<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

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.

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

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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Brisbane’s property syndicator Sentinel Property Group has expanded its range of investment products, launching a specialist mortgage financing venture for residential and commercial development projects through ‘Queen Street Invest’.
Created by Sentinel founder and CEO Warren Ebert, it is also jointly owned by Jim Cossart and Daniel Holden.
The new business looks to allow investors to participate in financing new development projects through passive equity products. This includes mezzanine debt, preferred equity and first mortgage secured loans, each of which will be a standalone closed end fund for just one project.
Clearly defined exit strategies and a six to 12 months pre-determined life span will be there for each fund.
Sentinel has a portfolio of 20 office, industrial and retail properties to a combined value of more than $400 million, and average net annual returns of 12.5%.
The minimum investment for Queen Street Invest will be $100,000. Mortgage finance products will be available from $1 million to $20 million in value.
“We believe that the timing is right for this type of investment product, with market activity and construction on the rise and limited competitors in this space,” said Ebert.
“Whilst Sentinel remains focused on our core property business, we understand that some investors have a need to allocate a percentage of their portfolio to shorter-term investments. This is where Queen Street Invest can provide balance and diversity of investment.”
Queen Street Invest currently has some financing deals under review in Queensland in the residential apartment and retail sectors. They will be looking at national opportunities.
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jduke-EHk3XBmHkn

Brisbane syndicator Sentinel Property Group expands to specialist financing venture for developments

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<img src="/images/2014/05/19/diston-profile.jpg" alt="" style="float: right;">
Agent: Brett Diston
Position: Director 
Agency: Ray White Commercial 
Office location: Manningham (Melbourne)
How long have you been in the industry? 
10 years
What’s happening in the area you specialise in?
We are achieving great results in the eastern corridor with the amount of infrastructure being implemented and the hunger for strong performing assets.
Describe the most interesting property you have sold or leased
Every property is different and needs to be analysed individually. However, more recently I have had the opportunity to list and sell a number of petrol station sites and businesses which has been very engaging for me to understand the depth of the businesses in finer detail.
What are the ingredients to being successful in your job?
Honesty and giving sound advice, continue to add value to their asset and increase the net worth.
What aspects of your role do you enjoy the most?
Helping people to turn their underperforming assets into thriving investments which enables the client to have more options around their financial future. This is a very rewarding role that I am able to play.
Where would invest a spare $750,000?
I would look at all aspects of real estate whether it be residential, commercial or development sites, as long as I could foresee the value add potential.
Which football team do you support?
Essendon
What’s your favourite app or techno gadget? 
I have found the iPad mini to be extremely useful for both professional and personal use given the amount of applications available that relate to both.
How do you use social media? 
<a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/brett-diston/57/826/467" target="_blank">LinkedIn</a> is the only one I use professionally. I leave Facebook for personal use.
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po-LsXgBTHBmX

In profile: Ray White Commercial's director, Brett Diston

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Congratulations — you’re having a baby! Your head will be full of plans for medical check ups, baby names, cots and prams.
In the midst of all the excitement, there’s one issue many expectant parents overlook. If you’re taking leave from paid employment to be with your child, how will this affect your finances? Will you be able to afford your mortgage and other living expenses, or will you need to reshuffle the deckchairs?
All too often, parents leave these considerations until after the baby is born, their income is significantly lower, and they’re struggling to meet their commitments.
That’s why, after you’ve called your family and friends to break the good news, it’s important to contact your lender, broker or financial adviser and put plans in place to ensure you can fund your new lifestyle.
<blockquote>
All too often, parents leave these considerations until after the baby is born, their income is significantly lower, and they’re struggling to meet their commitments.
</blockquote>
If you have a mortgage and think your finances may be stretched, speak with your adviser about reducing your repayment amount. It’s particularly important to do this well ahead of your baby’s birth, because — regardless of whether you’re varying the terms of an existing loan or changing to a different one — lenders use a ‘snapshot’ approach when assessing your application.
This means you must present yourself and your finances in the best possible light — which is why the best time to apply is when you’re still earning the maximum possible income, not after the birth when your income has dropped substantially. The last thing you need on top of sleep deprivation and wet nappies is to be forced back to work early because of financial pressure!
There are several ways to reduce your repayment amount.
Extend your loan term.
Let’s say you have 23 years left on a 30-year principal and interest loan of $300,000 at the standard variable rate of 5.9%. Your minimum monthly repayment will be $1,989. By extending your loan term back to 30 years, the amount would drop to $1,779.
Change from principal and interest to interest only.
Loans for owner occupiers are usually structured so that you pay off a small amount of principal alongside the interest. This helps reduce your loan balance faster than if paying interest alone. However, when your income drops after having a child, changing to interest only can ease the squeeze. Using the example above, the borrower’s new repayment would be $1,475 — a saving of a further $304 per month.
Renegotiate your interest rate.
The home loan market is constantly changing so if you’ve had your loan for more than two years, there may be a better option out there. For example, many lenders will offer a discount of 0.7% or more off the standard variable rate.
By extending their loan term, changing to to interest only and negotiating a discounted rate, our $300,000 borrower will pay $1,300 per month — freeing up a massive $689 to help meet expenses while their income is reduced.
Find your safety net.
Make sure your loan includes a redraw facility. If your property has increased substantially in value since you bought it and/or you’ve made extra repayments, a redraw facility can help you access these funds. Alternatively, you may be able to establish a line of credit, enabling you to draw on some of your equity to fund living expenses if required.
By planning your property and loan commitments well ahead of time, you can stop worrying about your finances and concentrate on something far more important — your new son or daughter.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
This article was first published on Property Observer in November 2013. 
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marmstrong-sd3emVLPPb

How to stop your bundle of joy burning a hole in your pocket

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In the middle of articles about Tinder, student actors, Asperger's Syndrome and book reviews an article called 'Gen rent' jumped out at me. I was reading Issue Two of Catalyst, the RMIT student magazine and I began reading with enthusiasm.
It discusses Sarah (her name "changed for privacy reasons"), a Gen Y who has purchased a unit and lives with her parents while repaying the bank and renting the property out.
Later in the article AHURI director Wendy Stone discusses that there's no typical way of becoming a home owner, and points to it being time for "lateral solutions to housing issues" and adaptive behaviours, whereby siblings and friends purchase together. She notes that "... young people should definitely think creatively with each other" on how to get into property. An interesting discussion itself.
And then writer Alan Wedon gives the floor to "Sarah", where the following is written:
She also says Gen Y is being pushed out of home ownership by Baby Boomers, who have a greater capacity than in previous decades to invest in private home ownership - driving house prices up even further.
"It's a wicked problem really," she says. "Because as well as competing against investors, wealthy retirees and other first-home buyers for housing, members of Gen Y are also forced into competing with each other in the private rental sector.
Anger, it may appear to those new to the debate, is rampant among FHBs. Affordability is a numbers issue, and one discussed heavily on Property Observer. But attitude is another issue entirely, and the attitude from those who are interested in getting into the market is fascinating.
A comment in mX had me saving it a while back (pictured below), and it reflected the above sentiments almost to the word.
<img src="/images/2014/04/10/jd-tear-out-youngergen-april-10-two.png" alt="">
Source: mX - Vent your spleen 
I'm assuming, hoping, that the above is satire. But if we're at the point where someone can satirize in a non-property related publication about the anger and blame coming from first home buyers, then it's worth noting.
With the news that the Abbott government has <a href="/expert-insights/investing/first-home-saver-accounts-scrapped-what-now">scrapped the First Home Saver Accounts scheme</a> in its first federal budget, many account holders have understandably been left confused about what will happen to their money.
But should we be blaming the older generations and investors for ruthlessly pushing up prices? And, shoe on the other foot, should we be slamming first home buyers for being too picky and swanning off on European holidays one time too many?
Blaming other people is completely human and, for that reason, spills into property. In the same way that some like to violently blame foreign investors for facing off against the battlers, which I have not been able to see myself at a single auction, the younger generation likes to blame the older generation for pushing up house prices. And the older generations like to blame the younger generations for being far too selective.
As Terry Ryder has previously written for us, and discussed with myself, <a href="/expert-insights/investing/the-problem-with-first-home-buyers-isnt-affordability-its-expectations">the 'real' questions around first home buyers are not being asked</a>.
He says that the real questions we should be asking include the following:
<ul>
<li>Why do you think you can't afford to buy? 
</li>
<li>Have you tried to buy? 
</li>
<li>Where have you looked? 
</li>
<li>Are you willing to compromise to get into the market?</li>
</ul>
 
Compromise - the 'c' word that no one wants to hear. It relates not only to compromising on where and what you buy, but potentially also your lifestyle. Those who claim our parents never had to do these things are sorely mistaken. Speaking of the UK market, and then the Australian market, my parents tell stories of keeping the heating off in the coldest English winters and eating chilli-con-cabbage to afford their property as young 20-somethings. There's no shame in this, and I have huge respect for them for managing to raise us simultaneously. Whether or not you must compromise more now if you want to get into property is debatable, but the reality remains that if you're not born into a wealthy family (who are then willing to provide you funds) and if you don't immediately step into a high income earning role (if you ever get to this position) then compromise is going to be a requirement.
A conversation I had recently with someone looking to buy their first home so they could move out together, revealed that they were looking for an apartment within the inner ring of Melbourne, in a few choice desirable suburbs that they listed to me. They were not looking for something new, necessarily, but well-presented and sizable, preferably with a car space. Fair enough.
But then they were finding themselves quickly outbid by "older people" when they attended at auction. They expressed frustration with the process. I suggested that they look further out west and ignore Melbourne's city, suggesting that in parts of Melbourne's west (and we're talking past Rockbank) there are house and land packages for four-bedroom, two-bathroom houses on around 600 square metres of land for a sum amazingly less than that. Not to mention the established property market, where three-bedroom, one-bathroom houses for around the $200,000 to $300,000 bracket.
The reasons for saying "no" without even a Google, was not due to the slow capital growth prospects, which are of course an issue, but because the area is "too far out" and they "like" the area they're look at.
I had a painfully similar conversation with someone who was looking to buy in the Eastern suburbs, but was then told that Melbourne's west was too far from their friends and family, and from work. It's 35 to 45 minutes on one train from Southern Cross Station. I happen to live in one of these areas, and do so because it's cheaper - not because it's my dream area to live in.
This, to me, sounds as though it answers those clarification questions.
But it doesn't mean Generation Y is full of whingers, or picky - and, indeed, not all of them even want to own property - much has been said on the demographic shift we're seeing. Plenty of those who are prospective buyers are completely prepared to "wait it out" until they find the property that suits them. Others will eventually consider suburbs further out, or they'll buy something smaller that needs doing up. Or, they might not want to rent in the first place.
I discussed with Charles Tarbey, the chairman of Century 21, his first property. He told me it was a run-down property in a rough area of Sydney's west that still has a bit of a bad reputation today. It did grow in value, he sold it, and he used the profits to help open his first real estate agency.
Those who say buying a first home isn't hard are mistaken - a deposit even on a "cheapie" property is not an easy achievement. However, we do have an issue on both sides of the fence about blaming other generations for their own individual problems. It's far too easy to ignore the reality - that for those who are not wealthy, it has never been easy to purchase a first home and it will require a great deal of compromise one way or another.
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Letter from the editor: FHBs, if you're not wealthy you will have to compromise

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Winter’s start is set to see strong real estate sales results thanks to strong April appraisal figures, according to property group Raine &amp; Horne.
April’s national average property appraisal figures were up by more than 21% from February.
Angus Raine, executive chairman and chief executive of Raine &amp; Horne says that appraisal figures are an indicator of the level of sales strength two or three months down the track. According to Raine, a significant proportion of buyer activity can be traced back to record low interest rates, improved consumer confidence and strengthening employment outlooks.
“The upshot of current appraisal levels is that we are anticipating very strong settlement results in May and June, although there is still a shortage of listings, which indicates that some owners are wary that a winter sale will not deliver an optimum price.
“Winter is often overlooked as a good time to sell in many markets around Australia, and despite our strong appraisal numbers, you could be competing with 15-20% fewer homes for sale than in traditionally high volume periods such as early autumn or spring,” says Raine.
“It’s also a fallacy that committed buyers are put off by winter chills, while outdoor factors will have little impact on smaller homes and apartments, for instance.
“However, vendors would do well to heed the advice of their real estate agent when settling on the pricing of their homes to ensure a timely sale this winter.”
New South Wales saw the biggest jump in appraisals between April and February, with appraisals up almost 26%. Victoria appraisals were up 22% for the same period, while Queensland appraisals rose by 15%. Raine &amp; Horne also cited a specialist marketing campaign conducted by the company as a factor in the lift in appraisal and listing activity.
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jrichardson-uRX5hFdKfN

Strong selling conditions for winter: Raine & Horne

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The investment value of your rental property is only as sound as the tenants you have in it.
Good tenants will take care of your property, keep you up to date with any maintenance issues and provide a reliable source of income. Bad tenants can disrupt your cash flow, prematurely age your property and will end up costing you more in property management fees.
Don’t underestimate the value of tenant retention. Each time you lose a tenant, you’re losing valuable cash while your property sits vacant.
Property Observer brings you five tips for getting and keeping the right tenants.
<ol>
<li>
Don’t set rents too high While slugging tenants with the highest possible rental rates might seem like the best way to squeeze cash from your investment, the practice may actually harm your tenant retention rate, costing you more money in the long run. If tenants are too pressed for cash or see something more affordable pop up on the market, they may move on, leaving your property empty while you search for new renters. Just because one tenant can afford to pay extra for now, that doesn’t mean that others will do the same once that renter moves on. Gary Triganza of Sydney agency Kelly &amp; Sons told Property Observer that landlords should consider keeping rents slightly below the market rate to retain a great tenant. “Landlords can then go to the full market rent with the next tenant,” he said. If you set rent at $590 per week rather than $600, it will cost you (and save your tenant) $520 a year – less than a single week on the market will cost you should they vacate. Setting your rents too high will also scare off good tenants. Beware of prospective renters that are willing to pay well above and beyond market prices – they may be desperate because they have poor rental histories. 
</li>
<li>
Don’t set rents too low Setting rents too low may leave you vulnerable when you decide it’s time make an increase, with a big jump in the rent likely to scare away your tenants. Gradual adjustments to market value over a long period of time are more likely to go down well with your tenants than a leap at the six month mark. Be cautious about setting your rent too low to attract tenants. If your tenant is living in your property only because it is affordable, rather than desirable, they may not take good care of the property. Remember, you probably won’t hold your investment property forever. When it comes time to sell, buyers will enquire about your rental yield – and will be turned off if it is well below market value. 
</li>
<li>
Keep up with maintenance Although rental markets in certain capital cities are tight, don’t underestimate your tenants’ need for quality housing. As a landlord, it is your responsibility to provide safe, clean and well maintained housing to your tenant. Don’t be fooled into thinking you hold on the cards because you are the property’s owner – they are paying you money in exchange for the provision of a service. If you want to maintain a good relationship with your tenants and your source of income, maintain your property. Don’t dodge calls from your property manager, don’t be stingy when it comes to required repairs and if you’re choosing to maintain the property yourself, make sure you show up on time. Properties all see inevitable wear and tear, regardless of the tenant. But when renters see that you are on top of the necessary repairs, they will be more likely to take good care of your property. 
</li>
<li>
Have a good relationship with your property manager Property managers are there for every step of the tenancy process, from sourcing good tenants to keeping them happy and finally guiding them out of the home when the time comes. Your property manager should be on good terms with your tenants and work hard to keep them happy. They should be on top of any necessary maintenance issues and quick to let you know if any issues arise. Don’t have <a href="/expert-insights/investing/property-managers-should-not-have-to-be-on-call-24-7">unrealistic expectations of your property manager</a>,  but do make sure that you are in regular contact. Unfortunately, not all property managers were created equal. Some will be easier to get into contact with than others, who never seem to be within answering distance of a phone. Make sure you <a href="/news/how-to-choose-the-best-property-manager">choose a good property manager </a>when you purchase your investment property, and don’t be afraid to change property managers if you need to.  
</li>
<li>
Let the bad ones go  Don’t think that you have to put up with bad tenants. If your tenant is failing to pay rent or causes damage to your property, you are able to take action. Depending on the state, you may be able to immediately evict a tenant if they are causing malicious damage to your property or after two weeks if they are late on rental payments. You may also be able to evict a tenant before the end of their lease if they are <a href="/expert-insights/investing/seven-ways-to-detect-if-your-investment-property-is-being-used-as-a-drug-lab">using your property for illegal activities</a>, putting their neighbours in danger or keeping other tenants in the property without your knowledge.
</li>
</ol>
Being a good landlord isn't just the right thing to do, but will end up making you more money in the long run. If you are a reliable landlord who takes care of your property, you can retain reliable tenants who do the same.
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Five tips for keeping good tenants

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The Tea Gardens Hotel in Bondi Junction has been sold, reportedly for around $37 million to a private investor.
The pub was sold by Melbourne-based publicans Aussie Leisure Group, brokered by<a href="https://www.raywhite.com/nsw/bondi-junction/1129055/" target="_blank"> Ray White Hotels agent Andrew Jolliffe</a>.
It is set over two levels on its 800 square metre 2-4 Bronte Road with outdoor areas, a highly sought after balcony, large kitchen and 30 gaming machines.
‘‘The annual profit delivered regularly by the Tea Gardens puts it firmly in the A-Grade asset class, irrespective of category, and means that it enjoys similar status to the Coogee Bay Hotel, the Golden Sheaf in Double Bay, the Newport Arms and the recently traded Steyne in Manly and Watsons Bay hotels,’’ Jolliffe advised potential buyers.
Adjacent to Westfields and Myers in Bondi Junction, the heritage listed Tea Gardens hotel is considered a prime asset.
‘‘The latest quarterly Top 200 gaming rankings highlight the hotel’s sizeable jump from 121 in September 2013 to 88 in the state of NSW for the December 2013 quarter,’’ Mr Jolliffe added.
In colonial times, Bondi Junction was known just for its The Waverley Tea Gardens Inn. The hotel was laid out with gardens, summer houses, quoit pitches and other games and was known as "a favourite resort for afternoon teas and fun".
It was served by horse-drawn omnibuses from the city and was "a rendezvous for young people to spend their Saturdays and Sundays".
Its art deco features in the replacement pub were restored in the late 1990s by publican Peter Padsworth. After spending more than $1.5 million, business increased five-fold following the renovations.
Aussie Leisure bought the hotel in mid-2006 for $44.75 million. It had previously sold at $7.5 million in 1998. In 1990 Tooth &amp; Co Ltd sold it to Yau Sun Nominees Pty Ltd for $5 million.
 
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jchancellor-FAypfDUnLy

Tea Gardens Hotel, Bondi Junction sold

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Each year in Australia there are about 50,000 divorces, although the ABS figures were last published in 2012, the divorce rate had been in steady decline since peaking in 2001.
Divorce is one of those key social factors that does have a marked impact on the residential property market, and sometimes in surprising ways. I frequently come across mainly males who ‘unexpectedly’ find themselves in the housing market where finding a new home can have a material impact on diverse areas from location to design.
For both males and females granted a divorce in 2012, 60.3% were less than 45 years of age at divorce, while 51.0% of males were less than 45 years of age at divorce. The highest incidents of divorce is then in the age bracket of 40-44 years of age, and this fact alone is not worthy as this age bracket is also when people are at the peak of their earning and debit capacity.
We earn more in our 40s but also that’s when debt, including mortgage debt peaks, and so this along with the fact that many married couples in this age bracket will also have kids in their late teens, we are looking at a tricky situation. For some this can result in them having to enter or re-enter the housing market in a ‘gun to the head’ state of affairs.
A Mix of Family, Personal and Financial Needs
The impact of divorce on housing is far reaching and is underscored by the fact that in 2011, there were some 24,144 divorces involving children under 18 years of age. This represents 48.4% of all divorces granted.
The complexity of financial arrangements is further explained by the fact that the median length of marriage increased from 10.5 years in 1992 to a peak of 12.6 years in 2005. Since 2005 it has decreased slightly, with a median duration of marriage to divorce of 12.2 years recorded in 2012 and so over the intervening decade plus, many families would have purchased a home and be close to the mid-way point of their loan terms.
<blockquote>
Divorce is one of those key social factors that does have a marked impact on the residential property market, and sometimes in surprising ways.
</blockquote>
Another key reason why divorce for people in their mid 40s impacts their home living arrangements comes via the fact that over the last 20 years, the proportion of joint divorce applications has been on the rise, and the proportion of one party applications has been on a downward trend. Now joint applications remain the highest and they account for almost 40% of all applications.
There has also been another and possibly related demographic shift, and that is the number of children aged below four living with two parents has been on decline for some years, while the number of children in the same age group living with one parent has been on the increase. With more sole parents, housing demand has been shifting and this trend may well continue to grow.
The rate of divorce may well continue to decline if couples do not marry for the reason of looking after younger children. But when they stay married the entire family unit will be older and this will further impact housing outcomes when a divorce does happen.
Housing Post Divorce
It does appear that at times couples could well be putting off getting a divorce because they simply cannot afford all the costs involved in re-housing. However when in their mid 40s there is evidence of some degree of greater mobility, although at a cost.
One hurdle will be the costs associated with buying and selling two homes. Coinciding with a real estate slump during the GFC divorce rates declined, because couples without ample money to spare were forced to stay together because no one wanted to sell the family home at a loss. Possibly because in the past the individual who kept the family was in the end financially better off.
However we also see many couples leaving the family home with the female partner and the children with males moving on, which is helping to create demand for smaller apartments to both buy and lease. This demand is also causing some males to look for accommodation near the family home, and this would directly reflect the no fault trends that I detailed earlier.
However women in particular are becoming less attached to the old family home, wanting to begin a new life in a new home and this again is having an impact on the demand for smaller apartments.
However while some divorces do result in the forced sale of the family home, higher real estate prices might well be causing couples to work harder on the relationship to avoid the complications and costs of dealing with the family home.
We are seeing more flexibility in what type of new home divorcees are seeking and this helps create demand for new projects with a good mix of product for sale. After all, for both parties a new well-located apartment can now be an attractive option. But for now we will have to wait a few years to see if current high property prices keep a ‘lid’ on divorce rates.
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pchittenden-eLqUUC8TWW

How the demographics of divorce affect property

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New figures from SQM Research have seen vacancy rates jumping across the country, to see the national figure hit 2.3%, compared to 2.0%.
It’s the highest vacancy rate recorded for April since the inception of SQM’s index, in 2005,  and SQM's head of research Louis Christopher expects that for some areas this could be about to get worse.
<img src="/images/2014/05/19/vacancy%20may%2019%20one.png" alt="">
As can be seen in the table above, increases were seen across all states and territories in April 2014, compared to March 2014. When compared to the corresponding month in 2013, the story is somewhat more mixed.
Adelaide is down 0.1% since April 2013, and the market is also tighter in Hobart and Melbourne.
Perth and Canberra “are clearly looking sick” Christopher explained to Property Observer, “and I would say Darwin is going to follow suit.”
Melbourne, he noted, is bouncing back after two tight months previously.
“Nevertheless [it’s] more than just coincidence as our asking rents also recording a stagnant rental market,” he said.
National asking rents have remained flat, and over the past 12 months to May the capital city increase for units was just 1.7%, while dropping back 1.5% for houses.
“As we predicted this time last year, rental growth is slowing to the point where we are recording a flat rental market and in some instances significant rental falls as is the case with Perth and Canberra. With the national recovery in building approvals and completions, I can only surmise that the rental market is increasingly going to favour tenants over the next 12 months. And so rental yields for potential property investors will look even less attractive from their current low levels,” Christopher said.
Despite this, the Real Estate Institute of New South Wales’ vacancy rate statistics have seen pressure remain on Sydney’s market, as well as Wollongong, Albury and the Northern Rivers.
However, they also recorded a vacancy rate rise – bringing the number of properties for rent up 0.3% across Sydney, explained REINSW president Malcolm Gunning.
“Inner Sydney vacancy rates remain the tightest, despite an increase of 0.3% to 1.6%. In middle Sydney availability rose 0.4% at 2.0% and outer Sydney was up 0.2% at 1.7%,” said Gunning.
Inner city LGAs include Ashfield, Botany Bay, Lane Cove, Leichhardt, Marrickville, Mosman, North Sydney, Randwick, Sydney, Waverley and Woollahra.
Middle Sydney LGAs includes Auburn, Bankstown, Burwood, Canterbury, Canada Bay, Hunters Hill, Hurstville, Kogarah, Ku-ring-gai, Manly, Parramatta, Rockdale, Ryde, Strathfield and Willoughby.
And outer Sydney includes Baulkham Hills, Blacktown, Blue Mountains, Camden, Campbelltown, Fairfield, Gosford, Hawkesbury, Holroyd, Hornsby, Liverpool, Penrith, Pittwater, Sutherland, Warringah, Wollondilly and Wyong.
Wollongong vacancy rates are now at lows that were last seen three years ago, said Gunning.
“Wollongong is an attractive proposition for those who wish to relocate from Sydney. Its beachside location is a more affordable option for those who are seeking a more relaxed lifestyle and this is putting pressure on the number of properties available,” he said.
Meanwhile, vacancy rates dropped 0.5% in Albury and the Northern Rivers, while Newcastle’s increased by 0.5%.
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Highest national vacancy rate for April ever recorded: SQM Research's Louis Christopher

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Taking a close look at the Australian Taxation Office’s recently release statistics, Aviate Group managing director Neil Smoli has said that investors need to fundamentally shift their mindset.
Pointing to the 1,895,775 property investors, he noted that 73% have one investment property, 18% have two, 5% have three, 2% have four, 1% have five and 1% have six or more.
“This breakdown is especially significant when you consider that just 1% of the population retires financially free. This means their investments are sufficient to provide the income they require for their retirement without the need to sell assets or rely on family or government assistance,” Smoli said.
With investors increasingly buying into the market, with an extra 84,601 in 2011/2012, he forecasts that in 2012/2013 the numbers should break the two million mark.
“The correlation between the number of Australians who retire financially free and those with a portfolio of five or more properties is more than coincidence. The lesson from these statistics is clear: those in a position to do so should not postpone a decision to invest in their own future,” he said.
He said that a common situation is that many investors who purchased in 2010 are now preparing to sell.
“While most would have purchased their investment property with an eye on the long term future, the fact so many are preparing to sell indicates that the proper due diligence was not taken into account at the time of purchase, relative to the investor’s individual circumstances,” he explained. This may be due to what he considers to be investors buying the wrong property.
The property may have become too hard to hold, however exit and entry costs in real estate are substantial.
“Where an investment property becomes too difficult for the investor to hold in the short term, so much so that they decide it’s easier to sell up and move on, this is symptomatic of the wrong criteria being applied to its acquisition,” he said.
“Some investors in choosing certain properties actually do the hard work – the heavy lifting so to speak – only for subsequent investors to swoop along and reap the benefits. It’s a scenario that’s very common and it occurs when investors purchase a property that causes them a financial struggle.”
He concedes it is often the case that properties become arduous to hold when the rent achievable does not yield an adequate return, leaving the investor paying out hefty funds to cover holding costs. He suggests looking at ways to boost the yield before selling or to get the property tenanted, rather than having a mentality that suggests selling straight away.
Turn the page for Property Observer’s rental yield boosting tips. 
<hr class="system-pagebreak">
For the <a href="/expert-insights/investing/how-to-boost-your-rental-yield">full article on boosting your rental yield, including tips on minimising expenses and understanding your yield, read here</a>.
Five tips for boosting your rental return.
However, there are reasons why you can increase the rent beyond natural increases in the market. For instance, you could consider one of the following:
<ul>
<li>Improvements A renovation or partial renovation, addition of an air conditioning unit or other outlay can be worthwhile to a tenant. They may be willing to pay more for this change. It’s worth getting your property manager to speak to your tenant, as well as doing a quick search as to the difference between your property and that asking a higher rental price. Are there any areas that you can easily improve? Consider adding bedrooms and bathrooms where possible for a potential uplift in rental return. 
</li>
<li>Adding another dwelling For investors in certain areas, this will be more possible. Those with houses, particularly in outer suburban areas, could consider adding a separate dwelling – such as a granny flat – that can then be rented out separately. Of course, this comes with its own combination of difficulties – such as a reduction of rent on the main house and, potentially, a higher vacancy rate. There can also be a hefty outlay to get a decent build. Here are some <a href="/expert-insights/building/the-four-pros-and-four-cons-of-building-a-granny-flat">pros and cons of this strategy</a>.Some swear by this strategy, while others remain sceptical. 
</li>
<li>Renting the property to multiple tenants Another option is to consider renting the home to a number of properties, perhaps on a room-by-room basis. While this, again, can see higher turnover and higher levels of wear-and-tear, and arguably a lower-quality tenant, you may see it give you the rental yield uplift you desire. 
</li>
<li>Consider turning the property into a holiday rental This is not going to be effective for all property owners, however those with a property in an appropriate holiday area with strong demand may find that the high returns available over the holiday period can push their yield up overall. 
</li>
<li>Furnishing the property This is, again, not a strategy that suits every rental. However, in areas where there is demand for furnished properties, it may suit to deck-out the property yourself. Specific tenants, particularly in shorter-stay locations, are willing to pay a premium for the property to be ready for an immediate move in.</li>
</ul>
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