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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Transaction volumes of commercial property in Australia in quarter three increased 17% from the same time in 2011, bucking the global dip of 6-7%, according to Jones Lang LaSalle research.
There have been $12.07 billion of commercial property sales to date for 2012 in Australia, compared with $12.09 billion for the entirety of 2011, according to Jones Lang LaSalle’s Global Capital Flows report for quarter three.
“That’s a solid result in light of the difficult business environment that has prevailed this year. We are operating in a more cautious global economic environment in 2012 compared with 2011,” says Jones Lang LaSalle’s John Talbot.
Foreign investment accounted for US$3.7 billion of transactions in Australia during the quarter – 16% of the total investment.
The report finds that US$2.3 billion of foreign investment was from inter-regional purchasers, including $1 billion in Sydney’s Barangaroo from the Canadian Pension Plan Investment Board.
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Sydney was the sixth most active market in the Asia-Pacific region for quarter three, with US$3.8 billion of sales. Tokyo had $9.9 billion, Hong Kong had US$6.7 billion and Seoul had US$6.5 billion.
Across the world, there was US$100 billion of direct investment in commercial real estate in the third quarter, down 6-7% from the same quarter last year, as well as when comparing the first nine months of this year to last.
In quarter three the Americas accounted for US$44 billion of investment and Europe, the Middle East and Africa (EMEA) accounted for US$33 billion.
“China remains very active, as does Hong Kong and Japan, and we see the strong REIT markets supporting further activity across the region. At the same time, large global sovereign and pension funds are returning their focus to Asia Pacific and we maintain our expectation for full year 2012 volumes in Asia Pacific to reach US$88 billion, compared with US$98 billion in 2011,” says Talbot.
Head of office investments in Australia for Jones Lang LaSalle Simon Storry says Australia followed global trends in quarter three.
“Investment activity was robust while leasing activity was subdued. The high transaction volumes reflect, in part, the weight of money seeking exposure to prime grade real estate assets,” Storry says.
“In Australia this trend is underlined by the high level of offshore interest. Over the first three quarters of 2012, offshore investors accounted for 34% of all transactions.  This compares to 25% for the full year 2011. There is no sign that this inflow will diminish as we move into 2013,” says Storry.
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Commercial property sales up 17% in Australia as globally sales fall: JLL

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Property investors’ awareness of creating wealth via add value strategies like renovation, granny flat additions and  “knock down and build two”  strategies have been fuelled by the plethora of reno shows on TV and the media  focus on creation of wealth via property in a relatively flat market.
There seems to be a sense of urgency to “get in and get started” particularly among younger investors who are finding it hard to enter the property market for the first time and even harder to  get in if the plan is to renovate or do a small development on the site. For those investors who want to get into the property market sooner rather than later and do not have sufficient savings for a deposit or are short on servicing capacity,  joint venturing a deal is coming up more often as an alternative solution.
“Joint venturing” tends to refer to shorter-term arrangements, while “co-ownership” refers to the longer-term holding of property by two or more individuals or entities, be they a couple, friends, family members or trusts.
Three clients of ours successfully recently completed a 14-month investment project and walked away with $43,600 each (pretax!). John, Helen and Marie were each unable to purchase an investment property in their own right, and all wanted to gain firsthand experience doing a small development.  They decided to join forces and do a small development that they could on sell quickly. Together they purchased an old weatherboard Queenslander on an 1,100-square-metre residential corner block 12 kilometres from Brisbane CBD.   The existing dwelling was at the front of the block and the back of the block had easy street access and room to construct a second dwelling on it.  They erected a neat two-storey, four-bedroom dwelling on the back of the block, subdivided it onto two titles, renovated the original Queenslander and landscaped the property with established trees and plantings.
The maths on this is as follows:  Purchase: $465,000, council and DA costs: $40,000, build costs: $260,000, renovation costs: $85,000, subdivision costs: $20,000, agent’s fees: $37,000.  The renovated Queenslander sold for $570,000 and the new dwelling sold for $610,000.  The profit on the venture was $281,000, which they divided between them. After netting out their original $50,000 contributions they had $43,600 each.  Each of them will have different capital gains tax liabilities as this depends on their individual financial situations, and so they are off to their Chan &amp; Naylor accountant to clarify this.  They are also looking for their next project.
Benefits of joint venturing
<ul>
<li>Savings are pooled towards the deposit, allowing you to buy into a property sooner.</li>
<li>Combined savings can also go towards renovation expenses or deposits on construction loans if an add-value strategy is being pursued.</li>
<li>Borrowing power for the loan is also combined across owners, often resulting in being able to buy a better-quality property than you could have afforded on your own.</li>
<li>Running expenses of the property are shared, affording you a little left over in the budget for the occasional treat.</li>
<li>The expertise, workload and responsibility for planning developments and renovations are also shared.</li>
</ul>
Risks of joint venturing
<ul>
<li>All parties are jointly and severally liable for the entire debt, not just for their individual shares, so if anything happens to one of the partners the others are held responsible for the debt in its entirety.</li>
<li>When calculating serviceability for additional loans to individuals, lenders will take the 100% of the debt of any joint venture into account, not just your individual share.</li>
</ul>
 
<hr class="system-pagebreak">
 
For example, if John, Helen or Marie, during the course of their joint venture project, had wanted to refinance a loan against a property he or she held only in his or her name, the  lender would have counted 100% of the JV loans as their total responsibility.  The message here is to plan ahead for such individual needs when joint venturing.
Conflict may arise during the course of a joint venture project as individual circumstances and needs change.  Plan how you will mediate through differences of opinion before you enter a JV arrangement and put these agreements in writing.
The keys to successful joint venturing:
<ol>
<li>Do investigate joint venturing options, as they can be both profitable and fun.  Be careful to not go into an arrangement and investment without extensive research and planning.</li>
<li>Invest extra time in planning the structures you will use. By using the right legal structure you can come up with the most tax-efficient and safe outcomes for the project that you are planning.</li>
<li>Do your due diligence on any purchase regardless of whether you are joint venturing or not.  The old saying of “you make your money at the time of purchase” has strong backing from experienced investors, so heed it.  Check in with town planners and councils that what you plan to do is allowable in their area.</li>
<li>Number crunch your renovation and construction projects thoroughly and repeatedly. It’s easy to blow the budget and your well earned profit margin with it.</li>
<li>Draw up a joint venture agreement to cover changes in circumstances and seek professional advice to ensure you are each adequately inured and protected. A legal document designed to set out the rights and responsibilities of each owner, whilst an added expense is essential to avoid issues in the future if circumstances change.</li>
<li>Get a good financial or investment strategist to run their eye over your proposed JV and point out its strengths and weaknesses.  They are not emotionally involved in the project and will give you an unbiased opinion on what you are planning.</li>
</ol>
Jenna Ford is a finance strategist and partner at<a target="_blank" href="https://www.chan-naylor.com.au/finance/"> Chan &amp; Naylor Finance</a>
<ol></ol>
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The six keys to successful joint venturing of property ownership: Chan & Naylor

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First-home buyers have been stepping up their activity in the market over recent months, with the Australian Bureau of Statistics housing finance commitments data showing a 14.3% jump in the number of first-time buyer loans over the September quarter of 2012 compared with the September quarter of 2011.  First-home buyers now comprise 19.3% of all owner-occupier housing finance commitments, which is slightly higher than the decade average of 18.5%.
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The number of housing finance commitments for first-time buyers has been very much influenced by the specific concessions and stimulus available at the state level.  For example, the stamp duty concession that was available in New South Wales up to December 31, 2011, resulted in a surge of first-time buyer activity leading up to the cut-off date (see black trend line below).  Similarly, in Victoria, the expiry of the state level first-home buyers' bonus on July 1 caused a similar surge in activity leading up to the expiry of the stimulus (red trend line in graph below).
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More holistically, the first-home buyers' boost, which was provided by the federal government in late 2008 through to the end of December 2009, resulted in a record number of first-home buyers flowing into the housing market.  First-home buyers as a proportion of all owner-occupier housing finance commitments peaked at just over 30% in May 2009.
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The response from first-home buyers to the concessions and stimulus demonstrates how much pent-up demand there is across this important segment of the housing market.  Affordability constraints are a significant factor for first time buyers, and a stamp duty saving or grant clearly makes a big difference to their sentiment towards a home purchase and their willingness to enter the market.
On a proportional basis, first-home buyers are most active in Western Australia and Queensland.  It seems that housing prices have little to do with attracting first-home buyers to a market, with the most affordable states for housing, Tasmania and South Australia, attracting the lowest proportion of first-time buyers.
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Common sense would dictate that employment opportunities would be a factor in attracting first-home buyers, and that case can absolutely be argued in Western Australia, where there were over 68,000 new jobs created over the past year.  That isn’t the case in Queensland, which has shown a fall of nearly 43,000 jobs over the past year.
One explanation for the popularity of Western Australia and Queensland for first-time buyers is the fact that these two states attract the largest proportion of interstate migrants (<a href="https://blog.rpdata.com/2012/10/housing-demand-is-rising-at-the-fastest-rate-since-december-2009/" target="_blank">you can see our wrap on population growth and interstate migration in a recent blog here</a>).
While first-time buyers are becoming more active and comprise a larger than average proportion of the owner-occupier market, the raw numbers remain low from a historical standpoint, with the September number of first-home buyer finance commitments tracking almost 17% lower than the five year average.
Tim Lawless is national research director of <a href="https://www.myrp.com.au/" target="_blank">RP Data.</a>
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First-home buyers stepping up activity in WA and Queensland: Tim Lawless

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Industrial assets offers the potential for far better returns than risk-free government bonds, according to investment bank Morgan Stanley’s latest Australian property report.
As the chart below shows, while capitalisation rates (yields) are well off their mid-1990s peaks, industrial assets offer an average return of 8.3% compared with a yield of 3.05% for 10-year government bonds.
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“Yield is the name of the game,” says Morgan Stanley in its latest report authored by analysts Lou Pirenc, Todd McFarlane and John Meredith.
 
“In a typical environment where demand fundamentals in property are weakening, we would normally expect a softening in asset prices.
“As the graph shows, however, industrial, office and retail all offer attractive spreads to the risk-free rate and increasingly to the marginal cost of debt for many REITs.
“Whereas assets in recent years were primarily sought by sovereign wealth funds and selected domestic unlisted funds, we are now seeing buyer demand from listed REITs, unlisted funds, sovereign wealth and pension funds, and offshore corporates/investors," says Morgan Stanley
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Industrial property offers strongest returns of commercial property classes: Morgan Stanley

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Mutual lender bankmecu has leased 123 square metres of retail space on Little Collins Street.
The new branch at 104 Little Collins and Southern Cross Lane will add to the more than 25 branches that bankmecu has across Australia, but is its first retail presence in the Melbourne CBD.
Bankmecu has its headquarters in <a target="_blank" href="/news">Kew</a>.
The lease agreement for the vacant premises was negotiated by Fitzroys agent Mitchell Humphreys on behalf of landlord Brookfield.
Humphreys says rents in the location are still being negotiated well in excess of $1,000 per square metre.
The space was fitted out by bankmecu and opened for business on November 19.
Humphreys says Brookfield was pleased to secure a strong tenant to anchor the Southern Cross food and retail laneway.
“It is critical to be proactive and sensitive to the ongoing tenancy mix in these establishing precincts when securing new tenants,” he says.
“The vibrant precinct taking in the Southern Cross food laneway and the top end of Little Collins Street continues to attract strong tenant demand, with no retail vacancies.”
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Bankmecu takes retail space on Little Collins Street at around $1,000 per square metre 

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If I were to suggest an efficient (i.e. balancing risk and return) portfolio allocation for a young person to target a wealthy at retirement 65, it could look something like the below.  In order for a portfolio like this to work, you only need two things.
One is the discipline to be careful with your spending to ensure that you can pay a good amount into your investment portfolio each month.  The second thing you will need is time to allow the portfolio to compound and grow.
A diversified portfolio: the slow but sure route to wealth
<table style="width: 470px;" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="406">
Asset Class
</td>
<td valign="top" width="123">
Target %
</td>
</tr>
<tr>
<td valign="top" width="406">
ASX 200 Large Cap Index Fund
</td>
<td valign="top" width="123">
10
</td>
</tr>
<tr>
<td valign="top" width="406">
Small Ordinaries Index Fund
</td>
<td valign="top" width="123">
10
</td>
</tr>
<tr>
<td valign="top" width="406">
Vanguard Emerging Markets Shares Index
</td>
<td valign="top" width="123">
10
</td>
</tr>
<tr>
<td valign="top" width="406">
FTSE SET Large Cap Index (UK’s largest 30 companies)
</td>
<td valign="top" width="123">
10
</td>
</tr>
<tr>
<td valign="top" width="406">
High-Yield Corporate Bonds
</td>
<td valign="top" width="123">
10
</td>
</tr>
<tr>
<td valign="top" width="406">
Investment Grade Corporate Bonds
</td>
<td valign="top" width="123">
10
</td>
</tr>
<tr>
<td valign="top" width="406">
Capital Indexed Bonds (inflation hedged)
</td>
<td valign="top" width="123">
10
</td>
</tr>
<tr>
<td valign="top" width="406">
A-REIT Index  (property trusts)
</td>
<td valign="top" width="123">
10
</td>
</tr>
<tr>
<td valign="top" width="406">
ASX All Ordinaries Gold Index Fund
</td>
<td valign="top" width="123">
10
</td>
</tr>
<tr>
<td valign="top" width="406">
Cash
</td>
<td valign="top" width="123">
10
</td>
</tr>
<tr>
<td valign="top" width="406">
Total
</td>
<td valign="top" width="123">
100
</td>
</tr>
</tbody></table>
 
Based upon historical averages, it has been suggested that it may be reasonable to expect a portfolio like the one in the table above to achieve average returns of 10% per year or higher.
It is diversified through funds, but also diversified in that the individual components of the portfolio do not act in a correlated manner.  In other words, while, for example, when stocks are not performing well other assets, such as bonds, may well be.
The portfolio includes assets that are traditionally used to hedge against deflation (gold mining companies and bonds) and also those that thrive in more inflationary economies, such as equities and A-REITS (what used to be called Listed Property Trusts - they invest mainly in commercial properties that may be beyond the reach of the individual investor).
Stocks are commonly acknowledged to be the best performing growth asset in terms of percentage capital growth measured over time.  Bonds are often considered to be lower risk than shares (in the event of a company being wound up and assets liquidated, debt holders and secured creditors rank higher than equity investors) and therefore tend to command a lower return.
Therefore, a portfolio of this nature is efficient as a fair percentage of the investor’s portfolio is exposed to equities, with the remainder a mixture of bonds, property and cash.
 
<hr class="system-pagebreak">
 
Why not invest your capital 100% into stocks, then?  Well, plenty of people do, and when they hold for the long term they are often very successful too.
One reason that this may be better avoided is that if your whole portfolio is in shares, then it can be very nerve-wracking during a stock market crash which can result in investors abandoning the strategy at precisely the wrong moment.
Diversifying into assets that do not act in a correlated manner with stocks can help you to sleep soundly at night.
Once a portfolio like this is created it requires virtually no active management at all.  That said, it would make sense to rebalance the portfolio once per year as suggested in The Gone Fishin’ Portfolio by Alexander Green.
This means that if, for example, the emerging markets fund is steaming ahead, the investor might choose to sell a portion of it in order to rebalance the portfolio (i.e. that no one investment represents a significantly higher percentage of the portfolio than the rest).
Better still, the investor may choose to add more dollars to the lagging assets, a strategy that will avoid an unnecessary capital gains tax bill through selling.
While it may feel counter-intuitive to put more dollars into the lower performing assets, it needs to be remembered that assets tend to perform in a cyclical manner, and the asset class that has forged ahead is likely to subsequently have a period of low returns (and vice versa).
Problems with this approach 
Diversification is one of the fundamental conclusions of the ‘modern portfolio theory’.  Spreading your capital across a broad range of investments has the benefit of reducing the risk of loss of a large percentage of capital. 
The problem with diversification is that is almost guarantees that your results will be average, which has left sceptics to instead term the practice “de-worsification” – protecting the returns from being “less worse”. 
If you want to become wealthy more quickly, you will need to seek returns that significantly outperform and that are better than average, and the way to do this is to specialise.
 
If you have ever played poker or bridge you will instinctively know that diversification is not the way to win the game outright.  To win the game you do not divide up your capital into 10 equal parts and bet 10% of your capital on each hand regardless of the strength of the cards you hold. 
The winner will be the player who places big bets on higher probability hands.  This is a concept that can be successfully applied to asset allocation in your investment portfolio if you want to quit your job earlier than the traditional retirement age. 
The other problem with the balanced approach shown is that it lacks leverage. A carefully balanced portfolio, such as the one detailed above, may be perfect if you were starting with investment capital of a few million dollars, however, most of us start out with very little or nothing, and therefore it can take a long time to start seeing any meaningful results. 
This is where leverage can be so beneficial for the average investor. 
The asset class that gives you the leverage to power ahead 
The asset class that allows you achieve more with less is property, and particularly residential property. 
Banks will generally lend a high loan to value ratio (LVR) on property and this allows investors to significantly increase the value of their assets that can then grow for them to create wealth. 
Personally, for the long term I am bullish on Australian residential property and believe that due to strong population growth and our inflationary economic environment, a good bet for the average investor lies in exposure to this asset class.
<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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Where property should sit in your investment portfolio: Pete Wargent

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The prominent car dealer Rick Damelian's bankruptcy has left him with reportedly just $73 cash in his bank account. 

The former Parramatta Road car salesman has declared he owes $3 million to his creditors – and can't even afford to own his own a car. The 62-year-old's bankruptcy comes after eight Sydney car yards bearing his name were foreclosed on by the National Australia Bank last year.
At his peak Damelian's empire turned over $200 million plus, with his dealerships selling Honda, Renault, Alfa, Citroen and Fiat.
Damelian Automobile had about $53 million in debts, mostly to NAB, and only an estimated $14 million worth of assets when receivers were appointed in September last year. Sales of the some of the former Damelian caryards by receiver Ferrier Hodgson have included 107 Parramatta Road, <a target="_blank" href="/news">Haberfield</a>, sold for $3 million to J L Management. The 2,020-square-metre block cost $1.1 million in 1989.
The 577 Parramatta Road, <a target="_blank" href="/news">Leichhardt</a>, premises of 1,562 square metres sold for $2.42 million to Georgina Investments.
One strata holding at 509 Parramatta Road, Leichhardt, sold for $1.72 million. 
The car dealer was forced into bankruptcy after failing to repay a $1.9 million loan to his company, Damelian Automobile Limited, according to news.com.au. He was chairman and sole shareholder of the company since about 2006. According to the Insolvency and Trustee Service Australia bankruptcy details completed on November 2, Damelian still owns two adjacent luxury townhouses worth $3.3 million in <a target="_blank" href="/news">McMahons Point</a> but he is heavily indebted to the bank. He lives in one with his wife and his mother lives next door. NAB holds a $6 million mortgage secured by the townhouses. One cost $950,000 in 1998 and the other was bought for $920,000 in 1997. He also has about $2 million in superannuation. 
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Rick Damelian bankrupted as his Parramatta Road caryards sell through receivers Ferrier Hodgson

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The Melbourne residential vacancy rate edged up from 2.7% to 2.8% over October while nationally the vacancy rate was virtually unchanged at 1.8%, with a small dip in houses and units available to rent, according to SQM Research.
In total SQM Research counted 49,104 properties available to rent in October, down from 49,664 in September, but well up on the fewer than 46,000 available to rent a year ago.
Of these 49,104 rental properties, nearly a quarter are in Melbourne (12,037).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/11/sqmnov16.gif"><img src="/images/stories/2012/11/sqmnov16thumb.gif"></a>
The Sydney vacancy rate declined from 1.7% to 1.6% over October, with 8,851 vacancies recorded.
Perth recorded the tightest vacancy rate of the capital cities, unchanged at 0.6%, with a total of 1,025 vacancies.
Darwin recorded the most substantial monthly increase, rising 0.2% to 0.7% during the month of October 2012 and coming to a total of 171 vacancies while Hobart recorded the largest monthly decrease in vacancies, falling by 0.3% since September 2012.
SQM Research managing director Louis Christopher tells Property Observer that based on seasonality factors, he expects the Melbourne vacancy rate to go over 3% over Christmas, but then dip below 3% in January as landlords pull their listings, before rising again above 3% in March, April and May and remaining at elevated levels until the construction cycle peaks in late 2013.
“It’s been hovering around that level for that now and it would not take much for it to go over 3%,” he says.
A 3% vacancy rate is the point at which a market is set to be evenly balance between landlords and renters. Above 3% and renters have greater power to negotiate cheaper rents and the market looks less enticing to property investors. 
Christopher says the main issue for Melbourne is one of supply.
“There is a lot of new supply coming on in Melbourne, demand will lift, but there is still ample supply of existing stock with new stock coming on board as well.
“Overall our national vacancy rates series continues to record a tight market, particularly with regard to Perth and Darwin, which are not showing any signs of been hurt by current concerns about the resources cycle,” says Christopher.
SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared with the total number of established rental properties.
 
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Melbourne residential vacancy rate edges close to 3%: SQM Research

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DEXUS Wholesale Property Fund (DWPF) has confirmed that it has secured a new major investor, through the receipt of $290 million of new equity from State Super Financial Services (SSFS).
DWPF fund manager Graham Pearson says the fund has over the past three years raised $1.7 billion from domestic and offshore investors.
The fund has applied the capital over the three years to $675 million of acquisitions and $125 million of developments along with facilitating unitholder liquidity requirements.
The capital secured from SSFS will be used to pay down existing debt facilities reducing the fund’s gearing to 11%, ahead of investing in further opportunities.
The fund’s most recent acquisition was a 50% interest in 12 Creek Street, Brisbane. It has also committed to the redevelopment at Westfield West Lakes Shopping Centre in Adelaide.
 
<table style="width: 470px;" dir="ltr" border="1" cellspacing="0" cellpadding="7"><tbody>
<tr>
<td height="8" valign="top" width="33%">

DWPF acquisitions and developments over the past three years Date
</td>
<td height="8" valign="top" width="33%">

Property
</td>
<td height="8" valign="top" width="33%">

Cost1
</td>
</tr>
<tr>
<td height="7" valign="top" width="33%">
Sep 2010
</td>
<td height="7" valign="top" width="33%">
93 Williamson Road, Ingleburn
</td>
<td height="7" valign="top" width="33%">
$24m
</td>
</tr>
<tr>
<td height="7" valign="top" width="33%">
Nov 2010
</td>
<td height="7" valign="top" width="33%">
Portfolio of 13 industrial properties
</td>
<td height="7" valign="top" width="33%">
$232m
</td>
</tr>
<tr>
<td height="8" valign="top" width="33%">
Jul 2011
</td>
<td height="8" valign="top" width="33%">
1 Bligh Street, Sydney development (33.3% interest)
</td>
<td height="8" valign="top" width="33%">
$125m2
</td>
</tr>
<tr>
<td height="7" valign="top" width="33%">
Nov 2011
</td>
<td height="7" valign="top" width="33%">
Sir Joseph Banks Corporate Park, Botany
</td>
<td height="7" valign="top" width="33%">
$77m
</td>
</tr>
<tr>
<td height="7" valign="top" width="33%">
Nov 2011
</td>
<td height="7" valign="top" width="33%">
452 Flinders Street, Melbourne
</td>
<td height="7" valign="top" width="33%">
$201m
</td>
</tr>
<tr>
<td height="7" valign="top" width="33%">
Dec 2011
</td>
<td height="7" valign="top" width="33%">
34 Manton Street, Morningside
</td>
<td height="7" valign="top" width="33%">
$20m
</td>
</tr>
<tr>
<td height="7" valign="top" width="33%">
Oct 2012
</td>
<td height="7" valign="top" width="33%">
12 Creek Street, Brisbane (50% interest)
</td>
<td height="7" valign="top" width="33%">
$121m
</td>
</tr>
</tbody></table>
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Dexus Wholesale secures $290 million new equity from State Super Financial Services

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Renovated retail premises of a former take-away business in Swan Street in Richmond, Melbourne, have been acquired by an owner occupier who will use them as boutique flooring products showroom.
The 68-square-metre corner store on the north east corner of Mary Street at 255 Swan Street in <a target="_blank" href="/news">Richmond </a>sold through Rory White of Gray Johnson for $607,500 plus GST or $8,930 per square metre of building area.
It was listed at $655,000 plus GST.
The building was also listed for lease at $36,500 net per annum – equating to around $540 per square metre per annum.
The purchaser has a number of large showrooms of flooring products throughout the Melbourne metropolitan area.
Recent retail premises on Swan Street include the 204-square-metre premises of Angus antique furniture just a few shops down from the vacant corner café, which sold for $1 million in March last year on a yield of around 3.7% through Tom Maule and Larry Takis of Teska Carson Richmond.
Swan Street runs perpendicular to Punt Road from the Royal Botanical Gardens to Park Grove.
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