Builder-developer ALAND has drawn back the curtain on its first city-focused new apartment development.

The North Sydney development, <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-173-179-walker-street-north-sydney-nsw-2060">The Walden</a>, is the first time the company has ventured this close to the city, having previously completed thousands of apartments predominantly in Sydney's west, and more recently in Gosford.

<a href="https://www.apartments.com.au/developers/aland">ALAND</a> acquired the prime North Sydney site, spanning Walker and Hampden Streets just down the road from the Victoria Cross Metro station, for $240 million in June.

Now they've unveiled the new project, a mix of one-, two-, three- and four-bedroom apartments across a 30-level building designed by Rothelowman.

[smartcode_project:default project_id=134323 project_image_fid=6384]

The Walden will capitalise on the site’s front-row position on the eastern fringe of the <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> CBD, which offers uninterrupted Sydney Harbour views stretching from the Sydney Harbour Bridge all the way to Sydney Heads.

The main tower will be flanked by a small four-level amenity building known as The Pavilion, offering exclusive resident-only amenities including a dedicated concierge service, a sauna and private wellness studio, a gymnasium and fitness studio, a resort-style rooftop pool and sundeck.

There will also be a&nbsp;residents’ lounge, private dining and a wine cellar, and co-working facilities with an on-site meeting room and boardroom.

&nbsp;

&nbsp;

[smartcode_project:default project_id=134323 project_image_fid=6382]

ALAND Founder Andrew Hrsto said the company knew they could create something "iconic" with The Walden when they saw the site.

&nbsp;

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic – being the last development with a view offering this exceptional.

“We identified the attributes and quality of the site as being perfectly aligned for ALAND – and we feel that this off-market acquisition is a perfect opportunity to showcase our craftmanship and expertise through a truly unique offering."

[smartcode_project:default project_id=134323 project_image_fid=6399]

Hrsto pointed to ALAND’s longstanding development expertise as a significant benefit in delivering a positive outcome for The Walden.

“Being a fully integrated development and construction business with a highly experienced team, we have the benefit of in-house experts across the development spectrum, from acquisitions, design, planning, and construction, to sales, marketing, property management, through to building management.

“As one of Australia’s largest private development and construction groups, we’ve been in operation for 23 years, with a Gold Star iCIRT rating and a 100 per cent delivery success rate across numerous masterplanned and mixed-use projects – and we’re very much looking forward to bringing this expertise to The Walden and contributing to the ongoing revitalisation of North Sydney."

The Walden is the latest development in Sydney to have the 10-year Latent Defects Insurance policy by Resilience Insurance, protecting buyers from any structural or waterproofing-related issues for 10 years post-completion.&nbsp;

Demolition of existing structures on The Walden site has already commenced through specialist civil contractor Moits, with the aim of completing preparatory ground works by the end of 2025, ahead of construction commencement in early 2026.

[smartcode_project_cta:default project_id=134323]

Joel Robinson

ALAND unveils The Walden, North Sydney's latest luxury apartment development

<a href="https://www.apartments.com.au/developers/toga-group">TOGA</a> has opened sales for the final building in Macquarie Rise, its latest mixed-use development in Macquarie Park.

Since launching its <a href="https://www.apartments.com.au/new-apartments/macquarie-rise-122-herring-road-macquarie-park-nsw-2113">Macquarie Rise</a> in late 2023, TOGA has secured over 125 sales in the Herring Road development, to a range of purchasers, from first home buyers to investors and downsizers. Around 65 per cent of purchasers have been owner-occupiers.

TOGA has now launched a new release of one-, two-, and three-bedroom apartments in the final building, Saunders Rise. Many of the apartments feature multi-purpose rooms and offer views of the surrounding greenery. Also part of the release is a series of&nbsp;sub penthouses housed on the upper floors.

[smartcode_project:default project_id=89243 project_image_fid=242696]

&nbsp;

“We’re delighted with the ongoing strong interest in our Macquarie Rise development, which is testament to the need for premium housing in this much-loved Sydney suburb,"&nbsp;Allan Vidor AM, Managing Director at TOGA, said.

"We’re proud to be able to offer buyers a unique product that includes luxury amenities, spacious living areas and flexible layouts, designed to suit all kinds of buyers, from young professionals to families and investors.

“We have long been advocates of Macquarie Park, and once Macquarie Rise is complete, TOGA will have built 1,000 apartments in the area, delivering much needed homes within a thriving precinct. It’s great to see the area become renowned for high-quality apartments, proximity to amenities and green spaces."

TOGA, one of Australia’s few Gold Star iCIRT rated developers, is also handling construction of Macquarie Rise. They are on track to complete the building in 2027.

[smartcode_project:default project_id=89243 project_image_fid=310789]

Macquarie Rise boasts a prime location, placing residents within immediate reach of Macquarie Centre, Macquarie University, and the newly completed Macquarie University Metro, connecting to the Sydney CBD is just over 20 minutes.

&nbsp;

Macquarie Rise residents also have access to Club Rise, an exclusive, residents only lounge designed by luxury hotel designers Stack Studio, offering an abundance of work and break-out areas, a Pilates studio, a gym, and a karaoke room. As well as these premium amenities Macquarie Rise will also feature an impressive podium top 20m lap pool.

[smartcode_project:default project_id=89243 project_image_fid=242695]

“Offering luxury, spacious apartments in a vibrant and well-connected neighbourhood, it’s no surprise that Macquarie Rise remains popular with a range of buyers," said TOGA's General Manager of Sales, Anthony Falas.&nbsp;

"With interest rates tracking downwards, we expect the final apartments to continue to receive high levels of interest.”

Located at 122 Herring Road, Macquarie Park, the development will be delivered in partnership with Baptist Union NSW and Morling College with a value of over $400 million.

&nbsp;

[smartcode_project_cta:default project_id=89243]

TOGA launches final stage apartments in Macquarie Rise

Southern Cross Station anchors the western end of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a>’s CBD, connecting metropolitan and regional rail with tram and bus interchanges in one of the city’s busiest transport corridors.&nbsp;

Just metres away, <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a>&nbsp;will place residents in the heart of the city, with immediate access to Spencer Street trams, a growing mix of retail, hospitality and cultural venues, and a neighbourhood evolving into a lively residential precinct.

Developed by <a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a>, the 68-level project integrates a sculptural glass tower with the heritage-listed Eliza Tinsley Building on a 2,765 sqm Bourke St site.&nbsp;

[smartcode_project:default project_id=509 project_image_fid=335425]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the development replaces a previously approved scheme for 813 apartments with a refined offering of just over 600 larger-format residences, responding to a growing owner-occupier demand for spacious city living.

The location sits within a dynamic pocket undergoing significant transformation. Marvel Stadium and the Docklands waterfront are less than 10 minutes away on foot, offering both sports and leisure attractions.&nbsp;

Bourke Street Mall, Queen Victoria Market, and the State Library are all within walking distance, while Flagstaff Gardens, Melbourne’s oldest park, provides a green escape just to the north.

&nbsp;

[smartcode_project:default project_id=509 project_image_fid=335422]

Proximity to some of the city’s largest employers and education hubs, including the courts precinct, legal chambers, RMIT, and major hospitals, makes 640 Bourke Street an appealing residential address for professionals, families and students alike.

Education opportunities span all levels. Nearby, Haileybury City Campus offers private schooling just a short walk from 640 Bourke Street. Just beyond the CBD fringe, Carlton Gardens Primary School, one of Melbourne’s oldest state primary schools, and Docklands Primary School provide convenient government schooling options.

Higher education is equally accessible. RMIT University’s city campus spans multiple buildings just a few blocks away, while the University of Melbourne’s Parkville campus is easily reached via tram along Swanston or Elizabeth Streets.

Victoria University’s City Queen campus, focused on law and business, is also close by, positioning 640 Bourke Street within walking distance of three of Melbourne’s major tertiary institutions.

[smartcode_project:default project_id=509 project_image_fid=335426]

The neighbourhood’s retail tapestry continues to evolve into something distinctly local and walkable. Just steps away, Woolworths Metro on Bourke Street ensures that everyday essentials are easily within reach.&nbsp;

For larger shopping trips, Spencer Outlet Centre on Spencer Street and QV Melbourne on the opposite side of the CBD broaden the offering with supermarkets, fashion, dining and specialty stores.

The lane-to-lane vibe unfolds beautifully in nearby arcades and alleys. Hardware Lane, with its European-style red-brick paving and alfresco dining, pulses with jazzy evenings and casual lunches.

A few minutes north, Howey Place and Centre Place offer leafy, boutique-lined lanes where hidden cafés and niche retailers congregate under historic glass-covered cloisters.

Completing this tapestry is the newly opened Mecca “beauty playground” on Bourke Street. Spanning 4,000 sqm over three levels, the flagship blends immersive retail within an art-deco heritage setting.

&nbsp;

[smartcode_project:default project_id=509 project_image_fid=335427]

This finely grained network of shops, eateries, arcades and service outlets defines the everyday lifestyle at 640 Bourke Street - further enriched by over 3,000 sqm of resident amenity including a Turkish-inspired pool, gym, co-working rooms and private cinemas.&nbsp;

Apartments are priced between&nbsp;$640,000 and $3.95 million. Off the plan stamp duty concessions available until October 2026. Prospective buyers can visit the on site display gallery which has&nbsp;fully built one, two, and three-bedroom apartments.

[smartcode_project_cta:default project_id=509]

640 Bourke Street: A heritage address at the heart of Melbourne

Lower North Shore development specialists&nbsp;<a href="https://www.apartments.com.au/developers/abadeen-group">Abadeen</a>&nbsp;has topped out its new local apartment development,&nbsp;<a href="https://www.apartments.com.au/new-apartments/northcote-collective-naremburn-2-6-northcote-street-naremburn-nsw-2065">Northcote Collective</a>.&nbsp;

Located in the tightly held suburb of <a href="https://www.apartments.com.au/developments/naremburn-nsw-2065">Naremburn</a>, Northcote Collective is a collection of just 58 one-, two-, and three-bedroom apartments designed by award-winning architects Rothelowman.&nbsp;

The building is just a five to 10 minute walk from the heart of Crows Nest and the new&nbsp;St Leonards and Crows Nest Metro stations. Abadeen has also brought doorstep convenience, with a ground-floor retail offering on Northcote Street.

Northcote Collective is being delivered by&nbsp;<a href="https://www.apartments.com.au/builders/decode">Decode</a> — an iCIRT-rated construction company well regarded in the new development industry.

[smartcode_project:default project_id=114189 project_image_fid=272840]

“This is an important and exciting moment for Northcote Collective, and we’re proud to celebrate this milestone with our partners, consultants, and future residents,” said Justin Brown, Executive Chairman and Founder of Abadeen.&nbsp;

“From the outset, our vision was to create something truly special for Naremburn — homes that respect the character of the neighbourhood while elevating the standard of Lower North Shore living. With connectivity to transport, retail on the doorstep and a true village lifestyle, this milestone also comes at a perfect time when buyer confidence is returning to the market. I am incredibly proud of our team and of Decode for their dedication in helping us bring this vision to life.”

[smartcode_project:default project_id=114189 project_image_fid=272865]

The development is two-tiered, with two rooftops for residents. The taller building has an impressive rooftop pool, a rare inclusion in the new Sydney apartment market. The level, with panoramic views, also includes an entertaining terrace with barbecue facilities.

Local downsizers and young professionals are showing the strongest interest in the development, with recent improvements in the property market — supported by three rate cuts in 2025 — boosting borrowing power and buyer confidence.

Auction activity across Sydney surged by almost 30 per cent in recent weeks, with clearance rates above 70 per cent — signalling a renewed wave of buyer demand.

Northcote Collective will welcome buyers in 2026.

[smartcode_project_cta:default project_id=114189]

Abadeen tops out Northcote Collective in Naremburn

Sunshine Coast-based <a href="https://www.apartments.com.au/developers/devcon-property-group">Devcon Property Group</a> has acquired one of Maroochydore’s most prominent development sites for $12 million unlocking the potentialfor a mixed-use project in the Cotton Tree precinct.

&nbsp;

The 4,178 sqm site at 41–43 Aerodrome Road—well known locally as the former home to one of Australia’s last Sizzler restaurants—was sold via an off-market expressions of interest campaign by Colliers agents Nick Dowling and Baydn Dodds. More than 70 targeted buyer groups were approached, resulting in multiple competitive offers for the property.

Devcon Property Group Managing Director Michael Kain said the acquisition was a strategic move in line with the company’s focus on delivering high-quality projects in prime coastal locations.&nbsp;

“We’re excited about the possibilities this site, in one of the Sunshine Coast’s most iconic beachside &nbsp;communities, offers for a broad range of development outcomes,” Kain said.

“Its location, ocean view potential, and proximity to the Maroochydore CBD and beach make it an &nbsp;outstanding development prospect. Our plans are to refurbish the existing building and then review &nbsp;development options for the remainder of the site.”&nbsp;

<img alt="Aerodrome Rd site overlooking Beach (Large)" data-entity-type="file" data-entity-uuid="a29dc4ed-68c1-4bec-a4fc-283063dcde1e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Aerodrome%20Rd%20site%20overlooking%20Beach%20%28Large%29.jpg?VersionId=b0WxJWevmLoAfCP4YvGImZpR3rSCJJ9L" />

Colliers Special Projects Manager Baydn Dodds said the sale reflected the ongoing strength of the &nbsp;Sunshine Coast’s development site market, particularly for projects capable of achieving water views. &nbsp;

“Sites of this scale, in walkable beachside locations with ocean views, are tightly held and continue to attract significant interest from both local and national developers,” Baydn Dodds said. &nbsp;

“Holding a prominent position as the former home to one of Australia’s last Sizzler restaurants and more recently occupied by Rashays, the prime site is located just 150 metres from Maroochydore Beach.&nbsp;

“With stunning ocean view potential, located in one of the Sunshine Coast’s best known iconic &nbsp;beachside communities, within steps of shops, cafes and the beach it is no surprise that there was strong interest in the site. The transaction highlights the ongoing depth of demand for well-located &nbsp;mixed-use sites across the Sunshine Coast.”&nbsp;

Colliers Sunshine Coast Managing Director Nick Dowling said the transaction reinforced the &nbsp;Sunshine Coast’s status as one of Australia’s most active development markets.&nbsp;

“The combination of strong population growth, lifestyle appeal, and infrastructure investment is &nbsp;driving demand for quality development opportunities,” Nick Dowling said. &nbsp;

“The Sunshine Coast is one of only three markets nationally to record an increase in crane numbers, &nbsp;reflecting the strength of the region’s construction pipeline.&nbsp;

“Opportunities like this are rare and continue to generate strong buyer interest in the region.”&nbsp;

The Sunshine Coast development market is booming, with several high-profile developers like Cube Developments, Gardner Vaughan Group, and RCQ, planning developments in the region.

Devcon buys Sunshine Coast’s former Sizzler site for new apartment development

Todd Hunter

<html><body>
GUEST OBSERVATION
My most read and commented on blog was <a href="/news/i-d-rather-stick-a-fork-in-my-eye-than-buy-nras-todd-hunter">my thoughts on the NRAS “scheme</a>”.
Well, I can say I was right and the story of this “scheme” only gets worse I’m afraid.
Earlier this year I had a client call me and let me know her NRAS property in Sydney that she purchased through another property company had been trashed. She only found this out after not receiving rent for two months. This sparked her to inspect the house to find they had fled the house and left it damaged along with rubbish everywhere.
When she investigated it further, she found that four bedroom house had eight people living in the house. The lease agreement was only approved as having four people living there. The consortium managing the property had not done any of the required property inspections, like they had said they would do.
And funny enough, they now don’t return her phone calls.
So after spending several thousands of dollars in repairing and cleaning the house, they thought they may want to sell it. The bad experience had put a foul taste in their mouth. I offered to refer her to a friend who is an agent, who works in the area and they have done an inspection. Now the fun begins…
The agent gave them what they believed to be fair market value price in a strong Sydney market and this dollar figure was still $80,000 less than what they paid for the house.
So, now they have a house that has been trashed, now vacant and worth far less than what they paid for it.
Could it get any worse?
Yes it can.
Now I don’t know the reasons why, but it would appear that the government department responsible for NRAS has amalgamated with another government department and as a consequence many (and quite probably all) of the tax refunds for NRAS were not paid for the last financial year, due to a software glitch that they couldn’t repair.
These payments amount to close to $10,000 per annum that the investor is supposed to receive back in compensation for letting out their property 20% below market value.
To make it even better, they have no ETA on when the problem will be fixed, if at all.
This was money these investors could have really done with to help pay for the trashed and damaged property they have been left with.
So I am sorry, but have I missed the positives of NRAS?
TODD HUNTER is a buyer’s agent, director and location researcher for Sydney-based <a href="https://www.wheregroup.com.au/" target="_blank">wHeregroup</a>.
He reached a personal investment portfolio of 50 properties in 2006 and has also started building an SMSF portfolio.
This article was originally posted on <a href="https://www.wheregroup.com.au/blog/todd-hunter/" target="_blank">Todd's blog</a>.
</body></html>

thunter-umjjMzoT8b

NRAS – you've got to be kidding me: Todd Hunter

<html><body>
GUEST OBSERVATION
The performing Sydney and Melbourne property markets are no secret. They are all over social media and the news.
And for those home owners and investors who have had the great fortune to see their property values skyrocket, what’s next?
Why not take advantage of the fantastic values currently on offer and tap into some of that equity and keep investing?
But what does “tap into our equity” actually mean?
Similar to when you purchased your property, the banks would only allow you to borrow up to so much of the value of that property. This is called your Loan to Value Ratio (LVR). Well, provided you can service the debt at the increased amount (make the repayments), the banks will allow you to increase your loan up to a certain LVR and use that cash for a deposit on an investment property.
The great part about that is, that the increased amount that you use as the deposit on another property is tax deductible, even though the banks used your home as security for the funds.
Why?
Purely because what makes a loan tax deductible is the purpose for which those funds were used.
Like usual, let’s number this out.  
Say three years ago your home was worth $600,000 and your home loan was $480,000. Your LVR is 80% because $480,000 is 80% of $600,000. But in the last three years your home has seen some great increases in value and it is now worth $850,000.
The banks will now allow you to increase your loan to 80% of $850,000. So your new loan would be $680,000. But you only owe $480,000 so there is $200,000 available for you in available funds, in your offset account or in redraw ready for you to use when you locate another property.
Now to keep your accountant happy, it is best to split the $680,000 into two loans, one split for $480,000 and the second as $200,000. That way your accountant can easily work out the interest on the loan that they can claim on your tax each year.
Obviously, this is how we would structure your loan and explain all this to you as we go.
At the same time as arrange the extra cash for you to use as a deposit, we would arrange a pre approval for you so that you could purchase an investment property.
Even if you have some extra money paid off your home loan, do not use this but instead continue to make the extra repayments on your home loan to pay this off first. Simply because this debt is not tax deductible.
You should restrict the maximum amount you aim to spend on an investment property, and that should be nowhere near the value of your home.
Even as a professional investor I don’t spend over $425,000 on a property. My last four purchases were for:
<ul>
<li>$410,000 – ACT</li>
<li>$40,000 – in the USA</li>
<li>$356,000 – QLD</li>
<li>$134,000 – Tassie</li>
</ul>
The advantages of spending less are:
<ul>
<li>Diversify</li>
<li>Less to lose, if by some chance everything turned pear-shaped (always invest with worst case in mind)</li>
<li>Potentially be able to invest in different markets and take advantages of different property cycles</li>
<li>Baby steps – especially if this is your first go, I see couples where one of them wants to invest much more than the other, and it’s not worth fighting over. You’ve only got one life and it ain’t no dress rehearsal. (Sorry if I just went all Dr Phil on you)</li>
<li>Yields are generally more attractive and the properties will pay for themselves</li>
</ul>
So back to the story, we have set up a pre-approval at the same time for you for a purchase price of $375,000. The loan would be for $300,000 which is an 80% LVR.
But there are some set up costs along the way to, for example:
<ul>
<li>Stamp duty – varies state to state</li>
<li>Legals to purchase</li>
<li>Building inspection report</li>
<li>Pest nnspection report</li>
<li>Depreciation schedule report – for tax purposes</li>
<li>Government charges</li>
<li>Buyers agent fees – because you will want me to buy you a property</li>
</ul>
The great thing here is that you can pay for all these from the $200,000 loan you have already set up.
Yep, that’s right nothing from your pocket and the interest these fees attract on that loan is also tax deductible.
Now to make that transaction work you only require around $100,000 and you have borrowed and extra $200,000, meaning you have the option later on to possible purchase a second investment property. But by tapping into the equity now whilst the values are high, could give you the option at a later date. When values go through a correction you may not get that privilege. And you only pay interest on the money that you have used, e.g. the $100,000.
Now, not everyone is in a position to tap into their equity and invest, as they may have borrowed 95% of the purchase price when they recently purchased.
What you may have been experiencing, is that there are some much better interest rates on offer. They can be as much as 0.5% better.
So what can be done about this?
Firstly, interest rates are now allocated as rate for risk, meaning those higher risk borrowers to the banks are not on the same interest rates as those borrowers who own 20% or more of their properties.
And this risk is judged on the value on the day that a valuer puts a dollar figure on your property. So as we have experienced some great growth in the Sydney and Melbourne property market, you may now find that you do own 20% of the property value now.
But be quick, because this great market isn’t going to stick around much longer and you want to capitalize on the maximum value you can achieve.
TODD HUNTER is buyer’s agent, director and location researcher for Sydney-based <a href="https://www.wheregroup.com.au/" target="_blank">wHeregroup</a>.
</body></html>

Time to tap in to some equity and keep investing: Todd Hunter

<html><body>
GUEST OBSERVATION
It’s no secret that when I invest I am looking for a bargain.
In fact, I am looking for the property owner who needs to liquidate and exit from their property (either home or investment) fast and take a significant loss in the process.
But with interest rates at historic lows, this task can become a lot tougher and probably more difficult, as we look like having another interest rate drop or two.
That said, it may surprise you that even in an awesome property market, like what Sydney is experiencing right now, that 2.7% of all property sales were sold for less than what they were paid for.
And if we were to include entry and exit costs like:
<ul>
<li>Stamp Duty</li>
<li>Legals to purchase</li>
<li>Loan application fees</li>
<li>Transfer registration fees</li>
<li>Mortgage registration fees</li>
<li>Building reports</li>
<li>Pest inspection reports</li>
<li>Depreciation Schedules</li>
<li>Ongoing council rates</li>
<li>Ongoing water rates</li>
<li>Legals to sell</li>
<li>Real estate sales commissions; then this percentage would probably be more like 15%.</li>
</ul>
Now, ‘time in market’ could, and can, play in whether you make a profit on a property or not. But that said, 3.2% of those sellers who owned their properties for between 10-15 years sold for a loss. Work that one out.
I know who would be happy, those Sydney purchasers who made it into the 2.7%.
But I thought property prices never went down? Ha, try and tell that to these old owners.
Now the vast majority of property sale losses occurred for owners who only owned their property for three to five years (18.2%) and five to seven years (15.6%).
Basically from the global financial crisis (GFC), but not limited to.
Now not to pick on Sydney, but they got off the lightest. Their percentage of losses in sales were low, but the number of property transactions are high.
Nationally the numbers are scarier, with 9% of all sales making a loss for the June 2014 quarter. That’s 6,332 property owners across Australia who sold their property for a loss within that three month time frame. Units in Cairns, Queensland and Widebay, South Australia were the worst performers though, with close to 50% of sales losing money.
And backing what I have been yabbering on about for many years now, are the oversupply of units in Melbourne, with 18.3% losing money. That’s almost one in five properties sold for a loss. It’s an interesting figure given the buoyant property market there currently.
So, what’s the point in all this?
In trying to locate a deal on a property purchase, they are still there, but you need to be more diligent on your research to find these awesome deals. They are still around in ‘hot’ markets like Sydney and Melbourne but are much more prevalent in cooler markets like Adelaide or ACT.
For our recent investors though, in locations like the Gold Coast (15%), Bunbury (15%), Wyong (7.8%) Mandurah (18.9%) Armadale (6.4%) and Townsville (27%), you can be happy knowing that we have located deals for you in these small percentiles of owners who made a loss.
TODD HUNTER is buyer’s agent, director and location researcher for Sydney-based <a href="https://www.wheregroup.com.au/" target="_blank">wHeregroup</a>.
</body></html>

Sometimes, someone else's loss can be your gain: Todd Hunter

<html><body>
GUEST OBSERVATION
So two weeks ago I babbled on about how <a href="/expert-insights/time-for-a-reality-check-property-prices-certainly-can-and-do-go-down">Sydney property prices will go down in value</a> and how many property buyers live in a fantasy world where they don’t think it will or has ever decreased.
So I thought I would go into one Sydney suburb, diagnose the stats and show you that it can be a reality for this suburb.
There was no science in choosing Castle Hill as the suburb of choice. I didn’t troll through pages and pages of data to choose this particular suburb though.
Looking at the latest CoreLogic RP Data stats as at September 2014, <a href="/news">Castle Hill</a> has a median house price of a whopping $982,000.
Yep that’s right, its going to cost you just shy of a $1 million to buy in Castle Hill. In fact, it will probably cost you more. Even a three bedroom unit sold over weekend for $920,000. Yes, a unit.
According to CoreLogic RP Data it has grown in value 19% in the last year and 49% over the last five years. So in English, in 2009 you could buy in Castle Hill for $650,000.
With an average ‘days on market’ of 29 days, it is showing that the market is still red hot. So I would assume that we will see the magic million mark passed by Christmas, if not already.
Yields have failed to keep up, like many Sydney suburbs. They do their best work in a quiet market where no new houses are being built and the supply dries up. That said, the median rent is $650 per week.
So forget investing there, with a yield at 3.4% you can achieve this in a bank account without the risk. It’s one of those suburbs where it is cheaper to rent than to purchase! And the volume of sales, 576, shows significant numbers that can be relied upon. Be wary of sale figures in a low sales volume environment.
Now we need to add some income and other fun facts into the mixing bowl from the 2011 Census. Of all the working families, 41% had one major breadwinner whilst the other partner either worked part time or not at all. The suburb averages three people per dwelling and they own two cars.
The median family income is $2,059 per week – that’s a tidy $107,068 per annum.
But hang-on, that’s the whole household income and that’s gross before tax. So take home in hand is $1,487 per week, well for 41% of families it is.
Now lets go back and look at the house figures again and put the income and other stats in.
Let’s stick with the median house price at $982,000. If you were to purchase with a 20% deposit you would require around a $230,000 deposit and have a loan for $785,600. With an interest rate of 4.8% the principle and interest payments it equals $951 per week over 30 years.
That’s a whopping 63.9% of your net income per week going towards your mortgage. Does that sound like it makes financial sense? Better hope interest rates do not ever go up, or that you have a child, or both. That’s a recipe for bankruptcy.
But hang on, wasn’t the average people per household three? Oh, so they do want to have a family and a house in Castle Hill. Uh oh.
Now I have gone and checked with the banks that they would even lend you the money, and I can confidently tell you that even the banks are not that crazy. So if that’s the case, then how are people affording to buy these properties if the banks wont give them a loan that size?
Well, there are possibly several answers here:
<ul>
<li>They have larger than 20% deposits</li>
<li>They could be investors from other suburbs, so their incomes are different</li>
<li>The lower incomes earners may have owned property for a while when prices were lower</li>
<li>The higher income earners are buying the properties today</li>
</ul>
As the median income is the middle income achieved in the area, this means there are certainly income earners on a higher income than $107,000. It is more than likely these people, who are on incomes of $135,000 or higher, who are purchasing properties at this level. Doing some numbers here on servicing and income categories, it is those families in the top third percentile that could only realistically afford properties at this level. 
But hey, let’s go crazy and pretend interest rates will go up (we all know that never happens) and let’s say they go up to 8% – that same scenario above with the higher income earner at $135,000 can no longer afford to get that loan.
Can they afford to make the loan repayments though?
$785,600 principle and interest at 8% equals $1,329, which equates to 73% of their income, which leaves them $485 per week for:
<ul>
<li>Food to feed a family of three</li>
<li>Fuel for two cars</li>
<li>Rego</li>
<li>Council &amp; Water rates</li>
<li>Alcohol and possibly cigarettes</li>
<li>Bills</li>
<li>School fees</li>
</ul>
So it could potentially be done, but you would be living on bread and water and in reality this family would go bankrupt.
Remember my tip: Always do your sums on 9%.
And the figures are telling me that this is going to be a common story for Castle Hill in the coming years.
The numbers are leaning towards a suburb that is living well beyond its means and I would say that there a little of the “keeping up with the Joneses” going on here too and that’s a recipe for one mighty price correction.
TODD HUNTER is buyer’s agent, director and location researcher for Sydney-based <a href="https://www.wheregroup.com.au/" target="_blank">wHeregroup</a>.
Picture of a Castle Hill house courtesy of Wikimedia Commons.
</body></html>

Falling down Castle Hill: Diagnosing a suburb living way beyond its means

<html><body>
GUEST OBSERVATION
In the past few weeks, I have spoken to several people who all think that property prices never fall and will only plateau. 
One guy even convinced himself that house prices didn’t go down in the global financial crisis (GFC). 
Wow, memories are short lived and the power of current day marketing can sure twist and make people believe whatever they publish. 
It’s scary to think that people are so naïve to think property always goes up. Look at historical numbers, it’s not the case. In fact Google it and see for yourself. 
Now some may call me a 'doomsdayer', but nah, I’m a realist who has lived through two major price corrections in the property market, along with a few smaller ones too. 
I’m sure the owners and investors on the Gold Coast would agree with me. The GFC took a hard hit on this region, in particular places like Hope Island, with the median house price dropping 19% over four years. Yes that’s right, for four years the house prices keep reducing. Even today, they are still not back to 2009 levels. 
We all remember the huge unprecedented WA boom of 2005-2007. House prices in Wannanup (Port Bouvard) dropped 17% in two years. So think about it this way, your $60,000 house is now worth $500,000 two years later. 
But given that Sydney is immune to this, lets look at Caringbah (where I live). The median four bedroom houses in 2010 was $997,500 and then it went down to $884,500 in 2012.
Huh? No way, it can’t go down, Caringbah. In Sydney. Must be a misprint.
No – it did drop, and dropped by 11% in two years, only two years ago. 
Sure, prices have since jumped again and surpassed previous levels but there were many who realised that loss. Remember, the median can only be calculated by actual sales, meaning many in Caringbah sold cheap for those two years. 
We have been purchasing houses in Brisbane that were sold to investors in 2007 for $460,000 and seven years later we are picking them up for $360,000 – $375,000. That’s a lazy $100,000 loss plus stamp duty and legals and real estate sales commissions, so it’s more like $130,000. Or around a 22% drop in value. 
Units have a similar story. Don’t be the owner of a two bedroom unit in Crestwood NSW (near Canberra) as they have had negative growth for over three years totalling 16%. 
Now I can already hear some of you saying “well you only lose if you sell”. Well yes, if you like to sell it to yourself that way then that’s fine, but the value of your property has reduced. 
Let’s explain it in a different way – if you had $460,000 in a cash management account and then seven years later you only had $360,000 would you think about it the same way? I don’t think you would; the same way self-funded retirees don’t.
Now the figures I have quoted are on house sales or actual experiences and not the general median house price. The reason is because the general median house price is incorrect. I have<a href="https://www.wheregroup.com.au/the-median-measurement-is-misaligned/" target="_blank"> written this previously</a>.
Well, the winners of this huge upswing in houses prices, particularly Sydney property owners, are those who are selling or those who are taking advantage of higher valuations and using the equity to invest in more property. But not those home owners who sell and buy in the same market, they are virtually in the same place. 
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
Those buying now in Sydney are nothing short of crazy in my opinion. Even if Sydney continues to rise a little more, all that means is the correction will hurt even more. Historically low interest rates and borrowing to your maximum borrowing level is suicide. Rates are going to go up at some stage. 
Now if you have been living in a cave lately and not up to date on whats going on in the Sydney/ Melbourne markets, let me explain.
List prices are set by real estate agents as the properties fairly true value. Negotiations generally take place from there, downwards. But of late, the list price is a starting guide to head upwards from. Auctions see the hammer falling far beyond the reserve price and by all accounts foreign investment is also driving prices above where they should be. 
Looking at that practically, when you pay more than retail, are you not buying your own future capital growth? 
In what world does that make sense? 
It seems I am not the only one here either. Bank of Queensland (BOQ) recently announced it is restricting all lending for Sydney and Melbourne securitized loans. All of the majors have tightened their belts in relation to investment lending and high LVR loans are more and more difficult to get approved. 
It would appear the hierarchy hob knobs are also getting a little nervous.
But it’s not the same picture in all capital cities, so here are my thoughts on each of them: 
<ul>
<li>Sydney – Don’t touch, not until interest rates are over 7% and prices drop dramatically. </li>
<li>Melbourne – Don’t touch, major oversupply issues in many markets. Not sure when it’s a good time to re-enter at this stage. </li>
<li>Adelaide – some good buys but yields are low.  </li>
<li>Hobart – some good buying, timing is right but stay to low purchase prices under $250,000.  </li>
<li>Darwin – sorry haven’t researched of late but never found anything worth while buying up there.  </li>
<li>Canberra – timing is right but be wary of oversupply issues in Gungahlin area.  </li>
<li>Perth – coming off the boil. Some opportunities will start to reveal themselves soon.  </li>
<li>Brisbane – Market is hitting full swing, still some good buying opportunities but you must be Johnny on the Spot and make quick decisions.</li>
</ul>
So be smart, don’t be a statistic! Do your numbers on a minimum 9% interest rates and if you can afford the mortgage at that level then you should be fairly safe to proceed. That is, of course, that your own personal circumstances don’t change in the future. 
And don’t kid yourself that interest rates wont go up. From late 2010 til early 2012 (18 months) they were over 7% and from early 2008 til early 2009 they were almost 9%. That’s twice in the last six years. 
Now, I know I am just barking and no-one is going to really pay attention to this… blah blah blah… but when I invest: 
<ul>
<li>I do my numbers at principle and interest at 9%. </li>
<li>Invest with an exit strategy in mind as you never know what life throws at you. </li>
<li>Always have rainy day money aside.</li>
</ul>
So I guess time will tell, one thing I know is, that I will be cashed up ready to pounce for when rates go up and Sydney house prices go down.
TODD HUNTER is buyer’s agent, director and location researcher for Sydney-based <a href="https://www.wheregroup.com.au/" target="_blank">wHeregroup</a>.
He reached a personal investment portfolio of 50 properties in 2006 and has also started building an SMSF portfolio.
</body></html>

Time for a reality check: Property prices certainly can, and do, go down

<html><body>
GUEST OBSERVATION
We have had a client that has had their loan declined in recent times due to the minutest details and strange circumstances.
Let me paint a picture – They are existing clients with one of the majors and they have an investment loan, credit card and savings account all with the same bank. So they are loyal bank clients.
Being very diligent with their money, they put everything they earnt onto their home loan and left a small amount in their savings account to live off. Then when their loan repayment was due, they would redraw money from their home loan account and put it back into their savings account. The bank then direct debited their loan repayment from their savings account.
A small oversight saw their savings account overdrawn by $100 with a direct debit they forgot about.
So now, when they applied for a new loan, we obviously went with that same bank and the $100 overdrawn account sent a red flag to the lender.
Upon further digging, they then assumed that these clients were redrawing funds to simply make their loan repayment. Now this was true, but only because they were putting everything onto their home loan to save on their interest, but the lender did not see it this way.
Even though they had over $80,000 in their redraw.
It does beg the question as to why the bank allowed them to over draw a savings account in the first place? If there is no money in the account, then they shouldn’t be able to access credit. Were they ever approved for this credit? Was there an application? I think not.
There was also no practicality taken into account for this decision; it was a pure black and white policy that they adhered to. As a consequence, they lost that client and will now lose all their business in the near future.
And it’s this kind of stupidity that clients remember for life.
So what can you do to ensure you have everything up to scratch when you apply for a loan? 
<ol>
<li>Make your everyday account an offset account, that way there is no shuffling of money. 
</li>
<li>Always have a buffer in your working accounts – lenders frown upon overdrawn accounts now with the new credit reporting. 
</li>
<li>Regular ATM withdrawals from clubs and pubs (if you love a beer or a punt, then get your cash out from the banks ATM’s prior), lenders see everything now. Think twice before you withdraw funds at these type of establishments. Not to mention, it will also save you the $2.50 plus ATM fee. 
</li>
<li>Credit cards, do not go over your limit, another big no no. Regardless of whether you pay the whole credit card off at the end of the month, as soon as you start going over your limit, it’s a red flag and even the best of applications get declined for this reason alone. 
</li>
<li>Any bills that are late, even your phone bills, by more than five days etc, these are all recorded on the new credit reporting system. So if you think you are winning by paying late, be prepared for a surprise the next time you apply for a loan. Regardless of what you earn. 
</li>
<li>If you do move money around a lot to save interest, then set automatic transfers in case you forget.</li>
</ol>
So, I guess the moral of the story is pay your bills on time, every time.
TODD HUNTER is buyer’s agent, director and location researcher for Sydney-based <a href="https://www.wheregroup.com.au/" target="_blank">wHeregroup</a>.
He reached a personal investment portfolio of 50 properties in 2006 and has also started building an SMSF portfolio.
</body></html>

Six tips to make sure everything is up to scratch when you apply for a loan

<html><body>
GUEST OBSERVATION
I never in my wildest dreams thought that I would be able to buy quality property in Sydney under $300,000…
But the GFC awarded me this moment in time that we absolutely took advantage of it. <a href="/news">Campbelltown </a>(Macarthur Shire) was the spot.
But why Campbelltown? It made for some great buying, simple!
The south-western Sydney location had all the ingredients of a great investing location with a fast growing population, great accessibility to employment in Sydney CBD or growing commercial and industrial sectors in Minto and Hoxton Park through either the M5 freeway or by train.
The last key ingredient was the GFC. This caused house prices to drop dramatically and consumer confidence to go out the window, allowing me to have no competition with other buyers and allow for some pretty low offers to secure some great deals.
This all happened for us in 2009. I was that confident in the area that I purchased eight properties there. Well, that’s all the past and now is what we want to all hear about, the results.
I am glad to say that we have had a few investors recently sell their properties in Campbelltown for what I would call “very impressive” results.
We were that confident, we even filmed the first property to be auctioned and it went better than expected!
The reason for some of our clients selling is to grab the profits they made from their investment property and pay down their home loan in a lump sum. Imagine having a home loan for $300,000, being able to drop $100,00 plus onto it in one go, making it $200,000.
Wouldn’t that increase your cash flow dramatically?
With a quick loan re-adjustment, it sure would!
But, you don’t stop there – now your cash flow has increased along with the available equity in your home, you go back out and buy two or three properties.
When two of those properties mature in value, you do the same and pay off your home loan in full!
Since this, we’ve had another great result with a client selling their house we purchased for $298,000 and sold for $412,000. 
Back to the story, I congratulate these investors doing what most wouldn’t – invest when everyone else ran away and they will reap the rewards for doing so.
TODD HUNTER is buyer’s agent, director and location researcher for Sydney-based <a href="https://www.wheregroup.com.au/" target="_blank">wHeregroup</a>.
He reached a personal investment portfolio of 50 properties in 2006 and has also started building an SMSF portfolio.
</body></html>

Todd Hunter

Editor's Picks

Have something to contribute?

The latest real estate & off the plan properties & news, delivered to your inbox.

Developments

New apartments

New townhouses

News

The latest real estate & off the plan properties & news, delivered to your inbox.

Todd Hunter

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

The latest real estate & off the plan properties & news, delivered to your inbox.

Developments

New apartments

New townhouses

News

The latest real estate & off the plan properties & news, delivered to your inbox.