Brisbane developer Red &amp; Co's decision to include dual key apartments in its debut Gold Coast apartment development, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO Varsity Lakes</a>, is proving to be one of the project's biggest drawcards, with buyers quickly snapping up the flexible residences.

More than half of the project's 36 dual key apartments have already sold, helping drive COMO beyond the 50 per cent sold mark within the first month of launch.

The strong response highlights growing demand for apartment designs that can adapt to changing lifestyles, with buyers increasingly looking for homes that accommodate multi-generational living, provide rental income opportunities or simply offer greater flexibility over time.

Located on the shores of Lake Orr, COMO will deliver 156 apartments across 16 levels, with the dual-key residences forming a limited release within the broader development.

Each combines a primary two-bedroom apartment with a fully self-contained studio on a single title, connected by a shared foyer and lockable internal door. The design allows owners to house ageing parents, adult children or guests while maintaining privacy, or lease the secondary residence to generate additional income.

Just 17 of the original 36 dual key apartments remain available.

[smartcode_project:default project_id=135546 project_image_fid=367096]

The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;

The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363511]

<a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;

“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;

“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.

“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363509]

Unlike traditional dual occupancy arrangements, the residences operate under a single title, meaning owners only incur one set of body corporate fees, council rates and holding costs.&nbsp;

The secondary residence can also evolve over time - functioning as guest accommodation, a home office, creative studio or private retreat before later becoming an income-producing asset.

<a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a>&nbsp;Director and Co-Founder David Laverty said the strong early sales reflected growing buyer urgency and changing priorities within the market.&nbsp;

“Securing more than half of COMO’s residences within such a short timeframe is an outstanding result and a clear endorsement of both the design and location,” Laverty said.&nbsp;

“Buyers are responding to the combination of location, connectivity and amenity, but ultimately it’s value relative to other East Coast markets that is driving enquiry.”&nbsp;

“We’re also seeing strong interest from owner occupiers looking for homes that can adapt with them over time. Flexibility has become one of the most important considerations for buyers in today’s market.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363515]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, COMO features a mix of one-, two- and three-bedroom residences with 2.7-metre ceilings and larger-format floorplans aimed at owner occupiers, downsizers and lifestyle-focused buyers.&nbsp;

The development will feature an extensive rooftop recreation and wellness offering including a 25-metre lap pool, sundeck, barbecue and dining areas, gym, sauna, plunge baths, landscaped gardens, wellness spaces and rooftop pickleball and paddleball courts.

The remaining dual key apartments range from 137 sqm to 167 sqm and include generous three-bedroom layouts with separate self-contained studio accommodation and dual parking.&nbsp;

Erwin said the dual key concept represented a broader shift in how Australians would live in the future.

“People want homes that can evolve with their lives,” he said.&nbsp;

“A dual key apartment can suit a family today, support an ageing parent tomorrow, and potentially generate income later on. That adaptability is becoming incredibly valuable in the current environment.”

Prices currently range from $2,115,750 to $2,583,000.&nbsp;

[smartcode_project_cta:default project_id=135546]

Joel Robinson

Inter-generational living drives demand for COMO’s dual key apartments as housing pressures reshape buyer priorities 

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/ceerose">Ceerose</a> has doubled down on its Leichhardt ambitions, lodging its second State Significant Development Application (SSDA) in the suburb in the last six months.

Their newest proposal seeks to transform a former industrial precinct into a new residential community centred around the adaptive reuse of one of the site's heritage warehouse buildings.

The new project, on a 6,930 sqm block at&nbsp;<a href="https://www.apartments.com.au/new-apartments/40-76-william-street-leichhardt-nsw-2040">40–76 William Street</a>, will bring more than 200 apartments to a suburb that has seen little to no new supply in recent years. It follows Ceerose's late 2025 SSDA for a mixed-use apartment project on nearby Parramatta Road, signalling the developer's growing investment in Sydney's Inner West.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the redevelopment would involve the demolition of four existing industrial buildings while retaining and adaptively reusing the site's most significant warehouse. The retained structure would anchor a new residential precinct comprising five interconnected buildings arranged around a large central landscaped courtyard, with heights stepping from five storeys along the surrounding residential streets to 11 storeys at the William Street corner.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="7258c54c-8167-479e-8361-2d5fca9915b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010B%20-%20CGI%20-%20View%202.jpg?VersionId=S9DQfxu_jpcB5LrAEYFUbyMzg5odW6i5" />

According to the Architecture Design Report by Woods Bagot, the proposal "seeks to create a residential village centred around a generous green heart while celebrating the site's industrial heritage through the adaptive reuse of the existing warehouse building."

The development would comprise 203 apartments, with 188 proposed as build-to-sell residences, alongside 15 affordable housing apartments.

Rather than treating the retained warehouse as a standalone heritage object, Woods Bagot has sought to weave the site's industrial history throughout the masterplan. The proposal retains the north and west facades of the landmark corner warehouse, while new buildings reinterpret the site's brick-and-steel industrial language through their material palette and architectural expression.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="9e8c64c2-881b-49e1-8c90-6b6acaaa45b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010C%20-%20CGI%20-%20View%203.jpg?VersionId=Qm8_8H_Xrg_sc4Mdjc59vlAcKF_5wRTb" />

The design is organised around what Woods Bagot describes as a "green heart", a landscaped communal open space that reinstates the leafy character removed when the site became an industrial storage facility. A new pedestrian laneway running through the site would improve permeability between William, North and Francis streets, linking residents through landscaped public spaces while activating the ground plane.

Residents would have access to communal gardens, rooftop open space and shared recreation areas distributed throughout the development. Sustainability has also been prioritised, with the project targeting an average 7.9-star NatHERS rating. Proposed initiatives include rooftop solar generation, rainwater harvesting, passive solar design, naturally ventilated lobbies, extensive cross-ventilation and the reuse of existing building fabric to reduce embodied carbon.

The adaptive reuse strategy became a defining feature of the application after heritage investigations found only one of the site's industrial buildings could feasibly be retained. The Heritage Impact Statement concludes that preserving the key warehouse façades while referencing the site's industrial character throughout the new development provides an appropriate balance between renewal and conservation.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="efffafdb-594f-4e2b-a067-921fd51c05e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010D%20-%20CGI%20-%20View%204.jpg?VersionId=DPmE4.k16YRt0i27hEZVtJAffarpvUfx" />

"Retention and adaptation of the site buildings has been explored but found not to be feasible except for the tallest building, whose street facades will be retained," the heritage report states.

"The proposed building will interpret the brick and steel character of the subject site, including reuse of some components and construction of a large 'sawtooth' structure in the proposed open space."

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="3bfef2b5-83f5-40cd-9cab-767092f34266" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010E%20-%20CGI%20-%20View%205.jpg?VersionId=7asb3i_ql4ybbuJOUb5UHBEIy0Q9t.DF" />

The William Street site is located around 300 metres from Leichhardt North Light Rail station and a short walk to Norton Street's retail, dining and hospitality precinct. The surrounding area has increasingly become a focus for urban renewal given its proximity to public transport and the Parramatta Road corridor.

Ceerose, founded by Edward Doueihi in 1998, has become one of Sydney's more active apartment developers, with completed projects including The Alex Collective in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay. They are currently delivering Belgravia, 17 luxury apartments in Potts Point.

First look: Ceerose doubles down in Leichhardt with adaptive reuse of former warehouse site

Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;

Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.

Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.

[smartcode_project:default project_id=112195 project_image_fid=3286]

Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.

"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.

"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."

The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.

[smartcode_project_cta:default project_id=112195]

Spacious Group completes Voyage Altona in Altona's beachside precinct

Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.

Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.

The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.

<a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.

The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.

<img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.

Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.

Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.

[smartcode_project:default project_id=28384 project_image_fid=3823]

Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.

The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

[smartcode_project:default project_id=28384 project_image_fid=3826]

The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."

The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe>

A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.

The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.

At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.

[smartcode_project:default project_id=28384 project_image_fid=372542]

The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.

"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."

Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.

[smartcode_project_cta:default project_id=28384]

North-facing Swan River views drive demand at Rivière Residences in Applecross

How To

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When looking to buy a property, the one thing that concerns every purchaser is how much the property is really worth.
As one of the most expensive purchases of lives, it’s understandable to be concerned about overpaying.
However, determining “market value” is trickier than it sounds. While it is effectively true that "market value" is whatever the market will pay for the property when it sells, this advice doesn’t do new buyers, or even experienced buyers, any favours when they’re working out what they should prudently offer or bid for a home.
The methods to work out what you should pay are varied and some of them require a lot of time and effort.
Heading to the suburb’s median price may be on many a person’s “top” thing to do to get an idea of value in a suburb. However, this is fraught with difficulty. Here are four things you should know about median price first, before deciding to use this as a way to determine value (it’s not).
With median prices ruled out, what are we left with?
Buyer’s agent Patrick Bright says that it is through comparative market analysis that buyers will work out the best price to pay. That is, looking at other properties on the market or hose that have recently sold and using this to get a gauge for what this property should sell for. This isn’t a bad technique.
He suggests that 100 comparable homes are inspected. Quite an undertaking.
“When I started in real estate as a selling agent I didn't really have a clue what homes in the area were worth. The owner of the real estate office said to me, 'Patrick, you need to learn what the market value is of homes in the area. I want you to go out and see as many properties as you can in the next few weeks'. He told me I had to inspect each home and document all its relevant features,” writes Bright.
“I decided that I was going to inspect 100 properties and so I pretended to be a home buyer for about four weeks. I covered four or five suburbs, looked at a little over 100 properties and took notes on each one. I wrote down the asking price and what I thought they were worth and followed them up after they'd been sold,” he explained.
He attended a lot of auctions as well, and by the end of the month he was fairly confident about what the market was doing and what properties were worth.
He says this is some of the best advice he has ever received and <a href="/expert-insights/investing/how-to-determine-a-propertys-true-value-patrick-bright">while it’s a lot of work, it’s worthwhile</a>.
Meanwhile, Michael Matusik points to rental returns as a key factor in determining value, particularly for investment properties. He says that they should really be used as the benchmark.
“And the 5% gross rental return – the old school marker which essentially converts to $1 in weekly rent for every $1,000 spent buying a property – is still the most accurate measure, in my opinion, to help determine investment value,” he writes in his explanation.
Technology is increasingly looking to make our property research easier. The new app RealAs looks to present predictions of what the properties are worth, and notes that they do so with a high degree of accuracy – factoring in features like what is on the market and comparable aspects.
Sadly, the algorithm is a closely guarded secret and is not available for everyone to play around with – but it <a href="/news/can-this-algorithm-determine-what-a-bad-property-is">does allow you to plug in any property that’s on the market right now and see their estimate</a>.
Then there’s the option to pay for a professional valuation. There are four types:
<ol>
<li>Full valuation 
</li>
<li>Short form or pro forma valuation 
</li>
<li>Restricted valuation (to include “restricted assessment”, “kerbside” and “drive by” valuations) 
</li>
<li>Desktop (to include electronic valuer review - EVR)</li>
</ol>
Source: RP Data
If you want to know the differences between these valuations, and how each of them is calculated, you can <a href="/news/how-much-is-my-home-worth-judging-a-propertys-value">read our in-depth explanation here</a>.
See over page for the things you must know about valuations.
<hr class="system-pagebreak">
A valuation may appear to be the natural way to answer this question of what your property is worth, so let's take a closer look.
<blockquote>
MUST KNOW ELEMENTS:
<ul>
<li>It's not an appraisal</li>
<li>They're not an exact science</li>
<li>There are multiple types of valuation</li>
<li>Comparables are heavily relied upon</li>
<li>You can assist the valuer</li>
</ul>
</blockquote>
There are also many reasons why you’d want to get an independent valuation – observer<a href="/expert-insights/investing/five-great-reasons-to-get-an-independent-valuation"> Cameron McEvoy aptly describes five crucial reasons you’d consider this</a> - and so it pays to be aware of what is involved.
Here are five ‘must know’ elements of valuations:
<img src="/images/2014/07/04/yellow-one.jpg" alt="" style="float: left;">It’s not an appraisal
You may have had an appraisal with a real estate agent and now believe that your home can fetch in excess of $630,000 on the current market. This may be the case, however a real estate agent’s appraisal is not a valuation and will not be accepted by the bank as such.
While most real estate agents act with professionalism, investors must be aware that it’s not unheard of for real estate agents to alter the appraisal they provide you to match your expectations and to be fairly bullish with their appraisals to secure a listing.
A valuer, however, is immune to these pressures, tasked with one job and one job alone – valuing your home.
<img src="/images/2014/07/04/yellow-two.jpg" alt="" style="float: left;">They’re not an exact science
It will be of no surprise to any savvy investor that figuring out the price of a property is never an exact science, even for those trained in the valuation field. Similarly, obtaining two different valuations also isn’t an unheard of occurrence and is the reason many investors will head to a different bank to obtain financing, particularly after a renovation.
Observer <a href="/expert-insights/investing/the-murky-waters-of-bank-valuations-mark-armstrong">Mark Armstrong refers to bank valuations as being ‘murky waters’</a>. “Remember if a valuation comes in too high and the bank loses money on the loan then the valuer maybe legally liable,” he notes, which may suggest why there is also a general impression in real estate that valuers are conservative with their estimates.
Similarly, it has been pointed out time and time again, such as <a href="/expert-insights/investing/home-valuations-can-be-subjective">by Mal James in this article</a>, that valuers are subjective. This is because they are human beings, and they act with the information provided and their knowledge to come up with the best possible response.
<img src="/images/2014/07/04/yellow-three.jpg" alt="" style="float: left;">There are multiple types of valuation
While we’re focusing on a fairly rigorous in-person valuation, there are a number of different types of valuations. From the DIY desktop valuation (which have <a href="/expert-insights/investing/diy-website-property-valuations-mostly-askew">varying results of accuracy</a>), to the ‘kerbside’ drive by valuation, be aware that not all are created equal.
RP Data lists four different types of valuation that you'll want to understand:
<ul>
<li>Full valuation</li>
<li>Short form or pro forma valuation</li>
<li>Restricted valuation (to include “restricted assessment”, “kerbside” and “drive by” valuations)</li>
<li>Desktop (to include electronic valuer review - EVR)</li>
</ul>
<img src="/images/2014/07/04/yellow-four.jpg" alt="" style="float: left;">Comparables are heavily relied upon
One of the major aspects that valuers look at to come up with a final figure is that of 'comparables'. That is, recent sales in your area that are close to your property in location and type. A valuer will be required to judge whether your property is superior or inferior to these sales, and so adjust their valuation accordingly.
If you want to get an idea of how the valuation may stack up, it'd be worth finding out the latest sales that they will be looking at. This also means that for properties in remote areas, or unique style homes, it will be trickier for the valuer to come up with a figure and, therefore, more subjective and down to interpretation.
<img src="/images/2014/07/04/yellow-five.jpg" alt="" style="float: left;">You can assist the valuer 
As with any property, present it with its best foot forward for the best change of securing a good valuation. While valuers do not want to be harassed, told how to do their jobs or provided information that could sway them against the numbers, you can be helpful and provide information about improvements undertaken since purchase.
Be on site, ready to ask and answer questions, and have all the information about your property on hand.
Despite the reasons to get a valuation, there’s always the other side of the argument. If you’re considering a valuation, you may also want to hear <a href="/expert-insights/investing/property-valuations-a-waste-of-time-and-money-terry-ryder">Terry Ryder’s thoughts on why valuations are a “waste of time and money”</a>. Late last year, Property Observer also covered a heated debate that asked for an ‘overhaul’ of the valuations industry.
Tips for those wanting to get the best from a valuer:
<ul>
<li>Provide them a list of comparable sales (potentially inside the same project, as well as some that are not). While not all valuers will use them, some will. 
</li>
<li>Apply for finance six months before completion, not six days and if you find the valuation comes in low it gives you time to get a third and a fourth. 
</li>
<li>Attain your own valuation, using a valuer that is on your bank's panel of valuers. 
</li>
<li>Ask to see a soft valuation so you can check the comparables used and the comments made. 
</li>
<li>Bear in mind that the valuer often has a different valuation for mortgage purposes as opposed to sale purposes. But mainly: 
</li>
<li>Do your research beforehand.  Go out and look at 100 or even 10 before you make a purchase decision. If you've done your research you should be confident it will value up.</li>
</ul>
Source: CPM Realty
FURTHER USEFUL READING 
<a href="/expert-insights/finance/how-to-get-property-valuations-right-terry-hayes">How to get property valuations right</a>
<a href="/expert-insights/investing/property-valuation-101">Property valuation 101</a>
<a href="/expert-insights/letters-to-the-editor-valuation-experiences">Letters to the editor: Valuation experiences</a>
</body></html>

jduke-EHk3XBmHkn

How to: Determine market value so you don’t overpay

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Prospective first home buyers may want to consider using credit, and positive exposure to it, to give them a leg up, according to Smartline Personal Mortgage Advisers.
While they warn that if you cannot manage the responsibility then it’s best to avoid credit, disciplined new buyers may see themselves benefiting from the consideration.
In fact, Smartline executive director, Joe Sirianni, said that responsible management of debt is a positive in this age of bank credit scoring, but it should be handled carefully.
“Debt isn’t unlike fire. Managed correctly and carefully, it can be incredibly useful, but in the wrong hands there’s a good chance you could get burnt,” said Sirianni.
He said that while years ago it was suggested that you had a personal or car loan or credit card that you would pay off, as a form of ‘proof’ that you can handle money, this is no longer the case when it’s far less likely you know your local branch manager.
In the late-1980s, when banks moved to centralised decision making, the emphasis shifted to whether or not you had defaults. Sirianni notes that with more automated credit scoring on computers in recent years, a lack of a previous credit facility can count against you.
You want to be building a good track record.
“Computer programs are essentially doing what the humans used to do – making a value judgment on your past performance and assessing your character,” he said, explaining that leaving a blank field in relation to previous credit conduct could be a negative.
“However, having never borrowed and never made a mistake is still always better than having borrowed and made a mistake,” he said.
“But it’s not as good as having borrowed and having repaid it.”
He said that if you’re planning to take a few thousand dollars on a credit card or car loan, and are able to repay, then this would be a positive, even while excess unnecessary debt should be avoided.
“It might even be as little as a credit card with a $500 limit that you’ve kept in good order – that would be all you would need to do well on the credit score,” he said.
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How to: Use credit to your benefit as a first time buyer

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When interest rates are decreasing, property owners paying variable rates are among those who begin to feel a little bit more relaxed about their repayments.
However, the verdict from most economists is that the <a href="/expert-insights/finance/borrowers-warned-of-interest-rate-hikes-by-late-2014">next interest rate movement will be an increase from today’s record lows</a>. While it’s not time to panic quite yet – the general consensus is also that we will have a period of stability – it’s certainly time to put into place some measures if you haven’t thought about the impact of an interest rate increase.
In fact, ME Bank’s latest Household Financial Comfort Report, which noted that a “wait and see” approach is indeed likely from the Reserve Bank, saw 19% of people note that they had not budgeted for any rate increase.
ME Bank’s general manager for asset products Luke Easton told Property Observer that awareness of potential changes is crucial, and then those with mortgages must be allowing for changes.
So, what can you do?
Fixing your home loan
The first thing that jumps to everyone’s minds is fixing your loan while rates are low. While this may be a good solution for some, it can leave you locked in and unable to be as flexible as you may need with your loan.
Easton suggests that splitting your loan into part-fixed and part-variable might actually be a better plan. However, he notes: “Everyone is different. People should be doing what suits their own situation.”
This is good advice – not every investor and home owner will want to fix. While a fixed rate will ensure you have a low rate for a period of time, and regular repayments, it does tend to be higher than the variable rates you can currently achieve. If rates did fall further, you’d be left paying more.
Break costs, such as early repayment penalties, may come into play if you aren’t completely aware of what you’re signing up for with a fixed rate loan.
USEFUL READING: <a href="/expert-insights/finance/analysis-is-it-worth-fixing-your-home-loan">Analysis: Is it worth fixing your home loan?</a>
Creating a buffer
Paying off more now, while you have the opportunity, is a great way to give yourself some breathing space for if rates do suddenly increase, said Easton.
If you put in some extra, then if you suddenly struggle to keep up you will have some space on the other end. Those who pay off the minimum are not necessarily putting themselves in the best situation.
Recently, Smartline suggested that <a href="/expert-insights/finance/now-is-the-time-to-aggressively-make-mortgage-repayments-smartline">now is the best environment in which to be aggressively making mortgage repayments</a> as reduced interest expenses mean you can pay off your principal quickly.
Practice repaying at a higher rate
Consider what might happen to your loan if the interest rate increased. Look to be putting this amount in for each repayment and see how you manage. If you’re struggling, then you need to be looking to solutions quickly – sometimes a visit to your lender, or a financial planner, can assist.
There are also other features you can consider to help you with your home loan – such as offset accounts. There’s an <a href="/expert-insights/finance/how-to-turn-bad-debt-into-good">interesting explanation here as to how offset accounts can be beneficial</a>.
If you’re looking to get a home loan today, then make sure you factor these aspects in to your own personal exploration around what you can afford. At the end of the day, there’s <a href="/expert-insights/finance/theres-more-to-home-loans-than-interest-rates">more to your mortgage than the interest rate</a>.
Timeless mortgage information:
<a href="/expert-insights/finance/10-tips-to-paying-off-your-home-loan-quicker">10 tips for paying off your mortgage quicker</a>
<a href="/expert-insights/finance/using-comparison-websites-to-find-the-lowest-interest-rates">Using comparison websites to find the lowest interest rates</a>
<a href="/expert-insights/one-in-10-happy-to-borrow-close-to-100-loan-market">One in 10 happy to borrow close to 100%</a>: Loan Market
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How to: Prepare for an interest rate increase

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Deciding on finishings and fixtures in an off the plan apartment design is an important step, as the products you choose will determine how your property ages.
The choice of finishings and fixtures may also attract different types of tenants as some tenants may be prepared to pay more for higher quality touches, but the upkeep and maintenance needs to be considered, as they do depreciate with time.
Decisions to make include floor coverings, window dressings, wall tiles, paint colour, taps, door handles, light switches, light shades, kitchen appliances, sinks and more.
“Just like a good wine, you want your property to age well,” says <a href="/expert-insights/buying/dont-ignore-the-four-fs-of-residential-developments">Matusik Property Insights director Michael Matusik</a>.
“The trend for finishes is simple: modern, spacious designs that can stand the test of time, but are also welcoming, comfortable and feel like home,” Matusik says.
Matusik says when choosing floor covers, the trend is for longevity.
“Carpets are generally darker and limited to bedrooms. The most durable living area floor is a tiled one; gloss or matte.
“For depreciation purposes, carpet, timber floorboards and tiles are each deemed to have an effective life. Carpet with 10 years, timber floorboards with 15 years and tiles with 40 years.
“A $2000 outlay on floor coverings, for example, would result in the following depreciation benefits in the first year: carpet $400, timber floorboards $267 and tiles $50.
“Armed with this sort of knowledge, an investor might find it financially viable to upgrade a level of finish from say, low to medium or medium to high,” Matusik says.
Matusik says when it comes to kitchen appliances; quality and function are the way to go and it’s the little details that tick the box these days.
“Think of a fridge dispensing ice and water, a bigger oven, a wider cooktop, or a built-in coffee machine. Negotiate just one ‘wow’ factor into your kitchen and tenants will love you,” Matusik says.
Matusik says another quality trend is soft-close drawers and that energy efficient light fittings should be considered.
“Beware of glossy leaflets with annotations along the lines of ‘artist impression’ and ‘subject to change or availability’.”
“Ask too, whether the construction will merely meet Australian standards. These standards are, in the main, inadequate for the realities of modern urban living and in particular, for those residing in large apartment complexes. You are better off paying for higher than the prescribed building standard,” Matusik says.
The choice of fittings and fixtures could also affect your property’s resale, according to Property Searchers managing partner Scott McGeever.
“Consider the type and quality of construction and the level of fittings and fixtures that are used in the complex, as well as the interior of the property itself.
“If they are cheap and nasty, they tend to not age well and look tatty after a short time period and that will affect re-sale.
“Finished quality of fixtures and fittings can also vary to what they looked like on the sample board. What might appear good quality in a display might have been poorly executed/installed when being built,” McGeever says.
When choosing fittings, fixtures and finishings, opt for quality and function and also longevity. Top of the range appliances may be OK for owner-occupiers but will not always pay off for investors and depreciation benefits.
Off the plan buyers should also be sure to have a schedule of inclusions of all fittings and fixtures, on the sale contract.
{rsform 49} 
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ntrotman-Et3xWpamVh

How to: Decide on finishes and fittings

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Planning how to rent out an off the plan apartment is similar, if not the same, to other forms of property investment strategy, however some developers may offer a rental guarantee on the new purchase.
Developers generally offer a rental guarantee for the first year or two, however many property professionals warn against buying into a development that offers a rental guarantee.
iProperty Plan director Mark Armstrong says by accepting a guaranteed rent level, investors are insulated from market forces.
“As newer properties come on to the market and tenants have a wider choice of places to live, the market rent for a property could fall,” says Armstrong.
Market analyst <a href="/guides">Catherine Cashmore</a> says the rental guarantee is always factored into the sale price of the apartment.
Cashmore says rental guarantees can be between 5% to 7%. If an investment has a gross return of 6% and the developer guarantees $300 a week rent, the purchase price would be $260,000.
But if the market rent is in fact $250 a week, the property is really worth $218,000, resulting in investors paying 19.2% over the market value.
“Once the guarantee expires, the unit’s yield will revert back to market forces,” says Cashmore.
Armstrong says once the guarantee expires, investors will need to have sufficient cashflow to hold the property during periods when the property is not tenanted.
Property 1 real estate agent Garth Rothwell says rental guarantees are good for overcoming fear of loss due to a vacancy period but in reality, all rents are guaranteed.
“I guarantee there will be people willing to rent a unit, it just comes down to how much rent they are willing to pay.
“Guarantees that are offered by the developer and are above market value are bound to fail, as proven in the past, as they are unsustainable over the medium to long term.
“Rent guarantees based on market value for a period of one to three years can be beneficial for investors to overcome the fear factor and help the investor with cash flow in the initial years of the purchase,” says Rothwell.
“Ultimately it comes down to how the rent guarantee is funded.”
Off the plan apartments can be advertised for rent prior to settlement but Rothwell says the investor will require the developer’s permission to advertise early, as the developer will have to authorise access to conduct inspections.
“If the unit is leased prior to settlement, the developer is entitled to the rent collected prior to the settlement date.
“If a guarantee is in place, the developer will already have this process in place,” says Rothwell.
For investors wanting to rent out their new apartment, Rothwell advises to price the unit at market value, not emotional value.
“Investors should be prepared to trade off $10 to $15 per week in rent to get a better tenant sooner, or alternatively a tenant with a small pet may pay more.
“The investor needs to identify the type of tenant they wish to attract, familiarise themselves with relevant facts regarding pets, body corporate rules and on site management,” says Rothwell.
Rothwell advises that a pre-purchase/settlement inspection is organised from a licensed building inspector and that a detailed initial inspection report is completed.
“Complete all guarantees for stoves, ovens, dishwashers and air conditioners and ensure a landlord’s insurance policy is in place to cover loss of rent due to malicious damage and a basic contents policy to cover any dispute about building or contents,” says Rothwell.
As with any property investment, research is the key to ensure the numbers add up and that all the correct measures are taken to safeguard investors and their property.
{rsform 49}
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How to: Rent out an off the plan apartment

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Like a brand new car, new apartments and contents depreciate in value almost immediately but many investors are not aware of the depreciation benefits they are entitled to claim.
The Australian Tax Office enables investors to cover part of the purchase price by allowing them to claim depreciation on certain items like fittings and fixtures at the end of every financial year.
Although there is no percentage that fits all off the plan purchasers, Matusik Property Insights director Michael Matusik says up to 60% of the built cost of a new apartment can be tax-deductible over time.
Purchasers of off the plan apartments can take the contract of sale to a quantity surveyor to have a depreciation schedule put together, as the contract will detail inclusions such as price, size of the unit and size of the building.
A tax depreciation company can also inspect a property to determine the current value of every item and will then calculate how much value each of those items will lose every year for up to 40 years.
However, Multifocus Properties and Finance chief executive officer Philippe Brach says to get a definite schedule that an accountant can use, the property must be settled as the settlement acts as the starting date for the depreciation entitlement.
The depreciation report is submitted at the end of every financial year and is allowed to be back dated by up to two years.
BMT Quantity Surveyors director <a href="/expert-insights/finance/depreciation-tax-deduction-opportunity-for-investors-as-the-block-sky-high-reality-television-series-turns-serious">Brad Beer says on average investors can claim between $5,000 and $10,000</a> as a first full-year deduction.
Brach says for the first few years, depreciation will fall away rapidly but is largely compensated by rising rent revenue in keeping the cash flow constant.
“After about 10 years, depreciation will stop declining but rent will still keep rising, therefore the cash flow starts increasing,” says Brach.
Property investor <a href="/expert-insights/finance/the-benefits-of-depreciation-or-how-wear-and-tear-can-be-to-your-advantage">Cameron McEvoy</a> says the amount an investor can claim is always much higher in the first few years.
“It goes without saying that the figure for say year three, will be much higher than year 27.
“This is due to the gradual degrading value of items.
“More often that not, properties that are one to five years old have the most depreciable potential,” says McEvoy.
Brach advises that when looking at potential investment properties, fittings and fixtures should be taken into consideration when short-listing apartments as they will give high depreciation in the early years.
Off the plan buyers should be able to obtain a depreciation schedule from the developer free of charge to help them work out their numbers properly but if one is not available, a report can be constructed for around $300 to $1,000 through a depreciation specialist.
“Without a schedule, your cash flow may be way out of reality and you investment decision will be wrong,” says Brach.
The one-off report fee is also tax deductible.
{rsform 49}
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How to: Check your depreciation entitlements

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This weekend, Lend Lease launched ‘Atherstone’ in Melton South – a house and land development that had been advertised on the council website and signs surrounding the area, notably on Bridge Road, in the lead up.
The area has a proposed train station, town centre, oval, community hub and school noted on the master plan and will see the 481 hectare masterplan potentially house 4,000 homes and up to 11,500 people.
With these significant statistics in mind, it’s not surprising that on the drive out there is vast expanses of currently undeveloped land, offering a range of lot sizes, prices and streets.
<img src="/images/2014/04/07/horizon-drive-april-7-breakout.jpg" alt="">
Sunday saw the release of the display homes, from a number of home builders showing off their wares. Burbank, Carlisle Homes, Ei8ht Homes, Elite Home Constructions, Fenhurst Homes, Granvue Homes, JG King Homes, Kingswood Homes, Porter Davis, Quantum Homes, Simonds and Snowdon were on the list to display, although on the day a couple of these appeared to be missing.
With such a range on offer, and similar at other releases, how can prospective investors and home buyers be sure to make the most of their time on site?
Prepare in advance
Do not head in to the development cold. Know whether you are interested in the area itself, or just trying to get a feel for different building styles. A display home launch is a great place to get inspiration for your next property, however it can also quickly see you overwhelmed as you walk through beautiful home after beautiful home.
Bring a camera (or smartphone/tablet with photo capacity), a notepad and pen and a bag (for all the brochures). If you already have a block of land, come prepared with the specs on that property and your budget requirements.
If you can, have an idea about which of the builders you may already be interested in. A bit of googling and searching online can do wonders for cutting down who you do and do not want to see. If you're going to be buying with someone else, then involve them in this process even if they cannot be at the display launch themselves.
Be the early bird
Come to the site a little earlier than any of the major events – such as BBQs or, in this case, a high tea.
House and land developments and display launches, particularly in family-friendly areas, are often swarmed with children. For those wanting to get a clear picture on the day – leave the kids at home. While these events are advertised to bring your little ones along, providing bouncy castles and balloons, they are still in your care. Property Observer notes how difficult it can be to really get a concept of how the floor plan might work for you when you’re trying to keep one eye on your offspring running from room-to-room.
Get yourself some easy parking and head in early so you don't find yourself waiting in queues.
Be selective
While there’s a lot on offer, you need to be specific and selective when on site. The more display suites you wander through, the more overwhelmed you are going to be. The closer you are to purchasing/building, the narrower your search field should be, so if this is your first display launch and you have not yet purchased a block, don’t feel too disheartened if you look around every property and still feel confused.
For those further in the journey, you should have some idea of what you are looking for. If you want a green-star property, or a two-storey home, then it’s time to prioritise. Do not feel that you need to go into the properties in the order they are presented in. Take five minutes to choose the top display suites to look at. Often, you will be presented with some form of a map (such as that below), which can quickly help you plan ahead.
<img src="/images/2014/04/07/melton-south-april-7-map.jpg" alt="">
While the above map itself was actually part of a competition - where maps that were completely stamped were up for a draw for a $500 prize - it actually proved to be a useful tool for navigating the site, and for later reference.
Heading in to the builder’s show room
Don’t get too distracted by the bells and whistles on the day. While it was nice that cakes and tea, a BBQ and face painting were offered on the weekend, for those with limited time frames, remember why you’re there.
Often, before you head into the display property itself – or in the first room – you will enter into a builder’s display. Here, floor plans, pricing information and other details are on offer. Gather what you can and keep these in order. Note the prices, and ensure to leave anything that is outside of your affordable range, unless you’re looking for comparisons. Leave speaking to the consultant until after you have wandered around the property itself, as this should give you more questions to ask.
Get a copy of the floor plan for the display suite you’re going to look at. This will come in handy later.
Entering the display suite
By this point, you’re ready to enter the display suite. This is the fun part that home buyers love – however, don’t be hasty. Pull out that camera and take a snap of either the marker sign (often at the front of the home) that notes which floor plan/property style this is, and which builder, or the appropriate part of the brochure. This provides you a marker for when looking back at your photographs. You don't need to be a photography expert - the below will attest to that - these are just to jog your memory for later use.
<img src="/images/2014/04/07/melton-south-april-7-one.jpg" alt="">
<img src="/images/2014/04/07/melton-south-april-7-two.jpg" alt="">
<img src="/images/2014/04/07/melton-south-april-7-three.jpg" alt="">
The great thing about these photos is that they also provide details you may not have remembered - for instance, while the 'Jade' floor plan from one builder clearly sticks in the mind, the size of the lot and the dimensions were less easy to remember.
Now, put the camera away and walk through the property.
Enjoy yourself, look at the beautiful furnishings and wallpaper, and the pretty ornaments on the table. Have a bit of fun with the interior design. The below, for instance, was a stand out idea that Property Observer loved, and there was much to be in awe of.
<img src="/images/2014/04/07/melton-south-april-7-four.jpg" alt="">
We all thoroughly enjoy this part of the process, but now it’s time to take a step back, and move past the furniture. Remember you’re buying the building and that unless you purchase the interior design, furniture and (importantly!) the cleaner with the home, you’re unlikely to ever see your property looking quite this nice. This doesn't mean you can't take inspiration, nor that you can't order the furniture (there are often brochures available for the interior decorating, as well as furniture packs that you can purchase emulating these styles), however remember what you're here for.
Start from the front door again, and take photos clockwise of each room in the property. Take down notes of any features you particularly like, or elements that you do not like (such as, an open plan study right next to the kitchen – a feature seen in one of the Atherstone display suites). If you have a lot to get through, an easy way to remember a feature you really like is to photograph it twice - this will call your attention to it when you're later going through the details.
Then take a moment, and listen in to what other people are saying – are certain corridors too narrow (something that is easily noticeable when heavily trafficked by interested families) or is the bathroom too dark because of the tiles? Remember you can change the colours and materials, but that certain aspects will stay the same. The preference of different people will be revealing – is a certain floor plan popular with families, and another for DINKs? Don’t think that you can’t ask others looking what they think of the property as well - usually everyone is more than happy to have a chat.
Head back to the builder’s showroom
If you liked the display suite, head back in to the builder’s showroom and get yourself a business card. Speak to a consultant about inclusions and what can/cannot be changed. Note this information down and ask about other floorplans as necessary. Ensure you ask about extra costs for changing aspects of the building, and for any extra information that isn't easily available in the suite itself.
Repeat this procedure for the different builders and display suites.
A quick debrief
Head home and go over your notes. The quicker you review what you did/didn’t like and the prices, the more likely it is to stay in your mind. Don’t be too concerned if everything has blurred in your head already – after more than five display suites that are often quite similar, it’s unsurprising.
At this point, you may realise different things looking back at the photographs and floor plan. Perhaps the bedrooms are just slightly too small for the double beds that your teenagers need, and they just looked bigger due to careful furniture placement. Narrow down your selections and choose either your favourite elements, or your favourite overall floor plans. Some people scrapbook, others keep online folders and some even create excel spreadsheets. How you keep your records is a 'how to' for another time.
Well done! You’ve just finished navigating a display home launch. Now it’s time to either head to another, or to get in touch with a builder.
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How to: Navigate a house and land display home launch

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Off the plan properties appear attractive to some buyers as only a 10% deposit is required up front, leaving a timeframe of 12 to 18 months to get the necessary finance in place.
Off the plan purchasers are entitled to borrow the same amount as other forms of lending – up to 95% of the purchase price and capitalised lenders mortgage insurance (LMI) – but will need to commit to the purchase without having an unconditional approval from the bank.
Buyers cannot apply for a mortgage if settlement is over 18 months away but most lenders issue a pre-approval, and once settlement comes, it can be reassessed.
Multifocus mortgage broker Philippe Branch says generally lenders require a valuer to go on site and visit the premises, which is only possible about four to six weeks before settlement.
“An application can be lodged up to six months in advance with some lenders but the approval is subject to valuation,” Branch says.
“Some rare lenders will offer full approval with an off the plan valuation, without going on site up to 17 months before settlement. However, they will do a physical valuation before settlement to confirm the first valuation.”
Branch advises that purchasers stick to borrowing 90% of the purchase price plus capitalised LMI as a maximum, as LMI can become expensive at 95%.
“LMI can be over 4% of the value of the loan and mortgage insurers become really nervous of mortgages over 90%, applications need to be strong,” says Branch.
Branch says there are hidden costs to be aware of in buying an off the plan property, including not only a lawyer, but also blinds and curtains.
“Lawyers costs are typically more expensive as off the plan contracts are usually not standard contracts,” he says.
“So whereas a typical conveyancing would be $1500 to $2000, an off the plan would probably be $2000 to $3000.
“Also, make sure that blinds and curtains are included in the contract otherwise it is an extra cost at settlement.”
The repayment schedule of an off the plan purchase does not differ from other forms of lending and can be paid as principal and interest over 30 years or interest only over 30 years, with a five to 15 years interest-only period.
If the developer happens to go bust during development, the purchaser does not lose their 10% deposit.
“Most off the plan deposits will go into a lawyer’s trust account and is not available to the developer,” says Branch.
“If the developer goes bust, then the deposit and accrued interest will be returned to the buyer.”
Branch says buyers sometimes give a 10% deposit or more to the developer directly, who in return promises huge interest, typically 15% per annum.
“Schemes like this gave off the plan a bad name in the past. If the developer goes bust, the investor has lost the deposit,” says Branch.
First home buyers are entitled to state grants when buying or building a new home and buyers in New South Wales are entitled to a New Home Grant, which equates to $15,000 for off-the-plan homes, dropping to $10,000 in 2016.
The list of grants available in each state can be found on government websites.
Buying off the plan comes with pros and cons like any property purchase, but it’s important to keep in mind that a pre-approval valuation may be less or more than the final valuation, ultimately altering the percentage of the amount borrowed.
{rsform 49}
 
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How to: Organise finance for a new build

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As many property investors know, the best investment opportunities sometimes lie a little beyond your doorstep.
Are you a Sydney resident priced out of your home market, but thinking of finding some capital growth in Brisbane? Or maybe you’re dying to buy in Melbourne, but are based in Western Australia for work. While searching, buying and settling – let alone maintaining – a property from a distance may seem impossible, it’s in fact entirely manageable and often a <a href="/expert-insights/investing/four-reasons-you-should-consider-investing-in-property-interstate-ed-chan">terrific wealth builder</a>.
Finding the right property
It may well be the Property Observer mantra: do your research. If you’ve heard that the Queensland market is undervalued, take the time to determine what you want out of your investment and look at area data to see which suburbs stack up. 
Purchasing property interstate can force you to be realistic about your investment prospects – remember, you won’t be living there, so keep your eyes on the numbers and <a href="/news/qld/the-five-most-overrated-queensland-markets-to-buy-in">don't buy into hype</a>. 
With online listing sites, you can always know what's available, no matter where it's available. So there's no excuse to limit your search to your state. Finding the right people                                  
Once you’ve figured out which suburbs and what sorts of properties you’re interested in, it doesn’t hurt to enlist a little help. If you have a property savvy family member in the area who doesn’t mind putting in a little time for you, you might be able to palm off some of the legwork, like attending auctions to see whether homes tend to go for more than their listed price, or scoping out buyer demand.
Better still, consider putting some money down for a <a href="/news/how-buyers-agents-pick-the-best-performing-properties">buyer’s agent</a> or a conveyancer. Their local knowledge will surpass yours in <a href="/news/the-argument-for-against-buyers-agents">almost every way</a>; good connections with agents, the inside scoop on what properties are really worth and an understanding of <a href="/expert-insights/investing/buying-interstate-the-information-you-need-to-know">state purchasing laws</a> can be invaluable.
A conveyancer, a specialist lawyer, can look after all aspects of the process for you, from researching properties, lodging your legal documents and putting your deposit in a trust account.
Once you’re really serious about a property, it’s worth a flight to walk through yourself and have a look at the neighbourhood. You might also need a builder to do a walk through and inspection for any faults in the property and to let you know if you’ll have any troubles with renovations further down the track. 
And once the property is purchased and settled, you will, as always, need <a href="/expert-insights/investing/six-things-to-look-for-when-choosing-a-property-manager">a good property manager</a> – one who can source good tenants and maintain your property and your flow of cash.
Key differences
There are three standout differences between the states and territories when it comes to buying property: information, cooling off and government support and taxation.
The changes in the level of information vendors must disclose may influence just how much help you need to engage to buy your property. In Victoria, all vendors are required to provide Section 23 documents, which include any mortgages or debt against the land, planning information and any registered works on the property. When purchasing a property in the ACT you will have access to similar documents which will also include a pest inspection report and an energy efficiency statement.
The other states and territories require varying but generally less comprehensive levels of disclosure: NSW and SA vendors must provide Schedule 1 and Form 1 documents respectively, which won't include details of building works. Vendors in Tasmania, Queensland, NT and WA can all sell properties without giving disclosure statements to buyers.
As for "cooling off" periods, if you're buying a property in ACT, NSW or Queensland, you'll be allowed a five day period to change your mind after a purchase. SA properties come with a two day cooling off period that commences either once the contract is signed or once the Form 1 documents are provided, whichever is later. There is no legal requirement to provide a cooling off period for property purchases in WA or Tasmania, or for Victorian properties purchased at auction.
Each state has its own rate of stamp duty or land tax that is applicable. Make sure that you factor this into your budget when considering a property purchase. Many state government websites provide stamp duty calculators. Grants and concessions also differ from state to state. If you're buying a new or substantially renovated property in the ACT before June 30 2014, you may be eligible to be charged duty at the concessional rate. Buying an off the plan land and home package will get you a concession from the Victorian government. Similarly, the NSW government offers a $5,000 grant for the purchase of new homes.
Purchasing a new build in SA could also make you eligible for a Housing Construction Grant of up to $8,500. Buying an off the plan property in the state before June 30 2014 could also give you a stamp duty concession in the state. For a run down of the concessions and charges you'll be subject to, see each state and territory's revenue office website (see below).
State and Territory Revenue Offices:
<a href="https://www.sro.vic.gov.au/sro/sronav.nsf/Home+Page/SRO~Home+Page?open" target="_blank">Victoria</a>
<a href="https://www.osr.nsw.gov.au/" target="_blank">New South Wales</a>
<a href="https://www.revenuesa.sa.gov.au/" target="_blank">South Australia</a>
<a href="https://www.finance.wa.gov.au/cms/section.aspx?id=209" target="_blank">Western Australia</a>
<a href="https://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/Pages/default.aspx" target="_blank">Northern Territory</a>
<a href="https://www.osr.qld.gov.au/" target="_blank">Queensland</a>
<a href="https://www.revenue.act.gov.au/" target="_blank">Australian Capital Territory</a>
<a href="https://www.revenuesa.sa.gov.au/generic-pages/i-am-a-property-ownerbuyer" target="_blank">Tasmania</a>
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How to: Buy property interstate

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Buying a new apartment off the plan is increasingly popular, but there can be pitfalls if individuals fail to do the necessary research on the property developer.
Background checking a developer doesn’t mean becoming Sherlock Holmes and sleuthing around, but it does require a potential purchaser to ask questions and take an interest in a developer’s history.
The best place to start is online by looking at property blogs and newspaper articles. A quick search of the developer’s name should yield results. Are there any court actions against a developer? Bad feedback on forums should ring alarm bells.
CBRE director of residential development Matthew Ramsay says the other key step is to research a developer on their website and see what other projects the company has developed.
“You can go out and see the display suite and see the quality of the actual project, or even older things they’ve built, to see the quality of the finishes,” says Ramsay.
Ramsay says there are two types of developers, tier one and tier two.
“There’s the developer who will employ a third party builder and it’s important to know who that third party builder is. It needs to be someone who has a signification in the market and someone who has done residential construction before,” says Ramsay.
“If a builder is known as a tier one or a tier two builder, then they’re known as a good quality builder in the market place.”
If an individual is going through a buyer’s agent, the agency will generally obtain information through their agent contacts in the market and will know the quality of the product the developer provides through past experience.
Property Searchers managing partner Scott McGeever says it is important to look at the facilities offered in the complex, as they can be big-ticket costs down the track and significantly add to strata expenses.
McGeever says to look at the type and quality of the construction and the level of fittings and fixtures that are used in the complex and well as the interior of the property itself.
“If they are cheap and nasty, they tend not to age well and look tatty after a short period and that will effect re-sale,” says McGeever.
Most new development projects have a mandatory seven-year structural warranty with an insurer and Ramsay says buyers do have rights in their contract of sale if things were to go askew.
“In most, if not all contracts of sale, there is a deadline date in which the developer must have the apartment completed and hand it over to the buyer,” says Ramsay.
“If the developer misses that deadline date, the buyer then has the right to refuse the contract and the deposit is returned.
“If the apartment layout changes or there’s significant changes to the apartment, the buyer also has the right to refuse the contract.”
It’s also important to have the contract of sale read by a solicitor.
With the right research done into the developer, the architect and the contract details, buying off the plan does not need to be a risky property investment.
 
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