A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

[smartcode_project:default project_id=134974 project_image_fid=5427]

The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

[smartcode_project:default project_id=134974 project_image_fid=5421]

The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

[smartcode_project_cta:default project_id=134974]

Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Residential Investment

<html><body><div class="tg-tlc-storybody_intro">
Will and Karlie were the winners of this year's The Block in Port Melbourne, with their ground floor garden apartment snapped up by an investor.
However, despite finishing in last place, the penthouse apartment of Kim and Chris ranks as the best for depreciation, according to experts.
Their analysis shows the New South Wales couple's apartment showing a first year deducation of around $87,470 and a total deduction of about $2,448,042.
This money can only be claimed because the buyers of the apartment were investors. They paid $2,305,000 at the auction on Sunday night.
The apartment of the team that finished second last, Geelong best mates Andy and Ben, offered the second highest level of depreciation, with a total of $2,401,413 claimable.
Buyers qualify for deductions upwards of about $80,000 in the first year, totalling more than $2 million after 11-plus years of ownership, according to numbers crunched by BMT Quantity Surveyors.
<table style="height: 233px; width: 511px;" border="0"><tbody>
<tr>
<td>Contestants </td>
<td>First year</td>
<td>Total</td>
</tr>
<tr>
<td style="text-align: left;">
Kim and Chris
</td>
<td style="text-align: left;">$87,470</td>
<td style="text-align: left;">$2,448,042</td>
</tr>
<tr>
<td style="text-align: left;">
Ben and Andy
</td>
<td style="text-align: left;">$85,718</td>
<td style="text-align: left;">$2,401,413</td>
</tr>
<tr>
<td style="text-align: left;">Julia and Sasha</td>
<td style="text-align: left;">$81,004</td>
<td style="text-align: left;">$2,230,438</td>
</tr>
<tr>
<td style="text-align: left;">Dan and Carleen</td>
<td style="text-align: left;">$79,649</td>
<td style="text-align: left;">$2,187,954</td>
</tr>
<tr>
<td style="text-align: left;">Will and Karlie</td>
<td style="text-align: left;">$77,324</td>
<td style="text-align: left;">$2,124,227</td>
</tr>
</tbody></table>
 
No doubt the additional cash flow property investors receive from depreciation will assist them when crunching their numbers to make purchase decisions.
BMT said some property investors did not realise the significant deductions they could claim.
“Research suggests that 80 percent of property investors fail to take full advantage of property depreciation."
To learn more about depreciation, download our handy guide from Washington Brown <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/59939-four-property-depreciation-myths-that-investors-need-to-know-washington-brown" target="_blank">here</a>.
 
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jonathanchancellor-7SQnKwU6yx

Which apartment in The Block was best for investors with depreciation?

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Hotspotting’s Dirty Dozen – the 12 worst places to invest in Australia – has for a long time been dominated by markets closely linked to the resources sector. 
The latest batch – included in the new edition of The Price Predictor Index – has a different flavour. Half of the locations are suburban markets, with considerably less dominance by the mining-related centres.
There are two reasons: oversupply has coincided with a decline in sales to turn many city apartment markets no go zones – and there are glimmers of recovery in some of those down-trodden resources locations.
One of the most remarkable emerging news stories right now is the speed of the turnaround in perception, confidence and activity in the resources sector. After 2-3 years of “the resources boom is over” articles, suddenly the news is dominated by rising commodity prices and announcements of new mining ventures or the revival of projects previously mothballed. 
This is particularly true in Queensland, where the spectacular rise in the price for coal has changed the mentality of the industry and perceptions about the state economy.
Personally, I wish they’d leave coal in the ground and find better, cleaner ways to make steel or fire up power stations. 
But for anyone who owns real estate in places like Mackay, Emerald, Moranbah or Rockhampton in Queensland, as well as the towns of the Hunter Valley in New South Wales, this is seriously good news. There is now genuine hope of vacancy rates coming down and rents and prices rising again.
Consider this from The Courier-Mail on 17 October: “A third Queensland coal mine has announced its ­intention to restart production as demand out of China has pushed the spot price above $US220 a tonne. Cockatoo Coal has emerged from administration with a plan to restart the Baralaba mine early next year. It follows Glencore’s decision to restart production at the Collinsville mine, while Stanmore Coal has taken over the Isaac Plains mine from Vale and Sumitomo and has now settled contracts for November delivery of its semisoft coking coal at $US130 a tonne, which is 75 percent higher than September’s price.”
And this from The Herald in Newcastle on 14 October: “The Hunter coal industry is back on an optimistic footing after big rises in prices both for coking coal for steelmaking and the region’s main product, thermal coal for power stations. In round figures, thermal coal prices are up by about 70 percent on lows earlier this year, while coking coal, which makes up about 15 percent of Hunter output, has effectively doubled. The price increases have led analysts to re-rate most Hunter mines as profitable, whereas a year ago it was widely accepted that two out of three mines were losing money.”
Or this from the Financial Review on 12 October: “The mining industry has reached an agreement with Japanese steel makers that prices for most Australian coking coal will jump 117 percent in just three months, an increase that means that the benefit of rising prices could be felt across the economy. The agreement means most Australian coking coal will be sold for $US200 per tonne over the next three months, compared with $US81 per tonne in the March quarter. The boom in coal prices could add 2 percent to national income this year, boost Federal Budget revenues by close to $7 billion and start wages growing again. Less than a year after the coal industry was accused of being in terminal decline, shuttered mines across Queensland and NSW have been reopened.”
Business Insider reported on 17 October: “With just over two months to go, it appears that 2016 could well be an important turning point for Australia’s mining sector. Commodity prices have recovered, the downturn in capital investment appears to be nearing its end and there are even some signs of a pickup in non-mining infrastructure investment, which is helping to boost sentiment after years of depressing, capital-destroying developments. For an economy that’s still highly-dependent on the mining sector, it’s been welcome news.”
What a startling difference in the rhetoric is so short a space of time.
There are all kinds of implications for economies and government budgets, but also for real estate in affected areas.
For those long-suffering investors who have been agonising over whether to cut their loses and get out of badly-performing properties in places like Gladstone in Queensland and Newman in Western Australia, there is now some hope that hanging on will deliver, in time, a reasonable outcome.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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terryryder-YECXbqmri2

Half of Hotspotting's Dirty Dozen now in suburban markets

<html><body>
<div id="post-body-8296077642061233663" class="post-body entry-content">
<div>Strewth, you know things haven't been hunky dory for housing markets in your region when the central bank starts profiling financial stability risks in its bi-annual Review. </div>
<div> </div>
<div>Housing loan arrears continue to deteriorate in the mining regions of Western Australia and Queensland.</div>
<div> </div>
<div>I have actually heard much about this already from various sources - in some small mining towns the situation is beyond chronic - but now it's starting to feed through to the official data.</div>
<div> </div>
<div>Interestingly, nationally applications for property possession are still declining as a share of the total dwelling stock. </div>
<div> </div>
<div>But clearly this is not the case in mining hotspots. </div>
<div> </div>
<div>High vacancy rates, falling rents, and falling prices are hammering property investors in mining regions, reported the Reserve  Bank of Australia (RBA).</div>
<div> </div>
<div>Illiquidity</div>
<div> </div>
<div>Banks have reported that in some regions even with big price discounts properties can't be sold.</div>
<div> </div>
<div>The only minor consolation or "cushion" for households in aggregate is that in some of the worst-affected regions mining companies own a high proportion of the dwelling stock, so personal administrations, while rising in mining regions, nationally remain close to 15-year lows.</div>
<div> </div>
<div>Though I doubt this feels like much of a consolation if you're the one stuck with an illiquid and depreciating asset.</div>
<div> </div>
<div>The RBA profiled the Pilbara and the Kimberley region in coastal Western Australia. </div>
<div> </div>
<div>And in Queensland, the RBA took a shufti at Townsville, Mackay, the Bowen Basin, Central Highlands. 
</div>
<div><a href="/images/2016/10/18/Screen%20Shot%202016-10-18%20at%201.48.45%20PM.png" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/10/18/Screen%20Shot%202016-10-18%20at%201.48.45%20PM.png" alt=""></div>
<div class="separator">Crikey.</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>
</div>
<div class="post-footer"> </div>
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pwargent-M4siyDbqQY

Mining crunch stress and house prices

<html><body>
<img src="https://www.urban.com.au/images/2016/10/14/image001-4.png" alt="">
Depreciation is basically a tax deduction available to property investors across Australia.
Depreciation allows you to claim a tax deduction for the wear and tear on an investment property over time.
This tax deduction recognises the fact that the building itself, as well as its plant and equipment will become worn out over time and eventually need to be replaced.
It doesn’t matter that these items were paid for by someone else – the developer or prior owner – as you, the current owner, can claim deductions as they continue to depreciate in value.
To learn more about depreciation, download our handy guide.
{rsform 75}
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jchancellor-FAypfDUnLy

Four property depreciation myths that investors need to know: Washington Brown 

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GUEST OBSERVER
I imagine if you are taking the time to read what I have to share with you, that you want more from life. To have more in our modern first world economy, it really helps to have money.
People who have more money, tend to focus on a few key factors towards generating wealth. They know that making money is not a sometime thing – it’s an every day journey that can take many years. There are few shortcuts, even for those who are lucky enough to win the lottery. Studies show that many of the winners have little or nothing to show after five years of winning their money. That is because they never learned about money and on which key factors tofocus upon.
There is no time limit on these factors – you can share them with school aged children or commence after you have retired from a lifetime of work. They will work just as well. They will however only work as well as you work them.
You are likely to have heard seen or even tried some or all of them before and may be tempted to dismiss the power of these factors when combined in to a single-minded focus point. They could be a timely reminder for you. And something else for you to consider – thesearen’t my points – they are distilled from lessons taken from some of the richest and most successful people on the planet.
So here they are.
1.     Set goals and visualize achieving them
If you want to make more money, you have to have a clear goal and then a specific plan for how to achieve that goal. Money won’t just appear – you have to work at it. If you have never set a goal before, Google “goalsetting” and find out how to do it.
Rich people choose to commit to attaining wealth. It takes focus, courage, knowledge, and a lot of effort. The main reason most people don’t get what they want is that they don’t know what they want. Rich people are totally clear that they want wealth.
2.     Invest in yourself
Probably the safest and best investment you can make is in your own future. Read at least 30 minutes a day, listen to relevant podcasts while driving and seek out mentors vigorously. You don’t need to be a master in your field, just well-rounded and knowledgeable – able to talk about any relevant subject whether it is financial or otherwise. Consume knowledge like air and put your pursuit of learning above all else. It is said that Warren Buffet spends 80% of his day reading – there’s a clue.
3.     Increase your income
Since it is incredibly difficult to save your way to being a millionaire, the logical thing to do is increase what you are earning now so that you have extra money to put aside. Studies have shown that the wealthyhave multiple streams of income – the most effective is usually three. This could be your day job, a part-time business, a business in which you have full or part-ownership, cash at bank earning interest, share dividends, real estate rental or capital profits from investments.
4.     Save to invest
The only reason to save money is to invest it. Your saved money needs to go into secured, sacred (untouchable) accounts. Never use theseaccounts for anything, not even an emergency. This will force you tocontinue to follow step three (increase income). When you have enough to make an investment, do so and then work to refill that investment account.
The key to consistently setting aside money is to make it automatic. You can start by having your bank account automatically shift a percentage of your income in to a separate untouchable savings account. That way, you’ll never even see the money you’re contributing and you’ll learn to live without it.
5.     Delay gratification
It is vitally important to control your expenditure while you are building your wealth. You might want to spend $20,000 on a holiday or $100,000 on a new car, maybe even a $5,000 suit or $2,000 pair of sunglasses or shoes. And these are all good things to have and do. But not before you have made it and have the kind of wealth and income that make the purchase of these things readily possible. The people who don’t succeed financially are those who have to have it all now. Imagine what you could do with the cash you would spend on thesethings – you could invest in a property or shares that might double in value in 5-10 years and throw off enough income to pay for the luxury things you want. And you would still have the asset.
Warren Buffet lives in the same home he always had and drives a modest ute that he loves. He invested his savings in to solid assets for the long term. Sometimes I wonder why he doesn’t spend some of his wealth on the fun things in life, but I guess he must have made theseconscious choices.
6.     Surround yourself with successful people
There is a long held school of thought that you become like those you associate with and tend to have a similar income to the average of that group of people. So if you want to increase your wealth and income, find others who are already doing that.
Andrew Carnegie has described this principle as the “Mastermind Group.” The idea is to surround yourself with talented people who share your vision, because the alignment of several smart and creative minds is exponentially more powerful than just one.
7.     Aim higher
I wrote my first book – “It’s Easy to Be a Property Millionaire” in 2001, when a millionaire really meant that you had sufficient wealth togenerate a high quality of living and you could choose to work or live your days out in pursuit of things you loves to do and people you wanted to be with. These days that same sum, while not insignificant, just won’t cut it any more. I think you need to aim for $2M or more – since $2M net worth – outside your family home, could reasonably provide you an income of about $100k per year, which is sufficient toprovide a reasonable standard of living.
Of course I encourage you to aim much higher, if that is your choice – it’s up to you.
What you do with these focus points is of course up to you.
But now that I have put them in front of you (again?) what will you do?
Craig Turnbull is an author, property developer and real estate investor. He can be contacted <a href="https://www.craigturnbull.com/" target="_blank">here</a>.
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Want to be wealthy? Focus on these 7 things

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BrickX's monthly rental distributions for September have been deposited into brick holders' wallets based on 30 September ownership. 
All rental distributions paid were in line with forecasts.
"This marks an exciting time for BRICKX Investors, as this is the first distribution paid since our big launch, when we made the platform available for all Australians," Anthony Millet, the BrickX chief said.
Details on each property and the distributions can be seen below
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Annandale (ANN01)
Distribution: $1,200 or $0.12 per Brick
Brick Price: $100.00*
Investors: 456*
<a href="https://brickx.us8.list-manage2.com/track/click?u=c85d85c62b9a47be6dc88e065&amp;id=07145ba6ea&amp;e=be9a375222">Invest in ANN01</a>
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Mosman (MOS01)
Distribution: $3,200 or $0.32 per Brick
Brick Price: $141.00*
Investors: 286*
<a href="https://brickx.us8.list-manage.com/track/click?u=c85d85c62b9a47be6dc88e065&amp;id=eee5c7d675&amp;e=be9a375222">Invest in MOS01</a>
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Prahran (PAR01)
Distribution: $2,400 or $0.24 per Brick
Brick Price: $120.00*
Investors: 145*
<a href="https://brickx.us8.list-manage1.com/track/click?u=c85d85c62b9a47be6dc88e065&amp;id=c16ba22a57&amp;e=be9a375222">Invest in PAR01</a>
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Enmore (ENM01)
Distribution: $1,700 or $0.17 per Brick
Brick Price: $68.00*
Investors: 578*
<a href="https://brickx.us8.list-manage1.com/track/click?u=c85d85c62b9a47be6dc88e065&amp;id=1c3c3d9b18&amp;e=be9a375222">Invest in ENM01</a>
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Anthony Millet, the BrickX chief executive, said they were working towards having 100 properties. 
A waiting list has been commenced for potential investors in the Double Bay investment trust.
*Brick Prices and Investors as at October 5, 2016.
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j.ballantyne1990-6AQqhLzZaK

BRICKX pays monthly rental distributions to property investors

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The need to “dig deep” isn’t just something footy players seek to do in the final quarter of a game – it’s an important mindset for property investors.
Among the many problems on the property playing field is the constant reporting of generalised data. A single figure can describe the entire market in a city of millions.
Unless consumers are willing to delve a little deeper, they will miss the myriad different stories lurking beneath the veneer of that single growth figure.
Some of those stories are strong growth scenarios that investors might want to know about. Equally there are danger signals alerting the switched-on practitioner to traps they should avoid.
There are dozens of examples in the latest quarterly edition of Market Monitor published by the Real Estate Institute of Queensland, with a particular focus on Brisbane and the Gold Coast, two places that are attracting plenty of attention from investors nationwide.
The annual growth in the median house price for the Brisbane City LGA is a moderate 5 percent. I’ve heard talking head TV personalities quote numbers like that and tell people that not much is happening in that market and investors should look elsewhere.
The dig-deeper philosophy would alert the more alert to places that are doing significantly better than the average. Brisbane City is a very big municipality, way bigger than equivalent LGAs in Sydney and Melbourne, and covers a large chunk of metropolitan Brisbane. 
There are around 130 suburbs in the Brisbane City LGA and that 5 percent annual growth figure does a thoroughly inadequate job of describing the state of play in its various markets.
Within that sprawling municipality Banyo, Carina Heights, Robertson, Wilston, Yeerongpilly and Seven Hills all have something in common – they’ve recorded growth above 15 percent in their median house prices in 12 months (although the 23-25 percent growth for Robertson and Yeerongpilly may be misleading because of small sales samples). 
Others with double-digit annual growth include Bulimba, Calamvale, Carindale, Clayfield, Coorparoo, Everton Park, Graceville, Greenslopes, Grange, Hemmant, Highgate Hill, Holland Park West, Inala, Jindalee, Lutwyche, Macgregor, Mackenzie, Manly, Mansfield, New Farm, Norman Park, Sunnybank Hills, Wishart and Wooloowin. 
They cover widespread price ranges, from Inala (median $350,000) to New Farm ($1.5 million).
There are numerous positive growth stories there that investors might want to know about - but are unlikely to discover if their idea of research is skimming the daily newspaper. 
There are some well-hidden negative news items as well. Some of the leadership in the REIQ are in denial about Brisbane’s inner-city apartment over-supply. If you read the executive summary, this is what you would find: “The unit market in the Brisbane CBD has continued to face the question of oversupply and so far the data does not support that verdict.”
But the small print data in the report portrays a quite different picture.
The vacancy rate for inner-city apartments is close to 4 percent (and figures from other sources suggest it is considerably higher). It will rise when new high-rise projects are completed.
While Brisbane City’s median house price is up 5 percent in annual terms, there is no change is the median unit price. And several individual inner-city markets have recorded a decline in the past year, including the CBD (down 1.5 percent), East Brisbane (down 4.1 percent), Bowen Hills (down 7.8 percent), New Farm (down 3.8 percent), West End (down 1.6 percent) and Fortitude Valley (down 5.9 percent).
Median prices can be unreliable and misleading, especially for unit markets, but there’s a fairly distinct pattern there.
An analysis of the Brisbane unit market by Urbis indicates that sales levels have fallen for three consecutive quarters and sale prices have been “steadily decreasing” since the end of last year.
Few of these inner-city apartment markets have recorded any rental growth in the past 12 months and several have delivered falling rents. In the Brisbane CBD the median unit rent has dropped from $600 per week to $570, while New Farm/Teneriffe is down from $510 to $500 and Kangaroo Point has dropped from $495 to $475.
The median rents for the Fortitude Valley and South Brisbane precincts are unchanged.
There are similarly divergent stories to be discovered within the many different markets collectively known as the Gold Coast.
Market Monitor says the median house price is up 6.7 percent in 12 months, but there are plenty of suburbs with growth above 10%. A small number – including Broadbeach Waters, Hope Island and Reedy Creek – are credited with growth in the 16-20 percent range, while the most expensive housing market on the Gold Coast, Mermaid Beach, has allegedly increased 30 percent in 12 months.
The single generalised figure for the Gold Coast apartment market portrays a 3.3 percent rise in the median price, but numerous individual markets have done much better. Hope Island median unit price is apparently up 20 percent in 12 months.
But the big beachside high-rise precincts continue to struggle. Surfers Paradise has recorded a small annual rise in its median price, but it remains 4% lower than five years ago. The Mermaid Beach median unit price is down 1.4 percent in 12 months and 4.1 percent lower than five years ago. Broadbeach is up marginally in 12 months but 13 percent lower than in 2011.
Against that trend, both Main Beach and Southport have recorded meaningful annual rises in their median unit prices and are a little ahead of the price levels of five years ago.
The contrasting situations seen in different sub-markets entail an important lesson for property investors. Ignore the shallow one-figure-for-each-city nonsense published by mainstream media and dig deeper to find the information you need to know to buy wisely and safely.
 
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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Queensland's big beachside high-rise precincts continue to struggle

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The majority of Australian property investors think now is a good time to invest in property with 70- percent of respondents to the Property Investment Professionals of Australia (PIPA) Property Investor Sentiment Survey thinking so.
This figure is up five percentage points from last year.
Some 32 percent of respondents to the survey say that recent changes to lenders’ investment policies have affected their ability to secure finance, 58 percent are nonetheless looking to buy a property in next 6-12 months. 72 percent  of investors are not worried about the potential removal of negative gearing and only 2 percent think that the currently available negative gearing concessions are the key attraction of real estate investment.
Almost half (47 percent) of those surveyed  are positively geared and a majority (63 percent) of investors who are currently negatively geared expect they will become positively geared within five years.
Ben Kingsley, PIPA chair said that the survey results confirm that property investors remain focused on the long-term benefits of property investment.
“Similar to last year, most property investors are looking past short term challenges, remaining focused on the long-term wealth benefits that are available from residential real estate, including the potential for capital growth and rental income. Importantly, most investors are not speculating on quick gains in a low interest rate environment," he said.
“The survey also affirms that a lot of the discussion about negative gearing misses the mark. Most investors understand that negative gearing is only a short term cash flow position, not a property investment strategy. And only a very small minority are attracted to real estate for these tax concessions."Brisbane remains a preferred destination
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PIPA’s 2016 Property Investor Sentiment Survey - Key stats at a glance 
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  1004 survey respondents 
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  71% of investors believe now is a good time to invest in property 
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  58% of investors are looking to purchase in the next 6-12 months 
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  72% of investors are not worried about possible changes to negative gearing 
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  32% of investors say changes to lenders’ policies have impacted them 
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  65% of property investors secured finance for their last deal via a mortgage broker
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  89% of investors believe people who recommend property investment should be regulated and licensed 
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Property investor confidence remains strong: PIPA national survey

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GUET OBSERVER
Did you know that there is an official ‘countdown to Christmas’ web site?
When I visited <a href="https://emailsanta.com/clock.asp" target="_blank">https://emailsanta.com/clock.asp</a>, there were 104 days to go.
Real estate agents can easily fall into a trap as Christmas approaches.
Every year, hordes of agents go around bemoaning the fact that things go awfully quiet in the property market through the festive season.
Bollocks!
That line of thinking is out-of-date, and not indicative of buyer and seller activity in this day and age.
Often this is the period when buyers and sellers have more time, are making changes and resettling, and have more need for an agent.
It is more commonly agents in non-holiday destinations that perpetuate the perception, who predict and plan for a drop off in market activity over the Christmas-New year period. Holiday spots are not so affected.
And what happens when you don’t keep talking with the buyers and sellers, when you ease off on your prospecting and stop generating listings, and when you pull back on the advertising of your listings and stop maintaining your profile?
When you don’t keep up all this agent activity, your business activity is likely to slow… because it is a self-fulfilling prophesy!
Don’t lose three months income because of a two-week ‘wind down’.
Don’t wind down too early – and take two months to get back to speed in the New Year!
Michael Davoren is managing director, RE/MAX Australia and RE/MAX New Zealand, and can be contacted <a href="https://www.remax.com.au" target="_blank">here</a>.
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The great Xmas real estate misconception: Michael Davoren

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SPONSORED POST
Australians have always had an affinity with property ownership and investment, and when you look at the statistics, it’s not hard to see why.
<a href="/images/2016/09/14/10yearreal%201%201.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/14/10yearreal%201%201.png" alt="">
These statistics support the common marketing thread we see in the media around the positives of property investment.  But as an existing property investor the real challenge lies in diversification. 
Diversification in property has traditionally been quite challenging. This isn’t simply due to the outlay of capital needed per purchase, it takes time, the need for investigation, viewings, auctions and then post purchase, there’s the upkeep, maintenance and management of the asset to factor in.
Obviously you can avoid most of this with a REIT or other managed fund structure but with those options you tend to sacrifice transparency and control.
Suffice to say property investment can be frustrating to say the very least. How much easier would it be to have access to an online platform that listed a variety of properties, across different states that you could easily flick through and buy a share in when it suited you?
And it wouldn’t stop there, once purchased your shares would offer monthly returns from any net rental income and regular valuations that would allow you to monitor your capital returns performance.
Undoubtedly, access and transparency would make property investment diversification far easier for both sophisticated and first time investors. And the good news is there is now a solution that offers both of these, it’s called BRICKX.
<a href="https://www.brickx.com/how-it-works?utm_source=propertyobserver&amp;utm_medium=paid&amp;utm_term=brickxoffers&amp;utm_content=article&amp;utm_campaign=launch" target="_blank">BRICKX offers</a> every Australian access to residential property for under $100. As a BRICKX investor you can benefit from monthly rental income and/or capital returns of your investment properties without being concerned with the hassle of leasing and managing them.
Investors also have access to regular valuation updates and to each property’s historical and suburb data, and investment cases.
Learn more about BRICKX at <a href="https://www.brickx.com/how-it-works?utm_source=propertyobserver&amp;utm_medium=paid&amp;utm_term=learnmore&amp;utm_content=article&amp;utm_campaign=launch" target="_blank">www.brickx.com</a>.
BRICKX products are issued by Theta Asset Management Limited (AFSL 230920). You should read the product disclosure statement at <a href="https://www.brickx.com/how-it-works?utm_source=propertyobserver&amp;utm_medium=paid&amp;utm_term=disclaimer&amp;utm_content=article&amp;utm_campaign=launch" target="_blank">www.brickx.com</a> and consider whether BRICKX is right for you.  
 
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