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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Perth detached house values have risen more than 5% over the past three months to October in contrast to an otherwise stagnant national housing market, the latest Residex figures show.

Residex chief executive John Edwards is anticipating a stronger 2013-14, saying increases in both rental and capital growth should be higher "than what has been seen in a number of years".

However, he expects that “the market will again retreat” around 2015.

“Markets like Brisbane, Perth and Darwin are likely to see a continuation of stronger rates of capital growth; however, these areas could see growth that causes corrections of larger magnitudes than other markets in the longer term, as Residex expects the RBA to make further interest rate reductions in an attempt to stimulate non-mining areas of the economy,” says Edwards.

The October figures show that while Perth detached house values registered only a small gain (0.42%) over the month, they are up 7.47% for the year to October to a median value of $500,000.

Sales activity in Perth has also been strong, up nearly 20% for the year with more than 25,000 sales recorded.

National house values have hardly moved over the month (-0.18%), quarter (-0.05%) and year (-0.51%), with the national median detached house value being $429,500, despite a 7.25% rise in the number of sales to 293,000.

The October Residex figures suggest some green shoots of recovery in Sydney, with house values starting to trend up – rising 1.36% for the month, up just over 2% for the quarter, and up 3.14% for the year to October with a median value of $677,500.

Darwin is the only other capital city detached housing market to be in positive territory for the year – up 3% to a median value of $512,000 – though values have come off in the last quarter.

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Melbourne house values have been treading water over the past three months, but are still down 3.15% for the year with a median value of $556,500.

Brisbane house values are unchanged for the year at a median value of $432,000, but have risen over the past month (1.1%) and quarter (1.63%) suggesting the market may have bottomed out.

Edwards says Brisbane has been in a relatively long period of correction and "is now clearly indicating that the correction period has passed".
 
<hr class="system-pagebreak">
 
Perth has been the strongest performing unit market over the past year, with values up 13.75% to a median of $431,000, with Darwin (8.77% rise to $420,000) and Sydney (2.96% rise to $500,000) the other capital city unit markets where median values have risen over the year to October.

Nationally, unit values have performed marginally better than houses and are up 2.13% for the year to October with a median value of $403,000.
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Edwards says Perth has been the “standout capital city performer”, adding that it has been “a better year for most Australians as far as the housing market is concerned”.


“Consumer sentiment is improving. The Westpac Melbourne Institute Index of Consumer Sentiment posted a rise of 5.2% from October in November, finally bringing it above the 100 point mark to 104.3.

“At last it seems RBA interest rate reductions may be having an impact. However, I suspect that the reduced negative press about the problems in Europe may also be playing an important role.

“I also have a suspicion that the number could have been even better if the coverage of the potential that the mining boom is coming to an end had not been so prominent in the media,” he added.
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Perth the standout performer while Brisbane bottoms out as house values tread water in October: Residex

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Lower private treaty discounting was necessary to secure sales across most of the Australian capital cities during October than September, according to Australian Property Monitors. Only Melbourne moved markedly against the trend.
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The amount of vendor discounting required to secure residential property sale is much lower than in October last year, a heat chart released by APM shows.
In Sydney, the average discount required in October 2012 was 6.1%, compared with 6.2% in September and 6.5% in October 2011.
Melbourne recorded a monthly increase in the required discounting, jumping from 6.9% in September to 7.2% in October.
Darwin vendors are required to offer the lowest discounts of 4.8% off initial price hopes to secure sales.
Hobart's average discount was a 8.6%, the nation's highest, but with a downwards trend, says APM research analyst Clinton McNabb.
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Melbourne vendors required to offer higher discounts to secure October sales: APM

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Key points to think about are the diversification of an investor’s overall investment portfolio; whether a direct property investment is still appropriate for an investor’s changing circumstances; and whether a property investment is still pulling its weight.
Financial planner Matthew Scholten is “certainly supportive” of clients having an investment property as part of their portfolios.
“Time has shown that good properties in the right location have done particularly well,” says Scholten, a practice principal of Godfrey Pembroke in Melbourne.
“[But] I don’t advocate having all of your assets in a single asset class, irrespective of what it is,” he adds.
Scholten says that one of the biggest risks for direct property investors is being overexposed to a single, high-cost and illiquid asset. He stresses to his clients the desirability of having a portfolio that is widely diversified for risk and return.
“I have some new clients who come to me who have a number of properties and not much else.”
From time to time, Scholten advises clients to consider broadening their portfolios by, say, adding more shares to their portfolios – perhaps through superannuation.
Sometimes, he recommends that a client consider whether a direct property is still appropriate given the person’s changing circumstances. Perhaps an investor is nearing retirement and no longer wants the task of looking after an investment property.
“We often suggest to such clients that it might be time to consider selling and putting the assets into a more tax-effective vehicle, such as superannuation.”
The advice will depend on an investor’s personal circumstances. The potential costs of selling a property, including CGT, should be taken into account.
Scholten stresses that the timing of a sale can be important from a tax perspective. For instance, an investor may plan to retire in a year’s time. By delaying the sale until after retirement, less tax may be payable.
Of course, the timing of a sale must make sense from an investment viewpoint.
A crucial consideration for investors is whether a property still deserves a place in their investment portfolio given its potential for capital gains and growth in rental yields.
“It’s not so much how the property has performed in the past, it is the asset’s prospect for future appreciation that is most important,” says Scholten.
“People come to me who have bought properties in, say, holiday or regional areas which have not done a great deal. I might suggest that they may be better off in something else.”
Scholten advises investors not to let negative-gearing tax breaks dictate their decision to invest or remain invested in a property. “Tax concessions won’t compensate for a poor investment.”
“If you buy a property the key is its ability to appreciate over time.”
 
For more questions to ask as to how your residential property portfolio is performing, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-how-is-your-residential-property-portfolio-performing">download our free eBook.</a>
To find out <a target="_blank" href="/news">where residential property should sit within your portfolio, sign up for our free webinar on Thursday, November 29 at 12.30.</a>
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How does my property portfolio fit my wider wealth-creation strategy? Countdown 5 to wealth-creation webinar

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Global serviced office provider Servcorp has expanded its portfolio of leased office space in Australia with new floor leasings in Melbourne, Perth and Parramatta but says the CBD office market remains soft.
Among its latest CBD office floor leasings is a whole floor in the BHP/Brookfield Place skyscraper on Perth’s St Georges Terrace, which along with leasings at 101 Collins Street in Melbourne and a floor in the new Deloitte Eclipse tower in <a href="/news">Parramatta</a>, takes its portfolio of leased office space to 27 floors across Australia and New Zealand.
Servcorp operates 30,000 square metres of leased premium office space, which last year brought in revenue of $54 million.
Serviced office space can be rented from around $260 per week with flexible leases starting from one month.
Servcorp chief operating officer Marcus Moufarrige tells Property Observer that contrary to what might be thought, the serviced office market operates in the same cycle as the overall office market.
“Serviced offices are cyclical, not counter-cyclical. They are a good barometer of what’s happening in the market,” he says.
Moufarrige says Australia got "pretty badly punished from a commercial real estate perspective" and expects a recovery to be about a year off.
"We’ve looked to take advantage by signing some more space in Australia.”
Servcorp targets space in only A-grade and premium office blocks with the emphasis on leasing space in prestigious and recognisable office landmarks.
The new floor in 101 Collins Street – the second floor leased in the building by Servcorp – is located at the Paris end of Collins Street and will be targeted at both emerging and established business organisations, ranging from small businesses to multi-nationals to companies looking for project space or rotating workspace solutions. Other tenants include Macquarie Bank, Cisco and Goldman Sachs.
Globally, it operates in 125 locations in 21 countries, which includes space leased in the Louis Vuitton building on the Champs Elysees in Paris as well as a pre-commitment to lease space in One World Trade Center – Manhattan's Freedom Tower – currently being built on the site of the World Trade Centre.
Servcorp’s biggest market in Australia is Sydney, where it has space in 10 office towers with the remainder distributed between Melbourne, Brisbane and Perth.
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Servcorp builds Australian portfolio with prestige leasings in Melbourne, Perth and Parramatta 

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Fast-growing 24-hour gym franchise Anytime Fitness says its status as a mini-major and “traffic drawcard” means it can negotiate significant rental incentives of up to 25% for new retail leases.
Anytime Fitness has opened over 200 gyms in Australia since launching locally in 2008 and has added around 100 new franchised premises in the past 12 months, the most recent being on Mount Alexander Road in <a target="_blank" href="/news">Essendon</a>, Melbourne.
It is part of a fast-expanding sector of low-cost 24-hour/seven-day-a-week gyms with premises in malls, retail strips and in bulky goods centres.
While Anytime Fitness does not reveal the commercial terms of its arrangements, based on rents paid in advertised commercial listings, Property Observer estimated franchisees pay net rents of around $300 to $350 per square metre, before factoring in incentives.
Typical space requirements range from 300 square metres to 600 square metres, with a preference for sites 400 square metres or bigger. Sufficient air-conditioning for the space is also a key requirement.
In addition to being in prime and convenient locations, offering great visibility of its signage to passing traffic, the gym group seeks sites close to local supermarkets or other major retailers that are well aligned with the convenience aspect of the model.
Matthew Rodrigues, internal operations manager at Anytime Fitness Australia, tells Property Observer there is “always some room for negotiation with landlords”, but it won’t pay rates outside of market conditions.
He says the gym franchise is classified as a mini-major in most shopping centres, acting as a traffic drawcard and “providing significant and ongoing visitation to the centre”.
“As a result of this, Anytime Fitness requires incentives to allow them to build their membership base and ensure the longevity of the business.
He says incentives include rent free periods, cash contributions or some refurbishment undertaken by the landlord “beyond a warm shell”.
“While they vary across the country, in the most part we are achieving incentives of between 10% and 25% of the initial lease term,” he says.
Rodrigues says that in most instances, once a new territory for a gym is chosen, a territory brief will be sent to the market, announcing Anytime Fitness’ interest in a particular area and its property requirements.
“The territory brief will request property submissions for consideration by the leasing managers.
“Sites will be assessed on their merits, and negotiations will commence on prime or preferred candidates,” he says.
The gym group also has a number of freehold properties within the portfolio and has also partnered with a number of developers on custom-built facilities.
Expansion plans are currently focused on Brisbane, Perth and Melbourne as well as a number of regional centres.
Jetts is another fast-growing gym chain, with more than 150 branches.
Earlier this year established gym group Fitness First put 24 of its 97 Australian gyms up for sale due to debt problems at its UK parent company.
Another gym chain, Virgin Active, has three branches in Sydney and one in the Melbourne CBD, but has not added any new gyms to its network since 2009.
In September, <a href="https://www.propertyobserver.com.au/leisure/ardent-leisure-group-to-buy-fenix-fitness-clubs-for-%24609-million/2012091456576" target="_blank">Ardent Leisure Group agreed to buy Fenix Fitness Clubs for $60.9 million</a> in a move signalling further consolidation in the health and fitness sector.
Anytime Fitness was introduced in Australia in 2008 by brother-and-sister team Justin McDonell and Jacinta McDonell Jiminez.
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Anytime Fitness able to negotiate significant rental incentives as 'mini-major' drawcard  

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With the first big “didn’t see that one coming unless you looked out the window” storms of the season hitting Brisbane at the weekend, the timing of the release of two new disaster information tools this week was quite apt, in my opinion.
A new earthquake map and a<a href="https://www.qldreconstruction.org.au/flood-check-map" target="_blank"> new national online flood risk portal</a> were both unveiled by the federal government this week. Developed by Geoscience Australia, both tools will be helpful for communities to understand their disaster risk and for planners involved in the future development of our country.
There is a plethora of information available online these days that buyers can access during the research phase of their property purchase.  In our capital city, for example, you can find out the current and future flight paths of Brisbane Airport on <a href="https://www.reiq.com/Content.aspx?page=Brisbane_flight_paths" target="_blank">reiq.com</a>, and drill down to the flood risk of a specific property through the Brisbane City Council website.
And for each and every buyer, the information that these and other tools provide will mean something different. Some will look at the data and say, well, there is a chance my property might flood in the next 20, 50 or 100 years, but I’m happy to take the chance. Others will not be happy with any flood risk whatsoever (which in Brisbane may leave you with limited options except perhaps living on the top of a 20-storey building) and so will head for the hills.
Some of Brisbane’s most prestigious suburbs are located directly under flights paths for Brisbane Airport, but the majority of residents in these areas are happy to put up with some occasional aircraft noise for the views of the river or their location close to the CBD and entertainment precincts.
All buyers have a list of what they are prepared to put up with and what they are not. Some people are happy to put up with living on a main road if it cuts down on their commuting time or is close to public transport options. Others know their area might be prone to specific weather events but the lushness of the bush or the relative isolation of the location more than makes up for the risk in their mind.
I live on the river in Brisbane’s inner-city suburbs. I didn’t live there last year during the floods, but my building was seemingly about four metres under water. What I have learned from living there is that the Brisbane River – although far from aqua blue – is an almost hypnotic vista to have, and I often find myself staring blankly at the water with very little going on between my ears. It is very peaceful.
I have also learned that being on the river seems to be much windier than in the suburbs. Saturday morning’s storm certainly confirmed that assessment. At about 10.40am, as one of the many storms that rolled over our city hit, it was pitch-black in my apartment. I was too scared to turn on any lights so I sat in the dark and listened as the world outside turned topsy-turvy. The wind was howling, all the windows started to shake (and leak, I was to learn later), and I could see white-tipped waves on the usually-tranquil river. The beautiful gum trees at the front of my building were swaying back and forth so violently they were almost bending at right angles.
Scared the windows were about to crack, I moved to the hallway where I would be safe from any shattering glass, and waited. The whole episode took about 15 minutes, but it was long enough for this New Zealand native to start quivering in her boots (well, sandals, actually). You see, I can deal with earthquakes. I grew up in Christchurch. But the big summer storms that hit Queensland almost every year are a relatively new phenomenon that I am yet to fully master. Earthquakes are probably scarier, on measure, but I guess it just depends on what you are used to.
Once the storm had moved onto its next victim, I looked around my apartment to find no damage except one very wobbly resident – me. Outside, on the riverfront, one of the aforementioned gum trees have snapped in half and landed smack-bang in the middle of the swimming pool. It was a surreal sight – although I couldn’t help but be a little annoyed that if it had landed one metre to the left I would have got a new car.
Nicola McDougall is executive manager for corporate affairs for the <a target="_blank" href="https://www.reiq.com/">Real Estate Institute of Queensland</a>. This article originally appeared on the<a target="_self" href="https://reiqblog.com/"> REIQ blog</a>.
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What the Queensland government's flood and earthquake risk maps will mean for property buyers

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The high-end restaurant market in Brisbane continues to tick along, perhaps surprisingly.
It is well known that discretionary spending has been subdued for some time and consequently those sectors dependent on this such as department stores have been experiencing tough conditions, while non-discretionary sectors, such as supermarkets and grocery stores, are performing more strongly.
Restaurants, particularly high-end restaurants, could be put into the discretionary spending category, but for some reason they are still performing well in Brisbane.
This is evidenced by the number of well-known high-end restaurateurs and chefs expanding their successful Sydney or Melbourne-based restaurants into Queensland’s capital.
The latest high-end restaurant to open its doors in Brisbane was Pony Lounge and Dining. With two successful branches in Sydney – The Rocks and Neutral Bay – Queensland-born chef Damian Heads has opened a third at the recently revamped Eagle Street Pier in the Brisbane CBD.
Other restaurants that have expanded from Sydney or Melbourne into Brisbane include Stokehouse, which is at South Bank, and Aria, which was opened at the Eagle Street Pier by Australian chef Matt Moran around three years ago.
The expansion of these already successful restaurants into the Brisbane market was in response to demand, and while in the current economic conditions many people weren’t spending their money on non-discretionary items such as clothing and electronics, the “MasterChef-phenomenon” is leading people to continue spending money on dining out.
Over the past few years television shows such as MasterChef have sprung up and found enormous popularity amongst viewers, and this exposure to cooking has led people to becoming more interested in food.
More people are getting into cooking and are trying different types of food, and it is this rise of food connoisseurs that is pushing this part of the retail market along.”
The move into Brisbane by successful Sydney and Melbourne-based restaurants had “changed the face of dining in Brisbane”.
Before Brisbane had little choice in the way of high-end dining, but as the city has become more destinational for several of Australia’s talented chefs and restaurateurs all that has changed.
I previously worked for Stockland and was involved in all the leasing deals for the company’s Eagle Street Pier refurbishment.
Restaurateurs want a location in the inner city and a spot on the river, or at least with river views, within a dining precinct as opposed to a standalone location.
As well as the food they provide, they’re selling an experience, and the ambiance of the restaurant and its location contributes to that.
Ben O’Connor is Colliers International retail leasing director
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High-end restaurant premises in demand in inner Brisbane

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Housing affordability improved for the seventh straight quarter in September to be at its highest level in three years, according to the latest HIA-CBA Housing Affordability Index.
Over the quarter, the index increased by 5.3% to 65.8% to be up by 15% compared with the same quarter in 2011.
Affordability improved due to the median dwelling price falling from $466,900 to $459,100, and mortgage rates falling from 6.4% to 6% over the quarter.
Affordability improved in all capital city and regional markets with Hobart the most affordable with an index score of 78.3 - up from 73.1, followed by the ACT (67.8 to 71.3) and Adelaide (70 to 71.1).
Sydney’s affordability score improved from 51.9 to 54.2 over the quarter, but remains the least affordable capital city market, followed by Melbourne (63.6), Perth (64.1) and Brisbane (68.5).
In Victoria, South Australia and Queensland, it is more affordable to buy in the capital city market than in the regions.
HIA chief economist Harley Dale says the run of consecutive improvements in some regional indices is even longer, “in some instances showing affordability has reached levels not seen since the early 2000s”.
“Housing affordability has been improving on the back of steadily growing incomes, falling interest rates, and easing dwelling prices,” says Dale.
“At the same time, however, transactions volumes have remained historically low as economic uncertainty has weighed heavily on households’ willingness to engage in the residential property market.”
“Tentative signs of a recovery in transactions volumes should hopefully gather legs – another interest rate cut in early December would enhance the prospects of this occurring.
“An increase in home buyer action can occur without generating undue inflationary pressure and would assist a much-needed recovery in new residential construction activity.”
A full explanation of how the index is calculated can be <a href="https://economics.hia.com.au/media/Affordability%20Index%20Methodology.pdf">downloaded on the HIA website.</a>
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Housing affordability improves to highest level since September 2009: HIA/CBA index

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Cross-collaterisation is a topic that often confuses many people. There are benefits of using this structure for a property purchase, but if you are thinking about building a portfolio you need to know the risks associated with it.
It is easy to be amazed at how your friends or work colleagues are buying investment properties, especially when they are on similar salaries and have similar lifestyles to you. There is no secret. What many do is use the equity they have built up in their home to give them a kick start. Over the last 10 years home values throughout Australia have increased, and in some instances doubled. This essentially provides every home owner a source of funds that they can now use. Some have used these funds to upgrade their homes, buy new cars, or make an investment, be it superannuation, shares or property.
Equity is the difference between the value of a property and the loans against the property. In this article we will be looking at using your available equity so that you too can purchase an investment property. Available equity is the actual amount of your equity that you can take out and use. Most lenders require you to keep 20% of the house value quarantined as a buffer. There are few ways that you can then access this available equity, putting it to work for you rather than letting it remain dormant. Two of these methods are discussed below:
1. Cross collaterisation. You can use the equity available in your home to purchase an investment property by securing the new purchase with both your home and the new property. Essentially this means you put no money down and the lender combines your home and investment together, giving you a new loan for the purchase price and the costs of purchase, i.e. the new loan is higher than the purchase price of the new property. The very important thing to remember with this strategy is that your home is directly linked to your investment property and the lender will take the title over your home to secure the new loan as well as the title over the new property.
2. Separate loans. This allows you to access only as much equity as you need to cover the deposit and costs of the new property as a top-up loan or line of credit against your home. Once this is done a separate loan, which may even be with another lender, is taken for the remaining funds required to complete the purchase on the new property. Once again there is no money down required from you, however the titles of your properties are separated and you have greater flexibility. Another advantage of doing it this way is you may find you have enough equity and serviceability to complete a second purchase.
There are positives and negatives with each of these structures. Those using cross-collaterisation will find that over time, lenders invariably start dictating terms, which you may not be comfortable with. For example, they will only lend you money based on the new investment loan being principal and interest, rather than the norm for investors, which is interest only. One of the main issues is that your only portfolio growth may have to stop as the bank will not lend you anymore funds. Imagine you have a house in Perth and over the last few years the value increased from $250,000 to $300,000, meaning you have greater equity to tap into. Now let’s assume you also have a two-bedroom unit in Western Sydney that  was worth $250,000 five years ago, but today it is only worth $200,000.
 
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Your portfolio is stagnant as it is still worth $500,000, despite the prices of individual houses changing. Hence the lender will be reluctant to allow you to access the equity from your Perth property. If you had followed the separate loan strategy and kept all your loans separate then it could be possible to access the equity from the Perth property to allow you to purchase again. You may even decide that you want to maximise your available equity and not use the full 20% deposit for the new investment purchase. This would mean that you will need to pay mortgage insurance. Mortgage insurance is a borrowing cost and hence tax deductible over five years for investment properties.
Many investors use mortgage insurance so that they can buy more than one property using their available equity. An often misunderstood concept with the separate loan structure is that the new top-up loan or line of credit although secured against your home will still be considered an investment loan and hence the interest will be tax deductible. One of the benefits of cross-collaterisation is that you do not have to pay mortgage insurance, as the lender is tying up all the available equity in your property rather than just the amount required.
You will find that the lenders are delighted to assist you with this structure as it makes it harder for you to leave them and difficult to separate the loans in the future so you must work with that same lender for any future purchases.
In summary, most investors want to combine the benefits of using none of their own savings with the tax minimisation advantages when buying an investment property. Releasing equity from your home in a structured way allows you to keep your savings in the bank.
Your savings could even assist you further by putting them into a 100% offset account against your personal debt, i.e. your home loan. Accessing equity in your home or current investment property allows you to leverage your current situation and use the lender’s funds to assist you in buying a property and hence buying you time in a growing market.
Property investment is a long-term strategy in assisting you in achieving your goals. The more exposure you have to a growing market the more opportunity to grow equity and in the long term the more equity you have to help you fulfil your goals.
Bear in mind that all geographic markets do not grow at the same time or at the same rate, so spreading your exposure and hence risk across different states, towns or suburbs is one investment strategy to reduce risk. So buying an investment property around the corner from your home may not give you all the advantages you imagine. Obviously you need to be comfortable that you can service any new loans and maintain a standard of living.
Jane Slack-Smith is director of <a target="_blank" href="https://www.investorschoice.com.au/">Investors Choice Mortgages</a> and founder of <a target="_blank" href="https://www.yourpropertysuccessnow.com.au/">Your Property Success</a> online education teaching investors to find the right property at the right price. Winner of the Your Investment Property 2009 Mortgage Broker of the Year. Jane is a regular property commentator, author and experienced investor. This is an extract from her new book <a target="_blank" href="https://yourpropertysuccess.com.au/">Your Property Success with Renovation</a>, published by John Wiley &amp; Sons.
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How to use equity in your home to buy an investment property: Jane Slack-Smith

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A house price crash has been rated as a low to medium risk of occurring in Australia, according to the latest Financial System Stability Assessment report from the International Monetary Fund (IMF).
The report does note that the banking sector is heavily exposed to the housing market, with residential mortgages the banks’ single largest asset, but says the financial system is buffeted from an “unlikely” house price collapse because the household sector is not highly leveraged.
The report says an average loan to value ratio of 50% on mortgages provides the Australian financial system with “a buffer against a large decline in house prices”.
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In addition, the IMF notes the differences in the Australian mortgage market compared with other countries and the propensity of borrowers to pre-pay their mortgages.
“[In Australia] there is no tax incentive for owner-occupier debt,  and prepayment on housing loans is prevalent and sizable.
“Mortgages are full recourse loans, giving borrowers an incentive to continue making payment even under stress,” the IMF adds.


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Apart from the diligence of borrowers, the IMF says that at a central bank and government level, there are good structures in place to mitigate against structural risk from Australian banks' heavy exposure to the residential mortgage sector.
The IMF says authorities have “considerable policy space to respond to negative shocks given low public debt, a flexible exchange rate, some scope for monetary easing, and a well-capitalized banking system”.
However, it does warn of some risks to financial stability due to about a quarter of mortgages having a loan to value of 80% or more at origination mainly by first-home buyers and low-income households.
“The buffer for this group is much smaller and a large decline in house prices would have an impact on asset quality,” says the IMF.
But a house price crash is unlikely given that there is no oversupply of housing as was the case in the US sub-prime-fuelled mortgage crash.
“No construction boom has accompanied the run-up in house prices, and supply remains quite tight,” says the IMF.
While the report notes that house prices have “declined gradually over the past year” it anticipate a further correction in commercial property prices.
“Commercial real estate prices have seen a large correction since 2008 but still appear high by international comparison,” says the IMF, which calculates that commercial real estate represents about 10% of banks’ exposures and a sharp fall in prices would impair banks’ balance sheets.
The report does highlight how heavily Australia depends on the residential property market, with 90% of Australia’s household debt being housing loans, above the average of advanced economies in the G20.
“Strong house price gains over much of the past two decades have made Australia’s house prices relatively expensive now. This combination exposes banks to negative income shocks generated by a sharp increase in unemployment.
“Moreover, around 30% of new mortgages are interest-only, a potentially riskier type of lending than regular mortgages, and 55% of those mortgages are interest-only investor loans.
“However, the risk is mitigated by a number of factors, including much larger household assets that dwarf household debt, relatively low household leverage and increased household savings over recent years."
The report also notes that loans with an LVR of greater than 80% are “generally covered” by lenders mortgage insurance (LMI).
“The banks’ capital positions seemed capable of withstanding a range of adverse scenarios ranging from slow growth to severe macroeconomic shocks, even after taking into account banks’ cross-border-exposures.
“Under the most severe scenario, aggregate Tier 1 capital (funding sources to which a bank can most freely allocate losses without triggering bankruptcy such as ordinary shares and retained earnings) remains above the minimum threshold, although total capital of some banks falls slightly below the threshold after two years.
“The liquidity stress test, which simulated a bank-run type scenario, indicates that banks would be able to withstand a severe liquidity shock with support from the RBA under a new Basel-approved facility, and withdrawals of funding from banks in the United States, United Kingdom, and Japan would have the largest impact,” says the IMF.
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