector-s-sales">home furniture market</a> is set for a shake-up, with US furniture manufacturer Ashley Furniture reportedly set to open its first Australian store next month.
While Australian consumers can currently purchase Ashley Furniture products through Le Cornu, owned by ASX-listed Fantastic Holdings, <a href="https://www.afr.com/p/opinion/bums_on_seats_us_giant_ashley_furniture_7cltvePvh3hXKKl6BB1RNN">Fairfax reports</a> the first Australian standalone Ashley Furniture retail store will open in the Adelaide suburb of Gepps Cross in early December.
The store will be located in a homemaker centre that is already home to competitors Harvey Norman and Super Retail Group-owned BCF.
Ashley Furniture is owned by the Wanek family and is estimated to have a turnover of more than $US 3.5 billion ($4 billion) annually. The business was founded by 73-year-old billionaire Ronald Wanek, who is estimated to be worth $US1.97 billion by Forbes, and is currently led by son Todd Wanek.
Starting out as a sales company in 1945, Ashley Furniture merged with furniture manufacturer Arcadia Furniture in 1976. The first Ashley Furniture HomeStore retail outlet opened in Alaska in 1997 and by 2003, the company was operating 100 retail outlets in the US.
Ashley Furniture also operates stores in Canada, as well as South America and Asia, and according to Fairfax, is planning to open further stores around Australia.
The US company will be hoping to secure a sizeable slice of the Australian furniture retail market, which according to IBISWorld, is worth approximately $7.7 billion.
IBISWorld estimates some 4,364 business current operate in the local market, which includes retailers of household furniture, blinds, awnings and mattresses. Harvey Norman is estimated to hold the largest market share at 14%, followed by Steinhoff Asia Pacific Holdings, parent company of Freedom, Bay Leather Republic and Snooze, which controls 7.9%.
Senior IBISWorld analyst Stephen Gargano told SmartCompany existing players such as Harvey Norman and Freedom will likely be watching the movements of Ashley Furniture with a “keen eye” as the scale of the US company means it has the potential to “make a big splash” in the local market.
“There haven’t been any major new players enter the local market in the past five years, apart from <a href="https://www.smartcompany.com.au/growth/economy/27533-williams-sonoma-and-pottery-barn-opening-in-australia-six-things-you-can-learn-from-the-american-homewares-giant">Pottery Barn</a> which has a very small operation,” Gargano says.
Growth in the local furniture market has been flat over the past five years, with IBISWorld research pegging annual growth in the sector at just 0.1% between 2010 and 2015.
“Furniture retailers have clearly faced some strain over the past five years,” Gregano says.
“While those at the cheaper end of the market such as IKEA have benefitted substantial from people opting to purchase cheaper products, some of the more expensive retailers have suffered as people have put off expenditure or found cheaper items.”
“In the face of those conditions, the entrance of Ashley Furniture does pose a potential threat in the future.”
IBISWorld predicts a modest uptick in annual growth for the industry of 1.7% between 2015 and 2020 and Gregano says Ashley Furniture is well-placed to take advantage of that return to growth.
“It is one of the largest furniture retailers in the world, it has a well-established business model that has been very successful wherever they have opened up, [and] they stock quite a big range,” he says.
And while Ashley Furniture appears to be starting off small with just one retail outlet in Adelaide, Gregano says the retailer has already “tested the waters” through its relationship with Le Cornu which “points to the fact there is some demand for their products”.
SmartCompany contacted Ashley Furniture but did not receive a response prior to publication.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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ekeating-PWvazjYE25

US furniture giant to open first Australian store in December

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The Victorian Employers’ Chamber of Commerce and Industry (VECCI) has sold its East Melbourne headquarters to the Catholic Archdiocese of Melbourne.
The Archdiocese will look to house its central administration and various departments currently operating from multiple sites across Melbourne in the 11-level office building at 488 Albert Street property.
Industry House's heritage façade dates back to the first Baptist Chapel in the 1860s. The Catholic's new headquarters are next door to the Melbourne City Synagogue, the city’s oldest, which was consecrated in 1877.
No price has been revealed, but it was suggested during its marketing that it would fetch about $35 million if acquired as a pure office investment.
It also had the potential for alternative uses such as residential or as a hotel.
VECCI listed the property for sale after 12 years of ownership to facilitate plans to expand its operations in a CBD location.
“Of special appeal to the Archdiocese is the central location of the building so close to St. Patrick’s Cathedral and other nearby Catholic services including the Australian Catholic University, the Catholic Education Office, Catholic Theological College and St. Vincent’s Private and Public Hospitals,” Francis Moore, executive director administration of the Archdiocese of Melbourne said.
The building which has a lettable area of 6,822 square metre was sold by CBRE agents Kiran Pillai, Mark Wizel, Josh Rutman and Mark Coster.
The building is currently occupied by VECCI together with the Australian Catholic University and Medhealth.
After 12 years of ownership, VECCI chief executive Mark Stone said the proceeds from the sale will go toward the future acquisition of other property.
<img src="/images/2014/11/17/east%20melbourne%20nov%2017%20two.jpg" alt="">
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jchancellor-FAypfDUnLy

Catholic Church buys VECCI Industry House, East Melbourne offices

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GUEST OBSERVATION
You should always begin with the end in mind, in other words your desired outcome.
Once your journey begins, it’s easy to get distracted and stray from your path of systematic investment. Talk to your accountant about your initial setup and holding structure, as this will have an impact on the timing of your exit strategy.
Here are the four main exit strategies property investors:
<img src="/images/2014/07/04/yellow-one.jpg" alt="" style="float: left;"> Sell to pay off your debt
There are some pros and cons to this strategy. Many people feel the need to be debt free and their only financial goal is to pay off the family home.
From time to time you will hear people toss around the saying ‘work smarter, not harder’. But the majority of people don’t do this. Instead, they work hard to pay off the family home with income they earn from a job. And that is a big waste of time.
I realise most people have been conditioned to think this way by their parents and society as a whole. But that doesn’t make it a viable strategy. I’ll give you an example that shows why paying off the family home over 25 or 30 years with earned income is a bad strategy.
Let’s say you only ever buy three properties in your life.
Two well-chosen investment properties bought at $500,000 each and the family home also bought for $500,000.
<ul>
<li>Investment property value - $1,000,000</li>
<li>Family home value - $500,000</li>
<li>Total property value $1,500,000</li>
</ul>
For simplicity’s sake we’ll assume the total loan amount is also $1,500,000.
Remember tax breaks and rental income will help you fund most of the loan repayments.
As we know, well-chosen property will double in value about every seven to 10 years. That being the case, all you need to do to become debt free is to hold the investment properties through one full growth cycle and then sell them.
This means your two investment properties will increase in value from $1,000,000 to $2,000,000. If you were to sell the two investment properties at this point for $2,000,000 you would incur capital gains tax of 25% on the profit from the sales (25% rather than 50% as these properties will have been held for a period longer than 12 months). The remaining amount available to reduce debt after tax will be $1,750,000.
You can now pay back the $1,500,000 debt on the investment properties and your own home, leaving you with $250,000 to play with. I’m sure you’ll think of something to do with the extra money.
This is a simple example of what you can do, though it’s not the strategy I recommend.
Remember, if the rent is covering the repayments on your portfolio, then what you have is good debt. It’s worth examining whether your desire to reduce debt is due to societies deep-seated belief that all debt is bad.
<img src="/images/2014/07/04/yellow-two.jpg" alt="" style="float: left;"> Move one of your loans to principal and interest
Or keep it as interest only but start paying off the principal from your excess cash flow.
Once you pay the debt on this property, focus your increased cash flow on your remaining total debt.
Your interest repayments have been reduced because you’ve already paid off one house. This means you can pay off your next house in an even shorter timeframe.
This is called the domino effect.
As each loan or house is paid off, cash flow improves and subsequent loans are paid off at a faster rate until you are debt free. This is a reasonable strategy to use while you are still working and it means you can have a stress-free retirement with a solid income. To truly become debt free or to fast track your wealth building, you may need to use the selling exit strategy in conjunction with the domino effect.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
Neither of the above two strategies are my preferred options however. My choice is to:
<img src="/images/2014/07/04/yellow-three.jpg" alt="" style="float: left;">Make interest-only payments and live off the equity gains and increases in rental yield
This is relatively simple process. Once I’d achieved an increase in my portfolios value, I had my portfolio revalued. I then created a line of credit with the banks. This now allows me to use these funds to live off. This is an ideal situation, as long as your portfolio grows in value faster than your living expenses.
Most people want to know how they can eventually own their properties outright. But ask yourself this. If your portfolio is supporting your loan repayments and providing you with an adequate income, why do you need to pay them all off?
You could simply have your portfolio at a positive or neutral cash flow position and leave it to increase in value. Meanwhile you live off the equity gains. If the value of your portfolio increases on average at a faster rate than your yearly expenses, this may be a satisfactory strategy for you.
<img src="/images/2014/07/04/yellow-four.jpg" alt="" style="float: left;">Hand it over to your kids...
If they are smart enough to handle it. You can use this strategy in conjunction with the others I’ve mentioned. Simply transfer control of a portfolio that’s held in trust by appointing a new company director. The actual asset never changes hands so no tax is incurred. You are simply signing across control of the asset’s holding entity.
As with any exit strategy, the right ownership structure is very important.
Remember, your portfolio will be equity rich and positive in cash flow by the time you make an exit. An exit strategy is all about minimising tax and maximising returns.
Tips
<ul>
<li>Always begin with the end in mind.</li>
<li>Sell to pay off your debt.</li>
<li>The domino effect.</li>
<li>Live off the equity gains and rental yield.</li>
<li>Give your portfolio away.</li>
</ul>
About the author:
Cam McLellan is a successful property investor, author, blogger and the CEO of <a href="https://openwealthcreation.com.au/" target="_blank">Open Wealth Creation</a>.
Cam and his team at Open Wealth Creation provide end to end property investment services from education and inspiration, investment property selection, finance and loan structuring, risk assessment, settlement and portfolio management.
In addition to amassing a commercial and residential property portfolio, Cameron has built a group of companies listed five times in the BRW fast growth lists.
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cmclellan-94LEvYTinN

The four top exit strategies for property investors

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The ABS released its <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6291.0.55.001Main+Features1Oct%202014?OpenDocument" target="_blank" style="line-height: 1.3em;">Detailed Labour Force</a> data last Friday and it revealed a concerning and widening disparity between the prosperity of capital city Australia and our struggling regional centres. 
There's a bit of analysis to rip through here, so let's dive straight in and take a look in three short parts, commencing with...
Part 1 - Capital Cities are Dominating Employment Growth
In the two largest states, aggregate employment growth is now being driven entirely by the capital cities, although even therein the trend has softened. Note that regional New South Wales has barely added any employment at all in aggregate (on a net basis) for more than six and a half years. Regional Victoria has fared little better with total employment lower today than it was in January 2011.
Moreover, the trend in the regional employment has now clearly been down over the past couple of years.
<img src="https://4.bp.blogspot.com/-t7muucmvYVU/VGSM2K8AEDI/AAAAAAAARMs/HH1PjiQctoo/s640/CITY1.jpg">
There has only been one shining light in terms of regional jobs growth over the past half decade, that being regional Queensland.
Alas with the mining construction boom now unwinding total employment is now declining in regional Queensland too. The coal industry in particular <a href="https://petewargent.blogspot.co.uk/2014/09/pain-ahead-for-coal-mining-regions" target="_blank">looks vulnerable</a>.
The size of the total workforce in South Australia has been shrinking, with regional employment falling significantly over the past five years and total employment in Adelaide now some 20,000 lower than it was around 18 months ago, with the fallout from the decline of the automobile manufacture industry probably yet to be felt in full. 
Not a pretty picture for SA.
<img src="https://3.bp.blogspot.com/-9WGp3259SWI/VGSM3UapvoI/AAAAAAAARM4/kobxSzJCDtE/s640/CITY2.jpg">
Employment Over the Long Run
Now sure, property "advisors" are virtually all vested interests of one sort or another, and of course anyone can torture the figures until they confess.
One of the latest favourites has been the "strongest property market performer of the month!" proclamation, which is appallingly misleading.
But through presenting the full data sets across a range of timelines as we shall now undertake below leaves far less wriggle room for blatantly making nonsense up.
Indeed this is a perennial problem in the real estate commentary space - as if by a force of nature few advisors will ever highlight risks facing regions they own property in themselves, which is understandable enough, but not very helpful for would-be investors.
Personally I own property in regional Victoria (and regional Britain) but I'm hardly going to recommend that it's likely a great idea right now from a macro perspective given what the graphic below tells us. Any credibility I have would quite rightly be shot to pieces!
Logically, from my perspective, property investment is likely to entail significantly more risk where employment is falling or flailing, so to my mind there is a good deal of more elevated risk facing parts of Adelaide and Canberra, as well regional New South Wales, regional Victoria, regional Queensland, regional South Australia and regional Tasmania.
Why? Because employment is falling.
<img src="https://2.bp.blogspot.com/-0-9LeUbBcJ0/VGSM3ap3yTI/AAAAAAAARM0/nWVhzUWfxUI/s640/CITY3.jpg">
It should - but probably doesn't - go without saying that we also continue to believe there to a very high level of risk associated with mining and resources towns and regions in the current climate, and indeed, going forward as the mining construction boom implodes.
There is always some risk involved in buying property, that's a given. Our recommendation is that if you're going to do it, minimise the risks to the extent that this is possible through detailed research at both the macro and the micro level.
This article continues on the next page . Please click below. 
<hr class="system-pagebreak">
Part 2 - Unemployment Elevated and Rising in Regional Australia
As noted here previously, headline unemployment figures as reported by the ABS can be a relatively crude and volatile measure, failing to adequately capture discouraged workers or the underemployed, for example.
Nevertheless, it is worth a look at what is happening around the states, and the general picture is that unemployment is rising sharply in the regions. 
Sydney remains well placed with a headline unemployment rate of only 5.1% and a huge volume of dwelling and infrastructure construction in the pipeline, yet in regional New South Wales the unemployment rate trend has been up to now sit above 7%, which is much too high for comfort.
<img src="https://4.bp.blogspot.com/-PVbFLpPOLsA/VGSM5opf7qI/AAAAAAAARNU/tQn58uxZ65A/s640/UE1.jpg">
Below we have presented the three month moving average figures for Victoria, but we note that this month's ABS data is now beginning to record a sizeable disparity here too, with Melbourne's 6.3% unemployment rate now substantially lower than regional Victoria at 7.2%.
<img src="https://4.bp.blogspot.com/-8EdOMF2vFXg/VGSM57ZzaBI/AAAAAAAARNY/bkAeKyDCprI/s640/UE2.jpg">
The most concerning of all states, perhaps, is Queensland. While this is not yet fully reflected in the three month moving average figures, Brisbane's unemployment rate of 6.3% has diverged dramatically from regional unemployment which has leapt alarmingly to 7.7%. 
We have warned about parts of regional Queensland here repeatedly, particularly potential job losses in the coal mining sector.
<img src="https://1.bp.blogspot.com/-Hb7dG0tyP94/VGSM6W_bB4I/AAAAAAAARNg/2LUzTbuoiCw/s640/UE3.jpg">
With our chart pack on demographic statistics revealing a debilitating "brain drain" from South Australia in the form of net interstate migration, and the total size of the workforce having shrunk, it is perhaps unrealistic to expect elevated unemployment rates in the state's regions.
In fact the unemployment rate in regional South Australia has all but evaporated into thin air over the past month or two, but this is clearly not due to employment growth since there were more folk employed in regional South Australia way back in 2007 than there are today.
Adelaide's unemployment rate is too high for comfort at 6.9%.
<img src="https://2.bp.blogspot.com/-AIu_CkHVulk/VGSM7Dv8pxI/AAAAAAAARN0/3uO--Rc0QHA/s640/UE4.jpg">
Perth and WA still have the lowest headline unemployment rates respectively, although the trend in Perth has been steadily up since 2009 when the Western Australian capital city was effectively close to full employment.
<img src="https://3.bp.blogspot.com/-J906OHJ9T94/VGSM7Xs_5-I/AAAAAAAARNs/dhptShf1gaw/s640/UE5.jpg">
Finally the unemployment rate appears to have fallen in Hobart which is wonderful to see, but regional Tasmania has even managed to record a double digit unemployment rate reading in the past two months, which is less heartening.
<img src="https://1.bp.blogspot.com/-vY75mbXEkoY/VGSM7_Cf1TI/AAAAAAAARNw/uM_Lfx13d3U/s640/UE6.jpg">
Part 3 - The Casualisation of the Workforce
I think we are about done for today, but let's just acknowledge here the likely gradual casualisation of the workforce which must be a key consideration for property investors, particularly in the regional Australia where full-time employment in aggregate appears to be in an entrenched decline.
<img src="https://2.bp.blogspot.com/-nZ3BbpdoK-4/VGSM3y5_ieI/AAAAAAAARM8/wv4vlYYnme0/s640/FT1.jpg">
<img src="https://4.bp.blogspot.com/-tIM-PF6i-j4/VGSM41n1KyI/AAAAAAAARNI/-a1dGzz7Bp4/s640/FT2.jpg">
The Wrap
We've covered a lot of ground in a short space here, but the macro picture is that unemployment rates are trending up worryingly in regional Australia with jobs growth overwhelmingly focused in only the four largest capital cities.
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His latest book is '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' .
 
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pwargent-M4siyDbqQY

Employment gap between capital cities and regions becoming a gulf

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GUEST OBSERVATION
Whether it’s your first property or 21st, buying an investment property is a completely different process to purchasing a family home.
Buying the family home is an emotional decision-making process.
“Is the property big enough? Is that the part of town that we want to live? How does it fit in with the kids commute to school? Do we like it?”
These are all emotional questions which are very important in achieving the primary objective of buying the family home – the objective of being happy at home.
The primary objective of investing is different – to make money over the longer term. So, it’s important to totally remove all emotion from the purchase decision and to treat the asset not as a property, but a financial instrument.
The majority of investors purchase properties within 10 kilometres of where they live.  When asked why, these people often say “I know the market”. Knowing a local neighbourhood and knowing a property market are completely different. Buying locally for no other reason or with no other research than it is simply close to where we live, would be like a share investor saying “...Qantas is my preferred airline so I’ll invest in Qantas shares” – the shares have performed abysmally.
Australia is not one single property market; even Brisbane/Sydney/Melbourne have markets within their own market. With over 9.6 million properties in Australia, it is unlikely that you would be lucky enough to have ‘the best’ investment opportunity in your own neighbourhood.
Property investors would do well to adopt a business owner mindset to building and managing their property portfolio.  You’re in the business to make money through providing accommodation to people. You’ll make more money from the growth of your asset value over time than from the net rental income collected each year.
It is irrelevant whether or not an investment property resembles something that you would live in – that’s not the objective, that’s emotions clouding a financial decision. Remember that different people have different preferences for the cars they drive, the food they eat, the clothes they wear, and the type of property they live in.
It is important that an investment property has general demand from a broad market. Demand for accommodation is most influenced by affordability (the more people who can afford it, the higher demand) and where people work. Ongoing demand creates competition and price growth.
I’m not saying rush out and find the ugliest property, but we need to keep in mind that whilst an exceptionally well presented property may look pretty, it will also more often than not come with a larger price tag. The property must be structurally sound and presentable for potential tenants (that means neat, tidy and everything in working order).   
After a few years of tenants occupying a property, the shine will wear off the ‘pretty’ property with the even prettier price tag. We want a property looking its best when it comes time to sell – not when you are buying it.
Purchasing an investment property is a financial transaction; not an emotional one!
Bryan Loughnan is a buyer’s agent with <a href="https://www.propertyology.com.au/" target="_blank">Propertyology</a>. Bryan has a Bachelor of Applied Science majoring in property economics. 
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po-LsXgBTHBmX

Make sure property investing is a financial decision, not an emotional one

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GUEST OBSERVATION
Australia’s policies to cut greenhouse emissions have been shrouded in uncertainty over the past few months. The contentious <a href="https://theconversation.com/au/topics/renewable-energy-target-review" target="_blank">Renewable Energy Target review</a> and the swapping of the <a href="https://theconversation.com/search?q=carbon+tax+repeal" target="_blank">carbon price</a> for <a href="https://theconversation.com/au/topics/direct-action-plan" target="_blank">Direct Action</a> have garnered most of the headlines. But another policy, which has quietly been cutting emissions for the past four years, is now also under scrutiny.
The <a href="https://www.cbd.gov.au">Commercial Building Disclosure</a> (CBD) program is the latest federal environmental policy to be placed under review. The scheme encourages energy efficiency by requiring owners to detail whether their buildings are high or low energy users. It has strong support in both industry and <a href="https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22chamber%2Fhansardr%2Fa275472e-b699-46e7-ac29-bcf2fb8ee942%2F0165%22" target="_blank">politics</a>.
The review creates uncertainty about the future of a proven program which has been effective in improving energy efficiency.
The introduction of the CBD program in 2010 radically improved the visibility of building energy consumption and operating costs to prospective owners and tenants. This has created an effective market-based incentive to improve energy efficiency, without significant regulatory involvement or administrative overheads.
Improving the energy efficiency of existing buildings is one of the quickest, easiest and cheapest ways to cut greenhouse emissions. Some 85% of Australia’s buildings were built before energy-efficiency regulations were introduced, and turnover is slow: just 1-3% of buildings are replaced each year. Commercial buildings account for about 10% of Australia’s greenhouse emissions.
Cutting emissions saves money as well. The Intergovernmental Panel on Climate Change <a href="https://report.mitigation2014.org/drafts/final-draft-postplenary/ipcc_wg3_ar5_final-draft_postplenary_chapter9.pdf" target="_blank">reports that</a> cutting emissions in the building sector by 30% would have net economic benefits. In Australia, commercial building retrofitting is among the most economically attractive ways to reduce emissions.
How does the CBD program work?
The CBD program, also known as “mandatory disclosure”, encourages commercial building managers to drive emissions down. The scheme requires the disclosure of energy efficiency information on a building whenever a commercial office space larger than 2,000 square metres is offered for sale or lease. This includes giving the building a star rating (under a scheme called <a href="https://www.nabers.gov.au/public/WebPages/ContentStandard.aspx?module=10&amp;template=3&amp;id=5&amp;include=HowNabersWorks.htm&amp;side=factsheets.htm" target="_blank">NABERS</a>), detailing the efficiency of its lighting, and making recommendations for further improvements.
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/64431/width668/vpfdgmzy-1415838189.jpg" alt="">
Example of the signage required for compliance with CBD obligations Australian Government Department of Industry
This empowers potential tenants or buyers to choose more efficient buildings, and thus creates market pressure for owners to improve their energy efficiency. Since the announcement of the program, the average star rating <a href="https://cbd.gov.au/files/files//IPD-Department%20Of%20Industry%20NABERS%20Energy%20Office%20Market%20Analysis%20Q4%202013.pdf" target="_blank">has jumped</a> from 3.3 to 4.1, while the amount of floor area covered by the NABERS rating scheme has almost doubled.
Individual buildings rated more than once whilst CBD has been in operation have <a href="https://www.nabers.gov.au/AnnualReport/2010-14-cbd-statistics" target="_blank">reduced their energy</a> use by an average of 8.6%. This would deliver an almost 1% reduction in Australia’s total greenhouse emissions if implemented across the entire commercial building stock.
The program has been particularly effective at targeting smaller, poorer-performing buildings, in contrast to flagship office buildings where being green is already a key consideration. Compared with <a href="https://www.nabers.gov.au/AnnualReport/index" target="_blank">other schemes</a> targeting this sector the market-based CBD program has been a huge success.
This article continues on the next page. Please click below.
<hr class="system-pagebreak">
So why review the scheme?
The CBD program has <a href="https://www.propertyobserver.com.au/https://www.thefifthestate.com.au/politics/government/cbd-program-up-for-review-and-axing/67608" target="_blank">strong support</a> from both the property and sustainability industries, including the companies that work to retrofit old buildings. The Green Building Council of Australia has <a href="https://www.gbca.org.au/uploads/180/35252/GBCA%20Pre-Budget%20submission%20to%202014-15%20Federal%20Budget%20FINAL%20310114.pdf" target="_blank">singled out the scheme</a> as playing an important role in raising awareness and setting minimum standards for energy efficiency.
The <a href="https://cbd.gov.au/overview-of-the-program/cbd-review-201415/terms-of-reference" target="_blank">review</a> will be carried out by ACIL Allen, the company that also provided modelling for the controversia<a href="https://theconversation.com/au/topics/renewable-energy-target" target="_blank">l Renewable Energy Target Review</a>. It will advise on whether the scheme should continue or be scrapped, but will also be free to make broader recommendations that it be broadened out to include smaller buildings or non-commercial properties. This wide remit has <a href="https://www.propertyobserver.com.au/https://www.thefifthestate.com.au/business/trends/behind-the-lines-in-energy-efficiency-land/68141" target="_blank">already been blamed</a> for creating damaging uncertainty in the energy-efficiency industry.
Meanwhile, the federal government has outlined a method for <a href="https://www.environment.gov.au/system/files/pages/a6d1ee7d-2e4d-42b2-b9c8-43a5564c2302/files/commercial-buildings-determination.pdf" target="_blank">including commercial building emissions reductions in the Carbon Farming Initiative</a>, as part of the newly approved Direct Action plan. The proposed method uses the NABERS star rating of a building as a measure of energy consumption.
In some ways the CBD program would be a natural fit with the proposed method. A building owner required to get a star rating under mandatory disclosure could potentially then bid for Direct Action funding to improve it. But Direct Action, which is focused primarily on large projects, requires bidders to achieve minimum emissions reductions of 2,000 tonnes of carbon dioxide per year – 10 times larger than the level <a href="https://www.environment.gov.au/submissions/emissions-reduction/green-paper/263-property-council-of-australia.pdf" target="_blank">advocated for</a> by the Property Council of Australia.
This means that an average commercial building attempting to cut its energy use by a very ambitious 30% would need to have a floor area of at least 18,000 sq m to be eligible for Direct Action. This would exclude almost 80% of office buildings, unless the savings from various different buildings were lumped together to form a bigger project.
It seems unlikely that the CBD program will be entirely scrapped, particularly as it has proved to be effective in cutting emissions without direct government subsidies. Its alignment with Direct Action plan also further strengthens the case for the CBD to be retained in its current form.
But there’s a danger that the large minimum emissions reductions required for Direct Action funding and ongoing policy uncertainty will act as barriers to efficiency improvements being made in much of the commercial building sector.
Daniel Daly is a PhD candidate at the Sustainable Buildings Research Centre at University of Wollongong. He is a current member of The Greens.
Paul Cooper is professor and director of the Sustainable Buildings Research Centre (SBRC) at University of Wollongong.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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Green building scheme review adds yet more policy uncertainty

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Our clients Lorraine and Steven live in Sydney and are active property investors.
Both are very busy professionals with a young family. Steven is a medical specialist and on call all hours of the night and Lorraine a solicitor with a young toddler. 
We located a dual occupancy site for them in the City of Maitland in the Lower Hunter Region of NSW.  The official population of Maitland City as of the 30 June 2013, is 73,447. It has grown <a href="https://profile.id.com.au/maitland/population-estimate" target="_blank">by 2.16% over the past year</a>. 
<img src="/images/2014/11/14/IMG_3845.JPG" alt="">
Maitland City is a solid area to develop in as we've been working there for over nine years and seen the population steadily rising and announcements of large infrastructure projects mean there is good investment being made by the government. NSW Planning have Maitland's annual growth rate projected to be the highest in metropolitan areas outside of Sydney.
As part of our research process, after pinpointing a city or town to develop in, we then drill down into suburb data. We look at median price history and trends and availability of land and housing. Our research with local agents confirms the type of housing in demand and we check for low vacancy rates. We then look for development site locations that are close to infrastructure such as good schools, shopping centres, public transport and quick access to Newcastle and to the M1 to Sydney.
<img src="/images/2014/11/14/IMG_3840.JPG" alt="">
We were offered Lorraine and Steven's development site off market through one of our land developers and quickly moved to secure it for our clients. The dual occupancy project was completed within 12 months of settlement on the land.
Here are the details:
<ul>
<li>890 square metre development site; land cost: $210,000 </li>
<li>Stamp duty &amp; legal costs: $2,285 </li>
<li>
($5,000 <a href="https://www.osr.nsw.gov.au/lib/doc/factsheets/ofs_nhg1.pdf" target="_blank" style="line-height: 1.3em;">NSW New Home Grant</a> applied. The government contributes $5,000 to offset stamp duty) 
</li>
<li>Construction cost for two freestanding, three bedroom, two bathroom, DLUG villas, includes Torrens title subdivision all design and council fees and charges: $460,627 </li>
<li>Total cost: $672,912 </li>
<li>The villas were valued on completion of the project at: $390,000 each. Total end values for both villas: $780,000. </li>
<li>Equity created: $107,782 
</li>
<li>
Gross yield after villas were rented at $400 per week each: 6.2% 
</li>
</ul>
<img src="/images/2014/11/14/IMG_3807.JPG" alt="">
If you are borrowing at around 4.5% then a development project like this may be cash flow positive for you. This is when the rent and depreciation benefits combined cover the costs of interest, insurance, council, water rates and management fees.
The other big benefit on a dual occupancy project is the depreciation benefits. On the above case study depreciation came in around $21,000 year one (using the diminishing method).
<img src="/images/2014/11/14/IMG_3780.JPG" alt="">
What Lorraine and Steven got out of using our service is the experience of being a property developer without having to deal with all the fine details and issues. Our weekly update reports act as a handy reference guide for clients to use when/if they have time to manage their next project themselves. Our role is to bring in the projects as quickly and efficiently as possible. Our long standing relationships with builders and contractors, land developers and agents allow us to pass on discounts and exclusive offers to our clients.
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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