Salute to a Randwick Icon
Randwick’s Swan Isle is a meticulously restored heritage estate. With a $14 million guide, the palatial residence blends Victorian grandeur with modern luxury.
2 min
As local legend has it, retired Colonel William Farrell Commanding Officer of the first infantry regiment, stood on the balcony of his new Randwick residence back in 1906 and watched his soldiers parade by, saluting his honour.
Today, more than a century later, Swan Isle itself deserves a salute as it remains one of Sydney’s most meticulously maintained heritage addresses.
The 1349sq m estate in Randwick made an appearance on the market in early 2024, at the time asking $20m – a figure that would have eclipsed the suburb price record of $14.35 million set that same year.
Ray White Double Bay’s Kate Smith, and principal Elliott Placks, have brought the palatial seven-bedroom home back to market with a new campaign and an amended guide of $14 million.
The $6 million price correction may seem significant, but the eastern suburbs’ prestige property scene evidently sets its own pace.
Just last week the period residential estate Iona in Darlinghurst – once owned by Hollywood elite Baz Luhrman and Catherine Martin – sold for top dollar after an apparent $13 million “discount”.
That heritage estate had been marketed unsuccessfully in 2024 with a $40 million guide, was then slashed to $27 million at the start of this month, but sold in just 12 days for $37.5 million.
Since Swan Isle last sold in 2002 for $2.02 million, the two-storey home at 87 – 89 Darley Rd has been lovingly restored by the current owners and retired hoteliers, Robert and Mary Lou Richards.
The Richards were the publicans of The Strand, in Darlinghurst in 1992 and the Rocksia in Rockdale between 2012 and 2020.
After Colonel Farrell and his wife Frances raised five children at the historic home, the property was later used by St Jude’s Anglican Church for monthly services.
By the mid-20th century it became a private hotel and was then returned to private hands in 1960.
Inside, the stately residence expertly balances period charm and contemporary convenience with formal and casual living rooms featuring high ornate ceilings, chandeliers, polished timber floors and intricate lead light windows.
There are also original fireplaces and bespoke joinery that has been crafted to suit the home’s Victorian past, while modern upgrades include a modern kitchen with stone surfaces, Ilve and Miele dishwasher and a butler’s pantry.
All seven bedrooms are spread across both levels, plus two of the four bathrooms have elegant freestanding tubs and dual vanities.
In addition to multiple entertainment spaces downstairs, the upper floor houses a study, media room, billiards room and several balconies capturing panoramic views of Centennial Parklands and the city skyline.
Outside, the expansive grounds are home to manicured gardens befitting the romantic era, and more 21st century inclusions such as a barbecue area, a heated swimming pool, and a self-contained pool house that doubles as a studio.
The block has dual street access with Huddart Lane and there is an automated four-car garage with ample storage.
Swan Isle is close to Royal Randwick Racecourse, Allianz Stadium, Moore Park Golf Course, the Entertainment Quarter and the SCG.
Swan Isle at 87-89 Darley Rd, Randwick is listed with Kate Smith and Elliott Placks of Ray White Double Bay. It is listed via private treaty with a $14 million price guide.
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Australia’s housing market defies forecasts as prices surge past pandemic-era benchmarks.
First-home incentives can still form part of a long-term investment plan if used strategically.
3 min
Australia’s home prices continue to grow, and while that makes them great investments, they are also some of the most unaffordable in the world.
That’s why first-home buyer schemes such as the First Home Owner Grant, the First Home Guarantee, and stamp duty concessions have become so valuable.
These programs are designed to reduce upfront costs and fast-track people into homeownership.
But the question many aspiring investors are now asking is can these schemes be used as part of an investment strategy? These government initiatives aren’t designed for investors, but they can still play a key role in your long-term investment journey if used strategically.
What the schemes actually allow
Every first-home buyer incentive in Australia is created to support owner-occupiers, not investors.
Whether it’s a cash grant, reduced deposit requirement, or a stamp duty discount, the catch is always the same in that you must live in the property for a set period of time. For example, the First Home Owner Grant often requires you to live in the property for at least six to twelve months, depending on the state.
The First Home Guarantee allows you to purchase with just a 5 per cent deposit without paying lenders’ mortgage insurance, but again, you’re required to live in the property for at least one year.
Likewise, state-based stamp duty concessions are only available for properties intended as a principal place of residence. If your intention from the outset is to buy a property solely for rental income, you won’t be eligible. However, if you’re open to living in the property initially, then transitioning it into an investment, there’s a path forward.
A strategy that works
Rentvesting has emerged as one of the most practical ways for first-time buyers to take advantage of these schemes while also laying the groundwork for a property portfolio.
The concept is simply, buying a property in an area you can afford (using the first-home buyer schemes to assist), live in it for the minimum required period, and then rent it out after fulfilling the occupancy condition.
This approach lets you legally access the benefits of first-home buyer schemes while building equity and entering the market sooner. Instead of waiting years to save a full 20 per cent deposit for an investment property, or getting priced out altogether, you get your foot in the door with reduced upfront costs.
Once you’ve satisfied the live-in requirement, the property can become an income-generating asset and even serve as collateral for your next purchase.
What to look for in a rentvestment property
If you plan to eventually convert the property into an investment, you need to think beyond your short-term living experience. It’s essential to buy a property that performs well both as a home and as a long-term asset.
That means looking at key fundamentals like location, rental demand, and growth potential. Suburbs with strong infrastructure, access to employment hubs, good transport links, and low vacancy rates should be high on your list.
A balanced price-to-rent ratio will help ensure manageable holding costs once the property transitions to an investment.
Established low-density areas often outperform high-rise apartment developments that flood the market with supply and limit capital growth. And ideally, your property should offer scope for future improvements, whether that’s a cosmetic renovation, granny flat addition, or potential to subdivide down the track.
Mistakes to avoid
There are a few common missteps that can undermine this strategy. The first is selling too soon. Some grants and stamp duty concessions include clawback provisions if you offload the property within a short period, which could see you lose the benefits or even owe money back.
It’s also a mistake to let the lure of a government handout sway your purchasing decision. A $10,000 grant doesn’t justify compromising on location, growth prospects, or property fundamentals.
Another pitfall is failing to consider the financial impact once the property becomes an investment. Repayments, tax treatment, and outgoings may change, so it’s important to stress-test your position from day one.
Lastly, beware of buying into oversupplied areas simply because they’re marketed to first-home buyers. Not all new builds are good investments. If hundreds of identical properties are being built nearby, your long-term growth could be seriously limited.
With the right approach, your first home can be the foundation for an entire property portfolio. It starts with using available government support to lower your entry cost.
From there, you occupy the property for the required time, convert it to an investment, and leverage the equity and rental income to fund your next purchase.
Many of the most successful investors today began with a single, strategically chosen property purchased using these exact schemes. By buying well, you can turn your first home into the launchpad for long-term wealth.
Abdullah Nouh is the Founder of Mecca Property Group (MPG), a buyers’ advisory firm specialising in investment opportunities in residential and commercial real estate. In recent years, his team has acquired over $300 million worth of assets for 250+ clients across Australia.
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