<p>For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.</p>

<p>At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.</p>

<p>It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.</p>

<p>The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.</p>

<p>After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.</p>

<p>In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.</p>

<p>[smartcode_project:default project_id=147685 project_image_fid=359136]</p>

<p><a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.</p>

<p>"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.</p>

<p>"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."</p>

<p>The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.</p>

<p>Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.</p>

<p>The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.</p>

<p>[smartcode_project:default project_id=147685 project_image_fid=359127]</p>

<p>The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.</p>

<p>Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.</p>

<p>"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.</p>

<p>"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."</p>

<p>On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.</p>

<p>Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.</p>

<p>[smartcode_project_cta:default project_id=147685]</p>


Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

<p>For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.</p>

<p>That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.</p>

<p>John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.</p>

<p>"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.</p>

<p>"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."</p>

<p>[smartcode_project:default project_id=1979 project_image_fid=363268]</p>

<p>Equitifund isn't just commenting on Melbourne's property market, it's investing in it.</p>

<p>The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.</p>

<p>The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.</p>

<p>[smartcode_project:default project_id=1979 project_image_fid=363229]</p>

<p>The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.</p>

<p>Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.</p>

<p>Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.</p>

<p>[smartcode_project:default project_id=1979 project_image_fid=363284]</p>

<p>The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.</p>

<p>Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.</p>

<p>"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.</p>

<p>"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."</p>

<p>He said rising construction costs are also changing the way buyers assess completed developments.</p>

<p>"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."</p>

<p>[smartcode_project:default project_id=1979 project_image_fid=363228]</p>

<p>According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.</p>

<p>"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.</p>

<p>"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."</p>

<p>He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.</p>

<p>"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."</p>

<p>[smartcode_project_cta:default project_id=1979]</p>


Why now is the time to buy in Melbourne's premium apartment market

<p>Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.</p>

<p>While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.</p>

<p>A new Colliers report, <em>Brisbane 2032 Olympic and Paralympic Games: Creating Solutions</em>, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.</p>

<p>The broader construction pipeline paints an even clearer picture.</p>

<p>Construction Skills Queensland's <em>Horizon 2032</em> report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.</p>

<p>The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.</p>

<p>[smartcode_project:default project_id=150489 project_image_fid=373834]</p>

<p>Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.</p>

<p>"From 2027 onwards, the market will shift dramatically," Scriven said.</p>

<p>"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."</p>

<p>Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.</p>

<p>"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."</p>

<p>[smartcode_project:default project_id=150713 project_image_fid=373827]</p>

<p>Developers are already positioning themselves ahead of that window.</p>

<p>Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.</p>

<p>Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.</p>

<p>The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.</p>

<p>Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.</p>

<p>"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.</p>

<p>"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."</p>


Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

<p>It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.</p>

<p>&nbsp;</p>

<p>Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.</p>

<p>[smartcode_project:default project_id=151449 project_image_fid=357458]</p>

<p>Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.</p>

<p>"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.</p>

<p>"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.</p>

<p>"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."</p>

<p>[smartcode_project:default project_id=151449 project_image_fid=357463]</p>

<p>Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.</p>

<p>Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.</p>

<p>[smartcode_project:default project_id=151449 project_image_fid=357469]</p>

<p>Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.</p>

<p>"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.</p>

<p>"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."</p>

<p>Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.</p>

<p>[smartcode_project_cta:default project_id=151449]</p>


Sherpa sells out Flourish Oasis in booming Palm Beach

<p>Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.</p>

<p>The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.</p>

<p>[smartcode_project:default project_id=134951 project_image_fid=368645]</p>

<p>Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.</p>

<p>"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.</p>

<p>"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."</p>

<p>[smartcode_project:default project_id=134951 project_image_fid=358802]</p>

<p>La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.</p>

<p>Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.</p>

<p>The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.</p>

<p>Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.</p>

<p>[smartcode_project:default project_id=134951 project_image_fid=364551]</p>

<p><a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.</p>

<p>Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.</p>

<p>"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.</p>

<p>Following completion of the building later this year, buyers will move into their apartments well before Christmas.</p>

<p>[smartcode_project_cta:default project_id=134951]</p>


La Vera closes in on completion as Macquarie Park continues residential transformation

Property Investors

<html><body>
<p class="p1"><span class="s1">For some (inexperienced) property investors, it’s often a burning issue: where is the next property hotspot going to be? It’s also a popular media topic and property spruikers love to claim to know where the next one will be.</span></p>
<p class="p1"><span class="s1">Yet despite the hype around hotspots, they’re actually often irrelevant when it comes to property investment.</span></p>
<p class="p1"><span class="s1">That’s because property investment is a long-term strategy requiring a 10-plus year view, while so-called hotspots are, more often than not, a short-term phenomenon.</span></p>
<p class="p1"><span class="s1">To assess a suburb’s long-term investment potential, it’s crucial to know what factors will affect its value over time. Here are 5 features you can incorporate into your assessment of a suburb’s potential:<span class="Apple-converted-space"> </span></span></p>
<p class="p2"> <strong>- <span style="font-size: 12.16px;">Activity centres</span></strong></p>
<p class="p4"><span class="s1">Look for smaller local centres or larger shopping complexes that feature food and beverage offerings, retail stores and service providers, which can be utilised by local residents. This type of amenity will be valued by owner-occupiers and renters alike, meaning demand for suburbs that feature good activity centres will be higher.<span class="Apple-converted-space"> </span></span></p>
<p class="p2"><strong> - <span style="font-size: 12.16px;">Close to major employment centres</span></strong></p>
<p class="p4"><span class="s1">Given the continued urban sprawl of many Australian capital cities, people want to live closer to the area where they work (such as city CBDs) to reduce their commutes. Suburbs closer to major employment hubs will typically be in higher demand. Furthermore, investing in suburbs on the urban fringe can limit capital growth as there is typically an abundance of land that can be developed, which adds extra housing supply that puts downwards pressure on prices.<span class="Apple-converted-space"> </span></span></p>
<p class="p2"><strong> - <span style="font-size: 12.16px;">Public transport links</span></strong></p>
<p class="p4"><span class="s1">Growing capital cities are facing increasingly congested roads.<span class="Apple-converted-space">  </span>Public transport is therefore an important benefit to any suburb. Being in walking distance to good public transport links such as a train station or bus interchange is a highly sought-after feature.<span class="Apple-converted-space"> </span></span></p>
<p class="p2"><strong> - <span style="font-size: 12.16px;">Parks and other recreational amenities</span></strong></p>
<p class="p4"><span class="s1">Parks, activity centres, playgrounds and other recreational amenities not only make suburbs looks more family friendly, but they also provide locals with some great lifestyle options, making the area more attractive and highly valued.</span></p>
<p class="p2"> <strong>- <span style="font-size: 12.16px;">Schools and child care facilities</span></strong></p>
<p class="p4"><span class="s1">Many families want to live in specific catchment zones that feature high-performing public schools. Our research has uncovered as much as a 12% difference in prices for similar stock on 2 nearby streets, where the higher-valued street was in a catchment zone for a top-performing school whereas the other was not. You can check the performance of public schools on the NAPLAN website.<span class="Apple-converted-space"> </span></span><span style="font-size: 12.16px;"> </span></p>
<p class="p1"><span class="s1">Investors looking to invest in property in the coming years should take a long-term view rather than rely on hot-spotting. By focusing on the fundamentals, such as the above 5 features, you will be better positioned to find an outperforming property.</span></p>
<p class="p1"><span class="s1">For more insight into the do’s and don’ts of property research, download your free copy of our latest ebook: <a href="https://wvw.momentumwealth.com.au/ResearchEbook?utm_source=Property+Observer&amp;utm_medium=Ebook&amp;utm_campaign=Ebooks" target="_blank"><span class="s2">”How to find investment-grade properties using professional research principles”.</span><span class="Apple-converted-space"> </span></a></span></p>
<p class="p2"> </p>
</body></html>

abarclay-WPE22ytcZC

Forget the hotspots – the 5 suburb features for long-term property success

<html><body>
<p><span>The weak Australian dollar is good news for Australian expats!</span></p>
<p><span>They can invest in property cheaper from money earned abroad.</span></p>
<p><span>Australians who bought property in the US during the global financial crisis when housing prices crashed in many parts of the country, including Las Vegas, can reap the benefits now as a stronger US economy and dollar mean rising rental income and strong capital growth. </span></p>
<p><span>The Australian dollar fell to six-year lows in September. It has recovered since then, and was hovering around 0.71 to the US dollar by late December.</span></p>
<p><span>A weak local dollar would only mean those Australians who brought property in US can now find a profitable route to bring their money home: invest in property in Australia.</span></p>
<p><span>According to Greville Pabst, chief executive of property valuers and consultants WBP Property Group, a falling Aussie dollar represents positive news for expatriates, with the improved conversion rate giving them “greater buying power”.</span></p>
<p><span> </span></p>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Expats cashing in on weak Aussie dollar for property investment

<html><body>
<div><strong>EXPERT OBSERVER</strong></div>
<div><strong><span style="text-decoration: underline;"> </span></strong></div>
<div><strong><span style="text-decoration: underline;">Investor credit plumbs lows</span></strong></div>
<div> </div>
<div>The crackdown on investor credit growth has been ruthlessly effective since 2015, the 12-month growth rate falling from 10.8 per cent to the lowest level on record in August 2018, according to the latest Reserve Bank financial aggregates.</div>
<p> </p>
<div class="separator"><a href="https://1.bp.blogspot.com/-w8yO-BOCDk4/W7EvndY7C0I/AAAAAAAAsI4/RZSfkmG55FAyiPY7VMSuMDHult0HfjSSQCLcBGAs/s1600/RBA1.jpg"><img src="https://1.bp.blogspot.com/-w8yO-BOCDk4/W7EvndY7C0I/AAAAAAAAsI4/RZSfkmG55FAyiPY7VMSuMDHult0HfjSSQCLcBGAs/s640/RBA1.jpg" width="640" height="364" data-original-height="800" data-original-width="1405"></a></div>
<p> </p>
<div>With the Royal Commission Interim Report finally and conveniently landing just before the long weekend, the major banks will be relieved to see that there'll be no heavy-handed regulation coming their way, and Treasury quite clearly keen to avoid any further tightening of household credit. </div>
<div> </div>
<div>Since the 10 per cent cap on investor credit growth is now removed there's plenty of headroom for investment lending to pick up from here. </div>
<div> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-vKuBWpIIMPg/W7EyAdYRs8I/AAAAAAAAsJM/UQhUB6tlvXM2NRBL_3iQaAqta7w9xSZMACLcBGAs/s1600/A1.jpg"><img src="https://1.bp.blogspot.com/-vKuBWpIIMPg/W7EyAdYRs8I/AAAAAAAAsJM/UQhUB6tlvXM2NRBL_3iQaAqta7w9xSZMACLcBGAs/s640/A1.jpg" width="640" height="366" data-original-height="800" data-original-width="1392"></a></div>
<div> </div>
<div>There were some bogus claims last week that Westpac is 'calling in' risky investor loans via a mythical letter.<br><br>Perhaps the letter in question was dated April 1, but a thousand posts on the gossip forums and multiple global headlines later, it transpired that one tiny fragment of evidence was missing - a copy of the fabled letter itself - before unsurprisingly Westpac finally got around to stating that no such action had been taken. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Chasing business again</span></strong></div>
<div> </div>
<div>If anything, the major banks will now be looking to attract new business from housing market investors.</div>
<div> </div>
<div>Don't take my word for it, by the way.<br><br>Instead, take Westpac itself as an example since we're on the subject, who won't waste any time in hitting up the investor market now the Interim RC Report has been issued by immediately bringing back its refinance rebate, effective today.</div>
<div> </div>
<div>In fact, as soon as everyone's had a chance to recover from the Grand Final double-header weekend, brokers will kick off this week by swamping customer inboxes with a refinance rebate blitz.</div>
<div> </div>
<div>Westpac will re-introduce a rebate offer of $1,250 for every standalone property loan refinanced. So, for example, a client that refinances 10 properties to Westpac can qualify for $12,500 in rebates, and so on.</div>
<div> </div>
<div>The loans must be <em>de minimis</em> $250,000 to qualify for the deal with the rebates to be deposited into the loan account within a couple of months from settlement, while brokers can seek additional pricing off the packaged rates. </div>
<div> </div>
<div>Furthermore, eligible new investment property or owner-occupier buyers may receive 200,000 to 500,000 Velocity reward points per loan, for loans above $250,000 and $1,000,000 respectively. For some context a $60 tank of fuel at BP costs about 10,000 points, so this is also a non-trivial incentive.</div>
<div> </div>
<div>Doesn't sound much like they're chasing investors away to me, but alas I'll never jag a global headline with such a middling observation. </div>
<div> </div>
<div><em>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></div>
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pwargent-M4siyDbqQY

Banks set to give chase for investors: Pete Wargent

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<div>The Labor Party's Opposition Leader Bill Shorten and Shadow Treasurer Chris Bowen had pledged to limit negative gearing to new properties only from 1 July 2017 in order to save the federal budget a highly questionable $32.1 billion over a decade.<br><br>This always sounded suspect based upon my day-to-day experience in the market given that the overwhelming majority of property investors are only making at worst moderate net rental losses these days.<br><br>Yes, investors have been considerably more active recently due to prevailing low interest rates, but remember the ratio of stock versus flow, while new investors have been generally able to borrow money at around just 4 percent, or somewhere close to it.</div>
<div> </div>
<div>Unfortunately as I expected it transpires that the ALP have botched their numbers, and Labor will accordingly cop a good deal of heat on this point from the Coalition.<br><br><strong><span style="text-decoration: underline;">Net rental losses halved</span></strong>
</div>
<div> </div>
<div>The latest Australian Taxation Office (ATO) Taxation Statistics to 2013-14 show that the potential budget impact of negative gearing to taxpayers has crumbled by well over 50 per cent in only two years (and by considerably more from the peak), and of course there will be more declines to come for at least the next two tax years as well. </div>
<div> </div>
<div>It is no shock to me to discover that net rental deductions have fallen by <strong>more than half</strong> in the two tax years to 2013-14, from $7.9 billion to just $3.7 billion.<br><br>And recall that the cash rate has been cut several times further since 1 July 2013, from 2.75 per to only 2 percent, so there are yet further declines to net rental losses in the post.<br><br>The latest statistics for financial year 2013-14 show that just under 1 million or exactly 60 percent of those claiming net rental losses have a taxable income of less than $80,000 (thereby paying tax at a highest marginal rate of only 32.5 percent or lower), while only 133,307 or 8 percent of those claiming are paying tax at the highest marginal rate.<br><br>It is true to a point that middle aged and slightly older Aussies tend to negatively gear property around their peak earning years. This rings true from my experience and the experiences of my peers - none of us owned rental properties as students, or indeed for some time after that as we paid off student debts and saved initial deposits, but plenty do now we are in our late thirties. </div>
<div> </div>
<div>Given that taxpayers across all taxable income brackets use negative gearing, after tax-effecting net rental losses of only $3.7 billion in financial year 2014 it is clear that as things stand such a move to limit negative gearing to new dwellings prospectively could only save a fraction of the amount claimed from the federal budget.</div>
<p><a href="/images/2016/03/21/NG.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/21/NG.jpg" alt=""></p>
<div> </div>
<div>Remember that Labor is not<strong> </strong>proposing to scrap negative gearing, rather to grandfather existing arrangements and limit negative gearing to new dwellings.<br><br>With a record 776,672 earning a profit for their rental properities, the total cost of negatively geared properties only fell by 12.5 percent to a four year low of $10.9 billion.<br><br>And given that negative gearing losses are carried forward and taxes levied at a future date - or upon eventual sale in event of a capital gain - net rental losses are a timing difference only and the ALP projections are exposed as too optimistic.<br><br><strong><span style="text-decoration: underline;">Further declines in the post </span></strong><br><strong><span style="text-decoration: underline;"><br></span></strong>Realistically, then, the projected $32.1 billion of savings could only feasibly come from cranking up the rate of capital gains tax, itself a crappy tax - an inefficient tax insincerely marketed as a "discount", although in the case of property it is actually levied on top of fairly vicious stamp duties as well as rates/land taxes etc.<br><br>Total capital gains reported by taxpayaers increased by 37 percent to $34.4 billion, largely thanks to fewer loss making transacions as the financial crisis fades into the rear-view mirror. </div>
<div> </div>
<div>It is worth noting in passing that moves to restrict property investor activity and therefore lending would also result in lost levies from stamp duties and reduced company taxes on bank earnings, as well as putting downward pressure on superannuation balances via lower share prices.</div>
<div> </div>
<div>If this sounds harsh on Labor, recall that they were actually in government until 2013, so where were the sweeping policy changes then?<br><br>Ironically, the ALP was in power for a six year stretch when scrapping negative gearing might actually have made a material difference to the budget, but alas that particular ship has now well and truly sailed. </div>
<div> </div>
<div>Futures markets are pricing in a further 25 basis points cut to the cash rate by November 2016, suggesting that the ATO aggeregated statistics for net rental deductions could continue declining for at least another three tax years to come. </div>
<div> </div>
<div>A potent combination of the existing negative gearing rules and low interest rates have encouraged record dwelling investment - and in turn a surge residential construction jobs - and at the same time have done an an sterling job of keeping capital city rents down as new supply comes online apace, encouraged by strong aggregate demand for property and an uplift in prices. </div>
<div> </div>
<div>And all of this is before the potential distortions of encouraging investors to speculate on considerably riskier new properties are even touched upon, let alone the concerning impact of increased public housing costs on the budget.</div>
<div> </div>
<div>On the back of these slim pickings, and given that PM Turnbull has already batted changes to the capital gains tax to the fence, there is Buckley's chance of the Coalition proposing a similar move to the ALP in Opposition.<br><br>Presumably this is for similar reasons that Labor took no such action when they weren't in Opposition - pollies actively deflating a housing market in the midst of a once-in-a-century terms of trade and resources investment bust? It seems like a remote possibility to me, but you can choose to believe whatever you want.<br><br><strong><span style="text-decoration: underline;">The wrap</span></strong><br><br>All of this has been well known about for some time, of course: scrapping negative gearing was never going to be much of a boon for the budget.<br><br>If negative gearing is going to be binned then it should be so on intergenerational grounds or because it represents iniquitous tax legislation, not based upon bogus claims of "billions" to be saved in the budget.<br><br>Finally for today, spare a thought for the taxation figures above, the line items of which I have charted simply as the ATO present them, for they're doubtless set to once again be tortured mercilessly come Monday morning. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Negative gearing set to stay: Pete Wargent

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<p class="p1"><span class="s1">When investors are looking for good places to buy, consistency is a quality worth seeking. And the factor where consistency matters the most is in sales activity.</span></p>
<p class="p1"><span class="s1">Some markets deliver steady levels of home sales, regardless of the booms or busts going on around them.</span></p>
<p class="p1"><span class="s1">In each quarterly edition of The Price Predictor Index published by Hotspotting, we have spotlight the consistency markets – and we nominate a location as a nation’s most consistent market.</span></p>
<p class="p1"><span class="s1">We have a strong focus on consistency markets because these are solid places for both home-buyers and investors.</span></p>
<p class="p1"><span class="s1">The places we call the consistency markets sit in the middle of the spectrum, between the growth regions and the declining ones.</span></p>
<p class="p1"><span class="s1">These are locations which record a consistent rate of sale, quarter after quarter, regardless of external events.<span class="Apple-converted-space">  </span>They represent safety for investors.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s2">And while they are often not boom markets, places with this high level of even performance usually produce solid price growth over time.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s2">They’re the housing market’s version of the “slow and steady wins the race” story.</span></p>
<p class="p1"><span class="s2">In our new Summer edition of The Price Predictor Index, our award for the nation’s outstanding consistency market goes to Ulladulla in the Shoalhaven LGA in regional New South Wales.</span></p>
<p class="p1"><span class="s2">It has sold between 43 and 58 homes in each of the past 13 quarters. Few locations in the country achieve that level of steadiness.</span></p>
<p class="p1"><span class="s2">Ulladulla has a median house price of $510,000, after a 15 percent rise in the past 12 months.</span></p>
<p class="p1"><span class="s2">To further illustrate the kind of growth that can happen in these steady performers, the winner in our Spring 2017 edition - Echuca in Victoria - had a 7 percent annual rise, while in the Winter 2017 edition our “most consistent market” - Sunbury<span class="Apple-converted-space">  </span>on the northern fringe of Melbourne - had a 10.4 percent annual increase.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s2">Generally in this report we look for locations where sales activity is rising, as these places are likely to deliver price growth. But the figures presented here for Ulladulla, Echuca and Sunbury show that steady market performers can achieve solid price growth as well.</span></p>
<p class="p1"><span class="s2">As it’s not just short-term growth. Lalor Park in Sydney’s western suburbs, another noted consistency performer, has a long-term growth average (average annual growth in median house prices over 10 years) of 10 percent for year.</span></p>
<p class="p1"><span class="s2">Greystanes in Sydney, which consistently sells 70-75 houses per quarter, averages 8.5 percent a year in median price growth.</span></p>
<p class="p1"><span class="s2">Camp Hill, a suburb of Brisbane, has been averaging 7 percent per year.</span></p>
<p class="p1"><span class="s2">Caroline Springs, a very steady sales market in western Melbourne, has averaged 7 percent per year. Frankston, which is both consistent and prolific in south-eastern Melbourne, has averaged 8 percent.</span></p>
<p class="p1"><span class="s2">Some investors chase boom markets, seeking exponential short-term growth, and often end up with disappointing results.</span></p>
<p class="p1"><span class="s2">There’s a lot to be said for the steady performers, which provide both safety and good long-term capital growth.</span></p>
<p class="p1"><span class="s2">Very often, the tortoise out-performs the hare.</span> </p>
<p class="p1"><span class="s1">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p3"><span class="s3"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p4"><a href="https://twitter.com/hotspotting" target="_blank"><span class="s1"><em>twitter.com/hotspotting</em></span></a></p>
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terryryder-YECXbqmri2

Lalor Park price growth highlights importance of consistency for investors

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<p><span>Melbourne real estate agency LongView is launching this month a number of innovative tools for investors to distinguish it from other agencys.</span></p>
<p><span>LongView will enable investors, be it property investors or mum and dad owners, to better capitalise on their property investment.</span></p>
<p><a href="https://longview.com.au" target="_blank">LongView</a> will offer a guaranteed rent service that gives investors financial security.</p>
<p>"<span>This is not a gimmick or a 'magic pudding' – our data scientists analysed thousands of property years of vacancy statistics to make sure we understand the risks," the website advises.</span></p>
<p><span>"And our service team have created innovative approaches to minimising vacancy and rental arrears."</span></p>
<p>It currently services over 1,800 properties across 146 suburbs over Melbourne.</p>
<p>Their website offered an indication that LongView offers Guaranteed Rent contracts on about 90% of all investment properties.</p>
<p>The agency is chaired by former politician Evan Thornley, who co-founded, chaired and acted as the CEO of LookSmart, a pioneer of internet search advertising and Australia's first NASDAQ-listed high-tech company.</p>
<p>Thornley says he views property investment as a long game.</p>
<p>"Investors have been demanding change for a long time and we have spent four years of intensive research developing every aspect of LongView Real Estate,” Thornley said.</p>
<p>“We’ve been talking to property investors and listening to their concerns and hearing their needs.”</p>
<p>“While Guaranteed Rent is a fantastic concept that we are very proud of, we absolutely focus on getting the basic services to clients right as well.</p>
<p>"That means being accessible till 10pm at night, have clear contact details in every email and regularly asking and measuring our client satisfaction.</p>
<p><span>LongView’s Guaranteed Rent offers a safe and viable option for investors who are thinking of selling.</span> </p>
<p>“LongView’s focus is on servicing investors’ needs, and helping them understand all the options to maximise value from their property investments - not constantly pressuring to sell - that’s our point of difference,” Thornley said.</p>
<p>Thornley says that investors need an agency that will deliver the basics every day for decades and give them unbiased advice on all their options when the big decisions come for each property.</p>
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<p>“We have developed a model that works, using data to help support our insights.</p>
<p>"We offer a unique Guaranteed Rent for their property – something no other agency will do."</p>
<p>LongView will offer their customers a binding legal contract for Guarantee Rent on any investment property - at full market value, giving landlords and investors piece of mind knowing their cash flow is secure.</p>
<p>Whether the property is tenanted or vacant or whether the tenant is on time with paying rent or not, LongView is taking the risk out of property investing.</p>
<p>“Property investors make their money over decades through capital growth and rising income.</p>
<p>"We offer an alternative to traditional real estate agencies that aren’t focussed on investors and push for a one-month romance to pressure you to sell.</p>
<p>"We seek to deliver the best basic services every day for decades and unique options and services for the big property decisions.” Thornley added.</p>
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<p>Thornley is part of the executive team that includes former KPMG senior partner and board director Antony Cohen.</p>
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jrobinson-rf4aSBido9

Melbourne real estate agency LongView launches investor rental guarantee

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<div>Moody's Investors Service says that debt-funded unit buybacks by four rated Australian real estate investment trusts (AREITs) will weaken the companies' credit metrics, but that their good operating performance will also partially allay such concerns.</div>
<div><span style="font-family: 'Times New Roman';"> </span></div>
<div>The buybacks, all things being equal, will weaken the AREITs' leverage -- expressed as net debt/EBITDA -- in the next 12-18 months, although the actual impact will depend on the amounts undertaken. Unit buybacks are an attractive capital management option for the rated A-REITs, which have low gearing, broadly defined as debt/assets, and their unit prices have traded below net tangible assets. Both reasons support the decision to buy back units rather than pursue acquisitions or redevelopments.</div>
<div><span style="font-family: 'times new roman', times;"> </span></div>
<div>Key points are as follows –</div>
<div> </div>
<div>» Four rated A-REITs have been buying back units. Scentre Group (A2 stable), Dexus (A3 stable), Mirvac Group (A3 stable) and Charter Hall Retail REIT (Baa1 negative) have initiated buybacks worth up to AUD1.6 billion in total. The unit buybacks are likely to be funded by debt because Australian REITs (A-REITs) pay out most of their earnings as distributions to unit holders. Debt-funded buybacks, all things being equal, will weaken</div>
<div>the A-REITs’ net debt/EBITDA financial leverage in the next 12-18 months. Unlike property purchases or investment in redevelopments, unit buybacks will not increase EBITDA. As a result, net debt/EBITDA will increase, depending on the amount of units repurchased.</div>
<div><span style="font-family: georgia, palatino;"> </span></div>
<div><span style="font-family: Arial;">Click here to enlarge.</span></div>
<div><span style="font-family: 'arial black', 'avant garde';"> </span></div>
<div><span style="font-family: Arial;"><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/2018/5/30/MOODYS1.jpg" alt=""></span></div>
<div><span style="font-family: 'Times New Roman';"> </span></div>
<div>» Unit buybacks are an attractive capital management option for A-REITs. Most rated A-REITs have low gearing, broadly defined as debt/assets, and their unit prices have traded below net tangible assets. Both reasons support the decision to buy back units rather than pursue acquisitions or redevelopments. Most rated A-REITs’ low gearing reflects a conservative approach to debt, and low cap rates that have increased portfolio</div>
<div>asset values. Also, in many instances, sales of properties have exceeded purchases in Australian dollar terms.</div>
<div> </div>
<div>» Dexus' and Mirvac's metrics will stay within rating thresholds if debt-funded unit buybacks are implemented in full. Purely as a sensitivity analysis, we have assumed the buyback plans had been implemented in full as at December 2017. In this extreme scenario, Dexus and Mirvac would be able to accommodate fully debt-funded unit buybacks within their existing rating thresholds. Charter Hall Retail would not be able to do so, while Scentre would be at the threshold.</div>
<div> </div>
<div>» A-REITs' good operating performance partially allays concerns around weaker credit metrics. We expect solid operating income growth will continue for the rated A-REITs. A-REITs will benefit from annual structured rent increases, which underpin our expectation for comparable net income growth of close to 3% for the sector over the next 12-18 months. High occupancy rates and contracted rental income will support both</div>
<div>the office and retail sectors, while the industrial sector will benefit from strong economic activity and limited space availability, especially in Sydney.</div>
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REIT's face higher leverage on unit buybacks: Moody's

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<p>The billionaire investor Alex Waislitz in considering launching a listed property fund.</p>
<p>It ill be modelled on his investment companies Thorney Opportunities and Thorney Technologies.</p>
<p>Waislitz, who has made his fortune from investing in ASX-listed small and mid cap companies, has shifted his focus to property over the past few years.</p>
<p data-gtm-vis-first-on-screen-7770372_137="6906" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">His private Thorney investment group has lent about $20 million to property developers with plans to lend more than $100 million, potentially through a new listed investment company or an unlisted fund revealed to the <em>Australian Financial Review</em>.</p>
<p data-gtm-vis-first-on-screen-7770372_137="6906" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">Thorney has also partnered in about $1 billion worth of property syndications deals across commercial, residential and industrial deals in the past five years.</p>
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Billionaire Alex Waislitz considers launching a listed property fund

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<p class="m_-8813854321999303680x_MsoNormal"><span>In 2017, Australian unlisted property funds performed three times stronger than Australian equities, averaging total returns of 23.4% for the calendar year.</span></p>
<p class="m_-8813854321999303680x_MsoNormal">In its quarterly report, Zenith Investment Partners, MSCI and the Property Funds Association said that unlisted property funds delivered a total return of 23.4% for the year to 31 December 2017 compared to the 7.7% return from Australian equities. </p>
<p class="m_-8813854321999303680x_MsoNormal">Maarten Broek, Executive Director at MSCI, said that unlisted property funds also outperformed most other asset classes on a risk-adjusted basis. </p>
<p class="m_-8813854321999303680x_MsoNormal"><span><img src="https://www.urban.com.au/images/2018/2/26/unlisted.png" alt=""></span></p>
<p class="m_-8813854321999303680x_MsoNormal">“Property as an asset class is delivering strong returns driven by investor demand and supported by rental growth, particularly in the Sydney and Melbourne office markets.  </p>
<p class="m_-8813854321999303680x_MsoNormal">“Although yields have compressed over the last few years, Australian property returns still have a high income return component, relative to both other global property markets and other asset classes.</p>
<p class="m_-8813854321999303680x_MsoNormal">Mark Lumby, Head of Commercial Property at Australian Unity, said Australian Unity’s unlisted property funds continue to deliver investors stable income returns, consistent with the report’s findings.</p>
<p class="m_-8813854321999303680x_MsoNormal">“The performance of our funds is driven not only by market conditions but also, through the application of our experience and active asset management, which includes redeveloping existing assets to generate a higher income and capital growth profile for our investors."</p>
<p class="m_-8813854321999303680x_MsoNormal"><span><img src="https://www.urban.com.au/images/2018/2/26/unlisted%202.png" alt=""></span></p>
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