For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

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?

For the first time in a long time, Australia's inflation story is starting to look more like a landing than a fight.

The latest Consumer Price Index figures from the Australian Bureau of Statistics showed annual inflation eased to four per cent in May, down from 4.2 per cent in April. On the surface, that might not seem like a major move. Inflation remains above the Reserve Bank's target range and some categories continue to record stubborn price growth.

But the significance of this result lies less in where inflation sits today and more in what it means for where interest rates are likely heading next.

The biggest takeaway is that inflation continues to move in the right direction.

Markets had been bracing for another sticky result after a period where progress appeared to stall. Instead, headline inflation came in softer than expected, helped by falling fuel prices and easing transport costs. Annual transport inflation halved from 6.6 per cent in April to 3.3 per cent in May, while automotive fuel prices fell 11.9 per cent during the month following lower oil prices and the impact of reduced fuel excise measures.

While petrol prices don't solve Australia's affordability challenges, they are one of the most visible and immediate costs for consumers. Falling fuel costs feed through the economy quickly, helping ease pressure on household budgets and business operating expenses.

The ABS data also showed headline inflation is now sitting at its lowest annual level in several months, reinforcing the broader trend that price growth is gradually moderating.

That trend is important because it aligns with what many economists and lenders have been saying for the last month.

Prior to this week's inflation data, ANZ, NAB and Commonwealth Bank had all shifted their forecasts, now believing the Reserve Bank had likely reached the peak of the interest rate cycle. Following the May inflation release, ANZ reaffirmed that view.

In its latest economic update, ANZ said it expects quarterly trimmed mean inflation to come in at 3.7 per cent for the June quarter, slightly below the Reserve Bank's forecast of 3.8 per cent. Importantly, the bank said that outcome, when combined with slowing economic activity, "supports our view that the cash rate has peaked".

The Reserve Bank has spent the better part of three years attempting to bring inflation under control through higher interest rates. If Australia's major banks are correct and rates have now peaked, the conversation shifts from how much higher rates could go to when they might begin coming down.

Westpac's caution comes from underlying inflation. The trimmed mean, the measure most closely watched by the Reserve Bank, increased from 3.4 per cent to 3.6 per cent annually. Housing inflation remains elevated at 6.5 per cent, reflecting ongoing increases in rents, electricity costs and new dwelling construction.

Electricity prices remain particularly problematic, rising 21.1 per cent over the past year following the removal of government rebates.

Housing construction costs are also showing signs of renewed pressure. ANZ noted new dwelling costs rose 0.9 per cent in May and are now running at an annualised pace of 8.6 per cent over the past three months. Builders continue to face higher labour, fuel and material costs, a reminder that inflationary pressures have not completely disappeared.

Housing affordability has deteriorated largely because of higher interest rates rather than higher property prices alone. Even modest reductions in mortgage rates would improve borrowing capacity, increase buyer confidence and reduce repayment pressure on existing homeowners.

While August is far from a certainty, the latest inflation result has strengthened the view that the next move in rates is more likely to be down than up. For borrowers, buyers and the development sector, that alone represents a significant shift from the conversation that dominated much of the past two years.

The inflation result the property market was waiting for

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An industrial warehouse/office at Clayton South in Melbourne’s south east has been sold by Ray White Commercial Oakleigh.
The vacant property at 196/248-266 Osborne Avenue, Clayton South, was sold for $345,000 to a local owner-occupier by Paul Rizzo of Ray White Commercial Oakleigh on behalf of a local owner.
Mr Rizzo said the property which offered a net lettable area of approximately 252 sqm was sold 24 hours after it was passed in at auction.
“We had a good response to the marketing campaign and more than 15 people at the onsite auction despite miserable weather,” he said.
“We had two bidders but the property was passed in.
"We reached a deal with one of the bidders the day after the auction.”
The building includes approximately 100 sqm of office space on the first floor and there was parking onsite for three vehicles.
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j.ballantyne1990-6AQqhLzZaK

Vacant warehouse/office at Clayton South sold for $345,000

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Victoria’s west has led the way with solid home price growth from Horsham to Geelong, the latest REIV price data shows.
Buyers have been attracted to the surf coast lifestyle in particular, the REIV CEO Geoff White said.
The east of the state, Warragul, Cowes and Bairnsdale has shown strong price growth.
The latest REIV median data shows that while annual growth across the state has been relatively moderate at 2.3 per cent to $348,500, a number of locations are showing far greater increases.
Horsham in western Victoria topped the list for median price growth over the year, increasing almost 20 per cent to a median price of $249,975, Mr White said.
Also making the top five list for median price increases, in the west of the state, were Geelong (up 16.9 per cent to $675,000), Torquay (up 14 per cent to $690,000), and St Leonards (up 13.7 per cent to $426,250).
“The latest research shows that buyers were not only drawn to the west, but largely to locations within commuting distance of Melbourne,” Mr White said. “New infrastructure in the west is enhancing prices.
“The faster train services which have been introduced between Geelong and Melbourne in recent years continue to improve prices in the bayside city.
“And Surf Coast locations, including Torquay, continue to benefit from easy access to the freeway and the Geelong bypass, cutting commuting time into Melbourne significantly.”
Mr White added that the other trend was the significant growth in coastal locations, from Cowes in the east of Victoria to Anglesea in the west.
“Regional Victoria is increasingly attractive to buyers and investors, offering access to quality amenities combined with a relaxed country lifestyle,” he said.
“Continued growth in the Melbourne median house price – which rose three per cent to $740,000 this quarter – also adds to the allure of locations close to Melbourne which are well below the Melbourne median price.”
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td colspan="4" valign="bottom" nowrap width="400">
Top 20 Growth Suburbs (Annual)
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="24">
 
</td>
<td width="210">
Suburb
</td>
<td width="83">
Sep-16 Median
</td>
<td width="83">
Annual Change
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="24">
1
</td>
<td valign="bottom" nowrap width="210">
   HORSHAM
</td>
<td nowrap width="83">
$249,975
</td>
<td nowrap width="83">
19.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="24">
2
</td>
<td valign="bottom" nowrap width="210">
   GEELONG
</td>
<td nowrap width="83">
$675,000
</td>
<td nowrap width="83">
16.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="24">
3
</td>
<td valign="bottom" nowrap width="210">
   COWES
</td>
<td nowrap width="83">
$394,500
</td>
<td nowrap width="83">
16.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="24">
4
</td>
<td valign="bottom" nowrap width="210">
   TORQUAY
</td>
<td nowrap width="83">
$690,000
</td>
<td nowrap width="83">
14.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="24">
5
</td>
<td valign="bottom" nowrap width="210">
   ST LEONARDS
</td>
<td nowrap width="83">
$426,250
</td>
<td nowrap width="83">
13.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="24">
6
</td>
<td valign="bottom" nowrap width="210">
   WARRAGUL
</td>
<td nowrap width="83">
$365,000
</td>
<td nowrap width="83">
13.2%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="24">
7
</td>
<td valign="bottom" nowrap width="210">
   EAST GEELONG
</td>
<td nowrap width="83">
$474,750
</td>
<td nowrap width="83">
12.6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="24">
8
</td>
<td valign="bottom" nowrap width="210">
   ANGLESEA
</td>
<td nowrap width="83">
$685,000
</td>
<td nowrap width="83">
11.4%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="24">
9
</td>
<td valign="bottom" nowrap width="210">
   MERBEIN
</td>
<td nowrap width="83">
$197,500
</td>
<td nowrap width="83">
11.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="24">
10
</td>
<td valign="bottom" nowrap width="210">
   BAIRNSDALE
</td>
<td nowrap width="83">
$254,500
</td>
<td nowrap width="83">
10.8%
</td>
</tr>
</tbody></table>
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Western Victoria leads the way in latest regional medians

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Building, construction and carpentry prices across NSW dipped last quarter with the website serviceseeking.com.au suggesting it signalled an early indication the housing market may have peaked.
The cost to hire a carpenter decreased by 8.7 per cent compared to the previous quarter, with building and construction prices also down 5.6 per cent.
“We believe the result suggests an impending downturn in the property market. Fewer property owners and investors are undertaking renovations so consumer confidence might not be as strong as it was last year,” says ServiceSeeking.com.au CEO Jeremy Levitt.
“Investors only renovate for a positive return on investment and if that potential is not there they won’t renovate. Our data shows a relative oversupply of tradespeople to current levels of demand resulting in downward pressure on tradie prices.”
Overall, trade services in NSW across eight major categories have fallen 2.5 per cent quarterly to $59.28. When compared to the Consumer Price Index increase of 0.7 per cent quarterly released today, tradies are feeling the pinch even more.
Of the eight categories in the ServiceSeeking.com.au Tradie Price Index, only one recorded an increase: electricians managed to up their prices by 6.6 per cent in the last quarter despite all other sectors recording downturns.
Year-on-year, a 2.1 per cent decrease was recorded across the eight tradie categories.
The prices were derived by comparing a sample of 52,000 quotes submitted during the FY17 Q1 through ServiceSeeking.com.au, the website for getting any job done from tradies to professional services.
To view price changes across eight popular renovation services around the country, including major capital cities, see <a href="https://www.serviceseeking.com.au/renovations" target="_blank">www.serviceseeking.com.au/renovations</a>
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Prices of tradies drop in NSW including carpenters

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Mortgage aggregator Finsure Finance &amp; Insurance has recruited its 1,000th broker less than five years since it was founded.
Finsure Managing Director John Kolenda said experienced residential lender Bill Dale has joined the Queensland Finsure team to become the 1,000th broker.
It is one of Australia’s fastest growing aggregation businesses.
“Bill has settled $250 million in the past two years at BOQ Specialist, and he has recently launched his new brokerage BD Professional Mortgages."
Mr Kolenda said the speed of Finsure’s growth, which includes surpassing $1 billion in settlements, had exceeded his expectations.
The company was ranked second overall by BRW Magazine in its 2015 top 100 Fast Starters list and the company was ranked second when the SmartCompany top 50 was named to celebrate Australia’s fastest growing SMEs in 2014-15.
Mr Kolenda said mortgage brokers are becoming increasingly important in the highly competitive home finance market during an unprecedented era of low interest rates.
“More than 50 per cent of Australian home loans are now written by mortgage brokers.”
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Finsure reaches 1000 broker milestone

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The recent change of government with Labor taking hold of the reigns in the August election have improved conditions in Darwin for people trying to enter and exit the property market, according to Herron Todd White’s latest monthly market report.
The property advisory firm says that the past two years has seen Darwin’s property market continually slow with decreasing prices and lower sales volumes across the board.
First home buyers were only offered incentives for brand new properties in those two years and established properties subsequently received limited interest.
Since 1 September the market has sprung to life again as the new first home owner incentives for existing properties came into play.
First home buyers are now eligible for up to $24,000 in stamp duty concessions, with the first $500,000 of the purchase being stamp duty free and the incentive being capped at $650,000.
As many of the properties now being targeted by first home buyers will be relatively old, a further incentive of $10,000 to be utilised for renovations including up to $2,000 on household goods will further encourage people to buy existing properties. The incentive of $26,000 for building or buying a new property remains in place.
The new concessions have only been effective for three weeks and agents are reporting increased activity with numerous contracts executed in the short existence of the initiative.
"Many prospective purchasers were waiting to see the election results before making any serious offers and have been quick to take advantage of the new benefits, some fearing it might push prices back up, particularly at the entry level," the report noted.
As the incentive is capped at $650,000, all established properties on the market under that range are expected to attract more interest.
One example would be a three bedroom home at <a href="https://www.realestate.com.au/property-house-nt-darwin-122535794">20/12 Dashwood Place</a> that is for sale for $575,000.
The northern suburbs in particular will be a popular area for young buyers and all the older Palmerston suburbs should benefit also.
Herron Todd White noted how the scheme might affect the property market.
"The biggest loser from the scheme may be the already suffering new estates, as new home buyers will now shift away from building and focus on the established market. particular Zuccoli and Muirhead are the two estates with the most land left to release and project builders may have to bring their build contract prices down to compete with existing stock.
The increased activity in the market will help move properties quicker and the flow on effect will help people buy up an asset class from their existing property.
HTW still thinks there are still many negative economic factors surrounding Darwin and as the population continues to fall the basic supply and demand principles would suggest that prices won’t be drastically spiked by these new incentives.
"The greatest benefits will be more sale transactions, shorter marketing periods and more opportunities for people to enter the property market."
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Darwin property market may improve with new first home buyer scheme: HTW

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Backpacker accommodation right opposite Bondi Beach, on Campbell Parade has been listed for sale.
It is the <a href="https://www.realcommercial.com.au/property-hotel+leisure-nsw-bondi+beach-502144966" target="_blank">Bondi Backpackers property</a>.
Craig Pontey of Ray White Double Bay, who is taking the property to auction, say it has 52 rooms accommodating 138 guests in configurations from single rooms to 6-person dormitory rooms.
There’s additional income from two prime retail tenancies that also front Campbell Parade: Bavarian Bier Café and Backpacker World Travel.
"Total income from the property is currently in the order of $1.364,989 per annum, and as an ideal owner-operator business," he said.
"I believe that there’s considerable potential to increase income," he said.
The site area is 448 sqm with a 12m frontage to Campbell Parade.
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Bondi Backpackers on Campbell Parade, Bondi Beach for auction

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<div>
Hobart leads the nation in year-on-year house asking price gains and the Melbourne market is hot according to SQM Research.
The latest Weekly Asking Prices Index from SQM Research found only Darwin and Perth had softer prices due to the mining downturn. SQM Research managing director Louis Christopher said asking house prices are higher in most capital compared to one year ago, highlighting the robustness of the national property market.
"Only Darwin and Perth continue to report softer prices, as can be expected with the mining downturn," he said.
"Elsewhere, Hobart leads year-on-year gains while Melbourne's property market too is hot.  
"Prices are slightly lower for Brisbane units, though asking prices for houses are up. Watch this space for emerging signs of oversupply in units, especially in Melbourne and Brisbane."
 
</div>
<div> </div>
<div><a href="/images/2016/10/27/Screen%20Shot%202016-10-27%20at%201.39.33%20PM.png" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/10/27/Screen%20Shot%202016-10-27%20at%201.39.33%20PM.png" alt=""></div>
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jonathanchancellor-7SQnKwU6yx

Hobart houses top nation in year-on-year asking price gains: SQM Research

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Housing affordability, rather the lack of it, doesn’t seem to be going away anytime soon, and Treasurer Scott Morrison’s recent speech at an Urban Development Institute of Australia event just reinforced the view.  
In such a scenario, the ‘bank of mum and dad’ for first-home buyers might be the way to realise the ‘great Australian dream’.
With the apartment median price in Sydney around $850,000, and Melbourne not too far behind, saving for even that 10 percent or higher deposit is a tough task for the new kids on the property block.
Normally, when a borrower can’t meet a 20 percent deposit and stamp duty, the bank will impose a Lenders Mortgage Insurance, which adds up to a few thousands of dollars. 
The ‘bank of mum and dad’ can seem to be a good option in such circumstances.
Ask a parent how far they would go to support the financial aspirations of their children, and chances are they will say: “Yes, if I had the money I would be happy to act as a guarantor for my children to purchase a property.” 
According to Todd Hunter, founder and director wHeregroup, mum and dad can help their children — even when they are teenagers — get a head start into the property market by buying a cheap property in the right location and let it sit there for 10 or 20 years and grow in value. Once the property is sold, the children will have a ready-made deposit without asking parents for help.  
Cheap properties below $250,000, and they don’t have to be in the city. And cheap properties because they “tend to pay for themselves, meaning the rent pays the interest on the loan, so any extra payments they make go directly off the principal of the loan”.
While this may be a great way to get the next generation started in property, there’s also a rising trend for adult children who are already property owners to dip into the bank of mum and dad besides the first-home buyers, according to Mortgage and Finance Association of Australia (MFAA) director and managing director of smart lending Melissa Gielnik in an article in www.domain.com.au earlier this year.
“In the past three years brokers across the MFAA network have witnessed a spike in requests for these types of loans and expect this trend to continue. Parental guarantee loans represent over 15 per cent of loans written for some brokers,” Gielnik said.
“As the housing market continues to grow parental guarantees are becoming more popular with upgraders allowing them to avoid mortgage insurance and therefore borrow a larger amount,” she said.
Housing is the single biggest asset class in Australia, worth an estimated $6.5 trillion across 9.6 million dwellings, according to CoreLogic. To put it in perspective, this is worth more than three times the value of Australian superannuation funds ($2 trillion) and more than four times the value of Australian listed stocks ($1.5 trillion).
But roping in parents to guarantee loan doesn’t come without risks, as Mamiza Haq, a lecturer in finance at The University of Queensland, points out in an article in <a href="https://theconversation.com/the-problems-with-relying-on-the-bank-of-mum-and-dad-33826" target="_blank">The Conversation</a>. 
The risk to lenders
Family-pledged loans can be categorised as non-conforming loans, an area where lenders seek to minimise the level of risk as much as possible. The Australian Prudential Regulatory Authority has outlined some guidelines for Authorised Deposit-Taking Institutions (ADIs) with regard to loans including a guarantor relationship (e.g. from a parent of the borrower) as these loans carry a greater risk. 
Inadequate bank supervision and poorly underwritten home mortgages led to the financial crisis, adds Haq. 
Sydney mortgage broker Elaine Lam explains in an article in The Australian that while “a family guarantee can be a useful tool that allows borrowers to finance property with little or no deposit, the procedure can be a risky strategy as it allows borrowers to buy property with no cash and no evidence of genuine savings, as long as the bank is satisfied the borrower can meet the ongoing loan repayments, says Lam. In the event the borrower defaults on the loan, the bank will come after the parents for any losses and costs that the bank incurs.
Consumer advocates also cite “lots of cases" where guarantors have been faced with the prospect of losing their home, adds Haq.
In the current uncertain economic climate with low wage growth and rising costs of living, parents must consider the risks of acting as guarantor, and all the legal responsibilities that come with it, before pitching in to help your children realise the ‘Australian dream’.
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Bank of mum and dad: Some pros and cons

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Geelong has regularly taken the top spot for Victorian regions with the highest auction clearance rates, according to CoreLogic.
Last week the region had an auction clearance rate of 80 percent amid its 52 auctions.
Now Leopold, Corio, Norlane and Lara have joined the top 30 suburbs where Terry Ryder has predicted house prices will take off this spring.
Hotspotting founder Terry Ryder listed Geelong suburbs Corio, Lara, Leopold and Norlane in his top rising markets in his spring Price Predictor Index.
Ryder recently described Geelong as the superstar of the Victorian property market.
The local paper, the Geelong Advertiser noted expansion of Leopold’s Gateway Plaza shopping centre, including Bunnings, Kmart and Aldi, was a catalyst for interest in the suburb, Allpoints agent Janet McIntosh said.
“People see us as a suburb with lots of extra facilities that’s got the potential to keep growing to become like another Waurn Ponds,” Ms McIntosh said.
New land estate Estuary sold out early this year, increasing demand in the suburb, Ms McIntosh said
“It’s very hard to get any houses under $300,000 now,” she said.
Leopold and Lara’s median house price is $380,000, the report shows.
<img src="/images/2016/10/27/14%20Teesdale%20Court.jpg" alt="">
A three bedroom home at <a href="https://www.realestate.com.au/sold/property-house-vic-lara-122910142" target="_blank">14 Teesdale Court</a> (above) was recently sold for $380,000.
Ryder sees Geelong as an affordable alternative to Melbourne.
Corio and Norlane, which were in July’s survey, have median prices of $240,000 and $222,000 respectively.
Overall Hotspotting listed eight Geelong suburbs that were rising steadily and another 12 suburbs were sales volumes were steady, outranking any council area in Melbourne.
<a href="/images/2016/10/27/Screen%20Shot%202016-10-27%20at%2012.59.42%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/27/Screen%20Shot%202016-10-27%20at%2012.59.42%20PM.png" alt="">
 
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Geelong outranks Melbourne in Hotspotting property location list

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APRA has told banks they should make sure new borrowers can repay their debts with mortgage rates of at least 7 percent.
The foreshadowed guidelines have confirmed already widely followed practice across bank mortgage lending.
The Australian Prudential Regulation Authority updated its industry guidance to ensure banks are "prudent" in managing risks in the $1.5 trillion mortgage market.
APRA is now being more specific in demanding minimum interest rates banks must use when approving customers for home loans.
It continues the crackdown commenced in late 2014.
While the banks advertise home loan interest rates well below 4 percent for new customers, APRA said a "prudent" bank would have an internal assessment rate of at least 7 percent.
APRA is also seeking banks must "scale" their cost of living indexes according to a borrower's income.
For instance, it says that even if a borrower does not have housing costs because they live with their parents, banks should still make a "reasonable estimate" of what their housing costs would be if they had to pay for housing.
The policy also specifies the minimum "haircuts" banks should make to non-salary income.
It says banks should apply a haircut of at least 20 per cent to non-salary forms of income – including bonuses, overtime, or rent from investment properties – when they are assessing a loan application.
The Australian Prudential Regulation Authority released for consultation revisions to Prudential Practice Guide APG 223 Residential mortgage lending to incorporate measures either announced by APRA in December 2014 or communicated to authorised deposit-taking institutions (ADIs) since that time.
APRA has also released for consultation with ADIs proposed new reporting requirements for residential mortgage lending data.
APRA does not expect the revisions to APG 223 to result in material changes to existing lending practices for ADIs.
The revised APG 223 does include more detailed guidance on the following areas:
<ul>
<li>quantitative serviceability parameters including the application of interest rate buffers and floors,</li>
<li>haircuts for non-salary income such as rental income,</li>
<li>treatment of interest-only loans and estimation of living expenses; and</li>
</ul>
other qualitative measures including meeting responsible lending obligations, monitoring serviceability policy overrides, and treatment of self-managed superannuation fund loans and other specific loan types.
Released on 5 November 2014, APG 223 summarises APRA’s expectations for sound residential lending practices, including guidance on addressing housing loan credit risk within an ADI’s risk management framework and applying sound loan origination criteria, verification procedures and security valuation methods, among other things. 
On 9 December 2014 APRA announced further steps to reinforce sound residential mortgage lending practices — the revisions to APG 223 incorporate the serviceability requirements that were announced in December 2014 and reflect APRA’s supervisory experience in the subsequent period.
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The inflation result the property market was waiting for

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