2007 Spring

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