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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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A 11% dip in residential building construction is anticipated in Geelong over the next 12 months, the key regional Victorian centre hit by a spate of recent business closures and planned closures.
Researchers BIS Shrapnel forecast a 11% fall in dwelling commencements in Geelong in 2013/14 with construction of 2,333 new house and apartments to begin over this period.
This compares with 2,627 dwelling commencements over 2012/13.
This ranks Geelong as the 13th most contractionary new housing market over the next 12 months in Australia.
The drop in new dwelling commencements signals a likely contraction in the local Geelong residential building sector at a time when they may be reduced demand for new homes given recent company announcements.
Earlier this week retailer Target confirmed that 200 jobs would be cut from its Geelong headquarters.
It follows Ford Australia’s announcement last month that it would close its <a href="https://www.propertyobserver.com.au/victoria/first-ansett-collapse-now-ford-plant-closure-threatens-broadmeadows-property-market-ford-fordaustralia/2013052361599" target="_blank">Geelong production plant in 2016</a> with the loss of around 500 jobs.
There is also uncertainty around the future of workers at Shell’s Geelong refinery. The enterprise employs around 450 people as well as contractors.
A further 500 jobs are at risk at Alcoa's unprofitable Point Henry aluminium smelter with the American-owned enterprise considering cuts worldwide. Alcoa had planned to shut the smelter down last year before receiving a $40 million bail out from the Victorian and Federal governments.
The potential loss of more than 2,00 jobs (more when contractors and affiliated employment are factored in) has been tempered by news that Geelong has been chosen as the headquarters of the new DisabilityCare agency for the National Disability Insurance Scheme (NDIS), which will employ around 300 people plus another 150 in the regional office.
State and federal government initiatives have also been announced to assist the Geelong economy.
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New dwelling starts to fall 11% in Geelong: BIS Shrapnel

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Far too much commentary about the residential property these days focuses on price.  Very little is actually said about sales.  When I first started in this game, sales volumes, and especially sales by price range or group, were far more important than median or average prices.
And for mine, nothing much has changed over the last 25 years in terms of what really matters when it comes to measuring a real estate market’s health – and that is, how many sales take place; in what direction are they heading and is there enough <a href="https://matusikmissive.com.au/2013/06/05/what-makes-a-good-investment-2/" target="_blank">market depth</a> i.e. sales volumes when it comes time for me to sell?
Recent data releases by both RP Data (in their Quarterly Review) and by the REIQ (via their Queensland Market Monitor) provide some information about sales volumes.  But most of the conversation is about changing median values, which as I have discussed <a href="https://matusikmissive.com.au/2012/11/28/murarrie/" target="_blank">here</a> and <a href="https://matusikmissive.com.au/2009/09/23/medians-muddy-the-water/" target="_blank">here</a>, more often than not means very little at all.  It shows what sold rather than improvement or otherwise.
To the REIQ’s credit, they dedicate a lot more space to discussing sales volumes than most other recent reports.  I trust this remains the case as the QMM is about to undergo a facelift.  Here’s hoping that the content remains the same.
Importantly, a market’s position can be determined (in part) by sales volume trends.  A recovering market has, among other indicators, improving sales volumes.  A market in upswing has ‘fast’ sales; a downturn market has flat or slightly falling sales volumes and a market in decline/trough has declining sales.
Sales volumes are a great bellwether when it comes to future direction of prices and a market’s characteristics i.e. changing from a buyer’s market to a seller’s market for example.
So what is happening to sales volumes across the country and in the nation’s capitals?
According to RP Data, there were 400,000 house and attached dwelling sales across Australia over the last 12 months.  Overall sales volumes have increased 2 % on the year before.  Yet sales volumes are 11 % lower than the five year average.
When it comes to new property sales, nationally, and according to the HIA, there were 64,000 new house and apartment sales over the last 12 months, which is 13% down on the year before and a massive 28% less than the five year average.  This is why – among other much needed legislative and tax-related changes to new housing – interest rates need to continue falling.
Interestingly, sales volumes (78,000 house and attached dwelling sales) are declining in Sydney – says RPData – with volumes 9% lower than the year before. Volumes are down 12% on the five year average.
The other capitals are as follows:
Melbourne: 72,000 sales; down 1% on last year; down 16% on last five year average.
Brisbane: 39,000 sales; up 10% on last year; down 14% on past five years.
Adelaide: 20,000 sales; little change on last year and also down 14% on last five years.
Perth: 40,000 sales; up 26% on last year; up 11% on past five years.
Hobart: 3,700 sales; now 3% down on last year; down 19% on past five years.
Darwin: 3,000 sales; up 22% on last year and up 2% on past five years.
Canberra: 8,000 sales; down 6% on last year; down 14% on last five years.
This shows me several things:
Firstly, how small some markets actually are – Darwin, Hobart and Canberra spring immediately to mind.  The Sydney market, for example, is 26 times larger than Darwin.
Secondly, it would appear that Brisbane has entered a recovery.  It is a bit more ‘stop-start’ than many of us would like.
Adelaide seems to be stuck in a trough.  Perth and Darwin are well into their upswings; and despite some recent commentary to the contrary, Melbourne and Canberra appear to have peaked.
Thirdly, I don’t know what to make of Sydney’s sales decline.  Maybe RPData’s data is wrong?  Maybe not.  All other indicators suggest that Sydney is in a relatively strong recovery.  The theory is that declining sales volumes mean a slowing market, but life is often far more complex.  In this case, given the weight of other more positive evidence – such as rising clearance rates; fewer properties for sale; a drop in the time it takes to sell and declining private treaty discounting – I will bench Sydney’s sales results as an anomaly, until further evidence surfaces.  But, again, sales volumes are a good bellwether, so I will be watching the Sydney market a little more closely in coming months.
Having now somewhat shot myself in the foot, much more time and energy needs to be spent discussing actual sales volumes.  These are best discussed on an annualised basis and where possible, by product type.
All buyers should also want to know about how many sales actually take place around the price they paid for their property.  For example, if I bought a $425,000 apartment, I would want to know how many sales took place between $400,000 and $500,000 within the local area on average over the past couple of years.
I would also be interested if that market size had increased in recent years, so that I could estimate the resale market’s depth when it comes time to resell in the future.
Investors, especially, should pay little or no attention to median or average prices.  It’s sales volumes that are really important.  All investors need to start with the end in mind – an exit strategy if you will – and the important questions are, “Will someone buy this off me in the future?” and “How many buyers are there?”  This then provides insight as to the time needed to resell and at what price.
Michael Matusik is the founder of <a style="font-size: 14px;" href="https://www.matusik.com.au/" rel="nofollow">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read<a style="font-size: 14px;" href="https://www.matusikmissive.com.au/" rel="nofollow">Michael’s Blog</a> or follow him on <a style="font-size: 14px;" href="https://www.facebook.com/ThinkMatusik?fref=ts" rel="nofollow">Facebook</a> and <a style="font-size: 14px;" href="https://www.twitter.com/michaelmatusik" rel="nofollow" target="_blank">Twitter</a> or connect via<a style="font-size: 14px;" href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a> 
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michaelmatusik-49YzLvdmNv

Residential property commentary needs to focus on sales volumes as well as prices: Michael Matusik

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A run down waterfront house in Aspendale has sold for over a million dollars, indicating that demand for waterfront properties is strong.  
The house, located at <a href="https://www.realestate.com.au/property-house-vic-aspendale-113686771" target="_blank">7 Gladstone Avenue</a>, sold at auction last month for $1,060,000 through O’Brien Real Estate Chelsea.  
Stavros Ambatzidis of O’Brien Real Estate told Property Observer that the condition of the property was not at its best.  
“It was very run down – we were just selling land value there. It wasn’t selling much more than land value,” he said.  
He added that the auction received a great response, with the final result at a higher than expected price.  
“We had about 100 people at the auction, with very strong bidding. We had 10 registered bidders.  
“It sold above $110,000 over what I expected,” Ambatzidis said.  
A report on news.com.au stated that the successful bidders were a pair of sisters who are hoping to create a dream home for their 90-year-old mum.  
Ambatzidis noted that another run down property at 1 Osprey Lane in Carrum also sold for over a million dollars recently.  
“There’s been a demand for them, as there are not many waterfront properties.  
“Waterfront properties are of a rare nature. There's really only waterfront properties that exist in the Chelsea area,” he said in response to the recent sales.  
According to the <a href="/news">latest RP Data report</a>, the median house price in Aspendale currently stands at $615,000, up 1.2% on last year. The average discount required to sell a house is 5.5%, while private treaty sales average 74 days on market.  
The median asking rent for houses in Aspendale is currently $430 per week, and the average rental yield stands at 3.6%.
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Aspendale waterfront buying interest tide rising

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While the property market appears to be again heading upwards, the improvement has been modest to date and uneven, creating opportunities for savvy investors and homebuyers.
“Overall, there are still plenty of bargains to be found in this market though we remind buyers that it is important to do proper due diligence prior to pricing negotiations by either getting research or getting a valuer to come in and provide a valuation. Doing this will help find real opportunities and help avoid the lemons,” says SQM Research managing director Louis Christopher.
Not that finding bargains is easy.
“The only thing that has changed [in the last couple of years] is it’s just got harder to find and secure great properties at great prices and I don't see that changing for a while given the demand,” says Patrick Bright, a buyers' agent and director of EPS Property Search.
“In the last couple of years I have never had so many people from interstate wanting to buy in Sydney,” he says.
Bright says reasons for investing in Sydney vary, but are generally along the lines of "compared to the other capitals it currently looks to be very good value”.
<a target="_blank" href="https://www.propertyobserver.com.au/residential/how-to-find-property-bargains/2011053150312">In June 2011, </a>Louis Christopher and Patrick Bright provided seven tips for securing bargains and not lemons. Two years have passed, the market trajectory has changed and we've revisited them:
1. Only fools rush in: “Look now, don’t rush,” Christopher suggested in 2011. “The only trouble in trying to theoretically work out whether you have a bargain is that it may be a bigger bargain tomorrow because the market continues to fall."
June 2013 update: “I always believe that one should not rush on a decision to buy a property, even in a rising market even if it means risking losing the property to another buyer. By all means, efficiently to your due diligence and do not bluff a vendor/agent by not retuning phone calls etc as they may take you too seriously and sell it to the next buyer," says Christopher.
“In a rising market it really is very important to properly investigate fair value and not be pressured into purchasing over valued property.”
2. Time it right: The best time to buy is at the bottom of a market trough, just before prices start to rise again. But as Christopher rightly points out in 2011: “No one rings a bell at the bottom of the market.”
However, that does not mean it is impossible to know when the right time is to buy. “Potentially, there could be bargains towards the end of this year [if most national markets have stopped falling by then],” Christopher says.
Buyers should study the market closely now to be ready to buy when the time is right and they have found the right property to suit their needs.
June 2013 update: “As it turned out, the end of 2011 was very close to the bottom of the market. We place the bottom at the third quarter of 2012. And as discussed frequently, this recovery is a modest to moderate recovery. Prices have not yet ‘surged’ ahead. Yet the outlook is far more positive then what is was when this story was originally written. I believe that in terms of timing, the current climate does present some very good opportunities for buyers." 
 
<hr class="system-pagebreak">
3. Be especially wary in over-priced areas: Darwin is “massively over-valued,” according to SQM, and properties in south-east Queensland and Perth are selling for far more than they should. Christopher said in 2011 that housing markets in these and other over-valued regions will remain sluggish or will continue to correct. If interest rates rise again this year, that could cause prices to fall further.
June 2013 update: “As it turned out south-east Queensland did continue to fall, while Perth bottomed out sooner than expected on the back of interest rate cuts. Fortunately there were no rate increases in 2011, rather the RBA saw the light of day and cut, thereby saving the market from deeper falls than what actually took place. 
4. Everything is harder in Sydney – but that does not mean impossible: Sydney prices are rising, making bargains even more difficult to find. “In the next three years, I am not expecting any dramatic falls in Sydney,” Christopher said in 2011.
But that does not mean it is impossible to buy in Sydney. There are fewer bargains than in other capitals, but there is also much less risk that the price of an apparent bargain will fall after purchase – provided that you buy into a sought-after suburb.
June 2013 update – “Sydney is now recording a more robust recovery than most other cities. I would place the annualised growth rate now at between 5% and 9%. That’s what I think the pace is, though it varies depending on the location.
“For example the northern beaches are not doing as well, while eastern suburbs and lower north shore are doing better. As a result, it is becoming increasing difficult to find genuine bargains. Rather, the main goal should be (as it always should be) to buy property that is at fair value. I believe Sydney will keep rising for the foreseeable future,” he says.
Patrick Bright says his comments on Sydney remain unchanged.
In 2011, he wrote: “When a market is on the move, what someone paid for a very similar property a month or two ago can look like a bargain.
Bright says most deals that seem too good to be true usually are. He warns that buyers of properties with “something that’s not good about them” will either have to fix the fault or flaw or will have to sell the property at below market rates for the area.
However, some properties are listed at below market value because owners had initially asked too much and have cut the price out of desperation to sell.
What types of properties should savvy Sydney bargain-hunters look out for? “Stick to the inner ring, three to 15 kilometres from the CBD,” Bright says. He says buyers should look for properties close to beaches or those with harbour views.
“Correct property selection for the particular suburb is critical,” says Bright, “if you want to achieve a better-than-average return.”
 
5. Watch for desperate vendors: Christopher says some vendors in areas with falling prices become desperate to sell and lower their prices below market rates.
June 2013 update – “This is still the case now, though there are fewer areas in this situation around the country. Canberra is one city though where I believe we might see some keen selling.”
6. Look for properties on the market a long time: Prices will sometimes fall on properties that have been on the market for more than two months.
Marketing of these properties often follows a pattern: vendors start off asking too much; agents lose interest, sometimes even warning prospective buyers that the house is overpriced and the vendor is difficult; vendors become desperate to sell; vendors cut the price heavily, sometimes below market value.
June 2013 update: “This is still the case in a rising market. Indeed many vendors can get a little too confident in recoveries thereby asking way above the market for their property. Even more so today, buyers are very conscious of an overpriced property and will walk away despite overall rising prices. This of course can still really damage a selling campaign leaving the vendor in precisely the same situation mentioned above," says Christopher. 
7. Monitor housing supply levels: When the supply of housing is rising sharply, buyers are in a much stronger position to negotiate for good deals.
According to figures compiled by SQM Research, the number of listings in Australia rose by more than 40% last year. Sydney had the lowest rise in housing supply, at 19.5%. 
June 2013 update: “As published by <a href="https://www.propertyobserver.com.au/trends/canberra-perth-and-melbourne-lead-48-rise-in-may-residential-listings-sqm-louichristopher/2013061062060">Property Observer</a>, SQM’s index of total listings peaked last year, though we note they for the majority of cities, listings are still elevated meaning there is plenty of existing stock to choose from, though noted we agree with the sentiment that there appears to be fewer new listing entering into the market," says Christopher.
“At this stage I judge that buyers are in not as good a position to negotiate as where they were back in 2011 yet they have not lost complete power.”
 
 
 
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How to find property bargains and not ‘lemons’ in the current market

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Western Australia and Tasmania led the way for new listings activity over the month to June 16, according to RP Data.
Tasmania saw a seasonally adjusted increase in new listings of 0.9%, while Western Australia had a 3.6% rise.
<img alt="rpdatanewlistingsjune20one" height="246" width="470" src="/images/stories/2013/06/rpdatanewlistingsjune20one.jpg">
<img alt="rpdatanewlistingsjune12two" height="203" width="470" src="/images/stories/2013/06/rpdatanewlistingsjune12two.gif">
The RP Data Listings Index provides a lead indicator for the number of residential dwellings that are being prepared for sale across the Australian housing market.
RP Data customers account for over 70% of all listings in the Australian property market.
The index, which tracks the flow of metadata across RP Data’s real estate data platform, shows a 75% correlation with the number of new listings about to enter the market.
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WA and Tassie lead new listings activity: RP Data

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How would you like a brand new investment property with a secure long lease, no property management hassles, zero vacancy risk and guaranteed rental income?  
Sounds good doesn’t it?  
Well … a few types of investments seem to advertise these benefits.  
One group are serviced apartments and I’ll give you my thoughts on these in a future blog, but another is Defence Housing Australia (DHA), which advertises all of these benefits. They also build or buy houses, lease them to military families and then sell them to property investors.  
While this sounds great to an uninitiated investor, in my opinion it comes at too high a price, which makes these very poor investments.  
Let me explain…  
1. New house equals poor gains
In general, DHA promotes newly constructed homes often in master planned estates in regional Australia.  
Being new, your investment comes with a long list of depreciation benefits and of course doesn’t have that lived in look, so this seems like a pretty good deal, right?  
Unfortunately, there are more negatives than positives when it comes to buying a new home such as those the DHA has on offer.  
First there’s the fact that new houses almost always cost more than comparable established homes in the same area, meaning you are buying them at top dollar.  
This is particularly true for DHA homes, where you pay a premium for what is sold as a “total package”; you get the tenants and even a pre-appointed property manager with the house.  
While this type of “guarantee” panders to the inexperienced, insecure investor, it’s worth remembering that property investment is about building an asset base through above average long-term capital growth – something new homes in large, purpose-built estates simply don’t provide.  
Fact is these properties tend to be in regional areas. I have always avoided investing in regional towns because of their heavy reliance on one or two industries to sustain their local economies and population.  
Remember, when those industries take a battering, it’s not long before local house prices start to bear the brunt.  
Instead, I look to invest in areas where property values will be driven up by a large and growing population base, a diverse economy and scarcity of supply of well-located properties.  
Clearly there is little scarcity to push up the value of DHA properties – they’re built by the hundreds in some towns.  
2. Difficult to sell
One of the big obstacles to capital growth for DHA properties is the lack of a secondary market.  
Demand from owner-occupiers is what pushes up the value of most properties.  
But if you bought a Defence property and chose to sell, or even worse had to sell, you’d cut out 70% of potential buyers because your property would not suit an owner-occupier because of its long lease.  
This adds up to one big fly in the proverbial ointment when it comes to owning DHA properties. A minimal secondary market for this type of property puts these investments on my “stay well clear of” list.  
By the way … mortgage insurers aren’t fond of DHA properties, and this makes it difficult to get a mortgage for more than an 80% LVR.
 
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3. High management fees means reduced rental returns
OK, you may pay too much, have below average capital growth and can’t easily sell your property, but at least you’ll be guaranteed a tenant for up to 12 years.  
This means no extended vacancy periods where you could end up struggling to meet the mortgage repayments.  
Then there’s the “make good” clause that means at the end of the lease period, the DHA ensures it will replace the carpets and give the house a fresh lick of paint.  
Sounds good doesn’t it? So what’s the catch?  
Well, as usual, this “peace of mind” comes at a cost.  
Specifically, the cost is in DHA property management fees charged at a whopping 16.5% or more than double that of a regular property manager.  
‘Fine’, I hear you argue, ‘I’ll just employ my own property manager!’  
Unfortunately you can’t. It’s compulsory to hand full management of your investment over to the DHA.  
Start crunching the investment returns and suddenly those guarantees lose a bit of their luster.  
4. The rental guarantee is up, now what?
What happens at the end of the lease? Well the DHA may renew it – or not.  
But what if you want to sell your property then? How will a home that’s had long-term tenants in place and is surrounded by other long-term rentals appeal to owner-occupiers? What if other investors in the estate also plan to sell at the same time?  
Not an ideal situation, is it?  
Look before you leap
There’s lots of ways to make money in property and there seems to be just about as many ways to get property investment wrong.  
Before you make any investment decision first have a plan, a property investment strategy and know what you’re looking for from your property investments.  
Then, if you’re considering a DHA investment, here are some questions you should ask:  
<ol start="1">
<li>
How much more would I be paying for a DHA house than other comparable properties in the area? What is the mark up for this new home and the “bells and whistles” that go with it?
</li>
<li>
How does the supply of new properties compare to demand for houses in the area from owner-occupiers?
</li>
<li>
How much of my rental return will I be forfeiting in excessively high management fees?
</li>
<li>
Will the security of a guaranteed tenant and the benefit of depreciation allowances compensate for the slower capital appreciation I can expect?
</li>
</ol>
When you start to weigh it all up, mounting a defence for military housing as an investment prospect is a difficult ask.   Trying to build a wealth-generating portfolio through niche property investing is a bit like playing roulette and hoping to win big. The odds are not in your favour.
Michael Yardney is a director of <a rel="nofollow" href="https://www.metropole.com.au/">Metropole Property Strategists</a>, who create wealth for their clients through independent, unbiased property advice and advocacy. Subscribe to his <a rel="nofollow" href="https://propertyupdate.com.au/category/property-investment/">Property Update</a> blog.
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New homes in large, purpose-built estates don’t provide above average long-term capital growth: Michael Yardney

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Baby boomers are guinea pigs in many ways. They are Australia’s first generation to retire on superannuation. It is an experiment designed to relieve the public purse of the burden of Centrelink pensions.
One of the side effects of an experiment is mistakes. And there have been plenty of those. The problem is that trial and error with a lifetime’s worth of earnings isn’t a mistake you’d want to make, and one that many people can’t recover from.
Noel Whittaker said that one of the ways people can be undone, is by attending a free property investment seminar. “The seminars always follow the same pattern,” says Whittaker. It starts by illustrating the growing strain on government budgets along with the pressure of longer life expectancies. Attendees are encouraged to take action to avoid certain poverty. The message is a pity one, rooted in essential truth. It’s the spruiker’s solution to the problem that’s often skew-whiff.
“The killer blow is that the spruiker then convinces the victim that the best property for them is one that the spruiker, or its associates, will build on their behalf,” says Whittaker.  
Warning signs abound with dodgy property investments. Although, obviously not all investments touted at seminars are sour, Noel Whittaker has seven warning signs that you’re dealing with a questionable investment:  
1. You haven’t initiated the contact
Whether it be an offer or phone call for a “free” property seminar, you usually won’t have sought out the contact, they’ll have found you. Once you’re in, they’ll draw you in and ramp up the pressure for the sale.  
2. They claim they are the only one who can find the deal for you
The spruiker’s aim is to sell you a property at well above its value so they can make a large profit for themselves. Contrast this with the common trait of successful property investors — who almost always search for properties themselves, or through a buyer’s agent they’ve contacted.    
3. A building contract is involved
From the outset, you’ll be told that having a building contract in place is great as you won’t have to pay stamp duty costs. But this can give a spruiker the chance to extract more profit out of you by loading the building costs with their own commissions and profits.
4. They manage all the aspects of the process
A dodgy investment will have the one salesman who has a solicitor, mortgage broker, builder and property manager all working for him. This way it is hermetically-sealed environment with no independent advice reaching the client.    
5. The property is in a different state
Your own backyard is the one you’re likely to know best. When you’re taken from your knowledge zone, you rely on the information provided by property spruiker. This is where their powers of persuasion (and deception) can paper-over a dodgy investment.  
6. Your property is used as security
A spruiker will try to get you to use your own property as security for any home loan. This is a sleight of hand which is an attempt to avoid you getting a valuation for the investment property (which clearly won’t be worth nearly what you’re told it is — or will be when finished). Valuations are required when the investment property itself is used as security for a home loan.  
7. A flashy website with plenty of testimonials
Good looking websites create trust, and no one knows this better than a spruiker. Expect their websites to be flash, with plenty of success-story testimonials.
Adrian Barclay is a finance journalist from <a href="https://www.finder.com.au/" target="_blank">Finder.com.au</a>
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Seven warning signs of a questionable property investment: Adrian Barclay

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The current slow rise in house prices could create problems for Australia’s vital small business sector, the RBAs head of domestic markets, Chris Aylmer, has warned.
Aylmer said single digit credit growth implied that house price growth “won’t actually be that strong” and “certainly won’t match what we have seen over previous decades” while speaking as part of an MFAA mortgage industry panel discussion.
“That home equity actually allowed small businesses to fund themselves to grow,” he said, meaning a new business model was needed to fund new start-up ventures.
However, he said there was no easy answer because if there was “someone would have sorted it and made a business out of it”.
Aylmer said there would probably need to be innovation in the venture capital space and “intergeneration transfers, because the people who have the home equity are the older generations.
"So how do you actually move that from that generation to the younger generation?”
He also suggested that banks would have to become more involved unsecured lending, which might mean that the cost of business debt would increase.
This, he said, would make the role of the bank credit officer and mortgage broker more important.
Aylmer also highlighted that the small business, which is responsible for around 47% of employment in Australia, does not get the coverage in the media that the housing sector gets.
“If you just think of it in those terms, that surely means you have to sit up and think about the sector,” he said.
Fairfax economic and business commentator Michael Pascoe, who chaired the MFAA discussion, wrote in a column that the picture was “bleak for the renewal of small business under the patterns we have become used to”.
“While there's plenty of credit available for would-be home buyers, the banking industry remains wary of would-be business borrowers – start-ups without equity need not apply,” Pascoe wrote.
He also highlighted that the possibility of faster growth in house prices was something the RBA was not in favour of with the “central bank on the record as being willing to ‘lean’ against asset bubbles.
Pascoe suggested solutions for entrepreneurs could include “crowd sourcing, capital-lite business models, virtual thingies of one sort of another”.
“But that takes time to evolve while the traditional mainstay of small business funding hasn't been functioning like it used to for several years now and isn't like to revive any time soon.”
 
 
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Modest housing recovery not good news for next generation of entrepreneurs: RBA

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Sydney recorded a median private treaty house price of $616,000 over a four-week period to June 16, figures from RP Data reveals.
This is up $16,000 on a median price of $600,000 recorded for the four weeks to June 9.
Melbourne's median private treaty house price fell from $445,000 to $440,000 over the same period.
Private treaty sales represent around 85% of all dwelling sales across the country.
Data for four weeks to June 16:
<img src="/images/stories/2013/larry_uploads/private_treaty_june_16.jpg" width="470" height="273" alt="private_treaty_june_16">
Data for four weeks to June 9: 
<img src="/images/stories/2013/larry_uploads/june_9_rp_data.jpg" width="470" height="295" alt="june_9_rp_data">
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Sydney leads rise in private treaty median house prices in June: RP Data 

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Coastal Queensland including the Gold Coast, Far North Coast and Sunshine Coast remain the weakest property markets in Australia, with more than a third of properties in these locations re-sold at a loss in the March quarter.
This is in stark contrast to the overall performance of the property market where only 12.7% of proprties re-sold at a gross loss, according to figures in RP Data’s quarterly Pain and Gain report.
The report reveals that of the 58,677 residential property re-sales recorded over the March quarter, 87.3% sold for a gross profit.
Nationally, the gross profit from these re-sales equated to $9.6 billion while the gross value of losses was $463.9 million.
The report compares March quarter sales prices with the previous sales price.
It does not take into account things like borrowing costs, interest on loans, renovations or maintenance costs over the period the property has been owned.
The lowest proportion of loss making re-sales were recorded in Canberra (4.8%), Perth (6.3%), regional Northern Territory (6.8%), and Sydney (7.1%).
The worst performing region was regional Queensland with 27.5% of properties selling at a loss with the Gold Coast particularly weak with more than a third of properties (37.1%) selling below their previous purchase price followed by Far North Queensland (35.9%)  and the Sunshine Coast (33.9%).
<img src="/images/stories/2013/pain_and_gain.jpg" width="470" height="196" alt="pain_and_gain">
Source: RP Data
The report also shows that properties bought before the GFC have performed much better when re-sold compared with those bought after the crisis.
“The likelihood of making a gross profit or loss is quite different based on the length of time a property has been owned. As a stark example, those homes that were previously purchased prior to January 1st, 2008 (pre-GFC) and were subsequently sold during the March quarter of this year, only 8% of re-sales were made at a gross loss,” says RP Data national research director Tim Lawless.
“For those homes that were purchased on, or after January 1st 2008, the propensity to make a loss on the sale climbs substantially. Of those homes that sold over the March quarter, 25% recorded a gross loss relative to the previous purchase price,” he says.
According to the report, the likelihood of making a gross profit or loss is quite different based on the length of time a property has been owned.
For properties that made a gross loss over the March quarter, their average length of ownership was just 4.8 years.
Properties that recorded a gross profit were held for an average of 9.7 years, while those homes that recorded a gross profit of more than 100% were owned for an average of 15.4 years.
The median gross profit per profit making transaction was $133,000 while the median gross loss per loss making transaction was $30,000.
The strongest performing markets were regional areas “often associated with the resources sector” which recorded very low rates of loss making re-sales.
Queensland’s Central West, Victoria’s Loddon region and the Kimberley and Pilbara regions of Western Australia all recording fewer than 5% of March quarter transactions at a loss.
In contrast lifestyle regions continued to show the largest proportion of loss making re-sales, particularly within the unit markets as opposed to detached housing markets.
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