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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Chinese investors were the largest source of foreign investment in Australian property in the 2012-13 financial year, according to the latest figures from the Foreign Investment Review Board (FIRB).
The FIRB's annual report reveals $5.9 billion of purchases came from China, a 44% annual increase that enabled it to eclipse Canada's $4.9 billion and the USA at $4.4 billion.
<img src="/images/stories/2014/03/03/insights-march-3-small.gif" alt="insights-march-3-small" width="470" height="298">
However total foreign investment in Australian real estate actually fell over the recent years from $59.1 billion to $51.9 billion.
It accompanied an overall decrease in the value of total foreign investment which fell to $135.7 billion from $170.7 billion seemingly as a consequence of the turning of the mining and resources construction boom.
The <a href="https://www.firb.gov.au/content/default.asp" target="_blank">Foreign Investment Review Board</a> gave approval to 11,668 purchases of Australian residential properties by foreigners last financial year, up 19% on the previous year.
<img src="/images/stories/2014/03/03/insights-march-3-two--small.gif" alt="insights-march-3-two--small" width="470" height="215">
According to FIRB’s annual report released last Friday, a total of $17 billion in foreign cash was injected into Australian residential last financial year.
A further $35 billion into commercial real estate took the total to 12,025 foreign purchases.
Of these, 4,573 were in Victoria, 3,580 were in New South Wales, 1,734 in Queensland, 1,267 in Western Australia and 567 in South Australia.
Some 10,458 of the approvals were for property sold at $1 million or less.
Then 1793 approvals between $1 million and $50 million.
<img src="/images/stories/2014/03/03/insights-march-3-three.gif" alt="insights-march-3-three" width="470" height="258">
There were 396 approvals at $50 million and higher, which while there is never any official paperwork from the highly secretive FIRB, would include just the one residential house purchase, <a href="https://www.propertyobserver.com.au/news/the-altona-aftermath-buyers-baulking-at-the-ambitious-asking-prices-sydney-s-top-20-house-sales-in-2013-he-said/she-said/2014011667215" target="_blank">the Point Piper harbourfront, Altona which sold at $52 million</a>, but perhaps not the beacon it's made out to be.
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No divestiture orders were made, continuing the trend set in 2010-2011 and 2011-2012. I am aware that there had been earlier orders where the buyers failed to undertake its development undertakings.
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Temporary residents allowed to buy one property to live in numbered 5,091 last financial year.
A further 4499 approvals were granted for foreign individuals to purchase a new dwelling.
There were 50 approvals for developers seeking to sell up to 100 percent of their off the plan developments to foreigners.
The chief economist at HSBC Australia, Paul Bloxham, told News Ltd papers the increase in foreign buyers was contributing to house price pain.
But he quickly acknowledged the biggest factor driving up house prices had been lower interest rates.
"But it’s certainly a contributing factor,” he said.
“In certain market segments you’re certainly seeing an impact. Off the plan apartments are likely to be an area where prices are being more driven by foreign buyers.”
While growing in number, foreign purchases only represented about two or three per cent of total housing turnover, according to Mr Bloxham.
<a href="/news">A recent survey by HSBC Bank of affluent Asians</a> across seven countries in the region, including mainland China, found Australia was among their top investment destinations, but that the Chinese did not actually top the intended buyers list.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
                       
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jchancellor-FAypfDUnLy

No divestiture orders as Chinese buyers top the 12,025 foreign investors: FIRB

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As many property investors know, the city you currently call home isn’t always the best place to invest.

You’ve done your research – picked out the potential growth areas, drawn up your budget and growth expectations, and are now preparing to invest interstate. But there are many steps to the buying process, and they can differ from state to state. Here are some key differences in purchasing properties interstate.

Inspecting a property

Assuming that you’ve picked out the area and property type you want to purchase, the next step is inspecting potential properties. Victorian investors will be aware of Section 32, a mandatory vendor’s statement which provides buyers with a range of information about the property before the sale.

The Section 32 document is prepared by a lawyer or by the vendor under legal instruction – and if the vendor knowingly provides any false information, they have committed a criminal offence, and face fines.

The document will include any mortgages or debts charged against the land, planning information, disclosure of services connected to the property and any registered building work that has been carried out in the last 10 years. Registered building works will be covered under warranty for 10 years, even if the property has changed hands multiple times.

Section 32 is generally considered the most comprehensive vendor disclosure statement in the country, and must be provided before the auction or before a contract is signed in a private sale.

In New South Wales, sellers are required to provide Schedule 1 Prescribed Documents, but these generally only include mortgages on the property, deeds and restrictions on the use of land. NSW Fair Trading recommends that buyers carry out an independent pre-purchase inspection report.

Your inspection report should be carried out by a licensed builder, surveyor or architect – and make sure they have professional indemnity cover, in case you want to seek compensation for any errors they make. You’ll have to weather the cost of the report yourself, which will vary depending on the consultant and the size, age and condition of the property.

The report won’t cover information on any hidden or structural problems with the property, as it’s generally just a visual assessment. It also won’t cover electrical wiring, plumbing or gasfitting, or fireplaces and chimneys. If you are concerned about any aspect of the property in particular, you should engage a specialised inspector before purchasing.

Sellers in South Australia are required to provide a Form 1 disclosure statement to the purchaser, through the seller’s real estate agent. The Form 1 must be available to buyers before the auction date. If a property is being sold through a private sale, the Form 1 must be provided at least 10 days prior to the settlement date. The provision of the Form 1 also affects a buyer’s cooling off period. A Form 1 generally covers similar information to NSW’s Schedule 1 Prescribed Documents, so an independent inspection report is recommended.

Queensland currently doesn’t have compulsory disclosure statement for all residential properties. Body corporates should provide information for townhouses, apartments and units. Again, the Queensland Office of Fair Trading advises buyers to carry out independent inspections. The same goes for buyers looking to invest Tasmania, or in the Northern Territory after vendor disclosure legislation was dumped in 2012. Sellers in Western Australia aren’t required to provide a disclosure statement to any prospective buyers, but should prepare a Seller’s Disclosure Statement for their agent.

When selling property in the ACT, vendors are required to provide documents prior to sale including an assessment of the physical condition of the property, an asbestos assessment report, and any restrictions to development on the land. ACT vendors are also required to provide an energy efficiency rating statement, and a pest inspection report (neither of which are required in a Section 32 document).

Cooling off period

Not all buyers have the luxury of a cooling off period, with legislation changing from state to state. During a cooling off period, a buyer can change their mind about purchasing a property and only face a small fee (0.25% of the purchase price or less) so long as they provide written notice to the vendor or their agent.

In Victoria, there is no cooling off period for properties purchased at auction. There’s a three day cooling off period for private sales of residential properties of less than 20 hectares, but this is waived if the property is sold three days before or after a scheduled auction. The cooling off period is also waived if a buyer is represented by an agent.

The ACT, NSW and Queensland all have five day cooling off periods for residential property purchases at private sales, but not for auction sales. Generally the cooling off period begins from the day that the buyer or their agent receives a copy of the sales contract that has been signed by both the buyer and the seller.

South Australian property sales come with a cooling off period of two days. If a Form 1 is provided before the sale, then the cooling off period commences on the date the contract is signed. If the Form 1 is served after the contract is signed, the cooling off period begins on the day the form is served.

Investors buying in Western Australia and Tasmania aren’t allowed cooling off periods.

Stamp duty or land transfer tax

Don’t forget that stamp duty or land transfer taxes change from state to state, and depend your property’s intended purpose. Each state’s revenue office website has a stamp duty calculator that can help you estimate how much you’ll be charged.

Who can help?

Purchasing a property interstate can be a difficult task, especially if you’re not an experienced investor and you’re looking to invest in a state you haven’t lived in before. The best way to ensure you have all the aspects of your investment covered is to engage a local conveyancer.

A specialist lawyer, your conveyancer can prepare and lodge your legal documents, such as your contract of sale. They can also calculate your expenses, put your deposit in a trust account, and research the property for you. A conveyancer should also handle your property’s settlement, including liaising with your financial institution. As always, seek out a reputable conveyancer, and make sure their firm is not also representing the vendor of the property you’re hoping to purchase.

Purchasing interstate is a great way to spread risk across your property’s portfolio or capitalise on growth areas – just make sure you do your homework.

<h2>Recently listed properties:</h2>

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Buying interstate? The information you need to know

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Australia could be facing its biggest investment slump years, with new figures released from the Australian Bureau of Statistics data released yesterday.
The quarterly survey of business investment intentions shows spending is projected to drop 17.4% from $167 billion to $125 billion by the end of June 2015.
According to the report, the main reason for such a sharp decline is the mining industry. In the 2014-15 financial year, investment in mining is expected to drop by 25.2%. In other words, from $102 billion to $74 billion in the space of 12 months.
Meanwhile, manufacturers are expected to invest almost 20% less than expected, dropping from $8.9 million to $6.3 million in the ABS estimates.
AMP Capital chief economist Shane Oliver says the figures are worse than expected.
“The investment intentions for next financial year are pretty terrible,” he told SmartCompany.
“It is a poor outlook for investment and one of the biggest slumps in a long, long time. The mining boom is coming to an end and now investment is sliding down to where it used to be five or six years ago.”
JP Morgan economist Tom Kennedy agrees.
“Yesterday’s numbers were pretty disappointing in general,” he says. “The more important thing is the forward intentions were pretty weak also and largely located in the resource sector. Worryingly there was no sign of lift in the manufacturing or select industry groups.”
However, Oliver says there is “a light at the end of the tunnel” thanks to industries outside mining and manufacturing.
While investment in industries outside the resource sector is expected to drop from $55.7 million to $44.4 million, the latter figure is 0.4% higher than the first estimate for the 2013-2014 period.
“It is not all doom and gloom out there,” says Oliver. “The investment side was always a big worry, but if you look at the broader economy, people are buying homes again and there could be an upwards swing in housing construction.”
Oliver says the retail sector did better than expected late last year and investment in general could pick up outside of the mining sector later this year.
“Even though we’re getting all these negative comments regarding employment there are some positive signs outside these key areas of manufacturing and mining.”
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
             
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Investment set to slump amid mining decline, but some industries are looking up

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Hi Margaret,
I got a question regarding buying off the plan in Bungarribee region close to <a target="_blank" href="/news">Doonside</a> in NSW.
The off the plan property will cost somewhere between $550,000 to $600,000 after construction, whereas the ready to move houses in the Doonside region are in the range of $480,000 to $500,000, albiet without the first home buyer grant and without stamp duty exemption.
Is it an attractive buy from a first home buyer perspective? Does it makes sense to buy property which is valued at least $50,000 to $60,000 higher than the ready to move, relatively new houses.
And what sort of growth is expected in Doonside and the surrouding region? Additional things I am considering are affordability, community, proximity to transport, schooling and resale value after five to seven years.
Regards,
Rajesh
Margaret's answer on the next page. Please click below.
                
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Hi Rajesh,
When off the plan marketing was first established, it was a great chance for buyers to obtain under- market value properties. Developers needed to get a proportion of pre-sales in order to qualify for development finance and so they offered up to 25% of the development as pre sales, usually at the prices of the day, or less. 
Lucky buyers committed to buy and years later, when finally finished, often found they were paying a lower price for property which due to market movements was now worth more.  The developer got his finance as the bank happily provided the money on the basis of the pre-sales.
These days developers are much greedier, trying to sell entire developments off the plan at tomorrow’s prices.  The entire risk sits with the buyer who is fully exposed to many drawbacks.
These include:
<ul>
<li>
Their commitment to the sale can often mean that, while they wait for completion, a bank won’t lend to them for additional purchases, as this off the plan purchase is a commitment with no income as yet.
</li>
<li>
The market may plateau or even fall after the commitment is made, making the property worth less at settlement than is being paid (and this is actually very common)
</li>
<li>
If the property is worth more than is being paid, there is often a clause deep in the contract allowing the developer to pull out for any reason, but no such clause for the buyer, whose commitment is irreversible
</li>
<li>
On delivery, the property is often quite different in appearance than it appeared in the brochures – developers can make changes of up to 10% without voiding the contract.  You cannot be assured of exactly what you are getting.
</li>
<li>
Though the lender may approve a loan to buy the property, on completion of the building they will reassess the borrower and value the property.  If the buyer’s financial circumstances have changed they may no longer qualify for the loan, and if the valuation is less than purchase price the buyer may not be able to borrow enough to proceed.  They will not, however, be able to get out of the contact and will be sued by the developer to complete.
</li>
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There are many more drawbacks than this, and a few positives, but as far as investing goes, off the plan can be a poor choice.
While I expect that Doonside will grow at slightly above average, you’ve already established that these off the plan properties are well above current market value, up to 25%.  The market will need to grow by at last that amount in the coming two to three years for you to at least be even, and even then it will be a wasted exercise, as you are tying your money up and there should be some upside to that.
If you would like to buy in Doonside, check out what else is available first in an already established, possibly near new property.  That way, by the time these off the plan properties are completed, you may well have a few existing properties already under your belt and growing!
Kind regards,
Margaret
Margaret Lomas is a best-selling author and writes and hosts the popular 'Property Success With Margaret Lomas' and heads up the panel on 'Your Money, Your Call', both on Sky News.
She is the founder of <a rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? Ask Margaret!
                
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I'm a first home buyer, is off the plan a good investment? Ask Margaret

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If you’re as obsessed with property as I am you might have noticed the steady stream of media stories announcing with incredulous fanfare another premium listing with double digit price tags.  
Looking at the pictures is probably as close as most of us can get to an episode of Lifestyles of the Rich and Famous (does anyone else remember that show?). But aside from an opportunity to have a sneak peak at what $20, $30 or $50 million might buy you, are there any similarities between that premium market and the ‘everyday’ property market?
Two things:
One. Price it right. Even at the very pointy end of the market buyers will not overpay. Whilst you might think someone able to drop $30 million on a property would probably be prepared to pay $40 million, you’d be wrong. At the high end of the market, and at the low end, and at all points in the middle buyers will pay only what they consider to be the realistic value of a property. And all buyers will always be looking to make a deal!
Two. You’re not just selling a property. In real estate today you’re selling a lifestyle so the little extras can make a big difference and your marketing photos are vital. Those with big budgets will be looking for a wine cellar, parking for several cars and perhaps accommodation for staff. Families with more modest amounts to spend will want off street parking, a playground nearby and a great laundry to store wet clothes and muddy boots. 
Both are simple, relatively obvious points, but they matter. They are as important to remember for vendors hoping for a $50 million return as those hoping for $500,000.
Records
I’ve been watching the Winter Olympics. Lots of sport I’ve never heard of, rules I have no hope of understanding but skills I find amazing. And then there are the records! There seem to be records for everything and anything these days, real estate included.
At the Winter Olympics there have been record times in speed skating, scores in the ice dancing, and even an age record with the oldest ever winner of a Gold Medal awarded this week. In the property market the records are clearance rates, interest rates, listing rates and prices.
It makes me wonder. Does the focus on the pursuit and glory of a 'record' dilute the value of achievements where a record is not set or broken?
In the school playground there has been a backlash against the practice of ‘every child gets a ribbon’, claiming it devalues the lessons of competition and creates an unrealistic expectation that everyone is a winner.
I think property records can be interesting, but they're really quite irrelevant because it is true that not everyone is a winner. 
Think about it for a moment. A record price achieved in a particular street or suburb does not automatically mean the same result can be expected for every property. It is an indication of what could be achieved but it can't be taken as automatic.
Just like Usain Bolt breaking the world record in the 100 metres doesn't make the rest of us faster!
Ewan Morton is managing director of the Sydney based <a target="_blank" href="https://www.mortonandmorton.com.au/" rel="nofollow">Morton &amp; Morton</a>.
            
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What does the top end of the market have to do with the rest of us?

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In the dress circle of Bellevue Hill, Sydney’s most prestigious non-waterfront suburb, two magnificent heritage homes are on the market. Known as Rovello and Barford, both residences are designed by Wilson, Neave and Berry, the leading architectural firm of the 1920s and 1930s era.
With double digit millions price tags, these grand residences have fascinating histories linked to prominent Australian families. Their hertitage status doesn't preclude further contemporary living renovations.
Our property contrarians, Jonathan Chancellor and Margie Blok, discuss their pick of the pair.
HE SAID:<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/2013/09/06/jc-silhouette-5.jpg" alt="jc-silhouette-5" width="100" height="150" style="float: right;">
Rovello is my choice. The superbly proportioned circa 1937 two-storey residence is described by the Australian Heritage Commission as "probably Wilson, Neave and Berry’s finest extant piece of architecture” – and I agree.
A few years younger than Barford, Rovello is classified by the National Trust as an item of heritage significance.
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Set on the highest point of <a href="/news">Bellevue Hill</a> and facing north over Sydney Harbour, Rovello was built for Dr Vincent Flynn and wife, Jean Flynn, a great-niece of George Adams, the founder of Tattersall’s Sweepstake. A trust fund established some years after the 1881 introduction of Tattersall’s sweepstake generated vast wealth for the Adams family.
Flynn chose a site on Ginahgulla Road, considered one of the suburb’s finest streets, as the location for her new home. And then she commissioned Wilson, Neave and Berry to design the house in the colonial Georgian revival style favoured by Hardy Wilson who was the company’s leading architect. Apparently, Flynn requested the architects to design the house to somewhat resemble Barford. The old timers tell me it was Neave who was mostly responsible for it.
Next door, built in the same year, is a house designed by Professor Leslie Wilkinson for the Hordern family. It was therefore among the new crop of homes on the hill taken up by the pioneers at Leura, Rona, Trahlee and Carlyeon. On the other side is a house designed by Espie Dodds for the Alberts.
Rovello remained in the hands of Flynn’s family until it was bought by the property developer John Lyons who sold it in the mid-1980s to the merchant banker James Yonge for $3.45 million in 1986. Yonge sold it for $8.24 million in 1991 through eastern suburbs estate agent Jane Ashton to the current owners, Michael Darling and his wife Manuela Darling-Gansser.
{qtube vid:=g4O35hoeyQw}
Centred around a courtyard modelled on the colonnaded Roman atriums, the house stands on more than 2,800 square metres of grounds with a tennis court, swimming pool, sweeping lawns and sun-drenched terraces. From the property are panoramic northerly views to Manly and The Heads, as well as westerly views to the Harbour Bridge. I am told the main sitting room has comfortably accommodated 70 people at cocktail parties and with the use of the adjoining library that number rises to over 100.
Echoing its Mediterranean name, the traditional Italian-style villa has two wings enclosing a large pergola and an enclosed loggia.  Featuring wide windows framed with elegant external shutters, Rovello has an impressive two-storey entrance hall and 675 square metres of living space including stately living, dining and entertaining areas opening onto the north-facing terrace. Howard Tanner oversaw its last renovation.
Featuring a gracious provincial-style marble kitchen, the five bedroom, five bathroom residence also has a self-contained apartments, a state of the art pilates studio and a steam room. The  exercise area and steam room was added in the last five years designed by architect Nick Tobias.
Not surprisingly, the cooking and food storage areas are a feature of the house as Manuela is a food author.
I love the unusual feature on a ground floor flower room - which was apparently a fashionable inclusion of the time.
Also reflecting Mediterranean style are the gardens, which were re-designed in 2006 by leading landscape architect, Myles Baldwin. Featuring old stone walls, a parterre garden and a vegetable garden, the grounds have wide terraces leading to sweeping lawns and the tennis court. I am told the garden now follows the traditional pattern for major Italian houses with a sequence of terraces - the main living terrace outside the house, the parterre below it, the water garden (in this case a swimming pool) and then the park.
With price expectations around $20 million, <a href="https://www.realestate.com.au/property-house-nsw-bellevue+hill-116195747" target="_blank">Rovello is for sale</a> by expressions of interest closing March 28 through Ray White Double Bay agents, Elliott Placks and Ashley Bierman.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/2013/09/06/mb-silhouette-4.jpg" alt="mb-silhouette-4" width="100" height="150" style="float: left;">SHE SAID:
It’s Barford for me - but I think the $60 million price hopes are extremely ambitious. The agents say the interest has already been $50 million plus in the first week of local marketing.
On the Register of the National Estate, <a href="https://www.ballardproperty.com.au/Buying/Search/residentialresult/residentialdetail.aspx?id=WOOLLAHRA%202012236&amp;wlid=a377ef22-7919-4fbc-8bd3-3783704585b6" target="_blank">Barford</a> is the grand dame of Bellevue Hill.
Owned by businessman Ian Joye, the Barford estate occupies a 5,527 square metres holding with a front entrance on Victoria Road, and rear access from Rupertswood Avenue.
{yoogallery src=[images/stories/2014/02/28/bell2]}
Named after a village beside the River Leam in Warwickshire, England, Barford was built in 1931 for Sir Warwick Fairfax, shortly after his marriage to his first wife Marcie Elizabeth ('Betty') Wilson. It was the childhood home of their children, James Fairfax and Caroline Simpson.
The elegantly proportioned two-storey house is strongly influenced by the Georgian Revival style of the 1920s. Its design shows the influence of William Hardy Wilson, a partner of Wilson, Neave and Berry who retired from the architectural firm in 1927.
The house is built on an L-shaped plan with a sandstone columned courtyard and fountain. The entrance, which is central to the almost symmetrical main elevation, is elaborately highlighted with Tuscan columns and front door with sidelights and a large fanlight. A side entrance has a porte cochere.
Sir Warwick Fairfax resided at Barford until the late 1960s when he sold the property to former Melbourne car salesman, Emmanuel Margolin. In 1980 Margolin sold it for just under $2 million to property traders, Maurice Bernhardt (a former Double Bay estate agent) and Max Franks.
During the early 1980s Bernhardt and Franks sold Barford to Barry and Wendy Loiterton who operated their tourist-marketing business, Leisuremark, from the property. The Loitertons sold it in late 1986 for $9,875,000 to Ian Joye. The deal made headline news in January 1987 for it was near enough Sydney’s first $10 million sale.
Entered through a a timber-panelled foyer, the elegantly proportioned two storey Georgian style mansion has seven bedrooms, seven bathrooms, elegant living and dining rooms (both formal and casual), a library, cinema, billiard room, white-marble kitchen and a caterer's kitchen featuring a walk-in cool room.
With panoramic district views to the harbour, the estate’s expansive grounds have a tennis court, 20-metre heated swimming pool, separate three-bedroom cottage and two one-bedroom apartments.
Long a preferred rental property for celebrities seeking a luxury mansion with exceptional privacy, Barford was rented to actor Will Smith in 2001. He reportedly paid $4,000 a week during the time he was here to support his wife Jada Pinkett-Smith, who was in Sydney to work on the movie The Matrix Reloaded.
Pop star Bono was among the more recent renters – in 2010 he reputedly paid the advertised price of $40,000 a week for the Bellevue Hill property.
Barford is for sale through Ryan Watsford of Ballard Property, and Christopher Joye, a son of Ian Joye, is understood to be controlling the sale on behalf of his father.
Ryan Watsford even describes the property as like Buckingham Palace, which is a bit of a stretch.
<a href="mailto:news@propertyoberver.com.au" target="_blank">news@propertyoberver.com.au</a>
                     
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Rovello v Barford, showdown of 1930s Wilson, Neave and Berry-designed Bellevue Hill trophy homes

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The famed professor and statistician W. Edwards Deming once said: “In God we trust. All others must bring data”. For anybody interested in real estate, from the property professional to the armchair investor, this maxim is more relevant today than it has ever been.
Thanks to mobile and online technology, the average Australian is overwhelmed with access to a huge realm of data – from macro-economic trends such as interest rate changes to the in-depth granular property statistics on transactions and suburb details. There really is a smorgasbord of information at our fingertips.
The information is an invaluable tool. Data can help inform people’s property buying decisions and it can make us feel confident about –those decisions, by providing us with a guide to what will occur in the future.
But the important thing for us to realise is that not all information is created equally, particularly the statistics.
There are various sources of property information in the market. These include sales and listing records, auction clearance rates, various statistical measures from parties such as the Australian Bureau of Statistics, and many other non-government organisations. While some of this data is open and public, much is not.  Taken together however, this data is extremely valuable, because of its multitude of applications:
<ul>
<li>
Financial organisations use to it determine valuations for mortgages;
</li>
<li>
Investors and buyers can use data to pinpoint potential areas for investment;
</li>
<li>
The Reserve Bank and Federal Treasury uses it to identify when markets are too hot and need cooling or stimulating;
</li>
<li>
State governments use it to help predict their annual revenue as a large percentage comes from duties on property.
</li>
</ul>
For the consumer or property professional, there are a host of third party sources that capture this data and present it in various forms. But not every source presents the same information.
Broadly, the challenges facing property information providers can be broken down into two areas: the accuracy and method for collecting the source data and the application and analysis of the data to provide real insight.
When it comes down to the first challenge – the freely available public data is obviously the first go-to source. It then comes down to  enriching it that with deeper information, and this can be something as simple as having a team picking up the phone to real estate agents to find out who sold what. Obviously a lot of this process is automated, and will vary by provider. For example, sources closely aligned with media companies will use that media company’s listing data as a primary source.
However, while having accurate data is clearly vital, information without context is useless. 
That, in essence is the challenge for all property data companies. It has moved on from who’s data is more accurate and who has more records, to how it can be used to provide value and confidence to the person on the street. It’s not just about finding the data, it’s about turning it into intelligence and bringing it to the right people, in the right way.
John Edwards is consulting analyst for <a target="_blank" href="https://www.onthehouse.com.au/" rel="nofollow">Onthehouse.com.au</a> and founder of <a target="_blank" href="https://www.residex.com.au/" rel="nofollow">Residex</a>.
Onthehouse.com.au has launched a new Investor Centre, a free source of property information. 
             
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In data we trust: How data informs smart property buying decisions

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Record sums are being invested in bricks and mortar – but novice investors often fail to fully realise the necessity of managing risk.
Failure to manage risk is one of the key reasons so many property investors sell within a year, frequently at a loss after transaction costs are taken into account.
There are risks at every point on the property journey, from an initial decision to invest, to property selection, financing and tenanting.
Here are a number of risks both novice and experienced investors should be aware of, maximising their chances of a successful investment.
<img style="float: left;" alt="number-1" height="30" width="20" src="/images/stories/2014/02/27/numb/number-1.jpg">Opportunity cost. Property investment can be financially rewarding but it’s usually negatively geared, at least to begin with, reducing your opportunity to invest in other asset classes or different properties. Can you argue the merits of a property you are considering buying over others in the marketplace and over other types of investment?
<img style="float: left;" alt="number-2" height="30" width="26" src="/images/stories/2014/02/27/numb/number-2.jpg">Overconfidence. Everyone’s an armchair property expert, but successful property investing requires a commitment to learning, research, patience and planning (a little bit of luck also helps). Property management is also not as easy as it sounds, and investors who attempt DIY tenant selection and management need to be careful not to stray outside the law.
<img style="float: left;" alt="number-3" height="30" width="22" src="/images/stories/2014/02/27/numb/number-3.jpg">Fear. Committing hundreds of thousands of dollars to a single asset is scary. Sometimes it seems “safest” to buy something near your home – even if that’s not such a great area for investing. While research is vital, fear can also lead to “analysis paralysis”. If you never take the plunge, you’ll never profit.
<img style="float: left;" alt="number-4" height="30" width="22" src="/images/stories/2014/02/27/numb/number-4.jpg">Naivety. There are plenty of property spruikers happy to take advantage of the unwary, pushing them towards poor investments which leave the adviser with good commissions and the investors with lemons. Do your own research – don’t just rely on your accountant, financial planner or mentor.
<img style="float: left;" alt="number-5" height="30" width="22" src="/images/stories/2014/02/27/numb/number-5.jpg">Over-ambition. Banks sometimes lend investors more money than they can comfortably repay, particularly if their financial circumstances change. Property investors should consider the need for: access to a cash buffer to shield them in case of unemployment; income protection insurance in case of injury; buildings and contents insurance; and landlord insurance.
<img style="float: left;" alt="number-6" height="30" width="22" src="/images/stories/2014/02/27/numb/number-6.jpg">Failure to plan. Things change. You need to go through the major “what ifs” to avoid a situation where you may be forced to sell. What if you have a child? What if interest rates rise? What if you can’t find a tenant for several months? What if your tenant absconds or, accidentally or deliberately, damages your property? What if you need a new car?
<img style="float: left;" alt="number-7" height="30" width="22" src="/images/stories/2014/02/27/numb/number-7.jpg">Lack of a coherent strategy. In order to choose the correct investment property for you, you need to know what you’re hoping to achieve from it. Even well-respected property commentators and authors use very different approaches, so it’s important to read everything you can and choose a strategy which suits your circumstances.
<img style="float: left;" alt="number-8" height="30" width="22" src="/images/stories/2014/02/27/numb/number-8.jpg">Getting side-tracked. Buying for negative gearing or depreciation benefits alone is a bad idea. The aim of the game is to make money long-term, while managing the risks to ensure you are never a forced seller.
<img style="float: left;" alt="number-9" height="30" width="22" src="/images/stories/2014/02/27/numb/number-9.jpg">Impatience. Property is a long-term investment. Your property won’t necessarily grow at a steady pace. There will be years where its value remains static or even goes backwards.
<img style="float: left;" alt="number-10" height="30" width="53" src="/images/stories/2014/02/27/numb/number-10.jpg">Herd instinct. Buying with the herd, when property prices are reaching records, can leave you in danger of several years of sub-par performance. In the words of legendary investor Warren Buffett: “Be fearful when others are greedy and greedy when others are fearful.”
Sharon Fox-Slater is general manager of <a href="https://www.rentcover.com.au/" target="_blank">RentCover landlord insurance</a>, which insures more than 120,000 tenancies around Australia, and is a division of EBM Insurance Brokers.
                            
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10 risks first time property investors need to overcome

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A stronger presence from domestic purchasers, yield compression, improved leasing conditions driving demand and investors moving up the risk curve to access stock are expected to be the key forces driving higher investment in Australia's CBD office market in 2014.
Colliers International’s latest CBD Office Research &amp; Forecast Report for the first half of 2014 showed that more than $8.1 billion worth of CBD office buildings changed hands in 2013 - 16% above the previous year and the highest level of investment since 2007. 
Australian and offshore institutions dominated buying activity and China emerged as the country with the strongest growth, purchasing $580 million of CBD office property in 2013, said the report. 
"Growth in Chinese investment is expected to continue to define the market in 2014," said John Marasco, Colliers International managing director of capital markets and investment services.
"To date, most of the activity has been private Chinese investors purchasing secondary CBD office buildings however this started to change at the end of the year with the sale of Centennial Plaza to China’s sovereign wealth fund China Investment Corporation." 
"We are now seeing growth in institutions from China purchasing offices for investment, as opposed to development."
While offshore interest is expected to remain strong Colliers believes 2014 will be the year that domestic purchasers make their presence known.  "We are already seeing local demand competing, and in some cases winning, against the force of the offshore investors and this is set to continue further in the year ahead," said Mr Marasco. 
"On the back of increased activity by A-REITs, superannuation funds and privates, we will start to see the pendulum swing towards the locals in 2014."
Colliers is forecasting yields to tighten further this year on the back of increased competition for assets and the weight of money. 
Prime CBD office yields currently range from 6.75% in Melbourne CBD to 7.94% in Perth CBD. By the end of this year, Colliers is tipping yields will become firm in all markets with the exception of the Perth CBD.
Improved leasing conditions are also likely to drive demand for CBD office assets, noted the report. 
“The ‘disconnect’ between a strong investment market and a weak leasing market has been a key feature of Australian CBD office markets over the past two years,” said Nerida Conisbee, Colliers national director of research. “We now consider that incentives have peaked in most CBDs and prime net effective rental growth is likely to occur in all markets with the exception of Brisbane". 
Mr Marasco said that almost all indicators pointed towards increases in the amount of funds targeting Australian commercial property in 2014.
“Australia continues to be an attractive investment destination and provided that stock continues to come to market, total investment volumes should be greater in 2014 than they were in 2013,” he added.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
             
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Chinese investment growth will continue to define commercial market: Colliers International

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The Property Council of Australia recently released its latest survey — for the six months to January 2013.
It reports that the national vacancy rate for CBD offices has increased slightly to 10.4%. However, that hardly tells the whole story.
An uneven spread
<a rel="ibox" href="https://his-best.biz/assets/2014/02/Office-vacancies.png"><img height="370" width="300" src="https://his-best.biz/assets/2014/02/Office-vacancies-243x300.png" alt="Office-vacancies" title="CLICK to enlarge" style="display: block; margin-left: auto; margin-right: auto;"></a>As the accompanying table reveals, the vacancy levels show a marked variation around Australia.
Demand for space in Brisbane and Perth has declined in line with the mining sector.
Yet despite this, new supply is scheduled to come onto the market — with the current total office stock due to increase by more than 10%, over the next four years.
Likewise, Adelaide will also experience an oversupply through to at least 2016.
Not all bad news
Both Sydney and Melbourne have seen a number of older office buildings converted into upmarket residential apartments. However, the Barangaroo Project will soon push Sydney's prime CBD vacancies above 10%.
Overall, demand for Melbourne has remained strong — causing its vacancy rate to fall to around 8.7%.
Bottom line: The CBD office markets are not interest-rate sensitive. Instead, they respond purely to their local supply and demand for space.
At this stage, Melbourne would appear to be best positioned of all the CBD markets to grow in value over the next threee to five years — which is now being evidenced by the strong interest from overseas purchasers.
And you would expect that to flow through to the suburban office market as well.
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. 
You can visit his website <a href="https://property-edge.com.au/" rel="nofollow" target="_blank">Property Edge Australia</a> to help you get the most out of your commercial property investing.
                
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