Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

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?

National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.

NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB changed its call following the August monthly inflation figures that were released at the end of September, showing it had dropped to 2.7 per cent.

"The risk has been skewed to a first cut earlier in 2025, and today’s change acknowledges the balance of risks has likely shifted sufficiently for the RBA to feel comfortable cutting a little sooner than we earlier expected," NAB noted in its latest update.

They added that the cadence of the cuts may be faster than its central profile.

"Domestic inflation pressures are cooling, but only gradually, and we continue to expect the conditions for a cut will not be in place this year.

NAB believes the easing cycle will end at 3.1 per cent by early 2026, which is five cuts from the current 4.35 per cent cash rate.&nbsp;

CBA also thinks 3.1 per cent will mark the end of the cutting cycle, while Westpac is forecasting 3.35 per cent, and ANZ is the most pessimistic at 3.6 per cent, which would be just three interest rate cuts.

<h2>What would a rate cut in February look like for borrowers?</h2>

According to&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2vK2ujS77CHs9VRvSSXzLC" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG" target="_blank">Canstar</a>, if there is a cut in February, a borrower with a $600,000 loan today and 25 years remaining would see their monthly repayments drop by $92.&nbsp;

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			Impact of 0.25% pt cut in February 2025
			</td>
		</tr>
		<tr>
			<td>
			Current loan size
			</td>
			<td>
			Drop in monthly repayment
			</td>
			<td>
			New monthly repayment
			</td>
		</tr>
		<tr>
			<td>
			$600,000
			</td>
			<td>
			-$92
			</td>
			<td>
			$3,907
			</td>
		</tr>
		<tr>
			<td>
			$750,000
			</td>
			<td>
			-$114
			</td>
			<td>
			$4,884
			</td>
		</tr>
		<tr>
			<td>
			$1M
			</td>
			<td>
			-$153
			</td>
			<td>
			$6,512
			</td>
		</tr>
		<tr>
			<td colspan="3">
			Source:&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2qVnp6oqATgqDUi2Frm22q" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL" target="_blank">www.canstar.com.au</a>. Starting rate is the RBA existing average owner-occupier variable rate of 6.36%. Assumes banks pass the cash rate cut on in full the month after the meeting.
			</td>
		</tr>
	</tbody>
</table>

Canstar Data Insights Director, Sally Tindall, says if core inflation continues to track in the right direction, or unemployment starts to accelerate significantly, we could well see a cash rate cut as early as February of next year.

“All four big banks now believe the RBA will be ready to cut the cash rate in just over four months’ time, if not before, in the case of CBA.

“However, the outlook for both inflation and unemployment is still highly uncertain. A couple of wobbly sets of inflation data could see the RBA holding for longer, particularly if unemployment remains relatively steady."

&nbsp;

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB bring forward first RBA cut to February 2025

<html><body>
Home loan applications are up 23% for the first three weeks of January 2012 compared with January 2011, according to RateCity.com.au.
The mortgage comparison website recorded an increase in activity over the past six months and a 41% jump in applications in December 2011 compared with July 2011.
It is unclear though how much of this increased activity is due to borrowers taking out new home loans or existing home owners refinancing their mortgages, as RateCity.com.au is unable to provide a breakdown of home loan applicant types.
RateCity.com.au has attributed the increased activity to lower property prices, two successive interest rate cuts and “aggressive discounting by lenders eager to kick-start the borrowing market”.
It has also noted a return of first-home buyers to the market following RBA data showing that first-home buyers make up one in five (20%) of all mortgages for the first time in almost two years.
Damian Smith, RateCity's CEO, said the mortgage market is finally picking up the pace.
"This year, the mortgage market looks set to recover from the past two years of slower growth," Smith says.
"While we're yet to see the strong numbers of home buyers from five years ago, lenders are likely to see business improving this year as borrowers react to lower prices and interest rates."
Almost 51,000 home loans were financed in November, according to figures from the Australian Bureau of Statistics released last week.
"This is the biggest number of home loans financed recorded by the ABS for two years," says Smith. "The dollar value of these home loans was almost $15 billion in November alone."
According to RateCity.com.au, the lowest rate on a three-year fixed-rate loan is 5.95% offered by non-bank lender HomeStar Finance, which is funded by ING; Deutsche Bank and HSBC.
The lowest standard variable rate loan is offered by non-bank lender State Custodians at 6.22%. NAB’s Ubank is offering a refinancing standard variable loan at 6.14%.
 
 
</body></html>

lschlesinger-FZcF9M3vE6

Mortgage applications up 23% in January: RateCity

<html><body>
As we move into a new year, it is my feeling that interesting times are ahead for both the Australian residential property and mortgage markets. 
There is no doubt that as uncertainty continues in global economies many Australian home owners will continue to hurt financially. 
However, the prevailing economic conditions are also heavily influenced by decisions made by the Reserve Bank of Australia, which moved to cut the official cash rate by 50 basis points over November and December – decisions that will no doubt help stimulate the property and mortgage markets. 
Recent labour force data released by the Australian Bureau of Statistics has certainly fuelled speculation that the Reserve Bank will move in February (at least), with many pundits predicting a potential cut of 25 basis points – bringing the official cash rate down to 4%. 
Such downwards movement in rates is helping to improve purchase conditions and levels of confidence for many of those Australians who are in a position to buy yet spent 2011 sitting on the fence. And with the rental market continuing to tighten across the country, many buyers, including both previous renters and investors, are moving to take advantage of fortuitous purchase opportunities and lending conditions. 
Therefore, circumstances that are highly concerning for many are also helping to improve prospects for others.  Interesting times ahead. 
So how can borrowers best approach mortgage management in 2012?
When to fix? 
Understandably, many of those people looking to obtain finance to purchase a property will be waiting for the possibility of further rate cuts so as to secure the lowest fixed-rate home loan package. 
While there is certainly the potential for fixed rates to come down with further rate cuts, it is my suspicion that the rates offered by lenders across the board will eventually bounce back up at some stage over the course of the year. 
If this happens, it will occur with little warning and could be quite substantial – with prospective borrowers missing out on good mortgage packages, resulting in larger monthly repayments. 
As such, I would advise that those borrowers who wish to fix do so, as rates are coming down – a mortgage professional will be able to provide guidance as to the best product and associated rate for your personal situation. 
Choose your lender wisely 
I would encourage those borrowers who may usually prefer to do their banking with the big four to contemplate the mortgage offerings of second-tier lenders. As the major banks ponder whether or not to pass on rate cuts in full, the mortgage products of many second-tier lenders generally present good propositions, and are certainly worthy of consideration if suitable for your personal situation. 
This goes for current mortgage holders as well – don’t discount the value that refinancing with a second-tier lender could have if your current lender declines to pass on any future rate cuts (be it one of the big four banks or another second-tier company). 
Take care with valuations when refinancing 
With some property values declining in various areas of the country across 2011, investors may find that when refinancing in order to expand a property portfolio, a valuation shows their position is not as strong as they had thought.  As such, it is essential that investors ensure they have adequate equity prior to making further purchases, and ideally should consult with a mortgage professional to ascertain their true financial position. 
Despite concerning conditions in global financial markets, the year to come should certainly present some attractive mortgage opportunities to those Australians who are financially positioned to make a property purchase.  I would urge buyers to seek the advice of a mortgage professional so as to be able to take advantage of attractive interest rates and to ensure that you end up with the best home loan for your circumstances.
Charles Tarbey is chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21.</a>
 
 
</body></html>

ctarbey-W47GL9jwxa

What's in store for borrowers in 2012

<html><body>
Victorian’s mortgage comfort level has plummeted in the last three months, according to the latest ING Direct Financial Wellbeing Index. 
Over the last three months of 2011, the state’s borrowers have gone from being the most comfortable with their level of mortgage debt to being the least comfortable.
Victorian borrowers were the most confident in the September 2011 survey, leading the nation in comfort with their mortgage (5.6 out of a possible 7), household income (4.19) and personal savings (3.58). 
However, in the December 2011 survey, Victorian borrowers scored 5.3 out of seven – the lowest comfort level of all states despite having a relatively small median mortgage debt of just under $187,000. 
The index measures personal comfort level on a scale from 1 (“very uncomfortable”) to 7 (“very comfortable”).
<img src="/images/stories/comforting.gif">
Source: ING
“Victorians are falling behind financially,” says ING. “The fourth quarter of 2011 saw a significant plunge in Victoria’s household financial wellbeing as the state’s index score dropped to 101.4 down from 110.1 in the third quarter. 
“The state also recorded the nation’s lowest comfort ratings across five key indicators including comfort with long term debt, savings, ability to pay bills, income and investments. 
“In 2011 only 27% of Victorians gained ground with their personal finances – 36% fell behind (59% of low-income earners) with 77% blaming the increasing cost of household essentials. 
“One in four (25%) expect their personal finances to deteriorate further in 2012. 
“Higher taxes/levies and rising living costs are the chief financial concerns for 32% of Victorians, followed by fears of job losses (20%),” the report highlights. 
Further suggesting a gloomier outlook, a higher proportion of Victorians (40%) expect the economy to worsen in 2012 compared to a national average of 35%. 
Conversely Victorians feel more comfortable about their level of savings (up to 3.83 from 3.58), suggesting as shift towards deleveraging. 
About 41% of Victorians are making extra mortgage repayments compared with 36% of borrowers in NSW and the ACT. 
In contrast, mortgage holders in NSW and in the ACT are most comfortable about managing their mortgage repayments and other long-term debts, with the state achieved the nation’s top score for financial wellbeing of 109.1. 
NSW and ACT borrowers scored 5.9 out of 7 on the mortgage debt component of the index. Borrowers from NSW and the ACT have a median mortgage debt of $264,000. 
Only 21% of NSW households saw their financial situation deteriorate in 2011, compared with 32% nationally. 
One in three (31%) NSW households expect the economy to deteriorate in 2012, but 78% see their personal finances improving or holding steady this year. 
Including all six measures of financial wellbeing (mortgages, credit cards, savings, investments, household income and ability to pay bills), the state’s wellbeing index has improved from 108 to 109.1, and NSW and Western Australia have the joint highest overall comfort level of 4.4. 
According to ING, Western Australian borrowers are making the most effort to deleverage, with more than half (55%) making extra mortgage repayments.  The state has the smallest average mortgage debt of $159,000. 
Overall, the survey found that almost two-thirds of households (61%) are comfortable with their home loans with 41% ahead with their mortgages – though is down slightly from 46% in the third quarter. 
Although 35% of Australians expect the economy to deteriorate in 2012, only 22% of households believe their personal financial wellbeing will decline. 
The majority (75%) expect their financial position to improve or remain unchanged. 
One in four (27%) households hold less than $50,000 worth of assets, including equity in the family home (excludes superannuation savings). Over half (52%) have no investments at all outside their home and almost the same proportion (50%) have less than $17,000 in personal savings.
 
</body></html>

Victorian mortgage confidence plummets: ING 

<html><body>
The appeal of line-of-credit mortgages – traditionally popular among property investors – has declined to levels last seen May 1998, according to the latest ABS Housing Finance figures.
The November figures show that only 3.7% of home loans were revolving line of credit, with just 1,900 of these loans taken out over the month.
Line-of-credit loans peaked at 16.1% of all loans in June 2002, when more than 8,300 of these loans were taken up by borrowers.
The popularity of the products, which act like giant credit cards or bank overdrafts, dropped below 10% of all loans in 2006.
Their recent decline has matched Australian households increasing their savings and deleveraged their balance sheets in the response to the GFC and in the face of more economic uncertainty.
 
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="214" valign="top">
 
</td>
<td width="219" valign="top">
Line of credit mortgages as % of total housing finance
</td>
<td width="183" valign="top">
Average loan size
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2002
</td>
<td width="219" valign="top">
12.4%
</td>
<td width="183" valign="top">
$155,000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2006
</td>
<td width="219" valign="top">
8.2%
</td>
<td width="183" valign="top">
$195,000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2007
</td>
<td width="219" valign="top">
5.8%
</td>
<td width="183" valign="top">
$253,000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2008
</td>
<td width="219" valign="top">
6.5%
</td>
<td width="183" valign="top">
$301.000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2009
</td>
<td width="219" valign="top">
5.6%
</td>
<td width="183" valign="top">
$288,000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2010
</td>
<td width="219" valign="top">
5.1%
</td>
<td width="183" valign="top">
$335,000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2011
</td>
<td width="219" valign="top">
3.7%
</td>
<td width="183" valign="top">
$318,000
</td>
</tr>
</tbody></table>
Source: ABS
“It’s certainly speaks to the shift in both the market and consumer behaviour to see the reduction of revolving lines of credit in the home loan market,” says Dean Rushton, chief operating officer of mortgage broker Loan Market.
Rushton says their popularity has declined because borrowers are choosing cheaper products that offer redraw facilities or offset accounts should they need extra money. 
“These products are often free of any additional fees,” he says.
“Line-of-credit home loans for residential finance that were more in favour during the early to mid-2000s appear to be headed for the mortgage museum as a result of the GFC,” he says.
“However, the key point here is consumers want to have the one-two punch of having access to additional funds paid and the forced discipline of reducing their loan amount.”
Rushton says the key disadvantage for a revolving credit line is that interest rates were generally 10 to 20 basis points higher.
He says with offset and redraw features borrowers can access an amount up to the amortised rate of their mortgage.
“This type of transaction ensures that borrows do not fall behind on their original repayment schedule,” he says.
Line-of-credit mortgages work in the same way as an overdraft account – they provide an approved limit of borrowings that investors can use piecemeal or all at once, depending on their needs.
Interest is accrued on how much of the loan is used and unlike other mortgages it does not have a fixed loan term.
The products have been popular among investors because they allow them to tap into the equity already built up in their portfolios and use this to fund further property purchases or renovations.
Line-of-credit loans were introduced into Australia in the early 1990s but only started growing in popularity in 1999.
</body></html>

Investors shun line-of-credit loans in favour of cheaper alternatives

<html><body>
Administrators of Refund Home Loans have reportedly issued two draft contracts for the sale of the business, with a third contract expected to be drafted soon.
A letter from Refund Home Loans administrator SV Partners has been sent to franchisees advising them of the draft contracts, said industry website Australian Brokernews.
SV Partners is currently awaiting response on any amendments required to the contracts and has told creditors it is in their best interests for the negotiations to run their full course.
"Whilst the terms of all three offers are different, we believe that all three offers will provide creditors and franchisees with a better result than if the company is wound up and a sale does not occur," the letter says.
Refund Home Loans, which was started by Wayne Ormond, was placed in administration in October last year and <a href="https://www.propertyobserver.com.au/showcase/wayne-ormond-s-refund-home-loans-owes-creditors-millions-as-relations-with-franchisees-turn-sour/2011111652384" target="_blank">owes 119 creditors a combined $9.7 million.</a>
Creditors include Refund Home Loans franchisees, law firm DLA Piper, mortgage broking training provider Intellitrain and WA-based Ourimbah Holdings Pty Ltd.
A sale before Christmas had been targeted.
Before its collapse Refund was valued by Deloitte at between $40 million and $50 million, but the company struggled to obtain additional lines of funding after expanding into real estate services and financial planning and was forced into administration by its lender.
Ormond said in December that while he had managed to raise $1.5 million from two investors before the collapse, he could not raise enough money after the share market collapsed and the business environment turned sour.
</body></html>

Three offers on the table to buy Refund Home Loans

<html><body>
The ACCC is investigating whether it is in the best interest of consumers for some mortgage broking groups and lenders to make it compulsory for their brokers to be members of industry body the Mortgage and Finance Association of Australia (MFAA).
Two of the industry’s biggest franchise groups, Aussie Home Loans and Mortgage Choice, require their brokers to be members of the MFAA rather than accept membership of rival industry body, the Finance Brokers Association of Australia (FBAA).
Membership of the MFAA is not a requirement of the National Consumer Credit Protection Act, the legislation introduced in 2010 that requires brokers to be licensed and sets out standards for conduct and compliance.
In 2008, before the introduction of compulsory licensing, the ACCC granted permission to Mortgage Choice, Aussie and others to enforce the requirement (known as third-line notifications) that their brokers be members of the MFAA.
However, it is now seeking industry comment and has written to about 70 industry participants including brokers, aggregators, banks and ASIC as part of its review of this decision.
In the letter written by the ACCC to industry stakeholders it says it could revoke these notifications at any time "if it determines that the conduct to which the notification relates no longer delivers a net benefit".
The FBAA claims to be an industry body run by brokers for brokers and says on its website that “all but one elected executive positions are held by practising finance brokers in their own right”.
It says enforcement of compulsory MFAA membership is anti-competitive.
“[These practices] restrict consumers’ ability to have the right of choice as to which broker they use and what lenders that broker is able to access,” said FBAA president Peter White in the organisation’s ­submission to the ACCC on the matter.
The MFAA has strong lender representation and has been accused in the past of having a strong leaning towards the major banks, counting the Commonwealth Bank and NAB as its “platinum industry partners”.
Mortgage Choice has said previously that it would defend its decision requiring compulsory membership. 
“While we appreciate MFAA membership is not a conditional requirement of NCCP, Mortgage Choice is committed to the MFAA and strongly believes in the need for an independent industry association,” the franchise group said last year.
A spokesperson told Property Observer today it was "waiting to hear from the ACCC regarding their decision".
 
</body></html>

ACCC reviewing compulsory mortgage broker industry body membership

<html><body>
I’m often asked where “effective lives” come from, and the short answer is the Commissioner of Taxation. The long answer is a lot more complicated than that.
For those uninitiated in how depreciation rates are calculated for plant and equipment assets, the effective life is important because it drives the depreciation rate. Take, for example, the addition of carpet to a rental property. As at the time of writing, the depreciation rate under the diminishing method is 20%. This is calculated by dividing 200 by an effective life of 10. The commissioner is responsible for giving us the effective life of carpet at 10 years.
Effective lives are determined by the commissioner through estimating the period if can be used by any entity for a taxable purpose (within an investment property), assuming it is:
<ul>
<li> subject to wear and tear at a reasonable rate; and</li>
<li>maintained in good order and condition. </li>
</ul>
The commissioner determines the effective life based on historical information and future expectations. He or she specifically considers things such as those mentioned below.
1. The physical life of the asset
This relates to the period a depreciating asset can be used by an entity for the relevant purpose. The case may be put that as long as the asset physically exists and is not physically exhausted, then it is able to be used. In this case we’re looking at the outer limit of an assets life through historical evidence.
2. Engineering and manufacturers specifications
The estimate of an effective life will not always remain the same. Changes in technology and the quality of manufacture will result in an increase or decline in the usable life of an asset. Manufactures specs are a good guide to how long something will last. Warranty periods can also give an indication of the evolution of an assets effective life over time. If ceiling fans that have always had a five-year warranty but newer models are coming out with 10 years, there’s a case to the argument for an increase in the effective life.
 3. The way the asset is used by an industry
We touched previously on the past experience of users in the first point, but it’s interesting to note that not all industries use their assets in the same way. A perfect example exists in the different effective life of carpets. For example:
Residential property = 10 years
Commercial offices = 8 years
Accommodation providers = 7 years
Restaurants, pubs and the like = 5 years
Perhaps the most entertaining example is the difference between the effective life of furniture in a pub depending on whether it exists in a dining area (eight years) or a drinking area (a mere five years!) Clearly the furniture gets a much harder time where booze is involved!
In all seriousness, this is where property owners need to engage an experienced tax depreciation quantity surveyor, as knowing the difference between these effective lives can result in significant increases in tax deductions.
4. Levels of repairs and industry standards
Some plant and equipment items could in theory be repaired on an ongoing basis in order that they continue operating indefinitely. However, the legislation states that an asset only need be maintained in reasonably good order and condition. The term reasonably considers that it is not always reasonable to continue spending money on an asset where it would make more economic sense to dispose of it a purchase a new one.
5. Obsolescence, abandonment and scrapping
Plant and equipment assets can become obsolete either through technological or commercial reasons. For example, something may become commercially obsolete because the asset produces goods that are no longer required or current. Technological obsolescence is something we’re all familiar with. Anyone with a mobile phone understands that over time tools become available that perform the same tasks faster, more efficiently, and with more relevance to the greater marketplace. However. an asset’s life does not necessarily end because something newer has come along. Obsolescence is only considered when it prevents the continued use of the asset for the purpose it was designed.
Quantity surveyors are able to “scrap” assets that have reached the point of obsolescence, or the end of their productive life. Say for example you have owned a property for some time and are undertaking renovations. Assets like old blinds, carpets, cooktops and the like will have a residual value that can be written off, as the assets are being thrown away and replaced. Scrapping is a practice that I will elaborate upon further in another article.
6. Market values, economics and financial analysis
Lease periods can be a good indicator of the effective life of an asset as it is unlikely that an asset would be leased for a period longer than it is useful. In the same way, an effective life should be no shorter than the period it can be leased for. If a company leases a crane for 10 years, it clearly believes (and have historical evidence/manufacturers specifications) that demonstrate that it will last the whole of that time. This can be expanded into a financial analysis. If, for example, a large manufacturing plant and equipment item costs a certain amount to purchase, there must be an expectation that it will serve its purpose preparing or producing a certain quantity of products for a certain number of years.
In evaluating market values for the determination of effective lives, it can be seen that depreciating assets with a market value will decline in value over time. For example, a brand-new lawn mower might be $400 today, however in four years’ time its value will be closer to $200.
In analysing the decline in value over time, you can get a sense of the time it takes for the majority of its value to depreciate away.
In conclusion, there is a significant amount of analysis and empirical evidence that can be used to estimate the effective life of an asset, and I hope that this explanation of some of the tools at the commissioner’s disposal sheds some light on where an effective life comes from.
 It’s also important to remember that property owners are able to determine their own effective lives based on these factors, however it is best to contact a quantity surveyor or similarly qualified expert before doing so.
For more information you can search for the relevant taxation legislation on effective lives, such as TR 2011/2 (as at the time of writing), where you can find more information about the determination of effective lives. This legislation is normally updated for the beginning of each financial year.
Mike Mortlock is director of <a target="_blank" href="https://www.mcgqs.com.au/">MCG Quantity Surveyors.</a>
</body></html>

mmortlock-YX58RgDaQB

How to determine the effective life of a depreciating asset in your property

<html><body>
If you trawl through CBA's covered bond promo materials there is some fascinating new data that confirms points about the housing market I've made here in the past. It also serves to highlight the quite misleading dissembling of the housing '”desctructionistas” (i.e., the Steve Keens of the world). 
The first extract of interest compares the default rates of CBA's first-time buyers with its overall portfolio. You can see from the chart below that until 2010 first timers actually had lower default rates than your average borrower. Recall the hyperbole that folks like Keen were pushing during the GFC, when he claimed that the major banks lending to first timers, combined with the government's-first time buyers' boost, would result in a mass of delinquencies? Sorry, that was just another mistruth.
<img src="/images/stories/jan181.gif">
<img src="/images/stories/jan182.gif">
In some respects, the parsimony of first timers makes intuitive sense: they are typically investing a larger share of their net worth and income in buying a home and servicing the repayments than older and wealthier buyers. While this brings with it some extra risk (e.g., via lower equity), it also tells us that many first timers on lower incomes are committing higher shares of their labour earnings to keeping a roof over their heads than older buyers. For some borrowers, this creates a better alignment of interests. For others, it may heighten the risk they default. What we can see from CBA's data is that first-time buyers don't seem to have a fundamentally higher probability of default than other borrowers, although there has been convergence since 2010. 
There are other explanations for this, of course: as I've argued before, our banks are very cautious in setting their lending criteria. It is possible that CBA is even more rigorous in its credit assessment when looking at first timers versus the rest of the borrowing population, which in turn helps to reduce credit risk. 
The second CBA chart looks at the losses realised on CBA's home loan portfolio in comparison with all non-home loan assets between 1983 and 2011. It portrays a familiar story: historically, the real  risk for Australian banks lies not in lending to people buying homes (as many pundits claim), but rather in <a target="_blank" href="https://www.propertyobserver.com.au/commercial/commercial-not-residential-property-in-a-price-bubble-christopher-joye/2011092851714">business borrowings and commercial property </a>(especially the latter). 
This is why, quite rationally, APRA makes it more expensive for banks to lend to businesses – via higher “risk-weightings” – than to people acquiring established homes. In short, the historical risk of doing so has been demonstrably higher, so APRA makes you hold more capital against these loans. 
Interestingly, we now have two clear case studies – the 1991 recession and the 2007-09 GFC – where residential lending has proven its vastly superior resilience relative to business credits. 
This is also why some major bankers' calls for APRA to change the risk-weightings to favour business lending would appear to be either ignorant or subversive.
<img src="/images/stories/jan183.gif">
As a final aside, it is gratifying to see that my good friends over at the CBA are using our “house price-to-income ratio” analysis in their covered bond promo materials, although I note that this is incorrectly labelled: this data comes from Rismark, not RP Data (see below). 
A related observation would be that using the ABS's free-standing, established house price index, which ignores the circa 25% of all homes that are apartments, semi-detached, and terraces (especially in metro areas) to mark-to-market a covered bond portfolio, is hazardous, to say the least. It opens CBA up to the criticism that it is not properly assessing the collateral values of the circa 80% of all assets that are being used to secure the covered bond. For example, what happens if the higher priced detached house market is outperforming the apartment, semi and terrace sectors, and thereby giving artificially positive marks to the CBA portfolio? There is no need for these valuation errors since there are freely available indices that cover all property types – and which more accurately measure price changes (according to the RBA) – that are currently being used by CBA's competitors, and indeed promoted by CBA's economists. A very odd oversight.
<img src="/images/stories/jan184.gif">
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
</body></html>

chrisjoye-JYhJsTrNRC

Housing crash talk due to envisaged first-home delinquencies just hyperbole: Christopher Joye

<html><body>
After a year of keeping interest rates on hold, the Reserve Bank’s decision to cut the official cash rate not once, but twice at its final two meetings for 2011 is certainly a nice Christmas present for many property investors and home owners with a mortgage.  But a question that I seem to often get asked, as do many brokers in the Century 21 Home Loans network, surrounds how borrowers and potential buyers can ensure they are able to maximise the rate cut, beyond simply the immediate reduction passed on by their lender. 
In addressing this concern I would say that the relationship you have with your mortgage broker is probably more important than ever before, and now may present a good time to sit down with a professional to revisit your options.  A proficient mortgage professional will have a thorough understanding of a wide range of products currently available and should be able to advise you on the best course of action for your specific situation. 
Rate cuts – has your lender passed them on? 
With the recent spate of rate cuts and potentially more in the pipeline, first and foremost, it’s worth checking to ensure your lender is passing on the cuts or at to what extent.  Don’t be the borrower who is missing out on cuts. 
Reassess your mortgage 
With constantly varying lending criteria, fees and the like, mortgage holders may find that a combination of lowered interest rates and changing conditions have made alternative products more appropriate for their circumstances.  Your mortgage broker should be able to take you through a wide range of product options and clearly explain how the refinancing process works – ensuring you have the right information to make an informed mortgage decision. 
Increase the frequency of repayments
It is certainly tempting to capture monetary savings immediately by reducing your monthly repayments in line with the rate cuts, and for many people struggling with affordability concerns, this will be a necessity.  However, if possible, I would advise people to consider the option of maintaining current repayment levels and potentially even increasing the frequency of repayments (e.g. fortnightly rather than monthly).  This will most probably allow you to get your mortgage principal paid off more quickly, which will also likely reduce the interest you must pay over the long term. 
For many borrowers, alongside the prospect of making immediate savings, rate cuts can present an ideal opportunity to reassess your mortgage situation and identify how further savings can be made in the future.  Working with a professional mortgage broker who has a thorough understanding of your personal situation should position you to be able to make an informed decision and take full advantage of recent (and future potential) rate reductions.
Charles Tarbey is chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21.</a>
</body></html>

Rate cuts an opportunity to reassess your mortgage

<html><body>
Demand for fixed-rate home loans is spiking because the products have become much cheaper than variable-rate mortgages, according to UBS.
Traditionally borrowers take out a fixed-rate loan to give them certainty about future interest rate payments when interest rates are likely to rise, but according to UBS interest rate strategist Scott Haslem demand is being driven the low fixed rates on offer.
"It doesn't mean people think rates will rise and it doesn't even mean they don't expect them to fall again," he tells Business Day’s Peter Martin. 
“It's just that fixed rates have become better value – it's becoming cheaper to grab the bird in the hand." The most recent ABS housing finance data for November shows that <a target="_blank" href="/news">fixed-rate loan approvals reached 11.1%</a> (up from 10.6% in October) of all loans, their highest proportion since November 2008 at the height of the global financial crisis.
December data from mortgage brokers <a target="_blank" href="/news">Mortgage Choice</a> and <a target="_blank" href="/news">AFG</a> show an even greater uptake of fixed-rate borrowers (24% and 19% respectively), indicating that fixed-rate approvals will rise again when December ABS figures come out in February.
According to mortgage comparison RateCity.com.au, <a target="_blank" href="/news">about 70% of lenders cut their fixed rates last year</a> with the average three-year fixed rate falling to just 6.29% in December, and one-year fixed rates falling to 6.27%.
While the standard variable rate has also fallen mainly as a result of official RBA rate cuts in November and December, the average rate is 6.89%, more than half a percentage point higher than the average fixed rate.
</body></html>

Latest Finance Insights

NAB bring forward first RBA cut to February 2025

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Finance Insights

NAB bring forward first RBA cut to February 2025

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News