<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.

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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

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Searching for an investment property or a home loan was not stressful for 76.3% of those surveyed in RAMS’ latest First Time Investor Survey 2014.
However a quarter of respondents said that they still don’t know where to start. There were also a number of pet peeves listed by new buyers.
In particular, the RAMS survey found three common property descriptions that first time buyers detested so much, that they would apparently seek legislative action to never see again.
The top three property descriptions that those surveyed wanted “outlawed”:
<ul>
<li>"Hot Property"</li>
<li>"Water Glimpses"</li>
<li>"Renovator’s Dream"</li>
</ul>
Source: RAMS.
According to the survey results, first time investors initially turn to real estate websites (38%) before trying a friend, family member or colleague (24%) and then looking to a real estate agent (23%) for assistance in finding their first investment.
The survey uncovered a majority of first time investors (51%) said that they would prefer researching their first investment property to having dinner with the in-laws (15.4%) or completing a tax return (11.2%).
A majority noted that they were looking for somewhere in a quiet neighbourhood, new appliances and fittings and close to public transport. The main purposes of the investment was potential capital group, followed by current low interest rates and tax benefits.
RAMS CEO Martine Jager said that first time investors are becoming savvier and increasingly using the resources available. However, she noted that face to face expert advice is still one of the most valuable tools.
Despite the lack of stress in searching for a property, 43% noted that rising interest rates are a concern and their long-term ability to pay for the property, as well as bad property management, were areas of worry.
“Despite first time investors being wary of rising interest rates, they do not appear to be overly sensitive to such increases, with their intention to invest only deterred by larger rate rises,” Jager said.
“The survey results showed that interest rates would have to rise by 2% before first time investors would start to rethink their strategy – which means, given recent fixed interest rate cuts by some lenders, even if the rate direction changes suddenly, there could still be at least a year of strong demand left in the Australian property market,” she explained.
“The survey results show that while investing in property is not a taxing exercise, there are still aspects of the search and buying process that are unappealing to buyers.
“It’s not surprising to find that most first time investors cite exaggerations with property descriptions as their biggest pet peeve when trying the find the right property to invest in. After all, buying a property is not just a financial commitment it is also a big investment of your time, and misleading listings can be discouraging and frustrating.”
Jager noted that first timers were mainly looking for cheaper entry points into the market.
“For many, this means buying a modest property in more affordable suburban areas which have good capital growth potential.” 
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The three property descriptions that first time investors want "outlawed"

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PARTNER CONTENT
In discussions regarding buying property the question of what type of property to purchase invariably comes up. People have predispositions towards one type or another, although generally it’s toward a house. But in today’s property market, is a house a smarter option over a strata-titled property such as an apartment or townhouse?
The two main objections encountered regarding strata property come down to not wanting to pay strata fees (or levies), and land accruing value faster for capital growth. The concern regarding strata fees could be considered as understandable, until you look into what they actually are.
Strata fees cover the daily costs and maintenance of the common property within the complex. This includes your parking, gardens, stairs and lifts, exterior walls and recreational facilities (pool, spa etc.), amongst others. It also covers the insurances and rates for these areas, as well as any electricity and water costs. A sometimes unknown component of a strata fee is the compulsory savings plan, also known as the sinking fund.
The sinking fund is there for any expected, and unexpected, repairs within the complex’s common areas. This could range from new carpets in the entry foyer, to damage as a result of structural movement. Overall, the components that form strata fees can generally be aligned to similar costs involved with holding non-strata titled property, sometimes less due to the number of owners contributing to the potential expense.
With comparative expenses regarding ownership costs, the issue of land having greater capital growth should be looked at. Unlike apartments, houses generally have useable land that contributes towards rising values. Established dwellings in good suburbs are fetching higher prices, however with block sizes shrinking nationally, the likelihood of a new house creating growth by being improved (subdivided, developed or renovated) is growing slim. This restriction of use, as well as a social shift in lifestyle choice, is changing the way houses are being viewed. In fact, <a href="https://www.rpdata.com/research/monthly_indices">RP Data</a>’s Home Value Index shows that apartments, rather than houses, have experienced higher growth in the past 12 months in all major cities except Sydney, Melbourne and Darwin.
Strata titled properties are also generally located closer to commercial and retail centres, and include amenities that are not found in comparably priced houses. Rather than leaning toward a specific property type, consider whether that type of property is suitable for the demographic of the area. Each location is going to have a type that will appeal and support levels of growth better than others, especially if there is an employment node within the area that also supports that demographic. In some areas a house may be suitable, in others a townhouse or an apartment.
Overall, don’t rule out apartments or strata-titled properties despite your predisposition towards a house. Because the next generation of buyers is also here: The hard-working, time-poor, social and inter-connected Gen-Ys that want to be near cafés, transport and amenities are looking to buy. They want to continue the lifestyle they lead and to them, that means strata living.
ANDREW HERBERT is partner of <a href="https://myfirstplace.com.au/Property-Observer" target="_blank">My First Place</a>.
My First Place is offering a buyers club to support buyers in finding their property.
For First Home Buyers there’s a package worth $4,200 that covers solicitor fees, mortgage application fees, building inspection, insurance and utilities.
For investors the package is worth $3,350 and it covers solicitor fees, mortgage application fees, building inspection, landlord insurance and a depreciation schedule.
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po-LsXgBTHBmX

House v apartment: What's the best option for your first investment?

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Real estate experts, commentators and industry members are regularly listened to carefully for tips and information on where to invest next and how the market is performing, among other advice.
However, every expert had to start somewhere. Property Observer asked a number of industry experts about their first homes, where they were, when they bought them and why. The results, which span across Australia, are a fascinating insight into their first step on the property ladder.
TERRY RYDER - <a href="https://www.Hotspotting.com.au" target="_blank">Hotspotting.com.au</a> <img src="/images/authors/fullbody/Terry-Ryder.png" alt="" style="float: right;">
<ul>
<li>Location: <a href="/news">Bundamba</a> in Ipswich City in the south-west of the Brisbane metropolitan area.</li>
<li>Price purchased for: $25,000</li>
<li>Year purchased: 1981</li>
</ul>
 Do you still own the property? 
No, I sold it in 1984 for $40,000 (which was 60% growth in three years, proving that ugly real estate in downmarket suburbs can show exceptional capital growth). I then bought a house in the eastern suburbs of Brisbane for $50,000, which I later sold for $110,000.
Why did you buy that property? 
It was what I could afford at the time: a small weatherboard box on a noisy road in a fairly dismal suburb, but it was affordable and it was close to a commuter train station.
Did you renovate?
No, no renovations.
Why did you want to buy? 
I was fed up with being mistreated by landlords, so I decided to buy my own place.
TODD HUNTER - <a href="https://www.wheregroup.com.au/" target="_blank">wHeregroup<img src="/images/authors/fullbody/hunter-profile-2.png" alt="" style="float: right;"></a>
<ul>
<li>Location: <a href="/news">Cronulla</a>, Sydney NSW</li>
<li>Price purchased for: $112,000</li>
<li>Year purchased: 1993</li>
</ul>
 Do you still own the property? 
No I don't, it sold for $256,000
Why did you buy that property? 
It was my first home, a one bedroom unit very close to the water with a tandem car space. It started a love for property for me that is still there.
Did you renovate? 
Paint and carpets only.
Why did you want to buy? 
It was my first home and my parents instilled the property bug in me early as I purchased when I was 19 (after much saving for the 20% deposit is set up costs with my girlfriend... There was no first home owners grant then either).
ANDREW WILSON - <a href="https://apm.com.au/" target="_blank">Australian Property Monitors<img src="/images/authors/fullbody/Andrew-Wilson.png" alt="" style="float: right;"></a>
<ul>
<li>Location: <a href="/news">Camberwell</a>, Victoria</li>
<li>Price purchased for: $95,000</li>
<li>Year purchased: 1986</li>
</ul>
 Do you still own the property? 
No. Good growth as purchased at bottom of the cycle before the 1988 boom.
Why did you buy that property? 
Great location, big block in a sleeper street - but in original condition (plenty of upside potential).
Did you renovate? 
I completely renovated and rebuilt.
Why did you want to buy? 
I’m Australian – the aspiration for home ownership is in our DNA.
MICHELLE COLEMAN - <a href="https://www.wfinancial.com.au/" target="_blank">W Financial<img src="/images/authors/fullbody/coleman-uly24-profile.png" alt="" style="float: right;"></a>
<ul>
<li>Location: <a href="/news">Quinns Rock</a>, WA</li>
<li>Price purchased for: H&amp;L for $95,000</li>
<li>Year purchased: 1995</li>
</ul>
 Do you still own the property? 
No, I bought it with my partner at the time.  He does actually still own the property and it is estimated to be now worth around $550,000 to $600,000.
Why did you buy that property? 
It was what we thought we could afford at the time (that was closest to the beach of course), but also we thought the area would have good growth.
Now I look back with all my knowledge with finance and investing and wonder how we could have made our decision that way!
Did you renovate? 
We had to do some landscaping as it was house and land.  
At one point I really wanted a spa - it wasn't ever fully installed (when I was there) but I'd sit in it anyway.
We didn't have fences though at the time, so random people in the neighbourhood would wander by to have a chat.
Why did you want to buy? 
It's the great Australian dream; I wanted that like everyone does. That property didn't quite go to plan, but it did give me an appetite that has made me the investor I am today.
Article continues on next page. Please click below.
<hr class="system-pagebreak">
BRAD BEER - <a href="https://www.bmtqs.com.au/" target="_blank">BMT<img src="/images/2014/08/15/Bradley-beer-aug-15-profile.png" alt="" style="float: right;"></a>
<ul>
<li>Location: The property is located slightly to the west of the main city of Newcastle in a suburb called <a href="/news">Georgetown</a>, NSW. It’s quite close to the Newcastle Knights stadium and the University of Newcastle, right near a bus stop and 300 metre from a Coles.</li>
<li>Price purchased for: The property is a four bedroom, one and a half bathroom house on 400 odd square metres of land with a big shed in the rear. I purchased it for $170,000. The current rental of the property is around $440 per week.</li>
<li>Year purchased: 2002</li>
</ul>
Do you still own the property? 
I still own the property, which has been well-performing since the day I purchased it. In fact, I’m generally a believer in not selling property, particularly when it has demonstrated a great deal of growth. I haven’t actually sold a single house to date.
Why did you buy that property?
I actually went to Newcastle University myself, so I was familiar with the area which I still think is quite a good area. I wanted to invest into property and someone I knew who was buying property was looking at the area and brought it to my attention.
It looked pretty rough when I bought it, so we negotiated hard because it was originally listed at $198,000. I also liked that it had a sizeable shed, because I thought I might have been able to use it in some way for storage purposes – every man needs a good shed in his life!
Did you renovate? 
I renovated it a couple of different times actually. When I bought it in 2002, I basically spent the first few months on a pretty decent internal renovation. I pulled the kitchen apart and discovered that it was full of cockroaches, it was an absolute mess, even the bathroom was a mess – it was all in pretty bad shape. So I got stuck into it and put together a new kitchen and a new bathroom.
I also had to put in new flooring and piers, and completely reline the bathroom. I polished floor boards, I painted, I basically just spruced up the whole of the inside. Even though I didn’t change any of the internal walls there was still a fair bit of work to be done, but I probably only spent about $20,000 because I did just about all the work myself.
I worked nights and weekends in the middle of winter in the freezing cold, but then about six months later we did a re-evaluation and it came in at about $240,000. This was great because I hadn’t done any exterior renovations by that point, so it had still gone up even though it still looked pretty bad from outside. There was probably also a bit of market movement around that time which would have helped, so I was able to leverage into my second property pretty quickly.
Then in about 2005, I did a fairly extensive external renovation also. It had those old forever boards on it, which I ripped off to put new weatherboards around the whole of the house. I painted the roof and did a fair bit of landscaping, adding in a picket fence, a new driveway – just basically renovated the whole of the exterior. In 2007 I revalued it at $425,000.
I’m still going on it. About three years ago I put on a new roof because it was old and needed replacing. It probably needed replacing when I bought it actually, but I’d just patched it up and put up with it for a while until I could do it properly.
Why did you want to buy?
I’d been at BMT for about three or four years by that point, and had the opportunity to learn a great deal about investing in property. I’d also been to a number of different property seminars then, and have been to a lot more since, and believed I wanted to invest into property based on what I’d learnt about investing in property to generate wealth. I’d also saved up my deposit by then and so was just ready to go.
Essentially, being at BMT and being surrounded by investors all the time, learning about investing in property and the fundamental ways to do that – I decided: right, now it’s my turn.
VICTOR KUMAR - <a href="https://www.rightpropertygroup.com.au/" target="_blank">Right Property Group<img src="/images/2014/08/15/kumar-aug-15-profile.png" alt="" style="float: right;"></a>
First home:
<ul>
<li>Location: <a href="/news">Currans Hill</a>, NSW</li>
<li>Price purchased for: $137,000</li>
<li>Year purchased: 1998</li>
</ul>
 Do you still own the property? 
Yes. It was valued by the bank last week at $420,000. I lived in this untill 2006 and it is currently rented at $410 per week.
Did you renovate?
Removed carpets and put in floating floorboards because of my allergies. Also starting painting the trims at one stage, following a Peter Spanns renovation seminar in 1999, they are still half complete! During tenancy the only works I have done has been to replace a powerpoint... having said that I will now probably jinx myself!
First investment property:
<ul>
<li>Location: <a href="/news">Campbelltown</a>, NSW</li>
<li>Price purchased for: $70,000 (two-bedroom unit)</li>
<li>Year purchased: 1999</li>
</ul>
 Do you still own the property? 
No, I sold it in 2001 to fund the business startup for $185,000.
On purchase it was rented for $130 per week, on sale it was rented for $230 per week with the same tenant. Under the current market value it would be around $290,000.
I wish I hadn't sold and had bought more of these units back then!
MARGARET LOMAS - <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank">Destiny</a><img src="/images/authors/fullbody/Margaret-Lomas3.png" style="float: right;">
My first investment property, a one-bedroom unit. It had a green shag pile carpet and a weird T-shaped lounge, which we sectioned off with a wall to make a second bedroom.
<ul>
<li>Location: <a href="/news">Cabramatta</a>, New South Wales</li>
<li>Price purchased for: $28,000</li>
<li>
Year purchased: 1980 
</li>
</ul>
Do you still own the property? 
Back then no one understood leveraging.  I sold it to buy a three-bedroom townhouse in <a href="/news">Macquarie Fields</a>. In the two years we owned it, it grew by $6,000. That's probably pretty good!
Why did you buy that property?
My dad said we had to get into the property market, I was 20 and engaged.  It was the only area we could afford.
Did you renovate? 
We painted it, and added a shower screen to the tiny bath but that was all.
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Where the experts bought their first homes

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Buying your first property can be nerve-wracking and in the public arena of an auction, even more so.
While purchasing a home is a big deal, it doesn't need to be the source of sleepless nights and endless stress. Here's our step by step guide to buying a property at auction.
<ol>
<li>
Attend auctions - lots of them If you thought researching your first home was all about finding your dream home, in your dream area, within your dream budget, you were wrong. You also need to know how to go about buying your dream property.  There are only so many articles on how to bid at auction you can read (even if they're <a href="/expert-insights/buying/twelve-tips-for-bidding-at-property-auctions">really good ones</a>).  What you really need is to go out and watch some auctions. Not one or two, but many - at least a dozen. Get a feeling of what the buyers are in your prospective area. Are they all nervous first home buyers making it on their own, like you? Downsizers? Well dressed hipsters bidding on their first homes, with their mothers standing slightly behind them, to the left?  Take note of the bidders - they're your competition. Get familiar with the terminology - do you know what a reserve is? A vendor bid? Did you realise that the reserve can change?  Viewing lots of auctions will also allow you to see how far prices tend to go above the price guide, if they do. What looks like a $400,000 property on a listing website might look like a $600,000 one to some on auction day. Use the opportunity different styles of various auctioneers, too. 
</li>
<li>Set your limit It's good to know well in advance how much you can afford to pay on auction day. There are lots of online calculators provided by lenders that will help you determine how much you can afford to borrow and pay for your first home. Remember, when it comes to budgeting for a big purchase, it pays to be prudent - keep in mind future career changes and any babies that might be on the way. It's not a bad idea to build a small buffer into your maximum - don't lose out on your dream property because of a bid that's $1,000 over your "limit".  Keep an eye on the <a href="/expert-insights/buying/what-does-a-home-really-cost-for-a-first-time-buyer">hidden costs you might not have factored in</a> - there's more to purchase costs than just the deposit.  </li>
<li>
Identify your potential home Once you've done your research, figured out where you can afford, driven around lots of suburbs and probably adjusted your expectations a little, you've come across a home you really love at an open for inspection. Chat to the real estate agent and keep in contact. If there isn't a price guide listed on the advertising material, ask them for an indication of what the vendor wants. Go to subsequent open for inspections and arrange some private inspections too (more on that later). 
</li>
<li>
Secure your finance. Unfortunately, there is occasionally a discrepancy between what you think you can afford and what your lender thinks you can afford, after they've had a look at the property in question, your income and your credit history. Before putting in a bid at auction, you'll need to know how you're going to pay for your new house. No finance, no purchase, and when you place the winning bid, you'll need to put down a deposit - there's no backing out, unless there's a built in cooling off period (which is best avoided and may require you forfeiting part of your deposit). Decide on <a href="/expert-insights/buying/getting-your-first-loan-heres-what-you-need-to-know">the kind of loan</a> you want and<a href="/expert-insights/finance/a-quick-guide-to-home-loan-pre-approval"> get pre-approval for your loan</a> from the bank. While this isn't a guarantee that you'll get a loan, it's about as close as you can get. And while you're at the bank, get a cheque book. You'll need one to put down your deposit. 
</li>
<li>
Order an inspection. About a week out from the auction day, you should order a building inspection for the house. Just because it has four walls doesn't mean it's stable - there could be issues with the roofing, asbestos or structural damage. An independent <a href="/expert-insights/investing/the-importance-of-building-inspections-in-property-transactions">building inspector should be able to spot the things you can't</a>, and hopefully can save you from ending up with a dud.  Make sure you <a href="/news/how-to-choose-a-building-and-pest-inspector">choose a building inspector who is independent and reputable</a>. While you're at it, ordering a pest inspection can also be worthwhile - pest inspectors might spot termite damage that will cost you a lot of money down the track. 
</li>
<li>
Have a lawyer or conveyancer look over your contract. Seeing as this will probably be the first time you've seen a property contract, it's best to bring in the experts (actually, we recommend always getting a lawyer to look over your contract.) 
</li>
<li>Figure out your strategy Now you <a href="/news/understanding-auction-talk-patrick-bright">know your auction lingo</a>, it's time to prepare yourself on how and when you will bid. Part of this may be putting in an offer before the day. However, when you get to the auction, should you dive in with the early slam-dunk all-cards-on-the-table bid, or wait until close to the bidding has stopped? Much of this will become clear to you as you watch other bidders in action in step one. However, it'll make you feel that little bit better if you know when you'll be likely to bid and what the plan is if there are quite a few other keen bidders. If you're not entirely confident, you <a href="/expert-insights/investing/engaging-a-buyers-agent-will-level-the-playing-field">may decide to hire a buyer's agent</a> to act on your behalf, some of whom employ a number of strategic tactics they have learned over years of bidding at auction, such as bidding in unusual increments.</li>
</ol>
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jrichardson-uRX5hFdKfN

Buying your first property at auction: A step by step guide

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One of the biggest hurdles for many prospective first time home buyers and first time investors is affording the initial deposit.
While those who already own a home or asset have the ability to either sell or use any equity they have built up, novice investors will be required to stump up a sum of money to get their foot onto the property ladder.
However, short of "buying a cup of coffee less a week" (which is real 'advice' doled out to first timers on a regular basis), what are the actual savings tips that will let you get ahead?
Here are some collected tips on how to boost your savings, push up that deposit and see yourself purchasing a property sooner than expected. There are two basic areas to improve here – earning more or spending less.
Earn
<ul>
<li>Sell unwanted goods</li>
</ul>
If you're an average person in your 20s or 30s you will likely have accumulated a lot of unwanted "stuff". That is, clothes that you don't wear (often with tags attached for the shopaholics), outdated mobile phones, laptops and other electronics, and gifts you never wanted or never used. A bit of time and effort online can quickly turn these into extra space in your current home and cash in your pocket. Websites such as eBay and Gumtree require you doing very little other than uploading a description and some decent photographs. Also try Twitter and Facebook shout-outs.
<ul>
<li>Use your skills wisely</li>
</ul>
While you may not be able to take on that second job, you can still use your skills for some cash. Whether it's writing a freelance article, or creating art to sell online, there are some ways to have sideline projects. Former Property Observer journalist Nicola Trotman has <a href="https://luluscandles.com/" target="_blank">Lulu's Candles</a> - an online vegan soy candle shop - and a number of staff write freelance articles.
You may also be able to fix computer problems, or even teach people (many Community Colleges are looking for people to teach short courses and the demand for private tutors rarely eases off) or perhaps you can bake cakes to sell them to friends or at stalls. Online sites such as etsy.com can be really helpful, as can different markets that often allow you to set up a stall for a small fee. Remember to use flyers in your local area to advertise your services.
<ul>
<li>Do odd jobs</li>
</ul>
While it can be tedious to go from person to person to find out if there's anyone who might be willing to part with a bit of money in return for someone to do the run to the shops, there's now an online solution. The website <a href="https://oneshift.com.au/" target="_blank">One Shift</a> is getting even more popular as a way to get quick short-term employment for a little bit of extra cash.
<ul>
<li>Rent out your space</li>
</ul>
If you have a spare room (or garage space), or you could bring another tenant into your rental to share costs, then either of these can be a practical temporary option.
Tips on how you can save money by spending less are on the next page.
<hr class="system-pagebreak">
Spend less 
<ul>
<li>Home brand/basic brand everything</li>
</ul>
From medicine to baked beans, and from iPods to clothes, there's a generic brand available. If you're in savings mode then you should take full advantage of these cheaper alternatives. While they may not be quite as nice, it's rare that the extra cost actually translates into the product truly being that much better. Make sure you weigh the pros and cons up first. 
<ul>
<li>Keep a coin jar </li>
</ul>
Take out your cash from the ATM (and avoid those pesky $2+ charges at 'other' ATMs) for the week and spend no more than you have. Try to leave the credit and EFTPOS cards at home when possible and limit online buying by having a separate card and separate account where you can limit the money that you put in. Keep access to funds at a distance and provide obstacles, and see yourself spend less.
<ul>
<li>Cancel your unnecessary costs</li>
</ul>
Do you really use that gym subscription? Be honest with yourself about what services you are using and what you can cancel. If having a gym membership is important to you, then keep it, but if you're going once a fortnight then question the cost. Also consider your memberships to organisations, costly subscriptions to titles you may not read and other money drainers. See if there's a way you can minimise these costs as well - are you on any plans that you can bring down a level (or increase, if you're going over every month)? 
<ul>
<li>Get gifts you need</li>
</ul>
If your birthday is coming up, ask for things you'll actually use. Maybe get them to pay for your gym subscription or thr sunglasses that you've needed instead.
<ul>
<li>Shop around</li>
</ul>
You likely hear this one all the time, but if you can give your shipping trip a bit of extra time it'll be worth it. Most shopping centres have a Woolworths and a Coles, so pick up both brochures and look for deals. Keep an eye out for reduced food, and when it gets reduced through the day. Remember to consider secondhand goods and books as well - just as we mentioned selling your secondhand items above, you can also pick up the things you need far more cheaply on these sites.
<ul>
<li>Rent or borrow, don't buy</li>
</ul>
Your library, DVD rental (or iTunes rental) and your acquaintances can be used to good effect when saving money. Instead of buying that DVD you'll watch once for $25, go and pick up a $5 rental. Sign up to your library for books, CDs and DVDs (they also have magazine sections and regularly host free events). And ask friends when you need a bigger item. Perhaps you need a steam cleaner or you find yourself needing an unusual kitchen appliance - ask around and see if anyone can lend you one for the task. Consider sharing items such as books and magazines among friends as well - circulating these luxury items can save you a significant amount in the long term.
<ul>
<li>Use less or use what you buy completely</li>
</ul>
It sounds hard, but it's often just a case of looking a little closer at how you go about your day. If you have food leftovers, see what you can feed to your animals (check for allergens and unhealthy items first - such as avocado, dairy, raisins and more being dangerous for dogs). You might be able to turn some of the food into "other dishes", such as turning a curry one night running into a pie the second night, or turning spaghetti bolognaise sauce into a lasagna. However, these tips do not just apply to food - have a look at your other costs too. Consider using a two-in-one shampoo/conditioner, or toothpaste/mouthwash (a new product we've seen) that can often cost substantially less than buying and using both.
Some further tips and suggestions are on the next page. Please click below. 
<hr class="system-pagebreak">
Extra suggestions
<ul>
<li>Make the most of rewards points</li>
</ul>
Keep an eye on rewards cards and free store cards that can get you access to deals and offers. Ensure there aren't any excess costs to sign up and be a 'member' that may outweigh the benefits. Ensure you only use coupons when you were already intending to buy the item (or when it turns out to be the more economical alternative). There are a number of decent loyalty cards that can provide some significant benefits.
<ul>
<li>Track your spending using an app</li>
</ul>
Keeping an eye on what you're spending and where can be half the struggle. Luckily, if you're a smart phone user, then you can just download an app that will help you keep an eye on it. Consider MoneySmart if you're unsure where to start. For non-smartphone users, a simple written diary of costs and every time you purchase an item will do just as well - as will an Excel spreadsheet that you can update.
<ul>
<li>Check if you're using the best savings account</li>
</ul>
You may be on an interest rate that's low, or an account that charges excess fees when you take money out. Ensure you know the fine print for your accounts, and always check with your banking institution to see if there's a product that may better fit your personal situation. Many have multiple savings-style accounts.
<ul>
<li>Look towards DIY first when you need to fix something</li>
</ul>
You'd be surprised how many YouTube videos and online tutorials there are explaining how to fix some of the most niche items. We've heard of people using online tutorials to build fireplaces, fix car windows and more. While you want to make sure it's not another example of a "false economy" and that you will actually save money (and won't put yourself in danger), it's always worth seeing if you can reduce labour charges by doing it yourself.
<ul>
<li>Check your tax</li>
</ul>
Are you claiming all the exemptions you are entitled to? Sometimes not using an accountant is truly a false economy, and you really want to make sure you maximise your tax return. See the <a href="https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/" target="_blank">claimable deductions by profession</a> to ensure you have put everything on the list. Keep your receipts in order or recorded as you go.
<ul>
<li>Don't miss out on special offers</li>
</ul>
If you are looking to buy something online, the first thing to do is type the name of the shop or item into Google and search for 'coupons', 'promo codes' and 'offers' to see if anything comes up. Once or twice out of 10 you might net yourself a 10% decrease, an added bonus or even a free ticket. You might also want to sign up for free online newsletters (get yourself a 'dummy' email to send these to) for comedy clubs and different events and you'll often see significant reductions being offered to online members last minute. Just be wary that you don't buy anything you weren't initially intending to due to seeing the advertisement.
<ul>
<li>Don't forget to argue</li>
</ul>
If you have an unfair fine - put in a call (and take photos for evidence). They can only say no. And if you have done the wrong thing, pay it on time before it gets out of hand.
YOU MIGHT ALSO WANT TO READ <a href="/expert-insights/finance/getting-a-bigger-home-loan-seven-tips-to-boost-your-borrowing-power">Seven tips to boosting your borrowing power</a>
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Mastering your deposit: Tips to boost your savings

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Hi Margaret,
I am buying my first home at 30, having rented before this with a friend.
I have got about $50,000 saved as a deposit and some other money set aside for costs, and have been given the option to either buy on my own or with the friend I’m renting with.
What are the benefits of buying with him and should I be considering it?
Thanks,
G.
Margaret's answer on the next page. Please click below.
<hr class="system-pagebreak">
Dear G,
I am often asked by many investors whether or not they should be buying property with a friend, a sibling or with a group of other investors.  It’s a common thing for people to buy property with a spouse, and if you think about that, you are already taking the good with the bad when it comes to a life partner. Sharing real estate is only another facet in the complex fabric of life.
When it comes to a friend, you could be tossing up buying together for a number of reasons.  It could be that you can’t afford to go alone, or can’t save enough of a deposit.  Another reason may be that you feel more confident buying with someone else than you would alone.  Whatever the reason, it might seem like a good idea at the time, but like a lot of good ideas, it can all come apart later on.
If you are tossing up whether or not to buy with someone who is not your spouse or life partner, it can help if you go in with your eyes wide open. 
Here are just a few of the things you must know:
<ol>
<li>
You can trust yourself, but.... You probably know that you can afford to meet the repayments, and that in times of stress you have enough money to be able to see through until the good times.  You know that your job is secure, and so you will always have a steady income flow.  But can you be as sure about the person you are planning to buy with? It is easier when it is your spouse – when you get married or choose to live together it is always for better or worse.  And it may seem easy when we are talking about a brother or a sister, a mum or dad or son or daughter (although often that is not the case). However, when it comes to friends you can never be sure how much of what they are telling you is actually true.  It’s amazing how quickly someone’s circumstances can change, and the last thing you need is to be left holding all of the commitments on a property whose title you only half own.  
</li>
<li>
Difficult financing arrangements Where all parties are bringing in the same amount of money as a cash deposit, and a joint loan, secured by only the property in question (the one being purchased) is accessed, this may remain relatively simple. All parties pay their required portion of the debt, receive their share of the income and complete separate tax returns claiming their own tax deductions. Where differing amounts are provided by each person, or where the other party may be borrowing against the equity they have in another property and bringing in their deposit via another loan from elsewhere, things get tricky. All bills will then need to be divided up according to the original allocation and the tile will need to reflect the different proportions of ownership. The risk increases too, if one party is using a loan for their deposit – it creates a higher risk of that person not being able to manage their repayments. It is useful to note here also that, when you sign mortgage documents for a debt where another party is involved, you become jointly, and severally, responsible for the repayment of that debt.  If the other party takes off to Rio, you cannot call your bank and offer to repay only your half, or to keep repayments on only your half going.  You become responsible for the entire debt, while at law you still only own half (or your share) of the property. 
</li>
<li>
What’s yours is mine – including all your debt! Since you become jointly and severally responsible for any loan you take out with other people, the commitment for the entire loan, rather than half of it, may be considered when establishing your serviceability with a bank.  So, you may have a loan of $300,000 with two other people, and your share is $100,000, but a bank may consider that you have a commitment to the entire $300,000. Conversely that same lender will only consider the income on your third of the property, since you only own a one third share. This may limit your ability to borrow additional funds to undertake more borrowing to buy investments in your name only, and could hamper your ultimate progress. 
</li>
<li>
Using the growing equity Imagine if the equity in your shared property grew so quickly that you were ready to buy again soon – but you decided that you did not want to buy with that person again. Unless you are prepared to liquidate, lose a fair portion in capital gains tax and start again, unfortunately you may have difficulty using this equity to invest further. 
</li>
<li>
Time to get out – but do you both agree? Your life suddenly changes.  You meet the perfect partner and want to move to the country, you are offered a divine job overseas for 20 years, or you simply want to cash out and take a Harley around route 66.  If your timing does not coincide exactly with that of your fellow property owner, you may not be able to take advantage of this great new opportunity because you cannot realise your assets.  Unless you are both ready to make a major change, owning property with others can often prevent you from taking on a great opportunity which may come along out of the blue. 
</li>
<li>
When you are doing all the work. Owning a property is not without its hard work.  If you suddenly find yourself doing all the work, it may seem like an unfair thing that you are only accessing your title’s share of any growing equity.  You may believe you are entitled to a greater share, but at law, this is not possible.  You cannot really know the capacity of another person to do their bit until after the deed is done, and by then it may be too late.
</li>
</ol>
In summary:
If there is absolutely no other way for you to get into the market than to do it with another, non spouse person, then at least sign a partnership agreement at the commencement of the deal in which you cover every possible eventuality and agree to a procedure to manage it. Going in with your eyes open may prevent a major disaster in the long-term. So will not investing with others at all!
Regards,
Margaret
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Should I buy a property with a friend? Six things to consider first: Ask Margaret

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GUEST OBSERVATION
So you were born between the late 70s and the early 90s - chances are housing affordability and home ownership is at the top of your list of priorities. We hear many of you asking, "How can I get in to the market?" It's too expensive; it's dominated by investors; I'm doomed to renting for the rest of my life.
However, this doesn't need to be the case. Here is how to crack it:
<ol>
<li>
What to do if you think you can't buy The worst thing you can do is make the assumption you can't buy and assume you have to rent. Chances are if you can be approved for a rental agreement, there is a chance you can be approved for a mortgage. Before you count yourself out, collect all of the funds you have that could be used for a deposit. Take note, that you don't need to put all of your equity in to your home. Take a longer mortgage out and take advantage of fixing your interest rate at the current very low levels. 
</li>
<li>
Make sure you bring an agent in from the outset  If you want to buy, you need to learn from experts. Agents live and breath the market daily, so call three or four local agents in the areas you are looking. Stipulate your price range, your must-haves, and your readiness to act. Then let them do their work. Tell them how much contact you want to achieve, if you are specific on only one type of property, tell them that is the only time to contact you.  
</li>
<li>
Remember to wait.... It's not urgent  Once you've made the decision to buy, remember that this is something that will take time. There is not a transactional element involved here, but do remember that whilst it most likely is your largest investment, don't be scared. Too many people sit back and wait for the 'perfect home', which doesn't exist. Speak to people who have been through the process and ask what worked for them, and what didn't. Set up alerts so it doesn't consume your life.  
</li>
<li>
Pick the neighbourhood, not the house  Before you start trying to pick a home, drill down on the hard facts of where you want to live. If there are multiple areas, try a map search with multiple suburbs. Before you do this, there is no use in looking at houses. Once you have concluded which areas you want to live in, and have factored in your approved budget you will be working with realistic purchases that are worth you spending your time on. 
</li>
<li>
Use the inspection wisely  Most people turn up to an inspection and walk through, for first home owners, because homes are generally small they finish this in five to 10 minutes. If you are serious, start thinking bigger picture. Measure walls, spaces and ask questions. Ideas such as if you can knock walls down, the expected monthly costs associated with a house of that size, and viewing the home with a builder are all ways to ensure you have a plan of attack, not just to live there, but also to add resale value.
</li>
</ol>
Todd Schulberg is marketing engagement and digital strategy executive at <a href="https://www.homely.com.au/" target="_blank">Homely</a>.
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Five tips to help Gen Y buyers crack the market

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GUEST OBSERVATION
Independent Australian Senator Nick Xenophon is planning a legislative <a href="https://nickxenophon.com.au/media/releases/show/home-affordability-a-super-idea/?Stage=stage" target="_blank">push</a> for first home buyers to be able to access their superannuation savings to pay for a house deposit, mirroring a similar policy in Canada.
As with Australia and Canada, home ownership in New Zealand continues to be seen as a birthright and there is concern about home affordability as house prices, in the main centres at least, continue to rise.
When New Zealand’s workplace-based retirement savings scheme - KiwiSaver - was launched in 2007 the government included several incentives to make the scheme more attractive. One of these was the ability to withdraw contributions to enable the KiwiSaver member to purchase his or her first home.
The government also offers a first home deposit subsidy of NZ$1,000 per year of KiwiSaver membership, with a minimum of three years and a maximum of five years. Both benefits were in response to concerns that the deduction of KiwiSaver contributions from a young person’s pay packet would restrict their ability to get on the home ownership ladder.
How it works
Withdrawing savings for a first home becomes an option after three years or more of KiwiSaver membership. The member’s own contributions can be withdrawn, along with those of their employer. However, the government’s contributions, comprising a NZ$1,000 kickstart for new members and a member tax credit of up to $521.43 per annum, cannot be withdrawn.
The availability of the deposit subsidy is more restricted, with limits on income and the maximum purchase price of the property. Both benefits are only available for the purchase of a first home, with very limited exceptions, and never for an investment property.
These incentives were important in making the controversial scheme more palatable to the public. However, research has shown these incentives are less important to KiwiSaver members than the other government incentives. (Although this is likely to reflect the fact that many members will have already purchased their first home).
Incentives aren’t helping affordability
The benefits for first home buyers do little to assist with home affordability, which relates to the ongoing cost of home ownership. The latest <a href="https://www.massey.ac.nz/massey/learning/colleges/college-business/school-of-economics-and-finance/research/mureau.cfm">report</a> from Massey University’s Real Estate Analysis Unit found home affordability across New Zealand had deteriorated by 7.6% over the year to May 2014.
The benefits are also likely to have limited impact on house prices overall, particularly given the purchase price restrictions associated with the deposit subsidy. Certainly no restraining impact has been indicated, with house prices continuing to rise and ongoing concerns of a housing bubble in New Zealand.
While the benefits could also potentially help push prices up by increasing demand from first home buyers, there is no evidence this has occurred. The purchase price restrictions associated with the deposit subsidy will help curb any potential inflationary impact on house prices. The persistent increase in house prices, particularly in Auckland, continues to be driven primarily by immigration and speculation.
However, KiwiSaver’s first home benefits do assist New Zealanders into their first home by helping them meet the minimum deposit levels required to be able to obtain a loan, something made more difficult with the introduction of loan-to-value ratio (LVR) limits by the Reserve Bank of New Zealand in October 2013. (This has meant that 90% of a bank’s new home loans require a deposit of 20% or more).
The most recent figures available pre-date the LVR changes, but show that more than 10,000 New Zealanders withdrew savings of more than NZ$120 million from their KiwiSaver accounts to assist with their first home purchase in the year to March 2013. In addition, nearly 5,000 subsidies worth more than NZ$15 million were provided in the year to May 2013.
While it’s likely some KiwiSaver members have simply taken advantage of the availability of these benefits, for many young people they will have been vital to helping them achieve their goal of home ownership.
It could be argued that allowing withdrawals from KiwiSaver accounts defeats the purpose of retirement savings. While we know that the earlier you start saving the better, the reality is losing three to five years’ worth of contributions at a relatively young age will not be a disaster – and the retention of the government contributions means the member does not go back to square one as a result of the withdrawal.
Helping young people to help in retirement
While the lifetime benefits of renting versus home ownership continue to be debated, the <a href="https://media.nzherald.co.nz/webcontent/document/pdf/201333/RetExpBudget_Report_Aug2013.pdf">New Zealand Retirement Expenditure Guidelines</a> identified the financial benefits for retirees who own their own unencumbered home, compared to those who are renting. This suggests assisting young people to make their first home purchase will provide benefits for them in the long-term, and improve their retirement prospects.
Another reason to support home ownership is that it provides more secure accommodation for families, compared to renting. Fundamental changes to the property rental market in New Zealand would be needed to change this.
However, there is a large difference between a 25-year old withdrawing three years of contributions and a 50-year old withdrawing 10 years of contributions –the latter will be significantly disadvantaged in terms of retirement income. To counter this it would be sensible to restrict the withdrawal amount or the age at which withdrawals can be made from the scheme.
While the ability to use KiwiSaver savings to achieve a greater level of home ownership has been a successful policy in New Zealand, there is a strong case for introducing some limits to protect its underlying focus on retirement.<img src="https://counter.theconversation.edu.au/content/29950/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;">
Claire Matthews is director of academic programmes at <a href="https://www.massey.ac.nz/massey/home.cfm" target="_blank">Massey University</a>.
Claire Matthews has received funding from Finsia. She is affiliated with the Fin-Ed Centre, NZCU Baywide and the New Zealand Association of Credit Unions.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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cmatthews-j6ptUweXhR

New Zealand's experience shows that tapping super is unlikely to improve affordability

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Finance commitments are on the rise for those buying new homes, and it appears that first home buyers are making themselves seen again with the second consecutive rise now being recorded, according to Australian Bureau of Statistics data.
Master Builders Australia chief economist Peter Jones pointed to the 2.2% seasonally adjusted rise as something that will “inspire continuing confidence” in residential building.
“The latest housing finance data for June also means that the rate of growth is up 10% seasonally adjusted through the year,” said Jones.
“First home buyer commitments rose for the second consecutive month, a positive sign for the industry that may herald a continuing return of first home buyers to the market,” he said.
Meanwhile, Housing Industry Association economist Diwa Hopkins said that this follows significant declines in the December and March quarters, but that the June 2014 quarter is now recording an uptick – at a modest 1% pace.
“Over the full 2013/14 fiscal year new home lending increased by 12%. With lending rates remaining very low, turnover in the established home market has risen, as have home prices. The residential construction industry has responded strongly to these signals,” she said.
“In terms of new home lending being a leading indicator of residential building, today’s housing finance figures suggest home building activity should continue its strong recovery as we progress through the second half of the year.”
However, CommSec chief economist Craig James pointed to loans for new home building hitting a four year high, with first time buyers lifting to 13.2%, and also noted that the number of owner occupier commitments generally was up by 0.2% in June, but the value increased by 1.8%. He noted that this was the biggest rise in seven months.
First home buyers’ loan commitments are still below the long-term average of 20%. Across Australia, the average home loan was $327,000, or 7.4% up on one year prior.
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Loans to new homes on a high, first home buyers re-emerging

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First time investors, and even seasoned property buyers, can often fall into the trap of thinking that just because it sounds cheap it means it’s a good investment. 
While everyone loves a low entry level price, it just isn’t always the case that it's an astute buy and you’d be wise to look beyond the median price when considering areas in which to purchase.
Median prices in themselves are of limited usefulness. Be sure to understand how this figure is put together before reading median price lists (<a href="/expert-insights/investing/how-to-determine-the-median-house-price">this article here will give you a kick start</a>).
You’ll notice in the list of 40 suburbs we’ve put together that they are wildly below the state and territory averages, and for this reason some are in undesirable areas, some are in the middle of, quite frankly, nowhere and others have suffered for other reasons.
Zeehan, for instance, is an area frequently discussed by Property Observer editor at large Jonathan Chancellor as <a href="/expert-insights/letter-from-the-editor-property-investing-isnt-about-the-sexy-sales-pitch">somewhere investors purchased en masse</a>. They were speculating about property growth based on news that a mine was opening up. When it did, and subsequently closed just months later, prices crashed down again. It’s unsurprisingly now the cheapest suburb, based on median price, in Tasmania.
Some suburbs will be unable to shake off the factor holding their property prices back for many years. Whether it’s stigma, which has the potential to be changed, or distance from employment that doesn’t appear to be altering any time soon, be honest with yourself about why the locality is cheap, and what chances there are that this will ease.
It may be one of the cheapest properties you ever buy, but it may also work out to be one of the most expensive in terms of opportunity cost.
Be prepared to educate yourself, learn about the market, and go in with a critical mind.
It's also worth remembering not to follow the crowd. While <a href="/expert-insights/buying/where-are-victorian-first-home-owners-applying-for-grants">this list here might be where Victorian first home buyers are currently purchasing</a>, it doesn't mean it's right for you.
Turn over page for the 40 cheapest property markets.
<hr class="system-pagebreak">
Here are 40 suburbs, the five cheapest by state and territory, and their median prices as per the latest RP Data statistics.
Click on each of the suburb's headlines to see more statistics and local details about their property markets.
ACT
<a href="/news">Charnwood</a>
$390,000
<a href="/news">Macgregor</a>
$430,000
<a href="/news">Richardson</a>
$432,000
<a href="/news">Ngunnawal</a>
$434,000
<a href="/news">Holt</a>
$445,000
 
NSW
<a href="/news">Collarenebri</a>
$55,000
<a href="/news">Mugindi</a>
$65,000
<a href="/news">Binnaway</a>
$65,000
<a href="/news">Lightning Ridge</a>
$75,000
<a href="/news">Ardlethan</a>
$79,000
 
NT
<a href="/news">Zuccoli</a>
$240,000
<a href="/news">Tennant Creek</a>
$255,000
<a href="/news">Mount Johns</a>
$263,000
<a href="/news">Johnston</a>
$290,000
<a href="/news">Katherine South</a>
$300,000
 
QLD
<a href="/news">Cunnamulla</a>
$40,000
<a href="/news">Richmond</a>
$79,000
<a href="/news">Monto</a>
$98,000
<a href="/news">Morgan</a>
$131,000
 
SA
<a href="/news">Hawker</a>
$90,000
<a href="/news">Nangwarry</a>
$90,000
<a href="/news">Peterborough</a>
$90,000
<a href="/news">Coober Pedy</a>
$104,000
<a href="/news">Gladstone</a>
$128,000
 
TAS
<a href="/news">Zeehan</a>
$60,000
<a href="/news">Queenstown</a>
$68,000
<a href="/news">Rosebery</a>
$76,000
<a href="/news">Gagebrook</a>
$118,000
<a href="/news">George Town</a>
$128,000
 
VIC
<a href="/news">Kaniva</a>
$73,000
<a href="/news">Ouyen</a>
$75,000
<a href="/news">Jeparit</a>
$76,000
<a href="/news">Nyah West</a>
$78,000
<a href="/news">Pyramid Hill</a>
$82,000
 
WA
<a href="/news">Norseman</a>
$35,000
<a href="/news">Leonora</a>
$36,000
<a href="/news">Southern Cross</a>
$82,000
<a href="/news">Mount Magnet</a>
$83,000
<a href="/news">Kellerberrin</a>
$90,000
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