<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, Castile, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Ask Margaret

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Hi Margaret,
I am a fortunate Aussie expat whom has just reached five years overseas. As expats our land tax exemption in Queensland is only $350,000 per person. 
My wife and I own two properties in Brisbane and are looking to purchase our third and future home.  Our tax planning strongly requires us to increase our current debt levels.
Unit : $200,000 land value, 50/50 ownership,principal place of residence up to end 2009.
Post war 810 square metre splitter: $405,000 land value, one title, 100% my name.
Future home: $800,000 to $1 million, 50/50 ownership.
Do you have any recommendation on how we can eliminate or reduce our land tax exposure after the purchase our new home while remaining oversees?
We are likely to face an $8,000 to 10,000 yearly land tax bill.  We have considered selling our unit as we can still access the capital gains exemption and going forward it is not likely to provide growth to match the cost of land tax.
I look forward to your assistance.
Thanks
Julyan 
Hi Julyan,
It always worries me when the tax accountant’s response to saving tax is to increase your level of borrowing.
While I support borrowing to invest, the amount of debt you ultimately obtain must suit your personal appetite for risk, not some accountant’s attempt to reduce your tax.
It’s all very well to say ‘get more debt’ but to do so without care and extremely careful planning around what you buy might just end up diverting those saved taxes into property losses when you buy the wrong property!
You cannot get the usual principal place of residence (PPOR) exemption on your land tax as you do not reside here – and so the normal thresholds that apply to property other than your own home apply to you, as you have so rightly pointed out. 
Once you make this next property your home, it will come under the exemptions, so maybe you need to consider the length of time it will be just an investment and calculate the total amount of tax you will actually be up for – then assess if this amount is worth getting into the market now. 
It could be that the amount of money you save by buying now, assuming what you buy goes up in value, is more than the tax you have to pay, making the payment worthwhile.
In addition to this you could: 
<ol>
<li>Explore how you can make your PPOR your own home – this may entail coming home for a month to live in the newly acquired property as soon as you settle, then invoking the six year rule to move out of it for up to six years.  While this deals with capital gains tax it may also deal with land tax too – you must check with the QLD office of state revenue for their policy on PPOR exemptions and it’s relation to land tax. 
</li>
<li>Instead of buying a property now to live in, instead look for additional investment properties but choose them in a state other than Queensland.  Land tax is a state based tax and you get a tax free threshold in each state!   Note that the threshold is different in every state, but this could allow you to add to your portfolio with growth assets without further burdening your land tax liability. 
</li>
<li>If you must stay in Queensland, consider buying a commercial property, where land tax is an outgoing recovered from the tenant.</li>
</ol>
Apart from these ideas, land tax is a fact of life and one which has no legal way of avoiding.  As with all tax advice though, be sure to contact an accountant to discuss your needs, and choose one who can demonstrate a sound knowledge of property investing tax matters.
Regards,
Margaret
Have a property question?  <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Ask Margaret: How can I reduce my land tax exposure?

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Hi Margaret,
My partner brought a block of land in 2011. 
We were wondering whether we have a limited time to build a home before capital gains tax (CGT) is applicable to us?
Thanks in advance,
Ryan
Hi Ryan,
I am assuming that you purchased this block of land with the intent to build a property in which you will personally live, rather than build a property as an investment.  If it is to build as an investment, then of course CGT is going to apply immediately from the date of your contract to buy.
If you bought to build a house of your own on, the tax office <a href="https://www.ato.gov.au/General/Capital-gains-tax/In-detail/Real-estate/Treating-land-as-your-main-residence/" target="_blank">has this to say</a>:
"Generally, if you build a dwelling on land you already own, the land does not qualify for exemption until the dwelling becomes your main residence for capital gains tax (CGT) purposes.
"Vacant land may also be treated as your main residence if it is vacant because your home has been destroyed.
"However, you can choose to treat land as your main residence for up to four years before the dwelling becomes your main residence in certain circumstances. You can choose to have this exemption apply if you acquire an ownership interest (other than a life interest) in land and you:
<ul>
<li>
"Build a dwelling on the land
</li>
<li>"Repair or renovate an existing dwelling on the land, or </li>
<li>"Finish a partly constructed dwelling on the land.</li>
</ul>
"There are a number of conditions that you must satisfy before you can claim the exemption. You must first finish building, repairing or renovating the dwelling and then:
<ul>
<li>"Move into the dwelling as soon as practicable after it is finished, and continue to use the dwelling as your main residence for at least three months after it becomes your main residence."</li>
</ul>
Reading this it would appear that, as long as you do not own another property on which you are also claiming the principal place of residence exemption, you have four years to have the house ready to move into.  
Make sure you check with your accountant to see how this might apply to you though, as your personal circumstances may be very different.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Ask Margaret: Is there a time limit to build on land before CGT applies?

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Hi Margaret,
I have just bought an investment property, which included doing a building inspection.
But prior to buying the property I also had a building inspection done on another property that I was looking to get as an investment which I did not go ahead with.
Are both building inspections tax deductible or just on the one I bought please?
With thanks
Geoff
Hi Geoff,
When buying an income producing property, the expenses which are associated with that are treated differently, depending upon what the expenses were and when they were incurred.
Where a building inspection is concerned, this is considered what we call a 'capital cost' and it is claimed by adding it to the cost base.  This means that you do not get an immediate deduction for it (as in, you cannot claim it in the year that it was incurred to get some of your tax back ion that year) - rather, it adds to your cost base and essentially reduces the gain you have to account for when you sell, reducing the amount of capital gains tax you must pay.
If you do not buy the property, you have no cost base to add it to so it is not claimable at all.
If you want to claim these kinds of costs, you must be in the 'business of buying rental properties' or in the 'rental property business'.  If your are assessed as being in one of those categories, then there are many extra things you can claim, but you will be treated like a business with all of the associated requirements and lose the 50% discount on CGT when you sell.
Regards,
Margaret
Have a property question?   <a href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
 
 
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Is a building inspection tax deductible if I didn't buy the house? Ask Margaret

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Hi Margaret,
I'm going to buy a property with my friend. Both of us  are renting at the moment and the property we are going to buy will be our first home.
We don't want to move as soon as we buy.
<ol>
<li>Will this affect the rental assistance we are getting from Centrelink?</li>
<li>Should we pay the capital gains tax (CGT) while we sell the house in future?</li>
</ol>
Regards,
Arabu
Margaret's answer is on the next page. Please click below.
<hr class="system-pagebreak">
Hi Arabu,
If both you and your friend currently qualify for Centrelink rental assistance, then you will need to be reassessed by Centrelink once you have acquired this new asset.   Rental assistance, just like any income support, is assessed according to an income and assets test and you need to see if you still qualify for the same level of, or any, rent assistance.
Centrelink will assess the net income of the property and this does take into account the net taxable income, which is what would be on your tax return.  They also assess your assets and in your case, if you already have a deposit for a property, this deposit would already be being assessed by Centrelink as an asset, and so it's likely that the additional income shouldn't affect your benefits too much, unless your deposit is really large and you own most of the property when you buy it.
As this property will be a rental first before it is your principal place of residence, then there will be CGT consequences when you sell it.  The gain will be assessed using a  formula which considers days rented and days not rented and proportions the gain accordingly.  It will be critical for you to keep all records including receipts of anything you spend on the property, for as long as you own the property,  so that your tax liability can be correctly assessed when you dispose of the property.
On another note, if your friend is not a spousal partner, I'd like you to be aware of the consequences which can arise when you enter property ownership with someone who you are not sharing financial circumstances with.  They include:
<ol>
<li>A lender will consider any loan repayments on a loan you are a party to as being all of your responsibility, in case your friend doesn't uphold their side of the arrangement.  This means if you apply for future borrowing to buy a property without your friend, the entire loan repayment is assessed as being owned by you and may affect the amount you can borrow. </li>
<li>If you and your friend end up with different ideas about when you wish to exit the property, there could be an issue. </li>
<li>If you and your fiend end up falling out, this is also a problem as it's hard to own a property with someone you no longer associate with. </li>
<li>If the property gains in value, you can only leverage against this gain for a further property with your friend, since they own the equity too.</li>
</ol>
It's always a better plan to invest alone than to invest with friends or relatives.
Kind regards,
Margaret
Have a property question?  <a href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
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How will buying with my friend affect my benefits? Ask Margaret

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Hi Margaret,
I am going to sell my family home and move into a new home.
But it's taking time to sell, so I wanted to take my first home off the market for a while and move into the new one, then sell at a later date. 
I won’t rent out my former home, so will I avoid CGT? 
Kind regards,
Andrea
Hi Andrea,
Capital gains tax (CGT) is one of the most misunderstood concepts in property investing, but in reality it’s quite simple.
CGT is not about whether you rent out a property or not, and many assets attract CGT even though they don’t produce income for you. When it comes to CGT on your family home, it is all about which property you intend to claim as your principal place of residence (PPOR), and you can only claim one. Any other property you own, regardless of if it is rented out or not, will accrue CGT. The value that becomes the cost base upon which the gain is calculated will depend on a host of things, from when it was purchased through to when it ceased being your principal place of residence exemption.
You can move out of your  PPOR for up to six years and still maintain an exemption on it, as long as you don’t have another property for which you claim that exemption. This allows home owners to be relocated for work, or move out and rent for a time, without CGT accruing. Remember that if you buy another property in that time, you must nominate one as your PPOR, and your intention for the nominated property is that it must be genuinely a home you have intention to reside in.
You are allowed a six-month overlap, however, so that you have time to move and set up a new principal place of residence.  Be very careful on this one, though – if you go over the six months  by even one day you may end up paying some CGT on the family home, calculated in most cases on the change in value form the day you moved out until the day it sells. This might be OK if the value has not increased since you moved out, but if there has been any type of value increase since you left it, you could be up for some tax.
Try not to be too alarmed – remember  CGT is incurred on only half the gain (as long as it has been held as an asset over 12 months) and although it is tacked on to the top of your other income and calculated at your highest marginal rate of tax, this may be a fairly small amount after all.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
This article was first published on Property Observer in February 2013.
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Can I avoid CGT when I sell my home? Ask Margaret

<html><body>
Hi Margaret,  
I am an international student who has just graduated and I am planning to move back for good.
My parents are considering selling their apartment in Bondi Junction.
In your opinion, do you think we should sell?
Or would you recommend that instead of selling we keep the apartment and rent it out instead?  
Thank you for any information and advice you may be able to provide, it is very much appreciated.  
Kind regards,
Irene
Margaret's answer on the next page. Please click below. 
<hr class="system-pagebreak">
Hi Irene,
The decision about whether to keep a former owner occupied property, or instead rent it out, involves a lot more considerations than just whether the time is right or if it will make a good investment, although these two matters are definitely part of the analysis.  
It’s hard to know exactly where to start and so the following information is not necessarily in order of how the considerations need to be made, but all of them must be considered:  
<ul>
<li>
A principal place of residence is capital gains tax free as long as it’s sold within the allowable period.  Your parents can move out of the apartment and keep it CGT free up to six years, as long as they do not have another property on which they claim the principal place of residence exemption.  If they do move out and buy another property, they can have a strict six month period of overlap where they can have two exemptions, but if this is missed by even one day (that is, the property is not sold) then they are liable for CGT on one of the properties right back to when they first moved out.
</li>
<li>This is important because if instead they sell and take the tax free gain, they can use this to buy another owner occupied property with low or no debt.  If they wish, they can borrow against the equity in that new owner occupied property and invest elsewhere, with a fully tax deductible debt.</li>
<li>
If they keep the Bondi apartment and rent it out, only the property's current debt can be claimed as a tax deduction.  Even if they use that property as security for further funds to buy another home of their own, that debt is not a deductible one as it is the purpose for the loan, not what secures it, which determines tax deductibility.  In some cases people doing this end up a little upside down – they have a large debt on a house they live in (with no deductions allowed) and a small one on an investment.
</li>
<li>
People often keep a former home because they think it will make a ‘good investment’, and this is based on emotion rather than any researched facts to support whether or not it is a good place to invest.
</li>
</ul>
The first thing to consider is whether or not this area has the capacity to deliver as good as, or better, growth and yield than any other area. 
Keeping it may prevent your parents from investing in an area with a better capacity to grow in the coming few years and a higher rental yield, giving an all- round better performance. 
Usually, areas which have already become ‘blue chip’ have their best period of performance behind them, and unless there is some major development or infrastructure project on the way, such an area is more than likely to grow with only a lacklustre result. 
For sound investing and a return better than bank savings interest rates, you need to find an area on the cusp of its best period of growth (as in a pre- blue chip area) and you are not likely to find that in the upmarket, favoured suburbs of our capital cities. 
Great investing opportunities are usually in formerly remote suburbs or newer suburbs catering to families – the kind with major infrastructure projects ahead of them and burgeoning populations which drive year- in, year- out growth in value and rental yield.  
It’s rarely the right thing to keep a former home and make it into an investment. 
Your parents need some good advice from a qualified property investment adviser, one whose best interests are not served by selling them a property, to ascertain their bottom line financial position in relation to any debt on this property and any they may move to and to establish just what will be the most appropriate strategy for this time in their lives.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
This article was first published on Property Observer in July 2013.
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Should I turn my home into an investment property? Ask Margaret

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Hi Margaret,
Myself and a friend have decided to bid at auction for a block of land in <a href="/news">Westmead</a>, NSW.
We have verbal approval from council’s town planner to build a duplex on this land.
I appreciate it if you could help me with following:
<ul>
<li>Would the council usually be able to provide written confirmation regarding approval to build the duplex? 
</li>
<li>As this is just a block of land, what are the charges or taxes we have to pay before building. 
</li>
<li>Is there any step by step guide to go through all the formalities we need to complete post signing the contract of the land? 
</li>
<li>Do we need to make sure of anything before we go and win the auction?</li>
</ul>
Regards,
Hitesh
Margaret's answer is on the next page. Please click below.
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Hi Hitesh,
It’s always a risk when buying a property which you think might be able to be subdivided. 
Many years ago, I purchased a block in Queensland and prior to the purchase I had a lengthy discussion with council in which I was advised that I could potentially build a triplex. Upon settlement, I commenced the approval process to be told that only a duplex would be possible. Just before I got the application finalised, the councils merged and my application for a duplex was rejected. Due to where this property is, building a single dwelling is a loss making exercise and I now have a technically useless, non-income producing block of land!
I tell this story to indicate the potential problems you could have.  The council will not provide written confirmation to you prior to bidding, as everything can change in the meantime and they will not want to be locked in.  They will simply refer you to the current town plan and the existing development application rules and suggest you use them as a guideline.
There are no taxes to pay to build, but the ‘charges’ can be endless.  Subdivision approval is complex and requires the services of town planners, architects, surveyors, geo tech experts, and engineers, to name a few.  A simple duplex subdivision can run to tens of thousands just for the approval to build and if driveways and retaining are also involved, expect to reach costs of over $100,000!
Your local council should have a guideline for subdivision approval on their website (or a document they can send you) but good luck with that! 
In my experience it is complex in the extreme, and it can be laborious translating what is actually required.  This is why it is a good idea to retain the services of a town planner, preferably one who may have previously worked for the council in question.
I’d initially download that guideline and contact a town planner prior to auction to get an idea of the costs of the subdivision.  This person will be able to quote on getting the ‘approval to subdivide’ (which is step one) but be aware that, after this step you have to carry out all works and steps outlined in this approval before your final deposited plan number will be allocated.
Regards,
Margaret
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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What hurdles will I need to jump to subdivide land? Ask Margaret

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Hi Margaret,
Is stamp duty payable on a transfer of real estate from father to sibling or vice versa?
Please help. What would be the best way to do this transfer?
Regards,
Neville
Margaret's answer is on the next page. Please click below.
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Hi Neville,
The answer to depends upon which state you live in.
For example, if you live in NSW and the property is located there, then the stamp duty which would apply will be the same amount that you would pay were you to buy the property.  This means that the property must be valued by a duly qualified person and then stamp duty is assessed on the basis of this valuation. 
You will also have the costs of a solicitor or conveyancer, who must still have the property conveyed to you and so will charge you for that in a similar way to how you would be charged if it were a purchase.
Where property is transferred between family members, it's theoretically possible to transfer property using a 'transfer' form and without going to the expense of having a full contract for sale prepared, with appropriate disclosure documents such as title searches and council zoning certificates. You may prefer to use the usual contract for sale however, as this will protect all parties to a greater degree.
In some states there may be an exemption for transfer between family members, although this usually applies only to spousal transfers.  Depending on the nature of the real estate some exemptions may apply - property used for primary production (family farm) may be exempt and other real estate might have some exemptions depending upon the circumstances around the transfer.
Also be aware that, depending upon the nature of the property for your father (for example if it was his investment property), there may be capital gains tax to be paid.
I find the offices of state revenue in each state are very helpful, so you should give them a call and discuss your personal circumstances.
Kind regards,
Margaret
Have a property question?   <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Do I need to pay stamp duty if I transfer a property to a family member? Ask Margaret

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Hi Margaret,
I was reading one of your articles. 
I'm wondering: Say I purchase my first property but don't live there. Instead, I rent it out for income. Say 10 years later, when I sell this property, how do I avoid paying Capital Gains Tax (CGT) - assuming this is my only property in the next 10 years?
What would happen if I make deduction on the interest of the loan, or do not making any deduction at all? Is the latter legal, from the ATO's point of view?
Thanks. Wesley
To read Margaret's answer, click below.
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When you own, and occupy, a home of your own, you may claim a 'principal place of residence' exemption on that property.
This means that, when you sell the property, you will not pay any capital gains tax on any gain you have made.
Further, if you move out of your principal place of residence (PPOR), you may rent it out, and claim any related tax deductions, for a period of up to six years and, as long as you either move back in, or sell it, before those six years are up you also will not pay any CGT. The only catch is that, during this 6 years you cannot own another property on which you would like to claim the exemption – you can only claim one exemption at a time.
The operative word here is 'own and occupy'. If you buy a property and you do not move into it as soon as it settles, then the property is not considered to be your principal place of residence until such times as you do move in, regardless of whether it is the only property you own, or not.
While you can move in at any stage and make it your PPOR, thus invoking a potential six year rule exemption at a future date when you move out, the fact that you did not live there from the moment you owned it changes a few things. You have to keep all of your records accurately on everything you spend, and then when the time comes to sell, your CGT liability must be worked out proportionately for days rented/days not rented.
Your cost base would be the cost base as at the date you bought it and then the gain is apportioned after the six year period is accounted for.
This can easily be overcome, as long as, when you buy the property, your intention is to live there and you move in when you settle, thus establishing the property as your PPOR. 
If, at a later date, your plans change and you move out, the six year period can commence, and your cost base for CGT would be the value as at the date the 6 years expire, if you don't move back in.  You can reset a new 6 year period at the end of the first by moving back in for a time.
Note that the tax office does not prescribe how long you have to stay there on either occasion – it just has to be your intention to live there and you must move in.
 
 
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Ask Margaret: How can I avoid CGT if my first home is an investment property?

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Hi,
I'm thinking about purchasing a property that has been built in underneath with no council approval. The problem is that it is a high set home on recently flood zoned area of <a href="/news">Logan</a>. My question is, is it still possible to get building certification for lower levels in flood areas or does the council never allow it?
Margaret Lomas' answer is on the next page. Please click below to continue.
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When you own a house or unit in any local government area, it is your duty to ensure that the building codes provided by the state department of planning, and administered locally by the council's own planning departments, are adhered to. 
This also means that, if you make any changes to a property which has previously been approved as compliant, you must first ask council for permission to make such changes.
These rules exist for many reasons - to ensure that an area remains aesthetically pleasing, to provide safe living environments for residents, and to protect the environment itself. If you have ever visited a country where there is no building code, and seen how the residential areas look when people build whatever they like, you will better appreciate these rules! 
You will also know that when a natural disaster strikes, the loss and injury caused is far more catastrophic, often due to the unsafe nature of what has been built and the overbuilding of those areas.
And so to your dilemma. You are thinking of buying  property with an unapproved alteration, and you should know that the council is within their rights to ask you to revert it back if they so desire. If the council feels for any reason that the alteration contravenes the current development rules, or in any way poses a risk to the surrounding community in the event of a flood, then they will ask you to revert it. 
You should check the flood maps available on the Logan City Council website, and see if this property falls within a flood zone. If so, your chances of having this alteration retrospectively approved is next to none, and the chances of being asked to remove the alteration is in play.
You should ask the current owner to either have the alteration approved prior to your purchase, or provide a letter from the council attesting to the fact that the alterations do not contravene any planning rules, and would be otherwise approved if you submit a development application. Then, as soon as you settle, take the steps to have the alterations approved to remove any future doubt.
 
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