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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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The general topic of foreign investment into Australia property almost always attracts a lot of attention. As it were, "selling the farm" has never been an overly popular idea. And at various times there has been a lot of attention paid to the suggestion that to many Australian homes were being sold to offshore buyers.
However, when taking new residential projects offshore, there is no guarantee of success, and like so many aspects of project marketing, the devil really is in the detail. Reputation is a key ingredient in markets where family and business ties are important. Before looking at the specifics of how to take a new residential project to offshore markets, I would like to put the market into some context.
The offshore market potential
According to Foreign Investment Review Board figures in 2010-11 real estate investment accounted for 23% of total foreign investment into Australia by value, and only mineral exploration and development and services are bigger sector.
So let me firstly put this into some general perspective. Australia-wide the total value of dwelling sales over the 2010-11 financial year was $193.5 billion. Houses accounted for $141.8 billion and units for almost $51.7 billion with these sales, including both new and established stock.
From figures published by the FIRB, approved investment in all forms of real estate was $41.5 billion in 2010-11 (compared with $20.0 billion in 2009-10). It does, however, have to be noted that these figures were affected by changes to the policy and administrative arrangements for residential property and so they do not provide a comparable view of investment activity in this sector.
Residential investment accounted for $20.92 billion for some 9,556 dwellings, of which new dwellings amounted to $12.54 billion of some 3,976 properties. Although the figures are somewhat complex it appears that most investment wound up in Victoria and NSW. It is, however, the new dwellings that are of central interest in our context as a potential target for project marketing, with new dwellings sold off-shore accounting for approximately 6.5% of all sales.
So before we start to look at how we might market to this target, it is worth looking briefly at the FIRB’s definition before we go further into this keenly watched topic.
New dwellings – the FIRBs definition:
“ New dwellings acquired ‘off the plan’ (before construction commences or during the construction phase) or after construction is complete are normally approved where the dwellings: have not previously been sold (that is, they are purchased from the developer); and have not been occupied for more than 12 months.
There are no restrictions on the number of such dwellings in a new development that may be sold to foreign persons, provided that the developer markets the dwellings locally as well as overseas (that is, the dwellings cannot be marketed exclusively overseas).
This category includes dwellings that are part of extensively refurbished buildings where the building’s use has undergone a change from non-residential (for example, office or warehouse) to residential. It does not include established residential real estate that has been refurbished or renovated.
A property purchased under this category may be rented out, sold to Australian interests or other eligible purchasers, or retained for the foreign investor’s own use. Once the property has been purchased, it is second-hand real estate and is subject to the restrictions applying to that category.”
By any reading this is a very clear policy and so sets the stage for taking new apartment projects offshore, the policy sets a firm foundation and avoids any sort of ambiguity, which is a good, as offshore buyers need straight forward rules to work with.
With offshore buyers possibly accounting for 6.5% of sales transactions it is a market worth our attention, but still a market that is a small target and one that requires considerable skill and resources to engage with, and that will be the focus of my next few posts.
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" rel="nofollow" target="_blank">Colliers International.</a>
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How to attract offshore buyers to your residential property development

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<img src="/images/stories/2012/09/130.gif">
Roughly how much Best (Biological Environmental Sustainable Technologies) will pay per square metre annually to lease an industrial property in Burleigh Heads on the southern Gold Coast. The company, which provides water-based products and services, will use the 7 Dover Drive property as its distribution centre. Best has signed a three-year lease with two three-year options brokered by Craig George of Colliers International. The 950-square-metre warehouse, owned by Waterview Nominees, consists of around 300 square metres of showroom space, 150 square metres of office space and 500 square metres of warehouse space with 18 carparks. “There is a real lack of large industrial stock on the southern end of the Gold Coast, with only two industrial buildings available in the 2,000-square-metre to 4,000-square-metre range in Burleigh and Currumbin Waters combined, and one facility currently available above 4000 square metres” says George.  The property runs virtually adjacent to Bermuda Street, which feeds into the Pacific Motorway leading north to Brisbane or south to the Tweed.
 
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<img src="/images/stories/2012/09/700k.gif">
The estimated annual rent that national luggage, leather goods and travel accessories retailer Victoria Station will pay annually to lease a new $9 million office and warehouse facility at Keysborough in Melbourne’s south-east. Due for completion by owner/developer BFD Constructions in mid-November, the 1 Atlantic Drive building will comprise a 7,396-square-metre warehouse with a 560-square-metre office component on a 14,850-square-metre site with full drive around capability.  The deal was brokered by Savills Australia divisional director for industrial, Joseph Catanese, who says the tenant agreed terms on a nine-year lease with further options. BFD Constructions purchased the property last month for $3.2 million.
 
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<img src="/images/stories/2012/09/250to350.gif">
The estimated annual rent per square metre that industry sources say vacuum and cleaning specialists Godfreys will pay to lease a 429-square-metre showroom at Shop 2/5-9 Parkland Street in Toombul, Brisbane. The deal was negotiated by Kyle Rae of Colliers International. Godfreys has relocated from a large regional-sized northside shopping centre while still remaining in the same geographic market. Toombul is situated less than 10 kilometres north of the Brisbane CBD. The two other tenants in the group of three shops on Parkland Street are Bob Jane T-Marts and Cash Converters, both of which have been situated there for more than a decade. Now that the property is fully leased, it will be marketed for sale by Stephen Kidd and Trevor Weinert of Colliers International on behalf of receivers BDO via an expressions of interest campaign kicking off in a few weeks.
For more commercial leasing deals go to our dedicated leasing page: 
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Commercial leasing: Godfreys takes warehouse space in Toombul, Brisbane

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Owning a home has long been a dream for most Australians.  In recent years, the property squeeze has forced many potential buyers to look at other alternatives such as units and apartments. With people living busier lifestyles today, apartment living is proving to be a very popular option.
In fact, over a quarter of our population (27.3%) are now living in units and apartments.  More people are choosing to leave the quarter-acre suburban block behind that was popular in the 1990s and opting for the “lock-up-and-leave” advantages of an apartment.
Consider also the hundreds of thousands of immigrants moving here from Europe and Asia, with many of them also buying apartments. In these parts of the world, apartment living is the norm – generally because it is very affordable compared with buying a house. Low-maintenance living is the way of the future and in my opinion, is here to stay.
With the above information in mind, it would be remiss of me not to mention the flipside of apartment buying. To avoid purchasing a “lemon”, be prepared to do some homework, as it will save you lots of dollars and heartache in the long run.
Not all apartments will make profitable investments, mainly because some of them achieve minimal capital growth over the long term.  This is due to a multitude of factors and may include things such as: exorbitant body corporate fees that eat into your rental returns, buying in a low-growth location or simply buying in a bad position.
Our buyers’ agency has adopted a strict “investment-grade” criteria in helping over 2,000 buyers purchase apartments in the last 12 years.
So what are some of the advantages of apartment living?
•             Less repair work – An apartment will generally require far less maintenance and repair work than a house, which will always have more structural issues including plumbing, wiring, stumping, roofing and much more.
•             Minimal maintenance and general upkeep – Houses generally require more attention in terms of ongoing maintenance than that for apartments. There is no need to mow the lawn or do the gardening.  Leave this to body corporates. Enjoy more time to yourself on weekends to do the things you love.
•             Access to leisure facilities – Depending on what you buy, you might have access to communal leisure facilities such as swimming pools, gymnasiums, barbecue areas and bar/restaurants.
•             Higher investor returns – For investors, the returns are generally 1 to 2% higher than for houses.  This results in better cashflow and less money out of investor’s pockets.
 
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So how do you avoid buying a “lemon”?
Here are some of the things we look for that will make your next apartment purchase easier and more profitable.
1.            Scarcity value 
Ensure you buy an apartment in areas where the local council has strict height planning controls.  This will ensure you are not competing with thousands of new apartments each year.  If you look at areas like Elwood or St Kilda, height controls are generally restricted to four-level high buildings. This ultimately adds more scarcity value when compared to buying in Port Melbourne or South Melbourne, where new high-rise towers can shoot up like mushrooms every month.
2.            Land value
Apartments can still have “land value” if you buy in small boutique blocks of 10 or fewer. Make sure you are not one of 100 or more apartments, as this will substantially diminish your land-to-value ratio.  Remember, it is the land that appreciates and this will ultimately determine your property’s value and growth potential. Keep in mind, low-rise buildings where fewer units share the benefits of rising land values will increase in price faster than high-density developments. Therefore, buying an apartment in any high-rise building would be a costly mistake, as you would be compromising on land value and hence, future capital growth potential.
3.            Location
The three golden rules in real estate 101:  1.Location! 2.Location! 3.Location! Buyers should look for suburbs that have strong, positive attributes. If you get the location right, capital growth should follow. Look at buying an apartment that is walking distance (not car dependent) to cafes, schools, parks, water and transport, as this will supercharge your investment potential.  Add to this a quiet, wide, tree-lined street to further enhance the property’s value.
Check out the walk-score distance on walkscore.com to determine how close or far away you are from these popular amenities.  If it’s a score over 70, then you are more than likely too far to walk. Having said that, avoid “C-grade” locations such as main roads, train lines, close proximity to petrol stations and power lines, as this may have an adverse effect on the value of the property.
4.            Appealing aspect
If it has a negative view where you are looking straight into a brick wall, this will impact the growth potential of an apartment.  Any apartment with a park, city or water view will always have a broader market appeal and ultimately be in stronger demand.  Sometimes it’s better paying a 10% premium in price to get one with an appealing aspect or view.  Cheap apartments will always be just that:  cheap and inferior.  Go for upper-level apartments, as they generally have better views and superior aspects.
5.            Sunny orientation
If an apartment is not facing north or north-west, it more than likely attracts little sunlight. Apartment buyers tend to prefer bright, sunny and well-lit homes that require more energy-efficient and sustainable living arrangements, as this helps to save on growing electricity bills.
The next time you’re out apartment hunting, bring your compass along (or use it on your iPhone) and make sure the living areas are not facing the less preferred, dark southerly orientation.
 
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6.            Security
Buy apartments in complexes that offer full security features such as security gates, security doors and intercom systems. This is especially important for females living alone. Although ground-floor apartments have advantages of entertaining yards, upper-level apartments are more secure and harder to break into. Avoid suburbs and streets (eg: Grey Street, St Kilda) where security concerns will limit the numbers of interested tenants and future buyers for your property.
7.            Other amenities
Aim to buy an apartment that has supporting features such as car parking, an outdoor area or private laundry.  An ideal find would include things such as:  an apartment with a distinctive hallway entrance rather than walking straight into the lounge from the front door and a central bathroom as opposed to an en-suite bathroom, as you don’t want to be walking through a bedroom to get to it.  The preference also is to have a practical floor plan that allows for better living arrangements, such as: not having bedrooms running off living areas.  It also works to your advantage if your apartment is on the corner of the building with only one party wall.
8.            New vs old
As a general rule of thumb in real estate, stay away from buying “brand new”. It is not uncommon practice for the developer to load up the price by an extra 10% to cover the GST they would have to pay when constructing a brand new property.  Buyers are better off buying something that is one or two years old to avoid paying GST.  Keep in mind, brand-new properties are often sold at premium prices and can be “loaded up” if sold through marketing and promotional agencies.
The same goes with buying off the plan.  Even though you may save on stamp duty, you would still have the GST component to pay, which offsets this supposed saving.
9.            Wow factor or ‘twist’
Aim to buy an apartment “with a twist”, meaning, there needs to be a “wow factor” about the property that sets it apart from the tens of thousands of apartments in Melbourne.  This could be in the form of a courtyard, the size of the apartment or simply park or water views.  It needs to have a USP – a unique selling proposition that differentiates it from other similar properties. If it has the extra bells and whistles and generally ticks more boxes than other comparable properties, you will be well on your way to securing a great investment.
In summary, we would generally recommend buying older-style apartments that you can add value to via internal and external renovation. Remember: you can change an apartment’s characteristics but you can’t change its location or aspect, so aim to buy a property in the best street and the capital growth will follow.
Our buyers’ agency has purchased over 60 blocks of apartments in the last few years that we can “bulk-buy” and add instant value to with sub-divisions and external/internal renovations.
Frank Valentic is managing director of award-winning buyers' agency <a href="https://www.advantageproperty.com.au/" target="_blank">Advantage Property Consulting.</a><a href="https://www.advantageproperty.com.au/" target="_blank"> </a>
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How to avoid a 'lemon' when buying an investment apartment: Frank Valentic

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MPTV market wrap September 24

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Payless Shoes has become the latest corporate victim to succumb to poor consumer confidence, with the discount footwear chain with more than 220 locations now placed in voluntary administration.
The collapse of the business highlights turmoil not only in the fashion industry and footwear, which have suffered collapses and poor sales during the past year, but also the downturn in retail overall.
WHK principal David Gordon says while there are some categories of footwear that are doing extremely well, others in the discount space are struggling to make an impact.
"One of the other issues is that the stores are a bit old, and because of financial difficulties you haven't seen them put much money into the stores."
"They've just reached a point where problems continue to get worse and worse ... and it all catches up with you."
The move comes after two other significant retail chains, <a href="https://www.propertyobserver.com.au/retail/darrell-lea-s-27-retail-stores-to-close-as-chocolate-maker-sells-to-queensland-s-quinn-family/2012090356379" target="_blank">Darrell Lea</a> and <a href="https://www.smartcompany.com.au/finance/049900-game-retail-chain-to-shut-60-stores-281-jobs-lost" target="_blank">GAME</a>, were also placed in administration during the past few months. Both companies announced plans to close all stores.
The uncertain Payless Shoes will likely impact on retail landlords, <a target="_blank" href="https://www.propertyobserver.com.au/retail/retail-landlords-westfield-and-centro-hit-hardest-by-payless-administration/2012092456756">with Centro and Westfield the hardest hit.</a>
Insolvency group Jamieson Louttit &amp; Associates was called in last week, following the resignation of the managing director. Deloitte partners David Lombe and Vaughan Strawbridge were appointed as administrators on Friday.
Both were contacted this morning, but neither was available to comment before publication.
The company is one of the largest footwear businesses in the country, with 230 locations across the country.
Gordon says it isn't necessarily the footwear industry that's suffering, but rather the space of retail Payless Shoes had carved out for itself.
"There are certain categories in footwear that are doing quite well. Those include retailers that are catering for the older market who require more footcare, including people over 45 who need decent shoes, and they're not afraid to spend more."
"The others that are doing well are the fashion types, and that includes even the less expensive fashion stores."
Payless, Gordon says, operated in a "discount no man's land".
"The only real factor they have to offer is that they're offering shoes at a very good price. But if that's all you've got, people aren't going to spend."
Westfield recently reported footwear sales are down 1.8% for the 12 months to June 2012, and were down 2.3% in the second half of that same year. Given shoes can often be a discretionary purchase, many customers will opt to wait for longer than usual when deciding to purchase new shoes.
Payless Shoes faces stiff competition, not only from cheaper players like Kmart and Target, but also specialised retailers like Athlete's Foot – which has been one of the strongest-performing retailers in the past few years.
Gordon says the connection to the customer is simply lost.
"The message was, come to us and we'll give you cheap footwear. But people don't see that as a trigger to purchase shoes anymore."
This article originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Payless trodden into voluntary administration by poor consumer confidence

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The head of Ritchies IGA has accused the major supermarkets of land banking, which he says disadvantages small businesses, and has called for a two-year moratorium on building new retail spaces.
Ritchies operates 70 of the supermarkets which are part of the IGA's network of 1,400 independent grocers.
Fred Harrison, chief executive of Ritchies IGA, told SmartCompany the current pace of retail development was likely to disadvantage small business and he called for a two-year moratorium on development.
"I just think there is basically an oversupply of retail in Australia at present and we know retail is genuinely struggling. It is not just one sector, it is across the board," he says.
"There are enough indications now that retail life is fairly tough, it has not been tough for a day or week or month; it has been tough now for 18 to 24 months."
Harrison said the amount of available retail floor space in Sydney and Melbourne had increased from two to three square metres per person in the three years to 2010.
"Our population is not growing at a dramatic rate but the level of retail development in recent years has been phenomenal," says Harrison.
"Rather than just having more and more stores being built across the board maybe we should complete what we have and let existing businesses consolidate, because it is not going to be good if we end up with empty retail tenancies."
Harrison says it is "not the most level of playing fields" for small businesses to compete with Coles and Woolworths and accused the two supermarket giants of buying up land in order to block competition.


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"I believe there has been a lot of land banking and I think because of that they have such high subsidies across so many different businesses so they can use one business to subsidise another," he says.
"Naturally, the big end of town is going to be anti these sentiments but there are a lot of small businesses out there that don't have the clout or push to get on TV or to get in the business section of the papers so, in many respects, we are speaking for them."
SmartCompany asked Harrison if it was realistic to propose a two-year moratorium on retail building. "Everything is realistic: Did we think a carbon tax was realistic a couple of years ago?" he says.
"Do we want to go the path of the UK or Spain with acres and acres of empty tenancies? I think it needs to be discussed."
Harrison's comments follow the Australian Competition and Consumer Commission's concession that<a href="https://www.smartcompany.com.au/retail/051807-independents-warn-of-clear-and-present-danger-as-accc-says-coles-and-woolies-may-escape-legal-action">there is not much it can do about claims of anti-competitive behaviour </a>by Coles and Woolworths.
A spokesperson for Coles told SmartCompany, "Coles is not in the business of opening unprofitable stores, we only open stores where we believe there is customer demand for our offer."
Woolworths did not respond to requests for comment before publication.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
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Ritchies IGA calls for two-year moratorium on new retail space

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The uncertain Payless Shoes future – following last Friday's voluntary administration – will likely impact on landlords, with Centro and Westfield the hardest hit.
Westfield is the landlord of 30 outlets of the discount shoes company. The plurality of these, 13 stores, are in NSW.
There are another six outlets each in Victorian and Queensland Westfields, along with two each in the ACT and Western Australia and one in South Australia, as currently listed on the Payless Shoes website.
Centro Centres has 14 NSW Payless Shoes stores, followed by 10 in Victoria, six in Queensland, three in Western Australia and one each in South Australia and Tasmania.
NSW was the dominant location of all the 234 stores with 105 <a target="_blank" href="https://www.propertyobserver.com.au/retail/payless-trodden-into-voluntary-administration-by-poor-consumer-confidence/2012092456761">Payless Shoes outlets.</a>
Second was Queensland with 54 stores; Victoria third with 44, followed by 15 in Western Australia, seven in Tasmania, five in South Australia and only four in the ACT.
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Retail landlords Westfield and Centro hit hardest by Payless administration

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House prices could rise by as much as 15% between now and late 2013 as rate cuts improve affordability, according to Australian Financial Review economic writer David Bassanese.
According to Bassanese, there is a “broad inverse relationship” between current mortgage repayment levels and subsequent house price gains.
“That should be no surprise, because if the required home loan repayment is relatively low, house prices (all else constant) will tend to be bid up," he says.
Bassanese, a 20-year economics veteran, expects interest rates to fall by 100 basis points over the next 12 months – taking the cash rate to 2.5%.
This, he says, will result in further reductions in mortgage rates, which are already at below-average rates, reducing monthly mortgage repayments.
And if per capita household incomes grow by around 4% at the same time as mortgage rates drop, he estimates that repayment levels would drop to 20% below their long-run average by next year – around lows last seen in mid-2009.
Bassanese has compiled his own housing affordability index dating back to 1986 based on the eight capital city established house price produced quarterly by the ABS, quarterly disposable income per capital (also compiled by the ABS) and the discounted bank variable mortgage rate compiled by the RBA.
The Bassanese index measures the mortgage repayment required as a percentage of household disposable income per capita – assuming house prices track changes in the ABS house price index
“The results suggest that as at the June quarter, the mortgage repayment as a percentage of disposable income was around 6% below the average since mid-1986.
According to Bassanese below-average mortgage rates more than offset the house prices to disposable income ratio, which is currently running at 16% above its long-run average.
He says declining mortgage rates and high affordability were the factors behind the mid-1990s property boom.
And he argues that the fact that house prices to income have remained at this high level since mid-2003 suggests this was a “sustainable one-off adjustment due to the structural drop in mortgage rates”.
“As Reserve Bank governor Glenn Stevens once remarked, if house prices are in a bubble then they been that way for an extraordinarily long time,” says Bassanese.
Bassanese's predictions of a 100-basis-point reduction in the cash rate over the next 12 months is broadly in line with the forecasts of some noted economists.
Last week Westpac chief economist Bill Evans changed his rates forecast to two consecutive 25-basis-point rate cuts in October and November and a further 25-basis-point rate cut in the March quarter.
ANZ Research is also forecasting two rate cuts in October and November with an easing bias thereafter.
A quarter of the 20 economists polled by Bloomberg on Friday expect a 25-basis-point rate cut in October.
The five are: ANZ, Westpac (Bill Evans), AMP (Shane Oliver), BT Financial (Chris Caton) and Market Economics (Stephen Koukoulas).
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House prices to surge 15% by late 2013 as rates fall 100 basis points: Australian Financial Review’s David Bassanese

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Mirvac chairman James MacKenzie is seeking to win the approval of shareholders by volunteering to stand for re-election at the developer’s next AGM on November 15.
A spokesperson for Mirvac said MacKenzie had decided to stand for re-election "as he believes it is the right thing to do".
MacKenzie will stand for re-election alongside non-executive directors John Peters and Marina Darling and recently appointed finance director Gregory Dyer.
ASX rules require that one-third of an existing board must be re-elected at each annual general meeting, with MacKenzie agreeing to fill the one remaining spot.
The Australian reported that if MacKenzie had not volunteered either James Millar or former Suncorp CEO John Mulcahy would have stood for re-election based on a rotation system.
MacKenzie has been under pressure from institutional minority shareholders following his decision to replace current managing director Nick Collishaw with Europe-based Sue Lloyd-Hurwitz.
Collishaw will step down as managing director and CEO on October 31, with Lloyd-Hurwitz taking on the mantle on November 5.
His move to seek re-election has been welcomed by <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/institutional-investors-pressure-embattled-mirvac-chairman-james-mackenzie-and-board-over-decision-to-replace-ceo/2012091056495">fund manager Winston Sammut of</a><a target="_blank" href="https://www.propertyobserver.com.au/industry-news/institutional-investors-pressure-embattled-mirvac-chairman-james-mackenzie-and-board-over-decision-to-replace-ceo/2012091056495"> Maxim Asset Management</a>, who represented shareholders with a cumulative holding of 13% of Mirvac calling for MacKenzie to step down.
"It is now going to be decided by all shareholders," Sammut said.
Australian Shareholders Association chief executive Vas Kolesnikoff says it will be closely scrutinising the re-election of MacKenzie.
Mirvac’s substantial shareholders include the Barclays Group (4.91%), Commonwealth Bank (6.33%), BlackRock Investment Management Australia (5.16%) and Vanguard Group (6.21%)
Ahead of the November 15, MacKenzie will meet with shareholder proxy groups to shore up support.
MacKenzie already has the backing of the Mirvac board.
The Mirvac board comprises MacKenzie plus Marina Darling (only appointed in January 2012), Peter Hawkins (a banker with previous senior roles at ANZ), James Millar (former CEO of Ernst &amp; Young Oceania), former Suncorp CEO John Mulcahy, John Peters (formerly with Lend Lease) and Elana Rubin.
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Mirvac chairman James MacKenzie volunteers for board re-election to take on doubters

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After a sluggish winter, spring brings hope of fresh movement in Australian property sales. According to the nation’s leading property, accounting and wealth financial advisory group, Chan &amp; Naylor, this is a great time for those with investments in housing, but anybody hoping to join the property ladder down the line now has a conundrum to face: Australian property is high in demand and supply is low.
Despite recent figures from The Economist stating the Australian housing market is overvalued by 36%, and reports locally and abroad concerned over an apparent property bubble in Australia, now is the time for hesitant property investors, including first-time buyers, to make their move if they want in on the Australian dream.
Moreover, if Australia is to avoid the boomerang effect taking place around the world, whereby millions of adult children are returning home to reside with parents into their 30s, it is crucial that first-time buyers start considering property investment as a way into the market rather than focusing initially on home dwelling options.
Potential investors sitting tight for a bubble to pop could be waiting a long time.
According to a recent study by KPMG, 60 years ago house values in Australia stood at roughly seven times the yearly household income and today that figure stands at a very close 6.9%.
Property values have remained on an upward trend with modest corrections within a cycle, and there are no signs to suggest we are heading for a major downward turn.
High living standards, low and controlled interest rates, relatively high population growth, undersupply and a healthy banking system are only a few reasons why buying property in Australia is an attractive option for personal occupancy or investment. In fact, demand is undeniably set to grow.”
Some of the key drivers contributing to the rise in housing demand include:
<ul>
<li>Retirement of the baby boomer generation and the widening skills gap left behind require further skilled talent to replenish skills and the tax base, which will inevitably come from abroad;</li>
<li>The wealth and opportunity offered by Australia, which attracts skilled migrants from neighbouring countries each year;</li>
<li>The steady entry of five million Generation Ys into the market, which, according to projections by the Australian Bureau of Statistics, will raise the demand for housing by 15% on the previous generation, as more attempt to edge away from the family home; </li>
<li>A diminishing amount of available land for new housing, as people flock to city hubs;</li>
<li>A lack of government initiatives to ensure Australia has an adequate housing supply; and </li>
<li>The sum of these things will keep the value and cost of existing housing high.</li>
</ul>
 
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Given growing demand, smart buyers will invest now, but too many assume the first property they buy is going to be the one in which they live and grow old and so they hold out for the Australian dream to come along and potentially either miss the boat or pay a higher entry price.
In the current landscape, investors – particularly those buying for the first time – become more strategic in their approach. For example, a first property could be used for rental purposes as opposed to becoming a buyer’s first home.
This would not only generate income, but allows investors to use that property as a security for funds to buy a more desirable home down the line. These investors must do the numbers as the ability to purchase a more strategic property may outweigh any grants available. The tail should not wag the dog.
Property acquisition should be treated as a business process as opposed to an act of the heart and realise that it can be a stepping-stone towards acquiring the perfect home later in life.
Property is the biggest asset most people will own, and so they need to surround themselves with professionals who can offer advice in making considered and informed decisions, such as buying in the right market and property cycle or choosing a property with the opportunity to create equity through renovation or improvement, boosting both capital value as well as rental yield.
Parental support may be an option for adult children lacking sufficient funds to get on the property ladder, but this requires caution. A simple and formal loan agreement to help with a deposit is considered safer than becoming co-guarantor – 100% liability for the debt and no assets can lead to a negative equity trap in cases of bankruptcy or where the child splits from a partner the guarantor could be left holding the debt with no asset.
While for the likes of the UK, the rise of the ‘boomerang generation’ is driven predominantly by high levels of unemployment and a poor economy, Australia could find itself experiencing a similar effect, not because our economy is weak, but because not enough is being done by the government to prevent a housing shortage.
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