<a href="https://www.urban.com.au/developers/far-east-consortium">Far East Consortium</a>’s 640 Bourke Street stands as a testament to&nbsp;<a href="https://www.urban.com.au/developments/melbourne-vic-3000">Melbourne</a>’s ability to bridge its storied past with a bold vision for the future.&nbsp;

Rising above the heritage-listed Eliza Tinsley building, the development reflects a broader shift toward adaptive reuse in the city, where historical assets are retained and reinterpreted as part of new residential development.

Designed by <a href="https://www.urban.com.au/architects/rothelowman">Rothelowman</a>, <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> incorporates the Eliza Tinsley building as its foundation, housing a grand gallery and lobby space that serve as both a functional and symbolic centrepiece. The heritage façade informs the tower’s design, creating a connection between Melbourne’s past and its contemporary skyline.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=365684]

Above this historic base, the 68-storey tower will deliver just over 600 residences, a notable reduction from earlier schemes, reflecting a deliberate move toward larger-format apartments and a stronger owner-occupier focus.

Unlike traditional CBD developments that prioritised investor stock, 640 Bourke Street has been repositioned to respond to changing buyer expectations.

"The discussion was all around making 640 Bourke Street the best residence to live in, to be much more focused on the people in the building rather than people looking at the building," Marsland explained.&nbsp;

This shift is evident in the development’s interiors, which emphasise practical luxury with spacious layouts, high ceilings, and floor-to-ceiling windows framing sweeping views of Melbourne and Port Phillip Bay.&nbsp;

“What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Lauren Sheldon, Far East Consortium’s Director of Sales and Marketing, said.&nbsp;

[smartcode_project:default project_id=509 project_image_fid=365687]

Rothelowman Associate Jun Chang added, "We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."&nbsp;

Amenities spanning more than 3,000 sqm across multiple levels further reinforce this focus on resident experience. These include a pool, gym, co-working areas, and a range of hospitality-inspired spaces such as a whisky lounge, library, and private dining rooms, many drawing reference from traditional bathhouses and Melbourne’s laneway culture.

"We wanted to make both the pool and the gym area to be absolutely destinational, and when you traverse across to these spaces, there is a gentle familiarity to the beautiful notions of the hammams and the Roman baths, a gentle nod to history," Chang noted.

At street level, the project contributes to the ongoing transformation of the western CBD, with upgrades to Langs Lane and the introduction of retail, hospitality, and gallery spaces designed to activate the precinct and strengthen its connection to the surrounding city fabric.

[smartcode_project:default project_id=509 project_image_fid=365689]

The location places residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market, and the Docklands waterfront, positioning the development within a rapidly evolving inner-city neighbourhood.

"We believe it's the best site left in the city of Melbourne," Craig Williams, Executive Director at Far East Consortium, said.&nbsp;

640 Bourke Street is Far East Consortium’s 14th building in Melbourne’s western CBD.

"A very elegant designed building. It's going to be a Melbourne statement for many, many years to come."

One-bedroom apartments are priced from around $640,000, with 640 Bourke Street targeting completion in 2029.

Renders shown are Artist's Impressions correct as of May 2026.

[smartcode_project_cta:default project_id=509]

Joel Robinson

Heritage-led design anchors Far East Consortium’s 640 Bourke St, Melbourne

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD Group</a> has set a new residential price record in Queensland with the $30 million sale of the penthouse at its <a href="https://www.apartments.com.au/new-apartments/one-burleigh-88-the-esplanade-burleigh-heads-qld-4220">ONE Burleigh</a> development in Burleigh Heads.

The sale equates to around $37,500 per sqm.

The two-level, 800 sqm penthouse, featuring five bedrooms, five bathrooms, five car spaces, and a private infinity pool overlooking the Pacific Ocean, was acquired by a Gold Coast-based entrepreneur, highlighting continued demand for ultra-premium beachfront product.

Selling agent Freddie Tehle of PRD Burleigh Heads said the result reflects tightening supply of high-quality, large-format apartments in Burleigh.

“There’s very limited opportunity to secure this level of scale and absolute beachfront position in <a href="https://www.apartments.com.au/developments/burleigh-heads-qld-4220">Burleigh Heads</a>,” Tehle said.

“Buyers are increasingly seeking apartments that genuinely replace a standalone home, and this penthouse delivers that with its size, privacy, and direct ocean frontage.”

[smartcode_project:default project_id=146358 project_image_fid=323057]

The sale comes as construction progresses on ONE Burleigh, a boutique development of 17 full-floor residences at 88 The Esplanade, scheduled for completion in early 2027.

Developed by MAYD Group and designed by <a href="https://www.apartments.com.au/architects/mas-architecture-studio">MAS Architecture</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/sici-design">Sici Design</a>, the project has been positioned as a collection of house-sized beachfront apartments, each occupying an entire floor with around 381 sqm of internal and external living space.

When construction commenced, MAYD director Todd Mould pointed to the long-term resilience of premium coastal real estate as a key driver behind the project.

“Real estate, particularly at the premium end, remains one of the most resilient and proven long-term investment avenues,” Mould said.

“Our ambition is that anyone who buys a MAYD-built product can genuinely feel the care, craftsmanship and commitment we bring to every detail.”

[smartcode_project:default project_id=146358 project_image_fid=323055]

Each residence has been configured with four bedrooms, multiple living zones, a private office, and expansive ocean-facing terraces. Interiors draw on a restrained material palette, including travertine stone, timber joinery, and integrated premium appliances.

Interior designer Sici Design said the approach was to reflect the project’s coastal setting through both materiality and spatial planning.

“ONE Burleigh is our vision of luxury living, designed to bring the essence of Burleigh Heads' vibrant coastal beauty into an unparalleled residential experience.”

Residents will have access to a suite of wellness-focused amenities, including pools, sauna facilities, and dedicated relaxation spaces, reflecting a broader shift toward lifestyle-driven apartment design on the Gold Coast.

[smartcode_project:default project_id=146358 project_image_fid=323052]

The project occupies a southern Esplanade site with uninterrupted beachfront frontage, an increasingly rare offering in Burleigh Heads, free from the Norfolk Pines that line much of the coastline and often limit direct ocean outlook.

Mould said the design intent was to balance that outlook with a sense of retreat.

“Living at ONE Burleigh is about how your day naturally unfolds, morning light across the ocean, coffee on the balcony, and being in Burleigh but elevated above the noise.”

The result further reinforces Burleigh Heads’ emergence as one of the Gold Coast’s most tightly held and supply-constrained beachfront markets, where boutique, owner-occupier-focused developments are increasingly setting new price benchmarks.

[smartcode_project_cta:default project_id=146358]

MAYD Group sets Queensland record with $30 million penthouse sale at ONE Burleigh in Burleigh Heads

Apartment developers in the Gold Coast are finding new, creative ways to differentiate themselves from competing projects, as new supply starts to flow through up and down the Coast.

Developer BIG Projects brought in the renowned Sydney-based design studio YSG Studio to craft the interiors for The Frederick, BIG Projects' new Mermaid Beach project and YSG Studio's first move into the multi-residential development space.

[smartcode_project:default project_id=110588 project_image_fid=5346]

It was a strategic move for BIG Projects to bring in a Sydney eye to the development.

“Our role is to give our design partners the space and freedom to explore,” says Matt Barrett, Director of BIG Projects.

“We wanted YSG Studio to capture the essence of Nobby’s, to design a building that embraces life, light and connection, while creating a genuine sense of place.”

There are only 39 apartments in The Frederick, including a striking beach house, just 100 metres from the booming Nobby Beach precinct.&nbsp;

[smartcode_project:default project_id=110588 project_image_fid=5347]

Yasmine Ghoniem, Director of YSG Studio, says their vision&nbsp;for The Frederick "reinvents coastal living."

“Nobby’s has such an iconic energy, it’s one of those rare pockets of the Gold Coast where the community, the beach, and the streets all feel connected,” Ghoniem says.

"Responding to the neighbouring coastline, soothing curves add a relaxing regional overlay, while unique detailing really sets it apart. It’s a place that feels lived in from the moment you step inside.”

A standout feature of The Frederick is its rooftop terrace, an uncommon inclusion for a boutique, low-rise building, where amenity is typically concentrated at ground level.

[smartcode_project:default project_id=110588 project_image_fid=5360]

Positioned to capture panoramic views from the hinterland to the ocean, the rooftop has been designed as a series of intimate zones. It includes a pool, sauna, sun decks, workspaces and dedicated entertaining areas.

“The rooftop was conceived as a collection of spaces where residents can unwind and connect, an extension of the Nobby’s lifestyle,” Barrett says.

Architecture for the project was led by Plus Studio, with landscape design by LDG Landscape Architecture.

SRQ Projects Director Nick Clydsdale, who is handling sales at The Frederick, says the majority of enquiry is coming from South East QLD and Victorian buyers who have been actively searching between Broadbeach and Mermaid Beach for some time.

"They’ve reviewed a number of projects, however this one has stood out for its unique detailing and compelling design,"&nbsp;Clydsdale says.

Site demolition is slated for this month, with construction commencing soon after. BIG Projects is targeting a late 2027 completion.

[smartcode_project_cta:default project_id=110588]

Sydney’s YSG Studio makes Gold Coast multi-residential debut with BIG Projects at The Frederick

Melbourne-based property developer ALTA Property has this week achieved planning approval for the adaptive re-use of a former commercial tower into a $200 million, 169-apartment project at 10 Queens Road, one of the last developable sites along the Albert Park Lake-fronting boulevard.&nbsp;

Set within one of Melbourne’s most sought-after precincts and designed by <a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser and Partners</a>, the illustrious building will offer unparalleled views across Albert Park Lake, Port Phillip Bay and Melbourne CBD.&nbsp;

The mix of 1, 2 and 3-bedroom residences will be complemented by a ground-floor amenity featuring private dining, a lounge bar, gym and wellness spaces, co-working, outdoor communal gardens, and retail.&nbsp;

The 17-storey building is a masterclass in adaptive re-use, with the existing commercial building’s façade, shell and internal structure to be retained, before high-end residences are built from the ground up in a newly built Albert Park facing addition to the building.&nbsp;

Sitting atop the building will be two 320+sqm penthouses with private rooftop terraces, which are expected to be priced between $9 - $11 million.&nbsp;

<img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="aa11211b-5581-43f9-940c-fc84d30a0e61" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/C_04.png?VersionId=Yhf5p_1EgGDu_zOIMFgvA8Ug8j3sTFQs" />

Architecturally, the building will feature a curved, geometric façade that celebrates and elevates the existing structure, with warm, muted tones which were selected to extend the materiality of the existing building rather than contrast it.&nbsp;

Interiors will bring together three metre high ceilings with waffle concrete in some spaces, natural timber, granite and Australian materials, culminating in crafted, generous and considered spaces that are defined by authenticity.&nbsp;

The adaptive re-use means that the Queens Road project will be a sustainability led, high-quality finished product, with a 62% saving in carbon emissions by re-using the existing structure rather than knocking it down and rebuilding.&nbsp;

ALTA Property was launched by Nigel Givoni in 2023, bringing over 25 years of experience in multi level residential delivery.&nbsp;

Melbourne’s property market growth is currently led by apartments. According to RPM VIC Apartments &amp; Townhomes Market Report (April 2026), units are outpacing houses, especially in the middle ring suburbs where median prices hit $757,500 – a four-year high that represents 2.9 percent growth quarter-on-quarter.&nbsp;

<img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="647e13d7-b4bc-433a-9bc9-fe3c3dd4f2ec" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/V_06.png?VersionId=ou4NUCWUgA3NAy.6CQJlEdKX50j3dOk6" />

For ALTA Property Founder Nigel Givoni, this performance speaks to the confidence he has in the Melbourne market.&nbsp;

“Queens Road represents a rare opportunity to continue to shape our presence in the Melbourne market.,"&nbsp;Givoni says.

"With a considered project team and a premier site along one of the city’s most sought-after boulevards, we look forward to contributing to the fabric of this established address.

“Other Australian markets are getting a lot of attention, but I believe the depth of value in Melbourne is being overlooked. The fundamentals are strong, population growth is steady and, based on our preliminary conversations with a leading builder, construction costs are beginning to normalise, creating further opportunity."

Givoni says the project is a&nbsp;highly considered example of adaptive re-use, delivering quality, high-end residences, premium hotel-inspired amenities and an architecturally striking façade, all achieved without the need to remove the existing structure.

"We are really looking forward to the market’s response,” he said.&nbsp;

ALTA Property to deliver $200 million Queens Road apartment tower

Construction is set to begin at <a href="https://www.apartments.com.au/new-townhouses/orchard-mews-glen-iris-18-scott-grove-glen-iris-vic-3146">Orchard Mews</a> in Glen Iris, with&nbsp;PC Whitehall &amp; Sons&nbsp;now appointed as the townhome development moves into its next phase.

The development by&nbsp;<a href="https://www.apartments.com.au/developers/montcoeur">MontCoeur</a>,&nbsp;located at 18 Scott Grove, is now around 30 per cent sold, with completion targeted for late-2027.

Orchard Mews comprises a curated collection of three- and four-bedroom customisable townhomes, positioned within one of <a href="https://www.apartments.com.au/developments/glen-iris-vic-3146">Glen Iris</a>’ more tightly held residential streets. The low-density project has been designed by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo</a>, bringing together a team known for high-end residential projects across Melbourne.

[smartcode_project:default project_id=150128 project_image_fid=366285]

The development is defined by its focus on flexible living and long-term usability. Each residence includes multiple living zones and a customisable multipurpose room, allowing buyers to tailor spaces to suit changing needs, whether as a home office, additional bedroom, wellness area or entertainment space.

Architecturally, the townhomes emphasise natural light and spatial volume, with dual-aspect layouts and double-height living areas incorporated into the design. Interiors feature natural stone benchtops, premium appliances, and a neutral material palette intended to support everyday functionality rather than statement-driven finishes.

All residences are all-electric and include private lifts and secure double garages, reflecting a broader shift toward sustainability and future-focused housing in Melbourne’s established suburbs.

[smartcode_project:default project_id=150128 project_image_fid=366277]

Outdoor connections are also central to the offering, with a mix of private courtyards and terraces extending internal living spaces and integrating with the landscaped surrounds.

The Scott Grove address places Orchard Mews within close proximity to some of Melbourne’s key lifestyle and education amenities, including Scotch College, Sacré Cœur, Cabrini Hospital and the retail hub of Chadstone. Public transport access is also nearby, with trams and Gardiner Station providing connectivity to the CBD and surrounding suburbs.

[smartcode_project_cta:default project_id=150128]

Construction to commence at luxury Glen Iris townhome project, Orchard Mews

Investor Tips

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Hi Margaret,
My wife and I are considering building a duplex on the Sydney residential block where we currently live in our principal place of residence. The loan on the home is in my wife's name only and the balance of the mortgage is held in cash in the offset facility.
Our plan is to borrow to build the duplex, live in one and use the rental income from the other to pay down the loan and keep them both. We would both like to be signatories on the new loan. From a gearing perspective my wife is most likely to be the highest salary earner over the life of the loan.
My question then is what would be the best way to refinance/restructure the loan to minimise our tax liabilities? Alternatively, who would be the best person to approach for advice on this matter? Our accountant? Taxation specialist? Mortgage broker?
Margaret Lomas' answer is on the next page. Please click below.
<hr class="system-pagebreak">
You will need to check with your accountant for your own individual circumstances, but I would suggest that he or she will most likely advise you that, for tax purposes, the land owner ( your wife) is treated as the recipient of all income / deductions including interest.
You have not specified if she is the only one of the two of you on the certificate of title - if so then only your wife gets the deductions. If you are both on title, but the loan is only in your wife's name, you need to check on her deductibility status, as I would suggest that the entire loan may not be deductible if only half the property is hers.
The name on any loans is irrelevant - except in regards to providing the security for the debt - as it is treated for tax as "on lent". I always tell people to be very careful when they structure their loans as the bank may not be giving the correct advice, or any advice at all in regards to structure. 
The bank will notoriously protect themselves by seeking commitment from both parties (where there is more than one) even where both parties may not be on the title, and this can really play around with your ultimate deductibility. 
I would have to say that when a new client comes to my company, Destiny, eight times out of 10 they have the wrong structure in place.  At times this can be fixed, but at others it cannot, and the best we can do is ensure that going forward, all is correct!
With regard to the new loan for the duplex, you must have your accountant correctly establish the relationship between the current debt in your wife's name and the present property, which is your Principal Place of Residence (PPOR). This is because the portion of the end debt which relates to the PPOR will not carry any deductions, while any portion of the debt relating to the new part of the build will be if it is income producing.
In relation to obtaining that new debt for the build, I am not sure why, if your wife will be the higher income earner, you wish to have this new loan in both names.
The highest income earner brings the highest deductions, and therefore the property and loan is best placed in that person's name, as long as you expect this situation to continue. In any event, even if you do use both names on any new debt, this won't change the fact that the title is in her name and so the deductions are hers.
You can only change this if, prior to undertaking the project, you essentially buy half of the property off your wife. You will pay stamp duty on half of the market value of the whole property, even if she sells it to you for a nominal amount.
I am not sure where you live, but in some states (such as Victoria) you can make a transfer of title by way of 'love and affection' and avoid this stamp duty - so check with the office of state revenue in your state.
When you do rent out the new property, be careful how you manage the rental income to pay off your personal debt.  he tax office does not like you to capitalise interest on an investment debt, and it will be critical for you to get proper tax advice appropriate to your personal circumstances before undertaking any rapid mortgage reduction strategy.
At the end of the day, always check with your accountant before making any move at all. 
Well-meaning mortgage brokers and banks are not usually able to provide you with the right kind of guidance in this very complex area. 
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mlomas-KC9MUPZ6Ca

Ask Margaret: How can I restructure my loan to minimise my tax liabilities?

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I've been going through some personal challenges lately. While it's been emotionally very hard, it's made me realise something I was totally unaware of.
I treat and deal with my personal obstacles in the same way I do the challenges I encounter in property developing.
I hadn't thought too much about the way I work and the way I live and kind of assumed they were separated by an invisible line in the sand. But the longer I've been running my business, the blurrier the line has become.
Yesterday I had to go into a very unfamiliar space. I had to negotiate something of upmost importance to my family's future, but it was personal and highly emotive stuff.
To get through it, I put on my business hat and approached it in the same way I would if I was negotiating a property deal or managing a development issue.
By doing this I could emotionally remove myself from the situation and make some very straight calls. This helped me get through the day but more importantly, the result I had visualised for a few weeks leading into this actually materialised.
I felt that this mental preparation gave me a guideline or goal for an acceptable outcome. Let me explain what I mean by 'preparation'.  I'm literally talking about only a few minutes every couple of days thinking about what I wanted to happen. That's all.
I'm not sure if I'm noticing this more as I get older or it's because I'm more 'tuned in' but this whole visualisation thing works for me, in work, at home and in business. 
I'm certainly not a 'new age' type but I've found if you open yourself up to an outcome and allow some emotion reasoning behind why you want that outcome, then magical things can happen.
Apart from my personal results, I've also been very pleased with some business results this week. Property Bloom has completed a few developments for our clients, we've found some very good development sites and had tenants literally jumping to sign a lease on a completed dual occupancy project.
In order for these enthusiastic tenants to move into their new homes, we needed to handover the project. This means the final drawdown has to be paid by the developers bank into the builder's account before keys will be released. This process can sometime take weeks, but we didn't have weeks, only days.
Our ducks were lined up after we held an open house a few weeks before completion knowing that tenants will need to give two weeks' notice before they could move into the new villas.
We conducted our Practical Completion inspection on the duplex instructing our client to put the final invoice to the bank for payment – at the same time we managed some small items still to be finished on the build.
The bank's valuer inspected the duplex on Tuesday, the bank paid the final builder's invoice on Wednesday, funds hit the builder's account on Thursday and keys were delivered to the agent ready for the tenant to move in on Friday. This precise timing means our client has a rental income from the day after handover.
So how did visualising help?  Well I knew three weeks prior the day the tenant had to move in and while you cannot control this part of the development as we are relying on banks and payments to hit accounts, all we could do was ensure everyone had all the information they needed to do their jobs and 'know' (hope) that all would be well.
In this case it worked, but there has been others where it hasn't.  Where I've had a feeling someone is going to drop the ball, whether it's an impression I got from the bank or the builder or the valuer or the agent or the tenant. Whatever it is, you need to act on this feeling and adjust the finish line. It's about using your gut feel, intuition, experience or whatever you want to call it.
So refocus, and get your eye back on the prize.
<a href="https://www.propertybloom.com.au">www.propertybloom.com.au</a>
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jochivers-wq5Bp59R5a

Playing the property game, keep your eyes on the prize

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SPONSORED POST
“My one bedroom investment property created more wealth in 3 years, than I could have saved in 13 years in my career. At this point, I realised I needed to take property investment very seriously. Because just one property purchase had changed the course of my life.”
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/Bruce-262x300.jpg" alt="">
<h2>CASE IN PROFILE:</h2>
<ul>
<li>Former graphic designer/account director and Ironfish customer</li>
<li>Career change into property investment</li>
<li>8 investment properties, 5 purchased through Ironfish</li>
<li>Rent-vestor</li>
</ul>
<h2>That one property purchase</h2>
Bruce has been with Ironfish for nearly 3 years and is a senior Strategist as well as being part of the leadership team in the Ironfish Burwood office.
Prior to joining us, Bruce enjoyed a successful 13-year career in the design industry, starting out as a graphic designer and moving on to account management when (as he says quite matter-of-factly) he discovered his talent and love for working with people far outweighed any natural creative genius! At around the same time as making this switch, Bruce and his wife Evelyn, also decided to buy their first investment property: a one-bedroom second-hand apartment in Stanmore, a suburb in Sydney’s inner west. A decision which turned out to be life-changing.
<blockquote>
“The amount of wealth my one-bedroom investment property in Stanmore created for me was about 10 times more than I could have saved in my career for the past 13 years. I knew then that I needed to get involved with property – initially that was by becoming a more active property investor, and eventually, this put me on the path to joining Ironfish as well.”
</blockquote>
<h2>Why I decided to buy property with Ironfish</h2>
After Stanmore, Bruce and Evelyn purchased two off-the-plan apartments in Parramatta through a different company, and after two years, when they had built some equity across all 3 properties, they agreed to meet with Ironfish Burwood Strategists Yusi and Haibin to consider further investment options.
“I’ve bought from our ‘competitors’, I’ve bought from traditional real estate agents, and what I’ve found is that most people are quite transaction focussed, and there is very little contact after you’ve bought your property.
“When Yusi and Haibin came to our place, it was a very different type of service. Initially I was still thinking from a transactional view as well, and wanted to just quickly view properties and move on. But before they would show me any properties, they first asked me questions like: ‘What are you going to do in the next 10 – 15 years?’ ‘What are your dreams?’ ‘What are the things you want to pursue in life?’ And a big one, which we had never considered: ‘How can you ensure you can continue the lifestyle you enjoy now, in the event that one or both of you needs to stop working?’ What I learned from our first meeting was that Ironfish Strategists were different; they were not focused on the transaction, they truly cared about my future and about building wealth for my family.”
<div id="attachment_7493" class="wp-caption alignnone">
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/Bruce-evelyn-1024x768.jpg" alt=""> Bruce and his wife Evelyn, with their Strategists Yusi and Haibin
</div>
<h2>A cut above</h2>
While Bruce was impressed with the service and ethos of Ironfish Strategists, he and his wife also fell in love with the properties. On their second meeting, they decided to buy two properties: one apartment in Brisbane (The Melbourne Residences) and one in Melbourne (Aurora).
“The quality of the properties and the locations of those properties were a cut above anything else I’d seen out there. For example, we bought a one-bedroom apartment in ‘Aurora’ for $397,000. Aurora is built on top of Melbourne’s central station, and is the only building in Australia with direct lift access down into the train station and shopping centre below. Imagine if a luxurious skyscraper was built on top of the QVB – that was the kind of building we’d managed to buy into. And I always thought that you needed to be a millionaire or have special connections to get into those developments. The fact that Ironfish could offer me a property like that made me think this company has a lot going for it!”
<h2>Paying the price</h2>
Shortly after their purchase, Yusi invited Bruce along to one of Joseph’s half day seminars – which set him on his path to a new career.
<div id="attachment_7480" class="wp-caption alignleft">
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/bruce-dreamboard-low-res-e1512083506577-168x300.jpg" alt=""> “Travel to all the fabulous places around the world” – A page out of Bruce and Evelyn’s dream-book
</div>
“I was extremely impressed and inspired by Joseph, and I knew immediately that he was someone I wanted to learn from. There was one thing he said that sticks with me to this day. He said: ‘First, you decide what it is you want from life, secondly, ask yourself what price you have to pay to achieve it, and thirdly, pay the price.’ I went home and asked my wife that question: ‘What do you want to achieve in life?’
“We sat down and made ourselves a ‘dream-board’ with pictures of everything we wanted for ourselves and those around us. At the end of the day, I really believe in the law of attraction. I knew that joining Ironfish, talking to successful investors and entrepreneurs like Joseph or [Burwood MD] Linda everyday would help us get to where we wanted to go – and that staying in our current jobs wasn’t going to be adequate. So, my wife and I both made the decision to resign from our jobs and came onboard with Ironfish. It has completely transformed our lives – not just financially, but mentally – how we look at life and perceive things. I can safely say it’s the best decision we’ve ever made!”
After joining the Ironfish team, Bruce has since purchased a further 3 investment properties diversified across multiple cities, and has helped nearly 100 customers invest in the Australian property market. Bruce’s next investment is likely to be a house and land package in South East Queensland.
<h2>Bruce’s property investment tips:</h2>
<ul>
<li>Buying an investment property rather than a home to live in may help accelerate your ability to build wealth – so it’s worth considering if this is more of a priority to you than immediate lifestyle demands.</li>
<li>Build a successful team with the sole purpose of protecting and building your wealth, e.g. a successful property professional, a mortgage broker who knows the ins and outs of financing structures, an accountant who can help you with tax minimisation, lawyer who can identify clauses that might put you at disadvantage in your purchases.</li>
<li>No market is perfect, no market is certain. As an investor, be prudent and diversify and look at where the bigger picture lies. If an area has good scope for population growth, infrastructure spending and employment, and the property is high quality and you can service it comfortably, then I have the confidence to recommend my customers get into any market – whether it’s a peak market like Sydney, or an up and coming market like Perth.</li>
</ul>
Bruce Guan is a senior property investment strategist at Ironfish.
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jrobinson-rf4aSBido9

How one property purchase changed the course of someone's life

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SPONSORED POST<a href="http://www.ironfish.com.au/blog/2017/12/14/australias-population-growth-30-years-ahead-schedule/"> </a>
In 1998, the Australian Bureau of Statistics (ABS) predicted that Australia’s population would grow to at least 23.5 million people in 2051.
In reality, we reached that milestone back in July 2014 – that was the ‘low-growth’ prediction.
At most, the ABS predicted, that our population would grow to 26.4 million people by 2051.
But in 2017, our population already sits at 24.7 million people, meaning we’ll hit that upper-end forecast as early as 2021 – about 30 years earlier than the ABS predicted.
According to current growth patterns Australia is set to reach a population of about 38 million by 2051, around 12 million more people than even the highest forecast from 1998.
<h2>Population growth drivers</h2>
Social researcher and demographer Mark McCrindle says that this isn’t because the calculations were wrong, but that “migration policy changes, longevity increases and a solid birth rate have defied the trends that were evident 20 years ago.”
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/Ironfish_Infographic_AustralianPopStats_A4FINAL_150dpiResolution-724x1024.jpg" alt="">
Back then, they assumed that women would have fewer babies and the fertility rate (the number of babies a woman would have in her lifetime) would continue to drop to a minimum of 1.6 babies and a maximum of 1.75 babies. However, the fertility rate didn’t decrease, it increased, and now sits at 1.81: a figure which is above even the higher forecast from 1998.
In 1998, life expectancy at birth was 76.6 for and 82 for women. The 1998 prediction for 2051 was that life expectancy would hit a high of 82 for men and 86 for women. However, current life expectancy is already nearly 81 for males and 85 for females and will reach this 2051 target decades early.
“However,” McCrindle says, “the biggest growth factor that has blown out previous population modelling has been the rise and rise of Australia’s net overseas migration.
“In 1998 it was thought that it would grow our population annually by around 70,000, or at the most, 90,000 people. In the last 12 months, Australia has added 231,900 through net migration which is more than 2.5 times even the high-forecast of two decades ago.”
<h2>Global leader in growth</h2>
In the decade to 2016, Australia’s population growth rate was 1.69%, outpacing many other developed countries including other English speaking countries, such as the US, Canada and New Zealand. In fact, Sydney  alone is now home to more people than the whole country of New Zealand.
The world’s more developed countries in aggregate grew by an annual average of 0.3%. The world’s population as a whole increased by an average of 1.2% per year.
According to the UN Population Division, the only developed countries that had a faster rate of population growth were Singapore, Luxembourg and Israel.
 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/Australia-population-vs-world.jpg" alt="">
Source: Tom Wilson, Principal Research Fellow, Charles Darwin University, writing for <a href="https://theconversation.com/bloom-and-boom-how-babies-and-migrants-have-contributed-to-australias-population-growth-78097" target="_blank">The Conversation</a>
<h2>The states compared</h2>
Queensland, NSW and Victoria are all outperforming the nation as a whole, with population growth rates of 1.85%, 1.87% and 2.4% respectively.
Back in 1998, Melbourne’s population was expected to reach between 3.6 and 4.5 million by 2051. It’s already surpassed this range, with a current population of 4.8 million people. Sydney was predicted to reach between 4.7 and 6.2 million. It has a current population of 5.1 million and set to reach the higher forecast within the next 10 years. Melbourne is also now tipped to overtake Sydney as the most populous Australian city in the next 20 years.
While overseas migration has been a primary driver of this growth, according to Principal Research Fellow at Charles Darwin University, Tom Wilson, even if migration policy changes take place in future, the population will still grow significantly.
“In particular,” Wilson notes, “relatively large numbers of people are in the peak childbearing ages. This means that even if migration fell immediately to zero the population would still increase. Demographers call this age structure effect “population momentum”.”
How does population growth affect property prices and where to invest in property in 2018?
Essentially, this comes down to a simple question of supply and demand; when the number of people grows faster than the number of new properties on the market in those key growth areas, then the shortfall will place pressure on prices.
“Of course, this is only one piece of the puzzle for property investors,” says Ironfish National Apartments Manager, Will Mitchell. “Our property and research team looks at the overall picture and considers a number of factors such as infrastructure and government spending, transport and employment options to select areas and properties set to outperform the wider market.
“However, the fact that Australia’s population has surpassed all forecasts from 1998 is truly remarkable and should not be taken lightly.
“One of the most common questions I am asked by people looking to buy investment property is whether now is the right time. My response to that is simple: property investment is a long-term investment, and in 10, 20 or 30 years, do you think property will be in more or less demand in Australia?
“Our unprecedented international migration reflects how unique our country is, and the lifestyle that it offers – we have stunning scenery, world-class healthcare, education, retail and dining and we are ranked as one of the <a href="http://www.businessinsider.com/worlds-safest-countries-global-peace-index-2017-6?IR=T" target="_blank">safest countries</a> in the world.
“I think it’s an amazing country, and that’s why so many people want to move here,” he said.
According to McCrindle, the lessons to be learned from this rapid growth in Australia’s<a href="http://mccrindle.com.au/resources/Australia-Population-Map-Generational-Profile_Infographic_McCrindle.pdf" target="_blank"> </a>population is that urban planners and governments alike need to keep a close eye on population forecasts and plan early for growth.
“And when in doubt,” McCrindle adds, “assume the higher growth forecasts not the lower ones. I’m yet to see an Australian population forecast that needs adjusting down.”  
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Australia’s population growth 30+ years ahead of schedule

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SPONSORED POST
Ironfish provides VIP property opportunities with pre-negotiated deals on apartments, townhouses and house &amp; land packages across Australia.
We are highly selective of the properties we introduce to our investors and every Ironfish approved property has been through a rigorous due diligence process.
VIP and Pre-Public Opportunities Ironfish approved properties are carefully selected, extensively researched and pre-negotiated. As one of Australia’s largest investor networks, Ironfish investors receive preferential access to many of Australia’s premium properties before public release.
Detailed Research Ironfish searches nationally for premium investment opportunities in the most dynamic locations, with strong growth potential. Our comprehensive selection process includes specific selection formulas for houses, apartments and townhouses.
Quality Properties Investors don’t have to waste time sifting through inferior investment opportunities: Ironfish rejects the majority of properties it analyses. Astute investors know many of the best new properties are offered to the general public only after other VIP purchasers. We work exclusively with leading developers with a strong track record of delivering quality properties in great locations.
Turnkey Investments Ironfish coordinates everything required for a property’s long-term success and ease of management so that properties are turnkey and as hassle-free as possible.
Which property selection process is best for you? Our approach differs significantly to the average investor strategy. We recommend investors accumulate a portfolio of different types of property that includes a mix of convenience-focused properties (apartments) and land-focused properties  (houses and townhouses).
At Ironfish, two of our overall strategies include: “infill” which generally refers to filling a little gap within an established suburb and “urban renewal” areas. Consider suburbs like Rhodes or Victoria Park in Sydney: if you compare these suburbs today to 15 years ago, you can see the dramatic changes that have taken place.
Beyond location, it’s also about selecting the right development. Major factors we consider include transport, convenience for tenants and future owners, employment and lifestyle factors.
After that it comes down to the quality of the development; we want to make sure that the property appeals to a high calibre tenant and has strong future owner occupier appeal.  I.e. who is going to pay a lot more money for this property in the future? And this has to do with who is the developer, what’s their experience and a lot of what we call – “off-market intel” – we’ve been in the market a long time, we’re looking for opportunities that other people don’t have.
 
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How do Ironfish select properties to invest in

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It is quite sad to see what gets promoted as 'investment' advice in the property space these days.
This was again brought to my attention a few weeks' back when a new inner Brisbane apartment project, under the 'investment' tab on their shiny new website, wrote that apartment values in the area in question had risen by over 10% per annum since 2000 and weekly rents had lifted by over 150% over the same time frame.
It also claimed that the local population is projected to increase almost fourfold over the next 25 years.
The price and rent values used were medians and any increase in population will involve much more new housing supply.
Medians are muddied by new developments, which artificially lift values, especially when used on a small- scale, suburban basis. And there have been a lot of new developments in this area over the past 15 years.
When you look at actual apartment resales, you find a 4.5% annual gross capital average gain over the last ten years in the area (we survey 25 select apartment projects in each major Queensland suburb in order to understand what's going on) and over the past four years there has been little to no resale apartment price growth in the suburb in question.
In addition, the vacancy rate has more than doubled – up from 2% to 4% over the past two years &amp; one-bedroom rents are even starting to fall.
Back in 2000, renters in this area were paying, on average, less than 20% of their income on rent. Local tenants, based on the rents promoted by this new project, would have to give up between 35% &amp; 40% of their income to live there.
In addition, local home values are now close to ten times earnings compared to 3 to 4 times in 2000. Keep in mind that interest rates have fallen from close to double figures to record lows since 2000, and up until the last couple of years, wages were growing by over 4% per annum.
Today, most local jobs are part-time. And a record number of new apartments are proposed in the area; the subject site is surrounded by other development opportunities &amp; population growth/migration are lower than historical averages.
In short, the next 10 to 15 years are very likely to be different from the past decade or two. No doubt there is a movement towards inner city living – heck, I was one of the first (in 1988) to outline why such a trend was imminent – but the cranes on the skyline suggest a potential apartment oversupply. Hopefully, it won't last that long.
But this isn't what gets my goat; it's that too few in the development/selling space really seem to give a hoot about the information used to spruik a new property.
I think buyers should challenge the information supplied. "<a href="/expert-insights/what-is-caveat-emptor-and-how-it-affects-you">Caveat emptor,</a>" many will say; while others will suggest that buyers do their own research and due diligence. I agree with both statements, but where to start?
Here are seven things that a property buyer should do or know when looking to purchase an investment property.
<ol>
<li>Question the time period being used.  Best to look at the last cycle – i.e. seven years, and the last year too.  Try to understand where the local market is in the property cycle.</li>
<li>Ask for resale evidence – the same property, without major improvements, selling over time. Not median prices. Median or middle values work as broad indicators and only when used across big areas, like a city or municipality.</li>
<li>Ask who is buying, the proportion of investors versus owner residents, and where the buyers are coming from.</li>
<li>Request rental evidence, and from at least two independent sources. Ring the sources up and ask them about what they wrote. Ask who will manage the property and the intentions regarding tenant tenure – long or short-term stays.</li>
<li>Quiz the developer, selling agency &amp; local council about the immediate development plans around the subject development. Will the view be blocked out? Overshadowing? Little space between buildings? More competition?</li>
<li>Ask for a 'current market assessment' or 'spot' valuation. Valuers often lowball; they can get things wrong, but to their defence, they carry a lot of professional risk and don't get paid enough. That being said, don't pay more than 5% above the valuation price, unless you believe the area has some real upside (for example, a new hospital being build nearby or major university about to open in the area).</li>
<li>Make sure your property has the potential to be bought or rented by three out of six key housing demographic segments.</li>
</ol>
Better still, I think what is needed is a standard set of rules – a formula that is used to measure all passive residential property performance, regardless of location or property type.
This would need to include the same time frame; same resale equation; same base of measurement – i.e. rate per square metre; same calculation of gross rental yields based on the local vacancy factor and a regular and independent audit of the figures.
Now that would make property investment much easier.
 
Visit Michael's <a href="https://matusik.com.au/" target="_blank">website</a>, read his <a href="https://matusik.com.au/missive/" target="_blank">blog</a>, follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank">Facebook</a> and <a href="https://twitter.com/michaelmatusik" target="_blank">Twitter</a>, or connect via <a href="https://www.linkedin.com/in/michaelmatusik" target="_blank">LinkedIn</a>.
 
 
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michaelmatusik-49YzLvdmNv

Seven ways to improve your investment analysis

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Investors seeking maximum rental income and capital growth must invest in property that is high in demand and is also limited in supply. 
What are some important demand drivers to keep in mind?
Essential demand factors to consider when assessing a property for investment are demographic and social changes, because these influence where people want to live and what kind of property they want to live in. 
An example of social change is the lifestyle preferences of today’s Australians. We tend to see ourselves as more sophisticated today than we did a few decades ago. We are more focused on lifestyle and, as such, residing in fashionable locations is becoming more desirable. 
Investors may benefit from capitalising on these preferences by investing in property near café strips, close to rivers, beaches or harbours, and in inner city locations rather than rural locations. 
Another key factor responsible for driving demand is demographic trends. For example, many baby boomers hold the view that the prosperity they have worked hard for is to be spent on lifestyle. Many are trading their large suburban homes for smaller lifestyle-oriented properties located close to the ocean or near café strips. 
Younger generations, particularly those in their 20s and 30s, are also attracted to lifestyle. It is common for these generations to delay marriage or starting a family to allow themselves to achieve career goals. Single family households are also on the rise.  
These demographic phenomena point to smaller, lifestyle-oriented dwellings close to good amenities, transport, schools and workplace being in higher demand in the coming years.
When you are considering the many factors that drive demand, remember to look for properties that appeal to both owner-occupiers and tenants. 
After all, many of the features of a property that are valued by owner-occupiers are also sought by tenants. 
For example, bedroom size, a usable kitchen, storage, and car parking are just as highly valued by today’s tenants who will pay good rents for these features.
If you would like to learn more about professional research strategies, <a href="https://wvw.momentumwealth.com.au/ResearchEbook?utm_source=Property+Observer&amp;utm_medium=Ebook&amp;utm_campaign=Ebooks" target="_blank">check out our new ebook ”How to find investment-grade properties using professional research principles”.</a> 
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jonathanchancellor-7SQnKwU6yx

Picking a winner – property research strategies 

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

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

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