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

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

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

Homecorp approved for Budds Beach apartment tower, Lýon Residences

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

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

Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.

The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.

[smartcode_project:default project_id=143337 project_image_fid=374768]

McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."

[smartcode_project:default project_id=143337 project_image_fid=374767]

A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.

The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.

[smartcode_project:default project_id=143337 project_image_fid=374760]

Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

[smartcode_project:default project_id=143337 project_image_fid=374761]

Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.

Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.

Construction is underway, with completion expected in the second half of 2027.

[smartcode_project_cta:default project_id=143337]

More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.

The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."

The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a>

The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;

The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.

Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

Rental Yield

<html><body>
Hobart suburbs Rokeby and Glenorchy led the country in highest gross rental yield within 10 km of the CBD in 2016 among Australia’s capital cities, according to CoreLogic.
Rokeby led in houses with a median value of $193,291 and gross rental yield of 7.2 percent, while Glenorchy topped in units with a median value of $123,144 yielding 6.4 percent, says CoreLogic’s Best of the Best 2016 report.
Hobart suburbs dominated the top 10 list for houses with the top nine spots. The tenth slot went to Franklin in the Unincorporated ACT region. 
The list for units was more mixed with Oxley in Brisbane at no. 2 and Carlton in Melbourne at no. 3 respectively.
Property Observer found a three-bedroom house at 4 Benboyd Court Rokeby, TAS, 7019, (below) which sold for $186,500 in 2016 and was offered for rent at $270 pw, according to RP Data. The rental yield works out to 7.5 percent, close to the gross rental yield of 7.2 percent for Rokeby.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/09/Hobart10kmpic1.jpg" alt="">
For units, a two-bedroom unit at <a href="https://www.realestate.com.au/sold/property-unit-tas-glenorchy-122596726" target="_blank">2/20 Balmain Street Glenorchy, TAS, 7010</a> (below) sold for $162,000 in September 2016 and was listed for rent at $240 pw, according to RP data. The yield works out to be 7.7 percent, above the 6.4 percent gross rental yield for units in Glenorchy.
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/09/Hobart10kmpic2.jpg" alt="">
</body></html>

prateek24-ezbwHMbNAk

Hobart suburbs Rokeby and Glenorchy lead in rental yield within 10 km of CBD

<html><body>
When it comes to rental yields on a property, there’s no beating Cairns when it comes to apartments.
The Queensland city occupies eight spots in the Top 10 highest gross rental yields compiled by CoreLogic, including the top four.
The southern suburb of Woree in Cairns tops the list with a rental yield of 8.7 percent on a median unit value of $137,358, according to CoreLogic’s Best of the Best 2016 report that tracks various housing indicators up to the 12 months to September 2016. 
The only other suburbs not from Cairns are Elizabeth East and Davoren Park in Adelaide’s Playford, occupying fifth and sixth places, respectively.
 <img src="https://www.urban.com.au/images/2016/12/23/CairnsUnitRentYld.png" alt="">
According to the latest RP Data, the median asking rent for Woree is $255 per week.
Property Observer looked around for units around the median value of $137,358 on RP Data to see what their current yields were. 
A two-bedroom unit at <a href="https://www.realestate.com.au/sold/property-unit-qld-woree-116149035" target="_blank">3/10 Girralong Street Woree, QLD, 4868</a>, which last traded owners in 2014 for $136,000 was last rented out for $260 pw, which gives a rental yield of 9.94 percent.
<img src="https://www.urban.com.au/images/2016/12/23/CairnsNo1.png" alt="">
Another two-bedroom unit at <a href="https://www.realestate.com.au/sold/property-unit-qld-woree-122550290" target="_blank">2/1 Sandown Close Woree, QLD, 4868,</a> which sold in June 2016 for $133,000 was last leased for $260 pw, implying a solid yield of about 10.16 percent. 
 <img src="https://www.urban.com.au/images/2016/12/23/CairnsNo2.png" alt="">
</body></html>

Cairns is undisputed king of rental yields for units

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

mlomas-KC9MUPZ6Ca

How to find a property that will deliver yield and growth: Margaret Lomas

<html><body>
Yields in the capital cities are below the 15 year average, according to QBE’s latest housing report.
This can be seen in the chart below, which shows movement in indicative rental yields for houses by capital city. The indicative yield is calculated as the median three bedroom house rent divided by the median house price.
<img src="/images/2016/10/13/Chart%2010.jpg" alt="">
The indicative yield slightly understates actual yields, as the median house price is reflective of the whole market (investors and owner occupiers) while rents are reflective of just properties in the investment market.
Investment properties are more likely to be priced below the median house price of all dwellings, although achieve a typical rent. Nevertheless, movement in the indicative yield should correspond with actual yields.
QBE compared the rental return with the cost of financing by using the measurements for indicative rental yield and the standard variable interest rate respectively.
• In Sydney and Melbourne, indicative rental yields for houses are well below other capital cities, with stronger house price growth in these two capitals over the past three years widening the gap. At June 2016, the indicative rental yield for houses in Sydney was 2.4% and in Melbourne was 2.5%. For Melbourne, this was the lowest yield on record, for Sydney, yields are at their lowest level since 2004.
• In Adelaide and Perth, yields at June 2016 were on par at 3.9%. In Canberra, yields were a little higher at 4.2%. Adelaide’s yield has varied over the past 10 years, while sharp falls in rents in Perth have seen its yield decline. In Canberra, yields rose in the year to June 2016 as the fall in rents stabilised.
• Brisbane’s yields have fallen to 3.7% in 2015/16 as house price growth has been above the minimal rise in rents over the year. This is the lowest level recorded.
• In Darwin weaker rental growth has resulted in a continued decline in housing yields in 2015/16, to 4.6%. Darwin has the highest indicative house yield of the capital cities, just edging out Hobart which had yields relatively stable at 4.6% during the year.
Yields in all capital cities are below the 15-year average. Despite the low yields, the corresponding low mortgage interest rates means the gap between rental yields and interest rates in most capital cities remains narrow.
In some instances, selected properties in individual markets are likely to be positively geared, particularly with the current ability of purchasers to obtain a rate better than the current standard variable rate.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Rental yields in capital cities are below the 15-year average: QBE Housing Outlook

<html><body>
An oversupply of new apartments in some regions in Australia over the next two years will pressure both real estate prices and rental returns from investment properties in these areas, says Moody's Investors Service.
The conclusions were contained in Moody’s report titled Apartment Construction Boom Poses Moderate Risk to Australian RMBS, which is based on the data in its supplementary excel report, Australian RMBS Exposure to Apartments in High-Density Regions. 
Around 230,000 new apartments are due to be completed across all the capital cities of Australia by 2018, according to Corelogic. This figure is more than double the annual average sales of apartments over the five years to April 2016. And more than half will be built in regions where there is already a large supply of existing apartments.
"Such a development will in turn raise the risk for residential mortgage-backed securities (RMBS) exposed to these 'high-density regions', but for Moody's-rated RMBS portfolio overall, the rise in risk will be moderate," says Natsumi Matsuda, an analyst at the credit rating firm.
"Specifically, with the Australian RMBS that we rate, there is a moderate overall exposure of 5.6% to mortgages on apartments in high-density regions," said Matsuda. 
"Furthermore, the risk posed to RMBS is mitigated by the level of equity that is available to absorb losses if borrowers default, as highlighted by the low weighted average loan-to-value (LTV) ratio of mortgages on apartments in high-density regions.” 
Exhibit 1 shows the exposure of the Australian RMBS portfolio to regions where, according to Corelogic, the largest number of new apartments is due to be completed over the next two years. The RMBS portfolio's largest exposures to apartments in these high- density regions are in the Sydney Inner City and Melbourne City regions, which are ranked first and third in terms of the areas with the most new apartments due to be completed over the next two years. 
<a href="/images/2016/10/13/Exhibit1.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Exhibit1.jpg" alt="">
On LTV on mortgages in high-density regions, the current level is 62.5 percent, which drops to 47.6 percent after considering the increase in apartment prices.
Exhibit 2 below shows the five deals with the largest exposure to mortgages on apartments in high-density regions. In all of these deals, mortgage loans have low LTVs on weighted average basis, which means there is a material level of equity to absorb losses if borrowers default. 
<a href="/images/2016/10/13/Exhibit2.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Exhibit2.jpg" alt="">
Exhibit 3 below lists the five deals with the lowest exposure to mortgages on apartments in high-density regions. These deals face the least risk from the increase in the supply of apartments in high-density regions.  
<a href="/images/2016/10/13/Exhibit3.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Exhibit3.jpg" alt=""> 
Melbourne suburbs have least additional equity to absorb losses
Of the high-density regions to which the Australian RMBS portfolio is exposed, mortgages in inner Melbourne have the least additional equity (7.6%) for absorbing losses, owing to the relatively low level of apartment price increases, says Moody’s.
Prices in the Melbourne City region have risen by just 5% over the last five years, compared with the 40% rise in Sydney apartment prices over this period.
<a href="/images/2016/10/13/Exhibit4.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Exhibit4.jpg" alt="">
A relatively high proportion of mortgages on apartments in high-density regions are investment (46.5%) and interest-only (31%) mortgages, which adds to the risk, says Moody. 
Investment and interest-only mortgages are typically riskier than owner occupier and principle and interest mortgages, because, among other factors, borrowers typically repay loans slower and will therefore build equity more slowly. 
In the RMBS portfolio, the slower repayment of housing investment and interest-only mortgages is evident in the higher LTVs of these loans when compared with the overall portfolio, as Exhibit 5 shows. 
<a href="/images/2016/10/13/Exhibit5.jpg" target="_blank">Click to enlarge</a>
 <img src="/images/2016/10/13/Exhibit5.jpg" alt="">
Furthermore, the large supply of new apartments due to be completed in high-density regions will put downward pressure on apartment rents in these areas and drive up vacancy rates, lowering the return for investors who rely on rental income to repay their housing investment loans. 
Rental yields on apartments in Sydney and Melbourne are already at the lowest levels in a decade. Such developments will in turn pressure mortgage performance.
 
</body></html>

Rising supply of apartments in Australia to pressure prices, especially inner Melbourne: Moody’s

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
Rental rates fell over July by 0.3 percent to be 0.6 percent lower over the 12 months to July 2016 according to the CoreLogic July Rent Index.
According to CoreLogic research analyst Cameron Kusher, rental rates continue to ease as supply ramps up.
<a href="/images/2016/08/11/Screen%20Shot%202016-08-11%20at%2011.15.48%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/11/Screen%20Shot%202016-08-11%20at%2011.15.48%20AM.png" alt="">
 
He said potentially, the changing rental market conditions will have a flow on effect for older stock, particularly units given we’re seeing so much new unit supply being added to the rental market, much of which is located in inner city locations.
“It is anticipated that the rental market weakness will persist and that on an annual basis rents will continue to fall over the coming months,” he said.
<a href="/images/2016/08/11/Screen%20Shot%202016-08-11%20at%2011.16.59%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/11/Screen%20Shot%202016-08-11%20at%2011.16.59%20AM.png" alt="">
"Combined capital city median weekly rents are currently $483 and at their lowest since December 2015. 
"In contrast, this time last year, capital city rental rates had increased by 0.9%. Combined capital city rental rates are $485/week for houses and $467/week for units. 
"Over the past 12 months, rental rates have increased in Sydney (+0.4%), Melbourne (+2.0%), Hobart (+6.2%) and Canberra (+1.9%). Rental rates have fallen over the past year in Brisbane (-1.0%), Adelaide (-0.5%), Perth (-9.2%) and Darwin (-15.7%). Hobart and Canberra are the only capital cities to have recorded stronger rental growth over the past year compared to the previous year.
 
</div>
</div>
</div>
</div></body></html>

jonathanchancellor-7SQnKwU6yx

Rental rates fell 0.3 percent over July: CoreLogic

<html><body><div class="page" title="Page 9">
<div class="section">
<div class="layoutArea">
<div class="column">
<img src="/images/2016/06/22/D819360E-D22F-45A0-950B-1527D8EA443823.png" alt="">
SPONSORED POST
As an investor, you’ll want to minimise the amount of tax you pay on your rental property and ensure the process of completing tax returns run as smoothly as possible. Here are some tips to help.
1. Keep paperwork in order from the start. Record all up-front expenditure when buying your investment as initial expenses form part of the property’s cost base and can help cut capital gains tax when you sell. Carefully file all investment-related receipts throughout each year to minimise headaches at tax time.
2. Pre-pay interest and other expenses if it makes sense for you.
3. When considering whether to repair or replace an appliance or fixture, remember repairs can be claimed in the tax year in which they were incurred while replacements often need to be depreciated over the item’s lifespan. This could make a difference to your investment’s costs and your annual tax bill.
4. Consider obtaining a depreciation schedule. These do cost but they may allow you to claim deductions for capital works and assets such as appliances that save thousands in tax over the time you own the investment. 
5. Handle tax in the same way as the names on the property title: if the property is held equally in joint names, for example, you both need to declare half the income and claim half expenses in your tax returns.
6. Beware of redrawing on your investment property mortgage for personal use. This changes the amount of interest you can claim as a tax deduction and may affect whether your property is positively or negatively geared.
7. Try to time the sale of your investment property so it settles in a year when your taxable income will be lower. This might mean waiting until you retire, take a break from work or start a business, for example.
8. If you plan to dispose of a loss-making investment, try to sell in the same year as a profit-making investment property so you can use the loss to reduce your net capital gain, and therefore your tax bill. Remember to offset capital losses from previous years against current-year gains.
9. Seek advice before buying property through a self-managed superannuation fund. There can be tax advantages but there are fewer benefits to negative gearing through super. There are also restrictions on what you can do with your rental property that don’t apply to investments you directly own – such as renovating and renting to relatives or friends.
10. Seek professional tax advice to ensure you’re claiming all you’re entitled to. 
To download a free ebook on new financial year taxation tips for property investors,<a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/55208-new-financial-year-tax-planning-tips-for-property-investors" target="_blank"> click here</a>.
</div>
</div>
</div>
</div></body></html>

po-LsXgBTHBmX

Minimise the amount of tax paid on rental property investment

<html><body>
<div class="page" title="Page 24">
<div class="section">
<div class="layoutArea">
<div class="column">
Investors or first-home buyers can still find dwellings around $500,000 in Sydney if they venture a little further from the CBD area, according to valuation firm Herron Todd White’s residential property market report for July.
Two such areas are East Sydney and the Inner West.  
</div>
</div>
</div>
</div>
East
After strong growth over the past 18 months, there is little property in the eastern suburbs that can be found in the $500,000 price range other than small studios within the CBD and smaller one-bedroom units around the city fringe suburbs of Potts Point, Chippendale, Elizabeth Bay and Surry Hills, according to HTW's property report.
With low vacancy rates and strong yields, they still represent good investments with rental yields on average around 5%. 
As an example, an art deco style studio unit with no car accommodation, updated kitchen and bathroom, timber flooring and combined living/ bedroom with a rental estimate of $450 per week, sold in Greenknowe Avenue, Elizabeth Bay in May 2016 for $452,000. 
Property Observer found another sale in nearby Potts Point — a studio at <a href="https://www.realestate.com.au/property-studio-nsw-potts+point-122657674" target="_blank">6/16 Macleay Street</a> for $450,000.
Inner West 
Similar to the eastern suburbs, this price point is limited to studio, one-bedroom units and very modest older style two-bedroom units with no car accommodation, according to HTW.
A semi-modern studio unit on Parramatta Road, Camperdown with car space and currently rented for $425 per week sold in May 2016 for $490,000. 
Following the railway line, Ashfield, Summer Hill and Haberfield have old style one-bedroom, one-bathroom units that are near to the $500,000 range and still providing good rental returns and low vacancy rates with the opportunity for capital appreciation if the purchaser has access to funds to fully renovate in the future.
Property Observer found a one-bedroom apartment at <a href="https://www.realestate.com.au/property-unit-nsw-ashfield-122830018" target="_blank">2/74 Alt Street Ashfield NSW 2131</a> for $472,000, according to CoreLogic RP Data.
 
</body></html>

Good yields characterise cheap units in eastern and Inner West Sydney: HTW  

<html><body><div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
The average gross rental yield across the combined capital cities hasn’t been this low since 1996 when CoreLogic began collecting relevant data, according to the June Hedonic Home Value Index.
The average gross yield on a house is 3.2 percent and units 4.1 percent.
CoreLogic research director Tim Lawless said Despite low mortgage rate settings, the low yield profile implies that the majority of recent investors will be experiencing a cash flow loss on their property after expenses are taken into account.
Rental yields are generally low across all of the capital cities, however, it is only in Sydney and Melbourne where yields for both houses and units have dropped to new record lows. Melbourne remains the lowest yielding market for houses, averaging 2.9%, whilst unit yields are now lowest in Sydney and Darwin, averaging 3.9%. 
“Overall, the strong housing market conditions in Sydney and Melbourne are being reported in-line with high auction clearance rates and resilient levels of mortgage related activity and are also supported by a robust level of consumer confidence.”
<a href="/images/2016/07/01/Screen%20Shot%202016-07-01%20at%201.11.09%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/01/Screen%20Shot%202016-07-01%20at%201.11.09%20PM.png" alt="">
</div>
</div>
</div>
</div></body></html>

Average gross rental yield lowest since 1996: CoreLogic

<html><body>
Hawthorn East is the fastest growing rental suburb in Victoria, according to Investar's latest suburb report.
The suburb seven kilometres East of Melbourne's CBD has had a one year change of 16.66 percent on its studios or one bedroom units.
It's closely followed by St Kilda, whose two bedroom houses have seen a change of 16.16 percent.
  
1. Hawthorn East, VIC - Studio and one bedrooms - Median rent: $350 - One year change: 16.66 percent
2. St Kilda, VIC - Two bedroom house - Median rent: $575 - One year change: 16.16 percent
3. Brunswick West, VIC - Two bedroom townhouse - Median rent: $430 - One year change: 13.15 percent
4. Geelong, VIC - Two bedroom unit - Median rent: $360 - One year change: 12.5 percent
5. Sale, VIC - Two bedroom unit - Median rent: $250 - One year change: 11.11 percent
 
{mijopolls 139}
</body></html>

Rental Yield

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Rental Yield

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News