The first partnership between national developer <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> and Adelaide-based developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> has made a strong start, with the pair securing $21 million in unconditional sales at <a href="https://www.apartments.com.au/new-apartments/one-four-four-hutt-adelaide-144-hutt-street-adelaide-sa-5000">One Four Four Hutt</a>&nbsp;on the edge of the Adelaide CBD.

Over a third of apartments have been snapped up in the boutique 44-apartment project on the corner of Hutt Stret and Wakefield Road. Local downsizers and owner-occupiers wanting to remain in Adelaide's tightly-held southeast quarter have been the most prominent purchasers.

The DKO-designed, mixed-use development is one of the few new apartment projects in the precinct, an area where new housing supply has remained limited despite continued demand from buyers wanting to stay close to the CBD, Victoria Park and Adelaide's established east-end amenities.

[smartcode_project:default project_id=151233 project_image_fid=375378]

Fortis Head of Development SA Arthur Dendrinos said the early sales reflected both the strength of the local owner-occupier market and confidence in the Hutt Street location.

"The level of early commitment reflects the confidence local buyers have in the Hutt Street precinct," Dendrinos said.

"Many purchasers are long-term east-end residents who love the area and want to stay connected to the neighbourhood. They recognise the value of a well-designed, well-located development.

"Our partnership with Otello has been central to this success, and the number of unconditional sales at this stage only strengthens our confidence in the South Australian market."

&nbsp;

[smartcode_project:default project_id=151233 project_image_fid=375379]

Otello Director Daniel Harris said the sales result also highlighted the lack of new apartment opportunities within the Hutt Street precinct.

"One Four Four Hutt has clearly resonated with buyers, with strong early sales reflecting both the appeal of the Hutt Street corridor and the lifestyle on offer," Harris said.

"The activated ground-floor retail has also been a key drawcard, with purchasers responding to the vision of a more vibrant and connected streetscape, not just the residences themselves."

One Four Four Hutt will deliver 44 one, two and three-bedroom apartments, alongside a collection of penthouses, above a ground-floor retail offering designed to further activate the Hutt Street precinct.

Construction is scheduled to commence in the third quarter of this year, with completion anticipated in 2028.

[smartcode_project_cta:default project_id=151233]

Fortis Head of Development SA Arthur Dendrinos said the early sales reflected both the strength of the local owner-occupier market and confidence in the Hutt Street location.

Joel Robinson

Fortis makes Adelaide debut with Otello as One Four Four Hutt records strong early sales

For all its prestige, Roseville hasn't seen many new apartment developments that genuinely cater to the suburb's owner-occupier market.

Most new projects on Sydney's North Shore have focused on increasing supply, but Aqualand Prestige's <a href="https://www.apartments.com.au/new-apartments/boronia-by-aqualand-roseville-2-4-larkin-street-roseville-nsw-2069">Boronia</a> is taking a different approach.

The 111-apartment project on Larkin Street has been designed around a buyer who already knows the area, whether they're downsizing from a nearby family home, upgrading from an older apartment, or moving into the suburb to be closer to schools and transport.

[smartcode_project:default project_id=152095 project_image_fid=372391]

Boronia is the first project from Aqualand Prestige, the boutique residential division of Aqualand, the developer behind projects including AURA in North Sydney and Blue at Lavender Bay. The project is being delivered in partnership with Phoenix Property Investors.

Rather than trying to maximise density, the focus has been on creating apartments that feel much closer to a house. There's a strong weighting towards larger three-bedroom residences, alongside a limited collection of four-bedroom duplex-style sky homes, a product that's rarely delivered in apartment projects on the Upper North Shore.

[smartcode_project:default project_id=152095 project_image_fid=373694]

Architecture firm Woods Bagot has designed the building to sit within Roseville's established tree canopy rather than dominate it. The building steps down the site with deep balconies, generous setbacks and a material palette of masonry and natural stone that reflects the suburb's established character.

"The forms float among the canopies along the Larkin Street ridge to maximise the outlook across the green sea of the treetops," Woods Bagot Principal Jason Fraser said.

"The architecture is deliberately simple and understated, so that the detail, the craftsmanship and, above all, the landscape can be the hero."

[smartcode_project:default project_id=152095 project_image_fid=373685]

The same approach continues inside.

Interiors by COX take inspiration from the surrounding bushland of Lane Cove National Park, using natural stone, timber and handcrafted finishes throughout the residences. Kitchens feature Gaggenau and Bosch appliances, while the penthouse collection includes upgraded stone finishes and bespoke detailing.

"We wanted the homes to feel like an urban retreat, where the boundary between inside and out simply dissolves," COX Director Brooke Lloyd said.

Landscape architecture by Ground iNK extends that connection outdoors, with mature tree planting, deep soil landscaping and retained established street trees helping the development blend into one of Sydney's leafiest suburbs.

Residents will also have access to landscaped communal gardens, a wellness centre and outdoor spaces designed more as an extension of their own homes than traditional apartment amenities.

[smartcode_project:default project_id=152095 project_image_fid=373687]

The location is another reason Aqualand Prestige believes Boronia will resonate with buyers.

Roseville Station is around a five-minute walk away, placing Chatswood just one stop down the line, while the Sydney CBD remains within easy commuting distance. The suburb also sits within the NSW Government's Transport Oriented Development precinct, where planning changes are encouraging more housing around existing rail infrastructure.

Despite those planning reforms, opportunities to secure a new apartment in Roseville remain relatively limited, particularly developments aimed at owner-occupiers rather than investors.

Aqualand Prestige Executive Director Wayne Xiong said Boronia was designed for buyers intending to stay for the long term.

"These are homes built for decades of living rather than for the moment," Xiong said.

"Whether buyers are downsizing, raising a family or simply seeking more space, they're choosing the scale and craftsmanship of a fine house in a suburb they love, with the ease and connectivity modern life calls for."

Boronia's two-bedroom apartments are priced from $1.79 million, three-bedrooms from $2.49 million, penthouses from $2.85 million, and four-bedroom duplex-style Sky Homes from $4.5 million.

[smartcode_project_cta:default project_id=152095]

Aqualand Prestige launches Boronia to undersupplied Roseville apartment market

For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

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.

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.

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.

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.

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.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<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.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"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."

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.

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.

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.

[smartcode_project:default project_id=147685 project_image_fid=359127]

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.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"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.

"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."

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.

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.

[smartcode_project_cta:default project_id=147685]

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

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.

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.

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.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

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.

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.

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.

[smartcode_project:default project_id=1979 project_image_fid=363229]

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.

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.

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.

[smartcode_project:default project_id=1979 project_image_fid=363284]

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.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"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."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"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."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"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."

[smartcode_project_cta:default project_id=1979]

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

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.

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.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, 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.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 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.

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.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"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."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

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.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

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.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"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."

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

Property Investors

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One of the new trends in Australian real estate today is young families leaving cities – particularly Sydney, in favour of seachange and treechange lifestyle locations. 
The boom of 2012-2015 resulted in a significant surge in property prices and our feeling was that more so than ever before, this particular boom would result in many young families considering alternatives to Sydney, especially when it comes time to upgrade to a bigger house.  
New internal migration statistics (excluding overseas migration) released by the Bureau of Statistics and analysed by CoreLogic RP Data last month indicate that this trend is indeed occurring. 
The statistics look at the top 25 regions nationally for internal migration, as calculated by comparing population changes between the 2008-09 financial year and 2014-15. 
Many of the top 25 regions are on the outskirts of cities, which is a typical destination for families in the inner or middle ring who need more space. However, more than half the regions are coastal or lifestyle areas, which suggests an increase in sea and treechanging. In many of these areas, the populations of the 0-14 and 25-64 age brackets are the fastest growing, which points to families driving the trend. 
This is significant because traditionally, it’s been the downsizers or empty-nesters leaving our cities for the hills or the coast in retirement. That’s still happening, but not at the rate of young families. These days, more empty-nesters are trading family homes in the suburbs for lifestyle apartments in or near their CBD. 
There’s a few reasons for this – among them is the impact of the GFC. Seachanging and treechanging was a strong trend before the financial crisis but this has now changed, with many downsizers delaying their retirement to replenish their superannuation nest eggs. Downsizing closer to the city enables them to be closer to work as well as all the recreational amenities they desire.
Family Sea &amp; Treechange Hot Spots 
Here are the 15 seachange and treechange areas that made the top 25 list for internal migration 2008-09 to 2014-15. 
1. Sunshine Coast, QLD – 4,732 migrants predominantly aged 45-64 &amp; 0-14
2. Gold Coast, QLD – 4,610 migrants predominantly aged 0-14 &amp; 45-64
3. Geelong, VIC – 2,828 migrants predominantly aged 45-64 &amp; 0-14 
4. Richmond-Tweed, NSW – 2,198 migrants predominantly aged 25-44 &amp; 0-14 
5. Mornington Peninsula, VIC – 2,141 migrants predominantly aged 45-64 &amp; 25-44 
6. Mid-North Coast, NSW – 2,057 migrants predominantly aged 45-64 &amp; 25-44
7. Central Coast, NSW – 2,009 migrants predominantly aged 45-64 &amp; 0-14 
8. Hunter Valley (exc Newcastle), NSW – 1,814 migrants predominantly aged 25-44 &amp; 45-64
9. Southern Highlands &amp; Shoalhaven, NSW – 1,746 migrants predominantly aged 45-64 &amp; 25-44
10. Bunbury, WA – 1,632 migrants predominantly aged 0-14 &amp; 25-44 
11. Mandurah, WA – 1,554 migrants predominantly aged 45-64 &amp; 25-44
12. Sydney-Outer West &amp; Blue Mountains, NSW – 1,434 migrants predominantly aged 25-44 &amp; 0-14 
13. Illawarra, NSW – 1,262 migrants predominantly aged 25-44 &amp; 0-14
14. Wide Bay, QLD – 1,148 migrants predominantly aged 45-64 &amp; 0-14
15. Latrobe-Gippsland, VIC  – 1,054 migrants predominantly aged 45-64 &amp; 25-44
Source: Australian Bureau of Statistics and CoreLogic RP Data 
Some sea and treechanging families are making a permanent change and cutting ties with Sydney altogether, including finding a new job. Others are moving to lifestyle locations with public transport access back to the city so they can remain in the same job but enjoy a better lifestyle, including buying a far more affordable property to live in. 
Fly-in fly-out work opportunities, as well as more flexible workplaces that allow people to work from home at least part-time, are also enabling families to change their base from cities to lifestyle locations. 
We expect this trend to continue for at least another couple of years. Although the Sydney boom is over (but prices are still growing), many families have hit their limit with housing affordability. Gen Y couples and families in particular are far more nimble than generations past, with the idea of starting a new life in a new, more affordable location a serious option for them.
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jonathanchancellor-7SQnKwU6yx

Top 10 locations in Australia for internal migration

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According to the latest Investar Suburb Reports, New South Wales suburb Merimbula is the cheapest suburb for studio or one bedroom units in Australia.
Merimbula's median listing price for these types of apartments is $45,000.
Nine of the top 50 cheapest property suburbs are for studios and one bedroom apartments, with six of the nine coming from Queensland
<div class="page" title="Page 1"> </div>
<div class="page" title="Page 1">1. Merimbula NSW - Median listing price: $45,000</div>
<div class="page" title="Page 1"> </div>
<div class="page" title="Page 1">2. York, WA - Median listing price: $50,000</div>
<div class="page" title="Page 1"> </div>
<div class="page" title="Page 1">3. Dolphin Heads, QLD - Median listing price: $74,000</div>
<div class="page" title="Page 1"> </div>
<div class="page" title="Page 1">4. Bundamba, QLD - Median listing price: $76,000</div>
<div class="page" title="Page 1"> </div>
<div class="page" title="Page 1">5. Eagleby, QLD - Median listing price: $89,500.</div>
<div class="page" title="Page 1"> </div>
<div class="page" title="Page 1"> </div>
<div class="page" title="Page 1">{mijopolls 137}</div>
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j.ballantyne1990-6AQqhLzZaK

Unit investment poll: Which is the smartest investment?

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Melbourne-based property group and fund manager OpenCorp has come up with a financial product which it says offers Australians with moderate incomes the chance to become property developers.
The ‘Open Access Fund’ allows investors to invest in the fund and receive a monthly return at a fixed interest rate. Investors receive priority access to OpenCorp’s property funds as they become available, says a media release.
Clients can invest as little as $10,000 into the fund. From there, as new development funds become available, they can choose to direct any nominated amount into a new project.
The first property fund to become available for Access Fund investors will be OpenCorp’s apartment development in Albion, six km north of the Brisbane CBD.
The project has received planning approval for 154 apartments across six levels and is expected to give a 60 percent return on equity over the 3.5-year life of the project. The end value of the development is an estimated $90 million.
“There is a common perception that property development is just for wealthy people, and once upon a time this was the case,” said Michael Beresford, director of investment services at OpenCorp.
“We are now entering a new era for property development.”
More and more Australians are taking over their own investments, due to the volatility of the stock market since the global financial crisis, according to OpenCorp founding director Matthew Lewison.
“We are seeing more and more people taking over their finances, including setting up self-managed superfunds, and looking for innovative investment options,” Lewison says.
“Australians love property and the performance of investments in this sphere can make property development an attractive option.”
OpenCorp has been using a 'crowdsourcing’ model since 2009. The company has an Australian Financial Services Licence (AFSL # 417371) that has allowed it to create and operate crowdsourced funds for OpenCorp’s development projects.
Its pipeline includes over $500 million in developments, with a focus on the Brisbane and Melbourne markets.
“Investors can be across different markets at the same time and therefore benefit from the ups in each cycle,” said Lewison. 
OpenCorp says it has generated an average return of 20 per cent per annum for its investors over the last six years.
“People who haven’t saved enough money for a deposit for their own property can use this financial product as a stepping stone, or as a long-term investment option,” said Beresford.
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prateek24-ezbwHMbNAk

OpenCorp says its fund helps Australians with moderate incomes become property developers

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Despite longingly looking into estate agency window displays for beach shacks whenever we are holidaying up or down the coast, most of us baulk at buying.
Nationally around 560,000 Australians have a holiday home.
Melburnians twice as likely to have a holiday home, data from Roy Morgan Research suggests.
It found five percent Melbourne residents have one compared to 2.8 percent of people in Sydney.
They can, after all, be pricey and problematic.
Over the Easter break, I was weighing up their pros and cons recalling the analysis of Pitcher Partners accountant David Staples cautioning would-be buyers to do the sums as rather than offering sanctuary and status, the reality could be a financial black hole.
“It’s generally a lifestyle choice rather than an investment,” he suggested. 
The much voiced downside owners actually complain about is that all their time is spent fixing up and maintaining their holiday homes and not enough on the leisure side.
Then there's also the daily obligations of cooking, cleaning and laundry. 
Getting the food, booze and other supplies from a local shopping centre amidst hoardes of holidaymakers can be a endurance test.
Rental returns typically can cover most costs - from maybe around eight to 10 weeks a year with renting demand lower during off season when the owner gets to enjoy the cooler conditions in their musty clothes.
Normally you'd expect a net annual yield of no more than 2 percent, even if commanding weekly rents of $2000 plus in peak periods.
Of course there's always the chance of using the income for a quick ski trip to Whistler while the tenants swat away the Christmas holiday blowies.
But the expectations of holiday guests has risen so costly household items once considered extras such as air-conditioning, a dishwasher and a huge gas barbeque are now essential.
The Nepresso machine will soon be mandatory for the vacation crowd.
Being in one location for vacation year after year can be a delight for some, safe and routine with a good book selection to catch up on, along with the scrabble and monopoly board games.
Providing just the necessary break from the hustle and bustle of the city for disconnected families, ideally, its driving distance from Sydney should not be much further than two hours if it's a true weekender.
Senior executives who take their laptop workload can enjoy regular long weekends - and envisage their eventual seamless sea change shift.
For others constantly returning to the same holiday spot is not on.
Especially when inexpensive travel deals offer destinations with hotels and resorts providing high end holiday options and staff that take care of everything.
According to Pitcher Partners, the money spent on an average holiday house could pay for about 90 days a year in a quality hotel.
The owner would need to spend their four week annual holidays, 10 public holidays and 19 weekends at the holiday home to justify the cost.
This article was first published in the Saturday Daily Telegraph.
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jchancellor-FAypfDUnLy

Holiday home could be financial black hole

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<div>GUEST OBSERVER Here are my top ten tips for investing in property.</div>
Gauge the level of interest in the property
Auction strategies depend on what the auctioneer does, how other people bid, if there are other people bidding at all, what the level of genuine bid interest is, and, of course, how many dummy bidders there are.
Real estate agent review checklist
When buying by private sale, find out how good the estate agent you are dealing with is as a negotiator.
Three property auction strategies
Once you have carried your research out on the property you can use various auction strategies to put yourself in a winning position.
How to deal with aggressive bidders at auctions
Sometimes in an auction you will strike aggressive bidders.  In this case it's no good if both parties keep throwing in bids aggressively.
Three negotiation tips for passed in property
You have done your research on the property, used the appropriate auction strategies, and the property has been passed in to you. Here's what to do next.
How to draw out negotiations
The longer you can draw out negotiations during a private sale, the more information you will be able to get, and the more desperate the agent will become.
Four steps to value property
For real estate, knowledge is king. Lack of knowledge will cost you money because your inexperience will encourage you to pay more than the property value.
Real estate agents are _______
The agent is one of the unpredictable factors in the real estate equation. According to some people; real estate agents are scum, useless, liars, crooks. 
How to review a floorplan
A floorplan is the 'bones' of a house. Your floorplan also has a large bearing on your 'exit strategy' when you decide to move on.
When there is only one genuine buyer
Sometimes you can work out that you are probably the only buyer interested in the property and that the vendor has a very high price expectations.
 
David Morrell is director, <a href="https://realas.com/" target="_blank">RealAs</a>.
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Property 101: David Morrell's top ten property tips

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Foreign property investors are claiming more than $200 million a year of negative gearing tax deductions, a News Corp Australia analysis of latest Australian Taxation Office data shows.
It concluded there were almost 56,000 foreign real estate investors in Australia in 2014, up from 52,700 the previous year.
More than 40 per cent of them used the negative gearing rules, which allow investors to claim a tax deduction when expenses exceeded rental income from their invstment property.
A spokeswoman for Treasurer Scott Morrison said “tax changes to be made by the Government will be announced in the Budget”.
The new ATO data shows 22,529 foreign investors claimed almost $208 million of net rental losses in 2013-14.
Based on Australia’s tax rates for foreign residents of between 32.5c and 45c in the dollar, those negative gearing losses are estimated to have saved them more than $76 million in tax.
Real estate experts say any savings from banning foreigners from using the tax breaks would have little impact on the Federal Budget and may be counter-productive.
Foreign real estate investors in Australia: almost 56,000
Foreign investors using Australian negative gearing rules: 22,529
Amount of net rental losses claimed: $208 million
Total tax saving: more than $76 million
Tax rates for foreign residents: between 32.5c and 45c in the dollar
Source: 2013-14 Australian Taxation Office data
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40 percent of foreign investors make negative gearing property claims

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GUEST OBSERVER
To the inexperienced investor, the property market can seem like an overwhelming mix of numbers, jargon, cycles and advice. Knowing what the property market is doing is a challenge but it is important to learn as much as possible. 
When you are informed you can make your own decisions, rather than relying on someone else telling you what to do. Here are the six best ways to identify a healthy property market so you can take control of your investing choices.
1. The first thing to look out for is the movement of titled stocks. When it comes to property development there are multiple stages, beginning with acquisition, through to planning, civil works, roads, subtitles, and finally registered, titled lots ready to go. If developers are selling all of their stock before everything is complete, that’s a good sign that the market’s warming up. If there are thousands of completed lots sitting there, registered but unsold, that means the market is slow.
2. When the market is healthy, you will be able to see the media increasingly reporting good news property stories. As the growth cycle moves upwards, developers are the first to act. Following that, around 12 months later, the media catch on and start reporting. That pushes the market up to its peak because that’s when your everyday investors catch on and open their wallets. Keep an eye out for the ‘b’ word in the press (that’s bubble), as that is a good sign that the market is hot.
3. Underlying to any market movement is the economy; therefore it’s wise to keep an eye on Australia’s four main capital cities. Melbourne and Sydney’s economies tend to move together, with Sydney slightly ahead. This comes down to economic drivers, and that Sydney is a larger business hub. The economies of Perth and Brisbane rely on two main industries: tourism and mining. If the economy is flat, depending on how flat and why, then the property market may sit flat too.
4. Another sign is the rental market. I look for two things: low rental vacancy rates in a market and for rising rental prices. Simply, due to the nature of supply and demand, the rising cost of rentals equals an increased need for housing. An increased demand for property means a healthy market
5. When the market is booming, development and government incentives begin to dwindle. Incentives, like the First Home Owners Grant, are put in place to get people into the property market, driving the economy. This is because the building industry is vast, and when it is thriving you need appliances, benches, landscapers and myriad other products and services. So when these incentives are harder to come by, that means market is healthy.
6. If you’re selling a property, and once you’ve listed it you immediately receive multiple offers, that’s the sign of a healthy market. This is tracked via a mechanism called average days on the market. Alternatively if you are selling at auction, you will receive crowds of people attending, which is what we’re seeing in our capital cities at the moment.
Due to the fickle nature of the industry these six identifiers won’t always line up at once, but if you’ve got four or more of these, then the market is fairly healthy, which is great news for investors.
Allister Lewison is director of OpenCorp and can be contacted <a href="https://www.opencorp.com.au" target="_blank">here</a>.
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How to identify a healthy property market: OpenCorp's Allister Lewison

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Townsville in the north-eastern coast of Queensland was at the bottom of the market in Herron Todd White’s latest property clock, a simple broad brush means to indicate where property prices are and where they are going.
The HTW report also discusses gentrification in the area, which can help investors stay curve can prove profitable to property investors, say HTW.
Traditionally, the suburbs of Oonoonba and Garbutt bring images of older style timber-framed homes on traditional lots generally of a modest to average quality. 
<a href="/images/2016/03/16/Screen%20Shot%202016-03-16%20at%209.27.30%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/16/Screen%20Shot%202016-03-16%20at%209.27.30%20AM.png" alt="">
In 2012, a new infill land estate known as The Village commenced development in Oonoonba with another new infill land estate known as Haven recently commencing construction in Garbutt. 
While these developments are not gentrification in its purest form, they are changing the landscape of these suburbs.
Both these estates are within four kilometres of the CBD, making them locationally desirable and have a high concentration of small lot sizes. Due to the higher density of these estates, construction includes a mix of single and double-storey masonry block homes. Within The Village there have also been some small complex unit developments. 
The appeal of these developments is very much price point driven with entry in the high $200,000s to low $300,000s. The major benefit of this style of development is the ability to have a unit-sized home on a small low maintenance allotment close to the City and The Strand without the costs associated with body corporate fees. 
Predominantly small lot, higher density land estates are a relatively new concept in the Townsville marketplace and how these estates present in the long term is yet to be tested.
The median unit price at the end of 2015 was $434,000, according to RP Data. There was no matching data for houses.
<img src="/images/2016/03/29/main.jpg" alt="">
As an illustration, a three-bedroom apartment at <a href="https://www.realestate.com.au/property-apartment-qld-townsville+city-121323246">41/51 Stanley Street Townsville City</a> sold for $349,000 recently.
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Queensland's Townsville appeal lies in entry price point of new developments: HTW 

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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. 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. 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. Net rental losses halved
</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 more than half in the two tax years to 2013-14, from $7.9 billion to just $3.7 billion. 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. 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. 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>
<a href="/images/2016/03/21/NG.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/21/NG.jpg" alt="">
<div> </div>
<div>Remember that Labor is not proposing to scrap negative gearing, rather to grandfather existing arrangements and limit negative gearing to new dwellings. 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. 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. Further declines in the post  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. 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? 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. 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. The wrap 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. 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. 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>
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>. 
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>.
</div>
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Negative gearing set to stay: Pete Wargent

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Cromwell Phoenix Property Securities Fund has won the Morningstar Fund Manager award for listed property for the third consecutive year, confirming its position as one of Australia’s leading property securities funds.
The fund, which closed in 2015 to new investors, invests in ASX-listed property securities and delivered a total annual return of 16.3 per cent last year, outperforming the S&amp;P/ASX 300 A-REIT Accumulation Index by 1.9 percent.    “The Morningstar Awards set the benchmark for exceptional fund performance and value for investors. It’s an honour to be nominated but a true display of our team’s expertise to be awarded for the third consecutive year,” said Stuart Cartledge, managing director of Phoenix Portfolios.   “The A-REIT market continues to be an attractive proposition for investors. The broader market outlook is improving – the recovery of the Melbourne and Sydney office markets outweighs the weak performance of resource-impacted Perth and Brisbane.”   “We expect property will continue to deliver solid returns over 2016 due to the upward pressure on the value of underlying assets, and continued rental growth across all sub-sectors given reliable lease income with built-in increments,” he said.
The Morningstar Awards are designed to help investors identify exceptional funds and fund managers. Fund and fund group nominees are selected based on quantitative methodologies that emphasise outperformance over one, three, and five-year periods.
The awards were announced on March 4. 
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