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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Melbourne's central business district could have another 220,000 new residents within three decades, according to a new Victorian government planning report.
The residential expansion would be a 10-fold increase in the number of residents.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/melbmap.jpg"><img src="/images/stories/2012/10/melbmapthumb.jpg"></a>
Southbank and Fishermans Bend precincts are predicted to each 80,000 new residents.
Additionally, a city north growth corridor through Carlton, stretching from the Hoddle grid to Grattan Street, could add an estimated 10,000 new residents.
The Arden-Macaulay precinct in North Melbourne could add 18,000 residents.
Docklands could add 10,500 and the Hoddle grid itself 20,000.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/melbmap2.jpg"><img src="/images/stories/2012/10/melbmap2thumb.jpg"></a>
The state government report, Melbourne, let's talk about the future, predicts Melbourne will need an extra million homes in the next 30 to 40 years as the population increases to more than 6 million. The 109-page report has been prepared by Professor Roz Hansen, the chairwoman of the ministerial advisory committee, metropolitan planning strategy.
 
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jchancellor-FAypfDUnLy

Melbourne's CBD residential expansion prospects as at 2040

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There were 726 sales in Perth this week, up 37% from the 529 in the same week last year, according to the Real Estate Institute of Western Australia.
The most actively traded suburb was East Perth, with 11 sales. 
<img src="/images/stories/2012/10/reiwaoct26.gif">
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Perth sales up 37% on same week last year: REIWA

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A beachside motel on Bribie Island has been listed for auction by a prominent Brisbane Liberal National Party activist.
The Surfside Shacks in Woorim reportedly started life as the Kin Kin hospital before it was carted to its current site by bullock dray and across the Pumicestone Passage by barge.
<img src="/images/stories/2012/10/rickman.jpg">
Ray White Bribie Island agent Shane Richards says the site is rich in history.
"The building was also used as a returned soldiers' respite hospital at the end of World War Two before becoming the Surfside Flats in the late 1950s, and it's been holiday accommodation ever since,” Richards told Caboolture News.
"It's been on the island for many years, and that makes it iconic because of how long it has been here, how many people would have stayed there and how close it is to the ocean."
Richards says generations of Bribie Island holiday makers from Queensland and interstate will have fond memories of their times spent at Woorim beach, on the doorstep of the property.
Bribie Island is in Moreton Bay near Stradbroke Island and Moreton Island.
Even he himself remembers holidaying here and says he has received interest from buyers overcome with nostalgia.
He says its proximity to the beach would be impossible under current planning laws.
"You could never build that close to the ocean again."
"Literally when you're on the top floor on the veranda, you can jump off onto the sand dune and roll down into the surf.
"If you took the building down you would have to have a six-metre setback for any new building, so essentially six metres back from the road.
"That's one thing that makes this property special, and the other aspect is its full-time return, so the money it's making."
The property is a two-storey building on 640 square metres with four units on the ground floor on residential leases and a three-bedroom, two-bathroom penthouse upstairs available for short-term accommodation or as a retreat for potential buyers.
Current rates for the penthouse start at $500 per week during off peak and up to $1,000 per week during the main season.
The downstairs units earn a gross income of around $56,000 per year.
The property has views over the recently weeded sand dunes through to the ocean.
It last sold for $950,000 in 2004. The vendor recently spent $700,000 renovating the place.
Richards was unwilling to give a price indication but said it would be unlikely to sell for less than $1.6 million.
It goes to auction on November 3.
The property is being sold by Brisbane-based property developer Daryl Fennell, who was a key figure in the creation of the merged Liberal National Party.
Fennell owns a number of properties in Queensland.
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Nostalgia-inducing Bribie Island beachside motel listed

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We’re into the last few months of the year and our property markets haven’t crashed like the overseas doomsayers and many in the blogosphere predicted.
Yet they’re still out there – the property pessimists looking for a reason why our property markets will tumble. Only last week another overseas 'expert' claimed that property in Australia was significantly over-priced and likely to crash by up to 60%!
Are they right? 
The property pessimists were wrong in 2008, 2009, 2010, last year and this year, so I guess some will push their “end of the world as we know it”predictions into 2013.
I doubt whether they will be right next year either, as there are a number of signs that our property markets have already bottomed.
<a href="https://blog.rpdata.com/2012/10/tale-of-the-tape-a-history-of-the-recent-market-correction-and-beginning-of-what-may-be-a-market-recovery/">RP Data’s</a> Home Value Index covering Australia’s five big capital cities, shows that Australia’s housing market reached a trough in May this year and dwelling values rose 2.5% across the five cities since then.
Some more good news
Last week’s Australian Bureau of Statistics housing finance approvals data showed that, excluding refinancing, housing finance rose by 2.6% for the month and up 5.7% for the year. This means more people are getting set to buy properties.
Around the same time the International Monetary Fund reported that Australia is now the world's 12th largest economy, steadily moving its way up the list.
It’s important to put this into perspective: our economy has become the envy of all developed nations and is bigger than that of many countries with much larger populations than ours.
And in further good news, Swiss Banking giant Credit Suisse reported that Australians have the highest median net worth in the world – $217,559 per person. By the way, that’s almost four times the net worth of each person in the US.
What does this mean for property?
While in the short term property prices are influenced by a host of macro and micro economic factors, in the long term there are really only two major factors affecting property values:
<ol start="1">
<li>
Population growth (which pushes up demand) and</li>
<li>
The wealth of the nation (our ability to afford higher priced property)</li>
</ol>
What’s happening to our population?
The <a href="https://propertyupdate.com.au/housing-demand-is-rising-at-the-fastest-rate-since-december-2009/">latest demographic update</a> released by the <a href="https://a/"></a>ABS showed our population growing at 1.49% per annum, the highest rate of growth since 2009, and net overseas migration was at the highest level in two years, with just over 197,000 net overseas migrants arriving in Australia over the previous 12 months.
That’s 18% higher than what was recorded a year ago, highlighting how significantly Australia’s rate of net migration growth has turned around.
Add to this the fact that our economy is performing well and I don’t think that anyone would dispute that as a nation Australia will become wealthier over the next 15 years.
This means things are looking good for our property markets in the medium to long term.
So have our property markets turned the corner?
It seems so. The latest <a href="https://www.rpdata.com/">RPData</a> figures for the September quarter show growth in Sydney (2.8%), Melbourne (3%), and Darwin (3.9%).
 
Adelaide has had two consecutive quarters of positive growth (1.2% for the September quarter). And Brisbane is finally showing growth (0.8% percent for the September quarter).
The Perth property market may be turning, with a slight increase over the last month, but it is down 0.2% over the September quarter. Canberra continues its sideways trend, with just 0.1% growth for the September quarter and Hobart’s property market fell 1.8% over the last quarter.
 
<hr class="system-pagebreak">
 
Where to now for our property markets?
While we may have turned the corner, there are still some “interesting” times ahead.
Different markets – not just different state markets, but different classes of property – will perform differently.
I still see a significant oversupply in the inner-city apartment markets in Melbourne and Brisbane, which will keep a lid on prices and rents in those markets. And there is a substantial oversupply of new houses in Melbourne’s western and northern suburbs.
I can’t see the top end of the market (luxury homes) picking up until the business world and our share markets pick up; but there are definitely some suburbs in every state that are outperforming the averages.
These markets are being driven by owner-occupiers getting into the market and strategic investors getting set for the next stage of the property cycle.
We’re not going to have another property boom any time soon
We’ve entered the stabilisation phase of the property cycle – that stage where more buyers enter the market soaking up the properties for sale, but as the numbers of buyers and sellers are roughly in equilibrium, property prices will remain flat or only move up slowly.
However this is a time of great opportunity, which is not always recognised by investors and home buyers.
You see, it’s still generally a buyer’s market, where they can call the shots and set themselves up with good properties that will increase in value as the property cycle inevitably moves on.
In conclusion
As the cycle moves on, and it always does, the combination of population growth and increasing wealth will underpin the strong growth of capital city property values – as they have done for decades.
If you’re interested in securing your financial future through property investment, now may be a good time to buy property. I have always found it a good time to buy when many are still a little uncertain of what’s happening in the market.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
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myardney-DFoGhGbSJX

Australia's property markets stabilising, which presents buyer opportunities

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{qtube vid:=73Bej044-Ec&amp;feature=plcp}
Chris Gray, an investment property expert at Empire, appraises recent investment opportunities each Friday on the Your Property Empire television show on the Sky News Business Channel.
"Whenever I buy a property I always get a bank valuation to confirm what it’s worth, and even though they can be conservative I very rarely pay anything over that valuation," he says.
"In this week's Purchase or Pass we analyse a Bronte property that someone paid well over valuation and analyse whether that was a good move."
<img src="/images/stories/2012/10/macpherson.jpg">
 Location: 7.4kms from CBD
Beds: 2
Bath: 1
Parking: 1+1
SQM: 86sqm
Price: $740,000
Rent: $650/wk
It’s an 86-square-metre tw0-bedroom unit, 7.4 kilometres from the city.
The unit is south-facing but is still quite bright and has a balcony overlooking a park and the ocean in the distance.
It has a lock-up garage and there’s a car space in front, which isn’t on title but can be used solely by that unit.
In 2008 the bank valuation came in at $535,000 and it sold at auction for $574,000, or $39,000 over valuation.
We got a recent valuation that came in at $725,000, and it sold for $740,000 or $15,000 over valuation.
This unit ticks all the boxes for an investment.
My point is really to discuss the price you pay for a property.
How educated are buyers and sellers as to what a property is worth?
"Is getting a bank valuation a good guide as to what it’s worth?
The owners who bought in 2008 paid almost $40k over valuation, which some might say wasn’t the best financial decision, but let’s look at the numbers as they still made a profit four years later.
Selling for a profit
 
<table border="0" cellspacing="0" cellpadding="0" width="379"><tbody>
<tr>
<td valign="bottom" width="179" nowrap>
Sold 2012
</td>
<td valign="bottom" width="100" nowrap></td>
<td valign="bottom" width="100" nowrap>
$740,000
</td>
</tr>
<tr>
<td valign="bottom" width="179" nowrap></td>
<td valign="bottom" width="100" nowrap></td>
<td valign="bottom" width="100" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="179" nowrap>
Bought 2008
</td>
<td valign="bottom" width="100" nowrap>
$574,000
</td>
<td valign="bottom" width="100" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="179" nowrap>
Stamp duty 5%
</td>
<td valign="bottom" width="100" nowrap>
$28,700
</td>
<td valign="bottom" width="100" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="179" nowrap>
Holding costs $10k/yr
</td>
<td valign="bottom" width="100" nowrap>
$40,000
</td>
<td valign="bottom" width="100" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="179" nowrap>
Selling Costs
</td>
<td valign="bottom" width="100" nowrap>
$15,000
</td>
<td valign="bottom" width="100" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="179" nowrap>
 
Total Cost
</td>
<td valign="bottom" width="100" nowrap></td>
<td valign="bottom" width="100" nowrap>
$657,700
</td>
</tr>
<tr>
<td valign="bottom" width="179" nowrap></td>
<td valign="bottom" width="100" nowrap></td>
<td valign="bottom" width="100" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="179" nowrap>
Profit
</td>
<td valign="bottom" width="100" nowrap></td>
<td valign="bottom" width="100" nowrap>
$85,300
</td>
</tr>
</tbody></table>
Do good properties quite often get a premium?
In hindsight would you have bought in 2008 and/or 2012?
So is it purchase or pass for you? Tom Panos the auctioneer says yes.
There's some pretty fantastic views and its a renovator's delight so you can add value.
I’m going to recommend purchase.
I think if you’ve got the right property that ticks all the boxes it will always make money over time so even if you have to pay a couple of percent over valuation sometimes it’s worth it.
You just need confidence in your ability to pick the right one and avoid the bad one, so for that reason I’m going to purchase as well.
Chris Gray is a buyers' agent at <a href="https://www.YourEmpire.com.au" target="_blank">Empire</a>. He is host of Your Property Empire on the Sky News Business Channel.
He will appear periodically on Property Observer posing and answering investment questions on select propositions.  
 
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Purchase or Pass? Empire's Chris Gray on a Bronte property

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The first application stage of James Packer’s planned $1 billion casino in Sydney’s Barangaroo development has been signed off by Premier Barry O’Farrell.
O’Farrell announced the proposal had moved to the second stage of government consideration.
“The proposal has undergone an initial assessment – signed off by the heads of the Department of Premiere and Cabinet and The Treasury – which concluded it should now be the subject of rigorous financial appraisal to see if it’s in the state’s best interests,” O’Farrell says.
He says the move to stage two does not guarantee the future of the development, it just means the government is now working with Crown to assess the proposal.
He says they would have to honour their exclusivity agreement with The Star Casino, which means Packer’s development would not be operational before November 14, 2019.
Crown chief executive Rowen Craigie says Crown welcomes the move to stage 2.
“The announcement by the NSW government to progress Crown’s Proposal from stage 1 to stage 2 is a major step forward for this exciting project,” Craigie says.
“No other organisation can deliver this unique project at Baranagaroo. Crown’s record demonstrates that it can provide a centrepiece for Sydney that will draw millions of visitors and employ around 2,000 people in construction and operation. A six-star hotel report on the waterfront at Baranagaroo will assist Sydney to compete with the best cities in the world for international tourists and for major conferences and events.”
Given O’Farrell’s insistence the project not involve poker machines, the development will focus on high-rolling VIP gaming.
“Crown is proposing that VIP gaming would only be available for international high rollers, mainly from Asia together with interstate and local VIP players on an invitation-only basis.”
<a href="https://www.asx.com.au/asxpdf/20121025/pdf/429ndp8t636538.pdf" target="_blank">The $1 billion six-star project will have 350 hotel rooms, restaurants, spas and pools, and dedicated training colleges.</a>
It will be designed via an international architecture competition.
It is expected to contribute $400 million annually to the state economy as well as additional gaming tax revenue.
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James Packer's Sydney casino given amber light

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The Real Estate Institute of Australia says all first-home buyers should receive a first home-owners grant, not just people buying new homes.
REIA president Pamela Bennett says she is concerned by moves by New South Wales, Queensland and South Australia to limit the grant to first-home buyers purchasing new homes.
“Not only is this in breach of the InterGovernmental Agreement (IGA) but it ignores the evidence that 70% of first-home buyers have a clear preference for established houses.”
“The IGA clearly states that assistance to first-home buyers will be uniform and that an eligible home will be new or established.
“First-home buyers make up 17.7% of the market.  REIA strongly urges the Federal Treasurer, Wayne Swan, not to agree with the states’ requests for an amendment to the IGA and effectively ignore the needs of this considerable section of the buyer’s market.
“The socio-economic demographic of most first home buyers shows a clear preference to live close to existing facilities and work as opposed to buying in new housing estates.  Lifestyle, public transport and commuting are just a few of the factors concerning those entering the market.
“Furthermore, first home buyers of established homes often embark on a program of home-improvement and renovation, which helps stimulate the building sector.”
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REIA says all first-home buyers should get grants, not just those buying new homes

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Nearly one year after Age journalist Chris Vedelago lodged a freedom of information request with the Foreign Investment Review Board, <a target="_blank" href="https://theage.domain.com.au/home-investor-centre/blogs/domain-investor-centre-blog/foreign-investment-dont-ask-dont-tell-dont-know-20121020-27yk7">his questions remain unanswered</a>.
<a target="_blank" href="https://www.propertyobserver.com.au/https://twitter.com/chrisvedelago/status/260973191361601536"><img src="/images/stories/2012/10/vadelagotweet.jpg"></a>
His November 2011 application sought information on the board’s monitoring and compliance activities involving temporary residents — how many had applied, been approved to buy, and what investigations had been conducted or penalties levied for violations of the law.
The board finally released some documents though in a heavily redacted form.
Vedelago says the documents show the regulator “has either woefully failed to do its job or is abusing the FOI system”.
The documents show the board had not engaged in any compliance activities relating to temporary residents, despite 2010 announcements the board would clamp down on the activities of temporary residents.
He says the blank record is either due to incompetence or dishonesty from the board.
Vedelago has applied to the Australian Information Commissioner for a review of the decision.
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Age journo Chris Vedelago still waiting for full FIRB response after a year: Tweet of the day

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Industry super fund AustralianSuper plans to more than double its investments in commercial property over the next five years, according to chairwoman Elana Rubin.
According to its most recent annual results to June 30, Australia’s biggest industry super fund has $4.54 billion invested in direct property through unlisted property trusts up from $4.17 billion in the previous financial year.
In speech to the Israel Australia Chamber of Commerce luncheon reported by the Australian Financial Review, Rubin said the super fund would look to invest in large, top-end shopping centres and also build on its portfolio of CBD offices and other commercial assets.
Rubin expects there to be greater competition from other super funds and institutional investors for premium commercial properties as well as a move to invest directly in assets rather than as passive investors in “pooled vehicles”.
She also expects AustralianSuper to increase its exposure to overseas commercial property assets from just 3% of its portfolio to 20% as competition heats up for local commercial core properties.
In its annual report, AustralianSuper says super members have the option to invest directly in a “range of Australian and international properties, including office buildings, shopping centres, hotels, resorts, factories and warehouses”.
“It’s designed for members seeking strong medium to long-term capital growth and lower volatility than shares”.
The annual report says AustralianSuper’s investments in infrastructure and direct property “continue to provide diversification benefits and to sustain strong long-term returns”.
“Our diversified strategy helped to reduce the impact of poorly performing share markets.”
More than half of AustralianSuper’s property investments are in the ISPT Core Fund, which holds 78 office, industrial and retail assets, including 500 Bourke Street in Melbourne, 363 George Street in Sydney and Central Plaza One on Queen Street in Brisbane.
AustralianSuper has $46 billion under management and 1.9 million members.</body></html>

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AustralianSuper to double commercial property investments as part of diversification play

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The head of the Reserve Bank of Australia's financial stability department, Luci Ellis, has said it would be a "mistake" to assume the main risk to the health of a financial system came from housing markets.
The senior RBA official says housing markets are not the biggest threat to financial stability, despite the international turmoil that has triggered property crashes across the world.
Noting commentary that Australia could be vunerable she suggested commercial property markets were more likely to threaten financial stability than residential property or the sharemarket.
"Let me be clear: risks from housing markets are not zero, and never will be," she said in a speech to the CPA Australia Finance and Accounting Expo 2012 in Sydney yesterday.
"But commercial real estate or property developers are still more likely to pose risks to a financial system, and through it to the real economy," Dr Ellis said, in comments that were not confined to Australia.
The nation's banks were holding about $8 billion in impaired loans in the sector in the June quarter, the Reserve's latest Financial Stability Review found.
Ellis made the remarks in a speech arguing that when looking for lessons from the global financial crisis, it was important not to come to "mistaken conclusions".
"We also had yet another iteration of the old lesson that property market dynamics can drive episodes of financial instability.
"Ten years ago, the global debate about whether monetary policy should respond to asset prices was rather unhelpfully focused on equity markets, which at the time did not have the kind of leverage that is the nub of the problem.
"The crisis has shown that property markets are usually more relevant to financial stability.
"These markets have the boom–bust dynamics and leverage needed to turn an asset price downturn into a financial crisis."
Along with her commentary on residential and commercial markets, Ellis argued against simplistic metrics to gauge the health of a banking system. 
She said it was "misleading" to focus too much on loan-to-deposit ratios – which are relatively high for Australian banks, at more than 120%.
"If you see a bank with a very low level of this ratio, well below 100%, ask yourself what the bank is doing with that deposit funding instead," Ellis said.
"They are investing it in securities and other kinds of investment. And as we saw in the crisis, those securities can often be far riskier than regular lending."
With banks being forced to hold more top-tier capital under new global rules to make the sector more resilient, Ellis also said regulators could not afford to assume highly capitalised banks would necessarily be safer.
 
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