The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

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>

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 

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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

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

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By Steve Jovcevski, Property expert and lending expert at financial comparison website <a href="https://mozo.com.au/">mozo.com.au</a>

You don’t need to look far across the skyline in any major Australian city to see evidence of the recent apartment boom, where cranes and new residential buildings have become a semi-permanent fixture. For many home seekers in Australia, apartment living is becoming an increasingly attractive alternative to houses because of the convenience and relative affordability they offer. But just like houses, apartment buyers still need to do their <a href="/guides/20-things-you-should-look-out-for-before-you-buy-property">due diligence before they make a purchase</a>, especially with questions surrounding the quality of new builds and a continued focus on borrower loan serviceability. So to point you in the right direction, mozo.com.au Property Investment and Lending Expert, Steve Jocevski, has shared some of the red flags lenders are currently looking for. 

<h2>
Is the apartment quality up to scratch? </h2>

If you’ve been following the news you’ll be aware of the rising number of cases of <a href="https://mozo.com.au/home-loans/resources/tips/expert-opinion-do-we-need-a-royal-commission-into-residential-building">subpar new </a><a href="https://mozo.com.au/home-loans/resources/tips/expert-opinion-do-we-need-a-royal-commission-into-residential-building">residential buildings</a> that have been cropping up, especially in Sydney, as well as cladding flammability issues across the country. That’s why one of the biggest red flags for lenders, and one of the first things you should determine as a buyer, is the quality of the building - particularly new builds. Before you buy, it’s a good idea to do your research on the developer and builder (especially if you’re buying off-the-plan) and ensure you inspect the apartment in person for structural or waterproofing issues. It’s also a good idea to spend the time going through strata minutes or attend a strata meeting to gauge the issues that are being discussed. If you know you want to purchase an apartment in a particular building, you should contact your lender straight away and let them assess it for themselves. After all, the last thing you want to do is get your heart set on a blacklisted building or make a bid on an apartment that your lender refuses lending for.

<h2>Is the area oversupplied or apartment too small? </h2>

Lenders may be paying closer attention to the quality of individual buildings, but the continued apartment boom in recent years has meant that the postcode restrictions put in place by a number of banks in 2017 are still in play. Lenders have red-flagged certain inner-city postcodes and other suburbs where apartments are oversupplied in order to reduce their own risk and ensure that they’re not overexposed in any one area. For buyers, this doesn’t mean that lenders will totally restrict lending on apartments in a particular suburb, but it does mean that they will require a lower home loan loan-to-value ratio (LVR) of around 70-80%, and therefore a higher deposit. Speaking of LVR restrictions, it’s still common practice for lenders to red flag smaller apartments and some off-the-plan builds. Lenders generally don’t like apartments smaller than 40sqm, so borrowers eyeing off a small apartment may need to come up with a deposit of as high as 30-40% in order to secure a home loan.   

<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/nate-watson-ib_nblj2jis-unsplash.jpg" rel="gallery-all" title="Credit: Nate Watson"><img alt="" class="image-article-full-width-580px" height="335" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/nate-watson-ib_nblj2jis-unsplash.jpg?itok=gt8XenBN" title="Credit: Nate Watson" width="580"></a>

<figcaption>Credit: Nate Watson</figcaption></figure><h2>Do you make the grade as a borrower?  </h2>

While <a href="/news/a-borrower-s-market-the-reserve-bank-of-australia-cuts-cash-rate-to-a-record-low">back-to-back rate cuts</a> have really ramped up the competition for borrowers between mortgage lenders, they are keeping an eye out for certain red flags. The spotlight still remains on expenses, with lenders looking as far back as three and even six months in some cases at borrower’s spending habits. This is to ensure that borrowers have the income and ability to pay off their loans, and it includes everything from everyday expenses to things like eating out and Afterpay purchases. My advice for future apartment buyers would be to really cut back on your spending in the months before you apply for a loan so you can prove that able to meet your repayment obligations and you don’t present as a red flag. Secondly, think carefully about your credit history before applying. The lower your credit score, the higher the chance is that a lender will see you as a risk, so consider reducing your credit card limit, paying off any outstanding personal loans and, when you are ready to start shopping around, limit the number of lenders you apply to.

<h2>About Steve Jovcevski</h2>

Steve is a property expert and lending expert at financial comparison website <a href="https://mozo.com.au/">mozo.com.au</a>. With an extensive knowledge of property trends and home loans products, Steve is full of practical tips to help Aussie buyers find their next property for less.

Lead image credit: Hans Eiskonen
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urban.com.au

OPINION: Buying an off-the-plan apartment? 3 red flags lenders are watching out for, and you should too

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There’s a reason why property investment for many Australians is considered a full-time job. There are a number of responsibilities which fall on the property owner to take care of, as well as costs they must absorb. From preventative maintenance to value-enhancing improvements, this kind of work comes with a significant price tag, but thanks to the Australian Taxation Office, a number of these outgoing costs are tax-deductible.

<blockquote>
“Most small landlords can deduct up to $25,000 in rental property losses each year.”
</blockquote>

- Nolo, <a href="https://www.nolo.com/legal-encyclopedia/top-ten-tax-deductions-landlords-29497">Top Ten Tax Deductions for Landlords</a>

Here are the 18 ongoing costs associated with owning a rental property, and what you can claim the tax back on according to the Australian Tax Office <a href="https://www.ato.gov.au/uploadedFiles/Content/IND/downloads/Rental-properties-2019.pdf">expense deduction list for 2019</a>*.

*Please note this list is subject to change, so checking the ATO website or consulting with an accountant is always advised.

1. Property agent's fees and commissions (tax-deductible)

To have your property managed by a real estate company can cost you a substantial amount, and there’s no “fixed rate” management fee. Commissions vary by state and often range from 5% to around 20%, and other costs can include letting fees, marketing fees, lease renewal fees, inspection fees and more. To give a rough estimate, a property which leases for $400 per week at a 7% commission would be around $30 commission. 

2. Building and Contents insurance + Public liability (tax-deductible)

According to Canstar Research, insurance premiums would range from $297 - $689 for a townhouse to $1,101 - $4,330 for a detached dwelling, based on an annual premium rate with a $500 excess. House insurance claims cover fire, theft and flood, while landlord liability claims can include, loss of rental income, malicious or accidental damage, water damage and the passing of a tenant.

3. Council rates (tax-deductible)

Council Rates are calculated by taking your property’s current valuation and multiplying it by the rate in the dollar.

Here is an example by <a href="http://knowyourcouncil.vic.gov.au/guide-to-councils/finance-and-planning/rates-and-charges">Victoria Council</a>:

If the Capital Improved Value of a property is $250,000 and the council rate in the dollar is set at 0.0042 cents, the rate bill would be $1050 ($250,000 x 0.0042)

4. Bank fees (some may be tax-deductible)

For a principal + interest home loan, only the interest can be tax-deductible, not the principle. Want to find out more about choosing the right home loan? <a href="/guides/2019/06/17/urbans-first-home-buyer-guide">This article</a> should help. 

5. Pest control (tax-deductible)

No matter how small the pest, the cost to eliminate the problem can set you back $130 for a one-off visit, to around $700+, depending on the service. If left unattended the pest infestation can quickly spiral out of control and become more difficult to treat.

6. General repairs and maintenance (tax-deductible)

General maintenance including repainting a ceiling, fixing a fence or steam cleaning the carpets is essential to ensure your house remains maintained to a decent standard and to ensure the safety, happiness and wellbeing of your tenants. In some cases, asbestos removal may be considered a 'deductible repair' despite the extensive nature of the work required. This is because it may be classed as an 'environmental protection activity' – so definitely one worth looking into to ensure your property is safe for your tenants. 

Tip from ATO: It's also a good idea to find out whether the company or service you use has a registered ABN. If not, you will be required to withhold 47% to be paid as tax. 

Interested to learn more about what to look out for when you visit your rental property next? <a href="/guides/2019/06/24/own-rental-property-here-are-14-things-to-check-to-avoid-major-problems-in-future">Here are 14 things to check to avoid major problems in future.</a>

7. Cleaning (tax-deductible)

The average cost of house cleaning in Australia can cost between $60 - $90 per hour for a 'deep clean' which is generally required in between tenancies. According to the ATO, this cost is usually tax-deductible. 

8. Interest on loans (tax-deductible)

If you have taken out a home loan to buy your rental property and it is being rented, then you may be eligible to claim the interest charged on the loan. The criteria are strict as the ATO want to ensure homeowners are not living in their property or using it for personal reasons such as refinancing etc. 

9. Renovation (generally not tax-deductible)

Renovations in the rental world are considered by the ATO to be 'of a capital nature' – meaning structural enhancements such as extending and altering the home; updating the kitchen/bathroom; pre-existing remedial work that was required before you acquired the property etc. are not tax-deductible, but are often essential. For example, if there is a room in the house which does not receive sufficient light, then it might pay off to have a window installed (at a cost to you) to avoid mould/dampness issues and poor ventilation in future. 

<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/rhema-kallianpur-jbj-_hw2yag-unsplash.jpg" rel="gallery-all" title="Credit: Rhema Kallianpur"><img alt="" class="image-article-full-width-580px" height="923" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/rhema-kallianpur-jbj-_hw2yag-unsplash.jpg?itok=MeJs_iYJ" title="Credit: Rhema Kallianpur" width="580"></a>

<figcaption>Credit: Rhema Kallianpur</figcaption></figure>10. Painting (tax-deductible)

Service maintenance work when required can sometimes be a tax-deductible expense.

11. Electrician fees (tax-deductible)

Average hourly rates by state (excluding the call-out fee) according to <a href="http://ServiceSeeking.com.au">ServiceSeeking.com.au</a>:

<table border="1" cellpadding="1" cellspacing="1" style="width:500px;"><tbody>
<tr>
<td>WA                  </td>
			<td>$92.01 per hour</td>
		</tr>
<tr>
<td>NSW</td>
			<td>$80.86 per hour</td>
		</tr>
<tr>
<td>VIC</td>
			<td>$79.31 per hour</td>
		</tr>
<tr>
<td>QLD</td>
			<td>$77.83 per hour</td>
		</tr>
<tr>
<td>ACT</td>
			<td>$77.73 per hour</td>
		</tr>
<tr>
<td>SA</td>
			<td>$76.26 per hour</td>
		</tr>
</tbody></table>
12. Plumber fees (tax-deductible)

The average rate for typical plumbing services according to <a href="https://www.serviceseeking.com.au/blog/cost-of-plumbing/">ServiceSeeking.com.au</a>:

<table border="1" cellpadding="1" cellspacing="1" style="width:500px;"><tbody>
<tr>
<td>Install a bathroom vanity</td>
			<td>$160</td>
		</tr>
<tr>
<td>Replace a broken tap</td>
			<td>$120</td>
		</tr>
<tr>
<td>Fix a leaking pipe</td>
			<td>$180</td>
		</tr>
<tr>
<td>Replace a broken toilet</td>
			<td>$150</td>
		</tr>
<tr>
<td>Unclog a drain</td>
			<td>$150</td>
		</tr>
<tr>
<td>Unclog a toilet</td>
			<td>$120</td>
		</tr>
</tbody></table>
13. Grounds maintenance including gardening and lawn mowing (tax-deductible)

According to <a href="https://www.airtasker.com/gardening/garden-maintenance/price/how-much-does-garden-maintenance-cost/">Air Tasker</a>, a gardener can cost between $50 - $300 per hour, while a lawn mower can cost $40-$50 an hour. 

14. Replacing furniture, carpets, curtains (generally not tax-deductible)

Prior to 2017, replacing items which tend to depreciate over time such as air-conditioning units, carpets, appliances, furniture was tax-deductible. Today, any items which were already part of an existing property that was purchased after May 9th 2017, will have to be covered by the landlord and is no longer tax-deductible.

15. Travel to visit your investment property (generally not tax-deductible)

Every time you visit your property – whether it’s for maintenance, inspections or viewings, it’s costing you money in transport (unless you live within walking distance). These costs used to be tax-deductible up until July 2017, however now this is a bill absorbed by the property owner.

16. Dealing with issues such as mould, leaks, draughts (sometimes tax-deductible)

<a href="https://www.homeadvisor.com/cost/environmental-safety/remove-mold-and-toxic-materials/">Home Advisor</a> states that mould removal can cost anywhere between $50 to $6,000 depending on the square footage of the mould, and other contributing factors. Similarly, a leaky roof – if not repaired immediately, <a href="https://www.familyhandyman.com/roof/should-i-replace-my-roof-here-are-21-things-to-consider/">can lead to major structural damage</a>, which could end up costing thousands to fix. These issues are all important factors that need to be addressed as soon as the problem occurs to avoid major damage in future. It's always beneficial to respond to your tenant's concerns as soon as they arise.

17. Advertising for tenants (tax-deductible)

Advertising involves a number of different components which all incur cost:

<ul>
<li>Photography</li>
	<li>Copywriting</li>
	<li>Social media marketing spend</li>
	<li>Physical signage</li>
	<li>Newspaper/magazine inclusion</li>
</ul>
However, having your property marketed professionally can sometimes help your rental property gain tenants quicker. 

18. Legal fees (sometimes tax-deductible)

Legal fees are treated on a case-by-case basis as they all vary to some degree, therefore making it challenging to form a clear cut checklist. However, if you do incur legal fees from owning a rental property, it would be worth checking with the ATO to see if your expense is eligible for deduction.

For more information and to find out which expenses you are able to claim, visit <a href="https://www.ato.gov.au/uploadedFiles/Content/IND/downloads/Rental-properties-2019.pdf">ato.gov.au</a>

Lead image: Luke van Zyl 
</body></html>

Olivia Round

18 ongoing rental property costs (and which ones are tax-deductible)

Looking for a home on a budget? Here are 10 Melbourne apartments under $385,000

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While first home buyers continue to dominate the market, investment interest remains strong, with 1 in 4 <a href="/">Apartments.com.au</a> property enquiries being made by investors.

Earlier this year we reported on the surge of <a href="/guides/off-the-plan-property-buyer-confidence-surges-post-election">confidence of off-the-plan property buyers</a> which has been attributed to policy legislation (negative gearing to remain coupled with the abolishment of the decision to half capital gains tax). The Reserve Bank of Australia also <a href="/news/a-borrower-s-market-the-reserve-bank-of-australia-cuts-cash-rate-to-a-record-low">cut the official cash rate to an all-time low</a>, in addition to APRA’s announcement of a lowered minimum interest rate serviceability buffer – bringing about the rise of a borrower’s market.

With investment acquisition maintaining a steady interest despite the property market turbulence, we were curious to discover which properties are popular among investors across Australian properties.

Based on Apartments.com.au data, the most popular apartment configuration is the 2-bedroom, 2 bathrooms; closely followed by the 3-bedroom, 2 bathrooms. A surprising statistic we revealed in our research found that 19% of investors are searching for high-end brand-new apartments priced at $1 million and higher.

The most popular price range among investors is between $400,000 to $600,000, which is on par with the searches made by first home buyers and next home buyers.

Our data also showed that across all buyer types, investors are the most likely to compromise on parking, with 13% of off-the-plan property enquiries excluding carpark facilities. This compares to 11% of searches made by first home buyers, and 7% of searches made by next home buyers. This could be a representation of the priorities held by each property seeker.

<h2>A DROP YEAR ON YEAR</h2>

In the last 3 months, investors have represented 25% of the property enquiries on Urban, which is a comparative drop considering the share of investor enquiries was at 32% in 2018. This could be due to a rise in first home buyer interest as a result of more lenient lending opportunities. It'll be interesting to see which way the market shifts by Q4 2019.

<h2>GREAT OFF-THE-PLAN INVESTMENT PROPERTIES WORTH CHECKING OUT</h2>

<a href="/buildings/victoria-square-8-hopkins-street-footscray">VICTORIA SQUARE</a>, VIC

Architect: <a href="/architects/kavellaris-urban-design">Kavellaris Urban Design</a>, Fender Katsalidis

Developer: <a href="/developers/growland-group">Growland Group</a>

Builder: <a href="/builders/lu-simon-builders">LU Simon</a>

<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_2019-08-16_at_2.03.36_pm.png" rel="gallery-all" title="Melbourne Square exterior. Credit: Growland Group"><img alt="" class="image-article-full-width-580px" height="358" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2019-08-16_at_2.03.36_pm.png?itok=POzlm_JU" title="Melbourne Square exterior. Credit: Growland Group" width="580"></a>

<figcaption>Melbourne Square exterior. Credit: Growland Group</figcaption></figure><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_2019-08-16_at_2.03.49_pm.png" rel="gallery-all" title="Melbourne Square's resident cinema. Credit: Growland Group"><img alt="" class="image-article-full-width-580px" height="482" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2019-08-16_at_2.03.49_pm.png?itok=Drge0TM-" title="Melbourne Square's resident cinema. Credit: Growland Group" width="580"></a>

<figcaption>Melbourne Square's resident cinema. Credit: Growland Group</figcaption></figure>Situated in the heart of Footscray, Melbourne Square brings to market a long list of world-class facilities including a private cinema, state-of-the-art gym, outdoor running track, and heated indoor pool to name a few. The property is popular among investors for its stellar location, affordable price-point and superior amenity offering.

<hr>
<a href="/buildings/443-queen-street-brisbane-443-queen-street-brisbane">443 QUEEN ST</a>, QLD

Architect: <a href="/architects/architectus">Architectus</a>, <a href="/architects/woha">WOHA</a>

Developer: <a href="/developers/cbus-property">Cbus Property</a>

Builder: <a href="/builders/probuild">Probuild</a>

<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/443.jpg" rel="gallery-all" title="Apartment interior of 443 Queen St development. Credit: WOHA"><img alt="" class="image-article-full-width-580px" height="295" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/443.jpg?itok=RNVV_Xf8" title="Apartment interior of 443 Queen St development. Credit: WOHA" width="580"></a>

<figcaption>Apartment interior of 443 Queen St development. Credit: WOHA</figcaption></figure><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/slider2.jpg" rel="gallery-all" title="Shared communal area within the apartment building. Credit: WOHA"><img alt="" class="image-article-full-width-580px" height="219" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/slider2.jpg?itok=mMlXv0QF" title="Shared communal area within the apartment building. Credit: WOHA" width="580"></a>

<figcaption>The shared lounge area within the apartment building. Credit: WOHA</figcaption></figure>Brisbane is due to welcome an exciting new addition to its waterfront, 443 Queen Street. The development is a favourite among eco-conscious buyers, who will enjoy living amongst nature with world-class landscaping and vertical planting adorning the tower. 443 Queen St offers fantastic communal areas for residents to relax and unwind, which will be one of this building's excellent selling points on the rental market.

Lead image credit: WOHA
</body></html>

What investors are looking for in Australian properties based on Urban data

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If you’re considering purchasing a <a href="/developments/qld">rental property</a>, or perhaps you have a spare bedroom or vacation planned and are looking into creative ways to make extra cash – then read on, as we have some great insider information about the world of Airbnb.

Did you know that Airbnb rentals in Brisbane bring in an <a href="https://www.openagent.com.au/blog/how-to-run-a-successful-airbnb">average daily rate of $150</a>? They also retain a substantial <a href="https://www.openagent.com.au/blog/how-to-run-a-successful-airbnb">occupancy rate of 67%</a>, meaning a steady flow of bookings year-round. Across Australia, Airbnb is also proving popular among business travellers, with an <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-08-01/motels-hitting-the-wall-as-airbnb-online-booking-prevails/11367452">increase of 59%</a> work travel bookings made by millennials in the past 12 months.

One of the greatest ways to secure regular bookings for your Airbnb is by <a href="/developments/qld">choosing the right property</a>. Three of the key considerations to take into account during your property search are:

<ul>
<li>Location</li>
	<li>Amenity</li>
	<li>Apartment size/configuration</li>
</ul>
In order to help you choose the best rental property, we reached out to Brisbane Airbnb management company <a href="https://breezybnb.com/">Breezybnb</a> to help us identify our top listings in Queensland, based on their industry knowledge.

Here are Breezybnb’s top 5 apartments for Airbnb in Brisbane.

<h2>#1 <a href="/buildings/brisbane-skytower-222-margaret-street-brisbane">BRISBANE SKY TOWER</a>
</h2>

222 Margaret Street, Brisbane QLD

Architect: <a href="/architects/nra-co-lab">NRA Co Lab</a>

Developer: <a href="/developers/amp-capital">AMP Capital</a>, <a href="/developers/billbergia">Billbergia</a>

Builder: <a href="/builders/hutchinson-builders">Hutchinson Builders</a>

<figure><a href="/buildings/brisbane-skytower-222-margaret-street-brisbane"><img alt="" class="image-article_full_width_580px" height="334" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/styles/article_full_width_580px/public/pictures/article-images/brisbane-skytower-apartments-1.jpg?itok=GEoU6rKV" title="Image supplied" width="580"></a>

<figcaption>Image supplied</figcaption></figure>"For Airbnb guests, the excitement of staying in the tallest building in the city adds an extra level of desirability for apartments in Brisbane Skytower. The higher floors are the obvious picks, and even better if you have a room with a view for Riverfire festival! Breezybnb manages some 2-bedroom apartments in the building with 90% occupancy at $153 a night. The 2-bedrooms are usually more popular as the addition of a sofa bed can fit 6 adults which helps the apartments command a higher nightly rate." – Silver Lim, Breezybnb Brisbane Acquisitions

<hr>
<h2>#2 <a href="/buildings/aston-residences-9-edmondstone-street-south-brisbane">ASTON RESIDENCES</a>
</h2>

9 Edmondstone Street, South Brisbane QLD

Architect: Bureau Proberts

Developer: Effinity

<figure><a href="/buildings/aston-residences-9-edmondstone-street-south-brisbane"><img alt="" class="image-article_full_width_580px" height="323" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/styles/article_full_width_580px/public/pictures/article-images/aston-residences-exterior-1.jpg?itok=cmkbipw2" title="Image supplied" width="580"></a>

<figcaption>Image supplied</figcaption></figure>"The Aston Residences have an individuality which makes them a jewel that is hidden below the South Brisbane skyline. The low rise development is an attractive pick for business travellers who might be on an extended stay and prefer to avoid the sometimes chaotic foyers and carparks of larger developments. Proximity to some stellar restaurants &amp; cafes and resort-style amenities makes this a hot pick for the executive traveller." – Silver Lim, Breezybnb Brisbane Acquisitions

<hr>
<h2>#3 <a href="/buildings/lucid-38-hope-street-south-brisbane">LUCID</a>
</h2>

38 Hope Street, South Brisbane QLD 

Architect: <a href="/architects/mirvac-design">Mirvac Design</a>

Developer: <a href="/developers/mirvac">Mirvac</a>

<figure><a href="/buildings/lucid-38-hope-street-south-brisbane" target="_blank"><img alt="" class="image-article_full_width_580px" height="280" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/styles/article_full_width_580px/public/pictures/article-images/image_41.jpg?itok=6N47qMyh" title="Image supplied" width="580"></a>

<figcaption>Image supplied</figcaption></figure>"Located a stone’s throw away from South Brisbane Station, Lucid is sure to be popular with guests looking for convenient accommodation. Brisbane Central is a mere two stops away. A 2-bedroom unit would be in demand by families and groups of friends looking for a medium-sized place to stay. Being in close proximity to the Performing Arts Centre and the Convention Centre means you can increase your nightly rate whenever there are events scheduled. A stunning sky deck on Level 30 with a private dining room, BBQ amenities and an infinity-edge pool allows guests a place to relax and adds the wow factor to your Airbnb photos that everyone is attracted to." – Silver Lim, Breezybnb Brisbane Acquisitions

<hr>
<h2>#4 <a href="/buildings/ivy-eve-22-28-merivale-street-south-brisbane">IVY &amp; EVE</a>
</h2>

22-28 Merivale Street, South Brisbane QLD

Architect: <a href="/architects/ml-architecture">ML Architects</a>

Developer: <a href="/developers/abacus-property-group">Abacus Property Group</a>

Builder: <a href="/builders/hutchinson-builders">Hutchinson Builders</a>

<figure><a href="/buildings/ivy-eve-22-28-merivale-street-south-brisbane"><img alt="" class="image-article_full_width_580px" height="322" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2019-09-03_at_11.34.49_am.png?itok=9kbPfJ0f" title="Image supplied" width="580"></a>

<figcaption>Image supplied</figcaption></figure> 

"The Ivy &amp; Eve Apartments boasts a fantastic location, just a street away from South Brisbane Station. You’ll find a variety of hip cafes, restaurants and international cuisines located on neighbouring streets (Fish Lane) so guests are spoiled for choice when it comes to mealtimes. 1 or 2-bedroom apartments are both popular with Brisbane Airbnb guests. With the Queensland Museum and Science Centre located nearby, not to mention the Queensland Performing Arts Centre, plus various theatres and playhouses, guests will enjoy attractions conveniently located in the vicinity of their stay. Fancy a relaxing day in? The building itself offers luxurious amenities such a pool, gym, a BBQ area and even an outdoor cinema. You’ll be able to charge $140/night for a 1-bedroom in this centrally-located development with an expected occupancy of 85%+" – Silver Lim, Breezybnb Brisbane Acquisitions

<hr>
<h2>#5 <a href="/buildings/brisbane-one-1-cordelia-street-south-brisbane">BRISBANE ONE</a>
</h2>

1 Cordelia Street, South Brisbane QLD

Architect: Bureau Proberts

Developer: <a href="/developers/rf-property-australia">R&amp;F Property Australia</a>

<figure><a href="/buildings/brisbane-one-1-cordelia-street-south-brisbane" target="_blank"><img alt="" class="image-article_full_width_580px" height="418" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2019-09-03_at_11.36.05_am.png?itok=H-fggwOr" title="Image supplied" width="580"></a>

<figcaption>Image supplied</figcaption></figure>"Located near the Brisbane River and South Brisbane Station, the Brisbane One project with its magnificent river views is sure to be a hit with guests looking to explore Brisbane from a convenient home base. A variety of international cuisines, cafes, pubs and restaurants located in the area will ensure that mealtimes are a breeze. The amenities such as a rooftop spa, recreation area and lagoon pool are sure to impress your guests (and make for great photos on your listing), not to mention a spacious private balcony in every apartment. An average of $160/night for a 2-bedroom at 75% occupancy would be easy to achieve in this location." – Silver Lim, Breezybnb Brisbane Acquisitions
</body></html>

Breezybnb chooses Urban’s 5 best Brisbane apartments for Airbnb

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Considering how much harder it is becoming to enter the property market, many people are asking the question, "can I use my superannuation to buy a house to live in?"

The answer to this question depends on some specific rules for accessing super, and to help clear things up, <a href="/">Apartments.com.au</a> has updated this resource in 2020 with a complete guide for self-managed super fund (SMSF) property rules, ATO conditions and everything else you need to know. 

<h2>Can I buy a property from my SMSF?</h2>

[smartcode_project:default project_id=27427]

In order to use your superannuation for property purchases, there are some conditions that need to be met, such as a full superannuation condition of release. The obvious one is retirement, or reaching the age of 65. Officially, retirement is the reaching of preservation age with no intention of working again or an ending employment condition after the age of 60.

If either of these things has happened, you have unrestricted access to your superannuation which you can withdraw to buy a house. However, it is vital to keep in mind any potential tax implications of <a href="https://www.esuperfund.com.au/learn/access-super-benefit/aged-55-to-59/retired">withdrawing from your super</a>.

For those who do not find themselves in either of the above situations, it is possible in some cases to use your super for investment purposes via a particular arrangement which states you will not be able to live in the property. Many people look into these methods, <a href="/guides/how-to-invest-in-property-with-no-money">as well as others that will allow you to purchase property without a deposit</a>, in order to get their foot in the property market door.

<h2>What if you want to use your super to buy an investment property?</h2>

<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/whatifyouwanttouseyoursupertobuy.png" rel="gallery-all">[smartcode_project:default project_id=3730]</a></figure>There are usually specific investment menus in corporate, retail, and industry superannuation funds that dictate the investments of the accounts. These are often a combination of managed funds, ASX-listed shares, and multi-mix investment options, and they will not provide enough scope to <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">buy an investment property</a>.

For this reason, you will need a self-managed superannuation fund which makes you a member of the super fund, as well as the trustee of the super fund. So why doesn't everyone do this? Running a SMSF is a lot of work as you are legally required to meet a range of obligations including regulatory, accounting, legislative, and administrative requirements which relate to being a trustee. There is also a cost associated with a SMSF which is more expensive than a standard fund.

Because of the difficulty that can be involved, SMSF trustees often hire professional accountants or financial advisers to ensure they are compliant, which also incurs further costs. The rules around an investment property that is purchased within a SMSF basically state that ownership must benefit the members of the fund based on the SMSF Investment Strategy and the property must under no circumstances be used for personal purposes for any length of time, no matter how short. Also, the rental income generated by the property, or expenses due, must be paid in and from the SMSF's bank account.

<h2>Super and first homes</h2>

[smartcode_project:default project_id=2772]

The above condition means that <a href="/guides/2019/06/17/urbans-first-home-buyer-guide">buying your first home</a> with your super is a no-go unless you happen to be purchasing your first home after retirement age (not that unlikely considering property prices in 2019). That being said, there is a First Home Super Saver Scheme which can assist you in saving a deposit for your first home.

The <a href="https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/First-Home-Super-Saver-Scheme/">First Home Super Saver Scheme</a> (FHSS) lets you save money for your first home with your superannuation account via voluntary concessional (pre-tax) or non-concessional (post-tax) contributions. This can be done with salary sacrifice, or personal concessional contributions if you are self-employed. Anyone can make personal non-concessional contributions into their super at any point.

These voluntary contributions and whatever extra funds they may generate can be used as a deposit for the purchase of your first home. However, there are some conditions to consider when it comes to tax:

<ul>
<li>
	The amount that you can access is capped at $15,000 for voluntary contributions from the one year 
	</li>
	<li>
	There is a further cap of $30,000, plus earnings in total
	</li>
	<li>
	You are only allowed to apply for this scheme once 
	</li>
	<li>
	You must live in the home you are buying for six of the initial 12 months of ownership
	</li>
</ul>
Anyone who has previously owned a property in Australia, despite applying for the FHSS scheme or not, in ineligible for this scheme and you must be over the age of 18.

There are some advantages to using the First Home Super Saver scheme as any earnings generated by your voluntary super contributions have a cap on their taxes of 15%, likely lower than your individual tax rate. On top of this, salary sacrifice and personal concessional contributions are considered as pre-tax dollars, which may mean you will pay less tax. The idea behind the scheme is that it helps people save their first home deposit sooner, just keep in mind that if you change your mind about purchasing a property, these voluntary contributions will need to remain in your superannuation as you cannot pull them out for any other reason.

<h2>Using your super to invest in a commercial property</h2>

[smartcode_project:default project_id=25281]

Many people use their SMSF to buy commercial property or 'Business Real Property.' This can be done with related parties; however, the arm's length basis of SMSF property management still applies.

This is a very popular option for small business owners who may use their fund to purchase a business premises and pay their own rent back to the SMSF. This essentially saves them having to pay rent to someone else and is somewhat of a loophole around the personal use of a super fun investment property. There are, however, there are some conditions to consider if you are thinking about doing this:

1. The market rate must apply to the rent paid 

2. You are not allowed to give yourself any discounts

3. Rent must always be paid in full at each due date

4. The investment must provide retirement benefits for members of the fund

This last point is crucial as this strategy can very easily only offer benefit for the time that you own your business, but that isn't the point of super, it needs to yield a benefit once you retire. To satisfy this component, you will need to ensure that the property you are using your SMSF to purchase has an expected growth in property value. 

<h2>Borrowing with your SMSF</h2>

[smartcode_project:default project_id=6912]

You may be able to achieve a limited recourse borrowing arrangement (LRBA) which will allow you to borrow funds, via your SMSF to invest in property. This involves a separate property trust and trustee being established, which will hold the property outside the actual SMSF structure. Income, expenses, and loan repayments will still go via the super fund as per usual.

It is important to note, however, that the borrowing criteria in this instance is much stricter than usual, and incurs higher costs that may lessen the eligibility of the investment. You'll also need to find a financial institution that is willing to lend to an SMSF, which most won't for balances under $200,000.

<h2>Using superannuation to purchase property</h2>

[smartcode_project:default project_id=22700]

As you can see above, using your superannuation to purchase a property is not easy, and there are many conditions that will make it unattainable for most people.

That being said, if you manage to fit one of the situations in which this would be suitable, you could be looking at a very worthwhile investment strategy to not only increase your property portfolio but also plan for a comfortable retirement. Ensure that any investment you are making is worthwhile, <a href="/guides/how-much-should-you-spend-on-your-first-house-in-2020">stick within a reasonable budget for yourself</a>, and follow the rules to the letter, and this may be a very lucrative investment and superannuation strategy for you.
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Can I Use My Super to Buy a House to Live In?

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If you have been <a href="/guides/renting-vs-buying-a-house-what-s-right-for-you">renting for a while and have now decided it's time to buy a property</a>, understanding the cycles that the property market moves in can be extremely beneficial to picking when is the right time to purchase.

The property cycle is based around rises due to market growth, then plateaus and declines during certain phases. As someone looking to buy a home or become an investor, knowing where the market is and understanding the property cycle when buying will help you to secure the best price.

Based on the Australian property cycle history, the three stages of the cycle, increase, steady, and decrease, tend to confirm that property will always increase over time. <a href="/">Apartments.com.au</a> have put together this guide that you can refer to, to understand where we are in the property cycle and ensure that you are picking the most optimal time to buy.

<h2>The phases of the property cycle</h2>

<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/thephasesofthepropertycycle.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="355" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/thephasesofthepropertycycle.png?itok=kuNyi9dW" width="580"></a></figure>There are four main phases of the housing cycle that will determine boom times and slumps. You may be <a href="/guides/how-much-should-you-spend-on-your-first-house-in-2020">determining how much to spend on your first house</a>, and knowing these phases can help you get more value for your money. 

The four phases are:

1. The boom phase

The shortest of the cycle, the boom phase usually sees property prices increase quickly despite its slow start. As investors begin to notice a rise in property and rental rates, they begin to buy pushing the price of property up, often selling for more than the asking price. Everybody starts jumping on the bandwagon at this point, flooding the market and moving us all into the next phase.

2. The slump phase

The oversupply of property in the boom phase brings on the slump. The market is loaded with investment properties meaning vacancy rates increase the returns on rentals decrease. The previous rise in property prices come to a halt and sometimes even decline as new home buyers land in hot water, struggling with their repayments. Buyers often over-commit by purchasing properties they can't really afford in the boom phase, and a simple interest rate rise pushes them to the limit, forcing them to sell the property at a lower price.

3. The stabilisation phase

The phases as mentioned above, do not happen quickly or directly after one another, there is usually a period of stablisation in the market where things level out, prices simmer, and people regain their footing.

4. The upturn phase

Vacancy rates begin to fall and rent rise, and property values start to increase, giving a bit more swell to potential investment opportunities. The inner suburbs start to rise first, then those on the coast before the middle ring and outer suburbs follow suit. Property is most affordable in the middle of this phase, and those who have invested in property start to see favourable returns. This brings everything full circle as property values slowly increase as we head back to the boom phase.

<h2>Tips to navigate the property market life cycle</h2>

<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/tipstonavigatetheproperty.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="374" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/tipstonavigatetheproperty.png?itok=M4RH8BED" width="580"></a></figure>Successful property investment is reliant on good timing, amongst other things. Great timing and a long-term property strategy will lead to excellent outcomes from your investments. The following tips should be considered when looking at where we are in the property cycle, deciphering and then profiting from it.

<ul>
<li>
	Always consider the Australian property cycle history
	</li>
</ul>
Based on the Australian market history, a cycle usually lasts for about seven years. There are around three years for the slowdown and approximately four years of rising prices. This does not, however, account for the dynamics of each individual market, which will determine the rise, peak, and severity of the cycle.

<ul>
<li>
	Understanding triggers
	</li>
</ul>
Interest rates are one of the biggest triggers for movement in the cycle. Low-interest rates indicate opportune times to buy, and as they start to rise, the next phase is imminent. Another trigger can be migration and economic data. If the growth and economic indicators are moving up, then you should be ready for a growth phase. Good investing means looking outside of your area and paying attention to emerging hotspots that exhibit high capital growth and sound rental returns.

<ul>
<li>
	Be a crystal ball
	</li>
</ul>
If Australia is experiencing strong economic stability and low unemployment along with low-interest rates (the end of the property slowdown), then the upswing could be near with an interest rate increase on the horizon. Recognising these things is almost like seeing the future, a skill that you need to acquire to invest well. The future growth of the specific market you are looking at can <a href="/developments">be seen with proposed infrastructure projects</a> and areas in a significant growth stage are well-positioned for investment.

<ul>
<li>
	Keep asset selection in mind
	</li>
</ul>
Understanding the cycle works in tandem with the right asset selection. Knowing the right time to buy in the property cycle is pointless if you buy the wrong house or apartment. Good property is a long-term asset; it should increase in value, which requires a robust market in strong demand.

<h2>What influences the property cycle?</h2>

<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/whatinfluencesthepropertycycle.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="378" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/whatinfluencesthepropertycycle.png?itok=JzCwIG8t" width="580"></a></figure>Along with interest rates, there are other factors that influence the property cycle, and it is in your best interests to <a href="http://optimalprop.com/a-guide-to-finding-australias-best-suburbs-to-invest-in/">track and analyse</a> them to understand where the cycle is likely to move. Some of the other key factors include:

<ul>
<li>
	Population growth
	</li>
</ul>
Supply and demand dictates the property cycle. Population growth rises prices as demand pushing us into a stable phase. Keeping an eye on the developing population growth is a crucial part of your research process.

<ul>
<li>
	Exchange rates
	</li>
</ul>
Foreign investors who are looking to purchase property in Australia will be keeping an eye on when the AUD is lower as property prices become comparatively cheaper, bringing more overseas buyers into the market.

<ul>
<li>
	Unemployment
	</li>
</ul>
As mentioned above, low unemployment designates an excess of jobs, which is more attractive for investors, and high unemployment rates mean less value growth creating a more risky investment.

<ul>
<li>
	Banks
	</li>
</ul>
Lenders who are seriously looking to write new loans affect the property cycle. Lending criteria is often tightened during the drop phase.

<h2>Different phases at different times</h2>

<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/differentphasesatdifferenttime.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="372" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/differentphasesatdifferenttime.png?itok=oP2t_atI" width="580"></a></figure>It is vital that you understand that the property cycle isn't a blanket rule for the whole country. The whole of Australia will not experience the same phase at the same time. There are many cycles in their own phases of growth and decline happening all at once throughout the Australian property market.

The factors that influence the cycle remain the same, but various cities and suburbs will experience them at different times. This is one of the main reasons why serious investors have a diverse portfolio of properties that exist in different property cycles.

<h2>Using the property cycle to your advantage when buying</h2>

<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/usingthepropertycycletoyouradvantage.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="445" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/usingthepropertycycletoyouradvantage.png?itok=QlN4-H3J" width="580"></a></figure>Understanding the property cycle, it's influential factors and momentum will hopefully be a little easier for you know after reading all of the information above. This should also help you with knowing when is the right time to buy. Invest when the market has been stable for awhile, or in the growth stage before the peaks.

Try to navigate the dynamics of each micro-cycle and understand the various markets with research, what has happened in previous cycles, and the triggers that indicate movement. A safe bet is knowing that when interest rates are low, it is an excellent time to buy before the cycle moves to the next phase. If rates and prices are beginning to creep up, you may have missed the boat and will do well to wait a little while for a more efficient investment.

All of this also applies to those looking to purchase their first property as well. <a href="/guides">We have a range of blogs</a> that can give you tips on how best to build your property portfolio while ensuring that you stay out of the red and on an upward swing.
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Understanding the Property Cycle When Buying

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If you own a property, the difference in the amount you own on that property and its market value is known as equity. When people mention equity, you may be asking some questions like how does equity work in property? The main benefit is your ability to access this equity to secure further finance for things like maintenance and renovations or a deposit for your next home <a href="/guides/2019/06/24/own-rental-property-here-are-14-things-to-check-to-avoid-major-problems-in-future">or investment property</a>.

You may also use this equity to fund other wealth-building opportunities like a managed fund or shares.

Regardless of what you intend to use it for, your equity can be a valuable asset, and <a href="/">Apartments.com.au</a> have put together this guide to discuss precisely what is equity in property investment and the advantages and disadvantages of equity in property investment.

<h2>What is equity in property investment?</h2>

<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/whatisequityinpropertyinvestment.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="385" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/whatisequityinpropertyinvestment.png?itok=acROPYBy" width="580"></a></figure>To understand how much equity you have in your property, your financial institution will require you to get a professional <a href="https://www.commbank.com.au/guidance/property/understanding-property-valuations-201701">property valuation</a>. You can estimate how much your property may be worth, but in regards to securing finance, you'll need to arrange an expert to give a definitive figure.

There are a number of factors that will determine if you can borrow additional funds to access your equity, including:

<ul>
<li>
	Income
	</li>
	<li>
	Living expenses
	</li>
	<li>
	The remaining amount owing
	</li>
	<li>
	Lenders' Mortgage Insurance (LMI)
	</li>
	<li>
	The property valuation
	</li>
</ul>
There may be other circumstances concerning your loan that may apply, and in some cases, you may only be able to access a certain percentage of your equity. It is vitally important to discuss all of this with a lender before making the decision to go ahead with accessing your equity to confirm that you are not overcommitting and risking financial hardship.

<h2>Building equity in your home</h2>

<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/buildingequityinyourhome.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="381" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/buildingequityinyourhome.png?itok=zb3Fgj5w" width="580"></a></figure>Based on the information above, it is clear that more equity is a good thing. It is a substantial factor that can significantly <a href="/guides/how-much-can-i-borrow-for-a-new-home">increase how much you can borrow for new property</a>. You can build equity in your home to improve your financial position via a number of methods, including:

<ul>
<li>
	Renovating your home to increase its value
	</li>
	<li>
	Making more repayments to reduce your loan balance
	</li>
	<li>
	Some financial institutions will offer a line of credit allowing you to access a pre-approved amount of your
	</li>
	<li>
	Using a mortgage offset account in which your savings offset your loan balance, reducing the interest charged on your loan
	</li>
	<li>
	Tax deductions via increased interest charged (when using the equity for an investment property)
	</li>
</ul>
It is important, however, to remember that using any equity you may have in your property may increase the amount you owe, resulting in higher repayments. Some loans also have restrictions which prevent you from accessing equity and making additional repayments.

<h2>Advantages and disadvantages of equity in property investment</h2>

<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/advantagesanddisadvantagesofequity.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="360" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/advantagesanddisadvantagesofequity.png?itok=e4do_xB_" width="580"></a></figure>While the accessing of equity is something that many investors and homeowners do due to its advantages, there are also some risks involved that you will want to be aware of.

If you are looking to expand your property portfolio <a href="/guides/does-landscaping-increase-property-value">or even just renovate a current property</a>, equity could help you to do it. This is where the ability to boost the equity in your property, as mentioned above, will offer you more options financially. 

The advantages of using equity

<ul>
<li>
	Lower interest rates
	</li>
</ul>
Accessing equity without having to sell the property means that the extra money you borrow sits at the low-interest rate of your mortgage, which is likely a lot less than getting a personal loan or credit.

<ul>
<li>
	Extra funds
	</li>
</ul>
Equity boosts up your savings to help fund another property, shares and managed funds, or a renovation.

<ul>
<li>
	Can raise the value of your home
	</li>
</ul>
If you are putting these new funds back into your home via a renovation, you can boost your property's value. Just ensure that the amount you are investing in improvements actually increases the property's value by the same amount, if not more. 

The disadvantages of using equity

<ul>
<li>
	Larger repayments
	</li>
</ul>
Using your equity will increase how much you owe and the interest charged. Ensure that you will still be able to afford your new repayments after accessing the equity as you don't want to put yourself into financial hardship. Your lender will be able to inform you of your new repayment amount. If you are using these funds for something like an investment property, they may generate income which will help offset the higher repayments. In this situation, you will need to account for potential interest rate rises as you may be able to afford an increase in repayments now, but many people find themselves in financial stress if they are overburdened by a rate rise.

<ul>
<li>
	More risk
	</li>
</ul>
Borrowing more to invest magnifies your risk. You are essentially investing money that you don't have meaning it’s crucial for the investment to make a return. A loss is further compounded by the interest you are paying on the funds. Before making any moves like this, it is best to speak to a qualified accountant or financial planner to fully understand your risk profile.

<ul>
<li>
	Excessive interest 
	</li>
</ul>
The interest rate may be relatively low, however over a 25 or 30-year loan term you are paying thousands of dollars in interest. Accessing your equity will absolutely cost you far more in the long run if you leave the loan for its full term.

<h2>Things to be aware of</h2>

<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/thingstobeawareof.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="382" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/thingstobeawareof.png?itok=f1pm5AKP" width="580"></a></figure>If you are considering a home equity loan or line of credit, you'll need to keep a few extra things in mind, on top of all of the above information, before making your final decision.

1. There must be enough equity in your home 

You still need to have enough equity in your property to satisfy the bank. If your property is worth $400,000 and you borrow $400,000, selling the house for enough to pay the loan, <a href="/guides/how-much-does-it-cost-to-sell-a-house-or-apartment">inclusive of the extra costs involved in this process</a>, may be difficult. The financial institution will look at your combined loan-to-value ratio, which is the amount of your original loan added to the new loan, divided by the total value of your home. If it doesn't sit around 80% or less, your proposal may be knocked back.

2. Interest is tax-deductible 

A benefit in most cases is the tax-deductibility of loan interest, which may save you thousands of dollars.

3. You may be charged a higher rate of interest on a home equity loan

In some cases, you may be charged a higher rate of interest than that of your standard loan; however, this will still likely be a lower interest rate than a personal loan or credit card.

4. It may be considered as a second mortgage

In the unfortunate event that your home is foreclosed and sold for less than owed on the two mortgages, the first mortgage would be paid in full, possibly leaving you with an amount due on the second. Tapping into your equity sometimes comes with a higher interest rate, and as mentioned earlier, higher risk.

<h2>The decision to use your equity</h2>

<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/thedecisiontouseyourequity.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="382" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/thedecisiontouseyourequity.png?itok=3x_tZMk6" width="580"></a></figure>The use of equity as part of a financial strategy to increase investments is not a new idea, and many investors do this regularly without any issues. However, it is essential to accurately assess your financial situation before making the decision to do this, as your risk levels will increase. There <a href="/guides/top-10-hidden-costs-of-buying-a-house-or-apartment-in-2021">are many hidden costs associated with buying property</a>, so you will need to ensure that all figures are accounted for when running your numbers.

Borrowing against your home may seem like a great way to knock off that credit card debt and lower your interest rate but taking too much equity out of your home and owing more than the property is worth, especially in the unfortunate event that your home loses value, can be a big problem. To avoid this, be sure that you can make the payments for the life of the loan and ensure that whatever it is you are borrowing for is worth it.
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How Does Equity Work in Property

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Believe it or not, you can actually invest in property with little to no money if you're sensible and have done thorough research. 

We should mention that these scenarios are very case-specific and will not apply to everyone, but if you happen to mirror some of the situations that we are about to explain, you will be well on your way to property investment <a href="/guides/looking-for-a-home-on-a-budget-here-are-10-melbourne-apartments-under-385-000">on a budget</a>. We’ll also look at what is required for those on a low-income to secure a property loan.

<a href="/">Apartments.com.au</a> has updated this guide for 2020.

<h2>Existing equity</h2>

[smartcode_project:default project_id=26574]

If you are in a situation where you already own a home or investment property, you can use the existing equity to borrow against, using those funds to finance a new deposit. This is perfect for homeowners who are thinking of branching out to <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">build their portfolio and include a rental</a>.

Accessing equity works in place of you needing to have the actual savings, and as a bonus, the equity will grow faster with more properties, which mean more capital growth. This turns into somewhat of a snowball as the more equity you can access, the easier it is to build your property portfolio.

It is, however, important to note that this common strategy also creates a higher level of risk. While property investors grow their portfolios using equity, so they don't have to cough up any savings, they are at a higher risk of default. Many people also feel that this strategy keeps house prices high as people borrow on top of wealth made during a boom.

<h2>Use a guarantor</h2>

[smartcode_project:default project_id=29921]

The first point is all well and good if you already have a foot in the property door, but what if you don't? 

Another method for how to invest in property with low income is a guarantor loan which helps <a href="/guides/how-much-can-i-borrow-for-a-new-home">increase how much you can borrow</a>. Some financial institutions will offer guarantor loans in cases where a friend or a family member will guarantee a percentage of the mortgage on your behalf. They don't even need to guarantee the full loan, which is less risk for them.

Most banks and other lenders will allow the guarantor to cover a certain percentage of the loan. In an ideal situation, the 80% LVR (Loan to Valuation Ratio) sits with you, and the remaining 20% is secured in cash or through the guarantor loan. This means that in some instances approved by the bank, you can use a guarantor to cover the bits you don't have.

You can also remove the guarantor once you have enough of your own funds or equity to cover the debt, meaning your friend or family member only has to be involved for a shorter period.

<h2>Seller finance</h2>

[smartcode_project:default project_id=29389]

Before getting too excited about this option, be wary that it is legal in Australia but uncommon. <a href="https://www.yourmortgage.com.au/mortgage-news/understanding-seller-financing-in-home-loans/222126/">Seller finance is an agreement</a> between the seller of the property and you, where you take a loan with the owner rather than a bank.

Why do this? It saves you needing a deposit. Basically, you agree to pay full price for the property with interest on an ongoing basis and negate the need to have the funds upfront for a deposit.

This is obviously something that benefits the buyer and the seller as they are receiving full price for their property plus interest and you are negating the need for savings upfront. Keep in mind that sellers may charge steep interest rates and there is no cap or authority governing the loan. Seller is high risk but it offers a chance to get in on a property with a deposit, or when the bank will not approve a loan. If you are able to find yourself where this is on the table, it could work to your favour. 

<h2>Property options</h2>

[smartcode_project:default project_id=7742]

Even rarer than the last point if the process of property options. The idea here is approaching the owner of a property with an amount that you are willing to pay for the option to purchase the property.

Why? The agreement allows you to purchase the property at a lower price if it goes up in value, making a loan for the purchase amount more attainable due to a higher property valuation. As this is more complicated than a standard purchase, you will need to work with a lender who understands these agreements and is willing to base the loan on the valuation, not the purchase price. 

<h2>Partnership agreements</h2>

<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/partnershipagreements_0.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="375" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/partnershipagreements_0.png?itok=g7A9_FpG" width="580"></a></figure>Much like getting a financier for a business idea, you could organise a partnership who has the deposit and is willing to foot the bill in exchange for you doing the legwork. This may only provide you will a smaller ownership percentage of the property, but it's a start and a good way to become an owner without the need for the cash.

This works well for those who are money-rich and time-poor that want to invest in property and essentially pay someone else with a share of the property to run the process for them. Property purchase, <a href="/developments">along with research into new developments</a> to find the right investment, takes a significant amount of time. You may even negotiate them paying the deposit in return for your work organising the purchase, help finance the property with your wage giving you a 50% stake.

You will need to consider the <a href="https://www.lawdepot.com/au/partnership-agreement/#.XjpKjxMzY_U">legal requirements</a> involved in this, preferably seeking the help of a professional legal advisor, so it is very clear how profits and losses will be split.

<h2>Qualifying for a mortgage on low-income</h2>

[smartcode_project:default project_id=25891]

There isn't a specific amount you need to earn to qualify for a mortgage as the lending criteria and serviceability models vary with every institution. There <a href="https://www.commbank.com.au/digital/home-buying/calculator/how-much-can-i-borrow">are a range of calculators online</a> that will help give you a guide to how much you may be able to afford to borrow.

Your income is one of the most crucial factors in this process as it determines your capacity to make the necessary payments, with loans, expenses, and debts taking into account along with your saving patterns.

Your income sources will include not only your primary wage, but also rental income from an investment property, government benefits, or dividends from other sources. With all of this, the financial institution will estimate an amount for your income in conjunction with your loan repayments and other expenses to determine the amount of money they are willing to lend.

Taking all of this into account, the following criteria is vital for low-income earners who are looking to buy property:

1. Evidence of "genuine savings" 

2. A deposit of 10-20%

3. A proposed investment purchase of a viable investment (preferably in a location with predicted capital growth, demand, and high rental yield)

This last point is vital as your potential property needs to be marketable in case it needs to be repossessed and sold. <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">If you are looking at purchasing for an investment</a>, provide the lender with an investment strategy after you have spoken with an accountant and a financial planner to ensure you are making a sound investment. A benefit for you here is that estimated rental income is taken into account when calculating your borrowing capacity. Properties with a high yield help your ability to service the loan.

<h2>Figuring out how to invest in property with little money</h2>

[smartcode_project:default project_id=29913]

If you are looking at taking your first dive into the property market, <a href="/guides/how-much-should-you-spend-on-your-first-house-in-2020">it can be challenging to know how much you should spend on your first property</a>. This can be even harder if you have low income or limited savings, and hopefully, some of the information above will help you make some headway into what could be a fruitful investment plan for your future. Keep in mind the level of risk in each strategy and ensure that it is worth it.

The main thing to keep in mind is not to overcommit financially purely for the sake of owning property. In some cases it may be better to wait until you have a little more collateral to ensure that you don't end up in a dangerous situation which can put you in a financial hole, creating a situation that is the opposite of what you were hoping to achieve. Be smart, consult some professionals in regards to your finances, and make sure that the steps you take into the world of property will benefit your situation.
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How to Invest in Property with No Money

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Understanding the value of a house, be it one you own or one you are looking at purchasing, is vitally important. You will want to know how to value a house for insurance, <a href="/guides/how-to-negotiate-when-buying-a-house">understand where you sit in the negotiation process</a>, how much equity you have, or how well your investment is doing. Knowing how to value a house helps you to gain this information.

Urban.com.au have compiled these seven tips on how to determine the market value of property. Once you understand how to calculate property value, you will be best positioned to determine how to value a house for sale.

<h2>Tip 1: Have an appraisal done by a professional</h2>

<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/tip1haveanappraisaldone.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="382" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/tip1haveanappraisaldone.png?itok=l9oGEXq9" width="580"></a></figure>We'll get the obvious one out of the way first. The surefire way to calculate property value is by hiring a professional to evaluate your home. We'll go into some more cost-efficient ways to determine the market value of property in the following points, but as with everything, you'll get the best answer if you are willing to pay for it.

You will notice that an appraisal is a required step in the mortgage application process <a href="/guides/how-much-can-i-borrow-for-a-new-home">to help determine how much you can borrow</a>, but you can hire an appraiser at any point to get you this information.

A professional appraiser can even give you a value for a date in the past if required as you may need that information for tax purposes or you can determine the current market value which is a more common request.

Appraisers will give you a property value estimate based on:

<ul>
<li>
	The market in the location of the property
	</li>
	<li>
	The current state of the house and land including any improvements 
	</li>
	<li>
	A comparison in sales, cost, depreciation and other relevant elements in the market for similar properties
	</li>
</ul>
<h2>Tip 2: Try online valuation tools</h2>

<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/tip2tryonlinevaluationtools.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="381" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/tip2tryonlinevaluationtools.png?itok=llymjc5c" width="580"></a></figure>A simple search online for a 'how much is my house worth calculator' is a much more cost-efficient way for how to value a house for sale, however a little less exact than point one. Still, it's a great place to start and <a href="/guides/20-things-you-should-look-out-for-before-you-buy-property">a handy thing to do if you are considering buying a particular property</a> as well.

Many financial institutions offer <a href="https://www.hometrack.com.au/products/risk-management-solutions/automated-valuation-model/">automated valuation models</a> which take into account property transfers, tax assessments, and deeds of ownership, plus the current state of the market, recent sales and listing prices, to predict the value of a property in a particular location. 

Keep in mind that businesses or financial institutions have created these tools marketing and lead generation purposes and are using limited data to provide answers which is why the accuracy isn't as good as a professional report, but you get what you pay for.

<h2>Tip 3: Research similar properties</h2>

<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/tip3researchsimilarproperties.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="304" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/tip3researchsimilarproperties.png?itok=hNJDrFM9" width="580"></a></figure>A great way to get a very realistic figure is to perform your own research on similar properties in the area and see what they have sold for, or what their asking price is, recently. The sale value of comparable properties is something the online tools use as well, and it is a simple way to get some good quality data.

One thing to be aware of when determining market value via this method is that the property next door may not be comparable based purely on location. You need to take into account size, condition, and any upgrades as well. For this reason, you may want to look for similar style homes or apartments in a wider radius rather than just sticking to your street or block.

The best steps to handle this yourself are:

1. Find recent sale prices of comparable houses nearby

2. Make a note of listing prices, but keep in mind these are not as realistic as sale prices

3. Three comparisons are the minimum number you'll need for an accurate picture

4. Adjust for any significant differences between the properties; you may need to account for more bedrooms or an older interior

5. Look at the highest and lowest figures and place your property somewhere in the middle

It is important to note that all of this will only give you a ballpark figure, but it is a great place to start to get an idea on what your property is worth or to ensure that you are <a href="/guides/buying-right-investment-wise">buying right when it comes to investments</a>.

<h2>Tip 4: Use a comparative market analysis</h2>

<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/tip4useacomparativemarketanalysis.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="415" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/tip4useacomparativemarketanalysis.png?itok=0qj8wGXx" width="580"></a></figure>To save you some time on the last point, you can speak to local real estate agents about a comparative market analysis (CMA). Once again, these will not be as detailed as a professional appraisal, but it will give you a small headstart on getting a lot of the required information yourself.

This information is handy for your selling preparation or <a href="/guides/5-tips-every-first-home-buyer-needs-to-know">figuring out your ballpark buying figure</a>. The analysis is usually based on the agent’s evaluation of the market for listing purposes. You may be able to get one of these given to you for free, but once again it is important to note it will likely be a marketing tool, and the agents are looking to impress you with how much they will be able to sell your home for, so the accuracy of these figures should not be taken as gospel.

<h2>Tip 5: Avoid these mistakes</h2>

There are some common mistakes that can be made by people who are trying to calculate property value without professional help, which should be avoided at all costs.

Keep the following points in mind during your process:

<ul>
<li>
	If comparing properties that are currently on the market, remember that they have not had an agreed price so are really only listed as what the seller is wanting, and this may be an unrealistic expectation. Only compare your property to properties that have sold
	</li>
	<li>
	Any advice from an agent may be based on other offers on the property or a particular price that they want the property sold for
	</li>
	<li>
	Emotional attachment often makes people believe their home is worth more than it actually is, the same can happen with buyers who fall in love with a property, offering more than it is worth. It's always best to leave emotion entirely to the side
	</li>
	<li>
	Market research should also involve going to open homes and auctions 
	</li>
	<li>
	Brand new properties come with a higher price, so compare with older more established locations as opposed to <a href="/guides">off-the-plan developments</a>
	</li>
	<li>
	Always ignore the media when the claim prices are going to plummet or skyrocket, this is not a trustworthy source of information
	</li>
</ul>
<h2>Tip 6: Take note of this useful data</h2>

<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/tip6takenoteofthisusefuldata.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="390" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/tip6takenoteofthisusefuldata.png?itok=0D7-f6eA" width="580"></a></figure>There are plenty of ways to figure out how to value a house for sale with a range of useful information about the property market. 

The following are the key pieces you'll want to gather to ensure you have everything you need:

<ul>
<li>
	<a href="https://www.realestate.com.au/advice/median-house-price-what-does-it-mean/">Median house prices for your particular area</a>
	</li>
	<li>
	Information about any new developments in the area
	</li>
	<li>
	The auction clearance rate which is the percentage of auctions resulting in a successful sale (including before or just after the auction)
	</li>
	<li>
	Discounting percentage which is the average discount below the listing price 
	</li>
	<li>
	How many days property spends on the market
	</li>
</ul>
<h2>Tip 7: Do what you can to ensure a good valuation</h2>

<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/tip7dowhatyoucantoensure.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="326" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/tip7dowhatyoucantoensure.png?itok=UCwUavmM" width="580"></a></figure>While this final tip isn't necessarily about how to value a house, it is an important one for getting the best result out of a valuation.

A low-ball valuation can your chances of refinancing, and there are a few things you can influence to add a few more dollars onto your figure, including:

<ul>
<li>
	Ensure the home looks fantastic, spruce up the garden, repair anything that is broken, give the place a good clean and even a new paint job if you have time
	</li>
	<li>
	Make a note of any unseen improvements like new wiring and underfloor heating while also pointing out improvements in your area like a new playground on your street etc.
	</li>
	<li>
	Let the valuer know about similar sales nearby, they should, of course, know this but it doesn't hurt to remind them, especially if they have been for high amounts
	</li>
	<li>
	Prepare any recent council rates notices or land tax valuations
	</li>
	<li>
	Let the valuer know if you are planning renovations and provide architectural or building plans
	</li>
</ul>
<h2>Understanding the value of your house</h2>

<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/understandingthevalueofyourhouse_0.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="384" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/understandingthevalueofyourhouse_0.png?itok=iUPuyFGT" width="580"></a></figure>The above points will allow you to obtain the all-important information on how much your home is worth. The reason why you are gathering this information will dictate the level to which you will go to get it.

For example, if you are looking at selling or refinancing, then a professional valuation will likely be required. If however you are just curious or projecting some future plans, then the free DIY ways will suffice.

Either way, understanding the value of one of your most significant assets, is always a good thing, <a href="/guides/2019/06/24/own-rental-property-here-are-14-things-to-check-to-avoid-major-problems-in-future">especially if you wish to use the property as a rental</a>, to know how your investment is tracking.
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