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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Dexus Property Group and its Wholesale Property Fund have jointly acquired the under-construction 480 Queen Street office tower from Grocon at an estimated cost of $543.9 million on completion.

Each entity will hold 50% of the asset.
The 31-level premium-grade office development spans 55,561 square metres of office space located in Brisbane’s Golden Triangle, with dual access via Queen Street to the south-east and from Adelaide Street to the north-west.
It will be one of the few premium office towers in the Brisbane CBD to offer large office spaces of up to 2,800 square metres, and is expected to appeal to the high-end corporate tenant market.
The initial yield from occupants is estimated to be 7.25% on completion, based on current pre-commitments and that income guarantees are met.

Already 40% of office space has been pre-committed to future tenants including mining giant BHP Billiton and law firm Herbert Smith Freehills and with its 6 star, Green Star environmental rating, the building is expected to further attract interest from KPMG, NAB and the Commonwealth Bank.  

Construction on the tower has already commenced and is expected to be completed by February 2016.

Dexus’s office portfolio weighting is expected to increase by 1% to 79% following the acquisition with its weighting to the Brisbane CBD office market to be 11.6%.
"Despite mixed short-term fundamentals in the Brisbane office market, we remain confident in the overall metrics for quality, well located properties such as 480 Queen Street which provides premium grade office space with superior specifications and is ideally located in Brisbane’s Golden Triangle," says Kevin George, Dexus's exeuctive general manager of office &amp; industrial.
“Income guarantees expiring around September 2018 will provide security against any near-term uncertainty within the Brisbane market."
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Dexus buys Brisbane office at 480 Queen Street for $543.9 million 

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A recent Victorian Supreme Court decision in favour of a Melbourne apartment owner that operates serviced apartments in a Docklands residential building has been slammed by the Sydney-based Owners Corporation Network (OCN).
Stephen Goddard, a Sydney strata lawyer and chair of the OCN, told Property Observer allowing apartment owners to turn their residential units into hotels rooms or serviced apartments would “degrade property values” and result in strata fees rising due to higher maintenance costs.
It follows the Victorian Supreme Court overturning an earlier ruling by the Building Appeals Board that prevented Paul Salter from operating his Docklands Executive Apartments at the 350-unit Watergate tower.
Salter had lost an appeal to the Building Appeals Board in March this year after he received building notices in April 2011 with respect to three apartments being used as short term serviced apartments that were ruled to have contravened the Building Code of Australia.
The City of Melbourne was a defendant alongside the Building Appeals Board in its legal dispute with Salter.
The court ruled that the decision of the Building Appeals Board must be quashed and the appeals made by Salter be remitted for re-hearing and determination in accordance with law.
Goddard says the OCN is “completely behind the City of Melbourne”.
“It’s neither good public policy nor in the public interest to convert residential apartments into boarding houses or hotels on common property rates," he says.
“We are surprised and disappointed at decision of the Supreme Court of Victoria.”
Goddard says the decision will have national ramifications with the potential for parts of Docklands to start looking like the Gold Coast.
He says short-term letting of apartments is also a problem in Sydney, citing one example of a buck’s night in an apartment building, where windows were broken and the swimming pool had to be drained to remove all the glass.
“The allowing of checkerboard short term tenancies results in the overall degrading of amenities and capital values and will result in increases in levies.
“It’s short term profiteering but with a long-term cost," he says.
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Short term renting of apartments will degrade strata values and push up fees: Owners Corporation Network

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While the federal Department of Immigration has yet to issue any Significant Investment Visas (SIVs), over 200 applications from Chinese investors and a smattering of other nationalities should soon be in the post.
Most are targeting investments in NSW and Victoria, and the granting of the visas is expected to have positive reverberations for the top-end property markets in cities like Sydney and Melbourne, where demand for prestige real estate has been low compared with more affordably priced properties.
The SIVs, colloquially called "Golden Ticket" visas are available to wealthy investors who can invest $5 million in approved investments for four years and are then eligible for permanent residency. There is no English language requirement, though they must stay in Australia at least 160 days within those four years.
The applicant, spouse and dependent family members can live in Australia immediately after approval.
While the rules of the SIV specifically exclude direct investment in real estate, applicants can invest in an unlisted managed fund that holds Australian direct property assets and/or a trading business/ company.
According to the latest figures from the Department of Immigration, 222 invitations have been issued to investors to apply for a SIV.
This is up from the 131 invitations to apply issued by late February.
Of these, 212 invitations have been issued to Chinese investors with the remaining ten coming from Singapore, Japan, Taiwan, Germany, Hong Kong and the US.
Almost half (101) of these invitations are for applicants looking to invest in NSW, with 81 in Victoria and 29 in Queensland.
A surprisingly small number – just 8 – are looking to invest in mining-rich WA with three planning to invest in South Australia.
The 222 invitations issued by the Department of Immigration follow it receiving 345 expressions of interest from Chinese investors, seven from Hong Kong, two from India, three from Japan, four from Singapore, two from Taiwan, three from the US and one application each from 13 other countries.
Earlier this month, Knight Frank established a <a href="/news">special sales team specifically targeting wealthy Chinese investors</a> following the introduction of the significant investment visa (SIV).
The Knight Frank team includes Chinese born agents and people with experience dealing with Asian investment, led by Dominic Ong.
Ong believes Chinese spending overseas is increasing and won’t peak for another five years.
“During my recent visit to Shanghai and Beijing, we are seeing Chinese investors increasingly looking to diversify their portfolios and they view Australia as a safe haven and a long term investment destination.
“We are currently working with some 20 groups of Chinese investors sourcing office towers and shopping centres to hotel investment and land development projects.”
Th SIV program was launched in November last year.
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None issued yet, but significant visa applications dominated by Chinese investors eyeing NSW and Victoria

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Recent reports reveal that Australia has overtaken the US as titleholder for “home to the world's largest houses”.
Large ‘McMansions’ on expansive suburban blocks have long been held up as the ‘Great Australian Dream’ ideal, while smaller inner city apartments copped a pretty bad rap as the cheap and nasty end of the property market.
However, <a href="https://www.propertyobserver.com.au/residential/times-are-changing-and-apartments-are-on-the-rise-terry-ryder/2013041560408" target="_blank">times are changing</a>, with many home buyers and tenants forced to reflect on whether their priority is square footage and a big backyard in the burbs or getting into a property without breaking the budget.
Suddenly that one-bedroom apartment seems a lot more appealing.
Whilst many developed countries have embraced the virtues of high-density accommodation clustered around major cities – think New York, Paris, London and Tokyo – here in Australia, our culture has been based on backyards, BBQs and wide-open family spaces.
Now though, a demographic shift is occurring, with more single person households and childless couples choosing to live in and around our big cities where employment and lifestyle factors are big drawcards.
Figures from the Australian Bureau of Statistics (ABS) reveal that the number of one person households will surge to between three million and 3.6 million by 2031; a dramatic shift when you consider that in 2006 only 1.9 million people lived alone.
This massive increase is due to a number of factors, including:
<ul>
<li>Gen X downsizing as their children grow up and leave the family home.</li>
<li>A forecast jump in the number of DINKS (Double Income No Kids). According to the ABS, couple-only households are set to overtake the number of families with offspring in the next two or three years, and it's expected that DINKS will make up 60% of all couple-only households by 2031.</li>
<li>A rapidly growing population and continuing housing shortage in some of our major cities.</li>
<li>Ongoing affordability issues and increasing rental prices forcing many to rethink their size requirements.</li>
</ul>
Demand for one bedroom apartments, which skeptics have long considered to be less desirable, is set to soar as many Australians adjust their ideals according to what they can afford. And one of the questions they'll be asking is: do I really need that extra bedroom?
In the past, singles and couples have, by and large, sought out two bedroom apartments with the perception that they offer larger living spaces and the convenience of extra storage.
However, with median price tags for such real estate heading upwards of $500,000 and rents soaring over $500 per week in many desirable locations, the affordability barrier is encouraging many tenants, investors and home buyers to accept one bedroom units as a viable alternative.
Recognising this growing trend, developers are jumping on the bandwagon and including more one bedroom units in their large scale projects. But be wary – the price of many of these new apartments is going up as their size is going down.
 
<hr class="system-pagebreak">
So do one bedroom apartments make good, affordable investments? 
 
Is there enough ongoing future demand from tenants and owner occupiers alike to ensure they perform as long-term cash cows?
The simple answer is – yes!
Why?
Because affordability means more owner-occupier buyers will be pushed into this type of real estate as they sacrifice size for location, thereby increasing demand and placing upward pressure on prices. These apartments are often located closer to the city and major work nodes as well as universities and hospitals, in areas that generally have efficient transport connections, plenty of retail facilities and social amenity; all key elements high on the list of young buyers.
In addition, tenants seeking rental accommodation in and around desirable lifestyle locations will look for affordable one bedroom alternatives, meaning investors will have a large tenant pool to help pay the mortgage.
Sure, one bedroom accommodation caters to a narrow demographic of one and two-person households, but the reality is this is a mismatch of the demand from this growing demographic and the relatively restricted supply of established one bedroom apartments that are “investment grade” properties.
I have to say that some of my best performing investments over the last few years have been one bedroom apartments. They attract a diverse range of tenants, including Gen Y’s making the break from mum and dad; young professional couples, middle-aged singles as well as downsizing baby boomers.
A few words of warning:
<ul>
<li>Small spaces can either be highly functional or incredibly pokey, meaning the design and layout of your apartment is critical.</li>
</ul>
<ul>
<li>Avoid studio apartments. They are too small, the banks don't like them and they are very hard to on sell. Instead, go for something that offers at least 50 square metres of indoor space and if you can manage a balcony and plenty of clever storage options, all the better. Off-street parking is a desired bonus, but not necessarily required if close to transport</li>
</ul>
<ul>
<li>Steer clear of new and off-the-plan developments, especially in the CBDs of our major capital cities. Especially in Melbourne, where there is a huge oversupply and Brisbane with a potential oversupply problem.</li>
</ul>
<ul>
<li>Avoid the large generic developments sold off the plan in the center of major cities. While these might seem shiny and new, they quickly lose their lustre when people realise they lack character and the timeless appeal that puts property in continuous strong demand. Usually the majority of buyers in these soulless complexes are investors, while owner occupiers – the true driving force behind real estate values – tend to stay well away in preference of something more established or in a boutique block.</li>
</ul>
So next time you're shopping for an investment remember that it's not the size of the property that counts, it's the size of the profit you'll realise at the end of the day!
Michael Yardney is a director of <a rel="nofollow" href="https://www.metropole.com.au/">Metropole Property Strategists</a>.
 
 
 
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Warning, but yes small apartments offer big property investment possibilities: Michael Yardney

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A couple of years ago at an property show in Sydney, I noted the abundance of overseas property investment stands.
Whilst most were related to the US, Thailand, and Bali, there were a couple of stands fronted by New Zealand specialists.
At the time I was focused on other things and did not really entertain the prospect of investing in the Kiwi market.
However, after doing some further digging recently, I uncovered more about our neighbour to the East, Aotearoa; the ‘Land of the Long White Cloud’.
Today I thought I’d provide a few of the pros and cons I perceive for investors considering the New Zealand market.
Whilst my findings are certainly very limited, and my own knowledge of, and experience in, this market is limited to many snowboarding trips and a few tongue-in-cheek jokes, I think New Zealand is certainly a market to consider for those who can see value in offshore property investment.
As merely a ‘tourist’ in my coverage of this market, I am keen to here from other Australians who have had residential property investment experience in New Zealand.
No doubt there are many further pros and cons that I have neglected to mention.
Cons:
Macroeconomic factors that challenge job security:
Some macroeconomic limitations can adversely affect many of the property markets in employment centres such as Auckland and Wellington.
According to Wikipedia, New Zealand overall has a market this is quite connected to international trade partners such as Australia, Europe, USA, China, Japan, and Korea.
However, what comes with these connections are the peaks and troughs that these bigger markets can fluctuate through. What I am getting at is that for a country so heavily dependent on trade with other markets, jobs can be adversely effected at random, in Auckland and Wellington.
Environmental challenges:
The tragedy that was the 2011 Christchurch earthquake changed the city of Christchurch forever.
The quake was the result of what was a previously-unknown defined tectonic plate fault-line until about 2010; leading to the big 6.3 magnitude quake, just outside the CBD area of the city.
Since then the city has been rebuilding and creating infrastructure that is better-equipped for future tremors. Still, the unpredictable volatility of the ground beneath this city has led to many investors recording losses and selling properties at reduced costs in and around this Canterbury region of New Zealand.
Environmentally and ecologically, Australia and New Zealand could not be more different. In Australia, the continent is very secure, with zero tectonic plate faultlines meaning that we can pretty much build what we want, where we want.
Conversely, New Zealand as a nation is constantly reviewing and upgrading needs-assessments for construction projects ranging from small granny flats, all the way up to skyscrapers on the city skyline.
There is actually one main pro and one main con to perceive this moving into the future:
Con: existing dwellings may later be required by law to be ‘future-proofed’. As an investor this is high risk. You could pick up a house for a great rate now, but what happens in a few years when new compliance construction laws come in, requiring you to fortify the dwelling to ensure its compliance with new laws?
The costs involved could completely diminish any further gains-potential from the property, as a viable investment. This trend may or may not be confined to ‘known’ Earthquake-risk areas. I.e. the New Zealand government could nationalise these compliance laws, which could upset the property investment landscape significantly
Pro: This has potential to create the ‘San Francisco Effect’ for property investors. The San Francisco Effect is a term I have just made up then! San Francisco is a city on a limited volume of land – a trait that on its own is enough to effect supply and demand ratios positively for investors – with the added challenge of being earthquake-prone.
This reduces the height of buildings that can be built there, and also the materials able to be used. Ever notice how those pretty three-storey weatherboard homes line the streets neatly in San Francisco and cost a small fortune to purchase? Well, that trend was not down to a designer saying ‘let’s make San Fran a city of really cute, adorable old-fashioned houses and not big concrete-and-glass apartment blocks like every other city’.
No, the materials used and height limits decided are necessary to earthquake-proof the dwellings. This creates further limitations for future city expansion, making those dwellings highly coveted in demand, and thus increasingly returns and values sharply. Cities like Christchurch, which is an important economic hub for New Zealand, could go down this path in the future, meaning that securing a good deal on an earthquake-compliant, well-located property in Christchurch now, could pay significant dividends in the future.
 
<hr class="system-pagebreak">
Pros:
Opportunity exists for year-round holiday investment property types:
Though I mentioned above some challenges with job security due to macroeconomic and international-dependent factors adversely affecting job supply, there are opportunities in New Zealand property in areas not as affected by these drivers.
Take, for example, certain areas of the south island where tourism is high, year-round. In Australia, it is harder to find tourism-dependent property types that can consistently (read: ‘year-round’) provide secure rental revenue.
Here in Australia, the weather greatly affects such areas. For example, in the tropic north, tourists avoid the wet season, making an investment property up there, very seasonal, with a high risk of long-term vacancy during the ‘off’ months.
In cooler tourist areas such as the Snowy Mountains and Tasmania, it changes again, with the demand in the ‘off months’ for each of these regions arguably reducing heavily.
In New Zealand, many holiday hotspots are valued year-round for their appeal. Queenstown in the South Island for instance; is valued in winter for its skiing/snowboarding, yet in summer it can still achieve similar patronage numbers for is river-sports and extreme sports activities along with trails and trekking that is otherwise difficult in winter. Areas with year-round appeal like this can make for solid investments.
Your Australian dollar buys you more:
This is a pretty obvious one but must be stated nonetheless. The AUD certainly performs well when buying NZD currency.
At the time of writing, XE.com reported that 1 AUD will buy NZD 1.22. This is significant when considering the entrance costs to any property investment. Furthermore, regardless of the dollar conversion figure; without a doubt your dollar goes further in many parts of New Zealand when compared to Australia, on an apples-for-apples basis.
Yields can be as significant in some parts of New Zealand as say a US investment. Whilst capital growth may not be as significant as Australia, if you can ‘hold’ a high yielding property for five years, the opportunity to open more doors and grow a portfolio quicker, is significant.
Stamp duty concessions:
When you compare Australia with New Zealand in terms of ‘up front costs’, you cannot help but think somewhat that Australians are being ripped off. The extortionate stamp duty costs attached to investment (aka non-first-home) properties in Australia are amongst the worlds highest.
In truth, it is important to note that ‘stamp duty’ as a tax, does weed itself into a property investor’s balance sheet in some way or another, in many other countries in the world; but it is certainly not as initially prohibitive in the way Australia’s is, when spread out over a longer term or payable later on. For example, in the US, ‘county taxes’ are payable yes, but these are significantly higher than say the ‘council rates’ you’d expect to pay quarterly when holding property in Australia.
This is due, in part, to some of the ‘stamp duty’ tax making its way into county tax costs. The difference is, you do not have to pay an huge sum up front.
This enables you to pour more money into the actual deposit and start your property investment career much more quickly. Well according to a 2012 white paper by Deloitte on ‘Taxation and Investment in New Zealand 2012’, New Zealand does not carry any stamp duty on property purchases. And it gets better; in addition to this, there is no transfer fee/tax on property purchases, along with no national or provincial (I.e. ‘North Island’ or ‘South Island’) land tax on physical plots of land in the country.
Counties and councils will charge their own land rates but these are certainly not as extreme as land tax thresholds payable in states of Australia when you own land of greater values than these thresholds. One thing to be mindful of though, is the way Australians are taxed for New Zealand investment properties.
Whilst NZ will not charge capital gains tax at the point of sale, in Australia you will be liable for tax when selling your NZ property, though this tax rate is in line with your tax rate in Australia. This is as per the CER agreement between the countries. You income from the NZ property whilst you are holding it is taxed at your Australian rate.
However, building depreciation schedules are much better in New Zealand and higher depreciation rates can be claimed on any property (no age restriction like in Australia).
 
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Fostering the ‘Special Relationship’ between Australia and New Zealand in loan terms:
Following on from the taxation incentives of buying, holding, and selling residential property in New Zealand, there are added financial advantages when investing as an Australian that many other non-New Zealand citizens are not privy to.
One of the biggest advantages comes via lenders who operate in both countries. As an Australian, when buying property in countries like the US and UK, investors are often at the mercy of dealing with in-country lenders in these places who, on top of charging higher interest rates on mortgage products, will charge additional set-up fees to foreign investors.
Lenders such as ANZ, however, are able to provide access to Australian citizens, loans securing properties in New Zealand, at competitive interest rates and often-times without any of the additional fees that they may ordinarily charge investors from other countries.
New Zealand is a very business-friendly country:
Seemingly contradicting one of the cons I mention above about the NZ economy being tied to other regions, New Zealand is becoming a very attractive country to do business, and offers many incentives to international business to set up shop there.
Just as some states in the US (Delaware, and Nevada, for example) offer tax incentives and infrastructure support to encourage business to those states), New Zealand offers incentives that countries such as Australia, Indonesia, and Singapore, do not.
According to Wikipedia, back in 2005 the World Bank praised New Zealand for being the most business-friendly country in the world. Being so reliant on its agriculture and tourism industries and knowing it cannot continue to compete with much larger countries in the agriculture and technology sectors, Kiwi’s have cleverly aligned their incentives to their strongest suits, resulting in an economy that continually ‘defies the odds’ that are stacked up against it.
Supply and demand ratios are trending upwards for investors:
In Australia, we know that certain cities (Sydney and Darwin for example) are significantly undersupplied with available properties.
In other words, demand is greater than supply which in turn pushes both rents and values up. This is great news for investors, not so great for aspiring home owners and renters. Other areas though (Melbourne and Gold Coast City for example) have the opposite problem – oversupply, which is not good news for investors but holds potential opportunity for aspiring home owners in those cities).
But how does this differ in New Zealand and what is the trend? According to February 2013 research from Properazzi NZ, supply and demand is varied in the main cities and population centres; so one must tread very carefully, as you would do when considering property in Australia.
No doubt Auckland continues to drive local demand, with supply levels subdued against demand for property, so there are opportunities in this city. However, there are also opportunities in smaller population centres based on demand. The Otago region is one such example. The other ratio in supply and demand is New Zealand’s ageing population. Just like Australia and many other developed countries (Japan, Sweden, Canada etc.), New Zealand is experiencing an ageing population that on the long term, could result in slower population growth. Curbing that however, is an incentivised skilled immigration program and as I mentioned previously.
There are incentives for more international business to set up shop there, which would in turn bring new workers in to New Zealand, which over time would increase the population again.
So, where does this leave us, and what is my verdict (if there is one to be made from my limited findings)?
Well, like most markets around the world, New Zealand is no doubt a market comprised of hundreds of sub-markets, and there is value and risk to be associated with many of these.
Personally I would consider a NZ investment as a component to my portfolio, as I think whilst the potential for rapid capital gains is not as great as Australia, this could be offset by reduced holding costs and overall better mid-long term yield as you progress along with holding property there.
All of the existing Australia-based ‘due diligence’ checklist of items still apply, when canvassing potential properties in New Zealand. However, there are unquestionably some additional items that are specific to this market.
An ‘outside the box’ approach is required to due diligence when contemplating taking a plunge into this market as an Australian.
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> 
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Weighing the pros and cons of investing in New Zealand property: Cameron McEvoy

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First-home buyers can still take advantage of significant financial incentives and savings as state and territory governments prepare their 2013-14 budgets.
Victoria will be the first to announce its state budget on May 7 with Queensland to release its state budget on June 4 and NSW on June 18.
However, time is running out for some first-home buyer grants, which are due to expire at the end of the financial year.
In South Australia the $8,000 Housing Construction Grant (HCG) will expire on June 30. It applies to contracts entered into between 15 October 2012 and 30 June 2013, or in the case of owner builders, where construction commenced between 15 October 2012 and 30 June 2013. A property value cap of $450,000 applies.
And in the ACT, the Home Buyer Concession Scheme (HBCS), offering stamp duty concession to first-home buyers and anyone else purchasing a new home or residential vacant land under certain thresholds, is due to expire on June 30.
Nothing has yet been leaked about possible changes to first-home owner grants and stamp duty savings, but the Real Estate Institute of NSW (REINSW) is already campaigning for the reinstatement of first home buyer incentives in NSW for purchasers of existing properties as demand from this key sector continues to fall.
First-home buyer as a proportion of the mortgage market fell to just 14.4% in February, down from 15% in January, according to ABS figures - their lowest share of the market in more than eight years.
“We are calling on the Treasurer to not only reinstate first home buyer incentives that were removed in 2012, but to also explore additional opportunities to assist first home buyers to take their first step onto the property ladder,” says REINSW president Christian Payne. “It is not too late for the NSW Government to reverse its decision to abolish from 1 January 2012, the stamp duty exemption/concession and from 1 October 2012, the $7000 grant, for those buying existing properties.
A similar campaign could be on the cards in Queensland, which also abolished the $7,000 first-home owner grant for those buying existing properties last year in favour of a $15,000 incentive for those buying or building a new home.
<a target="_blank" href="/news">Changing the name of the scheme</a> from the first home owner construction grant (FHOCG) to the 'great start grant’ in March is unlikely to have made any difference to sentiment.
This is what is currently on offer across states and territories: 
Victoria
On January 1 this year, the state raised its stamp duty discount for homes priced under $600,000 from 20% to 30%.
The higher discount kicked in on January 1, 2013, and applies to both existing homes and new homes, delivering first-home buyers additional savings starting from $600 to a maximum of just over $3,000 on a house price at $600,000.
First-home buyers can work out their stamp duty savings using this table provided the <a href="https://www.sro.vic.gov.au/sro/sronav.nsf/LinkView/C88211C9E07486F0CA2578B70001025018E490D796850F8ECA2575C1008187C7" target="_blank">Victorian government’s State Revenue Office.</a>
Maximum stamp duty savings are now over $9,000. Combined with the existing first-home owners' grant of $7,000 there is nearly $16,000 in savings for those first-home buyers who are willing to venture into the property market in 2013.
The stamp duty discount will rise to 40% on January 1, 2014, and to 50% on September 1, 2014.
To qualify for the stamp duty discount, first-home buyers must also qualify for the $7,000 first-home owners’ grant.
All added up it means Victorian first-home buyers purchasing an existing home receive the highest amount of financial support from their state government.
Further information can be found on the <a target="_blank" href="https://www.sro.vic.gov.au/sro/SROnav.nsf/alltitle/First%20Home%20Owners?open">Victorian government first-home owner website</a>.
 
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NSW
A first-home buyer who purchases a $550,000 new home will get $35,240 in assistance.
This includes a $15,000 grant for first-home owners who purchase or build a new home valued at up to $650,000. The grant is available until December 31, 2013, reducing to $10,000 from January 1, 2014.
Non-first-home buyers who buy a new home are eligible for $5,000 whether the new home is off the plan or newly built with a value up to $650,000, The $5,000 grant is also available to buyers of vacant land that is intended to be the site of a new home valued up to $450,000.
First-home owners are also eligible for a maximum stamp duty saving of $20,240 for homes up to a value of $550,000, with duty concessions for new homes valued between $550,000 and $650,000. The transfer duty exemption cap on vacant land is $350,000, with duty concessions for vacant land valued between $350,000 and $450,000.
Further information can be found on the <a target="_blank" href="https://www.osr.nsw.gov.au/benefits/first_home/">NSW first home benefits</a> website.
Queensland
A $15,000 first-home owner construction grant (FHOCG) is available. The FHOCG applies to new property bought or built at a value under $750,000.
First-home buyers also pay no duty on purchases up to $500,000, with a phasing-out rebate applicable for values up to $600,000.
For non-first-home buyers, the Queensland government offers a concessional stamp duty rate of 1% up to a value of $350,000, with stamp duty charged at normal rates for the remaining value of the home purchase. The buyer must occupy the home for a period of 12 months – an applicant may lose the concession if he sells or leases part or all of the home before moving in or within a year of moving in.
Further information can be found the <a target="_blank" href="https://www.osr.qld.gov.au/first-home-owner-grant/fhog-fhocg-landing-page.shtml">Queensland first home owner grant</a> website
South Australia
South Australian first-home buyers have the chance to secure $23,500 from the state government, provided they build a new home.
The $23,500 handout comprises a doubled first-home owner grant of $15,000 for contracts entered into on or after October 15 and up to a value of $575,000, plus a further $8,500 housing construction grant (HCG). The housing construction grant replaces the $8,000 first-home bonus grant.
The HCG is available to all builders of new homes for properties valued up to $400,000, phasing out for properties valued up to $450,000 where contracts are entered into between October 15, 2012, and June 30, 2013, inclusive.
Concessions could rise to $39,830 if first-tome buyers buy an apartment off the plan in the Adelaide CBD under $400,000, where a stamp duty concession of $16,330 applies.
This part of a new stamp duty concession scheme available on the transfer of a new CBD apartment or a "substantially refurbished apartment" for a contract entered into from May 31, 2012, to June 30, 2014, capped at stamp duty payable on a $500,000 apartment of $21,330.
An example where a $39,830 saving would be available to a first-home buyer is <a href="https://www.realestate.com.au/project-aria+on+gouger-sa-adelaide-600000551" target="_blank">Aria on Gouger Street </a>being developed by Brock Urban Projects, where two-bedroom apartments are priced from $335,750.
Up until June 30 2014, South Australian first-home buyers of established homes are entitled to a $5,000 grant. From July 1, 2014, no first-home owner grant is available to purchasers of established homes.
Further information can be found on the <a target="_blank" href="https://www.revenuesa.sa.gov.au/IamaFHB">South Australia first-home buyer</a> website.
 
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WA
A $7,000 first-home owner grant remains in place for a newly constructed or established home. It does not apply to vacant land purchased to build a new home. The total value of the home must not exceed $750,000 if the property is located south of the 26th parallel of South Latitude, or $1 million if located north of the 26th parallel of South Latitude. First-home buyers eligible for the $7,000 grant pay no stamp duty on homes valued up to $500,000 and up to $300,000 for vacant land. There is also The Home Buyers Assistance Account, which provides a grant of up to $2 000 for the incidental expenses of first home buyers when they purchase an established or partially built home through a licensed real estate agent for the purchase price of $400,000 or less.
Further information can be found on the <a target="_blank" href="https://www.finance.wa.gov.au/cms/content.aspx?id=3868">WA’s Department of Finance</a> website. 
ACT
A $7,000 first-home owner grant remains in place for both existing and new homes where the price of the property or construction of the home does not exceed $750,000. The territory government also offers a Home Buyer Concession Scheme (HBCS) to assist persons in purchasing a residential home or residential vacant land by charging stamp duty at a concessional rate. This scheme ends on June 30 and applies to homes valued less than $450,000 and land valued at less than $263,000.
Further information can be found on the <a target="_blank" href="https://www.revenue.act.gov.au/home_buyer_assistance">ACT Revenue website</a>.
Tasmania
A $7,000 first-home owner grant remains in place for both existing and new homes, with no cap on the value. Tasmanian first-home buyers buying or building a new home (including off-the-plan) are eligible for an additional $8,000 under the First Home Builder Boost Scheme, which applies from January 1 2013 to June 30 2014 if the qualify for the first-home owner grant.
Further information can be found on the <a target="_blank" href="https://www.sro.tas.gov.au/fhog">Tasmania first home buyer website.</a>
Northern Territory
For transaction after December 4 2012, a $12 000 first-home owner grant is available for an established home in the urban area or $25,000 outside of urban areas where the price of the property or construction of the home does not exceed $600,000. An urban area is the Darwin, Palmerston or Litchfield municipalities; Wagait Shire; the Darwin Waterfront Precinct; the “prescribed area” for the Darwin Rates Act, any other area prescribed by regulation.
The Northern Territory Government provides a stamp duty Principal Place of Residence Rebate (PPRR) to persons purchasing a new home or land on which to build a home. A calculator is provided to work out <a target="_blank" href="https://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/StampDuty/StampDutyCalculators/Pages/PPRR-Calculator.aspx">stamp duty payable on a home eligible for the rebate</a>
Further information can be found on the <a target="_blank" href="https://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/HomeOwnerIncentives/Pages/default.aspx">NT treasury page.</a>
 
 
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Still plenty to tempt awol first-home buyers as REINSW campaigns for reinstatement of $7,000 grant in state budget

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Dear Margaret, We are aware of the benefits of having a depreciation schedule compiled for investment properties. Can you tell me if there is any benefit in having a depreciation schedule compiled for one's principal place of residence? Many thanks,
Maria
While I frequently talk about depreciation, I guess we haven’t really painted the picture of how it looks as a bottom line.
Basically, all of the fixtures, fittings and furniture in any income producing property are eligible for you to make a claim for the depreciating value. This is done in consideration for the fact that one day you may have to replace them, and getting the tax breaks can help you to save up for that eventuality.  In a nutshell:
<ul>
<li>Each item has a different rate depending upon its effective life.
</li>
<li>Each year you work out how much value has been ‘lost’ and deduct from the income.  
</li>
<li>No money is lost, only value. That’s why we call it ‘on paper’.
</li>
<li>The same applies to the building but over 40 years
</li>
</ul>
Each movable item has a different rate that you can claim depending upon how long the tax office thinks it will last – usually between 2 and 10 years. This means that each year you work out how much value has been ‘lost’ and take that amount off the income.  
You haven’t lost actual money here, only value, but you do get actual money back as you now pay less tax on the income.  That’s why we call it ‘on paper’. You can do the same with the building, but it takes longer for that to run out, being 40 years
The extra tax you get back helps a lot with your cash flow – in essence the rent, plus your extra tax, make up your cash inflows, while your expenses make up the outflows. Claiming depreciation can mean that you reduce the gap between what comes in and what goes out and helps you to stay in the market longer!
As for your own home, as it does not produce an income there’s no point in having a schedule done as you cannot make any claims there. If you move out and make it a rental, you can have one done at that time.
Margaret Lomas is a best-selling author and writes and hosts the popularProperty Success With Margaret Lomas and heads up the panel onYour Money, Your Call, both on Sky News. She is the founder of <a rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
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Ask Margaret: do I need a depreciation schedule for the home I live in?

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The residential developer AVJennings has unveiled a $41.2 million equity raising to strengthen its balance sheet after hefty property project writedowns early this year.
The new equity will be used to reduce debt facilities, to fund growth objectives and for working capital requirements for its land sites and also the settlement payments for several previous land acquisitions due during the current financial year, including Elysium, The Ponds, Doreen, Eyre and St Clair.
AVJ currently has a significant portfolio of some 10,500 lots under control with many projects now in advanced stages and ready for build-out and development.


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AVJ says they will selectively fund investment in built form at the following projects:
• New South Wales: The Ridges Elderslie, Ravensworth Heights Goulburn, The Ponds Kellyville, Charterwood Wadalba, Arcadian Hills Cobbitty
• Victoria: Arena Officer, Lyndarum Epping/Wollert
• Queensland: Glenrowan Mackay, Essington Rise Leichardt, Villaggio Richlands, Creekwood Caloundra
• South Australia: Eyre at Penfield
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• New Zealand: Hobsonville Point
</div>
</div>
</div>
The developer’s gearing is scheduled to reduce from 23.8% to 15.5%, following the raising with its consolidated net debt to reduce from $111.9 million to $72.7 million on a pro-forma basis as at 31 December.
AVJ has received credit approved term sheets to renew its existing club facility to 30 September 2015.
The well-known Melbourne-based developer, dual-listed on the ASX and Singapore exchanges, has advised that the chairman, Simon Cheong, will take up his full share of the offer.
The remainder - almost half the register - is to be underwritten by brokers, Bell Potter Securities.
The raising will be through a two for five, non-renounceable rights offer at a price of 37.5¢, which is significantly at a discount to the developer’s net tangible asset per security of 90¢. and a 1.3% discount to AVJ’s closing price on the last day of trading prior to the announcement of the offer.
“This capital raising will provide AVJennings with a stronger balance sheet to build on its diversified project pipeline and position the business for growth in the following years,” managing director Peter Summers said.
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With acquisitions due at Elysium, The Ponds, Doreen, Eyre and St Clair, AVJennings seeks $41 million equity raising after hefty project writedowns 

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The Consumer Price Index (CPI) rose  by a lower than expected 0.4% in the March quarter, according to ABS figures released today.
The trimmed mean increased by 0.3% to 2.2% year-on-year while the weighted mean was up 0.5% to 2.6% year-on-year with both measures of underlying inflation well within the RBA’s target inflation band of 2% to 3%.
This gives the RBA scope to cut the cash rate further if it deems it necessary.
Through the year, headline CPI rose 2.5% compared with a rise of 2.2% through the year to the 2012 December quarter.
Economists surveyed by Bloomberg last week forecast a 0.7% rise in the headline inflation rate to 2.8% year-on-year with the trimmed mean and the weighted mean forecast to rise 0.5% to 2.4% year-on-year.
"It is clear that at present inflation is not an issue, meaning that rates can stay lower for longer," commented CommSec economist Savanth Sebastian.
"Underlying inflation is tracking smack in the middle of the Reserve Bank’s 2% to 3% target band.
"Effectively the low inflation result ensures the Reserve Bank can maintain an easing bias and not feel an urgent need to shift to a more neutral stance in the next few months," he added.
The most significant price rises in the March quarter 2013 were for new dwelling purchase by owner-occupiers (+1.7%), pharmaceutical products (+7.6%), tertiary education (+6.5%) and tobacco (+3.7%).
The most significant offsetting price falls were for international holiday travel and accommodation (–5.2%), furniture (–6.8%) and fruit (–7.0%).
The overall housing component of inflation rose 1.2% in the March quarter 2013 with the other main contributors to this rise - apart from new dwelling purchase by owner-occupiers - being electricity (+2.4%) and rents (+0.8%).
Over the twelve months to the March quarter 2013, the housing group rose 5.1% with rises in all categories. The main contributors to the rise were electricity (+17.1%), rents (+3.5%) and new dwelling purchase by owner-occupiers (+2.8%).
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Inflation up lower than expected 0.4% in March quarter with rise in new dwelling prices noted

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The property market is a slow moving beast and when you are able to pick up on the trends and get on board, it allows you to make better investment decisions.
BIS Shrapnel’s emerging trends in residential market demand report released this week picked up on one of the most powerful trends driving the property market.
The report suggested that members of Gen Y are about to embark onto the next phase of their lives. These children of baby boomers grew up in the suburbs and when they left home, moved closer to the city looking to be close to lifestyle amenities and work.
They are now aged between 20 and 34 and are searching for a bit more room as they plan to settle down and start a family. While I agree with the findings in this report I would suggest this trend has been happening for some time and was started by the Generation X.
Gen Xers are now in the late 30s and 40s and many grew up in middle suburbs such as Vermont, Burwood and Oakleigh. Their parents who are now in their 70s and 80s started the urban sprawl in the 50s and 60s as they moved into these areas that were dominated by the first brick veneer homes.
As the Gen Xers got older they went searching for a more dynamic lifestyle than the sleepy suburbs had to offer. They pushed into to areas such as Richmond, Elwood and Fitzroy and either rented or purchased a property.
As they approached their mid 20s to 30s, the same age the Gen Yers are now, they went searching for more space. They had fallen in love with the inner urban lifestyle and wanted to maintain this as much as possible.
Many did not want to move back to where they grew up because it was too far away from the ‘action’ so they searched for areas that put them on the door step of they lifestyle they had become accustomed to. Run down houses in areas such as Camberwell, Hampton, and Northcote were snapped up by the Gen X’ers and strong capital growth in these areas followed.
1 Hartley Street, Northcote (pictured below) is a typical example of what they were looking for. It sits on over 500m2 of land, is close to the city, cafes and pubs and at the time was affordable with scope to improve the house. It was purchased in 1999 for $314,000.
<img alt="armstrongapril24one" height="398" width="470" src="/images/stories/2013/04/armstrongapril24one.jpg">
Today these owners have made a lot of money with the property now worth over $1 million. That is a growth rate of almost 10% compounding each year since it was purchased.
Now it is Gen Y’s turn. They are following a well-worn path established by the older generation. The difference now is many of the areas the Gen Xers moved to are out of reach as in most cases the entry point is a $1 million or more.
So the market has began to pulse out to more affordable areas. Suburbs such as Preston, Brighton East and East Burwood are now feeling the heat from the Gen Y’s who are striving to emulate what the Gen X’s have pulled off.
Last weekend this property at <a target="_blank" href="https://www.realestate.com.au/sold/in-12+taylor+ave%2c+burwood+east%2c+vic+3151/list-1">12 Taylor Avenue, Burwood East</a> went to auction.
The agent quoted the property to sell for $600,000 to $650,000. This quote was viewed as realistic as a slightly smaller but comparable property around the corner at <a href="https://www.realestate.com.au/property-house-vic-burwood+east-108277006" target="_blank">59 Lenna Street</a> failed to attract a bid at auction less than 18 months earlier. It eventually sold for $595,000.
However intense competition to get into this established area drove the price and the property sold for $772,000. This was a huge result and illustrates directly what the BIS Shrapnel is saying.
Getting into these markets is going to be more difficult for the Gen Yers however as they are not just competing with each other. These areas are also highly sort after wealthy immigrants coming to Australia from places such as China and India and this will put further pressure on capital growth.
Regardless of the reasons you buy a property either as a home or investment I believe we should always have one eye on its growth potential. The demographic movements of a population are a vital trend to understand and harness if we want to make the most of our property investment dollars.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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