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

Joel Robinson

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

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

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

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

First Home Buyers

<html><body>
Guest observation
Australian Senator Nick Xenophon continues his push to allow first-time home buyers to tap into their retirement savings to come up with a mere deposit for a home loan, and a life time of exorbitant fortnightly loan repayments.
What Senator Xenophon utterly fails to address is the reckless lending standards of the Australian banking system.
It is hard to find a banking system in this world willing to lend such large sums of debt to home buyers relative to the incomes they earn. Only instances were in countries such as Ireland prior to the global financial crisis.
Xenophon, in a recent interview on The Panel, said "in the order of $30,000 to $40,000 as a maximum," would be allowed for first-time home buyers to take out of their retirement funds to make a deposit for home.
Recent history suggests that every time Australian regulation allows or gives home buyers access to funds originally void, it has propelled property prices.
Clear examples are the various home owner grants and access to self-managed super funds to invest in property.
When property bubbles pop, housing becomes affordable again and first home buyers would need no artificial assistance beyond their means to purchase a property. Its as simple as that – and Senator Xenophon has no clue the level of risk he is trying to make young Australians take on.
The reason property prices are as high as they are in Australia is due to a chronic oversupply of debt. The abnormal willingness of Australian banks to lend large sums of debt to home buyers is clearly visible in the table below.
<img src="/images/2014/10/20/Picture%206.png" alt="">
Hence Australia is experiencing a credit-fuelled property bubble that Xenophon should address in parliament, rather than trying to prop up a bubble that makes Australia look utterly insane.
You might also want to read: 
<a href="/expert-insights/buying/exclusive-the-experts-on-super-access-for-first-home-buyers">Exclusive: The experts on super access for first home buyers</a>
Lindsay David is a co-founder of clean technology company GreenRigCo and a former strategy &amp; business development consultant. Lindsay holds an MBA from IMD Business School. He is the author of <a href="https://blog.australiaboomtobust.com/" target="_blank">Australia: Boom to Bust</a>.
 
</body></html>

jrichardson-uRX5hFdKfN

Nick Xenophon continues to inflate our property bubble

<html><body>
The August Housing Finance Data from the Australian Bureau of Statistics has found that first home buyers are consistent, but remain at low levels with a new record low of 11.8%.
Finder.com.au delved into the statistics to bring us these five points about what first home buyers are facing in the current market and how they are acting as a response.
<ol>
<li>There was a 10% drop in the number of first home buyer home loans financed in August, from 6,718 in July to 6,055. 
</li>
<li>First home buyer numbers are at almost the same level as a decade ago, despite some capital cities experiencing more than double growth in median house prices and fewer incentives. The actual number of first home buyer home loans is close to the same level as a decade ago. For the 12 months to August 2014, there were 77,881 first home buyer loans financed, compared to 87,577 for the same period 10 years ago, for the year to August 2004. 
</li>
<li>In 2004, the First Home Owner Grant was uncapped so all Australian first home buyers were eligible for the $7000. Compared to today, the government has tightened its incentives, with limitations to new homes and caps, which vary across each state. 
</li>
<li>Interest rates are tipped to rise next year, which could change the equation again. The <a href="https://mail.privatemedia.com.au/owa/redir.aspx?C=lpwVvawQQUacLRFzrVpf2skg7BH4udEIOYknQKfzrbe9EsPmb7W7wmiK7V8m5lGD9-ub2RTtFUQ.&amp;URL=http%3a%2f%2ffinder.com.au">finder.com.au</a> Reserve Bank Survey, which is now the biggest in Australia, found all 28 leading experts and economists are forecasting the cash rate to start rising next year, with an expected gradual rise to 4 percent over the next two-three years. That means home loan repayments for a $300,000 home loan is likely to increase by $300 per month. 
</li>
<li>The national median house value has risen by 72% in the past decade, from $325,000 in 2004 to $559,376 in 2014. The biggest jump was Darwin, with 170% increase over the past decade Median house prices across capital cities
</li>
</ol>
<table style="width: 345px; height: 162px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom"> </td>
<td align="center" valign="middle">
2014
</td>
<td align="center" valign="middle">
2004
</td>
<td align="center" valign="middle">
% Difference
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
Sydney
</td>
<td valign="bottom">
$782,973
</td>
<td valign="bottom" nowrap>
$560,000
</td>
<td valign="bottom">
40%
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
Melbourne
</td>
<td valign="bottom">
$604,110
</td>
<td valign="bottom" nowrap>
$375,000
</td>
<td valign="bottom">
61%
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
Canberra
</td>
<td valign="bottom">
$557,871
</td>
<td valign="bottom" nowrap>
$375,000
</td>
<td valign="bottom">
49%
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
Brisbane
</td>
<td valign="bottom">
$466,980
</td>
<td valign="bottom" nowrap>
$300,000
</td>
<td valign="bottom">
56%
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
Darwin
</td>
<td valign="bottom">
$675,478
</td>
<td valign="bottom" nowrap>
$250,000
</td>
<td valign="bottom">
170%
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
Perth
</td>
<td valign="bottom">
$611,410
</td>
<td valign="bottom" nowrap>
$250,000
</td>
<td valign="bottom">
145%
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
Adelaide
</td>
<td valign="bottom">
$450,444
</td>
<td valign="bottom" nowrap>
$250,000
</td>
<td valign="bottom">
80%
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
Hobart
</td>
<td valign="bottom">
$325,741
</td>
<td valign="bottom" nowrap>
$240,000
</td>
<td valign="bottom">
36%
</td>
</tr>
<tr>
<td valign="bottom">
National average
</td>
<td valign="bottom">
$559,376
</td>
<td valign="bottom">
$325,000
</td>
<td valign="bottom">
72%
</td>
</tr>
</tbody></table>
Source: <a href="https://mail.privatemedia.com.au/owa/redir.aspx?C=lpwVvawQQUacLRFzrVpf2skg7BH4udEIOYknQKfzrbe9EsPmb7W7wmiK7V8m5lGD9-ub2RTtFUQ.&amp;URL=http%3a%2f%2ffinder.com.au">finder.com.au</a> analysis of Australian Property Monitors, Real Estate Institute of Australia
</body></html>

jduke-EHk3XBmHkn

First timers doing it tough: Finder’s top five insights into the current market

<html><body>
First home buyer data continues to be understated.
A point which has been much discussed over the past year: the non-sensical figures being reported as "fact" for levels of first home buyer activity.
Even until relatively recently the Reserve Bank (RBA) was producing stats for first homebuyers which suggested that numbers were abnormally low after a spike caused by home buyer grants.
<img src="/images/2014/10/13/graph1.png" alt="">
Some time ago, however, the Reserve gave up on reporting those figures since it was quite clear to impartial observers that with the withdrawal of first home buyer grants, a significant proportion of first time buyers were not being recorded as such.
For example in this month's Chart Pack, the RBA only reports the following, which is a strong and rising market. With no credible first home buyer data available, it is no longer reported:
<img src="/images/2014/10/13/graph2.gif" alt="">
What gives?
Unfortunately, despite this all being well known about for yonks, this has not stopped commentators from continuing to post the Australian Bureau of Statistics (ABS) figures uncritically, as though to imply that all first home buyers have been frozen out of the housing market by greedy investors.
While there has no doubt been a fair element of this happening, and particularly so at the margin and in inner city locations in Sydney and Melbourne, it never really made sense to suggest that first home buyers were casually sitting out of a rising market with disinterest. History suggests that is unlikely.
Had banks been requiring 20% deposits, thenyes, clearly this would have happened. But, unlike in the UK, lenders have generally not been requiring large deposits at all and high Loan to Value Ratio (LVR) loans have remained widely available (and in any case, outside Sydney, property price growth just hasn't been that strong over recent years), and thus unsurprisingly, first home buyers are still buying.
Look at the reported data for Western Australia, for example! A huge segment of the market has been first timers, between a quarter and a fifth of all buyers.
Listening to the data critically and understanding its message - generally, there have robust property markets, particularly in cities like Sydney - would surely lead you to the right conclusion.
Another point, which I touched on here back in March, is that a significant number of first time buyers in Sydney, have been buying investment properties as their first step on the ladder, thereby never being recorded as first-timers at all. Indeed, I have known from my own client base that it's a cast iron fact that the number of first homebuyers is understated... the real question is only "by how much?"
The problem is that we now have no true way of knowing the quantum of the issue, if indeed there is much of an issue on a national basis. Of course, there are always anecdotes about first homebuyers being outbid by "the Chinese" (i.e. anyone of Asian appearance), and investors do compete with first home buyers for properties (it's a market - that's life) but anecdotes also frequently lead to poor conclusions.
This article continues on the next page. Please click below.
 
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ABS confirms under-reporting
Not at all surprisingly, here is what the ABS reported in its Housing Finance release on Friday:
"A preliminary investigation has been conducted to evaluate the robustness of estimates of loans to first home buyers. In collecting this information, lenders are asked to report all loans to first home buyers. Concerns have been raised that under-reporting could occur if some lenders were only able to accurately report on those buyers receiving a first home buyer grant.
"Most data on first home buyers are collected by the Australian Prudential Regulation Authority (APRA). The investigation indicates that some lenders experience difficulty reporting on loans where the buyer is not receiving a first home buyers grant. Estimates of loans to first home buyers are therefore under review and users are advised to exercise caution in referencing this data.
"The ABS is working with APRA to explore options to make it easier for lenders to report correctly in future. In the meantime, the ABS is further investigating the potential for under reporting first home buyer data and the feasibility, if necessary, of estimating the extent of under reporting and adjusting the first home buyers estimates accordingly. The outcomes from the investigation will be published on the ABS website."
No shocks there.
From Shane Oliver, Chief Economist and Head of Financial Strategy at AMP:
<img src="/images/2014/10/13/AMP.jpg" alt="">
Indeed. As a sometime "first-time investor" (and thus, never being recorded as a "first time buyer") himself many years ago, to his credit Shane was always well aware of this issue.
Hot sectors of the market
Over the past year we have bought a lot of properties for clients in Wollstonecraft, Waverton and other Sydney lower north shore suburbs such as Neutral Bay.
The Sydney north shore market has been absolutely flying in 2014, with some properties recording huge gains.
A run-down wreck at 47a King Street, Wollstonecraft sold yesterday for an astonishing $2,230,000, a monster $830,000 over the reserve price. Meanwhile, 2 bedroom unit 14/4 Gillies Street in Wollstonecraft sold for $780,000, implying an uplift in the market of well over 10 percent in a matter of fewer than 6 months. John Howard will be pleased.
People have tried to torture the Sydney data a little lately to show that the market has been relatively soft (generally, it hasn't), but if you look at what has happened to individual properties, particularly in suburbs such as these, price action has been very hot.
Indeed, gains over the past year have been exceptional on the north shore in suburbs such as Milsons Point, Crows Nest and even Hunters Hill and a number if others, as well as in our old favourite inner west suburb, Erskineville, which notched a yet further 25% of capital growth in the past year. Huge returns.
<img src="/images/2014/10/13/graph4.jpg" alt="">
 
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pwargent-M4siyDbqQY

First home buyer figures are still understated

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Almost 50% of first home buyers from Generation Y want early access to their superannuation or for their employer to salary sacrifice, to fund a deposit, according to <a href="https://www.mozo.com.au">Mozo.com.au</a>’s research.
In a survey undertaken to launch Mozo’s new First Home Buyers Hub, first home buyers were asked how they would prefer to fund their home purchase if given the option.
The majority, at 49%, were prepared to save diligently. If you’re one of these first home buyers, you can see some savings tips over the page.
However, 22% were keen to borrow the full purchase price without a deposit.
Here are the results from Mozo:
<img src="data:image/png;base64,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" alt="">
Mozo director Kirsty Lamont said that it’s interesting to see which option first home buyers would choose when facing increasing property prices.
“It’s clear Gen Y feel it’s unattainable to enter the property market by saving alone, and want the Government to seriously consider superannuation as the solution,” said Lamont.
“Using superannuation to fund property sounds good in theory but it’s not the silver bullet for first homebuyers,” she said.
She noted that first home buyers have to consider stamp duty, mortgage interest, maintenance costs and the lost returns the super could have earned.
“With this seemingly quick fix what’s also lost is the important discipline of regular savings, which can become a harsh reality when the mortgage repayments start,” she warned.
For those interested in Mozo’s savings tips, turn the page.
<hr class="system-pagebreak">
 With almost 50% keen to go the traditional route and save the funds for a deposit, Lamond suggests living off one salary if buying as a couple, or selling off unnecessary assets such as a second car.
Moving in with the parents may also be an option, she says, noting these are temporary choices.
They also suggest:
<ol>
<li>High interest savings accounts 
</li>
<li>Setting a budget 
</li>
<li>Getting a second job 
</li>
<li>Ditching credit cards 
</li>
<li>Selling old items online</li>
</ol>
You can <a href="https://mozo.com.au/first-home-buyers/rip-first-home-saver-accounts-what-now-for-deposit-savers" target="_blank">see more of their tips here</a>.
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Almost a quarter of Gen Y first timers want no deposit home loan

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Looking at the figures in realestateVIEW’s first home buyer report, here are the six numbers that stood out.
The report was a national survey of 1,086 people, of which 44.6% were first home buyers (and those reflected in the figures below).
50.7%
The percentage of first home buyers who have children.
Over a third
The proportion of those who have not bought because they think house prices are too high.
10.7%
The percentage of first home buyers under age 30.
1/10
The proportion of those questioning whether now is the right time to buy.
15.1%
First home buyers refusing to purchase as they can’t afford their ideal location.
76.8%
First home buyers believing that the market will deliver strong or moderate growth over the next five to 10 years.
Source: <a href="https://www.realestateview.com.au/" target="_blank">realestateview.com.au</a>
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Six numbers to know about today’s FHBs

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Some 22% of recent first home buyers across the nation had received help from their parents towards their deposit, according to research conducted by Nielsen for the Domain Group.
Some 14% used equity from their parents' home, and 16% were using inheritance money.
About 32% of buyers were already living with their parents or planning to move back in to assist in the savings while 34% were moving to a cheaper place to rent.
The bigger sacrifices had a half of respondents or higher looking to reduce their grocery expenses; cutting their eating out expenses; reducing entertainment costs; and spending less on clothes.
14% used equity from their parents' home, and 16% were using inheritance money.
When it came to saving, 11% of aspiring first-home buyers were pooling with family or friends to buy property.
About 32% of buyers were already living with their parents or planning to move back in; 34% were moving to a cheaper place to rent; half were looking to reduce their grocery expenses; 63% wanted to cut their eating out expenses; 64% aimed to reduce entertainment costs; and 58% were looking at cutting spending on clothes.
 
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No surprise 22% of first home buyers getting parents' deposit boost

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Paying just $2,500 to get into property seems like a good way to buy in faster, with little cash down, and it has been making headlines this week.

Unsurprisingly, the idea that you can put down just $2,500 on a property purchase had people interested.

High loan to value ratios (<a href="/expert-insights/finance/what-is-an-lvr-investment-terms-explained">LVRs</a>), in the high 90s, have <a href="/expert-insights/investing/low-deposit-loans-lures-offered-to-first-home-buyers">been regularly seen</a>. However, it’s not often that close-to 100% loans are offered without some other sort of security.

Victoria-located HomeFirst, with the tagline “Your first home builder”, are currently running a promotion that notes that $2,500 is all some eligible first home buyers may need to start getting into property ownership.

Of course, the “$2,500 deposit*” comes with a hefty asterisk.

[smartcode_project:default project_id=29358]

This finance offer is available to eligible buyers receiving the first home owners grant.

The terms and conditions explains that you are essentially trying to make up the 5% deposit required - in part through the grant, and in part through a personal loan “which are applied to the land contract, build contract, government charges and lending costs”. The finance is arranged through Western Australia’s The Loan Company.

The idea is to get them into one of their house and land packages across Melbourne.

[smartcode_project:default project_id=3783]

Their “No deposit? No worries” line is also shared with The Loan Company’s other strategic alliance partners, including HomeStart (located in the same building as The Loan Company), whose “No Deposit? No drama” line notes that they have access to “exclusive products which are going to help young Western Australian's into new homes with NO DEPOSIT required.”

The Loan Company notes that many lenders require significant upfront deposits, which can be tricky for those in the rental trap. Their site notes that as part of the BGC Group, if you build your home with a BGC Homebuilder, then you may be eligible for their BGC NewStart No Savings Home Loan, tailor made for first time buyers to “pay zero deposit for the house or land”.

This isn’t an entirely new concept.

In fact the Home Loan Experts already note a number of criteria that you need to be able to fulfill if you want to take out this kind of loan.

This includes:

<ul>
<li>A high income to afford both repayments 
	 </li>
	<li>Little existing debt (car loans, high credit card balances, etc) 
	 </li>
	<li>A clear credit history 
	 </li>
	<li>Some savings to make up any shortfall 
	 </li>
	<li>A proven rental history (preferred)</li>
</ul>
Source: Home Loan Experts

They also note that some lenders of personal loans will not provide this to you if it’s for a home loan. And many lenders require genuine savings (although some accept rent repayment receipts as genuine savings), and so will not accept borrowed money as a deposit. This means that the number of lenders who match up well in this respect are thin on the ground, and you may not be able to get with your lender of choice or get the rate you’ve had your eye on.

Remember, personal loans have higher interest rates. Jumping onto Finder sees the lowest personal loan’s variable interest rate at 9.95%, with the majority around the 13% mark. No small figure, considering home loans are sitting around the 5% mark.

Situations in which this could make sense include those who are expecting to come into a lot of money, to then pay down their loans. However, it’s entirely individual dependent.

What this type of loan can possible do is take place of the increasingly popular ‘guarantor’ concept (where a parent or close relative provides security so that the new buyer can borrow more without having to pay lenders mortgage insurance, or LMI). Not everyone’s parents own property, or have enough equity to assist their children, and not all children want to rely on their parents for a loan.

See over page for what to do if you have little to no savings

<hr class="system-pagebreak">
 

If you have little to no savings at present, and perhaps don’t qualify or want to use the low deposit loan and personal loan combination, then you have a number of options that you can consider.

Here are five things to have on your radar.

Use a guarantor

As previously mentioned, parents can be a helpful option

Save for longer

It might not be what you want to here, but sometimes saving for longer can be the most prudent option. Here are <a href="/expert-insights/buying/13-simple-tips-to-help-first-home-buyers-save-for-a-deposit">13 simple savings tips from Mark Bouris</a>.

LMI

You may be able to get a <a href="/expert-insights/the-three-things-your-home-loan-broker-knows-that-you-dont">high LVR loan with little savings as a result of LMI</a>.

Joint Venture

You could consider <a href="/expert-insights/investing/the-six-keys-to-successful-joint-venturing-of-property-ownership-chan-naylor">buying in with a family member or friend</a>, sharing the deposit or coming up with another arrangement if they have capital but are perhaps missing another part of the equation like serviceability.

Fractional investing

This type of property investing, which <a href="/expert-insights/investing/what-is-fractional-investing-property-investment-terms-explained">allows you to buy a ‘part’ or a ‘share’ of a property</a> acts a little like shares but allows you to buy in as a group of investors.
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A $2,500 deposit can get you into property – but what’s the catch?

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Attending open homes is one of the most fun parts of buying a property.
You get to walk through a house, imagining how you'd decorate and what your future will look like when you live there - and of course, you get to have a stickybeak in someone else's home.
Unfortunately, there's a good deal more to buying a home than just walking through one. Before you get carried away, there are several (significantly less fun) steps you should take to ensure you are financially and mentally prepared to buy a house.
By taking these steps before you start attending open homes, you can save yourself from an emotional purchase, setting you up for a sound investment.
Before you go to an open home:
Find out your borrowing capacity
There's only one way to figure out what kind of property you can afford - find out your borrowing capacity. If you have some money for a deposit saved up, this should make up at least 10% of the total value of your prospective home. If you put down less than 20% of a property's value for a deposit, you'll likely have to pay <a href="/expert-insights/investing/less-than-a-20-deposit-the-8-things-you-need-to-know-about-lenders-mortgage-insurance-lmi">lenders mortgage insurance</a>.
Make sure that you don't equate your total savings with the amount you can afford to deposit on a home. You should always keep some amount of savings as a buffer, in case you lose your job, get sick or face an unexpected expense.
Calculate your potential loan repayments
It's temping to believe that just because you've saved for a deposit, you can afford to buy a house. However, if it's taken you 10 years to scrape together enough money for a deposit, it may not be likely that you'll be able to afford your mortgage repayments.
There are plenty of <a href="/expert-insights/buying/the-10-free-online-resources-every-novice-buyer-should-use">mortgage repayment calculators online</a> - lenders generally provide them to give you an idea of what you can expect to pay each month.
Draw up a budget
The only way to know what you can afford is to come up with a budget detailing your monthly expenses, probably repayments and extra property related costs like rates and bills. Some people are happy to have a vague mental budget, but remember - you can't skip a mortgage repayment the way you might skip depositing some money into your savings account.
Come up with a strategy
Once you have an idea of what you can afford, think about your investment strategy. Are you buying a house to live in for the next decade, or are you planning to live there for a year and then rent it out? Is it important to you to purchase in an area with strong capital growth potential, or would you rather be close to your parents as you raise a family?
Lofty dreams and aspirations are all good, but it's important to set aside some time to think about your goals and how you want to achieve them. If you're interested in developing a property portfolio, speak to friends and family members who have done the same. There are also plenty of property advisers who can give you some advice (which, of course, you'll consider in relation to a lot of other information) about investing in property.
If you're just sick of renting or living with mum but don't think property investment is something you'll want to dedicate a lot of your time to in the future, you may want something different from someone who is hoping to purchase property one of 15.
Take a long view, but leave in some room for spontaneity - you can't predict everything.
Research, research, research
Now that you have your budget and know why you want to buy property, you can start thinking about where you would like to buy. To get an idea of what you can afford, start by looking at the median price of houses or units in your area of choice.
To get more specific, you can look at recently sold properties in that area to see how much, say, a two bedroom townhouse sold for in the past two months.
While researching, you might find that you can't afford a property in your ideal suburb, and will have to move further out. Don't get disheartened - you can still keep an eye out for bargains in your dream neighbourhood while checking out the prospects 2 kilometres down the road.
When you're choosing suburbs to consider, keep in mind the price of properties in the area, its distance to your work or the nearest employment hub and local amenities. It's temping to buy in a suburb with pretty heritage terraces and your favourite restaurant, but available transport, schools, jobs and population growth may be a little more important.
Once you've done all that and have started walking through homes that are open for inspection, the research, strategy and budgeting process isn't over.
While you look for your first home (or your second, or fifth), you'll find that your priorities shifting and limits tested. Suddenly, things that seemed like dealbreakers are acceptable, or vice versa. So remember, even once you get to start having a good stickybeak in other people's homes, you should be revisiting your property strategy.
 
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The steps you should take before even thinking about the open for inspection

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We all know how ridiculous house prices are currently in Sydney, Melbourne and Perth – so how are our children ever going to be able to afford a house in 10 or 20 years?
The answer is that they are not.
Well, not without some serious heartache or help from you.
Yep, Mum and Dad, you aren’t out of it yet. They may have left the nest but they are still going to be dependent on you for a while to get a place of their own, unless they have a fantastic well paying job, have a strong business head on their shoulders, or get help from you.
So why not be smart about the help you are probably going to have to give anyway?
Sure, you can tap into some equity in your home in 20 years and give them a deposit for a house. But that may mean you are now back in debt, when you really shouldn’t be.
Or you may not even be in a financial position to be able to offer them that privilege. You should be looking at your own retirement plan and you probably don’t want to have to factor in this huge financial hurdle.
So why not do it now?
Why not get them into a cheap property right now – in the right location of course – and let it sit there for 10 or 20 years and grow in value. Then once the property is sold, they have a ready-made deposit without you having to dip into your own savings or equity further.
Given that kids are not buying their first home until they are in their late 20s or 30s, doing this when they are in their late teens is not too late.
I would stick to cheaper properties as they tend to pay for themselves, meaning the rent pays the interest on the loan, so any extra payments they make go directly off the principal of the loan.
So let’s work this out a bit more for you.
You have one child, 12 years old. You buy a cheap property for them. Now when I say cheap, there is no reason why you cannot buy a property for under $250,000.
Where are they?
All through regional New South Wales and Victoria, Tasmania (where you can buy for $150,000) and regional South Australia in good areas that, over the long term, will perform well enough to help the kids out.
Sure Sydney and Melbourne will be better locations to invest in generally, but remember: we are trying to build a deposit for the kids over a 10 to 20 year time frame.
You also want properties where the rent pays for the interest on the loan. 
You can invest in higher priced properties but this will depend on the level of help you want to give, your affordability to invest and the number of children you have, so we've have kept it at a budget level for you.
As your gift to them, you fund the deposit (under $30,000) on the property and you pay the council and water rates plus insurance each year at around $2,500. You could use equity to fund the $30,000 if you have this available.
Be wary of the trust structure as land tax may kick in and the savings you may think you are making over 18 years can be outweighed by the cost of selling the property and paying CGT and stamp duty again. Talk to your accountant here first.
Now you have invested in a regional location for $250,000, which rents for $290 per week. Given these are long term investments, it would be advisable to lock in the loan at a good fixed rate whilst they are low.
But don’t keep the property a secret, let the children know what you have done.
Let them get an appreciation of what you have done for them along with knowing that the property is theirs, ready for when they want to buy their own home.
You could even go as far as creating a photo folder, so they can look at the property often. This will help spur their interest in bricks and mortar. Let them file the rental receipts and loan statements into the folder so they have a sense of ownership.
Even better, why not get them to start paying off the principal now?
This article continues on the next page. Please click below to continue.
<hr class="system-pagebreak">
How?
Start teaching them the value of a dollar, so when they start earning pocket money by doing chores, they start to put 50% of their pocket money onto the loan.
Even if its only $2, make sure they put that aside. At first, they will not want to - but after a while, they will insist that they put it onto the loan.
Teach them the effects of compound saving – there are plenty of websites that can help you explain this.
But you must put this money on the loan, don't forget – and show them the effect of their actions on internet banking.The penny may not drop straight away, but it will. When the loan statements come in for the loan, make sure you give them a copy to put in their folder so they can see the benefits of what they are achieving.
You are teaching them good financial practice.
As the rents increase over time, and the loan starts to become more positively geared, put all the extra rent onto the loan, paying down the principal.
You may even find that they start wanting to mow the lawns of the entire street to earn more pocket money.
This desire will increase when they get their first pay packet in their part time job. Same deal: 50% of their pay packet to go towards their loan.
So by the time they get their first full time job, they will be in tune with the right savings attitude and put aside as much as they can towards the loan. Half of their pay would be ideal, but may be unachievable pending their lifestyle at the time. They should be able to put at least 30% aside if they still live at home.
Now until they have a full time job, the principal will reduce very minimally. But now they are working full time, and earning, say, $30,000 per annum. This means they earn $532 net per week.
So putting aside 50% each means they are putting $266 per week onto the loan. That equals $13,832 per annum.
At this rate, the positive gearing is increasing weekly and creating a snow ball effect, getting bigger and bigger as it rolls on.
From here it gets hypothetical. But let's work on one scenario. The kid stays home until they are 25 years old. They increase their income each year by $2,000 gross from 18 years old til 25 years old. Very easily achievable.
In the time before they've reached 18 years of age, they have accumulated $10,000 onto the loan through doing chores at home and working part time.
I have assumed an interest rate at 5% (although it won’t stay there forever, but you will lock in for the first five years).
They stick to their 50% net income savings regime while living at home. The rent on the property increases by $10 every six months = $20 per week per annum. This would be the loan balance after each year.
<ul>
<li>Year 1 = $214,637   (Principal reduces by $25,363 – includes initial $10k)</li>
<li>Year 2 = $195,408   ( by $19,229)</li>
<li>Year 3 = $173,420   (by $21,988)</li>
<li>Year 4 = $148,530   (by $24,890)</li>
<li>Year 5 = $120,641   (by $27,889)</li>
<li>Year 6 = $89,699   (by $30,942)</li>
<li>Year 7 = $52,551   (by $37,148)</li>
</ul>
So as you can see the snow ball effect is created by an increase in income, increase in rent and compound interest savings.
Now I don’t need to show you that if they went on until they were 30 years old, that they would fully own the property. 
And here’s the kicker: If we use a minimal 4% capital growth (this is low) on the property for the 18 years between the ages of 12 and 30, then that $250,000- property is now worth $526,000 – and it cost you around $75,000 ($30,000 initially, plus 18 years of $2,500 holding costs per annum).
Now we’re talking. $500,000 will certainly get them started in the property game.
TODD HUNTER is buyer’s agent, director and location researcher for Sydney-based <a href="https://www.wheregroup.com.au/" target="_blank">wHeregroup</a>.
He reached a personal investment portfolio of 50 properties in 2006 and has also started building an SMSF portfolio.
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thunter-umjjMzoT8b

Cheers Mum and Dad: How you can invest in your child's future

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Whenever anyone needs to know information, it’s likely they head to the internet first.
For novice investors or first home buyers, it can be daunting to come in with little knowledge and needing to start afresh with your research.
We’re always suggesting searching the web and educating yourself first. But where to start?
Property Observer has compiled 10 websites for new buyers to consider:
<ol>
<li>
<a href="https://www.firsthome.gov.au/" target="_blank" style="line-height: 1.3em;">FHOG Online </a>This is a simple website that is incredible useful for Australian first home buyers. Providing a simple drop down box listing each state and territory, clicking one of these will take you to your location’s relevant government branch in charge of first home owner’s grant. For instance, in Victoria this is the State Revenue Office. Each of the websites you are navigated to includes information on grants, how to apply and the concessions that may be available around stamp duty and other costs. 
</li>
<li>
<a href="https://%20http:/realestateview.com.au" target="_blank" style="line-height: 1.3em;">realestateVIEW </a>If you're looking for your first home, you're no doubt familiar with the "buy" section of many different listing websites. The oft-neglected "sold" section as just as important - there, you can get a more realistic idea of how much your dollar can buy (rather than going by the sometimes optimistic price guides attached to homes on the market). There are more than a few listing websites out there, including realestate.com.au, Homely and other state-specific sites. 
</li>
<li>
<a href="https://www.moneysmart.gov.au/managing-your-money/managing-debts/trouble-with-debt/hardship-threshold" target="_blank" style="line-height: 1.3em;">Money Smart </a>Run by the Australian Securities and Investments Commission (ASIC), Money Smart is a really simple to use site that covers everything to do with your financial health. With informative articles on what to do if you’re struggling with your mortgage, how to invest in shares, and even how to choose travel insurance – it’s basically your handbook to staying financially savvy. Their property section isn’t anything to sniff at either. There’s a whole load of information about buying a home and what to expect, as well as investing in property, and you’ll hear from voices you’re likely familiar with already such as Barefoot Investor Scott Pape. There’s also tips on spotting a scam, and guides on getting through major life events, such as having a baby. 
</li>
<li>
<a href="https://home.id.com.au/" target="_blank" style="line-height: 1.3em;">.id (The population experts) </a>Providing information to many local government bodies across Australia, .id (which stands, appropriately, for Informed Decisions) is a one stop shop for demographic information about the suburb you’re considering, from migration statistics, to who actually lives there, and even economic profiles for each individual area. With beautifully presented maps, the latest Census data and forecasts of how the populations are changing, if you want to know about an area, and the areas that will grow, then this is where you should be looking. 
</li>
<li>
<a href="https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/mortgage-calculator" target="_blank" style="line-height: 1.3em;">Mortgage repayment calculators </a>If you think you're ready to buy a house just because you've saved up a deposit, think again. Once you've committed to purchasing a home, you'll have to make mortgage repayments. To get an idea of how much you can expect to pay, most lenders offer calculators where you can input your deposit size, income, household size and monthly expenditure. 
</li>
<li>
<a href="https://www.myrpdata.com/" target="_blank" style="line-height: 1.3em;">Data providers </a>To help you in your search, there are multiple data houses that offer free market information, including suburb medians (to give you an indication of what a house in a certain suburb will cost), vacancy rates (to tell you whether the area's in demand with tenants) and how much previous owners have paid for particular homes. Big data providers include the Australian Bureau of Statistics, SQM Research, RP Data and Residex. 
</li>
<li>
<a href="https://www.asic.gov.au/" target="_blank" style="line-height: 1.3em;">Regulatory bodies </a>State departments of Fair Trading or Consumer Affairs exist to provide you with information about products, businesses, providers and service-people. If you're contracting a builder, using an agent or engaging any third party in the search for your home, it's not a bad idea to search for their name on a Fair Trading website or the ASIC website. If they've done something dodgy enough to warrant a warning to consumers from a regulatory body, you'll know to steer clear. <a href="https://propertycalculator.net" target="_blank" style="line-height: 1.3em;"></a>
</li>
<li>
<a href="https://propertycalculator.net" target="_blank" style="line-height: 1.3em;">Property Calculator </a>Do you want to know rental yields, cash flow, return on investment and a number of other figures quickly, easily and in one place? Property Calculator is the tool for you. It’s simple, a basic layout, and does what it says on the box without any complicated embellishments. 
</li>
<li>
<a href="https://www.houzz.com.au/?irb=1" target="_blank" style="line-height: 1.3em;">Houzz </a>If you love design or The Block, or perhaps you’re just looking for some interior inspiration for your new pad, Houzz is the place for you. With design ideas from top creative thinkers, articles, and all the lust-worthy property pictures you can imagine, it also offers you the ability to keep things in albums, much like Pinterest. You can keep different room styles and storage plans for later reference in your “Ideabooks” as well as ask for advice. It’s all a bit beautiful. 
</li>
<li>
<a href="https://realas.com/home/" target="_blank" style="line-height: 1.3em;">realAs </a>The newly launched app realAs promises to predict the ultimate selling price of homes currently on the market. While the young venture still needs some time to prove itself, making 64% of its predictions within 5% of the end sale price isn't a bad start. If the online valuation tool is as accurate as it claims to be, it could end up saving you a lot of time and help you get a better idea of how far you can stretch your budget.
</li>
</ol>
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