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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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 As Australia Day is all about celebrating, many will do so in a picturesque alfresco pavilion or deep into the back garden of one's own home.

From separate kitchens to mega barbecues, Property Observer looks at the many different places where you can celebrate next year if you are in the market for a new property.

Located on <a href="https://www.realestate.com.au/property-house-vic-point+leo-107582313" target="_blank">Frankston Flinders Road, Point Leo</a> Victoria, this three-bedroom limestone and timber residence offers a Tuscan-inspired alfresco courtyard and outdoor kitchen (pictured below).
<img src="/images/stories/2013/01/ptleo.jpg" height="314" width="470" alt="ptleo">
While you sit back and eat lunch, you can bask in the views across Western Port Bay to Phillip Island and The Nobbies.

After lunch, you can wander through the 10 hectares of property or hit the ball on the tennis court.

Further down the bay is the four-bedroom, five-bath <a href="https://www.realestate.com.au/property-house-vic-portsea-112328231" target="_blank">Dreamweaver property</a> (pictured below), located on Cheviot Road, <a href="/news">Portsea</a>.
<img src="/images/stories/2013/01/chevriot1.jpg" height="353" width="470" alt="chevriot1">
You can start Australia Day in the undercover breakfast teppanyaki area on the east side, which captures the morning sun.

With a 20-metre heated lap pool and spa, you can work up an appetite for lunch before settling into the designer cabana with a full Corian outdoor kitchen, including a barbecue, dishwasher, rangehood and bathroom.

You are spoilt for choice with activities including a tennis court, an Olympic sized in-ground trampoline and a home theatre.

Or sit above the tennis court on the deck chairs and enjoy the views across Portsea and the bay.

<a href="https://www.rs.realestate.com.au/property-house-vic-rythdale-112448459" target="_blank">The Dale</a> is located on McGregor Road <a href="/news">Rythdale, </a>Victoria, and comprises of two residences on a 52-hectare block.
<img src="/images/stories/2013/01/rythdale.jpg" height="295" width="470" alt="rythdale">
This property boasts an outdoor entertaining area with a covered, paved patio (pictured above) and a built-in gas barbecue.

As the day fades, you can unwind in the home cinema or pop into the red gum wet bar in the family room for a drink.
 
<hr class="system-pagebreak">
 
A <a href="https://www.realestate.com.au/property-apartment-vic-st+kilda-112604455" target="_blank">St Kilda penthouse</a> located on The Esplanade has <a href="https://www.propertyobserver.com.au/victoria/st-kilda-penthouse-with-luna-park-views-fishing-for-new-%24225-million-owner/2012121358466" target="_blank">previously caught Property Observer’s eye</a>, but what better way to spend Australia Day than on your own private rooftop?
<img src="/images/stories/2013/01/luna3.jpg" height="353" width="470" alt="luna3">
The rooftop alfresco entertaining area (pictured above) has a built-in barbecue and full guest bathrooms.

Offering views over St Kilda and the iconic Luna Park, this rooftop would be suited to the city-lover who loves bright lights and the faint noise of a distant rollercoaster.

The two-bedroom, three-bathroom penthouse is currently listed with an asking price of $2.25 million.

This <a href="https://www.realestate.com.au/property-house-vic-brighton-112679927" target="_blank">five-bedroom home</a> (pictured below) is located on Victoria Street in the popular Melbourne bayside suburb of <a href="/news">Brighton</a>.
<img src="/images/stories/2013/01/vicst.jpg" height="353" width="470" alt="vicst">
It boasts an outdoor barbecue area with a separate temperature-controlled wine storeroom.

After lunch, you can dip into the 20-metre heated pool and spa or relax in the living room – which has sliding glass walls that open out to Japanese-inspired gardens.

Last but not least, this home (pictured below) is located on a 4,051-square-metre block on <a href="https://www.realestate.com.au/property-house-nsw-terranora-112685815" target="_blank">Winchelsea Way Terranora NSW.</a>
<img src="/images/stories/2013/01/terranora.jpg" height="353" width="470" alt="terranora">
The four-bedroom home has a detached alfresco dining area, complete with a kitchen and built-in barbecue and teppanyaki grill.

While sitting in the dining area you can overlook the in-ground saltwater pool, and if you overdo the food and drinks there’s a lift to take you up and down between floors.

Property Observer previously reported on the Brisbane listing of rugby league sportsman <a href="https://www.propertyobserver.com.au/queensland/darren-lockyer-s-brisbane-house-for-sale-in-tough-selling-season/2011072850958">Darren Lockyer’s property</a>.
<img src="/images/stories/2013/01/lockyerbbq.jpg" height="225" width="400" alt="lockyerbbq">
It came with a large in-built barbecue (pictured below), big enough to befit any Queenslander sportsman.
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ntrotman-Et3xWpamVh

Snag a hot barbecue for Australia Day: Properties with casual outdoor dining spaces

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Last week I had the benefit of attending the <a href="https://www.realestateconnect.com/nyc13/index" target="_blank">Inman Connect conference</a> in the USA. I like getting to Inman each year; it’s a great way to keep up to date with new technologies, trends and evolutions in best practice that are relevant to the real estate sector. This year was no different, so I thought I would share some of the things I thought were most interesting.
I’ll be sharing my notes over two parts – the first part explores what Bradley Inman calls ‘the latte vision’ and the second covers off on some of the new trends, apps and utilities that are starting to emerge in the US as must haves and must dos across the property sector.
One of the key themes this year was what they call the ‘latte vision’, where purchasing a property will eventually become as easy as purchasing a coffee. While I don’t really agree that buying or selling a property will ever be that streamlined (you don’t need finance approval before buying a coffee, for example!), however, I absolutely agree with the philosophy that the property transaction can be made much more efficient.
Digital document transfer, administration and signing is already happening to varying extents in Australia; US agents are arguably further down the track with applications like Docusign, Dropbox and, to a lesser extent, Dot Loop firmly entrenched in the their workflow.
In a more practical sense, the ‘latte vision’ means more than moving to a paperless transaction environment; it means that a large amount of the paperwork ceases to exist. Speakers at Inman were looking forward to a time when buyers are financially pre-approved on site with a tap of their smartphones. At the same time their phone transfers vital details like contact details and preferences back to the agent. Their mobile device would also download the latest research, comparable sales, brochures and neighbourhood information. Documents are created and controlled in the cloud, pre-populated with cross-referenced data sourced from a variety of databases. Signatures are digital and documents can be executed on any platform that has access to the internet (be it a mobile phone, tablet or computer).
<a target="_blank" href="https://www.inman.com/news/2012/09/28/make-mechanics-homebuying-easy-purchasing-a-latte">Bradley Inman gives an entertaining summary of his latte vision here. </a> From a personal level though, he seems to gloss over or miss completely the inherent complexities involved in a real estate transaction, the role of the agent as an intermediary and consumer mistrust of what can be seen as privacy invading technologies. These factors are going to be significant hurdles to the latte vision. Additionally, there are other regulatory obstacles – banks need to be comfortable with digital signatures and transfer, and we need to be sure that these digital documents are completely enforceable.
 
<hr class="system-pagebreak">
 
Not only would a paperless transaction be more efficient, it would also be more secure and help to minimize the risk of fraud (digital records are much easier to cross reference and data mine).
Some elements of the latte vision are already here, some are just around the corner, and some might be just fanciful thinking for the foreseeable future. What is certain is that the way real estate is bought and sold is already changing. To make progress here in Australia, the first steps will involve greater acceptance of digital documentation and digital signatures. We need to see greater collaboration between the banking, insurance, legal and real estate sectors, and also of course with State Governments who administer the titles. Cross-referencing data sources and digital transfer of information will be a critical element in improving efficiencies of the transaction.
Agents who have jumped from the analog to the digital age early have gained some serious competitive advantage for themselves. For those looking to gain the first mover advantage here in Australia (it’s not too late) it would be worthwhile checking out some of the trends and applications I have outlined below and look up your own US case studies. When technologies are moving this fast, it becomes hard to catch up if you get left behind.
From a completely different perspective, another speaker was direct in his cynicism of the latte vision, reminding the audience that you can dominate social media, be well and truly into the cloud and fire off digital documents all day long, but the secret to a successful business is always going to be hard work. I think the secret sauce will ultimately involve both!
Tim Lawless is national research director of <a target="_blank" href="https://www.myrp.com.au/">RP Data.</a>
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tlawless-5VLUrbAk9s

Will buying real estate soon be as easy as buying a coffee? 

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NSW will be the epicentre of a housing construction recovery in 2013 following years of underperformance, according to the latest Business Outlook report from Deloitte Access Economics.

Deloitte is forecasting a 9.7% rise in private housing investment in NSW in 2013-14 followed by annual rises of 9.3%, 8.4% and 11.1% in the three subsequent years to 2016-17.
This lift in housing construction, which should “comfortably outperform the size and speed of the national recovery”, is expected to drive an overall improvement in the state’s economy.
Click to enlarge
<a href="/images/stories/2013/01/deloittejan25.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/01/deloittejan25thumb.gif"></a>
“New South Wales’ housing sector is expected to see some good news – which will be something of a welcome change for a perennial underperformer," says Deloitte.
“In the main that is due to lower mortgage rates, with the latter expected to work their usual magic, but it also helps that land release is expected to accelerate, and that while rental vacancy rates have increased, they are still signalling a need for new housing stock.
“Moreover, while we note the news on the population front has been less than impressive, it is still true that overall population growth in NSW is improving.
“That won’t generate a massive housing recovery, but NSW’s performance should better than in other states, if only because its housing construction sector has been so weak for so long,” says Deloitte.
Other good news includes job growth lifting from early 2012 lows, nearly full hotels due to healthy numbers of business travellers and a "pretty full" NSW Government’s capital spending agenda is pretty full with investment in roads and railway and on the commercial front, projects like Barangaroo and the redevelopment of the Sydney Convention Centre at Darling Harbour.
It isn’t all positive news in the NSW property market with Deloitte noting that rental vacancy rates are climbing, while approvals for renovation work remain in the doldrums.
The recover in housing construction in NSW is part of a national recovery sparked by lower interest rates.
Alongside housing construction, Deloitte also expects a recovery in the retail sector from the second half of 2013 onwards as the mining boom “hurtles towards a peak” in 2013.
Howerver, it says the Australian dollar is “still giving manufacturing a Chinese burn, and the news also remains modest in both tourism and international education” - all key non-mining sectorst that need to life to take up the slack from mining investment peaking.
As a result, the report anticipates that lower interest rates are set to linger.
Looking at the other states , the report has favourable economic expectations for WA, Queensland (though not completely out of the woods) and the Northern Territory, with more modest expectations for Victoria and the ACT and gloomy ones for Tasmania and South Australia.
Victoria, Deloitte says, is more dependent on the Australian dollar (where as NSW is interest rate sensitive) meaning a recovery is further off with the state's economy losing a little momentum in 2013.
And while the report says interest rates are expected to also have a positive impact on housing construction in the state, it notes that Victoria’s housing construction sector is “no longer the 400 pound gorilla that it was for some years”.
“The key albatross on the outlook is simply this state’s past successes in housing activity – which means it hasn’t got anything like the pent-up demand evident in some other key states.
“As we have often noted, that leaves the overall housing construction outlook in this state projected to be solid enough, just somewhat less impressive than it is for other parts of the country,” says Deloitte
Rate cuts and accelerating population gains are expected to spell “rather better news in the housing construction sector in Queensland” while Deloitte says in WA leading indicators of housing construction activity have been “showering sparks all over the dragway as they accelerate after a period of slowdown”.
The biggest problem facing the national economy is the “Godzilla-like “strength of Australian dollar, which Deloitte says remains a problem for job prospects in a range of sectors and which is acting against a welcome pick up in migrant numbers.
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lschlesinger-FZcF9M3vE6

NSW to lead national housing construction recovery: Deloitte

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Queensland-based bank Suncorp financed 6.1% of all first-home buyer loans arranged by AFG mortgage brokers over December, according to new AFG figures.
It was the top-ranked lender outside the major banks with nearly 40% of all first-home buyer home loans processed in December either financed by the Commonwealth Bank or its subsidiary Bankwest, the latest AFG’s quarterly Competition Index shows.
Second on the non-major bank list was AFG’s own mortgage products, which accounted for 5% of all first-home buyer loans, up from 1.9% at the start of the year.
The other non-major bank lenders to appeal to first-home buyers were WA government-owned lender KeyStart with 4.9% of the market, recording the “most dynamic performance among non-major lenders” growing market share from just 0.1% in January.
ING Direct (2.1%) and South Australian government lender Homestart (1.1%) were the only other non-major bank lenders to pick up more than 1% of the first-home buyer market.
According to the index, the CBA accounted for 29.6% and Bankwest for 9.3% of all first home loans in December with the major banks taking 77.5% of the first-home buyer mortgage market.
The Commonwealth Bank’s success with first-home buyers has helped it pick up overall mortgage market share, which has risen from 17.4% in January to 20.7%
Despite accounting for nearly one in 10 first-home buyer home loans in December, Bankwest’s share of the total mortgage market has fallen from 7% to 4.2% over the past 12 months.
AFG bills itself as Australia’s largest mortgage broker, with its brokers writing one in 10 home loans in Australia.
NON MAJOR LENDER MARKET SHARE FIRST HOME BUYERS DECEMBER

Suncorp 6.1%

AFG 5.0%

ING 2.1%

Citibank 0.7% -

Macquarie 0.2%

Circle 0.2%

AMP 0.4% -

ME Bank 0.8%

Liberty 0.4%

Pepper 0.1%

Homestart 1.1%

Wide Bay 0.8%

Adelaide 0.1%

Heritage 0.3%

Rock 0.1%

Keystart 4.9%

Other 0.3%

All Non 22.5%

 
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Suncorp ranks as top non-major bank first-home buyer lender as Commonwealth Bank grabs lion’s share of market: AFG

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The Sebel Hotel in Mandurah, which forms part of the Point Residential Apartments, has been sold by Accor Asia Pacific for about $15 million.
The buyers of the 89-room hotel are entities associated with FJM Property, a Perth company with a list of quality hotel properties already to their name.
Once a holiday town and fishing village, <a target="_blank" href="/news">Mandurah</a> has now become effectively an outer suburb of Perth, being 50 minutes from the Perth CBD situated about 70 kilometres south of Perth. But is retains its tourism attraction.
 Accor, Australia’s largest hotel operator and one of the biggest in the world, has retained management of the 4½ star hotel. Rob Cross, David Kennedy and Ryan McGinnity of CBRE Hotels handled the sale of the hotel.
FJM is led by property veterans Adrian Fini, Barry Jones and David Mack and has projects, including hotels, in <a target="_blank" href="/news">Leederville </a>and <a target="_blank" href="/news">Claremont</a>, across Western Australia. The portfolio includes <a target="_blank" href="https://www.fjmproperty.com.au/FJM-Hospitality/The-Boat-Mindarie-Marina-Complex">The Boat marina complex at Mindarie</a>.
Adrian Fini has been involved in the property development, property investment and construction industries in Western Australia since 1977 and Adrian’s private investment companies have been in partnership with Barry Jones and David Mack’s private investment companies since 1989. He was formerly managing director of Fini Group and following its merger with Mirvac in 2001 was cheif of the expanded Mirvac Fini business. He was subsequently appointed an executive director of Mirvac Group responsible for Mirvac’s development division before resigning in 2010 to concentrate on FJM’s projects.
Barry Jones founded the Criterion Group of private investment companies with David Mack in 1987. Since then, the private group has grown its property and business holdings predominantly in the retail, office and hotel property areas.
David founded Mack &amp; Co, chartered accountants, in 1978 and was a managing partner at the firm until 1987.
The Sebel property was one of two freehold hotels in the Mirvac portfolio that Accor bought last year. Accor have since also sold the Newcastle Beach Novotel to Australia’s largest private hotel owner, Jerry Schwartz, for about $16.5 million.
On the Sebel Mandurah's listing last July the Australian Financial Review reported $18 million price hopes along with $20 million hopes by Accor for the Newcastle offering.
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jchancellor-FAypfDUnLy

The Sebel Mandurah sold by Accor Asia Pacific for $15 million

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Now is a good time to become a landlord, but you must do it properly
I suggest a serious look at investing in property and renting it out to tenants.
There are several reasons for this outlook, including soft house prices, strong rental demand and the prospect of solid total returns.
You ideally want to buy the property at a time when real estate is in the downturn phase of its cycle, you want to rent it out when rental demand is high, and these two factors should come together to produce a total return that not only beats inflation but also compares favourably with alternative investments.
One of the first rules of buying property is that you must not overpay. This is important for two reasons: firstly, you don’t want your income from the property being overshadowed by high mortgage repayments; and secondly, capital growth in the property is as important as the monthly cashflow from rental income, and you will enjoy greater capital gains when you buy the property for a lower price.
With property prices having been flat or going backwards for two years, it seems like a good time to buy.
Property can also be looked at in terms of affordability, and affordability is attractive for investors right now.
Rismark says disposable incomes per household have risen about 15% further than capital city dwelling values since the end of 2003.
When many people buy investment properties, they simply want to buy the cheapest place they can find and rent it for the highest rent they can charge. I advise potential landlords to hold out for a property that is in a sought-after area, close to shops, transport and schools.
There is no point having a rental property that you can afford when no one wants to pay you to live in it.
Then you have to look at rental demand because when you buy an investment property, you are going into business as a landlord.
On this score, there’s some good news for property investors. Weekly rents across the capital cities rose 1% over the December 2011 quarter and are 6.3% higher than at the same time last year.
This suggests rental demand is exceeding supply, which is good for landlords. Anecdotally, you hear stories of people queuing to see the good properties and offering to pay more rent than advertised to secure the property.
While this is a good result financially, it’s also a benefit in terms of tenant management. One of the biggest headaches for a landlord is a bad tenant, but when demand is strong you don’t have to take the first applicant. You can pick the tenant who is best suited to your property and who has the best record.
If you feel you can buy cheaply in the current property market and you can take advantage of the strong rental demand, then you have to think about your total return.
As a final hint to first time property investors, I would urge you to take professional advice before entering into this: consult a solicitor or accountant about your tax position as a landlord, use an insurance broker to get the right insurances, and spend some time finding the right property management company.
It’s a good time to be a landlord, but only if you do it properly.
 
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A smart savings portfolio comprises property, bonds, bank accounts and term deposits
These last few years have been confusing for Australians thinking about retirement: when they look at what the experts have done with their money, they see it going backwards, or growing very slowly.
The 2010-11 APRA figures over the decade to June 2011 show that the average return in large super funds was 3.8%per year. That was the overall average: retail funds earned just 2.9%. After accounting for inflation, which has averaged about 3% over the same period, savers have received little-to-no “real” return.
One of the standard “expert” remarks about investing is that you have to skew your super to higher-returning equities, or you won’t have enough to retire on. But global shares suffered 40-50% losses in 1987, 2001, and again in 2007-08.
The other extreme is to ask you to accept very low returns on your money for little or no risk.
I believe in a “middle way” solution: a portfolio comprising a mix of short-term bank accounts and term deposits combined with variable rate bonds.
By diversifying your portfolio across these investments, the risk you are taking is not much higher than cash and much lower than equities – while receiving very attractive returns.
Many big fund managers and most financial planners do not steer their clients into these products. While many offer bond-based products, when you select the ‘default’ setting in your super fund, you are normally placed in a “balanced fund”, which typically gives you a total exposure to cash and bonds of not much more than 10%.
In other words, the super option most Australians are in – “balanced” – will have you about 80% to 90% exposed to Australian shares, global shares, and “equity” risk in commercial property, private companies, and hedge funds.
Recently, one of our branch principals at Yellow Brick Road dealt with a retiree in Queensland with $800,000 in a bank account, earning less than 2% per annum. By putting his cash into a portfolio that exposed him to both institutional bank accounts and variable-rate Australian bank bonds, this retiree will now earn an extra $25,000 per annum.
Another case is a Sydney family who sold an investment property and needed to park $705,000 before they bought another home in six to 12 months’ time. This family was going to put the money in a bank’s “bonus” savings account paying 5.2% for a few months, which then dropped to a very low 3.5%.
Instead, they will now likely earn an extra $9,000 per annum by investing in a diversified portfolio of bank deposits and bonds.
The point I try to get across to those who are worried about retirement – or who are unhappily retired – is that they have to get their minds out of the approach of 100% or 100% bank accounts.
There are smarter solutions out there for you. Start by becoming informed, and always get advice before you act.
 
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Do your homework and don't be greedy when investing in property: Mark Bouris
 
Most of us have focused on the cash rate cycle in recent times, but there’s another cycle I’m interested in: property.
Australian property prices were inflated leading up to the GFC, and then they started falling. Property prices fell more drastically in some of the major cities than in others. However, investment property was hit hard. Many investment apartments were liquidated, as households switched their outlook from debt to savings.
But it could be time to look again.
There are a few observations behind this: firstly, interest rates are near 50-year lows, so debt is cheap.
Secondly, rental vacancies in capital cities are low, meaning strong demand for rental properties.
Thirdly, although house prices are now moving upwards in some cities, it’s a slow recovery nationally, meaning there is value for smart buyers.
Lastly, employment is still strong in Australia, meaning you can find a lender for an investment property.
Where would you start? Personally, I would rather make a profit on my property and pay the tax than be negatively geared, which entails booking a loss. Going for “yield” means buying well and having good equity in the property, so the costs don’t overcome the revenues.
However, if you want to negatively gear a property you must ensure you have an adviser because the ATO does not accept mistakes in your calculations.
But for the basics of what to look for in an investment property, I really like the check list used by RUN Property:
Location: buy close to shops, train stations and schools; Scarcity: Art Deco and scarce architecture increases demand; Features: properties with views, outdoor living spaces or units with off-street parking; Demand: which can be seen in median valued properties, low rental vacancy rates and infrastructure which can support employment; and don’t forget capital growth and rental yield.
Regionally, it’s the mining areas where rental yields are strongest: the Bowen Basin and Port Hedland provide high gross rental yields.
When it comes to owning rental property, always do your homework, talk to experts and be realistic (not greedy).
And good luck.
Mark Bouris is executive chairman of <a target="_blank" rel="nofollow" href="https://www.ybr.com.au/">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
<a href="https://www.flickr.com/" target="_blank"></a>
These three articles were originally published on Property Observer in 2012.
 
 
 
 
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Property as part of your investment portfolio: Three of the best of Mark Bouris

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In the last few years overseas con artists have managed to sell two properties in Perth that they didn’t own.
This was devastating not only to the rightful owners of these properties, but also to the real estate agencies caught up in this dreadful situation.
In both so-called Nigerian property scams, the criminals were able to fool the selling agent, the settlement agent, the banks and Landgate that they were the title holder and could sell the property.
Once the transfers had occurred and the sales settled it became apparent that everyone had been duped, including the legitimate owners of these houses.
These property scams had been possible because identity checks had not previously been a requirement as part of the listing process when selling a home. However, as technology has advanced it has become possible for scammers to fake an identity and present themselves to a real estate agent as the legitimate owner of a property when in fact they are not.
In response to these frauds, the state government has implemented a system whereby the seller of a property must produce evidence of identity in much the same way as you do when you open a bank account or sign a mobile phone contract.
This means a 100-point check in most cases, through which the seller has to produce a series of different identity documents such as a passport, driver’s license, rates notice, bank statement and birth certificate. It is almost impossible for such multi-layered counterfeit to occur and hugely reduces the risk of property fraud.
This system has now been in place for two years and real estate agents are finding that the identity checks for people selling property have been well received by the public.
Some agents were initially concerned this new onus on sellers might meet with some resistance, especially from long term and repeat clients well known to the agent, but REIWA members report that the public respects this new requirement and embraces it.
When sellers are unable to be with the agent at the time of listing their property they must have their identity documents sighted by a witness such as a JP, doctor, police officer or pharmacist. This may be inconvenient to some sellers and agents, but it’s a small price to avoid another scam.
If you are a seller and wanting to list your property with an agent, don’t be surprised when your real estate agent asks you to provide a series of identification documents to confirm your bona fides even if you have known the agent for a long time.
As a seller your co-operation in this regard is helping to safeguard the community and deter the fraudsters.
David Airey is president of the <a href="https://reiwa.com.au/home/default.aspx" target="_blank">Real Estate Institute of Western Australia.</a> This article was originally published on <a href="https://reiwa.com.au/Faq/Pages/Feature.aspx">reiwa.com</a>.
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How to stop property scammers selling homes they don't own

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ABC’s Media Watch called this week to ask what I thought about media coverage of real estate issues.
I said I could tell them if they had a couple of days to spare. It’s a bit like asking Greens politicians how they feel about the mining industry.
Journalistic coverage of real estate in this country is beyond dreadful. Organisations with vested interests pump out propaganda in the form of press releases and so-called journalists recycle them. No questions asked. Nothing checked. No background research. No alternative views sought.
In other words, no journalism takes place. We need a new name for the process of press release recycling that has replaced the genuine journalism that took place in former times. Journalism is no longer an accurate description.
There are “journalists” working for major metropolitan newspapers who write articles only when a press release drops on their desk. The quick re-write they throw together usually appears with a picture byline, implying that they are an authority, that the information thereunder is all their own work and that what you are reading has credibility.
People and organisations with propaganda to peddle or simply with a passion for publicity know this. Fire off a press release and “journalists” will do your marketing for you. If it’s something sensationally negative, your chances of success increase exponentially.
I’ve spoken to many of these pretend journalists. Some are so comfortable in their mediocrity they actually think they’re doing a good job. Others know that their output is garbage but they don’t care – it’s a living.
In some cases, it’s criminally negligent. Elderly people have lost their retirement savings because media misinformation led them towards disastrous investment decisions.
This is why the erosion of journalistic standards in the reporting of real estate is so serious. The financial commitment involved in a real estate purchase is huge, and consumers need good information to make sensible decisions.
Australia needs people to invest for many reasons, including to provide for their retirement so as not to burden the state in times of rising numbers of retirees. If consumers make bad decisions because their heads are full of media misinformation, their financial lives can be destroyed, and the nation suffers.
Which brings me to an annual event which illustrates the failings of real estate journalism more than any other situation: the publication of a piece of self-serving propaganda called the Demographia International Housing Affordability Survey.
This document is political posturing by vested interests and should never be featured by any media outlet in Australia. It is published by a lobby group that campaigns for the end of government regulations that restrict the activities of land developers. The group argues that regulation causes prices to rise and makes homes unaffordable. It has created a political document masquerading as research to support their views.
Members of this group are particularly feverish in their condemnation of prices in Australia and usually declare that we have the world’s most unaffordable real estate – despite the fact that their “research” features only six nations. Nowhere in Europe is included, nor any nation or city in Asia except Hong Kong. Africa and South America are ignored.
Press releases from the Demographia zealots lobbed in newspaper offices this week. Their treatment by publications around the country was scandalous. Their extreme claims were published unchallenged. No alternative views were sought. The outrageously inaccurate contention that Australia has the most unaffordable housing in the world was reported as fact.
“Australian housing tops world’s least attainable list” was typical of the headlines that appeared around the nation. Most of the headlines were, essentially, lies.
In my perfect world, there would be a commission of inquiry and the people who wrote this garbage would be charged. Journalists have an obligation to the public to present information that is fair, accurate and balanced. Failure to do so should be a criminal offence.
In essence, journalists no longer give a damn. If it’s a cheap and easy headline of the type journalists instinctively like – something sensationally negative – then no questions are asked.
Is it true? Who cares? It’ll sell a few papers.
My first rule of successful property investment: stop reading newspapers.
Terry Ryder is the founder of <a target="_blank" rel="nofollow" href="https://www.hotspotting.com.au/">hotspotting.com.au</a> and can be <a target="_blank" rel="nofollow" href="https://www.twitter.com/hotspotting">followed on Twitter</a>.
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Demographia headlines on supposed 'unaffordable Aussie housing' lies and propaganda: Terry Ryder

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Only Sydney and Perth vendors ended 2012 with lower private treaty discounting necessary to secure sales, according to Australian Property Monitors. Hobart and Canberra vendors were required to greatly amend their asking prices to achieve sales, the December APM figures suggest.
Click to enlarge
<a href="/images/stories/2013/01/apmjan22.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/2013/01/apmjan22thumb.gif"></a>
Over the past year the amount of vendor discounting required to secure residential property sale is much lower in all capitals except Canberra and Hobart, a heat chart released by APM shows.
In Sydney, the average discount required in December 2012 was 6%, compared with 6.1% in November and 6.4% in December 2011.
Melbourne recorded a monthly increase in the required discounting, jumping from 6.9% in November to 7.2% in December. But this is lower than the required 7.8% in December 2011, APM research analyst Clinton McNabb said.
The limited sales in Darwin was not sufficient for a figure. 
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Vendor discounting lower in Sydney, but up in Melbourne and Brisbane in 2012: APM

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Rising house buying activity in the last 12 months and greater enthusiasm from buyers suggests Demographia’s has overstated the severity of housing affordability in Australia, says Australian Property Monitors chief economist Andrew Wilson.
The hotly-debated Demographia survey ranked Australia as the third least affordable housing market in Australia behind Hong Kong and Canada.
Sydney ranked as the third most expensive major housing market in the world - with a median multiple of 8.3 topped by Vancouver in Canada at a multiple of 9.5, and, most expensive, Hong Kong where the multiple sits at 13.5.
Wilson says that any measures of unaffordability are certainly not affecting the market place in terms of buyer activity and prices growth.
“So we need to look very carefully at the concept of what is unaffordable,” he says.
“Does unaffordable mean inability to buy, because in Sydney buyers are up and about?”
Wilson warns that it is “always dangerous” to aggregate market not even Australia wide but capital city wide and characterise them as unaffordable.
He says buyers are “still very enthusiastic about purchasing properties in Australia”
“We are definitely seeing a better period of housing market activity over the last 12 months than we did for the previous 12 months,” he says.
“That means that affordability, if it means the capacity to buy houses, has improved,” he says.
The Demographia survey finds that Australian housing affordability improved marginally from 6.7 to 6.5, with anything under a score of three deemed affordable.
Demographia measures affordability by dividing the median house price with the median household gross annual income before tax.
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