For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Ironfish

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SPONSORED POST
As the latest Census results show, the strong shift towards apartment living in Australia continues, particularly in the major capital cities. A growing proportion of people are prioritising access to jobs and local amenity over the traditional Aussie dream of the big backyard.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/dwelling-structure-type.jpg" alt="">
Medium and higher density housing now makes up 26% of all Australian housing. In Sydney, this figure is even higher (42.1%).  Source: ABS 
At the same time, architects are continuing to push the envelope in apartment design. Over the last 10 years, apartment design has changed dramatically – and decidedly for the better, according to one of Australia’s leading multi-residential architects, Callum Fraser, Director at Elenberg Fraser.
<div id="attachment_6627" class="wp-caption alignleft">
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/callum-fraser.jpg" alt=""> Callum Fraser, Director, Elenberg Fraser
“Apartment buildings have become better for you than houses. They foster a richer community with a greater sense of belonging. They deliver this through active social groups and extensive facilities. Residents now have a plethora of unique spaces – karaoke rooms, private dining rooms, cellars, lounges, meditation areas etc – that deliver a more engaged and active life. “They now help us live longer and better – they are the future,” said Mr Fraser.
</div>
With demand for apartment living increasing, it is important to understand how to select the right property, with the right features to cater to today’s tenants/owners, and tenants/owners of the future.
<h4>So, how do you spot an apartment of the future? </h4>
<h4>“New apartment buildings create lighter, brighter and infinitely more liveable spaces that are so much more appealing and alluring than previous “box” type living offered by apartments of previous decades,” said Ironfish Property Director, Grant Ryan.</h4>
“There are 3 major transformative design themes that best summarise why this dramatic shift has resulted in growing demand for liveable buildings with the “cool” factor.”
1. Stunning Glass Facades
Most of the best buildings feature less brick and concrete in favour of more glazing. This design choice greatly enhances the building both externally in terms of aesthetics, and internally in terms of light and liveability. Residents enjoy unobstructed views via a floor-to-ceiling window from inside their apartment and interesting glazed external surface finishes add further light and texture.
Melbourne-based Elenberg Fraser architects were early adopters of bringing glazing manufacturing technology – previously dedicated to commercial buildings – into the residential space. The firm’s expertise in this area is now being utilised to deliver nearly half of all the apartments under construction or nearing completion in Melbourne.
<div id="attachment_6635" class="wp-caption alignnone">
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/Lighthouse.jpg" alt=""> Light House, designed by Elenberg Fraser architects, is a landmark building in the heart of Melbourne. Its innovative kaleidoscopic glass facade also helps to maximise natural light and ventilation, whilst carefully balancing privacy and views inside the apartment.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/St-Julien-glass.jpg" alt="">
</div>
<div id="attachment_6644" class="wp-caption alignnone">
St Julien Residences, developed by ARIA Property Group, feature floor to ceiling glass.
2. Designer Facilities
Gone are the days where there was either no resident amenity or just a pool and a small gym. The trend of increased facilities is here to stay through unwavering demand from residents for more luxurious, social and useful spaces that are an extension of residents’ own apartments.
</div>
Private dining rooms and cinemas for residents to book and use for parties, libraries and reading zones, BBQ areas, garden breakout spaces and resort style pools are now giving fresh reasons for people to live in new apartment buildings.
<div id="attachment_6647" class="wp-caption alignnone">
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/FV-pool.jpg" alt=""> The stunning wrap-around roof-top infinity pool at FV, Fortitude Valley
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/FV-cinema.jpg" alt="">
</div>
<div id="attachment_6648" class="wp-caption alignnone">
Gurner’s lavish FV apartment development or “urban resort” in Brisbane includes over 2,500sqm of communal spaces for residents, including a cinema, 4 pools, yoga studio and private dining areas.
Leading developers and architects are now putting a lot of additional thought into the “arrival experience” of residents into a building. Lobbies are being designed to exude an enhanced sense of luxury, intimacy and community.
</div>
Buildings that feel like a 5-star hotel in terms of style while providing the comforts of a home are particularly in vogue, and will have sustainable long-term appeal to current and future owners.
<div id="attachment_6649" class="wp-caption alignnone">
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/Melbourne-village-lobby-e1504162325201.jpg" alt=""> The Melbourne Village apartment building lobby offers the experience of a high-end hotel at home, complete with concierge.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/oxley-stirling-e1504162265345.jpg" alt="">
</div>
<div id="attachment_6650" class="wp-caption alignnone">
The lobby at Oxley &amp; Stirling, located in South Brisbane, and other shared spaces within the building were designed by Elenberg Fraser architects to echo the glamour of days gone by.
However, according to Mr Ryan, it’s important to note that this trend is not consistent across all buildings, locations and developers, as some have embraced it more than others and quality varies extensively.
</div>
“My observations, having reviewed projects nationally over the past decade, are that these trends were born out of Melbourne’s edgier and more adventurous architectural environment. And in a social media world – and the fact that many local and overseas developers have been expanding into developing across multiple capital cities and states – the trends have naturally expanded and now feature prominently across the major capital city markets,” he said.
In the April 2017 JLL Brisbane Apartment market research report, it states:
“Projects with a point of difference such as superior ground floor retail, finishes or resident amenity continue to outperform the wider market.”
These are key aspects buyers need to take into consideration when making their purchasing decisions.
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jrobinson-rf4aSBido9

What you need to know about new apartment trends

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It’s hard to read a paper at the moment without finding an array of negative headlines about Sydney’s declining property market.  While media reports paint an overwhelming gloomy picture for the market, a closer look at the data tells a more nuanced story.
<h2>Sydney’s top end dragging down the averages</h2>
The Sydney residential property market as a whole recorded negative growth in the first quarter and for the year to April 2018.
However, the latest data from CoreLogic shows this result was largely driven by the premium end of the market.
The most affordable 20% of dwelling values recorded gains in these periods.
In fact, the more affordable half of Sydney dwelling values recorded an uptick in prices when averaged out over the year to April 2018. However, a pullback at the more expensive end caused the overall average to be weighed down.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/08/shutterstock_343792502.jpg" alt="">
The top end of Sydney dwelling values ($1.4m-$1.8m+) experienced the most significant decline. These properties suffered a substantial 7.2% decline over the 12 months to April 2018 which dragged the average down to -3.4% for the market overall.
Affordable property at the medium-low price ranges (under $875K) has been far more resilient.
“We often tell our investors to read the numbers, and understand the data, not the sensational headlines, and this is a typical case in point,” said Ironfish Head of Property, William Mitchell.
“Sydney has been an incredibly hot market so we do expect the overall market to trend sideways for a period. However, as the data demonstrates, there are sub-markets which can outperform the wider market, and these are the markets that we are looking for when it comes to selecting property to recommend to our investors.
“Though there will be a pullback in prices in pockets of Sydney, owners need to remember the market has increased significantly since the boom began in 2011, so a small adjustment is not a ‘bust’.”
<h2>Melbourne property market continues to perform</h2>
Like Sydney, the headlines for Melbourne property have focussed on the negative; specifically, Melbourne’s marginal decline (-0.7%) in residential property values for the first quarter of 2018.
Yet the data reveals that the Melbourne market has continued to perform, with the vast majority of price points recording positive growth over the 12 months to April 2018.
The affordable end of the market again recorded the largest gains. Properties priced $803K and under recorded an average gain of 9.87% in the year to April 2018 – a very strong result.
Only the most expensive dwellings (i.e. the top 10% of prices) recorded a negative gain in Q1.
<h4>The return of first home buyers </h4>
<div id="ig-8773e3f7-dd3f-1231-f65f-9208c80a9c5b" class="infogram-embed" data-id="8d184527-937a-4799-b7df-1c93ee767c42" data-type="interactive" data-title="First Home Buyers, All States " data-processed="1"> <iframe title="First Home Buyers, All States " src="https://e.infogram.com/8d184527-937a-4799-b7df-1c93ee767c42?src=embed#async_embed" frameborder="0" scrolling="no" width="320" height="240"></iframe>
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The outperformance of more affordable product has been much attributed to more first home buyers returning to the market. This is a trend we’ve seen not just in Sydney and Melbourne, but also across all the 5 major capital cities.
<h4>First Home Buyer mortgages on the rise</h4>
In Melbourne, strong population growth coupled with the increasing appeal of apartment living has further underpinned demand for the affordable end of the market.
Melbourne apartments recorded the strongest capital growth (6.8%) compared to apartments in any of the other 5 major capital cities for the year to April 2018.
Given Melbourne house prices have increased up to 70% since mid-2013, apartments continue to offer a significantly more affordable alternative to buyers.  At current median values, a Melbourne apartment is about 33.9% cheaper than purchasing a standalone house – providing a very strong incentive.
“With the tighter lending environment at the moment, affordability is definitely the flavour of the month. As a result, we are seeing more buyers turning to apartments and this market is expected to perform well in the medium term,” Mr Mitchell said.
 
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Is the property market crashing? 

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“There’s lots of companies that are just wanting to make money. They basically just tell you whatever’s on their books is the right thing to buy. So, it’s hard to find someone you can trust. 
“What we liked about Ironfish is that they’re a company that educates and takes on board your whole financial situation and goals, not just your ability to access funds to purchase property. There’s heaps of events and education sessions that help improve your general financial IQ as well.” 
<h4>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/chris-cindy-5-e1531102841752-300x244.jpg" alt=""> </h4>
<h4>CASE IN PROFILE</h4>
<ul>
<li>Brisbane based medical specialists</li>
<li>Experienced investors who were lacking a clear goal</li>
<li>Purchased 3 properties with Ironfish</li>
<li>9 investment properties in total</li>
</ul>
<h2>Not really ‘property investors’</h2>
Chris and Cindy Aubrey are Surgical Assistants working in multiple private hospitals in Brisbane. Originally from far north Queensland, Chris and Cindy moved to Brisbane for work, and have a young family of 2 kids, aged 2 and 4. Prior to investing with Ironfish, they already owned 4 investment properties which are scattered around Queensland, Western Australia and New South Wales, along with a Victorian property in their SMSF.
“We wouldn’t have called ourselves ‘property investors’ though. We had a couple of investment properties because we didn’t know what else to do with our money and we thought property was a good vehicle!
“After investing with Ironfish we really started to look into financial education, and at that point get into property investment a little bit more as a passion and with a clear goal.”
<h2>Finding someone you can trust</h2>
Apart from 2 out of their 9 properties, Chris and Cindy’s investments were purchased through a company. Chris and Cindy’s main challenge before investing with us, was<a href="http://www.ironfish.com.au/blog/2018/02/07/cancelled-contract-another-property-investment-company-went-ironfish-instead/" target="_blank"> finding a company they could trust</a>.
“We’ve had experiences with other property companies where they’ve sold us a property and left us. With Ironfish, we don’t feel like we’ve just been ‘sold to’. We hear from our strategist Linna regularly, not only to help us review our current portfolio but also to invite us to <a href="http://www.ironfish.com.au/seminars/" target="_blank">events and education sessions</a>. There’s always lots to learn.”
<h2>Knowing what you want</h2>
Chris and Cindy had a chat with our Brisbane based strategist, Linna Reakes, who listened to what they wanted to achieve and also invited them to come along to some Ironfish events and property investment seminars.
“We’ve been to a few events and they’re really good, especially Joseph. He’s a great speaker. What we got out of those events was that it <a href="http://www.ironfish.com.au/blog/2018/02/23/secret-success-everybody-overlooks/" target="_blank">starts with the mindset</a>, it starts with goal setting – which is not what we did initially in our property journey. We leapt into it without knowing what we wanted out of it. Now we have a clear goal; we are aiming to replace enough of our income so we don’t have to work so hard and can spend more time with the kids while they’re still young.”
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/chris-cindy-2-1024x683.jpg" alt="">
<h2>Property selection</h2>
Chris and Cindy were very specific about what types of property they were targeting when they talked to Linna.
“We told Linna we were looking for house &amp; land, and she helped us acquire a package located in <a href="http://www.ironfish.com.au/blog/2018/07/04/record-numbers-looking-for-homes-in-queensland/" target="_blank">South East Queensland</a> which met our criteria. We also purchased 2 other units in Brisbane, which provide good cash flow and are good quality builds that are going to hold their value. Credit to Linna to understanding what we wanted and showing us what she thought was suitable.”
<h2>The importance of follow up</h2>
While the performance of the property is important, Chris and Cindy agree that ongoing service and support is what makes a real difference.
“We’ve had good and bad experiences with different companies. We can look back and see which properties have done well and which haven’t; that weighs in on deciding if we’re going to invest with them again.
“But it’s also about communication and follow up. Companies mostly make their money on the event of a sale, but if they have good after-sale service we’re more likely to go with them again. And that’s what we appreciate about Ironfish. There’s good follow up; Linna is great, and the property management service has been good, no problems at all. We’re very happy with the care we’re getting as customers and in our portfolio management. And now that we’ve built a decent portfolio, we’re looking at managing that over the long term.”
<h2>Chris and Cindy’s property investment tips:</h2>
<ol>
<li>
Focus on your own education. We go to seminars, we have mentors and ask lots of questions. Don’t pay attention to mainstream media, look for reports from reputable sources.</li>
<li>
Get yourself a good team of people. We have a financial planner, accountant and mortgage broker – this is something we picked up from Ironfish. In the past 5 years, we’ve changed our accountant and planner to find people who understand and help us achieve our goals. That’s made a huge difference. For example, from an accounting perspective in structuring your properties: you may pay for advice upfront, but it could save you thousands down the track.</li>
<li>
Start with ‘why?’ Set a goal for why you’re investing in property and what you want to achieve out of it before you leap in.</li>
<li>
Consider the benefits of investing in new or off-the-plan property. We initially just fell into this type of investment, but we’ve since learned about the tax depreciation advantages. And also, depending on the area, new home starts are a sign of potential growth in an area. We now have 9 properties, half house &amp; land, half apartment. Most are new properties.</li>
<li>
Look at each of your properties as a business. We haven’t even set foot in any of our investment properties. We’ve got friends who’ve not bought based on a property having a colour of paint they didn’t like. Don’t let emotion sway your decision making. Let the numbers make the decision.</li>
</ol>
 
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Dr Chris and Cindy Aubrey - surgical assistants and Ironfish customers

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Australians are feeling much happier about their general health and wellbeing than they are about their finances, a new study has revealed – with home ownership being a key stress point.
A national Colmar Brunton survey has found that only 35% of Australians are satisfied with their financial wellbeing, while 59% are satisfied with their mental wellbeing, 50% with their social wellbeing and 45% with their health and physical wellbeing.
<h2>Renters more financially stressed than property owners</h2>
Owning a property versus renting a property has a direct effect on financial wellbeing, the study revealed, with renters (45%) much more likely to be dissatisfied.
According to social researcher Mark McCrindle, owning your own home or property is a perceived milestone that often affects people’s sense of satisfaction.
“Individuals compare themselves to their peer group and home ownership has been the wealth vehicle they have used,” Mr McCrindle told News.com.au. “Costs of living are going up and if they are still renting, rather than owning a house, it can add to their insecurities.”
<h2>Australians feeling unprepared for the future</h2>
One in three survey respondents said they did not have the financial freedom to make choices that would allow them to enjoy their lives.
A further 29% do not feel prepared for any potential financial setbacks or emergency events.
Funding retirement was top of mind for many respondents with 43% feeling their superannuation is not on track to allow them to maintain their standard of living into retirement.
The data also revealed that 36% of Australians believe they will need to keep working past the age of retirement.
<h2>A taboo topic</h2>
<a href="http://www.ironfish.com.au/blog/2018/05/31/advocating-financial-literacy-wellbeing-workplace/" target="_blank">Experts agree</a> that the journey to financial wellbeing starts with education. And yet financial education is notably lacking – it is not commonly taught in schools, or the workplace – and therefore an individual’s financial education is completely dependent on social, familial or community structures and resources.
“Wealth is a taboo topic,” says Ironfish CEO &amp; Founder, Joseph Chou. “It’s not taught in school, we don’t talk about it amongst ourselves, or with friends or colleagues, generally speaking. And yet, we know from experience that wealth can be learned.
“That’s why it’s so important to us at Ironfish to inspire people to take ownership of their finances and achieve the financial freedom they need to enjoy life now and feel more confident about their future.”
<h2>From renter to owner</h2>
In our experience, most people already believe that property is a great investment and has a strong link to their sense of financial wellbeing.
Most people probably also wished they’d bought property years ago but lacked the confidence to make a decision about which particular property to purchase or felt it was too far out of reach.
At Ironfish, our aim is to simplify investment concepts, provide quality education, investor tools, service and properties – and share our collective investment experience to help you achieve your property goals.
Over 86% of our staff are property investors<a name="_ftnref1" href="http://www.ironfish.com.au/blog/2018/07/13/aussies-feeling-fit-well-just-not-financially-new-research-finds/#_ftn1">[1]</a> including first home buyers and <a href="http://www.ironfish.com.au/blog/2017/10/16/thinking-beyond-sydney-rent-vesting-works/" target="_blank">rent-vestors</a> – so we have walked the path before.  
 
<div> </div>
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Aussies feeling fit and well – just not financially, new research finds: Ironfish

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New figures have revealed the popularity of townhouses is soaring, with approvals for new townhouses at record levels in Australia’s biggest cities.
In the 12 months to December 2017, townhouse approvals had the strongest year on year growth at 21% in Victoria (VIC) and 28% in New South Wales (NSW). 
Conversely, in the same period, the number of approvals for detached houses in NSW and VIC fell by 2% compared to the previous year – with <a href="http://www.ironfish.com.au/blog/2017/08/03/townhouses-next-big-thing/">more Australians</a> shifting away from detached houses in favour of higher density living.
An analysis of ABS dwelling unit data over the last 5-7 years has shown an exponential increase in townhouse approvals as more developers seek to meet this growing demand.
In 2017, annual townhouse approvals rose by 124% in Victoria (VIC) and 128% New South Wales (NSW), compared to 2011 figures. 
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Housing approvals drop
While the rate of growth for townhouse approvals has remained robust and positive for the last 5 years, the rate of growth for traditional detached housing approvals has been declining over the same period, with weaker overall year on year growth.
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Over the past 5 years, VIC townhouse approvals averaged an annual rate of growth of 14.4% and NSW townhouses averaged an annual rate of growth of 15.3%. Detached housing approvals increased at lower rates of 2.6% and 9.3% respectively.
<h4>Houses &amp; Townhouses – 5 year rate of growth</h4>
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<h2>Comparable backyard to a House &amp; Land</h2>
Typically, townhouses provide a more affordable, family-friendly alternative to a detached house, with more indoor and outdoor space and privacy than an apartment, but without the cost and upkeep of a larger home on a big block.
What’s interesting to note, however, is that many new townhouses aren’t compromising so much in the way of backyard space anymore.
As the cost of land continues to rise across the nation, block sizes are <a href="http://www.ironfish.com.au/blog/2017/11/07/smaller-blocks-larger-price-tags-aussies-opting-big-backyard/">continuing to decrease</a>, ultimately resulting in smaller backyards. In some cases, these backyards are the same size or only slightly larger than the backyard you would find in a townhouse.
In the Sydney suburb of Schofields for example, townhouses can offer up to around 70% as much backyard space as a standalone house &amp; land package – with a substantial price saving to boot.
<h4><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/8/IRONFISH%205.jpg" alt=""></h4>
For the growing number of families wanting a backyard without compromising their ‘lock up and leave’ lifestyle, townhouses can offer the ideal solution. Even a quick poll at Ironfish HQ, revealed the popularity of this lifestyle choice.
<blockquote>
“We currently live in an apartment with a young family and would likely choose a townhouse in our area as our next move,” said Ironfish staff member Manisha Lee. “We don’t want to compromise on our location and we want to be within an easy commute to work. A townhouse is a more affordable way to have that extra bedroom and backyard space that we need compared to a standalone house or terrace-house in the same area.”
“And to be honest, we’re used to apartment living; we don’t want the headache of having to maintain a property ourselves – we have enough on our plate with working fulltime and raising young kids as it is! Having someone else manage the maintenance makes it much easier.”
</blockquote>
<h2>Location, location</h2>
Not only are townhouses an affordable option compared to detached housing, they are also increasingly better positioned in new master-planned communities.
A growing trend we are now seeing is that councils and developers are positioning townhouses in prized locations, near parks or on the waterfront. They also tend to be in closer proximity to transport hubs, retail and other amenities compared with house &amp; land.
<h2>Luxury and affordability</h2>
With rising land prices in Sydney and Melbourne, affordability has been a key driver for prioritising townhouses across urban planning measures. The NSW Department of Planning and Environment, for example, states that medium density housing provides an important alternative, offering more affordable housing choice in a market that has traditionally been a mix of fully detached housing and apartments.
However, townhouses do come in a variety of different sizes and price points and are not necessarily pitched exclusively at entry level buyers.
<blockquote>
Domain Data Scientist, Dr Nicola Powell, points out that many developers are now including fittings and fixtures and architectural design standards more closely linked to the luxury end of the housing market. They are also better catering for families with younger children through the inclusion of common gardens or other leisure spaces.
</blockquote>
<h2>The rise and rise of townhouse living</h2>
In the 2016 Census, the growing shift away from detached housing towards higher density living was revealed. Townhouses accounted for 12.7% of resident homes in Australia, up from 9.9% in 2011 – while detached houses, though still the majority, continued their longer-term declining trajectory from 75.6.7% to 72.9%.  
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“In the face of affordability constraints, changing lifestyle choices and an expanding population, we expect townhouse living is only going to increase in popularity,” said Ironfish Head of Property, William Mitchell.
“And as more new townhouses are built to meet this growing demand, it’s likely the next Census data set will show an even stronger uptake of townhouse living.”
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j.ballantyne1990-6AQqhLzZaK

Are townhouses the new house?

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Juwai chairman Georg Chmiel interviewed Ironfish CEO Joseph Chou on investing in property.
"Today, we talk to one of the most interesting, influential, and invisible individuals in the real estate industry."
"If this is the first time you are hearing the name Joseph Chou, that is just how he likes it. As CEO and Founder of <a href="http://www.ironfish.com.au/" target="_blank">Ironfish</a>, Chou leads one of the quietest but most powerful companies in the property sector. He is determined it will one day be worth $1 billion. Chou’s memoir, From Bicycles to Bentleys, is popular with Australian investors and a bestseller in Beijing."
"Chou is a native of China and a former diplomat who immigrated to Australia in 1991. Within 18 months of arriving, he and his wife Suzanne had already turned their $4,000 of savings into a $175,000 house and a new BMW."
He was justly proud but, he says, “I felt tired. I was literally working seven days and most evenings.” 
Around this time, Chou reunited with a former colleague who had not spent his earnings on a new car and home, but instead had invested in property. 
“He had turned cash flow into assets. I, on the other hand, bought the BMW and a home first.” 
Chou told me this is when he realised the only way he would be able to enjoy his prosperity was by creating assets that produced wealth for him — even when he himself was not working.
In the subsequent year, Joseph worked quickly to build up a substantial portfolio of his own. He then decided to get into the property business himself and eventually founded Ironfish. The company aims to help Australians build a portfolio of four to ten investment properties over a long period of time and to hold them until they double in value.
“That’s our Australian business,” he said. “Our core value is helping Australian families build a property portfolio to complement superannuation.” 
Tip's for Investors
When I asked him what he thinks of rent-vestors who buy their first investment property before their own home, he applauded them.
“That can be a good idea,” he said. “It is cheaper to rent and also own an investment property than just buying a first home.” 
Chou says Ironfish has many young professional customers in this category. “They are investing in a few properties first while their career is on the way up. Then, when they have more money and know where they want to settle, they buy their home.”
In fact, it seems Chou’s recommendation for first-home buyers is to take your time. 
“Don’t buy just to take advantage of government incentives,” he says. “If you get a mortgage prematurely it will affect your career, your ability to move around, or the opportunity to start a business.”
Once you have invested, Chou believes you should hold onto your investment property as long as possible.
“Our idea is to never sell unless you absolutely have to,” he says. “Property is the goose that lays golden eggs. There is no point in killing it.”  
Struggle To Triumph
Chou was born and raised in Nakou, about 50 kilometres from Beijing. By age 16, Chou had nearly died three times.
In one close call, he was saved at the last moment from being run over by a train. Then, he nearly drowned in the deep end of a swimming pool. Finally, a long metal stake impaled him in the eye.
“There was blood everywhere, and it felt like a bullet had lodged in my brain,” he writes. Luckily, he suffered no permanent damage.
Chou explains that, in China, if you survive three tragic accidents you are said to have good fortune for the rest of your life. 
“Looking back, surviving set me up to tackle life head-on. I thought, ‘There must be a purpose for my life if I have survived this far.’”
Australia’s natural beauty and its freedoms were the qualities that persuaded Chou and wife to start new lives here. 
“Living freely in Australia, we could make choices on how we would spend our time and live our lives. I wanted to go into business in Australia, attain wealth and achieve my goal of living a free life.”
Apartment Vs. House
One funny story Chou tells about his adjustment to living in Australia involves his first grass lawn. Having grown up in an apartment in China, he had no idea how to mow the grass in the garden of <a href="http://www.ironfish.com.au/blog/2017/09/29/inside-look-homes-successful-property-investor/" target="_blank">his first house</a>, in Denistone. A neighbour showed him how to use the mower, but Chou found himself generating plumes of dust because the mower blade was set too low. He was so flummoxed that he gave away the mower and hired a gardener. 
Perhaps this experience is one reason he believes houses should be part of your investment portfolio but not all of it. He encourages investors to balance among houses, townhouses, and apartments as each has its advantages.
I asked Chou what features create value over time. He said he looks for a convenient location, high quality design, and amenities that make people want to live there. He likes apartment buildings that have an owner occupier feel and he likes apartment buildings that appeal to both owner occupiers and investors.
“Also, we have what we call the PIE formula,” he said. “The area has to have a population that’s increasing, infrastructure investments, and employment growth.
Downturn?
Chou is a strong believer in property as a route to wealth. (You may want to note one quarter of the richest 200 individuals in Australia made their money in property.
“The key message is that Australian property is unique compared to other countries. There is a $7.5 trillion asset base. Only 5 per cent is traded every year, so it’s been very stable.”
Chou says investors have many good picks today. For a run-down of his current investment strategy, read his summary here.
Getting into Development
Development is something relatively new for Ironfish. In Melbourne, Ironfish jointly developed Whitehorse Towers and the project was priced below the competition. 
“We had to sit down with our development partner to negotiate with them on behalf of the buyers,” he said. “The reduction in pricing reduced the project’s profitability by millions of dollars.”
This is something unique about Ironfish. I don’t know of any other property company that makes leaving money on the table for buyers a cornerstone of their philosophy. Chou sees his company’s mission as helping Australian families build wealth through property.
Although he is too discreet to say so, Chou is very successful. 
He came to Australia with only $4000, and his first car (a 15-year old Mitsubishi Sigma) ate up 95 per cent of that total. Chou now has a large personal property portfolio, leads a successful company, and helps thousands of Australians build their own investment portfolios so they can achieve their own financial success. 
“To me, it was Australia that made this possible,” he says. “We are so lucky to live in this country. It is a nation that gives everyone a go, and I want to help all Australians to have the same good fortune as me.” 
GEORG CHMIEL, the chairman of Juwai, a Chinese website for buyers of overseas property, was speaking to Joseph Chou in his regular column giving insight into the leading minds of Australian property experts.
He has spoken with LJ Hooker agent Bill Malouf about the ins and out of the Sydney market, REINSW president Leanne Pilkington about women in real estate, developer Larry Kestelman about developing your first property, and Harcourts boss Mike Green on real estate investment secrets.
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Georg Chmiel talks with Ironfish CEO Joseph Chou about whether to invest in today’s market

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For the majority of property investors, it is very difficult to accept the concept of buying investment property in another city or state. In fact, <a href="https://theconversation.com/three-charts-on-who-is-the-typical-investor-in-the-australian-property-market-81319" target="_blank">recent studies</a> show that only 11% of investors are investing in property interstate. As much as we all want to be logical and rational in our investment decisions, for many of us, emotion does come into play and the comfort that comes with knowing an area well does impact where and what we invest in. This can have significant effects on your return on investment.
At some point, as an investor you will be challenged by something that encourages you to look at another city. Perhaps it is affordability, or the need to diversify your portfolio – but when this challenge presents itself, if you are able to recognise the benefits of looking beyond your home city, the next steps will be easier than you initially thought, and you will be able to move forward with your investment decisions and continue to build your portfolio.
<h4>THE BENEFITS OF INVESTING IN MULTIPLE CITIES</h4>
Market conditions and cycles continually fluctuate between each state and city, so that when values are rising in one market, another area may be flat while another may be poised for growth. For many investors, diversifying across multiple cities enables them to take advantage of the different market cycles.
Investing in another city or state also offers a wider variety of choice in affordable investment options. For many who are increasingly being priced out of Sydney, the relative <a href="https://www.ironfish.com.au/blog/2017/06/07/better-lifestyle-half-cost-australias-popular-capital-city-move/" target="_blank">affordability of the other major capital cities</a> has strong appeal.
There are also differences in capital growth and rental yields at varying times across the different cities. For example, according to <a href="https://www.corelogic.com.au/news/capital-city-dwelling-values-rise-0-8-over-june-quarter#.WY0kJFEjGUl" target="_blank">figures from CoreLogic</a>, in the last year to 30 June 2017, Melbourne houses had the highest capital growth (15%) of all the capital cities and all housing types. On the other hand, Brisbane apartments had the highest rental yield (5.2%) out of the 5 major Australian capital cities. By diversifying your portfolio across multiple cities, you will have a better opportunity of targeting your desired capital growth and rental yield across your portfolio.
Another important consideration is the varying taxes across the different states. Each state has its own stamp duty rates and differing land tax thresholds – as well as continually changing Government incentives and grants. By diversifying across the states, investors can take advantage of the different thresholds and incentives on offer.
<h4>SO, WHERE AND HOW TO BEGIN?</h4>
Once you’ve decided to invest in another city, the next steps are similar to the process you would go through in buying residential property in your own city or state, with a few key factors to consider. Here’s our top 5 property investment tips for investing in another city or interstate.
<ol>
<li>
<h4>Research</h4>
</li>
</ol>
Read as much as possible. For most people, it’s an impossible task to go and personally visit every city you may plan to invest in – both in terms of time, and money spent – and without any potential payback. Instead, consider reading up online; there are many wonderful resources and <a href="https://www.ironfish.com.au/property-outlook-report/" target="_blank">reports</a> to equip you with knowledge of the different cities and how the markets are performing.
<ol start="2">
<li>
<h4>Talk to experts with local knowledge</h4>
</li>
</ol>
Get an understanding of how locals live – do they want to be close to the beach, or close to cafes? Do locals catch the train or bus or tram to work? Gain insights into what locals want from a property – keeping in mind this may vary significantly to what you might want from a property, or what people in your city may want from a property.
<ol start="3">
<li>
<h4>Know your budget</h4>
</li>
</ol>
There is no point looking for a penthouse in New York if your budget is $300,000! Understand your limits and look for what you can afford. The table below is a good guide to understanding what your money may be able to buy in each city.
<img src="https://www.urban.com.au/images/2017/08/08/Affordability-index.png" alt="">
<img class="alignnone wp-image-6495 size-full" src="https://www.ironfish.com.au/wp-content/uploads/2017/08/affordability-disclaimer.png" alt="" width="867" height="79">
You should also factor in the different costs of ownership in different cities, as each state has different stamp duty rates, and also different thresholds for land tax payable. By diversifying your portfolio you can limit land tax payable – although this shouldn’t be the main driver for your investment strategy, it is certainly a benefit of diversification.  
<ol start="4">
<li>
<h4>Take the emotion out of your investment</h4>
</li>
</ol>
Buying investment property is, of course, an inherently different type of decision to buying your own home. Remember that the things you may love about living in a particular type, size or location of a property may be very different to what others may value in their local city. Stay focused on the research, and of course, make sure that the fundamentals of the property are sound – that you are investing in quality.
<ol start="5">
<li>
<h4>Get the support of a good team</h4>
</li>
</ol>
The challenges of investing with confidence in another city or state can feel insurmountable when you’re doing it on your own. That’s why it’s important to get the support of a team of professionals who can help to guide you through the process. We know the importance of local knowledge when it comes to property investment, and as an investor you can leverage our national network of 9 offices located across the 5 major Australian capital cities. Also ensure that you have a great solicitor, accountant and mortgage broker on your team – with the right support in place, investing in another city is well within reach.
If you’re interested in buying investment property and would like more information on interstate property markets, you can download our national residential property report <a href="https://www.ironfish.com.au/property-outlook-report/" target="_blank">“My Market.</a>”
Or if you would like specific reports about each of the major Australian property markets (Sydney, Melbourne, Brisbane, Adelaide and Perth), please <a href="https://www.ironfish.com.au/contact-us/" target="_blank">contact your local strategist</a> who will be able to give you a copy of the relevant “MyCity” report.
 
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How to invest in property in a city you’ve never been to

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SPONSORED POST
Senior Legal Counsel &amp; Early Childhood educator / Ironfish Customers
“As a lawyer, I’m pretty discerning and can be quite sceptical in my assessment of things.
“Having invested with Ironfish, we’re not only impressed by the level of knowledge, customer service and ethics of everyone we’ve dealt with, we also trust our strategist completely. She’s been to our home countless times, nothing is ever too much trouble.”
<h2>CASE IN PROFILE</h2>
<ul>
<li>Time-poor professionals with young family</li>
<li>Needed to minimise tax liability</li>
<li>3 properties purchased through Ironfish</li>
<li>Diversified across multiple cities and housing types</li>
</ul>
<h2>Avoiding buyer’s remorse</h2>
Robert and Paula had been considering property investment as a tax minimisation strategy for some time – being higher income earners and having built up some equity in their own home. After talking to a few companies, they signed a contract to purchase one off-the-plan property, but immediately started to experience some ‘buyer’s remorse’. At this point, a friend suggested they meet with Ironfish Chief Investment Strategist, Priscilla Cheung. Their friend had invested with Priscilla in the past, and had a lot of trust and respect for both Priscilla and the Ironfish investment platform.
“We hadn’t heard of Ironfish before, but because of the recommendation, we thought we’d meet Priscilla and hear her out. As a result of our meeting, we actually ended up cancelling our other contract and went with Ironfish instead, because we could feel straight away that Priscilla genuinely had our interest at heart.”
<h2>No more bells and whistles</h2>
Their first meeting with Priscilla took place at their home, after hours – a personal touch that was greatly appreciated by Rob and Paula.
“With the other company, there was a feeling that we were being buttered up – going into a flashy office, being taken out for lunch, having coffees brought to us. By contrast, Priscilla came to our home – and with the kids and an extremely difficult and demanding job – we appreciate this flexibility.
“What sold us was that she set it all out plainly – she said if we went with the other company, that we’d still be doing the right thing. She confirmed that everything the other company had told us was sound and there was no reason not to go ahead with our purchase. She wasn’t putting it down, she was just interested in what was good for us. What she did say was that if we did choose to invest with her, that she would be able to provide an extra level of service that we wouldn’t necessarily get elsewhere. And given that we are incredibly time poor, we really valued this.”
<h2>Too hard to do it alone</h2>
Even prior to their introduction to Ironfish, Robert and Paula never considered investing in property on their own; like many senior professionals with a young family, the investment in time required meant it simply wasn’t an option.
“My job as an in-house Senior Legal Counsel is very challenging, and I have no room to make any mistakes. So, after spending all day at work expending my energy on other very complicated matters, by the time I get home, I’m just a mess. Investing on our own seemed too terrifying to even consider. We didn’t know where to begin, or how to break the ice. I’m an excellent lawyer, but when it comes to my own interests, I’m hopeless – because I’m just too busy looking after everyone else! That’s why you need trusted professionals around you to help navigate things you don’t understand, or don’t have time to understand – and that’s what we value so much about Priscilla and Ironfish.”
<h2>A new strategy for property selection</h2>
Initially, Rob and Paula had decided to purchase 2 house and land packages in Queensland, but decided to diversify once they heard about the Ironfish Portfolio Approach strategy.
“We thought the Portfolio Approach made a lot of sense. So, our first purchase with Ironfish was a South East Queensland house and land package – similar to what we’d signed on with the other company, but a better location and property. Priscilla provided all the data and stats – which all lined up, so we were ready to go with that one. Our next purchase was a townhouse in Marsden Park in Sydney. We drove out to Marsden Park a few times, and fell in love with the idea of having a piece of an impressive new suburb. Plus it’s a Stockland development; we were impressed that Ironfish had that relationship with a developer of the calibre of Stockland as well. Our third purchase was a unit in Melbourne village.”
<h2>Going above and beyond</h2>
Rob and Paula have now come to rely on the expertise, reliability and personalised service of Priscilla and the entire Ironfish team on a whole range of matters.
“The customer service we’ve experienced with everyone we’ve dealt with at Ironfish is excellent. Priscilla herself, has a lot of credibility and nothing ever seems to be too much trouble for her. Every time we feel like we’re stretching the relationship, she makes you feel like you’re the only customer she has. Everyone at Ironfish makes you feel like this; I don’t know if they receive special training to do this, but that’s truly been our experience. You never feel like you’re being a bother, nothing is too hard, too difficult or too stressful. For example, I was struggling to sort out all my bank accounts recently, it’s not Priscilla’s job to restructure my bank accounts for me, but she was happy to help!”
<h2>We didn’t have to worry about anything</h2>
The smooth transition from settlement to Ironfish Property Management also stands out for Rob and Paula.
“Communication with us throughout has been great. We really enjoyed getting regular updates and photos of the construction stages. Then we received information about a tenant within just a few days, it seemed. We barely blinked and it was done. Now we have this tenant living happily in this place we bought and we don’t even have to think about it. We basically just get emails from Ironfish that we need to approve. It’s always a collaborative process between us and them, and we all want the same outcome. It’s just so easy. We literally don’t have to worry about a thing.”
<h2>Robert and Paula’s property investment tips:</h2>
<ul>
<li>Book a meeting to help you understand your position; then go away and speak to other people who’ve done it before.</li>
<li>Don’t believe the doom and gloom hype in the SMH; look at the facts, speak to Ironfish, and speak to one of their competitors to get another perspective.</li>
<li>We are taking advantage of negatively gearing our property until such time legislation changes, as well as the depreciation deductions for new properties.</li>
<li>You’ll find some people will understand what you’re doing, others will be against it, and will stick to the usual plan of paying off one house and waiting till retirement to enjoy life. But at the end of the day, we could be giving a lot more money to the tax office, but we’d rather have our money working for us!</li>
</ul>
 
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Robert and Paula Licuria - Senior Legal Counsel, Early Childhood educator & Ironfish Customers

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SPONSORED POST
In a year that has had its fair share of challenges – as well as opportunities – this end of financial year, I thought I would take the time to share my own property investment strategies and some tips to succeed within the current market and lending environment.
<h2>My FY 2018 property investment strategy</h2>
<a href="http://www.ironfish.com.au/blog/2018/03/18/set-property-investment-plan-2018-now/" target="_blank">Last year</a>, I said I was going to leave residential property investment for a while, as I have already achieved my goals. But when I spotted an opportunity, I couldn’t help myself.
This financial year, I’ve invested heavily in Brisbane and South East Queensland (SEQ); I’ve purchased some more properties and also settled a few. This is part of my long-term strategy but also to invest at the right time of the cycle – as in my experience the property market in SEQ is around half a cycle behind Sydney and Melbourne.
SEQ is also a major growth corridor, which is experiencing record levels of interstate <a href="http://www.ironfish.com.au/blog/2018/01/19/migration-pushing-queensland-property-price-growth/" target="_blank">migration</a>, infrastructure investment – and then there’s the Commonwealth Games which has put the Gold Coast on the world map as well. I saw a great opportunity, so I’ve personally invested there.
<div id="attachment_7779" class="wp-caption alignnone">
In the last few years, Queensland at its peak had about 50 – 60 new residential developments in a single year, and we’re now down to <a href="http://www.ironfish.com.au/blog/2018/05/04/cranes-fast-disappearing-analysts-predict-future-brisbane-housing-undersupply/" target="_blank">single digits</a>. Now only a handful of truly strong developers are able to bring anything off the ground. So it’s worth keeping this in mind.
</div>
<h2>Get into Perth</h2>
I’m also continuing my investment in <a href="http://www.ironfish.com.au/blog/2018/03/19/perth-brisbane-adelaide-housing-affordability-best-20-years/" target="_blank">Perth and Adelaide</a>. I feel like the Perth market has bottomed out and it’s a great opportunity now to invest, not just for myself personally, but we’re looking closely for our Ironfish investors as well.
When property values start going up, most people aren’t aware of all the underlying factors that tend to drive prices up. For example, I also invest in shares, and I’ve noticed that my investments in mining stock have actually fared better than before. At the end of last year, there was also an industry report that suggested the mining downturn has come to an end – with higher prices reported across the board.
<blockquote>
Warren Buffett once said, that as an investor it is wise to be “Fearful when others are greedy and greedy when others are fearful.” I tend to stick to this motto. Most people will wait for 3-4 years when the market is really booming to get on board, and that’s already too late to get the biggest gains.
</blockquote>
While it might still be a little bit early for some investors, for long-term investors, one thing is for sure: <a href="http://www.ironfish.com.au/blog/2018/03/29/now-good-time-buy-property-perth/" target="_blank">you’re not going to miss out</a>. Get into Perth!
<h2>Top investment tips for Sydney</h2>
This year I’ve also bought a little bit in Sydney. Although the market has slowed down, there are still pockets of opportunity in <a href="http://www.ironfish.com.au/blog/2018/05/30/south-west-sydney-suburb-primed-growth-see/" target="_blank">Sydney’s west,</a> for example, with the 2nd airport coming in. But you do need to be careful. Be very strategic and almost fanatical when it comes to investing in Sydney and to some extent, Melbourne.
<div id="attachment_7276" class="wp-caption alignnone">
<img src="https://www.urban.com.au/images/2017/11/15/Sydney-3-cities-map.png" alt=""> The area around Badgerys Creek airport is planned as a 3rd CBD for Sydney
</div>
<h2>The goal I didn’t meet</h2>
I was hoping to acquire a substantial commercial investment property this financial year. I’ve been looking in Sydney and Melbourne, but haven’t been able to find the right property, with returns being relatively low. Since I’m in my mid-50s, I’m moving gradually from capital growth to income as my main strategy, so I’m starting to put my money into these types of investments. But I’ve put my feelers out there and I’m more serious than ever to make this investment, so we will see!
<h2>Looking ahead to 2019:</h2>
<h2>Key market challenges – and how to meet them</h2>
<ol>
<li>
<h4>Market confidence</h4>
</li>
</ol>
One of the key challenges for any investor is confidence. When things are rosy, when all you hear are good stories from friends, from the media, when you’re experiencing capital growth – this is what will encourage many investors to enter the property market, or stay in the market.
With the Sydney market posting negative growth, albeit a small percentage, there’s plenty of negative or gloomy sentiment in the market. But for long-term investors, if you have the money to buy the right property in the right location, if you have the ability to hold that property and service your loan over the long term – then you shouldn’t be deterred. It’s about thinking where you’ll be or where you want to be financially in 15+ years’ time.
<ol start="2">
<li>
<h4>Lending</h4>
</li>
</ol>
With the Royal Commission, and tightened investor lending, (though there has been some loosening up as well, with some interest only loans extended or advanced) banks require more documentation and people need greater qualification to borrow money to invest. Which means people need to make sure they are being prudent when they go to make a purchase. It’s important to speak to multiple financiers and ensure you have enough buffer in your equity, savings or serviceability so that you can settle.
I remember in the last few years of the Sydney boom, people would go with whichever broker, or bank manager who would lend them money. Now you really need people who understand the bigger picture, you probably need a more senior, more experienced professional to <a href="http://www.ironfish.com.au/blog/2017/08/17/need-good-mortgage-broker-spot-great-one/" target="_blank">strategise within your mortgage and structure</a>.
That said, it’s still easier than way back when I first started as an investor!
<ol start="3">
<li>
<h4>Selecting the right property</h4>
</li>
</ol>
Investors need to be a lot more selective when it comes to <a href="http://www.ironfish.com.au/project-details/?project=current" target="_blank">choosing a property</a> within the current market. People need to be more wary of inferior quality developments and stick to properties that have strong owner-occupier appeal. When you’re aiming for capital growth, properties designed for owner occupiers will appeal to a wider spectrum of buyers – so if you decide to sell, you can access the whole market, not just investors.
<h2>4 tips and trends to watch</h2>
<ol>
<li>
<h4>More non-bank lenders</h4>
</li>
</ol>
With major banks tightening up on lending, this has opened an opportunity for more non-bank lenders to come and fill the space and meet the needs of the market. It’s something that happened in the last cycle – that could happen again. It’s a trend we’ve already seen, for example, with FIRB lending, with more and more mortgage funds coming in to fill some of the gap.
<ol start="2">
<li>
<h4>Look for areas that have yet to boom</h4>
</li>
</ol>
It’s important to note that the so-called ‘boom’ has really only happened in Sydney and Melbourne. And while these markets may be slowing, there are others performing very well – such as Hobart. I also believe very strongly in Brisbane, with Perth and Adelaide typically following, based on historical records. At the peak of its last cycle, the Perth median price was getting close to Sydney median price. Gold Coast at peak of last cycle almost equal to Sydney.
And while Melbourne houses have done better than Sydney in recent years, I think Melbourne apartments will catch up, with recent planning changes and reduced supply of new developments.
<ol start="3">
<li>
<h4>Prepare well for <a href="http://www.ironfish.com.au/blog/2017/08/18/prepare-property-settlement-time/" target="_blank">settlement</a></h4>
</li>
</ol>
For off-the-plan investors who have already purchased, speak to a number of brokers, prepare enough buffers to ensure you can settle. For new investors, when you go into a new building, make sure you are confident with the track record of the developer.
<ol start="4">
<li>
<h4>Gather your team</h4>
</li>
</ol>
Though the economy is strong, we are in a relatively uncertain period in terms of lending. So, now more than ever, people need to have the right team around them. Experienced people from different fields with their best interests at heart and who are positive – who don’t give up easily. 
When faced with a challenge, many people look for easy way out. But consider this, if you plan to give up on your property investment, what alternatives are there?  Because fact of the matter is, so many Australians will not have enough saved for retirement. So now is the perfect time to learn more, to become more financially literate so you can be better prepared for your future.
<blockquote>
It’s easy in the ‘post-truth’ era to be swayed by others, or by incredible stories of overnight cryptocurrency billionaires. But the fact is, investment isn’t speculative. For us at Ironfish, it is about common sense: acquiring a portfolio of quality properties in a great location and holding it over the long-term.
</blockquote>
To borrow another piece of wisdom from Mr Buffett: “If you aren’t willing to own a stock for 10 years, don’t even bother holding it for 10 days.”
It’s the same with property; people may make money in the short term through sheer luck, but investing is a long-game, and there will always be challenges. That’s why we’re here to help you every step of the way.
Joseph Chou is the founder and CEO of property investment firm Ironfish.
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