&nbsp;

A local Australian has spent a Lower North Shore record $15.1 million at <a href="https://www.apartments.com.au/new-apartments/elevate-hume-place-crows-nest-25-hume-street-crows-nest-nsw-2065">Elevate Hume Place</a>, the new TOD above the recently opened Crows Nest Metro Station.

The buyer amalgamated a penthouse and sub-penthouse to create the triplex apartment that will have five bedrooms, five bathrooms, a private rooftop pool, expansive terrace, and panoramic views of Sydney Harbour and skyline. The building is being created by burgeoning developer Third.i, alongside joint venture partner Phoenix Property Investors.

The buyer was drawn to Elevate’s unrivalled connectivity, situated directly above the&nbsp;<a href="https://www.apartments.com.au/developments/crows-nest-nsw-2065">Crows Nest</a> Metro Station, and the vibrant lifestyle precinct that surrounds it. The Metro connects to the CBD in just seven minutes, and Chatswood in four.

[smartcode_project:default project_id=142550 project_image_fid=309367]

Designed by internationally acclaimed architects <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, Elevate draws inspiration from the ancient blue gum forests native to the area. The building is a Net Zero development, created in consultation with Indigenous communities and exceeding sustainability benchmarks. Interiors feature chevron-engineered timber flooring, natural stone benchtops, and premium Sub-Zero Wolf appliances, delivering timeless elegance and next-level comfort.

The exchange of the $15.1 million apartment, follows a recent $5 million sale, and over $30 million currently in expressions of interests. Interest in Elevate’s penthouse stock has surged, reflecting a strong appetite for ultra-luxury residences that combine design excellence with unmatched connectivity.

[smartcode_project:default project_id=142550 project_image_fid=309369]

“We’re seeing a significant uptick in interest from local and international buyers who are prioritising connectivity, sustainability, and lifestyle,” said Callum Billinghurst, Head of Sales at Third.i Group.&nbsp;

“These recent sales are a testament to the vision behind Elevate. It’s not just about luxury finishes or panoramic views, it’s about creating homes that are deeply connected to the city and the community. Buyers are responding to that. They want to live somewhere that offers more than just a postcode, they want culture, convenience, and long-term value. Elevate delivers all of that, and more.”

[smartcode_project:default project_id=142550 project_image_fid=297878]

As part of the Hume Place precinct, Elevate is transforming Crows Nest into Sydney’s most dynamic urban village. Elevate’s unique position directly above the metro, combined with its curated amenity offering, has made it a magnet for buyers seeking a future-proof investment and a vibrant urban lifestyle.

The next release at Elevate is expected later this year.

[smartcode_project_cta:default project_id=142550]

“We’re seeing a significant uptick in interest from local and international buyers who are prioritising connectivity, sustainability, and lifestyle,” said Callum Billinghurst, Head of Sales at Third.i Group


Joel Robinson

Third.i & PPI set Lower North Shore apartment record with $15.1m sale at Elevate Hume Place penthouse amalgamation

Sydney developer Deicorp is set to officially open its <a href="https://www.apartments.com.au/new-apartments/hills-showground-village-castle-hill-2-mandala-parade-castle-hill-nsw-2154">Showground Village</a> precinct in Castle Hill.

NSW Premier Chris Minns will attend the opening on Sunday August 31, alongside&nbsp;Minister for Planning and Public Spaces Paul Scully, The Hills Shire Council Mayor Dr Michelle Byrne, Landcom CEO Alex Wendler, and Deicorp Founder Fouad Deiri.

Located just moments from Hills Showground Metro Station, the centre spans 9,500 sqm across four levels and features 26 specialty retailers as well as a 1,400 sqm public plaza, creating a new community meeting point for shopping, dining, fitness, and everyday convenience.&nbsp;

Showground Village forms part of the Hills Showground Station Precinct, an urban renewal initiative led by Landcom and Sydney Metro that will provide for around 2,300 new jobs over the next 20 years and around 9,000 new homes.&nbsp;

Deicorp was recently approved for another new development next door to Showground Village.

The new five residential buildings in the East Showgrounds Precinct, will see another 873 dwellings delivered, as well as&nbsp;3,500 sqm of open public space in the form of landscaped courtyards, a public park and communal outdoor recreational space including a playground, barbeque area, and outdoor seating.

“This approval will allow us to start construction on a range of beautifully designed, conveniently located apartments and create another vibrant, walkable and well-connected community,” said&nbsp;<a href="https://www.apartments.com.au/developers/deicorp" target="">Deicorp</a>&nbsp;Founder Fouad Deiri.

“These new homes will provide their residents with a seamless connection to jobs and services along Metro North West, and the new&nbsp;<a href="https://www.apartments.com.au/new-apartments/hills-showground-village-castle-hill-2-mandala-parade-castle-hill" target="">Hills Showground Village</a>&nbsp;retail precinct currently under construction."

Deicorp has several thousand apartments in planning and under construction across Sydney, from Zetland and Five Dock to Crows Nest and Macquarie Park.

[smartcode_project_cta:default project_id=133881]

Deicorp, NSW Premier officially open Showground Village, new retail and hospitality hub in Castle Hill

ASX-listed developer Cedar Woods is progressing its plans for its Southbank arts precinct site.&nbsp;

The developer has filed plans, which are now with the&nbsp;Department of Transport and Planning, for a new 20-level tower at&nbsp;<a href="https://www.apartments.com.au/new-apartments/141-151-sturt-street-southbank-vic-3006">141–151 Sturt Street</a>, a 2,718 sqm block opposite the Habitat Filter sculpture.

The proposal seeks to demolish the two-level&nbsp;commercial building, including a small supermarket and medical tenancies, and create a new building with 180 apartments and a focus on an&nbsp;active public realm and arts integration.

&nbsp;

<img alt="Southbank site" data-entity-type="file" data-entity-uuid="76a72db6-91ef-43ae-827d-a9cfa72893d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Site.png?VersionId=DZgtB4K6BswVh0QtCs3iLjXaLp0CbcEb" />

&nbsp;

There will be a full mix of apartment configurations, including 28 studio apartments, 16 one-bedroom, 104 two-bedroom, and 32 three-bedroom units.

Retail, creative arts, and residential amenity functions are integrated across the lower levels. A food and drink tenancy is planned to front Dodds Street, while a retail tenancy fronting Sturt Street will be accessed via an elevated walkway. The first floor includes a substantial 734 sqm creative arts space, envisioned to support Melbourne’s growing cultural and digital industries.

Architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has put together the plans. In their&nbsp;Urban Design Report they highlighted the project’s ambition to embed itself within Southbank’s evolving cultural fabric.

A central feature of the design is a through-block link connecting Sturt and Dodds Streets, landscaped with native plantings and embedded with universal access ramps.

“The ramp has been thoughtfully integrated as the primary access point, ensuring universal accessibility for all users,” the report noted, with the link offering “a direct response to the urban planning scheme of creating more green spaces within our communities”.

<img alt="Southbank podium" data-entity-type="file" data-entity-uuid="4d24b1b2-d69c-4a11-a11d-ec6df432221c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium.png?VersionId=geWoJyZDmPSLODZ_.PNJ0LvpOmyyCdpo" />

The building’s podium form responds to the mandatory height limits along Dodds Street and maintains a fine-grain interface to adjoining developments. Above the podium, the tower is articulated with recessed balconies and a focus on views toward the CBD and surrounding arts institutions. A communal rooftop recreation deck and indoor lounge are positioned on level four, adjoining seven apartments and providing over 900 sqm of resident amenity space.

Vehicle access and loading will be provided via Dodds Street, with 155 resident car spaces located across two basement levels and the first three above-ground floors. Bicycle storage is more generous, with 226 spaces distributed across resident, staff and visitor needs.

Rothelowman describes the architecture as “humanist,” with ground-level interfaces designed to encourage social interaction and provide a dignified entry for both residents and passers-by. “All street interfaces are crafted to invite and nurture human connections,” the design report states. “The façade transitions to a human scale, providing an approachable and engaging streetscape”.

Cedar Woods, while well-known for its large communities it develops outside of Australia's capital cities, they have recently developed in Melbourne's inner-ring before. They are approaching completion at <a href="https://www.apartments.com.au/new-townhouses/88-leveson-north-melbourne-88-leveson-street-north-melbourne-vic-3051">88 Leveson</a>, just 15 townhouses in the heart of North Melbourne.

Cedar Woods progresses with new apartment plans in Southbank arts precinct

Brisbane developers Core Property Partners and Vector Property Australia has teamed up for Brisbane's newest apartment development.

The duo identified <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as their preferred suburb, on the fringe of the Gabba Precinct, where they've just revealed BANKSII, 72 apartments opposite Raymond Park.

[smartcode_project:default project_id=136432 project_image_fid=5481]

The one-, two-, and three-bedroom apartments will sit in a glass-wrapped building that will also feature a rooftop with an&nbsp;infinity-edge pool, a BBQ area and alfresco dining spaces, sun lounges, and a sauna, as well as a resident-only gym and a ground-floor cafe.

Rhett Williams, Director of Vector Property Australia, said the project will lift the quality of the East Brisbane community and set a new benchmark.

"In Brisbane’s current property landscape, <a href="https://www.apartments.com.au/new-apartments/banksii-east-brisbane-169-wellington-road-east-brisbane-qld-4169">BANKSII</a> stands out through its emphasis on lifestyle-oriented living, connectivity and sophisticated design," Williams says.

[smartcode_project:default project_id=136432 project_image_fid=5479]

The 10-level building has been designed by MAS Architecture. Their designs were inspired by the native Banksia flower, with the architecture and interiors reflecting the organic symmetry of its namesake flora. MAS has interpreted this throughout the building’s curved form, façade detailing and interior palette.&nbsp;

The building’s flowing geometry and natural tones are complemented by large balconies and floor-to-ceiling glazing, maximising cross-breezes, daylight and views over the city, parklands and river.

“Having a strong narrative for a building helps us architecturally,” MAS noted. "We can choose colours that come off that species of flowers. The trunk and the trees and the flower elements all are now visible in our joinery on the inside and in our architectural finishes on the outside."

[smartcode_project:default project_id=136432 project_image_fid=5485]

Apartments will feature timber floors, soft porcelain tiles, brushed bronze fittings, and stone benchtops with warm veining.&nbsp;

Kitchens feature premium SMEG appliances and generous storage, while bathrooms have been designed as calming retreats with curved cabinetry and twin sinks in the master ensuites.

The building will feature a suite of rooftop and wellness amenities. Residents will have access to an infinity-edge pool, BBQ and alfresco dining areas, sun lounges and a rooftop sauna.&nbsp;

A residents-only gym will be located on the podium level, while a ground-floor café and landscaped laneway will further activate the site and improve neighbourhood connectivity.

[smartcode_project:default project_id=136432 project_image_fid=5488]

BANKSII will rise from a prime Wellington Road site, with the building oriented to overlook the adjacent Raymond Park and take in extensive city views. It is also on the doorstep of key&nbsp;lifestyle infrastructure, including the future Kangaroo Point Green Bridge, The Gabba stadium, and the planned Brisbane Live arena.&nbsp;

Public transport options, including ferry, bus and rail - including the future Cross River Rail Woolloongabba station - are all nearby, supporting a car-optional lifestyle just minutes from the CBD.

Williams said the team spent over a year searching for the ideal site before securing this location.

"We were attracted to <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as it is a vibrant and growing community that offers a perfect balance of urban convenience and natural beauty with the parklands and river on our doorstep.”

The project is part of the broader Woolloongabba Games precinct, which is undergoing significant investment in the lead-up to the 2032 Brisbane Olympics. This urban renewal, coupled with infrastructure upgrades, is expected to enhance long-term liveability and capital growth in the area.

Given the wide max of configurations, BANKSII is expected to suit everyone from first home buyers and investors to families and downsizers.

[smartcode_project_cta:default project_id=136432]

BANKSII sales launch in booming East Brisbane apartment market

The Minns Labor Government will deliver Sydney’s first new heavy rail station in more than a decade – enabling up to 10,000 new homes by rezoning land around Woollahra and Edgecliff stations, right next to the CBD, to tackle the housing crisis and rebalance growth across the city.

Recent reports by the NSW Productivity Commission have warned that Sydney is losing twice as many young people as it is gaining, while also finding that Woollahra is the most feasible Local Government Area (LGA) in New South Wales to build new housing.

Despite this, housing approvals in Woollahra consistently lag well behind other LGAs, and the population has declined by 11 per cent over the past 50 years while Greater Sydney as a whole has grown by 74 per cent.

The new station that will be an eight-minute trip from Sydney CBD, will be located on the Eastern Suburbs train line in Woollahra, where a station build was started in the 1970s but never completed.

To enable the delivery of new homes the NSW Government will lead a rezoning of Woollahra and Edgecliff stations similar to other state led rezonings to allow additional homes to be built around the stations.

Affordable housing will also make up a proportion of development on the site with the final amount of affordable housing required, to be determined as part of the rezoning process.

The area surrounding the new station is within walking distance of major green and recreational space including Cooper, Trumper, Rushcutters Bay and Centennial Parks.

The Eastern Suburbs train line between Bondi Junction and Sydney CBD also has the lowest passenger usage rates during the AM peak of any line on the Sydney network, with only 43 per cent of operating capacity during the AM peak currently being utilised by passengers.

Sydney Water and Infrastructure NSW have confirmed there is capacity in the water and wastewater systems to accommodate the proposed 10,000 dwellings without major upgrades.

The rezoning is expected to take around two years and will further support the Government’s housing targets that rebalance the delivery of new homes around existing infrastructure.

&nbsp;

&nbsp;

Next stop Woollahra train station - delivering up to 10,000 new homes in the heart of Sydney

Margaret Lomas

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Hi Margaret,
I am currently educating myself on property investing before buying my first investment property.
I am currently reading your book “Investing in the right property now!” in the third chapter you mention looking for an area which has low housing starts. My question is how to quantify “low”, I realise there is probably  no magic number but should I be looking for a region where housing start do not exceed population growth or should I simply assess the areas vacancy rates as an indicator of whether the new developments are creating an over supply.
As an example, one area which I am considering an investment has a population of ~50,000, an annual population growth of 1 percent and housing starts are as follows 2015-‘16=447; ‘14-‘15=340; ‘13-‘14=243; ‘12-‘13=227
Of course I am considering many other factors when analysing an area as mentioned in your books but this is just the one I am having troubles with at this point in time
Thank you kindly,
Sam
 
Hi Sam, 
Your question is a good one and it’s important to consider a range of factors when choosing an area where you would like to invest in property.
I would like to point out that, as mentioned in the book, you have to ensure that you don’t get caught up in just one statistic or factor, as that factor alone could be painting a different picture than the one you want to eventuate!
Let me explain.  There are many growth drivers, and they all work as only a small part of an overall puzzle, somewhat like a jigsaw puzzle. With too many pieces missing, the puzzle just does not work.  The more pieces you can fit into that puzzle, the better the picture becomes. 
Where property is concerned, the pieces are the growth drivers, but taken alone a single piece is not enough, or may not provide the right picture. Take the ‘housing starts’ you refer to. The idea behind ensuring that there is not too much development going on is to ensure that the area is not oversupplied with property.  Since the only thing which ultimately drives growth is demand, an oversupply of property will dilute that demand and lead to a sustained period of low, or no growth.
Now,  you may find an area with 50,000 population and low housing starts, but those low housing starts figures could be because no one is moving there, or there is little employment or anything else happening in the area.  And so the low housing start factor must be combined with a population growing faster than inflation, diversified employment, no new land for future development and a number of other factors for it to be a pointer to future property price growth.
There is no figure or calculation, but if the population is growing by, say, 1 percent per annum and housing starts are only growing by 0.5% per annum, and other drivers also exist, then it makes sense that a future increased demand for housing may ensue.
Always make sure that you examine all of the factors – it is the trend of those factors and their relationship to each other which becomes important, rather than the number itself.
Have a property question?  <a href="mailto:news@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Low housing start insights for investors: Ask Margaret

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Hi Margaret,
I'm currently looking to get an investment property in Broken Hill for $69000 which is currently tenanted and is rented out for $180 a week.
 I want your opinion on whether or not it's a good investment as the rent from it is more then double the repayments. 
And it got tenanted within about three weeks of being advertised for rent.
Thanks,
Marcus
 
Hi Marcus,
It can be very tempting to invest in a property whereby the rent more than covers the cost of the mortgage on it. Cash flow is a very important aspect of property investing, as when a property can cover its own expenses and loan interest, then you only have to worry about getting a tenant in.
However, I urge you to think about an investment such as this one over the long term, and understand that capital growth is equally important in every investor’s strategy.
Over the past 5 years, the median value of Broken Hill has decreased by an annual compounding rate of -0.7%. Over the past 10 years it has had an average annual growth of -2.6%
Let’s imagine the next 10 years brings the same result. Your $69,000, after 10 years, would be worth $56,000, having lost for you $13,000 in that time. Sure, you haven't had to put in any money along the way, but if you have borrowed to buy this property, you are in the red by $13,000.  Even if, during that time, you paid of a chunk off the mortgage, the overall outcome has been a negative one, and not the kind of result we would like to see in a sound strategy.
In addition to being able to find a property which has a good enough rental yield to be able to cover its own expenses, the area must have growth drivers. Towns like Broken Hill have a notoriously bad track record for growth, due to itinerant population, lack of infrastructure and lack of population growth.  
When you become a property investor, price should not be the driving factor. You must also understand that growth has no relationship to the price you pay for a property. You would be far better to pay, say, $350,000 in an area that has all of the growth drivers, and get only a 5% return, than you would spend less in an area with a 10% rental return but a negative growth figure. Over time growth compounds so that, by the time you get to retirement, the property is worth far more than the bank loan on it, and the difference belongs to you. Do this often enough and you build a great net worth.
The final point to make is that, when a property loses value, your ability to leverage is also lost. Buying properties which grow means that you can, in the future, borrow against that growth to add more properties to your portfolio. When a property loses value, it’s harder to do this unless you are paying significantly more than the loss off the mortgage. If you cannot leverage into more property, then you cannot build a larger portfolio, and it’s really only through building a portfolio, rather than owning one or two properties, that you really start to see the value in property investing.
Stick to properties in areas with significant infrastructure development, a growing population and lots of families, and you will do far better with your property investing.  
Kind regards,
Margaret
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Ask Margaret: Should I invest in a tenanted property?

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It's Brisbane, but not its apartments, according to Margaret Lomas when asked which capital city should you invest in?
She suggested Brisbane rather than any other capital city when asked by <a href="http://www.switzer.com.au/the-experts/margaret-lomas/which-capital-city-is-the-best-to-invest-in-right-now/%20" target="_blank">Peter Switzer.</a>
First she ruled out the other capital cities, Melbourne and Sydney not because "the 'boom' had gone on too long" or "that the 'cycle' told us the end was nigh" but rather because the median price has reached a point where it is well above what the average income earner can afford. 
Demand fell away as prices reached this new peak, reducing the potential buyer pool and for these markets its now become a "waiting game" for wages to "catch up".
Margaret then nixed Hobart and Perth.
Hobart because although it has been performing well, its small population and low population growth usually means it has a year or two of growth then much longer stagnation periods.
Perth is a no because even though it is likely at the bottom of it's current cycle, that doesn't mean it's going to start rising any time soon, and if it does, it won't necessarily be quick.
She says that those living in these markets shouldn't necessarily avoid investing just because they don't know the area they are investing in.
She describes this as a fallacy, a mistaken belief.
"This is because what you know about your area relates to lifestyle, not economics."
Margaret correctly states economics is king when it comes to investing.
She says, "my money’s on Brisbane, and it’s all pure economics."
This is because Brisbane is hitting several key points.
Firstly, the average house in Brisbane is still well below what the average income earner can afford.
She claims, "even without wages growth, interest rates could go up, and property prices could increase, and the average wage earner could still afford to buy property there." 
Secondly, changes to the age profile of the population in Brisbane.
Over the next 10 years it is expected to see those aged 20 to 34 move on to the next stage in life and look at buying a home of their own, according to Angie Zigomanis from BIS.
He said the emerging trend would underpin demand for new housing on Brisbane’s suburban fringe and established housing in the inner-city region.
These people will mostly qualify for the first home owner grant of $15,000 (and stamp duty concessions) which is available on many of the houses on the market, due to the high $750,000 cut off for the grant.
Then Brisbane is also benefiting from infrastructure "tons of it". New University campuses, major medical developments in both north and south suburbs, and main roads, making the commute around all parts of Brisbane easier. There’s also the Queens Wharf Precinct, Brisbane Airport Redevelopment, Brisbane Live Entertainment Arena, Northshore Hamilton and a new International Cruise Terminal, plus quite a few others.
There has been strong jobs growth in Brisbane in both the education and medical sectors, as well as improving employment figures after a few years of poor outcomes.
Strong inward migration is also projected to continue, from not only overseas but interstate migration. 
In addition, over the next 15 years, the population of Brisbane is set to double, In 2015, Brisbane’s population was approximately 2.2 million, and is expected to grow to 4.6 million by 2031.
This means that the city will require 40% more homes than it had in 2006, according to government estimates.
Margaret Lomas concludes by stating "It’s an investor’s dream, just waiting to be grabbed. Just be careful what you buy."
She warns, "apartments in the city are not the best choice, nor are high-end properties where demand is subdued. Think families, millennials and migrants, and find the kind of property that they are most likely to demand."
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Which capital city should you invest in? Margaret Lomas

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Property market analyst Margaret Lomas, founder of Destiny Financial Solutions, has pinpointed five good options for investors.
“People are worried about buying property at the moment and you can’t blame them - the headlines are screaming doom and gloom,” she told <a href="https://www.yourmoney.com.au/real-estate/top-five-suburbs-for-property-investors-in-2019/" target="_blank">Your Money Live.</a>
“But even among that, there is some good news around property… and there are definitely places you should be buying.”
With those in mind, Lomas shared her top five suburb picks for 2019.
Whittington, VIC
<img src="https://www.urban.com.au/images/2019/1/11/Lomas%201.JPG" alt="">
This Victorian suburb located around 4km from Geelong’s town centre ticks all the right boxes, according to Lomas.
“The thing I like here is that it’s cheaper compared to East Geelong, which it borders,” she said.
Despite being mere steps apart, the median house price in East Geelong is $651,000 compared to Whittington’s $360,000, leaving plenty of potential for growth.
Lomas says the area is undergoing gentrification as state housing moves out to be replaced by owner-occupiers and family units.
And despite the property downturn, Whittington has recorded growth of 5.95 per cent in the last year.
<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/2019/1/10/whittington%201.jpg" alt="">
An example was a three bedroom house at Whittington sold for 350,000 in Novermber 2018 (above).
Set on a 724sqm allotment, the renovated home at <a href="https://www.realestate.com.au/sold/property-house-vic-whittington-129480950" target="_blank">4 Alouette Court </a>comes with three bedrooms, kitchen/dining with floating bench space, large living area and separate laundry.
It's located just 10mins from Geelong CBD and within close proximity to several well regarded primary and secondary schools, Newcomb Centro, Aldi, and Bellarine Village Shopping Centres. 
<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/2019/1/10/whittington%202.jpg" alt="">
A current listing is a three bedroom brick house priced between $340,000 to $365,000 (pictured above).
Nestled on a 613sqm block in the heart of Whittington, the house at <a href="https://www.realestate.com.au/property-house-vic-whittington-130111998" target="_blank">6 Proton Court</a> consists of three bedrooms, functional kitchen/meals area, good sized living room and covered entertaining area. 
It's close to Newcomb Shopping Centres and within walking distance to local primary and secondary schools, community centre, public transport and 10 minutes to Geelong CBD.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><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/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
Bibra Lake, WA
<img src="https://www.urban.com.au/images/2019/1/11/Lomas%202.JPG" alt="">
While property values are falling across Perth, a few standout suburbs are bucking the trend, including Bibra Lake.
While homes along the lake have an average price tag of $535,000, one street back from the water brings that figure down to just $390,000.
“It offers a fabulous lifestyle… it’s only about a 10 minute drive from the coast and there’s a freeway going right through Bibra Lake as well as a rail line,” she said.
That makes it about a 20 minute commute into Perth’s CBD.
<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/2019/1/10/bibra%20lake%201.jpg" alt="">
A Bibra Lake four bedroom house in a quite street in Bibra Lake has been sold for $595,000 (pictured above).
Situated at <a href="https://www.realestate.com.au/sold/property-house-wa-bibra+lake-129249282" target="_blank">11 Lachlan Way</a>, the family home comes with four bedrooms, renovated kitchen and laundry, games room, solid timber fllors throughout living areas, and oversized double lock up driving through garage. 
It's only 500m from Bibra Lake and 400m from Bibra Lake Primary School. 
<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/2019/1/10/bibra%20lake%202.jpg" alt="">
A current offering is a four bedroom house located in the heart of Bibra Lake priced over $500,000 (pictured above).
Situated at <a href="https://www.realestate.com.au/property-house-wa-bibra+lake-130120434" target="_blank">28 Marchant Drive</a>, it comes with four bedrooms, open plan dining/living, modern kitchen, and separate front lounge/games room.
The outside features extra long carport with automatic door, powered workshop or studio, below-ground pool and covered alfresco.
Petrie, QLD
<img src="https://www.urban.com.au/images/2019/1/11/Lomas%203.JPG" alt="">
One of the most positive features of the area is the soon to be opened USC Moreton Bay university campus, Australia’s newest university.
The project is expected to attract around $950 million into the local economy, plus 6,000 extra jobs, by 2036.
While the median price for a house is around $440,000, 2-3 bedroom units cost upward of just $300,000, perfect for the upcoming influx of students, said Lomas.
<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/2019/1/10/pietrie%201.jpg" alt="">
A recent sale was a four bedroom house at <a href="https://www.realestate.com.au/sold/property-house-qld-petrie-129680110" target="_blank">3 St Marcel Ct </a>traded for $425,500 (pictured above).
The family home features open plan living combined with dining, three bedrooms plus study or 4th bedroom, renovated kitchen, and large covered outdoor area. 
It is located within close proximity to the central amenities in Petrie such as schools, shops, train and bus transport, and bush walking at the Mungarra reserve.
<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/2019/1/10/petrie%202.jpg" alt="">
A two bedroom apartment situated on the edge of Sweeney Reserve has been listed for $325,000 (pictured above).
Located at <a href="https://www.realestate.com.au/property-unit-qld-petrie-129611322" target="_blank">61/9 Houghton Street, Petrie</a>, the apartment features open plan living, two bedrooms, two bathrooms, and kitchen with stone bench tops. 
It's only 400m to shops and supermarkets, 900m to the Petrie station and just over 900m to the new Petrie University Complex. 
Modbury, SA
<img src="https://www.urban.com.au/images/2019/1/11/Lomas%204.JPG" alt="">
You may have heard about the Australian Space Agency, soon to be based and further developed in South Australia.
Because the project is expected to attract mid-to-high income earners to Adelaide, Lomas predicts they’ll be looking at the city’s up and coming areas, such as Modbury.
Situated around 20 minutes from Adelaide’s city centre, the suburb is currently undergoing beautification, with new walkways and cycleways being added.
<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/2019/1/10/modbury.jpg" alt="">
A recent sale at Modbury was a three bedroom house for $375,000 (pictured above).
Set on a 312sqm allotment, the house at<a href="https://www.realestate.com.au/sold/property-house-sa-modbury-129680534" target="_blank"> 14 Trellios Street </a>comprises of master bedroom, two other bedrooms, open plan living and dining room, separate laundry and garden shed. 
It's located within walking distance to Clovercrest Village and only 13km to the Adelaide CBD.
<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/2019/1/10/modbury%202.jpg" alt="">
A current offering at Modbury is a two bedroom unit priced between $260,000 to $280,000 (pictured above).
The unit at <a href="https://www.realestate.com.au/property-unit-sa-modbury-130094362https://www.realestate.com.au/property-unit-sa-modbury-130094362" target="_blank">39/129 Smart Road </a>consists of a large lounge, kitchen and meals area, separate laundry and two bedrooms. 
It's just a few minutes walk from the Modbury hospital and Medical Centre, Tea Tree Plaza Shopping Centre and the O'Bahn bus exchange for a bus ride into the city.
Port Adelaide, SA
<img src="https://www.urban.com.au/images/2019/1/11/Lomas%205.JPG" alt="">
In addition to the space agency, Adelaide is also getting a new submarine base and shipyard which is expected to bring in another 4,000 jobs to the area.
Sitting adjacent to the base and 20 minutes from Adelaide’s CBD, Port Adelaide’s median house price is just $350,000, despite nearby suburbs averaging above $600,000,
“When you add to that, that it is on the peninsula and right by the coast, I think it’s a no-brainer,” she says.
<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/2019/1/10/port%20adelaide.jpg" alt="">
An example was a three bedroom 1880s old worker's cottage at Port Adelaide which was sold for $381,000 (pictured above).
Situated at<a href="https://www.realestate.com.au/sold/property-house-sa-port+adelaide-128981702" target="_blank"> 6 Aberdeen Street</a>, it comes with three bedrooms, two large living areas, study, eat-in kitchen and secure carport parking.
<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/2019/1/10/port%20adelaide%202.jpg" alt="">
A waterfront three bedroom house at Port Adelaide has been listed for sale with a price guide of $675,000 (pictured above).
Located at<a href="https://www.realestate.com.au/property-house-sa-port+adelaide-127359074" target="_blank"> 26 Knapman Crescent</a>, the harbourside home comes with three large bedrooms, lounge room with views of the harbour, modern kitchen, and large dining room.
It's within easy walking distance to ample shopping, schools and transport.
While markets will always fluctuate, there are a few basic rules  that always hold true when it comes to purchasing property, according to Lomas:
<ul>
<li>Affordable properties will always attract buyers</li>
<li>A bigger plot of land is always the better option</li>
<li>Look for family areas, as families will always fuel growth</li>
<li>Find ‘ripple effect’ suburbs – less expensive suburbs that neighbour high-value areas</li>
</ul>
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Top five suburbs for property investors in 2019: Margaret Lomas

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The question always remains on how to find a property that will deliver yield and growth.
Often a property with a high rental yield for its purchase price has a reason and usually because of the area it’s in.
The area may experience periods of rapid value growth, but just as quickly can decline often too quickly to exit the market resulting in a poorly performing asset.
While it is important for investors to at least have enough yield to cover costs without growth in value there’s little point in continuing to hold onto it.
A low yielding property is just as bad since a situation can arise that results in holding costs become too high or when the investor cannot afford to improve the property.
Therefore it is clear that investors need to be have the skill to pick assets that have a suitable yield now and potential future growth. In addition they also need to know depreciation, understanding deductions and capital work allowances which can all substantially improve net cash flow.
To do that there are a few important points that needs to be pointed out:
Present hotspots are likely to have already achieved their peak period of growth
The common saying that the closer to the city a property is the better the growth is incorrect. Many outer areas have performed exceptionally well and often beat inner-city properties.
Key growth drivers includes a fast-growing population, plenty of infrastructure planning, employment opportunities and a median household income that grows faster than inflation.
Blue-chip areas may have been good investments in the past, but now they are not so good in the present.
Family demographics is also an important part of the driving force as they tend to anchor in one area and simply upgrade when need be This also results in less supply as properties become scarcer however this only happens in areas with highly affordable properties.
Areas to look for include Geebung, Bracken Ridge, Acacia Ridge and Forest Lake as well as Altona Meadows, Sunshine West and Coburg North.
Have a property question?  <a href="mailto:news@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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How to find a property that will deliver yield and growth: Margaret Lomas

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It's no secret that I have a preference for obtaining a positive cash flow (or as close to it) from my property purchases.  I've written a lot about it over the years and have successfully added many such properties to my portfolio.
However, I can't help but notice that, somewhere along the line my message has been taken in a shortened form – leading investors to consider only cash flow when choosing their next property. This, in turn, results in the acquisition of property which might have good rent returns, but is in danger of not growing due to an absence of important growth drivers.
In choosing property for cash flow alone, many investors are inevitably led toward towns with a single industry.  Such towns tend to get a higher than usual rental yield for many reasons, including:
<ul>
<li>They are often well outside of major urban areas, and so the property values are low, creating a higher relative yield. 
</li>
<li>Where the industry in question is experiencing a robust period and demand for its product, extra workers are usually employed.  
</li>
<li>These workers often cannot be sourced from within town and so they are recruited from elsewhere, and move to the area, and as many of these workers are itinerant, at least until it can be confirmed that their continued employment is assured, they do not usually buy.  So, although the industry is doing well, the expanding population are not property buyers, and pressure is not brought to bear on values.  They are, however, renters and this is why rental yields often soar.</li>
</ul>
Property in such areas then becomes an attractive proposition, because, initially, the cash flows look fabulous.  This in turn attracts more investors and property prices do begin to move.  Pretty soon we see an artificial property boom, brought on purely by the existence of the single industry and the resulting hoards of hungry investors seeking, at first, good cash flows, and then the spin-off gain.
And while many experts may say that, where property in concerned 'time in market' is the key, in fact these towns require precise 'market timing' if the strategy is going to work.  You need to get in at the right time (before values move), and you need to exit the investment just before the fall that is often seen in such areas when the single industry falters, or the economy changes.  And if an investment requires precise market timing to pay off, then it also requires the investor to have a higher appetite for risk.
There is no question that, particularly while we are experiencing strong economic times and low interest rates, a property in a single industry town can provide a great return.  However, these properties must be considered to be a higher risk investment. 
As with any investment, the higher the potential return, the higher the risk, and property in single industry towns have more than their fair share of risks.
These include:
<ul>
<li>The lack of diversity of industry means the entire workforce's reliance on a single industry places the security of the whole town at risk, should something adverse happen to that one industry; 
</li>
<li>The prevalence of itinerant workers results in a weak underlying economy. Workers often take their earnings out of town and, if that industry's vibrancy is reduced, respond to economic changes, leave town altogether. This creates high vacancy rates, rapidly reversing the upward climb that property values were enjoying; 
</li>
<li>That same economic weakness means most councils lack the financial resources to provide infrastructure to the community, meaning that the towns are often severely under-resourced; 
</li>
<li>The entire town is highly exposed to 'hidden risk' – the risk that an unforeseen event, government decision or world economic turmoil impacts directly back on the only industry supporting the area.  This is a risk which cannot be mitigated as it most often cannot be foreseen, and in some cases has never actually happened before; 
</li>
<li>Even if that single industry continues on, the lack of diversity in industry usually means that the population grows very slowly – the town can only expand at the rate that the industry expands.  This can mean that, even though cash flow might be good, growth to the underlying asset (the property) is well below par. A sound property strategy requires both cash flow and growth.</li>
</ul>
If an your risk profile is such that you have plenty of capital and loss would not cripple you, or you have ample time available as an income earner within which you could replace lost capital, then the potential for good yields and possible capital gains may well make these risks worth taking.
However, if you are buying in order to create a retirement income, and each purchase must perform well, you may be gambling with what may become one of your only income sources, one which needs to last a significant length of time and will not be easily replaced if you are already close to retirement.  The surety of a house in an area with a growing population, diversity of industry and abundant infrastructure development is more likely to be the appropriate investment.  You may not have quite as much cash flow, but the chances of you having both the capital and a reasonable amount of yield and growth available to use for all of your retirement years are usually greater than these higher risk, single industry town investments.
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Buying in a single-industry town - how to negotiate the risks: Margaret Lomas

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Hi Margaret,
I bought a unit in <a href="/news">Emerald</a>, Queensland and the tenants have done a runner.
Vacancy rates are now high, with minimal chance of getting someone to lease out our two bed unit.
Do you know of any mining or corporate contacts to help, the real estate agents are at a losss and have run out of ideas.
Do you know when some of the anticipated nine mines might start construction stage?
Regards,
Peter
Margaret's answer on the next page. Please click below. 
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Hi Peter,
The biggest issue when buying property in a mining town is, and has always been, getting the timing right.
When you invest in property anywhere, property price growth is always driven by a range of factors:
<ul>
<li>Demand</li>
<li>Availability of land</li>
<li>Growing population</li>
<li>Provision of the services to support that growing population so that people don’t move away</li>
<li>Suitable infrastructure planning and provision</li>
<li>The existence of diverse employment to ensure that, if any one industry suffers, residents can easily retrain and transfer to another without having to leave town.</li>
</ul>
All of these factors rely on one another to create the right kind of economic underlay.  Where any one of the above factors is absent,  it becomes like the missing link which then upsets the entire chain and makes it weak.
Where mining towns are concerned, virtually every one of the factors which drive growth are constantly at risk of being impacted in some way.  For example:
<ul>
<li>Mining towns with fly in, fly out workers tend to have weak underlying economies as the money earned by workers flies out with them – hence they usually have little in the way of significant infrastructure projects</li>
<li>The populations of mining towns tend to be extremely itinerant and this includes those not working in mining jobs – most other jobs, such as those in retail and hospitality, still require mining to be in existence. An itinerant population usually means rentals are good when the main industry is good and not so good when it isn’t. It also means there is big demand from renters but little demand from buyers.</li>
<li>Investor sentiment becomes the biggest driver in a mining town as investors rush in to take advantage of rising prices when mining is lucrative, and rush out when it has a downward trend.  In fact, investor sentiment is probably the most significant driver in any mining town and so it has a far bigger impact than it would on an area where other drivers are in abundance.</li>
</ul>
This all means that timing becomes critical. 
Either you invest in a mining town knowing that it is likely to be very good and very bad, in cycles, and you are prepared to hold through those cycles, or you invest there in an attempt to time the market – you buy in before it takes off, then you sell just prior to the peak to someone else who has been watching the growth and has decided, too late, to buy. 
The former strategy requires you to be able to support negative cash flow when rents are low, which you can probably do by stockpiling that positive cash flow when it’s high. The latter requires you to have either insider knowledge of which projects are coming up and when, or psychic abilities to be able to read the future.
As I possess neither, and I have no industry contacts who can say when those projects will come on line. All I can do is provide some strategies for managing the situation you are now in and a warning for future investments. 
For now:
<ol>
<li>Work out how low you can go in your rent to keep you in the market – how much negative cash flow can you support for now?  Then drop the rent to this level as soon as you can and hopefully attract a tenant from that dwindling pool.  Get an accountant help you to assess the deductions and take those into account. As with an income tax withholding variation, you can claim those deductions weekly and they may help your cash flows.</li>
<li>Seek out some alternative avenues for advertising – possibly find out where the majority of workers come from and look at advertising to them in publications they might read and,</li>
<li>Start offering incentives such as rent free periods, or 12 months for the price of 10 etc.  Incentives work, and although they may cost you a little, a small amount of lost rent is better than no rent.</li>
</ol>
As for the warning, no property investor, except for those with money to lose, should ever buy in a mining town. 
I am not suggesting for one moment that you cannot make money from a mining town as I know you can. 
I am suggesting though, that the risk is significantly higher than investing in an area which possesses all of the drivers. While a mining town has the capacity to make a lot of money for you, it has an equal capacity to lose a lot too. 
This experience is a perfect example of how it is not where the property is that should be your number one consideration, it is matching a property to your personal circumstances that matters most. 
Once you have a sound portfolio of properties which are performing pretty well and receiving a sound return, then it may be time to start looking at these higher risk ventures.
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Margaret Lomas

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