High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

[smartcode_project:default project_id=5743 project_image_fid=372394]

For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

[smartcode_project:default project_id=5743 project_image_fid=927]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

[smartcode_project:default project_id=5743 project_image_fid=375255]

The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

[smartcode_project:default project_id=5743 project_image_fid=375281]

For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

[smartcode_project:default project_id=5743 project_image_fid=925]

The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

[smartcode_project_cta:default project_id=5743]

Joel Robinson

Buying with confidence: What NSW apartment buyers should check beyond the defect headlines

Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

[smartcode_project:default project_id=145324 project_image_fid=372749]

Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

[smartcode_project:default project_id=145324 project_image_fid=354343]

The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

[smartcode_project:default project_id=145324 project_image_fid=354347]

According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

How Sterling Global designed 623 Collins from Melbourne's history

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

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

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

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

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

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

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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I’ve spent considerable amount of time in the US in the last six months; both as a holiday-renter in Hawaii and as a short-term-stay, ‘business-traveller’ in Los Angeles. During these visits I’ve had some great exposure to the self-managed holiday rental property market not as an investor, but as a tourist renter.
The time spent got me to thinking about self-managed rental investment properties and produced a list of pros and cons if you are considering this leasing strategy for your rental property.
Pros
<ul>
<li>Gross returns can be lucratively higher than residential home property investment.</li>
<li>Property types that can achieve this aren’t just restricted to ‘holiday rentals’, whereby you buy into a scheme such as a time-share condo, or as part of a resort investment, but also well-located, private properties.</li>
<li>You are the ‘direct manager’ of your property, enabling you to save money on management fees. This can create a greater chance of a property being positively geared and returning better revenue.</li>
<li>Online services such as AirBnb and TripAdvisor enable you to affordably find short-term tenants easily and securely. This means that investors could consider coastal properties that are not part of any specific resort complex as potentially high-return short-term-stay, self-managed, investment properties.</li>
</ul>
Cons
<ul>
<li>Though gross returns are higher, sometimes net returns are not as great due to increased management fees eating away the revenue. For some properties the returns might even be less than a traditional domestic investment property, but with more management work (i.e. your spare time) required.</li>
<li>Seasonality. In Australia this is a big deal. Take for example holiday properties in the south or Tasmania. Demand may be great in summer, but those returns achieved in summer may not average out over a financial year to be very good, when accounting for the quiet times during winter.</li>
<li>Running costs. One of the biggest challenges in Australian holiday property is that most properties are part of complexes with extortionately expensive management costs. So, above and beyond the standard strata, council, and water rates you’d need to pay, there are cleaning/housekeeping costs, higher owners strata rates to pay for pools, additional staff, and so on, to be aware of.</li>
<li>Seaside property maintenance. Unlike residential housing on the coast, where the sea air eats away and the pretty paint work yet the property can still be rented as-is, seaside holiday resorts need to look immaculate at all times, to ensure the resort remains desirable for future guests and this comes at a significant cost to owners.</li>
</ul>
Further Considerations
Taking Hawaii as an example/case study; I believe some locations offer solid investment potential for those open to the concept of remote self-management and some different options both in terms of ownership structure and costs, as well as supply and demand. Here’s just a short list of observations I made, through asking some locals and concierge staff some questions:
<blockquote>
Some locations offer solid investment potential for those open to the concept of remote self-management
</blockquote>
Climate
Climate plays a huge part to the overall financial success or failure of a rental property of this type. The beauty of a place like Hawaii is that for almost every month of the year the climate is pretty much the same, year-round. This means that demand for holiday property is consistent all year long, with no real dry-spells; i.e. very low vacancy rates. Australian holiday rental properties in a year-round climate are harder to source.
Demand for the area
With a domestic population of 350 million and growing, Hawaii is highly appealing for domestic US holidaymakers. This is an important area to pause on. Solid domestic tourism participation is important in any country – Australia included – because these holiday makers aren’t affected by currency exchange variations when they travel. This makes travelling in your own backyard constantly feasible.
Australia on the other hand has a small domestic population, making holiday rentals higher risk because of our reliance on international tourists to rent the properties. Our fluctuating currency suddenly becomes an unknown that is difficult to account for in your investment.
Exclusivity:
A place like Hawaii is expensive to fly in to from any location in the world, not just Australia. This isolation mixed with strong desirability creates a near-unique opportunity for Hawaii more-so than Australia to attract only affluent holiday-makers.
With a more affluent audience occupying the properties there is reduced risk of damage to properties and other problems that can occur when a location is not as exclusive. Insurances of course always need to be considered for any property investment; however, policies are often more affordable when an affluent rental tenant occupant (even short term ones) are quoted on.
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cmcevoy-Go82SmsJA9

The pros and cons of self-managed holiday rentals

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Have you noticed how people are generally now acting in a far more positive manner and that's simply because they are starting to feel "wealthy" again.
But you need to look deeper
With share and property prices rising, consumer confidence has finally returned — which was confirmed by the improved retail sales during December and January.
Plus, you saw GDP exceed expectations — by rising 2.8% for the December quarter.
This increased spending is also being supported by high household savings.
A clear indication of renewed confidence
And this has shown now up in spending for entertainment and eating out — which historically, has been recognised as a clear indication of renewed confidence.
New housing approvals have improved by 35% over the past 12 months. And once complete, these homes will also need to be fully furnished — which is great news for all the homemaker centres.
Furthermore, Coles will be investing more than $1 billion to construct 70 new supermarkets, over the next three years.
<blockquote>
All of those workers who contribute to this surge in exports will all need to be housed somewhere.
</blockquote>
In its May Budget, the government intends to curb wasteful recurrent expenditure inherited from Labor. While it also plans to embark upon significant infrastructure projects — to start boosting employment around the country.
A surge in exports
For the first time in most people's memory, Australia will be enjoying a positive balance of trade.
In other words, for the next decade or so, you should be seeing our exports exceeding imports. And this will further help in reducing Australia's overall debt.
Even though the boom in mining expenditure may have come to an end, the resultant export of raw materials will now continue for years to come.
Furthermore, our exports in education, tourism and business services will all grow dramatically — as the global economy improves.
All of those workers who contribute to this surge in exports will all need to be housed somewhere. And that will open up opportunities for new suburban office and warehouse facilities around Australia over the next three to five years.
Further evidence of an underlying strength in the commercial property market is now provided by the latest IPD/Property Council index.
During 2013, you saw investors (both local and overseas) stride out from the shadows of the global financial crisis. And as this graph confirms, every sector has displayed a healthy improvement in selling yields.
Both the US and UK commercial property sectors have responded slightly ahead of Australia, because their labour markets (and therefore demand for space) have been improving at a faster rate.
Savvy investors are already in the market
Investors have already sought out solid opportunities.
Nevertheless, there has been significant (and consistent) Asian money pouring into Australia over the past 12 to 18 months — as investors have already sought out solid opportunities in the $100 million plus bracket.
This has effectively forced local buyers to bid up prices for lower-valued properties — or simply miss out on securing a position, before the expected upsurge gets fully underway.
The effect of this strong activity won't take very long to filter down through to the lower price brackets and then, out into the wider suburban markets around Australia.
Bottom line: They say that no one rings a bell at the bottom of the market. However, what's occurring is probably the closest you'll likely get.
Therefore, observe the signs and make sure you act accordingly if you've been at all hesitant about stepping into the market.
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chrislang-EQKojcgJPV

Commercial property benefiting from economic upturn

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Kerry Packer once said ‘Cash is king’.  That was easy for him to say after Alan Bond had just given him $1 billion.
For the majority of us who do not have the luxury of a Bond we need to invest our money so we can accumulate the cash at some future date.
As property investors begin to return to the market many will be enticed by the lure of cash tax benefits such as depreciation and stamp duty savings.
While these benefits are an important consideration in your overall investment strategy, they should never be the driving factor in asset selection. This is because they are short-term tax benefits that have very little impact on the future performance of the investment.
<blockquote>
Yes it maybe is true that cash is king for those that have it, but for the rest of us the long-term viability of the investment is ‘King’
</blockquote>
Stamp duty savings are a one off benefit at the time of purchasing off the plan. At the same time most of the depreciation allowance an investors receives is used up in the first five to 10 years.
Investors need to be wary that these tax benefits are often used as marketing tools to sell property but because they are only short-term the investor will not be able to use the same marketing tools when it comes time to sell their investment.
When selecting investment property it is important to focus on the long term economic drivers that will underpin its performance and will continue to be there in years to come. These factors include the underlying land value, supply relative to demand and the evolving demographic trends. 
While there is nothing wrong with investing for tax benefits investors need to consider the overall investment. In other words if in the end the investment does not make any money or even worse looses money were the tax benefits alone worthwhile.
My understanding of investing is to invest to make money at some date in the future. The benefits should come at the end not at the start.
Yes it maybe is true that cash is king for those that have it, but for the rest of us the long-term viability of the investment is ‘King’. Everything else is just a bonus.
As property investors return to the market they would be wise not loose sight of that fact.
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marmstrong-sd3emVLPPb

Is cash really 'king'? Knowing if your investment stacks up

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It’s been quite fascinating to follow the Asian buying phenomenon of Australian real estate of late – more particularly how the buying demographics are changing. Most notable the smallest market demographic today in Australian real estate is brand new constructed properties which remain dominated by Asian investors. In recent times we have seen a shift with Asian investors moving into the traditional home market which previously was a no-go market. A reason why would be that this is Australia’s largest property market so it makes sense that now they want to participate in all the available markets.
On a global scale Australia has not really attracted the ultra high net worth individuals (UHNWI) although we are now witnessing this emerging market with the world’s wealthiest fast tracking real estate acquisitions in Australia. Knight Frank 2014 forecasts that 66% of global growth in the numbers of UHNWIs will be from Asia over the next 10 years.
No doubt they would be closely observing that prices have been the strongest in Sydney (up 14% over the past year), Perth (9%), and Melbourne (8%) although it is yet to be ascertained what percentage of these new found gains can be attributed to foreign ownership. Knight Frank Australia’s research director Matt Whitby said there was growing demand from Asian buyers, particularly Chinese, for prestige residential properties in Sydney: “This is driving prices and it is expected Sydney’s prime market growth will continue into 2014, buoyed by low interest rates and steady foreign demand, especially from South-East Asia and China.”
In 2013, over 74% of overseas investment into residential developments in Australia originated from Asia. If one looks at the Forbes billionaires list there are 135 property tycoons in the list who have obviously benefited of late from surging property values around the globe. Even more interesting is that 14 out of the top 20 richest property billionaires hail from Asia. This is further reinforced by recent Foreign Investment Review Board data which shows that Chinese buyers poured $5.9 billion into Australian property last financial year.
Last week in Property Observer Jonathan Chancellor wrote an interesting piece <a href="/news/the-ngs-singapores-richest-family-spend-425-million-on-sydney-trophy-property">The Ngs, Singapore’s richest family, spent $425 million on Sydney trophy property,</a> which again highlights how Sydney in particular is now top of the shopping list for wealthy Asian investors. The sad reality being that with all the buying loopholes currently available in Australia our government has absolutely no idea just how large this buying purge is – well not until 2016 when the next Census of Population and Housing is conducted in Australia.
<a href="https://www.rwm.com.au/files/2014/03/13-03-2014-11-58-11-AM.jpg"><img class="aligncenter size-full wp-image-8465" src="https://www.rwm.com.au/files/2014/03/13-03-2014-11-58-11-AM.jpg" alt="13-03-2014 11-58-11 AM" width="460" height="234"></a>
<a href="https://www.rwm.com.au/files/2014/03/13-03-2014-11-59-51-AM.jpg"><img class="aligncenter size-full wp-image-8466" src="https://www.rwm.com.au/files/2014/03/13-03-2014-11-59-51-AM.jpg" alt="13-03-2014 11-59-51 AM" width="460" height="255"></a>
Interesting that the research into these graphs by Digital Finance Analytics (DFA) found their surveys identified that after 12 months in Australia most are likely to buy in Sydney (47%) or Perth (35%). By extrapolating this data DFA estimates demand for property from migration over the next three years shows an extra 900,000 properties will be needed – of this about 5.6% is driven by net migration. On that basis given past and present construction data I would think we would be lucky to see 300,000 of the required 900,000 new homes built by 2016. On that very basis it would be reasonable to assume that prices more particularly in Sydney will continue to rise for quite some considerable time to come. At some stage down the track governments will be left with no alternative but to play catch – up where the fastest way to do that will be to build highrise developments.
<blockquote>
Negative gearing is now completely out of control to the extent it has the government at a complete loss to understand what is the best approach.
</blockquote>
Unfortunately in Australia today, aside from not having a Housing Minister, there is no strategic housing plan in place so there is absolutely no possibility of these recommended key performance indicators being met. Why should overseas investors be allowed to qualify for first home buyer grants? Then of course we come to negative gearing which is now completely out of control to the extent it has the government at a complete loss to understand what is the best way to bring this back under control.
I’m proud to say that <a href="https://www.rwm.com.au/2014/03/07/the-great-chinese-property-burn/" target="_blank">last week’s post</a> did start many conversations<a href="https://www.rwm.com.au/2014/03/07/the-great-chinese-property-burn/" target="_blank" title="The Great Chinese Property Burn.">.</a> Which is why I believe that Tony Abbott and Joe Hockey will tighten overseas buyers when the May Budget is handed down because nobody can really tell just how powerful this buying dynamic is until many years later.
A Housing Minister and an Australian strategic housingpPlan would be a wonderful start given at present we are catering for parties with absolutely no idea how many will turn up. We all know what happens when that happens, don’t we.
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robertsimeon-hRNTwJyXkQ

The shifting dynamics of the current buyer demographic 

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Over $10 million was spent on real estate every day in Boroondara during 2013.
It takes a few months after the end of the calendar year for a vast majority of property transactions to settle and be finalised.
With final numbers for 2013 now available, a comparison with previous years can now be undertaken.
In 2013 there were 81,590 residential sales in Melbourne and 107,845 in Victoria. Looking at the Melbourne market over the medium term this is a comparatively low level of sales. Since the year 2000, nine years have seen a higher level of sales with a peak in 2007 with 105,194 sales.
Thankfully, a combination of more confident consumers and record low interest rates has been the catalyst for the level of sales in 2013 rising above the two preceding years of 77,867, and 73,459 respectively.
It is important to note that the volume of transactions has a direct impact on the health of the Victorian government budget as a significant portion of its income is derived from stamp duty as well as the industries that supply and support the housing sector, real estate, building and ancillary services.
On a more local basis, the highest number of sales took place in the city’s growth areas with the highest levels of the spending taking place in the inner east.
<blockquote>
The highest number of sales took place in Melbourne's growth areas with the highest levels of the spending taking place in the inner east.
</blockquote>
Across the state’s municipalities, the highest number of total transactions took place in Casey where 4,130 sales were recorded equating to around 11 sales every day. Similar numbers were recorded in the Mornington Peninsula with inner city locations, Melbourne and Boroondara following.
The largest volume of sales in financial terms was recorded in Boroondara where $3.97 billion was spent on residential real estate, or just over $10 million every day.
At the other end of the scale, Nillumbik recorded the lowest number of sales, at 946 and the lowest in financial terms at $507 million.
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rlarocca-zWhvjay44N

$10 million spent on property every single day in Boroondara

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Five years ago, 30% of new dwellings constructed were units and townhouses. Since 2009, the market-share of attached dwellings has risen steadily, reaching 39% last year.
And the latest building approval figures suggest units now comprise 43% of new dwellings.
According to research from Bankwest, demand for medium-density housing has reached the highest level on record.
The Bankwest Housing Density Report revealed that 43% of new home approvals are medium-density dwellings. This is up from the 39% national average in the previous year.
Not surprisingly, capital cities account for 87% of medium-density approvals in the past 12 months. In five cities, units and townhouses comprised more than half of total dwelling approvals – including 68% in Sydney, Canberra and Darwin, as well as 55% in Melbourne and 53% in Brisbane.
Partly this is about affordability. In Sydney, the median unit price is $221,000 less than the median house price. In Melbourne the difference is $138,000, while in Darwin it’s $165,000.
But it’s more to do with lifestyle choices. Busy lives and the value people place on their leisure time points many buyers to a life-maintenance dwelling that doesn’t have gardens to weed and lawns to mow.
For those who want to be close to the inner city at a reasonable price, an apartment is the favoured option.
But buyers need to be careful. Several of our inner-city unit markets are over-supplied and it’s likely to get worse.
<blockquote>
But buyers need to be careful. Several of our inner-city unit markets are over-supplied and it’s likely to get worse.
</blockquote>
Melbourne already has huge vacancies (up to 10% in some near-city markets) and, according to PRDnationwide research, there are 88 large-scale unit projects under way or proposed.
Brisbane has high vacancies (6% in the CBD and approaching those levels in several inner-city suburbs) and has 69 large unit developments coming up. Perth has high vacancies as well, though the number of new projects in the pipeline is relatively small, with 13 new ones identified by PRDnationwide.
Sydney, to date, has not developed an over-supply and there are relatively few projects in the pipeline: 27 new ones under way or proposed.
It’s in Sydney that the trend towards medium-density living is most noticeable. Several of Sydney’s growth markets are apartment markets, including the inner-city areas Chippendale, Darlinghurst and Woolloomooloo - and the City of Canterbury, which includes suburbs such as Campsie, Lakemba and Roselands, where units are affordable.
Rising demand for apartments as a dwelling choice has also challenged the old paradigm that houses on land show better capital growth than units. Apartment markets are increasingly recording growth rates comparable to, and in some cases better than, houses.
But the surplus syndrome means buyers need to be choosy and do plenty of research into vacancy rates and building approval levels before committing.
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terryryder-YECXbqmri2

Units continue to challenge houses as the dwelling of choice

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The north shore commercial property market in Sydney is expected to be an investor favourite this year after stock shortages in 2013 and rising CBD prices, according to CBRE.
CBRE director, capital markets, institutional investments, Simon Kasprowicz, said that transactions would be strong this year, with strength being recorded in buyer enquiry levels.
Kasprowicz pointed to a ‘bottleneck’ of capital at the end of 2013, which he expects to translate into activity across the market.
“We expect to see further strong sales in 2014 on the back of some exceptional results in 2013 for A-Grade stock such as the transaction of Northpoint, 177 Pacific Highway and 168 Walker Street for $83.75 million in North Sydney,” he said.
Yields have, however, been compressing as a result of stock shortages and increased interest.
“The continuation of strong but scarce sales towards the end of 2013, coupled with higher levels of interest from buyers both established and new, is providing owners the opportunity to exit the market and capitalise on yield compressions,” he said.
While there are buyers across price ranges, there are three distinct groups.
1)      A-Grade assets with long Weight Average Lease Expiries and strong covenants
2)      Value-add opportunities with leasing risks and/or repositioning opportunities
3)      Residential development or redevelopment sites
 “In particular, there is strong overseas interest in the residential and redevelopment market, with these groups looking to convert commercial property to residential – further adding to the increased demand for office assets through the reduction of available fringe office space,” he said.
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jduke-EHk3XBmHkn

Commercial north Sydney stock to be investor favourite, even as yields soften

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When looking for your next property acquisition, it can be easy to get swept away in the romance of it all – even the most savvy investor has been known to crumble at a walk in robe with ensuite or herringbone parquetry floors.
But as every expert will tell you, when it comes to purchasing for investment, it’s all about the numbers.
Wilson Property Agent’s principal and director Adrian Wilson advocates considering a property’s per square metre value as a way of looking past the fancy trimmings and getting to the property’s true investment potential.
“While location and magnificent views are an important factor to consider when purchasing a
 property, there is also the consideration of dollars per square metre when searching for the right place,” said Wilson.
“One of the best acquisitions we have available for a discerning opportunist is a penthouse property located in <a href="https://www.realestate.com.au/property-apartment-nsw-sydney-116199963" target="_blank">‘The Bond’ on Hickson Road</a>, occupying some 539 square metres and listed for auction in the mid 3 millions.”
<img src="/images/image2.jpg" width="460" height="345">
“The value for money on this property is exceptional when you conduct a property comparison and calculate the dollars per square metre,” Wilson said. At a listing price of $3-3.5 million, the Hickson Road apartment’s value equates to around $7000 square metre.
“I have been unable to locate any comparable sales data that supports a dollar per square metre rate at less than $10,000 to $12,000 per square metre for this property, putting its worth at upward of $5.5 million – a rare opportunity for a high end purchase.”
The Hickson Road penthouse is opposite the <a href="/expert-insights/buying/barangaroos-first-publicly-advertised-property-sells-for-2-2-million-as-market-heats-up">Barangaroo development</a>, with views north of the headland park and out towards Goat Island on Sydney Harbour. At over $6 billion, Wilson says that Barangaroo is likely to be the largest infrastructure project Sydney will ever see.
According to Tolga Ozer, sales director at Wilson Property Agents, a recent sale he conducted in the Barangaroo development highlights the value of considering a property’s dollar per square metre value. Ozer sold and exchanged a two bedroom apartment in Barangaroo’s Alexander building for $2.2 million, directly across the road from the Hickson Street penthouse.
“This two bedroom apartment in the Alexander building is circa 113 square metres on level six, plus one car space and is due for completion in 2015,” said Ozer. He compares his recent sale with the penthouse on Hickson Street.
“When you compare a mid-level two-bedroom property, which achieved $19,469 per square metre against a luxury 539 square metre, four bedroom penthouse on Hickson Road, with three car spaces, going for around the $7000 per square metre mark, the opportunity and rarity of this investment is really put into perspective.”
Next time you’re attempting to compare your potential investment to similar sales, consider the dollar value per square metre metric. It can also be used to calculate a ceiling on what you’re willing to pay for your investment.
Other top tips for recognising a property’s true value, from the experts:
 
<ol>
<li>
<a href="/expert-insights/buying/a-quality-property-investment-is-not-dictated-by-prestige-or-price-but-by-growth-and-returns">Don't confuse "expensive" with "high quality"</a>. Capital growth potential is what counts.</li>
<li>
<a href="/news/vic/process-beats-intuition-when-buying-property-in-wake-of-autumn-auction-anxiety-mal-james">Follow a process, not your intuition</a>. For Mal James, the process is this: Clarity, assess-value, negotiate.</li>
<li>
<a href="/expert-insights/investing/a-couple-of-classic-first-time-investor-mistakes">Living in an area doesn't mean you know it's investment potential</a>. Familiarise yourself with the figures.</li>
</ol>
 
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jrichardson-uRX5hFdKfN

How to look beyond the surface to recognise a good investment opportunity

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For the first time in 35 years, a Hamilton Hill home in Brisbane is being offered up for auction this week, having last sold for $60,000 in 1979.
The property, <a href="https://www.eplace.com.au/property.cfm?propertyID=2536483&amp;realestate=24_Hillside_Crescent_Hamilton_QLD_4007" target="_blank">24 Hillside Crescent</a>, sits on 506 square metres with no sales prior to its last sale. The house, built in the mid-to-late 1930s by the Queensland timber merchant W.S. Brett was designed for the merchant himself. At the time, it was covered by The Courier-Mail as a significant property.
The three-bedroom, two-bathroom 80 year old home retains a number of its historical features, including leadlight awning doors, polished cedar timber floors and high decorative ceilings.
Marketing the home is Sherrie Storor of Place, who said that this was a rare opportunity.
“This house occupies an elevated position on Hamilton Hill and has a wide frontage with panoramic sweeps down both reaches of the Brisbane River and onto the city skyline,” said Storor.
“The home was designed to co-exist with its amazing position, with the floor plan oriented to take full advantage of the amazing Brisbane scenery from nearly every room.”
It has formal and informal living areas, patios, an in-ground Jacuzzi and a terrace.
It is looking for buyers who are open to restoring the home, with renovations required on the home.
“There is ample scope to renovate this home and restore its historic beauty while adding instant value,” she said.
There has already been substantial interest from buyers, and the expectation is for some fierce bidding later on today.
“We’re confident the property will sell – in fact, we are under instructions from the vendor that the property must be sold,” she said.
The auction will take place on Thursday at 6.30pm at the Place head office in East Brisbane.
RP Data's 'land value' section from June last year puts the price at $1,150,000.
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Historic Brisbane, Hamilton Hill home up for auction

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Many tenants and landlords choose to maintain a degree of respectful distance. Not Michael Bloxsom, who agreed to help out his landlord – who just happened to be a street level drug dealer.
The 36 year old Bloxsom, from Rockhampton, was arrested when his landlord, Stephen Dobbs, was targeted by the police for drug trafficking.
<a href="https://www.themorningbulletin.com.au/news/cannabis-by-phone-landlord-district-court-/2193320/" target="_blank">The Mornington Bulletin</a> reports that Dobbs was sentenced to four years and 10 months jail on drug trafficking charges on December 18 last year, to be suspended after eight months.
Bloxsom pleaded guilty to one count of trafficking cannabis in the Rockhampton District Court. The court heard that Bloxsom was involved in about 18 supplies of values between $360 and $1,800 as part of Dobbs’s seven month long business. According to Crown prosecutor Susan Hedge, Bloxsom’s transactions accounted for less than 1.6% of total turnover.
Bloxsom didn’t get paid for his work, but did receive some cannabis in exchange for his assistance.
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