<p>An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.</p>

<p>The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.</p>

<p>The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.</p>

<p>Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.</p>

<p><img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" /></p>

<p>It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.</p>

<p>The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.</p>

<p><img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." /></p>

<p>Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.</p>

<p>&nbsp;</p>

<p>At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.</p>

<p><img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" /></p>

<p>The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.</p>

<p>The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.</p>

<p>Rebel had secured approval for the concept plans late last year.</p>


Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

<p>A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.</p>

<p>The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.</p>

<p><img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" /></p>

<p>Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.</p>

<p>At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.</p>

<p><img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" /></p>

<p>The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.</p>

<p>Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.</p>

<p>The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.</p>

<p><img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" /></p>

<p>The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.</p>

<p>Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.</p>

<p>Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.</p>


Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

<p>Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.</p>

<p>The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.</p>

<p>One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.</p>

<p>[smartcode_project:default project_id=7395 project_image_fid=278194]</p>

<p><a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.</p>

<p>"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.</p>

<p>"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."</p>

<p>[smartcode_project:default project_id=7395 project_image_fid=278196]</p>

<p>The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.</p>

<p>PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.</p>

<p>"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;</p>

<p>"Every apartment was to feel considered, timeless, and highly functional."</p>

<p>[smartcode_project:default project_id=7395 project_image_fid=278195]</p>

<p>Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.</p>

<p>Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.</p>

<p>The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.</p>

<p>"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.</p>

<p>"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."</p>

<p>[smartcode_project:default project_id=7395 project_image_fid=278204]</p>

<p>Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.</p>

<p>Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.</p>

<p>[smartcode_project_cta:default project_id=7395]</p>


Juliet to sit quietly amid Roseville apartment boom

<p>Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.</p>

<p><a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.</p>

<p>The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.</p>

<p>[smartcode_project:default project_id=150017 project_image_fid=370959]</p>

<p>“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.</p>

<p>The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.</p>

<p>[smartcode_project:default project_id=150017 project_image_fid=370964]</p>

<p>“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.</p>

<p>“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”</p>

<p>[smartcode_project:default project_id=150017 project_image_fid=371430]</p>

<p>Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.</p>

<p>Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.</p>

<p>The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.</p>

<p>LPS Group is expected to start construction later this year.</p>

<p>Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.</p>

<p>[smartcode_project_cta:default project_id=150017]</p>


Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

<p>Are mortgage holders set to get a reprieve from the RBA in 2026?</p>

<p>Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.</p>

<p>NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.</p>

<p>“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.</p>

<p>"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.</p>

<p>Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.</p>

<p>“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”</p>

<p>Dr Auld said inflation risks and labour market outcomes would be important to watch.</p>

<p>“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”</p>

<p>She said tighter financial conditions are expected to weigh on housing and activity.</p>

<p>“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”</p>


Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

<p>Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.</p>

<p>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;</p>

<h2>What is the Help to Buy Scheme?</h2>

<p>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.</p>

<p>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).</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

<p>To qualify for the Help to Buy Scheme, applicants must meet the following conditions:</p>

<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>

<p>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.</p>

<p>The scheme is expected to commence in NSW in late 2025, as part of a national rollout.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.</p>

<h2>New South Wales First Home Owner Grant</h2>

<p><strong data-end="252" data-start="225">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="413" data-start="389">Stamp Duty Benefits:</strong> Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.</p>

<h2>Victoria South Wales First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.</p>

<p><strong>Stamp Duty Benefits</strong>: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.</p>

<h2>Queensland First Home Owner Grant</h2>

<p><strong data-end="920" data-start="893">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="1162" data-start="1135">Stamp Duty Concessions:</strong> Provides additional concessions for properties valued up to $800,000.</p>

<h2>Western Australia First Home Owner Grant</h2>

<p>&nbsp;</p>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Concessions:</strong> Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.</p>

<h2>Australian Capital Territory First Home Owner Grant</h2>

<p><strong data-end="1617" data-start="1590">First Home Owner Grant:</strong> Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.</p>

<h2>South Australia First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Relief:</strong> Available for new homes and vacant land purchases.</p>

<h2>Tasmania First Home Owner Grant</h2>

<p><strong>First Home Owner Grant</strong>: Offers a $10,000 grant for new homes and off the plan purchases.</p>

<p><strong>Stamp Duty Exemption</strong>: 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.</p>

<h2>Northern Territory First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.</p>

<p><strong>Stamp Duty Exemption</strong>: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).</p>

<p><em>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.</em></p>


Every First Home Owner Grant for new property by state

<p>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.</p>

<p>Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.</p>

<p>Some systems assess individual building components, while others provide an overall rating for the entire structure.</p>

<p>A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.</p>

<p>NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.</p>

<p>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.</p>

<h2>What is NatHERS?</h2>

<p>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;</p>

<p>NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;</p>

<p>NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.</p>

<p>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.</p>

<h2>How NatHERS Ratings Work</h2>

<p>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.</p>

<p>The tools can model complex effects of building mass, insulation, window size, and other elements.</p>

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.</p>

<h2>Benefits of Higher NatHERS Ratings</h2>

<p><strong>Energy Efficiency:</strong> 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.</p>

<p><strong>Cost Savings:</strong> 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.</p>

<p><strong>Environmental Impact:</strong> 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.</p>

<p><strong>Improved Comfort: </strong>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.</p>

<p><strong>Market Value and Desirability:</strong> 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.</p>

<p><strong>Compliance with Building Codes:</strong> 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.</p>


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?

<p>Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.</p>

<p>Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.</p>

<p>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.</p>

<h3>Convenience and accessibility</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=114215 project_image_fid=204874]</p>

<p>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.</p>

<h3>Vibrant lifestyle and community</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=107714 project_image_fid=214122]</p>

<p>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.</p>

<h3>Potential for higher rental yields and property value appreciation</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=212887]</p>

<p>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.</p>

<h3>Enhanced security and maintenance</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=108019 project_image_fid=212658]</p>

<p>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.</p>

<h3>Live-work-play balance</h3>

<p>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.</p>

<p>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.</p>


alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

<p style="line-height: 1.38;">When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.</p>

<p style="line-height: 1.38;">Often the largest outlay, after the deposit which goes to the bank, is stamp duty.</p>

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

<p>Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.</p>

<p>It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.</p>

<p style="line-height: 1.38;"><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></p>

<h2>Who pays Stamp Duty?</h2>

<p>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.</p>

<h2>How much does Stamp Duty cost?</h2>

<p>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.</p>

<p>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!</p>

<p>Overall, the stamp duty you need to pay will depend on:</p>

<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>

<p style="line-height:1.38">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.</p>


Ellen Walker

Off-the-plan property explained: What is stamp duty?

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<p><span>Golly. My word there's some crappy economic data doing the rounds globally at the moment - the commodity markets smash-up continuing to take front and centre stage, while China's manufacturing activity gauge slumping to a 77 month low for good measure.</span></p>
<p><span>The commodity price exuberance was in part an echo of China's own property market largesse. Or if bubbles are your thing - and they seem to be all the rage these days - an echo-bubble of China's property bubble.</span></p>
<p><span>With stock markets in the business of tanking anywhere and everywhere from the US to the UK, Australia, China, Japan and...well, pretty much all over the show to be honest...perhaps it's no surprise that real estate is sifting back in favour togiven record low borrowing rates around the developed world.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Aussie stocks are well on track for their worst month since the global financial crisis having wiped close to 9 per cent off their value already in the month of August alone, while UK stocks have already meandered into correction territory.</span></p>
<p><span>On the flip side for British investment markets, the UK Council of Mortgage Lenders reported that UK mortgage lending has bolted to its highest level in seven years - since before the financial crisis fallout - at an estimated £22 billion for the month (where is the pound symbol on keyboards these days, by the way?).</span></p>
<p><a href="/images/2015/08/24/CML.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/08/24/CML.jpg" alt=""></span></p>
<p> </p>
<div>This is particularly noteworthy for Australian investors since the United Kingdom introduced macro-prudential measures of its own to its housing market back in 2014 in the form of the Mortgage Market Review (MMR).</div>
<div> </div>
<div>Now that the impacts of the MMR are already receding into the rear view mirror - and with interest rates still stuck at rock bottom at the effective "zero lower bound" - mortgage lending appears to be ripping higher again.<br><br>The key point here being that while macro-prudential markets may be designed to effectively slow the market, they don't take away the demand for property completely or permanently.</div>
<div> </div>
<div>
<em>Hometrack</em> noted that Cambridge, Oxford and the English capital city of London are continuing to lead the way in terms of capital growth over the past year, which will come to no surprise to readers of my book <em>Get a Financial Grip</em> from some years ago, of course. </div>
<div> </div>
<div><a href="/images/2015/08/24/UK.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/24/UK.jpg" alt=""></div>
<div> </div>
<div>
<span>What's more, the boom could be only just be </span><a href="https://www.telegraph.co.uk/finance/property/house-prices/11815503/House-prices-soar-in-major-UK-cities-and-this-is-just-the-beginning" target="_blank">in its infancy</a><span>.</span><br><br><strong><span style="text-decoration: underline;">Australia - 3 positives for property in 2016?</span></strong><br><br><div>Despite the implementation of macro-prudential measures in Australia whereby APRA will aim to cap investor lending credit growth at around 10 per cent per annum, there are three other forces which may conspire to see 2016 being a strong year for property.</div>
<br><div>Firstly, Assistant Treasurer Josh Frydenberg has <a href="https://www.afr.com/business/banking-and-finance/financial-services/josh-frydenberg-flags-no-ban-on-smsf-property-borrowing-20150820-gj4amh" target="_blank">reportedly</a> flagged that there will no banning of SMSF property borrowing, which could come as something of an upside surprise for capital city property markets, although those without substantial deposits may find real estate investment via their SMSF a tough proposition.  </div>
<div> </div>
<div>Secondly, does anyone else think that interest rates are on the "<a href="https://petewargent.blogspot.com.au/2015/05/the-long-slow-march-to-zero" target="_blank">long, slow march to zero</a>"? I can't predict the future, of course, but put it this way - I wouldn't be betting against it! </div>
<div>
<br>The cash rate futures implied yield curve suggests that markets area already looking for another interest rate cut to 1.75 per cent by the second half of 2016.</div>
<div> </div>
<div>It's hard to know where to start with commodity prices crash. The iron ore and coal correction, of course, has been one for the ages. Crude futures have hit upon a deadly slick.<br><br>"Dr. Copper" is testing 6 year lows and toying with financial crisis depths while lurking below US$2.30/lb. Precious metals are miles below their peaks...and on the list goes.<br><br>Ordinarily one might say that this will be bad news for property markets and investor sentiment, yet realistically with mortgage rates falling towards record lows and cash in the bank paying essentially nothing worthwhile after inflation, where else are Aussies going to invest their money?<br><br>Into our tanking and resources-heavy stock market? Hmm, not so sure about that.</div>
<br><div>Thirdly, with APRA targeting investor loans banks and lenders are likely to go all in on targeting owner-occupier lending.<br><br>HSBC are already now <a href="https://www.afr.com/business/banking-and-finance/owneroccupiers-targeted-with-interest-rate-deals-20150820-gj42mv" target="_blank">offering</a> variable rate mortgages from 3.99 per cent, with is just unbelievably cheap. We might expect to see other banks to follow suit. </div>
<br><div>
<em><a href="https://www.corelogic.com.au/" target="_blank">CoreLogic-RP Data</a></em>'s index shows that Sydney home values are up by 1 per cent in first three weeks of August alone and a stonking 18.2 per cent over the past year. It's turning into a monster property boom, with Sydney dwelling values now up by more than 50 per cent since 2012.</div>
<div> </div>
<div><a href="/images/2015/08/24/RPD.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/24/RPD.jpg" alt=""></div>
<div> </div>
<div><span>With Sydney inching closer to its market peak, investors are increasingly shaping up to scope out Brisbane for better value, with investor lending on a 12mMA basis now tracking at its highest level since April 2008.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/08/24/QLD.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/08/24/QLD.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div><span>Sure, APRA's investor lending crackdown will jam a stick in the spokes for a while, but meanwhile Queensland owner-occupier lending has also ghosted past five year highs on a 12mMA basis, after a subdued half decade. </span></div>
<div><span> </span></div>
<div><a href="/images/2015/08/24/QLD2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/08/24/QLD2.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<span>And remember the Queensland figures are being dragged down by any number of mining towns and regions which are experiencing negative demand i.e. recessionary conditions.</span><br><br><span>Brisbane could be the one to watch in 2016.</span>
</div>
<div><span> </span></div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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pwargent-M4siyDbqQY

Three positives for property in 2016: Pete Wargent

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<p>Almost 100% of the market analysis and media focus in real estate is devoted to the capital cities. But in two major states the regional markets are outperforming their capital cities.</p>
<p>And they’re not just any old cities that are being outdone by their country cousins. Sydney is one of them, which will amaze many people, and Brisbane is the other one.</p>
<p>I explained in a recent column why Sydney has passed its peak and is slowly losing its heat. You won’t be reading about it in mainstream media because journalists lack expertise and are reliant on press releases from research companies. And those research companies base their market analysis on median price movements. And median prices are six months behind the market.</p>
<p>The real story of markets is told by sales volumes. And sales activity has been gradually falling across metropolitan Sydney – to the extent that I count just 36 growth suburbs (compared to 114 six months ago).</p>
<p>Regional New South Wales has almost double the number of growth markets of Sydney. The momentum that started with regional areas close to the state capital – like Wollongong and Gosford – has spread throughout the state.</p>
<p>The Gosford LGA remains the most buoyant regional NSW market, followed by nearby Wyong. The Newcastle region – where the Newcastle, Lake Macquarie, Maitland, Cessnock and Port Stephens LGAs all have multiple growth suburbs – is also on a positive trajectory.</p>
<p>The Southern Highlands market has more recently sprung to life, with Moss Vale, Bowral and Mittagong all looking strong.</p>
<p>Further afield in NSW, Port Macquarie looks really good and the Tweed region at the Queensland border is joining the growth party. At the opposite end of the state, the twin cities of Albury and Wodonga on either side of the Victoria border are attracting growing attention from investors.</p>
<p>Dubbo continues to be one of the strongest regional economies in the state and the nation, while Goulburn and Orange also look good.</p>
<p>Everywhere I look in New South Wales there are markets percolating, without (with the exception of Gosford) having delivered price growth of Sydney proportions.</p>
<p>Brisbane is still producing plenty of growth markets, although the limelight has switched from the north to the south. While the Brisbane City Northside precinct was the first to burst into life with elevated activity and good price growth in 2014, the leading markets are now Brisbane City Southside and, a little further south, Logan City.</p>
<p>But there busy markets across Brisbane, with upwardly-mobile suburbs springing up in the Redland, Ipswich and Moreton Bay LGAs around the periphery of the metropolitan area.</p>
<p>And regional Queensland is matching the Greater Brisbane area for the number of growth locations. The regional action is headed by the Gold Coast, which continues to gather momentum and has now overtaken Logan City to be the No.1 LGA in Australia, in terms of the number of growth suburbs.</p>
<p>Fortunately, most of the growth markets in Gold Coast City are genuine residential markets – i.e. inland housing markets, rather than the high-rise precincts along the glitter strip. Let’s hope that’s where investors focus their attention, because the new mega towers will return the Gold Coast to its grand tradition of apartment over-supply.</p>
<p>The Sunshine Coast, which continues to progress as a more well-rounded regional city, is the next biggest growth market, while resurgent Cairns is still featuring strongly. </p>
<p>But there’s a new contender – the Fraser Coast region based on Hervey Bay is now producing more growth suburbs than Cairns and almost as many as the Sunshine Coast. Townsville is slowly spluttering back to life.</p>
<p>Toowoomba, which was the first regional city in Queensland to get on a growth path, looks to have had its run. This is demonstrated by the high number of “plateau” markets among the Toowoomba suburbs. The big infrastructure investment happening in and around the city should keep its market solid, but sales activity has undoubtedly tapered off in Toowoomba.</p>
<p>No other states have regional markets as prominent as NSW and Queensland, although there are good possibilities for investors in Victoria and Western Australia – but that’s another story.</p>
<p><em>TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
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terryryder-YECXbqmri2

Capital cities outdone by country cousins: Terry Ryder

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<div>
<span style="line-height: 1.3em;">APRA </span><span style="line-height: 1.3em;">released</span><span style="line-height: 1.3em;"> its latest property exposures figures for the June 2015 quarter today, which confirmed an ongoing surge in new housing loans. </span>
</div>
<div><span> </span></div>
<div><span>As at June 2015 the total of residential term loans to households held by all institutions (ADIs) was $1.33 trillion. </span></div>
<div><span> </span></div>
<div><span>In total this represented an increase of +$31.8 billion (+2.4%) from the prior quarter, and a solid increase of +$97.1 billion (+7.9%) over the year to June.</span></div>
<div><span> </span></div>
<div><span>There were a total of 5.4 million loans outstanding, with an average balance of $243,000.</span></div>
<div><span> </span></div>
<div><span><strong><span style="text-decoration: underline;">Investment loans surging higher</span></strong></span></div>
<div><span> </span></div>
<div><span>Investment loans totalled $518.3 billion, an increase of +$17.7 billion (+3.5%) from the March quarter and massive +$81.1 billion (+18.6%) from one year ago.</span></div>
<div><span> </span></div>
<div><span>That's huge, and well ahead of the rate that the regulator would or should be comfortable with.</span></div>
<div><span> </span></div>
<div><span>Interestingly while loans held by the major banks increased by +7.5% over the past year to $1,076 billion, loans held by other domestic banks increased by a much faster +18.8% pace to $155 billion.</span></div>
<div><span> </span></div>
<div>The major banks still accounted for close to 80 per cent of the domestic new housing loan market, however, with the remainder of the market comprising other banks, credit unions and particularly building societies.</div>
<div><span> </span></div>
<div>
<span>It should be noted that there have been a few issues relating to the reclassification of loans between owner-occupied and investment loans, with material revisions (&gt;10%) pushed through for the September 2014 to March 2015 quarters relating to ANZ and National Australia Bank.</span><br><span><br></span><span>You can see the jump in the chart below. </span><br><span><br></span><span>This has had the impact of accentuating the rate of increase in investment loans while dampening the growth in owner-occupier loans. </span>
</div>
<div><span> </span></div>
<div><span>In any case the trend in <strong>total </strong>loans outstanding since March 2008 has been more than clear, with total residential term loan exposures captured by this data more than doubling over that time.</span></div>
<div><span> </span></div>
<div><span>This is at least partly because the investor segment of the market often opts to amass new debt rather than paying loan balances down, particularly because Australia has prevailing tax legislation which encourages this behaviour.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/08/26/APRA1.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div><span><img src="/images/2015/08/26/APRA1.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>The data revealed that the overwhelming majority of new housing loans in the quarter at 89.3 per cent of new loans were of a loan to value ratio (LVR) of 90 per cent or lower. </div>
<br><div>As denoted by the pink area in the chart below there has been a surge in the number of borrowers using 20 to 40% deposits, now accounting for more than half of new housing loans in the last quarter.<br><br>This may imply that "cashed up" property owners with deep pools of equity are buying investment property at the expense of first time buyers who must save their deposits. </div>
<div> </div>
<div>More than one fifth of new loans in the quarter had a very low loan to value ratio of just 60% or lower.</div>
<div> </div>
<div><a href="/images/2015/08/26/APRA2.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/08/26/APRA2.jpg" alt=""></div>
<div> </div>
<div>
<div>Higher risk "low doc" loans continued to represent only a tiny fraction of the Australian mortgage market in the June quarter at 0.4 per cent.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Market risks</span></strong></div>
<div> </div>
<div>With very few low doc loans written and the overwhelming majority of loans being written with deposits ranging from 10 to 40 per cent, where lies the risk?</div>
<div> </div>
<div>After all, it is hardly as though the market is highly leveraged in aggregate with aro<span>und <span>~</span>$1.4 trill</span>ion of debt sitting against a stonking $6 trillion residential housing market.</div>
<div> </div>
<div>For my money, in terms of the residential mortgage market the answer is that the risk lies in the very high percentage and concentration of interest only loans, whereby typically no repayments are made against the principal in the first five years. </div>
<div> </div>
<div>It is true that loans with offset facilities are continuing to flourish, but nevertheless a whopping 45.8% of new housing loans written in the June 2015 quarter were of the interest only variety.</div>
<div> </div>
<div>Although only 4% of new housing loans in the June quarter were written outside serviceability, it would not be a surprise to see APRA looking more closely at the elevated percentage of interest only loans with renewed interest.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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</div>
<div> </div>
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Investment loans power on: Pete Wargent

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<p>On Wednesday I spoke at seminars in Sydney where I heard about a property investment strategy that is different in many respects to one I would pursue. But it<span>’</span>s a very good and successful one, nevertheless.</p>
<p>It reinforces a point about which I<span>’</span>m constantly aware: there<span>’</span>s no single strategy for property investment that can be called the right one. The best strategy for buying property and building a portfolio differs from one person to the next.</p>
<p>Here<span>’</span>s what David McMillan of Performance Property Advisory does on behalf of his clients. He and his team identify one market which, above all others, stands out as the one that offers the most value.</p>
<p>They focus exclusively on that market and devote big resources there to learn all they can, establish a network of service providers and be ready to move quickly when the right properties become available.<span style="line-height: 1.3em;"> </span></p>
<p>A core plank of the strategy is to buy in areas likely to show good growth in the first three years. Early growth creates the equity that helps to fund the next purchase and build the portfolio.</p>
<p><span>“</span>People can<span>’</span>t stump up a deposit of $100,000 or $150,000 every time they want to buy another property,<span>” </span>McMillan says. <span>“</span>So we buy them something for $500,000 that will be worth $650,000 in three years time. They build their portfolio using the equity that has been created.</p>
<p><span>“</span>Most investors only get as far as one property, because they make mistakes. Those mistakes are leveraged and amplified.<span>”</span></p>
<p>McMillan and his team has a track record of targeting future growth markets well ahead of the pack. They were buying in prime suburbs of Sydney in 2012, in advance of the three years of strong price growth that followed.</p>
<p>Once the temperature rose as the herd stampeded into Sydney, the PPA team exited. The properties bought for their clients in Sydney have grown 40% to 60% in value.</p>
<p>The next focus was Brisbane, with the emphasis on prime suburbs close to the CBD. They started buying there in mid-2013 and have bought close to 300 properties for clients. They<span>’</span>re now on the way out of Brisbane, as more investors come into that market, making it harder to find good-value investments.</p>
<p><span>“</span>We buy established property, not new property. New property is the most expensive way to buy real estate and the least effective way to grow a portfolio. We look for scarcity and we look for good quality property in good areas.<span>”</span></p>
<p>How do they know the right time to focus on a particular market? One of the key research tools is charting the relationship between prices and rents.</p>
<p>When Sydney had gone multiple years without significant price growth, but rents had grown considerably, they knew it was the right time to strike. <span>“</span>We want a location with price stagnation for 5-7 years plus a significant increase in rents,<span>” </span>he said.</p>
<p>An example was the top end suburb of Rose Bay. In 2012, the median price had grown only 15% in the previous eight years. But rents had grown 70%. According to the formula, that meant the suburb and many others like it in Sydney were primed for a growth spurt.<span style="line-height: 1.3em;"> </span></p>
<p><span>“</span>It was very clear what was going to happen in Sydney,<span>” </span>McMillan says.<span style="line-height: 1.3em;"> </span></p>
<p>McMillan offers three keys to successful investment:  buy in markets showing value, buy at or below the median price for the target region, and buy quality.</p>
<p><span>“</span>We won<span>’</span>t recommend a property to a client that we wouldn<span>’</span>t put in our own portfolio. If you don<span>’</span>t like it and wouldn<span>’</span>t live in yourself, then it<span>’</span>s probably not a good property to invest in.<span>”</span></p>
<p><span><em>TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></span></p>
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Charting the relationship between prices and rents: Terry Ryder

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<div>The ABS released its Construction Work Done figures for the June quarter, which showed total construction for the quarter rebounding by +1.6% to a seasonally adjusted $49.8 billion.</div>
<div> </div>
<div>Over the last year total construction remained at historically very high levels at $198 billion, although this is now down from a sky-high annual figure of $211 billion one year ago.</div>
<div> </div>
<div><a href="/images/2015/08/27/A1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/27/A1.jpg" alt=""></div>
<div> </div>
<div>
<div>As any good politician would, of course, smiling Treasurer Hockey immediately took to Twitter to claim credit for the rebound.</div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-MXXSPCW_nbQ/Vd49Y3e_dTI/AAAAAAAAXz8/ZfZZ5h_X5Ic/s1600/a9.jpg"><img src="https://4.bp.blogspot.com/-MXXSPCW_nbQ/Vd49Y3e_dTI/AAAAAAAAXz8/ZfZZ5h_X5Ic/s640/a9.jpg" width="640" height="178"></a></div>
<div class="separator"> </div>
<div class="separator">
<div>But in fact public infrastructure work has been very weak. </div>
<div> </div>
<div>Furthermore, against recent trends the rebound in the June quarter was not driven by residential construction either, rather it was a punchy quarter for engineering (i.e. resources) construction works, with expenditure rebounding by +5.6 per cent to a seasonally adjusted $25.6 billion.</div>
<div> </div>
<div><a href="/images/2015/08/27/a2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/27/a2.jpg" alt=""></div>
<div> </div>
<div>
<div>Despite this positive blip, engineering construction work done was -8.8 per cent lower than a year ago, and will doubtless resume its downward trajectory in due course, as considered in more detail below.</div>
<br><strong><span style="text-decoration: underline;">Mining rebound in WA</span></strong><br><div> </div>
<div>The driver of the engineering construction rebound was an increase in spend of nearly +$3 billion in Western Australia to $11.3 billion for the second quarter.</div>
<div> </div>
<div><a href="/images/2015/08/27/A3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/27/A3.jpg" alt=""></div>
<div> </div>
<div>
<div>In fact, anyone who was paying very close attention might have anticipated this.</div>
<div> </div>
<div>Recall that the so-termed "record trade deficit" in April 2015r actually included an <a href="https://petewargent.blogspot.com.au/2015/06/trade-deficitwtf" target="_blank">anomalous spike</a>in Western Australian imports from Korea. As I <a href="https://petewargent.blogspot.com.au/2015/06/trade-deficitwtf" target="_blank">noted at the time</a>:</div>
<br><div><span><em>"<span>No further detail is provided by the ABS, but given that there was a kahuna $1.5 billion spike in merchandise imports in Western Australia, and we can assume that this was probably related to a major mining project.</span></em></span></div>
<div><span><em> </em></span></div>
<div><span><em>In all likelihood, one might hazard that this was rail capex for Gina Rinehart's Roy Hill iron ore project (which typically a business would treat as an investment in a fixed asset for the generation of revenue streams, rather than trading expenditure)."</em></span></div>
<br><div>In all probability, therefore, the June quarter rebound was capex driven with a large asset purchase accounting for most of the spike.</div>
<div> </div>
<div>Moreover we can expect that the September quarter will see engineering construction work resuming its inevitable decline.</div>
<br><strong><span style="text-decoration: underline;">Building by state</span></strong><br><br><div>At the state level, Victoria has been the king of residential building across recent years.</div>
<div> </div>
<div>However New South Wales is now the one state which is benefitting from a material public sector and non-residential building contribution, thereby thrusting total building work done in the Premier State to its highest ever level in the June quarter.</div>
<div> </div>
<div><a href="/images/2015/08/27/A8.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/27/A8.jpg" alt=""></div>
<div> </div>
<div>
<span>Indeed, the New South Wales economy in generally is in very fine shape at the present time.</span><br><br><strong><span style="text-decoration: underline;">Residential building by state</span></strong><br><br><div>Looking at specifically residential buiding we can see that the +7.4 per cent year-on-year increase has been overwhelmingly a function of "other residential" building - which is to say, the construction of units, townhouses and apartments.</div>
<br><div>As denoted by the green line below, outside Sydney major renovations activity has been very subdued through this cycle.</div>
<div> </div>
<div><a href="/images/2015/08/27/A4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/27/A4.jpg" alt=""></div>
<div> </div>
<div>
<div>Although new house building has responded to low interest rates almost everywhere to a greater or lesser extent, the trend has been looking increasingly peaky over the past four quarters.</div>
<div> </div>
<div>Victoria continues to lead the way on the house building front, a state which appears to suffer less from greenfield land supply constraints than other states and territories do.</div>
<div> </div>
<div><a href="/images/2015/08/27/A6.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/27/A6.jpg" alt=""></div>
<div> </div>
<div><span>On the other hand the higher density sector building work continues apace, particularly in Melbourne, Sydney and Brisbane, which is a trend you can see everywhere from West End, South Brisbane, Fortitude Valley and Newstead (Brisbane), to Mascot, Wolli Creek and Zetland (Sydney). </span></div>
<div><span> </span></div>
<div><a href="/images/2015/08/27/a7.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/08/27/a7.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>The latest building approvals figures suggest that the cycle for unit and apartment approvals may also be set to peak in due course, thoughthe duration of higher density projects from approval to completion may run to several years.</div>
<div> </div>
<div>Consequently the elevated levels of building activity in this sector may have quite some way to run yet.</div>
<br><strong><span style="text-decoration: underline;">The wrap</span></strong><br><br><div>Overal this was a positive result for construction in the June quarter which masks an ongoing decline in resources construction that is locked and loaded for the next few years. </div>
<div>
<br>Residential building remains strong for the time being, but even here Australia can only build new apartment projects for so long.</div>
<div> </div>
<div>Of more significance will be today's capex intentions for the 2015/16 financial year, and specifically whether businesses are becoming more inclined towards investment plans.</div>
<div> </div>
<div>If not, in a nutshell, interest rates will have further to fall.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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</div>
<div><span> </span></div>
</div>
</div>
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Construction rebounds...for now: Pete Wargent

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<div>
<em>Residex</em> released its data and property market update to 31 July which showed house growth over the quarter accelerate to "an astonishing" 7.6% to be 21.2% higher over the year.</div>
<div> </div>
<div>As the below <em>Residex</em> graphic shows capital growth in Sydney has continued to outstrip by far that seen in other capital cities where average growth for the quarter was under 1%.</div>
<div> </div>
<div>Sydney median house prices have now blasted well past $1 million at $1,017,500</div>
<div>
<br>Regional house price growth was relatively soft across all states and territories on this index. </div>
<div> </div>
<div><a href="/images/2015/08/31/Resi1.jpg" target="_blank">Click here</a></div>
<div> </div>
<div><img src="/images/2015/08/31/Resi1.jpg" alt=""></div>
<div>
<div>Sydney unit prices also recorded very strong 6.6 per cent quarterly growth to be 15.2 per cent higher over the year.</div>
<div> </div>
<div>
<em>Residex</em> has also recorded very strong growth in rents for houses and units over the past twelve months.</div>
<br><span>On the other hand median prices contracted in resources capitals Perth and Darwin over the past year.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/08/31/Table_1_July_Stats_Summary2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/08/31/Table_1_July_Stats_Summary2.jpg" alt="" width="765" height="670"></span></div>
<div> </div>
<div> </div>
<div>
<div>These<em> Residex </em>updates are well worth a read.</div>
<div> </div>
<div>Discussed in this newsletter is how the increasing population density of Sydney may have contributed to outperforming capital growth.</div>
<div> </div>
<div>
<em>Residex</em> considers that strong captial growth in Sydney could continue for the next few quarters before stabilising at a high level.</div>
<div> </div>
<div>
<div>These<em> Residex </em>updates are well worth a read.</div>
<div> </div>
<div>Discussed in this newsletter is how the increasing population density of Sydney may have contributed to outperforming capital growth.</div>
<div> </div>
<div>
<em>Residex</em> considers that strong captial growth in Sydney could continue for the next few quarters before stabilising at a high level.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
</div>
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Astonishing Sydney boom accelerates: Pete Wargent

<html><body>
<p>The herd mentality and the FOMO syndrome drive far too many investment decisions in Australian real estate.</p>
<p>It helps to explain why most Australians who attempt property investment have a bad experience. </p>
<p>When people are driven by an impulse to do what others are doing (the herd mentality) or to get in because they don’t want to miss all that lovely capital growth they keep hearing about (the FOMO – Fear Of Missing Out – syndrome), they’re buying well after the boom started.</p>
<p>Many investors buy real estate at the peak of the cycle. Worse, some buy after the peak.</p>
<p>People are still out there bidding up prices at Sydney auctions, driven by the FOMO syndrome, unaware that the peak has passed and Sydney’s boom is fading.</p>
<p>It means that fundamentally they are paying too much and destroying their chances of maximizing capital growth.</p>
<p>No one ever got rich following the herd. Some have succeeded by leading the herd but the truly successful people are those who run in the opposite direction to the herd.</p>
<p>People love the comfort of the pack. They would rather be part of a herd stampeding towards a cliff, than detach and run in the opposite direction, towards safety and potential prosperity.</p>
<p>Because of the power of the herd mentality and the FOMO syndrome, most people buy when prices are high.</p>
<p>When the market is down, they stay out of the market. They’ll get back in when they read that the herd is running again.</p>
<p>Crazy stuff. </p>
<p>Right now, the Perth market is down. I’ve been suggesting to people it’s a great time to consider buying there. The Perth market, which was strong in 2011 and 2012, peaked early in 2013.</p>
<p>The heat has long since evaporated from that market, there’s no competition from other buyers, prices have eased off and the buying is good.</p>
<p>You just have to believe that the Western Australian economy has a future and that the Perth property market will rise again.</p>
<p>Taking a long-term view, Perth is a strong market with a great track record. Its 10-year capital growth record is the strongest among the state and territory capital cities, much better than Sydney’s or Melbourne’s.</p>
<p>It has a history of strong population growth and a buoyant economy boosted by its links to the resources sector. It’s currently struggling but that won’t last. </p>
<p>Perth has also shown itself to be resilient during periods of downturn. I don’t expect any major price decline in the current phase, with the exception of oversupplied inner-city apartment markets which should be avoided.</p>
<p>While awaiting recovery in the Perth market, the best strategy to maximise capital growth prospects is to follow the infrastructure trail. Find a location primed to benefit from spending on new infrastructure, especially transport infrastructure, and well-linked to major jobs nodes.</p>
<p>Locations with those qualities include the precincts around Rockingham, Fremantle, Midland and Forrestfield.</p>
<p><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
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The Perth property market will rise again: Terry Ryder

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<p><span>As at the week ending 25 October 2015, a total of 240,384 residential properties were listed for sale across the country.</span></p>
<p><span>Just over 40% of these (103,852) were situated in one of the 8 capital cities. In comparison to the same period last year, total listings are -2.6% lower nationally and -1.9% across the capitals. Relative to last year, the latest data also shows that the number of new listings being added to the market is lower, despite the number of new properties advertised for sale increasing on a rolling four week basis for the last four weeks.</span></p>
<p><a href="/images/2015/10/28/Table.jpg" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></p>
<p><span style="line-height: 1.3em;"><img src="/images/2015/10/28/Table.jpg" alt="" width="569" height="126"></span></p>
<p><span>Sydney and Canberra are the only two cities where the number of new property listings over the most recent four week period was higher than at the same time last year, albeit by only 0.3% in Sydney, and 3.7% across Canberra. </span></p>
<p><span>This result comes from 9,552 new listings added to the market in Sydney over the four weeks ending 25 October, compared to 9,526 one year ago and 720 residential Canberra properties added to the overall stock available for sale, compared to 694 over the corresponding four weeks one year ago. In all other cities the number of new properties listed for sale are lower relative to last year, with the largest differential seen in Perth (-22.4%), Darwin (-13.6%) and Adelaide (-12.0%). In particular, the data for Perth and Darwin indicates that home owners are likely aware of the weak housing market conditions and are therefore less inclined to put properties up for sale.</span></p>
<p><span>In terms of the total stock pool, across the residential capital city markets the results are more varied when compared to one year ago.</span></p>
<p><span><strong>There are more listings this year compared to last year in: </strong></span></p>
<ul>
<li><span><strong>Darwin</strong>, 1,581 currently, 1,389 last year (+13.8%)</span></li>
<li><span><strong>Perth</strong>, 19,284 currently, 17,423 last year (+10.7%)</span></li>
<li><span><strong>Sydney</strong>, 22,564 currently, 21,609 last year (+4.4%)</span></li>
</ul>
<p><span><strong>All other remaining capital cities are showing less stock availability this year relative to one year ago:</strong></span></p>
<ul>
<li><span><strong>Hobart</strong>, 2,494 currently, 2,907 last year (-14.2%)</span></li>
<li><span><strong>Adelaide</strong>, 7,646 currently, 8,335 last year (-8.3%)</span></li>
<li><span><strong>Melbourne</strong>, 29,948 currently, 32,574 last year (-8.1%)</span></li>
<li><span><strong>Canberra</strong>, 2,184 currently, 2,370 last year (-7.8%)</span></li>
<li><span><strong>Brisbane</strong>, 18,151 currently, 19,288 last year (-5.9%)</span></li>
</ul>
<p><a href="/images/2015/10/28/Combined-capitals.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/10/28/Combined-capitals.jpg" alt="" width="694" height="263"></p>
<p><span>Furthermore, last week we took a look at the current level of </span>housing supply<span> across each of the capital city markets. The analysis compares the absorption of stock by comparing the trend number of properties selling and the availability of stock for sale. The findings show that Perth and Darwin each have 6.8 months of housing supply on the market, the greatest of any capital cities, while stock levels in Sydney, Adelaide and Melbourne indicate less than 3 months’ worth of supply, showing that these housing markets are somewhat healthier than that of Perth and Darwin. On the flip side, Perth and Darwin’s market conditions are more favourable for those looking to buy a property with more choice and vendors becoming more willing to sell below the current list price to secure a sale.</span></p>
<p><a href="/images/2015/10/28/National.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/10/28/National.jpg" alt="" width="709" height="269"></span></p>
<p> </p>
<p><span>Across the states and territories, the number of listings is lower than one year ago in all but two regions; Western Australia, where current stock levels are 7.1% higher than they were one year ago and Northern Territory, where the number of listings currently is 14.0% higher than over the same period in 2014. </span></p>
<p><span>At the other end of the scale, the Australian Capital Territory (-8.0%) and Victoria (-6.4%) are the two regions with the largest differential in listing volumes compared to one year ago, however, interestingly new listings across the Australian Capital Territory over the four weeks ending 25 October were higher than one year ago (+3.3%), while across Victoria they were -4.3% lower.</span></p>
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smiller-vwPjRHTkST

Less stock added to the market than last year: CoreLogic RP Data's Shana Miller

<html><body>
<p><span>Bravo Eliza Owen of </span><em>On the House</em><span> for this fabulous time lapse video presentation of Sydney median house values over the past 35 years. </span></p>
<p>You can watch it <a href="https://www.youtube.com/watch?v=cC0xL24ecs0" target="_blank">here</a>.</p>
<div>There are a number of fascinating aspects to this piece, which suggested to me that home buyers and investors seeking long term capital growth should aim to buy in the best-located suburb that they can afford, and should also look for scarcity value.</div>
<div> </div>
<div>Bellevue Hill had a median price which broke through $200,000 in 1980 - around double Sydney's median house price at that time - yet the median house price in the suburb has exploded to $4.2 million today, more than four times the median house price in the harbour city.</div>
<div> </div>
<div>How so? A combination of a lack of new building - the result being scarcity value - combined with gross income and equity growth, with buyers and wealthy residents at the premium end of the market rarely reliant upon linear salary income for their house purchases. </div>
<div> </div>
<div>Other well located inner suburbs have demonstrated massively strong price growth as they have gentrified. </div>
<div> </div>
<div>Note how housing booms and corrections have been recurrent and have repeatedly been characterised by massive boosts in price in locations close to the city, with suburbs on the north shore and close to the water leading price booms and the western suburbs lagging behind.<br><br>Being located near a train line with a direct city link can help, particularly it seems on the north shore (cf. Killara, Gordon, which have historically led price growth in previous cycles).<br><br>On the other hand being in an industrial suburb under a flight path, historically at least, has been a negative, with inner western suburbs such as Mascot having lagged through the cycle. </div>
<div> </div>
<div>Due to this disparate nature of capital growth which has favoured suburbs closer to the city, the <em>On the House</em> figures show that today there is a significantly wider range of median house price values by suburb across Sydney than there was in the past.<br><br>I expect this widening of prices to continue. </div>
<div> </div>
<div>With a good deal of building having taken place on Sydney's outer south western fringe, median home values have increased sharply in that sub-region since 2011.</div>
<div> </div>
<div>However, recent auction results (or more accurately, should one say, the dearth of positive results at auction, with the outer south west recording a worrying preliminary clearance rate of "n/a" this week) suggest that a sharp correction could be in the post for that sub-region.</div>
<div> </div>
<div>Very interesting stuff.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
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35 years of Sydney house prices: Pete Wargent

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<p>Now, more than ever before, is the time to seriously consider and pay close attention to what your real estate agent promises you.</p>
<p>Don’t be too complacent and think that most agents actually care about your best interests. Most realtors wouldn’t shout you a cup of coffee, if it means actually putting their hand in their pockets to accommodate your needs.</p>
<p>No, this isn’t a rant about Vendor Paid Advertising (VPA). We’ve already had that discussion.</p>
<p>This article is about making sure, your agent, is looking after your best interests. Your interests when they suggest that your property is best marketed; via an auction campaign.</p>
<p>Below are some simple steps to follow and questions to pose to the agents that are hell-bent on auction strategies.</p>
<p>In this instance, the focus is on the auctioneer, more than the listing agent that wants to sign you up. Or in some cases: stitch-you-up.</p>
<p>Questions you need to ask about the auctioneer:</p>
<p>1)     Price: Is the auctioneer the cheapest in the area?</p>
<p>2)     Performance: How well does he/she perform?</p>
<p>3)     Pre-auction inspection: Will they actually come to view the home before the day of the auction?</p>
<p>4)     Price</p>
<p>Like everything, pay peanuts and you will get monkeys. But sometimes in the auction game, you also get very expensive baboons.</p>
<p>The key here is, don’t just base the decision on the criteria of “price”. Base your decision, in collaboration with the other two points, as well as price.</p>
<p>Performance</p>
<p>To help you better gauge the caliber of the individual that will have control of the sale on the day, make time to see them in action. Do it first hand and don’t rely on what their mate, the real estate agent, tells you about them.</p>
<p>Pre-auction inspection</p>
<p>I find it difficult to grasp the belief that an auctioneer, that has 5-9 properties to auction off in a period of 5 hours, can actually perform to their best of their ability on the day.</p>
<p>What I have seen is, most auctioneers stumbling and running late from appointment to appointment in Saturday traffic-jams in Sydney.</p>
<p>Their complacency, may have worked for them as people are prepared to pay 20-30% above the odds in a hot market; however, the tide has turned. Clearance rates are dropping weekly and rapidly.</p>
<p>You may be about to give a fool, the reigns of what is your most valuable asset. Think twice before you do. Perhaps the following points will assist you with your decision.</p>
<p>Foolish things agents and auctioneers do when they are under pressure</p>
<p>1)     Run an auction when no one has actually registered nor has anyone requested contracts prior to day of auction. I witnessed one last week. It was disastrous for     the vendor.</p>
<p>2)     Advertise low price-guides to draw a crowd only to pass the property in at the low price-guide.</p>
<p>3)     Calling vendors bid low, believing this will stimulate the bidding. I see this occur over and over again, and auctioneers do this even when the reserve is 15%-25% higher.</p>
<p>The common outcome: property is passed in at vendors bid and therefore, devaluing the potential of the property.</p>
<p>4)     Auctioneer not properly informed, if at all, about material facts such as; easements and covenants, development potential, history and not knowing in detail about the property.</p>
<p>5)     Auctioneers, thinking more about the traffic conditions they will encounter travelling to the next property, than the actual sale at hand.</p>
<p>6)     Agents and auctioneers conducting room auctions with 3 or more properties. Again, may have worked in a hot market, however, this is suicide for the vendor in normal circumstance.</p>
<p>Prevention is better than cure</p>
<p>To understand why agents are pushing auctions, you need to have a behind the scenes peak. Most real estate training manuals simply state:</p>
<p>“…Auction campaigns, gives the agent a definitive sales date. One that vendors and buyers are locked into… and you’re guaranteed your commission”</p>
<p>The above would be perfect if it also meant two outcomes:  first, the sale achieves the best price and second, the agent was ethical about the entire campaign. </p>
<p>If your agent’s recommendations of an auctioneer does not meet the above criteria and what you hear and see on the video; you may well lose tens if not hundreds of thousands of dollars.  Then again, ask yourself, is your property that unique to go to auction, and is it really the best strategy.</p>
<p>Happy selling. </p>
<p> </p>
<p><em><span>EDWIN ALMEIDA</span> is licensee in charge of <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"><br></a></em></p>
<p><em>He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.</em></p>
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New apartments

New townhouses

News