Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

<a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.

Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.

A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" />

"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.

"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."

The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" />

Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.

The architects say landscape is intended to be integral to the building rather than an applied element.

"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."

"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."

Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.

HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.

HG Developments doubles down in Newstead with second Maud Street apartment development

Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.

"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.

"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.

"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

What does it really mean for a building to be 'green'?

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>

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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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It seems that just a couple of months ago we were reading headlines outlining the possibilities of a US-style crash in Australian real estate.  It was the most common question I got asked throughout the course of last year – “should I wait to buy – is the market going to drop further?” I never have to field such questions during the boom phase of a property cycle.  During these periods, despite cautioning the opposite, buyers are too busy following the herd mentality to take a step back and read the signs.  Now, less than two months after the barrage of media gloom, we’re under a new influx of subtle conditioning with headlines such as <a href="https://bit.ly/xbKQUN" target="_blank">‘Don’t bet on a property crash’</a> , <a href="https://bit.ly/Ax5RZD" target="_blank">‘Property crash just a myth’</a> and ‘Sydney streaks ahead of national market’ working their magic.
It’s totally understandable why moguls such as Gina Rinehart would see investment in Fairfax – even at a marginal level – as a valuable and strategic move. It doesn’t take Einstein’s mentality to work out we’re all – to some extent – puppets of the media.  As the author Nicholas Johnson once said about television (and equally relevant to other forms of publishing), “All television is educational television.  The question is:  what is it teaching?”  It’s a loaded query and one of which we should take note, because for most people, the only education they get on market movements is via mainstream broadcasts.  Furthermore, the stories are staged involve us emotionally, using personal examples and photos to illustrate the bias of the editor’s slant – stories that affect us on a very human level.
I have contact with a wide range of people involved in the real estate industry and often get asked to provide case studies for media stories.  Throughout 2011 the requests were for individuals undergoing rental stress or those experiencing negative equity.  So far this year, the demands have been specifically for those who have made considerable money from property investment – usually over a short period of time. I guess “normal” stories of success through long-term investment simply don’t sell in profitable numbers to warrant report.  It will be interesting to see how the year progresses in this regard, and I’m sure many investors will be left with little concept of who or what to believe.
Even more confusing – <a href="https://www.propertyobserver.com.au/residential/december-quarter-housing-data-roundup-four-sets-of-statistics-give-divergent-outlooks/2012020153215" target="_blank">the stats used in each feature are based on methods that differ considerably</a> depending on the index provider used.  Due to space requirements, these methods generally remain unexplained in the main body of text. As an example, the REIA uses the simplest method of correlation – picking out the middle number of all recorded sales results published on a quarterly basis.  Under this system, unit sales include townhouses, apartments, villa units, and so forth – with no specification of the differences between each property type. Any in-depth analysis of our market should not be based on this information alone considering how broad-based the results are.  For example, variability of sales volumes and the physical nature of stock available are two of many components that can skew the data.
Others attempt to employ more accurate assessments by breaking results down to reflect individual property attributes (two-bedroom, three-bedroom and so forth.)  This system is known as a “hedonic index”, and RPdata-Rismark is at the forefront of the research.  Then there’s the “repeat sale” methodology, which limits samples to properties previously sold.
Others only use detached dwellings thereby ignoring anything “attached”, and the preliminary “real-time data” each provider releases is only as good as the number and accuracy of results recorded from individual sales agents.  More confusing still, certain index providers assess capital city medians based on grouped suburb data – taking the 50% percentile from the correlated information to produce numbers that can differ quite remarkably in the short term to other research databases. To go into a detailed explanation of how each set of figures is collected would be an essay in itself.
Regardless, whichever is employed, it’s somewhat dangerous for investors to base their knowledge on one set of figures alone without a full understanding of the various instruments involved.  Having said this, to get a feel for overall “trends” in the market, median movements can be useful (hence why the RBA take close stock of the information).  When affordability is constrained during a downward phase of the property cycle, a higher volume of lower end sales will be reflected in the data and this can even be referenced when employing negotiation tactics.  However, they’re certainly not an accurate indication of an individual properties value.  For example, it’s possible for the overall median to drop while the price of an individual property rises.  A well-educated buyer will understand the fundamentals attributing to this quandary and override the waves of confusion – however, many will be left with <a href="https://www.propertyobserver.com.au/residential/divergent-housing-data-raises-more-questions-than-answers/2012020153216" target="_blank">more question marks than answers</a>.
Every buyer likes to feel he or she knows the market, and opinions on the prediction of long-term price movements often take a political air.  For those entering the market for the first time, or wondering whether to diversify their funds into property, this conflicting information produces a thought bubble of question marks – especially considering it’s foolish and all but impossible to make blanket assumptions on the Australian real estate market without a thorough understanding of the fragmented elements affecting each state and suburb.
Furthermore, Australia’s median movements are generally so marginal, they don’t deserve the sensationalist headlines they create.  However, I don’t underestimate the importance of the data in scrutiny of overall economic health, especially when other indicators weigh in to show the trend could be reflective of more serious concerns.
 
<hr class="system-pagebreak">
 
Now we’ve moved passed Australia Day, market activity is about to begin once again. Weekend clearance rates will be published, poured over, and analysed, and investment advice will be spruiked from every corner.  Affordability has certainly eased, with last year’s interest rate drops being passed on by the banks, but caution still holds strong in the investment sector.  Those states benefitting from the two-speed economy have already turned the wheel on our downward trend, with Perth and areas of Sydney showing tightening vacancy rates and a marked reduction in stock.  For both states the bottom of the property cycle may have already passed, however in others – Victoria, for example – opportunity is still ripe (for the time being).
Melbourne is undergoing some challenges. The recent blows to the manufacturing industry with the downgrade of Toyota’s Altona-based factory and the challenges they’ll face when the carbon tax is implemented – including potential rises in the state’s unemployment, are all factors that will affect Victoria’s economy and general affordability and put a stop to any bullish ideas of a boom recovery.  As a consequence, any upturns in the market are likely to be perceptible later in year – and depending on a number of possibilities, may even push into 2013.  However, having said this, reported numbers attending open for inspections and buyer enquiry has certainly increased state wide – and with stock dropping and the population still rising, it’s inevitable that disparity between supply and demand in some suburbs will place upward pressure on prices.
The global picture doesn’t need comment at this stage – only to say it increases insecurity and will bear significant influence on the RBA’s decisions to further reduce interest rates – maybe more so than domestic matters.  Therefore, even though nationally we’ve seen a rise in the number of home loans, we’ve yet to see how many will be drawn down.
Indicators across all capitals show real estate around and below the state median is likely to be the strongest performer, with top-end sales still struggling.  This has been reflected throughout 2011 with a greater population push towards the more affordable outer-suburban markets and unit sales topping detached dwellings in the overall median data.
However, for vendors who have weathered through a complete seven- to 10-year property cycle, profitability in all states cannot be disputed – they’ve come out winning regardless of our current conditions. Even in Brisbane – which has taken the largest hit in its median value over 2011 (tumbling some 7%) –  when analysed over a 10-year property cycle, compound capital growth still shows rises in excess of 7% per annum.  The news won’t make headlines, but once again the long-term stability of wise property investment is demonstrated.
Back to current the current malaise and over all confusion, and it’s in an atmosphere like this that the greatest care should be taken when purchasing.  Only quality real estate is going perform well as we progress through 2012, and without plenty of due diligence, purchasers could find themselves making expensive errors.  However, if buyers can pull themselves away from the headlines and seek out more qualified opinions based on their own individual circumstance, opportunities to win in a gloomy atmosphere are in abundance.
Catherine Cashmore is senior buyer advocate, property manager and market analyst for Elite Buyer Advocates. She is also Channel Ten’s property expert on The Circle.  With extensive experience in all matters regarding real estate, <a href="https://www.elitebuyeradvocates.com.au/">Elite Buyer Advocates</a> purchases and negotiates more than $100 million worth of property each year for its clients.
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catherinecashmore-6LXia3pPQj

Look beyond the headlines to invest wisely in property

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<table border="1" cellspacing="0" cellpadding="0" width="370"><tbody>
<tr>
<td width="69" nowrap valign="bottom">
Postcode
</td>
<td width="111" nowrap valign="bottom">
Suburb
</td>
<td width="189" nowrap valign="bottom">
Median weekly asking rent
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3078
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">FAIRFIELD</a>
</td>
<td width="189" nowrap valign="bottom">
$295
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3185
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">RIPPONLEA</a>
</td>
<td width="189" nowrap valign="bottom">
$340
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3182
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">ST KILDA WEST</a>
</td>
<td width="189" nowrap valign="bottom">
$360
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3183
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">BALACLAVA</a>
</td>
<td width="189" nowrap valign="bottom">
$360
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3206
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">ALBERT PARK</a>
</td>
<td width="189" nowrap valign="bottom">
$377.50
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3031
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">KENSINGTON</a>
</td>
<td width="189" nowrap valign="bottom">
$380
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3182
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">ST KILDA</a>
</td>
<td width="189" nowrap valign="bottom">
$380
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3143
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">ARMADALE</a>
</td>
<td width="189" nowrap valign="bottom">
$380
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3068
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">CLIFTON HILL</a>
</td>
<td width="189" nowrap valign="bottom">
$382.50
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3181
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">PRAHRAN</a>
</td>
<td width="189" nowrap valign="bottom">
$385
</td>
</tr>
</tbody></table>
Source: RP Data
 
 
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cknowlton-QnEa6ntUYP

Top 10 cheapest inner-Melbourne suburbs for unit rentals: RP Data

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The only thing that prevented Australian house prices from crashing during the 2008 GFC was the first-home owners’ boost, says Deakin University’s Philip Soos, who believes the sector is now operating like a Ponzi scheme.
Soos, a researcher in Deakin University’s School of International and Political Studies, believes the Australia’s residential property market has resembled the Ponzi stage of financing for the last 11 years.
The Ponzi finance stage is the third and final stage of US sub-prime mortgage theorist and economist Hyman Minsky’s “state capitalist economies cyclically generated crises”.
In the first hedge finance stage “income flows from an asset is sufficient to pay down both principal and interest on the debt financing asset purchases. Prices are based upon fundamentals”.
In the second speculative finance stage “income flows cover only interest, not principal, requiring debt to be continually rolled over. Asset owners may experience financial stress, but it is not widespread, and fundamentals are in kept largely in check”.
During the Ponzi finance stage “income flows cover neither principal nor interest charges. Owners are completely reliant on escalating sale prices (capital gains) to make a profit and meet the cost of the debt. Prices are completely delinked from fundamentals at this stage, resulting in the dreaded bubble.”
“The market would have collapsed during the GFC in 2008 were it not for another first-home owners’ boost re-inflating asset prices to a new, higher peak,” Soos says in an article for academic commentary site <a target="_blank" href="https://theconversation.edu.au/housing-bubble-trouble-separating-facts-from-fiction-5007?utm_medium=email&amp;utm_campaign=Latest+from+The+Conversation+for+January+27+2012&amp;utm_content=Latest+from+The+Conversation+for+January+27+2012+CID_3a05cc55871c06651a4fc3437c781d5a&amp;utm_source=campaign_monitor&amp;utm_term=Housing+bubble+trouble+separating+facts+from+fiction">The Conversation</a>.
“Two types of return tempt house buyers: owning a property valued by the market at a higher price than it was purchased for (capital gain), and increases in the rental income (yield). Property owners hope that they will make a substantial capital gain when they sell, and that rental income can overtake costs over the long run.
“Data from the ATO tells an interesting story. On aggregate, net real rental income has resulted in continuing losses starting at $966 million in 2000, and peaking at $8.8 billion in 2008. Rental income has not exceeded interest costs since 2000, let alone met the costs of maintenance, rates, agent fees and property tax.
“No rational investor knowingly purchases an asset that yields a negative return. Investors are sacrificing cash flow to build assets and realise eventual capital gain,” he says.
According to Soos, the tipping point for the mark will come when “the household sector is so overloaded with debt there exist no more ‘greater fools’ willing to commit to a lifetime of debt serfdom to purchase property”.
“With few buyers and many sellers, prices stagnate then rapidly fall as assets are unloaded en masse onto the market. With demand falling in the housing sector, coupled to an inevitable increase in unemployment, a vicious deflationary spiral occurs. Economy activity grinds to a halt.”
Soos says other arguments put forward by housing bubble deniers don’t stack up including the argument that “restrictive government regulations (RGR) limit the supply of land and timely dwelling construction through zoning controls, development, planning and building laws, driving up housing prices”. Soos says the major difficulty with this argument is that government regulations can only affect rent prices and thus the market-efficient price for land.  “If rent and land prices diverge, however, this argument falls flat – as is the present case. Housing prices have experienced a far greater run-up than rents since 1996. Further, markets would have already priced the supply-side distortions into the cost of housing long before the bubble began. There is no change in RGR that could explain the increase in housing prices from 1996, skyrocketing in 2001,” he says.
He also says low inflation and low interest rates that began in the late 1990s cannot fully explain the jump in house prices. “Even as far back as 2004, the RBA noted that the decrease in inflation and interest rates could only explain a doubling of household debt relative to incomes, and probably less. Household debt has more than quadrupled over this period,” he says. “If this argument were credible, the 1960s should have prompted an even greater household debt ratio as rates were the lowest on record throughout this decade. This did not occur.”
 
 
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lschlesinger-FZcF9M3vE6

Australian housing a Ponzi scheme and the housing price bubble will burst: Academic

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Sydney CBD super-prime net face retail rents fell 6.2% in the December quarter to an indicative $7,560 per square metre, but landlords have a very low vacancy rate of 0.6%.
Regional shopping centre rents rose by about 3.2% in part due to council approval delays for new retail space.
Prime strip retail is typically showing a 5.5% vacancy rate, with rents down 1.2% in the December quarter.
Oxford Street and Double Bay were the weakest, with CBRE saying Double Bay gross face rents fell 10% in the December quarter.
Click to enlarge
<a href="/images/stories/cbrefeb6.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/cbrefeb6thumb.gif"></a>
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jchancellor-FAypfDUnLy

Double Bay retail rents tumble 10%, but Sydney super-prime not immune either

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General investors and superannuation contributors did not do well over 2011.
The Australian share market lost about 15% of its value, and SuperRatings reports that even conservative “balanced” super funds went backwards by 1.9%.
House values in Australia’s capital cities dropped by around 3% to 4% during 2011.
So what should people be investing in this year?
I suggest a serious look at investing in property and renting it out to tenants.
There are several reasons for this outlook, including soft house prices, strong rental demand and the prospect of solid total returns.
You ideally want to buy the property at a time when real estate is in the downturn phase of its cycle, you want to rent it out when rental demand is high, and these two factors should come together to produce a total return that not only beats inflation but also compares favourably with alternative investments.
One of the first rules of buying property is that you must not overpay. This is important for two reasons: firstly, you don’t want your income from the property being overshadowed by high mortgage repayments; and secondly, capital growth in the property is as important as the monthly cashflow from rental income, and you will enjoy greater capital gains when you buy the property for a lower price.
With property prices having been flat or going backwards for two years, it seems like a good time to buy.
Property can also be looked at in terms of affordability, and affordability is attractive for investors right now. Disposable household incomes grew about 6% in the year to September 2011 while dwelling values declined by a total of 3.3% since May 2010, according to RP Data-Rismark research.
Rismark says disposable incomes per household have risen about 15% further than capital city dwelling values since the end of 2003.
When many people buy investment properties, they simply want to buy the cheapest place they can find and rent it for the highest rent they can charge. I advise potential landlords to hold out for a property that is in a sought-after area, close to shops, transport and schools.
There is no point having a rental property that you can afford when no one wants to pay you to live in it.
Then you have to look at rental demand because when you buy an investment property, you are going into business as a landlord.
On this score, there’s some good news for property investors. Weekly rents across the capital cities rose 1% over the December 2011 quarter and are 6.3% higher than at the same time last year.
This suggests rental demand is exceeding supply, which is good for landlords. Anecdotally, you hear stories of people queuing to see the good properties and offering to pay more rent than advertised to secure the property.
While this is a good result financially, it’s also a benefit in terms of tenant management. One of the biggest headaches for a landlord is a bad tenant, but when demand is strong you don’t have to take the first applicant. You can pick the tenant who is best suited to your property and who has the best record.
If you feel you can buy cheaply in the current property market and you can take advantage of the strong rental demand, then you have to think about your total return.
The total gross return enjoyed by property investors around Australia has averaged 1% per cent over 2011, much better than the 15% losses experienced in Aussie shares.
The average capital city apartment is now offering a gross rental return of 5.1%.
This is looking like a strong scenario for investors wanting to buy property, and if the current financial market pricing for further interest rate cuts comes to pass, the outlook for housing in 2012 looks positive for not only owner-occupiers, but landlords too.
As a final hint to first time property investors, I would urge you to take professional advice before entering into this: consult a solicitor or accountant about your tax position as a landlord, use an insurance broker to get the right insurances, and spend some time finding the right property management company.
It’s a good time to be a landlord, but only if you do it properly.
Mark Bouris is executive chairman of <a target="_blank" href="https://www.ybr.com.au/">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
This article originally appeared in News Ltd. papers.
 
 
 
 
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mbouris-tauSvXGAM2

Now is a good time to become a landlord, but you must do it properly: Mark Bouris

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ANZ says a bump up in job advertisements in January means the RBA can hold off cutting interest rates until March.
The latest figures show total job advertisements were 0.7% higher in January 2012 than in January 2011 – the largest rise in job advertising since February 2010.
“Against this local backdrop and that of a persistently weak (but not worsening) global economy, we have forecast that the RBA will need to cut interest rates by 25 basis points in the first quarter of 2012, most probably in March,” says ANZ head of Australian Economics and Property Research Ivan Colhoun.
“Inflation is well contained and the economy can afford to grow a little faster. Beyond March, if we see further confirmation that job ads have stabilised, this will likely be important for monetary policy expectations.
“In particular, we will be less likely to see further interest rate cuts and the market will need to remove some of the aggressive easing profile built into rate curves,” he says.
The job figures had an immediate impact on interest rate betting odds, with TAB odds of a rate cut increasing from $1.20 to $1.26 – still lower than odds it offering of Australia winning the one-day series against India and Sri Lanka, currently at $1.45.
The TAB is paying $1.20 on a 0.25% rate cut but $1.45 on the Australians winning the tri-nations tournament, despite yesterday’s 65-run thumping of the Indians.
There are very long odds ($151) on the RBA pushing up the cash rate by 0.25%.
Sportingbet.com.au is paying $1.22 on a 0.25% rate cut and $3.50 on rates staying the same.
 
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Job ad increase could forestall February rate cut, says ANZ, as TAB odds ease

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Australia’s housing bubble will “pop” if it builds more houses, says US hedge fund manager Jeremy Grantham.
“If you have a housing bubble and you respond by building houses, it pops. It behaves from a bubble expert’s point of view.”
However, Grantham says the RBA’s interest rate cuts are forestalling a property crash.
“The UK and Australia are abhorrent bubbles, because of government policy, you draw out the agony,” he told the Australian Financial Review. According to Grantham, a property crash would be good for the economy and for those who have not bought yet.
Grantham, co-founder of Boston-based hedge fund GMO, caused a stir in April 2010 when he declared a housing bubble in Australia and said prices would tumble as interest rate rose (the Reserve Bank pushed rates up by 25 basis points to 4.25% in April 2010).
His declaration resulted in a flurry of short-selling by Australian banks.
In 2011 Grantham visited Australia and said the housing bubble was about to burst, but later adjusted this forecast to say it might only deflate slowly rather than pop.
Grantham correctly predicted Japanese real estate’s bubble in the 1980s, the bursting of the dotcom bubble and the events that led to the US housing crash in 2008.
He maintains that an overpriced housing market is not healthy for the economy and puts Australia at a risk of a Japanese-style housing scenario.
Under a Japanese scenario those looking to enter the housing market (young first-home buyers) must either continuously save or live outside of the major cities to afford a house.
“For someone that hasn’t bought and for a generally healthy economy it’s better to get rid of it and start again,” he says.
According to Grantham first-home buyers and new arrivals are better of renting than buying at the moment because house prices are being artificially “propped up.
Renting now, he says, is a cheaper and less risky proposition than buying a property.
“You are putting a terrible burden on young families, which is a miserable idea,” he says.
“Japan did it that way and they have worked it out after 20 years. Back in 1990 if you were young you were looking at loony prices for little shacks in Tokyo.”
Backing his argument, Grantham says first-home buyer numbers are at record low ratios in both Australia and the UK. 
Another US analyst, Heather Hagerty of bond fund manager Fidelity Investments, says the 3.5% fall in house prices in 2011 is “comforting” and says a “healthy correction is going on”.
“We take comfort in the fact that the household leverage isn’t growing, that the savings rate continues to be at a high level and the market appears to be reacting to the rate cuts.”
However, while Hagerty says the Australian market is shielded by the tax structure, full-recourse lending, low loan-to-value ratios, she agrees with Grantham that pent-up demand is the issue.
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US analyst Jeremy Grantham adjusts Australian housing price bubble predictions, so watch housing construction numbers now

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An expected cut in interest rates tomorrow will cause housing affordability to improve even further than its current eight-year high and should silence those housing “doomsters” forecasting big drops in house prices over the next few years, according to CommSec chief economist Craig James.
Writing in his latest Investor Signposts report, James notes that a “combination of rising household income and lower housing prices has meant that housing affordability is now at the best levels in over eight years (since 2003)”.
“Another interest rate cut this week will boost housing affordability even further. Where will that leave the doomsters? Basically with nothing to report,” he says.
The “doomsters” forecasting big drops in house prices include University of Western Sydney’s <a target="_blank" href="https://www.propertyobserver.com.au/residential/house-prices-will-be-10-lower-by-the-end-of-the-year-steve-keen/2012020253240">Steve Keen, who expects house prices to fall by between 6% and 10% in 2012</a> principally because mortgage demand is decelerating and the market has shaken off the effects of the “first home vendor’s boost”.
More dramatic predictions have been made by US self-described expert Jordan Wirsz, who forecasts a 60% drop in house prices over the next five year – claims that have been <a target="_blank" href="https://www.propertyobserver.com.au/residential/us-doomsayer-jordan-wirsz-s-predicted-60-drop-in-aussie-house-prices-silly-analysts/2012020353244">rubbished by Australian property market analysts.</a>
James described the 3.6% drop in property prices in 2011 (as recorded by RP Data-Rismark) as a “soft landing” after growth of 5.1% in 2010 and 12.1% in 2009.
“Prices were pumped up in 2009 by super low interest rates and government incentives for first home buyers, so a correction was clearly on the cards as demand and supply moved into balance,” James says.
“And at the end of 2011 it looked like the correction was nearing completion with prices up 0.4% in November and easing just 0.2% in December.”
James also notes that despite the fall in dwelling prices, “total return on dwellings grew by 0.8% in 2011, out-performing shares with the All Ordinaries accumulation index sliding by 11.4% over the year.
“But returns varied from +4.5% in Sydney to -2.3% in Melbourne.”
Speaking on ABC’s Insiders program yesterday, Federal Treasurer Wayne Swan also highlighted improved housing affordability and said cheaper interest rates were saving borrowers about $3,000 per year.
Swan noted that the cash rate currently sits at 4.25% compared with 6.75% when the Labor government came into power.
“If you look at the last two interest rate cuts, somebody on a $300,000 mortgage is paying $3,000 a year less than they were paying when we came to government. So the fact is that the outlook out there is pretty bright.
“The fact is the economy is going along strongly but we've also seen rates come down, two rate cuts in a row, and there are good deals out there in the market,” he says.
Should the major banks not pass on the full rate cuts, they are likely to cop another verbal bashing from the Treasurer, who has dismissed banks’ cries over higher funding costs as highlighted by <a target="_blank" href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=property+observer+gail+kelly&amp;source=web&amp;cd=3&amp;ved=0CDEQFjAC&amp;url=http%3A%2F%2Fwww.propertyobserver.com.au%2Fmortgages%2Fwestpac-cuts-jobs-as-mortgage-demand-falls-and-wont-commit-to-passing-on-rate-cuts&amp;ei=SQ4vT6SwC-60iQeJh8nTDg&amp;usg=AFQjCNHhpRxC5HtOz9KfJT2lwdChk8n13w">Westpac CEO Gail Kelly last week.</a>
Swan says banks remain “hugely profitable and their net interest margins are back to where they were prior to the global financial crisis”.
A report in today’s Sydney Morning Herald highlighted Westpac’s slowness in passing on the November and December rate cuts, with some borrowers yet to see any repayment relief.
The bank claims it is helping borrowers “get ahead” on their mortgages – borrowers have to call the bank and ask for the rate cut to be passed on.
According to opposition spokesman Joe Hockey borrowers were $700 per year better off under the 12-year reign of the Howard government than under the current Labor government.
 
 
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Rate cut would silence 'doomsters' and improve already high affordability: CommSec's Craig James

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Foreign home buyers in China will no longer be granted medium- or long-term mortgages, the National Development and Reform Commission announced last week.
The new policy is the government's latest measure to cool the country's property market, despite foreigners only accounting for a very small portion of home buyers.
Statistics from Centaline Property Agency (CPA) Ltd show that in 2009 the proportion of homes in Beijing's pre-owned property market owned by people from overseas stood at 0.79%.
The purchase of new apartments by foreign buyers had been had been on the rise, with CPA noting for apartments sales valued at more than 3 million yuan ($476,000), the figure was more than 10% during 2009.
In 2007 the figure was 0.4% and in 2008 it was 0.32%.
In July 2006, China launched a policy restricting property purchases by foreigners. According to that policy, only expatriates who have studied or lived in China for more than one year can buy property, with purchases capped at one apartment for self-use.
"The new restriction will affect sales of some of our high-end projects," said Grant Ji, director of the investment department at the real estate service provider Savills Property Services (Beijing) Co Ltd.
"One of the major barriers is the currency. People who don't work in China are only allowed to exchange a maximum of $50,000, which is not even enough to meet the down payment. If medium- to long-term loans are prohibited, it will be almost impossible for them to purchase a home," Ji told ChinaDaily website.
 
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China tightens mortgage policy for foreigners as part of cooling measures

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This Tuesday we have our first Reserve Bank of Australia meeting for 2012, where it would come as no great surprise if the bank leaves the cash rate at 4.25%. The RBA is well aware that Australian banks’ funding is under great pressure as a result of the global financial crisis to the extent that our banks have already forewarned that if the cash rate is reduced it is highly unlikely they will pass on such cuts. I agree with former RBA board member Warwick McKibbin that the bank should wait until the European debt crisis is sorted out – “it’s better you have your weapon loaded so when the crisis comes, you can hit it with full force.”
So how low will the RBA cash rate go in 2012? I am tipping three rate reductions, reducing the cash rate site to 3.25% by the year’s end. On April 9, 2009 the RBA dropped the cash rate to 3%, so I can’t see it dropping below that. We need to remember that in Australia approximately one-third of households rent, the other third own with a mortgage and the final third own without a mortgage.
Australia is most fortunate that our banks are among the top performing in the world – as too our property markets. Three years ago the American property market was so weak the US Federal Reserve cut the official interest rate to zero. This week it announced that it plans to keep interest rates at near zero until the end of 2014. A cash rate that hovers around zero means exactly that –  nothing really happens to the extent that the economy is fundamentally broken with no signs of recovery in the short term. If this were to happen in Australia the economic consequences would indeed be dire and property values would plummet with the unemployment rate skyrocketing.
<img src="/images/stories/simeon1.jpg">
<img src="/images/stories/simeon2.jpg">
<img src="/images/stories/simeon3.jpg">
 
In Australia the property data aggregators (Australia Bureau of Statistics, Residex, Australian Property Monitors and RP Data-Rismark) all <a href="https://www.propertyobserver.com.au/residential/divergent-housing-data-raises-more-questions-than-answers/2012020153216">offer conflicting market positions</a> that <a href="https://www.propertyobserver.com.au/residential/december-quarter-housing-data-roundup-four-sets-of-statistics-give-divergent-outlooks/2012020153215">confuse the markets</a> – then <a href="https://www.propertyobserver.com.au/residential/sydney-and-melbourne-more-affordable-than-demographia-suggests/2012012953158">throw in Demographia International</a> to complete our “dog’s breakfast”.
I use a much more simple application. My demographic market is Mosman, which has approximately 4,900 houses. I go to Domain and untick surrounding suburbs and then tick houses, where I see that 102 houses are currently on the market, which is approximately 2% – in 2011 Mosman never went higher than 3%. If a property market gets above 10% you then have serious problems and prices will suffer significant collapses.
Another point that needs to be raised is the Chinese factor, which was highlighted in a recent article that appeared in Property Observer – “Harry Triguboff says Chinese buyers back in Sydney market in January: Gottliebsen”. An article appeared in the China Daily last week “Real estate down under proving to be very attractive”: “Chinese investors are showing an increasing high level of interest in the Australian property market. Chinese developers were responsible for 9% of the 30% share foreign developers took in the Australian apartment market last year.”
“In a review by real estate company CBRE for the fourth quarter, more than 1,200 apartments were either planned, being marketed or were under construction by Chinese companies in Australia. The Chinese mainland was only led by Singapore (37%), Hong Kong (20%) and Malaysia (12%).”
“The biggest markets sit along the east coast in Australia’s two largest cities: Melbourne and Sydney. About 80% of the total number of apartments proposed or under construction by foreign developers was located in these two cities.”
So after four years of financial turmoil Australia does have something to smile about although 2012 will be a tough year. Money will be tight, but that is not a bad thing either given it allows property niche markets to consolidate.
Australia is building momentum, which can’t be said for the northern hemisphere markets. 
Robert Simeon is a director of <a title="RWM" target="_blank" href="https://www.rwm.com.au/">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real-estate blog <a title="Virtual Realty News" target="_blank" href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
 
 
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