Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

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Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

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Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

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While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

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The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

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Joel Robinson

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

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Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

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Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

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A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

The Walden pairs house-scale living with North Sydney connectivity

The ACT will become the first jurisdiction in Australia to abolish stamp duty for all first home buyers, with no income caps and no property price thresholds from 1 July.

The move, announced as part of the ACT Budget, completes a key election commitment from the Barr Government and removes what Chief Minister Andrew Barr described as one of the biggest barriers to entering the housing market. The reform forms part of the ACT's long-running transition away from transaction taxes and towards a broader-based property tax system.

"This budget marks a major milestone in our long-term tax reform program," Barr said, adding that the government had maintained a sustained focus on removing barriers to home ownership. He said stamp duty had long been one of the largest upfront hurdles facing buyers and that from July, "that barrier is gone" for first home buyers in the Territory.

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The changes come alongside a range of measures designed to encourage new housing supply, including support for the delivery of so-called "missing middle" housing such as terraces, townhouses and low-rise multi-unit developments.

The announcement has renewed debate around whether the ACT's approach could provide a blueprint for improving housing affordability nationally.

New research from OurTop10.com.au, conducted by Primara Research, suggests the Territory's decade-long reform agenda has produced outcomes unmatched elsewhere in Australia.

While stamp duty costs have increased by an average 67 per cent nationally over the past decade, the ACT has recorded growth of just 15 per cent, the lowest increase of any jurisdiction.

The Territory has also emerged as one of the strongest performers on housing delivery. Based on population-weighted housing targets, the ACT is sitting less than one per cent behind its target. Victoria is the next closest at seven per cent behind, while the national average sits 25 per cent below target. New South Wales is tracking 39 per cent behind.

The latest reform removes one of the final barriers facing first home buyers in Canberra.

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The average Australian home buyer currently pays $61,714 in stamp duty. In the ACT, that figure is $38,399 despite the Territory having the third-highest median house price in the country.

Until now, the ACT's first home buyer concession scheme only applied to purchases up to $1.02 million, around $51,000 below Canberra's median house price of $1.071 million. In practical terms, many first home buyers were unable to access the median-priced home without losing the concession.

From July, those restrictions disappear.

Every first home buyer in the ACT will pay no stamp duty, regardless of income or purchase price.

Canberra remains one of Australia's most expensive housing markets, with dwelling values increasing 82 per cent over the past decade. However, that growth ranks only 11th among Australia's 15 major housing markets, suggesting affordability pressures have been less severe than in many other parts of the country.

Simon Ma, CEO of OurTop10.com.au, said the latest reforms recognise that many first home buyers have simply outgrown thresholds set years ago.

"Many first home buyers aren't just looking for a way onto the ladder, they want a home their family can actually live in," Ma said.

"In a market where the median house price is over a million dollars, a concession scheme that cuts out at $1.02 million was never going to get them there.

"Removing the ceiling entirely means ACT first home buyers can now pursue the home they actually want, rather than limiting themselves to a price point designed for a very different market."

Whether other states follow remains to be seen. But at a time when most jurisdictions are struggling to improve affordability while also increasing housing supply, the ACT has quietly become the national test case for both.

15% stamp duty growth. Just 1% off the national housing target. Zero stamp duty for FHBs. Is the ACT the blueprint for the great Australian dream?

ACT abolishes stamp duty for first home buyers

A rooftop pool and spa overlooking the Brisbane CBD, private dining spaces, expansive landscaped gardens and a residents' lounge are set to crown <a href="https://www.apartments.com.au/new-apartments/callista-on-park-west-end-49-mollison-street-west-end-qld-4101">Callista on Park</a>, the final residential building within Brisbane's West Village precinct.

The rooftop amenity collection has been designed as an extension of the lifestyle already established throughout West Village, providing residents with a series of indoor and outdoor spaces that capitalise on the building's elevated position above West End.

A swimming pool and heated spa form the centrepiece of the rooftop offering, surrounded by landscaped gardens developed through a collaboration between developer Sekisui House and ASPECT Studios. The design incorporates expansive lawn areas surrounded by English garden-inspired planting.

[smartcode_project:default project_id=134800 project_image_fid=370648]

Residents will also have access to two barbecue and outdoor dining areas positioned to take advantage of views across Brisbane's skyline, neighbouring Mollison Park, and the surrounding inner-city landscape.

For larger gatherings, the rooftop includes a private dining room centred around a substantial stone island bench, complete with a full kitchen and a 10-seat dining table set beneath four-metre-high ceilings. The space has been designed to overlook both the rooftop gardens and the Brisbane CBD skyline.

A separate residents' lounge provides an additional indoor retreat connected to the broader rooftop amenity offering, creating another space for residents to work, relax or entertain guests.

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The attention to detail extends beyond the rooftop.

Upon arrival, residents will enter through a lobby featuring a bespoke ceiling light installation developed in collaboration between Sekisui House and Alcorn Middleton Architecture. The arrival experience is complemented by private resident mailboxes and carefully considered interior finishes designed to reflect the premium positioning of the building.

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The amenity offering forms part of Callista on Park, the final residential release within the decade-long transformation of the former Peters Ice Cream Factory site into West Village, one of Brisbane's most established mixed-use communities.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and being delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a>, Callista represents the most premium residential offering within the masterplanned precinct.

Construction is now entering its final stages, with scaffolding beginning to come down and completion expected in the first quarter of 2027.

Prices for the three-bedroom plus MPR apartments start from just over $2.6 million.

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Callista will mark the final opportunity to purchase within West Village, where residents have direct access to more than 35 retail, dining, wellness and medical operators including Harris Farm Markets, Woolworths, Function Well and Goodlife Health Clubs, Metro Arts, and a growing collection of restaurants and cafés.

Located just 800 metres from the Brisbane CBD, the precinct also places residents within walking distance of South Bank, West End's dining scene, riverfront parklands and major public transport connections.

For Sekisui House, which has delivered more than two million homes globally, Callista serves as the concluding piece of the West Village masterplan, bringing together the precinct's heritage character, parkland setting and emphasis on walkability in a final collection of larger-format residences.

[smartcode_project_cta:default project_id=134800]

Rooftop pool, private dining and skyline gardens to crown West Village's final apartment release, Callista on Park

<a href="https://www.apartments.com.au/developments/wahroonga-nsw-2076">Wahroonga</a>’s enduring appeal has long been tied to its balance of bushland, established amenity, and access to some of Sydney’s most respected education and healthcare institutions.

Along Fox Valley Road, that combination is becoming increasingly sought after by buyers looking to remain connected to the Upper North Shore lifestyle while prioritising walkability, wellbeing, and convenience.

Developer Capital Corporation's initial vision of a 62-hectare site on Fox Valley Road was that they could create their own walkable community, bordered by&nbsp;more than 25 hectares of bushland and adjoining Coups Creek.

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="b84917a1-0d75-49b9-888c-ddf7ebfd6692" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/NEW2026_Wahroonga_Walkway.gif?VersionId=Gk3_xi5ssYfalmwuQQ5umQakddceC31j" />

<a href="https://www.apartments.com.au/new-apartments/the-residences-at-wahroonga-estate-169-fox-valley-road-wahroonga-nsw-2076">The Residences at Wahroonga Estate</a> draws directly on the area’s natural landscape, with walking trails and green corridors linking into sections of Lane Cove National Park. The surrounding network of bushwalks, cycling tracks, and reserves reinforces the suburb’s long-standing reputation as one of Sydney’s most nature-oriented residential pockets, while still maintaining close ties to village retail and transport infrastructure.

The address places residents within minutes of Wahroonga and Turramurra villages, where cafés, local grocers, boutiques, and everyday services support a highly localised lifestyle. Popular nearby venues including The Fox Café and Breeze Valley Café provide easy options for morning coffee or casual dining, while longstanding retailers such as IGA Wahroonga Fresh and Novella Fine Books continue to anchor the area’s village character.

&nbsp;

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="c4a950f7-4f05-4370-b360-b106359788e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/2026_Wahroonga_Entry_Gates.gif?VersionId=7n5kh9ymu.azYEYDemJkPgiIAfSw44oj" />

Healthcare access remains one of the defining locational advantages of the estate. Sydney Adventist Hospital, known locally as The San, sits directly adjacent and is one of the largest and most respected private hospitals in New South Wales. The hospital precinct incorporates specialist medical services, radiology, physiotherapy, and outpatient care, contributing to growing buyer demand from downsizers and owner-occupiers seeking long-term convenience and peace of mind.

Research commissioned by Capital Corporation found that health and wellbeing considerations are increasingly influencing downsizing decisions, particularly among buyers wanting to remain within familiar neighbourhoods while accessing medical infrastructure more easily.

Education has also historically underpinned demand across Wahroonga and the broader Upper North Shore. The estate sits close to several of Sydney’s leading private and independent schools, including Knox Grammar, Abbotsleigh, Barker College, Pymble Ladies’ College, Ravenswood School for Girls, and Loreto Normanhurst. Co-educational options including Wahroonga Adventist School and Sydney Adventist School further strengthen the area’s appeal to established families looking for long-term schooling pathways within a tightly held catchment.

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Transport connectivity supports the suburb’s liveability without compromising its quieter residential character. Wahroonga and Turramurra train stations provide direct rail access into the Sydney CBD, while the nearby Pacific Highway and M1 motorway strengthen links across the North Shore and broader metropolitan area. At the same time, the heavily treed streetscape and low-density character continue to distinguish the precinct from more urbanised parts of Sydney.

The Residences at Wahroonga Estate forms the first stage of <a href="https://www.apartments.com.au/developers/capital-corporation">Capital Corporation</a>’s broader masterplanned vision for the precinct, delivered alongside the Seventh-day Adventist Church.

[smartcode_project:default project_id=135247 project_image_fid=364995]

Designed by <a href="https://www.apartments.com.au/architects/group-gsa">GroupGSA</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/coco-republic-interior-design">Coco Republic</a>, the development integrates landscaped communal spaces including a pet-friendly Green Spine, resident lounge, BBQ pavilion, and direct bushland access, reinforcing the project’s focus on outdoor connection and community-based living.

Now under construction by Gold Star iCIRT-rated builder <a href="https://www.apartments.com.au/builders/dasco-australia">DASCO</a>, The Residences at Wahroonga Estate will deliver a collection of one, two, and three-bedroom apartments priced from $990,000, with completion anticipated in 2027.

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Capital Corporation to cater to Upper North Shore downsizers by creating walkable community at The Residences at Wahroonga Estate

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

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One of the key characteristics of real estate is its fixed location, hence the popular quotation: "Location, location, location".
While property rights can be and are exchanged over time, the location of a property remains constant and the ongoing demand for the land constitutes a prime determinant of prevailing market price.
There is a well-known geographical economic theory in real estate circles know as the bid-rent theory, which dates back many decades - it was derived from a Ricardian theory on the most productive agricultural land.
{qtube vid:=IkXStOyKTH0}
In the simplest terms, the original theory and bid-rent curves implied that the price and demand for property was highest within the concentric rings located closest to the central business district (CBD) and decreased the further away from that central point you travelled.
Location theories hold that centrally located land is commonly worth more as retailers aim to maximise profitability and therefore will 'bid' more for the land close to the city. Land on the outer is often deemed to be more viable for industrial use and demand is lower.
Meanwhile, as different land uses compete, residents (so the theory went) were also prepared to pay the highest rent for land close to the CBD where work and entertainment was traditionally located.
Australia's major capital cities are located on water and therefore the ring would not spread uniformly outwards from the centre of the city, even if the bid rent theory held completely true.
<img src="https://2.bp.blogspot.com/-BgFCXcCwWsc/UoqaId4O7TI/AAAAAAAAK1Y/rQ9NJTbBzcM/s400/Bid+rent+curve.jpg" style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" height="296" width="470">
All else being equal, therefore prices could be highest in the inner city (A) and gradually recede the further from that point you move out to the inner/middle rings suburbs (B) and the outer locations (C).
High prices in central locations also encourage a higher density of building as compared to the lower density and more sparsely populated locations further from the city's centre.
Over time, however, it should be expected that improved transport links can increase demand from higher income earners further from the centre of the city, in particular increasing demand in the well-located middle ring suburbs.
Despite the obvious limitations, is some reasonably sound logic behind the bid-rent theory. For one thing, simple geometry shows that when looking at concentric rings (or something approximating thereto), there must be far less land in the inner zone (A). Correspondingly, there is a significantly greater supply land available to be developed in the outer (C).
Article continues on the next page. Please click below.
 
<hr class="system-pagebreak">
Scarcity is artificial
I've noted before how the original grid system in Australia created an artificial land scarcity and the standardised city blocks encouraged rapid resale and speculative activity.
As you can see on the previous page, the artificial land scarcity in Australia was also exacerbated by all of the earliest cities being located beside water. If you travel away from the city in the wrong direction, you'll quickly end up in the blue stuff.
However, over time it has become clear that both in the US and in Australia, that all else is not equal when it comes to residential property. Even from in the 1880s you can find clear references in original sources to residents in Australia having a strong preference for suburban living away from the centre of the city.
Social housing has often been located in the inner city zones, for example, while wealthier households have often sought space in the suburbs.
Further, the traditional bid rent curve is distorted by other factors such as households preferring to be located near favoured schools or other recreation. More than this, most people do not work in the CBD. Some are prepared to travel great distances (and journey times) to work while other attach a great cost to this...and so on.
Michael Oxley:  "A major objective of rational land-use planning is to take account of the external cost and benefits. If land-use planning achieves its objectives the actual pattern of land use will differ from that predicted by simple market-orientated location theories".
Another artificial barrier is in place with our city land supply, which is related to zoning and land release.
And herein lies Australia's great challenge.
Take a look, for example, at the population growth in some of Sydney's leafy inner/middle ring suburbs and you will find that the population levels are remarkably static for a capital city with such a burgeoning population growth.
While new construction and renovation does occur to some extent, the total supply in certain popular suburbs is often all but fixed due to effective height restrictions on new builds.
Even on land which is zoned as 'high density', it is often difficult to build upwards due to blocking the views of other existing residential buildings. Sydney investors in particular are currently piling into this stock because they believe that the supply will be fixed with the demand increasing by the year.
The challenge for Australia is to convince people that living close the CBD is not essential, which means providing quality transport links to places of employment (our cities are not monocentric as is often argued, so this includes to transport links to and from secondary CBDs and other employment hubs), improved infrastructure and other entertainment.
There have been a great many suggestions as to how this can be achieved and affordable housing can be provided for our growing population. These include tax legislation reform among other suggestions. Ultimately, in aggregate, demand is growing, so the solution must come back to freeing up the supply side and improving infrastructure and transport links.
The alternative is us simply paying ever-higher prices for a constrained supply of stock close to the city, which appears to be the route we are presently embracing. It's decision time...

<hr>
Pete Wargent is the co-founder of <a rel="nofollow" target="_blank" href="https://allenwargent.com/">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a rel="nofollow" target="_blank" href="https://petewargent.blogspot.com/">blogger</a>.
His new book '<a rel="nofollow" target="_blank" href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx">Four Green Houses and a Red Hotel</a>' is out now.
 
 
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pwargent-M4siyDbqQY

The bid-rent theory: What can it tell us about the future of housing in Australia?

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A one-bedroom apartment in the Melbourne CBD was the most affordable auction sale in Melbourne last weekend.
Located at <a href="https://www.realestate.com.au/property-apartment-vic-melbourne-115195055" target="_blank">404/408 Lonsdale Street</a>, the unit sold for $210,000 through Biggin &amp; Scott Richmond.
Prior to this sale, it last sold in 2007 for $170,000, and in 1998 for $118,857, according to RP Data records.
Listing agent Claire Parkes told Property Observer the auction went “well”, with two bidders. The sale price was a pretty good result.
“It’s the highest price for a studio in that building in the last few years,” she said.
The successful bidder was an investor.
She notes that the property market in Melbourne is “bubbling along nicely” as the moment, with investors coming back on the market.
“One-bedroom apartments aren’t moving as well as larger apartments and houses. However, it seems like they are on the move. Older-style units and houses seems to be preferred over the newer styles that available, probably due to affordability and positioning,” she said. 
According to Biggin &amp; Scott’s estimated asking rent of $290 a week, the price reflects a 7.18% rental yield.
According to the latest RP Data report, the median sale price for units in Melbourne is $400,500, up by 4% on last year. The average discount required to sell a unit is 6.1%, while private treaty sales average 86 days on market.
The median asking rent for a unit is $450 per week, while gross rental yield currently stands at 5.8%.
Other one-bedroom units listed for sale in Melbourne include: <a href="https://www.realestate.com.au/property-apartment-vic-melbourne-115431391">1002/243 Franklin Street</a> (pictured below).
{yoogallery src=[images/stories/2013/11/19/mel2]}
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dleow-BGaNPbHWyK

Melbourne cheapie sells for $210,000, reflects 7.18% yield

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The first major residential tower to be built in Liverpool will be known as The Point, a $49 million development
Located on Gillespie Street, The Point will feature 120 apartments over 12 floors and a supermarket on the ground floor.
The Point has been architecturally designed by DWA and features interiors by Quattro.
Sam Elbanna project manager and head of CPM Realty says the team is bringing inner city glamour to Liverpool.
“People are looking for the luxury style with a budget price.
“We are working on The Point because we want to be at the forefront of innovation and be at the forefront of the change I know is going to happen,” says Elbanna.
The Point features one-, two- and three-bedroom apartments with prices from $256,000 to $375,000 and size ranges from 55 square metres to 145 square metres.
The development is expected to attract a solid mix of seasoned investors, mum and dad investors, as well as first time buyers.
The median apartment price in <a target="_blank" href="/news">Liverpool</a> is $278,500, a 37.5% change in the past five years, according to RP Data.
The median apartment rent is $325, reflecting a rental yield of 6.1%.
The Point will officially launch to the public on November 30.
Construction is scheduled to commence in February 2014 and has an expected completion date of mid-2015.
ntrotman@propertyobserver.com.au
 
<hr>
 For the latest development listings, brought to you by Property Observer and partners, see our <a rel="nofollow" href="https://showcase.propertyobserver.com.au/11/3/skye-by-crown">Investor Showcase</a>.
 
Images are artist impressions.
 
 
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ntrotman-Et3xWpamVh

Liverpool to welcome first major residential tower The Point

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The tipping point between caution and optimism has finally passed.
It is often a fine line, but sometime in the past six weeks it has gone from dark to light (well, lighter) when it comes to residential real estate across South-East Queensland.
Property cycle
There is an eight year property cycle – yes, the text books talk about seven years – but the Australian statistics suggest it lasts about <a target="_blank" href="https://matusikmissive.com.au/2013/03/19/why-does-property-cycle/">eight years</a>.  But what’s one more year between friends.  Usually, it is five years of good and three years of, well…not so good.
But for more than five years, South-East Queensland real estate has been subdued to say the least.  The 2008 financial knock-down began a slump that was prolonged by deluges, cyclones and domestic political uncertainty.
But now it looks like South-East Queensland has just started to enter its growth phase.  It is likely to be growth this time round, not GROWTH!  But we are going to the black side of the ledger and finally leaving the red.  About time!
Sales volumes
Sales volumes are up across South-East Queensland for the first time in years.
When looking at detached house sales for the last 12 months: 
<ul>
<li>
Sunshine Coast                   5,800 sales     (up 26% on year before)
</li>
<li>
Moreton Bay                       6,650 sales      (up 21%)
</li>
<li>
Brisbane City                      16,000 sales    (up 14%)
</li>
<li>
Redlands                               2,600 sales      (up 23%)
</li>
<li>
Gold Coast                            6,500 sales      (up 22%)
</li>
<li>
Logan                                     4,000 sales      (up 18%)
</li>
<li>
Ipswich                                  2,800 sales      (up 12%)
</li>
<li>
Lockyer Valley                   526 sales           (up 29%)
</li>
<li>
Toowoomba                         3,250 sales      (up 25%)
</li>
</ul>
When it comes to apartment sales, they are also up – 27% on the Sunshine Coast; 3% in Brisbane (apartment sales in Brisbane have been rising for two years now, with today’s volumes up 19% on 2011 figures)and up 20% on the Gold Coast on last year.
Townhouse trading is also increasing, quite quickly in fact, up 49% on the Sunshine Coast (it must be all that new Kawana infrastructure, hey <a target="_blank" href="https://matusikmissive.com.au/2012/03/07/kochie/">Kochie!</a>); up 20% in Moreton  Bay (Caboolture; Pine Rivers and Redcliffe); up 23% in Brisbane; up 27% in Redlands; 17% on the Gold Coast and 22% in Logan.  Falls in townhouse sales are still occurring in Ipswich and in Toowoomba.
Increasing prices
End prices are also starting to rise across South-East Queensland.  Price rises always lag sale volumes.
When looking at typical detached house prices for the last 12 months: 
<ul>
<li>
Sunshine Coast                   $453,000        (up 4% on year before)
</li>
<li>
Moreton Bay                        $390,000       (up 3%)
</li>
<li>
Brisbane City                       $520,000        (up 4%)
</li>
<li>
Redlands                               $455,000         (up 4%)
</li>
<li>
Gold Coast                             $490,000        (up 6%)
</li>
<li>
Logan                                      $353,000         (up 1%)
</li>
<li>
Ipswich                                   $298,000        (up 2%)
</li>
<li>
Lockyer Valley                    $290,000        (up 4%)
</li>
<li>
Toowoomba                          $327,000        (up 10%)
</li>
</ul>
A similar trend can be seen for apartment and townhouse sales across the south east corner of the state.
The entry-level market - up to $500,000 (oh, and how it is so easy to dismiss half a million bucks these days) – is quite strong and occupies a large part of the price bell curve.  There is still a lot of property priced under $250,000 across Queensland, and even in the more populated and relatively expensive South-East.
Sydney leads
Traditionally, South-East Queensland lags the southern markets, following behind Sydney by about 18 months and when their market is moving, then twelve months behind Melbourne/Victoria.
Investors (and some residents) are forced out of the southern markets.  I read that Sydney’s current median price is $690,000 and BIS Shrapnel are predicting it to exceed $800,000 within the next three years.
I recently suggested at a housing conference presentation that the Brisbane (region) median detached house price could reach something like $530,000 over a similar time frame (mid 2016).  Many in the room smirked, some even guffawed.   Today, the middle price across the Brisbane region is about $450,000.  So $25,000 or a 5% gain per annum over the next three years, doesn’t seem that unrealistic to me.
More jobs
Anyway, that is really academic for now.  In order for South-East Queensland to experience such price growth, more jobs need to be created in Queensland.  Whilst investors will follow potential, interstate migrants move because of work first; cheaper housing second and a distant third, because of our warmer climate.
Whilst mining is holding up somewhat better than many expected (for now) and gas, tourism (somewhat) and agribusiness is helping Queensland’s economy, new housing construction, as we pointed out last week, is the missing ingredient.
Easier housing construction means more jobs.  More jobs mean more interstate migrants, which will lead to more sales and higher end prices.
The South-East Queensland market during 2014 depends on one thing - new jobs.

<hr>
Michael Matusik is the founder of <a style="font-size: 14px;" href="https://www.matusik.com.au/" target="_blank" rel="nofollow">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.
Read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">Michael’s Blog</a> or follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
 
 
 
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Back in the black: Things are finally looking up for South-East Queensland

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Last year ABC’s Q&amp;A ran a one-hour special with then Prime-Minister, Julia Gillard.  
At the time, Labor’s popularity was at an all time low, with the latest Galaxy poll showing a primary vote of 31%, compared to the Coalition's 49%.  
The Q&amp;A special followed a 12 month gap since Julia Gillard had faced the live audience in which voters – including those in the land of social media - can directly grill Australia’s politicians and business leaders about issues close to the heart.  
Inevitably, Julia Gillard was questioned about the growing cost of housing – significantly negative gearing – which as I explained <a target="_blank" href="https://catherinecashmore.wordpress.com/2013/10/22/a-few-thoughts-on-negative-gearing-the-contradictory-policy-which-benefits-investors-whilst-negatively-impacting-renters/">here</a>, has assisted in distorting the preferences of our buying market, not aiding new supply, but instead boosting the competition and subsequently price of second hand stock.  
Audience member Robyn Tracey asked - “Has Australia lost the will for reform of our taxation system? Has a flat rate of tax been considered to replace our present complicated system? Why hasn’t negative gearing been abolished despite recommendations to do so by the Henry Tax Review and by leading economists?”
 
Gillard’s answer was predictable;  
"For negative gearing, we didn't agree with the Henry tax review. We ruled that out. We think that, you know, an abolition of negative gearing would cause distortions to the property market that we didn't want to see…"  
Tony Jones then questioned why GST had not been included in the Henry tax review, to which Ms Gillard commented:  
"GST, at the end of the day, is a regressive tax and so we are looking for tax reform in other areas."
 
Well, you can’t get a much more regressive tax than negative gearing, which disproportionately benefits high-income earners, over those on a lower wage.  
Close to <a target="_blank" href="https://www.businessspectator.com.au/article/2013/9/6/economy/big-budget-bucks-down-property-drainpipe">40%</a> of households in the top income quintile access negative gearing and benefit from a tax concession of more than $70 per week.  
This is compared to less than 5% in the bottom quintile who benefit no more than $10 per week, and of course, there is also limited ability to negatively gear in a self managed super fund.  
The continued Labor stance against negative gearing is not out of step with the Coalition. Whilst still in opposition, Tony Abbot dismissed claims that the Liberals would include negative gearing as part of their tax review, and any rumour suggesting otherwise, <a target="_parent" href="https://www.liberal.org.au/latest-news/2013/05/21/tony-abbott-transcript-joint-doorstop-interview-bundamba-qld">“had no substance whatsoever.” </a> Not surprisingly, it left many advocates across the real estate and finance sector breathing a collective sigh of relief.  
Therefore, when last Monday’s Q&amp;A subtitled <a target="_blank" href="https://www.abc.net.au/tv/qanda/txt/s3873461.htm">‘Open for business'</a> aired, featuring the highly acclaimed founder of Aussie Home Loans John Symond - a company which profits significantly from negatively geared investors – it was some surprise to hear him advocating for tax reform and a moderation of the current rules.  
In reply to audience member Leanne Murphy – who asked:  
“Do you think negative gearing should be abolished, or at least quarantined, only available for new dwellings, thus giving low-income earners the opportunity to get into the property market?”
 
Mr Symond answered:  
“Absolutely. I come back to overhauling the tax system. Negative gearing wasn't designed for people who can afford to go and buy $1 million, $2 million, $3 million houses or apartments for negative gearing to offset the bulk of their interest payment off their tax. So negative gearing does need to be looked at in the tax system because I don't think it is fair at the moment. I think it leans very heavily to the high income earners and that needs to be brought into line.”
 
His comments were followed in a similar vein from the other panellists who agreed something needs to be done, but swiftly pushed the momentum back under the carpet with the excuse we hear all too often;  
“I believe, is an absolute political hot potato and no government is going to touch it,” said Carol Schwartz.  
Clearly from Abbot’s comment above, in the present context this is correct. However, meanwhile it’s worth asking if the landscape is changing?  
To hear business leaders finally admit we’re heading down the road which is further dividing the gap between the haves and have nots, is clearly mirrored across the social media network as a new generation of voters increasingly question the legacy they’ve been left with.  
Many other countries have instilled the concept of home ownership being part of the national dream and structured their tax policies accordingly, favouring vendor over renter.  Banks have happily fed our owner-occupier ambitions, resulting in a disproportionate amount of credit pumped into the residential market - pushing up our private debt to disposable income ratio to a peaky 150%, and as a consequence over the 2000s established median house prices in Australia have more than doubled.  
Generations have been bought up with the concept that, a mortgage, in a world full of spending temptations, is a forced savings account for retirement.  
Certainly, owning your own home outright by the time you reach 65 is advantageous; no one wants to be servicing a loan or rental payments on a restricted income stream.  
However, it’s an interesting concept, to have a forced savings account which requires the investor to pay a hefty sum of interest rather than receive it - as would be the case with other assets, where additional interest is collected.  
Not only is the house seen as a savings account, but also one against which buyers can leverage, enabling the purchase of a second home – usually by way of an interest only loan.  
So imbedded is this concept that even the most committed owner-occupiers I assist, searching for what they hope will be their last home in an environment where we’re all trying to squirrel away funds for retirement, are understandably very concentrated on the equity their purchase can achieve and how they can best aid their children along the way.  
In Australia our homes have been conceived as investments because they ‘always’ increase in value.  At least, this has been the case for a good number of years, benefitting the property lottery winners who got in early enough to take advantage of healthy capital gains.  
Unfortunately, the homes we’ve built to offset house price inflation, have done quite the reverse.  Heavily burdened with tax overlays, located in areas where zoning restrictions have encouraged land banking by larger developers, thereby reducing competition from smaller home builders, has done more to harm the construction industry, than aid.
With the median price for a house and land package in fringe suburbs starting around $400,000, there’s little to encourage families into the infrastructure sparse landscapes, yet this is where we expect homebuyers to migrate if they want to purchase a detached dwelling for less than capital city medians.  
With the only other option being a smallish apartment closer to town, for which the first home buyer demographic usually have to pitch against an investor, yet must purchase wisely if they want to leverage enough equity for the necessary upgrade after a few years of residency. Well, quite honestly, it’s become a fools game, which I suggest is not unlike musical chairs – everyone competing for the same second hand stock – not prepared to accept a lesser quality alternative.  
As such, first home buyers now enter the market as ‘first time investors’ – usually living off their parent’s goodwill in order to do so – and hoping to achieve similar capital gains.  
Rising house prices are part of an environment that has been manipulated by successive governments because – as <a target="_blank" href="https://www.goldmansachs.com/our-thinking/view-from/a-view-from-australia-2013/toohey-bio.pdf">Tim Toohey</a> recently put it in a Goldman Sach’s report:  
“The wealth effect – i.e. increases in house prices/equity markets driving higher consumer spending – has been painted as the messiah for the domestic cyclical space.”  
Supposedly, when our house prices rise, it feels like Christmas for the economy, and thus, out come the credit cards boosting retail spending, and numerous other offshoots.  
However, as Toohey goes on to point out;  
‘The proportion of the population 60 plus and entering the asset drawdown phase of their life is now the dominant demographic force, contributing 50% of the population growth, and this is projected to rise to 60% by 2020.’
 
Therefore, as suggested with house price appreciation the “future for consumption growth is unlikely to reflect the past. “
 
It’s against this backdrop that a friend of mine was contacted a few weeks ago by a company posing as a market research group, who with clever questioning, managed to convince him to allow an ‘advisor’ to come to his home and demonstrate how he could reduce his income tax to ‘almost zero’.  
The sales representative proceeded to show lots of – (to quote) – ‘scary’ figures indicating how he would not have enough money upon which to retire, and then demonstrating how negative gearing into property - which the company would ‘choose’ on his behalf, would reverse this, to enable him to achieve ‘retirement riches’.  
Backed up with an extensive list of client testimonials, the service was of course offered free of charge – the rep explaining that he received payment from referrals to ‘partners’ such as financial advisors.  
Clearly in an era of ‘worried money,’ it’s not hard to conceive how inexperienced investors might be tempted to trust the advice of shoddy operators - in response, ASIC needs to look at the industry as a whole when it comes to unethical spruiking and not super funds in isolation.  
Notwithstanding, the information most buyers read in investment magazines and websites, is provided anecdotally by industry advocates, often bordering on financial advice, yet with no regulation overseeing the quality of the content – it’s left to ‘self regulation’ – reader beware.
 
Changing a well-weathered mindset is not going to be easy without political reform.  However, I really do ponder at the strength of social media in an age where younger generations are increasing asking questions and engaging in conversations, which in previous times would have been limited in their scope.
Questions such as, whether rising property prices are not so much the golden egg of economic growth, but rather a burden weighing on the progressive future of younger generations.  
Media headlines across mainstream outlets have suggested the need for a national conversation on housing affordability, however in reality the talking has been done.  
We’ve had the Henry Tax review and additionally numerous independent academic reports published, outlining exactly how to ease established house prices whist boosting effective supply. In truth, it’s action that’s needed, not conversation.  
Taxation of property should be progressive, discouraging practices such as land banking, and using property merely as a speculative investment. A broad based land value tax would assist in this respect.  
Additionally, renting should be accepted as more than a short term option with practices in other countries – such I pointed out <a target="_blank" href="https://www.macrobusiness.com.au/2013/11/what-australia-can-learn-from-germanys-rental-system/">last week</a> - forming the basis for investigation as to how we can assist our own tenants.  
However, the most important change we can effect is to take away the headwinds affecting supply of family accommodation - a subject which has been covered in depth by <a target="_blank" href="https://www.macrobusiness.com.au/2013/09/australia-must-look-to-texas-on-housing-policy/">Leith Van Onselen.</a>  
Wherever you sit in relation to this subject, it can’t be denied the environment is changing, and like it or not, a new era of disillusioned voters will eventually have the upper hand.  


<hr>
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
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catherinecashmore-6LXia3pPQj

Housing policy reform: Do we have a changing landscape?

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From a three-and-a-half year high last month, business confidence <a target="_blank" href="https://business.nab.com.au/monthly-business-survey-october-2013-5029/">data</a> for October shows the post-election honeymoon is over, with business conditions continuing to underperform in non-mining sectors.
As Treasurer Joe Hockey recognised in his “Australia: Open for Business” speech in New York last month, the initial positive reaction of business to the change of government needs to be matched up with action. After all, slogans only go so far.
Australia’s lack of competitiveness, and its impact on investment and business confidence, is not only a result of the high Australian dollar caused by the mining boom, but is also to some degree self-imposed.
Chiefly among the culprits for the lack of competitiveness are the increased burden of regulation, a cumbersome Industrial Relations system, a tax system in need of reform, and our ambivalent attitude towards foreign investment.
There are some encouraging signs that an “open for business” agenda has begun to take shape. In a recent speech at the Sydney Institute, Parliamentary Secretary to the Prime Minister Josh Frydenberg <a target="_blank" href="https://www.joshfrydenberg.com.au/guest/SpeechesDetails.aspx?id=225">articulated</a> a well-thought through deregulation agenda. Deregulation may be an important first step toward increasing our competitiveness and encouraging investment.
The need for deregulation
The increased burden of regulation is well documented and mostly pre-dates Kevin Rudd’s 2007 election. The last six years arguably saw a steep increase in the pervasiveness of regulation with a number of high profile legislative changes such as the carbon tax, the mining tax and changes to the Fair Work Act, bypassing the regulatory impact statement process.
In the latest <a target="_blank" href="https://www.weforum.org/issues/global-competitiveness">Global Competitiveness Report</a> published by the World Economic Forum, Australia ranked 128 out of 148 countries in terms of the burden of government regulation. I would not take this ranking too seriously – for example China ranks 14 and Vietnam 106 – as it is based on perceptions that are not easily transferable across different cultures. Nonetheless, the increased burden of government regulation is a reality.
One example is that of food manufacturer Simplot and its struggle to gain authorisation from Biosecurity Australia to import pancake “pods”.
Given the need for deregulation to reduce the heavy cost of regulatory compliance, the next question is how to go about it.
What it takes to deregulate
The recipe for a successful deregulation program is neither new or untried. It includes a concerted effort to repeal existing, ineffective regulation.
One of my favourites stories about excessive regulation involves Law no 9502 enacted by the Sao Paulo City Council in 1997. This law mandates that signs be posted next to lifts requiring users to check whether the lift is there before walking into it. Millions of dollars are spent to meet this legislative requirement with no significant impact on behaviour.
As the Simplot example above highlights, there are likely to be many opportunities for the federal government to eliminate ineffective but costly regulations.
There are also opportunities to avoid duplication and better coordinate with states and territories. Some states such as Queensland have already been quietly but steadily working through a similar deregulation agenda.
Another important element of a successful deregulation program includes ensuring that new regulation, no matter how politically important, is subject to a rigorous cost-benefit analysis in the form of a regulatory impact statement. While it is well understood that cost-benefit analysis is very sensitive to assumptions, a key benefit of requiring a regulatory impact statement is that it forces government bureaucrats to identify the range of costs and benefits and, in the process, increases the scrutiny of a policy decision or new regulation.
Finally, the new government deregulation agenda should also include a commitment to an ex-post evaluation of regulation. This is now common practice in other developed countries and is part of the process of ensuring that regulators are held accountable for their decisions.
It could be argued the introduction of an ex-post assessment of a regulatory decision would make the regulator’s job more difficult and costly, as it would be expensive and complex to undo decisions that have been proven to be mistaken. This line of argument, however, misses the key point. The requirement for an ex-post assessment incentivises the regulator to get it right in the first place.
Overall, the deregulation agenda, while an important first step towards developing an open for business strategy, is to some extent the low hanging fruit. The hard yards, which have a much higher impact on investment and business confidence, are changes in the industrial relations system, tax reform and the treatment of foreign investment.
A more ambitious, politically challenging agenda
Despite existing rhetoric, real unit labour costs (non-farm) fell steadily between 1985 and 2010, and have remained broadly stable since then. This means that it may be possible that a more efficient industrial relations system could lead to a better allocation of resources and lower business costs while maintaining real wages at current levels. Framing industrial relations reform along these lines might provide a starting point for a foreshadowed review of the Fair Work Act by the Productivity Commission.
An open for business agenda must necessarily encompass tax reform. The BCA seems to prefer a wider base, lower rate approach. A proposed approach is to finance a reduction in the corporate tax rate via extending the GST to cover food, health and education. For consistency, such an approach should also include eliminating a range of existing tax concessions that have eroded the tax base. The politics of such an approach would, however, be very difficult.
I have <a target="_blank" href="https://theconversation.com/reduce-the-corporate-tax-rate-not-so-fast-4014">argued</a> elsewhere for a more ambitious change in the tax system involving the introduction of an Allowance for Corporate Equity (ACE), which would enable firms to deduct an imputed return on equity. The key conclusion is that tax reform is a long and hard road and will certainly test the government’s commitment to an open for business agenda.
Another thorny issue that will test the government’s commitment is its apparent ambivalent attitude towards foreign investment. This is illustrated by the divisions within the Coalition on whether the Treasurer should allow the acquisition of GrainCorp by Archer Daniels Midland despite its clearance by the ACCC from a competition perspective. A clear statement by the Treasurer when he makes his decision on the 17th of December could go a long way in establishing the government’s credentials as business friendly.
Whilst the change of government has sparked business confidence, the new government must capitalise on this momentum by taking definitive policy action.
There are many opportunities for policy change towards an open for business agenda for Australia, through deregulation and tax reform in particular.
Initial signs show that deregulation is on the agenda and this would be an important start. But broad based changes that encompass reforms to the industrial relations system, foreign investment policy and the tax system, whilst more difficult to achieve, are crucial for promoting a business-friendly environment in Australia.

<hr>
Flavio Menezes is a professor of economics and currently the head of the School of Economics at the <a target="_blank" href="https://www.uq.edu.au/?">University of Queensland</a>.
This article was originally published at <a href="https://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/abbotts-open-for-business-honeymoon-is-over-19546">original article</a>.
 
 
 
<img width="1" src="https://counter.theconversation.edu.au/content/19546/count.gif" height="1" alt="The Conversation">
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FMenezes-vfCCGrib4N

The honeymoon is over: Business confidence in Tony Abbott’s government drops

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Look, I'm a sceptic when it comes to the ability to forecast property price movements. Firstly, because median prices by city are sometimes of questionable value and can smooth diverse trends from across different market sectors, suburbs and property types. And secondly, because of the huge range of unknown factors which must impact the market.
It doesn't stop people trying. Over in Blighty, Savills can tell you <a target="_blank" href="https://pdf.savills.com/documents/Savills%205%20year%20prime%20market%20forecasts.pdf">what price growth to expect</a> in your region in 2018! Now how's that for a powerful crystal ball? This chart below tells you most of what you need to know about human ability to forecast the future:
<img width="470" src="https://4.bp.blogspot.com/-Jq4nsW2zhtA/UoUexxFxEhI/AAAAAAAAKx4/Gf3MnNuG5-M/s320/RBA+GDP+forecast.jpg" height="429">
That is to say, even the Reserve Bank's "army of economists" have only around 90% confidence that we won't slide into negative growth in the next couple of years. Meanwhile, the 90% confidence interval also comprises a scenario whereby GDP growth almost roars off the top of the chart.
The future is far more unpredictable than most seem to think. The impacts of wild volatility in currency markets, financial crises, the impact of foreign buyers, superannuation funds and plummeting interest rates may all appear obvious in the rear view mirror, but what lies ahead is inherently difficult to judge...perhaps impossible. Indeed, in recent times we have seen forecasters failing to forecast the direction of certain city dwelling prices, let alone the quantum.
Of course, it is possible to build models based upon past events, but to pretend that they are highly scientific or can predict and factor in the impacts of, for example, fiscal cliffs, debt ceiling crises, sequesters, outbreaks of war and so on, is misleading.
One thing we can say with some level of confidence is that due to total household debt in Australia being far higher than it has been in cycles past at around 150% of GDP (and levels of inflation significantly lower), over the course of a full market cycle the impact of lower interest rates and their ability to stimulate housing markets must surely be lower that of days gone by.
<img width="470" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/6tl-hhfin-small.gif?accessed=2013-07-10-16-54-59" height="422">
There are two ways to deal with this uncertainty in making property price forecasts (or guesses?). One is to produce a range of "if...then..." scenarios, thereby covering off a huge range of possible outcomes ("prices could move by between -5% and +20%..."). The other is to bite the bullet and build a range of assumptions and accept that you will probably be wrong on some or all of them, and thus your predictions will be wrong too. Let's go with option two.
Assumptions for 2014
So, with the proviso that I'll almost certainly be wrong, let's start with some assumptions. Unemployment still seems to be in a moderate uptrend, so I'll go with the unemployment rate ticking up to 6% through 2014. GDP growth to trundle along sub-trend at somewhere close to 2.5%.
As for interest rates, economists are split. NAB think that the next move will be down to 2.25% in mid-2014. Others are more optimistic on the outlook and are looking for a hike to 2.75% in late 2014. The best we can say is that interest rates are unlikely to apply a substantial handbrake to dwelling prices in 2014 given that the official cash rate is likely to sit somewhere between 2% and 3% which is historically a very low rate.
<img width="470" src="https://4.bp.blogspot.com/-Emd60c7xhlY/UoUh2jhMfeI/AAAAAAAAKyE/RxtV7B-oNQE/s400/yield.jpg" height="311">
Source: RBA
This has led some very bullish property price forecasts in 2014. Dwelling prices look set to increase in 2013 by around 10%, but while it is possible that level of growth could continue with a low cash rate, there are a number of factors which could jam a stick in the spokes, so overall I'm going to tend towards a relatively subdued view.
Reality check
So, another investment propery book hits the shelves forecasting that "well located properties should continue to grow at 9% per annum". 9%! No mucking around with all that 7-8% per annum nonsense there! And I thought I was bullish in years gone by when I suggested that a rational proxy for future dwelling price growth might be the future growth of household incomes. The speed limit on dwelling prices must ultimately be our ability to service debt.
In my opinion, some Australians need a reality check when it comes to our housing markets. Below is what is presently happening to wages in Australia, which is to say, growing at 2.7% per annum...and slowing.
While you could build an argument to say that wages growth could be approaching the bottom of a cyclical bounce, there is absolutely no suggestion that incomes are growing at anything like the rate required to support long term property price growth at the levels seen in times past.
<img alt="wages-nov-18-one" height="394" width="470" src="/images/stories/2013/11/18/wages-nov-18-one.jpg">
The other factor I'd highlight for 2014 is the peak in mining capital investment. There are some suggestions that the fall in mining capex could be offset to some extent by growth in residential construction (as I read the charts, the relative numbers involved don't really appear to stack up for this) and for other sectors of the economy being stimulated (a better likelihood of this happening).
We might also be 'saved' in 2014 to some extent by cost overruns on some of the mega projects,<a target="_blank" href="https://gorgongasproject.blogspot.com.au/">such as Gorgon where some major cost blowouts are well underway</a> (the bean-counters being drafted in is never a good sign). However, note that the latest 'estimate three' for mining capex 2013-14 is some 13.6% lower than its 2012-2013 Estimate three predecessor. In other words, mining capex must fall eventually and this will represent a drag on economic growth, and probably employment too.
<img width="470" src="https://www.abs.gov.au/ausstats/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/1ecf42b5ec12e8bcca2573460014f2df/Body/1.3CF4!OpenElement&amp;FieldElemFormat=gif" height="183" alt="Chart: Financial year actual and expected expenditure- Mining Capital Expenditure">
Property price predictions
OK, so now onto the real guesswork. Let's run through the cities in ascending order of size.
I'm going to omit Darwin, however. I've lived in Darwin previously. I didn't understand the seasonal property markets then and nor do I pretend to now. Volatile, supremely expensive and unpredictable.
Hobart is a small city with a population of a little over 200,000. I would normally find it difficult to post or make a positive case for Tasmania given that the population growth is much flatter than the Bass Strait and that until last month the unemployment rate had been well above 8%. However, the unemployment rate has fallen to 7.9% and SQM's vendor sentiment implies that asking prices may have stopped falling.
Perhaps more important than this, the state government appears hellbent upon forcing the property markets northwards with its proposed introduction of an incredible <a target="_blank" href="https://www.themercury.com.au/lifestyle/new-home-grants/story-fnj64ocs-1226754568608">$30,000 first home builders</a> grant. Since I don't try to argue with market distortions (and indeed, such grants for new building may themselves distort median data) of this nature, I'll go with -1% to 2% growth for Hobart.
The <a target="_blank" href="https://www.canberratimes.com.au/act-news/cut-jobs-now-and-be-done-abbott-told-20130914-2trwk">Australian Institute forecast</a> that more than 5,000 planned job cuts in Canberra will send the city and the ACT into recession. Canberra is only a small city of around 360,000 population, and jobs cuts will hurt property markets. Amazing how times change. Only in March of this year, in spite of sky high prices in Canberra, <a target="_blank" href="https://blog.residex.com.au/2013/03/07/market-update-and-investment-seminar/#more-3061">Residex mused</a>: "I leave you with a question to ponder – given the position Canberra is in, should we all be immediately moving to buy an investment property there?"
The Residex Canberra theory was based on high pre-tax incomes in the city and the answer from an investor's perspective is "definitely not". I don't recommend investing in small cities with limited employment diversity in any case. It's impossible to gauge the likely outcomes precisely, but SQM's vendor sentiment index suggests that the likely trend is not good. Prices to fall -1% to -4% is my guess.
On average, at least, Adelaide has been a poor-performing property market for the past half decade. With a population of around 1.2 million and relatively sedate population growth in South Australia, it's not a city I have ever been bullish on for property.
However, unemployment in the state has fallen back to 6.6% and a glance at SQM's vendor sentiment index suggests that the bottom may now be in. For the aforementioned reasons, I'm still not going to go overboard on predicting capital growth, but inflation-adjusted prices in Adelaide (and Brisbane) are well below previous peaks and a generational low cash rate will surely have an impact at some point. 0% to 3% growth.
Perth, a city of around 1.6 million, does have low unemployment and very strong population growth, and has had a great run through 2013, recording median dwelling price capital growth of around 9% over the past 12 months.
However, there are some indications from RP Data's index that this growth has ground to a halt along with levels of mining investment, which may be no bad thing for the city's longer term prospects. On the plus side, SQM's vendor sentiment index still has a moderately positive incline for Perth. 0% to 3% growth.
I haven't been up to Brisbane for a little while, but the news I have heard from those 'on the ground' in the city has been positive, and the market does appear to be moving. Finger in the air guess of 2% to 5% growth.
I should probably be disqualified from guesses on Melbourne prices having previously pondered incorrectly as to whether the market had peaked. I wasn't the only one. All I can say in my defence is that, unlike some, at least I don't charge hard-earned dollars for my guesswork - it all comes for free (and a lot of free information is worth what you pay for it, after all).
One of the problems for Melbourne has been that although vacancy rates in certain types of inner city stock have been high, activity in much of the established stock has remained rampant, fuelled by the low interest rate environment.
I discussed with a colleague on the ground who suggested that low interest rates might see growth continue in the 5% to 8% bracket. I keep coming back to slow (and slowing) wages growth and falling mining capex and so I will have a stab at 2% to 5% growth.
The problem child - Sydney
And finally, the problem child...Sydney. After years of weak supply in the harbour city, SQM Research put the cat among the pigeons when it forecast in its base case scenario that Sydney would <a target="_blank" href="https://www.theaustralian.com.au/business/property/sydney-on-track-for-property-boom-prices-set-to-rise-20pc-says-sqm/story-fn9656lz-1226721006886">record housing price growth of 15-20% in 2014</a>, and 20-30% should Australia experience a strong economic recovery and interest rate rises by mid 2014.
Being a Sydneysider, I'm a vested interest in the Sydney market, but there has never been reason to doubt SQM's integrity (they correctly forecast market price falls in 2011, for example) and their forecast is based on some sound price-to-income logic. Sydney's housing markets were relatively more expensive in 2003 and early 2004 than they are today and thus there is certainly a chance that prices could continue unabated at the growth levels seen in 2013 until the market hits its next irrational peak.
There is a plenty of new apartment stock due to come online in certain sectors of the Sydney market (inner south, Central Park) but this is unlikely to be enough to halt the present cycle in its tracks in my opinion. However, 12 months is a long time and a lot might happen to slow the present exuberance. I'll have a stab at a more subdued 6% to 9% growth.
In fact, all of my numbers are lower than you'll see forecast elsewhere, and this is based mainly upon a gut feel that Australians will be somewhat disinclined to embrace taking on significantly more household debt from today's already elevated levels, despite low interest rates.
There will be a mass of conflicting factors such as the role of foreign capital, superannuation funds entering the residential markets and first homebuyers struggling to get aboard. But overall, a slower growth cycle is my best guess.
My best 2013 guesses therefore...
Hobart -1% to 2%
Canberra -1% to -4%
Perth 0% to 3%
Adelaide 0% to 3%
Brisbane 2% to 5%
Melbourne 2% to 5%
Sydney 6% to 9%
To be revisited in 12 months time to work out where I went wrong...
 
<hr>
Pete Wargent is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
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Crystal ball gazing: Property market predictions for 2014

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Buyer’s agent Miriam Sandkuhler, founder of <a target="_blank" href="https://www.propertymavens.com.au/" rel="nofollow" style="font-size: 14px;">Property Mavens</a>, says many early-stage investors don’t understand their risk profile when they start building their folio. Sandkuhler was a finalist for the 2013 REIV Buyer’s Agent of the Year.
She says more risk adverse clients should avoid off-the-plan properties, as well as student or holiday accommodation.
{qtube vid:=m3cXd9A1li0}
“People don’t understand their tolerance to risk in terms of the type of return they’re going to get,” Sandkuhler told Property Observer for the 'How the experts buy' series.
“A high risk profile person would be someone who’s prepared to develop a property or renovate. Someone who’s more conservative and low risk is someone who’s otherwise more likely to leave their money in the bank or pay for a property in cash because they don’t like debt.”
She says buying off the plans comes fraught with risk.
“They’re to do with whether the developer gets financing, whether they’re a good builder, time frames of the development,” she says.
“It depends on the zoning of the property, if you have student accommodation or short stay accommodation that can have a level of risk.
“It means that the market from a resale point of view is a lot smaller and from a lending or a finance point of view you may not be able to borrow as much money so you’ll have to have a much bigger deposit to get into it.”
She says many investors are enticed by the idea of having as big a property portfolio as possible.
“Having multiple properties you have to manage multiple properties and there are maintenance issues that come with that.”
“If all you need are six really really good properties of a certain value then that’s all you need.”
 
Transcript
My name is Miriam Sandkuhler. I’m the founder of <a target="_blank" href="https://www.propertymavens.com.au/?">Property Mavens</a> which is a specialist property advisory firm. I’m an accredited property advisor and a licensed estate agent. And I basically work with investors to ensure they buy the right type of property for the right reasons.
People don’t necessarily know their tolerance to risk in relation to the type of return they’re going to get. Some people are much more conservative with investing than others. Some have got quite a low to moderate risk profile whereas other are higher risk profile. An example of a high risk profile individual is someone is prepared to develop a property or renovate.
Someone who’s more conservative or low risk is someone who might otherwise like to leave their money in the bank or they might like to pay for a property in cash because they don’t like debt or they might want to something very simple.
For example, if you don’t know your risk profile then it’s very easy to buy the wrong property for you profile for all the right reasons. If you don’t the type of risk attached to the type of property that you buy it’s also very easy to make a mistake.
If you buy off the plan there are a lot risks associated with that and they’re to do with very the developer gets the lending, whether or not it’s a good builder, time frames of the development. There a number of different areas. The market can go up and down. And we’ve seen a lot of that where people are settling on properties where it’s worth less than the contract price.
There are so many variables and so many risks associated with buying off the plan that most people aren’t informed off because obviously that’s not necessarily brought to light when people are purchasing in that manner.
Someone with a low risk profile probably doesn’t want to buy a development site. They may not want to buy an off-the-plan. When you understand your risk profile and you understand the risk of the property then you can make a better informed decision.
Alistair: What other properties do you think are higher risk profile?
So for example it depends on the zoning of the property. IF you have student accommodation, or short term or resort style accommodation that can have a level of risk because what it inherently means is from the market point of view the resale value is a lot smaller. It also means from a lending or finance point of view you may not be able to borrow as much money so you’ll have to have a much bigger deposit to get into it. The returns on that type of investment can be affected by the type of property it is.
Buying property is not simple. I know most people want an easy solution. It’s a little bit like going to the doctor for a headache and wanting a pill when in fact what they probably need is surgery.
So when you invest in property it’s easy to sign a contract but the process of understanding about what makes a good investment grade property and how to match that to your risk profile and having a plan in place all of those things are quite complex and they do take time and they take investigation.
I’ll often deal with clients who want to buy property but they have no clear reason as to what they want it to do. So they know it’s kind of the in thing and that’s what you do but they don’t know what the end result is. If you don’t have a plan it’s a little bit like trying to build a house without a set of plans. There’s no foundation from which to build the rest of the structure around. Having a documented plan is knowing how old am I now, when do I think I want to retire, how many years away is that. What sort of lifestyle do I want? If I want a $100,000 income it’s needing to calculate I have x number of years to accrue that. So what’s the process to get that and how many properties do I need to buy and how often do I need to buy them to meet my specific requirement. Part of that process is, I know everyone if out there spruiking buy 10 properties in 10 years. It’s not about how many properties you have. Obviously with having, multiple properties you have to manage multiple properties and there are maintenance issues that come with having multiple properties. So it’s about having a tailored plan specific to your individual needs. If all you need are six really really good properties of a certain value then that’s all you need. Unless you just endlessly want to keep going for the sake of it. Not everyone needs to have 10 or 20 or 200 properties, it’s not necessarily about that.
It’s understanding what is that asset going to do for you, what do you need it to do for you. And making sure that you’ve got a foundation or a documented strategy you can then implement and you can then measure back to that strategy. Every year you can see are you on target for that strategy, how far do we have to go so what do we need to do, when do we need to do it and monitoring that as you go.
It’s imperative to never ever sign your name to anything. Even if you have a three day cooling off, from a cautionary point of view you still want to get that looked at before you put pen to paper because there’s complexity around that. It’s law, you’re signing a legally binding contract and if you have haven’t had a lawyer or conveyance point out to you areas of risk or consideration then you’re leaving yourself vulnerable.
Again buying property is complex, you’re dealing with real estate law and legislation. If as a lay person you don’t have a really good understanding of real estate law then it’s possible to easily make mistakes that cost you money. You’re talking about needing to understand from an accounting and tax point of view before you start, how you need to structure a property; even before a name gets put on paper you need proper tax and accounting advice. Same with can you afford the property, you want to be seeing a mortgage broker who can look at your situation and work out what options are available to you and how many options there are in the market place that can help you.
The other thing is understanding that you need to be doing building and pest inspections s that before you buy the property at auction you understand the structural condition of it. There might be issues where’s the repairs or work that needs to be done so if you’ve got $20,000 worth of work on a property you need to factor that in when you’re buying or bidding on a property, you need to keep that in the back of your mind. Or at least allow for it.
If you buy a property and it’s not auction but private treaty, same thing, you want to be putting a condition in there that’s a building and pest inspection but it’s written in the favour of the buyer, not in the favour of the seller.
<a target="_blank" href="mailto:awalsh@propertyobserver.com.au">awalsh@propertyobserver.com.au</a>
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Common investor mistakes when building a portfolio: How the experts buy with Miriam Sandkuhler

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“So mum, what town is your next property development going to be in?” asked my 12 year old son. He’d just returned from a school excursion to Canberra, so maybe he was checking out land as he gazed out the bus window.

I was excited to have a question from him that actually related to property.  I’d been drumming into the kids the benefits or property investing since they were toddlers. They’ve both come on my development site inspection trips (bribed by a promise for lunch at McDonalds).  They’ve been photographed under a street sign that was named after their mum and occasionally I wondered whether any of what I did was sinking in.
But when my son asked this question I smiled because it’s actually a really good question. I’d been mulling over this recently. You see Property Bloom has been looking at widening the areas where we work and this is because there are some economic conditions changing right now in some locations around the Hunter that are specifically linked to mining.
On that subject, I was interested to see this week if our new Prime Minster would be successful in scrapping the carbon tax as promised.  But on Wednesday, Tony confirmed he hadn’t yet as Labor continued to block it. So we may need to wait until the new senate convenes July 1, 2014 to see things change. The flow on effect may not be seen in the mining industry to later in the year.  These are all fundamentals us property investors need to be aware of.
Whilst Property Bloom has been active in the major Hunter coal mining towns, most of our business is still being done in more diverse Hunter cities.  I always come back to the original city I started working in, and still develop in after twelve years. This town has a population of over 53,000 and has grown year on year for the past ten years.  It has a diverse economy, good employment prospects, is affordable with good rental demand.  The capital growth predictions are healthy.  Whilst some properties are selling quickly in this city, it will benefit from the “flow on effect” to come.
We are seeing quite a lot of heat in Sydney right now. I’ve been getting calls from investors trying to get into the more affordable areas of Sydney but who are constantly missing out on purchasing and reporting properties selling way over expectations.  This is making investors start to look at a wider radius around Sydney – which is exactly what I did twelve years ago after purchasing several Sydney properties and realising I needed a mix of negative and cashflow properties in order to continue on my investment journey.
Back then, I pulled up a map of the mighty Hunter Region of NSW and was surprised at how massive it was.  And there are lots of cities and towns that don’t meet our development criteria. For example, Port Stephens is a big part of the Hunter Region. It’s a beautiful area with bushy mountains and dolphins frolicking in the bays making it a fabulous tourism location but unfortunately, there are not enough employment prospects. Some people live there and commute to work in other areas or like my mum, have retired there. It doesn’t stack up for us to develop residential properties here.
Property Bloom is continuously assessing locations around the Hunter for development prospects and we have one on our radar right now that I think will work very well, stay tuned.

<hr>
Jo Chivers is director of <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://www.propertybloom.com.au/" title="Property Bloom">Property Bloom</a>, which manages property development.
 
 
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With the mining boom slowing down, where next for Hunter Valley developments?

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Yes , the market is exploding. <a href="https://marketnews.com.au/tag/demand/" class="st_tag internal_tag" rel="tag" title="Posts tagged with Demand" style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;">Demand</a> at the moment is huge. Around 250 $1 million plus auctions a couple of weeks ago, that suggests there are around 580 would-be buyers out there hoping to snap up a property before <a href="https://marketnews.com.au/tag/christmas/" class="st_tag internal_tag" rel="tag" title="Posts tagged with Christmas" style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;">Christmas</a>. These are the ingredients for a very strong property market ahead of us till Christmas.
Does that sound scary? Do you feel like you’re about to miss out?
Well, if you’re a player with a positive the right mental attitude, these market explosions can be happy ones, as long as you regard them with a glass half-full attitude. Why? Because this is a transacting market – one where you can actually buy and sell better than in a down market. There are lots of good properties out there – unlike last year where they were as rare as hens teeth. You just need to be able to identify the one that’s right for you, and know the strategies to be able to buy it.
Remember, even in this market when everything looks expensive– not all homes are the same. Just as in the 2007 market, there is “good expensive” and “bad expensive”. Those that buy the right home now well will be in a far better situation in 2020, than those who snap up just anything hoping to get into the market no matter what.
To those who boast that they bought a home at $200,000 lower than the private sale price all by themselves – with no valuer, no professional advice, no buyer advocate and minimal research – congratulations on buying a home at a price that nobody else wanted in an exploding market.
Buying the right house is not about getting a bargain, it’s about finding a house that is going to suit your family’s needs over the long time. Those who bought well during the last exploding market in 2007 are in a good situation today, confident they could sell their property well if they needed to, but probably not needing to because the house is fulfilling their needs long-term.
So how do you make sure you are the winning bidder on the right house when there are so many others out there chasing the same properties? As we keep pointing out, auction bidding success is not always about who has the most money or the most luck – it is about experience and strategies.
From our recent experience of buying 14 out of the last 18 homes we bid for, and not because our clients miraculously always had the most money, here are our best tips:
Do build relationships
Do get professional advice
Do eat the right foods in the morning and just prior to pass-in late afternoon negotiations
Do understand number psychology
Do recognise that it is possible to buy if your mind is right
The only two don’ts I have for you are:
Don’t buy a home you don’t want (emotionally – life is too short), and
Don’t buy a home that nobody else wants at the price without being fully informed (financially – life is also too short)

<hr>
Mal James is principal of<a rel="nofollow" target="_blank" href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
 
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