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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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In a market where we are seeing a rising number of property listings, it is more important than ever to ensure that when your home hits the open home circuit, it’s playing the part.
Unfortunately the old ‘throw some cookies in the oven’ trick just doesn’t cut the mustard anymore. In fact, the mouth-watering aroma of freshly baked treats is so yesterday. The new must-do property preparation, which surfaced in the United States in the '80s, has well and truly hit Australian shores – property staging.
Essentially, property staging allows sellers to create the ideal home experience for buyers. Experts say that although a buyer may only include certain items on their dream home checklist, they are also subconsciously affected by the not-so-obvious surroundings – which may in turn affect their purchasing decisions. Property staging professionals are trained to incorporate those surroundings into your home in order to achieve those subliminal effects.
A professional stager will assess the property’s current décor, consider the targeted buyer audience and showcase the space accordingly. It’s not just a matter of smart furniture and replica artwork, either. Staging allows the home’s most unique architectural features to really shine and maximises the available space to capitalise on a buyer’s interest.
According to Queensland property staging company Styled By Me, a potential buyer is 63% more likely to buy a property that is presented as a ‘ready to live in’ look. And REIQ-accredited agents have reported that a staged home can decrease time on market and increase potential profit.
This service can also allow a property a renewed lifespan on the market. If a home has been for sale for a significant period, an internal transformation can attract a wider group of buyers and refresh the listing’s presence. Additionally, when a home is completely vacant it’s difficult to ascertain the purpose of particular spaces. When a property is staged, the buyer has a clearer understanding and perspective of each space. And naturally your investment in staging will reflect in the images used in your property’s marketing campaign.
It is even rumoured that prestige residential rentals and commercial and retail leases are getting on the property staging train to ensure they snag the right type of tenant for their property.
So if you’re the type that likes to keep up with the real estate Joneses, it’s time to throw out the cookies and make sure your property is playing the part.
Amanda Haack is events manager journal deputy editor at the <a href="https://www.reiq.com/" target="_blank">Real Estate Institute of Queensland</a>. This article originally appeared on the<a href="https://reiqblog.com/" target="_blank"> REIQ blog.</a>
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ahaack-6499LRWKce

Forget the freshly baked treats: How professional styling can increase your home's selling price

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Queensland is the state requiring vendors to slash asking prices most to secure a sale, according to a RP Data study.
The state accounted for 19 of the top 20 suburbs where vendors gave the greatest reductions on their initial asking price.
Stapylton, situated some 45 kilometres south of Brisbane, topped the list, with an average required vendor discount of 32%.
Next was Eli Waters, near Hervey Bay, as a close second with 31.5%.
The Queensland tourist town Airlie Beach came third with an average discount of 29.4%.
<img src="/images/stories/2013/01/qlddiscount.jpg" width="470" height="747" alt="qlddiscount">
The only suburb not in Queensland in the top 20 was Wannanup in Western Australia. 
<a href="/news">STAPYLTON </a>QLD -32%
<a href="/news">ELI WATERS</a> QLD -31.5%
<a href="/news">AIRLIE BEACH</a> QLD -29.4%
<a href="/news">RUSSELL ISLAND</a> QLD -28.1%
<a href="/news">COOCHIEMUDLO ISLAND</a> QLD -27.4%
<a href="/news">WOWAN</a> QLD -27.3%
<a href="/news">BLACKBUTT </a>QLD -27.3%
<a href="/news">PORT DOUGLAS</a> QLD -26.4%
<a target="_blank" href="/news">POINT LOOKOUT</a> QLD -26%
<a target="_blank" href="/news">CLIFTON BEACH</a> QLD -25.9%
<a target="_blank" href="/news">BAUPLE </a>QLD -25.1%
<a target="_parent" href="/news">NEWELL </a>QLD -24.6%
<a target="_blank" href="/news">MERMAID BEACH</a> QLD -24.6%
<a target="_blank" href="/news">BILINGA </a>QLD -24.6%
<a href="/news">WANNANUP </a>WA -24.6%
<a target="_blank" href="/news">INNISFAIL</a> QLD -24.4%
<a target="_blank" href="/news">DINGO BEACH</a> QLD -24.4%
<a target="_blank" href="/news">WONGAWALLAN </a>QLD -24.1%
<a target="_blank" href="/news">COOKTOWN </a>QLD -24%
<a target="_blank" href="/news">KARRAGARRA ISLAND</a> QLD 24%
Source: RP Data average vendor discount - 12 months to October 2012
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jchancellor-FAypfDUnLy

Queensland accounts for 19 of the nation's 20 highest property vendor discount suburbs

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Today, I look at 10 of the traditionally pre-eminent guises of investment risk but specifically as they apply to Australian property investors.
1 Market risk (or systematic risk)
Market risk may affect all investments in an asset class in a similar manner, such as in the event of a market-wide price crash. As such, market risk that cannot easily be mitigated through diversification. While buying properties in different states might diversify market risk to a partial extent, if the wider property market crashes diversification is unlikely to assuage the systematic risk successfully.
Property investors should additionally invest in other asset classes which tend to move in a non-correlated manner to real estate. Property investors can also focus upon a longer investment time horizon which allows correcting markets greater opportunity to recover.
2 Liquidity risk
Equates to the possibility that an investor may be unable to buy or sell an investment when desired (or in sufficient quantities) due to limited opportunities.
Illiquidity is a salient risk in real estate. It is difficult to sell a property quickly should the need arise, which is not the case for large-cap stocks or government bonds. Liquidity risk in Australian property is best mitigated through investing in landlocked capital city suburbs with eminent demand and constrained supply.
3 Specific risk (or unsystematic/business risk)
Equities investors and fund managers talk much of specific or business risk, being the measure of risk associated with a particular stock or security. Also known as unsystematic risk, this typically refers to the risk associated with a specific issuer of a security. Businesses in the same industry may have similar types of business risk, and issuers of stocks or bonds may become insolvent or lack ability to pay the interest and principal in the case of bonds.
Specific risk in property investment is somewhat different, and rather relates to the risk of acquiring a loss-making property or one which delivers sub-optimal returns giving rise to opportunity cost. Specific risk can be mitigated through diversification, although this can represent a challenging proposition in property as dwellings tend to be expensive.
One frequently invoked strategy of property investors is to acquire different types of property in different states. Careful, detailed due diligence and research of any property purchase also tends to reduce (if not eliminate) specific risk.
4 Interest rate risk
Normally refers to the possibility that a fixed-rate debt instrument will decline in value as a result of a rise in interest rates. Where an investor buys a security offering a fixed rate of return, they introduce an exposure to interest rate risk, examples thereof including bonds and preference shares (preferred stocks).
In Australian investment property, the interest rate risk instead lies in variable rate mortgages as the cost of debt capital can materially increase when the Reserve Bank ratchets up the cash rate. The risk can be mitigated through the use of fixed rate mortgages and prudent cash-flow management.
5 Foreign exchange risk (or currency risk)
Arises from a movement in the price of one currency against another. When the Australian dollar appreciates, the value of foreign investments declines. Conversely, if the dollar weakens the value of foreign investments effectively increase.
Presently the strong Aussie dollar attracts investors to overseas investments, in particular to US real estate. A good strategy? Maybe. Our dollar may depreciate and regional US property markets have corrected. But is there a foreign exchange risk in investing overseas? Absolutely, for exchange rates are inherently unpredictable. Few commentators in 2008 opined that the Aussie dollar could ever be worth 110 US cents, and yet it indeed became so.
Currency risk tends to be greater for shorter term overseas investments, which have insufficient time to revert to a mean valuation in the same manner as longer term equivalent ventures.
 
<hr class="system-pagebreak">
 
6 Sovereign risk (or social/political/legislative risk)
Sovereign risk is associated with the possibility of unfavourable government action or social upheaval resulting in investment losses. Governments retain the power to amend laws affecting investments, and rulings which result in an adverse investment outcome are representative of legislative risk. One frequently highlighted legislation risk in Australian property investment is the possible phasing out of the negative gearing tax rules.
Investing in developing or unstable countries variously offers opportunities for substantial returns but, reflecting the principles of the risk-return trade-off (of the CAPM model) may bring a heightened associated sovereign risk.
7 Credit risk
Credit risk normally refers to the possibility that a bond issuer becomes unable to service expected interest rate payments or a principal repayment. Typically, the higher the credit risk is, the higher the interest rate on the bond.
In property investment, credit risk often lies in the investor rather than the lender, although there is of course a possibility that lending institutions can become insolvent as was seen in the US as the subprime crisis played out. Property investors should retain a liquid buffer in order to mitigate the risk of mortgage default.
8 Call risk
Also usually refers to bond issues and the possibility that a debt security will be ‘called’ prior to maturity. In bonds, call risk prevails when interest rates fall, as companies redeem bond issues with higher coupons and replace them on the bond market with lower interest rate issues to save cash.
Can call risk impact Australian property investors? Indeed, but conversely when interest rates run higher. Investors with high exposure to adverse interest rate movements may be considered risky by mortgage providers cyclically. Investors in Australian commercial property have periodically been subjected to the real estate equivalent of a margin call, being forced to reduce debt exposure through the redemption of assets.
9 Reinvestment risk
Usually refers to the risk that future coupons from a fixed-interest investment will not be reinvested at the interest rate prevailing when it was initially purchased, a risk that increases in likelihood when interest rates decline. Zero coupon bonds are the only fixed-income instrument to eliminate reinvestment risk due to having no interim coupon payments.
The most straightforward strategy for property investors to avert reinvestment risk is simple: never sell.
10 Inflation risk
Also known as purchasing power risk, the possibility that the value of an asset or income stream will be eroded as inflation diminishes the value of a currency. The risk is the potential for future inflation to cause the purchasing power of cash inflows from an investment to decline.
Inflation risk is best countered through investing in appreciating assets such as real estate, dividend-paying stocks or convertible bonds, each of which has a growth component allowing them to outperform inflation over the long term. The uplifting news for property investors is that favourably-located Australian real estate is well recognised as a tremendously effective inflation hedge over time.
 <img src="/images/stories/2012/12/wargentbook.jpg" style="margin: 5px; float: left;">
Pete Wargent holds a range of finance and property qualifications and is the author of <a target="_blank" href="https://petewargent.blogspot.com.au/">Get a Financial Grip – a simple plan for financial freedom.</a>
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pwargent-M4siyDbqQY

The 10 risks to be managed by Aussie property investors 

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In positive news for the construction sector, 2% more homes were built in the past quarter than the previous one.
<a rel="nofollow" href="https://hia.com.au/media/~/media/Files/MediaMicrosite/Media%20Releases/Modest%20Rise%20in%20New%20Home%20Building.ashx">The figures</a> released today by the Housing Industry Association show marked increases in New South Wales and Western Australia, with a smaller rise in Victoria.
In NSW new housing commencements increased by 9.5%, triggered in part by changes to government incentives, which saw NSW first homebuyers receive a $15,000 government grant.
HIA economist Geordan Murray says the overall increase was driven by the rise in NSW.
“I would be hesitant to suggest that this growth would be continued,” Murray says.
Western Australian figures rose by 23.6% for the quarter, but Murray says this was because the state was “getting back to where it should be”.
“In April and May changes in the approvals process in Western Australia caused a bottleneck in new home commencements, causing a hold up in the June quarter,” Murray says.
The Western Australian state government implemented changes in April 2012, which affected everything from the design stage to the occupation of the building.
In the December Quarter Murray says the 5000 new home approvals to date suggest a continuing strong result for the state.
Aside from the large increases in Western Australia, New South Wales and Victoria (where there was a rise of 2.9%), the other states recorded drops.
Most notable was Queensland, where new home developments fell by 14.2%.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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pmcstafford-pr9eMARWoN

Housing construction up in NSW, WA and Victoria: HIA

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If you're going to start a new business, you might as well dream big. And launch it in an exotic, beachside location.
That didn't quite happen immediately for entrepreneur Zoe Watson, but her big thinking approach has developed in the two years since she opened her <a target="_blank" href="https://www.blisssanctuaryforwomen.com/about-3/">Bliss Sanctuary for Women</a> in Bali in 2010.
Currently, she's in Hong Kong, where she's based the travel business in an effort to expand it across the globe. With the next stop Spain, her plan is to establish 20 sanctuaries in 12 countries over the next 10 years.
The Balinese sanctuary includes use of villas within Canggu, Bali, and future sanctuaries are set to include similar leisure accommodation.
It's a fairly ambitious mission for a woman with a fear of flying, who originally left the corporate world for Bali in order to rekindle her health and allow her body to recover from a nasty car accident. But it's a mission she believes is possible in a market that's saturated with retreat-style vacations for women, but very few resorts that focus on the "travel experience" instead.
Watson knows this because before dreaming up the idea, she long tried to find such solo-travelling holiday experiences herself, while in desperate need of some time out from the corporate world.
"At the time, I said to my boss, 'I need a month off or you need to get someone to help me'. He said, 'You can't do either or those; you can take next week'," Watson recalls. She took what she could get and travelled to Bali – an option she thought wasn't ideal at the time, but relatively simple, inexpensive and appeared to offer the safe, solo-travelling experience she was after.
It was better than expected: upon returning to Adelaide, she quit her advertising job to take a year-long break living in Bali where she could recover – something she knew could be funded with the compensation money she'd received from the car accident. The enforced rest didn't last a month.
Watson came up with the Bliss Sanctuary business plan within two weeks. Four weeks later she was flying to Bali to source a villa to rent, which she found within three days. The goal was to create a sanctuary for women travelling alone or with a friend who are looking to take a simple, carefree break. Women who wanted to take the "thinking" out of a holiday, and allow somebody else to sort out accommodation, meals, transport and even the day-to-day experiences (the Bali sanctuary offers packages covering cultural experiences, surfing and yoga).
"We've had ladies who get there and say 'I can't decide what to eat – you decide!'" says Watson.
Bali quickly provided a successful test case on how the business could work globally – with sanctuary spaces filling 50% in the first month of operation and up to 90% just a couple of months later. Now in its second year, it has seven local staff and a Canadian hostess, allowing Watson to work on opening new locations. As she extends the business across the world, she plans to work on site for a few months as each new location opens, then hand the space over to a Western hostess under a franchising arrangement.
Not bad for a business idea Watson attributes to simply taking a break. "I'm pretty gung-ho, having worked in media and the rat race in Australia, my whole lifestyle has completely changed now. If it wasn't for the forced rest on my part I don't think things would have played out the way they have," she says.
And unlike other rat race escapees seeking a seachange, Watson never hated her job. In fact, she recently recounted to the Adelaide Advertiser how she's always had fun, sought-after roles – even one in which she drove around a yellow Mustang convertible as a company car. She's now working harder than ever, but believes that having now found her purpose, the health effects of long hours are minimal.
As for the fear of flying, it hasn't quite disappeared but Watson's dealing with it. "I do find that the things we have the most fear of in life are often the things we need to overcome."
This article originally appeared on <a href="https://www.womensagenda.com.au/" target="_blank">Women's Agenda.</a>
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po-LsXgBTHBmX

How an entrepreneur's holiday turned into a women's tourism accommodation business

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Big homes, not necessarily McMansions, are easier to sell than their smaller counterparts as people look to future-proof their investments.
With families having more possessions than ever before, four-bedroom homes allow for a spare room to be used in many ways.
Three-bedroom, one-bathroom homes are becoming rarer and take longer to sell than a four-bedroom, two-bathroom home.
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Tip of the week: Enlightening property investment gems

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Although most of us are back at work already, some lucky readers out there may still be on annual leave. During my short break I was able to catch up on some of my favourite property-themed TV entertainment programs from around the world.
I have ranked my top six favourite programs that I think are the most information-rich programs, starting at number six. By no means is this an exhaustive list; there are more shows out there that I’ve not mentioned, but I feel the ones mentioned below are the most useful and accessible for investors.
Coming from a media background myself, I’m always keeping my eyes and ears open for new media and programs that have a property focus. It is important to note upfront is that the bulk of these shows are produced squarely as entertainment first and education second. That said, I’ve been able to extract value out of all of the programs below and take away some great lessons that have helped me in my investment life.
Number 6 – Hot Property (Australia)
Concept/Synopsis: Actor and famous Australian icon Michael Caton hosts a program focused on the negotiation process between property buyers, sellers and renovators. The episodes feature an auction in every episode, as well as private sales.
Why it is entertaining: This program is a little bit “loose”. The structure tends to change from episode to episode, with some focusing mostly on the stressful auction process (which plays out like a soap opera thanks to some clever editing and the addition of some emotional musical curves), with others focusing on the families of first-time property buyers.
Why I like it: This show is very much ‘entertainment first, facts second’ in its priorities, however it does give great insight into the objectives and motivations of both buyers and sellers, all emotionally invested in the same property. It is also an excellent exposure to the auction process and the unexpected things that can occur. For those who are too time-poor to get first hand auction witnessing experiencing, this show is great.
Areas to be weary of: Being hosted by an actor and not a property expert (the actor was chosen because he is famous for starring in films focused around the emotional importance of property ownership), the show lacks the much-needed stats, numbers and return on investment summaries that other programs usually provide, making it a little bit vague.
Number 5 – The Block (Australia)
Concept/Synopsis: Running for over 10 years in Australia, this is a reality entertainment program focused on four competing couples renovating stripped-down properties, often located in a blue-chip/prestige urban suburb. The contestants then must complete one room renovation per. At the conclusion, all properties are sold at an auction, with the couple with the highest profit declared the winners.
Why it is entertaining: The ‘mad rush till the last minute’ nature of the program really adds heightened emotion, and some excellent editing makes the program very entertaining for this reason. The contestant couples are selected carefully, and most are enjoyable to watch over a season of the program.
Why I like it: From an investment perspective, I actually enjoy the program more for the things it teaches me not to do as opposed for the tools it may teach me to do. The most glaringly obvious mistake most contestants make is when they overcapitalise on their renovations. But then, these renovations are not being made as part of a buy and hold strategy, these high-end renos are designed for ‘wow factor’ to appeal to the top-end owner-occupier would-be purchaser!
Areas to be weary of: In most years of its run, The Block had selected the city/suburb that was in a rising market at the time of planning, meaning that about six months later, when renovations were complete and the apartments were auctioned off for sale, the profit margins made were regarded as “awesome”. The program editing would have you believe that all profits were attributed purely to the efforts of the contestants in renovating them.
Where you can access it: The Block runs almost annually, and is coming up to its 2013 season premiere. It’ll be on during most weekends on the Channel 9 network. Previous seasons have been made available for purchase on DVD from specialty outlets and JB Hi-Fi/department stores. The next series returns to Channel 9 Monday, February 4. 
 
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Number 4 – The Barefoot Investor (Australia)
Concept/Synopsis: This is not a program about property investment specifically. Instead, it is focused around all kinds of investment classes – ranging from property to shares to managed funds to some more obscure investment classes.  Host Scott Pape is a known investment expert and appears in numerous magazines and newspaper columns, along with regular appearances on TV and radio in Australia.
Why it is entertaining: The show’s approach is light and accessible enough, and with a wide variety of asset classes covered, makes for interesting repeat viewing because the content is so different with each episode. Scott’s approach is quite humorous and his youthful nature makes the show entertaining.
Why I like it: As a younger investor myself, I find this program more relatable than some of the others in this list. While it is great to hear from more mature, seasoned, and successful investors on what worked for them, it is great to watch a program that provides a focus to younger investors and ways to help them achieve their goals. When Scott does cover the property asset class in several segments, his advice for younger/aspiring investors is always sound and logical.
Areas to be weary of: The show sometimes travels off-topic, exploring things topics like love, travel, and life hobbies. Scott does skew these back into some kind of investment focus or strategy.
Where you can access it: The Barefoot Investor website offers some viewing of episodes, while others have been uploaded in full to dedicated channels on YouTube. The program airs infrequently also on Channel 10 on free to air television.
Number 3 – Flip Men (USA)
Concept/Synopsis: Business partners Mike Baird and Doug Clark, along with their crew of helpers, simultaneously buy, renovate, and sell – in other words ‘flip’ – multiple properties at any given time, focused predominantly on one market – Salt Lake City, Utah. Results vary from astonishing successes to projects of several months’ duration that result in loss rather than profit.
Why it is entertaining: As they often enter ‘high-risk’ neighbourhoods and buy properties ‘site unseen’ at auction, it is entertaining to watch the boys enter properties that they’ve already bought. There can be anything inside them – sometimes squatters, junkies, and gangs inhabit them, other times they discover drug labs were present, while sometimes they uncover profit-killers such as unforseen plumbing issues, entirely missing kitchens, or bizarre objects left behind by previous tenants.
Why I like it: It is entertaining, sure, but I respect an onscreen property team who allow cameras in to their everyday flipping world, warts and all, and are not afraid to show their audience their failures as well as their successes. I also have an interest in the US property market, so the program is a great educator to highlight just how much risk the US market offers Australian investors.
Areas to be weary of: Like many US reality programs involving auctioning, bidding, or improving something for profit, the 22-minute episodes firmly focus on the glamorous elements and unfortunately rarely present the hard work done, due diligence investigated, and the fact that the two business partners have an entire team/entourage working behind them. This team is what allows the duo to effectively be flipping around 10 properties at any time!
What you can actually learn from it and use in your property investment life: These two are very efficient at what they do, thanks to years of experience and their concentration on just one market (which they know inside out). Australia’s closest celebrity flipper would be Cherie Barber of Renovating for Profit, who runs workshops to teach others how to flip. The biggest two learnings I took away from this show is that 1) It gives you a feel for the multitude of problems you can face by entering a high-risk market with the intention of flipping and on-selling to family buyers; and 2) It gives you a good understanding of how important it is to buy the right 'type' of property in the market you are investing, relevant to the demographic of that area.
Where you can access it: It airs randomly on digital free to air (7Mate channel mostly), and on Foxtel’s A&amp;E channel. Episodes can also be viewed online for free via international streaming sources, or as paid HD downloads via iTunes or Amazon Store.
 
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Number 2– Selling Houses Australia (Australia)
Concept/Synopsis: Ex-real estate sales agent and property expert of over 20 years Andrew Winter makes the move from the UK to the Australian market. In each episode, Andrew, along with his gardener Charlie and interior designer Shaynna, enters a struggling vendor’s property to help get their house sold that has otherwise sat on the market for way too long.
Why it is entertaining: Andrew has a relaxed demeanor but also a charming way of allowing his ‘vendors’ to come to realise the mistakes they’ve been making and how these attribute to a poor sales interest by the market. Vendors in almost every episode will throw out all kinds of humorous excuses for why they have not made the effort to make their property stand out from the crowd. Andrew also interrogates the selling agent responsible for each of these properties in a similarly humorous way.
Why I like it: It seems strange that I should enjoy a program focused purely on selling property, when I’m very much in the acquisition stage of my property investing career. That said, I find the insight into the pre-sales preparation phase very helpful,; both as a buyer of properties and also as a consumer of sales strategies and techniques, for that time later in life when I’ll be looking to offload some portfolio properties. Also, each episode is 45 minutes and concentrates on just one house/sale, allowing a more in-depth insight into each one.
Areas to be weary of: There is a lack of investor perspective to the program. Every house is always an owner-occupied family home never an investor. This means the program focuses on the emotional attachment that owner-occupiers feel to their home, rather than the business and non-emotional approach that an investor would bring. Also, it is purely focused on houses, with no unit sales being covered by the program.
What you can actually learn from it and use in your property investment life: The program is a big help for those looking to sell an investment property. It highlights techniques to make minor cosmetic changes leading up to a sale, along with how to ‘dress’ the premises for inspections, as well as techniques in selecting and appointing a proven and successful sales agent for the sale process. It also exposes us to the emotional connection that owner-occupiers have with their homes, an important element considering we may one day be marketing/selling our investment properties to owner-occupiers and not other investors.
Where you can access it: The show has recorded many seasons, and airs random episodes on Foxtel’s LifeStyle channel nationally. For those without Foxtel, most seasons are available on DVD from specialist outlets along with JB Hi-Fi.
Number 1– Property Ladder With Sarah Beeney (UK)
Concept/Synopsis: UK property expert Sarah Beeney focuses on just one to two properties per hour-long episode and chronicles the journeys of the risk-taker renovators who aim to flip these properties for profit, regardless of the market conditions the UK may be experiencing at the time.
Why it is entertaining: Sarah is very knowledgeable about property investment, renovation and selling knowledge. Watching amateur flippers openly ignore or go against her trusted advice, resulting in dire re-sale or rental rates after completion, can be entertaining and educational. It also uses humour to highlight the challenge that renovation presents, well before even so much as a nail is removed from a property.
Why I like it: Yes, my no. 1 program for Australian investors is from the UK! I like it so much because it really is focused entirely on first-time investors and the chronicling of their cosmetic and structural renovations, all the way through to the return on investment delivered back to them. Each project or guest is actually visited by Sarah several months later, as a recap, providing an extra insight that few other programs carry all the way through. Furthermore, each episode gives so many dedicated bullet-point screens of tips and tricks that I get so much value out of every episode I watch.
Areas to be weary of: This is a UK program so we must be mindful that the drivers and desires of would be tenants and owner-occupiers there can be much different to those of Australian would-be renters and owners, so these needs do not always translate. Also, while the program has been going for 10 years, many of the results recorded and the projects focused on have occurred in a rising market, making the true dollar (or pound, I should say) value of the profits difficult to ascertain.
What you can actually learn from it and use in your property investment life: If you can get your hands on this show, you’ll take away something from just about every episode. Tasks such as understanding your suburb/market, your target inhabitant, and council due progress and restriction are covered. It also demonstrates the more conventional ‘trials and tribulations of renovating property’ wisdom. The follow-up section at the end, along with detailed summaries of blown budgets and lacklustre profits, can also serve as a sobering reality check for those with the ‘romantic’ dream of property renovation.
Where you can access it: For Australians this show is very difficult to access. Apart from the airing of occasional episodes on Foxtel’s LifeStyle channel, it does not air here on free to air television, nor has it been released on DVD in Australian region 4 coding. Even finding a UK supplier online to buy from is tough. The other program is that although there has been over 10 seasons, not all seem to have been put on DVD in the UK in the first place.
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" target="_blank">Property Spectator.</a>
For more on property reality TV,<a href="http://propertyobserver.com.au/ebooks/free-ebook-lessons-from-the-block-and-other-property-reality-television-shows" target="_blank"> download our free eBook</a>
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Real-life property lessons from The Block, Hot Property and other reality shows:  Cameron McEvoy

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The unemployment rate increased marginally by 0.1 percentage points to 5.4% in December,  according to figures released today by the Australian Bureau of Statistics (ABS).
This was in line with consensus forecasts.
The December data release included upward revisions to the November unemployment reading with job gains upwardly revised from 13,900 to 17,100 jobs while work hours were also revised up in November, now showing 0.8% growth rather than 0.1%.
"In short, the job market remains resilient," says CommSec economist Savanth Sebastian.
The Commonwealth Bank had forecast the unemployment rate to remain unchanged at 5.3%.
Commonwealth Bank chief economist Michael Blythe says the RBA pays “a lot of attention to the jobs data". 
"It is the one monthly statistic that covers the whole economy.
“Trends in the unemployment rate are a good near?term predictor of RBA rate moves,” he says.
Economists tipping multiple cuts in the cash rate this year are forecasting a rise in unemployment to around 5.7% over the course of the year along with lower economic growth.
According to the ABS, the number of people employed decreased by 5,500 to 11,538,900 in December.
The decrease in employment was driven by decreased full-time employment, down 13,800 people to 8,112,500 and was offset by increased part-time employment, up 8,300 people to 3,426,400. The increase in part-time employment was driven by an increase in male part-time employment. The number of people unemployed increased by 16,600 people to 656,400 in December, the ABS reported.
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RBA interest rates watch: slight rise in unemployment to 5.4% in December, but as forecast

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There are 23 suburbs in Melbourne where first-home buyers can purchase a one-bedroom apartment and pay equal or less than the average estimated first-home buyer mortgage repayment in Victoria of $414 per week.
The suburbs can be found in an interactive heat map showing weekly mortgage repayment price bands across Melbourne suburbs compiled by the Real Estate Institute of Victoria (REIV) as part of its new <a target="_blank" href="https://www.reiv.com.au/Property-Research/First-Home-Buyer-Guide">first-home buyer guide.</a>
The $414 per week median mortgage repayment is based on the average first-home buyer loan size of approximately $286,600, a standard variable interest rate of 6.40%, receipt of the $7,000 First Home Owners Grant, a loan term of 30 years, a 10% deposit, and benchmark Lenders Mortgage Insurance (LMI) and conveyance fees.
First-home buyers may be surprised to learn that the list includes inner city, café-lined suburbs like Carlton and Moonee Ponds, the bayside suburb of Williamstown and up-and-coming suburbs like Preston and Reservoir.
The full list starting from the cheapest is:
<ol>
<li>
<a href="/news">Noble Park</a>, $202 per week, median price of $155,000</li>
<li>
<a href="/news">Albion </a>- $232 per week, median price $177,000</li>
<li>
<a href="/news">Box Hill</a> - $257 per week, median price of $194,750</li>
<li>
<a href="/news">Carlton </a>- $257 per week, median price of $195,000</li>
<li>
<a href="/news">Frankston </a>- $260 per week, median price of $197,500</li>
<li>
<a href="/news">Footscray </a>- $325 per week, median price of $245,000</li>
<li>
<a href="/news">Ormond</a> - $339 per week, median price of $255,000</li>
<li>
<a href="/news">West Footscray</a> - $346 per week, median price of $260,250</li>
<li>
<a href="/news">Epping </a>- $347 per week, median price of $261,000</li>
<li>
<a href="/news">Brunswick West </a>- $365 per week, median price of $274,000</li>
<li>
<a href="/news">Moonee Ponds</a> - $366 per week, median of $275,000</li>
<li>
<a href="/news">Mentone </a>- $370 per week, median price of $277,750</li>
<li>
<a href="/news">Reservoir </a>- $380 per week, median price of $285,000</li>
<li>
<a href="/news">Preston </a>- $381 per week, median price of $285,500</li>
<li>
<a href="/news">Williamstown </a>- $387 per week, median price of $290,000</li>
<li>
<a href="/news">Coburg </a>- $388 per week, median price of $291,000</li>
<li>
<a href="/news">Murrumbeena </a>- $391 per week, median price of $293,000</li>
<li>
<a href="/news">Flemington </a>- $392 per week, median price of $294,000</li>
<li>
<a href="/news">Bundoora </a>- $394 per week, median price of $294,000</li>
<li>
<a target="_blank" href="/news">Glen Huntly</a> - $401 per week, median price of $300,500</li>
<li>
<a target="_blank" href="/news">Thornbury</a> - $401 per week, median price of $300,000</li>
<li>
<a target="_blank" href="/news">Essendon </a>- $414 per week, median price of $310,000</li>
<li>
<a target="_blank" href="/news">Carnegie </a>- $414 per week, median price of $310,000</li>
</ol>
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From Noble Park to Essendon: 23 Melbourne suburbs with one-bedroom apartments priced below the first-home buyer mortgage median

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Rental vacancies rose in all mainland capital cities over December with Melbourne recording the highest vacancy rate of 3.6% - up 0.4 percentage points - with over 15,000 properties available for rent, according to the latest SQM Research figures.
The only capital city to buck the trend or rising rental vacancies was Hobart, where the vacancy rate eased marginally from 2.1% to 2% with 549 properties available for rent.
Perth remains the tightest capital city rental market with a vacancy rate of 0.9%, up from 0.7% in November, but unchanged on a year ago with 1,710 properties available for rent.
Sydney still favouring landlords with a vacancy rate of 2.1%, up from 1.8% in November, well below what is considered a balanced rental vacancy rate of 3%.
Melbourne, with a vacancy rate of 3.6% favours tenants and is described by Australian Property Monitors as the most “tenant friendly” capital city market in Australia.
Nationally, the vacancy rate increased by 0.4 percentage points to 2.3% with to a total of 63,089 rental listings following a rise in November – the first rise seen months “after periods of modest declines and stagnation in the months preceding” - but in line with SQM expectations.
“However, when comparing this figure to that of the corresponding period of the previous year (December 2011), there is very little to no change in vacancies,” says Louis Christopher, managing director of SQM Research.
“Thus, this surge is seen predominantly by SQM Research as a seasonal increase, with many rental properties becoming vacant during this period due to possible reasons such as university students vacating student accommodation or rental properties situated near their respective campuses, due to the end of year break,” he says.
Christopher says that at this time of the year “seasonality really can have an impact upon vacancy rates and overall property listings, and this year has proven to be no exception”.
“SQM Research does not seasonally adjust its numbers because we are of the opinion that the user of the data actually receives more value from observing the seasonal change that occurs in the property market,” he adds.
SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties rather than what it considers an inferior methodology of using a "potentially incomplete sample of agency surveys or merely relying on raw online listings advertised".
 
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