Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

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

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

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

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

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If you have invested in the share market, you would most likely be familiar with the so-called "investment clock", which attempts to show how the economic cycle influences equities.
In essence, an over-heated economy is followed by rising interest rates and falling share prices. Then, as the economy declines interest rates start to fall and share prices rise again.
Some analysts have tried to devise a similar "clock" for commercial property. But unfortunately, the results have generally not been useful.
Commercial property has a number of sectors, which do not necessarily move in unison. For example, industrial property prices may be sagging while retail prices rise.
There are also regional differences as well. Prices might be hot in Sydney and lukewarm in Melbourne or Brisbane, or vice-versa.
Nevertheless, using a somewhat broad-brush approach, it is possible to place property within the investment cycle as follows:
<ul>
<li>The economy begins to slow</li>
<li>Direct property prices stop rising, and may decline</li>
<li>The authorities inject liquidity into the economy</li>
<li>The stock market and listed property trusts rise</li>
<li>The economy starts to recover</li>
<li>Direct property prices start to rise</li>
<li>Inflation may also rise</li>
<li>Interest rates rise</li>
<li>The stock market and listed property trusts fall</li>
</ul>
To help give you a clearer picture for commercial property, here are five key phases based on economic and supply-demand factors.
Phase #1:
This is the bottom of the cycle, when the market is generally in a condition of oversupply — due to both a weak economy and too much new construction, from when the economy was still strong.
Vacancy rates may be high and rents falling significantly. Therefore, any new construction ceases, while demand slowly starts growing again, and the existing oversupply is gradually absorbed.
Phase #2:
Demand for new space continues to grow. But with little new construction, rents rise — sometimes quite sharply. This leads to developers once again to initiate construction of new buildings, until at some point, you regain a rough balance between supply and demand.
Phase #3:
Demand continues to rise but supply is now growing faster, and rental growth may begin to slow down.
Phase #4:
The market is approaching a point of oversupply, due to over-building, with the situation perhaps aggravated by a weakening economy.
Phase #5:
Vacancy rates climb rapidly, causing rents and prices to begin falling. This leads to a general decline in investor confidence. And so, you re-enter Phase #1 once again.
Historically, offices have spanned around 18 years from "peak to peak". The industrial and retail cycles have tended to be about nine and six years respectively.
Bottom line: Obviously, the key is in knowing where you are in any particular cycle. Unusual influences (like the mining boom) can cause disparities for commercial property, between the various capital cities.
However, for most cities, you are now in Phase #2, with about five to six years to run before the current cycle for each sector peaks.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" title="Chris Lang's blog" href="https://his-best.biz/">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
 
 
</body></html>

chrislang-EQKojcgJPV

How to time the commercial property market right

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Battery Point was the most expensive suburb in Tasmania, according to the Real Estate Institute of Tasmania, with a median house price of $925,000 in the March quarter.
It typically competes with Sandy Bay for top sales, but had the field to itself so far this year.
<img src="/images/stories/francisst.jpg">
At the top end of Battery Point's sale was Royston, a four-bedroom <a href="https://www.propertyobserver.com.au/https://www.allhomes.com.au/ah/tas/sale-residential/10-francis-street-battery-point-greater-hobart/14139503140711?lid=168074670" target="_blank">1834 Francis Street</a> cottage (pictured above), which fetched $1.75 million through Kim Morgan at Charlotte Peterswald for Property. Set on 1,590 square metres, it had previously traded at $1.38 million in 2006 and at $655,000 in 2000.
<img src="/images/stories/secheron.jpg">
St Botolph,<a href="https://www.realestate.com.au/property-house-tas-battery+point-108347716" target="_blank"> a 1901 four-bedroom Victorian Italianate residence</a> on a 1,300-square-metre holding (pictured above), fetched $1.55 million when listed through Adrian Gray at George Self Property. It sold at $427,000 in 1998.
<img src="/images/stories/tasexxy.gif">
 
Battery Point photograph by Brad Touesnard<a href="https://www.flickr.com/people/capeislander/"></a>, courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
 
 
 
 
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jchancellor-FAypfDUnLy

Battery Point leads 10 most expensive localities in Tasmania: REIT 

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The Reserve Bank has decided to backpedal and heeded the demands of economists who have been up in arms ever since the central bank kept the cash rate on hold last month.  We had the usual surge of tables splashed over the front of the dailies highlighting the savings to the average mortgage holder should the banks pass on the full cut.  Sellers in the property industry are rubbing their hands together, expectantly waiting for prices to rise, and the focus for the next few weekends will be firmly on the clearance rate for any indication of a change in sentiment.  However, after all the celebratory drinks have been clinked over the table as those who “bet” on the exact basis point drop get their “told you so” moment, perhaps we can get back to reality. It’s unlikely we’re going to see a surge towards the property market – at least not in the near future.
It’s clear the RBA has lost some element of persuasion over the banks, with the statement that 50 basis points drop was to “encourage” the banks to at least pass a proportion of the rate cut onto customers. To all outside eyes, we’ve managed to end up with a system where the banks are in the controlling seat and the RBA’s influence and relevance to home owners is diminishing.  Wayne Swan has warned the banks to pass on the full amount – however, his threat can only be addressed with an “…or what?”. The banks no longer need to bow to the demands of those we voted into power – they are a ruling power unto their own interests and profit margins.
One minute we are exhorted to save, pay down debt, hunker down and tighten our belts.  The next we are told we need to march out and stimulate the economy.  Retail needs it, the housing market is apparently crying out for it – and Swan is dancing around as if he’s personally responsible for the whole charade, with his obsession with a surplus by 2012-13.
The drop would stimulate confidence it was reported; however, it does just the reverse.  It tells everyone what we already know: anyone not in mining is struggling – particularly if they own a small business, work in the retail and manufacturing sectors, or are one of the millions on the average Australian wage trying to service rental or mortgage payments.  For those struggling on the minimum wage (around 1.4 million people, or roughly one in six workers), it’s a lifestyle of ball juggling as it’s now well accepted that the majority of Australians spend at least 50% of their disposable income simply putting a roof overhead.
With the banks passing on a proportion of the rate cut, home buyers and mortgage holders will gain a marginal benefit in disposable income,  however unless your mortgage is in the top percentile, the drop is only slightly beneficial at most.  For the majority of new home buyers it does little to improve affordability.  Anyone who has managed to save a deposit is most likely out there shopping already – a lot of them dual income couples, high-income earners, or beneficiaries of a gifted deposit.  A growing majority of low-income earners are simply locked out while struggling to service growing rental yields.
In the recent Victorian budget, it’s welcome that more funds have been dedicated to <a href="https://www.propertyobserver.com.au/victoria/victoria-s-new-home-bonus-grant-ends-june-30-but-lower-stamp-duty-cuts-in-january-2013-for-first-time-buyers/2012050254518">dropping stamp duty costs by 30% for first-home buyers</a> (details of which can be found <a href="https://bit.ly/IHmEqu">here</a>.) However, in order to do so, the government stripped away the $13,000 grant offered for the purchase of new homes. In light of the fact that new supply is essential for reducing competition and inflation on established stock, there’s not much to celebrate really.
Then again, as we’re told repeatedly, despite promises to the contrary, there isn’t as much in the coffers to hand out at the moment.  Ted Baillieu should be well adverse to the adage that you always “promise less and deliver more”.  However, apparently, due to the softness in the housing market, less than expected came in from stamp duty payments, therefore tough luck to the taxpayer.  The only way government, both local and federal, know how to raise money is to raise taxes.  To think outside the square never gets further than an expensive research paper. However, to be fair, much of Victoria’s problems did have their beginnings in poor management from previous administrations.
Different states offer a range of different policies for first home buyers (aside from Tasmania, which offers nothing outside the federal government’s $7,000 grant.)  All are introduced for periods of time, however all are subject to change by subsequent governments providing no confidence of consistency.  Some policies are better than others, however, the minimal assistance that is available arguably inflates the market rather than the reverse (as evidenced by the boom and bust cycles as various the schemes are introduced and subsequently scrapped).
Billions has been thrown at first-home buyers over the years, which is amazing when you consider evidence proves it’s not achieving the desired result.  Should the current trend continue, we’ll see today’s 35- to 44-year olds reach retirement with a quarter still renting – and when the 25- to 34-year-old bracket reach retirement, a third will still be renting. How long until 50% are reaching retirement while paying someone else’s mortgage?
If you’re reading this and already hold a mortgage you’re probably understandably too concerned with meeting your own bills to take a close look at the bigger picture that is growing to be a crisis of monumental proportions. Some may have read or heard about the latest Anglicare report that has taken a snapshot nationally to look at the supply of affordable rental accommodation for those on a low wage or on government allowances.  Not surprisingly, the results are truly dire – you can read the full report on Anglicare’s <a href="https://www.anglicare.asn.au/site/research_reports.php">website</a> – however the outcome emphasises “people on the minimum wage need two incomes to rent a house. In many places even that is not enough”.
Two incomes to rent a house? If you can’t rent on two incomes, you certainly won’t be in a position to buy – renting is still the cheaper option, and house prices are not reducing by any significant proportion to change this ratio.  In Anglicare’s report, it surveyed more than 65,000 advertised rental properties across Australia. For singles living on an aged or disability support pension there were no affordable options in any urban area across Australia, and for singles on the minimum wage the options were so limited that in Sydney, not even 1% of all the advertised properties met the requirement. This is in a nation envied worldwide for its prosperous economic status – one of the few that “beat” the recession.
I only have practical experience of the Melbourne rental market, which has a reported vacancy rate of 2.5% – this is up from 2.2% last year.  When it announced the latest vacancy figures, the REIV commented, “the reduction in population growth and increase in construction of new dwellings is now beginning to provide easier conditions for renters”. Well, it may look that way on paper, but in reality, it couldn’t be further from the truth.
The rental agency I deal with has demand at such a level that – whatever the condition - an advertised property will be marketed for no more than a few hours before numerous enquiries are received requesting and inspection.  It’s a common story repeated within every management company across the metro area.  Most recently, I witnessed a line of prospective tenants queue outside an old untouched one-bedroom-plus-study house that could can only be described as highly unsuitable for a family.
The location on a busy main road arterial, coupled with the “rawness” of the internal condition, including an oven that didn’t work and no laundry facilities, gave doubts it would attract any enquiry at all.  However, it rented after being on the market for less than a day. The successful application was a couple with a two-year-old child – both of whom had full-time employment.  They’d been looking for a number of weeks and offered to paint the property at their own expense by way of an incentive.
Current yields in Melbourne are advertised around 5% for inner-city apartments – however, other states such as Perth for example are easily achieving yields around 5.5% in inner city suburbs. To secure accommodation, it’s not unusual for many applicants to offer in excess of the advertised price.  For prospective tenants unable to provide an incentive, options are virtually nonexistent.  I can’t over-emphasise the problems this is causing.
It’s in the rental market, homeless numbers, and waiting lists for public housing, where you’ll find the true story of <place><country-region>Australia</country-region></place>’s housing shortage.  The buying market is simply a game of musical chairs as one established property passes to another.  New home sales are at decade lows because they’re situated in areas on the outskirts of the city where many can’t feasibly settle.  This is why we need to distinguish between “housing need” and “buyer demand”.
As the RBA points out in its latest analysis of the market, “rental vacancy rates have been around 2 per cent since 2009”.  It’s the consequence of years of poor planning that has squeezed everyone into urban areas close to centralised employment centers.  As such, we have ended up in a situation where rental applicants have to compete against each other to acquire some sort of shelter, a little like some pseudo form of the Hunger Games.
Under current conditions, whether buying or renting, “housing stress” is almost an understated term.  We all need a home and in this prosperous nation of ours, everyone should have access to feasible options to provide shelter for their family – whether renting or purchasing. If you have a system where growing numbers are unable to attain the basic essentials for their families without experiencing significant stress, there’s no room for innovation and development of ideas that are the key to increasing productivity and consequently a country’s overall wealth.
As always, it’s those most in need who come bottom of the pile – and based on the Anglicare report, we can now add full-time employees to that number.  The solution to the problem should not be concentrated on a market driven by incentives or tax breaks, which simply pits one buyer against another.
Instead, it’s important to start listening to local voices, real community needs.  To give one example, Point Cook in Victoria, located 25 kilometres from the CBD, was marketed as a “vibrant new retail and commercial development being created in Melbourne's western suburbs”. Expected to provide housing for over 12,000 families and a 25-minute drive from the CBD, it’s been one of Melbourne 's fastest-growing residential areas.
However, the residents that moved there discovered the 25-minute drive is only applicable if you leave for work at 3am, otherwise – with only one major road in and out of the suburb, it can end up being a two-hour commute.
The residents are crying out for more roads, schools, leisure facilities, and so forth, however the house building continues and as more families move in, the problems worsen. Unfortunately, there’s no end in sight for Point Cook residents.  In the recent Victorian state budget, Melbourne’s fastest-growing region was completely overlooked. No one listened.
As such, it’s no surprise that turn over in some areas of the suburb is three times the Melbourne average and land banking from speculative investors (or residents “changing their minds”) has resulted in many empty lots sitting undeveloped.
Considering the billions of tax incentives and home owner grants that have been handed out over the years, it’s clear protecting growing house prices has always been a priority – and building thriving communities has not.
From an outside perspective, Australia’s land mass, wealth, skills shortage, ageing baby boomers, along with many regional locations simply crying out for an increase in population, I’ve always seen ample opportunity to channel population growth to our social advantage.  However, it’s clear that successive governments have judged the health of our economy as figures on paper not adequately planning for our growing community’s needs.
The wealth of any nation should be judged on the standard of living provided for all – not a select group.  Seeing as we can hardly cope with housing those who already live here, and as there is no reasonable policy shift to aid a rapid improvement of the situation, perhaps it’s time to close the doors all together aside from fulfilling our obligation to provide refugee protection? Based on current data, the population would stabilise around 2050, however in my mind, it would be a terrible admission of failure.
As for improvement in the housing market, well, don’t look at clearance rate figures for a sign of recovery, instead look towards the polls. Because only when people feel their voices are heard and basic needs provided for (without breaking the bank), will the polls improve and confidence return.  Until such a time, we’re in for a long, flat road ahead.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition. She is Channel Ten’s property expert on <a href="https://bit.ly/I7SGaw">The Circle</a> and a senior consultant for <a href="https://www.nationalpropertybuyers.com.au/">National Property Buyers</a> servicing the needs of property owners Australia wide.
 
 
 
 
 
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catherinecashmore-6LXia3pPQj

Australia's property market is in for a long, flat long road ahead

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Led by apartments and renovations, Australian residential building approvals rose 7.4% in March according to the Australian Bureau of Statistics.
Economists' forecasts had centred on a 3.1% rise in approvals in March, according to Bloomberg.
The number of permits granted to build or renovate houses and apartments gained 7.4% from February when there was a revised 8.8% decline, the ABS said.
Over the year building approvals in March declined 15% which the economists had forecasted would show an 18% annual drop.
 
 
 
 
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Residential building approvals up 7.4% in March: ABS

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John Morris, the founding director of Port Douglas Reef Resorts, heads a syndicate that has bought Crystalbrook Lake Station, a north Queensland cattle station, with plans to turn it into a five-star tourism destination.
Morris – known as "Mister Port Douglas" to his friends – and colleague Jim Noli’s company, Port Bajool, bought the 34,000-hectare station, set 220 kilometres west of Cairns at Mareeba, from cattleman Gary Hill for $2.2 million.
With good reliable rainfall of 35 inches (about 89 centimetres) per annum, the property comes with large Queenslander homestead set in tropical gardens and a lake house set 15 kilometres from the main homestead. The property has a 120-hectare lake, built in the late 1960s in the boom of the tin mining days, and water courses.
Morris is credited with establishing Port Douglas as a resort destination having developed and operated several accommodation properties, including the Radisson Treetops Resort.
He plans to add five suites to the homestead on the station’s lake and co-ordinate holidays for upmarket travellers starting their tour at the Great Barrier Reef and plans to helicopter people.
“Tourism needs a boost, and I think we need to think more laterally and make the destinations more attractive,” Morris told the Australian Financial Review.
“We are anxious to support outback tourism as well and leverage the potential from the reef and the rainforest,” he said.
The cattle development program will be maintained. Crystalbrook was leased to the collapsed listed managed investment scheme company Great Southern with a carrying capacity of 2,750 adult cattle.
The sale was negotiated by Richard Larkin from Landmark Harcourts, Mareeba, and Henry Slaney from Slaney &amp; Co, Charters Towers.
It was at below the recent $2.6 million asking price and a 25% discount to the station’s 2009 valuation, according to the AFR.
Last traded in 2000, it was sold to finalise the deceased estate of a family member.
Morris, then a Sydney businessman and a dedicated sailor, came to Port Douglas around 1972 seeking a good anchorage.
 
 
 
 
 
 
 
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Luxury tourism plans for John Morris-led syndicate purchase of Queensland's Crystalbrook Lake cattle station

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The lower north shore enjoyed a slight price revival during the March quarter, according Residex, being the strong Sydney precinct. Houses prices rose on the lower north shore by 3.79% during the first quarter of 2012 to a $1,424,500 median value. Most of the growth came during the month of March.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/residexmay71.gif" rel="shadowbox"><img src="/images/stories/residexmay71thumb.gif"></a>
The next strongest precinct was Campbelltown – up 2.74% to a $361,000 median in the March quarter.
But the strongest performer over the year – amid the six precinct with positive annual growth – was Liverpool/Fairfield, with annual price growth of 3.13% to a $459,500 median. Canterbury-Bankstown was the next strongest annual performer, up 2.44% to a $583,000 median value.
Inner Sydney was narrowly pipped by the southern outskirts of Sydney when it came to the strongest 10-year growth, with the southern localities - postcodes 2571 to 2639 - averaging 6.59% annual growth to its $354,000 median value, narrowly eclipsing inner Sydney's 6.15% rose to a $903,500 median value.
Photograph by Emmett Anderson, courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
 
 
 
 
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Lower north shore prices revived slightly in March: Residex 

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The phrase “residential property investment” means, to most people, simply looking at a house or an apartment as an investment decision. As they say, “Your home is your greatest investment”, which is true, but the truth is that residential property investment is an all-encompassing phrase, referring to an ever-growing list of investment strategies, with the common link being that all strategies have the objective of growing financial wealth to secure one’s future.
Today I thought it best to run you through some of the major strategies out there, and some emerging ones that are growing in popularity.
1)      Home ownership While owning your own home is the most basic of property investment, it is a strategy that most property owners employ, and go no further with. And this is perfectly fine; providing that you are employing other tactics along the way during your life to ensure you are building a nest egg beyond just the home you live in. While your home will no doubt appreciate in value over 30 or 40 years, singularly, the ownership of just this asset will not secure your retirement, you’ll need more than this. Unless, of course, your home happens to be a palatial Miami mansion and you then comfortable to sell up and downsize to a studio apartment during your retirement (a scenario that few would find themselves in, I’m sure!).
2)      Buy-and-hold This is where you grow a portfolio of numerous properties during an acquisition phase, then hold on to them for at least two cycles of the property market (so, at least 15 years, but ideally longer) and then later in life you cash out most of the portfolio (sell say 90%), using the after-tax profits to buy your home to retire in (outright) and also have a tidy nest egg of money put aside to enjoy your retirement years with. 
3)      Buy, renovate and sell (aka ‘flipping’) Not a strategy  for the inexperienced or those who do not like/cannot handle fast-paced madness, buying an unrenovated property, then quickly renovating and selling for a much higher price before quickly moving on to the next one is not for the faint-hearted. The failure rates are quite high, in the respect that many who set out on their first ‘flip’ property never attempt their second. Some have made lucratively successful careers out of this, such as Renovating For Profit founder Cherie Barber. To succeed long-term with this strategy, you pretty-much have to give up your day job and make this your full-time job. The problem for most people is they envisage a lifestyle where you get to pick out cool fixtures and fittings and personalise a property the way you like it. The reality is the complete opposite; you instead become a site project manager and make decisions based on the bottom line and not personal taste. 
4)      Renovate and hold This one mixes the above two strategies together (sort of) and works well for those happy to be quite transitional themselves, and not have a fixed residential address for many years at a time. Basically, you continue to grow a portfolio of properties held; but the kinds of properties you acquire are ones that need work. These could be basic cosmetic work, or full-on structural-and-cosmetic projects. Either way, you either move into it and renovate while living there for six to 12 months, or you project manage it until completion over three months or so, but instead of selling, you hold the property and rent it out for a much higher rental return than it originally offered. Over time you may grow a portfolio of renovated properties that provide excellent rental return. 
5)      Managed funds and/or property super funds This kind of investment is the most passive, minimal risk, and minimal, well, work! But it is also very separate kind of investment strategy. This approach relies heavily on trusting a financial institution to invest your money in property shares and portfolios, to produce financial growth for you. Whilst the gains are nowhere near as lucrative as the wealth you could manufacture by running your own strategies; they are also less risky, cumbersome, and use minimal time. A good strategy to use as a tactic in unison with other investment approaches. It is not one I’d use singularly on its own. 
6)      Group family buying This is less a property investment strategy as it is more a strategy to create greater efficiencies when it comes to home ownership. We must actually give thanks to the modern multicultural landscape of Australian society, because without multiculturalism, Australia may have never become privy to this strategy. This is a common strategy in some Mediterranean, Asian, and South American countries, and one that many Western societies is fast adopting and learning from. The strategy essentially focuses around weddings. Both families come together to contribute funds towards the newlywed couple’s first home purchase. Usually, those contributing go beyond just the immediate family relatives. Yes, cousins, second cousins, close family friends, great aunts, etc all pool contributions together. The idea is you get 30 to 40 contributors all giving say $1,000 each, and the new couple have their home deposit ready to go. The couple also work to save their own deposit, which means that some couples purchase their first home on just a 60% or 70% mortgage. The idea works on a “pay-it-forward”/karma approach; in that the contributors know that when it’s their time to purchase a home; all others in the network will share their little kick-start back to them too. To work effectively, this strategy does require a lot of trust within families and their extended family connections. 
7)      Co-investment with friends/relatives Different to group family buying, in this strategy a partnership of two, or perhaps three/four, people band together in order to achieve their investment objectives. This strategy can be great for those on low incomes, limited resources, and those with limited time, to work on a project together and see a gain. Positives then, are that much less start-up capital is required to invest, plus you have a second opinion all the time, which can help protect against making poor investment decisions (but not always!). Co-investors also have the benefit of being able to share skill-sets, connections/contacts, and experience, to strengthen their plans. Cautions for this strategy though are plentiful: with difference of opinion, personality clashes, and long-term strategy shifting being the biggest challenges with this approach. Additionally, the legal complexities often make contracts/solicitors’ fees skyrocket; as all exit-scenarios need to be considered, and an iron-clad contract detailing the agreed outcome based on every possible scenario must be composed by lawyers. Additional stress can ensue when family or partners are involved. Should things go sour, the relationship can suffer. This can occur with friend-based co-investors also; but if you can find your rhythm early on, this can be an effective strategy. 
8)      Full-time property development. And by this I mean, for example, building an entire block of units, from scratch. It probably goes without saying that this strategy is one that only those with high cash stocks are even able to contemplate. Often times, more mature investors who have been building portfolios over many years may build themselves up to this kind of venture. Usually by this point, they have picked up skills, contacts, and capital along the years, to make a larger-scale development even feasible. Even despite all of this, the complexity of full property development can make fools of even the most experienced and savvy investors. Not for the faint of heart. 
I’ve no doubt there are additional strategies out there that Australians are using in their property pursuits (and I’m keen to hear from you, more on them!). Overall, though, one must always remember that there is no hard and fast rule or strategy to property investment. Some people choose just one of the above strategies and roll with it; whilst others form a strategy that mixes several of the above as tactics along the way. Regardless, it is important to consider all of the options available to you when starting out, and to know that you can only do this; once your objectives and ambitions are laid out. 
And that right there, folks, is the first and best step in your strategy: to define in great detail your objectives and desired outcomes. Without this (and to quote hard rock singer Chris Cornell) it is like building a house of cards on a hill of sand.
Cameron McEvoy is a property investor and maintains a blog, <a target="_blank" href="https://propertyspectator.blogspot.com.au/">Property Spectator.</a>
 
 
 
 
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cmcevoy-Go82SmsJA9

Eight strategies for residential property investment

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The amount of stock on the market declined in all capital cities in April compared with March, according to SQM Research. Of course, the month of April contained the Easter long weekend, Anzac Day and school holidays.

The biggest decrease in stock on market was in Sydney, which recorded a 12.1% decrease month on month. 

"It is becoming more evident that the number of real estate listings has reached its peak," says SQM managing director Louis Christopher.

But Christopher warns that just because stock levels have peaked, it does not mean that prices are rebounding.

“Now while stock levels maybe be peaking, that doesn’t mean prices have suddenly stopped falling," Christopher says.

"As the ABS data illustrates, house prices were falling in the March quarter and we think they are still falling as we speak. I’d like to see a sustained decline in stock levels before calling a real bottom in prices. But overall, the worst now is likely behind us with this current downturn.”
 
<img src="/images/stories/48430.gif">
The amount of stock currently on the market in Melbourne, according to SQM Research. This is down 4.7% from last month but up 11.2% from this time last year.
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<img src="/images/stories/31030.gif">
The amount of stock currently on the market in Sydney, according to SQM Research. This is down 12.8% from last month and down 8.2% from this time last year.
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The amount of stock currently on the market in Brisbane, according to SQM Research. This is down 6.9% from last month and down 10.4% from this time last year.
 
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<img src="/images/stories/18785.gif">
The amount of stock currently on the market in Perth, according to SQM Research. This is down 5.5% from last month and down 14.1% from this time last year.
 
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<img src="/images/stories/17559.gif">
The amount of stock currently on the market in Adelaide, according to SQM Research. This is down 2.5% from last month but up 5.8% from this time last year.
 
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<img src="/images/stories/4584.gif">
The amount of stock currently on the market in Hobart, according to SQM Research. This is down 2% from last month but up 29.3% from this time last year.
 
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<img src="/images/stories/3611.gif">
The amount of stock currently on the market in Canberra, according to SQM Research. This is down 7.2% from last month but up 8.7% from this time last year.
 
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<img src="/images/stories/1234.gif">
The amount of stock currently on the market in Darwin, according to SQM Research. This is down 6.8% from last month and down 28.6% from this time last year.
 
 
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cknowlton-QnEa6ntUYP

How much stock is on the market in your capital city? A state-by-state analysis: SQM

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The RBA says the ratio of dwelling prices to income is back around its 2002 level, in its latest statement on monetary policy.
Weak demand has been reflected in a fall in Australian capital city dwelling prices of around 6% since their peak in early 2011 and low housing turnover.
“Notwithstanding this, it appears that in recent months dwelling prices might have been declining at a slower rate.
<img src="/images/stories/rbamay41.gif">
“With declines in dwelling prices, the ratio of dwelling prices to income is back around its 2002 level,” the central bank notes.
It notes slower growth in housing debt has been associated with weakness in the housing market.
In contrast to dwelling prices, the RBA notes various measures of rents grew by 4% to 5% over the year.
Reasonably strong rental growth, together with falling dwelling prices, has lifted rental yields to around ½ percentage point above their mid-2000s level.
<img src="/images/stories/rbamay42.gif">
The report noted rental vacancy rates have been around 2% since 2009, above the very low levels seen in 2006–08 but still low by historical standards.
The report also noted residential building activity fell over 2011 to be around the lows of some earlier cycles in dwelling investment.
The weakness in residential building activity reflects a number of factors, the RBA suggests, including declines in established dwelling prices, having made households reluctant to commit to new contracts to build.
Also, in recent years, the RBA notes lengthy planning processes and arrangements for infrastructure provision have increased the cost of new dwellings.
<img src="/images/stories/rbamay43.gif">
The reported notes a range of initiatives have been undertaken by state governments to address these issues, including reviews of planning systems, the release of infrastructure plans and caps on infrastructure charges.
Despite recent decreases in housing prices relative to income and increased rental yields, forward-looking indicators suggest that there is little prospect of an imminent recovery in housing construction.
<img src="/images/stories/rbamay44.gif">
Approvals for new dwellings have continued to trend downwards in early 2012, especially for higher-density housing.
It notes this has followed the run-up in approvals in 2010 that was concentrated in Victoria.
Approvals for detached houses are at low levels in all mainland states, notwithstanding a recent increase in Queensland that can be partly attributed to the state government’s building boost grant for new dwellings.
 
 
 
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Dwelling price-to-income ratio at 2002 levels: RBA

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Bids closed this week for the Mantra Group offering by private equity firm CVC Capital Partners.
The hotel and resort owner-operator Mantra Group could reportedly fetch somewhere more than $400 million, according to the Australian Financial Review, or more than $600 million, according to the Sydney Morning Herald report. The Australian comes in with a $520 million estimate.
Archer Capital is reportedly among the bidders, along with potential trade buyers including the French giant Accor, which secured Mirvac Hotels &amp; Resorts in 2011. The publicly listed Amalgamated Holdings, and global players InterContinental Hotels Group and Stamford Land Corp, has been included among possible buyers.
CVC appointed UBS, a 40% co-owner of Mantra, as an adviser on the sale.
The Mantra Group operates more than 130 hotels and resorts across Australia and New Zealand.
Mantra’s earnings before interest, tax, depreciation and amortisation for 2012 will come in at $60 million, up from $45 million three years ago, according to the information memorandum.
A larger proportion of Mantra’s earnings now come from the CBD market.
 
 
 
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Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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New townhouses

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