Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

[smartcode_project:default project_id=152069 project_image_fid=374394]

Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

[smartcode_project:default project_id=152069 project_image_fid=374399]

Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

[smartcode_project_cta:default project_id=152069]

Joel Robinson

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

Luxury apartment buyers have long prioritised design, space and finishes, but increasingly they're placing equal importance on something less tangible: how easily they can live without relying on a car.

At <a>Richmond Square</a>, <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> believes that convenience begins beyond the apartment itself, with the mixed-use precinct earning a near-perfect Walk Score of 99.

The development has been planned around the idea that some of the most valuable amenities aren't contained within a building, they're the restaurants, cafés, parks, transport connections and daily conveniences that can all be reached on foot.

Located just behind Swan Street and Church Street, <a href="https://www.apartments.com.au/new-apartments/richmond-square-1-wiltshire-street-richmond-vic-3121">Richmond Square</a> places residents within one of Melbo​u​rne's most established lifestyle precincts while offering a quieter residential setting removed from the busiest thoroughfares. East Richmond Station is moments away, trams run along both Swan and Church Streets, and the MCG, Melb​​ourne Park, Yarra River trails and the CBD are all within walking distance. At the same time, the precinct itself will introduce a curated mix of dining, retail, hospitality and wellness offerings, creating a destination that extends well beyond its residential buildings.

[smartcode_project:default project_id=13181 project_image_fid=348530]

For Fortis, that combination of location and scale was what made the site unique.

"<a href="https://www.apartments.com.au/developments/richmond-vic-3121">Richmond</a> is one of Melb​o​urne's most established and distinctive inner-city neighbourhoods, with a rare combination of dining, culture, recreation, public transport and proximity to the CBD," the developer said.

"The opportunity at Wiltshire Street was particularly compelling because the site sits slightly removed from the activity of Swan and Church Streets while remaining only moments from everything that makes the area desirable."

Rather than developing a standalone apartment building, Fortis consolidated 15 individual properties to create one of the larger development parcels assembled on Mel​b​ourne's city fringe in recent years. That allowed the team to deliver a genuine mixed-use precinct comprising 107 residences across Wiltshire House and Carmine House, premium office space, hospitality venues, retail, wellness offerings and a future 57-room hotel.

"The scale of the site allowed Fortis to think beyond a standalone apartment building," the developer said.

"Richmond Square could be planned as a complete lifestyle precinct, bringing homes, workplaces, dining, retail, hospitality and wellness together around a series of activated public spaces. The aim was to create a destination that feels connected to Richmond rather than separate from it."

[smartcode_project:default project_id=13181 project_image_fid=348533]

The emphasis on walkability has also resonated with buyers.

Interest has been strongest from established owner-occupiers, particularly downsizers from Richmond and Melb​ourne's inner east who want to remain close to familiar restaurants, workplaces, family and social networks while moving into a more secure, lower-maintenance home. The project is also attracting Mornington Peninsula and interstate buyers seeking a Melb​ourne residence they can lock up and leave between visits.

Many are looking for generous living spaces, room to entertain, quality finishes and confidence in the project team, but location remains one of the biggest deciding factors.

"For many buyers, Richmond Square provides a way to simplify the practical side of home ownership without reducing the quality of their lifestyle," the sales team said.

"Location is also a major driver of interest. Buyers can remain connected to the CBD, major sporting events, the arts centres, local restaurants, cafes and bars and their family while living in a private and secure residence that is easy to lock up and leave for weekends or longer periods away."

[smartcode_project:default project_id=13181 project_image_fid=348549]

The residences themselves have been designed with that buyer in mind. Award-winning architecture practice SJB and interior designers Hecker Guthrie have created spacious two and three-bedroom apartments and penthouses that prioritise generous living areas, natural light, bespoke joinery and private terraces. Above, a rooftop sanctuary by Acre includes landscaped lawns, bookable dining rooms, barbecue facilities, wellness spaces and panoramic views across the CBD, the MCG and Port Phillip Bay.

Fortis believes Richmond Square reflects a broader evolution in apartment living, where the surrounding neighbourhood becomes just as important as the residence itself.

"Richmond Square introduces a different proposition: generously proportioned residences within a genuinely mixed-use, hospitality-led destination," the developer said.

"The project's location and Walk Score of 99 further support a lifestyle where residents can complete many everyday journeys without relying on a car."

Fortis has assembled an experienced team that includes <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, <a href="https://www.apartments.com.au/interior-designers/hecker-guthrie">Hecker Guthrie</a>, <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a> and builder <a href="https://www.apartments.com.au/builders/hacer-group">Hacer Group</a>, reflecting the developer's commitment to creating projects with enduring design quality and meaningful connections to the communities in which they sit.&nbsp;

Richmond Square is an expression of that philosophy, bringing together homes, workplaces, hospitality and wellness within one of Me​lb​ourne's most walkable neighbourhoods.&nbsp;

Construction is now almost complete, providing purchasers with growing confidence ahead of its expected September 2026 completion.

[smartcode_project_cta:default project_id=13181]

Walk Score of 99 places Richmond Square at the heart of Melbourne's most connected lifestyle

<h3 data-end="19" data-section-id="1dvgwoe" data-start="0">Summary</h3>

<ul data-end="634" data-start="21">
	<li data-end="170" data-section-id="1o77v31" data-start="21">Walker Corporation has lodged plans for a second major residential development in the Maroochydore City Centre, a 29-storey tower known as Celeste.</li>
	<li data-end="327" data-section-id="1lb0y6t" data-start="171">The Plus Studio-designed proposal at Lot 30 Sunshine Coast Parade would deliver 208 apartments, including four four-bedroom sub-penthouses and penthouses.</li>
	<li data-end="487" data-section-id="za720" data-start="328">The application comes as Walker doubles down on Maroochydore following the strong sales campaign at SOL by Walker, where the first tower is nearing sell-out.</li>
	<li data-end="634" data-section-id="5sovec" data-start="488">Walker is a key partner in the transformation of the Maroochydore City Centre, which is expected to ultimately deliver at least 4,000 new homes.</li>
</ul>

Walker Corporation is doubling down on Maroochydore following the successful sales campaign at its first residential project in the emerging CBD.

The national developer has filed plans for <a href="https://www.apartments.com.au/new-apartments/celeste-30-sunshine-coast-parade-maroochydore-qld-4558">Celeste</a>, a new 29-storey apartment tower at Lot 30 Sunshine Coast Parade, just metres from its under-construction SOL by Walker development.

The plans, prepared by Plus Studio, would see 208 apartments delivered across a 100-metre tower on the 2,376 sqm site, which fronts Sunshine Coast Parade, First Avenue and Future Way within the Maroochydore Priority Development Area.

<img alt="Walker" data-entity-type="file" data-entity-uuid="17038209-6fea-4ed2-855d-fd4df65b3d02" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.16%E2%80%AFAM.png?VersionId=iZD.oVXcQn.aLpUytDAW.CWjxP4puWMy" />

The proposed apartment mix comprises 36 one-bedroom apartments, 48 two-bedroom apartments, 72 two-bedroom apartments with an additional multipurpose space, and 48 three-bedroom apartments.

The upper levels would be capped by two four-bedroom sub-penthouses and two four-bedroom penthouses, taking the total apartment count to 208. The preliminary yield study also provides 262 car spaces, 114 resident bicycle spaces and storage for each apartment.

It represents Walker's next major residential move in the new Maroochydore CBD after the success of SOL by Walker, its $220 million two-tower project nearby.

SOL launched to market in early 2025 and has since seen strong demand, particularly from local owner-occupiers. By February this year, Walker said the first SOL tower was nearing sell-out, with a strong waitlist also emerging for its recently released penthouse collection.

Construction is already underway on SOL, with the first tower expected to be completed in late 2027 and the second to follow in early 2028.

[smartcode_project:default project_id=147777 project_image_fid=319846]

<h2 data-end="2518" data-section-id="1b2dyo5" data-start="2459">Celeste to rise 100 metres over Maroochydore City Centre</h2>

Celeste would take a different form to the twin 19-storey buildings at SOL.

Plus Studio has designed a single 100-metre tower above an activated podium, with the architecture responding to the site's prominent position and three street frontages.

The podium would incorporate commercial tenancies and public art, with sweeping façade elements wrapping the street edges. The scalloped concrete podium has been inspired by the patterns created in sand at low tide, while extensive landscaping would continue vertically through the tower.

The ground level plans show three commercial tenancies addressing Sunshine Coast Parade alongside the residential lobby and landscaped public realm. The podium would then accommodate several levels of car parking before the residential tower rises above.

<img alt="Celeste" data-entity-type="file" data-entity-uuid="121f77b1-71c5-46d7-9b36-0a7d474211ca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.47%E2%80%AFAM.png?VersionId=MGrg9Hb7HgzLN0Lelq_xrXNAruVl77ia" />

Plus Studio said the tower had been designed to maximise views from each apartment, taking in the Maroochy River, Sunshine Coast hinterland, Cotton Tree and Maroochydore Beach and ocean.

Those views have also shaped one of the project's key features, with Walker proposing to put the primary resident amenity on Level 29 rather than lower within the building.

The rooftop would feature a 284.9 sqm pool area with an infinity edge, along with a cold pool, spa, sauna, 93.2 sqm gym, sunset lounge, BBQ and dining areas, pool deck and private dining space. Cabanas and day beds are also shown across the recreation level.

The two penthouses would extend across the upper levels and each feature private terraces and plunge pools.

<h2 data-end="4202" data-section-id="v5f4ix" data-start="4160">Walker's growing Maroochydore footprint</h2>

Celeste further reinforces Walker's commitment to the transformation of Maroochydore City Centre.

Walker is one of the key partners delivering the new CBD alongside Sunshine Coast Council and SunCentral Maroochydore, with the broader 62-hectare Priority Development Area occupying the former Horton Park Golf Course and surrounding land.

The precinct is ultimately expected to accommodate at least 4,000 new homes as Maroochydore evolves into the Sunshine Coast's principal commercial and residential centre.

When SOL secured approval in February 2025, Walker Managing Director and CEO David Gallant described it as the "first of many residential projects" the company planned for the Maroochydore City Centre.

Celeste now provides the clearest indication yet of what comes next.

The site sits immediately within the new CBD, with the design report identifying Sunshine Plaza and surrounding parkland within walking distance and Maroochydore Beach around a five-minute drive away.

For Walker, the timing of the application comes as its first residential bet on the new CBD appears to have been vindicated.

SOL has progressed from planning approval to construction while its first release has approached sell-out, giving Walker confidence to push ahead with another 208 apartments and take its residential pipeline in the Maroochydore City Centre to around 450 dwellings across the two projects.

Celeste remains subject to planning approval, with the architectural material describing the scheme as a preliminary yield study that may change through the assessment process.

Walker doubles down on Maroochydore with 29-storey Celeste apartment tower

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

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

<html><body>
A sharp fall in house prices remains a "remote" possibility, says Business Spectator economist Stephen Koukoulas.
He says weakness in new housing construction,  strong population growth and the ability for the RBA  to cut the cash rate even further will guard against this happening.
However, ‘The Kouk’ has expressed surprise at the recent dip in house values with <a target="_blank" href="https://www.propertyobserver.com.au/residential/autumn-blues-as-dwelling-values-dip-again-in-may-rpdata-timlawless/2013052661671">RP Data’s daily index pointing to a 1.5% decline</a> over the past two months, leaving house values up just 1.2% in net terms since the start of 2013. <a href="https://www.propertyobserver.com.au/residential/house-prices-to-rise-10-this-year-as-part-of-upward-trend-koukoulas/2013020159098" target="_blank">In February</a>, he tipped house prices to rise 10%  over 2013 as part of an "upward trend" after dwelling values rose 1.2% in January according to RP Data-Rismark.
He says he is sticking with this forecast "more or less".
The latest dip means house prices are still 5% off their peak from two years ago.
Koukoulas said if the price decline gathered momentum, the cash rate could fall to around 2% or even 1% in a “worse case scenario”.
Koukoulas says while it’s not clear what is behind the recent house price dip, he points to the recent fall in consumer sentiment and an “updrift” in the unemployment rate as to possible factors.
However, he draws a clear distinction with the house price collapses in the US, the UK, Ireland, Spain and says the Australian housing market is “fundamentally different” because these countries’ house price bubbles were accompanied by a housing construction boom.
“If anything, housing construction in Australia is in the doldrums, with new construction bouncing along at very low levels.
“Perversely, perhaps, this weakness in new housing construction is good news for now as it means there is little risk of a glut of property coming on to the market should there be a more worrying house price fall in the months ahead,” he adds.
Other factors preventing a sharp fall in house prices, he says are the recent decisions by the RBA to cut interest rates and “extremely favourable demographics” such as “especially strong population growth”.
He says the RBA can do a lot more on interest rates and is why it has maintained an easing bias.
</body></html>

lschlesinger-FZcF9M3vE6

Chance of a sharp fall in house prices “remote” Stephen Koukoulas

<html><body>
Autumn has brought with it a cold wind blowing through the property market.
With just a few days to go until the end of the month, the RP Data daily index suggests house values will decline by about 1% in May following a <a target="_blank" href="/news">0.5% drop in April.</a>
“RP Data's capital city dwelling index looking soft for May, likely to be down nearly 1% for month (-0.9% past 28 days),” tweeted RP Data national research director Tim Lawless today.
This follows dwelling values posted a solid 2.8% gain over the first three months of 2013.
The graph below, posted by Lawless, shows the modest and bumpy recovery beginning in about November last year and the recent dip.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/05/rpdatadwellingsmay27one.jpg" title="Click to enlarge"><img src="/images/stories/2013/05/rpdatadwellingsmay27onethumb.jpg"></a>
The latest property market decline was noted by economist Stephen Koukoulas from consultancy Market Economics.
"House prices are falling again. If these falls are the start of a new trend lower rather than just a bit of a blip could be a very unpleasant signal that will require a policy reaction from the Reserve Bank," he <a target="_blank" href="https://www.propertyobserver.com.au/residential/autumn-blues-as-dwelling-values-dip-again-in-may-rpdata-timlawless/2013052661671">wrote on Business Spectator today</a>. 
RP Data senior research analyst Cameron Kusher noted in April<a target="_blank" href="https://www.propertyobserver.com.au/residential/first-quarter-usually-has-the-year-s-strongest-residential-property-market-cameron-kusher/2013041760473"> that dwelling values are “typically the strongest for growth” in the first quarter of the year</a>.
</body></html>

Autumn blues as capital city dwelling values dip again in May: RP Data

<html><body>
It would be pretty clear to most economic observers that the Australian economy faces massive challenges in the years ahead. Australia’s structural budget balance is not in a good place.
Following an unprecedented economic growth during the Howard years which brought about budget surpluses the Global Financial Crisis (with the benefit of hindsight) saw the Labor government embark on a massive spending spree (mostly unfunded) which today has the federal government living well beyond its means.
Last week we observed <a title="contractor collateral in mining’s stark retreat " href="https://www.businessspectator.com.au/article/2013/5/21/construction-and-engineering/contractor-collateral-minings-stark-retreat" target="_blank">contractor collateral in mining’s stark retreat </a>where a number of mining related businesses significantly scaled down their profit earnings. These announcements signified that the boom times in the mining industry are now a thing of the past where Australia will continue to see an ongoing scaling down of revenues and expansion.
<a title="Weak tax take threatens services: Treasury" href="https://www.smh.com.au/business/weak-tax-take-threatens-services-treasury-20130521-2jz0t" target="_blank">Weak tax take threatens services: Treasury</a> where the prognosis is that Australians will either have to pay more tax or expect poorer government services, the federal Treasury's Michael Parkinson warned.
“From its pre-crisis level of 23.7% the tax-to-GDP ratio fell to 20.1% in 2010-11.”
Finally, we are seeing Treasury acknowledging a much weaker tax take whilst the current settings for Treasury’s structural budget balance are yet to acknowledge this reality.
The dilemma the next federal government faces is finding new savings or new sources of revenue which has led to some suggesting a GST hike – which is an absolute joke!
Given that when the GST was introduced in 2000 it was agreed that the states would abolish taxes in compensation – which never happened.
<a title="Gillard rules out GST increase" href="https://www.businessspectator.com.au/news/2013/5/20/politics/gillard-rules-out-gst-increase" target="_blank">Gillard rules out GST increase</a> which is an expected commentary in an election year especially given at the last election the PM ruled out a Carbon Tax too.
<a title="Greiner says GST freeze juvenile " href="https://www.businessspectator.com.au/news/2013/5/21/national-affairs/greiner-says-gst-freeze-juvenile" target="_blank">Greiner says GST freeze juvenile </a>– “Changing the GST rate of 10 per cent and extending its base was dependent on the agreement of all states and territories, who were the beneficiaries of the tax. But we are in a very, very difficult unprecedented public finance situation in Australia, as is the world.”
Enter Peter Costello, the architect of the GST – <a title="Tax abolition is just comic relief " href="https://www.dailytelegraph.com.au/news/opinion/tax-abolition-is-just-comic-relief/story-e6frezz0-1226631780911" target="_blank">Tax abolition is just comic relief </a>where he referred to NSW as “temporarily deferring” the abolition of some state taxes for 13 years – stamp duty on property transfers was one such tax that technically had been agreed for abolition.
Peter Costello says “at the economic level there is a real leadership role for a premier willing to re-invigorate the productivity agenda, restarting reform in our energy markets and our labour market. What about getting the debate back to how we can take burdens off business rather than add to them? Perhaps we could even 'temporarily defer' the introduction of any new business costs? About 13 years might be an applicable period.”
<img alt="simeonmay27one" height="371" width="470" src="/images/stories/2013/05/simeonmay27one.jpg">
Throw in a falling Australian dollar where the Reserve Bank of Australia (RBA) has no choice but to keep cutting the cash rate or let the dollar keep rising to the detriment of the Australian economy. Australia has no choice but to enter the currency battle given interest rates in Europe and the United States are at close to zero. From what I have read and averaging out the good, bad and ugly, my prediction is that the Australian dollar will sit around 92 cents.
<img alt="simeonmay27two" height="274" width="470" src="/images/stories/2013/05/simeonmay27two.jpg">
Earlier this month Sydney auction clearance rate sat at 78.7%, which was the highest in three years.
This further challenges the RBA given the pressure to cut the cash rate whilst balancing a hotter property market – a booming property market would spell an absolute disaster.
Again interesting to note that the property volumes continue to contract although we are seeing signs that listings will increase significantly after September 14.
This analysis would suggest that selling now may very well achieve a higher sales result given after September 14 we may very well see an over – supply in stock.
The decision last week that Ford Australia would cease operations from 2016 should not come as a great surprise given motor vehicle manufacturing has not been economically viable in Australia for years. Australia simply can’t compete with Europe and Asia on the car manufacturing front so the billions and billions of government subsidies are much better spent elsewhere.
Protecting the Australian motor vehicle industry has only seen imported cars being taxed at higher rates which then make them more expensive to the consumers. Yes, it’s unfortunate for the job losses however the writing has been on the wall for years.
All global economies are re-calibrating. In Australia’s case we urgently need intelligent governments not wasteful ones who have shown little to no business acumen. It is also becoming very clear for Australian manufacturing to be competitive we need less union input into employment contracts. If the Australian unions are so smart I’m sure Ford Australia would be more than happy to sell them their entire business as a going concern.
Robert Simeon is a director of <a title="RWM" href="https://www.rwm.com.au/" target="_blank" rel="nofollow">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a title="Virtual Realty News" href="https://www.rwm.com.au/news/" target="_blank" rel="nofollow">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
</body></html>

robertsimeon-hRNTwJyXkQ

Hotter property market poses difficulty for RBA as challenges loom for Australian economy: Robert Simeon

<html><body>
Like many others, I was somewhat taken aback by the comments put forward by Margaret Lomas last week in relation to negative gearing – significantly, the suggestion that any change from the current status quo would lead to ‘600,000’ homeless individuals and an ‘investor exodus.’
The comment attracted a range of responses - some humourous in particular, Fairfax Media reporter Chris Vedelago who suggested rather accurately on Twitter, that Margaret Lomas had derived her research from the ‘Magic Stat Tree.’
And whilst I agree that a sudden and complete retraction of the policy would be foolish – favouring a slow wind-down whilst other policies are implemented – in particular strategies to aid development and increase supply - the notion that touching the ‘golden egg’ of negatively geared property assets in a way which may dissuade buyers from ‘banking’ on the established market to fund their retirement would be disastrous - seems to be one that’s culturally ingrained in the real estate fraternity.
I won’t go into detail on why I feel the policy of negative gearing needs to be altered; it’s an issue I have detailed in previous columns and therefore feel I’ve made my opinion clear.
However, I do feel it is worth touching upon the obsessive preoccupation with real estate investment in general, which has played a prime role in pushing the price of property to ever escalating levels, resulting in the yearly assessment made by a number of publications – most recently <a href="https://www.propertyobserver.com.au/news/australia-moves-up-to-fourth-most-overvalued-housing-market-but-bubble-risk-subsides-the-economist/2013051761451" target="_blank">The Economist</a> – that Australia’s property market is ‘overvalued’ - with many off shore and local analysts speculating a fall in prices will eventuate in either the near - or distant ‘post mining’ future.
Even the RBA, which recently gave a speech entitled <a href="https://www.rba.gov.au/speeches/2013/sp-so-230413" target="_blank">“Housing and Mortgage Markets: The Long Run, the Short Run and the Uncertainty in Between”</a> have not ruled out a ‘major housing downturn’ at some distant point - stating:
“We certainly can’t rule out the possibility of a major housing downturn in the longer-term future. It is hard to know exactly what the outcome would be because it depends on how we got to that point.”
The paper makes an interesting read, because it highlights just how ‘uncertain’ the RBA are of... well, ...anything much at all:
“We don't have a strong view about whether the ratio of prices to income should be mildly rising, falling or constant from here”... “we think it is very unlikely to return to its 1970s levels, or to rise rapidly once again.”
Leading one to speculate that if the sophisticates at the RBA are so unsure about the longer term future of Australia’s housing market in a lending environment of which they have marginal control – so much less the rest of us.
And it’s easy to look at the sub-prime crisis in the USA – wag a finger – and preach the safety of our arguably ‘regulated’ Aussie banks.  However, whilst the sub-prime crisis played a role in the great American property bubble – it was not the cause.
The rapid escalation in both prices and private debt was born from a culture of expectation that the future would look like the present or as Alan Greenspan, an American economist who served as Chairman of the Federal Reserve from 1987 to 2006, put it in the publication of his 2007 book The Age of Turbulence:
“'Flippers' – speculators in places like Las Vegas and Miami.. would use easy credit to load up on five or six new condos aiming to sell them at a large profit even before the apartments were built.”
Albeit, for readers feeling a little nervous at the above revelations, a few sentences later he provides at least some reassurance:
“I would tell audiences that we were facing not a bubble but a froth – lots of small, local bubbles that never grew to a scale that could threaten the health of the overall economy”.
And as we’ve seen in Australia – irrespective of lending rates which reached close to 9% in the lead up to the onset of the GFC – when such an attitude takes hold, it is remarkably difficult to break or 'deflate'.
For example in China, despite strict measures such as preventing unmarried couples purchasing more than one residence, or requiring higher deposits for second homes coupled with an increase in the capital gains tax when selling, it has done little to suck air out of a country which has few investment options for individuals outside of real estate.
And in Australia – regardless of the recent comparative blip to property prices since the peak of 2010 (when compared to Europe or the USA) – we remain a nation completely obsessed with housing.
You only have to turn on the TV to be bombarded with programs from The Living Room to The Block, which make everyone feel like a rookie renovator able to ‘tap into’ the wealth of their property investments with a quick makeover or fuel the perception that you can pick up a good property ‘below its intrinsic value’ and ‘add value.’
 
<hr class="system-pagebreak">
And yet bubbles when/if identified are undoubtedly unhealthy from the broader perspective of society, leaving a widening gap between owners and renters as speculation pushes prices northwards which, following decades of poor planning for population growth, leave governments firing shots at the market in the form of short term first-home buyer grants as the only ammunition they have to reverse the trend – which of course leads to the intended side effect of pushing the market higher still.
As John Howard declared back in 2007 during prime minister’s question time (and good on him for being honest because without exception, I would think most other politicians from all sides of the table would view a ‘crisis’ in similar terms):
"A true housing crisis in this country is when there is a sustained fall in the value of our homes and in house prices”.
And perhaps it’s worth mentioning that Howard’s response was in reply to a question challenging the plight of first-home buyers from soon to be elected Kevin Rudd – who upon taking office less than 12 months later promptly inflated the market three fold with his first-home buyers ‘boost,’ which had the consequence of leaving many new owners in subsequent negative equity once it was stripped away.
And indeed it is a conundrum.  Considering the levels of private debt – mostly leveraged against housing, and the long term acceleration in the investment sector, which currently makes up around 44% of Australia’s buying market, prices are once again moving northwards as a number of social and economic factors collide.
Increased confidence, availability of cheap credit (such as our current low interest rate environment) and more importantly, the continuation of a cultural illusion that forgoes any financial prudence as investors pull their finances out of savings accounts before it’s purchasing power is diminished completely – in an attempt to beat the well contained genie of inflation and shore up future security in an environment where basic living costs are high and growing.
There are no quick fixes to the housing affordability conundrum. In light of our high private debt ratios it would be extremely damaging to the economy if there were a crash. High levels of debt, when followed by downturn in house prices, generally result in a greater reduction of economic growth and subsequently an increase in unemployment.
And yet, negatively geared investors, mortgage lenders, leveraged home owners, future state and federal budgets are all counting on rising house prices for future spending needs and long term security.
So the question remains, how much higher can prices possibly go at the expense of a new generation of renters (or as they put it in the UK ‘Generation Rent’) who have long given up on the Australian dream?
It can’t be solved with short term thinking, however, neither are we sitting in a revolving chorus of ‘There’s a Hole in my Bucket’ –  our economy is strong and there are plenty of sustainable long term policy decisions that would benefit a structured plan to allow a greater number to take ownership and contain inner city inflation.
The key of course is to slowly unpick the current distortions that tie up the established market such as negative gearing as one example, and first-home buyers grants as a second, whilst at the same time employing policies to increase supply and raise the dollars needed to fund essential infrastructure through (as suggested by economist Leith Van Onselen) bonds, or encouraging large superannuation funds, <a href="https://www.heraldsun.com.au/news/victoria/ted-baillieu-urged-to-use-super-funds-to-deliver-major-transport-projects/story-e6frf7kx-1226553107681" target="_blank">who are clearly open to the idea</a>, to fast track some of our major projects.
What we can’t afford to do is kick the can down the road and continue with the same obsessive lines of limited thinking.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
 
</body></html>

catherinecashmore-6LXia3pPQj

There are no quick fixes to the housing affordability conundrum: Catherine Cashmore

<html><body>
With interest rates at 53-year lows, and confidence returning to much of the Australian property market, it seems a smart time for not only new investors to get into the market but for existing investors to add to their portfolios.
Like many other existing investors at the moment – and despite the outcomes and revelations from the federal budget plan for the year ahead recently – I am going through the process of re-financing my portfolio. Existing home owners and investors alike should all be considering refinancing in these times of (very) cheap interest rates on offer.
However, it is important to run the numbers and make sure that you will actually be better off switching to a new lender and/or new mortgage products. If most investors are like me – i.e. working Australians on a sub-six-figure salary who have a medium to long term 'buy and hold' approach to property investing – reducing the amount of interest you pay on your mortgage(s) will be a huge priority. I would argue that the only investor types who do not value the importance of reducing interest repayments on loans would be those who are on much higher incomes ($150k plus), where they may be so negatively geared that it is more beneficial for them, year-to-year, to pay more interest due to the tax benefits for them.
<a imageanchor="1" href="https://1.bp.blogspot.com/-RKA2WzsibdY/UZjA-X_krSI/AAAAAAAAAbA/qJe-3rT03iQ/s1600/Low+cheap+interest+rates+australia+home+loans+save+money+blog+refinance.jpeg"></a>
I digress though. Assuming you are an average property investor and are considering re-financing in these opportunistic times, here is a list of things to think about when refinancing, to not only secure the best possible deal, but to maximise your interest-paying efficiencies throughout the property holding period. 
1) Be conscious of the 'real cost' of attractive ‘honeymoon’ style loan products when switching
Honeymoon loans are products that will offer heavily reduced interest rates for the first year or two, sometimes significantly lower than even the best standard rates in the marketplace at any time, and are very appealing for that reason. But you must investigate what then happens in say year #3 and beyond, when you take up such a product. For instance, what does your rate revert to, at that time? Oftentimes these offers from lenders are to attract new customers in, however the true cost of these products is not nearly as heavily promoted during the marketing campaign. Run the sums and calculate if this is actually a better product over say a 20 year holding period than say the most attractive standard deal on offer from another lender. Most of the time, standard mortgage products fare better in the medium-to-long term. 
 
<hr class="system-pagebreak">
2) Lender fees for breaking your existing mortgage (aka ‘break fees’)
Once you’ve found a loan product that you are convinced will save you money on your interest repayments during the short, medium, or long term (or even one that saves money from day #1 onwards), you must consider the additional fees and charges to break your current mortgage. Up until a few years ago this was a nightmare, with some lenders charging their customers exorbitant exit costs should they break a contract. However, there is great news here: in recent years, the federal government has introduced new strict guidelines that all lenders must abide by, to ensure customers can exit mortgage products without paying severe penalties to that lender for doing so.
Whilst the legislation assures much saving, it is still very critical that you check what the exit fees on your current loan(s) actually are, before committing to a new lender's products, as there are loopholes within the legislation that lenders have identified and capitalised fee structures around. For example, one of my mortgage products is less than one year old. Many lenders will have severe fees for those who break their mortgage in say the first twelve months. Fortunately for me, this particular lender only charged $95 to break this mortgage though other lenders can have fees in the thousands of dollars for breaking a contract within the first year. Such fees can make a plan to refinance to save money, redundant in the first place! 
3) Changes to the value of loan credit you are seeking creating additional expenses
When refinancing, the new lender will need to approve you just as your previous lender did. Just because you were approved for lender X, several years ago, does not mean lender Y will not do their homework on you! New lenders will always demand a valuation of the property be conducted, and good lenders worth their salt will have an independent valuer dispatched at your expense – and not just use their own internal valuer and no (aka ‘free to you’) expense. This is a good thing – you should consider the independent valuation and investment and here is why: It is smarter for you to pay a small $100 (or so) valuation fee (tax deductible, mind you) and get a 'true' appraisal of your property value, rather than the new lender using their an internal bank-employed valuer, who will almost always provide a more conservative/lower end value which is worse for you. Variances could be in the tens of thousands of dollars, so if you were looking to refinance to extend your mortgage further, this valuation could make all the difference, so be sure to request from your new lender that an independent valuer be appointed at your cost.
<a imageanchor="1" href="https://4.bp.blogspot.com/-_BoEiJDzgS8/UZjA-O_bKRI/AAAAAAAAAa4/TdwnYFysf5Q/s1600/Property+Investment+Blog+Refinancing+Australia+May+2013+Cheap+Mortgages.jpg"></a>
4) Loan-to-value changes potentially causing Lender’s Mortgage Insurance to be paid
As mentioned above, if you are looking to increase the amount of the mortgage when refinancing, that valuer’s final figure is all the more critical. Why? A favourable valuation even $5K higher than a conservative one could be that 'make or break' difference between paying lenders mortgage insurance (aka LMI, which is arguably my biggest pet hate in all of property investment finance!), or not paying it. As a general rule/recommendation, I would argue that almost any refinancing plan where LMI becomes payable as a result of refinancing, is a bad refinancing plan, and you should be hitting the abort button and staying put in your mortgage product for another year or so.
 
<hr class="system-pagebreak">
5) Non-lender based transfer of title fees should be considered
Nominal as they may be, you are best to explore these as they may vary from state to state, as they must be tallied in with everything else when you are forecasting your profitability spread sheet prior to refinancing. If you are refinancing say an entire portfolio of ten properties, you can imagine these nominal costs adding up! Usually the state will charge paperwork (administration/stamping duty) fees for exiting one mortgage and transferring the title to the new lender. The good news is that most of this is a tax deductible expense. Part of the reason I am refinancing now, right near the end of financial year, is to make an early claim for these expenses as quickly as possible, to enable my case flow to increase faster, and get me expanding my portfolio with the next property purchase, quicker too.
6) New lender establishment fees and ongoing charges
Last of all you have the setup/establishment fees for the new lender. These can vary from lender to lender but my recommendation is this, the more established an investor you are, and the more properties you may be transferring to one lender (I.e. bringing more 'new business' to the new lender), the more negotiating power you have up your sleeve to get these initial costs such as application fees, waived or reduced. Maybe you can get some waived? Remember, in life of you don't ask, you don't get, so it never hurts to ask! Also remember that as you grow in your life as a property investor, you’ll eventually become a highly desirable customer to any lender, so use this leverage. Even as a first time investor who is refinancing your first property, do not be afraid to talk yourself up during this process. Mention that you are a professional investor who is looking to ‘grow’ with a strategic lender partner, as you expand your portfolio over the years. This is usually music to a lender rep’s ears, and they will regard you very highly as a result.
And negotiation should not end there. Some lenders may consider you a 'high value customer' if you have loans totalling over a particular dollar value, use this as negotiating power to maximise the rate deal you are offered. Consider both the establishment fees and ongoing fee schedule into your forecasting spread sheet to realise whether it is worth your while to switch lenders or not
Once you have tallied up all the lender and government costs to refinance in your spread sheets, simply run two scenarios:
1) The first one assumes you are switching and you should calculate say the first three years of that mortgage product.
2) The second one assumes you stay in your current mortgage product for the same term (another three years) for example. Though your rate might be higher, you could be better off staying put for three years if this figure overall is lower than the Sanrio #1's figure. Admittedly this scenario forecast is a lot harder to conduct if you are in a variable rate product and are switching to a mostly-fixed product.
Stay tuned for Part #2 where I will mention some refinancing tactics to consider and illustrate these with some examples.
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" rel="nofollow" target="_blank">Property Correspondent.</a>  
 
 
</body></html>

cmcevoy-Go82SmsJA9

It's a great time to re-finance but consider the true cost of doing so: Cameron McEvoy

<html><body>
Savvy property investors know how to negotiate a better deal for themselves by applying pressure to three critical negotiating points.  
These pressure points are at work in every negotiation; either you are applying pressure to the other party or they are using them on you. So let’s take a look at them.  
1. Options  
When you’re buying a property it is important to convince the seller that you have more options than they do, because power in negotiation goes to the person with the most options.  
Look at it this way: if a seller has two buyers lined up waiting to offer him $500,000 for his property, then he has options. You probably have little chance of getting him to accept your offer of $480,000.  
However, it’s important to realise that in negotiations you often deal with perception rather than reality.  
Agents will often tell you they have other buyers interested or better offers than yours, but they are simply applying this same pressure tactic on you.  
To gain power in negotiations you must convince the vendor through his agent that you have more options than they do. Currently, this isn’t too difficult because in most markets there’s an abundance of properties for sale.  
Let the agent know that there are also other properties you are interested in. You could say something like: “We like this property but there are two others we have in mind in a better location and at a lower price”.  
Remember: the person with the most options has the upper hand in the negotiation.  
2. Time
 
If a vendor is highly motivated and under time pressure you could find yourself a terrific buy.  
While it may be hard to work out what type of pressure the vendor is under, the selling agent will sometimes tell you that they have already purchased another property and must settle at a particular time.  
Other time-motivated sellers include people going through a divorce or moving interstate.  
To help find out how motivated the vendor is you could ask the selling agent: why is the vendor selling? Where are they moving to? Would they consider a lower offer for a quick settlement?  
Other sensible questions to ask are:
• How long has the property been on sale?
• Have they received any offers on the property?
• How did the vendor come to his selling price?  
I like to use time pressure when making a written offer to purchase. I’ve found it helps if I put a deadline on my offer such as “this offer expires at 6.00 pm on Thursday 23rd May.”  
I always give an explanation to the agent such as: “Well…I’m considering purchasing a particular property that’s going to auction this weekend and if the vendor doesn’t accept my offer by Thursday I’m keen to purchase the other property and can’t have this current offer remaining open when I go to the auction .”  
3. Knowledge
 
In negotiations, the side with the most knowledge will do better.  
If you’ve done the proper research you should know more about the property market in which you are buying than the seller.  
However, apart from researching the local property market, it’s also good to find out what you can about the vendor. The problem is that most of what you know comes from the agent.  
But the reason you should find out as much as you can about the seller and their property is that it will give you a better insight into the real motivation for selling. This could lead to a creative win-win solution that will let you buy the property at below market price.  
In summary:
Remember these three critical negotiating pressure points when negotiating your next property purchase. Make sure you take advantage of them and that the selling agent doesn’t apply them to you.    
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, who create wealth for their clients through independent, unbiased property advice and advocacy. Subscribe to his <a href="https://propertyupdate.com.au/category/property-investment/">Property Update</a> blog.
</body></html>

myardney-DFoGhGbSJX

Three pressure points that can swing property purchase negotiations in your favour: Michael Yardney

<html><body>
The most expensive sale for the week ending May 19 was an original coastal cottage in Bronte, New South Wales, which sold at auction on May 15 for $4.05 million, according to RP Data.
Located on Bronte Road, the property (pictured below) was listed by Jason Black and Brent Foster of <a target="_blank" href="https://www.propertyobserver.com.au/https://www.blacklp.com.au/3373786">Black Lifestyle Property Randwick.</a>
<img height="244" width="470" src="/images/stories/2013/05/brontemay22one.jpg" alt="brontemay22one">
The three-bedroom, one-bathroom house sits on approximately 530 square metres and offers the possibility to be renovated or rebuilt.
The property last sold in April 1990 for $615,000, reflecting an annual compound growth rate of 8.54%.
New South Wales dominated the list, with a total of seven properties securing spots.
The top 10 most expensive sales last week
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/449_bronte_road_bronte_nsw_2024/1609659">449 Bronte Road, Bronte, NSW, 2024</a>, three-bedroom house, sold on May 15 by Black Lifestyle Property Randwick for $4.05 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/1_bridge_street_balmain_nsw_2041/1251783">1 Bridge Street, Balmain, NSW, 2041</a>, four-bedroom house, sold at auction on May 18 by Cobden &amp; Hayson for $2.735 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/3/112_milson_road_cremorne_point_nsw_2090/2004689">3/112 Milson Road, Cremorne Point, NSW, 2090</a>, three-bedroom unit, sold on May 16 by Ray White Lower North Shore for $2.65 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/28_vernon_street_strathfield_nsw_2135/6496416">28 Vernon Street, Strathfield, NSW, 2135</a>, six-bedroom house, sold at auction on May 18 by Richardson &amp; Wrench Strathfield for $2.65 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/3_welwyn_avenue_brighton_east_vic_3187/10041305">3 Welwyn Avenue, Brighton East, VIC, 3187</a>, four-bedroom house, sold at auction on May 18 by Marshall White for $2.575 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/84_birriga_road_bellevue_hill_nsw_2023/1368216">84 Birriga Road, Bellview Hills, NSW, 2023</a>, four-bedroom house, sold at auction on May 18 by Liang + Simmons Double Bay for $2.425 million
<a target="_blank" href="https://www.myrp.com.au/property/277_coopers_shoot_road_coopers_shoot_nsw_2479/1954587/">277 Coopers Shoot Road, Coopers Shoot, NSW, 2479</a>, three-bedroom house, sold at auction on May 18 by McGrath Estate Agents for $2.4 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/37_stanley_street_nedlands_wa_6009/12887777">37 Stanley Street, Nedlands, WA, 6009</a>, five-bedroom house, sold prior to auction on May 18 by Acton Dalkeith for $2.37 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/3_howard_street_strathfield_nsw_2135/6486636">3 Howard Street, Strathfield, NSW, 2135</a>, six-bedroom house, sold at auction on May 18 by Devine Real Estate for $2.335 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/20_beaver_street_malvern_east_vic_3145/11585506">20 Beaver Street, Malvern East, VIC, 3145</a>, four-bedroom house, sold at auction on May 18 by Hocking Stuart Glen Iris for $2.26 million
</body></html>

ntrotman-Et3xWpamVh

Original coastal home in Bronte records 8.5% annual growth over 23 years: RP Data

<html><body>
The Domus US Multifamily Real Estate Fund will test Australian investor appetite for American rental property, with plans to join the ASX on June 18, subject to a successful $80 million initial public offering.

The company plans to invest in ‘multifamily’ apartment blocks in Texas and New Mexico with more than 150 apartments spurred on by the improving residential market in these states,  a larger pool of renters following the aftermath of the US housing crisis and more Americans moving to the North West and Mid West.
<img height="328" width="470" src="/images/stories/2013/domus.jpg" alt="domus">
“There is a strong renting culture across the US," says Domus CEO Robert Geringer.
“The housing crisis has changed the perception of the property market from the American dream to the American nightmare. It has created a renter class,” he says.
He says currently renting is just a bit more expensive than owning a home, but as house prices recover and rates rise, owning a home will exceed renting costs.
Geringer says going public in Australia was attractive because of Australian’s love affair with real estate. 
“We looked at listing in New York, but that wouldn’t work. They start at $1 billion and up for REITS,” he tells Property Observer.
Multifamily properties are a foreign concept to most Australian investors, being seperate apartments all on one title - as opposed to a strata model - which Domus says creates "significant management efficiencies".
 
<hr class="system-pagebreak">
It will follow the likes of the Dixon Advisor <a target="_blank" href="https://www.propertyobserver.com.au/international/thinking-of-buying-in-harlem-dixon-advisory-provides-australian-investors-with-tourist-style-walking-tour-guide/2013050360970">ASX-listed US Masters Residential Property Fund</a>, which has successfully invested in multi-dwelling residential property in New York and New Jersey and attracted signficant amounts of Australian SMSF investment capital, but not without having to overcome some negative perceptions about the US market.
The Domus fund will use the proceeds of its IPO to purchase (through a US subsidiary) two multifamily projects costing approximately US$60 million on June 6 and to acquire other multifamily assets. 
The two projects are Mission Ranch, a 295 unit garden style luxury apartment complex in Dallas, Texas and Mesa del Oso, a 221 unit condo style, luxury apartment complex in Albuquerque, New Mexico ( a city familiar to any investor who is a fan of hit TV show Breaking Bad). 
These two apartment projects will make up the initial portfolio, with the investments funded via low fixed-rate US government-insured debt with interest rates currently between 2.9% and 3.5% allowing the fund to maintain a leverage ratio of between 60% and 70%. 
Domus has the exclusive first right to negotiate on a further portfolio of over 35 multifamily real estate Assets, consisting of over 6,500 individual apartments with an estimated market value of over US$750 million. 
Such assets, the product disclosure statement says, have 90% average occupancy rates with the US housing crisis leading to a steep decline in the number of owner-occupier assets. 
While the fund will initially invest in the southern and western regions of the US, where typically there are lower unemployment rates than other regions, it will consider expanding into other parts given an “ongoing trend for individuals and business to relocate from the more recessed mid-western and north eastern states to southern and western states.” 
The fund hopes to acquire around $250 million to $320 million of US multifamily assets by March 31 2014 with the initial public offer will close on May 31. 
Domus has lodged a product disclosure statement with the ASIC for an offer to raise up to $100 million, with a minimum subscription amount of $80 million, at a unit price of $1.00. 
Applicants will receive one option for every four units which they are allotted. 
Options will be exercisable at $1.00 at any time during the period from 1 January 2014 to the third anniversary of the date of the listing of Domus on ASX.  Options will not be quoted on ASX.  
Geringer says there has been good response to the offer from investor road shows from institutions, investment funds, REIT and small cap funds.
Geringer met with investors in road shows in early May in Hong Kong and Singapore.
He says the perception of the US housing market is good.
“They want to own a piece of US real estate and to invest in the residential recovery. They don’t have to be on the ground themselves,” he says.
Geringer has 30 years of experience in the US property market as a tax lawyer and real estate professional.
The fund will make quarterly distributions with the first scheduled for October 2013 with forecast distributions of 3.6 per unit for the first two forecast periods, an annualised distribution of 6.2% on the offer price.
 
</body></html>

US property fund Domus set for ASX listing as it seeks to tap into growing demand for rental property in Texas and New Mexico

<html><body>
The Australian dollar appears to be less of a factor than some believe in encouraging offshore investors to buy Australia’s commercial property, research by Jones Lang LaSalle suggests.
The graph below shows that funds poured into Australian commercial real estate when the Australian dollar was well above parity against the US dollar in 2012, rather than discourage investors.
It suggest that the opposite could happen if the Australian dollar falls – or perhaps that the Australian currency is less of a factor in commercial real estate as it may be in residential investment.
Click to enlarge
<a href="/images/stories/2013/05/joneslanglasallemay24one.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/05/joneslanglasallemay24onethumb.gif"></a>
Source: Jones Lang LaSalle Research
As Australian Financial Review property editor Robert Harley highlights, listed property trusts like the Goodman Group hedge 86% of their offshore income, so changes in the exchange rate have much less of an impact.
Savvy offshore investors would be able to do something similar to counter the exchange rate impact, while also attracted to Australian real estate due to its sound property market fundamentals - transparency, rising capital values, a strong economy and its proximity to Asia.
Certainly Asian investors are showing no signs of slowing down their appetite for Australian commercial property purchases, with a <a target="_blank" href="https://www.propertyobserver.com.au/retail/gpt-confirms-sale-of-half-stake-in-erina-fair-shopping-centre-to-asian-interests-for-%243971-million-thegptgroup-jllnews/2013052061487">South Korean pension fund </a>paying close to $400 million for 50% of the Erina Fair Shopping Centre on the Central Coast this month.
Harley also points out that the lower Australian dollar – which will support industries like manufacturing and tourism – may also flow through to benefit rural property and tourism property.
And a stronger Australian dollar is attractive to company’s like Westfield Group, which has nearly half of its income-earning assets in the US.
The Australian dollar peaked at $1.11 against the greenback in July 2011 and remained mainly above parity until the recent fall in early May sparked by the cash rate falling to a 53-year-low of 2.75%.
In 2007, the rising Australia dollar was also not an impediment to funds flowing into commercial real estate, with investors most likely seeing Australia as a safe investment haven.
In other periods – such as the late 1980s and mid-1990s – a rising dollar was also accompanies by an increase in funds flowing into commercial property.
</body></html>

Australian dollar less of a factor in commercial property investment: Jones Lang LaSalle chart

<html><body>
The onset of the GFC saw the highest proportion of Australian landlords claim losses on their property investments.
In the 2008 tax year, around 1.2 million taxpayers said they made a net rent loss on their investment properties compared with around 500,000 who made a net rent profit, ATO figures analysed by MacroBusiness show.
Property investors claimed a record $9.1 billion in aggregate losses in 2008, lower than $7.9 billion in aggregate losses claimed in 2010-2011 when 1,213,597 out of 1,811,174 landlords held negatively geared property investments.
Analysis by MacroBusiness shows that a greater proportion of property investors negatively gearing their investments from 2002 to 2008, coinciding with booming property markets before the GFC brought the party to a halt.
In 2009 and 2010, as the property market underwent a correction and property investors became more cautious, fewer landlords negatively geared their investments.
In 1998-99 – just before the Howard government halved capital gains tax and mortgage lending became more easily available - the number of investors with positively geared investments was roughly equal to those with negatively geared investment.
<img height="286" width="470" src="/images/stories/2013/macrobusiness_chart_2.jpg" alt="macrobusiness_chart_2">
“Up until 2000, property investment was more or less neutral from an income perspective, with aggregate rental receipts covering costs,” says MacroBusiness editor David Llewellyn-Smith.
“Since then, however, the situation has changed markedly, with the latest ATO data showing that there were just over 1.2 million negatively geared property investors in Australia in 2010-11, representing two-thirds of all property investment,” says MacroBusiness's Leith van Onselen.
“From 2000 onwards, however, net rents deteriorated sharply; with aggregate losses totalling $7.9 billion in 2010-11,” he says.
The logical explanation for the decline in net rental returns from 2000 and the surge of negatively geared property investment, says van Onselen was the Australian Government’s decision in 1999 to change the nation’s capital gains tax (CGT) rules by halving the rate of tax payable on capital gains earned on assets held for more than 12 months.
“This change, in combination with the negative gearing provisions allowing investors to offset rental losses against other (labour) income, encouraged investors to speculate on rising housing values in full knowledge that any losses would reduce their overall tax liability, and any capital gains would be taxed at only half the rate of labour income,” says van Onselen.
“The net result of these policies is that Australian investors have increasingly become Ponzi borrowers – Hyman Minsky’s term for borrowers who rely heavily on capital gains to repay debt and interest – in the belief that housing is a sure fire investment,” he says.
</body></html>

Latest Investing Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News