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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Investors’ insatiable appetite for prime retail real estate is set see investment sales in the sector produce new record highs this year.
This week alone, more than $120 million worth of retail property assets changed hands in Sydney and Adelaide.
The high-profile Oxford Square commercial retail complex in Sydney's CBD sold for $62.7 million to the Australian Property Opportunities Fund.
<img alt="oxford_square_oct_23_one" height="313" width="470" src="/images/stories/2013/10/23/oxford_square_oct_23_one.jpg">
Photo: Oxford Square, Darlinghurst
Oxford Square is fully leased, with a net income of about $5,025,000 per annum. The site has a 48-metre frontage to Oxford Street and a total gross lettable area of 12,088 square metres.
Jones Lang LaSalle’s national head of retail investments Simon Rooney and manager of NSW retail investment sales Luke Harris oversaw the sale on behalf of a local private investor.
"While major deals above a$150 million still dominate the overall market, we’re also seeing an uplift in activity in the $50-150 million bracket this year", said Rooney, citing increased demand from the likes of syndicators and boutique fund managers
Such is the high level of demand that Rooney said including this most recent major sale, total retail transactions were at $5.3 billion.
"The current pace of activity suggests retail investment volumes are on track to produce a new record high in 2013, above the $6.5 billion recorded in 2012,” he said.
In a separate transaction, Charter Hall Retail REIT has acquired the Southgate Plaza in Adelaide's Morphett Vale for $60 million.
<img alt="morphett_oct_23_one" height="251" width="470" src="/images/stories/2013/10/23/morphett_oct_23_one.jpg">
Photo: Southgate Plaza, Morphett Vale
The plaza is located 21 kilometres south-west of the Adelaide CBD and is anchored by a recently expanded Target store and a refurbished Coles supermarket.
JLL's Simon Rooney also negotiated the Southgate deal. ISPT was the vendor.
Total sub-regional transactions for 2013 are now at $963.7 million year to date. That compares to $983.2 million in 2012.
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Record highs for prime retail investment sales

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After earlier this week sharing his<a href="https://www.propertyobserver.com.au/landlords/simon-buckingham-s-top-10-things-to-look-for-in-an-investment-property/2013102265855?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=observations" target="_blank"> top 10 things which he looks for in an investment property</a>, director and RESULTS coach of <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://www.resultsmentoring.com/">RESULTS Mentoring</a>, Simon Buckingham, followed up with his 10 investor pitfalls. 
 1. Believing the myth that property always goes up in value.
Many property spruikers still promote the idea that that property doubles in value every seven-10 years. But any historical study of actual median price movements demonstrates that this isn’t the case. Prices tend to go up in short bursts, and only about 30% of the time.
In fact there can be long periods when property prices in any given suburb are flat or even fall. Research into local market dynamics is essential to avoid picking an area where prices are more likely to trend sideways or fall in the near term, and to have the best likelihood to buying in areas that are going to increase in value.
2. Believing what you’re told by someone with a vested interest in selling you a property.
If someone is recommending that you buy a particular property, ask yourself: What’s in it for them? Do they really have your best interest at heart, or are the more focussed on the money they’ll make if you buy one of their properties? Remember, a real estate agent, developer or buyer’s agent will make money whether or not the property you buy through them actually meets your personal financial needs.
3. Buying on emotion, instead of research and due diligence.
This is especially a danger at auctions, because the entire auction process is designed to play on the emotions of the buyer by creating a competition where the highest bidder is the “winner” (Congratulations! You’ve just paid too much for your property!)
Always carry out due diligence before committing to any property purchase. This means examining recent comparable sales, crunching the numbers to understand the potential for profit in the deal, working out your maximum purchase price, and checking out the risks.
4. Buying a property because “it’s a bargain!”
A property that appears cheap, may be cheap for a good reason. There could be expensive structural issues, high-tension power lines overhead, an old mine under the backyard, or the “neighbours from hell” next door. Always carry out due diligence to check whether a “bargain” property really is the deal of a lifetime, or is actually a disaster waiting to happen.
5. Investing in property primarily to “save tax”
It’s not really hard to save tax… all you need to do is make a loss, and then claim that loss as a tax deduction! If your main reason for buying a property is to get a tax saving (for example, through negative gearing), then you’ve missed the whole point of investing… which is surely to make money rather than lose it! A tax saving doesn’t turn a bad deal into a good investment. Treat any tax savings as a bonus – not the sole reason to buy a property. 
 6. Failing to properly research the area in which you plan to purchase.
Invest in the wrong area and you may find that you’ve just bought into a suburb that is going to go nowhere, or worse, decline in value. Why would you want to buy and hold a property in a suburb where values were going backwards? 
Find out about local population trends, housing supply and vacancy rates. A falling population will undermine property values as people (and money) leave the area, and vacancy rates increase. Prices tend to rise slower in areas where plenty of new houses or units are being built, especially if the supply of new housing outstrips the rate at which the population is increasing. This is a common issue with large new housing estates and areas with many high-density apartments.
7. Entering into an unconditional contract to buy a property, without first obtaining finance approval. 
If your contract to purchase a piece of real estate is ‘unconditional’ and you can’t complete settlement because you’re unable to get a loan, then you’ll probably lose your deposit (and possibly more).
8. Omitting to undertake a building and pest inspection on a property before buying.
Unless you are a builder, you could easily miss costly problems with the physical dwelling, like a leaky roof, damaged foundations, a termite infestation or worse!  What sounded like a “bargain” at the time could rapidly become a far more expensive money-pit because you didn’t get it properly checked out by professional building and pest inspectors.
9. Buying a property after a 15 minute inspection, or worse, site-unseen.
It’s scary to think that most investors spend more time deliberating over a new pair of shoes for $100 than they do on evaluating an investment property for $500,000! If you’re going to invest hundreds of thousands of dollars in a property, do more than just looking at photos on the internet or attending a 15 minute open-for-inspection.
Invest a little time and money to properly check out both the property and the neighbourhood. Otherwise you might find you’ve just bought the best property on the worst street, right next door to the local “crack house”! And remember, photos often lie. 
 10. Listening to the opinions of people with little or no actual property investing experience.
Only ever take property investing advice from those who can demonstrate they have experience in the kind of property investing strategies you’re interested in, and who have a track record of success. Do not listen to the opinions of those who have never invested in property before, or are not investing in the current market.
 
<hr>
 Simon Buckingham is director and RESULTS coach of <a rel="nofollow" href="https://www.resultsmentoring.com/" target="_blank">RESULTS Mentoring</a> as well as the author of The Real Deal: Property Invest Your Way To Financial Freedom.
 
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Simon Buckingham's top 10 investor pitfalls

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Ever wondered why agents underquote? The simple answer is because it works. This may not be a popular view of underquoting and as frustrating as it may be, underquoting is a necessary evil in Melbourne’s auction system.  
Growth in property prices this year has highlighted the widespread practice of underquoting and the frustration of buyers who miss out when properties sell for much more than the advertised estimate.  
Ironically, the practice that frustrates buyers is the same one that enables the auction system to work in the first place.  
When a real estate agent auctions a property, the vendor is paying them a fee to achieve the highest possible price in the prevailing market conditions. To achieve this, the agent must do their utmost to maximise the intensity of competition on auction day.  
At any given auction the bidders will have a range of spending limits. Some limits may be close to the advertised sale price estimate, whilst others may be much higher. By competing in the auction up to their respective price limits, each underbidder plays a vital role by increasing the intensity of competition.  
Although some buyers fall by the wayside when bidding goes beyond their limit, each one plays a part in pushing the bidding higher and, ultimately, determining the final sale price.  
Even if the agent researches the sales results of comparable properties and advertises a price estimate that they genuinely believe is realistic, there’s no guarantee that the property at hand will sell within that range.  
Therefore, in a free market economy, advertised price estimates and sales results for comparable properties should be taken as guides, not ironclad predictors, of the actual sale price a particular property will achieve. Ultimately, it’s the different spending limits of each bidder and the intensity of competition that count on auction day.  
As I see it, the real problem isn’t underquoting per se, but the public’s (understandable) misconception that an advertised price estimate is the level at which the property is likely to sell. In fact, the advertised estimate is a marketing tool; a way of drumming up interest from a wide range of buyers to create competition on auction day and maximise the eventual sale price.  
It’s the old adage: “Quote ‘em high, watch them die. Quote ‘em low, watch ‘em go.”  
The rationale behind taking an asset to auction — whether it’s a property, a work of art or even a consumer item on humble old eBay — is to test the market. Unlike a private sale, where the vendor advertises a clear price at which they’re prepared to negotiate, auctions put the onus on the purchaser. They’re the vendor’s way of saying, “Sure, I know the price I’d like to achieve, but I want you to tell me what you think it is worth.”  
The public’s misconception about the purpose of advertised price estimates highlights another equally important issue — the shortage of supply relative to demand, particularly in the inner suburbs where most auctions take place. Buyers who bid there encounter the lowest ratio of supply relative to demand, and therefore the strongest competition from other bidders. In this situation, they must accept that a greater possibility of failure is a by-product of their participation.  
In a perverse way, underquoting works because it brings in bidders who can’t afford the property — encouraging competition and driving up the eventual sale price. When transacting a privately owned asset in a free market economy, the highest bidder wins. The fact that some buyers will miss out is an unfortunate fact of life.  
 
<hr>
 Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.  
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Underquoting - the auction system’s necessary evil: Mark Armstrong

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Director and RESULTS coach of <a href="https://www.resultsmentoring.com/" target="_blank">RESULTS Mentoring</a>, Simon Buckingham, shared with Property Observer the top 10 things which he looks for in an investment property.
1. A property that is aligned with your financial goals.
First and foremost, you need to know what financial outcome you’re seeking from your property investment – i.e. how much profit, by when, and what form is that profit going to take (capital growth, cash flow, a lump sum cash gain from adding value, etc)? It’s only with a clear financial goal in mind that you’ll be able to assess whether a property is actually the right one for you!
2. Established (not brand new) house in a growth area.
New houses depreciate, which can provide some tax advantages, but you’ll pay a premium for ‘new’ and may not see any greater rate of growth than you would with a less expensive established house in the same area.
3. Priced lower than comparable properties in the area.
Becoming familiar with values in and area by researching recent comparable sales can help you identify properties where the price represents good value – subject to checking out whether there is some kind of major issue with the property. Remember though that many problems can be fixed cost-effectively, and it may be that the seller simply needs a quick sale and is quite negotiable on price.
4. A house on a larger block in a zone that would allow higher density development.
This may make your property more desirable to developers, helping it to outperform on price growth even if you have no intention to develop it yourself.
5. Other ‘scarcity’ aspects.
Look for something that will make your property rare (but not weird) and therefore more desirable than others in the area, so that it outperforms on price growth and/or rental returns, rather than getting more-or-less the same as any other property. Examples of ‘scarcity’ aspects might include a larger block in a high density area, water views, proximity to amenities (like beaches, parks, sports grounds), being close to public transport or easy freeway access (but not right on the railway line or right next to the freeway), etc.
6. Opportunities to cost-effectively add value or increase rent.
The more options you have for making money from an investment property, the better. If you can add value to the property, then you become less reliant on market-driven growth for you profits. Look for properties with potential to increase the value or achieve a significant improvement in rental return through cost-effective improvements. Here, ‘cost-effective’ means that you’d spend less on the improvements than the resulting increase in the property’s value, or would be paid back the cost of the improvements within a short timeframe from the increased rent. 
7. More than one dwelling on the same title.
A property with more than one house or unit on the same title may deliver a higher rental return from multiple tenancies, or provide an opportunity to actively increase the value of the property through a potential subdivision.
8. Located in an area with favourable ‘market dynamics’.
Not all suburbs are equal, and they won’t all experience growth at the same time. Look in areas where the leading indicators of growth are positive. For instance, a suburb where there’s limited housing supply and properties are being sold at a rate faster than the rate at which new listings are being added, the average-time-to-sell is falling, may indicate great potential for short-term price growth.
9. Located in area with low rental vacancy rates.
If you’re planning to hold the property for rental income and price growth, then picking a property in an area with strong rental demand will be important. Low vacancy rates will support both rents and prices, and help reduce the risk of having to carry the property empty (with no income) for extended periods between tenants.
10. Broad target market appeal.
Ensure the property will appeal to your 'target market'. If you’re planning to rent out the property, then it needs to be a property that tenants will actually want to live in. If your plan is to on-sell the property down the track (perhaps after renovation or redevelopment) then look for locations and properties that will have broad appeal to the majority of home buyers and investors in the area.
 
<hr>
 Simon Buckingham is director and RESULTS coach of <a target="_blank" href="https://www.resultsmentoring.com/">RESULTS Mentoring</a> as well as the author of  The Real Deal: Property Invest Your Way To Financial Freedom.
 
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Simon Buckingham's top 10 things to look for in an investment property

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One-hectare rural lots going on sale at Edmondson Park this weekend through Urbangrowth NSW, which incorporates Landcom, are looking to benefit from the South West Rail Link.
The lots, adjoining Denham Court at the eastern end of the Macarthur Scenic Hills, are using the M5, M7 and new South West Rail Link to generate buyer interest.
“People can live in a diverse range of housing styles from rural living to low maintenance homes with everyone connected to transport, community and education facilities,” said Donna Savage, development director.
“Edmondson Park is about lifestyle and amenity. It is surrounded by a 150- hectare Regional Park and open spaces, that are connected by cycle ways and footpaths leading into a new Town Centre,” said Savage.
The limited sales release of 15 one-hectare rural lots will be on 26 October, at 10am.
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Development takes advantage of South West Rail Link

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A new report has revealed that upward momentum in detached housing construction can still be expected over 2013/14, according to the Housing Industry Association (HIA) and RP Data.
The most recent HIA-RP Data Residential Land Report saw strong growth of 18.2% over the June 2013 quarter, reaching a level of 17,170.
"This is the highest quarterly volume achieved since the March quarter of 2010," said HIA chief economist, Harley Dale.
"The recovery in residential land sales is impressive, but from a very low base."
Dale said that there is a close, but slightly lagged, relationship between the land sales noted in this report and the number of detached housing starts.
This points to the prospect of further growth in house starts following a modest lift of 3.7% over 2012/2013.
"The level of sales in 2012/13 was 56,782. Sales are therefore now back to a level equivalent to the GFC trough but no higher - the level is still 21 per cent below the historical average. Obviously it will be important to see further strong momentum in land sales for some time to come. For that to occur there needs to be a keener policy focus on ensuring adequate and affordable shovel-ready land is available," Dale said.
Residential land price growth has, however, been generally modest.
"A flat June 2013 quarter for the weighted median residential land value saw an increase of only 1.7 per cent over the year, less than general inflation," he said.
Meanwhile, RP Data’s research director, Tim Lawless, said that improvements in market conditions are in line with improvements across the broader housing market.
"The housing market has been back in growth since mid-2012 with both the rate of capital gains and transaction volumes gathering some momentum during 2013. It should come as no surprise that the Sydney housing market, which remains well undersupplied relative to the rate of population growth and is recording the highest rate of capital gain currently, is one of the primary drivers behind the lift in national vacant land sales,” said Lawless.
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Housing construction to continue climbing: HIA-RP Data

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Housing affordability is at its best in 10 years, but first home buyer activity is low.
The relatively low level of buying by first timers has enabled some to claim that there is a lack of affordability, never mind the official data.
So often in real estate, observers add one and one together and come up with seven. People with a bee in their bonnet about an issue seldom dig any deeper than the surface to find what really lies beneath.
So the industry is resplendent with simplistic analysis in which myths – such as elections cause markets to stall (the pre-election rise of markets around Australia this year suggests otherwise), interest rates dictate market movements (there’s no historic basis for that), we have a housing shortage crisis  (the REIA’s city average vacancy rate of 3% and the lack of rental growth suggests we don’t) and young people can’t afford to buy – become accepted as facts.
Many surveys have been conducted on the activity or otherwise of potential first home buyers. A recent survey by RAMS showed most thought this was a very good time to buy - but most did not intend to buy.
Therein lies the clue as to why first home buyers are not exploiting strong buying conditions. It’s all about attitudes and priorities.
Many younger Australians say they have priorities other than home ownership. They want to travel, own expensive gadgets and have a nice lifestyle in their location of choice, in preference to taking on a mortgage in a less desirable location.
Others do want to own a home but they want their dream home in a premium location as a first purchase. That’s never has been achievable and probably never will be.
First home ownership demands sacrifice and compromise and the new generations are less willing to do that.
Buying a first home has never been easy, but in many ways it’s easier today than before. When I bought my first home, there were no government grants or concessions, you needed a 20% deposit and the only borrowing option was the institution you’d saved with for several years.
That first home was a shack in a downmarket suburb 90 minutes from the CBD. It was all about compromise to get on the lowest rung of the ladder. But ugly real estate grows in value, often faster than luxury property, and two years later I was able to sell the shack for a healthy gain and buy something better, much closer to my inner-city job.
I achieved something approaching my dream home on my sixth purchase.
Those who want the dream home as a first purchase are kidding themselves.
Some newspaper articles are declaring that we have a “generation rent”, people doomed to a lifetime of renting. That’s only true for those unwilling to prioritise home ownership and make the necessary compromises. It seems many young Australians prefer to rent and have the lifestyle they prefer. That’s fine, if that’s their choice, but stop telling us you can’t afford to buy.
For those willing to stop complaining and start acting, there is so much in your favour – a high level of affordability, attractive loan options from competing lenders, a leg up from government and rising markets to create equity in the future.

<hr>
Terry Ryder is the founder of <a rel="nofollow" href="https://www.hotspotting.com.au/" target="_blank" style="font-size: 14px;">hotspotting.com.au</a> and you can contact Terry via <a target="_blank" href="https://mailto:%20ryder@hotspotting.com.au">email</a> or on <a target="_blank" href="https://twitter.com/hotspotting" style="font-size: 14px;">Twitter</a>.
 
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Sacrifice and compromise, the reality of first home ownership: Terry Ryder

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<img src="/images/stories/2013/10/21/stonebridge-property-group-oct-23.png" width="200" height="86" alt="stonebridge-property-group-oct-23" style="display: block; margin-left: auto; margin-right: auto;">
Agent: Philip Gartland<img src="/images/stories/2013/10/21/philip-gartland-profilke.png" width="150" height="200" alt="philip-gartland-profilke" style="float: right;">
Position: Director
Company: Stonebridge Property Group.
Office Location: Sydney.      
How long have you been in the industry?
17 years - 11 in Australia and six in the UK    
What's happening in the area you specialise in?
The retail investment market is particularly aggressive at the moment. The combination of pent-up frustration of capital trying to find a home, coupled with historically higher yields and very competitive financing rates / increased bank funding competition, has led to very strong purchaser appetite. The issue now is that stock levels are now significantly lower with owners sensing an upswing in pricing.  
Describe the most interesting property you have sold?
The most interesting property I have sold was back in my days working in the City of London. It was a large prime office building close to St Pauls Cathedral, which was predominantly held on a freehold title but had a small/thin parcel of land running right through the middle of the built improvements held by way of 699 year sub-leasehold interest with a 700 year head lease.
The transaction hit a stumbling block as in doing their due diligence, the purchaser identified there had been breaches in both the head lease and sub-lease as development had taken place without the freeholder's consent and the freeholder of the land had disappeared from records!
It was a very interesting transaction because of the history involved;  from the perspective of having to review hand-scrolled Chaucerian style "Auld English" leasehold documents and where the purchaser ended up having to take out a very expensive insurance policy to cover them in the unlikely event the freeholder's ancestors turned up and claimed the breach of lease (the freeholders whereabouts had been lost around 200 years ago). The implications of them coming back would have been very material!    
What are the ingredients to being successful in your job?
Number one is relationships. Then it  is reacting to information. Being respectful, tenacious, organised and persistent are also pre-requisites.    
What aspects of your role do you enjoy the most?
Dealing with people and being able to get out of the office on a regular basis.    
Where would you invest a spare $750,000?
Buying existing income producing improvements in urban infill locations. Like industrial assets in Alexandria for example. Subject to planning restrictions, they are highly likely to have a higher and better use down the track.    
Which football team do you support?
Being from the UK, the football I prefer is soccer! For my sins - Newcastle United. If talking other codes; league - Roosters. AFL - Swans.    
What's your favourite app or techno gadget?
Evernote. This keeps me organised and able to access my notes wherever I am.  
How do you use social media?
We use Linkedin to advertise all of our properties and I personally use Facebook to keep up with Friends and family in the UK.
 
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In profile: Stonebridge Property Group's director, Philip Gartland

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Brisbane’s commercial market is currently experiencing vacancy in secondary stock, which raises the question of what landlords should be doing to tenant this space? It’s an interesting area.
There have been a series of secondary assets within the Brisbane market that have recently undergone refurbishment in the race for tenant engagement. These landlords have focussed on the inspection journey and prioritized capital expenditure within building common areas (ground floor lobby, and on floor lobby finishes), providing quality tenant amenity and ensuring the tenancy itself presents in its best light.
If a tenancy stands out as the ‘best in class’ in the eyes of a prospective occupier, it will likely make the shortlist. That is ultimately the goal.
However, if there is simply not an appetite to expend large amounts of capital within the common areas, the use of feature carpet/tiling/alternative floor coverings, non-traditional or custom lighting and clean modern finishes throughout the specific vacancies is very important. Simply, a freshly painted tenancy will always inspect better than an old second hand fitout.
Using another approach - a number of landlords have completed speculative fitouts within vacancies that have resulted in successful outcomes. Whilst this presents some risk (we are often asked, “what if the tenant doesn’t like the fitout and wants it removed altogether”) the construction of a speculative fitout, particularly in those tenancies with quirky attributes, can often hide the negative aspects of a space with a fresh new presentation.
‘Speed to market’ can also be leveraged when a fitout is immediately available. Quite often smaller groups do not think about their accommodation needs until three to six months out from lease expiry, leaving little time to find the right tenancy and construct a fitout. Recently the Seymour Group built a good quality speculative fitout within a 210 square metre suite in 300 Queen Street. On completion of the fitout works the tenancy had been leased to a consulting business. The tenant that ultimately took the space had tight time constraints and required a space that was ready to occupy.
Flexibility and willingness to accommodate out-of-the-box tenant requirements are in my view the two most important factors in securing a prospective tenant. Some of the more recent transactions within the secondary market have incorporated access periods and delayed lease commencements to enable incoming tenants the ability to facilitate a relocation without double rent exposure. Landlords project-managing the fitout process on a tenant’s behalf (so a tenant is able to move in to a fully fitted tenancy), relocating existing furniture within the building for the incoming tenant at no cost, or even creating a bicycle cage in the basement are all things that have been recently accommodated to secure a deal.
In wrapping up, it’s clear to me that taking a stubborn view on what your building is worth without assessing the market can be detrimental. Listening to the market, understanding the drivers of each specific tenant and being nimble in your dealings are paramount aspects of any leasing campaign, particularly while demand is soft.
The speed of actioning deliverables is also critical. Once a tenant has signed a heads of agreement it does not mean the deal is absolutely final - quickly turning around formal documentation, actioning landlord works items and working with the tenant to “cross the T’s and dot the I’s” should be the immediate focus to limit any potential hiccups along the way.

<hr>
James Montague is the director of office leasing, Queensland with <a target="_blank" href="https://www.jll.com/australia/en-au">Jones Lang LaSalle</a>. 
 

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What should you do about secondary stock vacancy? James Montague

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In recent years, some Australians have adopted an interesting strategy of being a ‘renter-investor’. I’ve written about this previously, and it is a trend I have kept an eye on ever since.
They will actually not buy a home to begin with,  instead saving their deposit money for a property that will become an investment from day one. They will then rent for the duration of this. There are several situations or reasons why some people may opt for investment ownership instead of home ownership:
- Perhaps home ownership in the desired suburbs or areas where they most enjoy the lifestyle is too cost prohibitive to be a home owner.
- They may be a younger aspiring investor and be in a situation where they can continue to live at home with parents or relatives, rent-free, enabling them to poor their savings entirely and quickly into pure investment.
- Transient lifestyles. Those in military or international business jobs may not value home ownership much at all, as their lifestyle involves lots of travel or placement in other states and countries.
- Some investors may not see the value in home ownership in Australia. For some investors, the ongoing burden of a large mortgage may not seem to be the best use of their savings dollars.
The other option for renter-investors is to begin their investment career as a home owner, which is how I started out. Renter-investors will usually do this to qualify for any government grants, exemptions, or benefits offered to first home buyers, and then live in the property for the minimum time required. This is usually around six months. These investors will then move out of the property and into a rental property. This strategy works works well for people who:
- Cannot save enough of a deposit for the home where they want to live, but wish to invest for several years to help them eventually afford to buy a home in the area they wish to live.
- For those investors looking to maximise the initial cash-flow when first buying, via accessing government grants that are paid at time of settlement. This can enable these investors to move quicker into the purchase of investment property num,ber two.
- Those who are comfortable and flexible enough to live in a temporary home for six-12 months in an area that perhaps is not their dream area, but can view it as a necessary stepping stone to move into their desired area.
In fact, another emerging trend that goes part and parcel with the above strategy is to use home ownership as a temporary springboard into an investor life,all the while retaining a capital gain tax (CGT) exemption on one of the properties you own.
How does it work?
It goes something like this:
-          An aspiring investor will purchase their first home in whatever investment area they can afford, and through their due diligence represents solid rental return and/or capital gain potential.
-          This area probably won’t be in their desired dream suburb or where they see themselves living for a long time.
-          They then live in this property for the first six months or as long as is needed to qualify for any grants or stamp duty concessions/exemptions that are on offer by federal or state governments at the time.
-          Then, the investor will move out of their home into a rental property in the area they actually want and desire to move to, and convert their home into an investment property.
-          The investor can now continue to rent for many years and use any growth achieved in their home property as a springboard to purchase their next investment property.
-          For future CGT minimisation purposes, the investor may move back into the home property in year five or six of ownership, perhaps also doing a mild renovation whilst living there again, before moving back out again and re-renting it out.
The advantage of using this strategy, as opposed to just starting as an investor from the outset, is that the investor gets to maintain a CGT exempt ‘haven’ which will help when selling the property in the future. This is a very simplistic approach, and it gets more complex as you grow a portfolio.
It is best to consult with a professional accountant and the ATO when considering a tax-minimisation strategy across a portfolio of properties. The very general rule of thumb though, is that the ATO will only allow you to claim one residence as your principal place of residence (PPR – otherwise known as your ‘home’) for tax purposes. So as some investors grow a portfolio of multiple, even dozens, of properties, and they continue to rent elsewhere, they will usually find ways to nominate the highest-value property in their portfolio as their PPR for taxation purposes.
Renting where you want to live, whilst investing where you can afford at the time, really is a strategy that can work for young and newly-starting investors. It offers the best of both worlds; enjoying the lifestyle of the area you want to live in, whilst establishing your investment career on the property ladder, at an earlier age and time in your life. This of course is ideal, because the the earlier you can make your start on the investment property ladder, the more chance you’ll have to acquire more properties and see them grow, through to retirement age.
 
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 Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://www.propertycorrespondent.com.au/" rel="nofollow" target="_blank">Property Correspondent.</a>
 
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