Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

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?

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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The fledgling recovery in the Gold Coast industrial market is at risk as Gold Coast City Council prepares to end its Construction Kickstart program.
That is the conclusion of a new CBRE ViewPoint, which shows that industrial land sales and new construction projects are already in decline as they anticipate the program ending.
<img src="/images/stories/2013/09/04/yatala_sept_5.png" width="470" height="307" alt="yatala_sept_5">
CBRE Associate Director David Corke describes the report’s findings as ‘’extremely worrying’’ and he urges the council to extend the stimulus program to further bolster the industrial market and encourage new investment.
“While the program has been a great success, we are already seeing a decrease in land sales and design and construct projects across all Gold Coast industrial precincts as the program draws to a close,” Corke says.
“The past five years have been an extremely difficult period for the industrial market and there are tough times ahead.
‘’It would be great to see the Kickstart initiative continuing to maintain the momentum generated and to give Gold Coast businesses the confidence to expand while encouraging interstate businesses to locate in South East Queensland.”
The Kickstart initiative introduced last September aimed to boost industrial development which had been in the doldrums since the onset of the global financial crisis.
Two short term stimulus measures aimed to foster development:
<ul>
<li>
A 100% discount for transport, recreation facilities and storm water infrastructure projects with substantial commencement between October 2012 and the end of April 2013, to be finished by the end of March 2015.
</li>
</ul>
<ul>
<li>
A 50% discount for projects with substantial commencement between March and the end of September this year with completion by the end of March 2015.
</li>
</ul>
The timeframe of the 100% discount was extended by a month after poor weather at the start of this year.
Figures from Gold Coast City Council highlight a significant boost in activity during stage one of the program with 248 development applications approved and 170 projects starting by the deadline.
However, with phase 2 about to end, Corke says there are signs activity is declining, particularly in the Yatala Enterprise Area – the biggest industrial precinct on the Gold Coast.
“While receivers moved in on numerous large Yatala land holdings in the aftermath of the GFC, this market has now turned the corner,” Corke says.
“National and international companies are now moving into the area on a large scale, perceiving real benefit in locating midway between the Brisbane and Surfers Paradise/ Broadbeach CBD’s on the M1 Pacific Highway. However, this pick-up in activity could come under threat at the conclusion of the stimulus program.”
CBRE’s ViewPoint shows that 119 serviced industrial lots were sold in the Yatala Enterprise Area between 2007-2012.
<img height="307" width="470" src="/images/stories/2013/08/yatala_aug_26.png" alt="yatala_aug_26">
More than 50 sales were transacted in 2007, over about 25 hectares, with the average sale price $310 per square metre.
However, activity dropped to just five sales in 2010 and seven sales in 2011 – equating to just 4.2 hectares in total. The average value dropped to a low of $202 per square metres – about 35% below the 2007 peak.
The Construction Kickstart initiative helped drive 11 sales of serviced industrial land in 2012. While this is still modest, Corke says the area of land sold - 9.3 hectares - was the most since 2008. The average price recovered to $260 per square metres – the highest level since 2007.
That momentum continued into this year and CBRE has identified almost 80,000 square metres of likely development completions, including Caterpillar’s 59,000 square metre distribution centre almost ready after receiving a $500,000 fee discount under the Kickstart initiative.
Other projects to benefit include:
<ul>
<li>
Geofrabics completed 8500 square metre facility at 69 Motorway Circuit
</li>
<li>
Tradetools 4000 square metre development under way at 77 Motorway Circuit
</li>
<li>
Marbletrend’s 3700 square metre facility in the Access Business Park, and
</li>
<li>
Uni-Quip Australia with a 1200 square metre facility at 4 Binary Street,
</li>
</ul>
A further 60,000 square metres of new supply has been DA approved for mooted completion by the end of next year.
“The savings generated by Construction Kickstart have proved to be a key factor in the financial viability of many recent projects,” Corke says.
“This has encouraged new businesses into the Gold Coast market and given existing operations the confidence to expand. There would be clear benefits if the program was to be extended and we would urge the Council to reconsider the end-date of phase 2 to help further stimulate the Gold Coast market and encourage new investment into South East Queensland.”
Yatala precinct serviced industrial land sales: 2007-2012
Source: CBRE
The fledgling recovery in the Gold Coast industrial market is at risk as Gold Coast City Council prepares to end its Construction Kickstart program.
That is the conclusion of a new CBRE ViewPoint, which shows that industrial land sales and new construction projects are already in decline as they anticipate the program ending.
CBRE Associate Director David Corke describes the report’s findings as ‘’extremely worrying’’ and he urges the council to extend the stimulus program to further bolster the industrial market and encourage new investment.
“While the program has been a great success, we are already seeing a decrease in land sales and design and construct projects across all Gold Coast industrial precincts as the program draws to a close,” Corke says.
“The past five years have been an extremely difficult period for the industrial market and there are tough times ahead.
‘’It would be great to see the Kickstart initiative continuing to maintain the momentum generated and to give Gold Coast businesses the confidence to expand while encouraging interstate businesses to locate in South East Queensland.”
The Kickstart initiative introduced last September aimed to boost industrial development which had been in the doldrums since the onset of the Global Financial Crisis.
Two short term stimulus measures aimed to foster development:
<ul>
<li>
A 100% discount for transport, recreation facilities and storm water infrastructure projects with substantial commencement between October 2012 and the end of April 2013, to be finished by the end of March 2015.
</li>
</ul>
<ul>
<li>
A 50% discount for projects with substantial commencement between March and the end of September this year with completion by the end of March 2015.
</li>
</ul>
The timeframe of the 100% discount was extended by a month after poor weather at the start of this year.
Figures from Gold Coast City Council highlight a significant boost in activity during stage one of the program with 248 development applications approved and 170 projects starting by the deadline.
However, with phase 2 about to end, Corke says there are signs activity is declining, particularly in the Yatala Enterprise Area – the biggest industrial precinct on the Gold Coast.
“While receivers moved in on numerous large Yatala land holdings in the aftermath of the GFC, this market has now turned the corner,” Corke says.
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staylor-63KgDrKwoY

Gold Coast Council’s Construction Kickstart program recovery is at risk 

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The Sydney weekend auction market has 404 offerings this weekend - well up on last weekend’s 331 and the 308 auctioned on the same weekend last year.
Excepting holiday weekends, the lowest winter weekend this year was 280 auctions on a Saturday in early July.
The upper north real estate market tops the regions at 73 listings, according to Australian Property Monitors.
The normal Saturday hive of activity, the inner west has 66 auctions followed by Sydney’s south with 36, the west with 34 and the city and east with 33 auctions.
Blacktown in Sydney's west and Balmain in the inner west both have six auctions followed by Ryde, Leichhardt, Marrickville and Bella Vista all with five offerings.
Pre-auction sales continue including landscaper William Dangar's house at Bondi Beach which sold through the GoodyerDonnelley estate agency.
<a target="_blank" href="https://www.propertyobserver.com.au/residential/landscaper-will-dangar-secures-strong-bondi-beach-price-well-ahead-of-the-spring-season/2013080163821">William Dangar, one of Australia’s leading landscape designers, and his wife Julia</a>, were expecting to sell for $1.6 million plus and secured $1.7 million.
Seller activity Sydney rose sharply this July compared to July last year as vendors unsurprisingly decided to take advantage of the strongest winter housing market experienced on record.
Australian Property Monitors data showed a 75.9% July success rate - the highest July ever – and the second-highest ever recorded for any month, apart from April 2002 which was 78.3%, APM senior economist Andrew Wilson noted.
Including mid-week auctions the most popular region for auction listings in Sydney over July was the city and east with 315 followed by the inner west with 270 and the upper north shore with 206, according to APM's Dr Andrew Wilson.
He noted seller activity Sydney rose sharply this July compared to July last year as vendors "unsurprisingly" decided to take advantage of the strongest winter housing market experienced on record.
Sydney July auction listings were up 16.5% over the year to 1577 compared to last July’s 1344 listings.
The biggest rise in listings came from the south, the lower north, the inner west and the northern beaches suburban regions.
The south had an increase over July of last year of 48%, with the lower north up 34%, the inner west 30% and the northern beaches up 25%.
Dr Wilson noted seller activity continues to increase with auction listings up by 32% over the first two weeks of August compared to the same period last year.
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jchancellor-FAypfDUnLy

Spring in the step as Sydney winter weekend auction numbers move above 400 offerings

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Underutilised Commonwealth government land could make way for thousands of new homes, increasing property supply levels and improving housing affordability, according to a report by urban development peak body Urban Development Institute of Australia.
The report suggests that the Commonwealth government should undertake thorough regular audits of its land assets in order to effectively identify and determine surplus land spaces available for housing development.
“There are numerous examples of redundant or underutilised commonwealth land such as defence sites occupying prime city locations,” said UDIA national president Julie Katz.
“They’re often in older, established areas, and already have good access to transport, employment and community infrastructure such as schools and shops, making them perfect for infill development.
“Development of surplus sites could provide a rapid and cost effective way of bringing much needed new housing to market, improving affordability and supporting jobs in the process,” Katz said.
Currently, there are 16 properties listed on the <a href="https://www.finance.gov.au/property/lands-acquisition/register-surplus-commonwealth-land">Register of Surplus Commonwealth Land</a>. The Department of Finance and Deregulation advises that the register “is not a full list of surplus Commonwealth land holdings”. 
The UDIA has highlighted two sites that could potentially provide an additional 1000 homes in Queensland and 750 homes in South Australia.
The Bulimba Army Barracks at 167 Apollo Road measures around 23 hectares.
The UDIA’s policy officer Liam Foley told Property Observer the site has “the potential for a mixed use retail/residential precinct, which could yield over 1000 dwellings at 50+ dwellings per hectare.”
In addition, the Keswick Army Barracks in Unley measures around 12.5 hectares, with the potential to house 60 dwellings per hectare.
“The city of Unley have done considerable work on this site by preparing a mixed use scheme. They have discussed it with the Commonwealth and it was mooted for release at one stage, but there has been little recent activity,” Foley said.
According to the <a target="_blank" href="/news">latest RP Data report</a>, the median sale price for houses in Bulimba is $880,000, up 3.5% on last year. The average discount required to sell a house is 11%, while private treaty sales average 99 days on market. 
The median asking rent for Bulimba houses is $585 per week, while gross rental yield currently stands at 3.5%. 
The median sale price for units in Bulimba is $565,000, up 4% on last year. The average discount required to sell a unit is 6.7%, while private treaty sales average 122 days on market. 
The median asking rent for Bulimba units is $500 per week, while gross rental yield currently stands at 4.6%. 
According to the <a target="_blank" href="/news">latest RP Data report</a>, the median sale price for units in Keswick is $295,000, up 24.9% on last year. The average discount required to sell a unit is 6.5%, while private treaty sales average 93 days on market. 
The median asking rent for Keswick units is $245 per week, while gross rental yield currently stands at 4.3%.
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dleow-BGaNPbHWyK

Surplus Commonwealth Government land should be used for housing: UDIA

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The housing market is one of the bright spots in an economy that continues to perform "below trend" the RBA has said in its monthly monetary policy statement.
The economy is now expected to grow by 2.25% this year down 0.5 percentage points on an earlier May forecast. Growth is expected to pick up to 2.5% for the 2013/14 financial year.
The RBA reports a "slightly weaker" global economic outlook than a few months ago "reflecting, among other things, the assessment that growth in China is now unlikely to pick up much, if at all, in coming quarters" and that the Australian economy has performed "below trend over the first half of this year".
In addition, the RBA notes "softer conditions in the labour market", "softer growth in incomes" and "weak growth of consumption over recent months" as the Australian economy transitions away from mining investment to non-mining sectors.
But "in contrast", the RBA said that "conditions in the housing market continue to improve".
"Dwelling prices increased further in recent months and auction clearance rates remain high.
"This has been accompanied by an increase in housing loan approvals in response to low interest rates.
"These factors, along with strong population growth and the relatively low level of dwelling investment for some years now, point to a continued rise in dwelling investment in the period ahead.
"Indeed, residential building approvals, especially for detached housing, increased in the June quarter and it seems likely that this will continue," says the RBA.
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lschlesinger-FZcF9M3vE6

Housing market conditions improving: RBA

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While it could hardly be called “fast-tracked” the pace of signficant investor visas issued by the Department of Immigration appears to have picked up of late.
The department has now issued 10 so-called “golden ticket” visas which are available to wealthy offshore investors who are able to invest $5 million in compliant schemes including commonwealth and state bonds and managed investment schemes.
A spokesperson could not say where they have been issued but are likely to be in Victoria and NSW given the pattern of visa applications to date.
This is up from just two issued between the November 24 start of the SIV scheme and July this year – one to a Chinese toy manufacturer investing in Victorian state bonds and another to an Asian investor making compliant investments in Queensland.
Despite the issue of eight visas over the last month, the Department of Immigrations has more than 300 applications to assess and it could be months or even years before some are approved.
Between November 24 and June 30, the Department of Immigration has received 544 expressions of interest from offshore investors and has invited 409 investors to submit applications.
Of those invited to apply for the visa, 305 have lodged applications with NSW (138) and Victoria (129) getting the vast bulk of these followed by Queensland (24), WA (16) and three in South Australia.
In June, the Department of Immigration told Property Observer it would take between six to nine months to process applications under a "business as usual" scenario.
Direct property investment is not among the qualifying investments under the program, but indirect property investment is possible with the likes of property fund manager Centuria offering investment in its unlisted property trusts that are now compliant.
In addition, the wealthy individuals who qualify for visas are in the market for expensive prestige real estate in Sydney, Melbourne and Brisbane with reports that some are looking for waterfront homes in the $30 million plus price bracket.
In June Macquarie Bank launched a new investment fund specifically targeted at providing SIV-qualifying investment options.
Others to offer complying investments include financial services group IOOF.
Last month, the Financial Standard reported that fund manager Legg Mason was packaging its four Significant Investment Visa (SIV) complying funds as a ready-made solution for private wealth advice firms.
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Significant investor visa numbers finally hit double figures as fund managers ramp up compliant offerings

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The decision by the WA state government to increase the first-home owners grant to $10,000 for those who purchase a new home (with only $3,000 for existing homes) from September 15 brings it into line with the other state and territory governments as part of plans to boost the take-up of new homes as the population expands.
From September 1, the ACT government will replace the $7,000 first-home owner grant  with a $12,500 grant for new homes only.
For first-home buyers, these are the grant handouts available in their state and territory markets currently as well as what’s about to change in the coming months:
<div>
<div>
(Click on the state names for links to the relevant state revenue office pages).
<a href="https://www.osr.nsw.gov.au/benefits/first_home/" rel="nofollow" target="_blank">NSW</a>
The NSW state government offers a $15,000 grant for first-home owners who purchase or build a new home valued at up to $650,000 up until January 2016.
<a href="https://www.sro.vic.gov.au/sro/sronav.nsf/alltitle/First%20Home%20Owners?open" rel="nofollow" target="_blank">Victoria</a>
The Victorian government offers a $10,000 grant to build or purchase a new home under $750,000.
<a href="https://www.osr.qld.gov.au/first-home-owner-grant/index.shtml" rel="nofollow" target="_blank">Queensland</a>
The Queensland government offers a $15,000 great start grant for first-home buyers buying or building a new home valued under $750,000.
<a href="https://www.finance.wa.gov.au/cms/content.aspx?id=344" rel="nofollow" target="_blank">Western Australia</a>
The WA government currently offers the $7,000 first-home owner grant for both existing homes and new homes. A cap limits the total value of properties (i.e. total value of home and land) to $750,000 or less, or if the home is located north of the 26th parallel to $1,000,000 or less. From September 15 the firrst-home owners grant will increase to $10,000 for those who purchase a new home with only $3,000 for those who purchase an existing home.
<a href="https://www.revenuesa.sa.gov.au/fhog/index" rel="nofollow" target="_blank">South Australia</a>
The South Australian government offers a FHOG of $15,000 for new homes. For first home buyers buying an existing home there is a First Home Owner Grant (FHOG) of $5,000, which expires on June 30 2014.
<a href="https://www.revenue.act.gov.au/home_buyer_assistance" rel="nofollow" target="_blank">ACT</a>
The ACT government offers a $7,000 grant to first home buyers buying both existing and new homes capped at the total value of home and land of $750,000 or less. This expires on August 31. From September 1 first-home buyers in the ACT will receive $12,500 if they buy or build a new home or buy one that has been substantially renovated.
<a href="https://www.sro.tas.gov.au/fhog" rel="nofollow" target="_blank">Tasmania</a>
The Tasmanian government currently offers a one-off FHOG payment of up to $7,000. The grant is not means tested and there is no cap on the value an eligible home.
There is also a First Home Builder Boost (FHBB), a payment, in addition to the FHOG, of up to $8 000. It is available for eligible applicants, purchasing a newly built home or who are owner-builders between 1 January 2013 and 30 June 2014 and who meet the required time frames for commencement and completion of the house.
Both these grants will end on June 30, 2014.
From July 1 2014, Tasmanian first-home buyers who build or buy a new home (including off-the-plan) will be entitled to a $7,000 FHOG.
<a href="https://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/HomeOwnerIncentives/Pages/default%20220213.aspx" rel="nofollow" target="_blank">Northern Territory</a>
The Northern Territory offers a first-home owner grant for both new and established homes that remains ongoing.
FHOG is not means tested however, from 1 January 2010 eligibility ceases to apply if the consideration for, or the value of the home is more than the transaction eligibility threshold (see table below). This includes the unencumbered value of the land on which a home is to be built. The amount of the transaction eligibility threshold is determined based on the commencement date of the eligible transaction.
The commencement date of an eligible transaction is:
for a contract to purchase or construct a home, the date when the contract is made; or
for an owner builder, the date the laying of the foundations commenced.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="318">
Commencement date of eligible transaction?
</td>
<td valign="top">
Transaction eligibility threshold?
</td>
</tr>
<tr>
<td valign="top" width="318">
On or after 4 December 2012?
</td>
<td valign="top">
$600 000?
</td>
</tr>
<tr>
<td valign="top" width="318">
From 1 January 2010 - 3 December 2012?
</td>
<td valign="top">
$750 000?
</td>
</tr>
<tr>
<td valign="top" width="318">
Prior to 1 January 2010?
</td>
<td valign="top">
No threshold applied?
</td>
</tr>
</tbody></table>
The amount of the grant increased on 4 December 2012 in relation to eligible transactions that commenced on or after that date. From that date, the amount of the grant also varies depending on the type of transaction and location of the property.
If the commencement date of the eligible transaction is on or after 4 December 2012, the amount of the grant is the lesser of the consideration actually paid for the eligible transaction, or:
a) $12 000 if the home is an established home in the urban area;
b) otherwise - $25 000
If the commencement date of the eligible transaction is before 4 December 2012, the amount of the grant is the lesser of the following:
a) the amount of consideration actually paid for the eligible transaction;
b) $7000
An established home is one that has been previously sold or occupied, and is lawfully fit for occupation.
An urban area means all land located wholly within the boundaries of:
<ul>
<li>the Darwin, Palmerston or Litchfield municipalities;</li>
<li>Wagait Shire;</li>
<li>the Darwin Waterfront Precinct;</li>
<li>the “prescribed area” for the Darwin Rates Act.</li>
<li>any other area prescribed by regulation.</li>
</ul>
Carrots photo courtesy of Rahims/flickr.
<ul></ul>
</div>
</div>
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The new house and apartment buyers' guide - state-by-state first-home owner grant availability

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Western Australia has followed the example of the other states by incentivising first-home buyers if they choose to buy a new home over an established home.
In the state budget released yesterday, treasurer Troy Buswell announced that from September 15 FHBs that purchase new homes will be eligible for a $10,000 first-home owner grant while those who purchase an existing home will only get $3,000.
This means that first-home buyers wanting to purchase an existing home have just over a month to access the existing $7,000 grant.
At the same time, those FHBs considering buying a new home may delay their purchase until after September 15 to take advantage of the bigger incentive.
NSW, Queensland and South Australia offer a $15,000 grant for FHBs building or buying a new home and Victoria offers $10,000 for those who buy or build a new home.
From September 1 first-home buyers in the ACT will receive $12,500 if they buy or build a new home or buy one that has been substantially renovated.
From July 1 2014 Tasmania will offer the $7,000 first-home owners grant for new home purchases only.
The Northern Territory offers a first-home owner grant for both new and established homes providing $12 000 if the home is an established home in the urban area or $25,000 everywhere else. 
Also as part of WA’s Housing Supply Package - designed to increase the supply of housing in a state, which has the fastest growing population - the state government intends to expand the number of affordable rental properties by committing an additional $47.8million for an extra 1,000 homes under the National Rental Affordability Scheme (NRAS).
It will also aim to streamline residential planning and building approvals processes to ensure the supply of new housing is not held up in red tape.
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WA bumps up first-home owner grant to $10,000 for new homes

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As Australian housing prices have boomed over the last decade and a half, there has been much discussion over whether a bubble exists in the residential property market.
More recently, <a target="_blank" href="https://www.afr.com/p/national/rba_risks_house_price_bubble_msTaCxp5WxDtcy0xPJz2LM">the concern is</a> the record-low interest rate of 2.5% may cause a housing bubble.
Conspicuously absent in the debate over the housing bubble within the mass media is a clear definition of what constitutes a bubble. This is not only the fault of the media, as a bubble is often vaguely defined within the academic literature, usually on the basis of “irrational exuberance” or “animal spirits” or chasing capital gains, rather than in terms of specific and measurable metrics.
An outside observer may find this difficult to believe, particularly given the history of regular booms and busts in the land and share markets, as recent events in the US, Ireland and Spain have shown. Mainstream economists typically claim bubbles can only be recognised in hindsight, but not identified beforehand.
Without a concrete definition, it is impossible to find something because one does not know what to look for. It is similar to telling a blind person to choose the blue pill instead of the red. Accordingly, how can a reasonable definition of a bubble be determined?
One economist did provide a straightforward definition of an asset bubble: <a target="_blank" href="https://en.wikipedia.org/wiki/Hyman_Minsky">Hyman Minsky</a>. He belonged to the post-Keynesian school of economic thought, a heterodox school with an alternative theory of how financial markets and the banking system interacts with assets, typically shares and real estate.
One of the centrepieces of Minsky’s work is the “Financial Instability Hypothesis” (FIH) which argues financial markets are intrinsically chaotic and inefficient, eventually sowing the seeds of their own destruction. According to the FIH, a bubble is defined on the basis of how an asset class is financed.
This is important, as it allows us to assess whether overvaluation exists within any particular asset class, or in this case, real estate. According to Minsky, the <a target="_blank" href="https://www.levyinstitute.org/pubs/wp74.pdf">state of financing</a> can be described as either hedge, speculative, or Ponzi.
With hedge financing, asset income flows are sufficient to pay down both principal and interest on the debt used to finance the asset purchase, and prices are based upon fundamental or intrinsic value. The second state is speculative finance, where income flows cover only interest repayments but not principal, requiring debt to be continually rolled over from the current time period to the next.
The terminal phase is that of Ponzi finance, as income flows cover neither principal nor interest repayments. This leaves owners completely reliant upon escalating asset values to realise substantial capital gains upon sale to meet the cost of debt and expenses. In the case of real estate, if property investors can’t profit from rental income, then realising capital gains becomes the only avenue.
As investors speculate, the debt used for asset purchases inevitably rises as both the cause and response to price increases, creating a positive feedback loop between prices and debt. Put simply, for the residential property market to meet Minsky’s definition of a bubble, three conditions must be met: increases in real (inflation-adjusted) housing prices and mortgage debt, along with persistent rental income losses.
There is evidence to show all three conditions exist. From the trough in 1996 to the apparent peak in 2010, real housing prices increased nationwide by 123%, the mortgage debt to GDP ratio rose from 35% to 87% over the same period, and from 2001 onwards, aggregate rental income could not cover running expenses and interest repayments on aggregate, let alone principal.
(It’s worth pointing out that Australia’s <a target="_blank" href="https://theconversation.com/its-time-to-abolish-negative-gearing-9879">negative gearing policy</a> amplifies aggregate rental income losses by providing an incentive for investors to run their properties at a loss while expecting capital gains. Investors should not be profiting from capital gains but long-term rental income. While it can be argued negative gearing is an unjustified subsidy (tax expenditure), it should be banned on the basis that it amplifies financial instability through helping to create asset bubbles.)
<figure></figure><figure></figure><figure></figure><figure></figure><a href="https://c479107.ssl.cf2.rackcdn.com/files/28884/area14mp/rnvbfzwt-1375925545.jpg"><img width="470" src="https://c479107.ssl.cf2.rackcdn.com/files/28884/width668/rnvbfzwt-1375925545.jpg"></a> <figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><a href="https://c479107.ssl.cf2.rackcdn.com/files/28885/area14mp/b8v6d5z8-1375925545.jpg"><img width="470" src="https://c479107.ssl.cf2.rackcdn.com/files/28885/width668/b8v6d5z8-1375925545.jpg"></a> <figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><a href="https://c479107.ssl.cf2.rackcdn.com/files/28886/area14mp/r9t9nmtq-1375925547.jpg"><img width="470" src="https://c479107.ssl.cf2.rackcdn.com/files/28886/width668/r9t9nmtq-1375925547.jpg"></a> <figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figure></figure><figure></figure><figure></figure><figure></figure> 
<hr class="system-pagebreak">
Minsky’s FIH has some predictive power as the data shows all three conditions were met during the late 1980s, as a small residential bubble arose on the back of a colossal commercial real estate bubble. Real housing prices increased by 39% between 1987 and the peak in 1989, before falling 8% by 1991. The mortgage debt to GDP ratio also increased during this period, and aggregate rental income was negative from 1989 to 1992.
There are eight measures of <a href="https://www.macrobusiness.com.au/2013/02/the-history-of-australian-property-values/" target="_blank">property valuation</a> that show a substantial increase since 1996, collectively peaking in 2010. They are: nominal prices to inflation, mortgage debt to GDP ratio, rental income flows, gross yields (or P/E ratio), price to income ratio, Kavanagh-Putland Index (aggregate property sales to GDP ratio), aggregate land values to GDP ratio, and housing stock value to GDP ratio.
There are two primary reasons why definitions of bubbles aren’t used in the mass media and academia. Self-interest is the obvious motivation; Australia’s residential property market has a <a href="https://www.macrobusiness.com.au/2013/05/the-history-of-australian-property-values-part-2/" target="_blank">bubble in prices</a>, creating around $2 trillion in paper (phantom) wealth. This has made the finance, insurance and real estate (FIRE) sector fabulously wealthy, and government at all levels have benefited from rising property taxes.
Mainstream economists don’t like the idea of bubbles because the highly unrealistic theory they teach to promote policies of privatisation, deregulation and liberalisation have resulted in the largest asset bubbles in history, in direct conflict of the allegedly efficient outcomes markets supposedly create. When theory and the real world conflict in economics departments, data are dismissed because it doesn’t fit the models.
The doctrines of conventional economic theory – such as equilibrium, rational expectations and optimising behaviour – <a href="https://www.amazon.com/Debunking-Economics-Revised-Expanded-Dethroned/dp/1848139926/ref=sr_1_1?ie=UTF8&amp;qid=1375873369&amp;sr=8-1&amp;keywords=debunking+economics" target="_blank">are empirically false</a>. Economists’ models of markets are like that of an astronomer who creates an incorrect model of the solar system by excluding the sun and moons. Given the deleterious state of economy theory, it should come as little surprise the economics profession cannot identify colossal asset bubbles right in front of them.
Elite Harvard-MIT-Princeton economists in the US not only missed the obvious dot-com and housing bubbles, but put a significant amount of effort into denying these bubbles existed. On this basis, there is little hope for Australian economists, especially for those who work for government and the FIRE sector.
In the debate over the housing market, it is important for those who have vested and conflicts of interest to avoid using definitions of an asset bubble so as to create confusion regarding this matter. Further, it is difficult to claim the presently low interest rates could risk causing a housing bubble when it is readily apparent one has existed since 2001.
Philip Soos is a research Masters candidate at the School of Management and Marketing, Faculty of Business and Law at <a target="_blank" href="https://www.deakin.edu.au/">Deakin University</a>, and is a researcher for the <a target="_blank" href="https://blog.lvrg.org.au/">Land Values Research Group</a>, Melbourne.
This article was originally published at <a href="https://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/property-bubble-thats-the-theory-anyway-16814">original article</a>.
 
 
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psoos-uR5EGb6SbQ

Australia's phantom property wealth: why the mass media, academia and economists don't get the residential price bubble

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What’s the right investment strategy for this stage of the property cycle? Michael Yardney    
Great news for those interested in property investment and another blow for the property bears (yes they’re still out there waiting for the sky to fall) – capital city dwelling values rose a further 1.6 % in July, according to <a href="https://www.rpdata.com/research/housing_values_continue_to_move_higher_in_july">RPData</a>.  
However, despite the fact that residential home values have made a cumulative recovery of 6.5% since the market bottomed out in May last year, this property cycle is likely to be different to the past – one where capital growth is likely to be lower.  
Interestingly, most commentators agree that we are unlikely to see the type of housing boom that sparked a massive rise in personal wealth last decade.  
This has many investors asking: what’s the right investment strategy this time round?
Firstly it’s important to understand property investors make their money in four ways:
<ol>
<li>
Capital growth – the increase in value of their properties
</li>
<li>
Rental returns – which provide cash flow
</li>
<li>
Tax benefits – such as depreciation allowances and negative gearing
</li>
<li>
Forced appreciation – this is where an investor ‘manufactures’ capital growth through renovations or development.
</li>
</ol>
  Of course, strategic investors benefit from a combination of all of these.  
Despite the lower predictions for this property cycle, you can still get capital growth.  
RPData recently reported the following capital growth for our capital cities over the last 12 months:
<ul>
<li>
Perth 8.3%
</li>
<li>
Sydney 6.5%
</li>
<li>
Melbourne 4.3%
</li>
<li>
Hobart 2%
</li>
<li>
Canberra 1.4%
</li>
<li>
Adelaide 1.1%
</li>
<li>
Brisbane 0.8%
</li>
<li>
Darwin -0.9%
</li>
</ul>
 But these figures don’t tell the full story.  
In all states our property markets are very fragmented and there are some pockets that have significantly outperformed and many have underperformed the averages.  
If you dig deeper you’ll find that in most states there is a group of suburbs that exhibited double digit capital growth last year. Within those areas there will be some properties that grow strongly in value while others perform poorly.  
 
<hr class="system-pagebreak">
Where have  the properties that outperform the average been?  
In many cases these were areas going through gentrification; suburbs where a new demographic was moving in spending large amounts of money on renovating or extending their homes.  
You’ll also find stronger capital growth in suburbs where growth in wages outpaces the average, meaning the locals can afford to pay more for their properties.
A positive cash flow property is where the rental income received covers all of the property’s expenses (including interest) leaving money in your pocket each month.  
In general properties with higher capital growth have lower rental returns.  
This means you can’t find cash flow positive properties in the higher growth locations of our capital cities.  
You must look to regional areas or mining towns where buyers require a higher rental yield (cash flow) to make up for the lack of capital growth.  
Buyers with lower loan to value ratios, such as those who put more money in the deal, may also experience positive gearing.  
The problem is that they miss out on the benefit of leverage.  
Which strategy is better – capital growth or positive cash flow?  
There’s no simple answer. Clearly if both strategies exist there is a place for both of them.  
I see more beginner investor going for cash flow positive properties.  
On the other hand I tend to see more successful investors, those who have built a substantial asset base, grow their portfolio through leveraging off the capital growth of their investments.  
Obviously property investment should be part of a wealth creation strategy, not just a purchase in isolation.  
So if you are considering property investment to build an asset base to one day replace the salary from your day job, then I would invest for capital growth every time.  
The few dollars a week your positive cash flow properties might bring in immediately is not really going to make much difference to your lifestyle or your ability to acquire and service other, more desirable properties for your portfolio.  
Interesting, best-selling author Steve McKnight, renowned for writing a book on how he built a very substantial portfolio of positive cash flow properties, explains in his latest book, From 0 to financial freedom- how to do it today, that the strategy of buying cheap cash flow positive properties no longer works today.  
The problem is that you can’t save your way to wealth – especially on the measly after tax positive cash flow you can get in today’s property market.  
And when interest rates increase – as they will again some day - a property that is cash flow positive today may be cash flow negative tomorrow.  
Think about, real wealth is not derived from income.  
It is achieved through long-term capital appreciation and the ability to refinance to buy further properties.  
 
 
<hr class="system-pagebreak">
 
If you seek a short-term fix with cash flow positive properties, you’ll struggle to grow a future cash machine from your property investments.  
But here’s the trick, you can’t turn a cash flow positive property into a high growth property because of its geographical location.  
But you can achieve both high returns (cash flow) and capital growth by renovating or developing high growth properties.  
This will bring you a higher rent and extra depreciation allowances, which convert high growth, relatively low cash flow properties into high growth, strong cash flow properties.  
This means you can get the best of both worlds.  
Of course investing in negatively geared, high growth property means you have to cover the cash flow shortfall each month.  
One way of doing this is to set up the correct loan structure.  
A line of credit or offset account could be used to supplement the rental and to pay the interest on the investment loan and property expenses.  
This buys an investor time.  
The line of credit is often set up to cover the shortfall for three or more years until the property’s value grows sufficiently to refinance the loan out of the extra equity.  
To use this investment strategy, correct asset selection is critical because to make it worthwhile you need the property’s value to increase significantly more than your outstanding loan balance increases.  
This means you need to be investing in high quality assets so that you can maximise the chances of enjoying strong capital growth.  
This strategy is not without risks and the four main one are:
<ol>
<li>
Poor capital growth – that’s why correct asset selection is so important.
</li>
<li>
Interest rate increases – which can be addressed by fixing interest rates on some or all of your debt.
</li>
<li>
Poor rental growth – which highlights the importance of owning properties in continuous strong demand by a wide demographic of tenants.
</li>
<li>
Lack of financial discipline – never use your financial buffers for uses other than covering your property related expenses.
</li>
</ol>
 I can understand why beginner investors would be keen to buy a property with positive cash flow. They tend to be cheaper so it is easier to purchase and support this type of property.  
While they may give you short-term income, these properties will never allow you to accumulate the equity necessary to become truly wealthy.  
And while the rent may seem relatively high initially, it is the ongoing capital growth of your property that will underpin its long-term rental income. This means that if you buy in low capital growth areas, your rents won’t rise as much as rents in high growth areas.  
And over the long-term the value of capital gains other investors will enjoy will blow comparable cashflow returns out of the water.  
Remember, as a property investor your focus should be on safely building your asset base so you can eventually develop the passive income from your assets that will allow you to enjoy the financial freedom you desire.  
Michael Yardney is a director of <a href="https://www.metropole.com.au/" rel="nofollow">Metropole Property Strategists</a>.
 
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myardney-DFoGhGbSJX

Finding suburbs with a new demographic: What's the right investment strategy for this property cycle?

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This week I’ve been thinking about legacies and what we can do to leave a meaningful one.
Sadly we had another death in our family, with the sudden passing of my beautiful mother-in-law Sue last month and after my dad dying earlier in the year, I’ve been reeling a little.
During the lovely tribute my husband prepared for his mum, I found myself reflecting about really how little time we have (she was only 70) and sometimes when a death is sudden, it jolts you into action.
The questions I asked myself were: “Am I living the best life possible? What do I want to achieve in my life? What will I leave behind for my kids? or what will I be remembered for?”  
This bought me to ask: "What will be my legacy when it’s my time to go?”
A legacy is something that is left behind after a person has passed.
Commonly people think of bequeathing money or property or other things of value.  To me, a legacy is more about sharing what we have learned, not just what we have earned, and bequeathing values over valuables. I think that material wealth is only a small fraction of a legacy.
Until now, I didn’t realise it but I have been working on material legacies.
Coming from a working class family, my parents taught me how to make money from hard work.  I leant you’d be payed a good salary for a good days work.
I wanted to break the earn from working cycle for my family so that our income could come from investments and managing our mone, and from the business. 
I also do not want to rely on the government to dictate my retirement.
My aim was to set my family up for financial freedom and retire with money.
But upon reflection, whilst sitting in Sue’s funeral service, I realised that there is much more to life.
Yes we need money to live and support our families but what is beyond that? 
You can achieve a material or monetary legacy quite easily if you focus on it. Within a space of 10 years I have done that; built a property portfolio and a successful business. It wasn’t easy but I feel really pleased that all the hard work is paying off now.
But more importantly, I realised that the real value is in what I’ve learnt in the last 10 years. 
This may be of use to others and I hope particularly to my kids.  I hope that what they learn from my life will enhance their life.  Maybe they won’t see the same value I do to be financially independent?  I can’t do much about how they perceive life and their wants and needs. All I can do is live my own life to the fullest on my own terms. They’ll take out from it what they need.
Just what is it that I want my sons and step daughter to be mussing over when they are sitting in my funeral service?
I hope my life’s message will be that you can do anything in this wonderful world of ours, just be persistent and focussed and follow your dreams.
So what’s your legacy going to be?
I love this quote:
Go confidently in the direction of your dreams. Live the life you have imagined”
- Henry David Thoreau
Jo Chivers is director of <a style="font-size: 14px;" title="Property Bloom" href="https://www.propertybloom.com.au/" rel="nofollow" target="_blank">Property Bloom</a>, which manages property development. 
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