Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;

Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.

Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.

[smartcode_project:default project_id=112195 project_image_fid=3286]

Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.

"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.

"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."

The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.

[smartcode_project_cta:default project_id=112195]

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.

Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.

The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.

<a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.

The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.

<img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.

Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.

Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.

[smartcode_project:default project_id=28384 project_image_fid=3823]

Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.

The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

[smartcode_project:default project_id=28384 project_image_fid=3826]

The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."

The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe>

A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.

The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.

At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.

[smartcode_project:default project_id=28384 project_image_fid=372542]

The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.

"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."

Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.

[smartcode_project_cta:default project_id=28384]

North-facing Swan River views drive demand at Rivière Residences in Applecross

Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.

The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.

[smartcode_project:default project_id=143337 project_image_fid=374768]

McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."

[smartcode_project:default project_id=143337 project_image_fid=374767]

A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.

The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.

[smartcode_project:default project_id=143337 project_image_fid=374760]

Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

[smartcode_project:default project_id=143337 project_image_fid=374761]

Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.

Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.

Construction is underway, with completion expected in the second half of 2027.

[smartcode_project_cta:default project_id=143337]

More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.

The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."

The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a>

The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;

The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.

Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

Commercial Property

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A retail investment in South Yarra with a long-term tenant has sold for $843,000 to a local first-time commercial investor.
The 64 square metre building at 5/159A Williams Road was sold on a yield of 4.7 percent.
Ray White Commercial Oakleigh’s George Kelepouris sold the property on behalf of a local owner.
“The tenant initially took out a three-year lease in November, 2014, and has a further 2 x 3 year options,” he said.
“This property is an outstanding Hawksburn Village location and is returning net rental of almost $40,000 per annum.
“It was ideal for a self-managed super fund or as a passive investment.”
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j.ballantyne1990-6AQqhLzZaK

Retail property in Hawksburn Village, South Yarra sold

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A strata-titled ground floor showroom space in South Yarra’s booming Forrest Hill precinct has sold for $2.275 million on a sharp 3.1% yield.
The 6 Almeida Crescent property is leased to South Yarra Art House Gallery, and returns $70,000 per annum plus outgoings and GST.
The 290 sqm property forms part of a low-rise two-storey development encompassing seven units, which sits on an 845 sqm site.
It is located in the Forrest Hill precinct that is home to nearly 4,000 residents and has seen around $2 billion worth of construction take place, with upcoming developments including the 50-storey Capitol Grand development on the corner of Toorak Road, and the 661 Chapel Street development just nearby the Almeida Crescent site.
Fitzroys agent Chris Kombi sold the property.
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Forrest Hill strata showroom sells on a sharp 3.1% yield

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An iconic Victorian manor in Tasmania, part of which is primarily used now as a meeting and function centre, is on the market.
<a href="https://www.realestate.com.au/news/campbell-towns-the-grange-is-a-grand-country-home-with-a-thriving-business-too/" target="_blank">The Grange</a>, in its modern form, opened in 2007 and provides six conference rooms for up to 150 delegates.
It offers a full range of catering from its commercial kitchen to indoor and outdoor courtyards with a cafe, barbecue and dining options.
The venue is fully licensed and it has a large range of clientele, including government, business and community groups.
The property contains three titles, with a land area of 2.7881 ha, including 1.32 ha of vacant residential land.
<img src="https://www.urban.com.au/images/2017/05/16/CampbellTown1.png" alt="">
The house was built in 1847. It is a Victorian rustic Gothic manor and a heritage-listed property with a fascinating history of occupation.
The Grange was built for Dr William Valentine, was one of Campbell Town’s most active early citizens, in 1947. 
He established Turkish baths, acted as Lay Preacher at the Anglican Church, was instrumental in the construction of St Luke’s Sunday school, set up a reading room and library and built two pipe organs himself, according to www.campbelltowntasmania.com.
Although currently an owner’s residence, the property has the potential to be converted into a bed and breakfast place with a licensed restaurant, which was its previous use prior to 2007.
“From its beautiful glass conservatory with its fruit-laden grapevine to the grand dining room, The Grange is certain to delight and impress,” says the property’s description on www.realestate.com.au. 
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Heritage-listed country home The Grange in Tasmania's Campbell Town listed

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Two adjoining, strata-titled, retail properties at Port Melbourne are to be auctioned off on June 9 through Teska Carson.
Located at 350-352 Bay Street, the two single-level, self-contained shops are between Spring and Bridge streets. The site is zoned Commercial 1.
The 58 sqm, 350 Bay Street, property is suitable for a variety of uses including office accommodation and food/hospitality subject to council approval.
The property was previously owner-occupied as an art gallery.
The 352 Bay Street property is also 58 sqm and is currently leased to hair salon operator Lovalola. 
According to marketing agents, Teska Carson’s Anthony Choi and Michael Ludski, the property will be sold subject to a monthly lease over 352 Bay Street at $2,127 per calendar month plus outgoings &amp; GST, while 350 Bay Street is vacant.
Choi said recent comparable lease transactions nearby point to retail rental rates of circa $500 to $550 per sqm.
He said the entry-level acquisition opportunity offered the buyer the flexibility to be an owner-occupier or invest within the tightly held Bay Street retail precinct.
"The immediate area is experiencing continuous growth due to a number of high profile residential/mixed-use developments within close proximity, and is an excellent metric for rental and capital growth in years to come,’’ Choi said.
He said the property is in one of Melbourne’s sought after bayside locations and is well serviced by public transport.
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Entry-level retail investment properties in Port Melbourne up for auction

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A 7-Eleven in Melbourne’s Heathmont is up for grabs at auction on May 18 through Colliers with expectations of more than $2.5million.
The convenience store on the corner of Canterbury Road and Campbell Street is fully leased to the 7-Eleven franchise on a 10-year term until July 2021, with one five-year option to renew.
The 1,091 sqm property makes a rental income of about $115,755.30 per annum, with an annual increase of three per cent.
He said she had already received strong interest from Melbourne-based investors wanting to shift their focus to commercial assets.
The listing agents are Colliers International’s Jeremy Gruzewski, Dorothy He and Ben Baines. 
“The retail property market in Melbourne’s outer-eastern suburbs has traditionally been viewed as a natural fit for many local investors, who look for secure and consistent investment returns,” said Dorothy He.
“With historically low interest rates and a lack of attractive alternate options, yield-chasers are still looking favourably into commercial properties that deliver stable income streams.”
Developers had also expressed interest in the property, with the initial intention to landbank and the long-term view to redevelop.
“Its general residential zoning is being proposed for change into mixed-use zoning under the Heathmont Neighbourhood Activity Centre Structure Plan, which is expected to open up wider possibilities,” she said.
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7-Eleven in Melbourne's Heathmont goes to auction

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A multi-tenanted investment opportunity in the heart of the Southport CBD on the Gold Coast is being offered for sale via auction by Ray White Commercial Gold Coast.
The freehold building at 111 Scarborough Street is being marketed by Steven King of Ray White Commercial. It has three established tenants.
“This multi-tenanted building with holding income is very well positioned within the Gold Coast's CBD,” said King.
The two-storey corner property has a net lettable area of about 294 sqm and is on a land area of approximately 508 sqm.
"The instructions from our vendor are loud and clear – this property will be sold at auction,” said King.
The auction is on May 25.
Earlier this year in February Property Observer reported on a Southport industrial investment that was sold for $1.31 million.
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Southport freehold investment for sale at auction

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A fully rented commercial building in Sydney’s Hornsby with the NSW government as one of the tenants is up for sale through Savills.
The <a href="https://commercialpropertysearch.savills.com.au/97e4790e-cf14-e711-80c7-005056813885/Sale/Hornsby/110-George-Street" target="_blank">110 George Street &amp; 2a Linda Street</a> property was completed in 2008 and comes with depreciation benefits. The building can also be made into a residential building in its next life cycle.
It offers a secure income stream with strong revenue growth potential, according to its description. The property earns a net income of $1.78 million. 
Tenants include Officeworks, Midas, Australian Unity and the NSW state government.
Its current net lettable area is 4,118sqm with potential for further growth. 
The building is close to public transport and Westfield Shopping Centre.
The listing agents are Matthew Dunn and Tim Grosmann of Savills.
 
 
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Fully leased commercial building in Sydney's Hornsby up for sale via Savills

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Stockland’s makeover of the first section of its Green Hills mall in East Maitland, NSW is over, with the developer officially opening it.
The $412 million redevelopment and expansion of Stockland Green Hills is expected to be complete in 2018.
Upon completion in mid-2018, the centre will more than double in size to around 74,000 square metres and will feature the first new look David Jones department store in the Hunter, a new 900 seat Hoyts cinema and around 225 tenancies with a vibrant new dining and entertainment precinct that will be the biggest and best in the region.
The first section’s open brought 14 retailers to Stockland Green Hills, including Cruise Travel, L’Amore Nails and Toto Sushi, all new to the centre, and Blooms The Chemist, according to Stockland’s website.
Ten retailers made their return to the centre’s brand new premises, including Best&amp;Less, The Reject Shop and MyHouse.
“Today we are one step closer to transforming Stockland Green Hills into a vibrant, thriving shopping, leisure and entertainment destination that is set to be the pride of the Hunter,” Tim Beattie, Stockland general manager, Design and Development, said.
The redevelopment is on track to generate more than 2,600 jobs, including 1,350 construction jobs, 1,250 direct full time jobs in retail, customer service and hospitality, and some 1,200 flow-on jobs for local suppliers.
The opening was attended by Meryl Swanson MP, Federal Member for Paterson; Jenny Aitchison MP, State Member for Maitland; and Mayor of Maitland Councillor Peter Blackmore OAM.
<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/2017/04/28/HOYTS%20Stockland%20Green%20Hills.jpg" alt="">
Meryl Swanson MP, Federal Member for Paterson, the project would boost the local economy through new jobs and "a fantastic place for us to shop and relax”.
“It is fantastic to see the Stockland Green Hills redevelopment making such great progress especially with the thousands of new construction and permanent retail jobs it will create for the Maitland community,” added Jenny Aitchison MP, Member for Maitland.
The redevelopment of Stockland Green Hills continues to steam along for the next stage, with around 17 additional, new retail stores expected to open in August 2017.
 
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Stockland opens first section of refurbished Green Hills mall

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GUEST OBSERVER
Whether or not the government removes the ability of self managed super funds (SMSFs) to borrow to purchase property or other investments, the implications for investors are relatively minor.
With rare exceptions, borrowing to purchase assets outside super is far simpler and more tax-effective than borrowing in an SMSF.
Even ignoring the strict regulations governing limited recourse borrowing by an SMSF, the maximum tax benefit from deductions including borrowing costs, depreciation allowances and other expenses is the superannuation fund tax rate of 15 per cent. In pension funds there’s no tax benefit.
In personal names, the tax benefit ranges from 34.5 percent to 49 percent, providing a much larger benefit from borrowing, especially to purchase low-yielding property assets.
Complicating matters for SMSF property purchasers, regulations prohibit related party transactions except in the case of business rental property. In practical terms, the restriction on related party use reduces the tenancy options, preventing use of the property by owners or their children.
No such limitations apply to the use of negative-geared personally owned properties which can be used as a future personal residence by the owner or children. Even after the regulator’s tightening of individual investment borrowing, providing the collateral and obtaining a high loan-to-valuation ratio is much easier than borrowing in an SMSF.
The low 15 percent superannuation tax rate increases the attractions of owning high-yielding assets in super funds instead of in personal names. Property assets generating low current income and steady or even spectacular capital gains are better suited to personal portfolios, especially for longer-term investors.
In superannuation, any capital gains tax rate on gains realised after 12 months is only 10 per cent compared with up to 24.5 percent on gains realised in personal names. Given that capital gains tax is only payable when assets are sold, this advantage is most significant when assets are bought and sold regularly.
Property investments are generally held for longer, particularly compared with shares. For this reason, as well as the higher annual income including franking credits, borrowing to purchase shares in a super fund can help reduce capital gains tax bills.
Borrowing to purchase investments increases the risk of losses if the investments perform poorly. Investors need to be cautious when contemplating gearing their portfolios. Losses generated in superannuation and pension funds are difficult to recover as are losses in personal names. The one consolation for personal investors is the greater value of carry-forwarded capital losses as an offset to future capital gains.
Considering all the above factors, borrowing in an SMSF has major drawbacks.
Daryl Dixon is executive chairman of Dixon Advisory and can be contacted <a href="https://www.dixon.com.au" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Borrowing to purchase investments increases the risk of losses

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National Parks and Wildlife Service (NPWS) is seeking expressions of interest from experienced operators to lease the restaurant and café at the state-heritage listed Fort Denison.
Fort Denison sits in Sydney Harbour adjacent to the Opera House and Sydney Harbour Bridge with views of the city skyline and harbour.
The site is part of Sydney Harbour National Park.
NPWS director Stuart Schramm expects interest in the EOI will be strong due to the island’s location, unique building and the potential to be involved at the very centre of some of Sydney Harbour’s world-renowned events including New Year’s Eve.
“The purpose of the EOI is to find a lessee able to provide an exceptional visitor experience while protecting the heritage and environmental values of this unique site,” Mr Schramm said.
“Café, restaurant and function proposals will be considered, along with alternative ideas or proposals to utilise the other areas on the island.
“The available lease area on Fort Denison is around 470 square metres and consists of one building, the former barracks building which is divided into a number of smaller rooms suitable for dining and other activities.
“Over recent years a restaurant, café and function space has operated on the Island and the site has been used for weddings, corporate events and special event functions such as New Year’s Eve and Vivid Sydney,” said Schramm.
The Fort was constructed between the 1840s and 1860s and retains its built form and highly significant collection of artefacts.
The EOI process closes 7 June 2017. Inspections of the site will be available, commencing in April, and must be pre-booked.
For more information on the tender, <a href="https://tenders.nsw.gov.au/oeh/?event=public.rft.show&amp;RFTUUID=BD1693A7-C361-872B-ACEC90D8BCFC8B23" target="_blank">click here</a>.
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