Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

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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Fractional investing means a little bit like how it sounds. It’s to do with investing in a portion, or a fraction, of an asset. In shares, this may be investing in less than one share. In property, it’s paying for less than one property.
Fractional investing has previously been seen as popular for luxury assets, such as yachts, planes and similar across the globe.
Despite this, it’s a relatively new concept for Australian standard residential property, even while it has played out overseas. This means that you will want to get strictly independent advice, as well as checking with your accountant and lawyer beforehand to ensure that it stacks up. You’ll also need to learn the ins and outs before heading in as it does differ substantially from traditional property investing.
DomaCom, who is heavily pushing a fractional investing model, sums it up as considering it like a crowd funding or syndication type structure, where you can invest a small amount to get into property investing.
How does this differ from a Joint Venture?
Where a joint venture is usually entered into by people that know each other well, and are jointly responsibly for the property, fractional investing allows an asset to be owned by a number of individuals that may not even know one another.
A level of independence is retained by each person who owns a fraction of the property. You will also be issued with ownership of ‘units’ rather than the Title.
How does it differ to a property syndicate?
You’d be right in thinking it’s similar to a property syndicate – indeed, the concept behind it appears to be identical. However, it offers a benefit over and above syndication.
“Syndicates are costly to set up, once you are in the syndicate you are there for the duration and there’s no liquidity for the structure. What we set about doing was introducing equity market concepts into the product,” DomaCom general manager of sales and marketing Warren Gibson told Property Observer earlier this year.
It’s about putting multiple stakes in multiple properties – much like many share market investors.
Diversifying and (potential, although not guaranteed) liquidity are two benefits promoted, however the liquidity relies upon the re-sale market, something that perhaps isn't as bustling now as it has the potential to be in the future. Obviously, entering into the market when you have a lower balance of funds to play with is another substantial benefit, however you do lose some of the benefits of straight forward property investing.
Namely – total control over the asset. As you are not the sole owner, and many other investors have a stake, your decisions around renovating, redeveloping a site or allowing specific tenants are going to be managed for you. This may not always be to your liking.
However, you may want to take the personal control out of the day-to-day decisions. Not keen on taking phone calls from the property manager? Disinterested in going through the bills? This might be the solution.
Similarly, while you can suggest properties, you will likely have to wait for other investors to also desire a stake in that property before it can be purchased. A buyer’s agent is engaged through DomaCom to purchase their properties.
Small investment, small returns. One of the benefits of property, and one of the aspects that can make it scary, is leverage. Where you can only borrow around the rule-of-thumb 50% when it comes to shares, you can borrow far more for property, making your returns significant. You may have seen this in many property books referred to as the power of OPM (Other People’s Money).
If you go in unleveraged, then you receive rent and costs in relation to your holding. This can minimise your exposure to riskier markets, but it can also keep your growth subdued.
DomaCom explains that <a href="https://www.domacom.com.au/faq" target="_blank">your own home can also be put up for a fractional investing model</a>, which means you effectively become a tenant to the other part-owners. You can decide how many units of ownership they can have, however you will not know who the investors are. You will also find some restrictions placed on you - such as you can't renovate if it will decrease the value, and if you are renovating to increase the value and your amenity you may find that you need to pay the entirety of the improvements.
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What is ‘fractional investing’? Property investment terms explained

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Despite being Australia’s most popular travel destination, houses in the Sydney CBD have an median yield of just 3.33%, according to <a href="https://www.finder.com.au/" target="_blank">finder.com.au</a>.
Meanwhile, units Darwin, which is at the bottom of <a href="https://www.tripadvisor.com.au/TravelersChoice-Destinations" target="_blank">Tripadvisor’s Traveller’s Choice 2014 Top 10 Destinations</a>, have a median yield of 6.82%.
The comparison website analysed the country’s top 10 tourist destinations to see how their investment potential stacked up against their popularity with visitors. With a median CBD house price of $1.75 million and median rent per week of $1,120, the city’s estimated yield of 3.33% is the second-lowest of any city on the list.
Michelle Hutchison, finder.com.au Money Expert, says that popular holiday destinations present widely varied returns for property.
“It’s always nice to imagine what it would be like to own an investment property at your favourite holiday spot, but our findings revealed there can be a big difference between the value of return you can receive for the most popular holiday destinations,” said Hutchison.
“For instance, out of the top 10 most popular holiday destinations in Australia, some yields were less than half of others on the list, with yields ranging from 2.41 to 6.31% for houses and 5.33 to 7.77% for units.
“By doing your research on the most popular destinations and making an informed decision, property investors could be making more than twice the amount of yield per year.”
New South Wales’ Cessnock had the lowest median house price of any of the top 10 destinations on the list, returning the highest yield for houses at 6.31%. Port Douglas had the highest yields for units, with 7.77%.
“While holiday homes may be a good option for investment property owners, not knowing the yield of your potential property may leave you funding someone else's holiday instead of your own,” said Hutchison.
“So make sure you do your homework, compare locations based on potential returns and not just their popularity, and research investment home loans to ensure you get the biggest bang for your buck,” she said. 
Finder.com.au's top investment holiday hotspots: Houses
<ol>
<li><a href="/news">Cessnock</a>, New South Wales Median house price: $255,500 Median weekly rent: $310 Yield: 6.31% </li>
<li><a href="/news">Byron Bay</a>, New South Wales Median house price: $705,000 Median weekly rent: $670 Yield: 4.94% </li>
<li><a href="/news">Hobart</a>, Tasmania Median house price: $468,000 Median weekly rent: $435 Yield: 4.38% </li>
<li><a href="/news">Darwin</a>, Northern Territory Median house price: $903,500 Median weekly rent: $750 Yield: 4.32% </li>
<li><a href="/news">Brisbane</a>, Queensland Median house price: $959,000 Median weekly rent: $770 Yield: 4.18%  </li>
<li><a href="/news">Port Douglas</a>, Queensland Median house price: $500,000 Median weekly rent: $380 Yield: 3.39% </li>
<li><a href="/news">Airlie Beach</a>, Queensland Median house price: $667,000 Median weekly rent: $435 Yield: 3.39% </li>
<li><a href="/news">Melbourne</a>, Victoria Median house price: $993,500 Median weekly rent: $605 Yield: 3.37% </li>
<li><a href="/news">Sydney</a>, New South Wales Median house price: $1,175,000 Median weekly rent: $1,120 Yield: 3.33% </li>
<li>Canberra, Australian Capital Territory Median house price: $2,150,000 Median weekly rent: $995 Yield: 2.41% </li>
</ol>
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<hr class="system-pagebreak">
 Some of the cities with the highest yields for houses had the lowest yields for units.
The top investment holiday hotspots: Units
<ol>
<li>
<a href="/news">Port Douglas</a>, Queensland Median unit price: $184,000 Median weekly rent: $275 Yield: 7.77% 
</li>
<li>
<a href="/news">Darwin</a>, Northern Territory Median unit price: $510,500 Median weekly rent: $670 Yield: 6.82% 
</li>
<li>
<a href="/news">Brisbane</a>, Queensland Median unit price: $455,000 Median weekly rent: $570 Yield: 6.51% 
</li>
<li>
<a href="/news">Sydney</a>, New South Wales Median unit price: $598,000 Median weekly rent: $720 Yield: 6.26% 
</li>
<li>
<a href="/news">Airlie Beach</a>, Queensland Median unit price: $338,500 Median weekly rent: $405 Yield: 6.01% 
</li>
<li>
<a href="/news">Byron Bay</a>, New South Wales  Median unit price: $441,500 Median weekly rent: $510 Yield: 6.01% 
</li>
<li>Canberra, Australian Capital Territory Median unit price: $450,500 Median weekly rent: $510 Yield: 5.89% </li>
<li>
<a href="/news">Melbourne</a>, Victoria Median unit price: $414,500 Median weekly rent: $465 Yield: 5.83% 
</li>
<li>
<a href="/news">Cessnock</a>, New South Wales Median unit price: $259,500 Median weekly rent: $290 Yield: 5.81% 
</li>
<li>
<a href="/news">Hobart</a>, Tasmania Median unit price: $424,000 Median weekly rent: $435 Yield: 5.33%</li>
</ol>
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jrichardson-uRX5hFdKfN

The top 10 holiday hotspots: Finder.com.au

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The idea of multigenerational living (MGL) is not new and in some societies it’s a very old idea, however not so for Australia, although this may be changing.
Looking at the central role design plays in the planning and marketing of new residential developments, I think that we need to consider the more widespread impact of MGL, and its impact is already being felt, even if the changes are still only subtle, at the margins.
In some European and Asian countries MGL is a normal part of the social and housing fabric; in the USA the trend is on the increase mainly in response to economic conditions. In the US social conditions are also changing, shared living sits with shared economic resources and many of the trends are now being mirrored in the Australian housing landscape.
Economic conditions are linked at one end of the market to falling housing affordability and at the other end of the market tied to the insecurity of retirement income. In some parts of the US it is now more common to see parents living with the kids, along with grandparents and younger siblings living with their more financially stable older brothers and sisters. There are varied housing needs in play here across these different generations and this is impacting the size and design of housing stock. In Australia we see the same demographic pressures now starting to come into focus and the recent federal budget has further magnified the trends.
<blockquote>
Multigenerational living responds to many economic and social needs and is a trend that is going to continue to impact the design and demand for housing.
</blockquote>
Here we see pressure on the middle-class, Baby Boomers want to stay living in their homes for as long as they can, while their kids are also staying longer in the family home as they face the hurdles of housing affordability.
Also if baby boomers have to work longer towards their 70’s, then staying in the family home near employment will have an immediate impact. People close to retirement will stay local and the idea of a tree or sea change will be less appealing because of very limited employment options. Working longer and staying connected longer will make it more attractive to share accommodation.
The Security of Proximity
MGL delivers one clear benefit and that is the security of proximity. Grandparents under the same roof as their younger family members is an obvious example, but young couples with kids can also benefit if they have the support of parents and grandparents to help with either ongoing or occasional childcare. This pooling of resources both financial and because of the help of an extended family, even if only for a few years, will also help those saving for a home, and it is hard to argue that MGL will be on the increase driven by the desire to make housing more affordable.
The benefits apply as much to shared rental accommodation as they do to owned property, with the idea of shared rental accommodation taking us back to the past days of young people in a shared house or apartment.
Design Is Already Responding
In Australia MGL is already having an impact, and this will continue to gain pace as the market adjusts to our shifting demographics and economic circumstances. For example go to almost any new housing display village and you will find any number of homes with ‘parent’s or teenage retreats’ and with multiple living zones, and two-way kitchens. The granny flat is now a hotel-like self-contained unit on the ground level of a designer four or five-bedroom home. While more generally house designs are delivering designs that provide different shared spaces that also function to provide the privacy we all crave.
Or consider the options that a three-bedroom dual key apartment might offer a MGL family unit. A two bedroom home for mum and dad and a one bedroom flat for a young adult child, that could one day be homes in the reverse, or a multi-unit investment for the family. Another example I now see is one family buying a number of apartments in the same development to meet the different overlapping needs of different generations.
Multigenerational living responds to many economic and social needs, some long-term other short-term and others that relate to financial security and limitations, however this is a trend that is going to continue to impact the design and demand for housing.
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pchittenden-eLqUUC8TWW

Multigenerational living: The future impact on design and demand for housing

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There’s no doubt the Gold Coast residential market is entering a growth phase. After five bad years, in which prices went backwards, the Gold Coast is moving again.
Sales activity is rising strongly across the region and the latest figures from the Real Estate Institute of Queensland suggest prices are moving in the right direction.
But we remain opposed to investment in this market.
Here’s an example of why. On 12 June, the Gold Coast Bulletin published a news article under this headline: '104-storey Southport tower poised to steal Q1 crown of Southern Hemisphere’s tallest residential high rise'.
Apparently a three-tower complex called Imperial City is planned for Southport. The building will be 75, 85 and 104 storeys, dwarfing the 78-storey Q1 which is currently tallest high-rise on the Gold Coast, as well as in Australia and Southern Hemisphere.
Imperial City will contain 2,200 apartments, as well as 200 student rooms and a 200-room hotel.
The Gold Coast Bulletin reported: 
"The project has been welcomed by city leaders, with area councillor Dawn ­Crichlow declaring Imperial City would be the jewel in Southport’s development crown. “This is one of a range of Southport developments before the council at the moment and the number, as well as the size of this project, are a real show of faith,” she said.
"Southport MP and Assistant Planning Minister Rob Molhoek said he was “incredibly excited” by the proposal. “There are more than 17 major development approvals in line for Southport right now which is a testament to the fact that the CBD is on its way back to its former glory,” he said
“If this gets approved and built it would be a symbol of everything we are trying to achieve right now.”
That pretty much sums it up. This latest monument to a developer’s ego is seen on the Gold Coast as “a symbol of everything we are trying to achieve”.
Presumably Molhoek and Crichlow like oversupply and falling property values. The mentality of civic leaders and business people on the Gold Coast never seems to change. The place lurches from boom to bust, relentlessly and repeatedly, because this is how they think. They see the Gold Coast as a theme park for foreign tourists and property speculators, rather than as a city with families who needs services and jobs. If it reaches for the sky, it has to be good.
Just when the Gold Coast has soaked up its surplus of apartments, a process that took five agonising years, its developers and politicians are sowing the seeds of the next calamitous glut. The Imperial City monstrosity is one of many mega proposals for the glitter strip. New ones are announced weekly.
If you must buy on the Gold Coast, avoid the highrise. Buy houses in an inland suburb.
These are the areas of the Gold Coast market that really stand out in the research I’ve just completed for The Price Predictor Index. 
Rising markets include <a href="/news">Nerang</a>, <a href="/news">Mudgeeraba</a>, <a href="/news">Coombabah</a>, <a href="/news">Arundel</a>, <a href="/news">Ashmore</a>, <a href="/news">Carrara</a>, <a href="/news">Coomera </a>and <a href="/news">Varsity Lakes</a> – all housing markets inland, away from the skyscraper insanity.
Lest you forget, the latest edition of the REIQ’s quarterly report reminds us that if you bought the typical Surfers Paradise apartment five years ago, it’s still worth 10% less than you paid back then.
You can contact Terry via   <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
Photo courtesy of Syed Abdul Khaliq/Flickr/<a href="https://creativecommons.org/licenses/by/2.0/" target="_blank">Creative Commons</a>.
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terryryder-YECXbqmri2

Gold Coast enters growth phase, but is it really a good place to invest?

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The Westfield Retail vote taken on Friday will allow Westfield Group – which will become known as Westfield Corporation – to cut its ties with Australia and focus on global cities, including New York, London and Milan.
There was a total of 76.09% votes in favour of the restructure, narrowly exceeding the 75% approval requirement.
The Westfield Group and Westfield Retail Trust are likely to begin trading on Wednesday, on a deferred settlement basis, as Westfield Corporation and Scentre Group respectively. 
The proposal remains subject to a number of conditions, including WDC obtaining the necessary orders from the Supreme Court of NSW at the hearing scheduled for 23 June.
Subject to satisfaction of these conditions the last day of trading in WDC securities will be Tuesday 24 June 2014.  Scentre Group securities will commence trading on a deferred basis on Wednesday 25 June 2014. 
From Brazil, the chairman of WDC, Mr Frank Lowy, said he was pleased with the result.
“Achieving a 75% 'yes' vote was a high hurdle but we were always confident of the intrinsic strategic merit and fairness of the proposal to both entities and we now look forward to the creation of what will be two new, great companies,” he said.
The proposal to separate Westfield Group's Australian and NZ business from its international business was announced in December 2013 and was based on the fact that each business now had the necessary size and scope, supported by depth of executive talent, to compete effectively and thrive on their own.
It was also based on the belief that allowing investors the option of two entities, representing different markets, as well as somewhat different investment opportunities and currency options, would unlock significant value and choice for shareholders. 
Frank Lowy, will chair both Westfield Corporation and Scentre Group.
Peter and Steven Lowy will be co-chief executive officers of Westfield Corporation and Westfield group chief financial officer, Peter Allen, will become chief executive officer of Scentre Group. Merrill Lynch has estimated the implied entry price into Scentre and Westfield Corporation at $3.07 a share and $6.41 a share respectively (after incorporating the capital return, first-half 2014 distributions and the conversion ratios of both stocks).
The prior Westfield Group had interests in and operates one of the world's largest shopping centre portfolios with investment interests in 87 shopping centres across Australia, the United States, the United Kingdom and New Zealand, encompassing 20,000 retail outlets and total assets under management of over $68bn.
WRT and the 8% Lowy-owned Westfield Group will both sell their jointly owned 47 Australian and New Zealand shopping centres into the new listed company, Scentre, in return for shares and cash. Westfield will also sell management and development rights on the properties to Scentre, and its shareholders will own more than half of Scentre.
Westfield will rename itself Westfield Corporation, with a portfolio of 44 shopping centres across the United States, Britain and Europe.
The Age columnist Malcolm Maiden noted of the top 10 Australian real estate investment trusts, WRT was the only one that was still externally managed.
While Scentre will own and manage top-flight retail assets, Maiden noted it will have a block of shares on its register that will be classed as an overhang until evidence shows otherwise.
Of the top 10 Australian real estate investment trusts, WRT was the only one that was still externally managed.
"The holders of almost 20% of WRT's securities voted against the restructure, and they will own about 8% of Scentre.
"The Lowy family will also inherit a holding of about 4% in Scentre, and as this restructure shows, its attention is going to be focused overseas."
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jchancellor-FAypfDUnLy

Westfield's Scentre Group set for trading commencement

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I was contacted twice last week to comment on news stories that featured young Australians building their way to retirement, through debt, leverage and speculation, on the back of rising property prices.
Described as ‘an entrepreneur,’ another a ‘wonder kid,’ both stories told a similar tale.
A gift from mum and dad had helped with the deposit - living in the family home had enabled investment into areas that may not have suited their 'home' buying requirements.
Rising property prices had enabled equity to leverage into the second acquisition – it was not reinventing the wheel, rather a repeat of an all too familiar theme. One had managed to reach his sixth investment by the age of 26 (having started at only 19) - both were on their way to becoming property investment advisors – wanting to help others achieve real estate riches too.
“Young buyers are entering the property market as investors” prompted one reporter – which is no more obvious than saying “circles are round”.
Everyone who enters the property market is an investor, I responded. 
There would be few in the industry working on the buying side of the equation who had not been involved in what I often term ‘the capital gain game’ – where every option suggested is followed by the question “but which will get the best growth?”
Australia has a lopsided neoliberal economy founded on the back of a 5.1 trillion dollar housing market, over 4.1 trillion dollars of which is irreplaceable land.
We’re slaves to a system where the retirement wealth egg is the family home – our personal economic leverage for all lifestyle and business needs - something that is only achievable if policies are manufactured to ensure values remain high (and climbing), whilst debt levels remain ever affordable.
Click to open in new window:
<a href="/images/2014/06/23/cashmore-june-23-one.jpg" target="_blank"><img src="/images/2014/06/23/cashmore-june-23-one.jpg" alt=""></a>
Source: <a href="https://www.worldeconomicsassociation.org/books" target="_blank">Bubble Economics</a> by Paul D. Egan and Philip Soos
It used to be called ‘Monopoly’. Today its termed: ‘getting onto the property ladder’.
Retire as a renter or find a way to ‘work the system,’ playing a dangerous game of debt and leverage, and hoping when the wind finally blows, you’re not left holding the house of cards.
For those unable to afford current high prices, they will see no tax benefit - unless their income is low enough to require welfare assistance. 
Rather they will be at the mercy of rising rents with an uncanny tendency to outpace inflation, tight vacancy rates and few low budget options.
If, as above, they are the ‘lucky’ beneficiaries of family assistance to enable their step onto the first rung of the ladder, they’ll enter a tax system skewed toward ownership, the benefits of which are capitalised into the price, pushing values higher.
<img src="/images/2014/06/23/cashmore%20june%2023%20two.png" alt="">
Source: <a href="https://www.worldeconomicsassociation.org/books" target="_blank">Bubble Economics</a> by Paul D. Egan and Philip Soos
Under such a system, the final consequences are set in stone.
On a global scale, the land bubble induced financial crisis of 2008 left millions suffering fatal burns.
Tough austerity measures that followed destroyed the hopes and dreams of thousands of Europe’s youth.
For those just entering retirement, savings were wiped away, along with any chance of employment in later years.
Australia escaped relatively unscathed, but this isn’t because we’ve solved the boom/bust cycle.
Our policies differ little from the affected countries that promote ownership with similar inflationary measures.
First time buyers have no memory of a recession and understandably want their share of the pie.
However our history is littered with recurrent patterns of <a href="https://www.worldeconomicsassociation.org/books" target="_blank">boom-bust credit and asset bubbles</a>, commonly triggered by high land prices. 
They all heralded financial instability and dreadful social consequences - a study of which should perhaps feature higher on the school curriculum.
We’ve just entered into another cycle and already prices have exceeded previous peaks. 
Housing cycles are long-term affairs, however unless we begin to studiously take measures to change our tax and supply policies, when the clock ticks round again – as it inevitably will – our house of cards will blow over like the rest.
Many applauded Malcolm Turnbull as he made the most of his share of publicity during the CEO sleep out last week, to raise money for the homeless. 
However, Turnbull is part and parcel of a budget and government that exacerbates housing affordability, and by consequence, the very problems he endured a cold night to help ‘solve’.
This is because the government has structured the tax burden to fall predominantly on wages and productivity – which advantages those at the top, who see their landholdings increase way in excess of any taxation or earned income through no individual effort of their own, rather the collective efforts of community investment (<a href="https://catherinecashmore.com.au/" target="_parent">items of which I’ve detailed previously</a>) – whilst the productive earners at the bottom of the pile, struggle to make ends meet.   
In other words, by hoarding housing, the rich pay less - the poor pay more.
Unless we restructure our tax and supply policies to address this and reduce land prices, encouraging instead individual investment into productivity rather than rising land values. Welfare measures to help the homeless are merely a Band-Aid to capture the increasing number falling foul of the system and never a cure.
Which brings me back to the one question both reporters failed to asked,
“Who are rising property prices good for?”
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catherinecashmore-6LXia3pPQj

Housing hoarders: Where the rich pay less and the poor pay more

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GUEST OBSERVATION
One mistake many property investors make on their road to wealth is purchasing as many properties as they can, not taking into account location or price or, most importantly, land value.
But you don’t need to own multiple properties to be wealthy. You just need to make sure the ones you do own count – and of these properties, at least two should be what you refer to as your ‘core assets’.
The core asset properties in your portfolio are you staples; the ones you’ll keep for 10 years plus and will guarantee a significant growth over that period. They are not speculative; instead they are investments that are continuously increasing in value over that time frame.
It’s important to get this right from the start. These properties need to be in a 5km-10km radius of a major capital CBD, affordably priced with a high level of tenancy and high rental returns.
They need to be purchased at 5% to 10% below the market value to secure a return. I call this the ‘margin of safety’ when buying any investment property and it’s crucial for putting you in the right mindset for managing a portfolio with a positive outlook.
Buying fewer properties will also mean spending less on stamp duty and purchasing costs. I have always said that Governments are usually the big winners from real estate transactions, with removalists a very close second. But it doesn’t need to be that way!
Remember, we are just in this for the money, not for the purpose of saying you own multiple properties. What is important is your net worth; not your gross amount of properties.
Once you’ve purchased your first core asset, wait three years or more until you’ve built up enough equity to purchase another. It may be boring, but good investments usually are. Just remember, they have huge long term rewards.
How long till my property doubles?
A general rule of thumb exists in the investment world that property doubles every 7-10 years. While this is simplistically true, for those buying lemons or at the wrong time, nothing could be further from the truth. Did you know that:
<ul>
<li>Between 1960 – 1972, it took 12 years for to property to double</li>
<li>Between 1972 – 1975, it took 3 years for to property to double</li>
<li>Between 1975 – 1983, it took 8 years for to property to double</li>
<li>Between 1983 – 1988, it took 5 years for to property to double</li>
<li>Between 1988 – 2001, it took 13 years for to property to double</li>
<li>Between 2001 and 2013 – it took 12 years for property to double</li>
</ul>
Source: Value Investing in Property; What would Warren Buffett do if he was buying property in Australia? (Gavin McPherson)
So you can see that for those that bought wisely (say in 1972 or 1983) the purchase of one astute investment property could certainly reap far more rewards than 3 poorly timed ones! Not to mention the levies, taxes, stamp duties and maintenance along the way. 
Importantly, you will need to consider the location of the investment and how much land value is intrinsically within the land component. Do not assume capital growth without taking into consideration those key points.
Assuming returns of 10% and 11% year on year is unrealistic - you need to average your returns over 10 years and be as positive about your portfolio in bad years as you are in good.  Remember, property only needs to increase by 7% per annum to achieve this outcome.
Is it harder than it used to be?
Unfortunately above trend capital growth will get harder and harder in the future. The returns of the past will not be the returns of the future, but rewards can still be gained by following demographics; my secret pastime.
For those of you that already own some ‘dog’ properties, don’t despair. Just think, even if you purchase the worst property investment, it will come good over time with the power of inflation. You are certainly in a great market that will forgive al lot of your properties downsides. But for those that are about to purchase, imagine what will happen if you purchase well?
The strength of your portfolio should be built on the premise that you might only need to buy one great property to trade or keep as a core asset once every three years maximum.
Core Assets
By simply concentrating on fewer core assets most of the hard work is done. Investing isn’t meant to be difficult over the long term. In fact, it is designed to get easier.
Your ambition is to get wealthy, not to collect properties.  Most people I know who own ten or more properties are NOT wealthy. Of course, it isn’t for lack of trying. In fact, if I could summarise the activity of an active “collector” investor, I’d use the analogy of the “old lady who swallowed a fly.”  She chased one bad decision with another; and the result wasn’t good…  
Now I know there are plenty of peddlers determined to wrestle your wallets out of your pockets to have you buy multiple properties in a market like this. In fact, it’s almost perfect timing for these charlatans. 
Just remember that old lady!
Gavin McPherson is CEO of Oasis Property and bestselling author of Value Investing in Property, What Would Warren Buffet Do If He Was Buying Property in Australia?
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gmcpherson-YBEWnRLxLK

The key strategy to being a successful investor

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If you had seven hundred and eighty two odd thousand dollars, or the median price of Sydney to spend, how would you spend it?
I was reading an article recently about finding a suitable property in Sydney and paying just the median price, which was around $782,000 at the time.
The story continued as property experts put forward their ideas. One suggested a small house in outlying Sydney suburbs like Rockdale, but most properties in this price range would be on busy roads and that would be the compromise.
Another expert recommended inner ring apartments over old terraces or townhouses that would need substantial renovations. He said you could pick up a one bedder for $600,000 to $700,000, or a two bedder for $775,000 to $900,000, with expected yields around 4.5%.
Reading about this expensive Sydney property mentioned in the story got me thinking about what you could buy for the same price if you drove two hours north of Sydney to the Lower Hunter Region of NSW. Depending on which city you chose, your $782,000 would stretch to an impressive acreage or farm. 
In the city of Cessnock you could buy three houses, each for $260,000 (around this city’s median price). They would be on large 800 square metre blocks with 3 bedrooms and each rent for around $300 per week delivering a 6% or more gross yield. Or you could buy two larger, newer homes or a really beautiful house within a golf resort and even a commercial property.
In the city of Maitland you could buy a luxury restored heritage home built at the turn of the century with manicured gardens, a 6 bedroom homestead on acreage, or two substantial, almost new houses in new land estates each on 750 square metres of land.
Or you could develop land and build a dual occupancy – for around $782,000, your budget would cover building two four bedroom homes on a larger corner block with a Torrens Title subdivision.
The big difference between buying multiple or larger properties with your budget compared to building two dwellings yourself would be the equity creation and depreciation benefits. You see if you used your $782,000 to add value, you would create about $120,000 in equity within a year and get around $25,000 in depreciation in year one (using the diminishing method).
I know what I’d chose if I had a lazy $782,000 to spend particularly if I was an investor...hmm a two bedroom unit in Sydney or a four bedroom dual occupancy project in the fast growing city of Maitland? 
Oh, and another very important thing to note. The Hunter was a big winner in the New South Wales budget. This week it was announced that the <a href="https://www.hunterinfrastructure.nsw.gov.au/" target="_blank">Hunter Region gets $100 million to top up the Hunter Infrastructure Fund</a>.
Plus more than $300 million had already been announced for Hunter projects ahead of the budget including $280 million for the last link of the Newcastle inner-city bypass, $20 million to rebuild the Hunter Sports High School, $6 million allocated towards the Glendale interchange and $3 million for the planning of a new Maitland Hospital, among many others.
Infrastructure spend is one of the key indicators that an area is earmarked for growth.
<a href="https://www.propertybloom.com.au/">www.propertybloom.com.au</a>
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jochivers-wq5Bp59R5a

What would you buy with Sydney's median price?

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Swann House, the ornate 10 storey office block at 22 William Street, Melbourne, has been listed for sale.
Offers close 25 July with Klinger Wood agent Eugene Wood who says he is anticipating around $20 million for the uniquely styled building on the corner of William Street and Flinders Lane. 
Swann House has a gross building area of 7,000 square metres with a net building area of 5,700 square metres.
Its floor plates equal around 550 square metre.
The building is about 90% leased reflecting $1,328,000 net income, rising to $1,461,000 on a fully let basis.
The site area is 826 square metre with frontages of 34 metres to William Street and 24 metres to Flinders Lane, set one block and about 100 metres from Collins Street.
It is currently 14 commercial strata lots, including Private Media, publisher of Property Observer.
The building takes the form of a large but simplified modern commercial palazzo form with restrained Greek revival detailing.
The architectural historian, Robin Boyd described the completed building in the seminal text, Victoria Modern, as being `remarkably simple’.
The top two additional matching floors were added to the building in 1948-1949. 
It was built in 1921 as the headquarters of the newly constituted State Electricity Commission of Victoria which was created by an Act of Parliament with Sir John Monash as its chairman. 
The Commission undertook the development of brown coal deposits near Morwell, the construction of the first of a series of steam-powered generators and the high voltage power lines required to bring electricity to the city of Melbourne.
It was designed by AR La Gerche, who was architect to the Commission from 1920 until his retirement in 1938.
 In addition to the William Street Headquarters, La Gerche also designed the Yallourn township and the later now-demolished Electricity Commission buildings on Flinders Street.
It ranks among one of a small number of 20th century multi-storey government offices erected in the pre-World War Two era.
While the William Street building provided the usual clerical, administrative and engineering office areas, it was unique in also housing the central control room of the Commission's power production pool.
Data relating to generation and regulation was fed to the control room by land and radio lines and staff on duty would continuously regulate voltage, carry out system switching procedures, locate and rectify faults throughout the generating facilities, transmission lines, stations and substations that comprised the power production pool. 
Kliger Wood director Eugene Wood says the CBD market is bereft of quality investment grade opportunities with the upside offered by 22 William Street.
Last traded 24 years ago, Swann House holds a Capital City 1 zoning.
“From a development perspective the building lends itself to a potential hotel or as residential (STCA) which would have unencumbered views to the south towards the Yarra and the Southbank and Crown precinct."
He noted the neighbouring building below Swann House was the historic and significantly protected low rise, the Immigration Museum.
Melbourne's founder John Batman's house was on the Swann House site, which no doubt would headline the marketing for any residential or hotel redevelopment in the future.
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Swann House, Melbourne listed with hotel and residential conversion potential

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Brad Beer is the managing director of <a href="https://www.bmtqs.com.au/" target="_blank">BMT Tax Depreciation</a>, a quantity surveying company specialising in tax depreciation schedules for investment, commercial and rental properties.
He's also a property investor with a focus on long-term, sustainable strategies. We sat down with Brad to hear about the lessons he's learned over 13 years as an investor. 
The beginning
I bought the first property in 2001. It was an old, very rough, four bedroom house in the Newcastle area, with a big shed out the back, which I still own. Then I went straight into a serious amount of renovation.
I’ve done a number of renovations over the years, and that was the first one. I was up at whatever hour of the night, after work, whenever possible on the weekends. It was pretty ugly to start with.
I did that on the first one, and I did that on the second one. Then I bought some land. At that time in my life I didn’t have much equity. So I bought, I renovated, I revalued. I pulled the equity back out so I could go again.
There was a lot of buying and renovating; manufacturing more equity out of the properties by going, “This is a two bedder but I can do this, this and this to make it a three bedder”.
The fact is I just didn’t have equity at the time; I didn’t have any money. Hindsight is a wonderful eye-opener, and one thing I might have done differently was to use Lenders Mortgage Insurance on my first property instead of saving 20%, allowing me to buy two properties at the same time. It would have been beneficial in this instance as there was a lot of growth in the New South Wales market in those first couple of years, and in hindsight I realised I missed a chunk of it because I was trying to do things the “right way”. But you learn from these things.
On any renovation you budget a certain amount to do works, and even as a quantity surveyor, you live in a dream land.
There have been mistakes along the way, but did I make any major mistakes and completely ruin anything? The answer’s “no”.
Did I find bigger problems than I expected once I pulled the walls off? Yes. You’ve just got to allow for those sorts of things.
There are properties I own now that I wouldn’t have bought if I had my time again. That’s because I know more about investing properties now than I did back then.
I bought land at a time when I shouldn’t have. We had the GFC a couple of years later, around the time that I settled. It wasn’t the right time in my portfolio to buy land, based on the cash flow (or lack thereof) it was going to generate. I was speculating and purchased the property on its growth potential, and I had to settle when the GFC hit, which I was financially able to do at the time, but it did tie up equity in something I shouldn’t have bought.
Fundamentally, a lot of things I believe about investment haven’t changed. I would probably buy a lot of similar properties to what I have bought, even though hindsight can change things considerably, of course.
I don’t have the physical time or the want to go and renovate at the moment, especially not personally. So that changes the cost of things considerably.
My position is more comfortable now from an equity perspective and from an available cash perspective. The fact is, one of the keys to investing in property is learning to manage financing properly and having control of cash. I have control of more cash now through my property investing.
Renovation: A case study
 <img src="/images/2014/06/18/Before%20Reno%208.JPG" alt="">
Brad purchased this Newcastle home for $262,500. 
<img src="/images/2014/06/18/After%20Reno%205.jpg" alt="">
The home is now valued at $460,000.
<ul>
<li>Property in Newcastle area</li>
<li>Purchased in 2006 for $262,500</li>
<li>Two bedrooms</li>
<li>One bathroom</li>
<li>Spent $25,000 on renovations</li>
<li>Bank valuation after renovations $360,000</li>
<li>Rent after renovations $310 per week</li>
<li>Current rent $430 per week</li>
<li>Current valuation $460,000</li>
</ul>
<img src="/images/2014/06/18/Before%20Reno%204.JPG" alt="">
The house's kitchen, before (above) and after (below) renovations.
<img src="/images/2014/06/18/After%20Reno%204.jpg" alt="">
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 I’m not a “put it all on everything” kind of guy.
I haven’t really got any properties in mining towns. There’s a risk associated with that. I have the kind of portfolio where I could take some risk now, but I’ve just been too busy to find one. And I think properties in mining towns should not be an early part of your investing, they should be part of your portfolio when you have the ability to take some risk. They certainly have risk attached, but then they have high returns attached as well.
You need to learn a lot of things about investing in property before you invest in property. You need to learn how to structure your finance in a way which provides flexibility with cash, as well as control of your own journey or property investing “destiny”.
One of my main mistakes was not investing in property earlier, based on my risk profile at the time, due to lack of knowledge.
It’s all about gaining as much knowledge as possible as early as possible, learning how to manage financing, understanding what type of property, based on your risk profile, you should be buying and also what you can reasonably afford. I also did a bit of research into property markets, tax and that sort of thing during my university studies. So I understood that is a part of it too.
I learned by hanging around the property industry, going to property events to talk about depreciation, reading books and actually learning about the fundamentals. I’ve continued to do that over time.
Long-term investment
Unfortunately Australia, like any other country, can sometimes assume a herd mentality – especially with property investment. Buying in areas that have hot growth but which lack fundamental reasons for that growth to continue is not something that you should do. But we do it in Australia.
It’s why we have cycles in property values in this country. I believe in long-term investment – I haven’t sold a thing since starting out.
I want ways to create equity through property, including buying, renovating, getting extra bedrooms out of houses so I can increase rent and valuation, and getting involved in small developments. I’m in a bit of a construction phase through the course of this year. I’ve bought properties where I have the ability to subdivide blocks and build additional houses on those blocks.
I’m not operating as a developer who’s required to develop. I’m operating as an investor, with the ability to develop properties, should I so choose to. That’s taken the risk out of my developments.
If you’re a budding investor, make sure you’re not staking it all on being a property developer. You should have a fall-back position where if you can’t develop right away, you can do X. To develop you need a lot more money and a lot more equity. It’s not as simple as it sounds sometimes. Like a renovation, there are hidden costs.
You’ve always got to compare the development feasibility to the potential sale price of that property at the time you do the development. My fall-back position is always, “Do I like the property as an investment by itself?”
That means I end up doing small developments of course, but that’s okay.
I firmly believe in investing in property now, and in the future. I’m actively keen to continue to do that. A lot of my investments are in New South Wales, however I haven’t spread to wider areas as much as I’d like to.
In the future I will be investing in more property in different states and would like to practice what I preach: not following the herd mentality, buying in areas where I’m not sure whether things will turn around in six months or six years – because I’m here for 10 or 15.
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