The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

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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French-based hotel operator Accor has placed Australia front and centre of its growth plans, revealing its intentions to roll out a further four Pullman hotels, following a year of rapid expansion.
Since purchasing the Mirvac Hotel Group last year for €195 million (AU $280 million), the upscale hotelier has been aggressively growing its portfolio, in particular its upmarket Pullman brand.
In just 12 months, the Pullman brand has expanded from two hotels to 11.
A further four Pullman hotels are currently under negotiation.
“Establishing and expanding Pullman in Australia is one of the group’s priorities given we have recognised a sweet spot in the upscale market in Australia,” said Accor chief operating officer for Australia and New Zealand, Simon McGrath.
He said Pullman was currently at a turning point in its history and its expansion in Australia reflects that.
"Australia is seeing rapid increases in travel from a number of Asian destinations where Pullman is already well-established, and with the Australian Pullman network located in key business and resort areas of Australia, we believe that the brand is well poised to further grow considerable support from both international and domestic travellers,” said Mr McGrath.
The company attributed the success of the Pullman expansion to Accor’s multi-million dollar investment in growing the network of hotels and resorts, key refurbishment programs in Sydney, Melbourne and Brisbane worth over $20 million and new brand repositioning.
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Accor hotels has sights set on Australia for growth plans

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The Asia-Pacific region is forecast to have the highest level of average rental growth of any region globally over the next five years but Australia is not expected to achieve the same highs.
In its first ever global office review for the first half of 2013, DTZ Research showed  "subdued rental growth globally" of less than 1% as the slowing Chinese economy, subpar US growth and persistent European economic difficulties continued to weigh heavily on corporate tenants around the world.
The weaker China economic growth story saw general sentiment and demand for office space in the Asia-Pacific region "cool" over the same period, with the exception of the emerging south-east Asian markets.
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The results for the Australian office market were weak. Melbourne registered a decline in rents and the report stated that "the lack of rental movement in the other Australian markets is masked by significant increases in incentives.
"Consequently, net face rents have remained unchanged while effective rents have declined."
It also noted that negative net-absorption was recorded in the Australian markets due to weak demand.
Conditions in the domestic office market are expected to remain challenging, with DTZ tipping only small rental increases over the next five years.
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That comes despite its expectations that rental growth in Asia-Pacific will be the "strongest globally" over the next five years, driven by large uplifts in the Indian market.
"Occupiers in Australia are expected to benefit from the weakest regional rental performance," it concluded.
"The slowing economy and lack of demand drivers is likely to inhibit rental growth over the next five years."
On a positive note, DTZ's head of south-east Asia, Australia and New Zealand research, Dominic Brown said its research had also showed that the Sydney and Singapore markets had stabilised "at a low point, offering tenants excellent opportunities to lock in leases before market rents start to increase again.”
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Asia-Pacific region forecast to have largest average rental growth globally: DTZ Research

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If you are renting a residential property the landowner will require the tenants on the lease to pay a security bond which is usually the equivalent of four weeks’ rent.
The purpose behind the bond is to provide the land owner with the means to cover any losses that might be caused by the tenants, including damage to the premises or a failure to pay the rent.
The bond must be paid by the tenant to the property manager or landlord, who in turn is required to promptly lodge it with the bond administrator, which is a specific government-managed trust account. There are severe penalties for landlords or agencies which fail to comply with this.
When your tenancy comes to an end or is terminated, then the owner or their property manager will inspect the property to ensure it has been left in the same state and condition it was at the commencement of the lease.
Naturally, they must take reasonable wear and tear into consideration.
Sometimes there might be a disagreement between the departing tenant and the owner in terms of what exactly constitutes ‘fair wear and tear’, and where this happens may result in a disagreement as to how the bond money is disbursed.
If, after a final bond inspection it is revealed, for example, that the tenant has damaged a bench top or failed to properly clean the carpets, then the tenant may be given the opportunity to address this but the owner is under no obligation to grant further access to the property.
Alternatively, the tenant may acknowledge those issues and simply leave them to the owner to address and is happy to have the costs of making those things made good deducted from their bond.
Occasionally however, agreement cannot be reached over the manner in which the bond is disbursed and this results in a dispute.
In these situations the property condition report (PCR), which had its contents agreed to by both the owner and the tenant at the start of the lease, is relied upon to determine whether any damage was caused during the tenancy.
It’s possible that some damage may have occurred prior to the tenancy, but if this is not correctly noted in the PCR, then it’s impossible for the tenant to disprove responsibility.
In the end, the Magistrate’s Court will decide on the allocation of bond monies where there is unresolved dispute.
To avoid this situation, it’s always best for tenants to ensure the PCR is accurate at the commencement of their lease and return the property to the owner in the best possible condition at the end of the tenancy. This should ensure a full refund of the bond.

<hr>
David Airey is president of the <a href="https://reiwa.com.au/home/default.aspx" target="_blank" rel="nofollow">Real Estate Institute of Western Australia.</a> This article was originally published on <a href="https://reiwa.com.au/Faq/Pages/Feature.aspx" rel="nofollow" target="_blank">reiwa.com</a>.
 
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How to get your bond money back: David Airey

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The delay in changes to the first-home owners grant (FHOG) is good news for many buyers.
Legislative changes to the distribution of the FHOG were anticipated to take effect last Sunday, however, the Western Australian parliament has not yet passed the necessary bill.
The state government announced changes to the FHOG in the August budget and was aiming for 15 September as the change-over date, but parliament has not yet fully processed this legislation so the change now looks like happening in October.
This is good news for the 70% of first-home buyers who preferred to purchase existing, older homes rather than building new.
Currently first-home buyers are eligible for a grant of $7,000 whether they buy an established home or build a new one. However, once the FHOG change takes effect the grant will drop to $3,000 for established homes and lift to $10,000 for new-builds.
The current delay in the change means that first-home buyers looking for an established property have a few more weeks to access the higher grant and, conversely, those who want to buy a block and build will be likely tohold back until the grant lifts to $10,000.

<hr>
David Airey is president of the <a href="https://reiwa.com.au/home/default.aspx" target="_blank" rel="nofollow">Real Estate Institute of Western Australia.</a> This article was originally published on <a href="https://reiwa.com.au/Faq/Pages/Feature.aspx" rel="nofollow" target="_blank">reiwa.com</a>.
 
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Good news comes in the shape of delays to FHOG changes: David Airey

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Property investors often rent out properties as a means of earning passive income. However, there may come a time when your property has not been tenanted for awhile.
Property Observer speaks to property management specialists, and property analysts to help determine why your property has not been taken up, and how you can change that.
The first thing a landlord should look at is how the property has been priced. Property management specialist Fiona Blayney and SQM Research director Louis Christopher both emphasise the importance of pricing a property appropriate to current market conditions.
“What’s important is no matter what type of market, the landlords meet the market. Don’t try to overprice the rental property. If they do, no matter what the market is, they won’t find a tenant,” Christopher said.
Blayney agreed with this view.
“Normally if a property hasn’t got a tenant in it, it comes down to the price,” she said.
“A big part of the pricing is the landlord not listening to the agent. A lot of landlords think the agent can’t be bothered getting a higher price – but an agent’s income is reflective of the value they want to achieve,” she added.
Blayney notes that renters have a dollar value in mind.
“If I am looking for a property and I want to spend between $500-$520, I'm just looking for properties in that bracket. A good agent considers what bracket it goes onto on the websites. If you put it at $510, it'll go to the $500-$550 instead of $450-$500 bracket,” she said.
To get the right price, Christopher recommends checking the vacancy rates in the area. SQM Research provides this data for free, right down to the suburb level.
In addition to that, he advises landlords to do their own assessment, watch the market closely and look at rental listings to get a realistic idea of the property market.
Consistent with every other market, the rental market is driven by supply and demand. An increase in demand will generally lead to an increase in rental prices as properties compete with each other. Conversely, an increase in supply or a reduction in demand will lead to a rise in vacancy rates and put pressure on market rents.
Christopher told Property Observer that the Australian housing market has been a “fairly tight” rental market in recent years.
“Vacancy rates for August are at around 2.1%, which is still reasonably tight. Anything under 3% is in the landlord’s favour,” he said.
He revealed that vacancy rates have been slowly inching upwards since 2010, when the vacancy rate stood at about 1.7%. Other factors that affect vacancy rates include seasons. He notes that rates are usually high around Christmastime, and drops back down after.
Vacancy rates also vary greatly depending on city and region.
“In Melbourne we are generally recording higher vacancy rates of around 2.7%. This is due to the increase of accommodation in the last three years – an increase in house and land packages and multi-storey buildings in Southbank and Docklands,” he said.
He added that planning laws and restrictions in Victoria are more flexible than New South Wales, which could have contributed to the recent influx of accommodation.
“To be fair too, we’ve noted that the vacancy rate in Melbourne has remained largely unchanged for the last 12 months, outside of seasonality. In 2011 there was a rising trend; I find it interesting that it hasn’t further increased, and the rate’s stable now. It implies that demand is meeting supply in this particular instance – the situation hasn’t worsened for landlords,” he said.
The Sydney rental market is “relatively tight”, with a vacancy of 1.8%.
“It is slowly trending up. Back in early 2011 it was around 1.5%. There’s been a slow rise, and the market’s definitely favouring landlords at this point,” Christopher revealed.
Away from capital cities, there are areas around Australia where the rental market is greatly affected by seasonality. Coastal regions like the Gold Coast often see higher vacancy rates during the winter months, while rates tighten during summer months.
Besides pricing your rental property correctly and putting it on the market during the right season, Christopher advises landlords to be particular about the tenant. 
“I would rather have stable rent if I’ve got a good tenant in place looking after the property. It’ll mean a lot less maintenance and stress. Having a good tenant is worth their weight in gold – I would talk to the tenant a lot before lifting the rent,” he said.
Property management specialist firm Let’s Rent’s director Lisa Indge seconds this view.
“When you’ve got a tenant in a property that’s presenting it very badly – things everywhere, unmade beds, do you want to show it in this condition? I would wait for the tenant to move out before making sure it’s clean, neat, and tidy before presenting it to the rental market,” she said.
She also mentioned it should only take three weeks to lease most properties. During those three weeks, agents and landlords need to take note of what kind of queries you’re receiving, and what are the competing properties in the area.
Indge notes that many tenants choose not to rent a property because it is dirty and hasn’t been well maintained.
“A lot of agents out there don’t communicate with their landlord about the condition of the property. If it’s not renting, they say the market’s dropped when really, people are walking in and going, ‘It’s disgusting,’” she said.
She added that owners really need to repaint their properties every five years or so.
“When a property looks tired, appeal drops dramatically,” she said.
Other factors that deter tenants from renting a property include dirty carpets, a lack of light, and coloured walls.
“No feature walls unless it’s in a neutral tone,” Indge emphasised. “You can put mirrors to try and maximize the light in the property.”
“You also need to be aware of how long your kitchen and bathroom are going to last. The more neutral the colours, the better. Doesn’t matter if it’s built 20 years ago, so long as it’s neutral and not offensive, it’s not going to be a major turnoff as long as the condition is good,” she said.
Blayney also notes that little repairs sends a message to prospective tenants about the landlord’s “care factor”.
“If there are scuff marks and such, get a handy man in there and get him to go over the superficial elements to make it shine,” she said.
Lastly, Blayney recommends doing your research as if you were a tenant. Ask the questions you would ask if you were renting the property. Don’t reuse old photos as things may have changed. For instance, old photos may show a freshly planted garden, whereas a few years down the track there are now trees. All these could be introduced into the campaign.
“Photos tell a thousand words. Professional photos or choosing an agent that knows how to take photos using their SLR is a highly undervalued concept. Nowadays you can get five professional shots taken for $150 and that’s definitely worth the investment,” she said.
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dleow-BGaNPbHWyK

Reasons why your property isn’t tenanted 

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Having built million dollar rent rolls during my career in real estate, I have learned not to underestimate the importance of what is truly the most central asset of any real estate agency.
Historically, our industry has tended to undervalue property management teams, while sales agents have attained all the glory and remuneration.
Over time this dynamic has started to change as more and more principals focus on building their rent roll income. Revenue generated from a rent roll is reoccurring and secure; sales income can be variable and volatile.
A rent roll is a real estate agency’s property management portfolio. It should be well managed and retention should always be a priority as it generates guaranteed income on a monthly basis. If you are lucky enough to have built a decent sized portfolio, you could have a very valuable asset.
The rent roll is also a source of sales listings for the sales team so the overall income regenerated from property management is priceless to a real estate agency.
It is also the only part of the business that a bank will recognise and lend money against as an asset.
When a real estate agency is valued, regardless of how large your sales team is, or how many sales you are turning over each year; the value of your rent roll is between 80–90% of your entire business value.
A rent roll is normally valued between $2.50–$3.50 for every dollar generated in management fees per annum. This value depends on many things including (but not limited to) the condition of the rent roll, location and geographic spread of the properties, average rental value, management fee per annum and vacancy rates.
Managing and retaining a rent roll is a very challenging role; you have to meet the demands of your tenants, landlords, internal stakeholders and other external third parties. It is your responsibility to ensure the properties are maintained beautifully, your tenants are living happily and that your landlords’ income is being paid on time and maximised with minimal vacancy.
Only time will tell what impact the new Liberal government will have on consumer confidence and on property sale prices. Currently, the rental market is going from strength to strength – another key reason why the rent roll should be a key area of focus for an agency.

<hr>
Carlie Ziri is the director of <a rel="nofollow" href="https://www.lifestylepropertyagency.com/" target="_blank">Lifestyle Property Agency.</a>
 
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cziri-avMho78xfG

Don't underestimate the importance of rent rolls: Carlie Ziri

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What will it take for the real estate industry to be satisfied? 
   It’s doubtful there’s been a time in the past 10 years when the industry has had it this good.   Interest rates at historic lows, sales volumes rising, housing finance increasing month by month, building approvals trending strongly upwards, grants and stamp duty concessions to people building new homes, affordability the best it’s been since 2003 and confidence rising – it’s an almost perfect set of parameters for service providers to make money.   But the industry is still complaining. I say that with a sense of disbelief that a sector with so much in its favour still thinks it has legitimate complaints.   The welfare mentality in the industry borders on the pathetic.   I didn’t think anyone could challenge the Housing Industry Association as the greatest malcontents in real estate, but the Real Estate Institute of Australia is giving it a good try.   Interest rates are the best they’ve ever been but the REIA is demanding more cuts from the Reserve Bank.   There are a couple of issues I have with that. One is that the boffins at the institute clearly think interest rates are the dominant influence on property markets. All the available research contradicts that notion. Rates are a factor, but only one of many. There have been many periods in the past 50 years when markets have thrived in a high rates environment and others where low rates have failed to stimulate activity.   Another issue if that the REIA leadership apparently believes that the key consideration for RBA board members in making interest rates decisions is the wellbeing of the real estate industry. I doubt the RBA gives more than a moment’s thought to hard-luck stories from real estate agents. They have far greater considerations to ponder than the trading of houses and apartments.   But the bottom line is that we’ve never been so well off when it comes to housing finance. Not only is the official rate extremely low, but multiple lenders are competing to provide attracting mortgage products.   Another recent REIA press release complained that first-home buyers need more encouragement. They already have plenty of help and it’s really up to individuals to take action. It’s probably not going to get any better than this.   The real estate industry has shot itself in the foot, the other foot and both hands, with its constant stream of negative comments about affordability and the alleged plight of first-home buyers.   The HIA (which greeted the news that building approvals are up 28% in the past year with yet another negative press statement) has led the way, with Master Builders Australia and the REIA close behind.   The theme of their messages, gleefully regurgitated by the media, is that young people just can’t afford to buy homes. And potential first-home buyers appear to have accepted that as fact, without even giving it a try.   The reality, as demonstrated by ABS, is that housing costs (as a portion of household income) are no higher today than in 1995. And housing affordability now is the best it’s been in 10 years, according to the quarterly report published by the REIA itself.   The main thing holding back first-home buyers is the perception that it’s all beyond their reach. And for that, the industry only has itself to blame.   The ingrates of real estate should stop pleading for handouts and start taking advantage of the best market conditions in 10 years. 

<hr>
Terry Ryder is the founder of <a target="_blank" href="https://www.hotspotting.com.au/" rel="nofollow">hotspotting.com.au</a> and you can contact Terry via <a href="https://mailto:%20ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://twitter.com/hotspotting" target="_blank">Twitter</a>. 
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terryryder-YECXbqmri2

Real estate industry only has itself to blame for holding back first-home buyers: Terry Ryder

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Since we came out of Keating's famous "recession we had to have" and slow growth returned to Australia in September 1991, our economy has posted an amazing 22 consecutive years of growth. Although we experienced a slowdown around the turn of the century as the tech stock bubble burst, and again during the financial crisis, on both occasions interest rates were dropped and monetary policy helped Australia to avoid recession. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/chart-pack/images/4-au-gdp-growth/4tl-gdpgrwth-small.gif?accessed=2013-09-15-17-41-34" height="258" alt="GDP Growth graph"> The most recent National Accounts from the Australian Bureau of Statistics showed the Australian economy growing at 0.6% quarter on quarter  and 2.6% year on year, which is some way below the long-term trend as you can see in the chart above. The official cash rate has again been dropped, this time to a new low of just 2.50%. The full effect of interest rate cuts can take up to two years to flow through in full. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/chart-pack/images/18-22-interest-rates/18bl-cr-small.gif?accessed=2013-09-15-17-50-48" height="272" alt="Australian Cash Rate graph"> As inflation remains benign and comfortably within the Reserve Bank's 2-3% target range, it appears likely that interest rates will remain relatively low for the near-term future. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/chart-pack/images/4-au-gdp-growth/4bl-underinf-small.gif?accessed=2013-09-15-17-49-56" height="282" alt="Underlying Inflation graph"> Inflation is forecast to remain fairly benign, largely thanks to a soft labour market. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-6.4.gif" height="285" alt="Graph 6.4: Trimmed Mean Inflation Forecast"> Consequently, there is not yet an expectation of higher interest rates in the coming six months. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-4.1.gif" height="260" alt="Graph 4.1: Cash Rate Expectations"> Low interest rates have impacted net savers and some pensioners adversely. Bank accounts and fixed-interest products are yielding very low returns. Some residential property market prices have benefited from the lower rates, particularly those in Sydney, Perth and Melbourne. There was a lot of market commentary suggesting that the response to low interest rates by the property market would be weak. As recently as June, there was talk of falling prices in spite of multiple indications to the contrary. This has been shown to be incorrect. The response has in fact been strong and is strengthening by the month, causing a rapid about-face in commentary. If this trend continues as implied by recent housing finance data from the ABS then it may cause a stop lever to be applied in 2014. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.6.gif" height="246" alt="Graph 3.6: Housing Market"> Is the property recovery being led by real estate investors or owner-occupiers? Actually, it's both. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-4.14.gif" height="268" alt="Graph 4.14: Value of Housing Loan Approvals"> Vacancy rates have remained now for some years, and rents continue to rise. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="291" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.7.gif" height="400" alt="Graph 3.7: Rental Market"> Are new dwellings attracting buyers? Yes, with a steady increase over the last three years. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.8.gif" height="265" alt="Graph 3.8: Indicators of Dwelling Investment"> Both dwelling approvals and dwelling construction are trending steadily upwards in response to monetary policy. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.9.gif" height="262" alt="Graph 3.9: Residential Building Approvals"> After the stock market crash, investors have also returned to share markets seeking yields and prospects for capital growth, pushing up stock valuations and price-earnings ratios. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/chart-pack/images/23-24-share-markets/23bl-spiau-small.gif?accessed=2013-09-15-17-55-40" height="250" alt="Australian Share Price Indices graph"> With asset prices increasing, we're getting wealthier again after the financial crisis destroyed much of the value of superannuation funds through 2008-9. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.3.gif" height="290" alt="Graph 3.3: Household Wealth and Liabilities"> It's notable, however, that share market gains have been found largely in the non-resources sectors: the industrials and financials. Resources companies have performed less favourably as commodity prices have tailed off.  <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/chart-pack/images/15-commodity-prices/15tl-rbaicp-small.gif?accessed=2013-09-15-17-58-58" height="252" alt="RBA Index of Commodity Prices graph"> Iron ore export spot prices have not remained dramatically lower as feared (although it's likely that we'll see a seasonal dip in the coming months), but it's been a rough ride for other bulk commodity prices. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/chart-pack/images/15-commodity-prices/15bl-blkcomp-small.gif?accessed=2013-09-15-17-58-58" height="269" alt="Bulk Commodity Prices graph"> The brighter news is that recent data out of China suggests that it can achieve and perhaps subsequently maintain its growth target of 7.5%. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-1.3.gif" height="268" alt="Graph 1.3: China – GDP Growth"> Resources export volumes from Australia continue to ramp up and the major players forecast this to continue through 2014. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.17.gif" height="281" alt="Graph 3.17: Export Volumes"> However, from a risk perspective, keep a close eye on what happens to China's overheating property markets. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-1.6.gif" height="251" alt="Graph 1.6: China – Residential Property Market"> The red line signifies a weakening Aussie dollar against the USD, which is welcome news for exporters. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-2.22.gif" height="266" alt="Graph 2.22: Australian Dollar"> Unemployment continues to increase steadily in Australia as the mining investment boom is set to decline over coming quarters. The participation rate is also sliding. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.18.gif" height="261" alt="Graph 3.18: Unemployment and Participation Rates"> Wages growth has also fallen away. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-5.5.gif" height="262" alt="Graph 5.5: Wage Price Index Growth"> Note below the disparity in employment growth between states as the population booms. The major states are cumulatively employing tens of thousands more heads. Tasmania, South Australia and the territories, however, are not. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.20.gif" height="262" alt="Graph 3.20: Employment by State"> Labour sentiment indicators point to an ongoing weakness. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.21.gif" height="281" alt="Graph 3.21: Labour Market Indicators"> There has been a notable pick-up in consumer sentiment of late, and we're certainly buying a lot of cars, but any such confidence has yet to be translated into stronger retail sales. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;" width="323" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-3.4.gif" height="400" alt="Graph 3.4: Consumption Indicators"> Summary
All in all, the RBA's Statement of Monetary Policy and Economic Outlook shows that the economy has slowed, and with the labour market remaining soft, we can expect this to continue for some time. There is a significant community of voices which is hoping that the economy sinks into recession, in the misguided hope or belief that will somehow make things better. And indeed the labour market remains weak and the mining construction phase will begin to unwind in the coming years. Does this mean that Australia is headed for recession? In a word, the RBA's team of economists says: no. The Reserve Bank maintains confidence that stimulatory monetary policy will work and stronger growth will return. <img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;" width="320" src="https://www.rba.gov.au/publications/smp/2013/aug/images/graph-6.3.gif" height="285" alt="Graph 6.3: GDP Growth Forecast">

<hr>
Pete Wargent is the co-founder of <a rel="nofollow" target="_blank" href="https://allenwargent.com/">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a rel="nofollow" target="_blank" href="https://petewargent.blogspot.com/">blogger</a>.
His new book '<a rel="nofollow" target="_blank" href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx">Four Green Houses and a Red Hotel</a>' was released on 1 September 2013.
 
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Australia's miracle economy, a quick update on how we're tracking: Pete Wargent 

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There is an old army expression that cautions us to “hurry up and wait”. 
   This means that you should be prepared to leap into action at the drop of a hat, whilst exercising patience sitting around and waiting for that moment to come, only to do the same thing all over again as the cycle of waiting, then proceeding very quickly and then waiting some more continues.   This expression is very apt for those who want to achieve long term wealth through real estate or any other asset class.   While it is necessary to be pro-active as to the strategy you take into the bricks and mortar battleground, there are many times when the best thing to do is nothing at all and simply wait for the right time or for the power of leverage and compounding to work its magic.   And yes, you guessed it, this too will follow a cycle of intensive moments of action and activity followed by a hibernation period, where you wait for the value of the property you bought to grow in order to fund the next investment. The property cycle.
If you’ve been involved in property for a while you’d know the market moves in cycles. After each period of strong property growth, prices stagnate or perhaps drop a little and then flatten out before once again they begin to rise. 
   Just another instance of “hurry up and wait” isn’t it?   Strategic property investors know how to use this cycle to their advantage.   Rather than waiting for the times when all the good news has already happened and is then being reported in the media, they “hurry up” and buy their investments at the bottom of the cycle, taking advantage while everyone else is waiting.   They then recognise the right thing to do is wait until they have built up enough capital to refinance and use the equity in their investment to make the next purchase.   The power of this is that if you buy the right type of property, one that will be in continuous strong demand by a wide range of owner occupiers, regardless of the housing cycle’s ups and downs, the value of your property is likely to double every eight to 10 years.   Of course you can speed this up by buying well, purchasing a property in an area that outperforms the averages, by choosing a special property with unique features that will give it a scarcity factor and by “manufacturing” capital growth through renovations or redevelopment.   This minimises your risks and maximises your upside. Each strand represents a way of making money from property and combining all four is a powerful way of putting the odds in your favour.   Patience equals profits.
The trick to getting the cycle working to your advantage as you build a long term, wealth generating residential property portfolio, is to be patient. 
   Warren Buffett famously said that “wealth is the transfer of money from the impatient to the patient,” and this is very true in property.   I’ve seen so many investors so keen to do something, in fact so keen to do anything that they make mistakes they regret for years.   Some buy cheap properties because they can’t afford to buy good properties. They buy in secondary locations or in new estates where capital growth languishes or in small regional towns and then find they’ve bought a lemon.   Others don’t wait to save enough of a deposit so they speculate and buy off-the-plan, lured by the developer’s flashy promise of profits before they settle their purchase. Unfortunately many find that on completion the value of their property falls short of their contract price and rather than making a profit they’ve lost out.   Then there are the inexperienced investors who attend a seminar and walk away with unrealistic dreams of putting down a dollar (or less) and getting their foot in the property door and walking away rich in just a few years.   Yet others look for excitement in their property ventures and get involved in speculative endeavours or property development before they’ve cut their teeth on traditional investments.   Instead I suggest they should look for their excitement elsewhere. Go bungy jumping! Go trail bike riding! Your property investments should be boring so the rest of your life can be exciting.   Sometimes, as boring as it might seem, the best thing you can do is to wait and do nothing! In fact over the years I’ve made more money by saying “no” to deals than “yes” to so-called opportunities.   Sometimes the best thing you can do is to wait for the time to be right.   Wait until you have enough deposit or sufficient serviceability for a loan to buy the right property in the right location.   Or wait until that right property comes along and then wait out the negotiation process to get the best possible deal.   The take home lesson is that just like being in the military, investing in property is not a fast paced world of non-stop, go-go-go action. In order to prosper in property, you must be content to sit and do nothing for long periods of time, often years, while you allow the market to do the work for you.   It might not be exciting in the beginning, but when you see the fruits of your initial labours and the periods of hibernation starting to build, you’ll think patience is indeed a very valuable virtue. 
 
<hr>
 Michael Yardney is a director of <a rel="nofollow" href="https://www.metropole.com.au/">Metropole Property Strategists</a>.
 
 
 
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Sometimes the best thing you can do is to wait for the right time: Michael Yardney

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There’s a school of thought that suggests buying affordable property is the way to go for property investors. The argument goes – there will always be demand for this type of property, especially by young families.
This has some investors buying houses in the newer or outer fringe suburbs of our capital cities as they read that these are some of the fastest-growing locations in Australia.
While I accept that the population in some of these suburbs will double in size over the next 30 years, and they may be a great place to bring up your family, that doesn’t mean that houses in the new outer fringe suburbs make good investments.
Population growth does not necessarily translate to capital growth. In fact, I’ve never considered these areas investment grade locations.
Poor planning
While many new outer suburbs have been planned to be affordable, and may not be expensive in terms of money, they are expensive in terms of travel costs and particularly in terms of health.
The problem is in some estates poor planning has created a dependency on cars as many have poor ‘walkability’ and poor public transport links. There is also a paucity of parks and open spaces in many new housing estates.
In fact in 2012 a Victorian State Government study showed that some new suburbs in Melbourne (and I can only assume the same applies to some other areas of Australia) are so poorly designed that residents face an epidemic of chronic diseases such as anxiety, obesity and depression that may cause these locations to become the slums of the future.
Of course there are other reasons houses in new estates don’t make good investments
Residents in these areas tend to have less disposable income than people who live in more affluent suburbs, which means that these regions suffer most in tough times or when interest rates rise.
Also, one of the big factors that enhances capital growth is scarcity, and that’s something missing in these suburbs. Many properties look the same, and there’s always another estate with more land and similar houses just across the road.
Another reason I would avoid investing in these areas is their demographics, as they don’t attract the same demand from a diversity of tenants as the inner and middle ring suburbs do.
Then there is a very low land to asset ratio
I know some investors buy houses because they’ve heard that land appreciates in value.
But when you think about it, when buying a new house on a block of land in one of these outer suburbs you may be paying $450,000, of which the land (the component which increases in value), could be worth much less than half – say around $200,000.
What’s the alternative?
While many homebuyers still would like to own a home, for them it’s the great Australian dream, an increasing large demographic of young families and older downsizers are trading their backyards for balconies and an inner suburban lifestyle.
In fact in many of our capital city built-up suburbs, established apartments have similar capital growth, in fact better capital growth, to houses and currently, with low vacancy rates, investors are achieving higher yields for apartments.
Of course, the rental is not the most important factor; we want properties that are going to grow in value significantly.
What it all boils down to is that as living in the more leafy inner and middle ring suburbs grows in popularity, it will come at a cost – higher property prices and higher rentals. That’s why I’m buying my investment properties in these locations.

<hr>
Michael Yardney is a director of <a href="https://www.metropole.com.au/" rel="nofollow">Metropole Property Strategists</a>, who create wealth for their clients through independent, unbiased property advice and advocacy. Subscribe to his <a href="https://propertyupdate.com.au/category/property-investment/" rel="nofollow">Property Update</a> blog.
 
 
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