Sydney developer&nbsp;<a href="https://www.apartments.com.au/developers/central-element">Central Element</a>&nbsp;is doubling down in Drummoyne, lodging plans for a boutique apartment development on St Georges Crescent, only one-kilometre down the road from its first Drummoyne development, Bianca.

The new project at 15A-21 St Georges Crescent,&nbsp;a&nbsp;1,701sqm north-facing site overlooking Iron Cove, will have 45 apartmnts across 10 levels. Eight of the units will be dedicated to affordable housing.

The site sits within walking distance of Drummoyne Village, Birkenhead Point, ferry services and the Bay Run, and offers harbour views towards the Sydney Harbour Bridge and CBD skyline.

Designed by MHN Design Union, the development will deliver a mix of one, two and three-bedroom apartments, alongside resident amenity including a gym, landscaped communal open space and three levels of basement parking.

The project has been lodged under the NSW Government's Low and Mid-Rise Housing reforms, with Drummoyne Village identified as a town centre capable of accommodating additional housing supply.

Central Element acquired the site earlier this year as part of its continued expansion across Sydney's eastern suburbs, lower north shore and inner west.

The developer's current pipeline includes luxury apartment projects Pearl Bondi and a separate development on Lamrock Avenue in Bondi, a residential project in Barry Street, Neutral Bay, and a mixed-use seniors living community in Greenwich.

Central Element Managing Director Nathan Chivas said the project would address a shortage of new owner-occupier housing opportunities in Drummoyne.

"While we're seeing a significant shift across Canada Bay as major infrastructure investment, population growth and planning reform drive a new chapter for the region, in suburbs like Drummoyne there remains a genuine shortage of new boutique luxury housing opportunities for owner occupiers," Chivas said.

"Sites of this nature are increasingly difficult to secure, particularly those that combine a north-facing aspect with direct water outlook. Our St Georges Crescent project responds directly to the market demand, offering a level of exclusivity, outlook and lifestyle in the highly sought after suburb."

The development application has been lodged with the City of Canada Bay Council, with the project expected to launch to market in early 2027.

&nbsp;

Joel Robinson

Central Element seeks second Drummoyne apartment development

The NSW Government has unveiled plans that could deliver around 1,300 new homes across Nowra and Kiama, continuing its push to unlock housing in well-located regional centres along the South Coast.

The proposals, now on public exhibition, would pave the way for around 830 homes in Nowra and a further 450 homes in Kiama, while also introducing affordable housing requirements and increased building heights in key locations.

The larger of the two proposals is centred on Nowra, where the NSW Government is seeking to rezone land within the Mandalay and Riverfront precincts.

The Mandalay sub-precinct, located close to Shoalhaven Memorial Hospital, Nowra Library and the city's aquatic centre, could accommodate around 530 new homes. Around 30 per cent of housing delivered on Homes NSW-owned land would be dedicated to social and affordable housing, equating to roughly 100 homes. Building heights would increase from the current two-storey limit to between three and six storeys.

A separate rezoning proposal for the Nowra Riverfront Precinct would unlock a further 377 homes while creating stronger connections between the Shoalhaven River and the CBD. The plans include building heights ranging from five to 12 storeys, floor space ratios of up to 2:1 and a requirement for two per cent affordable housing.

Together, the two proposals would deliver more than 900 homes across the broader Nowra area, reinforcing the city's role as one of regional NSW's key growth centres.

The housing push builds on previous infrastructure commitments in the Shoalhaven, including government funding aimed at supporting thousands of future homes in West Nowra through upgrades to water and wastewater infrastructure.

Further north, the NSW Government is also progressing plans for the former Kiama Depot site, a two-hectare parcel near Kiama's town centre.

The rezoning proposal would transform the former industrial site into a residential community capable of delivering up to 450 homes. Buildings would range between six and eight storeys, with at least 10 per cent of homes allocated as affordable housing. The proposal also includes approximately 600 parking spaces and improved walking and cycling connections.

Planning Minister Paul Scully said the proposals are designed to increase housing supply in locations close to jobs, transport and services.

"For too long, families have struggled to find somewhere to live, and activating underutilised sites allows us to deliver the new homes these families need," Scully said.

"The Minns Labor Government is getting on with the job of unlocking well-located sites close to transport, jobs, and town centres and building the homes our communities need.

"These rezonings are about removing barriers to housing delivery and making sure land is put to better use so more people can find a place to call home within the communities they choose."

The latest rezonings form part of the Minns Government's broader strategy to accelerate housing delivery across NSW, particularly in established centres where existing infrastructure can support additional population growth.

Community consultation on the proposals is now underway, with feedback set to inform the final planning controls before the rezonings are determined.

Around 1,300 new homes earmarked for Nowra and Kiama as NSW Government pushes housing supply

<a href="https://www.apartments.com.au/developers/mrcb">MRCB International</a> has commenced construction on its latest Gold Coast apartment development, Maris, on the site of the former Sundale Motel in Southport.

The start of construction by <a href="https://www.apartments.com.au/builders/binah-constructions">Binah</a> follows an exceptionally strong sales campaign, with more than 90 per cent of apartments sold since launch. Every purchaser has been local, an&nbsp;indicator of confidence in both the development and Southport's evolution into a thriving CBD.

<a href="https://www.apartments.com.au/new-apartments/maris-southport-20-queen-street-southport-qld-4215">Maris</a> will deliver 192 residences across 20 levels. The project forms part of MRCB's Australian and New Zealand development pipeline now exceeding $1.6 billion in gross development value, alongside a growing portfolio of projects globally.

[smartcode_project:default project_id=134403 project_image_fid=350663]

The company also commenced construction on its $600 million 26 Vista residences in Surfers Paradise last year, following strong sales momentum, with over 70 per cent of residences sold.

Maris has been designed to meet evolving buyer demand, offering architecturally designed layouts suited to long-term liveability. The approach reflects a growing preference for quality and adaptability among Gold Coast buyers.

Positioned next to the Broadwater in the <a href="https://www.apartments.com.au/developments/southport-qld-4215">Southport</a> CBD, Maris sits directly opposite the Broadwater Parklands light rail station and within easy reach of retail, dining and lifestyle precincts, placing residents at the centre of one of the Gold Coast's most connected and rapidly maturing urban centres.

[smartcode_project:default project_id=134403 project_image_fid=372756]

Maris will offer a full suite of resort-style residential amenities, including a pool, gym and sauna, along with a rooftop level featuring decks, lounges and dining and yoga areas that command sweeping views across the Broadwater and out to the ocean.

Binah, a New South Wales headquartered company co-founded by Amen Zoabi and Khalil Hafza in 2008, has expressed its excitement at establishing its first partnership with MRCB.

Binah's Managing Director Khalil Hafza said partnering with MRCB on Maris is a significant moment for Binah.

"MRCB's financial strength and a track record that speaks for itself give this project a solid foundation, and this marks the beginning of what will be a long and successful relationship.

"With the right people, systems and partnerships behind it, Maris is set to become a significant addition to the Gold Coast's premium residential market."

[smartcode_project:default project_id=134403 project_image_fid=350664]

MRCB International CEO Ravi Krishnan said the project's progression to construction reflects both sustained demand and tightening conditions across the apartment sector, as well as MRCB's continued confidence in the Gold Coast market.

"Commencing construction at Maris is a significant step and reflects the depth of demand for quality apartments in well-connected urban locations," said Krishnan.

"Across Southeast Queensland, new apartment supply remains constrained, particularly in established precincts with infrastructure and amenity already in place. Projects like Maris are increasingly critical in meeting that demand, especially on the Gold Coast and in the city's CBD precinct."

[smartcode_project:default project_id=134403 project_image_fid=372761]

Krishnan said Southport's ongoing transformation, supported by infrastructure investment and long-term planning, was underpinning renewed buyer confidence.

"We're seeing a clear shift back towards well-located urban centres where infrastructure, connectivity and amenity are already established," said Mr Krishnan. "Southport is evolving into a more mature CBD environment, and that is being reflected in buyer behaviour."

Construction at Maris is anticipated to be completed in 2029.

[smartcode_project_cta:default project_id=134403]

Construction commences on MRCB’s $200m Maris Residences in Southport

Moonee Valley Park’s latest residential release <a href="https://www.apartments.com.au/new-apartments/the-eveline-at-moonee-valley-park-moonee-ponds-100-thomas-street-moonee-ponds-vic-3039">The Eveline</a>, has achieved a new benchmark for off-the-plan apartment sales in the suburb, with the sale of The Alexandra penthouse selling for $5,435,000.

Positioned on the top floor of a 16-level residential building, the three-bedroom, three and-a-half-bathroom penthouse features uninterrupted city skyline views across the future Valley racetrack.&nbsp;

The landmark sale comes as momentum at the precinct continues to build, with the Moonee Valley Racing Club progressing works on its new racetrack ahead of the 2027 Cox Plate. The transformative development will see MVRC reimagine the beloved Valley as a vibrant year-round entertainment and lifestyle destination.

Alongside a world-class racing experience, the historic precinct will be activated with events, hospitality and public green spaces designed to attract broader audiences, while breathing new life into one of Melbourne’s most iconic destinations.&nbsp;

[smartcode_project:default project_id=142519 project_image_fid=372786]

Development partners <a href="https://www.apartments.com.au/developers/hamton">Hamton Property Group</a> and Hostplus have delivered five residential stages over the past four years, the most recent in November 2025 with Trackside House and Stonepine House. The flourishing community is now home to almost 500 families.&nbsp;

The latest residential release, The Eveline, has recorded strong demand since launching publicly last July, securing more than $200 million in sales to date, satisfying its pre sales hurdle for construction to commence.&nbsp;

Hamton Founder and Executive Chairman, Paul Hameister OAM said, the sales&nbsp;team have been overwhelmed by demand for these unique homes in this unique project.

"Buyers continue to be predominantly hyperlocal and attracted by the 40 hectare botanic masterplan in Melbourne’s inner north west," Hameister said.

[smartcode_project:default project_id=142519 project_image_fid=372788]

Hamton’s Sales and Marketing Director Fergus Humphries said the team has achieved more than 70 sales over the past eight weeks, including the penthouse purchase by a local buyer.

"These results reinforce that, even in a challenging market, purchasers continue to be drawn to quality projects that offer more than just a home, they offer a lifestyle.”

Designed by Cera Stribley, the penthouse has been created with entertaining in mind, spanning close to 400 sqm of indoor and outdoor living space, including multiple terraces designed to capture sweeping views across Melbourne’s skyline, the new Valley racecourse and sunset views over Moonee Ponds.

Moonee Valley Park is one of Melbourne’s largest urban renewal projects, transforming the iconic racecourse site into a vibrant mixed-use neighbourhood integrating homes, parklands, retail, racing and community amenities.

[smartcode_project_cta:default project_id=142519]

Moonee Valley Park penthouse sets suburb record as sales surge clears construction benchmark

A company linked to one of Australia's largest privately owned cattle businesses has lodged plans for a new residential tower in <a href="https://www.apartments.com.au/developments/newstead-qld-4006">Newstead</a>, continuing the rapid transformation of one of Brisbane's most sought-after, inner-city precincts.

Bottletree Holdings, an entity associated with Stanbroke Managing Director Brendan Menegazzo, has submitted a development application for a 28-storey mixed-use tower at <a href="https://www.apartments.com.au/new-apartments/9-longland-street-newstead-qld-4006">9 Longland Street</a>, a site that made headlines last year when it changed hands in an off-market transaction that reportedly set a benchmark land rate for the suburb.

The proposal would replace an existing two-storey commercial building on the 1,510 sqm corner site with a Bureau Proberts-designed tower comprising 76 apartments, ground-floor retail, office space and a suite of resident wellness amenities.

<img alt="9 Longland" data-entity-type="file" data-entity-uuid="c710a836-568e-4382-bc91-3c34b8e80a8b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.41.45%E2%80%AFAM.png?VersionId=Vy.mQWBc7GA_a.vIBdxKqRC9XGjWalo2" />

According to planning documents lodged with Brisbane City Council, the development would comprise a mix of 36 two-bedroom apartments, 24 three-bedroom apartments and 16 four-bedroom residences, positioning the project firmly at the premium end of the market. The apartments would sit above a podium containing retail and commercial space, with three levels of communal recreation facilities spread throughout the tower. The proposal also includes 198 car spaces and 95 bicycle spaces.

Bureau Proberts has drawn heavily on Newstead's industrial heritage in developing the architectural response.

"Occupying a prominent corner in the heart of Newstead, the proposal draws from the area's industrial lineage of robust brick warehouses to deliver a distinctly contemporary response," the architects said in the design statement.

"It is conceived as a subtropical sanctuary and elevated private retreat embedded within one of Brisbane's most vibrant lifestyle precincts."

The design seeks to reinterpret the traditional Queensland vernacular through wraparound verandahs, deep shading elements and permeable facades that respond to Brisbane's subtropical climate.

<img alt="9 Longland" data-entity-type="file" data-entity-uuid="25524f59-395c-4825-8fad-9b639822fa8a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.42.09%E2%80%AFAM.png?VersionId=dlWlbpCc_g3Y6yTLGqRVKvGJvO2ubMJ3" />

Planning documents describe the building as embodying the principles of "buildings that breathe", a design approach increasingly favoured in Brisbane's apartment market as developers focus on natural ventilation and outdoor living spaces.

The tower itself would rise above a heavily landscaped podium designed to reference the woolstore architecture that helped define Newstead and neighbouring Teneriffe for generations. At ground level, fine-grain retail tenancies would activate Longland Street, Wyandra Street and the existing Wyatt Street laneway, further extending the pedestrian network that has become a hallmark of the Gasworks precinct.

The application notes that more than 54 per cent of the site would be dedicated to landscaping and deep planting, while approximately 1,750 sqm of communal recreation space would be delivered across multiple levels.

<img alt="Planning" data-entity-type="file" data-entity-uuid="fed3b189-1054-4b68-af5f-b0befc4a66e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.42.19%E2%80%AFAM.png?VersionId=gqeE3cjsbnLAfeTUKA1HtPZfqDs6S4Xa" />

Bottletree paid $22 million for the 1,510 sqm development site, equating to more than $14,500 per sqm, a reflection of the strong demand for development opportunities in Newstead. The suburb continues to attract both developers and buyers, underpinned by the ongoing evolution of the Gasworks and Teneriffe precincts into some of Brisbane's most sought-after lifestyle destinations.

Brisbane City Council's Sustainable Growth Strategy and Inner City Strategy both identify Newstead as a priority growth precinct capable of accommodating additional housing density due to its proximity to employment hubs, public transport and lifestyle infrastructure.

The proposed tower joins a growing pipeline of high-end apartment developments in the suburb. Fortis recently launched <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a>, a 65-apartment owner-occupier-focused development on Kyabra Street, while Consolidated Properties Group is preparing to launch <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a 227-apartment waterfront project on Skyring Terrace.

Meanwhile, builder-developer BPG is planning its own Newstead project on Maud Street, comprising just over 100 apartments and more than 1,380 sqm of dedicated wellness and resident amenity spaces, further highlighting the shift towards lifestyle-driven apartment developments in Brisbane's inner-city market.

Newstead apartment boom continues with Longland Street tower plans

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

<html><body>
Melbourne took out six of the top 10 sales of last week, according to CoreLogic RP Data.
There were three Sydney homes on the list, with Queensland also getting a look in.
This week, there were no luxury apartments in the top 10. The most expensive home was a $4.35 million Hawthorn family house.
The top 10 sales for the week ending Sunday 7 December:
<a href="https://www.59robinsonroad-hawthorn.com/" target="_blank"><img src="/images/2014/07/04/yellow-one.jpg" alt="" style="float: left;"> 59 Robinson Road, Hawthorn, Vic</a>
<img src="/images/2014/12/09/1.jpg" alt="">
This Hawthorn home sold for $4.35 million through Marshall White Hawthorn – clearing the second highest sale by more than $1 million. The mid 1920s house has four bedrooms and three bathrooms, sitting on 1,034 square metres.
Outside, there is a pool and a separate pavilion with a kitchenette and lounge.
The vendors purchased the home for $1,237,000 11 years ago. In that time, the property has more than tripled.
<a href="https://www.realestateview.com.au/Real-Estate/49-castle-street-eaglemont/Property-Details-buy-residential-7887756" target="_blank"><img src="/images/2014/07/04/yellow-two.jpg" alt="" style="float: left;">49 Castle Street, Eaglemont, Vic</a>
<img src="/images/2014/12/09/2.jpg" alt="">
This five bedroom, four bathroom house sold for $3.25 million through Barry Plant Ivanhoe. With spotted gum timber flooring throughout, the home opens with an entry foyer and before leading to a custom built library. The kitchen includes two dishwashers and a concealed butler's pantry with a built in desk and phone charging cabinet.
The home also has a saltwater pool and spa, with an accompanying pool house. It sold to the vendors for $1,003,000 in 2007.
<a href="https://www.realestate.com.au/property-house-nsw-vaucluse-118424567" target="_blank"><img src="/images/2014/07/04/yellow-three.jpg" alt="" style="float: left;">31 Macdonald Street, Vaucluse, NSW</a>
 <img src="/images/2014/12/09/3.jpg" alt="">
This Vaucluse home was the most expensive Sydney property to sell this week. Belle Property Double Bay secured $3.2 million for the three bedroom, three bathroom house. It sits on a 525 square metre plot overlooking the ocean, bordered by parklands on all sides. The home includes a covered barbecue station and a Jacuzzi.
<a href="https://www.realestateview.com.au/Real-Estate/8a-highfield-grove-kew/Property-Details-buy-residential-7908276" target="_blank"><img src="/images/2014/07/04/yellow-four.jpg" alt="" style="float: left;">8a Highfield Grove, Kew, Vic</a>
<img src="/images/2014/12/09/4.jpg" alt="">
A semi-detached house in Kew sold for $3.15 million through Little Real Estate. The home, near Studley Park, is set over three levels.
Each of the home's four bedrooms have en suites attached, with an additional main bathroom. It also includes a library, home office, marble kitchen with butler's pantry, private lift, home theatre and a north-facing entertainers' terrace and heated pool.
<a href="https://www.realestateview.com.au/Real-Estate/15-kalimna-street-essendon/Property-Details-buy-residential-7890096" target="_blank"><img src="/images/2014/07/04/yellow-five.jpg" alt="" style="float: left;">15 Kalimna Street, Essendon, Vic</a>
<img src="/images/2014/12/09/5.jpg" alt="">
Sitting on a 1,115 square metre plot is this five bedroom solid brick house. It sold for $2,917,000 last week, through Nelson Alexander Essendon. The home includes two bathrooms inspired by the house's period features, with timber cabinetry and spa baths.
The house last changed hands 10 years ago, for $1.86 million.
This article continues on the next page. Click below to continue.
<hr class="system-pagebreak">
 
<a href="https://www.realestateview.com.au/Real-Estate/234-danks-street-albert-park/Property-Details-buy-residential-7906386" target="_blank"><img src="/images/2014/07/04/yellow-six.jpg" alt="" style="float: left;">234 Danks Street, Albert Park, Vic</a>
 <img src="/images/2014/12/09/6.jpg" alt="">
This double fronted Victorian was sold for $2.91 million through The Block alumni Buxton Real Estate Albert Park.
The unrenovated home has five bedrooms and one bathroom, with 13 foot high ceilings and five fireplaces. The listing suggests the 420 square metre plot offers scope for renovations and expansion.
<a href="https://www.realestate.com.au/property-house-qld-chelmer-118297883" target="_blank"><img src="/images/2014/07/04/yellow-seven.jpg" alt="" style="float: left;">60 Laurel Avenue, Chelmer, Qld</a>
<img src="/images/2014/12/09/7.jpg" alt="">
The only Queensland home to make this week's top 10 list was a $2.9 million house sold through Place Graceville.
This 1922 Queenslander has five bedroms and three bathrooms. According to its listing, the former home of Queensland's Post Master General served as a "quiet getaway from the mania of the war rooms in the MacArthur Building headquarters in Queen Street" for General Douglas MacArthur, Supreme Commander of the Allied Forces in the Pacific during World War II.
Donaedie has since been extended and renovated by the vendors, who paid $675,000 in 1993. It sits over 1,629 square metres on four allotments, which it shares with a tennis court, in-ground pool and a <a href="/expert-insights/building/end-of-jacaranda-season-offerings-at-grafton-he-said-she-said">Jacaranda</a>.
<a href="https://www.realestate.com.au/property-house-nsw-clontarf-118530387" target="_blank"><img src="/images/2014/07/04/yellow-eight.jpg" alt="" style="float: left;">23 Allenby Street, Clontarf, NSW</a>
<img src="/images/2014/12/09/8.jpg" alt="">
Buyers paid $2.8 million for this five bedroom Clontarf home, sold through Richardson &amp; Wrench Seaforth. The two storey house is set on a 1,024 square metre northerly corner block. It includes formal and informal living spaces, with glass-topped atriums and a cabana with a wet bar.
<a href="https://www.domain.com.au/property/sold/house/vic/albert-park/?adid=2011605669" target="_blank"><img src="/images/2014/07/04/yellow-nine.jpg" alt="" style="float: left;">352 Montague Street, Albert Park, Vic</a>
<img src="/images/2014/12/09/9.jpg" alt="">
A Victorian terrace in Albert Park sold for $2.71 million through Hocking Stuart Albert Park (another Block veteran). The three bedroom, one bathroom house was sold with permits for a third level extension, which would deliver city views to the home. The house was purchased by the vendors for $955,000 in 2001.
<a href="https://www.realestate.com.au/property-house-nsw-strathfield-118422571" target="_blank"><img src="/images/2014/07/04/yellow-ten.jpg" alt="" style="float: left;">55 Mintaro Avenue, Strathfield, NSW</a>
<img src="/images/2014/12/09/10.jpg" alt=""> 
Vendors secured $2,686,000 for this Strathfield house, sold through Georges Ellis &amp; Co Strathfield. The six bedroom, four bathroom residence is set on an elevated 772 square metre north-facing plot, with an in-ground pool. The house features marble tiles, a games room and a double garage.
</body></html>

jrichardson-uRX5hFdKfN

Melbourne beats out Sydney in most expensive sales of the week: CoreLogic

<html><body>
The property market for houses in Perth has been given a higher risk status in five of a total seven points of measurement from Herron Todd White.
Of the seven points of measurement, the two remaining stable include:
New properties are ‘almost never’ sold at prices exceeding their potential resale value.
The ‘rental vacancy trend’, which, while not exactly for investors, remains at an ‘increasing’ level.
Here are the five indicators that have been upgraded to higher risk status:
<ul>
<li>
Rental vacancy situation - Oversupply of available property relative to demand 
</li>
<li>
Demand for new houses - Soft 
</li>
<li>
Trend in new house construction - Steady 
</li>
<li>
Volume of House Sales - Declining 
</li>
<li>
Stage of Property Cycle - Declining market
</li>
</ul>
</body></html>

jduke-EHk3XBmHkn

Perth property market has ‘higher risk-rating’ in five of seven indicators: Herron Todd White

<html><body>
Summer Hill’s Flour Mill development, from EG, includes 300 apartments and terraces in total, with communal gardens and commercial spaces.
At the weekend event, stage one and stage two saw an 85% sellout, with a total of 127 apartments available.
Of the <a href="https://www.summerhillflourmill.com.au" target="_blank">Flour Mill </a>apartments, studios, one, two and three bedrooms were available, while three and four bedroom terraces could also be purchased.
Within the development there will be 12 studios, each at 50 square metres, and from $555,000, with 10 one bedroom apartments at 46 to 52 square metres from $520,000.
The most common option, with 68 available, are the two bedroom apartments from 82 to 90 square metres priced from $770,000. Two bedroom, plus study apartments are priced from $800,000 and span up to 94 square metres, with two bedroom terraces also available from $865,000.
With 15 three bedroom apartments, ranging from 93 to 115 square metres for the apartment and 161 to 175 square metres for the terrace, the prices are from $950,000 and $1,350,000 respectively.
Four bedroom terraces, up to 180 square metres, are priced from $1,375,000.
<img src="/images/2014/12/08/summer%20hill%20dec%208%20two.jpg" alt="">
While interest was seen across all the apartment types it was first home buyers who were purchasing the studios and one bedroom apartments, while terraces with underground parking and two bedroom apartments with parking were popular.
Overall, 65% of the purchasers were owner occupiers, while the remaining 35% will be investor owned.
Development director of EG, Grant Flannigan, said that the development includes contemporised heritage elements.
“The Flour Mill is all about great living, established open spaces and connectivity – a place to live, to work and a place where it’s easy for people to get together,” he said.
Designed by HASSELL, the development will see construction begin on the first of two stages next year, with completion expected in late-2017.
</body></html>

Summer Hill’s Flour Mill sells 85% of apartments at weekend event

<html><body>
The vintage car collector Paul Vellacott sold his Albert Park house with a historic rear stables for $3.45 million to a US-based expatriate at weekend auction.
The stables, which Vellacott had for 40 years as his garage and showroom, has signatures of motoring greats on the walls in black spray paint.
Winners of 12 Formula One world championships, including Juan Manuel Fangio, Jack Brabham, Jackie Stewart and Alan Jones have signed the walls, along with signatures of other famous motoring identities including Tony Gaze (the first Australian Grand Prix driver), Stirling Moss, Gigi Villoresi, Piero Taruffi and Sandro Munari.
Vellacott bought <a href="https://www.realestateview.com.au/Real-Estate/380-montague-street-albert-park/Property-Details-buy-residential-7908540" target="_blank">380 Montague Street</a> from Morris Bros Dairy in the mid-1970s. South Melbourne - A History by Susan Priestly and published by Melbourne University Press in 1995, wrote the firm of Morris Brothers were the pre-eminent inner-city milk distributors, having begun the partnership of James, Robert and William about 1893, with their main depots in Montague Street, Albert Park and Bay Street, Port Melbourne.
Port Phillip heritage records suggest the 3-19 Little O-Grady Street, Albert Park terraces were "supposedly built to house workers for the urban dairy. The cottage at 1A Little O’Grady Street was originally a manager’s residence for the dairy. 
Set over 302 square metres, the weekend offering came with a three-bedroom cottage and eight car brick garage stable. 
It was sold through Greg Hocking Holdsworth agents Greg Hocking and Warwick Gardiner.
Earlier this year the agency sold the former 1896 bakery at 1a College Place, Albert Park for $3,705,000.
<a href="https://www.realestate.com.au/property-house-vic-albert+park-116896327" target="_blank">Warwick Gardiner, of Greg Hocking Holdsworth, had the listing</a> which traded at $860,000 in 1998.
</body></html>

jchancellor-FAypfDUnLy

Former Albert Park dairy stables sell for $3.45 million

<html><body>
The Australian Bureau of Statistics (ABS) released building approvals data for October 2014 last week.
<img class="aligncenter size-full wp-image-4077" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/Chart-1.jpg" alt="Chart 1" width="500" height="179">
The headline data showed that there were 17,062 total dwelling approvals in October 2014.  Total dwelling approvals increased by 11.4% over the month and were 2.5% higher year on year. 
Although there was quite a strong rebound in monthly approvals, they remain -3.7% lower than their recent monthly peak of 17,721 approvals in January 2014.
<img class="aligncenter size-full wp-image-4078" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/Chart-2.jpg" alt="Chart 2" width="500" height="180">
The large increase in dwelling approvals over the month was driven by the much more volatile unit approvals. 
In October, there were 9,478 houses and 7,584 units approved for construction.  House approvals were -0.3% lower over the month while unit approvals were 30.4% higher.  year on year, house approval have increased by 12.2% while unit approvals have fallen by -7.4%. 
As the second chart shows, the six month trend indicates a slowing of dwelling approval numbers.  The slowing trend in approvals is much more apparent for units whereas house approvals appear to have reached a plateau. 
It is also important to remember that a multi-unit development of units is more risky than developing a single house and ultimately less likely to ultimately be constructed.
<img class="aligncenter size-full wp-image-4079" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/Chart-3.jpg" alt="Chart 3" width="500" height="177">
Looking at dwelling approvals across the combined capital cities, there were 14,635 approvals in October which was an all-time high. 
Capital city dwelling approvals have increased by 18.5% over the month and are 4.5% higher year on year.  You only have to visit any of the major capital cities to see that there has been a significant surge in construction activity of new homes over recent years. 
The approvals data indicates that the dwelling construction pipeline in these regions is continuing to grow.
<img class="aligncenter size-full wp-image-4080" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/Chart-4.jpg" alt="Chart 4" width="500" height="178">
One factor that sets apart the capital city market from the national market is the much greater prevalence of unit approvals.  In fact, over the past two years there have generally been more capital city units approved each month than houses. 
In October, there were 7,139 capital city houses and 7,496 capital city units approved for construction.  The 7,139 house approvals were the highest number of approvals over any month since November 1999. 
Monthly unit approvals were at their highest level since October 2013.  Over the month, capital city house approvals increased by 6.8% while unit approvals rose 32.4%.  Year on year, house approvals were up 15.7% while unit approvals are -4.3% lower.
<img class="aligncenter size-full wp-image-4081" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/Chart-5.jpg" alt="Chart 5" width="500" height="178">
Looking at dwelling approvals across the major capital cities, you can see that approvals are higher than they were a year ago in most cities. 
Dwelling approvals were lower in October 2014 than they were in October 13 in Sydney (-1.6%), Darwin (-42.3%) and Canberra (-43.9%).  Across the remaining capitals, the year on year increase in approvals has been recorded at: 5.3% in Melbourne, 5.6% in Brisbane, 16.3% in Adelaide, 23.4% in Perth and 66.1% in Hobart. 
In Melbourne and Perth dwelling approvals currently sit at near record highs.
<img class="aligncenter size-full wp-image-4082" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/Chart-6.jpg" alt="Chart 6" width="500" height="178">
House approvals are trending higher across each of the major capital cities.  Although the trend is towards more house approvals year on year approvals are now lower in Adelaide (-17.3%) and Darwin (-1.6%). 
Across the remaining cities, the year on year increase in house approvals have been recorded at: 28.3% in Sydney, 23.8% in Melbourne, 28.4% in Brisbane, 4.5% in Perth, 26.3% in Hobart and 3.8% in Canberra.
<img class="aligncenter size-full wp-image-4083" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/Chart-7.jpg" alt="Chart 7" width="500" height="178">
Across the major capital cities, the above chart shows that nowadays a much greater number (and subsequently proportion) of units are being approved for construction. 
It is interesting to note that unit approvals are trending sharply lower in Sydney lately while elsewhere they continue to trend higher.  Also note that for most of the past six years Melbourne has been approving a greater number of units than Sydney. 
As mentioned earlier, the unit data tends to be much more volatile than the house approvals data and is reflected in the year on year change in approvals to October 2014.  Over the period, the change in approvals across the cities have been recorded at: -15.3% in Sydney, -6.1% in Melbourne, -8.3% in Brisbane, +84.4% in Adelaide, +117.8% in Perth, +520% in Hobart, -52.6% in Darwin and -58.4% in Canberra.
<img class="aligncenter size-full wp-image-4084" src="https://blog.corelogic.com.au/wp-content/uploads/2014/12/Chart-8.jpg" alt="Chart 8" width="500" height="178">
If we look over the past 12 months, half of all capital city dwelling approvals were for houses.  In fact, the result is only really driven down by the fact that in Adelaide, Perth and Hobart so few units relative to houses have been approved.  In each of the remaining capitals more than 50% of approvals have been for units. 
Units have historically been less likely to ultimately reach completion than houses.  Given the high number of unit approvals over the past two years and the fact that home value growth is now slowing, you do wonder just how many of these units that are approved will actually be constructed in the current cycle.
Dwelling approvals remain at a very high level and with the rate of population growth slowing, it is encouraging to see that supply has responded on the back of low interest rates and some rises in buyer demand and home values. As the rate of value growth slows along with sales activity, it will be interesting to see how much of this stock which is approved will commence and ultimately make it to completion. 
Furthermore, we know that much of the unit stock which is now so prevalent in inner city areas is being purchased by investors.  With capital growth slowing and rental growth slow, this may also impact on some of the future construction of these approved units. 
The Reserve Bank has also flagged that they, along with banking regulators, are looking to curb higher risk lending to investors. 
We don’t yet know what these curbs may be but once implemented they may act as a further deterrent to investors and put into jeopardy some of these inner city unit approvals coming to fruition.
</body></html>

ckusher-ujnxiKuFQs

Approvals data shows supply responding to low interest rates and buyer demand

<html><body>
Owning your own home may be a dream, but is it the best first move?
Many first time buyers aren't looking for a home to live in – instead, they're seeking investment properties.
If you can purchase an investment property while living with your parents – and are happy to continue living there – you can generate a tidy secondary income or build equity with few outgoing costs.
Some prefer not to live with their parents, or are unable to do so. For those eager to get into the property market, it may seem the pressure is on to settle down in a permanent home. The other option is to rent – but rent money is dead money, right?
Not necessarily. In fact, renting while building an investment property portfolio is a well worn strategy. But what are the pros and cons of buying an investment property and renting before purchasing your first home?
Firstly, it's useful to consider the reasons many choose to make their first property purchase their own home.
<h3>Owning your own home first:</h3>
The pros
<ul>
<li>First home owners grants and concessions</li>
</ul>
Depending on the type of property you are hoping to purchase and where you live, you may be eligible for a <a href="/expert-insights/buying/first-home-owners-grants-set-for-2015-changes-state-by-state-round-up">first home owners grant</a>.
In order to claim a first home owners grant, most buyers will have to live in their home for at least six months (12 months, in some places).
In some states, including Queensland, you will not be able to receive the first home owners grant for a property purchase that isn't your first, even if your first property buy was an investment property.
You may also be able to claim land tax concessions on your first home purchase.
<ul>
<li>Caring for your own home</li>
</ul>
Owning your own home also allows you to dodge many of the worst parts of renting. You're free to decorate, upgrade and make alterations to your own property. Home owners don't have to wait for a property manager to give them permission to make improvements or have that faulty plumbing fixed.
You can also keep pets and welcome additional inhabitants without seeking your landlord's approval.
Property isn't all about money – homes have emotional value. The appeal of owning one's own home is obvious to many.
<ul>
<li>Stability and security</li>
</ul>
Another downside of renting is the lack of security or a consistent lifestyle. Within three months, you could find yourself without accommodation, at the whim of your landlord.
Purchasing a home does not guarantee you will always be able to live there. You may be uprooted for work or be unable to make your repayments. However, generally speaking, you are responsible for ensuring you can continue living in a home you own.
While renting, the length of your stay in your home is totally at the discretion of your landlord.
If you're making your mortgage repayments comfortably, you can then use the spare money to invest in other assets, knowing that you have a stable home.
<ul>
<li>Capital Gains Tax exemption</li>
</ul>
When upgrading and selling your primary place of residence, you don't need to pay capital gains tax – something you will have to do if selling an investment property.
The cons
<ul>
<li>Fewer tax exemptions</li>
</ul>
While owning your own first home will allow you to dodge capital gains tax, you also have fewer tax exemptions available to you than you would if investing. As your home is divorced from your income, you won't be able to claim deductions for interest payments or upgrades to your property.
<ul>
<li>No income</li>
</ul>
Unless you rent out some parts of your house while you live in them, your house will only deliver you cash on the day you sell – and even then, it may not.
What you gain by owning your own home, you lose in cash flow.
<ul>
<li>The growth/lifestyle trade off</li>
</ul>
Some are willing to sacrifice a lot to live near the CBD, or their parents, or their friends, or their child's school.
Unfortunately, the best places to live may not be the places you can afford, or places that have good investment potential. If you're sure you won't be happy unless you live in the inner city, but can only afford to buy in the far western suburbs, buying a home may not be for you.
The places that make the best places to live – for many reasons ­– are not necessarily the best places to invest. Nine years down the track, you may realise your dream home hasn't appreciated in value at all in the time you've lived in it.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
<h3>Buying an investment property and renting</h3>
The pros
<ul>
<li>Cash flow</li>
</ul>
An income generating property, if managed properly, can pay for itself (literally). If cash flow positive, the rental income you receive could cover outgoing costs and your mortgage payments (including interest). If it's generating a healthy rent, it could even cover your own rental payments.
Not all investment properties will be positively geared, particularly if they're recent purchases. As your investment property is an income generating asset, you can claim interest payments as tax deductions if your property is negatively geared. If you back your property to appreciate and generate capital growth when you sell it, and your taxable income is considerable, this could be a worthwhile strategy.
<ul>
<li>Tax exemptions</li>
</ul>
Beyond negative gearing, an investment property has many other tax benefits. Outgoings including maintenance, improvements and repairs can be claimed as deductions, as can depreciation. Speak to your accountant before making an investment to see what you will be able to claim.
<ul>
<li>Flexible purchasing arrangements</li>
</ul>
If you're purchasing a home to occupy, it's unlikely many people, beyond your co-inhabitants, will be willing to contribute. But if you're buying an investment property, you may be able to work with family members, or friends, splitting the income generated. If you're considering this option, make sure you know the <a href="/expert-insights/buying/should-i-buy-a-property-with-a-friend-six-things-to-consider-first-ask-margaret">potential draw backs</a>.
<ul>
<li>Equity</li>
</ul>
If your investment property is positively geared, you can use the income to pay off your mortgage, building equity faster than you may be able to if you were paying off the mortgage of your own home using just wages.
That equity can then be used to expand your property portfolio.
The cons
<ul>
<li>First home owner grants</li>
</ul>
Many grants and concessions will not be available to you for your first purchase if it is not your primary place of residence. Even if you do buy a home to live in later on, you may find that you are no longer eligible for a first home owner grant due to your first purchase.
Some first time investors choose to live in their newly acquired property for six or 12 months to get the first home owners grant before moving out and renting the home. However, if the tax office can successfully prove you never intended to make the property your principal place of residence, you may be required to pay back the grant.
<ul>
<li>Volatile costs</li>
</ul>
Part of the allure of renting is never having to pay for maintenance (unless, of course, an issue is your fault). Leaks, mould or flooding isn't your problem, it's your landlords. Of course, if you rent and buy an investment property, suddenly you are a landlord – and all those problems with your investment property are now your own.
Don't underestimate the time and cost of maintaining a rental property. If you have a good property manager, you may have relatively few surprise costs. But for some unlucky property managers, the first time they hear about a leak is six months after it was reported, when the pipe has burst and the ceiling is ruined – blowing a small cost into thousands of dollars.
If you're purchasing an investment property, make sure you have plenty of time and money to deal with maintenance.
When renting and owning an investment property, you get all the frustrations involved on either side of the fence.
As a renter, you also face uncertain costs. Mortgage payments are generally quite regular, even with rate changes. The rent your landlord chooses to charge is not necessarily so consistent. If your landlord decides not to renew your lease, you are also tasked with finding new accommodation (and, normally, paying bond and a month's rent up front).
<ul>
<li>Capital Gains Tax</li>
</ul>
You will be required to pay capital gains tax when it's time to trade any properties that are purely investment assets. You aren't required to do so when selling your primary place of residence.
<ul>
<li>Relinquishing control</li>
</ul>
As many renters can attest to, living in a property you don't own can be a frustrating experience. Maintenance seems to take double the time it should, costs can go up unexpectedly and you can't customise your home the way you would like.
<ul>
<li>Which is a better strategy?</li>
</ul>
The answer will, of course, depend on the property you're hoping to purchase, your priorities, and your investment goals.
For some, the first home owners grant is negligible when compared to potential rental income. For others, the frustrations of maintaining a property that you don't have control over just isn't worth it, especially if you have no experience in property. Negative gearing benefits may not make a difference to someone on a low income, and if you're disinterested in renovations, you may be very happy to rent for the rest of your life.
Purchasing your first property is a complex investment and big financial responsibility – make sure you do your research. Speak to an accountant and be honest about your personal goals before jumping into the property game.
</body></html>

Buying an investment property while renting: The pros and cons

<html><body>
Last month, the proportion of first home buyers in New South Wales dropped to 1.9% - or less than one in 50 borrowers, according to AFG statistics.
This November figure is the lowest ever level recorded and coincides with drops to historic lows also recorded in Victoria and South Australia. Their first home buyer proportions were recorded at 7.4% for Victoria and 6.3% in South Australia.
Queensland first home buyers have lifted off the lowest levels seen last month, at 4.7%, to a marginally improved 5.2%, while Western Australia’s first home buyers are up to 19.1% from 17.9%.
Investors are still a strong segment, totalling 40.7% of new loans and spanning up to 50.9% in New South Wales. This drops to 39.8% in Victoria and 35.9% in South Australia. In Queensland and Western Australia investors make up 34.5% and 29.8% of the market respectively.
AFG’s general manager of sales and operations Mark Hewitt said that they’ve been highlighting the imbalance in the market since losing the first home buyers grant in a number of areas.
“Last month was the closest to zero we’ve recorded for NSW, and first home buying is well below its long term trend of around 12% to 15% everywhere except in WA,” said Hewitt.
They point to a $10,000 grant available for first home buyers purchasing new properties in WA and $3,000 for established purchasers.
</body></html>

New South Wales first home buyers now strikingly uncommon

<html><body>
In six capital cities across Australia, Herron Todd White has noted that new houses are being sold ‘occasionally’ at higher prices than their potential re-sale value.
Digging deeper, however, are some important results for new property buyers across other markets.
Houses in Queensland’s Gladstone, Mackay and the Gold Coast were given a ‘very frequently’ indicator, while in Gladstone it was noted as being the case ‘almost always’.
Ipswich and Toowoomba were also given a ‘frequently’ rating for both units and houses.
Units in the Gold Coast were given an ‘almost always’ rating, while Mackay was recorded as ‘very frequently’ having the potential to sell for less than they were bought for.
The Month in Review report for December 2014 noted that just two states escaped this factor, with Perth and Canberra given an ‘almost never’ rating.
While none of these have changed from the previous month in October 2014, Perth was given a ‘very frequently’ label for this factor, while for Sydney it was noted that this happened ‘frequently’. All other capitals remained the same.
For units, however, Sydney scored a ‘frequently’ rating, while the other capitals saw no differentiation between houses and units in the overall results.
It was also labelled as frequently in Wollongong and ‘very frequently’ in Newcastle.
Across both Victoria and Tasmania, only Horsham saw a ‘frequently’ mention – this was for both houses and units. Most other areas for units and houses were said to be ‘occcasionally’ seeing this happen.
</body></html>

New Gladstone houses and Gold Coast units ‘almost always’ purchased for more than potential re-sale

<html><body>
When you head to an auction, if you aren’t the top bidder you are, by definition, the ‘underbidder’.
Usually reserved as a term just for the second-highest bidder, the under bidder usually misses out on purchasing the property. It can also refer to all of those who bid below the highest bidder on the day.
Negotiating immediately after auction, if the property is passed in, usually goes straight to the highest bidder first.
It is good practice for a real estate agent to keep the underbidder, and often other bidders, around at the time of these negotiations in case the highest bidder doesn’t end up purchasing the home.
However, being the underbidder isn’t always a bad thing. Any bidder can potentially end up the underbidder on the day – remember, it’s better to be the underbidder than to be the bidder who overpays. Underbidders are those that have ‘tapped out’ when it has gone beyond what they are prepared to pay.
When you don’t want to be the underbidder is when you would have happily paid more for the home, but lack of confidence or a range of other factors came into play impacting your performance at the auction. Sometimes your rival bidder will have more money than you, but this isn’t always the case. <a href="/expert-insights/investing/winning-at-auction-isnt-amount-having-the-most-money-its-about-strategy">James Buyer Advocates’ Kristen Hatt shared a situation</a> with Property Observer earlier this year where the underbidder spent more, later on, for a very similar property.
If you do set out to win, and you don’t want to be the underbidder, then you need to think strategy. Effectively, underbidders and the highest bidder set the pace at the auction and together will drive the price up.
YOU MAY ALSO WANT TO READ
<a href="/expert-insights/buying/six-tips-for-keeping-a-cool-head-at-auction">Six tips for keeping a cool head at auction</a>
<a href="/expert-insights/buying/twelve-tips-for-bidding-at-property-auctions">Twelve tips for bidding at auction</a>
</body></html>

What is an 'underbidder'? Property investment terms explained

<html><body>
The residential property market differs from suburb to suburb in many different ways.
Some suburbs are tightly held, some are in high demand from buyers and in others, sellers are seeking to capitalise on improved local conditions.
It is in these suburbs that CoreLogic RP Data has recorded a substantial increase in the number of houses listed for sale compared to a year ago.
In undertaking this analysis only those suburbs within a 30 kilometres of the CBD have been considered as outside of this, development suburbs become more prevalent and that affects the outcome. In those suburbs the high rate of listings is a factor of developers’ centralised decision-making as opposed to the individual decisions of 100’s of owners.
The suburb where owners have been seemingly queuing up to sell is <a href="/news">Doncaster</a>.
Compared to a year ago there has been a 41% rise in listings. Over the same time the median sale price has grown by 15.5%, well in excess of the citywide 9.7%. This suggests that sellers have been motivated by high buyer demand.
Second on the list is <a href="/news">Heidelberg Heights</a> with a 33.3% rise in listings. Not unlike Doncaster, sellers have been rewarded for their decision with the median sale price rising by 14%.
Third on the list is <a href="/news">Burwood East </a>where those seeking to sell have increased by 30.9%. It is followed by <a href="/news">Sunshine</a>, <a href="/news">Forest Hill</a>, <a href="/news">Preston</a>, <a href="/news">Parkdale</a>, <a href="/news">Vermont South</a>, <a href="/news">Glen Iris</a> and <a href="/news">Altona North</a>.
The common factor in each case is an above average rise in the median selling price. Now of course there are exceptions to this, for instance <a href="/news">Bayswater</a> has seen a 17% fall in listings and 11.5% rise in the median selling price but the in the majority of circumstances strong local markets encourage owners to sell.
There are 1,570 auctions scheduled this week in Melbourne compared to 1,535 for the same time last year. The highest volume of auctions will be found in <a href="/news">Mount Waverley</a> where there are 26 expected.
The November CoreLogic RP Data November Home Value Index showed that house values fell by 2.8% and unit values fell by 1.5%.
The market in Melbourne clearly slowed in November as volumes rose and the clearance rate dropped resulting in a reduction in property values.
Over the year the Melbourne property market has showed healthy growth. With one month left in 2014 house values have risen by 6.5% and units by 1.6%. Viewed in conjunction with what has been a small rise in transactions compared to last year these results show a moderate and not booming market.
The clearance rate for November was 66.8% and there were 5,722 auctions held with 3,819 selling. This is lower than the 68.2% recorded last year
Volumes look set to remain high until the end of the year and this will be welcomed by buyers, especially as the clearance rate has been edging lower.
On a citywide basis, the time on market results for houses sold at private sale rose from 31 to 32 days over the last week and vendor discounting eased slightly to -4.9%.
Key data
<ul>
<li>Clearance rate week ending 30 November: 63%</li>
<li>Melbourne auctions expected week ending 7 December:  1,570</li>
<li>Melbourne private sales time on market week ending 30 November: 32 days (houses)</li>
<li>Melbourne vendor discounting market week ending 30 November: -4.9% (houses)</li>
<li>Listings being prepared for market are 0.5% higher in month ending 30 November (seasonally adjusted)</li>
</ul>
</body></html>

Latest Buying Insights

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Buying Insights

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News