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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Fast food chain Sumo Salad has been bought out by one of Australia's wealthiest families, with the company now planning to triple its 100 locations and even pursue a float on the ASX as it grows beyond the restaurant category and expands its brand.
Sumo Salad, which was founded by Luke Baylis along with business partner James Miller in 2003, has sold a 60% stake to the Tulla Group, which is run by the wealthy Maloney family.
The company has also taken on more capital with the intent of expanding beyond the restaurant category – with the business even mentioning the possibility of taking on existing chains such as Subway.
And according to <a rel="nofollow" href="https://www.theaustralian.com.au/business/companies/tulla-grip-on-sumosalad-adds-dressing-to-network/story-fn91v9q3-1226535697471">The Australian</a>, Tulla will even pursue a float on the ASX within "four to five years".
"Tulla are extremely experienced, and their board position brings a lot of business acumen and intelligence to the company," Baylis toldSmartCompany this morning.
"They've given us a large amount of growth capital to expand our network – it's a great fit for what we're looking for."
Sumo Salad has been one of the bright spots in the otherwise challenged fast food category. The pair started the business after noticing a distinct lack of health food options in the market, and the franchise took off quickly – turning over at least $45 million <a href="https://www.smartcompany.com.au/smartcompany-awards-2009/sumosalad">when it was listed on SmartCompany's Smart 50</a>.
The company has since grown extensively, with Baylis saying the company has experienced 16% quarter-on-quarter growth this year.
"From all reports, I hear the market is tough, but we're showing steady growth. We're in a second year where we haven't had a month of negative growth."
Sumo Salad was one of several food chains to benefit from growth following the financial crisis. Retail Food Group was another, as consumers switched to take-away meals under $10. The business has obviously also ridden the health food craze to success.
Part of the plans for growth under Tulla's leadership includes opening another 200 stores, including some smaller locations, which Baylis says have performed extremely well. Other plans include adding more hot products to boost winter sales and possibly putting products on supermarket shelves.
"We feel the Sumo brand has the ability to grow exponentially from that point," Baylis says.
Baylis wouldn't provide any details on the price of the deal, and denies this is his way out. "I have no intention of leaving, I remain as chief executive and managing director...for years to come, hopefully," he says.
Years is what it might take – the Tulla Group differs from other private equity firms in that its ownership is centralised within the Maloney family. This means it can hold on to investments for longer and pursue long-term strategies.
Maloney told The Australian he became interested in Sumo Salad after seeing chains like Whole Foods in the United States – "there's nothing like that in Australia".
"The closest thing with any size we could find was Sumo, so I think it's still a very much underdone market in Australia, and there's massive potential for growth," he said.
Whole Foods is an upmarket supermarket including various restaurant outlets – which indicates the scope of Baylis and Maloney's vision for the business. Sumo Salad's extra 200 locations will be rolled out over five years.
The current size of the business is "a wonderful base to build from", Maloney said.
Many of those locations will be franchises, although a number will remain corporate owned. Baylis said it's become more difficult to sell franchises in the past couple of years, as the space has become more competitive.
"There really has to be a fairly intelligent process on how you source franchisees, and how you meet the capital requirements and constraints."
The company was <a href="https://www.smartcompany.com.au/legal/20110506-sumo-salad-faces-dispute-over-decision-to-terminate-franchise-agreement">drawn into a franchise dispute</a> last year,
The Maloney family, which has a fortune of about $560 million, started the Tulla Group in the 1990s. It recently won a $300 million payout from the sale of its stake in MAC Services Group. Mark Maloney, the son of original founder Kevin Maloney, now runs the business.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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Sumo Salad sells 60% stake to the Tulla Group

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Plans for the new Sydney International Convention, Exhibition and Entertainment Precinct (SICEEP) at Darling Harbour have drawn concerns from trade exhibitors due to its configuration.
<img src="/images/stories/2012/12/icc4.jpg">
While the proposed exhibition space will be 13,000 square metres bigger in the new convention centre, contiguous space will be smaller, with only 20,000 square metres on the ground floor as opposed to the current 27,000 square metres across one floor.
A second floor will offer 13,000 square metres of exhibition space with additional space on the outdoor event deck and in the convention centre.
The 20,000 square metres of contiguous space is significantly smaller than the 30,000 square metres of clearspan space available in the Melbourne Exhibition Centre – the largest contiguous space in the Southern Hemisphere.
Despite the concerns at the configuration of the new exhibition centre, Joyce DiMascio, general manager of the Exhibition &amp; Event Association of Australasia, says the industry is in the hands of very good operators in Lend Lease and Ogden.
“In initial discussions with Ogden, they have undertaken to ensure that in the detailed design our input is considered to maximise utilisation,” she said in comments to the Australian Financial Review.
<img src="/images/stories/2012/12/icc5.jpg">
Infrastructure NSW has also defended the design saying that stacked exhibition centres worked well in place like Hong Kong and Vancouver, adding that only five exhibitions a year require space of 25,000 square metres or more.
Such exhibitors would need to be convinced to have their expos over two levels or Sydney could lose them to Melbourne.
Development of the Darling Harbour convention centre has also come under fire from Philip Cox, the architect who designed the current exhibition centre and from another well-known architect Darrel Conybeare, who described Cox’s building as the best in Darling Harbour.
Construction of the new exhibition centre is due to begin in 2014 and be completed in 2016.
Goldman Sachs analyst Andrew MacFarlane said developing the $1 billion convention centre was an “important win” for Lend Lease “given major projects have been relatively rare in recent years” and will add $2 billion to its $9.3 billion of Australian construction revenue backlog as of June 2012.
Goldman Sachs expects Lend Lease’s share of equity in the public-private partnership will amount to around $100 million with developer acting as development and construction manager as well as project manager through Capella.
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Lend Lease’s Darling Harbour exhibition space configurations questioned by exhibitors

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"How much should I pay?" is probably one of the most difficult questions for investors and in particular home buyers to answer. Everyone wants to get the best deal when they buy. But how do you know what a good deal is? Before you can decide whether you're getting a bargain or not you need to do some research to work out the market value of the property. Comparative market analysis is extremely powerful when you're trying to negotiate the best-possible price.
Inspect 100 comparable homes
When I started in real estate as a selling agent I didn't really have a clue what homes in the area were worth. The owner of the real estate office said to me, "Patrick, you need to learn what the market value is of homes in the area. I want you to go out and see as many properties as you can in the next few weeks". He told me I had to inspect each home and document all its relevant features. I decided that I was going to inspect 100 properties and so I pretended to be a home buyer for about four weeks. I covered four or five suburbs, looked at a little over 100 properties and took notes on each one. I wrote down the asking price and what I thought they were worth and followed them up after they'd been sold. I attended lots of auctions as well. By the end of that month I had a pretty good idea of what the market was doing and how much property in the area was worth.
"Go out and learn what the market value is" was the best damn advice I was ever given to assess value, and it's the best damn advice I can give you. It's the best way for you to learn what properties are worth. If I, or one of my team, is looking for a property for a client we still do the legwork and inspect around 100 properties. I've purchased properties all over Sydney, in different states of Australia and across all price ranges, and I always stick to this formula. You could drop me anywhere in the world, give me enough time to inspect 100 properties, and I can assure you that I won't be paying retail when I buy.
Set aside some time and start inspecting properties in your top three suburbs that match your wish list. A comparative market analysis compares homes that are similar in size, configuration, condition, and location. They have to be in your price range too. Remember, you're looking to compare apples with apples.
I find a lot of people are looking over such a wide area and range of homes and they think they understand market prices. They don't! You've got to focus on properties that are as close as possible to your wish list because there's no point in looking at $850,000 homes if your price range only goes up to $650,000. If a three-bedroom townhouse is on your wish list, that's what you're looking for. Not two-bedroom cottages or four-bedroom apartments.
Why do I suggest that you have to look at 100 properties? Well, if you only inspect 50 you're probably not well enough informed. From my experience 100 properties is enough for the average person to be on the ball about comparable prices. If you looked at 150 I don't think you would be that much better informed.
There's no denying it, inspecting 100 properties is a lot of work. If you make a concerted effort you can probably complete it in six to eight weeks (less than two months).
You've got to be disciplined and stick with it because inevitably you'll fall in love with the twentieth property you look at. Remember, in the early stages you're looking for research purposes, not to buy (we'll get to the buying stage later). If you go ahead and buy now then you can't be sure you're paying the right price or that you have seen enough to know what's really out there that may be suitable because you haven't looked at enough comparables to determine fair market value.
So don't stop until you've seen 100 homes. As you view each home make a note of the important features and put your price on the property. When you follow up with the selling agent to see how much it sold for you can see how accurate your valuations are. Over time you'll develop a gut feel for what property in your search area and price range is worth.
After you've inspected 100 homes you'll have gathered a lot of local knowledge that will help you value homes in your chosen area. For example, small differences in location can create significant differences in price. Every suburb has several streets where the price for a very similar home can differ by as much as 10% or even 20%. Sometimes these streets are cut in two by a suburb boundary line or a main road. People will pay substantially more to live in a property 100 metres up the road in order to have a more prestigious post code or street address.
Sometimes the price difference happens for a number of not so obvious reasons. For example, one side of the road provides greater access to schools, local shops, the bus stop, etc. How are you going to know about this type of important area-specific information before you buy unless you do your research and become an area expert yourself (or hire an experienced buyer's agent like me)?
 
<hr class="system-pagebreak">
 
You'll know as much as the selling agents
A lot of people assume real estate agents are experts in valuation. They're not. They generally know the values in their particular service area because they sell a lot of property there but that doesn't necessarily mean that they know prices in every area and every price bracket.
Selling agents are scattered all over town, but each one only services a small area, which is usually about a three to four-kilometre radius – five kilometres at best – from their office. So if you take an agent from the inner Sydney suburb of say Surry Hills, and put them over the other side of the Harbour Bridge just 10 minutes drive and eight kilometres away in harbourside Mosman, do you think they know what the current home prices are there? They haven't got a clue. They are what I call an "out-of-area agent" and can often be the best agents to negotiate with as they're much easier to influence. I'll talk more on that later.
Selling agents also list properties for sale in a wide price range. Recently when I was looking at a property I met the agent as he was running from one open inspection to another. He had his name on properties from $400,000 up to $3 million. Is he an expert at valuing $400,000 properties? Probably not. Is he an expert at $3 million properties? Probably not.
Selling agents are what I call "price-guide generalists". That's often why many want to auction properties, as they don't know what the property is really worth. Ever been to an open home and said to an agent “what are the owners looking for?” The answer is often quite non-committal. They'll say something like buyer feedback is between $500,000 and $600,000 or bidding is expected to start from $550,000, and it sells for $700,000. Or you read in the paper that the property was passed in below what they were quoting you or sold for $80,000 above reserve. Yes they might be underquoting to you however its often partly because the agent was guessing a bit and so was the vendor, and the vendor was relying on the agent for feedback and a price guide when setting the reserve.
However, if you're inspecting only three-bedroom townhouses in the $600,000 to $750,000 price range, you will become an expert on that particular type of property in that area at that time. If you inspect 100 comparable homes you will know as much, if not more, than most of the selling agents in the area on your preferred type of property.
As I go through properties I get a lot of the selling agents asking me, "Patrick, what do you think this is worth? Is it priced right?" And why do they ask me? Because they know I'm looking at dozens and dozens of properties that compare to the one they're selling and I know what the current fair market value is.
Knowledge is power
Your comparable market analysis is a huge asset when it comes to negotiating a price for your home. Knowledge is power, so become knowledgeable. When you've done your research you'll be able to assess the fair market value and know how much you should pay to get a good deal. You'll also know what a sensible maximum bid is at auction. When a selling agent tells you they think a home is worth some outrageous price you can tell them "Good luck".
I see people pay over and above fair market value all the time. If you've done your research it won't happen to you. People also often buy well below fair market value and you'll be able to spot the bargains too, provided you've done your research.
<img style="margin: 5px; float: left;" alt="insiders" height="233" width="150" src="/images/stories/2012/12/insiders.jpg">
Patrick Bright is a real estate author and founder of Sydney-based buyer’s agency <a target="_blank" href="https://%20www.epspropertysearch.com.au">EPS Property Search</a>. Bright has purchased over $500 million worth of real estate for clients. His best-selling titles include The Insider’s Guide to Buying Real Estate, The Insider’s Guide to Saving Thousands at Auction and The Insider’s Guide to Profitable Property Investing. This is an excerpt from <a href="https://www.propertybooks.com.au/the_insider's_guide_to_buying_real_estate" target="_blank">The Insider’s Guide to Buying Real Estate</a>, second edition
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How to determine a property's true value: Patrick Bright

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As we enter the long, hot Australian summer, many people will be attracted to the delights of a backyard swimming pool.
They can certainly be enjoyable, but a question often asked of agents is, “does a pool add value to a home?”
It seems there is no clear answer to this because it really depends on a range of factors.
Some people will say that a pool is a lifestyle preference not shared by all potential buyers of your property, and so it won’t really add value. Others might even see it as inconvenient because of the  ongoing servicing. For other people it might be exactly what they want, and they’re prepared to pay for the luxury.
Owning a pool requires annual pool inspection fees, ongoing costs with pumping, cleaning and chlorinating and possibly occasional structural maintenance on older pools.
As water becomes more precious, it seems likely that the future costs of owning and filling a pool will be greater. For some home buyers these outlays and responsibilities are unwanted and homes with pools will be avoided.
However, this should not diminish the general value of a pool, or more precisely the entertainment features of a home sought after by other buyers.
Perth enjoys a Mediterranean climate ideally suited to outdoor living. It’s hardly surprising that the external appearance and features of a WA home do affect its value and generally provides greater ease in selling.
In deciding if a pool really does add value, it’s important to consider design features and quality of construction. REIWA agents tend to find that if pool is part of a well designed outdoor living area and complements the house by creating a better aspect to the property, then it adds some value to the home.
Important design features for a pool include things like safety concerns, access to other open areas on the property and compatibility with the look of the house.
Legislation is in place which ensures that all enclosures for pools built between 1989 (the first year of mandatory fencing), and 1992 need to comply with the Building Amendment Regulations Swimming Pool Safety Laws.
So, owners and buyers of properties with older pools need to be aware of these legal changes to fencing and should contact their local council or shire for clarity.
Installing a new pool should be approached in a similar way to building an extension. In most cases an extension is made to accommodate a growing family or to provide for a lifestyle improvement.
The better extensions are those which are well designed and constructed. This will add value to a property for the right buyer who’s specifically looking for what you might have to offer.
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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Does a swimming pool increase a property's value? 

AMP Capital chief economist Shane Oliver predicts property prices will rise by between 4% and 5% in 2013&nbsp;spurred on by lower mortgage rates, but expects only modest returns for property investors compared with other asset classes.

Oliver says property investors can expect returns of around 6% from their investment properties over 2013, compared with returns of 2% in 2012 and a loss of 4% in 2011, but well below expected returns for both listed property (12%) and unlisted property trusts (9%).

Oliver expects the cash rate to fall what would be a record low of 2.5% next year as a result of initially subdued economic growth as “mining slows and mining slows and non-mining is slow to pick up”, with unemployment set to rise to 6%.

“Against this backdrop the RBA is likely to cut rates further to 2.5% in order to push bank lending rates down closer to past cyclical lows. However, as the impact of rate cuts starts to feed through with normal lags, growth should start to improve by year end.

“Overall we see growth around 2.5%, but this is masking a second half upswing; inflation remaining benign; and the cash rate falling to around 2.5% in the first half."

He says the main risk to the Australian economy is that the non-mining sectors –&nbsp;housing, retailing, tourism, etc&nbsp;–&nbsp;take longer than expected to pick up pace, leading to a sharper slowdown in growth beyond the 2.5% we are expecting.

“This could occur, for example, if rising unemployment triggers a desire on the part of households to more rapidly reduce their debt levels. This could see the RBA cut the cash rate to 2% or below,” he says.

But Oliver says he remains cautiously optimistic about 2013, with historical recession patterns suggesting a continuation of the global recovery for the next three years.

His outlook on the property market also appears more bullish when compared with comments he made in July, when he said Australian property prices were still overvalued by around 10% to 15%, though down from earlier AMP estimates of a 30% overvaluation.

Click to enlarge

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For investors, the strongest growth is expected to come from the share market, with gains of 15% from global, Asian and emerging market shares.

“Shares are likely to provide another solid year of returns. Shares are very cheap against bonds as bond yields have fallen further and should benefit from ultra-easy monetary conditions globally and the anticipation of stronger profit growth in 2013-14," says Oliver.

“What’s more, while sentiment towards shares is not as bearish as it was in late 2011 it is still very cautious at a time when share weightings have collapsed. This suggests there is plenty of money to come into shares once confidence starts to pick up."

Investors looking for strong returns from the property sector with a lower cash outlay should consider invested in listed property trusts –&nbsp;REITs, either in Australia or globally, with Oliver forecasting returns of 12% for this sector.

“Property securities are likely to continue to benefit from investors seeking yield, however returns are likely to slow after the 20 to 30% returns of 2012."

Unlisted commercial property and infrastructure are likely to benefit from relatively attractive returns and strong investor demand given their relatively attractive yields, e.g. around 7% for commercial property, he says.

Oliver advocates investors having a balanced portfolio that includes both shares and property investments and says that historically returns have been similar for both asset classes.

At the bottom end of the risk-spectrum, Oliver says cash and hence term deposits are likely to become even less attractive as cash rates slide to 2.5%, further pulling down term deposit rates well below 4%.

&nbsp;Bonds are also likely to offer little upside either for investors.

“Historically low starting point bond yields suggest low returns from sovereign bonds, unless global growth takes a renewed leg down. Australian bonds are a bit more attractive than global bonds given higher yields.

“Corporate debt is a better bet for those after income,” he says.

To learn more about where property should sit within your wealth-creation portfolio, <a href="/news" target="_blank">watch our free webinar.</a>

&nbsp;

Residential property prices to rise 5% in 2013 but shares a better bet than property: Shane Oliver

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China’s sovereign wealth fund CIC has reduced its stake in industrial property developer and manager Goodman Australia by 6.9%.
Goodman Australia is part of Goodman Group, an international integrated property group that owns, develops and manages logistics and business space across continental Europe, the United Kingdom and the Asia-Pacific region.
CIC has sold $519.2 million worth of shares (116.7 million shares at $4.45 a share) to leave it with a 9.9% holding in Goodman Australia.
The shares were purchased by local and foreign institutions at 3% discount to the last trading price, reported the Australian Financial Review.
The downsizing of CIC's stake follows a day after the Goodman Australia Industrial Fund announced an equity raising of $624 million and an extension of the fund term by four years to 2019.
CIC benefited from a 66% surge in the Goodman share price over 2012, with the listed property trust outperforming Australia’s biggest A-REIT, Westfield, by a significant margin.
The money is being returned to China rather than being invested in Goodman’s unlisted funds as had been expected.
CIC is expected to retain its remaining stake for at least another 12 months due to their being a tax advantage.
CIC is expected to hold onto its remaining stake for at least another year as there is a tax advantage to doing so. Contrary to expectations, it is thought to be repatriating the cash back to Beijing rather than reinvesting the money in some of Goodman’s unlisted funds.
CIC bought a 17.8% stake in Goodman in the wake of the GFC, which rescued the group from the risk of collapse.
Goodman's current portfolio consists of 191 properties located in Sydney, Melbourne, Brisbane, Adelaide, Canberra and Perth.
Blue-chip tenants include Toll, Linfox, DHL, Coles, Coca-Cola, TNT and Brambles.
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Chinese sovereign fund cashes in on share price surge to reduce holding in Goodman Australia

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Consumer sentiment fell 4.1% in December in the week the Reserve Bank cut the cash rate to an emergency level setting of 3%, according to the latest Westpac Melbourne Institute Index of Consumer Sentiment.
This nearly reverses the 5.2% increase in the index in November with the index now 3.2% below its November 2011 level meaning there has been no overall improvement in consumer sentiment despite the cash rate falling 175 basis points over the past 13 months.
It follows the release of the NAB business survey yesterday, which found that business conditions were unchanged in November, but remain well below their long term average and at their lowest level since May 2009.
The only Westpac respondents to react positively to the rate cut were  - not surprisingly - mortgage holders, where sentiment rose 4.4%.
The survey of 1,200 Australians was conducted from December 3 to December 9 December, with the RBA cutting the cash rate on December 4 and all the major banks and their subsidiaries (apart from ANZ) announcing they would pass on 20 basis points within roughly 24 hours of the decision.
Overall, the index fell from 104.3 in November to 100.0 in December.
The December result indicates a drop in confidence about the future with a 4.3% slump in confidence about economic conditions over the next 12 months and an 8.9% slump in confidence about economic conditions over the next five years.
In the home ownership categories, those that own their homes outrights were the most pessimistic with a 10.9% slump in this sub-index while renter sentiment fell by 9.1%.
Westpac chief economist Bill Evans called the December findings of the survey "a very surprising result”.
“When we saw the 5.2% increase in the Index in November, which came despite the Reserve Bank surprising by holding rates steady, it appeared that sentiment was finally starting to respond to the accumulated series of rate cuts since November last year.
“With that in mind it was therefore reasonable to expect that the Index would respond quite positively to the rate cut the Reserve Bank delivered last week.
“Instead the Index fell back to near its October level and is now 3.2% below its November 2011 level," he said.
Evans attributed the slump in confidence to consumers being influenced by reports in the media about economic conditions.
“In this survey we also receive a measure of the major news categories which influenced respondents and how each category was assessed.
“The news items which had the largest impact were around economic conditions. An impressive 60% of respondents recalled news items on the economy.
“Next most prominent were interest rates (28.9% of respondents); budget and taxation (20.7%); international economic conditions (20.6%); inflation (13.9%); and employment (11.9%),” he says.
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Rate cuts keep mortgage holders upbeat but overall consumer sentiment slumps in December: Westpac index

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Trying to pick property market movements in recent years has been tricky to say the least, but a recent lending report from Westpac bank into home loan approvals gives us an indication of what lies ahead in 2013.
The report shows that while lending for homes remained stagnant in October, the number of loans for investors continued to climb. Loan approvals to investors rose 5.5%, and this was off the back of a massive 8.8% jump for September. Year-to-date loans for investors have risen by 21%.
The planets are aligning for investors as the numbers begin to stack up. It is now becoming very affordable for investors to seriously consider a property purchase. But as the investors return to the market, the savvy ones will be looking to purchase properties that not only have minimal holding costs but also significant capital growth potential.
Investors will no doubt hit the traditional investment areas such as <a target="_blank" href="/news">South Yarra</a>, <a target="_blank" href="/news">Elwood </a>and <a target="_blank" href="/news">Richmond</a>. As usual, they will look for the standard requirement of good transport infrastructure, shopping, restaurants and bars because all theses things result in strong tenant demand.
However, investors should also be looking for emerging markets where properties are more likely to benefit from a big upswing in capital growth.
Take, for example, a couple of recent property sales in Melbourne’s inner west and north.
A one-bedroom apartment at<a target="_blank" href="https://www.realestate.com.au/property-apartment-vic-flemington-111304283"> 8/60 Farnham Street, Flemington</a>, sold recently for $335,000. This price is more than $100,000 less than the median price of apartments in Melbourne so represents very affordable buying. In addition to the low entry point this property has the potential to be let for around $300 per week.
<img src="/images/stories/2012/12/farnham.jpg" width="470">
 
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At a slightly higher price point but yet still very affordable is <a target="_blank" href="https://www.realestate.com.au/property-apartment-vic-northcote-112284991">20/203 Clarke Street, Northcote</a>, which sold on the weekend for $452,000. While the view of the CBD is magnificent, this property also has the potential to produce close to a 5% yield. In isolation, a yield at this level is great, but hand in hand with very competitive fixed rates these properties start to look very enticing.
<img src="/images/stories/2012/12/clarkest.jpg" width="470">
Currently an investor can lock in three-year fixed rates for less than 5.5% and taking it a step further,  five years can be locked in for just over 5.5%. This means properties such as these could be purchased and be very close to neutrally geared from day one. Investors would also have certainty over their interest payments for the next five years, and as time goes by the only variable is the rental return, which is likely to only move in one direction. Up.
Further, both of these properties are located in suburbs that are emerging investment areas. Traditionally investors have preferred to stay in the safe havens of the inner-eastern suburbs, where comparable properties could sell for an extra $100,000 or more.
Although houses in suburbs such as <a target="_blank" href="/news">Flemington </a>and <a href="/news">Northcote</a> have been highly sought for a number of years, a lot of buyers have viewed apartments as a risky option. However, as many investors are priced out of the eastern suburbs they will start to look for other opportunities. In short, properties like these have significant growth potential in the years to come.
It is important to remember that around 70% of the property market is controlled by home buyers. As a result the increase in investor demand is not going have an impact on the entire market, and overall growth may not be huge in 2013. However, investors will place increased pressure on pockets of the market, and these areas will have above average growth next year.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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Where Melbourne property investors should look to maximise capital growth in 2013

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The RBA has released the <a target="_blank" href="https://www.rba.gov.au/publications/confs/2012/conf-vol-2012.pdf">proceedings of a conference</a> held in August on Australia's property markets. It includes discussion papers on land and housing price measurement in China, housing finance, when a housing market is overheated enough to threaten stability, and the commercial property cycle. 
In one discussion paper, <a href="https://www.propertyobserver.com.au/economy/lower-interest-rates-following-bust-can-have-toxic-consequences-glenn-stevens/2012121158408?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">RBA governor Glenn Stevens warns </a>that lowering interest rates following an “asset price bust” to stimulate lending can have "toxic consequences".
 
<a target="_blank" href="https://twitter.com/CCASHMORE_BUYER"><img src="/images/stories/2012/12/cashmoretweet2.jpg"></a>
Oxford University macroeconomist <a href="https://www.propertyobserver.com.au/economy/profitable-banks-and-cautious-lending-practices-protecting-australia-against-boom-bust-housing-cycles-oxford-university-economist/2012121158407?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">John Muellbauer also looked at the risks posed to financial stability from "boom-bust" housing cycles</a>. Muellbauer provided an overall positive assessment of Australia’s prudential and regulatory oversight.
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RBA releases conference papers on Australia's property markets: Tweet of the day

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Today, Chinese money makes up the fastest-growing segment of the real estate market in Australia.
Darrell Irwin of Colliers International says that the investment wave is pushed by Chinese immigration and tourism. Chinese see the Gold Coast and Australia as a safe place to invest and a good place to educate their children.
Australia is the southern hemisphere’s Switzerland.
Irwin thinks this Chinese investment boom could end up being bigger than the Japanese wave of the 1980s.
There is a difference, however. As Irwin says: "The Chinese are a lot more astute than the Japanese were when it comes to the acquisition of real estate assets.”
Everyone from property developers to the Gold Coast City Council are trying to work out how to make sure some of that money finds its way into their pockets.
The council wants to create a <a href="https://www.chinatowngoldcoast.com.au/" target="_blank">Chinatown in Southport </a>to serve the 200,000 tourists who fly down from China to the Gold Coast each year.
The Queensland government has put money into the project, contributing $50,000 to create a Chinatown masterplan. Several China-based investors have already invested significant amounts, according to a report published in the Sun.
Even Tom Tate, mayor of the Gold Coast, is getting in on the act. He bought his own tickets to China, Taiwan and Macau, where he met with rich Chinese investors and encouraged them to come to Australia.
It is no surprise that deep-pocketed organizations are targeting Chinese buyers. They have the resources to do so.
But what can individual vendors and agents do?
It turns out that, even with a limited budget, you can do plenty. To find out if you have the kind of property that could appeal to a buyer from China, or a Chinese -speaking buyer from Australia, <a target="_blank" href="/news">read my last article</a>.
 
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Next, the most important thing you can do is list your property in Chinese, either on your own website, on a portal like Juwai.com or both.
With Chinese buyers, presentation matters. One reason that Chinese buy more luxury goods than every other country but Japan is that they live in a very competitive society. The brand of your watch can set you apart from the next person and demonstrate your success.
This has an impact on your property listings. I cannot put it any more simply than this: your listings must be professionally translated by humans -- not by Google Translate or any other software.
Chinese buyers want to feel like they are getting the best, so machine translations do you and your brand damage. They seem unprofessional, and the language they generate often comes across as childish, confusing and even offensive.
My second piece of advice for the property marketer hoping to sell to Chinese buyers is to host your listing on the inside of the Great Firewall of China.
There are two internets today: the global internet and the Chinese internet. China’s central government makes no secret of the fact that it is constantly sifting through web traffic to look for things it considers against the best interests of Chinese society.
When a Chinese user tries to load a web page from Australia, that page will probably be examined by the government’s automatic censors. This takes time.
Some websites are 45 times slower for within the firewall than for users outside of it. Chinese users either get frustrated and give up, or their web browser gives them a “Page can’t load” error. Neither outcome helps you sell property, nor present your brand professionally.
Third, focus on the right audience.
Lets face it, you are not going to sell a $700,000 property to someone earning the equivalent of $625 per month. Make sure your listing reaches high-net-worth Chinese and not the average Chinese.
Many wealthy Chinese expect to apply for Australian residency via the new Significant Investor Visa. Others send their children here for an expensive English-language education (about 150,000 are studying in Australia right now). These people are your audience.
The last tip I have space for in this article is to be patient. Just like you, Chinese buyers prefer to take their time researching the overall market, individual listings and real estate agencies.
The good news is, once they have all three elements in place, they can move surprisingly fast, and often make multiple purchases over a short period of time.
Andrew Taylor is the founder and CEO of sales and marketing of <a href="https://www.juwai.com/" target="_blank">Juwai.com</a>, the number-one Chinese real estate portal for property in Australia and around the world. Find out more about him at <a href="https://list.juwai.com">list.juwai.com</a>.
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