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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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 property market is a living and breathing entity. Although it moves slowly it is always evolving and the following tale illustrates how three different apartments have fared in recent years.
The apartments are all two bedrooms and were purchased in the last six years. This is important, as they have all been held through the 2007 share market boom, the global financial crisis, the property boom of 2009/10 and the property market adjustment of the last couple of years.
Apartment one - <a href="https://www.realestate.com.au/property-apartment-vic-docklands-111987091" target="_blank">1506/100 Harbour Esplanade, Docklands</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/03/25/docklands%20march%2025%20one.jpg" alt=""> 
Purchased: November, 2006 for $460,000
Sold: November, 2012 for $460,000
Annual compound growth rate: 0%
Why?
One of the great marketing tools bandied about the market is to imply strong population growth is an indicator of future capital growth. But this point fails to heed the laws of supply and demand.
Many people think population growth is a key indicator of demand. If the population is growing, there must be huge demand and in isolation, that is correct. However I view population growth as a better indicator of supply. If there is strong population growth there must be a lot of available property for people to move into.
Docklands still has an issue with oversupply. Since 2001 its population has been growing by almost 22%. This growth rate is skewed given the population in 2001 was less than 700 however it has still been growing by 6.5% over the last five years. This is well above the 1.5% annual population growth of Victoria.
Over the years the Docklands precinct has been an easy target as it performance as an investment has been so disastrous. Many people suggest it must turn the corner soon and the next 10 years will be much better than the last 10. However consider this, according to the 2011 census one in five docklands properties is unoccupied.
Apartment two - <a href="https://www.realestate.com.au/property-apartment-vic-hawthorn-111057247" target="_blank">109/92 Kinkora Road, Hawthorn</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/03/25/hawthorn%20march%2025%20one.jpg" alt=""> 
Purchased: June, 2005 for $445,000
Under offer: November, 2012 for $470,000
Annual compound growth rate: 0.86%
Why?
Developers continually fight an uphill battle as they struggle to match rising labour and material costs to produce a product that they can sell and make a profit. The most effective way they do this it to cram as many apartments they possible can onto each block of land. To do this they usually compromise the size of each apartment. The first causality is the kitchen and it gets squeezed into the lounge room. Most people would prefer a separate kitchen.
<img src="https://www.urban.com.au/images/2014/03/25/armstrong%20arch%2025%20one.gif" alt=""> 
The other way to make a profit is to sell the property for as mush as possible. As a result, pure market forces do not determine the asking price, it is calculated by the cost to build each apartment and a profit margin.
When the investor bought this property they could have purchased apartment for less and made more money!
Apartment three - <a href="https://www.realestate.com.au/property-apartment-vic-hawthorn-112150903" target="_blank">1/69 Morang Road, Hawthorn</a>
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/03/25/hawthorn%20march%2025%20two.jpg" alt="">
Purchased: July, 2007 for $405,000
To be auctioned 1st Dec 2012: Expected sale price: $550,000 plus
Annual compound growth rate: 6.91%
Why?
Hawthorns population has been growing by just over 1% per annum over the last 10 years. The low level of population growth is not due to people not wanting to live there as Hawthorn is a highly desirable location. Population growth is held back because of the lack of supply due to unfavourable town planning laws for developers and the lack of development opportunities. This lack of supply puts upward pressure on prices.
Furthermore, the apartment was built more than 40 years ago when labour was much cheaper and developers could make a profit by only building six units on the block. They did not have to sacrifice floor space and as a result the property is more desirable and in strong demand. When it was purchased there was no developer premium paid as it was sold at auction and market forces determined the price.
<img src="https://www.urban.com.au/images/2014/03/25/armstrong%20march%2025%20two.gif" alt=""> 
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marmstrong-sd3emVLPPb

A tale of three apartments: Why population growth does not equal capital growth

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GUEST OBSERVATION
Australia is allegedly in the midst of a <a href="https://www.gbca.org.au/revolution/" target="_blank">“green building revolution”</a>, powered by the awarding of ratings to developers who build sustainable buildings.
But this brave new world is only a reality in the high-end office blocks of Australia’s central business districts (CBDs). Everywhere else, the pace of progress is much slower. At least, that is what my research into <a href="https://www.envirovoluntarism.info/" target="_blank">more than 70 sustainability tools</a>, both in Australia and overseas, tells me. Let me explain this through one example.
In 2002, the <a href="https://www.gbca.org.au" target="_blank">Green Building Council of Australia</a> (GBCA) was established to “drive the adoption of green building practices through market-based solutions”.
Last week it hosted the <a href="https://www.greencities.org.au/" target="_blank">Green Cities Conference</a>, bringing together the construction industry, policy makers and academics to discuss the way forward in improving the environmental and resource sustainability of buildings and cities in Australia and elsewhere.
The GBCA is particularly proud of its <a href="https://www.gbca.org.au/green-star/" target="_blank">Green Star</a> system, which rates the environmental performance of buildings.
A Green Star revolution in Australia?
The ratings help the construction industry to showcase the environmental credentials of its buildings. In this respect, Green Star is a simple and elegant idea: it allows a building’s environmental performance (in terms of energy, water and material use) to be easily compared with that of other buildings – rather like the energy performance stickers you find on new fridges or cars.
This easy comparability makes these assessment tools very attractive. For developers, investors, owners and occupants alike, it is easy to grasp that a six-star building is somehow better than a four-star one.
The numbers the GBCA presents about its Green Star program are impressive. <a href="https://www.gbca.org.au/green-star/green-star-overview/" target="_blank">More than 7 million square metres</a> of Australia’s built-up space is rated as having high levels of environmental performance. This includes <a href="https://www.gbca.org.au/docs/evolution2013.pdf" target="_blank">18% of all office space</a> in the CBDs of major cities. But what do these numbers actually mean, and are these successes found everywhere, or are they concentrated in certain locations?
Central focus
Green Star is mainly used to label office space in the CBDs of Australia’s cities (those with populations of at least 20,000). Here it has indeed achieved considerable success.
Since the introduction of Green Star in 2003, some 5.3 million square metres of office space was added to the CBDs of Australia’s major cities. Of this, about <a href="https://www.gbca.org.au/green-star/green-star-overview/" target="_blank">2.9 million square metres</a> are now Green Star labelled. That is a success rate of about 50%, which may be considered a very successful outcome.
But what is labelled, exactly?
Green Star awards three levels of labels: “Best Practice” (4 stars), “Australian Excellence” (5 stars), and “World Leadership” (6 stars). Green Star does not report on how many buildings or square metres fit into each category, but some other labelling tools may give some insight. The partly mandatory <a href="https://www.nabers.gov.au/public/WebPages/Home.aspx" target="_blank">National Australian Built Environment Rating System</a> awards its highest labelling category to just <a href="https://www.nabers.gov.au/public/WebPages/DocumentHandler.ashx?docType=3&amp;id=105&amp;attId=0" target="_blank">8% of buildings</a>. Meanwhile, Green Star’s counterpart in the United States, <a href="https://www.usgbc.org/leed/" target="_blank">LEED</a> (Leadership in Energy and Environmental Design), only awards <a href="https://books.google.com.au/books?id=qCH00bF-4MYC&amp;printsec=frontcover&amp;dq=the+world%27s+greenest+buildings&amp;hl=en&amp;sa=X&amp;ei=yaUVU-y-NcTUkwWZjYHgCw&amp;ved=0CDYQ6AEwAA#v=onepage&amp;q=the%20world's%20greenest%20buildings&amp;f=false" target="_blank">6% of its labels</a> in its highest category.
If the vast majority of buildings are not hitting the highest sustainability standards, then are we really witnessing a revolution?
A levelling-out of growth
It should also be kept in mind that these are <a href="https://www.gbca.org.au/uploads/170/34474/A_decade_of_green_building_.pdf" target="_blank">accumulated numbers</a>. If they are unpacked as yearly “successes”, the picture presented by the GBCA changes a little more. The below figure gives some insight.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/44175/area14mp/g928847f-1395118670.jpg"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/44175/width668/g928847f-1395118670.jpg" alt=""></a>
Source: GBCA
Since 2008, the uptake of Green Star labelling has levelled out. Before then, it was increasingly sought by developers for buildings they would develop in the future, but this no longer seems to be happening.
This is not that surprising. With the introduction of a tool such as Green Star it is to be expected that many early adopters try it out in the first years when they can be pioneers, and be rewarded as such. It is much harder to get the later adopters on board.
If 18% of the office market represents the Green Star system’s saturation point, then this does not bode well for the revolution’s future. On the current trend we can expect the levelling-out of actually built Green Star buildings to begin in 2016.
This will leave more than 80% of the Australian office market untouched by well over a decade of “Green Star revolution”.
Outside the office
Australia, of course, has more than just office buildings. The total residential building stock is estimated at about 1.5 billion square metres, based on <a href="https://www.propertyobserver.com.au/https://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/quickstat/0?opendocument&amp;navpos=220" target="_blank">9 million dwellings</a> at an average for new builds of around <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/featurearticlesbyCatalogue/8BB3F6B866BC35CECA2578A000153026?OpenDocument" target="_blank">220 square metres</a> (historical averages were lower, which brings down the total). This dwarfs the total commercial space, which is about <a href="https://www.nabers.gov.au/public/WebPages/DocumentHandler.ashx?docType=3&amp;id=105&amp;attId=0">27 million square metres</a>.
In this context, Green Star’s impact has been marginal at best. The 7 million square metres of Green Star labelled space represents less than 0.5% of the total.
In other words, outside Australia’s major business districts, green building labelling has not caught on, despite the GBCA’s attempts to move into these markets. The much-touted revolution has not spilled over from the CBDs to the rest of the country.
What makes a revolution?
Green Star is but one of the many tools that I have studied through which the construction industry seeks to foster more sustainable practice. This is a revolution in itself. Like Green Star, these tools have achieved some successes in niche markets, but have not achieved overall sweeping results.
Also like Green Star, these tools have received both <a href="https://urbansustainabilityresilience.wordpress.com/2014/02/08/trends-in-governance-for-urban-sustainability-and-resilience/#comments" target="_blank">accolades and criticisms</a>. The 7 million square metres of labelled office space undoubtedly represents a success for Green Star. But has it caused the revolution in the Australian construction industry that the GBCA claims?
It depends, of course, on your definition of “revolution”. In 2007 Apple introduced the iPhone, which clearly revolutionised communication. <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2013-02-01/half-of-australian-adults-now-own-a-smartphone/4494892" target="_blank">More than half of all Australians</a> now own a smartphone. In 2003, the GBCA introduced Green Star, which now covers 0.5% of Australia’s built environment. Clearly some revolutions happen faster than others.
To really kickstart the green building revolution in Australia, other market segments need their own tools like Green Star. This will require more leadership in the industry, in figuring out how to tempt the developers and owners of other building types to join in.
I hope that the Green Cities Conference inspires its participants to move the green building revolution beyond Australia’s CBDs, and past the commercially attractive top end of the construction market.
Jeroen van der Heijden is Assistant Professor of Environmental Governance at Australian National University.
Jeroen receives funding from the Netherlands Organisation for Scientific Research.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>. 
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jheijden-cBMeUt3AbR

Green building revolution? Only in high-end new CBD offices

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If you’re thinking of buying an investment property but don’t know much about where to start, my advice is to start at the end. Which is really the beginning. What do I mean? Read on, and I’ll explain.
I’m probably showing my age a bit here, but when I was a teenager, all the cool kids were listening to The Smashing Pumpkins in high school. My favourite song was one called ‘The End is the Beginning Is the End’. I liked the song and the name of it too.
Fast forward almost twenty years and I find myself applying this philosophy to my property investing career.
<blockquote>
Understanding your investor persona will help you get you growing towards your goals in the most efficient way possible.
</blockquote>
See, when you’re making your start in property investing, you should best begin by thinking about what the end result will be. What is your specific property goal?
A common end result, or goal, amongst many younger investors, is to build a portfolio that will pay its own way whilst you live your work/career life nine to five. Then when you stop working a couple of decades later and the properties have grown – both in value as well as rental income you receive – you’ll be able to quit work and have that extra revenue not only pay off the property mortgages, but also become your new salary.
So yes, the end is the beginning is the end. Start at the end result, which is really your beginning. Plan to work, then work the plan and that beginning becomes the end you originally hoped for. Make sense? Great!
The thing is once you’ve identified your goal, you’ll learn there’s more than one way to get you there. Depending on many variables – such as your income now versus your income in say five years, lifestyle factors and future projected cash-flow factors – different strategies will serve different purposes.
So today I thought I’d outline two main investor personas that I’ve affectionately called ‘cash-flow kings’ and ‘capital growth commandos’. I’ll cover what each means in growth terms, and the kind of investor each persona suits. I’ll then make quick mention of two more personas; who I’ve affectionately called ‘best of both barons’ and ‘flip and reno ringleaders’.
Understanding your investor persona will help you get you growing towards your goals in the most efficient way possible.
Cash-flow kings:
 
<ul>
<li>These investors chase either neutral or slightly positive gearing in their portfolio.</li>
<li>Whilst capital growth is important to them, they are in it for the medium-long term and favour balancing their books, effectively holding on to several properties where the rent covers all expenses for these properties each month, rather than immediate value growth.</li>
<li>This may mean that a cash-flow king will hold say three properties for several years before the property starts going up much in value.</li>
<li>This strategy can work well for low-middle income bracket earners and younger investors, who are unlikely to see as much benefit from say negative gearing strategies.</li>
<li>Key to mention is that this strategy needn’t be set in stone. During your younger ‘acquisition’ years, you may wish to procure a few properties that just pay for themselves. Then, as you start earning a higher salary you may want to pick up a property or two that has more capital-growth potential, but puts you out of pocket a little bit each month to hold.</li>
</ul>
 
Capital-growth commandos:
 
<ul>
<li>You guessed it; these investor types typically favour the security of buying properties in areas where the value of the property will likely grow in the medium to long-term.</li>
<li>With these property types however, it usually means that the rent coming in does not quite pay for all of the monthly expenses, which means you need to dip into your own pockets each month to make up the difference.</li>
<li>This strategy works well for investors earning higher salaries than the national average because oftentimes, their higher tax income bracket means the investor is able to claim back a bigger portion of claimable property expenses each financial year. For some investors, this annual tax return may offset most of that month to month top-up that they made.</li>
<li>This strategy works for  any age investor. However it can work well for those who start a little later in life, perhaps in the mid-late 30s. This is because their incomes are usually at their peak at this age and the investor can afford to chip-in each month on these properties.</li>
</ul>
So right now you’re probably thinking ‘why can’t I have it both ways?’, or ‘what about other ways to make a buck out of properties than just buying and holding on to them over time?’
Below are two more strategies to consider. Each has its challenges and advantages.
Best of both barons:
<ul>
<li>
Having your cake and eating it too is hard to do. Properties that genuinely present as possessing both high capital-growth potential and neutral-to-positive cash flow, are as rare as hen’s teeth.
</li>
<li>
Also, these are not for the faint of heart. Clever property spruikers, sales people and marketers will always market that brand new apartment tower as having high yield and high growth.
</li>
<li>The reality is very few properties actually do. Worse still, inexperienced investors or those who merely prospect (as opposed to those who use all of the paid and unpaid digital data tools available to them to draw their own cash-flow and capital-growth conclusions), can come unstuck purchasing properties that don’t quite turn out the way they’d hoped.</li>
<li>That said, these properties do pop up on rare occasions and should be snapped up when a genuine one presents itself. It’s just that you might be waiting around for a long time to find one.</li>
<li>This is why I mentioned these investor types usually need to pour in way more time and energy than passive investors do. They also need to be constantly up to speed with not only the tools that passive investors use, but the future council zoning and plans for their chosen property’s area (and yep, these plans are constantly changing and evolving too).</li>
<li>Another easier way to achieve this strategy is to procure a balanced portfolio. So, a couple of properties that are more cash-flow driven and a couple that are capital-growth driven.</li>
</ul>
Flip and reno ringleaders:
<ul>
<li>The strategies mentioned thus far assume that you are merely buying existing (or soon to be built off the plan) properties. However, flipping and renovating properties is another alternative way to drive faster growth out of residential property.</li>
<li>‘Flippers’ take run-down old properties, bought well below market value, then do a renovation to get them up to market value before selling the property on for a profit.</li>
<li>There are plenty of TV shows glamorising this approach; The Block, Property Ladder, Flip Men, and Flip This House to name but a few. Local property celebrities such as Nathan Birch and Cherie Barber have made their fame and fortune out of this approach.</li>
<li>When you take the glamour away, the reality is this: Unless you’ve got a tonne of existing industry contacts, possess some construction  know-how, and are a great project manager who can stick to budgets and timelines well, this strategy won’t work for you.</li>
<li>The more ‘toned-down’ alternative to flipping properties is renovation. This can work well as part of a buy and hold strategy for those who are a bit green in reno experience.</li>
<li>
Personally, I’ve developed basic reno skills when occupying my PPR (personal place of residence), then fostered those skills when one of my investment properties is between tenants (if you’ve got a couple of weeks between tenants, and you can take a few days of annual away from your job plus weekends too). 
</li>
</ul>
I would argue these latter two these strategies are require a much higher time investment than these first two more passive, investor personas. This is worth keeping in mind when starting out and you’re assessing not only how much money to put into property investing, but how much time.
Think about the type of investment strategy that is going to work best for you. You should then begin your due diligence and assess the feasibility of your strategy in comparison to your time and budget investment levels.
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cmcevoy-Go82SmsJA9

Cash flow kings and capital growth commandos: Which investor persona are you?

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RP Data has collated median unit values across Australia for December 2013 to bring us the 10 most affordable capital city suburbs for units.
As expected, South Australia, Tasmania and Queensland come out on top.
<ol>
<li>
<a href="/news">Elizabeth Vale</a>, South Australia. Median unit value: $143,425. 45.9% of homes in Elizabeth Vale are owner occupied, according to ABS data. Elizabeth Vale is a northern suburb of Adelaide.  
</li>
<li>
<a href="/news">Elizabeth North</a>, South Australia. Median unit value: $159, 348. Five minute's drive north of Elizabeth Vale, the suburb was established by the South Australian Housing Trust in 1955. 43.4% of homes in Elizabeth North were owner-occupied. This <a href="https://www.realestate.com.au/property-unit-sa-elizabeth+vale-114431015" target="_blank" style="line-height: 1.3em;">2 bedroom unit</a> (pictured below) in Elizabeth Vale is currently listed at $134,900. <img src="/images/2014/03/20/elizabeth%20vale.jpg" width="457" height="342" style="line-height: 1.3em;"> 
</li>
<li>
<a href="/news">Logan Central</a>, Queensland. Median unit value: $171,459. The CBD of Logan City, Logan Central showed 10% population growth between 2006 and 2011. 
</li>
<li>
<a href="/news">Woodridge</a>, Queensland. Median unit value: $182, 648. Also located in Logan, 39.4% of homes in Woodridge are owner occupied. 
</li>
<li>
<a href="/news">New Norfolk</a>, Tasmania. Median unit value: $183, 601. New Norfolk is located on Tasmania's Derwent River, with the majority of households primarily made up of couples with children. These <a href="https://www.realestate.com.au/property-unit-tas-new+norfolk-107687716" target="_blank" style="line-height: 1.3em;">new strata units</a> in New Norfolk (pictured below) are currently available from $195,000. <img src="/images/2014/03/21/image3.jpg" width="456" height="342" style="line-height: 1.3em;"> 
</li>
<li>
<a href="/news">Salisbury</a>, South Australia. Median value: $183,970. A northern suburb of Adelaide, Salisbury has a population of 7,551 according to the 2011 census. 
</li>
<li>
<a href="/news">Berriedale</a>, Tasmania. Median value: $184,217. Berriedale, in Hobart's north, is bisected by the Brooker Highway. 
</li>
<li>
<a href="/news">Beenleigh</a>, Queensland.  Median value: $186,159. Another Logan suburb, Beenleigh is located 34 kilometres south of the Brisbane CBD. This <a href="https://www.realestate.com.au/property-unit-qld-beenleigh-116355355" target="_blank" style="line-height: 1.3em;">two bedroom unit on Catherine Street</a> in Beenleigh (pictured below) is currently listed with an asking price of $149,000 plus. <img src="/images/2014/03/21/main.jpg" width="456" height="342" style="line-height: 1.3em;"> 
</li>
<li>
<a href="/news">Slacks Creek</a>, Queensland. Median value: $186,619. The fourth Logan suburb on the list, Slacks Creek had a population pf 10,418 in 2011. 
</li>
<li>
<a href="/news">Salisbury North</a>, South Australia. Median value: $188,262. A short trip up from Salisbury, sixth on the list, will bump prices up by roughly $4,000, according to RPData.
</li>
</ol>
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jrichardson-uRX5hFdKfN

The top 10 most affordable capital city suburbs for units: RP Data

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GUEST OBSERVATION
With the demise of manufacturing and without a product to sell internationally, the argument goes that non-resource states such as Victoria are fated to fall into recession in the short run, or experience a long period of declining real incomes.
For some the answer is a much needed infrastructure program targeting improvements in economic productivity. This is valuable but hardly a long-term strategy, nor one to employ the capabilities of a services economy like Victoria.
Because, while the headlines are full of manufacturing job losses, the rest of the Victorian economy has been generating services jobs. In the decade to 2013, during which there was a net loss of 50,000 manufacturing jobs, there were an additional quarter of a million jobs in health, education and professional services. Manufacturing jobs have fallen to 9% of the total while services jobs have grown to 77%.
This will be exacerbated by the closure of the motor vehicle manufacturing sector and as <a href="https://theconversation.com/what-the-departure-of-toyota-holden-and-ford-really-means-for-workers-23137" target="_blank">Sally Weller pointed out</a>, dumping so many displaced workers on the labour market in a concentrated period is going to cause much misery amongst those retrenched. Hopefully there will government programs to assist them. With a lower dollar there will undoubtedly be other parts of the manufacturing industry that will find new export opportunities.
<blockquote>
While the headlines are full of manufacturing job losses, the rest of the Victorian economy has been generating services jobs. 
</blockquote>
Right now the economy seems not to be in such bad shape. Housing, retail sales and improved business confidence are all leading to a significant recovery in job ads listed by the jobsearch website seek.com, which are up 12% since September last year in Victoria compared with the national average of 9%. If sustained by accommodating monetary and fiscal policy this will help with the manufacturing adjustment.
But what are the prospects for the rest of us who are employed in services jobs? One of the things our Institute has been looking at for the Victorian government is the global trade in services.
Exporting services was once considered an oxymoron. Services needed to be delivered personally. There was no opportunity to deliver them remotely. The characteristics of services and the technology to deliver them have completely overtaken that notion.
What a wide-ranging study of the global services trade, delivered to the Victorian government last year, found is that exporting services is big business for everyone it would seem, except Australia and by implication, Victoria. In particular the developing economies of Asia, India and China have reached a stage of development where they have an increasing demand for sophisticated services, but currently lack the capacity to meet that demand domestically. Accordingly the imports of services by countries such as India and China are growing at 15-20% per annum. That may change, but right now there is an opportunity.
The prototype Australian services export entrepreneur is of course our humble underpaid academic cracking tough and unfamiliar markets rather than the bonus-driven management consultant. It is the universities that have established beach heads in culturally unfamiliar markets through partnerships with overseas institutions that have incorporated both offshore and onshore course delivery.
Education services have become a key component of our exports and in Victoria our universities are now some of the largest export organisations in the state.
As shown in the chart, the great success of Australian services exports to developing countries such as China and India has been in education. Travel services, of which education is the largest component, comprise about 90% of Australian exports to China and India (Victorian data for services exports to specific countries are not available).
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/42327/width668/tdpsz3xp-1393216410.jpg" width="470" style="font-size: 0.8em;">
While the export of education services, which until recently has been growing very rapidly (11.7% per annum between 2001 and its peak in 2009), exports of the strategically important professional services, in which as a service economy we have built a considerable capacity such as legal, accounting, management consulting, architectural, engineering and technical services represented in the trade statistics, as “other” business services is much lower. These are incorporated in “other” business services and make almost no impact on the chart.
While imports of other business services by China and India have grown at 17% and 12% per annum respectively over the period 2004-2012, Australian exports of other business services to China grew at only 3% over the same period. Australian exports of other business services to India were too small to generate a meaningful growth rate. While the data is far from complete, it appears that the United States has been successfully taking advantage of the opportunity presented by China. It is more difficult to identify the most successful services exporters to India, but Germany and the UK are prominent.
The poor local export performance has been exacerbated by the high Australian dollar but much of the explanation resides in non-price factors. There are many impediments to exporting services to Asian destinations, not the least are ones of cultural and language differences. However necessity is a great driver of determination and no more so in the education sector where the need for compensatory revenues has driven universities to become among the largest exporters in Victoria. The same may yet be so for a whole range of professional services.
Bruce Rasmussen is director of the Centre for Strategic Economic Studies at <a href="https://www.vu.edu.au/" target="_blank">Victoria University</a>.
This piece drew on Professor Rasmussen’s presentation to CEDA’s 2014 Political and Economic Overview.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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brasmussen-7RJVHLBsVr

Where to after manufacturing? The economic future of Victoria

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You can't escape gravity
In economics, interest rates act a little like gravity.
Any change in interest rates, anywhere in the world, changes the values of financial assets.
Of course, this is blindingly obvious when you are looking at bond prices shifting, but the rule also applies to all other classes of financial assets, including equities, farmland, commercial or residential real estate or commodities.
Simply put, if interest rates are at 10% then the present value of a dollar you receive on any investment is much lower than when interest rates are at 2.50%.
Evidence?
Interest rates impact financial markets.
Famously, Buffett provided the empirical evidence for this in a speech in 2001.
<blockquote>
Successful investment is not about luck. It is about patience and discipline. 
</blockquote>
He noted that in the 17 years between December 1964 and December 1981, the US Gross National Product (GNP) increased by a whopping 373%, yet the Dow Jones index essentially went absolutely nowhere, from 874.12 to 875.00.
A major driver for this was that long-term bond rates ran from 4.20% in 1964 to a painful 13.65% by 1981.
In the next 17 years from December 1981 to December 1998, GNP in the US only increased by less than half as much at 177%, yet the Dow Jones went on a bonanza run from 875 to 9,181.43, a staggering increase.
Why? Largely because interest rates altered the landscape for financial assets by falling from 13.65% to 5.09%, and this changed the way people invested their money.
We're seeing it happen again now, with rock bottom interest rates in the US firing the Dow from below 7,000 to well above 16,000 since the financial crisis.
A decade of low rates
You didn't have to be a genius, then, to work out that very low interest rates across the globe would cause a shift in the way people invest their money.
Below I've charted the rates trend in Australia, the US, the United Kingdom, the Eurozone and Japan from 1990 until today (click chart).
<a href="https://1.bp.blogspot.com/-7myaxZd7aE4/Uy6adQeyaRI/AAAAAAAAMBc/ybl-cQ2v-Dc/s1600/IR+history.jpg"><img src="https://1.bp.blogspot.com/-7myaxZd7aE4/Uy6adQeyaRI/AAAAAAAAMBc/ybl-cQ2v-Dc/s1600/IR+history.jpg" width="460" height="182"></a>
The thing about money is that there is an awful lot of it around the world and all of it has to find a home. 
Here are the six of the main places people might choose to put their money.
<ol>
<li>
Cash/fixed interest  Lending investments range all the way from cash in your bank account, to term deposits, government bonds, inflation-linked bonds, corporate bonds, notes, debentures, or hybrid investments, subordinated debt, and a stack of other stuff.  The basically principle is that the lending of money is exchanged for interest payments.  Clearly with interest rates at historic lows, fixed interest returns are presently very low. High yields are generally only obtained from low grade or perceived riskier investments. As a result, lending investments are far less popular than they have been and this is seeing a huge shift of global capital towards other asset classes, in particular... 
</li>
<li>
Equities  When my first book Get a Financial Grip was published, I put forward the opinion that if financial freedom is your goal, then the best means of achieving it for the average investor in Australia could be (1) to get broad exposure to Sydney real estate for the long term, (2) to continue building a diversified portfolio of dividend-paying equities, and (3) keep a very healthy cash buffer.  For long-term investors, assets which bring income and the potential for capital growth tend to beat the cash/fixed interest investments. Buffett stated that only certain asset classes fulfill these criteria from his perspective: profitable businesses, equities and real estate. I noted that my suggestions were particularly so given the low interest rate environment (which would likely see funds flowing away from cash and fixed interest and into share markets).  Low interest rates have been very kind to share markets in Australia, while investors continue to derive annual benefit from tax-favoured dividends.  <img src="https://hfgapps.hubb.com/asxtools/imageChart.axd?s=xjo&amp;pi=Index&amp;ct=3&amp;tf=M2&amp;ovs=&amp;si=Code%20not%20supplied&amp;tima1=0&amp;tima2=0&amp;bi=2&amp;bima=0&amp;comt=index&amp;ds=xjo&amp;dovs=0&amp;ex=ASX&amp;ex2=ASX&amp;val=1&amp;stmp=20140323200148882" width="400" height="275" style="line-height: 1.3em;">  Source: ASX  
</li>
<li>
Real estate  Even last year people were still arguing that housing markets aren't interest rate sensitive.  Questioning the effectiveness of monetary policy tends to be a part of every economic cycle, but monetary policy generally does work and, like all financial assets, housing markets are ultimately sensitive to changes in the cost of capital. What may have wrong-footed commentators is the tendency for a lag effect, with the full impact of interest rate cuts on occasions taking up to 18 months to be seen in full.  A dramatic turnaround in the tenor of online comments from schadenfreude to snarky is a fairly reliable indicator of the property markets having moved into a new phase. The chart below shows what has happened since the most recent trough in mid-2012 which includes a very strong rebound in Sydney and Melbourne (click chart). <a href="https://1.bp.blogspot.com/-VfzBwYegFXk/Uy9rx9D7E_I/AAAAAAAAMCI/KKaAduw974w/s1600/RPD.jpg" style="line-height: 1.3em;"><img src="https://1.bp.blogspot.com/-VfzBwYegFXk/Uy9rx9D7E_I/AAAAAAAAMCI/KKaAduw974w/s1600/RPD.jpg" width="400" height="156"> </a>
</li>
<li>
Commodities The most popular for average investors are gold and silver, which don't pay yield but can represent a hedge with a portion of a portfolio.  It's been a rollercoaster ride for the precious metals over the last year or two. Who knows where to next?  <img src="https://www.kitco.com/LFgif/au3650nyb.gif" style="line-height: 1.3em;"> Buffett sees gold as a barren asset, since it pays no yield.  In 2011, he drew the analogy that the world's gold stock of 170,000 tons (about 68 square feet) had a total valuation at $9.6 trillion or $1,750/oz of all the cropland in the US, plus 16 Exxon Mobils (the world's most profitable company in 2011, generating net profits of $40 billion annually) and around $1 trillion of walking around money.  The price of gold tends to peak at times of fear and so can represent a worthwhile hedge for some investors with part of their portfolio.  Buffett's main gripe is that if you hold a bar of gold for 50 years, at the end of the process you still have a gold bar, and it still pays no income - thus, you are hoping for more speculators to push up the price in times of fear. 
</li>
<li>
Collectables Investing in collectables such as art or antique coins tends to be handy...for experts. 
</li>
<li>
Get rich quick schemes There have been a lot of these over the years, from pyramid schemes to exotic new diamond mines and emu farms.  Get rich quick schemes tend to be suitable for people who have some money and want to rid themselves of it quickly.
</li>
</ol>
Article continues on next page. Please click below. 
<hr class="system-pagebreak">
Four rules for investing
Rule one - Diversify
Don't put all your eggs in one basket - you should have your business, property, shares and cash.
It's easy enough to get diversification in the share markets through using Listed Investment Companies (LICs) or index funds, but one of the problems with real estate is that the leverage involved sees you quickly gain exposure to only a handful of correlated assets in one asset class.
For this reason, while it's not for everyone, I invest heavily in UK property too.
The beacon of truth that is the Daily Mail <a href="https://www.dailymail.co.uk/news/article-2586619/Its-housing-hysteria-Eight-buyers-chasing-home-prices-50-000-month-property-market-reaching-new-levels-insanity" target="_blank" style="line-height: 1.3em;">reported over the weekend</a> that house prices in Britain had increased by as much as £50,000 to £100,000 in only one month, particularly in London and the south-east.
While I don't believe everything I read in the Daily Mail, as an active participant in the London market, I can tell you that well-located and in demand property may easily have seen a 5-10% price uplift in recent months. 
In a separate article, <a href="https://www.dailymail.co.uk/news/article-2586692/House-prices-set-soar-30-savers-raid-pension-funds-invest-property" target="_blank" style="line-height: 1.3em;">the Mail also reported that</a> a surge of investors using their savings and retirement funds could push UK house prices up by 30%. Why? Because the UK's zero interest rate policy (ZIRP) has crucified the value of annuities.
Just like gravity, you can't get away from interest rates. 
Rule two - Investment is not about luck 
Successful investment is not about luck. It is about patience and discipline. 
Rule three - Markets are cyclical
In every cycle, people argue that this time will be different. But corrections follow booms and markets slump before booming again. Cycles continue. 
Investors need to have an awareness of whether asset prices are near their peak or nadir and plan accordingly.
Rule four - No free lunches
Very high returns tend to be achieved through risky ventures. If something sounds too good to be true, it probably is.  
This is true in bonds where high yields often come with a high risk. In equities, the opportunuity for coubling your money quickly tends to come with an equivalent chance of halving it (or worse). And high yields in residential real estate are frequently found in. 
When it comes to property, my view has always been while you may certainly start small, you ultimately need to play in a big pond. 
Just like Buffett's point on barren assets - if you invest in a cheap property in a cheap location, then at the end of the process you will still have a cheap property in a cheap location, and the returns adjusted for inflation will likely be lacklustre. 
That's why I've tended to look for properties with an 'X factor' that will be in demand for decades to come, such as properties close to the City of London, or in Australia located in Bondi, or on the Sydney harbourside. 
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pwargent-M4siyDbqQY

Six places to invest money and four rules for doing so

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Located on Lees Road, Robertson, just off of Jamberoo Mountain Road, is Temenos. The name, which means “sacred space”, is apt for this 220 acre offering with multiple uses that the listing believes an entrepreneur will snap up.
The <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/acreage-rural-robertson-nsw-2577/208107" target="_blank">multi-use site has views of the ocean, lake and escarpment</a> from Botany Bay to Shellharbour.
<img src="/images/2014/03/24/2.jpg" alt="">
It offers two irrigation licences, six natural springs on the property, a mineral water licence and a DA for a water bottling facility on the site. It also mentions that since July 2011 the government is not issuing any more water licences. The water has just 68 Total Dissolved Solids and no coliforms, bacteria, arsenic, nitrates, suphates, which is said to be a rarity.
The site also has tourism opportunities, with the start of the historic Butter Track beginning at the property’s northern end. Jamberoo was home to Australia’s first butter co-operative factory, which opened in 1884.
<img src="/images/2014/03/24/3.jpg" alt="">
The land, 750 metres above sea level, is located near six national parks and six waterfalls, and the suggestion is for eco-cabins or glamourised camping. The site comes with an American barn and hut.
The site could also be used for potato growing, truffles and as grazing land, with red basalt soil striking across the property.
<img src="/images/2014/03/24/4.jpg" alt="">
On the market with McGrath, Bowral, it is asking for expressions for interest by close 5pm 17 April, with a price guide of over $4.5 million.
<img src="/images/2014/03/24/5.jpg" alt="">
Meanwhile, <a href="https://www.realestate.com.au/property-acreage+semi+rural-nsw-robertson-115679387" target="_blank">93 acre Misty Ridge Farm is listed</a> for $2,950,000 at 170 Lees Road (pictured below). The cattle grazing, horse-appropriate property includes 11 paddocks, eight dams and sheds for farming and livestock use. Accommodation includes two houses, with six-bedrooms and two-bathrooms in total, with wood fires, solar power and air conditioning, as well as a six car space car port. There is also a 12 by six metre swimming pool.
<img src="/images/2014/03/24/robertson%20march%2024%20two.jpg" alt="">
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jduke-EHk3XBmHkn

"Sacred" 220 acre space in Jamberoo advertised for entrepreneurial buyers

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Upon buying or selling a property there is what is called a ‘settlement period’. This is the length of time between which the buyer completes payment of the contract and then takes over ownership of the home.
Up until settlement, the property is the legal responsibility of the vendor. That is, they will be required to pay rates for up to, and including, the day of settlement. After this, the buyer takes over.
As the property is not transferred until settlement day, the buyer will not yet have a mortgage over the home.
Remember, the settlement period can be used as a negotiating tool to help get a deal over the line. It is not uncommon to see disagreements over the settlement period cause a sale not to occur.
Common settlement periods Common periods for settlement are usually 30, 60 or 90 days. In New South Wales, 42 days is fairly common, while in other states and territories it tends to be 60 days.
However, this isn’t set in stone and both parties can ask for longer or shorter settlement dates. Both the vendor and the buyer must agree on the settlement period, and this can cause some issues if different motivations come into play.
Delays can happen on the vendor and the buyers end, and they may wish to change the settlement. However, this will have been written into the Contract Of Sale and neither the vendor nor the buyer is under obligation to change to suit the other after the initial agreement.
The settlement period allows time for conveyancing, organising the move and lining settlements up with other property interests.
It is unlikely the buyer will be granted access ahead of the settlement’s completion and the keys are usually given after settlement takes place.
Why a longer settlement?
A longer settlement allows the buyer to save up some more money as a buffer – such as using six months to store away as much as possible. This is particularly the case for upgraders who are dealing with a smaller mortgage currently, first home buyers who are paying low levels of rent or living at home and investors who are adding to their portfolio.
The additional funds can be saved for renovations, furnishings or anything else as required.
The vendor may prefer a longer settlement if they are still looking for a property to purchase, are waiting to get past a significant event in their own lives (such as relocating overseas) or similar. There are many reasons for this option.
A longer settlement may also benefit the buyer in that any market upturns will become instant capital gains when settlement is finally processed as, by this point, the price offer will have already been accepted. However, this may mean that the market can also drop or the vacancies in the area increase, before you have even had the opportunity to bring a tenant in.
Why a shorter settlement?
Vendors who have already found another home, and buyers who have sold theirs, may be keen to move in to the home quickly. This often encourages a shorter settlement, particularly if the vendor faces having to pay for both.
Similarly, some buyers will want to move in ahead of Christmas or a holiday period, particularly if it is a family buying, and a shorter settlement near these periods may be requested.
Shorter settlements can also suit those wanting to undertake work to the property as soon as possible, or who are expecting a positive cash flow from owning the home.
Other considerations
Regardless of the length of the settlement, damage can be done to the property during this time and it is wise to have something written into the contract regarding assessing ahead of time to ensure that the vendor rectifies any later issues.
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How to: Choose the right settlement period

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The protests that washed across major cities and towns a few days ago covered a wide variety of issues, yet underlying them all is dissatisfaction with both sides of politics and the frustration in the community that voices are going unheard.
We’ve been used to seeing similar demonstrations across the austerity-ridden countries of Europe and the USA and political clashes such as those in Russia and most recently Ukraine.
Yet since the fall out of the last economic crisis, a concentrated outcry of public anger has penetrated democratic society and it’s not limited by cause or segregated by age and status, but generated by the incredible impact of social media enabling a wide array of ordinary citizens to vent their concerns outside of sporadic government polls and the headline sensationalism of mainstream media.   
The natural limitation of government is the inability to please all.  In a democratic society, they’re elected to enact on the policies campaigned upon – asked to lead rather than follow and ensure citizens achieve a platform that assists in advancing equitable outcomes. 
Albeit, it’s a brave government that turns its head away from large vocal demonstrations, especially in an age where - through the connectedness of social media - they can be arranged at the drop of the hat, bypassing the usual bureaucratic process of writing to a local MP to highlight community disquiets, or publishing a letter in the local paper.
<blockquote>
The recent national protests were about community and social justice, of which housing forms an indivisible part.
</blockquote>
You can argue back and forth about the issues surrounding this latest public protest. Express outrage at the inconvenience incurred to the daily commute. Or even question its relevance considering we have not long elected the Coalition into power.  But when a wide makeup of individuals, from all sides of the political spectrum, takes to the streets – not on one agenda alone - but an array of disgruntlements.  It is no longer merely representative of a minority that sits on the fringes of society; it signifies a clear message of distrust - a potentially destabilising force.
Cone of silence
Tony Abbot’s government made it clear upon election, that they intended to control the flow of information available for public discussion. 
It wasn’t only displayed in the media restriction detailing daily boat arrivals, but in a large array of research undertaken by the previous administration, which has now been firmly locked into ‘archive’ status.
This would include two I’ve mentioned in recent columns – the National Housing Supply Council, and the year long study that formed the white paper into the “Asian Century”, which, outside of general criticism, remains a useful tool of reference for Australia’s future demographic makeup.
So you could say that listening to the public voice isn’t the current government’s priority – but then, neither was it for the last.
Little if anything came from those reports.  The were good on content, but lacking in <a href="/expert-insights/buying/the-real-question-the-senate-inquiry-must-ask-will-the-government-allow-land-prices-to-decrease">action</a> and much like the “2020” summit in 2008, the results can be summed up neatly by words from biographer, Nicholas Stuart in <a href="https://scribepublications.com.au/books-authors/title/rudd-s-way/" target="_blank">Rudd’s Way</a> – November 2007 – June 2010:
“His rhetoric inspired and enthused voters. And yet .... and yet .... nothing happened.” 
“Nothing happened” – because governments too often bend the knee to those with the ability to influence political leadership and public opinion, rather than acting democratically for all. 
Housing policy alone aptly demonstrates this. 
<ul>
<li>The tax and transfer system values <a href="https://grattan.edu.au/publications/reports/post/renovating-housing-policy/" target="_blank">owners over renters</a>;</li>
<li>Encourages and rewards those who use the land as a speculative investment for personal gain;</li>
<li>Advantages giant corporations over independent businesses;</li>
<li>Widens the ‘<a href="/expert-insights/buying/the-widening-inequality-and-economic-growth-gap-what-does-this-mean-for-housing">wealth</a>’ gap between rich and poor;</li>
<li>And hampers timely development of affordable housing; (to name only a few).</li>
</ul>
When concerns are raised, our leaders spend a few wasted millions on comprehensive enquiries to ask ‘why?’- like some clueless high school student.
“What do we want?”
These protests, whilst not directly about land prices, were about community and social justice, of which housing forms an indivisible part.
The list includes education – and as I’ve pointed out previously, high land prices directly contribute to what’s assessed to be the most <a href="/expert-insights/buying/the-tale-of-one-auction-what-it-really-says-about-australias-welfare-state">segregated schooling</a> system out of all members of the OECD countries. 
Some of the highest land values are found in the best government funded school catchment bands, and as an auctioneer proclaimed during his pre-amble in the McKinnon High School zone last week:
“There is no ceiling for house prices in this area!”  
A bullish spruik if ever you heard one - but not far from truth.  
Record prices continue to be regularly broken, affluent buyers continue to pay a premium.  Yet the price is effectively ‘free’, because as the zone’s future vendor’s ‘speculate’ – if they hold onto the family home long enough - they are likely to receive a windfall in unearned capital gains. 
Social justice? Hardly.
Unwonted robbery?  
The community produces the gains through the tax-funded facilities. Whilst market forces drive prices higher, the unearned profit does not flow back to maintaining or upgrading those services – which is where it arguably belongs. 
Instead it is privately capitalize, soaked into what is an irreplaceable, illiquid and unproductive asset, thereby giving free leave for mounting property prices to continue, which, under the current system, grants a ‘tax free’ unearned reward to the owner occupier upon sale.
The sell-off of public services was also highlighted.  This too can also be associated with high land values, which have dictated what is assessed to be the more profitable offloading of the Millers Point public housing estate, rather than retaining its use for long standing residents, which, by definition, drives social polarization and housing inequality. 
It seems in the land of a ‘fair go,’ only the affluent are allowed to advantage from a Sydney Harbor view.
Are they listening?
Yet the indicators government uses to measure their performance whilst in power are meaningless to protesters, and in many respects, a 21st century economy.
They are no measure of happiness, or signal the worrying rise of mental illnesses such as depression.
Only by hearing community voices, gives a clue to that.
GDP – the total value of all products and services bought and sold, a basic measure of money changing hands, does not distinguish between;
<ul>
<li>Productive or destructive activities;</li>
<li>Show who’s getting the lion’s share of wage increases; Or</li>
<li>Assess where those increases are being invested (Which considering housing (land) is currently estimated to be 300% of Australia’s GDP, gives some indication).</li>
</ul>
Equally it gives no clue to the foundations of societal health – such as environmental concerns, access to education, or wealth inequality. 
Yet these are the issues community wants to address – because these are the barometers that directly impact our quality of living.
Whilst GDP is an excellent measure of the amount of arguably unneeded ‘stuff’ changing hands, it’s also not up to the task of adequately measuring intellectual property, innovation and invention for example – such as the creation of a free app. 
It may be concerned with the health of the economy, but as for the well-being of our 21st century community – it’s simply not up to the task.
Equally, unemployment figures are based on theoretical estimates, formulated by way of an extensive ABS survey, which aims to correlate the percentage of the labor force not actively employed, underemployed, or ‘participating.’ 
They are rolled out monthly, with the widely held ‘text book’ assumption (known as <a href="https://en.wikipedia.org/wiki/NAIRU" target="_blank">NAIRU</a>) that, regardless of how many actually want to work, should government pro actively attempt to lower the rate of unemployment below the desired level of “full employment” - which in Australia, is assessed to be and ‘unemployment rate’ of roughly 5% - it would unwontedly induce inflation and destroy price stability. 
A purported ‘fact’ that offers no comfort to those living on the poverty line of job seekers allowance.
This is also largely due to our flawed system of taxation – which places a levy on productivity (such as income and payroll taxes), unwontedly impeding the supply of goods and services, which in turn raises prices, feeding inflation and increasing the unemployment rate arguably required to lower wages sufficiently to stabilize inflation.
If we instead moved toward a system – and one, which was, at least in part, advocated by the Henry Tax review, and not withstanding, numerous other submissions from community advocates such as <a href="https://www.prosper.org.au/2014/02/27/the-senate-housing-affordability-inquiry-prospers-submission/" target="_blank">Prosper Australia</a>, or the <a href="https://blog.lvrg.org.au/" target="_blank">Land Values Research Group</a> to various senate enquiries over the years, and taxed the unearned gains from land rather than the earned gains from productivity.
It would (as has been proven <a href="/expert-insights/buying/is-a-land-value-tax-the-solution-to-our-housing-affordability-problem">historically</a>) influence:
<ul>
<li>A reduction of social polarization – and therefore inequality;</li>
<li>Remove the needed ‘sell off’ of public services due to high land values;</li>
<li>Boost productive investment, assisting the job market and advancing competitiveness for small business;</li>
<li>Reduce the speculative element that drives land prices ever higher;</li>
<li>Provide a steady base of revenue to invest in public services as well as affordable housing, and;</li>
<li>Ensure infrastructure is built for need – full utilization of land encouraged – and land banking reduced.</li>
</ul>
Productivity paradox
In light of all the above - it is remarkable that back in the 60s and 70s, discussion in the university lecture halls was centred on the ‘productivity paradox’ - correctly assuming it only a matter of time before all mankind’s basic needs could be largely fulfilled by robots.
Economists were deliberating what we’d do with all our leisure time when a full working week was no longer necessary!   
A stark change from the current mode of discussion, which is consumed with how long past the age of 65, individuals will need to work in order to retire mortgage free, with enough left in the pot to afford the basic necessities of life, which in most cases, is inadequately funded by superannuation alone. 
If it were possible to send the dog to work, we’d have already done so.
Community
Indeed our economy is not founded on the pillars of community and social justice, of which the protests are so concerned.
As admirable as numerous recommendations made to various senate inquiries into issues of inequality, affordability, finance, and environmental concerns have been, nothing has changed, because we have a lopsided economy, built on a $5.02 trillion housing market ($4.1 trillion of which is land) – and on this, and many other matters alone, a new generation of enlightened folk have clearly had enough.
High land values have played an important part in all the issues of social inequality highlighted above, of which I’ve provided ample evidence in previous columns. 
Our major cities now exhibit what’s considered to be a very ‘non-Australian’ style ‘English’ cultural class divide - as polarization between the asset rich and income poor expands.
The roll on effect impacts the environment, employment, education, and mental illness - as residents are forced into areas lacking in essential amenities – once again due to a flawed system of finance and housing policy.
To conclude…
And so, when you start to see what is so beautifully highlighted using the <a href="https://www.natsem.canberra.edu.au/publications/?publication=the-great-australian-dream-just-a-dream" target="_blank">maps below</a>, which show where the affordable property was located in 2001 for low and middle income buyers, compared to 2011 in our major capitals, which hold the lion’s share of population. 
(The yellow patches being affordable, and blue patches unaffordable.)  
 <img src="/images/2014/03/24/cashmore%20march%2024%20one.jpg" alt="">
<img src="/images/2014/03/24/cashmore%20march%2024%20two.png" alt="">
<img src="/images/2014/03/24/cashmore%20march%2024%20three.png" alt="">
And you read quotes from a long standing resident advocates, at the soon to be forced out Millers Point public housing facility, who rightly <a href="https://www.theguardian.com/world/2014/mar/20/millers-point-public-housing-residents-campaign-nsw-sell-off?CMP=soc_568">question</a>:
“The government says their core business is not housing. But surely their core business must be communities.”
Then you start to get a grip on the central issues this protests represents.
 <img src="/images/2014/03/24/cashmore%20march%2024%20two.jpg" alt="">
And I would suggest - (as expressed on their <a href="https://marchinmarch.com.au/">website</a>) – it really is “only the beginning”.
Follow Catherine on <a href="https://twitter.com/CCASHMORE_BUYER" target="_blank">Twitter</a> or via her <a href="https://catherinecashmore.wordpress.com/" style="line-height: 1.3em;">Blog</a>.
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catherinecashmore-6LXia3pPQj

Power (and housing) to the people

<html><body>
One of the things that tenants look for in a quality rental home is the level of safety and security it provides. People with young children, the elderly and women, in particular, are especially safety conscious and this is understandable.
Some of the safety measures you might expect in a rental property are mandatory while others are not necessarily. It comes down to definitions and practicalities.
One of the mandatory safety measures is smoke alarms.
These are required in all dwellings and must be hard-wired to the mains electrical system. They cannot be battery operated unless the installation of a hard-wired system isn’t possible.
<blockquote>
The reality is that most owners want to ensure that their properties have good safety and security not simply to comply with the law, but to attract and maintain good tenants.
</blockquote>
Where that occurs, lithium battery operated smoke alarms are acceptable. The number of required smoke alarms is determined by the positioning of bedrooms and how many stories the dwelling is. If in doubt about any of this, raise the issue with your property manager.
In July 2015 another mandatory measure will be deadbolts on all external, ground floor doors. Deadbolts are generally those which are key-locked from the outside but latch-locked from the inside. This is the preferred model of the Department of Commerce because in the case of fire or smoke inside the house they are easier to open in an emergency or in darkness.
Until July next year owners are permitted to use other forms of appropriate door locks.
Another mandatory form of security starting mid-next year is porch lights that must be present at the main entry door and operational from inside the dwelling.
When it comes to windows the law provides that they must have reasonable locks or latches that cannot be opened from the outside. This is not prescriptive but comes down to common sense.
If there is a spa or swimming pool in the rental then safety barriers are very important. The type of barrier will depend on when the pool or spa first received local council approval.
Where a safety barrier is considered to not be operating properly the property manager should be contacted immediately. If an owner does not respond to any concerns raised by the tenants in relation to pool and spa safety, tenants should contact their local government authority right away.
The reality is that most owners want to ensure that their properties have good safety and security not simply to comply with the law, but to attract and maintain good tenants.
It’s important therefore that prospective tenants find a dwelling that suits their needs before signing the lease.
Safety and security is in the best interests of both owners and tenants, so existing tenants who feel their current security measures are inadequate may find that their owner is agreeable to modifications if approached in the right manner.
This article was originally published on <a href="https://reiwa.com.au/" target="_blank" title="reiwa.com">reiwa.com</a>.
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