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

Joel Robinson

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

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

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

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

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

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

Bottega House secures landmark riverfront site in St Lucia 

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

SIERA kicks off construction at Northcliffe tower Exhale

off-the-plan

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Online property auctions have been a growing trend in the world of real estate, as a service for interstate and international clients who are physically unable to attend auctions in person. Since the <a href="https://www.theguardian.com/world/2020/mar/26/coronavirus-restrictions-tipped-to-send-australian-house-prices-tumbling">ban on open-house inspections</a> was made by the Federal Government, with the majority of Australian living in Government-advised <a href="/guides/covid-19-how-apartment-dwellers-can-keep-themselves-safe-during-self-isolation">self-isolation</a> and <a href="/guides/covid-19-how-to-adapt-to-working-from-home">working from home</a> to prevent further spread of the Coronavirus, more people are taking an interest in online auctions.

There has also been a surge of online off-the-plan enquiries, online inspections, digital walk-throughs, and demand for VIP appointments and online property auctions. 

Whether auctions are in-person or online, they are a highly competitive environment, which can seem like a daunting option for many property seekers. To help you bid in an auction with confidence, here are some tips that could help you win your dream home.

<h2>Do your research</h2>

<a href="/guides/how-to-navigate-buying-property-during-the-covid-19-crisis">Navigating the real estate environment during COVID-19</a> has been challenging, with many homebuyers relying on real estate websites and online resources to provide them with sufficient information. 

Whether you intend on living in the property or renting it out as an investment, you will need to ensure you are well prepared and informed. 

It is advised that prior to bidding or purchasing a property prospective owners should complete their own research on various different properties, sale prices, surrounding amenities and real estate data on neighbouring suburbs or cities. 

<h2>Looks can be deceiving </h2>

[smartcode_project:default project_id=6257]

Property inspections allow prospective buyers to visit the house in person and envision whether the home suits their lifestyle or standard of living. Real estate agencies affected by the ban on open houses are sharing more photographs, floorplans, and <a href="/news/urban-s-tour-of-the-escala-newquay-display-suite">walkthrough videos</a> to help assist with the visual aspect of buying property remotely.

While this does provide buyers with a clearer view of the property, it is important to remember that looks can be deceiving as some properties can be manipulated to appear better looking on paper or in photos than they do in person. 

There are also a number of features to <a href="https://contractorsfromhell.com/7-things-to-look-out-for-during-an-apartment-inspection/">look out for during an inspection</a>, which can't necessarily be seen in photographs or in a video. These can include the quality of materials used in the build and the itemisation of inclusions and optional upgrades. This information can be obtained by requesting a full material breakdown, and by talking with the sales agent about what is included in the property price. 

Some agencies are still allowing in-person tours for VIP appointments if you do have the opportunity to attend a house inspection Apartments.com.au has created a <a href="/guides/home-inspection-checklist-step-by-step">step-by-step home inspection checklist</a>. 

<h2>Read up on the rules</h2>

Prospective buyers can prepare for an online auction by familiarising themselves with the rules and regulations of the auction, paying the deposit and registering themselves on any necessary platforms. 

<h2>Deposit registration</h2>

As mentioned above, prospective buyers participating in the auction are required to pay a deposit prior to placing a bid. This ensures that everyone that participates is genuinely interested in the property and has followed all the necessary procedures. 

Some agencies accept deposits through bank cheques while others request direct monetary funds transferred through internet banking or trust. 

It is important that you always check that the selling agency has received your deposit prior to bidding, as buyers that win the auction but fail to transfer the deposit risk losing the property altogether. 

<h2>Think fast </h2>

Property auctions can be competitive and fast-paced, so first-time online bidders should ensure that they are not left behind by ensuring they are well prepared.

Some bidders may be more invested in a property than others, and will refuse to back down by placing larger bids than others. The best way to avoid being intimidated is to not hesitate and place a counter bid immediately after theirs. 

[smartcode_project:default project_id=28100]

Since the auction is taking place online and you are unable to read the facial expressions of other bidders, placing a counter bid directly after another person's offer can show confidence (just make sure you set yourself a limit). 

<h2>Strategise </h2>

Observe the patterns other bidders are using. For example, some bidders may start low and build their way up, others may only watch the bids and then surprise their competitors with a high number, and lastly, some will quickly counter bid their opponents immediately after a bid. 

Observing how others manoeuvre and behave in an auction early on in the bidding, can help you plan your own strategy. 

<h2>Throw in an odd number</h2>

There is a popular belief that you have to place a bid with a round number such $200,000 and whilst most auctioneers prefer them, you can bid an odd number to throw off other bidders. Throwing in a bid with an odd number such as $203,000 may come as a surprise to many new bidders, and could potentially disrupt their strategy or rhythm they have developed throughout the auction. 

This will also help buy you time to strategise which bidders are in for the long run and which ones will begin to drop out. 

Some people also create a budget prior to bidding at an auction, for example, they may set their limit to $600,000 and no more. If you throw in a large odd number by surprise such as $607,000 they are often more likely to quickly drop out which can help you win faster or eliminate the majority of your competition. 

<h2>Conclusion </h2>

There are many different tactics and strategies that can be used to win an auction, but the most important can only be utilised if you complete all the necessary paperwork and research. 

And while you do need to place the highest bid to win an auction, a tactful bidder could have a greater chance of beating their competitors.
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Tips for bidding at an online auction 

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If you’ve never owned a property in an Owners Corporation* before, and aren’t sure what to expect financially, here are <a href="/guides">some questions</a> I tell clients to ask themselves to help them determine what <a href="/guides/how-to-make-strata-fees-work-in-your-favour">fees they could be expected to pay</a>.

*formerly known as a Body Corporate

<h2>1. Does the complex have a lift, gymnasium or swimming pool?  </h2>

If so, costs to maintain these types of facilities can be significant. And, if you own a property in a complex with one of these, it is likely your Owners Corporation Fees will be higher than those in a complex without.

[smartcode_project:default project_id=3730]

<h2>2. How many lots (apartments, units) does the complex have?  </h2>

Usually, the higher the number of lots, the lower the fees. Why is this? Because there are more people to share costs with. And even though the operating costs of larger complexes can be more significant, because there is a lot more common property to maintain – and often, in larger complexes, there are facilities like lifts, gymnasiums, and swimming pools – the operating expense is spread out across the number of lots, so an individual’s contribution tends to be less overall.  

[smartcode_project:default project_id=4807]

<h2>3. What percentage or unit of liability is your lot on the Plan of Subdivision?  </h2>

If there are varying percentages or units of liability, the higher the percentage or unit of liability, the more you will pay in Owners Corporation Fees. Unsure what your lot’s percentage or unit of liability is? Check the Plan of Subdivision for your Owners Corporation, which contains this information.  

The percentage or unit of liability per lot is determined by the surveyor early on, most often before building construction commences. Quite often, the percentage or unit of liability will be equal (which then generally results in everyone paying the same or equal amount of Owners Corporation Fees).  

However, this is not always the case. There are factors that determine whether a particular lot may attract a higher percentage of liability, and more often than not, the size of the lot is the main contributing factor. If you’re planning to purchase a three-bedroom penthouse apartment, as opposed to a one-bedroom first-floor apartment, and the percentages or units are varying, it is likely your share of the Owners Corporation Fees will be higher than those of the one-bedroom first-floor apartment.  

[smartcode_project:default project_id=22584]

<h2>4. Is there more than one Owners Corporation/Subdivision, and is your lot part of more than one Owners Corporation/Subdivision?  </h2>

Some complexes have multiple Owners Corporations/Subdivisions. Again, this is something that is generally determined by the surveyor before building construction commences. But this does mean that there are multiple areas of common property to maintain, which can result in you having to contribute towards the operating expenses of more than one Owners Corporation. For example, your property might be on the upper floor of a complex and accessed via a lift which is in the common property for Owners Corporation/Subdivision 2. The properties on the ground floor, which aren’t accessed via the elevator, may not be part of Owners Corporation/Subdivision 2, therefore they are not required to contribute to the operating expenses of this Owners Corporation.

<h2>5. How much is my Owners Corporation’s insurance?  </h2>

As well as covering the cost of regular maintenance, repairs, common utilities, essential services, management, and other expenses, Owners Corporation Fees also include the <a href="/guides/contents-vs-strata-insurance-a-guide-to-understanding-the-cover-for-your-brand-new-apartment">cost of insurance</a>. This can often be the most significant expense for an Owners Corporation (although, when divided up and compared, an individual’s contribution towards the insurance in an Owners Corporation, is often less significant than the cost of home and contents insurance for a stand-alone property).  

[smartcode_project:default project_id=29947]

Owners Corporations are obliged under Section 54 of the Owners Corporations Act 2006 to <a href="https://www.lookupstrata.com.au/owners-corporation-insurance-requirements-victoria/">have insurance</a> for the buildings and common property, including public liability. And the quality and style of the complex can impact on how significant the insurance costs are.  

Although the above is not an exclusive list of factors that will determine how much an individual can expect to pay for Owners Corporation Fees, and the overall operating expenses of an Owners Corporation can vary significantly, generally these factors can assist an individual in understanding why the Owners Corporation Fees in one complex, might differ from those in another.  

Where to next? If you’re considering purchasing a property in an Owners Corporation, refer to the <a href="https://lplc.com.au/ufaqs/what-owners-corporation-information-must-be-included-in-a-section-32-statement/">Section 32</a> for specific information on the property, including what the current Owners Corporation Fees are, or seek advice from your solicitor or conveyancer.

If you already own a property in an Owners Corporation and aren’t sure why your Owners Corporation Fees are at the level they’re at, contact your manager or chairperson and request further advice or a copy of the Owners Corporation’s Budget. After all, it’s important for all individuals to clearly understand and be aware of what the operating expenses of their Owners Corporations are.    
 
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How much can I expect to pay for owners corporation fees?

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Are you in looking for a home which you're planning on living in? Whether it’s your first home or you’re looking to downsize once the kids have flown the coop, a townhouse could be an excellent choice for you. More and more residential <a href="https://www.littlefishproperties.com.au/">property developers in Melbourne</a> are creating side by side <a href="/new-townhouses">dual occupancy townhomes</a>, giving you more flexibility to secure a larger home, for a lower cost. Now you might not have considered this idea, firm in the belief that you need a detached dwelling for your lifestyle and your family's needs. However, you may find that a townhome could be just what you've been looking for. Here are four reasons why a townhome is perfect for the owner-occupier.

<h2>Priced out of the inner-city?</h2>

If you’re a first home buyer and are already priced out of city fringe suburbs, there are other options worth considering. Instead of resigning yourself to a detached, cookie-cutter house in the urban sprawl, with a colossal commute and lack of amenities, consider a townhouse closer in. You may find that if you start searching for a townhouse in suburbs you initially thought unaffordable, you might strike gold. 

<h2>What's not to love about off-the-plan?</h2>

When looking for a townhouse to occupy, you’ll find many off-the-plan properties popping up in your real estate searches. There are some <a href="/guides/how-much-do-you-really-need-to-spend-on-an-apartment">proven benefits to buying off-the-plan</a>. 

If you’re a first-home buyer, you can access <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">government grants</a> providing you’re purchasing a brand new property. These can range from $10,000-20,000 and are definitely a boon considering that’s money you won’t have to pay off your mortgage long-term, saving you interest. 

You may also be eligible for an exemption or concession on your stamp duty tax. As well as this, some property developers might offer discounts or incentives on off-the-plan projects, meaning you might pay less than if you purchased an existing property. 

Buying off-the-plan can also increase your capital growth without you lifting a finger. If house prices rise in your area after you’ve signed a contract for an off-the-plan property, there is a chance that your home may increase in value by the time construction has completed. But you’ve locked in your price in the contract. This means that your loan-to-value ratio goes down, which reduces your chance of paying Lenders Mortgage Insurance, which can number into the thousands. The property market is already forecast for growth this year. 

You’ll also save on repairs and maintenance costs when compared to an older, existing property. Everything in an off-the-plan property is brand new, including most appliances, fixtures, and fittings. It will be a few years before you need to make any repairs or have any maintenance done. 

Finally, an off-the-plan purchase gives you more time to save money. There’s always a gap in paying your contract deposit and your settlement (usually on completion of the build). You can save a considerable amount during this time, which you can then put towards moving costs, use as a financial buffer in case of any unforeseen circumstances, or as extra cash on your mortgage once it is drawn down.

<h2>What About Utility Costs?</h2>

The cost of utilities in Australia can be close to $200 a month. A townhouse usually costs less to live, as opposed to a detached house. This is because there are generally fewer square metres to heat and cool, and less wasted space. With a few strategically placed split systems or a ducted heating and cooling system, your energy costs will be less than a stand-alone home. This means you have more spare money to put on your mortgage, or towards the things you enjoy in life.

<h2>Do You Still Have Privacy in a Townhouse?</h2>

While many townhouses are considered semi-detached, they can still share walls with other properties. Yet the chances of you hearing your neighbours are pretty slim, especially if your home is well insulated and features double or even triple glazing. You’ll usually have your yard or courtyard separated by fencing as well, guaranteeing you a private outdoor space. A townhouse offers the most amount of privacy of any dwelling apart from a detached house. 

<h2>Final thoughts</h2>

I believe that gaining entry into the property market is moving further away from everyday Australians. The onus is on individuals to find a way into their dream suburb, and these townhouses are a great option. Not to mention the many benefits you enjoy when purchasing off-the-plan. So don’t rule anything out, enter the market with an open mind and be patient and disciplined in your actions. Hopefully, now you have enough information to make the right decision for you.
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Dual occupancy homes: Arguably the best value for money on the market

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COVID-19 has gone from a distant news story to <a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">now impacting every one</a> of us at a speed that has taken the nation – and the world – by surprise.

<a href="/guides/covid-19-how-to-adapt-to-working-from-home">Adaptation is now paramount</a> for every operator, in every industry, and real estate is no different. Service providers need to find ways to adjust, and fast, because people still need to buy and sell property – perhaps even more so once the real economic impact starts to play out.

Let’s look at some of the potential effects of Coronavirus on the Australian property market.

<h2>March/April 2020 – immediate effects &amp; emerging trends</h2>

The Australian property market <a href="https://reia.asn.au/backing-the-governments-advice-on-auctions-and-open-houses/">changed overnight on March 25</a>, with both in-room and onsite auctions, and open homes, being <a href="https://www.pm.gov.au/media/update-coronavirus-measures-24-March-2020">banned by the Prime Minister</a> and industry bodies bracing themselves for (and lobbying against) further restrictions.

Buying a home or an investment property is a significant decision often fraught with potential stresses at the best of times. So not surprisingly, we already see a softening in the market and both investors and homeowners putting searches on hold.

Having said that, there are existing ‘cashed-up’ buyers out there who need to buy now, having already sold their existing house. Investors will also certainly look to make the most of the current situation and buy discounted stock. Prices are, as you’d expect under such circumstances, coming off. With lower levels of buyers in the market, competition is not as strong, which means that results have not been as high as they were even a couple of weeks ago.

In the medium term, as employment fluctuates and, devastatingly, people lose their jobs, many Australians are going to be highly motivated to sell their property. This will cause further softening of prices in the property market and, because of social distancing rules and the measures people are taking to prevent possible infection, it is becoming increasingly difficult – and unappealing – to do even private inspections.  

This will likely be the case for the next couple of months as the Coronavirus pandemic peaks – and is hopefully resolved – in Australia.

<h2>The longer-term projection?</h2>

Once we’ve managed to get through this immediate crisis and the worst of the pandemic’s impact has dissipated, we’d expect is for <a href="/news/covid-19-understanding-what-you-can-and-cant-control-the-importance-of-cross-referencing-facts">people’s collective fears</a> to diminish fairly quickly, resulting in a jump in pricing.  Buyers currently holding off their searches will return, increasing competition. But ultimately, it’s a grey area for both the Australian and the global economy, so the long-term economic impact of Coronavirus simply isn’t known.

<h2>Buyers, don’t be afraid to seek help</h2>

Buyers’ agents – agents acting solely on behalf of buyers during a property transaction – are inherently well equipped to help buyers navigate some of the immense challenges the COVID-19 pandemic presents.

<a href="/guides">Video walkthrough</a> provides a full virtual property tour that can be viewed from anywhere in the world. These tours were originally created to service the needs of people who didn’t have physical access to view properties, such as overseas investors, however now this content can be made use of by everyone.

Bidding services are another option, enabling buyers to avoid auction rooms. 

<h2>Advice from the experts</h2>

If you’re looking for your new home or a long-term purchase, negotiate now. You’ll find you’ll be in a marketplace that’s going to be <a href="https://www.theguardian.com/australia-news/2020/mar/20/australian-housing-market-will-hit-the-wall-in-coronavirus-recession-experts-say">down between 10-20%</a> from its standard peak pricing, and you’re already getting a discount. If you’ve found what you feel is the right home for your wants and needs, don’t be too cautious about purchasing – if you have secure financials and have done thorough due diligence research.

A bargain-hunter will want to buy the cheapest possible property at the best price, so watch and wait over the coming weeks.

Make sure your finance has been approved. If you’re ready to act swiftly and <a href="/developments">secure the property that’s right for you</a>, at the right price. 

Nobody knows what the market is going to be doing in <a href="/news/covid-19-how-the-world-previously-recovered-from-sars-and-whether-or-not-we-can-do-the-same-this-time-round">6, or even 3 months</a>. If you are in the market to buy property, do as much research as you can, and find out what your trusted experts – who live and breathe the market daily – are forecasting and would recommend for you as they may just point you to a great opportunity.  
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How to navigate buying property during the COVID-19 crisis 

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With so many different options available for residential property investors, how do we decide on what is the best strategy when there are so many gurus out there promoting various investment strategies?

Whilst there is no cookie-cutter approach (and there shouldn’t be, for something so important), what I have found is that the only way to true long term wealth in property is to have a long term focus. This sounds simple, and it is but time and time again I see investors pack up and go home and give up on their dreams because ‘it didn’t work’. Sadly, had these investors had more of a long term focus, a plan, and a team around them to help them succeed, then perhaps their results would have been different. There are two components to this that cause people to give up. Firstly, they chose the wrong property, most likely in the wrong area for the wrong price, at the wrong time. Secondly, they probably sold that property because they followed the advice of well-intended family and friends, the media, or more commonly, they simply got impatient and sold up. Whatever the reason, to have long term success in property we need to take some of the focus off the ‘property’ and put some emphasis on the ‘strategy’ which is what is lacking for most investors.  

So if we are looking for an investment option that can take away some of the stresses and financial pains that a lot of investors face, causing them to sell and give up, then perhaps buying off the plan could be the smartest decision you ever make. Now, of course, this is just general information and may not suit everyone, however here’s a snapshot of 7.5 reasons why buying off the plan could be a good strategy for you:

 

<h2>1. LESS HEADACHES </h2>

When building a property portfolio one of the biggest headaches and frustrations for property investors, is maintaining the asset and making sure you can manage cashflows. Often I find that investors get disheartened and frustrated with their property investing because of the ongoing costs, and it slows them down. Looking over their portfolios it's often clear that the types of property they have chosen to invest in are inappropriate for their situation. You see, an older property may need significant repairs and maintenance to keep it up to standard. Often we find that big-ticket items need to be replaced, such as hot water systems, kitchens, bathrooms, or even bigger issues like a roof replacement or rewiring that can come out of the blue. It’s surprising how many people are out there buying investment properties but not considering these huge costs that need to be factored into their overall cashflow position.

 

<h2>2. BETTER CASHFLOW </h2>

With a nice new property available for rent, you will often find that tenants are looking for all of the amenity that new properties provide. With more and more people renting these days, it’s no surprise that tenants are looking for all of the modern conveniences that owner-occupiers enjoy. When I was growing up, we always knew which were the ‘rentals’ in an area – they were always tired and run-down properties. But now, due to house prices being out of reach for many, our society is in the middle of a shift over the next few decades of learning to become ‘renters for life’. If you are looking to rent, no doubt you will pay a slight premium to live in a property with a dishwasher, new carpet, working air-conditioning and heating and secure parking. Tenants are more likely to stay for longer leases if they are happy with the amenity of both the property and the suburb it is located. This balances out your cash flow and will help you to keep the portfolio going, without having to keep big buffers aside for repairs, that could be put to work elsewhere. 

 

<h2>3. TAX BENEFITS </h2>

As an investor, you have the luxury of claiming depreciation benefits on your property which can give you a boost in your tax return. Second hand (established) properties do not provide such substantial tax benefits which can mean that investing in new properties can help you build your portfolio faster. I always teach people that its less about the property and more about the strategy. Of course the property is important, but you need to know how the property fits into your strategy. If you have your strategy wrong, it doesn’t matter what property you buy because you won’t know how it fits into the overall plan. Using the depreciation and tax benefits to your advantage can be a great strategy for your long-term investing and can put you ahead of the rest. The government wants to give you thousands of dollars for buying off the plan new properties, why not take it?

 

<h2>4. SHORT STAY </h2>

Depending on the location, your new property could be in an area suitable for short term accommodation. Many investors are using this approach to buy apartments in key lifestyle areas that are suitable for short stay accommodation using companies like Quickstay, AirBnB or other accommodation providers. Guests often like the amenities that a new property provides, just like a hotel room, which can assist with increasing yields. Imagine being able to stay in a well presented property that presents like a hotel, but for a significantly cheaper price. Providing you buy into an area that has good demand, this can increase your return and still provide you with a low maintenance investment that is managed by a professional company. Whilst select older properties are often suitable for this strategy, new apartments, houses and townhouses set up well, are often desirable giving that personal touch that hotels will never be able to provide.

 

<h2>5. AFFORDABILITY </h2>

Often when buying off the plan, the development you are buying into is on land that is being redeveloped. This means that the land may have previously been used for small commercial, residential or even farm land and now due to population growth is being repurposed for higher use. Often people will be priced out of an established area that is predominately houses, and when a new development is launched, this can provide you with an opportunity to buy in to a suburb that you may not have been able to afford previously. When there is higher density, that often brings down the entry price point in an area, so for significantly less outlay than a house you may be able to secure an apartment or townhouse in a great suburb that is more affordable.

 

<h2>6. SUBURB UPGRADE </h2>

When redevelopment is happening in an area, this may be due to regentrification or rezoning of land. This can mean there is opportunity for growth which can assist with boosting your portfolio value. Off plan properties in areas that are being redeveloped can give you access to new infrastructure such as schools and shops, and new train and other public transport options. Infill redevelopment can be a smart move as people will want to live close to existing infrastructure, whereas rezoned industrial or farming land can create entire new communities. When considering your options, you may be able to buy an older property in an inferior location, or perhaps a smaller but brand new property in a superior location with access to established infrastructure.

 

<h2>7. FASTER GROWTH </h2>

Buying off the plan could assist with building your property portfolio faster because you can take advantage of the ‘leapfrog strategy’. Essentially, this means you save your deposit for the first property and buy off the plan. Whilst that property is under construction you are saving your deposit for the next. When the first one settles, and you start collecting rent, collect your tax benefits, then you can put the deposit down on property number two. You continue to save, and over time you will have equity in property number one. This can provide enough deposit for you to purchase number three. This is an extremely simplified version of course, however we have used this approach successfully many times and by selecting the right property if can be quite successful. This approach works with your savings ability and your tax benefits, as well as the capital growth over time rather than simply waiting for growth on its own.  

 

<h2>7.5...</h2>

And lastly, all of this is simply easier because only around 7.5% of Australians invest in property, and the majority of those sell within the first 5 years. We have found that this is due to a lack of a plan, and often property just ‘didn’t work’ because buying the wrong properties can put a bad taste in your mouth. So, when planning your investment strategy, consider that buying off the plan, in the right area, with the right development, could set you on a course to continue building your portfolio when many other investors simply give up… The data shows that most people fail with their investing. Buying off the plan could be the smartest thing you ever do…
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7.5 reasons why buying off the plan could be the smartest decision you ever make

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Purchasing <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">an investment property</a> can be one of the best ways to invest your money and <a href="/guides/housing-market-effect-on-wealth">increase your wealth</a>. If you invest strategically, you could generate a return through passive income and tax breaks. However, a lack of research, knowledge and <a href="/guides/top-7-tips-on-how-to-value-a-house">understanding of the real estate market</a> could lead to poor financial gain. We’ve created a list of key factors to consider when securing the financial future of your investment property from choosing the right location to choosing an investment loan that is right for you. 

<h2>1. Do your research </h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2020-02-27_at_10.13.43_am.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="385" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2020-02-27_at_10.13.43_am.png?itok=IKLA-Bv_" width="580"></a></figure>Always do your research before making any real estate or financial decisions. 

When it comes to investing in property, there isn’t always a “safe option” financially, as it often requires a little financial risk to get the most return. Keep track of your investments by thoroughly <a href="/guides/understanding-the-property-cycle-when-buying">understanding the property cycle</a> and always remaining ahead of the market. You should also be <a href="/guides/how-to-negotiate-when-buying-a-house">open to negotiation</a> with real estate agents for better deals.  

<h2>2. Define your ideal tenant</h2>

It is essential to spend time getting to know any potential tenants, to determine whether they will be suitable for your rental property. Discuss how many people will be living in the house, whether they have stable employment or if they have lived in many rental properties previously. If they have a pet, ask whether they are house-trained.

While these questions may sound trivial, they could help you in selecting a great tenant who will look after your property.

<h2>3. Choose a popular location among renters </h2>

It is crucial to ensure the location of your investment property will <a href="/buildings/nbh-at-lachlan-s-line-25-27-epping-road-macquarie-park">attract tenants</a> and meets the requirements of their lifestyles.

For example, if your ideal tenant is a student, the property should be close to a university or library, whereas, if they are a young family, the property should be near a kindergarten (childcare), primary school and/or local playground. This will help to increase the popularity of your property among property seekers with specific requirements.

<h2>4. Find a property that is close to public transport </h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2020-02-27_at_10.13.26_am.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="385" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2020-02-27_at_10.13.26_am.png?itok=_ZcCm1T0" width="580"></a></figure>Houses near public transport are a desirable feature for those who prefer <a href="/news/city-of-melbourne-wants-to-see-less-cars-more-space-for-sustainable-transport-in-its-municipality">a more sustainable transport option</a> and do not drive. Finding a home on a popular tram, train or bus route will become a key selling point when you go to market your home for rent.

<h2>5. Seek advice from renters  </h2>

One way to determine the suitability of a rental apartment is to talk to tenants currently living within the building. Ask them how they feel about the environment, the value for money and the attentiveness of the body corporate, as this information could give you a better idea of the quality of the building and its maintenance. You could also seek advice from successful investors who are experienced and understand the property cycle. Based on Urban data, here is <a href="/guides/what-investors-are-looking-for-in-australian-properties-based-on-urban-data">what investors are looking for in Australian properties</a> and which <a href="/guides/insider-property-guide-booming-melbourne-suburbs-you-should-be-considering">Melbourne suburb you should be considering</a>.

<h2>6. Collate funds for your down payment </h2>

A downpayment is an initial payment in credit, cash or an equivalent form of payment, which goes towards the purchase of an expensive item such as a car or house.  When purchasing an investment property, you will be required to provide a down payment – which could cost more because mortgage insurance does not apply to investment properties. There are also additional expenses for approval requirements and renovations; you can read them <a href="/guides/top-10-hidden-costs-of-buying-a-house-or-apartment-in-2021">here</a>. 

<h2>7. Do your sums</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2020-02-27_at_10.03.29_am.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="384" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2020-02-27_at_10.03.29_am.png?itok=lv9aS0jc" width="580"></a></figure>Calculate the additional income you already have and match it with the amount you can borrow. Once you’ve found a property, you are interested in purchasing, create a contingency budget to allow for any renovation expenses (if renovations are required), the overall operational cost of running an investment property and a fallback for any unforeseen issues. We recently explored how much buyers actually need to spend on an apartment; you can read about it <a href="/guides/how-much-do-you-really-need-to-spend-on-an-apartment">here</a>. 

<h2>8. Avoid overspending on your first investment</h2>

Investment advisors suggest that even if you are willing to spend a million dollars on an investment property - it is wise to select a property <a href="/guides/buying-right-investment-wise">between the lower-midrange price bracket of $225,000</a>. Keeping the range as low as possible also keeps you in a safe-zone as an investor, as it keeps you from losing money if you do not meet your expected profits. Did you know there are also ways you can <a href="/guides/how-to-invest-in-property-with-no-money">invest in property with no money</a>? 

<h2>9. Consider investment loan options </h2>

When collecting funds towards your first investment property, there are several investment loans you should research before purchasing. Ideally, you may want to <a href="/guides/how-to-choose-the-right-home-loan">select a loan</a> that provides you with the option to split the credit with a line-of-credit-facility. 

<h2>10. Choose any investment partners carefully</h2>

If you wish to purchase your investment property with a friend or business partner instead of taking out an investment loan, you will need to choose your investment partner carefully. You should look to base this decision on their financial security, reliability, experience as an investor and the status of your relationship, as well as any financial implications of the partnership agreement. Before embarking on any financial venture with another person, it is very wise to get a contract drawn up to avoid any disputes in future (even if you don't anticipate any to arise).

<h2>11. Use the 1% rule</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2020-02-27_at_10.03.18_am.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="384" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2020-02-27_at_10.03.18_am.png?itok=U26qOnU7" width="580"></a></figure>The real estate investment term ‘1% rule’ refers to the method investors can use to determine whether a property is worth investing in. The rule suggests that an investment property should have a monthly return of no less than 1% of the price it was purchased at, including the additional costs of renovations.

<h2>12. Understand the expense of hiring a property manager</h2>

Some property investors choose to serve as landlords, managing day to day operations and engaging with their tenant, whilst others prefer to hire an external property management service. A property manager will be available throughout the day to help your tenants with any requests, and most real estate firms also have round the clock care for renters should any issues arise. Using a <a href="/guides/tips-for-negotiating-with-real-estate-agents">rental agent</a> is more of a time-saver than money saver as they do charge a fee. 

<h2>13. Investment properties require you to fork out funds regularly</h2>

An investment property is not a one-off purchase and requires <a href="/guides/18-ongoing-rental-property-costs-and-which-ones-are-tax-deductible">ongoing maintenance</a>. Landlords (investors) are expected to <a href="/guides/2019/06/24/own-rental-property-here-are-14-things-to-check-to-avoid-major-problems-in-future">financially cover issues that may occur in the house</a>. One way to financially manage this is to create a budget or add your current household budget so you know where, how much and when to allocate funds when they are required. 

Additional expenses include:

<ul>
<li>Property tax (required)</li>
	<li>Homeowners insurance (required)</li>
	<li>Property management expenses (optional)</li>
	<li>Home-owners corporation fees (case-by-case)</li>
	<li>General upkeep costs such as cleaning and landscaping (required)</li>
</ul>
<h2>14. Research the risks</h2>

Purchasing an investment property is no different from any other business deal in terms of the associated risks which can lead to loss of money. 

<ul>
<li>Some of the risks include: </li>
	<li>Your property might not meet the 1% rule </li>
	<li>You may spend more money on the renovations than anticipated</li>
	<li>The local market economy could change, for example, the value of the suburb may decrease due to an increase in crime</li>
	<li>The property taxes may be increased </li>
	<li>An accident or disaster may occur and you may have to pay for expensive repairs</li>
	<li>You could have bad tenants with poor hygiene or that break your rules, resulting in cleaning, repair or eviction cost</li>
</ul>
<h2>15. Invest in high-quality fixtures </h2>

<a href="/guides/20-things-you-should-look-out-for-before-you-buy-property">Before you buy property</a>, you should look out for high-quality fixtures within the home or determine where you should include them on the property. Investing in high-quality fixtures may help prevent any incidents or damage, and limit the amount and cost of repairs required in your investment. It will also add to the design of the house and encourage tenants to take pride in and look after the property. Urban has created an <a href="/guides/home-inspection-checklist-step-by-step">inspection checklist</a> that could help you determine what fixtures may need to be included, upgrades and what tenants will be looking out for in your investment property. 
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Olivia Round

How to ensure financial return on your property investment in 15 simple steps

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Placing an offer on your dream home is an exciting process, especially if you’re a first home buyer. As with any significant purchase, doing thorough research is vital before putting your pen to paper, and having a greater understanding of the buying process could help boost your confidence and bargaining power.

In this article, you’ll learn more about:

<ol>
<li>Considerations for getting your finances in order</li>
	<li>Due diligence you could consider undertaking</li>
	<li>The different sale types in the market</li>
	<li>The pros and cons of unconditional vs conditional sales</li>
	<li>How to determine how much you should offer</li>
	<li>Tips to help you place your offer with confidence</li>
</ol>
<h2>1. Getting your finances in order </h2>

Firstly, it is important to determine your budget from the outset before you place an offer on a property. This will help mitigate issues such as offering too much for a home you can’t afford or taking on a mortgage you are unable to service. If you’re a first home buyer, it could also be a good idea to research whether <a href="/guides/how-to-navigate-australias-first-home-buyer-grants"><ins cite="mailto:Shay%20Waraker" datetime="2019-10-21T10:30">any government grants</ins></a> may apply to you.

In the current Australian property market, a minimum deposit on a house can cost anywhere from 5% to 20% of the sale price. You will also need to factor in additional fees such as legal costs, building reports and Stamp Duty*. <a href="http://www.canstar.com.au/home-loans/what-are-the-real-costs-of-buying-a-house/">Additional costs</a> will vary from buyer to buyer, so it is best to consult with a property lawyer about which ones apply to you.

[smartcode_project:default project_id=28314]

*Stamp Duty is the tax associated with buying property in Australia. If you’re looking to purchase a new apartment which will be your primary residence, then you may be eligible for an off-the-plan stamp duty concession. While Stamp Duty concession policies vary state to state, the concept generally means that the duty you’re required to pay on the property you’re purchasing is heavily subsidised to account for construction costs.

For example, if you were looking to purchase a $500,000 off-the-plan apartment, but $400,000 of that is to be spent on construction costs, the dutiable value of your home would be $100,000*.

Once you’ve got a budget in mind, if you’re going to require a home loan then you’ll need to decide whether you would like to opt for a fixed rate or variable rate loan. A fixed rate is where the interest rate remains stable for a certain period of time. This can provide you with more certainty and enable you to set up an automatic payment to make weekly or monthly payments of the fixed rate.

However, a variable rate means that as interest rates fluctuate, so does your repayment rate. This option is more unpredictable, with the potential for your rate to increase or decrease depending on the market.

There are also two ways you may be able to pay your loan.

<ol>
<li>
Principal + interest loan: This type of loan will mean you are paying both the principal (the amount you borrowed to purchase the property) and interest at the same time.</li>
	<li>
Interest-only loan: Interest-only loans can reduce the amount you pay weekly, but keep in mind you will only be paying the interest, without contributing towards the principal.</li>
</ol>
If you are unsure which repayment type suits you, it could pay to seek the help of a financial advisor.

You may also choose to apply for <a href="https://www.canstar.com.au/home-loans/get-home-loan-pre-approval/">home loan pre-approval</a>, which could be a useful way to understand how much you are eligible to borrow from a lender.

<h2>2. Undertaking thorough due diligence </h2>

Due diligence is the research required prior to placing an offer to check whether the property is a good investment for you. Due diligence is undertaken throughout many stages of the buying process, but before you make an offer, it can help you to determine if the property has been constructed to a high standard, using safe and healthy building materials – as well as a tool for deciding what the property may be worth. There are a number of things <a href="/guides/20-things-you-should-look-out-for-before-you-buy-property">to look out for</a>, and some of the key due diligence research can include:

<ul>
<li>When considering buying an off-the-plan property, investigate the track records of developers by running a background check online and reading news articles. It could also be a good idea to consult property industry experts (such as town planners, master builders and environmental consultants) to ask for honest opinions of the quality of work produced by the developer. Another option is to arrange a meeting with buyers of the developer’s previous developments via the sales agent, to discuss whether they’re happy with their home and if it was completed on time.</li>
	<li>Research the suburb where the property is located including checking crime rates, public transport options, planned infrastructure, property value increases/decreases over time and local schools. These factors will impact the overall liveability, safety and value of the property.</li>
	<li>Research the architect and builder responsible for the home. Consider their credibility and visit their completed developments to assess whether you’re happy with the quality of their work.</li>
	<li>Acquire all supporting documents for the property you’re interested in and read through them with a fine-tooth comb.</li>
	<li>Study the minutes from past strata/body corporate meetings and find out what will be required from you time-wise and financially as a resident if buying into an owner’s corporation*</li>
	<li>Find out whether the property has a heritage overlay and what renovations and modifications you are allowed to make to the property</li>
	<li>Take a look at Geospatial data (known as GIS maps) to identify any risks posed by sea level rising; property boundaries; the location of water, sewer and stormwater services; and more.</li>
</ul>
[smartcode_project:default project_id=29329]

*An owner’s corporation applies to shared residences where financial decisions need to be made for collective maintenance projects. 

When you’re ready to place an offer 

<ul>
<li>Consult with a conveyancing lawyer who will outline your rights and obligations</li>
	<li>Find out how the sunset clause* could be enacted in your state and whether you’re protected against loss of finances and/or the off-the-plan property you’re purchasing</li>
	<li>Find out what your rights are if your off-the-plan property is not delivered on time</li>
	<li>Ask how you will connect your property to utility services</li>
</ul>
*The Sunset Clause is essentially the ‘expiry date’ of an off-the-plan development which gives both the developer and buyer the opportunity to dissolve a contract if the building has not been completed on time.

Getting your offer contract drawn up by a conveyancing lawyer

An offer placed on a property is a legally binding contract, so by engaging a lawyer in the process will help to mitigate any miscommunication within the agreement. A specialised conveyancing lawyer can also help you negotiate the best deal. For example, your lawyer may suggest including a clause which highlights that you will not proceed with the sale should the property fail any inspections undertaken by a master builder or surveyor. This could include issues surrounding soil contamination, asbestos, structural issues and more.

<h2>3. Understanding the different sale types </h2>

TENDER 

A tender is often considered a silent auction where prospective buyers will submit an expression of interest offer in writing to the real estate agent, at a value they believe the property is worth. There is no suggested sale price apart from a capital value* to work from, but this is a good way for the vendor to assess how much the market is prepared to pay for their home – to which they can accept, provide a counter offer or decline.

*A capital value or CV is the recommended house and land value provided by a property valuer. If the valuation has been carried out over a year ago, it is worth engaging in a re-evaluation as the property market is constantly shifting, and house prices fluctuate.

SALE BY NEGOTIATION/PRIVATE TREATY 

Sale by negotiation or a private treaty is where the vendor sets the price, and prospective buyers will either make an offer or provide a counter offer. If a subsequent counter offer is provided by the vendor, the buyer may engage in a bartering process so both parties reach a sale price and agreement that they are both happy with.

[smartcode_project:default project_id=27839]

This sale type is often a longer process due to there being no set sale date, giving the vendor more time to settle on an offer they are comfortable accepting.

AUCTION 

The auction process is simple – prospective buyers bid in a competitive environment, with the highest bidder often winning the property on the day if the reserve price is met. In some instances, interested buyers may place an early offer before auction day in an effort to secure the property before it goes to auction. In Australia, auction clearance rates are high, meaning many properties will sell on auction day, rather than progress to a tender.

BALLOTS 

If there is high demand for an <a href="/new-apartments">off-the-plan apartment</a> a waitlist ballot could be created. Interested buyers can enter the ballot, and if their name is chosen at random, then they will be given the opportunity to purchase an apartment at a fixed price.

What do all three sale types have in common? Offers are made via a written contract

A contract offer can either be prepared by the buyer or the buyer’s lawyer. This is a legal document which states the amount the buyer is prepared to pay for the property and includes any conditions that need to be delivered in order for the sale to be finalised. It is encouraged that all offers are drafted with the help of a legal professional in order to help protect you against any unforeseen problems such as any hidden fees, unknown building rectification costs or any other issues that could arise between placing your offer to settlement and beyond.  

4. The difference between unconditional vs conditional sales 

Generally, when you make an offer, you can choose whether your offer is conditional or unconditional. This will generally depend on your circumstances and the property you are purchasing. Sometimes unconditional offers can be a more desirable option for vendors as they can result in a quicker, more seamless sale, however conditional sales can give the buyer the chance to negotiate a better deal.

A Conditional Sale is exactly as the name suggests – a sale with conditions attached. These could include (but not limited to):

<ul>
<li>Buyer’s finance is subject to approval</li>
	<li>Building/pest inspections still to be conducted</li>
	<li>The sale of buyer’s current home to be completed without any complications</li>
	<li>A certain fixture or fitting needs replacing</li>
	<li>The house needs to be professionally cleaned</li>
</ul>
Pros of conditional sale: 

<ul>
<li>If there are aspects of the home which need fixing, changing or even upgrading, buyers may include this in the conditions of sale. If the offer is accepted the vendor must honour these conditions before the buyer takes ownership of the property.</li>
	<li>Less risk involved if the buyer wishes to withdraw their offer, as a clause can be written to provide 14 to 21 days to finalise their decision about the purchase.</li>
</ul>
Cons of conditional sale: 

<ul>
<li>A conditional sale can span across a longer period of time while the buyer secures finance, which could result in the vendor accepting an unconditional offer if they’re looking for a quick transaction</li>
	<li>Unrealistic demands in your conditions may lead vendor to accept another offer</li>
</ul>
[smartcode_project:default project_id=29171]

An Unconditional Sale means that the buyer is willing to accept the property in its current state and can sometimes secure the home for a lower price point because of this. The buyer will have already secured approval for a home loan and has the deposit ready for immediate finalisation of the sale. It is a good idea to consult with a conveyancing lawyer and a registered builder/building inspector before opting for an unconditional sale, as there may be unforeseen issues with the property that might outweigh the savings you made from the sale. While it is imperative that the vendor’s agent discloses all issues present within the building – it is also important to do your own due diligence.

Pros of unconditional sale: 

<ul>
<li>An unconditional offer provides security for the vendor and therefore is more likely to be chosen preferentially over a conditional offer of a similar value.</li>
	<li>Since finance is already secured, buyers are able to place their highest bid with confidence.</li>
</ul>
Cons of unconditional sale: 

<ul>
<li>No longer able to back out of a contract</li>
	<li>The buyer may overvalue the property if making a hasty offer and won’t be able to change it</li>
	<li>If home loan finance is not approved, the buyer may have to forfeit their deposit</li>
</ul>
<h2>5. Deciding how much you should offer </h2>

You’ve got your budget in mind, you’ve accounted for additional upfront costs, now it’s time to decide whether you can comfortably service your mortgage. A great way to figure out your weekly or monthly repayments is by using a comprehensive mortgage calculator. This will factor in your deposit paid, interest, and home loan rate.

[smartcode_project:default project_id=24412]

CASE STUDY: 

NAB have set their principal and interest home loan rate at 4.92% per annum. If a buyer was to borrow $500,000 then their weekly repayments would be $613 p/w over a 30-year term. If the buyer was to borrow an additional $50,000, then this amount would increase to $675 p/w (a difference of $62 p/w).

When determining the price-point of your offer, some factors you may want to consider include how much you believe the property is worth based on market value, the condition of the home and your how attached you are to it. To gauge how much other listing in the area are selling for, you can research market values online, visit open homes in the area and speak with the real estate agents and sign up to mortgage brokering newsletters to stay informed about market trends. But ultimately, you’ve got to be happy with the property and comfortable with price based on your budget.

Depending on the type of sale you’re engaging in, you can generally place a low-ball offer, and have it either accepted or receive a counter offer from the vendor. However, if you’ve found the dream house and have the funds to pay your allocated amount for it, sometimes offering a decent price will avoid the risk of losing the property to a higher bidder if the vendor is looking for a quick sale.

6. Top tips when making an offer 

Know your budget before auction day 

Auctions are generally a high-pressure environment, which may lead some buyers to spend more than they initially intended, however attending an auction with a clear budget in mind is the best way to ensure you don’t exceed your spending capacity.

Seek loan pre-approval 

By securing your home loan before making an offer, your bid will have a stronger chance of being accepted as this provides more certainty to the vendor that you will be able to access the funds.

Have a contingency clause written up 

Worried you’ll get cold feet about the purchase? You can have your conveyancing lawyer write up a contingency clause – a legal document which generally accompanies your offer and is personalised to your requirements. For example, it might allow you 14 days to view the property again before the contract becomes binding. This will give you time to confirm your decision.

Triple check your conditions of sale 

If you’re asking the landlord to fix a window, but also want the property for $10,000 lower than the asking price – you might want to reassess your priorities. Consider the cost of your conditions versus the price you’re offering as the more conditions you can address yourself (and the shorter your list of requests) the more likely the vendor will be to take your offer over someone else's.

Include a personal letter 

Finally, you may like to include a personal letter to the vendor, sharing some background information about yourself and why you have chosen their property. Perhaps you love the house for its Victorian ceiling roses that have been so meticulously restored, or maybe you’re a young family with kids who are going to attend the school nearby. There can be a lot of emotional attachment for both parties when negotiating the sale of a house, so it can be helpful if the vendor is reassured that the property will be going to someone who will appreciate it.
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Step-by-step guide to placing an offer on a house

One of the many great cost benefits of buying off-the-plan is the ability to save on stamp duty fees. Many home buyers have saved thousands by purchasing a new-build home that meets their state’s concession criteria. In this guide, our aim is to help answer all your stamp duty questions and help you identify whether you could be eligible for a concession when you buy your new off-the-plan home.

Firstly, do you pay stamp duty if you buy off-the-plan?

Stamp duty is a mandatory cost associated with purchasing property in Australia. However, because an off-the-plan property is a ‘new build’, buyers may be able to reduce the cost of their stamp duty fees or dissolve the cost entirely. Special rules can also apply to <a href="/guides/2019/06/17/urbans-first-home-buyer-guide">first home buyers</a>, pensioners, and owner-occupiers. To find out which rules apply to you, read on, or check your <a href="#Source">state's revenue website</a>.

When is stamp duty payable on off the plan purchases?

Stamp duty is the taxable amount charged by the State Government for particular transactions including selling assets such as property. This is generally paid to the state revenue office before lodging the title transfer.&nbsp;

How to calculate off the plan stamp duty&nbsp;

Calculating stamp duty varies from state to state and depends on whether you're intending on living in your home or renting it out, as well as the market value of the property. You can use a <a href="https://exactly.net.au/calculators/stamp-duty-calculator/">Stamp Duty Calculator</a> to figure out home much you would be likely to pay for the apartment or townhouse you're interested in. Just bear in mind that you could also be eligible for one of the many concessions available.&nbsp;

How much can you save with off-the-plan concession?

To assist you with your home buying journey, here is a&nbsp;state-by-state guide to understanding some of the concession laws in your city*.

*For an in-depth break down of rules and regulations, visit your state's revenue website.

[smartcode_project:default project_id=5559]

<h2>VICTORIA</h2>

<ul>
	<li>You must pay the market value for your property. If the contract price is lower than the market rate, then you will not be eligible for the concession.</li>
	<li>You must be eligible for the principal place of residence concession or the first home buyer duty exemption or concession.</li>
	<li>Ineligible <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">First Home Buyer Grant</a> applications (who bought property for $750,000 or more) may still be eligible for the off-the-plan concession.</li>
	<li>All purchasers must be over 18, with the exception of purchasers who are the guardian of a person with a legal disability.</li>
	<li>Stamp Duty concessions are not available to company or trustee purchasers.</li>
	<li>At least one buyer must live in the property for at least 12 months from 12 months after settlement/acquisition of the property.</li>
	<li>For contracts signed before 1 July 2017, if you live at the property, you purchased you may be eligible for the principal place of residence duty concession if the dutiable value of your home is $550,000 or less (after adding the off-the-plan concession to your contract price).</li>
</ul>

<iframe frameborder="0" height="500px" src="https://www.urban.com.au/developments/vic?embeddable=list-map" width="100%"></iframe>

<h2>QUEENSLAND</h2>

[smartcode_project:default project_id=22057]

<ul>
	<li>Home concession is available to buyers when buying a second home</li>
	<li>First home concession is available to first home buyers and is a considerable saving, and sometimes can result in the buyer paying no stamp duty</li>
	<li>First home vacant land concession is a rebate given to those buying bare land to build their first home</li>
	<li>First home buyers can claim both a <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">First Home Owners’ Grant</a> and First Home Buyer Concession if applicable</li>
</ul>

<iframe frameborder="0" height="500px" src="https://www.urban.com.au/developments/qld?embeddable=list-map" width="100%"></iframe>

<h2>NEW SOUTH WALES</h2>

[smartcode_project:default project_id=7758]

<ul>
	<li>Stamp duty will either be abolished or reduced for first home buyers</li>
	<li>First home buyers may be eligible to <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">receive a grant</a> of up to $10,000</li>
	<li>To qualify for the first home buyer concession, you must be buying your first property (including land) valued at less than $800,000</li>
	<li>Homes must be new and not previously lived in</li>
</ul>

<iframe frameborder="0" height="500px" src="https://www.urban.com.au/developments/nsw?embeddable=list-map" width="100%"></iframe>

<h2>AUSTRALIAN CAPITAL TERRITORY</h2>

[smartcode_project:default project_id=22017]

<ul>
	<li>Deferred duty: If you’re eligible for the <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">First Home Owner Grant</a> (FHOG), or the Home Buyer Concession Scheme (HBCS) and the duty amount is $1,000 or more, then you may wish to defer your payment</li>
	<li>Pensioner duty scheme: An eligible pensioner who own a residential property and is moving to a home more suitable for their needs (e.g. A townhome), they may be able to reduce the cost of stamp duty payable</li>
</ul>

<iframe frameborder="0" height="500px" src="https://www.urban.com.au/developments/act?embeddable=list-map" width="100%"></iframe>

<h2>NORTHERN TERRITORY</h2>

<ul>
	<li>Principal Place of Residence Rebate: You may be entitled to receive a rebate of up to $7,000 for any stamp duty paid on a home that is your principal place of residence, that you haven’t claimed a first homeowner discount or grant on</li>
	<li>Seniors, Pensioners and Carers: A stamp duty concession of up to $10,000, so long as one purchaser is over 60 years old and a holder of an NT Pensioner and Carer Concession Card</li>
	<li><a href="/guides/how-to-navigate-australias-first-home-buyer-grants">First Home Owner Discount</a>: A stamp duty concession is available to purchasers of new and existing homes.</li>
	<li>Zero stamp duty is available to first home buyers of a home priced up to $500,000</li>
	<li>A general stamp duty discount of $23,928.60 will be available to first home buyers</li>
</ul>

<iframe frameborder="0" height="500px" src="https://www.urban.com.au/developments/nt?embeddable=list-map" width="100%"></iframe>

<h2>TASMANIA</h2>

<ul>
	<li>A 50% concession may be available to <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">first home buyers</a> of an old home valued at under $400,000</li>
	<li>A 50% concession could be available to pensioners who sell their former home in Tasmania and downsizes to a new home in Tasmania valued at $400,000 or lower</li>
	<li>These offers are currently only available between the period of 7th Feb 2018 to 30th June 2020 (inclusive)</li>
	<li>Duty exceptions can also be available when a home is transferred from a person to their partner</li>
</ul>

<iframe frameborder="0" height="500px" src="https://www.urban.com.au/developments/tas?embeddable=list-map" width="100%"></iframe>

<h2>SOUTH AUSTRALIA</h2>

<ul>
	<li>According to the Revenue South Australia website, the off-the-plan concession no longer applies to contracts entered on or after 1 July 2018</li>
</ul>

<iframe frameborder="0" height="500px" src="https://www.urban.com.au/developments/sa?embeddable=list-map" width="100%"></iframe>

<a href="" id="Source" name="Source">Sources</a>:&nbsp;<a href="https://www.revenue.act.gov.au/home-buyer-assistance/home-buyer-concession-scheme">ACT Revenue Office</a>&nbsp;| <a href="https://www.sro.vic.gov.au/first-home-owner">State Revenue Office Victoria</a> | <a href="https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/transfer-duty-concessions-exemptions">Queensland Government</a> | <a href="https://www.sro.tas.gov.au/property-transfer-duties/concessions-and-exemptions-for-property-transfer-duties/duty-concession-for-pensioners-downsizing-to-a-new-home">Tasmanian Government</a> | <a href="https://www.revenuesa.sa.gov.au/grants-and-concessions/off-the-plan-concession">Revenue South Australia</a>

Disclaimer: While Urban strives to provide accurate content,&nbsp;we do advise that readers undertake their own research and to only use our findings as a guide.&nbsp;

The State-by-State Guide to Australia’s off-the-plan Stamp Duty concessions

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Next Home Buyers are overtaking First Home Buyer interest in new off-the-plan apartments. So what does this mean for Australia's property market?

As one of Australia's largest off-the-plan property platforms, Apartments.com.au experiences high volumes of traffic to our 8338+ apartment and townhome listings every day. Over the past two months, Urban has recorded exponential growth among Next Home Buyers, who have overtaken First Home Buyers as the most significant active segment in the search for off-the-plan properties. 

At the start of 2019, First Home Buyers were entering the market en masse, due to APRA's loosened lending constraints, a dropping cash rate, and reinstated faith in the off-the-plan market. However, now Next Home Buyers represent over 40% of the total volume of enquiries on Urban, showing a trend which could be likely to progress into the new year. 

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/_enquiries.png" rel="gallery-all" title="Source: Urban.com.au, Nov 2019"><img alt="" class="image-article-full-width-580px" height="343" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/_enquiries.png?itok=zA8TuT9A" title="Source: Urban.com.au, Nov 2019" width="580"></a>

<figcaption>Source: Apartments.com.au, Nov 2019</figcaption></figure>Next Home Buyer interest wasn't the only statistic that has risen in recent months either. Today, the average value of an off-the-plan home enquired on by a Next Home Buyer currently sits at $873,538, which is 35% higher than the average home value of enquiries made by First Home Buyers.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/value_enquired.png" rel="gallery-all" title="Source: Urban.com.au, Nov 2019"><img alt="" class="image-article-full-width-580px" height="343" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/value_enquired.png?itok=kL0gagx_" title="Source: Urban.com.au, Nov 2019" width="580"></a>

<figcaption>Source: Apartments.com.au, Nov 2019</figcaption></figure>We also took a look at the top suburbs and projects First Home Buyers and Next Home Buyers have been enquiring on in Victoria over the past six months. 

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/suburbdata_2.png" rel="gallery-all" title="Source: Urban.com.au, Nov 2019"><img alt="" class="image-article-full-width-580px" height="343" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/styles/article_full_width_580px/public/pictures/article-images/suburbdata_2.png?itok=C6zy_nbp" title="Source: Urban.com.au, Nov 2019" width="580"></a>

<figcaption>Source: Apartments.com.au, Nov 2019</figcaption></figure><figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/projectsdata_2.png" rel="gallery-all" title="Source: Urban.com.au, Nov 2019"><img alt="" class="image-article-full-width-580px" height="343" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/styles/article_full_width_580px/public/pictures/article-images/projectsdata_2.png?itok=HKZrZzBN" title="Source: Urban.com.au, Nov 2019" width="580"></a>

<figcaption>Source: Apartments.com.au, Nov 2019</figcaption></figure><h2>How will these new statistics impact the 2020 property market?</h2>

A newly announced First Home Loan Deposit Scheme will come into effect on 1st of January 2020, which the Federal Government thought would boost first home ownership in Australia. However, Core Logic's Tim Lawless explains that this initiative will not have much of an impact reinvigorating the first home buyer market since the scheme will cap grants after 10,000 applicants. 

<blockquote>
“Looking forward it’s likely first home buyers will reduce as a proportion of overall market activity.  Housing prices are once again rising across most regions of the country while growth in household incomes remain sluggish, which will create renewed housing affordability pressures in markets where home values are rising faster than incomes.”
</blockquote>

Tim Lawless, Head of Research at <a href="https://www.corelogic.com.au/news/first-home-buyer-numbers-are-above-average-across-every-state-and-territory-likely-subside">CoreLogic Asia Pacific</a> 

Without enough financial assistance or affordable homes on the market for first home buyers, experts anticipate that next home buyers will become the strongest competitors as the property market picks up again. 

It is also apparent that <a href="https://www.lifehacker.com.au/2016/10/baby-boomers-own-more-than-half-of-australias-wealth/">baby boomers hold half of Australia's wealth</a>, which explains the rapidly increasing property value statistic as homeowners downsize to low-maintenance, luxury apartments and townhomes.

<h2>According to developers, here is what Next Home Buyers are looking for in a new property </h2>

<blockquote>
"In our Shelley St campaign, the strongest and highest quality leads have been next home buyers. They are the 'been there, done that' type who appreciate good design and value, they are keen to be in the middle of it all in Richmond. More than half the leads (55%) from Urban have been next home buyers, which suits our project well."
</blockquote>

Scott Williams, Sales &amp; Marketing Manager at Oz Property

<blockquote>
"These are your people from the past 10-20 years ago when every purchaser was going big…. Big land, Big house. As technology has now taken over and life is becoming more and more busier, purchasers are now looking for the low maintenance simplistic lifestyle."
</blockquote>

Barry Devenny, Sales Manager at Wonder Property

<blockquote>
<ol>
<li>Location: Walkability to local amenity.</li>
	<li>Resell Value: The buyer may not want a bath/double vanity (etc.), but understand they need to keep it or include it to support future resale value.</li>
	<li>Storage: including inside apartment and in the basement. This needs to be ample! Especially for downsizers of course. We almost oversupply storage and our buyers love it.</li>
	<li>Pet-friendly apartments: All of our Fortis apartments are pet-friendly. This is so crucial in this day and age for so many reasons.</li>
	<li>Ability to customise the design of the apartment: this is a major benefit and reason they are buying off the plan in the first place!</li>
</ol>
</blockquote>

Avalon Nethery, Development Manager at Fortis Development Group

Lead image: Mont Albert Place, credit: INQ Developments/Clarke Hopkins Clarke.
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New Urban data shows Next Home Buyer property enquiries overtake First Home Buyer interest

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Did you know that you could learn to love paying strata fees?

Many property seekers will discover their dream home, in the perfect location, within their budget, only to find that the annual maintenance fees will set them back an additional $6,000 (<a href="https://www.lookupstrata.com.au/find-units-low-body-corporate-fees/">$115 per week</a>). That doesn’t have to be the case, and there’s even a trick to making these fees work for you. 

Think of your strata fees as a way of reducing home maintenance, scoring better discounts and a subsidised subscription to your favourite lifestyle facilities.

<h2>What strata fees cover</h2>

<ul>
<li>Building maintenance (both structurally and aesthetically; and in common areas)</li>
	<li>Amenity servicing (pools, tennis courts, gyms etc.)</li>
	<li>Building insurance</li>
	<li>On-site security, caretaker and/or cleaner</li>
	<li>Any shared utilities</li>
	<li>The ‘sinking fund’</li>
	<li>Management and administration</li>
</ul>
<h2>Administrative &amp; Sinking Funds explained</h2>

Administrative Fund

An administrative fund covers the day-to-day outgoing costs associated with running a building. This includes majority of the expenses listed above.

Sinking Fund (sometimes known as the capital works fund)

The sinking fund is a body of cash which is accumulated should an unexpected issue arise. This fund acts as a buffer to provide residents with financial security, to avoid any surprise lump-sum invoices.

<h2>What is the Owners Corporation?</h2>

Formally known as the 'body corporate', an owners corporation is a collective of homeowners within a residential development who make the financial and maintenance decisions for the building's common property. 

<h2>A simple guide to effectively make these fees work in your favour:</h2>

1. Bulk buy water and energy to reduce your utility bills

Many new apartments offer residents the option of bulk buying utility services such as electricity and water. This means that an upfront payment will be made at the beginning of the year at a fixed rate, meaning that if there are any cost spikes, residents who have pre-purchased will not be affected. Buying in bulk can also mean discounts can be negotiated with the provider since the client (owners corporation) is such a high-value customer.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/imani-vdq-e3rtaoe-unsplash.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="387" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/styles/article_full_width_580px/public/pictures/article-images/imani-vdq-e3rtaoe-unsplash.jpg?itok=-yOqoJ6m" width="580"></a></figure>2. Shop around for a competitive insurance rate

As with bulk buying, since there are many home insurance companies in the marketplace, the corporation is able to actively seek the best rate on the market. By joining the owner’s corporation, you are able to advocate for this to be done on a yearly basis. For buyers joining an older apartment development, the first thing you should do is check the insurance premiums and see if you can get a competitive quote elsewhere. 

3. Find an apartment which has the amenities you feel happy to pay for

A lot of buyers are under the impression that amenities are “free perks” which come with an apartment. Each amenity provided within your apartment building comes at a premium. Once you change your perception of the cost of amenities and find an apartment which offers your favourite amenities and none of the ones you’ll never use, you’re more likely to feel confident that your payments are going towards the things that make you happy. 

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/nh_landmark_ame_cgi05_golf_r6.jpg" rel="gallery-all" title="The Landmark's golf simulator. Credit: A+ Design Group"><img alt="" class="image-article-full-width-580px" height="322" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/nh_landmark_ame_cgi05_golf_r6.jpg?itok=XtbUGuj6" title="The Landmark's golf simulator. Credit: A+ Design Group" width="580"></a>

<figcaption>The Landmark's golf simulator. Credit: A+ Design Group</figcaption></figure>4. Give up your gym membership and use your apartment facilities

The cost of gym memberships, movie tickets and spa experiences certainly add up, so by having these amenities included within your apartment building can save you transport time and cost, as well as often significantly reducing your outgoing payments*.

*Depending on your body corporate rates.

5. Speak up at the owner’s corporation meetings

Owners corporations can have a lot of flexibility to get creative when it comes to the financial and social aspects of an apartment building, so long as all residents are in agreeance. You could pitch some cost-saving suggestions which will actively reduce your body corporate bill such as:

<ul>
<li>Sharing a cleaning, gardener and security services with nearby buildings</li>
	<li>Use energy saver bulbs in communal areas</li>
	<li>Swap for sensor lights in hallways</li>
</ul>
<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/haley-phelps-twoahjasoo4-unsplash.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="387" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/styles/article_full_width_580px/public/pictures/article-images/haley-phelps-twoahjasoo4-unsplash.jpg?itok=_KXJXekT" width="580"></a></figure>6. Share your repair bills

Any house will require regular maintenance as well as repairs that could set you back thousands of dollars. Investing in a communal ‘sinking fund’ will help to prepare you for funding unexpected remedial work that needs to be done on the building.

7. Prepare yourself for fee inflation

Luxury amenities come at a price, and over the years your body corporate fees are likely to increase with inflation. Double, or even triple your body corporate fees, and if you feel confident that you can cover that rate, then you’ll be well prepared for any increases in future. It's important to note that if you're buying into an older building, sufficient maintenance might not have been completed – which could result in a spike in your annual fees. Similarly, some new apartments will entice buyers with low body corporate rates, only to realise that they need to up the annual levy for long term maintenance sustainability. If you're prepared for this, however, you can enjoy the rates at their lowest, and be comfortable spending a bit more if they increase. 

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/helloquence-5fnmwej4taa-unsplash.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="387" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/styles/article_full_width_580px/public/pictures/article-images/helloquence-5fnmwej4taa-unsplash.jpg?itok=SbkzDajL" width="580"></a></figure>Lead image: Ruby apartments in Gungahlin. Credit: Stewart Architects.
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