Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

&nbsp;

Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

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?

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

<html><body>
Investors have been told rent inflation was slowing, consistent with the increase in vacancy rates over recent years, according to the February Reserve Bank of Australia (RBA) meeting monetary statement.
The pace of national housing price growth slowed too noticeably in early 2014 but, looking through the volatility, appeared to have changed little since then, the RBA board meeting was told on Tuesday.
"Notwithstanding this, growth of housing prices remained strong over recent months, particularly in Melbourne and Sydney," the minutes said.
"At around 8%, housing price growth remains well above the growth rate of household incomes.
"Survey measures of housing price expectations declined in the December quarter and remain below the levels reached in late 2013.
"Most non-price indicators of housing market activity remain consistent with strong conditions in the established market, which should provide further support to consumption in the near term."
It noted the nationwide rental vacancy rate "has been gradually drifting up since the mid 2000s".
"Accordingly, rental price inflation has slowed, which, combined with strong housing price growth, has resulted in rental yields continuing to fall," the statement read.
HSBC Noted today's official statement from the RBA saw them revise down their GDP growth forecasts to 1.75-2.75% for 2015, from 2-3% previously. Growth is still expected to pick-up in 2016, to 2.75-3.75% (previously 2.50-4%). Underlying inflation is expected to remain around 2.25% in H1 2015, and they continue to expect it to be 2-3% beyond that, in line with their target objective. The statement was generally more down-beat about the pace of the ongoing rebalancing of growth, which appears to have been the reason for this week's rate cut.
The monetary statement noted consistent with the strong growth in housing prices, low interest rates and above-average population growth, there has been considerable growth in dwelling investment, which increased by 7% over the year to the September quarter.
It noted timely leading indicators point to further growth in dwelling investment in the December and March quarters.
"Dwelling approvals, particularly those for higher density homes, have stayed at a high level recently.
"Loan approvals for new dwellings increased by 5% over the year to November and the number of first home owner grants paid for new dwellings has continued to trend higher, increasing by 22% over the past year.
"Inflation in the housing-related components of the CPI remained moderate overall in the December quarter.
"Inflation in the price of new dwellings remained above the average of recent years, consistent with strong residential building activity.
"The RBA's liaison suggests that the upswing in residential construction activity has allowed some builders to increase margins over the past year or so.
"Combined with an increase in the cost of building materials, this has contributed to higher inflation in the prices for new dwellings.
"In contrast, rents inflation remained slow in the quarter, consistent with the increase in vacancy rates over recent years. Utility prices increased slightly, after falling in the September quarter due to the repeal of the carbon price."
The statement offered forecasts for consumption assuming that wealth effects continue to operate as they have done in the past and that there will be a further gradual decline in the household saving ratio.
"Consumption growth could be stronger than anticipated if conditions in housing markets strengthen, particularly in parts of the country that have seen less growth in house prices of late.
"If this is associated with a significant increase in leverage or a decline in lending standards, it could pose some risk to macroeconomic stability.
"However, another possibility is that ongoing buoyant conditions in housing markets will have less of an effect on consumption than previously.
"In particular, in recent years fewer households appear to have been utilising the increase in the value of their dwelling to increase their leverage or trade up.
"This possibility would imply that the saving ratio will be higher and consumption growth a little lower than expected based on historical experience.
"In addition, there is significant uncertainty around the size of the effect that the large changes in commodity prices, particularly oil prices, will have on household saving and consumption behaviour."
</body></html>

jchancellor-FAypfDUnLy

Investors warned national rental vacancy was drifting: RBA February statement

<html><body>
GUEST OBSERVATION
This week’s Reserve Bank interest rate move surprised virtually everyone, bringing the cash rate to 2.25%, yet another historic low.
Despite Australian Treasurer Joe Hockey suggesting the rate cut means “the shackles are off the Australian economy,” the cut is unlikely on its own to kick Australia’s GDP growth rate back to trend level. But with a little help from friends offshore and a light touch from APRA, the rate cut just might work.
Let us review for a moment how a lower cash rate can boost the economy – the so-called “transmission channels” for monetary policy. There are three. First, rate cuts change asset prices, including foreign exchange rates. Second, rate cuts should reduce the cost of capital, all else being equal. Third, rate cuts should increase the availability of credit from banks’ balance sheets. All three elements are important considerations in yesterday’s move.
Asset prices moved according to expectations, with the ASX rallying 1.4% on the news. The main game, however, was the exchange rate.
Pushing the dollar down
Many commentators have focused their attention on the AUD-USD exchange rate, which fell by 1.5 cents immediately after the rate cut. Was this the RBA’s main target? The AUD had already depreciated significantly against the US dollar, with the AUD-USD as of 2 February already 15% below its average over the first half of 2014. At AUD/USD0.7769 as of 2 February, the benchmark rate of exchange was very near the level that RBA Governor Glenn Stevens had indicated was desirable.
What had not moved perhaps as much as the RBA might have liked was the trade-weighted index, which measures the AUD against a basket of the exchange rates of our major trading partners. The TWI had declined only 10% relative to its average rate across the first half of 2014, making the AUD the unwilling strong man in a world of “currency wars” depreciation. The ECB’s decision in late January to engage in its own version of quantitative easing - which sent the AUD back up above the AUD-EUR0.70 level, may have been one of the straws that broke the camel’s back and contributed to this early rate decision.
As of Tuesday, the TWI had dropped to below 63 for the first time since July 2009. This is welcome relief. But it can only last so long as other major central banks outside the US co-operate by avoiding further easing of their own.
What is likely to prove more important - and more durable - is a lower cost of capital and the potential to spur investment through greater availability of banking credit to the economy. Here, too, the RBA needs help – from the Abbott government and APRA.
Getting credit flowing to business
There is not a great deal of evidence to date that a lower cost of capital – with a historically low 2.5% cash rate already in place for a year – has induced an increase in investment in the Australian economy outside the property sector. Capital expenditure by firms has been largely limited to the resources sector, and is now petering out.
The household savings rate remains high, while the debt-to-asset ratio has fallen. This suggests households are electing to increase their equity in current investments rather than using leverage to expand their investment portfolios.
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/71164/area14mp/image-20150205-28601-3e6u3t.png">
Within the property sector, credit continues to grow at a relatively rapid pace, with <a href="https://theconversation.com/infographic-how-exposed-are-australian-banks-30272" target="_blank">credit growth</a> for investment properties far outpacing the expansion of credit for other purposes - whether household or business. In 2014, credit to purchase investment properties appears to have accounted for about 35% of all new credit creation in the economy. No wonder critics worry that the RBA’s rate cut has the potential to stoke excessive leverage in the property market.
The question becomes whether there are other triggers that can be pulled to encourage more credit to flow into other types of investment in the Australian economy. Ideally, that would be a renewed expansion of business credit to support increased capital expenditure, and eventually business activity and employment.
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/71165/area14mp/image-20150205-28578-egik59.png">
The RBA cannot dictate that looser monetary policy be directed toward the business sector. But the Abbott government and APRA have in hand the tool to provide a not-so-gentle nudge.
Will the government act on Murray’s advice?
We are merely weeks away from the deadline for final feedback to the <a href="https://fsi.gov.au/" target="_blank">Financial System Inquiry</a>, led by David Murray. A key recommendation of the inquiry was to raise banks’ average internal ratings-based risk weights on mortgages to narrow the difference between the mortgage risk weights used by authorised deposit-taking institutions and the “standard” risk weights used by other institutions.
In shorthand, this recommendation would force the Big 4 banks to hold more capital against their mortgage books, making the mortgage-writing business relatively more expensive (and less attractive) from a capital perspective.
This recommendation makes sense. The post-2008 boom in investment property has been driven in part by investor demand – but also in part by the Big 4 banks being willing underwriters of residential real estate. This willingness has in turn been driven, at least in part, by the regulatory setting that makes mortgages one of the least capital-intensive – and therefore cheapest to produce – lending products in the Australian market.
Reducing this regulatory incentive to lend into the property market holds the potential to increase the appetite among the Big 4 for other types of lending, including business credit. It is a reform that the Abbott government and APRA can hang their hat on in 2015.
Amy Auster is deputy director at Australian Centre for Financial Studies.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>. 
</body></html>

AmyAuster-LX8uHdhTjE

How to multiply the rate cut impact and unshackle the economy: Amy Auster

<html><body>
An Echuca owner is selling a fleet of three paddlesteamers after 18 years of ownership.
Vendor Max Vulling initially purchased the paddlesteamers as a business venture, entering the Echuca-Moama tourism industry.
He says the paddlesteamers are one of the main attractions in the town.
The PS Canberra was built in 1912 at Goolwa in South Australia. The vessel launched in 1913 as S.S. Canberra, and was used continually until 2002, when it took a nine month break for a restoration.
PS Emmylou was commissioned by an expatriate englishman, Anthony Bromwell, and designed by Sydney based naval architect Warwick Hood. It was used as a private charter for the first couple of years of its life after its completion in 1982, before being used as a tourism vessell.
The third paddlesteamer, the Pride of Murray, was built in 1924 by Charlie Felshow at the Murray River Sawmills. The former outrigger barge is 82 feet, 6 inches long and 16 feet wide.
The sale of the fleet includes leases for all three vessels.
Handel Aubrey of Ray White Echuca is marketing the three paddlesteamers, with the sale including their leases.
"One's got overnight accommodation and all are fully licensed," says Aubrey.
"We anticipate that interest will come from business-minded buyers, people involved or interested in buying into the  hospitality and tourism industries as well as historical enthusiasts," Aubrey says.
 
</body></html>

jrichardson-uRX5hFdKfN

Historic Murray River paddlesteamer fleet on the market 

<html><body>
Creating a system can be quite simple and helps you achieve more in less time.
Not too long ago I met with one of my builders.  The builder and I started working together when I introduced a particular type of development and in a short period of time we’d already completed five projects together. But I knew we could still fine tune our process.  He’d had some recent staff changes, so it was the perfect time to gently tell him exactly how I wanted my developments to run. 
Before the meeting I prepared a draft procedures document which was based on the way we had been doing things up until then.
But it wasn’t until I started documenting pretty much everything we did that I realised how much was involved in this somewhat basic development strategy.  What started in my mind as a one pager has turned into four. It’s funny how we simplify in our minds a process because we’ve done it time and time again.  But when you really break it down in writing, you can see all the fine details.
Using a system or procedure keeps me on track with our projects .I now literally have a written system for everything I do.  It gives me something tangible to show to my clients and helps explain exactly what I really do when managing their development.   It’s also an important tool to use when training new staff as they have a documented procedure to follow.  
By the end of the meeting with my builder, we had agreed on a three very important changes that impact the bottom line of all my developments:
<ol>
<li>We changed our standard floor plan slightly to make it more cost effective to build, without reducing the size. Now I could offer my clients a cheaper build price that will not impact on the end value or rental return.</li>
<li>We changed the payment schedule so my clients would pay less in the first half of the build phase, saving them valuable holding costs.</li>
<li>We minimised choice to save time. By setting up standard inclusions plus a list of ‘optional extras’ it meant that clients would not feel overwhelmed by choice on fittings, fixtures and colour selections and we could manage this process faster moving to the next step and saving time.</li>
</ol>
I put the new system into action immediately and we started getting more done, in less time.  As they say, time is money.
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
This article previously appeared on Property Observer in June, 2014.
</body></html>

jochivers-wq5Bp59R5a

Creating a system for your development process will save time and money: Jo Chivers

<html><body>
Not The Block again hopefully!
An investor has paid $2,735,000, on a sharp 3.62% yield, for a fully leased, four level, apartment block at South Yarra in Melbourne’s inner east.
It was sold by Savills Australia.
There were six bidders for the 6-8 Mona Place property.
It comprises a strata-titled block of six, one bedroom, 62 to 68 square metre, apartments on a 323 square metre site zoned General Residential.
The property was sold fully leased to six tenants at a combined rental of $99,072 per annum. Rents for one bedders sit around $330 a week, having been at $130 a week in the mid-1990s.
Jesse Radisich said the marketing campaign had attracted more than 150 enquiries from potential purchasers and 30 personal inspections from local and off-shore investors and self-managed super funds.
There has been a <a href="/expert-insights/building/sydney-audiences-shun-the-blocks-lengthening-melbourne-residency">marked deterioration in Sydney metro viewers</a> for the latest series of The Block. Let's just hope this purchase isn't a continuation of the show's lengthening Melbourne residency. 
</body></html>

Six compete for South Yarra strata apartment block sold on 3.6% yield

<html><body>
GUEST OBSERVATION
The performing Sydney and Melbourne property markets are no secret. They are all over social media and the news.
And for those home owners and investors who have had the great fortune to see their property values skyrocket, what’s next?
Why not take advantage of the fantastic values currently on offer and tap into some of that equity and keep investing?
But what does “tap into our equity” actually mean?
Similar to when you purchased your property, the banks would only allow you to borrow up to so much of the value of that property. This is called your Loan to Value Ratio (LVR). Well, provided you can service the debt at the increased amount (make the repayments), the banks will allow you to increase your loan up to a certain LVR and use that cash for a deposit on an investment property.
The great part about that is, that the increased amount that you use as the deposit on another property is tax deductible, even though the banks used your home as security for the funds.
Why?
Purely because what makes a loan tax deductible is the purpose for which those funds were used.
Like usual, let’s number this out.  
Say three years ago your home was worth $600,000 and your home loan was $480,000. Your LVR is 80% because $480,000 is 80% of $600,000. But in the last three years your home has seen some great increases in value and it is now worth $850,000.
The banks will now allow you to increase your loan to 80% of $850,000. So your new loan would be $680,000. But you only owe $480,000 so there is $200,000 available for you in available funds, in your offset account or in redraw ready for you to use when you locate another property.
Now to keep your accountant happy, it is best to split the $680,000 into two loans, one split for $480,000 and the second as $200,000. That way your accountant can easily work out the interest on the loan that they can claim on your tax each year.
Obviously, this is how we would structure your loan and explain all this to you as we go.
At the same time as arrange the extra cash for you to use as a deposit, we would arrange a pre approval for you so that you could purchase an investment property.
Even if you have some extra money paid off your home loan, do not use this but instead continue to make the extra repayments on your home loan to pay this off first. Simply because this debt is not tax deductible.
You should restrict the maximum amount you aim to spend on an investment property, and that should be nowhere near the value of your home.
Even as a professional investor I don’t spend over $425,000 on a property. My last four purchases were for:
<ul>
<li>$410,000 – ACT</li>
<li>$40,000 – in the USA</li>
<li>$356,000 – QLD</li>
<li>$134,000 – Tassie</li>
</ul>
The advantages of spending less are:
<ul>
<li>Diversify</li>
<li>Less to lose, if by some chance everything turned pear-shaped (always invest with worst case in mind)</li>
<li>Potentially be able to invest in different markets and take advantages of different property cycles</li>
<li>Baby steps – especially if this is your first go, I see couples where one of them wants to invest much more than the other, and it’s not worth fighting over. You’ve only got one life and it ain’t no dress rehearsal. (Sorry if I just went all Dr Phil on you)</li>
<li>Yields are generally more attractive and the properties will pay for themselves</li>
</ul>
So back to the story, we have set up a pre-approval at the same time for you for a purchase price of $375,000. The loan would be for $300,000 which is an 80% LVR.
But there are some set up costs along the way to, for example:
<ul>
<li>Stamp duty – varies state to state</li>
<li>Legals to purchase</li>
<li>Building inspection report</li>
<li>Pest nnspection report</li>
<li>Depreciation schedule report – for tax purposes</li>
<li>Government charges</li>
<li>Buyers agent fees – because you will want me to buy you a property</li>
</ul>
The great thing here is that you can pay for all these from the $200,000 loan you have already set up.
Yep, that’s right nothing from your pocket and the interest these fees attract on that loan is also tax deductible.
Now to make that transaction work you only require around $100,000 and you have borrowed and extra $200,000, meaning you have the option later on to possible purchase a second investment property. But by tapping into the equity now whilst the values are high, could give you the option at a later date. When values go through a correction you may not get that privilege. And you only pay interest on the money that you have used, e.g. the $100,000.
Now, not everyone is in a position to tap into their equity and invest, as they may have borrowed 95% of the purchase price when they recently purchased.
What you may have been experiencing, is that there are some much better interest rates on offer. They can be as much as 0.5% better.
So what can be done about this?
Firstly, interest rates are now allocated as rate for risk, meaning those higher risk borrowers to the banks are not on the same interest rates as those borrowers who own 20% or more of their properties.
And this risk is judged on the value on the day that a valuer puts a dollar figure on your property. So as we have experienced some great growth in the Sydney and Melbourne property market, you may now find that you do own 20% of the property value now.
But be quick, because this great market isn’t going to stick around much longer and you want to capitalize on the maximum value you can achieve.
TODD HUNTER is buyer’s agent, director and location researcher for Sydney-based <a href="https://www.wheregroup.com.au/" target="_blank">wHeregroup</a>.
</body></html>

thunter-umjjMzoT8b

Time to tap in to some equity and keep investing: Todd Hunter

<html><body>
ANZ today announced it will lower interest rates for variable rate mortgages by 0.25% per annum following its monthly interest rate review.
Effective Thursday 12 February, ANZ’s standard variable rate will be 5.63% per annum (5.73% per annum comparison rate).
The 0.25% per annum decrease will save customers about $60 per month or $750 per year for the average home loan of $280,000.
“We’ve decided to move our standard variable rate for home loans down by 25 basis points which is the same as the movement in the Reserve Bank’s official cash rate," ANZ CEO Australia Philip Chronican told ANZ’s BlueNotes news site.
“We’ve tried to have a more open discussion with the community about bank funding costs. It’s true that wholesale funding costs have eased a little bit over the last year or so and that’s taken a little bit of the pressure off.
“Importantly the effective date for this change will be 12 February which is a full eight days earlier than most of our major competitors and I think that’s an important customer benefit,” Chronican said. 
He told News Ltd that he has concerns about the property market given cheap money.
“I am cautious because if you look at the big picture around the globe, this era of very cheap money has led to asset prices rising,” he said. “It would be nice to see some of the money … going into building new capacity, new construction, businesses expanding, rather than just seeing it all being used to bid up the prices of existing assets.”
</body></html>

ANZ last to announce cut, but first to deliver among big four

<html><body>
GUEST OBSERVATION
Eighteen lenders have so far announced rate cuts to their variable home loans since the Reserve Bank dropped the cash rate to 2.2%. 
It's great to see that all of the 18 lenders that have so far announced rate cuts will be passing on the full 0.25 percentage points, with Westpac dropping further, by 0.28 percentage points. In particular, <a href="https://Loans.com.au" target="_blank">Loans.com.au</a> lowered its variable home loan rates by the full 0.25 percentage points yesterday, securing its position for the lowest variable home loan rates on the market, from 4.23%. 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="205">
 Lender
</td>
<td valign="top" width="205">
 Rate cut
</td>
<td valign="top" width="205">
 Effective date
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/anz-aug-4-logo-breakout.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
12 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/bank-of-melbourne-aug-4-logo-breakout.png" width="200px">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
 <img src="/images/3_StockBreakouts/Company-Logos/BOQ-aug-13-logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
24 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
 <img src="/images/3_StockBreakouts/Company-Logos/banksa-logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
 <img src="/images/3_StockBreakouts/Company-Logos/Bankwest-Logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
 <img src="/images/3_StockBreakouts/Company-Logos/cba-aug-4-logo-breakout.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
 <img src="/images/3_StockBreakouts/Company-Logos/logo_Greater_Building_Society.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/heritage-bank-logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/hsbc-logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/ing-direct-logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/loans.com.au-logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
4 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/maitland-mutal-logo.jpg" width="200">
</td>
<td valign="top" width="205">-0.25%</td>
<td valign="top" width="205">
23 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/me-bank-aug-4-logo-breakout.png" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/nab-aug-4-logo-breakout.png" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/newcastle-pernamnet-logo.jpg" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
23 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/st-george-aug-4-logo-breakout.png" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/westpac-aug-4-logo-breakout.jpg" width="200">
</td>
<td valign="top" width="205">
-0.28%
</td>
<td valign="top" width="205">
20 February 2015
</td>
</tr>
<tr>
<td valign="top" width="205">
<img src="/images/3_StockBreakouts/Company-Logos/ybr-aug-4-logo-breakout.png" width="200">
</td>
<td valign="top" width="205">
-0.25%
</td>
<td valign="top" width="205">
24 February 2015
 
</td>
</tr>
</tbody></table>
Source: finder.com.au, ranked alphabetically. Dates may vary for some customers.
*Some loan changes may be effective from 15/3/15.
<a href="https://Loans.com.au" target="_blank">Loans.com.au</a> was also the fastest to pass on the interest rate cut, making its new rates effective immediately, sparking greater competition in the home loan market. This is in contrast to most lenders, which change their rates a couple of weeks later. 
In fact, we analysed effective rate changes by the big four banks (as they hold the majority of home loan market share) following every Reserve Bank cash rate movement over the past five years and found that they were faster to pass on a rate increase than they were to pass on a rate cut. The big four banks took 11 days on average to pass on a rate cut to variable home loan customers, yet managed to pass on rate rises in just seven days.
ANZ and Westpac both took the longest to pass on rate cuts to their customers, at 13 days on average. Commonwealth Bank took eight days, while NAB passed on rate drops at the quickest average of seven days.
Commonwealth Bank were quickest to pass on a rate rise, at an average of three days. Following them were ANZ and NAB (both eight days), then Westpac (nine days). This means Commonwealth Bank passed on rate hikes around five days earlier than any of the big four banks.
The longer a bank holds on passing on a rate cut, the more money they'll squeeze from Aussie pockets before finally adjusting their rates. So it's no surprise we're seeing them taking more time to pass on discounts.
Though the numbers are concerning, it's highly unlikely these tendencies are limited to the big four banks, which means it's up to every Australian borrower to know if they're being ripped off. A good first step is to understand how the cash rate works and keep track of the movements, and then try to negotiate a better deal with your lender. They'll want to keep you onboard so fight hard!
If that doesn't work out, <a href="https://www.finder.com.au/home-loans" target="_blank">comparing home loans </a>with other lenders is also a good option. In fact, there's a huge difference between what lenders are offering, with 5.12 percentage points difference between the cheapest variable rate home loan on <a href="https://finder.com.au/home-loans" target="_blank">finder.coma.au/home-loans</a> at 4.23% and the most expensive at 9.35%. 
The number of home loans on the market is continually growing, so compare other lenders and not just the big four banks to make sure you're getting the best deal.
The table below shows the lenders that have so far announced rate cuts and <a href="https://www.finder.com.au/rba-cash-rate" target="_blank">we will be updating</a> this page as we hear more announcements.
Michelle Hutchison is spokesperson for comparison website <a href="https://finder.com.au/" target="_blank">finder.com.au</a>.
</body></html>

mhutchison-SWt6qigzDX

Banks taking their time to pass on rate cuts: Michelle Hutchison

<html><body>
Back in November a little-noticed graph in Westpac’s 2014 profit result told an important story: the proportion of bad or worrisome loans on the banks books — in the jargon, stressed exposures as a percentage of TCE or total committed exposures — had dropped below 2008 levels, to 1.24%.
That is to say, Westpac had weathered the storm, the crisis was over. Rounding out the picture of a healthy bank were lower wholesale funding costs, higher net interest margins and record profits. And of course, Westpac and the other big banks had emerged from the crisis with much less competition from smaller and non-bank lenders.
<img src="https://media.crikey.com.au/wp-content/uploads/2015/02/tce.png" width="430" height="505">
Which is a roundabout way of saying the big banks did not have a leg to stand on when it came to passing on Tuesday’s 0.25 percentage point cut to the official cash rate by the Reserve Bank.
As though his life depended on it, Treasurer Joe Hockey made that crystal clear in his press conference yesterday afternoon, and you could hear the urgency in his voice on ABC Radio yesterday:
“The flow-through to the Australian economy is significant. And importantly, it must be immediate. And I say again to the Australian banks, pass it on in full now, not just to home owners, but importantly small business and credit cards as well.”
The Commonwealth Bank was the first of the Big Four to move, cutting standard variable home loan rates by 0.25 percentage points (and, interestingly, five-year fixed rates by 0.3 percentage points). Westpac quickly cut by an even higher 0.28 percentage points, and NAB, which has its rates under review, is certain to follow. ANZ customers will have to hold their breath since chief Mike Smith announced a year ago a stand-offish, stick-in-the-mud policy of waiting until Fridays (three days after the RBA meets each month) to announce any changes to interest rates, to stop bank-bashing treasurers, shadow treasurers and journalists berating the bank within seconds of any official rates move.
As they cut rates more or less in lockstep, however, the banks might be permitted a private grumble about mixed signals coming from the federal government and regulators. On one hand, David Murray’s Financial System Inquiry has just recommended the banks tighten home loan risk weights and retain higher levels of capital, to prevent another “too big to fail” moment requiring the kind of public bailout we saw in Australia with the bank deposit and wholesale funding guarantees or (much worse) in the United States, where the government spent trillions buying troubled assets and the Fed took equity stakes in the likes of Citigroup and Goldman Sachs to recapitalise them. The same pressure is felt internationally from the Financial Stability Board for example, and Australia’s big four — still among the world’s biggest banks — are key players in the debate.
Furthermore, the banks are being asked by Australian Prudential Regulation Authority (APRA) —  quite rightly, <a href="https://www.crikey.com.au/2014/11/03/bullying-banks-threaten-govt-over-price-signalling/?wpmp_switcher=mobile" target="_blank">as Crikey has argued</a>  — to toughen lending standards, particularly for those low- or no-deposit home loans originated by mortgage brokers on sales commission incentivised to maximise volume. As house prices surge — entering “new paradigm” territory with the likes of real estate agent John McGrath tipping that inner-Sydney suburbs will be “hot forever” — and self-managed super funds pile in, reducing housing affordability, right when income and jobs growth are receding, the systemic risk represented by some kind of house price slump increases. Tighter “macro-prudential” controls will hurt first home buyers struggling to get into the market, but they are necessary to stop borrowers over-committing on the false premise that prices only move in one direction.
On the other hand, despite this hawkish regulatory tendency, the second the RBA loosens monetary policy, we find ourselves screaming at the banks to “pass it on this instant!”. When it comes to the crunch, we all want easier money.
This story originally appeared on <a href="https://www.crikey.com.au/2015/02/04/hockey-bets-it-all-on-a-rate-cut-but-will-the-banks-save-his-bacon/">Crikey</a>.
</body></html>

po-LsXgBTHBmX

Hockey bets it all on a rate cut, but will the banks save his bacon?

<html><body>
National Australia Bank has followed the Commonwealth Bank of Australia and Westpac in cutting the interest rate on its standard variable home loan rate by 25 basis points.
It is the full amount of the RBA's cut, taking its standard variable rate to 5.63%.
This equates to a $62.50 a month saving for the average loan customer, said Gavin Slater, NAB's head of personal banking. 
National Australia Bank also reported unaudited cash earnings of $1.65 billion for the quarter, up 6% on the prior period.
</body></html>

Latest Expert Insights

The apartment feature many buyers don't think about, until their first missed delivery

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

The apartment feature many buyers don't think about, until their first missed delivery

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News