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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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You can be assured that as we enter a new year we are inundated with real estate predictions. 2014 will be no different so let’s try and make it easier and more understandable for you. Since September 2000, we have been writing our weekly post, Virtual Realty News, which provides an in-depth assessment of what the markets are doing. Despite the banter and hoo-ha that Sydney markets are set to boom in 2014, the most consistent statistic that we have observed over the last six years is that property sales numbers are in a rapid decline.
Here is what we consider the vital property performance indicators:
1. Cash rate
At the beginning of 2013 Macquarie Bank predicted that the cash rate in 2013 would drop to 2.00% whilst most thought it would go up. The Reserve Bank of Australia (RBA) cash rate today sits at 2.50% and this is where we expect it to sit for 2014 – we expect to see it start rising again in 2015.
2. Australian dollar
At the time of writing this report it was sitting at 0.87 AU$/US$ which is the weakest point since July 2010. Last week the Australian Bureau of Statistics showed that the unemployment rate remained at 5.8% in December. The world’s biggest money manager BlackRock sees Australia’s dollar falling 10% as a result of disappointing economic growth reporting in 2014 which would then see the RBA cut its cash rate to 2.00%. There would be a number of expats hoping this to be the case as they have been sitting waiting for the Australian dollar to start declining.
3. Inflation
Overall the inflation rate has been well controlled by the RBA over the past few years with the RBA settings from 2.00% to 3.00%. In the 12 months to December, prices rose 2.7%, compared to 2.4% in November. This economic data is confirming that Australia’s record – low 2.5% cash rate is stimulating consumer spending. Across Australia spending has now risen over the past 16 consecutive months.
4. Supply/demand
This is the data I rely on the most as Sydney is comprised of 637 suburbs and growing and reporting generally throws all the suburbs into the one analysis. In 2012 Mosman houses recorded on 23 occasions more than 100 houses on the market over the one particular week – in 2013 it only managed to break 100 on four occasions so we are witnessing significant reductions in stock levels. In 2012 the greatest number of houses on the market in one week was 168, in 2013 it peaked at 144. To see on how many occasions the number of houses on the market breaks 100 will be fascinating given the markets are off to their weakest start ever in terms of volume.
<img height="237" width="470" src="https://www.rwm.com.au/files/2014/01/15-01-2014-1-18-21-PM.jpg" alt="15-01-2014 1-18-21 PM"><img height="296" width="470" src="https://www.rwm.com.au/files/2014/01/14-01-2014-2-56-15-PM.jpg" alt="14-01-2014 2-56-15 PM">
In 2013 the highest house sale was Altona – Wunulla Road, Point Piper for $52 million. For the first time in years the only property to sell outside the eastern suburbs of Sydney top 20 sales was Julian Street, Mosman which was sold by Richardson &amp; Wrench Mosman &amp; Neutral Bay (RWM) for $13.9 million. From the Sydney top 20 sales in 2013 just four went to Chinese buyers so don’t believe everything you read in the newspapers.
We don’t see any great changes in 2014 to the 2013 real estate markets given that they are now more than ever before consumer sensitive. Like everything markets are controlled by supply v demand mechanisms and if anything we believe again we will see fewer properties on the market in 2014.
Just before Australia Day last year there were 61 houses on the market, the year before 83 and this week just 47. Mosman apartments have 40 on the market this week, last year 68 and the year before 129. It’s quite extraordinary that the combined number of houses and apartments on the market in Mosman is just 87 – which clearly identifies a vendors market.
It’s going to be very interesting to see what happens to the stock volumes this week as the markets historically move into what we call the peak selling period.
Robert Simeon is a director of <a target="_blank" rel="nofollow" href="https://www.rwm.com.au/" title="RWM" style="font-size: 14px;">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a target="_blank" rel="nofollow" href="https://www.rwm.com.au/news/" title="Virtual Realty News">Virtual Realty News</a> since 2000. 
The RWM real estate model has sold in excess of $1 billion in database sales globally.
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robertsimeon-hRNTwJyXkQ

The four key property performance indicators for 2014

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There were 4430 bookstores in Australia during the 2004-05 financial year. Now, there are just 2921 bookstores owned by 2700 companies, and industry forecaster IBISWorld isn’t optimistic for those that remain.
According to a new report by IBISWorld analyst Claudia Burgio-Ficca, industry revenue will decline 8.1% during the coming financial year, with annual revenue declines moderating after that. By 2018-19, the forecaster believes annual revenue falls will stabilise to just 3.8% a year.
It’s been a perfect storm for booksellers over the past five years, Burgio-Ficca says. On the one hand, retail generally has had a challenging time, battling low consumer sentiment and lacklustre spending.
The industry is also facing structural change, with a rising breed of online-only booksellers operating with leaner business models, broader catalogues and lower prices forcing the industry to cut costs and become far more competitive.
Discount booksellers haven’t helped either. IBISWorld notes that discount department stores have increasingly been making bulk purchases of books, and then offering them at bargain-basement prices to customers during key selling periods such as Christmas. This limits the ability of bookstores to profit from the flurry of gift-buying at the time.
“Bookstores have fought to stay afloat,” Burgio-Ficca says. “A host of issues have plagued the industry.
“As a result, profitability has trended downwards.”
Despite the presence of big-name brands like Dymocks and Collins Booksellers, bookselling is a small business industry. The top four players together hold under 40% of the market share, and barriers to entry are relatively low.
But it’s not all doom and gloom. Despite catering to a far smaller share of the market, speciality bookstores have performed better.
“Niche bookstores such as those specialising in languages are projected to remain in demand, and face relatively little external competition,” Claudia Burgio-Ficca says.
Discount bookstore chain allbooks4less.com.au was <a target="_blank" href="https://www.smartcompany.com.au/growth/economy/32568-discount-book-chain-turning-over-21-million-goes-under-after-directors-death">placed into administration in July</a>. As the figures show, it’s <a target="_blank" href="https://www.smartcompany.com.au/growth/economy/28192-collapse-of-iconic-adelaide-bookstore-mary-martin-highlights-ongoing-pain-in-book-market">far from the only bookstore</a> to face such a fate.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
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mrobin-TVRYiru7si

Another 300 bookstores set to go, but further chapters remain in saga: IBISWorld

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The bayside glamour couple, Carlton footballer Chris Judd and his wife, weather presenter Rebecca, have leased their four-floor Prahran townhouse abode given last year's sale marketing campaign didn't secure its desired $1.7 million buyer interest.
Their <a href="https://www.propertyobserver.com.au/news/second-baby-prospect-prompts-chris-judd-and-wife-rebecca-to-list-their-prahran-warehouse/2013101765771" target="_blank">second baby prompted the listing back in October</a>.
It's the warehouse conversion undertaken in 2006 by Michelle Forsyth of Ethereal Design with skylit staircase and a dumb waiter from top to bottom.
The townhouse, which overlooks park and rooftops, all within walking distance of Greville and Chapel streets, was up for $1,999 a week rental. The asking rental would reflect a gross 6% yield based on its unmet asking price. RP Data puts the <a href="/news">Prahran</a> rental typically at around 3.5% for houses and 3.7% for apartments, reflecting $575 weekly rental and $369 weekly rental for apartments.. 
Rebecca had Sara and Amy Chamberlain, from The Real Estate Stylist undertake the sales marketing campaign styling, but the property was leased unfurnished through came with optional extras and appliances.
The star midfielder bought it for $1.66 million in late 2007 after he moved from Perth on signing with Carlton. It had been listed with $1.95 million hopes by Michelle Forsyth, and Christian Janko, in late 2006.
Offers inexcess of $1.7 million were being sought last November through Paul Castran of Castran Gilbert. Its rental was through Castran Gilbert leasing agents Gabby Mercuri and Sarah Holder.
Paul Castran says the laneway is almost wall to wall stylish town residences.
"It delivers four levels of uber-chic contemporary living with a generous offering of space, light and luxury touches throughout," the Castran marketing says. It features a full-floor, dedicated entertaining precinct comprising an open plan living and dining zone with wood fireplace, Smeg kitchen and private terrace with cafe-style ceiling heating and BBQ.
Accommodation wise, the property provides a lavish top floor master suite complete with a gas fireplace, indulgent double vanity en suite, expansive robes and balcony with park views; as well as three additional bedrooms with robes and en suites. One bathroom has a freestanding bath that looks like a giant half eggshell. Its other features include a secure double garage, laundry, split-system air conditioning, slab heating, polished timber floors, monitored alarm, CCTV security and intercom.
There was a video <a href="https://www.propertyobserver.com.au/https://vimeo.com/82085186" target="_blank">starring Rebecca produced by Goldeneye Media</a> on the initial listing.
It was 2010 when Judd and his then model fiancee Rebecca Twigley bought their 671 square metre Brighton property for $2.125 million through Kay and Burton agent Justin Follett.
<a href="mailto:news@propertyobserver.com.au" target="_blank"> </a>
 
 
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jchancellor-FAypfDUnLy

Chris and Rebecca Judd lease redundant Prahran home as $1,999 a week rental

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From inflationary figures, a Prahran office Block, and prestige listings; here are the most important property investment numbers of the week:
<img src="/images/stories/flagtitletat.jpg" width="25" height="34" alt="flagtitletat" style="font-size: 14px; margin: 5px; float: left;">
<a href="/news"><img width="400" height="59" alt="0.8" src="/images/stories/2014/01/23/0.8.jpg"></a>
The 0.8% quarterly rise in the consumer price index surprised the nation’s markets on the upside – most had been factoring in a 0.5% rise.
It puts <a target="_blank" href="/news">a stop to speculation that the RBA could cut interest rates</a> – already at record lows – to stimulate the economy and ease its transition away from the mining boom.
 
<a target="_blank" href="/news"><img alt="flagtitletat" height="34" width="25" src="/images/stories/flagtitletat.jpg" style="font-size: 14px; margin: 5px; float: left;"><img width="400" height="59" alt="10.75-m" src="/images/stories/2014/01/23/10.75-m.jpg"></a>
<a target="_blank" href="/news">The Block is coming to Prahran</a>. The production company of the hit Channel 9 show, Watercress, has spent $8.25 million on the 1980s office building (pictured below) with $2.5 million Brenchley Architects infill works scheduled.
<img width="470" height="286" src="/images/stories/2014/01/23/prahran_jan_23_one.jpg" alt="prahran_jan_23_one">
 
<a target="_blank" href="/news"><img alt="flagtitletat" height="34" width="25" src="/images/stories/flagtitletat.jpg" style="font-size: 14px; margin: 5px; float: left;"><img width="400" height="59" alt="5.44" src="/images/stories/2014/01/23/5.44.jpg"></a>
The <a target="_blank" href="/news">National Australia Bank has lowered its four-year fixed home loan</a> package rate by 0.2% to the lowest point since September 1993, as the battle between the banks intensifies. The bank so cut its three-year fixed home loan by 0.05% to 5.14%.    
 
<a target="_blank" href="https://www.propertyobserver.com.au/hotspots/regional-hotspot-toowoomba-shows-great-investor-potential/2014012267307?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=upperright"><img alt="flagtitletat" height="34" width="25" src="/images/stories/flagtitletat.jpg" style="font-size: 14px; margin: 5px; float: left;"><img width="400" height="59" alt="1.5" src="/images/stories/2014/01/23/1.5.jpg"></a>
Toowoomba’s unemployment rate is about 1.5 percentage points below the national average, one factor which <a target="_blank" href="https://www.propertyobserver.com.au/hotspots/regional-hotspot-toowoomba-shows-great-investor-potential/2014012267307?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=upperright">Terry Ryder believes shows its great potential for investors</a>.
 
<a target="_blank" href="/news"><img alt="flagtitletat" height="34" width="25" src="/images/stories/flagtitletat.jpg" style="font-size: 14px; margin: 5px; float: left;"><img width="400" height="59" src="/images/stories/2014/01/23/1.7-MILLION.jpg" alt="1.7-MILLION"></a>
Situated in the affluent suburb of <a href="/news">Sandy Bay</a>, this chateau inspired house (pictured below) was the <a href="/news">most expensive sale of the week at .7 million</a>, according to RP Data.
{yoogallery src=[images/stories/2014/01/23/sand]}
 
 
<a target="_blank" href="https://www.propertyobserver.com.au/finance/proportion-of-first-home-buyer-loans-down-finders/2014011967232?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news&amp;utm_source=Property+Observer+List&amp;utm_campaign=affb0303e2-June_21_1_29_2013&amp;utm_medium=email&amp;utm_term=0_a523fbfccb-affb0303e2-245386345"><img alt="flagtitletat" height="34" width="25" src="/images/stories/flagtitletat.jpg" style="font-size: 14px; margin: 5px; float: left;"><img width="400" height="59" alt="12.5" src="/images/stories/2014/01/23/12.5.jpg"></a>
According to the latest report released by financial comparison website finder.com.au, the <a target="_blank" href="https://www.propertyobserver.com.au/finance/proportion-of-first-home-buyer-loans-down-finders/2014011967232?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news&amp;utm_source=Property+Observer+List&amp;utm_campaign=affb0303e2-June_21_1_29_2013&amp;utm_medium=email&amp;utm_term=0_a523fbfccb-affb0303e2-245386345">proportion of first home buyer loans are at an all-time low</a>.
Drawing on data from the ABS, the report notes that first home buyer loans now make up just 12.5% of all loans financed in November 2013, down 3% from the same month in 2012. 
 
 
<a target="_blank" href="https://www.propertyobserver.com.au/western-australia/tenant-fined-%241000-for-ruining-rental-with-pet-faeces-and-urine-midland-magistrates-court/2014012167296?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news&amp;utm_source=Property+Observer+List&amp;utm_campaign=7db808fac5-June_21_1_29_2013&amp;utm_medium=email&amp;utm_term=0_a523fbfccb-7db808fac5-245386345"><img alt="flagtitletat" height="34" width="25" src="/images/stories/flagtitletat.jpg" style="font-size: 14px; margin: 5px; float: left;"><img width="400" height="59" alt="1000" src="/images/stories/2014/01/23/1000.jpg"></a>
A tenant in Western Australia has been <a href="https://www.propertyobserver.com.au/western-australia/tenant-fined-%241000-for-ruining-rental-with-pet-faeces-and-urine-midland-magistrates-court/2014012167296?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news&amp;utm_source=Property+Observer+List&amp;utm_campaign=7db808fac5-June_21_1_29_2013&amp;utm_medium=email&amp;utm_term=0_a523fbfccb-7db808fac5-245386345" target="_self">fined $1,000 after leaving a rental property in disarray</a>. Apparently, the carpets were wrecked by pet faeces and urine and no forwarding address was left.
 
<a target="_blank" href="https://www.propertyobserver.com.au/trophy-homes/point-piper-harbourfront-bound-angela-fleming-lists-bellevue-hill-mansion/2014012167239?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=upperright&amp;utm_source=Property+Observer+List&amp;utm_campaign=7db808fac5-June_21_1_29_2013&amp;utm_medium=email&amp;utm_term=0_a523fbfccb-7db808fac5-245386345"><img alt="flagtitletat" height="34" width="25" src="/images/stories/flagtitletat.jpg" style="font-size: 14px; margin: 5px; float: left;"><img width="400" height="59" alt="30-million" src="/images/stories/2014/01/23/30-million.jpg"></a>
<a href="https://www.propertyobserver.com.au/trophy-homes/point-piper-harbourfront-bound-angela-fleming-lists-bellevue-hill-mansion/2014012167239?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=upperright&amp;utm_source=Property+Observer+List&amp;utm_campaign=7db808fac5-June_21_1_29_2013&amp;utm_medium=email&amp;utm_term=0_a523fbfccb-7db808fac5-245386345" target="_self">Sydney's prestige eastern suburbs listings are well underway</a>. For instance, a $30 million plus offering on <a target="_blank" href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-vaucluse-nsw-2030/204612" rel="nofollow" style="font-size: 14px;">Coolong Road, Vaucluse</a> (pictured below) with tennis court, slipway and marina berth.
{yoogallery src=[images/stories/2014/01/22/vau]}
jrobinson@propertyobserver.com.au
 
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jake-cSmGT7VXVf

The most important property investment numbers of the week

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The two fundamental characteristics of property investment are rental income paid by tenants and the value of land and buildings which form the income and capital return components of property returns. Return characteristics of residential property differ significantly from commercial property.  
Chart one (below) shows the income returns or yield of residential property and retail, office and industrial property sectors for periods to September 30, 2013.  
Chart one – Income returns – Periods to September 30, 2013
 <img src="/images/stories/2014/01/23/easton_jan_23_one.png" width="470" height="283" alt="easton_jan_23_one">
Source: REIA, IPD/PCA, Atchison Consultants  
Income returns are calculated by dividing the net annual rental income by the value of the property. As shown in chart one, commercial property income returns over medium to very long-term periods are reasonably consistent across each sector. The income return for residential property at around 3%-4% per annum is significantly lower than that of the commercial property sectors at around 7%-9%.  
Owners of commercial property receive substantial rental income as the location of the businesses that are its tenants is vital to the profitability of those businesses. Rents for commercial property are dictated by demand, with premium locations providing premium rents. Retailers require the right demographics and access to foot traffic; industrial tenants require access to suitable infrastructure such as freeways and rail and office tenants require the proximity to key markets, clients and qualified staff.  
The attractiveness of residential or commercial property investment is heavily reliant on the ability to attract and retain tenants. Appraised value of commercial property is directly related to the quality of the leasing schedule and the current or expected level of vacancies.  
Chart two (below) shows compound annual capital returns over five, 10 and 20 year periods to September 30, 2013 for residential and commercial property sectors.  
Chart two – Capital returns - Periods to September 30, 2013
 <img src="/images/stories/2014/01/23/easton_jan_23_two.png" width="470" height="283" alt="easton_jan_23_two">
Source: REIA, IPD/PCA, Atchison Consultants  
Residential property has outperformed commercial property sectors in terms of price growth over all measured periods, particularly the 20 year period. A range of factors has contributed to this significant growth, including government incentives such as the first home owners grant, population growth and booms in industries such as mining. The absence of tax on capital gains for owner-occupiers and the tax deductions for investors through negative gearing are also significant contributors to residential property capital gains.  
Residential property is generally considered as a capital return investment, rather than an income producing investment. Commercial property investment returns comprise relatively high income returns and is less reliant on capital gains. Capital gains for commercial property tend to be around inflation levels (when positive), reflecting leases that are indexed to inflation or a fixed rate in years between market rental reviews. Capital gains for residential property tend to reflect demand drivers, such as population growth and affordability, and supply drivers such as the availability of finance and the feasibility of development projects.
Investment in residential property is limited to direct purchase of single assets, whereas commercial property can be accessed through purchase of an asset or indirectly through property syndicates, unlisted property funds or listed AREITs.  
Paul Easton is a senior analyst at <a href="https://atchison.com.au/" target="_blank">Atchison Consultants</a>.
 
<hr>
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<a href="https://www.propertyobserver.com.au/residential/wednesday-may-8-flicker-3-commercial-property-and-shares-offers-better-returns-than-residential-property-yields-amps-shane-oliver/2013050861127" target="_blank"></a><a href="https://www.propertyobserver.com.au/tax/smsf-gearing-versus-personal-gearing-in-residential-and-commercial-property/2012030753629" target="_blank">SMSF gearing versus personal gearing in residential and commercial property</a> by Michael Laurence
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<hr>
 
 
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peaston-2dTB6MdgmG

Residential v commercial property: The different return characteristics

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A seminar featuring residential properties in Phuket will take place in Sydney this week. The Phuket Property Show at the Four Points Sheraton hotel will showcase real estate and investment opportunities in the Thai resort island.
The seminar will be hosted by Siam Real Estate, assisted by the Ray White Group. According to Siam Real Estate CEO Richard Lusted, a variety of residential properties would be highlighted, including townhouses and villas in gated communities.
“Some of the attractions of buying property in Phuket include investment returns of between 15-25%, historically low interest rates, stable market prices and no property taxes. There’s no capital gains tax after five years for private investors and low taxes,” said Lusted.
He noted the current trend of urbanisation in Phuket and the ongoing construction of new hotels, apartments and houses on the island.
Property will be available to purchase at the Sydney seminar, with special accommodation deals available for buyers.
The Phuket Property Show will be held from 10am-7.30pm in Sydney on January 24 and January 25.
<a target="_blank" href="mailto:jrichardson@propertyobserver.com.au">jrichardson@propertyobserver.com.au</a>
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jrichardson-uRX5hFdKfN

Thai properties showcased in Sydney

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In an article last year, I flagged <a target="_blank" href="https://www.propertyobserver.com.au/office/activity-based-wokplace-formats-translates-to-bottom-line-savings-but-require-the-space-to-implement-chris-lang/2013081364152">the growing trend of "hot desking"</a> among mid- to larger-business services firms employing our knowledge workers, around Australia.
This trend (since the early 1990s) has been driven by the inevitable cost savings — resulting from a reduction in their office space requirements.
And if this trend were to continue it would clearly have the potential to adversely affect the overall demand for office space going forward.
However, a recent article challenged the underlying wisdom of this penny-pinching fad.
First, the logic
The current rationale contends that by replacing individual offices with workstations (even removing the dividers), this significantly reduces the space requirement per employee. At the same time, the aim is to improve staff collaboration.
And now many of these firms are simply issuing their staff with a mobile phone, a laptop and a locker, adopting a "virtual office" and "clean-desk" policy — where you (as an employee) have no fixed location within the office from one day to the next.
What does the latest research reveal?
Diane Hoskins (of big US office design firm, Gensler) has researched 90,000 people, from 155 companies, across 10 industries.
As a result, her team found that Knowledge Work comprised four separate functions:
<ul>
<li>
Focus (individual work involving concentration and attention to a particular task);
</li>
<li>
Collaboration (working with others to achieve a goal);
</li>
<li>
Learning (acquiring knowledge or skill through education or experience); and
</li>
<li>
Socialising (interactions to create trust, bonds and values, collective identity and productive relationships).
</li>
</ul>
What they discovered was that collaboration was not the most significant factor in workplace effectiveness. Rather, it was individual work focus!
Furthermore, they found that these new-style office layouts actually make focus virtually impossible.
Instead, workers experienced constant "interruptions, auditory and visual distractions (which) all combine to make focus the modern office's most compromised work mode."
Bottom line: This is great news for commercial property investors.
While current office design seeks to improve collaboration, it actually sacrifices individual focus. Thereby, reducing worker efficiency — resulting in far lower productivity overall.
Apparently, the Gensler research also found that workers who can focus effectively are able to do the following things more effectively in the workplace:
<ul>
<li>
57% more able to collaborate;
</li>
<li>
88% more able to learn; and
</li>
<li>
42% more able to socialise.
</li>
</ul>
As the penny starts to drop, more and more firms will begin reverting back to a more conventional (larger) office layout.
And therefore, you will see demand for office space accelerate over the next three to four years — with a resultant increase in both rentals and capital values.

<hr>
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a href="https://property-edge.com.au/" rel="nofollow" target="_blank">Property Edge Australia</a> to help you get the most out of your commercial property investing.
This article originally appeared on <a href="https://his-best.biz/" target="_blank" rel="nofollow">Commercial Property Made Easy</a>.
 
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chrislang-EQKojcgJPV

The penny has dropped: Failing hot desking fad will benefit commercial investors

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The Property Observer team spends more time than most looking at real estate listings, and finding either bizarre rentals (such as this latest one, sent to us on Twitter, that has <a href="https://www.propertyobserver.com.au/new-south-wales/a-toilet-in-the-kitchen-a-strange-unit-layout/2014012067267?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=newsplus" target="_blank">a toilet in the kitchen</a>, or this one that was <a href="https://www.propertyobserver.com.au/queensland/advertising-your-property-to-drug-dealers-this-owner-is-doing-just-that/2013111266323" target="_blank">advertised to South Australian drug dealers</a>) or disturbing photographs.
We've collected the following photographs from real estate listings into an ongoing collection of strange Australian real estate marketing attempts. Send your weird and wonderful photographs to <a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a> and we will add them to the collection below.
Here are some of our current highlights:
The 'interesting' lighting effects
<img width="470" height="353" src="/images/stories/2014/01/21/2.jpg" alt="2">
<img width="470" height="353" src="/images/stories/2014/01/21/5.jpg" alt="5">
Apocalypse now?
<img width="470" height="353" src="/images/stories/2014/01/21/bardon_dec_12_sky_end_of_the_world.jpg" alt="bardon_dec_12_sky_end_of_the_world">
Mirror, mirror
<img width="470" height="353" src="/images/stories/2014/01/21/mirror_mirror_jan_21_one.jpg" alt="mirror_mirror_jan_21_one">
Do you come with the house?
<img width="470" height="353" src="/images/stories/2014/01/21/model_dec_3_one_901_480_Riversdale_Road_Hawthorn_East_Vic_3123.jpg" alt="model_dec_3_one_901_480_Riversdale_Road_Hawthorn_East_Vic_3123">
<img width="470" height="353" src="/images/stories/2014/01/21/model_dec_3_two_901_480_Riversdale_Road_Hawthorn_East_Vic_3123.jpg" alt="model_dec_3_two_901_480_Riversdale_Road_Hawthorn_East_Vic_3123">
<img width="470" height="353" alt="image21" src="/images/stories/2013/11/21/image21.jpg">
<img width="470" height="353" src="/images/stories/2014/01/21/wtasons_bay_dec_11_funny.jpg" alt="wtasons_bay_dec_11_funny">
Your move
<img width="470" height="353" src="/images/stories/2013/11/21/unique_nov_21_seven.jpg" alt="unique_nov_21_seven">
You might also be interested in our other articles about <a href="?option=com_googlesearch_cse&amp;q=photography" target="_blank">real estate photography, and some of the creative ways that properties are marketed</a>.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
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po-LsXgBTHBmX

The strangest real estate photographs: Add yours to the collection

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Hi Margaret,
We are looking to buy an investment property in the next couple of months, preferably a house on the Gold Coast, because we've lived there before and it's affordable.
 We have a house in Penrith, but Sydney is too expensive for what we're after at present.
 Do you think the Gold Coast would be a wise move?
Kind regards and many thanks,
Stacey
 
Hi Stacey,
You sound like you are about to make some of the classic first time investor mistakes, so well done for writing to me first so that we can make sure that you don't!
You have said "preferably a house on the Gold Coast" and then quoted two reasons - that you lived there before and that it's affordable.
Living in an area doesn't turn it into a viable place to invest!  In addition, while investors always state that they have lived in an area, and so 'know it well'  as a reason for choosing it, it's highly unlikely that you 'know' the investment fundamentals about that area.
For example, can you quote the current vacancy rate?  Population growth statistics?  Median household income?  Council plans for infrastructure? Employment stats and industry spread?  I'd say no, and unless you start at least with those basic questions then you might as well throw a dart at a map of Australia and invest where it lands. You have the same chances of success using that method as you do using the 'we know it' method.
Investors must take care not to fall into the trap of believing that living in an area gives them special knowledge, and also that unless you live somewhere you cannot know it well.  There's absolutely no added safety investing in a market you've previously lived in.
In fact, there is often added danger as your familiarity makes you careless and you fail to adequately perform the due diligence needed to make sure that, at that moment in time, you are choosing the very best area to invest in.  Contrary to the rubbish that property spruikers spout, property investment can, and does, fail dismally and until you have learned how to recognise a viable investing area, you shouldn't be buying at all.
The second mistake you are about to make is that your decision making process is being 'price driven'.  This is common and is a situation where an investor uses a price range or price point to determine where they buy.  The reality is that it is never price which determines how well an area will grow. If you are driven by price you may well end up in an area where the returns you see mean that keeping your money in the bank would have been a more profitable venture.
Instead, you should learn how to select an area by doing the research first, and then, if properties in your price range are not available in that area, go looking again for another area which also shows the growth drivers.  I can assure you this 'Sydney' obsession will soon end and those buying there may land quite disappointed with the overall results.  There are many, many areas today with significant growth drivers, showing great promise and with affordable property - you just have to learn how to find it!
Regards,
Margaret
Margaret Lomas is a best-selling author and writes and hosts the popular 'Property Success With Margaret Lomas' and heads up the panel on 'Your Money, Your Call', both on Sky News.
She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

A couple of classic first time investor mistakes

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House prices have been rising.  But the rises are not uniform across the country.  The current recovery is against a period of relative weakness in house prices.
The housing market in Australia is quite cyclical, influenced by broad economic factors and in particular the cost and availability of money.  Low interest rates and easier credit access could drive the current cycle too high.
At present, price <a href="https://matusikmissive.com.au/2013/12/18/2014-outlook/" target="_blank">levels</a> (outside of Sydney, Melbourne and to some degree Perth) whilst above those in the US and Europe, are at the upper end, not beyond, the range of price to income ratios for developed countries.  At present, arrears rates on housing loans remain relatively low in Australia.
<img alt="matusik-jan-21-one-small" height="349" width="470" src="/images/stories/2014/01/21/matusik-jan-21-one-small.gif">
<img alt="matusik-jan-21-two-small" height="310" width="470" src="/images/stories/2014/01/21/matusik-jan-21-two-small.gif">
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/01/House-prices-1-PNG.png"></a>
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/01/house-price-2-PNG.png"></a>
The two graphics show that:
<ul>
<li>
House prices are cyclical.  Gains made now and into 2014 and 2015, could be eroded if prices grow too fast over the next 12 to 18 months.  Some of the current price forecasts (15% to 20% for 2014 alone)  will mean, if they eventuate, a potentially big slide in prices come late 2015 and beyond.  There is really little wriggle room for house prices to move.  Something in the order of 5% to 8% over the next 12 to 18 months is, for mine, much more viable.   Again for mine, if price growth exceeds, say, 10% this year, then budget on price falls post mid-2015.
</li>
</ul>
<ul>
<li>
Not all capitals are enjoying the rush.  Some haven't seen any improvement really in house prices yet.  Everything is Sydney, Melbourne and Perth and some locations (like every other cycle) will miss out.  I cannot see Hobart, Adelaide, Canberra or even Darwin enjoying much house price growth this year.  In contrast, South East Queensland is in the box seat.  Perth is likely to slow.  I also think that Sydney and Melbourne will see price growth this year, but they are already 'over cooked'.  Both markets can expect a correction - and maybe big ones - in late 2015.
</li>
</ul>
<ul>
<li>
With stubborn, high unemployment, full-time job losses and benign inflation - and despite its inflationary impact on house prices - interest rates need to fall further.  The collateral damage will be an overheated house price cycle.  This is why house prices cycle.
</li>
<li>
What will stop this current cycle is any rise in interest rates and an increase in mortgage defaults (which will lead to tighter lending practices).  Care must be taken not to borrow too much.
</li>
</ul>
Michael Matusik is the founder of <a rel="nofollow" target="_blank" href="https://www.matusik.com.au/" style="font-size: 14px;">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.
Read <a rel="nofollow" target="_blank" href="https://www.matusikmissive.com.au/">Michael’s Blog</a> or follow him on <a rel="nofollow" target="_blank" href="https://www.facebook.com/ThinkMatusik?fref=ts">Facebook</a> and <a rel="nofollow" target="_blank" href="https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a rel="nofollow" href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
 
 
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