The final apartments in the most recently completed new development in Balwyn present some of the largest and most exclusive ever delivered in one of Melbourne’s most established and character-rich neighbourhoods.

Boutique developer&nbsp;<a href="https://www.apartments.com.au/developers/wulff-projects">Wulff Projects</a>,&nbsp;alongside partner <a href="https://www.apartments.com.au/developers/pga-group">PGA Group</a>, has just finished <a href="https://www.apartments.com.au/buildings/threadneedle-balwyn-1-5-threadneedle-street-balwyn-vic-3103">Threadneedle</a>, 17 home-sized residences designed completely for the owner-occupier.

Named after its location on Threadneedle Street, the new project has been shaped by the heritage fabric of Balwyn. It offers two low-rise buildings of eight and nine apartments respectively, designed to emulate traditional standalone homes.&nbsp;

[smartcode_project:default project_id=27816 project_image_fid=355582]

John Scaramuzzino, Director at <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, explains the design intention.

“Given the quiet residential character of the street with many homes dating back to the 1930s and 1940s, we approached Threadneedle wanting to appear less as a collection of apartments and more as a traditional residence. This led to creating not one but two buildings that could “breathe” with larger garden-based apartments functioning more like small homes.”

[smartcode_project:default project_id=27816 project_image_fid=355605]

The north-facing residences are nestled among extensive landscaped gardens by Ben Scott Garden Design, with over one-third of the site dedicated to greenery. The resulting setting is one of calm seclusion, where architecture and landscape work in tandem to offer immediate liveability.

With construction now complete, the final apartments include a top-floor, single-level penthouse residence priced from $2.8 million. This home offers three bedrooms, a dedicated study, two bathrooms plus powder room, and three car spaces with an oversized storage room.&nbsp;

Interiors prioritise spatial comfort and natural light, with three-metre-high ceilings, oversized internal doors and a full-width terrace oriented to the north, east and west.&nbsp;

[smartcode_project:default project_id=27816 project_image_fid=355604]

Floor-to-ceiling double-glazed windows ensure thermal performance across seasons, supported by automated external blinds, zoned heating and cooling, and a fireplace for added ambiance.

Each apartment has been individually designed to maximise privacy and garden outlooks. Kitchens combine refined finishes with practical considerations: stone benchtops, butler’s pantry, full-height joinery and concealed rangehoods.&nbsp;

The inclusion of dedicated home offices responds to contemporary living patterns, while bathrooms feature sculptural bathtubs and brushed nickel fixtures.&nbsp;

[smartcode_project:default project_id=27816 project_image_fid=355590]

Threadneedle also integrates best-practice sustainability measures, achieving a 7 Star average NatHERS rating. Initiatives include solar PV systems, rainwater harvesting for toilet flushing and irrigation, and high-performing building insulation. These elements enhance daily comfort while reducing ongoing maintenance and energy demand.

"We believe Threadneedle sets a new standard of design excellence and building quality for Balwyn,"&nbsp;Scaramuzzino added.

"It’s an architectural response we’re particularly proud of, and one we’re sure residents will be equally proud to call home."

[smartcode_project_cta:default project_id=27816]

Staff Writer

Final homes remaining as Threadneedle, Balwyn completes construction

Joel Robinson

Sydney's top 15 new apartments developments set to launch in 2026

Developer-builder <a href="https://www.apartments.com.au/developers/dasco-australia">DASCO</a> has pushed beyond the now-standard inclusions of rooftop pools and landscaped podiums at its recently launched new Epping project, Senso.

It has laid out over 4,000 sqm of resident-only amenity in a move designed to compete directly with low-density housing on livability, not just density. The result is a development that supports genuine daily use through purposeful spaces distributed across its five-building, 479-apartment precinct.

[smartcode_project:default project_id=134954 project_image_fid=4396]

Two rooftop pools form the anchor of Senso. One is a 27-metre lap pool adjoining a heated spa, designed for everyday fitness rather than just summer leisure. The second sits on a lower podium, allowing different buildings to share in vertical access and reducing crowding during peak times.

It is the secondary spaces that start to distinguish Senso from other large-scale suburban projects. A rooftop cinema is integrated into a landscaped terrace, offering open-air screenings with natural ventilation and passive cooling.&nbsp;

The inclusion of a “sensory walk”, an elevated boardwalk that threads through the site, suggests a rare investment in non-commercial, non-essential amenity: space for quiet movement that doesn’t double as access or traffic circulation.

[smartcode_project:default project_id=134954 project_image_fid=4402]

The gym and wellness centre, often relegated to a small ground-floor room in many builds, takes on more substance here. Residents have access to a fully equipped gym, as well as outdoor yoga areas and meditative zones that integrate greenery and natural light.&nbsp;

The Club Lounge is similarly designed to support multiple use cases, with a private dining terrace, kitchenette, workspace, and lockable wine storage. These aren’t superficial additions; their scale and spatial allocation indicate serious intent for frequent resident use.

[smartcode_project:default project_id=134954 project_image_fid=4391]

Importantly, Senso’s amenities are embedded within a site that spans more than 10,000 sqm, allowing for better separation between spaces and reduced noise spillover, a critical but often overlooked factor in high-density developments. This spatial generosity also enables multiple alfresco kitchens and communal terraces without compromising individual privacy or usable space.

While many developments make claims about lifestyle, few back it with this level of built infrastructure. Senso’s mix of dedicated fitness, wellness, social and passive green spaces suggests a conscious response to the post-pandemic shift in housing expectations, especially among owner-occupiers.&nbsp;

DASCO is one of several leading developers who have taken out Resilience Insurance's Latent Defects Insurance policy, providing buyers with a 10-year structural and waterproofing warranty, and giving them the ultimate peace of mind.

Senso is scheduled for completion in late 2028.

[smartcode_project_cta:default project_id=134954]

The outdoor amenities elevating life at Senso, Epping

Following the proposal by the Minns Labor Government to rezone Parramatta Road to create up to 8,000 new homes, prominent developer Ceerose has gone to the NSW Gov to increase the density of its new mixed-use residential building in Leichhardt.

<a href="https://www.apartments.com.au/builders/ceerose">Ceerose</a>, founded by Edward Doueihi nearly three decades ago, has filed plans for 154 apartments above ground-floor retail at 307-315 Parramatta Road, a key corner site near Norton Street, the main high street strip in Leichhardt.

It's an upsize from the previously approved scheme of 63 apartments across a seven-storey building.

<img alt="Ceerose" data-entity-type="file" data-entity-uuid="ba1ae75b-5f08-43fb-b8d5-3de6d9f6ef71" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-04%20at%2010.31.39%E2%80%AFAM.png?VersionId=yA3hBBLPH4ev7MsAE0_hieXeqiFqBUb7" />

The project is being advanced through the State Significant Development (SSD) pathway, with concurrent rezoning sought to facilitate the proposal. The 10-storey development would rise over a four-level basement and deliver two retail tenancies, one a larger-format offering and the other a smaller “hole in the wall” space, addressing the Parramatta Road frontage. 21 of the apartments are dedicated as affordable housing.

According to the Urban Design Report by Architecture AND, the scheme includes a podium and tower configuration, with a fine-grain, two-storey parapet street wall that references the traditional shopfront rhythm along the corridor. “An elegant tower form is proposed, combined with a characterful two storey frontage... articulating it as two related buildings, providing consistency with the rhythm and grain of Parramatta Road,” the report notes.

The residential component is split across two slender towers set back from the street edge, a design move aimed at preserving solar access and reducing perceived bulk. This massing strategy also seeks to improve residential amenity by focusing scale toward the quieter northern interface, away from Parramatta Road’s noise and pollution.

<img alt="Ceerose" data-entity-type="file" data-entity-uuid="347f2f8f-5d36-4388-b40a-2e77380b9c19" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-04%20at%2010.31.02%E2%80%AFAM.png?VersionId=xvyUE2ujT1lzivXTo.mHBJFF4SmfgLtz" />

Architecture AND has worked with Ceerose on previous Inner West projects, and cites a deep familiarity with the local character. Their design draws heavily on context, heritage, and sunlight access considerations, and engages with the Inner West Council’s “Our Fairer Future” strategic planning framework.

The site spans 2,712 sqm and is located near key intersections with Catherine Street, Hay Street, and Redmond Street. It adjoins a public carpark to the north and is within walking distance of Stanmore and Petersham stations. It is also flagged in state and local planning strategies, including the Parramatta Road Corridor Urban Transformation Strategy, as a suitable candidate for increased density.

Ceerose recently completed The Alex Collective on McEvoy Street in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay.

The Parramatta Road corridor is coming to life with the proposed rezoning which is serviced by a significant number of bus, light rail and train routes.

Deicorp is progressing with its $1.8 billion <a href="https://www.apartments.com.au/new-apartments/kings-bay-village-five-dock-53-75-queens-road-five-dock-nsw-2046">Kings Bay Village</a> precinct on Parramatta Road in Five Dock, as is <a href="https://www.apartments.com.au/news/nsw/toga-to-push-on-with-five-dock-mixed-use-masterplan">TOGA further down the street</a>. Those two projects alone will bring nearly 2,000 new homes to Parramatta Road.

First look: Ceerose plots mixed-use Leichhardt development on Parramatta Road

North Sydney's landmark 'SBS Building' on Alfred Street is set to be demolished to make way for a new mixed-use residential tower in the booming North Sydney.

Commercial property group FiveX is behind the plans for a <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">39-storey tower</a>, the latest project to advance under the NSW Government’s Housing Delivery Authority pathway.

They are proposing 184 apartments above retail spaces, which will replace the existing 20-storey commercial building. FiveX was set up more than five decades ago by Joshua and Marko Berger. It is currently led by Joshua's son Lesli.&nbsp;

<img alt="First look: Fivex plans 39-storey residential tower at 275 Alfred Street, North Sydney" data-entity-type="file" data-entity-uuid="2efa0980-53fa-4cca-9f9e-9c3c845d4746" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29%20%281%29_0.png?VersionId=y_YyPMq3NQLfYRs84pP4os9UgWiMLp75" />

According to the Architectural Design Report by <a href="https://www.apartments.com.au/architects/fjc-studio">FJC Studio</a>, the slender tower form has been deliberately designed to respect the site's transitional setting at the southern gateway to the North Sydney CBD, where high-rise towers give way to lower-scale residential precincts.

"The slender tower form and articulated podium establish a respectful relationship with nearby heritage and low rise buildings, including the Whaling Road Heritage Conservation Area,” the architecture firm noted, adding that the tower “completes a missing link in the urban fabric” while enhancing the Alfred Street streetscape.

The proposed building will include a mix of one-, two- and three-bedroom apartments, with 15 percent of the gross residential floor area allocated as affordable housing. There is an agreement already in place that those apartments will be managed by Evolve Housing.

The project aligns with broader state housing objectives, including the National Housing Accord target of delivering 1.2 million new homes by 2029. The Scoping Report filed with the State Significant Development Application (SSDA) suggests the site "presents no impediments to rapid delivery,” with construction able to commence within 12 months of receiving consent.

North Sydney has been one of the most popular suburbs in Sydney for new and off the plan apartment development, but hasn't had the supply to keep up with demand, until recently.

AURA by Aqualand was, for a long time, the only off the plan apartment building on the market. That completed last year, and has sold the majority of its 386 luxury apartments. Recently ALAND launched <a href="https://www.apartments.com.au/new-apartments/the-walden-173-179-walker-street-north-sydney-nsw-2060">The Walden</a> on the same street, selling over $100 million within just a few hours of its launch, while developer CASA also launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/the-mclaren-north-sydney-45-mclaren-street-north-sydney-nsw-2060">The McLaren</a>&nbsp;in the same precinct.

First look: Fivex plans 39-storey residential tower in booming North Sydney

Todd Hunter

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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>.
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thunter-umjjMzoT8b

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

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

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

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

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

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

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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.
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Todd Hunter

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