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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Slow retail sales growth over the past year has produced a difficult retail trading environment. Retailer margins are being pressured as low turnover growth and fixed rental increases raise occupancy costs, however retail A-REITs are forecasting nominal distribution yield growth of up to 4% in 2013.
Retail sales growth remains positive overall at 2.6% per annum, although this is significantly below its long-term average of 6.2% per annum.
Department stores and household goods retailers are being particularly affected. Online sales now represent approximately 5.5% of total retail sales and are growing at around 20% per annum.
To date, this has not represented a substantial threat to high-quality shopping centres, and many retail A-REIT managers have adopted strategies to incorporate the effects of online retailing such as purchase collection centres and enhanced personal mobile device technology. The recent failure of the Click Frenzy online sale will have done little to enhance the reputation of the technology to the unconvinced.
Measures of annual turnover growth in the retail A-REITs have generally improved over the year to September 2012, however remain below long term averages at around 1% to 2%.
Fixed rental increases embedded in existing leases are reflected in average rental growth of around 2% to 3% across the retail A-REIT sector.
This contrasts with releasing and new leasing activity which shows reductions in rent of between 1.5% and 3%. Lease incentives, often in the form of contribution to fit out, range up to 20% for five-year terms for some shopping centres, particularly those with a high discretionary retail element or those which do not dominate their catchment areas.
While regional shopping centre vacancies have increased from 0.6% to 1.2% over the past two years, the average vacancy in the retail A-REITs is 0.5% demonstrating the value of active professional management.
The retail A-REITs have been active in capital management, portfolio development, acquisition and disposal in order to maintain and enhance the quality of their portfolios:
<ul>
<li>Westfield Retail Trust and Westfield Group have recently undertaken a complex asset swap and restructure of seven Australian shopping centre assets held in joint venture with AMP Capital; </li>
<li>CFS Retail Property Trust is developing Emporium, a shopping centre in the Melbourne CBD. Emporium is stage two of a project alongside the refurbished Myer building which is expected to cost in the order of $740 million;</li>
<li>Charter Hall Retail REIT has recently raised $100 million to fully equity-fund the acquisition of three sub-regional shopping centres at a 2% premium to net tangible assets (NTA); and</li>
<li>The listing of Woolworths’ proposed new Shopping Centres Australasia Property Group on the Australian Securities Exchange will increase the liquidity and diversity of retail A-REITs. The total value of the retail property portfolio will be in the order of $1.4 billion.</li>
</ul>
Retail A-REITs provide investors with an exposure to quality retail real estate portfolios and management expertise. The Shopping Centres Australasia Property Group is likely to yield an income return higher than the retail sub-sector, depending on its final share price. The additional development return potential from the Westfield transaction should increase its distribution return. Westfield Retail Trust’s share buy-back will improve its NTA. The subsector should benefit from this acquisition and development activity and result in some share price growth despite the below trend retail trading environment. Fixed rental increases at rent reviews will largely offset rent reductions at lease renewal while cost efficiencies and low interest rates will cushion slow retail sales growth for retail A-REITs.
Mark Wist is senior asset consultant at <a href="https://www.atchison.com.au/" title="Atchison Consultants" target="_blank" rel="nofollow">Atchison Consultants</a>.
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markwist-Vaq6S8Xoby

Retail A-REITs grow despite economic environment

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Beneath the smoke-stacks and giant mining pits, a Mount Isa retail complex in the centre of the mining town featuring a Blockbuster, Subway and Pizza Hut is expected to fetch around $3 million when it goes to auction on December 12.
A sale at this price would represent a yield to investors of around 10%
Mount Isa is a remote north-west investment hotspot with rents having risen 22% over the past two years driven by demand for temporary accommodation from mining employees, according to a <a target="_blank" href="https://www.propertyobserver.com.au/queensland/rents-and-house-prices-rise-in-mount-isa-due-to-demand-from-mining-employees/2012110557629">recent report by PRDnationwide.</a>
There are five properties up for sale in one line on a site measuring 2,250 square metres at 17-19 Simpson Street in the centre of Mount Isa.
The other two premises are tenanted by lunch and juice bar Something Zesty and four-wheel drive accessory business, TJM.
The retail complex is being marketed by Raoul Holderhead and Pat Kelly of Burgess Rawson alongside Nellie Smithurst from Jays Real Estate and will be auctioned at Crown Casino Melbourne on December 12.
Holderhead tells Property Observer likely buyers include Melbourne investors, local Mount Isa investors and far North Queensland investors.
All five properties are leased for five years with fixed 3% annual rent increases plus renewal options.
Combined the five leases bring in annual net rent of $328,000.
Mount Isa is around 900 kilometres inland from Townsville and 1,800 north west of Brisbane. The main mine operator and the town’s biggest employer is Xstrata which operates an underground copper mine and underground zinc-lead-silver mine – among the biggest underground mines in the world.
The population of Mount Isa is 33,000.
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lschlesinger-FZcF9M3vE6

Mount Isa retail complex expected to sell on 10% yield at auction

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Keeping your investment properties in top condition makes sense from a cost-control and tax perspective.
And quality tenants are drawn to well-maintained properties. Ongoing maintenance is usually tax-deductible. However, Paul Banister of accountants Grant Thornton warns: “If you let a property run down, the larger expenditure needed may be a non-deductible capital cost.”
As property manager of more than 300 investment properties across 100 Sydney suburbs, Bernie Mitchell advises clients to place a strong emphasis on maintenance.
“The condition of a property plays a big factor in attracting the right tenants,” says Mitchell, managing director of Focus Property Management.
Mitchell suggests that landlords plan well ahead to undertake regular maintenance. Typically, regular maintenance work is recommended at the end of a lease or every 12 months.
“By planning ahead, we try to ensure that the client has a buffer of funds to pay for the maintenance; large expenses shouldn’t suddenly pop up.” A property often simply requires a fresh coat of paint and new carpet.
 
For more questions to ask as to how your residential property portfolio is performing, <a href="http://propertyobserver.com.au/ebooks/free-ebook-how-is-your-residential-property-portfolio-performing" target="_blank">download our free eBook.</a>
To find out <a 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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mlaurence-vhAHaLZT8y

Is my property maintenance falling behind? Countdown 3 to wealth-creation webinar

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All your marketing has been a hit and you have received applications from prospective tenants. Depending on your personality this can be the fun part of property management, if you are a “people person”, or it can bring a great deal of angst as you try to select tenants you feel 100% certain will do the right thing throughout their tenancy.
My approach is to keep it simple but always be thorough.
Nowadays teenancy applications come through in one of the following formats. They are either on the agency’s tenancy application form or submitted electronically via a 1Form application.
1Form allows for tenants never to have to complete a paper tenancy application form again as it stores the tenant’s personal information, including proof of identification, for a small fee. This is a small step towards a property manager working in a paperless office (well, I can dream, can’t I?).
If you are employing the services of a property manager or agency, they will process the tenancy applications and check all the references and come to you with a shortlist of suitable applicants.
You need not be involved until it’s time to approve the tenant applications.
However, it’s important to have an understanding of this process.
The first thing you need to do is review the application forms and ensure that they have been 100% completed. Time and time again I see applications submitted for properties that are not complete. They are missing vital parts of the applicant’s personal or employment information or the identification paperwork has been forgotten.
Before you can start on anything you need to ensure the applicants have signed a privacy statement. Tenants should be aware that they have a right to their private information being kept confidential, and should expect to be asked to sign a privacy statement.
Proceeding with tenancy applications
The key to processing any tenancy application form is to find out what the story is. You need to confirm current employment and previous employment (if the current employment is less than two to three years). This includes confirming not only the salary package for your applicant, but the length of their employment and the terms of employment, i.e. are they employed on a full-time, part-time or casual basis? Are they currently on a probationary period because they have just commenced with that company? If so, how long is that period? How would the person providing the reference describe them? And finally, who is providing the reference? Employment should only be confirmed by a direct manager, HR department or team leader (not a workmate). You may be surprised to read that sometimes people are not totally honest on their application forms, so it’s up to you to piece together the story. Yes, it may take a little longer than you like, however it could save you time, expense and heartache in the long run.
The applicant’s current tenancy history and previous tenancy history must also be confirmed. It’s not sufficient to simply receive a copy of the tenant’s recent payment ledger. Nor is it enough to make a call to the agency and have the person answering the telephone say, “yeah they are great tenants, you won’t have a problem.” Again you need to have a thorough understanding of the applicant’s story.
Character references, while they generally only say nice things about a person, are useful in building all parts of your story. I would always ask a character referee, “If you had a rental property would you rent your property to the person?” If there is a pause or stumble, then maybe this applicant isn’t the most suitable tenant for your property.
It’s imperative you have an understanding of why the applicants are moving out of the current property.
<ul>
<li>Do they own it and have they sold it?</li>
<li>If so, did you speak to the selling agent?</li>
<li>What were they like to deal with?</li>
<li>How was the property presented?</li>
</ul>
In Western Australia, at the time of submitting the application form, some owners/property managers will ask a prospective tenant to pay an option fee. This shows that the tenant’s intentions are genuine. On the application form it will detail if all or part of the fee can be kept if the tenants decide not to go ahead with the tenancy. If the owner decides not to proceed with the tenancy, then they must return the fee to the tenant in full. If the tenant takes up the tenancy, then the fee is usually credited towards the first month’s rental payment.
 
<hr class="system-pagebreak">
Approving tenants 
If you have a property manager or agent managing your property, when they are satisfied with the processing of the tenancy applications they will present the applications to you (the owner) for consideration. If you’re managing your own property this is the time to review and compare the most promising applicants. Now, with everything, everyone likes things done differently.
Some agents will call you, or perhaps SMS or email a summary of the processed applications.
The summary may look a little like this:
Move in date/commencement date of tenancy:
Length of lease:
Rent per week:
Who/relationship (couple, friends, family, etc.):
Age(s):
Occupation(s):
Net weekly (combined) income:
Summary of rental history:
• Rent amount paid
• Length of occupancy
• Breach notices for late rent or damages
<div>
• Any pets?
</div>
This is really a simple yet effective way of summarising an application. It’s also useful to keep, to refer back to if anyone suffers any memory loss after the tenants move into the property and no one can remember providing permission for the approved applicant to keep a pet at the property!
There are two popular databases used by property managers to completely put a landlord’s mind at rest. They are the National Tenancy Database (NTD) and TICA. The NTD is a tenant database exclusively for the use of estate agents. The system provides the searcher with access to over 1.5 million individual tenant records, both residential and commercial, provided by over 7,000 real estate agents throughout Australia.
The database also provides access for commercial agents to full Australian Commission records, company credit reference association files, court judgements, bankruptcies, etc. The National Tenancy Database also offers full debt recovery at no costs unless funds are recovered. Note: It does not include legal expenses.
Information available by checking prospective applicants on the database includes:
<ul>
<li>Whether there are any unpaid orders from Victorian Civil and Administrative Tribunal (VCAT) (or similar state body), i.e. for unpaid rent, unpaid damages</li>
<li>Records of tenants who have vacated properties and referrals back to previous managing agents where they still have an interest in the tenant</li>
<li>Tenancy agreements broken by the tenant</li>
<li>Dollar value of any damages to properties</li>
<li>Current tenant notification, giving agent name and contact telephone number</li>
</ul>
TICA provides similar information. Often these databases are portrayed as tenant "black lists", however this is certainly not the case. The databases are used exclusively by agents with fees payable according to how many checks are carried out.
You should complete the tenancy database check at the final stage of processing the application, when all the previous checks have come up clean. If you find out earlier on in the process that the tenant has been consistently late with rent, there’s no need to pay to check these databases, as you will have already rejected this applicant.
So providing the tenancy database check is all clear, then it’s all systems go to congratulate the tenant.
 
<hr class="system-pagebreak">
Bond
In Victoria the approved tenant is required to pay the bond and first month’s rent to secure the property in their name. Payment may be made via EFT, dropping off cheques to the property manager’s/landlord’s office, depositing the monies directly into the agent’s trust account. The Bond Lodgement form must be completed and forwarded to the Residential Tenancies Bond Authority (RTBA) for lodging within 10 business days of receiving payment for the bond.
Ingoing condition report
Now before you go ahead and hand over the keys of the property to your winning applicant, you need to go through the property and complete the ingoing condition report. The condition report is a room-by-room document that should detail the condition of the property throughout – both inside and outside – and the overall presentation/cleanliness of the property.
The condition report should be thorough and include as much detail as possible. This is because not only will you use the same report at the conclusion of the tenancy agreement (to enable you to compare the property at the beginning of the tenancy and again at the end of the tenancy) but it may be required to be used as evidence at any tribunal hearing should a dispute arise.
Please take the time and prepare a detailed report. It should never be a five-minute inspection and ultimately it will save you in the long run and reduce the possibilities of unnecessary disputes.
A colleague recently told me it took her six hours to complete an ingoing teport on a property in Brighton where the rent was $3,000 per week.
Tenant sign up
I believe the tenant sign up is extremely important and it should be treated as such. It’s where the expectations are set as to how the tenancy is to run. Throughout my career I have seen many different methods of conducting the tenant sign up.
A tenant sign up needs to be an experience! It’s so important to take the time to thoroughly explain all the terms, conditions and clauses throughout the lease/tenancy agreement. While you as the property manager or owner may have been through this process many times before, has the person sitting across the table? Is this their first experience of renting? If you don’t take the time to explain to them and outline your expectations of them, then how are they ever going to know if they can or cannot do something?
It’s also not just about highlighting a few areas where the tenants need to sign. You have a duty to explain to them things such as:
<ul>
<li>Even though they have signed a bond lodgement form, do they know where the monies are held or what happens at the end of their tenancy? Don’t forget to explain how they receive their bond monies back at the conclusion of their tenancy.</li>
<li>Utilities – are the services included? If not, who has to arrange for their connection? The property manager/agent, the owner or tenant?</li>
<li>What are the tenant’s responsibilities? Each state has an information booklet which must be provided to all tenants at the time of signing their initial Tenancy Agreement. The information booklet/flyer is called something different in each state:</li>
</ul>
Victoria: Renting Rights &amp; Responsibilities
New South Wales: Fair Trading Fact Sheet – New Tenant Checklist
Queensland: Renting a house or unit in Queensland (Form 17a)
Western Australia: Renting a home in Western Australia – a tenant’s guide
South Australia: Consumer and Business Services – Information Brochure
Northern Territory: A Guide to Renting in the Northern Territory
Tasmania: The Rental Guide
ACT: The renting book
<ul>
<li>Have they seen a condition report before? Perhaps not, particularly if they have never rented before, so take the time to walk them through the document. Explain to them that a condition rReport is a room-by-room document that details the condition and presentation of the property. The condition report is completed prior to the commencement of the tenancy agreement by the property manager/agent/ owner. It’s imperative that you outline what they are required to do with that document and what is the expected timeframe for the return of that document? What happens if that document is not returned? Are there consequences at the end of the tenancy agreement?</li>
<li>Keys, remotes, swipe passes – how many are being handed over? Is there a key for all door locks, window locks, letterbox, side gates, etc? I would recommend making a photocopy of all the keys, remotes, etc. that you hand over to your tenant. This ensures you receive them all back at the end of the tenancy and it may reduce any additional costs between tenancies and avoid the outgoing tenant saying, “I never received a letterbox key,” or, “I only received one garage door remote”.</li>
<li>Urgent maintenance –  what happens if the kitchen tap won’t turn off and it’s 9.30 on a Saturday night? Under most legislation, an after-hours contact number MUST be provided to tenants to ensure they can have matters such as these addressed. That contact number could be the owner’s, the property manager’s or the agent’s preferred registered and qualified tradesperson. </li>
<li>Is the property within an owners’ corporation/body corporate/strata management set up? If so, you are required to provide tenants with a copy of the rules and regulations specific to that group of properties.</li>
<li>If the property forms part of a high-rise apartment building, what is the process of moving in and out of the building? Often there are allocated times and days and they must be strictly adhered to. The lift may need to be booked specifically for your tenant’s move in or out and often this may include a heavy duty wall covering being installed to prevent any damage to the inside of the lift.</li>
</ul>
As you can see from the list above, there are many aspects that need to be covered in a tenant sign up so allow somewhere between 30 to 60 minutes to sit down with your tenant to run through everything. While signing all the paperwork probably won’t be one of the most exciting things they do in their life, it’s really up to you to make it a great experience.
Summary
<img style="margin: 5px; float: left;" src="/images/stories/2012/11/simple.jpg">One of the main challenges for self-managing property owners is the relationship with the tenants. You don’t need to be a friend to your tenants. In fact there’s no need to get to know them too well. Your rental property is there to provide you with the best financial return possible. That means you need to put the rent up sometimes, make sure you recoup for any damages and sadly even end tenancies that are not going smoothly. Putting a property manager in place to deal with all this can really make a difference to how well you sleep at night and how successful the return on your investment can be.
Many times I have spoken to property owners who have been quite upset that, despite being comfortable managing staff in their own business and dealing efficiently with people on a day-to-day basis, they had failed to manage their tenants successfully.
Leah Calnan is the director of <a href="https://www.metropm.com.au/" title="Metro Property Management homepage" target="_blank">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
Leah is the author of<a target="_blank" href="https://majorstreet.com.au/simple-and-successful-property-management/"> Simple and Successful Property Management</a>, published by Major Street. This is an excerpt.
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A step-by-step guide to securing tenants for your investment property: Leah Calnan

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Lesseys Garage, a 400-square-metre two-level East Sydney warehouse, is set to become a inner-city eaterie.
It sold at weekend auction for $3.6 million, with development approval for a restaurant at the Riley Street, Busby Lane and McCarthy Place location.
The approval was secured after costly Land &amp; Environment Court proceedings that followed its sale at <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/lowy-family-makes-%241.3-million-in-woolloomooloo-garage-sale/2011100551824">$2,675,000 </a>in October last year by the Lowy family of Westfield fame. 
The Lowy family offloaded two Riley Street ydney semi-industrial premises in the shadow of their longstanding William Street, Sydney, headquarters last year.
They'd held the vehicle repair station properties since the 1970s.
The approved plans are to rebirth the garage as a 190-seat eaterie.
Bidding at the weekend auction opened at $3 million with around five interested parties, but two that were particularly serious. It sold to Bondi restauratuer Brody Peterson, owner of two of Bondi Road's dining establishments, The Flying Squirrel tapas bar and The Stuffed Beaver diner. After the weekend auction the auctioneer Damien Cooley tweeted: "On fire! Auctioneer <a href="https://twitter.com/damiencooley" dir="ltr" target="_blank"><s>@</s>damiencooley</a> sold 57 Riley St East Sydney for 3.6m Agents City Commercial, CBRE &amp; BresicWhitney."
It was marketed as "an incredible" opportunity to acquire a true warehouse building on the doorstep of Sydney’s CBD directly opposite the new Woolworths development.
"Offered with a valuable approval for food and beverage," the marketing said. 
Its 1934 construction to a E B Wilshire &amp; Hodges Architects-design was recorded in<a target="_blank" href="https://www.propertyobserver.com.au/https://trove.nla.gov.au/ndp/del/article/17111454"> the SMH</a>. 
It was sold by commercial property agent Warren Duncan, who bought it in partnership with eastern suburbs property speculator Adam Davis, who'd briefly considered finding their own tenant, with hotelier Fraser Short among the mooted occupants.
Brody Peterson was attracted by the fact that all the development approvals were in place, including the primary service authorisation, which allows licensed restaurants to serve alcohol without a meal.
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Lesseys Garage, East Sydney sells to Bondi restauratuer Brody Peterson, owner of The Flying Squirrel and The Stuffed Beaver

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The confidence level among Australian consumers (as measured by the Westpac-Melbourne Institute Consumer Sentiment Index) has been on an upwards trend since April this year, and over November the index recorded a sharp rise to reach the highest level since April 2011.  An easy way to interpret the index is when the reading is over 100, optimists are outweighing pessimists, and when the index is lower than 100 pessimists are outweighing optimists.  In November 2012, the Consumer Sentiment Index was showing a value of 104.3.
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I have found measures of consumer confidence to be one of the most important indicators for the housing market, with the index showing an 85% correlation with the number of transactions in the housing market.  To put it simply, when consumers are lacking in confidence, transaction volumes tend to be low, and when confidence is high, the number of home sales follows suit.
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Confidence readings aren’t the same across all of the states.  In fact, Queensland, South Australia and Tasmania are continuing to record index values below the 100 mark, although each of these states has recorded an improvement in the confidence reading.  The most optimistic states are New South Wales, Victoria and Western Australia,  where the index is now tracking higher than 100 (note the index is not available for the territories).  Interestingly, the Confidence Index has moderated in Western Australia, most likely a response to a weaker resources sector, while New South Wales and Victoria are the primary drivers of improving confidence levels.
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One of the subsets of the Consumer Sentiment Index is the "time to buy a dwelling index", which has shown a significant improvement nationally and across each of the states.  The national index is now showing the highest reading since September 2009 and most of the state level indices are approaching their 2009 highs as well.
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State-by-state breakdown on page 2


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The indicators are further affirmation that the Australian housing market has moved out of the down phase of the cycle, and there is mounting evidence that conditions will continue to improve.  Average selling time has shown an improvement, so has the level of vendor discounting, and auction clearance rates are holding firm above 50%.  Additionally we have seen values on an improving trend since the beginning of June.  Despite the October fall in the RP Data-Rismark Home Value Index, it is looking like the November reading will be another positive month for the capital city housing market, with values up 0.3% over the first 21 days of November.
Tim Lawless is national research director of <a href="https://www.myrp.com.au/" target="_blank">RP Data.</a>
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Time to buy home confidence up in NSW, Victoria and WA, but Queensland, SA and Tasmania still pessimistic: Tim Lawless

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The Masterchef Australia warehouse cooking premises in Alexandria has been sold for $5.5 million.
The sale preceded the decision by Network Ten and Shine Australia to relocate their major television series to the Melbourne, arguably Australia's food capital, where the fifth season of the cooking reality show will be filmed at the Melbourne Showgrounds.
Interests associated with the Maribondo-Aspden family, which is Havaiana's Australian distributor for <a target="_blank" href="https://www.havaianasaustralia.com.au/001_Havaianas/pl.php?Operation=SetSessionVariable&amp;Variable%5Bwhatsnewfilter%5D=-1&amp;Variable%5Bviewallfilter%5D=-1">Havaiana thongs </a>, were the warehouse buyers. It's expected the business might open at the Doody Street showroom premises.
In the meantime a small 185-square-metre space with polished timber hardwood floors within the complex has been put up for lease through Mark Furneaux at Durrant Furneaux Mascot. No leasing price has been offered.
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The widely popular reality cooking challenge series had leased the 1925 warehouse since its 2009 inaugural season.
Masterchef’s producers were attracted to the building after its 2009 refurbishment, which reputedly set a new benchmark for the city fringe industrial suburb.
No expense had been spared to furnish it – especially its mezzanine perimeter overlooking a central, open-plan, light-filled ground floor area with polished timber floors and formal entry via twin doors.
The net lettable building with brick walls and high exposed timber ceilings totals about 1,500 square metres plus a private courtyard. The property also offers 20 car spaces.
The neighbouring warehouse at Alexandria has also been recently sold for $7.42 million to the Haikin family, owners of the Australian franchise of the Max Brenner chocolate shop, which has lodged plans for its workplace.
Colliers International Industrial recently noted in its first half 2012 South Sydney industrial report that vacancy levels continued to remain tight as tenant confidence slowly returned.
It noted lease transaction volumes continued to remain low due to a lack of space available for tenants to relocate or enter the market, with only 10 buildings over 4,000 square metres for lease in the South Sydney market – of which four were under negotiations.
Prime grade net face rents continue to range from $130 to $160 square metre per annum, while secondary grade rents average between $100 to $120 a square metre per annum.
Colliers International forecasts that face rents will begin to show signs of growth in the South Sydney industrial market over the course of 2012, as tenant confidence continues to increase and availability remains tight.
The sub-1,000-square-metre sales market within Sydney’s South has continued to record robust levels of sales transactions occur.
The majority of sales activity remains in the sub-$10 million price range, with owner-occupiers, private investor and those looking to purchase for their self managed super funds dominating transactions.
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Portion of Masterchef Alexandria warehouse space up for lease following $5.5 million sale

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These are 10 of the traditionally pre-eminent guises of investment risk, but specifically as they apply to Australian property investors.
1 Market risk (or systematic risk)
Market risk may affect all investments in an asset class in a similar manner, such as in the event of a market-wide price crash. As such, market risk that cannot easily be mitigated through diversification. While buying properties in different states might diversify market risk to a partial extent, if the wider property market crashes, diversification is unlikely to assuage the systematic risk successfully.
Property investors should additionally invest in other asset classes that tend to move in a non-correlated manner to real estate. Property investors can also focus upon a longer investment time horizon which allows correcting markets greater opportunity to recover.
2 Liquidity risk
Equates to the possibility that an investor may be unable to buy or sell an investment when desired (or in sufficient quantities) due to limited opportunities.
Illiquidity is a salient risk in real estate. It is difficult to sell a property quickly should the need arise, which is not the case for large-cap stocks or government bonds. Liquidity risk in Australian property is best mitigated through investing in landlocked capital city suburbs with eminent demand and constrained supply.
3 Specific risk (or unsystematic/business risk)
Equities investors and fund managers talk much of specific or business risk, being the measure of risk associated with a particular stock or security. Also known as unsystematic risk, this typically refers to the risk associated with a specific issuer of a security. Businesses in the same industry may have similar types of business risk, and issuers of stocks or bonds may become insolvent or lack ability to pay the interest and principal in the case of bonds.
Specific risk in property investment is somewhat different, and rather relates to the risk of acquiring a loss-making property or one which delivers sub-optimal returns giving rise to opportunity cost. Specific risk can be mitigated through diversification, although this can represent a challenging proposition in property as dwellings tend to be expensive.
One frequently invoked strategy of property investors is to acquire different types of property in different states. Careful, detailed due diligence and research of any property purchase also tends to reduce (if not eliminate) specific risk.
4 Interest rate risk
Normally refers to the possibility that a fixed-rate debt instrument will decline in value as a result of a rise in interest rates. Where an investor buys a security offering a fixed rate of return, he introduces an exposure to interest rate risk. Examples thereof including bonds and preference shares (preferred stocks).
In Australian investment property, the interest rate risk instead lies in variable rate mortgages as the cost of debt capital can materially increase when the Reserve Bank ratchets up the cash rate. The risk can be mitigated through the use of fixed-rate mortgages and prudent cashflow management.
5 Foreign exchange risk (or currency risk)
Arises from a movement in the price of one currency against another. When the Australian dollar appreciates, the value of foreign investments declines. Conversely, if the dollar weakens the value of foreign investments effectively increase.
Presently the strong Aussie dollar attracts investors to overseas investments, in particular to US real estate. A good strategy? Maybe. Our dollar may depreciate, and regional US property markets have corrected. But is there a foreign exchange risk in investing overseas? Absolutely, for exchange rates are inherently unpredictable. Few commentators in 2008 opined that the Aussie dollar could ever be worth 110 US cents, and yet it indeed became so.
Currency risk tends to be greater for shorter-term overseas investments, which have insufficient time to revert to a mean valuation in the same manner as longer-term equivalent ventures.
 
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6 Sovereign risk (or social/political/legislative risk)
Sovereign risk is associated with the possibility of unfavourable government action or social upheaval resulting in investment losses. Governments retain the power to amend laws affecting investments, and rulings which result in an adverse investment outcome are representative of legislative risk. One frequently highlighted legislation risk in Australian property investment is the possible phasing out of the negative gearing tax rules.
Investing in developing or unstable countries variously offers opportunities for substantial returns but, reflecting the principles of the risk-return trade-off (of the CAPM model) may bring a heightened associated sovereign risk.
7 Credit risk
Credit risk normally refers to the possibility that a bond issuer becomes unable to service expected interest rate payments or a principal repayment. Typically, the higher the credit risk is, the higher the interest rate on the bond.
In property investment, credit risk often lies in the investor rather than the lender, although there is of course a possibility that lending institutions can become insolvent as was seen in the US as the subprime crisis played out. Property investors should retain a liquid buffer in order to mitigate the risk of mortgage default.
8 Call risk
Also usually refers to bond issues and the possibility that a debt security will be ‘called’ prior to maturity. In bonds, call risk prevails when interest rates fall, as companies redeem bond issues with higher coupons and replace them on the bond market with lower interest rate issues to save cash.
Can call risk impact Australian property investors? Indeed, but conversely when interest rates run higher. Investors with high exposure to adverse interest rate movements may be considered risky by mortgage providers cyclically. Investors in Australian commercial property have periodically been subjected to the real estate equivalent of a margin call, being forced to reduce debt exposure through the redemption of assets.
9 Reinvestment risk
Usually refers to the risk that future coupons from a fixed-interest investment will not be reinvested at the interest rate prevailing when it was initially purchased, a risk that increases in likelihood when interest rates decline. Zero coupon bonds are the only fixed-income instrument to eliminate reinvestment risk due to having no interim coupon payments.
The most straightforward strategy for property investors to avert reinvestment risk is simple: never sell.
10 Inflation risk
Also known as purchasing power risk, the possibility that the value of an asset or income stream will be eroded as inflation diminishes the value of a currency. The risk is the potential for future inflation to cause the purchasing power of cash inflows from an investment to decline.
Inflation risk is best countered through investing in appreciating assets such as real estate, dividend-paying stocks or convertible bonds, each of which has a growth component allowing them to outperform inflation over the long term. The uplifting news for property investors is that favourably located Australian real estate is well recognised as a tremendously effective inflation hedge over time.
<img src="/images/stories/2012/12/wargentbook.jpg" style="margin: 5px; float: left;">
Pete Wargent holds a range of finance and property qualifications and is the author of <a target="_blank" href="https://petewargent.blogspot.com.au/">Get a Financial Grip – a simple plan for financial freedom.</a>
 
For more on where property fits into your wealth-creation portfolio, sign up for our free webinar on <a href="/news">Thursday, November 29 at 12.30.</a>
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The 10 major risks faced by Australian property investors

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There are occasion when buying an apartment without a car parking space would make good sense, says David Poppleton, head of residential projects in NSW for Savills.
Poppleton says it’s very much a “case by case” issue depending on where the apartment is located relative to public transport and the city and the type of alternative property the investor is considering.
"I'd rather by an apartment (one bed or studio) in Potts Point, Surry Hills, Ultimo, etc, without a car than the same  apartment with a car space anywhere outside a five-kilometre radius of the city," he says.
He tells Property Observer it is perhaps “misguided or even slightly negligent to suggest” that investors dismiss the right property without a car space for one that does have a car space if it does not stack up as a better investment.
His comments follow property investment advisor <a href="https://www.propertyobserver.com.au/landlords/dont-invest-in-apartments-without-a-car-park-monique-sasson-wakelin/2012112258047" target="_blank">Monique Sasson Wakelin</a> writing that a car space is “a must” and that investors should not handicap themselves by buying a property “restricting the pool of potential tenants and future owners”.
Sasson Wakelin based her comments on census 2011 data, which shows that more than four-fifth (81%) of households own one or more cars.
Poppleton agrees that it would be “flawed advice at best” if an agent suggested buying a two-bedroom apartment away from transport and five kilometres from the city that did not have a car space.
But he says suggesting that investors avoid all apartments without car spaces “ignores the statistics, affordability, and the government’s growing obsession to reduce the number of cars in every residential project in prime areas”.
Poppleton also points to other statistics unearthed by Wakelin that show that in the <a target="_blank" href="/news">Sydney </a>CBD and inner suburb of <a target="_blank" href="/news">Haymarket  </a>67% and 62% respectively of apartment households do not own cars, which suggest that there are locations where a car space would not be  priority.
He says if it came to the choice of buying a studio in the Sydney CBD versus a period unit in a prime urban area of Brisbane, he would put his money on the Sydney studio being a better investment.
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Investing in an apartment without a car park can make good sense: Savills’ David Poppleton

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ASX-listed residential developer Devine will return to the NSW market after an absence of nine years with plans for an apartment development in Turramurra.
At Devine’s AGM on Friday, managing director and CEO David Keir announced Devine had secured an option over a 5,900 square metre site at Turramurra on Sydney’s upper north shore, which has been earmarked for an 86-apartment development.

In his address, Keir also said “lead indicators present a strong case that the Australian residential housing market is and will continue to recover over the next 12 months".
Keir said lower interest rates had contributed to improved housing affordability while other positive factors pointing towards a recovery include “low vacancy rates in most capital cities, steady unemployment figures, rising rental costs, increased immigration levels and wage growth”.
The Sydney development is expected to commence in about 12 months’ time, pending achievement of appropriate planning approvals.
A spokesperson for Devine tells Property Observer, the last time Devine had a presence in NSW was under the Devine Pioneer Homes brand, developing house and land packages.
"The operation was shut down due to the lack of available developable land at the time. It was an industry-wide problem with the NSW government restricting the release of land.. after we closed it down Devine started focusing on the Queensland market and then we it wanted to expand again we went to Victoria because it was a much better environment at the time."
“It is the first time in nine years that Devine will again have operations in Australia’s most populated State,” Keir told shareholders.
In his address, Devine chairman Peter Dransfield said one of the company’s growth priorities for the year ahead would be to re-entering the Sydney market.
Keir also announced a number of milestones including the settlement of 425 apartments at Devine’s signature Hamilton Harbour project and deliver of the first two residential towers at the same project by Devine Constructions, ahead of time and under budget.
Devine has also began marketing three master planned communities including in the Queensland mining town of Gladstone, Queensland; Bacchus Marsh in Victoria and Evanston Gardens in Adelaide, which will deliver over 5,000 new residential allotments over the years ahead.
“Strategically, we will continue to focus on diversifying our operations by entering new markets and developing new products while leveraging our strengths in core markets to grow market share,” said Keir.
He also announced that Devine had sold a Brisbane CBD development site at 111 Margaret Street “above the current book value of the asset” with the price not disclosed.
Devine recorded an underlying operating profit after tax and before impairments of $11.1 million for the year to June 30.
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