Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<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/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Joel Robinson

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

Seasoned Victorian apartment developer <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a> has logged more than $400 million in sales in its luxury apartment project Palmera Residences at Northcliffe on the Gold Coast.&nbsp;

Central Equity Director Karl Kutner said the sales result reflected a combination of location, product quality and delivery certainty with the project already under construction by building powerhouse Multiplex.&nbsp;

"Surpassing $400 million in sales since launch is a significant milestone and an outstanding endorsement of <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera Residences</a>,” he said.&nbsp;

"We believe one of the key reasons for this strong result is the confidence purchasers have in knowing the project is under construction with Multiplex. Buyers are increasingly looking for certainty. They want to know that the project they commit to today will be delivered by an experienced team with a proven track record."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365782]

Kutner said it was clear there was still high demand for luxury projects that offered certainty of delivery.&nbsp;

“We are in a market where many residential developments have faced delays due to rising construction costs, labour shortages and financing challenges,” said Kutner.&nbsp;

"But having construction underway has provided our buyers with resounding confidence backed by more than 40 years of development delivery by Central Equity combined with construction by one of Australia's most respected construction companies."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365785]

Central Equity is one of Australia's most experienced privately-owned property developers. Over more than four decades, the company has delivered in excess of 85 residential developments including 10,000 apartments and many thousands of stand alone homes.&nbsp;

Located on Garfield Terrace at Northcliffe, between Surfers Paradise and Broadbeach, Palmera Residences occupies one of the Gold Coast's most sought after beachside locations. The development has been designed to appeal to owner occupiers seeking premium residences that combine generous living spaces and resort style amenities.&nbsp;

Palmera Residences will feature an exceptional collection of resort style amenities, including two swimming pools: a generously sized family pool with safe shallow zones for relaxed recreation, and a 20 metre lap pool positioned to maximise all day sunlight.&nbsp;

Residents will also enjoy exclusive access to wellness and recreational facilities including a magnesium pool, sauna, yoga studio, expansive fitted gymnasium, resident lounge, outdoor BBQ’s&nbsp;and indoor and outdoor dining areas, together with a dedicated concierge and luxurious hotel inspired entrance foyer.&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365767]

A unique feature at Palmera Residences has been designed to enhance the Gold Coast lifestyle which includes both indoor and outdoor gymnasium facilities, together with thoughtfully designed indoor and outdoor dining and entertaining areas. A corner café has also been incorporated to provide residents with a destination for their everyday needs.&nbsp;

Kutner said buyer demand had been broad based with purchasers attracted from interstate as well as throughout South East Queensland.&nbsp;

"We're seeing strong interest from owner occupiers, lifestyle buyers and people relocating to the Gold Coast. Many purchasers have been searching for a premium beachside residence where quality, design and delivery are equally important."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365771]

Kutner said the sales milestone was an important achievement, but the focus remained firmly on delivering an exceptional development.&nbsp;

"While reaching $400 million in sales is an important milestone, our priority remains delivering a project that exceeds purchaser expectations,” he said.&nbsp;

"Palmera Residences has been designed to become one of the Gold Coast's landmark residential addresses, and we look forward to welcoming our purchasers to their new homes."&nbsp;

There are a limited number of residences remaining in selected configurations with pricing from $2,950,000 to $8,950,000. Palmera Residences is also crowned by expansive penthouses with wrap around views.

[smartcode_project_cta:default project_id=108274]

Construction certainty and strong buyer demand drive major sales result for luxury Gold Coast development

Palmera Residences fly out the door as sales pass $400 million

National property developer <a href="https://www.apartments.com.au/developers/goldfields-group">Goldfields</a> has appointed BINAH as its construction partner for Quartet, its new Brisbane apartment development in the undersupplied suburb of <a href="https://www.apartments.com.au/developments/milton-qld-4064">Milton</a>.

Located just two kilometres from the Brisbane CBD and moments from key 2032 Olympic precincts, <a href="https://www.apartments.com.au/new-apartments/quartet-milton-33-manning-street-milton-qld-4064">Quartet</a> will deliver 131 one, two, three, and four-bedroom apartments priced from $1 million to $4.2 million, combining elevated design with a wellness-focused lifestyle offering.&nbsp;

[smartcode_project:default project_id=108736 project_image_fid=368000]

Goldfields’ Chief Executive Officer, Lachlan Thompson, said the appointment of <a href="https://www.apartments.com.au/builders/binah-constructions">BINAH</a> marked an important milestone for the project.&nbsp;

“Bringing BINAH on board as our construction partner will allow us to bring our vision for Quartet forward with a team that has a proven track record of delivering high-quality residential projects,” Thompson said.&nbsp;

“We’ve taken a considered approach to progressing the site because we wanted to deliver the whole package. Buyers ultimately back great developers, great projects and great builders, and with Quartet, we’ve made sure all three line up.

“People want certainty, they want to know the project will be built, that the homes will be delivered as promised, and that the developer stands behind the quality of what they create. That’s something Goldfields has built its reputation on over many years.”&nbsp;

[smartcode_project:default project_id=108736 project_image_fid=367993]

BINAH’s Managing Director, Khalil Hafza, said the company was proud to be partnering with Goldfields to deliver Quartet.&nbsp;

“Quartet is an exciting project to bring to life, particularly given the level of detail in the residences and the extensive rooftop amenity planned for the building,” Mr Hafza said.&nbsp;

“Our focus is on delivering a high-quality build that brings that design vision to life and creates homes residents will enjoy for many years.”&nbsp;

[smartcode_project:default project_id=108736 project_image_fid=367999]

The facilities at Quartet have been feared towards the roof, with a&nbsp;25 metre lap pool, spa, sauna and cold plunge, and a communal barbecue area and alfresco.

Town planning was designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and brought to life by Melbourne-based architecture firm Cera Stribley.

<a href="https://www.apartments.com.au/interior-designers/cera-stribley">Cera Stribley</a> Co-Founder and Managing Principal, Dom Cerantonio, said the project responds to both its riverside setting and Brisbane’s evolving urban character.&nbsp;

“Quartet has been designed to sit comfortably within its riverside context, offering a refined take on urban living through well-planned, generously proportioned residences that will stand the test of time,” Mr Cerantonio said.&nbsp;

“An emphasis on natural light, natural textures and carefully selected finishes from timber and marble to premium appliances, creates calm, considered interiors designed for comfort and long-term liveability.”&nbsp;

Construction of Quartet will commence in July 2026, with completion anticipated in Q4 2028.

[smartcode_project_cta:default project_id=108736]

Construction to commence on 131-residence tower designed around wellness-focused living

Goldfields appoints BINAH for Quartet apartments in Milton

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

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

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

Residential Investment

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The former Wallabies and Brumbies captain Ben Mowan has listed his Holland Park investment property in Brisbane's southeast.
Mowan paid $667,000 in 2008 for the 1930s property which <a href="https://www.realestate.com.au/property-house-qld-holland+park-122605326" target="_blank">goes to auction June 4</a> through Space Property agent Adam Nobel.
The flanker played in Brisbane for most of his career but headed to France to play for Montpellier in 2014.
The renovated three bedroom, three bathroom contemporary home has two home office spaces and an extensive covered patio beside the fully fenced terrace garden.
Mowan rented the home listing it for $650 a week in 2013.
He said that the home is a "cracking property".
“It really is a great home for a family or people who love spreading out their living over two levels,” Mowen told the local paper.
“Our favourite space is definitely the open kitchen and servery window onto the large deck.
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Ben Mowen lists Holland Park investment

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Bloomberg has reported on the waning interest Chinese buyers have in Australian property.
<div class="inline-media__unlinked-image"><a href="/images/2016/05/30/488x-1.png" target="_blank">Click to enlarge</a></div>
<div class="inline-media__unlinked-image"><img src="/images/2016/05/30/488x-1.png" alt=""></div>
It has noted in the first four months of the year, visits by potential buyers to realestate.com.au listings in New South Wales state from China declined 25 percent over the same period last year.
Views of properties in Victoria fell 8.9 percent, Bloomberg noted.
Listings in Western Australia saw the biggest drop of 35 percent, according to the portal, which is the nation’s biggest property website.
After many months where developers have failed to secure sellouts, Lendlease sold all 391 apartments of its third and final stage of its Darling Square apartments on Saturday.
The Sydney CBD sales secured around $460 million during a a four-hour period.
The apartments were priced between $630,000 and $3.5 million through CBRE. 
Many were "seasoned property buyers" who have some equity behind them.
The absence of foreign buyers was noticeable compared to the first and second stage sellouts in 2014 and 2015, the Australian Financial Review noted.
The first stage sellout in 2014 by Lend Lease secured the off the plan sellout of all 357 Sydney apartments, with revenue estimates as high as $650 million.
About 25 percent of apartments were sold to offshore ­buyers, the proximity to UTS encouraging purchasing by Chinese families.
Set on the doorstep of Darling Harbour, Haymarket, Chinatown and Ultimo, the initial Darling Square prices ranged from $700,000 for a 50-square-metre, one-bedroom ­apartment to $3.5 million for a 130-square-metre sky home.
This is not to say the Chinese buyers aren't there.
At weekend auction a Monomeath Avenue, Canterbury offering with pool on 1021square metres attracted five registered bidders, who pushed the price well over its reserve of $4.8 million to sell at $5.11 million.  
"There was a lot of Chinese interest, in fact all but the winning bidder were Chinese," selling agent Tom Ryan from Jellis Craig told The Australian Financial Review.
"It was almost as if they were a bit reluctant to buy it - the Chinese are still in the market but they don't seem to be as explosive," he said.
 
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Waning Chinese buying interest in Australian property browsing

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An outcry in Australia against property buying by Chinese investors and tightening of lending by banks has caused them to shift focus to the US residential market, says a recent media report. 
Purchases of residential properties in the US by Chinese investors rose to US$28.6 billion last year from US$11.2 billion in 2010, said a report in The Australian based on figures from the study by the Asia Society and Rosen Consulting Group.
The report looked at how Chinese buying in Sydney and Melbourne had sparked a “public outcry” because of concerns about “speculative real ­estate investment ... that is contributing to bubble like conditions of inflated home prices and pricing out many local residents”.
The shift to the US has also been fuelled by Australian banks tightening lending criteria to Chinese. 
The report said China’s investment in overseas property would slow.
“We believe China’s economic turbulence will create a short-term speed bump for real estate investment overseas,” it stated.
The study also predicted a ­period of increased capital controls, either formally through policy announcements or informally through administrative processing — until the Chinese currency was realigned.
It said those concerns would not spill over into the local real estate market, with key executives arguing that any restrictions would likely lead to a regulation of capital inflows into Australia, and not dry up.
Cushman and Wakefield's head of capital markets for Australia and New Zealand, James Quigley, however had a contrarian view, saying a new wave of Chinese investors would be undeterred by such measures.
Quigley cited moves by large Chinese institutions, including ­insu­rance and asset man­age­ment companies, as well as high-profile developers who dominated initial investing. Their activities would be supported by lesser known, small to mid-cap companies and developers, private equity funds and wealthy individuals, he said
He also noted the number of investment approvals granted over the past three years to Chinese groups had jumped by 416 percent.
“This is a good indication that the Australian government is quite supportive of Chinese capital entering and making investments in Australia,” he said.
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Chinese look to US real estate after bank loan impositions in Australia 

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The fringe suburbs of Warrnambool in Victoria consist of North Warrnambool, Dennington and the Gateway Road subdivisions.
These locations provide an affordable housing option for low to middle income earners as well as good entry level investments, according to valuation firm Herron Todd White's latest property clock, April 2016, a simple broad brush means to indicate where property prices are and where they are headed to.
Warrnambool was at the start of the recovery market for houses, while for units it was at the bottom of the market, according to HTW.
The majority of Warrnambool's fringe suburbs consists of recently built, brick veneer dwellings with house and land packages starting from $320,000 and established dwellings averaging approximately $370,000.
These suburbs are providing good rent returns for investors, with rents ranging from $350 to $450 per week based on the size and age of the dwelling. Agents advise that tenants are preferring these suburbs, which provide newly constructed properties with at least three-bedrooms and two-bathrooms, to those closer to the CBD with older dwellings with a single bathroom.
North Warrnambool appears to be the suburb performing best which can be attributed to the recently completed infrastructure and access routes to the CBD. Long term you would expect a higher capital growth closer to the CBD but these suburbs appear to be able to maintain good rental levels and relatively good affordability. 
Property Observer found a recently sold home in Warrnambool's fringe suburb of Dennington around the average prices mentioned by HTW.
A three-bedroom house at <a href="https://www.realestate.com.au/property-house-vic-dennington-119752087" target="_blank">45 Adriana Crescent Dennington Vic 3280</a> for $345,000, according to RP Data.
 
 
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Victoria's Warrnambool fringes are good entry-level investments: HTW

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GUEST OBSERVER
The debate on negative gearing ahead of the budget and looming elections has only added to the confusion among property investors as the ultimate aim from buying property is to make money, not to lose.
It’s an outdated way of investing to focus solely on negative gearing to build a property portfolio.
To put things in perspective, Labor recently said if elected, it would restrict negative gearing deductions to only new property. The federal government opposes this, asserting that negative gearing should remain with caps being placed on its use.
All of this debate surrounding gearing and lending as the Budget looms has only highlighted the need for diversity in any property strategy. There are a lot of opportunities out there, people just need guidance.
It is important to tailor strategies on a case-by-case basis, rather than a blanket reliance on negative gearing and depreciation because any changes in circumstance, such as sudden unemployment, can turn the property into a burden.
The consulting firm says it employs a range of tactics on behalf of buyers, with opportunities including capital growth, high yield, cash-flow positive, add value, renovations, granny flats, developments and buying new or established properties in regional or capital cities.
We find this approach gives our clients the confidence to build a strong and balanced portfolio that is adaptable to changes and opportunities in the market. Regular portfolio stress checks are also important to ensure ultimate security.
In its first year, Crave has helped clients with property deals worth more than $55 million.
We just purchased a $325,000 property on behalf of a client, a corner block spanning over 790 square metres with rental return of $340 per week. They also have the opportunity to add a granny flat.
Another client recently landed a development block for $825,000, with similar properties now selling for $1 million.
Investors are also starting to look beyond local or usual purchase areas to areas that not only better suit their own financial situation but offer affordability and growth potential.
Now is the ideal time for home owners to check whether the impacts of recent government changes could increase the equity on their existing properties.
We are seeing a lot of opportunities being unlocked, with government rezoning key areas and adding infrastructure such as roads, transport and community facilities.
Debra Beck-Mewing is founder of consulting firm Crave Property Advisory and can be contacted <a href="https://www.craveproperty.com.au" target="_blank">here</a>.
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Negative gearing strategies outdated: Debra Beck-Mewing

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GUEST OBSERVATION
If you’re looking to invest in property, it’s important to understand what gearing is and how you can use it to maximise the returns on your investment.
Gearing is where you borrow funds to invest in property, shares or other types of investments. It allows you to increase the amount you have to invest and offers a range of potential tax benefits.
What is negative gearing?
Negative gearing occurs when the expenses on your investment are higher than the income you receive. As your investment is making a loss, you may be able to offset your expenses against other income such as salary or wages, potentially reducing your tax.
For example, if your mortgage repayments and the costs of managing your investment property are more than the rent you receive from tenants, your property could be negatively geared.
In addition to taxation benefits, negative gearing offers an opportunity to make a long-term profit through capital gains—where the value of your property increases greater than the costs.
What is positive gearing?
Positive gearing is when the rent from your investment property is higher than costs such as loan repayments, interest, property maintenance and rates. It tends to happen at times when rental rates are high and interest rates are low.
Understanding the risks
Negative gearing can be more risky than positive gearing and is only recommended when capital gains are expected in the long-term. If the value of your property falls or interest rates increase, you may need to pay additional costs that aren’t covered by potential tax deductions.
Gearing is complicated and it’s best to talk to a financial planner and accountant for professional advice before making any long-term commitment.
Tax deductions on your investment property
There is a range of potential tax benefits available on your investment property.
Expenses you may be able to claim include:
<ul>
<li>Advertising for tenants</li>
<li>Insurance</li>
<li>Some legal expenses</li>
<li>Body corporate fees and charges</li>
<li>Property agent fees and commissions, as well as travel costs to inspect the property</li>
<li>Land tax</li>
<li>Capital works and decline in value of depreciating assets</li>
<li>Repairs and maintenance</li>
<li>Cleaning, pest control, gardening and lawn mowing</li>
<li>Council and water rates.</li>
</ul>
Some costs can be claimed immediately and others can be claimed as depreciation over a number of years. You’ll need to keep records of all expenses, plus legal records of property ownership for at least five years.
Visit the <a href="https://www.ato.gov.au/" target="_blank">Australian Tax Office (ATO)</a> for the latest information on what you can claim, or talk to your accountant for tax advice that’s specific to your situation.
For more information, <a href="https://www.commbank.com.au" target="_blank">click here</a>.
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Property 101: Negative gearing and tax

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Australians' love affair with property investment could be tested by the continuing slowdown in home prices, and that investors may be second-guessing the validity of negatively geared investments, according to Bank of America Merrill Lynch.
According to the bank, this may be the last property price boom Australians will see for many years, according to a recent article in the Australian Financial Review.
March data shows that median capital city prices rose just 0.2 percent, with annual growth decelerating to 6.6 percent year-on-year. These figures are down from a July 2015 peak of 11.6 percent year-on-year and 11.9 percent in April 2014.
"A period of weaker price growth or outright modest declines is likely to become entrenched over coming years," Merrill Lynch said in a note to clients. 
"We'd expect that such a period could severely test Australians' long love affair with property investment."
Record low interest rates, while initially prompting new entrants into the property market, has left few marginal buyers following the extended period of these conditions.
While diminishing house price growth has not overly knocked household spending or confidence, the bank sees significant oversupply exacerbating the apartment sector in the next 12-18 months, particularly in Brisbane and Melbourne's central districts.
"This will likely be of concern to new investors in this market," the note reads.
"Yet this development is not expected to materially [affect] price performance of detached housing but may [hurt] sentiment towards the property market overall."
Though the bank expects these pockets of apartment price weakness to lead the further deceleration of price growth and building approvals, it doesn't expect this to spill over into the detached housing market, although prices will continue to decelerate over the course of the year.
That said, the over-supply issue could take years to resolve, particularly as falling Australian immigration numbers slow population growth.
Those with negatively geared investment properties may find they need to hold onto these properties for longer to realise adequate capital growth.
"In addition, over this period, they are likely to face regulatory risks from both sides of politics," said the bank, referring to taxation statistics suggesting that, among the 2 million landlords in 2013-2014, one in six individuals were eligible to pay tax, a potential target for government tax policy.
However, thanks to the low interest rate environment, the average rental loss per landlord has declined from $11,000 in 2010-11 to $8,700 in 2013-14.
RBA governor Glenn Stevens recently said that a moderation in house prices was helpful.
The last time the RBA cut rates was in February and May of 2015, and Merrill Lynch argues the property market was one of the only beneficiaries, as price growth leapt in the following months.
Merrill Lynch thinks it unlikely the RBA will cut rates soon, unless a material rise in unemployment jolts the Australian economy.
"It is our view that only a material rise in the unemployment rate should force the RBA's hand - not a, likely transitory, deceleration of inflation or as an attempt to manage the exchange rate," the note reads.
But it's the promise of a slowing growth asset that weighs on the bank's thinking.
"If dwelling and in particular apartment price appreciation is difficult to come by over coming years, new investors may increasingly question the validity of their negatively geared investment," the bank says.
As such, Merrill Lynch remains wary, citing high indebtedness combined with extraordinary monetary policy globally as the reason appetite for property may be diminishing.
"With household income growth soft, the reduced ability to borrow, or at least no further extension of it, will weigh on prices," the bank says.
"This most recent boom in dwelling prices is likely the last one we will experience for some time."
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Merrill Lynch says property slowdown will hurt negatively geared investments

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When buying investment property, capital growth prospects should be prioritised over rental returns, says property expert John McGrath in a recent blog post on Switzer, citing a recent Corelogic RP Data report showing rental growth was slower than capital growth over the past decade.
The report shows that across the combined capital cities, rents have increased by 50.7 percent (or 4.2 percent per annum) over the past decade compared to an increase in capital values of 72 percent (or 5.6 percent per annum), he says. 
Looking at different property types, house rents increased by 50.3 percent while apartment rents rose by 53.7 percent. Drilling down to the cities, the two capitals with the greatest rental increases were Sydney (no surprise) at 59.4 percent and Perth at 54.6 percent. 
"Rental returns are important because they help you with your loan repayments. That’s their primary purpose at the beginning of your tenure of an investment property," he says. 
In most cases, especially in the high value markets of Sydney and Melbourne, the odds are the rent on a newly acquired investment property will not cover repayments or other costs in their entirety so an investor will have negatively gearing. 
Regardless, the rent will still take care of a sizeable chunk of the outlays, thereby reducing the cost of holding the investment property while time does its thing to deliver capital gains. 
However, over time, if one chooses to pay the principal and interest on the investment loan; and rental returns gradually increase year to year, one will eventually get to a point where rental returns do in fact cover the whole mortgage.  And throughout all this, tax benefits such as depreciation, will also have a positive impact. After a bit more time, the rent will start to cover other expenses like strata fees and council rates too. This would take an investor into positive cash flow territory and that’s an excellent place to be – it’s the dream scenario for retirees. 
But that requires good long-term strategy, adds McGrath.
"Many people say interest-only loans are the way to go with investments because they keep your repayments to a minimum. This is entirely true and a good strategy to adopt if your cash flow is tight. But if you want to get to a point where the rent is covering everything, you’ll generally need to start paying some Principal at some point.
"It’s helpful to think about where you want to be in retirement and work backwards from there. But don’t do it alone – sit down with your accountant or financial advisor. You might want to keep your loan at interest-only to keep outlays as low as possible, wait for capital growth; then sell in 10 years for a profit. Another scenario might involve paying the principal and interest to reduce the loan down to positive cash flow as soon as possible, with the intention of creating a strong, debt-free, income-producing asset for life.  
"Your strategy will depend on your goals and the timeframe you have to achieve them. But if there’s one piece of advice I hope you take when buying an investment it’s this – capital growth first, rental return second. Always."
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When buying investment property – capital growth first, rental return second: John McGrath

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GUEST OBSERVER
The CoreLogic RP Data Home Value Index of capital city home prices rose by 0.5 percent in February after a 0.9 percent lift in January. Home prices were up by 7.6 per cent over the year to February.
Dwelling prices rose in six of the eight capital cities in February.
The Performance of Manufacturing index rose by 2 points to 53.5 in February – a near six year high. A reading above 50.0 indicates that the sector is expanding. Production, new orders and exports lifted in February
The economic data continues to surprise on a positive note. The manufacturing sector is now expanding at the fast pace in almost six years. And when it comes to home prices it is a case of modest strength – but more encouragingly price growth is more spread out and not just Sydney and Melbourne centric.
Dwelling prices rose in six of the eight capital cities. But the lift in home prices in Hobart, Adelaide and Brisbane was the icing on the cake. In fact home prices in Hobart have now lifted by 8.5 per cent in the past three months. It seems investors and home buyers are shifting away from the traditional growth markets of Sydney and
Melbourne and looking for more attractively-priced property in other cities.
It is still early days but the perfect outcome would be if the majority of regional areas recorded a lift in dwelling values. The “Rest of State” price index lifted by 0.6 per cent in February, although annual growth is still subdued at 2.2 per cent. This highlights the issues facing policymakers in attempting to manage a very diverse housing market. What we would expect to see is the lift in capital city house prices continues to filter out across the regional towns over the next 12-24 months.
The consolidation in home prices is unlikely to see home building dry up. There is a record pipeline of dwelling approvals that suggest a lot of building work will take place over the next two years - supportive of a lift in activity levels over the medium term.
The rebalancing effect across the economy continues to take place. Manufacturing activity has now expanded for eight consecutive months – marking the longest streak in ten years. More importantly the sub-indices like, production, new orders and exports, are showing a credible lift. No doubt the weaker Australian dollar will continue to support the sector. In addition low resource prices – particularly for oil - are keeping down input costs and also providing a boost to the sector.
<a href="/images/2016/03/Screen%20Shot%202016-03-01%20at%2011.50.38%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/Screen%20Shot%202016-03-01%20at%2011.50.38%20AM.png" alt="" width="814" height="591">
The latest data should ensure that the Reserve Bank continues to remain on the interest rate sidelines. If a rate cut was to take place it would be as a result of a downturn in the global economy rather than domestic economic conditions.
What do the figures show?
Home prices
The CoreLogic RP Data Hedonic Australian Home Value index of capital city home prices rose by 0.5 percent in February after a 0.9 per cent lift in January. Home prices were up by 7.6 per cent over the year to February.
House prices rose by 0.6 percent in February while apartment prices fell by 0.1 percent. House prices were up 7.8 percent on a year ago and apartments were up by 6.2 percent.
The average Australian capital city house price (median price based on settled sales over quarter) was $572,000 and the average unit price was $480,000.
Dwelling prices rose in six of the eight capital cities in February: Hobart (up 2.9 percent), Adelaide (up 1.9 percent, Brisbane (up 0.8 percent), Sydney (up 0.5 percent), Darwin (up 0.4 percent) and Melbourne (up 0.3 percent). Prices fell most in Perth (down 1.1 percent), followed by Canberra (down 0.2 percent).
Home prices were higher than a year ago in six of the eight capital cities. Prices rose most in Melbourne (up 11.1 percent), followed by Sydney (up 9.5 percent), Hobart (up 6.2 percent), Brisbane (up 5.5 percent), Canberra (up 4.5 percent) and Adelaide (up 2.8 percent). Prices fell in Perth (down 3.1 percent), and Darwin (down 2.9 percent).
Total returns on capital city dwellings in the year to February rose by 11.5 per cent with houses up 11.6 percent on a year earlier and units up 10.9 per cent.
 Performance of Manufacturing
The Performance of Manufacturing index rose by 2 points to 53.5 in February – its highest level since July 2010.
AIG notes “February was the eighth consecutive month in which the Australian PMI has been above 50 points (net expansion). This is the longest continuous run of expansion since 2006.”
Across the sub-indices; production (60.1 points), new orders (52.4 points), stocks (52.5 points), deliveries (53.5 points) exports (53.7 points) and sales (53.0 points) were positive in February. Employment (47.4 points), remained in contraction.
What is the importance of the economic data?
The CoreLogic RP Data Hedonic Australian Home Value Index is based on Australia’s biggest property database. Unlike the ABS Index, which excludes terraces, semi-detached homes and apartments, the CoreLogic-RP Data Hedonic Index includes all properties. Home prices are an important driver of wealth and spending.
The Australian Industry Group and PricewaterhouseCoopers compile the  Performance of Manufacturing Index (PMI) each month. The Australian PMI is the Australian equivalent of the US ISM manufacturing gauge. The PMI is one of the timeliest economic indicators released in Australia. The PMI is useful not just in showing how the manufacturing sector is performing but in providing some sense about where it is heading. The key ‘forward looking’ components are orders and employment.
What are the implications for interest rates and investors?
Sydney and Melbourne drove the gains in home prices in 2015. But the two largest cities are likely to come back to the pack over 2016. Overall, we expect returns on home prices across Australia to lift by around 7 per cent in 2016. CommSec expects no change to rates over 2016.
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>
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Regional towns to get boost, as Hobart leads higher home prices: Savanth Sebastian

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New growth stars will emerge in 2016. You’re most likely to find them in Brisbane, Melbourne, regional New South Wales and regional Queensland, although others such as Adelaide and Hobart may put their hands up.
Here are five areas I think are worth watching as we get into the New Year. These are all places that should produce price growth in 2016, on the back of serious momentum with rising sales activity in their markets.
1 Oxenford and the northern growth corridor, QLD: 
The Gold Coast is now the clear national leader among the Local Government Areas of Australia. It has the most growth suburbs, by a wide margin. 
These rising suburbs are found right across Gold Coast city, but the growth corridor stretching north from the Gold Coast towards Brisbane is the standout area, with growth suburbs either side of the Pacific Motorway.
Oxenford stands out, with sales rates lifting from 80-90 per quarter last year to 130-135 in the past two quarters. Other growth suburbs in this precinct include Coomera, Upper Coomera, Pimpama and Ormeau. 
2 Lalor and Whittlesea, VIC:
The focus of Melbourne’s up-cycle has switched increasingly from the middle market to the outer suburbs, where affordability and good infrastructure are key drivers.
The Whittlesea LGA in the northern suburbs is leading the way, headed by the suburb of Lalor (median house price $400,000), where sales rates have increased from around 70 per quarter last year to above 100 more recently. 
Other growth suburbs in this precinct include Epping, Mill Park, Doreen, Mernda and Thomastown. 
3 Beenleigh and Logan City, QLD:
Logan City, which borders the Gold Coast to the south and Brisbane City to the north, has led the revival of Greater Brisbane markets in 2015. 
It has more growth suburbs than any other precinct in the Brisbane metropolitan area, headed by Beenleigh, the administration centre for the LGA, where house sales have increased steadily over the past 12 months or so.
Another standout suburb in Logan City is affordable Eagleby, where sales in the past four quarters have increased from 59 to 65 to 95 to 102.
4 Forster-Tuncurry, NSW:
The Great Lakes LGA in the Mid North Coast region of New South Wales is a standout performer is this latest survey for The Price Predictor Index.
Residential sales in Forster, about 300km north of Sydney, have risen from 106 to 114 to 139 to 152 to 155 in consecutive quarters, while neighbour Tuncurry has recorded a similar pattern.
5 Point Cook and Wyndham City, VIC:
Another example of the emergence of the affordable outer ring suburbs of the Melbourne metropolitan area is Wyndham City in the south-west heading towards Geelong.
A number of suburbs have strong growth trajectories, headed by the developing suburb of Point Cook, where quarterly sales in the past 18 months have been 289, 313, 350, 396, 395 and 420.
Wyndham Vale is another standout market in this precinct, with quarterly sales levels lifting from 85-90 about 18 months ago to around 140 in the September 2015 Quarter.
 
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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