The secret weapon for selling prestige property

When architect Phillip Mathieson first walked members of Third.i property group through the interiors he had designed for their Kurraba Point “super penthouse”, there were a few raised eyebrows. It wasn’t the million-dollar kit-out of furniture and decor by French luxury brand Liaigre that was disconcerting his clients — it was the art. Not the Brett Whiteley linocut of a dove, or the intricately patterned larrakitj (memorial pole) by Yolngu artist Malaluba Gumana, but the yellow mirrored work by young queer artist Tay Haggarty, which appeared to be pinioned to the wall by four white socks.

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Mathieson, whose architecture firm was charged with the interiors for all 24 residences in Third.i’s new Sydney Harbour-side development (including 21 harbourfront apartments and two sub-penthouses), was given free rein on choosing the art for the penthouses, and engaged the expertise of Artbank: a governmental body whose collection of more than 10,000 Australian artworks spans from the 1920s to now, all available to lease. In the super-penthouse, the selection includes a monumental work in black Belgian marble by the late Melbourne artist Joel Elenberg (who smashed the sales record for Australian sculpture in August 2023 with a similar work, which sold for $925,000) and a mix of abstract and figurative works by significant artists such as Bronwyn Oliver and Marion Borgelt.

Architect Phillip Mathieson at the Kurraba Penthouse. Elton John was recently suggested as a possible buyer for the property, claims which were firmly denied by his representative.

Amongst these, Haggarty’s piece stands out: “It’s quite a controversial piece to have in there, given that it’s a very high end development,” says Artbank consultant Carey Corbett, who worked closely with Mathieson Architects to select the works. “I imagine the expected clientele is not so familiar with their work, being a younger artist — and possibly not the sort of artist that some of those prospective buyers would have in their homes.”

But Haggarty’s piece, titled Sun on Bare Back, provides a moment of delicious, cheeky dissonance within the elegant surroundings.

Tay Haggarty’s Sun on Bare Back is a controversial choice, Artbank consultant Carey Corbett says.

It’s the kind of memorable moment designed to cut through at the top end of the market.

As Mathieson says: “Quite often what happens when there’s a display suite for a project, or even when a project is finished, either it’s left empty or it’s furnished with rental items, and you end up with a bad reproduction poster on the wall; it’s all very generic. The Kurraba project was unusual in that the developer, I think partly because of the market that they were going after and the calibre of the location and the apartment itself, saw the value in buying furniture -— and therefore the natural extension of that was to fully provide the experience of how someone might live.

“The art is part of that.”

Lachie Gibson, founder and CEO of Melbourne developer ANGLE, agrees. His outfit prides itself on providing a holistic package of high quality location, architecture, landscape and interiors — and he sees art as a “crucially important” extension of that. ANGLE champions Australian creatives, partnering with emerging talent (including furniture designer Thomas Lentini, before he broke into the big league) and local heroes such as Dinosaur Designs, design firm Flack Studio, commercial galleries and Artbank, to create distinctive interiors for their high-end residential developments, including the multi-award-winning Fenwick, in Kew.

“We’ve had success over the years selling off the plan, but at the end of a project you might have a $6 million penthouse [not yet sold] and so you’re styling it for sale — and the difference between the kind of generic property stylist that the real estate companies use and partnering with someone like Artbank, is huge,” Gibson says.

Even when apartments are sold off the plan, ANGLE typically brokers relationships between buyers and interior designers, who will then do a full furniture and art fit out. “Obviously it’s awesome for the client — it elevates their space and makes it feel incredible. But also for us as a developer, the photographs of those completed spaces become almost our number one marketing tool,” Gibson says.

“It’s pretty easy to go and render something up, but having a built space that’s got amazing artwork is hugely advantageous to us.”

For their latest development, Fenhurst, ANGLE is partnering with Artbank to select hero pieces for the common areas, and with Melbourne gallery Daine Singer for apartment artworks — which will be shown in marketing renders, but available to see in the flesh (and purchase) from the developer’s Harold Street Gallery: a multi-purpose space in Camberwell that was designed by Fleur Sutherland and showcases ANGLE’s regular collaborators alongside a rotating selection of pieces from Artbank and Craft Victoria.

It’s not just developers harnessing art for a competitive edge. When Simon Hakim, CEO of creative agency Hunter, and his wife decided to put their stunning home “Rail House” in Melbourne’s Northcote on the market, they knew they needed art for the massive walls in their central living area.

“Over the years, we’d been talking about putting artwork up there, and had a built-in rail installed specifically for art [but] we couldn’t ever decide on what we liked,” he says. Then a neighbour introduced Hakim to Artbank, which has short and long-term and annual leasing plans that range from $165 to $5500 per annum.

“It was a really good way to test out the art wall — and to see massive works that we were able to display [on the rail] but couldn’t afford,” Hakim says.

In the end, they leased a series of prints by photographer Bill Henson.

“It filled an empty void; it made a huge impact on the house. [And] we had a lot of comments about the work [from prospective buyers],” says Hakim.

Sydney property agent Georgia Cleary, of McGrath Paddington, says there’s an increased appreciation of art across the market these days, and in the prestige end of the market in particular: “People will pay tens of thousands of dollars to style their properties, and you can’t put prints into those homes.”

McGrath generally asks stylists not to put art on the walls, and instead partners with local artists and galleries to select high-end pieces. “We’ve found that the market responds really well to original works [rather than reproductions or prints],” says Cleary. “It elevates the perception of the property as ‘prestige’.”

No matter whether you’re a first home buyer or a seasoned investor, entering the property market right now, in whatever capacity, is a tricky task thanks to high interest rates and a super competitive market across the board.

With Google searches like ‘how much deposit do I need to buy a house’ and ‘how to get a home loan’ currently trending, there’s one question potential buyers should be asking, as well: ‘what are the things to stop doing before applying for a home loan’.

Barbara Giamalis, a mortgage broker at Tiimely Home, has over 25 years of experience on the matter, and says there are certainly some factors to consider when applying for a home loan that can better your chances of success.

“There’s no right or wrong time to purchase a home; it all depends on every person’s financial situation, but you must ensure you’re comfortable paying back the loan based on your personal financial circumstances,” said Ms Giamalis.

“The number one question I’m asked is, ‘how much can I borrow?’, but there’s a huge difference between what people can borrow now in comparison to rates. By enacting some of these small tips below, it might just be the difference between getting approved or denied for a home loan.”

Below, Ms Giamalis lists five things you should consider stopping if you’re planning to apply for a home loan. And with predications of lower interest rates coming into play this year, there’s never been a better time to get on top of the home loan race.

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1. Consider cancelling your credit card

This is a simple one. Typically, if you’re looking to borrow more money for a higher loan, it’s wise to close any credit card accounts you have open. Contrary to popular opinion, you definitely don’t need a credit card to build your credit score to get a home loan.

“If you’ve got credit cards, try and pay them off and cancel them before applying for a loan because it gives you greater borrowing power,” said Ms Giamalis.

“You don’t need a good credit score through a credit card to get approved for a home loan as your credit rating is what it is. If you’re a first-time borrower and never had a loan, your rating won’t be great, it might be around 700, but it’s better than having 800 with two credit cards.”

Typically, a credit card rating is calculated from your credit report, which is essentially a history of your credit card actions. It’s calculated based off your line of credit (the amount you have borrowed), your credit application history, and whether you have paid your debts in time. Your score will be highlighted between zero to 1,200; the higher the score, the better your odds are of getting a loan. The lower your score, riskier you present to potential lenders.

2. Stop using ‘Buy Now, Pay Later’ schemes

We’ve all been there. ‘Buy Now, Pay Later’ services present as extremely attractive payment alternatives when shopping online. But therein lies the danger; such services rely on its customers not making repayments in time.

And if you’re considering applying for a home loan, it’s wise to avoid using such services all together.

“If an applicant opts to pay off purchases in increments, even interest-free payments, this could signal to some lenders that the applicant may not be financially stable,” said Ms Giamalis.

“Most lenders will look at the living expenses of an applicant. If an applicant is using ‘buy now, pay later’ services more than what they have in their savings, this could be a red flag and lenders could question whether they can afford a loan.”

Services like Afterpay also have the right to report any missed payments on your credit history, which could definitely have a negative impact to your credit score.

3. Don’t put off saving for future mortgage repayments

Before applying for a home loan, a good indication of whether you would be able to afford the monthly repayments on your mortgage is demonstrating the ability to save the amount. This, along with saving for your ten or 20 percent deposit, will put you in good stead for your home loan preparation, and will show lenders that you’re disciplined when it comes to finances.

“One of the best tips for young people, and one they can start doing now, is to start saving for their monthly mortgage payment before applying for a home loan as it shows dedication,” said Ms Giamalis.

Ms Giamalis adds that having a three-month saving history is a great way to prove this to potential lenders.

Here are some friendly financial tools to assist you along the way.

4. Stop gambling and making cash withdrawals

According to Gambling Statistics Australia, 6.8 million Australians participate in some form of gambling each year. This could include activities like buying a ticket in the lottery right through to using gambling apps and visiting casinos. This can present as an obvious red flag to lenders, who will take this into account when deciding to service a home loan application or not.

Another factor to consider is cash withdrawals. If you’re someone who is making regular ATM cash withdrawals per week or per month, this can be a problem as the potential lender can’t track where this money is going. Experts suggest it’s better to have purchases that are traceable.

“Large one-off purchases such as a couch, a new hot water service or a motor vehicle, won’t be taken into an applicant’s living expenses as it’s a one-off meaning the banks will look at that as a discretionary cost,” added Ms Giamalis.

5. Don’t hold onto student debt

One of the key considerations your mortgage broker or financial professional will consider in the home loan application process is paying out any debts you may have outstanding, such as your higher education debt.

It might seem obvious that paying off a HECS debt will strengthen your chances of obtaining a home loan, however, Ms Giamalis says many people often don’t factor in these debts.

“The Higher Education Loan Program (HELP) impacts your borrowing power. HELP debt is a liability that you need to declare in the home loan application process,” said Ms Giamalis.

“The impact of HECS on your ability to get a home loan may vary depending on your income level and the amount of your HECS debt. Seeking financial advice before deciding to pay off your debt is crucial.”

Many are not in the position to pay off their student loans immediately, so this point comes as an additional should you be in the position to do so. This also applies even in light of the Federal Government’s proposal to wipe a reported $3 billion in debt from three million Australians who have HECS debts through indexation changes, essentially capping indexation rate for loans. The proposal is designed to lend a hand in helping young tertiary educated Australians pay off their student loans.

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The secret weapon for selling prestige property

Developers, architects and agents are turning to contemporary Australian art to make their properties stand out from the crowd

If you’re looking to secure a home loan, you might want to consider these expert tips…