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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Fairfax Media are reporting Julia Gillard is set to return to Adelaide to be closer to her ageing mother, Moira, and her sister, Alison.
She is currently living in her Altona house in the south-western Melbourne electorate of Lalor after she moved out of The Lodge after being deposed from the top job.
Ms Gillard declined to provide any comment for the Fairfax article.
But Fairfax's chief political correspondent <a href="https://twitter.com/search/users?q=mark%20kenny" target="_blank">Mark Kenny</a>, who hasn't tweeted since he joined Fairfax from The Adelaide Advertiser, wrote he understood the interstate shift was not imminent, with Julia Gillard and partner Tim Mathieson planning to move after the election.
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<a style="color: #999999; text-decoration: none;" data-user-id="42562661" href="https://twitter.com/theagebreaking" class="account-group js-account-group js-action-profile js-user-profile-link js-nav"> </a><a href="https://twitter.com/theagebreaking" target="_blank" style="font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; font-size: 0.8em;"><img alt="tweetofthedayjuly18one" height="61" width="470" src="/images/stories/2013/07/tweetofthedayjuly18one.jpg"></a>
</div>
Its speculated Julia Gillard with take up an international role, as well as write a book for Penguin Publishing.
Her Altona house is a three-bedroom brick-and-tile home which cost $140,000 in 1998 - slightly less than Altona's then $155,000 median price.
RP Data puts <a target="_blank" href="/news">Altona's median</a> currently at $545,000, thereby suggesting Julia Gillard's home likely to be sitting just below, unless she bought very well or undertook huge improvements.
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po-LsXgBTHBmX

Julia Gillard set to move back to Adelaide, but not leave Altona imminently 

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The growing number of people choosing to downsize and reside in inner city apartments is a well-established trend that has been happening in international cities for quite some time.
In Sydney this trend has taken a couple of decades to surface, with large-scale building of major high-rise developments in the inner city only starting in the early 1990s.
In recent years, however, our most inner city area – spanning from The Rocks – Woolloomooloo has undergone a cosmopolitan makeover and new property developments have attracted an influx of diverse, wealthier residents who are embracing the perks of city living.
Most of the time these new developments offer spectacular views, have 5-star facilities that require no maintenance, and are located just minutes from work, fantastic restaurants, great shopping, entertainment, numerous transport options and everything else Sydney has to offer.
The shift toward apartment living in Australia, particularly in the capital cities, has been highlighted in recent ABS numbers.
Furthermore, stand-alone housing approvals are at recessionary levels, while apartment approvals are at an all-time high.
There are many factors contributing to the rise in inner city living.
A growing number of Sydney-siders are shying away from the great Aussie dream of a home with a backyard and a pool, in favour of an inner city pad.
Empty nesters are growing tired of maintaining large homes once their children have moved out, and many people are abandoning the long daily commute to be close to work, and adore the vitality, convenience and cosmopolitan vibe that the inner city offers.
This property trend is likely to continue as the population ages and we are already experiencing a surge in demand for 1-2 bedroom apartments in convenient locations.
With this amazing city maturing every year, conditions are ripe with rental demand being driven up by these affluent, corporate executives attracted to the lifestyle that accompaniesinner city apartment living.
I predict median property prices in Sydney will rise by around 2-3% in 2013; and over the next few years, I expect our fabulous city to become more and more like other mature international cities including London and New York where apartment living continues to thrive.
Carlie Ziri is the director of <a target="_blank" href="https://www.lifestylepropertyagency.com/" rel="nofollow">Lifestyle Property Agency.</a>
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Median property prices in Sydney will rise by around 2% to 3% in 2013: Carlie Ziri

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After months of uncertainty the 2012/2013 financial year ended on a high note.

Low interest rates, a shortage of stock and an abundance of buyers have seen property prices rising across Sydney. Upgraders as well as investors are currently keen buyers at auctions driving clearance rates well above 70 per cent.
We have seen a definite increase in interest in the market below $2 million whilst the upper end has also shown some surges of improvement.
In the Eastern suburbs this was helped by investors from Asia, in particular China.
These buyers have shown interest in prestige property due to the more affordable Australian dollar and the new significant investor visa, which fast-tracks migrant visas for foreigners who invest more than $5 million in approved investments.
But let’s take a minute and look back at our last review.
At the beginning of 2012/2013 we were cautious about the year ahead, in particular the growth and turnover of property in our market.
This caution seems to have been well founded, when we look at the big picture that the year represented.
We were surprised to experience a remarkable and steady increase in foreign buyers that was surely influenced positively by the drop in the Australian dollar.
An Australian dollar below parity with the US dollar has now become a reality. This is definitely having a positive impact on sales, particularly at the top end of the market.
At this top end of the market Ray White Double Bay sold four properties to Asian families in May, with two of them purchasing without actually having seen the house.
These buyers relied on our 90-second property videos that can be viewed online and only sent either family members or local lawyers to inspect and act on their behalf.
The most expensive of those sales was 30 Victoria Road, Bellevue Hill, which sold under the hammer for $7,300,000.
But despite an absence at the site these buyers still executed full due-diligence with building inspections and valuations playing a very strong part in the process.
Overall the estimates for the new financial year are promising: property experts predict a rise of more than 20 per cent in revenue from residential sales for the next financial year totalling almost $5 billion.  Buyers have more confidence in making a decision on their next home or investment due to
<ul>
<li>the steady growth in rents</li>
<li>less volatile movements in the market in comparison to the stock market</li>
</ul>
And there is no doubt that there is a lot of money sitting on the side line at the moment and people are just pondering which way to turn…
At Ray White Double Bay we believe that the coming 6 months and in particular the period leading up to the election will be a premier time to sell. A potential new government will bring new aspects and changes in taxes and costs and as we say in real estate: “Many will sell on rumour".
Michael Finger is the selling principle for <a href="https://www.raywhite.com/michael-finger/real-estate-agent/michael.finger/" target="_blank">Ray White Double Bay</a>.
 
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Sydney eastern suburb property ended the financial year on a high: Michael Finger 

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I was surprised to learn that reputable buyers agents are still promoting the idea that property prices will appreciate at 10% per annum at their seminars and home-buying shows.
We’ve come to expect nothing less from property ‘clubs’, of course, as they tend to be somewhat evangelical in their approach, promoting property as a magical risk-free asset class which always goes up 10% per annum.
And besides, it seems that sometimes people almost want to hear that prices will boom interminably – they find the phrase “property always goes up” soothing to the ears.
The tired old phrase “property goes up 10% per annum” was spawned from the days when inflation was very high, and the cost of almost everything was going up rapidly.
And then a combination of factors including plummeting interest rates, deregulation of lending standards and a boom in the number of two income households allowed rapid price growth to continue through the 1990s and beyond.
Over the past decade, while some parts of Australia have forged ahead with very rapid price growth, others have by and large tracked the growth in household incomes.
If we take a look at the today’s economy, we find that:
-Inflation is currently tracking at 2.5%, which is comfortably in the middle of the target 2-3% range;
-Interest rates are sitting at 2.75%, which is way lower than the double digit rates which were seen two decades ago – so these cannot fall much further; and
-wages are growing at 3.2%.
The speed limit for the price growth of property is ultimately our ability to pay for it. So unless you have an IQ which is diminishing at 10% per annum, you can see quite clearly that long-term property price growth of 10% per annum will not eventuate.
 
<hr class="system-pagebreak">
Let’s be generous and say that household income growth in the future continues to grow in perpetuity at 4% per annum.
And let’s take the example of a capital city suburb where a dwelling costs $500,000 and household incomes are around $100,000 (these aren’t the national averages, but its a reasonable enough representation for the purposes of this exercise).
Here is how the incomes, dwelling prices and the dwelling price to income ratios would pan out over the years if prices grow at 10% per annum:
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="73" valign="top">
Year
</td>
<td width="132" valign="top">
Household income
</td>
<td width="113" valign="top">
Property price
</td>
<td width="151" valign="top">
Price/income ratio
</td>
</tr>
<tr>
<td width="73" valign="top">
0
</td>
<td width="132" valign="top">
$100,000
</td>
<td width="113" valign="top">
$500,000
</td>
<td width="151" valign="top">
5
</td>
</tr>
<tr>
<td width="73" valign="top">
10
</td>
<td width="132" valign="top">
$148,024
</td>
<td width="113" valign="top">
$1,296,871
</td>
<td width="151" valign="top">
9
</td>
</tr>
<tr>
<td width="73" valign="top">
20
</td>
<td width="132" valign="top">
$219,112
</td>
<td width="113" valign="top">
$3,363,750
</td>
<td width="151" valign="top">
15
</td>
</tr>
<tr>
<td width="73" valign="top">
30
</td>
<td width="132" valign="top">
$324,340
</td>
<td width="113" valign="top">
$8,724,701
</td>
<td width="151" valign="top">
27
</td>
</tr>
<tr>
<td width="73" valign="top">
40
</td>
<td width="132" valign="top">
$480,102
</td>
<td width="113" valign="top">
$22,629,628
</td>
<td width="151" valign="top">
47
</td>
</tr>
<tr>
<td width="73" valign="top">
50
</td>
<td width="132" valign="top">
$710,668
</td>
<td width="113" valign="top">
$58,695,426
</td>
<td width="151" valign="top">
83
</td>
</tr>
</tbody></table>
As you can see, it is a nonsense.
A dwelling will not cost $58 million in 50 years time and prices most certainly won’t reach 83 times incomes.
So if a buyers agent tells you that property prices will continue to go up at 10% per annum, they either aren’t very clever, in which case you probably shouldn’t hire them, or they are lying to you, in which case you definitely shouldn’t hire them.  
It’s pretty obvious that this kind of price growth isn’t going to eventuate absent a return to rampant inflation.  
10% growth didn’t happen in 2011 and nor did it occur in 2012. And even in the past 12 months with interest rates now at record lows, none of the major capital cities has achieved 10% growth.
Of course, it’s a possibility in any given year, but even if we allowed the introduction of Singapore-style 40 year mortgages and abandoned all pretence of macroprudential restrictions, it’s still a huge call to say that it could continue for long.
 
<hr class="system-pagebreak">
Naturally enough markets don’t tend to move smoothly, Instead they jump ahead before falling back, and this happens in cycles.
In Britain I recall prices storming along at double digit levels for year after year until Gordon Ramsay sounded the death knell.
Gordon Ramsay, you ask? I’m serious!
There’s often a point in bull markets when "taxi drivers and shoe-shine boys" (in other words, every man and his dog) start to talk up the asset class as a sure thing, and in his 2007 book, Humble Pie, Michelin-starred chef Gordon Ramsay said that when young chefs came to him for advice he told them to buy a property to live in and then invest in more property.
Cue the property crash.
In most areas outside London, prices are still behind where they were in 2007, so the “10% per annum growth” theory doesn’t seem to quite tally in the UK.
In Ireland, it wasn’t a chef who sounded the death knell, it was some other comedian.
Again, I’m serious!
In July 2007, Irish independent journalist and comedian Brendan O’Connor urged people to buy property, even though there was clear evidence that the huge price appreciation of the preceding years was in the process of bursting.
Cue the property meltdown.
Does this mean I am bearish on Australian property? No. We did have a moderate downturn through 2011 and 2012, which on balance was a good thing for our markets.
But lower interest rates have reduced the repayment levels on new and existing mortgages, the markets have stabilised and capital cities are showing moderate growth.
We’ve avoided recession, to date at least, with a GDP growth of 2.6% and unemployment has remained low at around 5.5%.
There will be very challenging times ahead no doubt as the mining construction boom tapers off, but monetary policy can stimulate other sectors of the economy and with Australian population growth surging to a crunching 392,500 persons per annum, it’s my contention that property investors who are smart and stick to quality properties in supply-constrained capital city suburbs will do well over the longer term.
But property price growth of 10% per annum? Send for the men in white coats!
Pete Wargent holds a range of finance and property qualifications and is the author of <a href="https://petewargent.blogspot.com.au/" rel="nofollow" target="_blank">Get a Financial Grip – a simple plan for financial fr</a><a href="https://petewargent.blogspot.com.au/" rel="nofollow" target="_blank">eedom.</a>
 
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The old phrase “property goes up 10% per annum” is a myth: Pete Wargent

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Perhaps I have been watching a little ‘too’ much 'American Horror Story' lately.
As unrelated to Australian property investment as this show may sound, it actually formed the inspiration for writing this article today. The first season of the show is about a family who moves into a suspiciously under-priced large Los Angeles Deco-era family home.
Of course, as the series progresses the family discovers the true history of the home – several gruesome crimes, repeated stories of hauntings, the usual horror movie home truths! – and realises that the stigma attached to the house’s history is the reason why they were able to buy it so cheaply to begin with.
Later on when the family tries to re-sell the house, they are burdened with the history and struggle to even get back what they paid for it.
<img alt="mcevoyjuly16one" src="/images/stories/2013/07/NUMBERS/mcevoyjuly16one.jpg" width="470" height="169">
The house at it appears in real life on the left compared to how it appears in 'American Horror Story'
Though this is just a silly television series and a very over the top/extreme example of how a property’s history can affect values, it got me thinking about the sentiment that sellers and buyers of properties will attach to the history or superstition behind a property.
In Australian culture we actually do see mild examples on a day to day basis of where superstition can influence demand for property.
Take for example the fact that in several Asian cultures many favour apartments and houses with the number ‘8’ in them based on the belief that this number brings prosperity and fortune with it and, to a lesser extent, some western/anglo-Australian buyers showing caution toward properties numbered ‘13’ based on superstitious reasons of ‘bad luck’.
I have read on several websites and also a feature article in Australian Property Investor Magazine about a year ago, about the story of the gentleman who purchased the ‘Bodies in Barrels’ murder house, which was attached to a bank, in the otherwise sleepy South Australian town of Snowtown.
After being placed on eBay for sale – a curious sales tactic in itself – the 4-bedroom residential house behind the attached bank building (where the actual horrors took place) was eventually bulldozed to make way for a new unit development.
The bank itself was placed on auction at a reserve cost of $200,000, though achieving a sale price of only half of that, though was later resold closer to original reserve price (at $185,000) to a family who intended to owner-occupy it after some conversion and renovation.
 
<hr class="system-pagebreak">
Though I am citing an extreme and extraordinary example; it does provide some insights for us. The initial stigma attached to a property shortly after a horrific event did see its value deplete – no surprises there.
However, within just over a decade after the occurrence, the property value gradually crawled back up.
Perhaps time heals all wounds.
In this way, would-be investors with arguably a higher risk-profile than most could consider procuring heavily discounted properties where unfortunate incidents took place, employ a buy-and-hold approach for a medium-to-long term and hedge their bets that time heals wounds (and the memories) of their would-be buyers in years to come.
Personally, I consider it a somewhat macabre and bleak prospect but the professional investor in me urges me to consider the bottom-line element, and not the superstition or stigma around it.
However this alludes to a bigger problem, when considering such property types on their initial 'bargain’ merits.
From a buying perspective, there may be long-term capital gains, but what good are these gains if you cannot feasibly hold this property with tenants in place?  
Where superstition and history are really important is the occupants of a residence.
The association of tragedy, superstition, or creepiness, may be too great for some would-be tenants to handle. They may inspect the property not knowing the recent history, but within months of moving in, they are looking to leave after their first six-month lease expires.
A good example of the persistent challenges of established property stigma that results in a property being unable to function as a regular rented residence; is Crawley House.
No, not the picturesque setting for the UK series, Downton Abbey, but Crawley House aka the Monte Cristo Homestead (pictured below) in Junee, NSW.
<img alt="mcevoyjuly16two" src="/images/stories/2013/07/mcevoyjuly16two.jpg" width="470" height="375">
Though it is a palatial 1885 manor fit for a large well-to-do family of that era, its tragic past changed the residence from being able to function as a home forever and has instead remained for decades as a museum, antique store, and tourist attraction.
That said, where the stories and ‘sightings’ of ghosts have closed the door to its function as a residence, it has opened other commercial opportunity doors instead.
 
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The truth is, the safest way to proceed with any property purchase is to do your homework.
If, for example, you are buying in an area that has a significant Asian population, it is worth at least being aware of the number of the dwelling and how this number may be perceived by that target audience.
Whether you end up selling or renting this property, it could be likely that your buyer may be of an Asian background and planning for such considerations may enable your target market to broaden as a result.
More crucially though, if you suspect the asking price for a property seems to be suspiciously lower than similar others in the area/street, ask the estate agent for full disclosure of any known history of the property.
Do as much research as you can around the history of the property and any occurrences that could have implicated on the sentiment towards it. Where and if possible, ask neighbours about the property. They probably won’t know anything but it never hurts to ask.
As a separate (and seemingly unrelated) step, I would always recommend that if your offer on a property is accepted, you buy the RP Data historical report for it.
This will highlight the sales history and any occurrences of note, pertaining to the history of the property.
Things to look for would be any disclosure of violent crime occurring there, or potentially a consistent (say, over twenty years) frequency of buy-and-sell; with no single owner retaining ownership of the property for more than a year or so.
I am not suggesting the reason will be anything to do with violent history or superstition, though you could discover something perhaps more startling, a structural or physical problem with the property over time.
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" rel="nofollow" target="_blank">Property Correspondent.</a>
'Haunted house' photo courtesy of  Sean MacEntee
 
 
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Can a property's turbulent history affect its market price: Cameron McEvoy

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Borrowers who don’t have a 20% deposit will be forced to pay higher lenders mortgage insurance (LMI) premiums following the two dominant providers – Genworth and QBE LMI – both increasing their premiums in the last 12 months. 
This is despite Australia having among the lowest mortgage default rates in the world. 
Fitch reported that mortgage delinquencies rose from 1.57% in the December 2011 quarter to 1.6% in the first quarter of 2012 – equating to about $35 million worth of loans turning bad. 
LMI is a one-off premium that protects lenders if a borrower defaults on their home loan - if the property sells at a loss, the lender can make a claim against its LMI provider for the shortfall. 
LMI can added thousands of dollars to the cost of buying a home and is particularly an issue for first-home buyers given the 20% deposit requirement. 
Calculations using the Genworth LMI premium estimator show that a first-home buyer borrowing 95% on a house valued at $500,000 (so a $25,000 deposit) would be required to pay an LMI premium of close to $16,000 on a 30 year variable-rate loan. 
A 10% deposit would reduce the premium to just under $8,000. 
A further issue is a lack of portability – if borrowers refinance with a new lenders and they still don’t have a 20% deposit, LMI must be paid again. 
Mortgage broker and director of Investors Choice Mortgages, Jane Slack-Smith, says she would expect LMI premiums to increase if there was an increase in delinquent loans “however it is not something I have seen in my business and not something that I have heard either LMI provider discuss in their updates”. 
Slack-Smith suggests that with interest rates so low, potentially the LMI providers are expecting issues for today’s buyer in the future when rates return to the long term norm of around 7.5% - “a way of hedging the future risk”. 
QBE LMI chief executive Jenny Boddington told Property Observer it increased base premiums on its core LMI products as of July 1 this year.
"We regularly review our pricing to ensure stable and reliable provision of our lenders’ mortgage insurance across the economic cycles,” she says.
Boddington says changes to premiums in recent years have mainly been driven by increased regulatory capital requirements, continuing subdued returns on our investment portfolio and slight increases in claims.
A spokesperson for Genworth confirmed that premiums have increased in the Australian market over the past twelve months.
“As a prudent insurance business, Genworth regularly reviews all elements associated with our product offering.
“This review takes into consideration the current market environment and the costs associated with providing our product and service delivery, including the cost of capital, portfolio performance and changing investment yields.
“Each individual LMI premium is calculated on the basis of a wide range of factors related to the size of the borrower’s deposit, the loan purpose, and the property. As such, pricing changes are based on a detailed analysis of each risk factor.”
Updates sent to brokers by lenders confirm the increases as well as changes to some products and offerings. 
An email sent to mortgage brokers by the Commonwealth Bank’ in June tells them that LMI will increase for “home/investment home loan and line of credit applications created from Sunday 2 June 2013”. 
“We are making these changes in line with pricing changes from our preferred LMI provider, Genworth,” says the Commonwealth Bank’s head of third party banking Kathy Cummings. 
An email sent to brokers by Suncorp says QBE LMI will increase base premium on three of its products - “lmiHOME™, lmiINVEST™ and lmiFIRST HOME™”. 
It’s not all bad news.
The Suncorp note also says QBE has of July 1 extended the eligibility criteria for its lmiFIRST HOME product - a discounted lenders mortgage insurance offering designed for first home buyers - to individuals who are purchasing or building a residential property for owner-occupation and who also qualify for the first-home owners grant and FHB stamp duty concessions.
The move is presumably to take in those FHBs who have qualified for the bigger state grants now available for new home purchases.
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More pain for first-home buyers as Genworth and QBE LMI push up mortgage insurance premiums

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Australian population is on a merry ride with a growth of 1.8% last year. We have added roughly 0.4 million people to the kitty of Australian citizens in 2012.
All good, but this brings forth a few pertinent questions. Such as: Is the housing sector good enough to keep abreast with the rising population? 
Population in Australia is getting a fillip due to two main reasons.
The first is termed as ‘natural increase’ and is expressed as the difference between the number of births and deaths. With low mortality rate, the natural increase is only expected to aid the population graph further in coming years.
The second factor is the ubiquitous overseas migration. It has brought in working class in ever so high numbers within the Australian shores. Net migration has doubled in the last 8 years and we have added nearly 240,000 to our population through net migration last year.
Of course, few states find themselves steeply rising on the population curve while others lag behind. While there are many reasons for the trend, net interstate migration turns out to be a key factor.
A few states drain people out while others siphon them in.
Factors like a) brightness of opportunities available, b) the performance of the housing sector, and c) the number of growth-drivers (single-industry economy or multiple-industry economy), among others, determine how much will a state soak in or bleed out individuals.
Tasmania and South Australia are finding out rather quickly that they are not providing enough reasons for people to stay (complete lack of depth in their markets). They have grown at a paltry rate of under 1%.
Places like Queensland, NSW and Victoria are growing rapidly both in terms of “wealth factor” and population.
Sydney has done rather well with New South Wales adding 90,400 people to its kitty last year. The good part is that the ratio of skill stream: family migration is loaded in favour of Sydney and a lot many skilled workers have been added to its tally lately.
This skilled-class will be an apt replacement for the baby boomer generation even as it looks to create its own job opportunity.
These people who are expected to generate their own wealth will look more and more towards living in the four main capital cities.
This is one reason why Sydney should keep piling the inflow of migrants and keep benefiting from it too.
The overseas migrants will fill us on their knowledge of overseas practices and business networks, will fuel demand in certain areas and also heighten investments.
Another point worth noting: not only the settler arrivals but also the number of onshore grants is increasing.
The latter is offered to student class who wish to settle permanently (have been living on a temporary visa till now).
The rapid development of Australia is luring them to stay forever and these are the individuals who are bound to feel more loyal about our country, adding a lot to its near-future wealth factor.
Population growth brings to the surface the crux question of housing supply.
We are running short of nearly 170,000 dwellings at the moment.
Oversupply in uninhabitable or lousy estate areas won’t help the cause.
Development-ready land needs to increase manifold.
Off-the-plan constructions need to honour time-frames, something which is not happening at large.
We have to stand up to our ‘median’ housing commitments and also look into the micro lots more engagingly. After all, we have a First Home Buyer population to cater to.
While the population growth is great news (we are not India or China where it can be perceived as a threat), our ability to turn it into a machine for growth is the main question at hand.
Tracey Chandler is a <a target="_blank" href="https://buyersagent-sydney.com.au/">buyer's agent specialising in Sydney's eastern suburbs</a>. This article originally appeared at <a href="https://buyersagent-sydney.com.au/" target="_blank">buyersagent-sydney.com.au</a>.
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How population growth is affecting the residential property market: Tracey Chandler

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The abundance of new Melbourne fringe CBD apartment developments are providing new retail tenancy opportunities - and proving popular as the retail tenants target residential foot traffic and surrounding offices.
CBRE is at the forefront of securing tenancies at the foot of developments, having secured the retail tenants of Lili Apartments on Claremont Street.
Two Birds One Stone was the first tenant to secure a 141-square-metre space at the foot of the development and is currently turning over $50,000 a week.
CBRE also secured <a href="https://www.propertyobserver.com.au/victoria/adriana-zumbo-joins-george-calombaris-in-south-yarra-s-lilli-development/2013042360668" target="_blank">Adriano Zumbo’s first retail space at Lily.</a>
{yoogallery src=[images/stories/2013/07/july17southyarra2]}
Zelman Ainsworth of CBRE retail services says that pocket of South Yarra has turned into a food precinct in the last three years due to the growth of apartments in the area.
“Over the past 36 months there has been an increase in the level of interest from service and hospitality retailers looking to establish a presence at the foot of new residential projects.
“This is helping to create competitive tension within the marketplace,” says Ainworth.
Burger giant Huxtaburger has signed a deal at the base of the Trilogi development on High Street for a 90-square-metre store.
A UK steak house is soon to follow with a lease deal currently in the works.
In the new Upper West Side development of 2,500 apartments, 25 retail spaces will be available for lease.
The two retail spaces in the Sunday Apartment South Melbourne development have recently secured two tenants.
Tea Time Express has secured a seven-year lease for the 69-square-metre space and authentic Asian restaurant Kotaraya has secured a 10-yease lease of the 170-square-metre shop.
“We were pleasantly surprised with the level of enquiry from both hospitality and service retailers that were looking to secure a presence at the entrance to the 237-apartment building,” says Ainsworth.
Ainsworth says retailers have taken a jump as that pocket of South Melbourne is quiet, but the development and surrounding offices will deliver.
The Sunday Apartment development currently houses a <a href="https://www.propertyobserver.com.au/victoria/south-melbourne-trophy-apartments-competing-with-the-block-sky-high/2013071163197" target="_blank">three-bedroom apartment competing in the same price category as The Block Sky High apartments</a> (and pictured below).
{yoogallery src=[images/stories/2013/07/july16southmelbourne]}
"Traditionally retail is never emphased in apartments, where as now, with the right type of marketing and positioning, there are huge opportunities to activate successful retails at the foot of developments in melbourne, either food, fashion or services," says Ainsworth.
Ed Wright of CBRE’s City Sales Division says inner city retail premises earning a strong return attracts a range of investors.
“The ability to own one of these CBD or inner city retail properties either directly or through a self-managed super fund, and earn a strong return has attracted a range of investors looking for alternatives to the share market, term deposits or residential property investment,” says Wright.
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Melbourne's CBD fringe apartment developments providing opportunities for retail tenants

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Solid interest remains to lease high quality industrial facilities aligned to major road networks and port infrastructure, says Dexus head of office and industrial, Kevin George.
The assessment of industrial leasing demand was made as the property group released an update on recent leasing activity within the $2.5 billion Dexus-managed industrial portfolio.
“Our leasing activity in recent months has been focused on established markets with existing and new tenants.
“While Australian industrial leasing markets appear to have paused in terms of the strength in demand, solid interest remains for high quality facilities aligned to major road networks and port infrastructure,” says George.
Key recent leasing achievements include a 10 year lease over 10,605 square metres Garigal Road, Belrose, commencing 1 January 2014, considered a "significant result considering the difficult conditions in the Sydney north shore industrial market".
Other recent deals include:
<ul>
<li>At Knoxfield Industrial Estate terms were agreed with Toll Transport to extend its lease over 36,123 square metres until July 2015</li>
<li>At Axxess Corporate Park, Melbourne Australian Postal Corporation exercised its option for a fiveyear extension over 4,354 square metres commencing September 2013. This resulted in a total of 9,911 square metres being leased at this property across 13 transactions over the three months to 30 June 2013</li>
<li>At 10-16 South Street, Rydalmere lease terms were agreed with two tenants totalling 8,360 square metres, including Payless Shoes occupying 5,294 square metres for 10 years, Deluxe Wood occupying 1,498 square metres for 4.4 years and Renz Australia occupying 1,568 square metres for four years. This leasing activity results in the occupancy for this property increasing to 93.1% and a WALE improving to 4.1 years</li>
<li>At Quarry at Greystanes Wilson and Bradley signed a five-year lease over 3,976 square metres at 3 Basalt Road and leveraging on DEXUS’s long-term relationship with the Wesfarmers Group, Bunnings was secured for a one year term over 12,490 square metres at 2-6 Basalt Road. This leasing activity has resulted in 100% occupancy across all competed developments at Quarry at Greystanes, which comprises over 113,000 square metres</li>
<li>At 12 Frederick Street, St Leonards two existing tenants have renewed their leases. Australian Postal Corporation at Unit 9 has extended its term by three years over 1,914 square metres and Metal Manufacturers at Unit C has extended its term for five years across 1,304 square metres</li>
</ul>
“Industrial tenant demand has been driven mainly by logistic providers benefiting from companies outsourcing their supply chains, as well as major retailers as they continue to consolidate their multiple warehouses," says Mark Cuddy, regional general manager of office and industrial. “The recent leasing achievements demonstrate our capabilities to actively manage the industrial portfolio, build on existing tenant relationships and improve occupancy.” 
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“Solid” leasing interest for high quality industrial property: Dexus

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Economist Stephen Koukoulas has tweeted about strong growth prospects for the Australian economy following publication of the Westpac Melbourne Institute Leading Index.
<a target="_blank" href="https://twitter.com/TheKouk">@TheKouk</a> tweeted:
<a target="_blank" href="https://twitter.com/TheKouk"><img alt="kouk_tweet" height="81" width="470" src="/images/stories/2013/larry_uploads/kouk_tweet.jpg"></a>
The annualised growth rate of the Westpac Melbourne Institute Leading Index, which indicates the likely pace of economic activity three to nine months into the future, was 4.9% in May, above its long term trend of 3.0%.
The annualised growth rate of the Coincident Index, which gives a pulse of current activity, was 2.7%, slightly below its long term trend of 2.9%.
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