2007 Spring

nicolez

Chandos Street

Atchison St

THE PROPERTY REVIEW

A Quarterly Journal Published By

Tower & London

Spring 2007


THE PROPERTY REVIEW

A quarterly journal published by

Tower & London

Spring 2007

Enquiries regarding the Journal should be made to:

Tower & London

38 Alfred Street,

Milsons Point NSW 2061

Phone: 9956 6500 Fax 9956 6522

Email: reception@towerlondon.com

Disclaimer

Data and information in this document were obtained from sources we deem to be reliable. However, no

person should rely on any of the contents of this publication without first obtaining advice from a qualified

professional person. Tower & London gives no guarantees, undertakings or warranties concerning the

accuracy, completeness or up-to-date nature of the information provided. Tower & London Pty Limited

accepts no liability for any loss or damage suffered as a result of the use of any person of the contents of

this publication.


Table of Contents

Investors’ market

John Tower page 2

St Leonards, resurrected

John Tower pages 3 - 5

Taxation update

Martin Dickey page 6

Repairs, urgent or not

Kim Phuong page 7

Properties for sale pages 8 - 9

First Home Benefits

Tania Enwiya pages 10 - 12

Property Prices Review:

- Australian Capital Cities page 13

- Lower North Shore, Sydney page 14

- Rentals page 14

Tower & London

Sales and Leases (June Quarter) page 15

Staff page 16

Page 1


Investors’ Market

John Tower

Property valuer

The main article in this issue is named St Leonards, resurrected;

the change to Mix Zone and increased building

heights for the St Leonards Town Center in North Sydney

LEP 2001 created a rush by developers to purchase

and amalgamate two or three old commercial buildings,

to build multi-storey residential high-rise buildings with a

couple for levels of commercial space on lower floors.

Then, of course, there was the so called property

“boom” when everyone thought it was a great idea to

buy one – off the plan especially – regardless of the

price, as long as the Bank would lend them the money,

and more devastatingly: regardless of the would be

yield. The developers guaranteed 5% returns; and they

included the stamp duty on the price of the purchase, so

the punter could lump the Stamp Duty on the mortgage

as well. This continued until 2004. I wonder what were

the Bank Valuers doing at the time?

Surprise! Surprise! the boom was over by early 2004;

which left many mortgages exceeding the “awakened”

Bank Valuers’ property valuations. The generous rent

guarantees had lapsed by 2005. All that was left was a

high sum to be paid every month by the property investor

to the Bank to supplement the meager rents they

were receiving. Many could not make these payments;

and as they fell so far behind, their investment property

was auctioned on behalf of the mortgagees and sold for

heartbreak prices. Further reducing the already deflated

values.

St Leonards is a good example: take an average twobedroom

unit in newly constructed buildings, off-the-plan

and later when the building was completed; they sold for

an average price of $580,000. The average rent would

have been $450 per week. The same property would

now be worth $530,000, it is leased at $520 per week.

The returns have jumped from 4% to 5% and rising. Not

only are the yields 20% higher, the vacancy rates have

diminished ensuring good continuous income. Now, despite

the interest rises, investors are returning to St Leonards.

Hence: resurrected.

As mentioned in the previous issue, I would be asking

professionals in related industries to contribute on regular

basis, hence, have invited the company accountant,

Martin Dickey. I am pleased and indebted to Martin who

has contributed his introductory article, titled: Taxation

Update.

Kim Phuong, Manager of St Leonards office has written

her usual property management page. This issue is

about repairs. Perhaps more importantly, the separation

of how the rules apply to repairs that are classified as

“urgent” and those that are not. What are the owners’

responsibilities, who can act and when.

Tania’s article this quarter is entirely reproduced from

the OSR web site relating to First Home Benefits. Smart

young professionals are buying for the first time, they

are taking advantage of these generous government

grants and making their move at a time when everyone

else isn’t. Tania and I hope this article with the latest

developments will be useful.

There are some changes to the Property Prices Review

on pages 14 & 15. Sydney Median Prices for houses

and units tables have been converted to quarterly as the

winter issue showed only the yearly changes, this issue

I have included every quarter for the past three years.

On the second page, major changes: Instead of listing

the quarterly changes in values for the three Local Government

areas in the Lower North Shore: a new table

listing the past three years quarterly. Therefore, one can

see how prices in Sydney are compared to the rest of

the Australian cities on page 14; and on the opposite

page, see how the Lower North Shore is in comparison

to Sydney General prices. The rent column remains unchanged.

Other changes include the centre spread of Properties

For Sale, these pages will be dedicated to current properties

that are still on the market when we go to print.

Last issue had only two properties as we gave each

property a full page, now we’ll have ten or more properties

in each issue. Similarly with rental page 15, we had

only two last issue, we have now chosen 12 properties.

The latest Real Estate Market Facts, a quarterly review

of major residential property markets in Australia published

by the Real Estate Institute of Australia, (from

which I base the above mentioned Property Prices Review)

point to the shortage of supply being the reason

for the median price of all the major cities in Australia,

except Sydney, are at their highest level ever in both

units and houses.

One would wonder why then Sydney does not have the

same level of price increases, it is not because there are

more houses or apartments being built in Sydney relative

to the population, interest rates are not any different

and the unemployment rates are not that much higher

than other Australian cities. Yet still prices for units and

houses remain the highest in the country; should they

be?

Page 2


ST LEONARDS, resurrected

St Leonards is part of the

Holtermann Precinct of the

North Sydney Council

History

The Municipalities act of 1858 brought with it the proposal

to incorporate the parish of Willoughby and the

township of St Leonards. For North shore residents

theirs was a much neglected area with street like kangaroo

tracks. William Tunks was the first mayor of St Leonards

when it was proclaimed in June 1867. The council

had to deal with roads, the problem of sewerage disposal

and pollution of Harbour waters by industry.

The name St Leonards originally applied to the area from

the present suburb of North Sydney to Gore Hill; the

township of St Leonards laid out in 1838 is now North

Sydney, the Municipality of North Sydney was constituted

in 1890. The present St Leonards lies to the north

west of the original township. The oldest railway station

on the North Shore line, St Leonards opened in 1890.

The line originally ran from St Leonards to Hornsby, so

passengers traveled from St Leonards to Milsons Point

ferry terminal by horse-bus. Around the turn of the century

passengers alighting at St Leonards were confronted

by a eucalyptus forest. The red, white and blue

gums, all in flower, combined with the sweet aromas

from the citrus orchards. The suburb was named to

honor English statesman Thomas Townshend, Viscount

Sydney of St Leonards.

Then and

Now

Page 3


St. Leonards, resurrected

Chandos Street

Atchison Street

Pacific Hwy

Albany Street

Map obtained from North Sydney

Council web site

North Sydney Local Government Area Statistical

data

The North Sydney Council Local Government area, covering

10 sq. kilometers, incorporates a Central Business District

(CBD) for commercial use and two high-density mixed-use

centers (St Leonards and Milsons Point).

There are also established and emerging main streets, and

diverse residential areas, in which 86% of the population

(which the Preliminary Estimated Residential Population for

2006 gives as 61,401) is over the age of 18. While 42% are

in registered or de facto marriages, 20% (twice the Sydney

Statistical Division's [SSD] average) live alone. The population

may be described as wealthy, with over 35% earning

more than $1000 per week, according to the council’s website.

The population is highly mobile. Nearly half of all residents

rent and, over a five-year period, over 65% move to a new

address. The dwelling density is higher than in most other

parts of Sydney and is increasing. 71% of residents live in

medium-density housing (units, townhouses, semis and terraces)

compared to the SSD's 29%.

St Leonards Town Centre

The area described is bordered by the Pacific Hwy to the

south, Chandos Street to the North, Herbert Street to the

west and Oxley Street to the east. This report concentrates

on this area named: St Leonards Town Centre.

Under North Sydney LEP 2001, this area is substantially situated

within Mixed Use Zone. The zoning encourages a diverse

range of living, employment, recreational and social opportunities.

It aims to create a vibrant neighborhood centers with

safe, high quality urban environment with residential amenity,

and to maintain existing commercial space and allow residential

development in mixed use buildings with non residential

uses at the lower levels and residential apartments above.

St Leonards Town Centre is linked to the city and other part of

Sydney Region by rail, bus and road. Existing community facilities

meet the center's working and resident population, visitors

and residents of nearby neighborhoods, in terms of wellbeing,

culture and recreation; and add to the diversity and

activity of the centre. Public transport, walking and cycling, is

the main form of access to the St Leonards Town Centre.

Parking is adequate; and managed in a way that maintains

pedestrian safety, the quality of public space and built form,

and minimum traffic generation.

Building Heights and Commercial Floor

Space Ratios

The highest point for the Mixed Use Zone is starting at the

railway station with two existing Towers: Forum and Forum

West, the building height then cascades down to towards Oxley

Street. The most recent developments have been 40, 33

and 26 meters high buildings. The plan and table above show

the deferent requirements of FSR for commercial components

in each section of St Leonards Town Centre.

Page 4


Major New Developments

For the past five years many new Mixed Use developments have been

completed and there are few more approved; and some are still on the

drawing board. Clearly, this concept of mixed use has worked very well

in St Leonards. The apartments sold very well from 2002 to 2004. however,

sales since have been very slow. Some owners have been forced

to sell by their financiers as they could not afford the cost of retaining the

property as prices for near new properties fell in 2005 and 2006. Prices

have now returned to pre 2002 levels and rents are much higher hence

the gross returns at times exceed 5%.

St. Leonards, resurrected

Arden, 48 Atchison St.

Commercial spaces have generally struggled all along, many of these

new buildings have about two levels of commercial space with a small

component of retail on the ground floor. Prices have fallen and sales

have come to a standstill. It will take some time before the available

space is taken up. The following table contains some of the buildings

containing residential units.

Building name Address Residential units Commercial units

Nexus 15 Atchison St 88 14 lots

Arden 48 Atchison St 105 11 lots

Forum West,

3 Herbert St.

Forum (Low tower) 1 Sergeants Lane 333 C o m m e r c i a l &

Forum ( High tower) 151 retail centre

Forum West 3 Herbert St 291 as above

Linea 2-4 Atchison St 100 Ground shop + 1 level

Habitat 11 Chandos St 79 8 lots

Aria 38-46 Albany St 49 2 levels

Nexus, 15

Atchison St

Abode 599 Pacific Hwy 197 2 levels

Trinity 1-5 Albany St 85 8 lots

There are approximately 1500 apartments contained in the above list,

these buildings were completed over the past two to five years. There

have been more recent smaller buildings completed not included above.

Over the past two years there has been a small number of smaller flat

construction taking place due to the downturn in the market. However,

very recently, a new one is under construction in 45-49 Chandos Street

(see photo) and another two major buildings have been approved by

North Sydney Council in Atchison Street.

New property is attractive, as the supply has virtually stood still for the

past two years; and on the other side, the demand is increasing: many

more investors are returning to the residential market in St Leonards in

the 2nd half of this year, encouraged by the strength of the rental market

and the relatively low prices for quality modern apartments.

Under construction

45-49 Chandos St.

Interestingly, owner occupiers and more particularly first time entrants

are constituting a good portion of buyers. Young, educated Generation Y

are taking full advantage of the First Home Benefits (see Tania’s Article);

saving thousands on their entry costs, buying good property with due

diligence.

This level of activity will inevitability put pressure on prices over the next

12-24 months if it is sustained, but for now there are good value properties

on offer for those with an eye for good property.

Page 5


Taxation Update

Record Keeping

You need to keep detailed records of all rental income

and expenses and also when you buy and sell an investment

property.

Martin Dickey

B.Com F.Fin CFP CA

Spring is in the air and taxpayers are cleaning out records

to prepare their tax returns.

Once again rental properties are back on the watch list for

the Australian Tax Office (ATO).

The ATO has reported the results from their compliance

activities on rental properties shows that taxpayers are

still claiming incorrect rental property deductions. Approximately

90% of the returns reviewed by the ATO were

amended resulting in $7 million additional revenue for the

ATO.

The following outlines some of the main problem areas for

taxpayers.

Keeping detailed records is the best form of defense

against the ATO.

Records of your rental income and expenses must be

kept for five years from the date your income tax return

is lodged.

If you dispose of your property during the year details

of the costs of purchasing and selling your property

must also be kept for five years.

Expenses deductible over a number

of years

Expenses deductible over a number of years include

• Borrowing expenses

• Depreciation of new equipment etc

• Capital works deductions.

Common Errors

The common errors highlighted by the ATO include:

• Claiming deductions when the property was not

available for rent;

• Claiming deductions for a full year when the

property was available for rent for only part of

the year;

• Claiming initial repairs or renovation costs as

repairs;

Travel Expenses

Claiming travel expenses for the annual inspection of

the unit in Paris will also come under close scrutiny.

The ATO is deliberately vague on this area so as not to

open a flood gate of claims but detailed records need

to be maintained of meetings, work done etc.

Where travel is also for private purposes you may

need to apportion any expenses.

For more detailed assistance in audit proofing your

rental property deductions please contact the team at

Genesis.

• Incorrectly claiming the legal expenses on buying

and selling a property;

• Incorrectly claiming travel to inspect properties.

• Incorrectly claiming interest costs.

Page 6


Repairs, urgent or not

Kim Phuong

Manager, St Leonards

If the landlord does not act in a reasonable time frame

to fix an urgent repair then the tenant can arrange to fix

the problem by spending up to $500 in order to do so.

The landlord must then reimburse the tenant within 14

days of receiving written notification. This however is

provided that:

Although landlords have an obligation under the Residential

Tenancy Act to keep the property in a reasonably

clean and fit place to live maintaining the property to a

reasonable standard. It is also beneficial for landlords to

understand the importance of addressing all repairs in a

timely manner whether they are urgent repairs or general

repairs. In doing so it limits the damage and cost, maintains

the property as well as keeps the tenant happy.

This more than likely will result in fewer turnovers in tenancies.

Urgent Repairs

The Act classifies a repair as urgent when something

breaks that may make the premises unfit to live in or

cause a potential safety risk or interrupt access to water,

gas or electricity supplies. It goes on to list urgent repairs

as follows:

• the damage was not caused as a result of a

breach of the lease agreement by the tenant

and

• the tenant gives or makes a reasonable attempt

to give the landlord notice of the damage

and

• the tenant gives the landlord a reasonable

opportunity to make the repairs and

• the tenant makes a reasonable attempt to

have any appropriate tradesperson named in

the lease agreement make the repairs and

• the repairs are carried out where appropriate

by licensed or properly qualified persons and

• the tenant as soon as possible gives or tries

to give the landlord written details of the repairs,

including the cost and the receipts for

anything the tenant pays.

• a burst water service

• a blocked or broken lavatory system

• a serious roof leak

• a gas leak

• a dangerous electrical fault

• flooding or serious flood damage

• serious storm or fire damage

• a failure or breakdown of the gas, electricity or

water supply to the premises

• a failure or breakdown of any essential service

on the premises for hot water, cooking, heating

or laundering

• any fault or damage that causes the premises

to be unsafe or not secure

General Repairs

Repairs that fall under general repairs are all other repairs

that are not urgent. These occur more regularly

however they still need to be addressed e.g. dishwasher

not working.

Property Managers usually have a system in place

where all repairs are logged and the progress is monitored

until completion. This allows the manager to ensure

that they do not overlook the problem and assist in

reducing the time spent, therefore reduce the possible

risks associated with it. Only qualified trades people

who are efficient and are price competitive are given

the instructions to further save time and save money for

the landlord. Also a limit of expenditure is usually

agreed upon between the Property Manager and the

landlord to spend on repairs without having to seek instructions

from the landlord.

If an agent finds that there is a problem during a routine

inspection then they would notify the landlord and have

it fixed before either the tenant notifies them or it

causes more damage. It also allows the agent the opportunity

to advise the landlord of what improvements

can be made in the property.

Page 7


For Sale

12a01/93 Pacific Highway, North Sydney

Great location in the Heart of North Sydney CBD with views of the

Sydney Harbour Bridge. Situated in a near new security building, this

two bedroom, two bathroom apartment offers internal laundry, airconditioning,

and parking. Modern life style, short distance to Greenwood

Plaza, trains, bus, shops & restaurants.

Asking Price: $690,000

Viewing: by Appointment

Details: Milsons Point Office ph: 9956 6500

1004/93 Pacific Highway, North Sydney

This stylish one bedroom apartment is located in a security building in

a prime position at North Sydney's CBD. This apartment features a

modern kitchen and bathroom with attention to detail. One bedroom

apartment offers reverse-cycle air conditioning and an internal laundry

equipped with combined washing machine and dryer. Minutes

away from cafes, shops, gym & transport.

Asking Price: $450,000

Viewing: by Appointment

Details: Milsons Point Office ph: 9956 6500

703/93 Pacific Highway, North Sydney

Ultra modern, small one bedroom apartment in a security building in a

prime location at North Sydney CBD. Close to North Sydney station.

Fully integrated air conditioning, kitchen with granite bench tops.

Equipped with an internal laundry with washing machine/dryer, also a

dishwasher and refrigerator. Offered fully furnished; rent at $380 pw.

Asking Price: $298,000

Viewing: by Appointment

Details: Milsons Point Office ph: 9956 6500

17B/70 Alfred Street, Milsons Point

Grandview is a prestige building near Milsons Point station. This large

one bedroom apartment is on the 17th floor. Parking is provided by a

large lockup garage. Offered fully furnished and leased at $525 per

week.

Asking Price: $500,000

Viewing: by Appointment

Details: Milsons Point Office ph: 9956 6500

403/28 West Street, North Sydney

Modern Building on the Edge of North Sydney with indoor pool and

gym. Fourth floor east facing apartment with 106 square meters and

parking and storage. Two balconies the main is large and private with

uninterrupted district views.

Asking Price: $630,000

Viewing: by Appointment

Details: Milsons Point Office ph: 9956 6500

Page 8


For Sale

101/15 Atchison Street, St. Leonards

Massive modern studio/1 bedroom in the heart of St Leonards. The

property features spacious open plan living, beautiful kitchen with

marble bench top, polished timber floor boards & internal laundry.

Building offers security and gym. Leased at $330 per week.

Asking Price: $319,000

Viewing: by Appointment

Details: St Leonards Office ph: 9906 8442

408/2-4 Atchison Street, St. Leonards

Extra Large one bedroom unit + open sturdy room + parking in a security

building facing north. The unit features quality modern kitchen

and bathroom, internal laundry, air-conditioning unit, mirror built-in

wardrobe and two balconies.

Asking Price: $398,000

Viewing: by Appointment

Details: St Leonards Office ph: 9906 8442

303/48 Atchison Street, St. Leonards

Arden is one of St Leonards newest and most interesting buildings;

modern and exciting with security and gym. This two bedroom apartment

has a northern aspect. Two well-appointed bathrooms, internal

laundry and a delightful kitchen, large living area to accommodate

modern living environment. Undercover secure parking provided for

on title.

Asking Price: $535,000

Viewing: by Appointment

Details: St Leonards Office ph: 9906 8442

608/88 Berry Street, North sydney

This East facing one bedroom apartment with car space has great

Careening Cove water views. Modern kitchen & bathroom, internal

laundry, air conditioning, built-ins and balcony in a security building.

Located in the heart of North Sydney, close to transport and all

amenities. Offered fully furnished and leased at $450 per week.

Asking Price: $495,000

Viewing: by Appointment

Details: St Leonards Office ph: 9906 8442

45-49 Chandos Street, St Leonards

Preliminary advertisement; this building is under construction, it will

comprise of three bedroom plus study apartments and penthouses,

unique concept by only providing large spaces. North facing apartments

have uninterrupted and expansive district views.

Marketing launch is planned for October 2007, initially only to Tower

& London Clients and tenants. Prices will be from $690,000. For initial

interest and invitation contact John Tower on 0408 216 979.

Page 9


First Home Benefits

Tania Enwiya

(Source: Office of State Revenue, NSW Treasury)

6. Each applicant has entered into a contract for the

purchase of a home or signed a contract to build a

home on or after 1 July 2000. In the case of an

owner-builder, laying of the foundations commenced

on or after 1 July 2000.

7. This is the first time an applicant and/or their spouse/

de facto will receive a grant under the First Home

Owner Grant Act 2000 in any State or Territory

(unless subsequently repaid).

If you are buying or building your first home, you may be

eligible for benefits under the First Home Owner Grant

Scheme and/or the First Home Plus Scheme.

The First Home Owner Grant Scheme is a joint Australian

and NSW Government initiative offering eligible NSW

first home buyers a $7000 grant. The grant applies to residential

dwellings only and does not apply to vacant land.

The First Home Plus Scheme provides exemptions or

concessions on transfer duty and mortgage duty for eligible

NSW first home buyers. This includes vacant land on

which you intend to build your first home.

Both schemes are administered by the Office of State

Revenue (OSR) to help first home buyers in NSW to purchase

or build their first home.

There are no income or assets tests to qualify for the

8. At least one applicant will occupy the home as their

principal place of residence for a continuous period of

six months, commencing within 12 months of settlement

or construction of the home.

How to apply for the First Home Owner

Grant

You can apply for the First Home Owner Grant through

your financial institution or OSR. Applications lodged with

financial institutions will have the grant available for settlement

or for the first draw down on contracts to build.

Applications can only be lodged with OSR after completion

and you are registered on title (if you are purchasing

under a 'Terms Contract' please contact OSR for lodgment

requirements).

Applications must be lodged within 12 months of completion

or settlement of your home.

benefits.

First Home Plus

Business premises, a holiday house or renovations to an

existing home do not qualify for first home benefits.

First Home Owner Grant

The First Home Owner Grant Scheme is available to

people buying or building their first home and who meet

the following eligibility criteria:

1. Each applicant is a natural person and not a company

or trust.

2. At least one applicant is a permanent resident or Australian

citizen.

3. Each applicant must be at least 18 years of age.

4. All applicants and/or their spouse/de facto have not

owned a residential property, jointly, separately or with

some other person, in any State or Territory of Australia

before 1 July 2000.

5. All applicants and/or their spouse/de facto have not

previously owned a residential property jointly, separately

or with some other person in any State or Territory

of Australia, and occupied that property for a continuous

period of at least 6 months.

The First Home Plus Scheme provides eligible purchasers

with exemptions on transfer duty and mortgage duty on

homes valued up to $500 000 and concessions on duty for

homes valued between $500 000 and $600 000.

Eligible purchasers buying a vacant block of residential land to

build their home on will pay no duty on vacant land valued up

to$300 000, and will receive concessions on duty for vacant

land valued between $300 000 and $450 000.

To qualify for First Home Plus you must meet the criteria listed

below:

• The contract and the transfer must be for the purchase

of the whole of the property.

• All purchasers must be 'eligible purchasers'.

• At least one eligible purchaser must occupy the

home as their principal place of residence for a continuous

period of six months, commencing within 12

months of completion of the agreement.

• An 'eligible purchaser' is a natural person (ie not a

company or trust) at least 18 years of age who has

not, and whose spouse/de facto has not:

• At any time owned (either solely or with some one

else) residential property in Australia other than property

owned solely as trustee or executor

Page 10


• Previously received an exemption or concession under

First Home Plus.

Note: if all purchasers are not 'eligible purchasers' you may still

qualify for a concession under First Home Plus One.

From 1 May 2007, First Home Plus One allows eligible purchasers

to buy property with other parties and still receive a

concession. To qualify the eligible purchasers must buy at least

50 per cent of the property. The value limits and purchasers

eligibility criteria of First Home Plus apply.

Transfer duty is calculated with reference to the proportion of

the property purchased by other parties. However, this interest

is disregarded if it is not more than five per cent.

Full mortgage duty concessions and exemptions apply to mortgages

given to assist the purchase of property under First

Home Plus One.

Note: if the first home buyer's spouse has previously owned a

home or received a benefit under First Home Plus, the first home

buyer will not be entitled to First Home Plus One, regardless of

whether or not the spouse is also a purchaser.

1 Calculating the concessions on duty

The tables below give a guide to the concession applicable.

You can calculate the exact amount of your concession

using the First Home Plus calculator on OSR's website.

Homes

You do not have to pay duty on the purchase of a home up to

$500 000. To calculate the First Home Plus concession on a

home between $500 000 and $600 000 multiply the purchase

price by 0.2249 and subtract $112 450.

Example calculations:

Purchase

price ($)

Usual duty ($)

First Home

Plus duty

($)

Savings

($)

250 000 7 240 7 240

300 000 8 990 8 990

350 000 11 240 11 240

400 000 13 490 13 490

450 000 15740 15 740

500 000 17 990 17 990

525 000 19 115 5 623 13 493

550 000 20 240 11 245 8 995

575 000 21 365 16 868 4498

First Home Benefits

2 Calculating the concessions on mortgage

duty

To be eligible for a concession on mortgage duty the

initial amount you borrow under the mortgage must

not exceed $600 000 for a dwelling or $450 000 for

vacant land. If you are purchasing vacant land and

your mortgage includes an amount for building a private

dwelling you can take out a mortgage for up to

$600 000.

Mortgage duty is $5, plus a further $4 for every

$1000, or part, by which the amount secured exceeds

$16 000. To calculate your concession, discount the

mortgage duty payable by the percentage figure

shown over the page. You can also calculate the exact

amount of your concession using the First Home

Plus calculator on OSR's website.

Less than $500 000 100%

More than $500 000 but not more than $535 000 75%

More than $535 000 but not more than $565 000 50%

More than $565 000 but less than $600 000 25%

How to apply for First Home Plus

Submit your First Home Plus application together with

your mortgage document at the same time you lodge

your Agreement for Sale/Transfer for stamping by

OSR. Your application must be accompanied by all

supporting documents.

You must have already exchanged contracts to purchase

your first home or vacant land.

If you do not submit your mortgage document at the

time of lodgement you can still apply for the mortgage

duty exemption or concession at a later stage. You

will need to consult your lender about this.

First Home Benefits application forms

You can print an application form for both the First

Home Owner Grant and First Home Plus from

www.osr.nsw.gov.au, phone and ask to have an application

posted, or send an email to

first.home.benefits@osr.nsw. gov.au. Forms are also

available from your solicitor or conveyancer.

False claims

There are substantial penalties for knowingly making

false or misleading statements in connection with an

application for first home benefits.

OSR conducts investigations and compliance checks

to ensure the grant and duty exemption/concession

are given only to those applicants who are entitled to

receive them.

OSR audits claims with current and historical data

held by other State and Territory agencies and commercial

organizations.

600 000 22 490 no discount

Page 11


Property Prices Review

Australian Capital Cities, Median House prices

(Source: Real Estate Market Facts)

in $1,000 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07

Sydney 559 558 553 544 538 531 525 521 520 521 521 521 522

Melbourne 376 370 366 359 357 358 358 361 364 370 375 381 394

Brisbane 295 303 306 306 307 309 312 316 320 325 330 335 345

Adelaide 246 254 261 267 271 274 276 277 280 283 289 293 299

Perth 247 251 258 267 277 291 307 325 352 384 414 438 452

Canberra 366 365 365 366 364 367 368 369 373 377 382 387 413

Hobart 228 242 252 261 263 266 269 271 276 282 285 288 296

Darwin 237 249 257 262 269 279 296 311 328 350 360 374 385

600

Houses

550

500

450

400

350

300

250

200

Jun-04

Sep-04

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

Sydney

Melbourne

Brisbane

Adelaide

Perth

Canberra

Hobart

Darw in

There has been a significant

upward movement in moving

annual median prices in every

capital city, except Sydney,

with trend prices in these

seven capital cities at their

highest prices ever. Sydney

prices still remain subdued.

Sydney prices have hardly

changes over the past 12

months; and for the past three

years they have decreased by

6.6%. Perth prices however,

have increases by 83% over

the same period.

Australian Capital Cities, Median Unit prices

(Source: Real Estate Market Facts)

in $1,000 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07

Sydney 377 377 376 373 370 368 364 362 361 358 359 356 358

Melbourne 293 289 291 293 295 298 299 303 306 312 315 319 328

Brisbane 227 232 235 236 238 245 252 259 268 273 276 282 290

Adelaide 185 189 197 202 205 210 208 211 214 217 219 221 227

Perth 192 196 203 210 220 233 244 258 280 302 324 341 353

Canberra 287 285 289 293 296 301 302 303 301 302 304 307 318

Hobart 177 181 192 203 212 215 209 209 222 225 225 226 230

Darwin 163 172 176 185 188 199 216 232 248 255 269 279 282

400

350

300

250

200

150

Jun-04

Sep-04

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

Sydney

Melbourne

Brisbane

Adelaide

Perth

Canberra

Hobart

Darwin

Units

Unit price moving annual trend

as with house prices, have

shown strong increases; with

the highest point ever reached

in the June quarter in every

city except Sydney. Sydney's

unit prices have fallen over 5%

over the past three years,

whereas Perth units have increased

by 84% over the same

period. Darwin has increased

by 73%, who would have predicted

this?

Page 12


Lower North Shore Median House Prices

(Source: Property Focus REINSW)

Local Gov Area Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07

Mosman 1630 1562 1604 1788 1615 1679 1780 1675 1711 1802 1558 1675 1750

North Sydney 893 851 903 971 924 931 930 907 950 1071 920 998 925

Willoughby 946 897 880 1012 938 934 948 1007 946 981 903 1075 1131

Sydney General 520 500 505 511 495 517 521 516 525 520 524 516 525

2000

1800

1600

1400

1200

1000

800

600

400

Jun-04

Sep-04

Dec-04

Mar-05

Jun-05

Houses, Lower North Shore

T

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

Mosman

North Sydney

Willoughby

Sydney General

Houses

Houses in Mosman have

fluctuated between 1.6m

to 1.8 million over the past

three years, there has

been an improvement

over the past two quarters.

Willoughby is looking very

strong on the back of another

good quarter in

March. North Sydney

houses are struggling,

down this quarter back to

the same value as June

2005.

Lower North Shore Median Unit Prices

(Source: Property Focus REINSW)

Local Gov Area Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07

Mosman 513 485 479 518 505 533 500 425 500 456 500 515 500

North Sydney 480 484 520 512 505 510 490 495 513 500 490 497 545

Willoughby 441 423 431 440 423 468 466 456 465 450 459 445 475

Sydney General 385 370 370 380 370 364 363 358 357 359 351 348 361

Units, Lower North Shore

Units

600

550

500

450

400

350

300

250

200

Jun-04

Sep-04

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

Mosman

North Sydney

Willoughby

Sydney General

In contrast to houses,

North Sydney units have

leapt up this quarter, this

could be due to the recent

completion of high-rise

buildings in Milsons Point.

Mosman is down to the

levels of June 2005.; Willoughby

units are up to

record heights, although

there may be an adjustment

to these figures

forthcoming.

Rents

(Source: Property Focus REINSW & Tower & London)

Weekly Rents

Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07

18 month

change

Inner Sydney

(city & suburbs close by) 1Br Unit 380 380 380 380 400 380 0.0%

Upper Quartile (25% of prices 2Br Unit 470 470 470 490 500 430 -8.5%

are higher than the upper quartile) 2Br house 450 450 450 494 485 500 11.1%

3Br house 625 620 625 650 680 696 11.4%

Tower & London Protfolio Milsons Point office 516 524 528 535 537 528 2.3%

St Leonards office 402 412 416 421 454 465 15.7%

Page 13


Tower & London June Quarter Sales

Suburb Address Sale Price Bedrooms Bathrooms Parking

Crows Nest 1/187 West St 430,000 2 1 1

North Sydney 1003/37-39 McLaren St 1,380,000 3 2 2

311/88 Berry St 450,000 1 1 1

St Leonards 607/15 Atchison St 530,000 2 2 1

607/48 Atchison St 550,000 2 2 1

Milsons Point 406/38 Alfred St 610,000 2 2 1

505/38 Alfred St 515,000 2 2 1

904/38 Alfred St 780,000 2 2 1

202/12 Glen St 680,000 2 2 1

1203/12 Glen St 675,000 2 2 1

Tower & London June Quarter Leases

Suburb Address Rent pw Furnished Bedrooms Parking

Camperdown 410/1-3 Larkin St 330 no 1 nil

Crows Nest 101/250 Pacific Hwy 400 no 2 1

Kirribilli 41/21 Elamang Ave 430 yes 1 nil

27/33 Fitzroy St 275 yes Studio nil

North Sydney 608/88 Berry St 450 yes 1 1

35/106 High st 395 yes 1 1

503/93 Pacific Hwy 330 no 1 nil

802/93 Pacific Hwy 310 no 1 nil

14/28 West St 650 no 3 2

503/28 West St 570 no 2 1

Milsons Point 204/38 Alfred St 550 yes 1 1

302/38 Alfred St 620 no 2 1

504/38 Alfred St 620 no 2 1

98/48 Alfred St 500 yes 1 1

108/48 Alfred St 480 yes 1 1

71/94-96 Alfred St 850 no 3 2

16/98 Alfred St 450 no 1 1

806/8 Glen Street 420 no 1 nil

802/12 Glen St 580 yes 1 1

1005/12 Glen St 360 no 1 nil

1108/12 Glen St 340 no 1 nil

1205/12 Glen St 580 no 2 1

1508/30 Glen St 550 yes 1 1

1608/30 Glen St 500 yes 1 nil

1702/30 Glen St 750 no 3 1

2013/30 Glen St 320 no Studio nil

2113/30 Glen St 330 no Studio nil

10/1 Harbour View Cr. 850 no 3 2

14/1 Harbour View Cr. 1250 yes 3 2

21/7 Northcliff St 430 yes Studio nil

Mosman H310/55 Harbour St 400 yes 1 1

Neutral Bay 401/206-210 Ben Boyd Rd 375 no 1 1

33A/8 Hardie Street 460 yes 1 1

18/143 Kurraba Rd 285 no Studio nil

St Leonards 218/38-46 Albany St 550 no 2 1

1107/77 Berry St 550 yes 1 1

509/15 Atchison St 380 no 1 1

601/15 Atchison St 410 no 1 1

905/15 Atchison St 670 no 3 1

910/48 Atchison st 450 yes 1 1

1106/48 Atchison St 730 no 3 2

1118/1 Sergeants Lane 300 no 1 nil

Wollstonecraft 5D/2 King St 630 no 2 1

7/5 Rocklands Rd 380 no 1 1

54/13-17 Sinclair St 380 yes 1 1

Page 14


Current Rentals

$1,200 per week

2001/38 Alfred St. Milsons Point

This large three bedroom unit occupies

the highest location in the

best positioned building in Milsons

Point. With a wrap around balcony

it offers views of the harbour & city.

Access to resort facilities such as

pool, gym, spa & sauna. Also has

double car space.

$1,200 per week

1905/55 Lavender St. Milsons Pt.

Mirvac has transformed this building

to a masterpiece. On the 19th

floor and enjoying distant harbour

and district views. This is an extra

large unit with two bedrooms, two

bathrooms and fully furnished.

Secure parking space and close to

transport.

$550 per week

3/8 Munro St. McMahons Point

At the bottom end of McMahons

Point, surrounded by public reserves.

Two well proportioned

bedrooms with built-ins, one conveniently

located bathroom with

water and energy efficient fixtures.

Undercover parking.

$480 per week

1805/30 Glen St. Milsons Point

Luxurious 1 bedroom apartment

with modern appliances including

fridge, microwave, washer and

dryer. Colonnades offers 24 hours

concierge, modern pool and gym.

Close to all transport, cafes and

restaurants.

$600 per week

703/12 Glen St. Milsons Point

This modern two bedroom, two

bathroom apartment offers builtins,

internal laundry along with a

spectacular view from the balcony

over looking Lavender Bay. Located

in the popular Pavilion Building

equipped with pool & gym facilities.

$450 per week

901/48 Atchison St. St. Leonards

Tastefully furnished and equipped

one bedroom apartment. It offers

spacious open plan living area with

combined lounge, dining and study

areas, north east facing balcony,

queen sized bedroom with built

ins, modern kitchen with stainless

steel appliances.

$480 per week

115/48 Alfred St. Milsons Point

Large fully furnished one bedroom

apartment in modern security

block. Complete with balcony, internal

laundry, pool, gym and security

parking. Minutes to shops

and conveniently located close to

all transport.

$620 per week

703/15 Atchison St. St. Leonards

Nexus, located near the heart of St

Leonards CBD and Crows Nest

Shopping Strip. Modern two bedroom

two bathroom fully furnished

apartment plus study with security

parking, internal laundry, built ins,

and a north facing balcony. Access

to gym facilities.

$500 per week

709/8 Glen St. Milsons Point

This stunning fully furnished one

bedroom apartment is located on

the seventh floor of the Azure

building which offers security and

gym facilities. The balcony offers

slight Harbour Bridge glimpses yet

is still very private.

$350 per week

13/187 West St. Crows Nest

One bedroom unit with sunny balcony

in a security building. Builtins,

new carpet & blinds and in

good condition. This apartment

also has a lock-up garage. Conveniently

located near public transport.

$900 per week

1003/38 Alfred St. Milsons Point

Modern three bedroom, two bathroom

apartment perched on the

best side of the building enjoying

outstanding views of the Harbour

Bridge & city. Security building,

balcony, internal laundry, white

goods included, parking, pool,

gym, spa & sauna facilities.

Page 15

$680 per week

2003/3 Herbert St. St. Leonards

Spacious and fully furnished two

bedroom and two bathrooms unit

with internal laundry & ample cupboard

space, reverse cycle air

conditioning, and balcony from

main bedroom and living area.

Secure parking, concierge, pool &

gym facilities.


Tower & London staff

John Tower

Property Valuer , CEO

John Tower, the founder of the business,

is a licensed Real Estate Agent and a

Registered Property Valuer. His qualifications

include Diploma in Valuation, Advanced

Diploma in Real Estate Agency

and a Masters Degree in Marketing Management.

John's hands-on approach provides personal and long-term

commitment to his clients.

Rosalind Oey

Client Liaison & Registered JP

Rosalind was born in Singapore and

moved to Australia in 1984. Rosalind studied

and worked in the hospitality industry

before making Real Estate her chosen

career since 1997. Rosalind is a licensed

Real Estate Agent and her focus is customer

service.

Kim Phuong

Management Administration - St Leonards

Kim has completed a Bachelor of Commerce

Degree majoring in Tourism Management.

She had three years experience

in the customer service industry before

joining the team at Tower & London in

early 2001, now manages the St Leonards

office.

Mandy Lai

Accounts/Administration - Milsons Point

Mandy was born in Hong Kong and came

to Australia with her family when she was

eight years old. She has completed a

Bachelor Degree in Social Work and joined

Tower & London to pursue her career in

real estate and currently studying Certificate

III in Property.

Tania Enwiya

Property Management - St Leonards

Tania has completed an Advanced Diploma

of Property Valuation. She is becoming

a licensed real estate and registered

property valuer and wants to get her

masters in Urban Estate & Development.

She has been working in the property

industry for four years and have had two

years experience in property valuation.

Ewald Ler’che

Sales Manager

Born in Austria and became an Australian

resident in 1982. Ewald has a Physical

Education background. He competed in

Australian Championships in 1984. In 1988,

he entered a new career working in Real

Estate. He relocated to Sydney in 2000

and recently joined Tower & London as

Sales Manager to continue his career in North Shore Real Estate.

Nicole Mills

Reception - Milsons point

Nicole was born and raised in the Sutherland

shire in Sydney’s south. Since leaving

school Nicole has worked as a receptionist

and in June 2007 joined Tower &

London at reception as a stepping stone

to property management.

Nicole Fynn

Property officer - Milsons point

After completing her HSC, Nicole was a

receptionist for a Commercial Property

Group and this lead her to be passionate

about real estate. She is currently studying

for her Certificate III in Property which she

hopes will further her real estate career.

Page 16


Tower & London offices

Head Office

38 Alfred Street,

Milsons Point NSW 2061

T: (02) 9956 6500

F: (02) 9956 6522

St. Leonards Branch

15 Atchison Street,

St. Leonards NSW 2065

T: (02) 9906 8442

F: (02) 9906 8446

Hong Kong Branch

Suite 1905,

Lippo Centre Tower 2,

89 Queensway, Admiralty

Hong Kong

T: (852) 2918 8788

F: (852) 2918 9808


Useful Resources

Department of Fair Trading

http://www.fairtrading.nsw.gov.au/

P: 9895 0111 F: 9895 0222

Consumer, Trader & Tenancy Tribunal

http://www.fairtrading.nsw.gov.au/cttt.html

P: 1300 135 399 F: 1300 135 247

Real Estate Institute of NSW

http://www.reinsw.com.au/

P: 9264 2343 F: 9267 9190

NSW Department of Lands

http://www.lands.nsw.gov.au/

P: 9228 6666

Office of State Revenue

http://www.dtf.wa.gov.au/cms/osr_index.asp

P: 9262 1100 F: 9226 0834

Real Estate.com.au

http://www.realestate.com.au/

Domain.com.au

http://www.domain.com.au/

Tower & London

http://www.towerlondon.com

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