An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" />

It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." />

Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

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

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?

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After<a href="https://www.propertyobserver.com.au/trends/australians-are-not-saving-enough-for-retirement/2013021759365" target="_blank"> last week’s column</a> where I asked for your thoughts on why there’s so little engagement with superannuation, I got a lot of responses, and the clear message that comes through is one of ownership and confidence.
Firstly, because the superannuation guarantee is siphoned off from an employee’s pay packet – into a superannuation account – Australians have little sense of ownership. It feels like a tax; it feels like something the government takes rather than something that employees actually own.
Secondly, those who responded made the emphatic point that it’s hard to have confidence in a system that’s supposed to be our long-term retirement savings but is seen as a short-term proposition by governments. "Stop changing the rules" seems to be the clear signal to governments.
Moreover, there are deeper problems in retirement savings, as I discovered this week when I found myself in a small group of high-achieving people whose ages ran from 25 to 74.
As we spoke it became apparent that superannuation was as hard to engage with in this group as with any. In other words, a general disengagement from super is as prevalent in high achievers as it is for anyone, and in all age groups.
The younger people I was speaking with were embarrassed that they weren’t more interested – none of them felt they had a good grasp on planning for their future. The more mature folks admitted they only became interested on the verge of retirement and urged the youngsters to become interested now. The people in between – in their 40s – were pushing to do the best they could with the time they had left.
Interestingly, among these high earners, the ones who didn’t have an adviser had no little knowledge about how to find one, or more importantly, how to find one who they could trust.
In my mind, the most important part of retirement planning is to take the responsibility and to take action. Responsibility and action.
Once you’ve established these two things, you don’t have to leap further into super if it doesn’t make sense to you. There are other ways to provide for retirement, such as share portfolios, building a business and investing in property.
I happen to think that the tax benefits and security of superannuation is a compelling reason to use this system, especially since the law requires a certain amount of your income is invested in super anyway.
Nevertheless, the important thing is to accept that it’s your responsibility to provide for your retirement, and with life expectancies increasing, you should be looking at providing for 30 years of living rather than 20.
And having taken this responsibility – your money, your retirement, your investments – then you have to take action: find an adviser, establish what you need to do, and do it.
Don’t be embarrassed. Embarrassment makes people duck the obvious questions and avoid making decisions. Embarrassment makes people procrastinate and that’s no way to approach retirement planning.
It’s your retirement, and it’s your money. So, be active, be responsible and take action before it’s too late.
Mark Bouris is executive chairman of <a target="_blank" rel="nofollow" href="https://www.ybr.com.au/">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance. 
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mbouris-tauSvXGAM2

Don't be afraid to ask the obvious super questions: Mark Bouris

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The 'Great Australian Dream' of a home with a sizeable backyard is increasingly being abandoned in favour of medium-density dwellings such as units, townhouses and semi-detached houses, according to new research by Bankwest.




The Bankwest Housing Density report finds 38% of Australian home approvals over the past 12 months were for medium-density housing compared to 31% only five years ago.
The prevalence for medium density dwellings is not surprisingly highest in the capital cities with the reporting find that 87% of medium density approvals across Australia were located in capital cities with only 13% found in regional areas.





This reflects a considerable jump up from 69% in 2007 from the increased volume of medium density approvals recorded in Melbourne and Sydney over this period, with inner city areas facing the highest demand.





Since this 2007 period, inner Melbourne has seen 97% of housing approvals for medium density dwellings with inner Sydney and inner Brisbane following closely behind at 95%.





“The convenience of an inner-city lifestyle is driving demand for medium-density housing in centralised areas. Young city professionals are shunning the traditional homeowner dream in favour of lower overheads and a shorter commute to work,” says Bankwest retail chief executive, Vittoria Shortt.




The report also showed an increase in medium-density housing approvals in seven of Australia’s eight capital cities since 2007, with Perth being the only exception seeing a fall in its share of medium-density housing approvals over the last year of 20% compared to the level of approvals over the last five years of 23%.





“Higher than average wages and a sprawling city mean that Perth’s residents aren’t facing exactly the same space and affordability issues as those on the East Coast,” says Shortt.





The highest proportion of medium density housing approvals recorded outside of Australia’s capital cities, generally occurred in tourist and mining areas. Queensland’s Gold Coast East tourist hub had the biggest number of dwelling approvals over the last five years at 87%.





Mining areas across the Northern Territory, Queensland and WA also saw significantly high numbers of medium housing approvals last year. East Arnhem had 54% of total approvals for medium density dwellings, 43% of approvals for Queensland’s North West and 39% of approvals in De Grey in WA’s Pilbara region.



Shortt says the high property prices in Australia have made the dream of a standalone house in the suburbs significantly harder to achieve, leaving medium density housing the more affordable alternative.





“The popularity of medium-density housing will likely be maintained as older Australians continue downsizing to more manageable self-contained units and first time buyers look to medium-density dwellings as a cost-effective option."





Bankwest's First Time Buyer Deposit Report, released in December 2012, found units were a more suitable option for first time buyers wanting to live in Australia’s capital cities, taking the average first time buyer couple 3.3 years to save for a unit deposit compared with 4.2 years to save for a house deposit.
Photo by Michael Senchuk, courtesy of Flickr.
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gdwyer-vyxhMDDW5L

Aussie home with a backyard dream over: Bankwest survey

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For much of last year the Australian housing markets were a "tug-of-war", with low interest rates pulling hard on one end of the rope and poor consumer confidence at the other.
Despite many of the fundamentals being sound, consumers were sitting on the sidelines waiting to see how the economy played out or for someone to ring the bell that the property market had bottomed.
Well… no one rang the bell, but our property markets did bottom in the middle of last year and consumer confidence is slowly returning.
In a moment I’m going to share nine reasons why I feel our property markets are going to perform well this year, but let’s first look at:
 
Consumer Confidence 
Last week the Westpac/Melbourne Institute index of consumer confidence rose to its highest level in over two years. Consumer confidence rose sharply in NSW and Western Australia and recorded healthy gains in Victoria and Queensland.
The index is up 7.2% over the year to February and this is the first big jump in confidence since the RBA commenced its rate-cutting cycle which dropped its interest rate by 1.75%.
Now don’t get me wrong, this is good news for our housing markets, but confidence isn’t at the level it was in previous rate-cutting cycles and this points to more subdued property price growth than might be expected given the current level of interest rates.
<div><img src="/images/stories/2013/02/yardneyfeb22graph1.jpg" width="470" height="297" alt="yardneyfeb22graph1"></div>
<div>Source: Westpac</div>
<div></div>
 
What does all this mean?
Over the last few years, global as well as local economic uncertainty caused Australians to stash their cash. Some saved their pennies, many reduced their credit card debt and others took advantage of low interest rates to pay off the principal in their home mortgage.
But things are changing and the average Australian is now feeling more confident about their future and their job security. There has also been a strong wealth effect for households from rising stock prices on the ASX.
If history repeats itself, increasing confidence, low interest rates and robust financial   positions will encourage many Australians to ramp up their borrowings again and get into the property market.
The following chart from economist Leith Van Onselen of <a href="https://www.macrobusiness.com.au/2013/02/a-confidence-lift-for-housing/" target="_blank">Macrobusiness</a> plots the annual change in house prices (as measured by the ABS) against the annual change in the consumer sentiment index on a quarterly basis up to December 2012 and shows how rising consumer sentiment is a bullish indicator for Australian house prices.
<img alt="yardneyfeb22graph2" height="335" width="470" src="/images/stories/2013/02/yardneyfeb22graph2.jpg">
What are the implications for interest rates? 
It’s likely we’ll see the increase in confidence feed through to the broader economy, as well as stimulating further rises in our sharemarkets and house prices.
In today’s connected society, as confidence rises there will be a new group of investors who will fear missing out and this will stimulate the investment cycle to once again move forward.
This suggests that the Reserve Bank won’t make changes to interest rates any time soon, preferring to see how the economy responds to the rate cuts it has already made. 
Nine reasons our property markets will perform well this year 
I’m confident about our property markets in 2013, not only because consumer confidence is rising but:
1. Last week NAB confirmed that business confidence is also rising. This is good for our economy and for job prospects.
2. The Australian sharemarket has performed remarkably well over the last year, enhancing people’s wealth, replenishing their super funds and instilling confidence in investors.
3. The world’s economic problems seem to be diminishing. China’s growth seems to be back on track with predictions of 8% growth this year. The USA is slowly working it’s way through its economic problems, and while Europe is still a basket case, no one seems to be worried that it will bring down the world banking system like they were last year.
4. We have record low interest rates. This means existing home owners and investors are benefiting and paying down their debt faster; while new borrowers will reap the benefits of being able to borrow more.
5. Household budgets are in good shape. Since the GFC, Australians have been saving more. Credit card debt is low and 68% of people are ahead on their mortgage payments. Our robust household balance sheets means we have more money to invest and as people hear more good news stories in the media they’ll start to put their money into property.
6. Low interest rates and less volatility in our economy make cash and interest bearing deposits unattractive investments. While some investors will look at getting into the sharemarket, many won’t forget how the volatility of equities burned them a few years ago and will look to the security of bricks and mortar.
7. After the turmoil following the GFC more Baby Boomers are keen to control their own destiny by managing their own self-managed super funds (SMSF). Rivers of cash from SMSFs are going to be flooding the real estate markets over the next few years.
8. Increasing immigration and a shortage of properties in some inner and middle ring suburbs of our capital cities will see rents continue to increase. On the one hand, this will provide investors with better yields, but it will also encourage a new group of first home buyers to get a foot on the property ladder.
9. Recently, economist Christopher Joye used the following graph in <a href="https://www.afr.com/p/blogs/christopher_joye/housing_values_maintain_build_up_N2u1LtLLkNmHCKvZXOxlFJ" target="_blank">The Australian Financial Review</a> to confirm that despite what some of the overseas reports are suggesting, Australian houses are more affordable than they have been for over a decade:
<img alt="yardneyfeb22graph3" height="486" width="470" src="/images/stories/2013/02/yardneyfeb22graph3.jpg">
In summary
The property markets have bottomed, consumer confidence is returning and the property cycle is moving on. Already we’re seeing more people attending open for inspections and making offers on good properties and auction clearance rates for the first few weekends of this year have been strong.
The beginning of a new property cycle is a great opportunity for investors to ride the next property wave and doesn’t come around that often.
2013 will be a good year for property. Educate yourself, learn lesson from the past and take advantage of the opportunities the market has to offer.
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myardney-DFoGhGbSJX

Why 2013 will be a good year for property: Michael Yardney

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Hi Margaret
We have an investment property that needs some tidying up to maximise the rent – things such as replacing the carpets, renovating the kitchen and bathroom, painting and a carport.
Should we get a depreciation schedule before and after the renovations?
Your help is appreciated.
Regards
Debbe
 
 
Hi Debbe
I am so glad that you clarified this before you went ahead.  There is a significant benefit to be gained from what is known as ‘scrapping’, but all too often investors think of this after they have already thrown everything out, and this is too late.
First of all, your property has to be technically in the middle of being rented.  So, if it’s never been rented and you carry out these minor renovations before you make it available to rent, then you will not be able to make claims.  The property must be ‘income-producing’ in order to make claims.  So the best time is either while the tenant is in there, or in between tenancies.
If you do not know the value of the items which you will be removing from the property, start out by having a depreciation schedule prepared.  You are allowed to estimate the value of plant and equipment yourself (but not construction values), but in my experience it’s easier to have the schedule prepared, as this provides your construction values too.   Once you have had this done, go ahead and carry out the makeover.  Then, have the quantity surveyor come back to prepare an updated schedule.  It’s probably helpful if you can keep a list of anything you threw out to assist them.
You can then go ahead and ‘scrap’ any items which had a value before you disposed of them.  This means that their full, remaining value as at the time you threw them out carries an immediate deduction of 100% of the value for you, in that year!  For example, if you dispose of $5,000 worth of old items, you can claim an immediate tax deduction for the entire amount! For those on the 40% tax bracket, this is a tax break of $2,000, which isn’t to be sneezed at!
Good luck with your renovation!
Update
Last week a reader asked me to clarify whether I meant that you could avoid capital gains tax if you move out of your Principal Place of Residence for up to 6 years (as written), or if I meant 6 months!
You can move out of your PPOR for up to 6 years and still claim the PPOR exemption on that property, as long as you are not claiming the exemption on any other property.  You can rent it out during this time.  You must move back in (or sell it) not a day later than the 6 years are over.
The ‘6 month overlap rule’ is a different rule – it states that you can apply the PPOR exemption to two properties at the same time for an overlap period of not more than 6 months.  This allows you to move from your former home and into a new one and have 6 months to sell the old one without incurring CGT.  Again, the timing is strict; one day more than 6 months and the CGT applies form the date you moved out.
 
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel onYour Money, Your Call, both on Sky News. She is the founder of <a rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Ask Margaret: When should I get a depreciation schedule?

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Investors who purchase Perth apartments or Perth properties priced under $500,000 have the best prospects for capital growth over 2013, says WBP Property Group CEO Greville Pabst.
Pabst expects these types of Perth properties to generate capital growth of between 5% and 10% over 2013.
However, the outlook is far from uniform across Perth with Pabst forecasting that Perth holiday homes could lose up to 5% of their value over 2013 with declines of up to 3% for residential development sites.
The outlook for Perth houses within 20 kilometres of the city is for capital growth of around 7% at best, but there could be no price appreciation for Perth houses over 2013.
Little if any gains are tipped for the Perth prestige market ($2 million plus).
The outlook in Sydney is strongest for established housing within 10 kilometres of the CBD (up to 5% growth) with small gains for established units (up to 2% growth), but the rest of the market is expected to struggle with Sydney holiday homes set to fall by as much as 10% in value.
The forecasts cover the key capital city markets of Sydney, Melbourne, Perth and Brisbane and recognise that "different markets [within a larger market] perform differently”.
The outlook is fairly consistent for Brisbane, with modest growth tipped across both houses, units, the holiday market, mortgage belt and even for the long-struggling residential development site sector.
House prices within 20 kilometres of the Brisbane CBD are forecast to grow by 5% or more.
In Melbourne the prospects are strongest for established house and units but weakest for holiday homes and development sites where values could fall by double digits.
Pabst says it’s important for buyers to recognise that “no two properties perform the same because no two properties are exactly the same.
“Size, suburb, street and lot location, orientation, condition and broader economic conditions underpin property performance on an individual level, and exercise significant influence on capital growth,” he says.
<img alt="wbpfeb22one" height="317" width="470" src="/images/stories/2013/02/wbpfeb22one.gif">
<img alt="wbpfeb22two" height="152" width="470" src="/images/stories/2013/02/wbpfeb22two.gif">
<img alt="wbpfeb22three" height="173" width="470" src="/images/stories/2013/02/wbpfeb22three.gif">
Note: The forecasts do not include analysis of off-the-plan properties and only include legitimate resales
Photo courtesy of Flickr.
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lschlesinger-FZcF9M3vE6

Perth apartments likely to be the standout performers for 2013: WBP 

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<div>Rising prices usually are preceded by rising rentals and/or rising sales volumes.</div>
 
<div>This is why we can feel confident about higher prices in 2013 in many markets across Australia.</div>
 
<div>I written several times in the past six months about a period of strong rental increases being followed, perhaps 12 months later, by an upturn in prices. Gladstone and Darwin both followed this pattern in 2012 and Perth has begun to follow suit.</div>
 
<div>The other indicator of price growth is increased sales activity. If sales rise strongly, so too will prices.</div>
 
<div>In Queensland, we saw a steady upturn in the number of sales in markets throughout Brisbane and across the state in the second half of last year, particularly in the December Quarter. The last three months of the year also delivered the first signs of prices rising in markets which had been dormant in the previous two to three years.</div>
 
<div>Figures from the Real Estate Institute of Queensland show that most of the state’s major markets had strong increases in the sales activity. The average rise across the state in the quarter was 8%.</div>
 
<div>In the Brisbane metropolitan area, Ipswich City and Redland City both saw an 18% rise in sales numbers in the December Quarter, while the Moreton Region in the north rose 20%. Logan City in the south (up 8%) and Brisbane City (up 9%) both experienced smaller but nonetheless healthy rises.</div>
 
<div>Outside the state capital, the activity stars were all markets which have struggled in the past four or five years, but now may be heading at last into better times. Sales numbers in Cairns rose 25%, with the Sunshine Coast up 27% and the Gold Coast 19%. But the biggest gains were in the Hervey Bay region, up 37%.</div>
 
<div>Of those markets, the one that inspires the most confidence in terms of near-term price growth is the Sunshine Coast, which has passed the bottom of its trough and has some major infrastructure developments coming up to boost economic activity and jobs.</div>
 
<div>Cairns is also is working hard to generate economic buzz and diversify beyond tourism – and should do better in the next five years and than in the last. The strong rise in sales activity may be the beginnings of recovery on the Gold Coast.</div>
 
<div>Hervey Bay has been a previous growth star, both for population and house prices, but suffered from over-building and has produced no growth in the past 3-4 years. All the signs suggest it’s now on the way back, with some significant construction projects to push things along.</div>
 
<div>Other regional centres to deliver solid activity growth were Toowoomba (up 6%), Townsville (up 9%) and Rockhampton (up 6%).</div>
 
<div>The price data for the December Quarter has the Sunshine Coast, Toowoomba, Hervey Bay and Rockhampton showing early signs of price growth. Mackay, which had earlier shown an increase in sales activity and rentals, recorded a 9.6% rise in its median house price in the December Quarter. Mount Isa prices are also starting to surge, following strong rental growth earlier.</div>
 
<div>We’re seeing increased sales activity elsewhere in Australia, especially in Perth.</div>
 
<div>One of my favoured areas of the WA capital, Rockingham City beside the ocean in the south of the metropolitan area, has been lifting sales numbers recently. Four months ago, house sales over 12 months totalled 1,580. The most recent figures show annual sales numbers have risen to 1,905 – and we’re seeing the first signs of prices rising.</div>
 
<div>Similarly, annual house sales in the inner southern suburbs of the Murdoch precinct have risen from 499 four months ago to 539, with prices starting to rise also.</div>
 
<div>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a></div>
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terryryder-YECXbqmri2

We can feel confident about higher prices in 2013: Terry Ryder

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Auction clearance rates <a href="https://www.propertyobserver.com.au/auctions/apm-s-melbourne-auction-results/2013021759384?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_self">nudged 70%</a> in Melbourne last weekend and now all the major banks have followed Westpac’s lead in dropping their two year fixed rate to 4.99%. The scene is set for the market to move – particularly the inner urban areas – and I believe it will grow by more than 10% this year.
For many people, this is a scary proposition, as getting into the market is already difficult. With four young children of my own at home, I often wonder how on earth they are going to be able to afford to get into the market. I am sure it will just be a matter of time before they stop asking for iPods and get into more serious requests.
Many parents are already being called upon to assist their children either into their first home or to upsize as they start a family. It is important, however, that both parties enter any arrangement with eyes wide open.
Let’s say your child wants to purchase a $500,000 property (a fairly modest price in many parts of Melbourne). Without a substantial deposit, they are forced to borrow 95 per cent of the purchase price, or $475,000. Unless they can find a way to reduce the loan amount to 80% of the purchase price, or $400,000, they will have to pay mortgage insurance. On a loan of $475,000, this could cost around $15,000.
To avoid mortgage insurance, they need a $100,000 deposit plus around $25,000 to cover stamp duty and other costs. They either need to save $125,000 or call in some help.
If you are willing and able to help, that’s great — but what’s the best way to do it, at a time in life when you are probably focused on saving for your retirement and can ill afford to risk your hard-earned savings?
Option One is to put the funds into a term deposit and offer that as security for the loan. This carries relatively little risk for you because it doesn’t make you responsible for paying back the loan.
In this scenario, they borrow 100% of the property value with a principal and interest loan in their own name. Over time, with the combined effects of loan repayments and capital growth, the loan balance will drop to 80% of the property’s current value.
They should keep an eye on sales results for similar properties in the local area, and ask a local estate agent to give an opinion on the property’s current market value. If it looks like the value has grown to the level where the loan is less than 80%, they can ask their lender or broker to arrange a new valuation. No need to pay for it as many banks now provide free upfront valuations.
If the valuation confirms that they have reached the 80% mark, the lender can release the term deposit and the money is yours again to do with as you choose.
What if you don’t have a lazy $125,000 in cash? Option Two is to take out a line of credit against your family home or investment property. You transfer them the funds, and they take out a $400,000 loan in their name. This option is relatively low risk for you because you are not responsible for the loan repayments. However, you need to understand that lenders charge interest on funds withdrawn from a line of credit. The rate is generally around .15% higher than a normal home loan.
Option Three carries more risk for you and should not be entered into lightly. Under this option you put up the family home or investment property as security for their loan. In this case, you become guarantors and therefore responsible for the loan. If they don’t meet the repayments, you could lose the property, though this only happens in extreme situations.
If you choose this option, it’s preferable to ask for a limited liability guarantee, which means you are not liable for the whole loan amount. In addition it is better, if possible, to use an investment property as security. This way, if the worst happens, the family home won’t be jeopardised.
No matter which option you choose, you should aim to minimise the level of risk and the length of time your funds are tied up. The sooner they can take full responsibility for their financial affairs, the better off everyone will be.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers
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marmstrong-sd3emVLPPb

How to help your children break into the market: Mark Armstrong

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The stars have well and truly aligned for Asian buyers wanting to invest in Australian residential projects.
The most recent development has been the introduction of “golden ticket” visas aimed at fast-tracking wealthy Asian investors’ entrance into Australia with a provisional four-year visa followed by the opportunity to apply for permanent residency.
The new Significant Investor Stream Visa (as it is officially known) requires an investment of at least $5 million in state or territory bonds; an ASIC-regulated managed investment fund; or a direct investment in an Australian company, which would include investments in commercial property backing a business such as a hotel or lodge.
The visa allows immigrants to skip skilled migration requirements such as being proficient in English and requires immigrants spend a minimum of just 40 days a year in Australia over the four-year visa period.
There is also no upper age limit, and the main applicant does not have to meet the business points test.
The Foreign Investment Review Board (FIRB) requirements must still be met under the visa 188 and 888. However, most commercial enterprises have a substantial financial threshold (currently $244 million) before requiring FIRB approval.
Tony Hogarth, who is a registered migration agent, says it is significant that English language is not a requirement for these visas
“This is likely to open up the Australian market to Chinese investors in particular, where language skills may have been a prohibitive factor in the past.”
The visa complements a number of factors that make investing in Australian residential projects particularly appealing to Asian investors.
According to Savills Australia’s Victorian investment directors, Clinton Baxter and Nick Peden, Asian investors already benefit from easy access to capital, and they also have tremendous competitive advantages over local developers of residential projects, including:
• Lower costs of funds from offshore sources;
• Established project marketing avenues in south-east Asia, leading to strong and rapid pre-sales of apartments; and
• A capacity to bypass onerous pre-sale requirements of the local banks.
These factors allow Asia-based developers to respond more rapidly to market conditions and deliver projects more quickly than most local developers.
“We regularly have several offshore buyers vying for the same property, such is the depth of interest and flow of capital from Asia into the Melbourne market,” say Baxter and Peden.
CBRE associate director Mark Wizel says there can be no doubt many of the new entrants have a far greater ability to contribute their own equity to both development projects and investment assets.
Furthermore, Wizel says that a lot of mainland Chinese developers are not adverse to risk and aggressively gear their projects, especially in the development space.
“We have seen many examples of Malaysian, Singaporean and Chinese developers using local Australian banks for senior debt funding and believe this will continue.
 “One area of particular note, however, is the emergence of offshore banks (mainly Asian) wanting to undertake funding of Australian development projects and investment assets,” he says.
“2012 saw the opening in Collins Street of retail branches for ICBC (the world’s biggest bank) and China Construction Bank, both of Chinese origin and both who have already shown a strong interest in supporting Chinese developers and investors in Melbourne.
“These banks join the Bank of China in Melbourne, who have been here for some time and whose appetite towards large scale lending is no doubt increasing,” he says.
In addition, Wizel says it is understood that OCBC from Malaysia has also been very active as an offshore lender to Malaysian developers working on projects in Melbourne.
Wizel says simple things like the language barrier and the ability to understand that mentality of Asian developers given Chinese bank an advantage over local banks.
In addition to financial factors, Wizel says both Malaysian and Chinese ties with Melbourne go back many decades.
He says Malaysians have an affinity with the city dating back more than 30 years, where many prominent Malaysian property players were educated and where the investment relationship into direct property commenced in the late 1980s.
“In relation to mainland Chinese investment, it needs to be noted that Melbourne has a strong history with Chinese people, this is no better understood than the fact that our Chinatown precinct is known to be the oldest Chinatown precinct anywhere in the world with San Fransisco’s Chinatown precinct coming second,” he says.
For more on Australia’s allure for Asian residential property investment, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-australias-allure-for-asian-residential-property-investment">download our free eBook</a>. It is also<a target="_blank" href="http://propertyobserver.com.au/ebooks/australias-allure-for-asian-residential-property-investment-free-ebook"> available in Chinese.</a>
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New 'Golden Ticket' visa offers further advantages for cashed-up Asian investors keen on Australian real estate

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It is expected that there will be over 1,900 capital city auctions held over the coming week, according to RP Data.
The combined capital city auction clearance rate was recorded at 58.9% last week, up from 55.4% the previous week.
Over the same week in 2012, the auction clearance rate was considerably lower at 47.9%.
Last week, auction volumes increased substantially from 667 the week prior, to 1,116.
Last week, in Melbourne, Australia’s largest auction market, there were 541 auctions.
The clearance rate remained almost unchanged, up slightly from 65.7% the previous week to 66% last week.
Sydney’s auction clearance rate increased from 55% the week prior to 63.2% last week when 323 auctions were held in the city.
In comparison, at the same time last year, Sydney’s auction clearance rate was recorded more than 15 percentage points lower at 47.4% when there were 435 auctions held over the week.
Click to enlarge
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Auction clearances increase as big weekend looms: RP Data

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Peter Temple ranks among Australia’s most gifted novelists. He writes compelling crime fiction, set usually in Melbourne against a background of corrupt politicians and a development industry that’s able to buy planning approvals. 
That’s fiction, of course, but my three decades in and around the Australian property industry has taught me that developers can wield undue influence over politicians at all levels of government.
This is a topical issue in Victoria at present, with the lord mayor of Melbourne accused in local media of having “hidden links” to developers and the state government displaying a trigger finger when it comes to over-ruling local authorities on planning decisions, always in favour of the developer. 
The Victorian government apparently believes that facilitating a high level of construction of mega unit developments is the key to revitalising the state’s stuttering economy. 
The concern for anyone who owns a Melbourne apartment, particularly in the inner-city areas, is that the city already has an oversupply of units, and it’s going to get worse before it gets better. 
I would urge anyone contemplating investment in the <a href="/news">Melbourne</a> CBD, <a href="/news">Docklands </a>or <a href="/news">Southbank </a>to research very carefully. 
According to SQM Research, the vacancy rate in the Docklands postcode is close to 9%. The CBD is a fraction over 9%, while Southbank has a vacancy rate of 11.5%. This is at a time when all capital cities other than Melbourne have vacancy rates below 2%, according to SQM Research. Melbourne overall sits at 3%, with its vacancy rate elevated by those inner-city areas. 
Recently CBUS Property launched marketing for a new CBD unit development, and developer ISPT has gained approval for a six-tower project comprising almost 3,000 apartments on the <a href="https://www.propertyobserver.com.au/victoria/six-high-rise-towers-to-replace-former-age-site-on-spencer-street/2013012959013" target="_blank">Spencer Street site formerly occupied by The Age newspaper. </a>
The state government has approved a 68-storey CBD building that will have 581 units. The north-western reaches of the CBD have attracted plans for multiple unit developments, including 452 apartments in what would be the CBD’s tallest apartment building. 
In the south-eastern suburbs just beyond the inner city, a state government panel has approved a 466-unit development in Armadale over strong opposition from the local council and residents. Around 2,000 apartments are proposed for a re-development of Moonee Valley racecourse, while many thousands more will emerge on the 240-hectare Fishermans Bend urban renewal area much touted by the state government. 
The industry’s standard argument, in response to oversupply concerns, is that projects will not be built unless there is demand. Developers can’t get finance unless they have pre-sold a major share of the planned apartments, therefore the market is insulated from surplus. 
The theory doesn’t hold up, however. If it was a valid argument, the Gold Coast would not have suffered from years of oversupply (which still lingers) and Melbourne would not have had the surplus that undercut the unit market around 2003-04. 
When genuine local demand is poor, developers can always manufacture sales by running road-shows in far-flung locations and selling apartments to distant investors who don’t know Melbourne conditions. 
That’s what’s happening right now in the Melbourne market. Representatives of development companies are roving Asia, running seminars and encouraging overseas investors to buy in “booming Melbourne”, or targeting high-income earners in mining towns or other locations well-removed from Melbourne. 
History suggests the outcome will be poor settlement rates when the projects are completed, higher vacancies and declining rentals, leading to falling property values.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" rel="nofollow" target="_blank">hotspotting.com.au</a> and can be <a href="https://www.twitter.com/hotspotting" rel="nofollow" target="_blank">followed on Twitter</a>.
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