It is no secret that Property Development, while it may promise great rewards, carries great risks. It appears that Mums and Dad’s are looking to small time development in increasing numbers.
So is development worth the time, effort and risk?

Let’s face it, development is sexy. Everyone loves property and the idea of making ‘fast money’ is appealing to most. Unfortunately, often the proverbial lure has a jagged hook on the end of it if you are not careful! Before embarking on any project, it is important to have a thorough plan and accurately calculate the time, cost and importantly, the return, each with a contingency allowed for a blow-out. You don’t need to be a developer to know that building rarely goes according to plan.

Question – Why has property price growth in Sydney and Melbourne significantly outstripped that of the rest of the country?

Answer – Sydney and Melbourne are ‘Superstar’ cities, at least that is the view of the Governor of the Reserve Bank of Australia, Phillip Lowe.

Lenders have blacklisted more than 100 suburbs, due to the glut of new apartments in Brisbane, Melbourne and Sydney. What does this say to investors?

Do not buy high density apartments in any of those locations. Simple.

Until recently, you were able to claim depreciation on the value of all fixtures and fittings (also known as ‘plant and equipment’) in a property. This includes ovens, dishwashers, heaters, floor coverings, window furnishings and the like.
This loop hole has been slammed shut by the government for property owners who cannot meet certain criteria