Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" dir="auto">
<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" data-turn-id-container="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" dir="auto">
The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

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

<html><body>
Heffron has launched Phase 2 of its Super Toolkit in response to those seeking guidance in order to meet auditor and ATO requirements for their SMSF landlords providing rent relief to COVID impacted commercial tenants. 
According to Heffron an estimated 54,000 SMSFs have commercial property investments. As a consequence of the pandemic many of these landlords have provided rent relief for tenants who are unable to comply with the standard terms of their lease.
For SMSF landlords specifically, complying with superannuation law adds complexity to this process.  
"We were inundated with requests to provide guidance to our clients that would help them meet legal requirements for their own SMSFs clients with commercial property investments," said Heffron managing director, Meg Heffron. 
The COVID-19 Rent Relief tool walks users through the ATO’s requirements for compliance relief, helping users identify the drivers for rent relief and articulate the reasons why relief should be given in particular situations, as well as highlighting rent relief risks. 
The first stage of the toolkit was announced in March and launched in June, and covered SMSF investment strategies using a guided tool that helps subscribers to the service create an ATO-compliant strategy with documents that can be shared with clients as part of the process.
The Heffron Super Toolkit is available from $20 per month and once subscribed, users can gain access to each new component as released.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Heffron launches COVID rent relief tool answering SMSF compliance concerns

Olivia Round

The ultimate off-the-plan guide: 5 property experts share advice for buying a new apartment or townhome

<html><body>
Buying your first house doesn't need to be a daunting experience – and with the <a href="/guides">right guidance</a>, you'll be equipped with the tools you need to create a <a href="/guides/-how-much-are-you-required-to-save-for-a-house">sound financial plan</a>.

Recently I had the opportunity to chat to <a href="https://unohomeloans.com.au/">Uno Homeloans</a>' Vincent Turner about some of the financial considerations <a href="/guides/2019/06/17/urbans-first-home-buyer-guide">first home buyers</a> should take into account. Vincent covered everything from loan pre-approval and boosting your borrowing power to mortgage maintenance as well as sharing some of his top financial tips.

Watch the interview:

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/xX1Nxv3kD_U" width="660"></iframe>

00:22 - How do you decide when is the right time to buy a house?

01:31 - How to identify a good time in the property market cycle

02:24 - How can you boost your borrowing power?

05:40 - How much should you spend on a mortgage?

07:53 - What is an offset account and how does it work?

09:43 - What happens if you want to set up a business but you have a mortgage?

10:58 - What are the benefits of getting home loan pre-approval before beginning your property search?

12:46 - What are your top 5 financial tips for first home buyers?

More from Vincent Turner: <a href="/news/two-key-lender-changes-you-need-to-know-about-before-you-get-your-loan">Two key lender changes you need to know about before you get your loan</a>

<h2>First home buyer guides</h2>

<a href="/guides/2019/06/17/urbans-first-home-buyer-guide">First Home Buyer Guide (24 simple steps)</a>

<a href="/guides/how-to-navigate-australias-first-home-buyer-grants">How to navigate Australia's First Home Buyer Grants</a>

<a href="/guides/20-things-you-should-look-out-for-before-you-buy-property">20 things you should look out for before you buy property</a>
</body></html>

Uno Homeloans founder Vincent Turner shares financial advice every first home buyer needs to know

<html><body>
According to the <a href="https://www.ato.gov.au/About-ATO/Research-and-statistics/In-detail/Taxation-statistics/Taxation-statistics-2017-18/?anchor=Individuals#Table8">Australian Taxation Office</a> (ATO), figures released for the 2017-18 tax year showed 71% of property investors in Australia own just one property while .09% (or 20,756 Australians) own six properties or more properties. 

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2020-07-31_at_5.06.16_pm_0.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2020-07-31_at_5.06.16_pm_0.png?itok=I4fUSR5d" style="width: 179px; height: 400px;"></a>

<figcaption> </figcaption></figure> 

Why is it that 1.5 million people are financially savvy enough to appreciate that investing in property is a great way to build wealth, but a fraction of those people purchase additional properties to build a meaningful portfolio? 

When you are working to build a financially sound portfolio, there are four main pitfalls that you need to look out for. 

These include:

<ul>
<li>Falling in love with a property</li>
	<li>Trading property </li>
	<li>Negative gearing</li>
	<li>Cross securitisation </li>
</ul>
Falling in love with a property 

When most people consider buying an <a href="/expert-insights/buying/resetting-your-finances-during-covid-19-a-financial-coachs-guide">investment property</a>, they view the property and make a decision based on whether they love the property and personally would like to live in it or not. 

This is the scenario that sales agents want to see. Ideally they will be looking for two or three prospective buyers to fall in love with the same property and push up the price. 

Emotion is why auctions work so well – people get carried away and keep on bidding even when the price surpasses their budget.  

Falling in love with a property means you will almost certainly pay more than you should, and then you will struggle to let go when the time is right to sell – both can be costly. 

Keep in mind that the investment properties you buy should make you money for the long term. It’s all about the numbers and how it will help you reach your future goals.

Trading property 

Trading property can be a legitimate way to make money but it’s not always the best way to build wealth. 

Even if you sell your recently renovated property for a handsome profit, it’s not that different from the money you earn working your day job. 

In a job you need to pay tax before you ever see a cent of your wages. If you trade property, then the government is going to take its slice by way of capital gains tax before you see a cent. 

On top of that, you’ll have agent’s fees, legal fees, and possibly bank fees too. This means that your <a href="/guides/buying-right-investment-wise">profit is constantly</a> being eaten away by other interested parties keen to take their slice. 

As long as a property is positively geared or cash flow neutral I’d strongly suggest you hang on to it. Not only will you benefit from the capital growth over time but the property will start working for you by creating residual income through rent. 

Real wealth comes from the accumulation of assets, not trading assets.

Negative gearing

The idea of negative gearing is that you buy a property and then rent it out. However, if property values are rising, often it means that your rental income wouldn’t cover your mortgage payments, strata fees and other running costs. 

The result of this is that each month you would need to eat into your savings or divert funds from your day job so you can cover the shortfall. 

The story told by the banks and accountants was that as long as you are able to meet those additional cash flow needs for a few years, the rent would rise to meet those costs and you would be fine. 

Basically, your tenant would be paying off your mortgage and you would keep the appreciating asset and any additional income from the rent. This would mean you don’t pay any tax because your property is losing money.

Forget about the tax you might save – if the property is costing you money and eating into your income or salary then it’s keeping you in a job. It is not helping to liberate you from it.

If building wealth is creating constant stress then perhaps the price is too high and you need a better strategy. 

I would suggest doing thorough research and only buy properties that are cash flow neutral or positive. This way, the property pays for itself without any additional cash injection from you.  

Cross securitisation

Once you start building your property portfolio the biggest mistake you can make is cross securitisation – in other words, borrowing money from the same bank for all your properties. 

If one bank owns all your debt, they control you and that’s never a good position to be in. They can dictate how much borrowing is available to you and can also increase the interest rate if they want to. To tempt you in, they may offer an insignificant reduction (such as 0.2%) below the normal interest rate. 

Don’t bite the bait. Stay protected and maintain some control and flexibility!

The key is not to have all your properties with one lender so that if any of them change their lending rules you can more easily move to another lender that you already have a <a href="/guides/how-to-secure-a-mortgage-free-lifestyle-sooner">relationship with to refinance</a> quickly. 

The other benefit is that you will create a track record with a number of financial institutions which will make it easier to get finance from a new lender in the future.

There is little doubt that buying property can build wealth but it is just like any other investment vehicle – you really have to do your research.
</body></html>

Nick Dante

Avoid these 4 pitfalls in property investment

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

4 simple steps to follow before you put down your deposit for your first home

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

What you need to know before renovating an investment property

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

 How much are you required to save for a house?

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

Selling your property? Be sure to take these 5 costs into account

<html><body>
With the mercury continuing to fall and households turning up their heating appliances, it is vital to ensure your smoke alarms are working. More than <a href="/guides/2019/06/17/urbans-first-home-buyer-guide">12,000 household</a> fires broke out in homes last year, but concerningly, a recent survey by comparethemarket.com.au reveals 49% of people living in Australia don’t check their smoke alarms every month, as recommended by <a href="http://www.rfs.nsw.gov.au/plan-and-prepare/home-fire-safety">NSW Rural Fire Service</a>.

Working smoke alarms are a necessity all year round, but more so during winter when heating appliances are used. NSW Fire and Rescue warns that the <a href="https://www.fire.nsw.gov.au/page.php?id=9216">chance of home fire doubles</a> for those who don’t have a functioning smoke alarm. To help minimise the risk of fire danger at home, here are 7 tips to reduce the risk of fire in your house.

Replace smoke alarms at least once every 10 years

The accumulation of dust, insects and electrical corrosion in smoke alarm units can cause them to become damaged and <a href="https://www.dfes.wa.gov.au/safetyinformation/fire/fireinthehome/FireintheHomeFactsheets/DFES-Smoke-Alarm-Fact-Sheet3-Replace-Your-Smoke-Alarm-Every-10-Years.pdf">not operate effectively after 10 years</a>. To check the expiry date on your unit, <a href="https://www.fire.nsw.gov.au/page.php?id=9218">Australian Standard 3786</a> (the standard for smoke alarms in Australia) ensures there is a serial or batch number labelled on the device. <a href="https://www.fire.nsw.gov.au/page.php?id=9218">For example</a>, 2107 may mean that a device was manufactured in the 21st week of 2007. If you can’t see how old your smoke alarm is, contact the manufacturer or supplier. Consider installing photoelectric smoke alarms

Ionisation and photoelectric are the two main types of smoke alarms used in residential properties. The advantage of photoelectric smoke alarms is that they can detect fires in the smouldering phase before flames break out. This early detection can minimise the fire damaging property or harming occupants, as <a href="https://www.dfes.wa.gov.au/safetyinformation/fire/fireinthehome/Pages/typesofsmokealarms.aspx">photoelectric alarms will respond within three to five minutes</a> compared with up to 20 minutes for ionisation alarms to do the same. Test smoke detectors regularly

<a href="https://www.comparethemarket.com.au/">Comparethemarket.com.au</a> found that almost one in <a href="/news/is-australia-ready-for-smaller-footprint-apartment-living">10 people living in Australia</a> (9%) admitted that they’d had a smoke alarm that didn’t work for up to three months – due to them disconnecting or removing the battery in their alarm. It’s a good idea to put a recurring reminder in your calendar to ensure you don’t forget to check your smoke alarm regularly. <a href="http://statements.qld.gov.au/Statement/2019/4/1/dont-be-a-fool-queensland--check-your-smoke-alarms-on-1-april">Queensland</a> and <a href="https://www.dfes.wa.gov.au/safetyinformation/fire/fireinthehome/Pages/changeyoursmokealarmbatteries.aspx">WA</a> encourage residents to check their smoke alarms on April 1 as a friendly reminder – but it’s advised that smoke alarms are tested monthly. If the alarm doesn’t work, then you will need to replace it immediately.

Be careful of overloading power boards

Plugging too many devices into a power board or letting dust build up in unused points can cause electrical faults. Be sure to check regularly that all plugs are firmly fixed into power boards and that they are adequately ventilated. Also, keep a keen eye out for signs of damage. Many modern power boards are fitted with a surge protector, and trip switches in household electricity boxes reduce but don’t eliminate the risk of electrical faults. Attend stovetops and open flames while in use

Kitchens are a high-risk area for house fires to start, so don’t let any non-cooking flammable items near the oven or stove, such as tea towels, oven mitts, or cookbooks. Also, be careful of wearing clothes with loose-fitting sleeves in the kitchen for this same reason. Additionally, ensure gas ovens are always turned off to prevent gas leaks or toxin exposure, as smoke damage may not be covered by your insurance unless you have accidental cover included in your home and contents insurance policy. Keep any chemicals and flammable items stored safely

Set aside a cold, dark, and secure place for flammable products or chemicals to make sure they are kept away from heat. <a href="/guides/20-things-you-should-look-out-for-before-you-buy-property">Combustible materials</a>, such as paint or gasoline, should be sealed in their original containers. If you have a lawnmower, it’s best to refuel in the open during colder weather. 

Have a home escape plan in place

As <a href="https://www.qfes.qld.gov.au/community-safety/downloadlibrary/Documents/SA/SmokeAlarms.pdf">recommended by state fire services</a>, a fire evacuation plan is essential for every household. The evacuation plan should be made clear to everyone and must be revised if moving to a new house. If you live in a multi-story building, the building owner is required to display a <a href="https://www.dfes.wa.gov.au/safetyinformation/fire/fireinthehome/FireintheHomeManualsGuidelines/Fire_Safety_Multi-Storey_Residential_Buildings.pdf">fire evacuation plan</a> in plain sight that shows where your ‘assembly area’ is located.

By conducting regular maintenance on smoke alarm units and adhering to these safety precautions, you can significantly reduce the risk of household fire danger this winter. For those who want to protect valuable assets, in case the unexpected occurs, home and contents insurance can provide peace of mind. Always read the Product Disclosure Statement to know what you are covered for and be aware of any exclusions that apply.

Got any other suggestions about how you can prevent a fire in your home? Let us know in the comments.
</body></html>

7 ways to minimise the risk of a fire in your home

<html><body>
Did you know that in May this year, nearly 32 per cent of all property purchases were by first-time buyers? 
Some of these also opted to buy an investment property as their very first property. 
However, whether you are buying a property to live in or to rent out, first-timers should adopt the same investment strategies, including these five. 1. Don’t be afraid of LMI

LMI or <a href="/guides/2019/06/17/urbans-first-home-buyer-guide">Lenders Mortgage Insurance</a> is often seen as an expense that must be avoided at all costs. 
In short, LMI is a fee that lenders charge when a borrower doesn’t have a 20 per cent deposit. 
However, some potential buyers scrimp and save for so long for that magical deposit figure, while property prices are increasing faster than they can save, so they are forever chasing their financial tails. 
This often means they don’t buy at all or pay a much higher price, which is an opportunity cost far greater than the LMI would have been in the first place. 
For example, the LMI on a $500,000 property with a $50,000 deposit on average $12,000 depending on the location of the dwelling. 
But if it takes you another few years to save the other $50,000, prices are likely to be much higher again. That’s why it’s important to use smaller deposits in the accumulation phase of building a portfolio. 

Indeed, also, if you did manage to save, say, $100,000 you could potential buy two $500,000 properties with 10 per cent deposits rather than just one, which will mean that any capital growth is doubled. 

2. Balance your portfolio

One of the decisions that often stumps new investors is whether they should buy a capital growth or a cash flow property. 
The best strategy is to create a balanced portfolio that features both of these types of properties, which will help you to grow, and keep, your portfolio over the long-term. 
What I mean by that is capital growth properties that grow in value and create equity that you can recycle into more property purchases. 
While, cash flow properties, on the other hand, help you to service your borrowings by <a href="/guides/how-to-pay-off-your-mortgage-faster">way of rental income</a>. 
Over time, this becomes passive income as the mortgages reduce but rents rise.  

3. Find a team of experts

Gone are the days when having a home paid off by the time you retire will mean you’ve got it financially made in your twilight years. 
In fact, that was never really the case, but in generations gone by our grandparents and great-grandparents didn’t travel overseas as much as we generally do. 
Unfortunately, people didn’t live as long either back then, so they probably didn’t need to worry about financing decades of retirement like we do. 
These are some of the reasons why more and more people have become <a href="/news/the-difference-between-offset-and-redraw-mortgage-loans-that-are-right-for-you">property investors,</a> because living on the pension for years is just not appealing. 
And the way that they improve their chances of building a successful portfolio is by leveraging off a team of experts.  
The ideal team of experts generally includes a mortgage broker, buyer’s agent, accountant, solicitor, pest and building inspector, property manager and quantity surveyor.  4. Look outside your backyard

Something else that has changed over the past few decades is the rise of interstate investors. 
More and more investors understand that there are different market cycles happening at the same time across the country. 
So, rather than buying down the street from where they currently live or where they grew up, they consider locations where prices are primed to strengthen over the short- to medium-term. 
Sometimes this is interstate, with affordability considerations being part of the equation, too. 
Rather than being limited to being able to afford, say, just one investment property in their home city or region, they may well be able to supercharge their portfolio by two or more properties by looking further afield. 
One of the reasons why they are able to do that is because they also recognise that strategic property investment should be emotionless.

5. Stress-test your portfolio 

Another fundamental that all <a href="/expert-insights/buying/2-property-investor-trends-that-are-likely-to-continue-post-pandemic">first-time property buyers</a> must do is stress-test their portfolios. 
Essentially this means ensuring they have the cash flow, or easy access to funds, that can see them through financial upheavals.

This could be a cash buffer sitting in an offset account or perhaps access to a line of credit. Whichever way it is, sophisticated investors have enough funds available to them to cover their livings costs as well as their personal mortgage repayments for several months if they lost their job expectedly. 
Having this cash buffer will essentially mean that they won’t have to sell any of their properties during times of financial stress.
</body></html>

Latest Guides

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

News

Editor's Picks

News

Developments

New apartments

New townhouses

News

Latest Guides

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

News

Editor's Picks

Receive the latest news stories to your inbox

News

Developments

New apartments

New townhouses

News