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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

Joel Robinson

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

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

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

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

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

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

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

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

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

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

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

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

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

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The latest housing data has confirmed News Limited economist Stephen Koukoulas’s belief that house prices will rise around 10% in 2013. 
Adding to this data, Koukoulas believes that a trifecta of factors - low interest rates, high immigration and improved affordability – make such a price rise "close to certain”. 
Speaking on the ABC's Inside Business yesterday, Koukoulas said he thought house prices were set for a strong up trend.
"We have had a bigger improvement in affordability in the last two to three years following what was clearly excessive house price growth up until the last few years.
"We have about 12% wages growth, house prices are about 5% off their peak and interest rates are very low, so affordability has improved dramatically," he says.
Helped by growing migration and a lack of houses being built in the past, he expects housing to do "particularly well".
January housing data released by RP Data has house prices up 1.2% over January with all the major capital cities recording gains over the month, <a href="/news">led by Brisbane, Perth and Sydney</a>. 
Also last week, The Housing Industry Association’s reported new home sales rose 6.2% in December after rising 3% in November and 3.6% in October. 
“That is a thumping 13% lift in sales in the final three months of 2012, an impressive lift after home sales were in the doldrums around the middle of last year,” said Koukoulas in his latest column for Business Spectator. 
Other signs that housing is on track for double-digit growth in 2013, says Koukoulas is home building approvals (indicators of future construction) are lifting. 
“From the low in April 2012, the number of approvals has lifted more than 20% which points to the housing making a decent contribution to GDP growth, he said. 
Koukoulas also points out that the share price in companies related to the home building industry “have skyrocketed in recent times” including building materials provider Boral up 60% since the middle of 2012 and commercial property developer Leighton Holdings up nearly 50% over the same period. 
“The housing sector is set for a strong performance in 2013. 
“There are likely to be strong rising house prices, higher home sales and a lift in construction," he says.
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House prices to rise 10% this year as part of upward trend: Koukoulas

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Mortgage lender RAMS has waived application fees and settlement fees for first-home buyers as part of a new campaign aimed at helping them move from renting to buying.
The campaign is being promoted by a new television commercial, which aired for the first time last weekend.
RAMS has also waived the account keeping fees on its RAMS Low Rate Home Loan with Introductory Rate Option, during the introductory rate period.
According to the lender, this could save first-home buyers up to $1,590 in fees.
“We understand the frustrations of FHBs who tell us they are in a rental rut and are delaying purchasing a property due to their inability to afford repayments and fears of unemployment in an uncertain economy," says RAMS chief executive Melos Sulicich.
“We have listened to their concerns and created genuine options designed to renew first-home buyer confidence and reignite their passion and drive to take the first step to home ownership."
RAMS says it is also helping first-home buyers by requiring only a 5% deposit with a full-doc loan (plus funds to cover transaction costs), if they meet our other lending criteria.
The lender has also cut its two-year fixed rate from 5.39% to 5.25%.
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RAMS waives fees for first-home buyers

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The “wide gulf” that exists between prices and rents suggests that housing in Australia is overvalued, argues Deakin University researcher and housing bubble proponent Philip Soos.
Soos points to RP Data’s most recent Buy vs Rent, which he says shows that unless you’re willing to buy in remote or unattractive locations, it’s cheaper to rent then own property.
The RP Data report found that out of 5,230 suburbs, there are 388 suburbs that are cheaper to buy than rent based on a standard principle and interest home loan. This rises to 1,031 suburbs if borrowers are willing to pay an extra $50 a week in mortgage repayments.
While a more realistic study would factor in costs such as "maintenance, council rates, water and sewerage, land tax, body corporate levies, stamp duty, and legal and conveyancing fees"  Soos says it does provide some evidence to suggest a "confirmation of overvaluation in the residential real estate sector, that is, the market price of property is significantly greater than future rents capitalised”
As further evidence of this claim, he points to the rising <a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/0bd6ea4d7e0e401eca257300000473fc/dbccae23bff9983eca257b03007e58e6/bodyrich/0.1218!OpenElement&amp;FieldElemFormat=gif">ratio of real house prices to rents</a> which have increased by 64% from trough to peak (1997-2007) with some moderation recently due to falling housing prices and rising rents in the last two years.
Currently the ratio is about 160% (house prices to rents) and Soos says it serves as one of many indicators to determine possible overvaluation in the real estate sector.
“It comprises a valuable metric and thus should not be ignored,” he says.
According to Soos, this divergence between house prices and rents suggests “confirmation of overvaluation in the residential real estate sector, that is, the market price of property is significantly greater than future rents capitalised”.
Furthermore, he says it indicates the Australian property market is not operating in an efficient manner.
“Conventional economic theory stipulates that, in an efficient property market, the all-in risk and tax-adjusted cost of purchasing a property should equal the cost of renting it,” writes Soos in a column for Business Spectator.
“If buying is dearer than renting, then supposedly rational individuals will change their preference by selling, taking the profit, and renting, driving down housing prices until the cost of buying equals the cost of renting,” he says.
Soos says what is driving up the difference between house prices and rents is “debt-financed speculation”.
While rents are determined by wages and what tenants can afford to pay, capital values are driven by banks willingness to provide finance to home owners and investors “limited only by lending regulations (if banks choose to observe them) and borrowers’ ability to service the mortgage repayments”.
 
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Disconnect between rents and house prices suggests housing is overvalued: Philip Soos

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Due to the lengthy forewarning of the September federal election, the election is unlikely to have a detrimental effect on the property market, according to Leanne Pilkington general manager of Laing+Simmons.
Pilkington says September is usually the month the market picks up due to the weather warming up, and the election date may cause a slight delay in spring campaigns being launched.
Although Pilkington says any potential delay will be short lived.
“It could be argued that a September election is preferable to October or November, as once the election outcome is finalised, the spring selling period can move into full swing,” says Pilkington.
“Buyers will still feel they have time to make a considered purchase and vendors need not rush to accept prices lower than their expectations.”
“In the five to six weeks leading up to an election, which is a more typical campaign timeframe, we would expect to see the market slow down until an outcome is finalised, as buyers take a wait-and-see approach and sellers react accordingly,” she says.
Pilkington also says both buyers and sellers will be eager to understand the policy positions of the Government and Opposition as they relate to the property market.
Depending on the policies announced, Pilkington says the election might have the effect of bringing forward demand before September 14 or delaying activity until an outcome is known.
First homebuyers are the main section of the property market that will be impacted by an election outcome, as grants and incentive programs are targeted at this buyer category.
Pilkington also says that vendors whose properties suit this buyer profile will be equally interested.
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September election unlikely to have a detrimental effect on the market

<html><body>Leading Sydney estate agent ?John McGrath<a href="https://www.facebook.com/public/John-McGrath" target="_blank"> has listed on his Facebook page</a> the 10 reasons why he believes the residential market will be 5% to 10% higher by the end of 2013.   1. The Australian share market is recovering quickly, and this will generate (and replenish) great wealth for many Australians.  2. China is on the surge with an 8% anticipated growth rate this year (and beyond), and we will benefit more than any other country.  3. We have record low interest rates, with existing and new borrowers reaping the benefits making property more affordable. 4. We have a nationwide housing shortage and will for some time, so demand will outstrip supply in an improving sellers market. 5. Cash and term deposits are becoming far less attractive, and many people will see the time is right to switch from cash into growth assets.  6. Rents will continue to climb in the face of the housing shortage providing investors increasing yields over the next few years.  7. Self-managed super funds (SMSF) investing directly in residential property is the biggest change I’ve seen in the last 12 months 8. Luxury homes are back by 20%-40% in value and will provide great buying for the recovering professional market buyers (read <a href="/news">Palm Beach</a> weekenders are about to become mega popular again!).  9. Most experts are tipping a landslide change in federal government, which will give great confidence to the business community. 10. As all the above happens in our connected community we’ll see a surge of confidence and FOMO (fear of missing out), which will stimulate continued investment over the next three- to five-year cycle.</body></html>

The 10 reasons why Australian property prices will rise 5% to 10% in 2013: John McGrath

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Over the years, I have discovered that successful investors do things in a certain way that helps them become rich, while others continue to do things differently and in general they tend to struggle.
I’ve come to the conclusion that when you do what most successful investors do, you get to become one of them, and if you don't – you won’t.
With 2013 panning out to be another challenging year in property, let’s look at six simple reasons most investors will never get rich and how to make sure you do:
1. Most people wait too long to start
Most people can’t wait to succeed; yet they are willing to wait to get started on the road to riches.
Many investors are waiting for everything to be “perfect” before they get going.
They wait for the right time in the cycle, the right property, the right economic environment or the right interest rates: which means they never get going.
The longer you wait to get started with your investing, the longer it will be before you get the money, success and freedom you want. It takes time to grow real wealth. It takes time for the power of compounding to work its magic.
You need to understand that the timing will never be perfect or you will never have all the information you want. You need to develop the confidence to make an investment decision based on knowing enough and realising that you will learn the rest along the way.
2. Fear stops them
Fear keeps many of us from getting what we want, especially in matters of money.
Be honest with yourself and count the number of times fear has prevented you from taking action, and in the process cost you a lost financial opportunity.
In the matter of property investment, fear holds many investors back.
Some fear taking on more debt, others fear failure and some even have a fear of success (will my friends still like me?).
Successful investors have learned to harness their fears and rather than focus on the negatives, they use fear to force them into positive action.
For example, rather than allowing fear of debt to stop them taking on the commitment of buying a property they use the fear of not moving forward with their investments to motivate them.
They use the fear of being stuck in their job for the rest of their lives, without the financial independence that they are craving, to motivate them to take on the commitment of an investment property.
Money and success lives on the other side of fear.
3. Waiting until they know enough
The fear of not knowing enough prevents other investors from getting started.
However, the irony here is that the more you learn, the more you learn you don't know!
Once you start learning some basic investment concepts you suddenly realise there are a whole lot more things about investing or property that you don’t understand.
That's the paradox of knowledge: The more you learn, the more you learn you don't know.
The trap is that many investors think that the way to escape this paradox is to learn even more, so they read more books, go to more seminars, listen to CDs and watch DVDs.
As they learn more they find a whole heap more things they don’t yet know.
The key is to recognise that while you don't know it all, and you never will, you do know enough to get started with your investing and you will learn more along the way as you apply your knowledge in the real world, surviving any mistakes and challenges along the way.
 
<hr class="system-pagebreak">
 
4. Focusing on linear income instead of passive income
It is important to realise that not all income is created equal. Some streams are linear and some are passive.
Linear income is what you get from a job. You work for an hour and get paid once for that hour's work, and that's it. If you don’t turn up to work you don’t get paid.
Passive income is when you work once but you continue to get paid over and over again from work you're no longer doing. The way to become wealthy is having passive income coming in whether you go to work or not.
Wouldn’t it be nice to be paid hundreds of times for every hour you work?
That’s what happens to property investors. Initially they work long hours, save up a deposit and then invest it into a property.
Now their money starts working for them and keeps giving them sound investment returns “passively” in the form of capital growth and rental returns. Rather than getting another job, the wealthy people know they need to send their money out to work for them.
To put it simply: if you're not making money while you sleep, you'll never become rich.
5. Not using systems for making money
A system for making money is something that takes the emotion out of your investment decisions and makes the results more reproducible.
My preferred system is investing in high growth property. In particular I invest in high growth properties in areas that are in the upturn stage of their property cycle.
I buy them below replacement cost and then add value through renovations or redevelopment.
I rarely sell these properties. I borrow against the increasing equity in my property portfolio to buy more properties.
Once you create a proven system for making money, there is no limit to the money you can make.
 
6. Not being patient
Warren Buffet once said: “wealth is the transfer of money from the impatient to the patient”.
To become a successful property investor requires patience and persistence. You must not only get started, but you must continue on and follow through.
Residential property is a long-term investment. It’s not a get-rich-quick scheme.
Yet many investors speculate rather than invest. They look for that “big deal” which will land them a jackpot in a short period of time.
In general these types of deals rarely occur and if you find one, it will likely be speculative in nature and riskier.
The problem for many investors is that the successful buy and hold strategy I advocate is boring and others consider it slow. But successful property investment is a long-term affair.
Many investors look for the latest fad or try finding the next hot spot or speculative growth areas. Other investors consider other types of investments with potentially higher returns.
When you are tempted to do this, remind yourself that real estate has been the number one long-term multi-millionaire maker throughout Australia’s history, yet most people that speculate in the latest fads have not made much money.
You don’t have to look for the latest fads or the latest speculative growth areas if you create your own capital growth through buying a good property at a fair price, then adding value through refurbishments, renovations or redevelopments.
By doing this you are manufacturing your own capital growth.
So, it's really quite simple...
Decide to do these six things that successful property investors do and you are much more likely to become a successful and wealthy property investor. If you don't do them, then like most people, you may never get rich.
 
 
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Update</a> blog. Subscribe today and you'll receive a free video training - The Golden Rules of Property Investment. 
Here’s a bonus reason for you…
Another reason so many investors fail is that they try and do it all themselves. The inconvenient truth is that there is no such thing as a self-made millionaire.
Successful investors build a great team around them and have mentors and models – they learn from people that have already achieved what they want to achieve.
They look for people who give them independent, unbiased advice, and that's what Rolf Schaefer, Mario Borg and I will be doing at my National Property &amp; Economic Update - Outlook for Property Investors 2013 around Australia in March and April.
<a href="https://propertymarketupdate.com.au/">Click here</a> for more details and reserve your seats now.
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Six reasons most property investors struggle and never become rich

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The release of December data from Residex appears to confirm that Melbourne house prices probably went nowhere in 2012.
Residex reports a 1.5% rebound in Melbourne house prices in the final quarter of the year, but with house prices still down 1.4% over the year with a median value $566,000.
Unit prices dropped 1.4% over the quarter to end the year down 4.3%, with a median price of $427,000.
The Residex figures means that two data providers – Residex and RP Data – have Melbourne house prices down over 2012, while two – the Real Estate Institute of Victoria (REIV) and Australian Property Monitors (APM) have them up.
Melbourne houses
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td colspan="4" width="491" valign="top">
House price changes
</td>
</tr>
<tr>
<td width="133" valign="top">
 
</td>
<td width="114" valign="top">
Quarter
</td>
<td width="134" valign="top">
2012
</td>
<td width="110" valign="top">
Median
</td>
</tr>
<tr>
<td width="133" valign="top">
RP Data
</td>
<td width="114" valign="top">
-1.5%
</td>
<td width="134" valign="top">
-2.9%
</td>
<td width="110" valign="top">
$550,000
</td>
</tr>
<tr>
<td width="133" valign="top">
APM
</td>
<td width="114" valign="top">
+2.4%
</td>
<td width="134" valign="top">
+0.5%
</td>
<td width="110" valign="top">
$526,000
</td>
</tr>
<tr>
<td width="133" valign="top">
REIV
</td>
<td width="114" valign="top">
+7.8%
</td>
<td width="134" valign="top">
+4.7%*
</td>
<td width="110" valign="top">
$555,000
</td>
</tr>
<tr>
<td width="133" valign="top">
Residex
</td>
<td width="114" valign="top">
+1.54%
</td>
<td width="134" valign="top">
-1.41%
</td>
<td width="110" valign="top">
$566,000
</td>
</tr>
</tbody></table>
Melbourne units
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td colspan="4" width="491" valign="top">
Unit price changes
</td>
</tr>
<tr>
<td width="133" valign="top">
 
</td>
<td width="114" valign="top">
Quarter
</td>
<td width="134" valign="top">
2012
</td>
<td width="110" valign="top">
Median
</td>
</tr>
<tr>
<td width="133" valign="top">
RP Data
</td>
<td width="114" valign="top">
-2.7%
</td>
<td width="134" valign="top">
-2.5%
</td>
<td width="110" valign="top">
$435,000
</td>
</tr>
<tr>
<td width="133" valign="top">
APM
</td>
<td width="114" valign="top">
+1%
</td>
<td width="134" valign="top">
+2.2%
</td>
<td width="110" valign="top">
$391,000
</td>
</tr>
<tr>
<td width="133" valign="top">
REIV
</td>
<td width="114" valign="top">
+4.2%
</td>
<td width="134" valign="top">
+1.3%*
</td>
<td width="110" valign="top">
$456,000
</td>
</tr>
<tr>
<td width="133" valign="top">
Residex
</td>
<td width="114" valign="top">
-1.37%
</td>
<td width="134" valign="top">
-4.28%
</td>
<td width="110" valign="top">
$427,000
</td>
</tr>
</tbody></table>
*The REIV figures compare December quarter 2012 figures with December 2011 quarter figures. APM and RP Data are annual changes over 2012.
Averaging out the four property data providers indicates, as suggested by <a href="https://www.propertyobserver.com.au/victoria/melbourne-residential-property-market-on-the-mend-property-observer-navigates-the-muddling-median-maze/2013013059037">Property Observer before publication of the Residex figures</a>, that property prices in Melbourne hardly moved in 2012.
The average house price change for Melbourne is 0.2% over 2012 while units fell 0.8%.
Residex had Sydney as the top-performing detached house market over 2012 (up 4.91%) with Perth the strongest performing unit market up 10.89%.
Residex chief executive John Edwards says that overall, 2012 was a better year for Australian property than the previous 12-month period.
“Additionally, the past few weeks will have helped consumers gain higher levels of optimism as there has been positive news surrounding the US economy and little negative news out of Europe. Lifted confidence should flow into higher levels of housing market activity,” says Edwards.
“On the other hand, the floods currently being experienced in Northern NSW and Queensland will be having a dampening influence on these markets. Some slowing in the economy will drive unemployment, which will also have some moderating impacts. However, we shouldn’t get too carried away with moderate increases in unemployment as we are coming off all but full employment.
“On an Australia wide basis, capital growth in the house and land market achieved its best performance in the last 18 months. Weekly rentals also increased, with rentals for houses and land maintaining real value while units outperformed inflation by about 3%. Rental increases are good news and much needed as the sector’s capital value is either stagnant or just maintaining real value. This should be expected to continue,” he says.
<a target="_blank" href="https://blog.residex.com.au/wp-content/uploads/2013/01/Australian-Property-Market-Statistics-December-12.jpg">The full set of Residex results can be found here.</a>
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Melbourne houses and units end year in the red: Residex

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Melbourne and Adelaide will be "the worst-performing markets for house price growth in 2013," according to modelling by the National Australian Bank.
While not anticipated to be in negative territory, they are expected to continue to lag behind the capital city average, with state economic conditions and employment prospects in both these states also expected to remain tougher.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/01/nabjan311.gif" title="Click to enlarge"><img src="/images/stories/2013/01/nabjan311thumb.gif"></a>
Source: NAB
Despite relatively subdued credit lending overall, NAB notes the Australian housing market had shown intermittent improvement as the effects of lower interest rates, an uptick in growth in real rents and sound underlying fundamentals had supported recent improvements in house prices.
"With very accommodative monetary policy now firmly in place, another 75 bps of rate cuts pencilled in by NAB this  year and a continuing shortage of dwellings, it is possible that we will see resumption in national house price growth in the years ahead," says NAB. 
"However, job insecurity may act as a constraint during 2013.
"Our modelling indicates that capital city average house prices will rise by around 1½% through the year to end-2013 and 3% in the year through to end-2014, which is slightly higher than <a target="_blank" href="https://www.propertyobserver.com.au/news/australian-house-prices-to-rise-21-over-next-two-years-nab/2013013059038">the average survey forecast</a>."
It notes house price divergence between the states is likely to persist, with the ‘multi-speed’ nature of the Australian economy also "very apparent" across state housing markets.
Perth is tipped to lead the nation in terms of house price growth with capital gains forecast to run at around 3.5% through the year to end-2013 and 5% in the year through to end-2014, underpinned by improved affordability, population growth and above average state economic growth. Sydney (2.1% and 3.7%) and Brisbane (1.7% and 3.5%) also out-perform the national average.
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jchancellor-FAypfDUnLy

Melbourne and Adelaide will be the 'worst' performing markets in 2013: NAB modelling

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Big-box retailing is in full swing in Australia, with the local arm of bulk buying group Costco receiving yet another $50 million from its parent company in order to fund further expansion after reporting its first profit.
The move comes as the bulk buying industry <a href="https://www.smartcompany.com.au/advertising-and-marketing/048283-costco-gets-140-million-from-parent-to-fuel-expansion" target="_blank">continues to expand</a> in Australia, with Costco planning an expansion which will bring <a href="https://www.smartcompany.com.au/retail/050601-costco-to-announce-new-store-within-weeks-aims-at-three-stores-in-sydney-and-melbourne" target="_blank">multiple stores</a> in capital cities across the country. The business received $140 million in 2012 to help open new stores.
But while Costco has made an impressive stamp on the food and grocery market in Australia, some analysts believe it isn't the supermarkets which should be scared. Instead, as companies such as Costco and Aldi expand, experts say it's the wholesale market that should be worried.
"The biggest losers here are the wholesalers," says City Markets analyst Peter Esho. "Costco is a wholesale model rather than a mainstream supermarket."
"It's going to nibble into Coles and Woolworths, and IGA, but I don't think at this stage there is going to be too much impact."
Esho points to Coles' own financial results, released today, which show food and liquor sales increased 3.9% in the second quarter on a like-for-like basis.
New figures lodged with the Australian Securities and Investments Commission show Costco turned a profit of $9.73 million during the year to September 2012, while revenue also doubled to over $609.5 million. According to Fairfax, the Melbourne and Sydney stores generated most of that revenue, a large portion of which comes from membership sales.
Costco Australia managing director Patrick Noone told SmartCompany the business is continuing its expansion plans, and is constantly looking for new locations.
"We're always searching," he says. "Always looking at ways to do things better."
However, he did say the lack of property available for big-box sites has been a challenge. "The lack of availability has been a problem," he says.
The business plans on opening locations across the country, including two or three locations in some cities. Adelaide is a possibility soon, although Noone said a Perth location may not arrive for a while.
The introduction of Costco into the Australian market has signalled a surge of big-box retailing. The local big-box industry has pushed for new laws to help businesses find suitable land more easily, as they require larger than normal sites.
Noone said Costco usually puts its case forward regarding zoning laws - its Auburn location in Sydney suffered some delays due to zoning disputes.
But the expansion of Costco shouldn't make supermarkets feel uneasy, says Esho. He argues the company is playing on a different field.
"I think ALDI is very well placed to defend itself, it has its own brands, exclusive brands, that run on a low cost model and are competitive. I think the impact on ALDI would be minimal."
ALDI has expanded to nearly 300 stores since opening here in 2001. Esho says the main impact will be directed at the German company, along with other wholesalers.
"There might be an impact if wholesaling draws people away from the main supermarkets, where that migration sees people buying at Costco and ALDI for main products instead of Coles and Woolworths."
Wholesalers will feel the pinch, he says. <a href="https://www.smartcompany.com.au/retail/053438-metcash-takes-on-costco-with-launch-of-value-depot-warehouse-stores" target="_blank">Metcash was in a position to be hurt</a>, but the company has already restructured itself in anticipation of Costco's expansion.
Costco Australia managing director Patrick Noone has previously said the business wants to expand with two more stores in 2013. A second Melbourne store in the eastern suburb of Ringwood is currently being constructed.
Esho says despite the expansion plan, the existing grocery market doesn't have a lot to be worried about.
"I don't think at this stage there'll be too much of an impact, at least not at this stage – and it won't for at least a decade."
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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pmcstafford-pr9eMARWoN

Australian Costco gets $50 million boost and turns its first profit

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Sydney house and unit prices rebounded in the final quarter of 2012 to finish the year at record highs, according to full year figures from Australian Property Monitors (APM). 
Sydney house prices rose by 2% over the quarter to be up 3.4% for the year with the median price rising to a record $656,415, the first time the median price has been above $650,000 and are now $10,000 above their previous peaks.
Canterbury-Bankstown was the top performing region with the median house price increasing 11.5%, however prices did fall on the lower north shore by -0.4%.

Sydney unit prices gained 2.3% over the quarter to be up 5.6% for the year and also posted a record median price of $475,314.
The rises for the quarter were based on upwardly revised September quarter figures. 
APM revised the Sydney’s median house price for the September quarter from $641,890 to $643,578, while the median unit price was revised from $458,562 to $464,572. 
Australian Property Monitors senior economist Dr Andrew Wilson says Sydney again “illustrated the resilience of its housing market”. 
Wilson says the Sydney market revival is being driven from the middle upwards rather than from the top down with changes to first-home buyer grants in 2012 bringing forward demand while change-up buyers also become active.
“We are seeing a lot of activity in the middle price section of the Sydney market between $500,000 and $900,000, and that’s what is pushing up those median house prices to record levels," he said in an interview on AFR TV.
Wilsons says the prestige market in Sydney, which has to date been the ‘weak link” in the market, may also start to grow in 2013.
<img alt="apmjan31" src="/images/stories/2013/01/apmjan31.jpg" width="470" height="294">
Nationally, house prices rose by 1.9% over the quarter to finish the year in positive territory – up 2.1% to a median of $542,299. 
Unit prices increased by 1.6% over the quarter to be up 2.4% for the year with a median price of $417,123. 
September quarter figures were also revised. 
The median house price was revised downward from $533,480 to $532,274, while unit prices were upwardly revised from $406,415 to $410,508. 
All capital cities recording house price gains over the quarter – the first time this has happened since March 2010. 
“I think it is no coincidence that we have historically low interest rates and we are just starting to see a consistent rise in confidence in housing markets," says Wilson.
But he tempered this by saying capital cities and sub-markets are still performing at different levels. 
“We are still seeing the fractured type of outcome."
Sydney is the only capital city market where house prices are above their previous peaks, but APM expects that based on current trends, Perth, Canberra and Darwin will achieve record house prices in 2013. 
Wilson says the property market rebounded “as expected in 2012” on the back of the “general improvement in affordability and confidence” due to record low interest rates fuelling increasing buyer activity. 
Excluding the volatile Darwin market, Perth was the top-performing capital city market over the year, with house prices up 6% over the quarter and unit prices up 6.1% to medians of $560,780 and $365,132 respectively.
Perth’s September median house price was upwardly revised from $537,237 to $547,160, and its median unit price upwardly revised from $348,293 to $352,961. 
Wilson says the Perth price rises are being driven by around 1,500 people arriving each week in Perth and by a tightening rental market and rising rents, pushing more people into the house-buying market. 
Melbourne house prices gained 2.5% over the quarter to end the year just in positive territory – up 0.5% to a median of $526,281 with units up 1% for the quarter but still down for the year at -2.2% and a median of $390,651. 
Brisbane house prices increased by just 0.3% to be down 0.5% for the year (median of $433,302) but Wilson said this small quarterly gain was significant “as it signalled a revival in activity after a lengthy period of price falls”.
Of some concern to investors would be the Brisbane unit market – the epicentre of dozens of new apartment projects – where prices fell 2.7% over the quarter to be down 3.2% for the year, making it the worst performing house or unit market for the year. 
Adelaide continues to remain the most affordable mainland capitals with as median house price of $432,309.   “Looking ahead in 2013 activity will depend on the direction of local economies as it is no coincidence that the better performing housing markets in 2012 reflected better performing economies - particularly in regard to unemployment levels,” says Wilson.
“With a rising share market and an improving international outlook, the general economic landscape and prospects remain optimistic which is unequivocal good news for Australia’s recovering housing markets,” he says.
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