Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

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

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

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

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

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

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

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

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With Victorians heading to the ballot box this Saturday, the Coalition has pledged to bring in new laws to stop underquoting. But the plans have polarised many in the real estate industry.
The legislation would be introduced to Parliament next year if the government is re-elected.
The proposed legislation would move to ensure that the reserve price would be within the advertised range, make it mandatory to advertise houses with a listed price or price range and make it compulsory to include a reserve price when signing a sales authority with an agent.
Under the proposal, a reserve price could be changed up to three days prior to the auction and any change to the reserve price would need to be reflected in advertising for the property.
Agents that failed to adhere to the rules would face fines up to $29,000.
“The Australian dream is to own your own home, but over recent years underquoting has become a routine part of Victoria’s real estate market, leading to bitter disappointments for people searching for their own home,” said the Coalition’s plan.
Labor says that rather than introducing new legislation, existing laws that prohibit underquoting need to be properly enforced.
The Real Estate Institute of Victoria have <a href="/expert-insights/investing/victorian-election-real-estate-dramas-underquoting-and-election-stunts">not been positive about the announcement, calling it an “election stunt”</a>.
The REIV’s Enzo Raimondo said that, given the fine for underquoting is $29,522 at present and one of the initiatives is to impose a $29,000 fine for underquoting, he isn’t sure “what this government is playing”.
"My experience with the Napthine government is they don't do that, they work in blissful isolation of the industry ... and this is just an election stunt because everything regarding underquoting is already in place," Raimondo said.
SQM Research’s Louis Christopher is one who has vocalised his support for the plan.
"This is a positive development but the Victorian Liberal party, and I welcome this election promise. Let's hope they stay committed to this promise and they are not scared off by the protests of the REIV, who are unashamedly against this reform,” said Christopher.
The Victorian Coalition’s proposed crackdown has prompted Christopher to invite other <a href="https://www.change.org/p/the-honourable-matthew-mason-cox-mlc-nsw-government-make-it-compulsory-to-advertise-auction-reserve-prices-to-stamp-out-underquoting-and-dummy-bidding" target="_blank">supporters of ending underquoting in New South Wales to sign an online petition</a>.
In Queensland, laws to ban auction price guides in a bid to stamp out underquoting are set to come into force on 1 December.
Real estate expert <a href="/news/qld/dark-ages-descending-on-queensland-as-auction-price-guide-ban-defies-common-sense-john-mcgrath">John McGrath has called the Queensland price guide bans a move that could take the industry “back 50 years”</a>. However, the Real Estate Institute of Queensland has been in strong support for the changes.
 
 
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Victorian Coalition's planned underquoting crackdown stirs industry debate

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The Organisation for Economic Cooperation and Development (OECD) has advised the Reserve Bank of Australia to lift interest rates in the first half of 2015.
It would prevent housing prices rising to risky levels and then unwinding sharply, say the OECD.
The OECD’s semi-annual economic outlook from the Paris-based agency forecasts the Australian economy to expand at a below average 2.5% next year and recommends the Reserve Bank begin lifting interest rates from the second quarter of 2015.
Noting the cash rate at an historic low of 2.5% since August 2013, the OECD suggested persistent low rates were causing a “search for return” among investors.
“This requires close oversight of asset-market developments, particularly rising housing credit, which is now being driven by investors,” the OECD said, according to a Fairfax Media report.
“Further prudential measures on mortgage lending should be considered as a targeted means to cool the market, thereby heading off risks to financial stability,” the OECD says.
The think tank said "the momentum in property prices is uncertain and could unwind sharply.” 
“Any economy faces the risk that debt build-ups particularly from real estate and problematic loan origination, will lead to financial accidents with the real economy,” said Catherine Mann, the OECD’s chief economist.
 
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jchancellor-FAypfDUnLy

OECD advises RBA to lift interest rates and cool house prices in 2015

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The former High Court judge Michael Kirby and his partner Johan van Vloten have sold their Rose Bay, Sydney harbourfront home.
Selling within two weeks of its marketing campaign, it fetched more than its recent $10 million guide and Property Observer presumably gleans slightly closer to the initial expectations when listed in 2011 with overly ambitious hopes of $12 million.
It sold through Wayne Yates, of Laing + Simmons Double Bay.
Kirby bought the property on Dumaresq Road for $190,000 in 1976.
The modernist classic home, which has no heritage order, was designed in 1949 by the late architect Neville Gruzman for his aunt Mollie Lapin. He designed the Lapin House before he graduated.
Kirby and van Vloten have indicated they plan to downsize closer to the city.
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Michael Kirby's Rose Bay Gruzman-designed modernist classic fetches $10 million plus

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GUEST OBSERVATION
Most property investors usually aspire to building a portfolio of more than one investment property.
However statistics show that the large majority of Australian property investors (72%) own only one investment property – so what’s holding them back from buying more?
Most investors don’t understand the key seven steps they need to follow in order to set themselves apart from the average investor.
<ol>
<li>
The first step to building a property portfolio is to develop a long-term plan on how you will achieve your property aims. Creating and following a property investment plan is a simple yet effective way to help you reach your goals. Developing a well thought out plan is key to achieving success in any facet of life, whether it be in your career, sporting event or personal ambition, and property investment is no different. The aim of a thorough property investment plan is to outline what you have to do in order to achieve your goals in the shortest possible time. Your plan should cover your risk profile, current situation and financial capacity. From there you should develop a long-term plan identifying the types of properties that are suited to your portfolio, the estimated time frames you can achieve those goals and what steps you need to take to achieve them. It is also important to break those big goals into smaller steps and develop a specific action plan to achieve them. 
</li>
<li>
Once you have developed a plan, the second step is to organise your finances to enable you to purchase an investment property. Most banks and brokers do not know how to structure loans in order for property investors to build large portfolios. Make sure you deal with a broker who specialises with investors and who understands the dangers of cross collateralisation. 
</li>
<li>
The third step is to acquire your investment property. This part is crucial, as the performance of the property you choose will have a significant impact on the time frame you can purchase your next property. Choosing an investment property requires substantial research into markets around Australia and also detailed analysis of suburbs and the individual property. If you don’t have substantial time and energy to dedicate to the process, then consider using a buyer’s agent to help you. 
</li>
<li>The forth step in building a property portfolio is to look at ways you can add value to your existing property. Rather than wait for the market to increase in value, savvy investors look to add value to their properties through renovations or development, which speeds up the wealth creation process. </li>
<li>
The fifth step is to effectively manage your property to achieve maximum returns. Unfortunately, many investors will choose the cheapest property manager. Ultimately you get what you pay for and a good property manager should be up to date with market rent reviews and be able to give you advice on ways you can cost effectively add value to the property in order to generate higher rents. 
</li>
<li>
The sixth step is to work on your property education. If you have good advisors who can help you with the first five steps, then you don’t need to become an expert in property. However, it is still your money being invested and I’d always recommend you have some level of knowledge, as it will help you be more confident in your advisor’s recommendations. 
</li>
<li>
The seventh step is to regularly review your portfolio. Sometimes along your property journey you may find that some of your properties are no longer suited to your investment criteria, or the property is no longer a good investment. Too many investors hold onto unsuitable properties. A regular review and honest analysis will help you make the right decisions.
</li>
</ol>
If you follow the seven step strategy, then your next property purchase shouldn’t be too far away.
When you are ready to buy again, that’s the time to review and update your property investment plan and start the seven step process to help you continue to build your property portfolio.
Fast facts:
<ul>
<li>72% of property investors who own one property</li>
<li>18% of property investors who own two properties</li>
<li>5% of property investors who own three properties</li>
<li>2% of property investors who own four properties</li>
<li>1% of property investors who own five properties</li>
<li>1% of property investors who own six or more properties</li>
</ul>
Source: Australian Taxation office
Damian Collins is the founder and managing director of <a href="https://www.momentumwealth.com.au/" target="_blank">Momentum Wealth</a>, a Perth-based property consultancy that specialises in building the long-term wealth of its clients by assisting in the strategic selection, financing, acquisition, development and management of their investment properties.
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DamianCollins-BiwU8NaWEC

The seven steps to beat the odds and build a large property portfolio

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We are all living longer and that fact alone is having a big impact on the housing market as the population grows and ages.
However, it is the baby boomers that right now are shaping many areas of the housing market. As life expectancy among the boomers continues to rise, a more complex housing market is evolving.
There has been a 100% increase in the numbers of people living beyond 55 plus and a 150% increase in the numbers of people aged 75 plus. At the same time as the baby boomers age, their health has improved, and a longer life span is leading to pressures on aged welfare payments and health care costs. There are also longer term pressures building on how superannuation savings are managed and invested and how public pensions are funded.
As a result the traditional idea of retirement and retirement housing has shifted and continues to do so with some very dramatic consequences for the housing market.
Where and how the baby boomers live in retirement looks nothing like the retirement plans and hopes of their parents. The idea of moving to a sleepy coastal town, or traditional retirement village is being replaced with an appetite for lifestyles as diverse as living on a luxury liner (for the lucky few) or the more accessible idea of moving to a lifestyle resort with apartments and villas clustered around a golf course and access to a cinema, resort style pool and other amenities.
A key idea driving retirement living is the desire to stay connected. As people live longer and stay in good health they want to stay connected to family, the kids, the grand kids and lifelong friends, the idea of moving away from all of these connections has no appeal. Those living in retirement, or soon to retire, are no longer heading towards accommodation in clusters, they are aging in place and that means possibly staying longer in the current family home in metro, regional and country locations.
Existing homes are being renovated in greater numbers to accommodate their needs, by for example improving access to bathroom facilities and by reorganising accommodation so that stairs are eliminated.
Of course some people do move house, either trading up or down the price ladder and many new homes now feature a ground floor bedroom and bathroom. There’s also a continued trend towards boomers moving into CBD apartments, or apartments that a very well connected to local facilities. Sydney’s Double Bay and Bondi Junction are just two areas where this trend is evident. It’s all a part of being connected to the community and people's health care is also better managed when they are close to established medical facilities, a point not wasted on federal and state Treasurers.
More Flexibility Requires More Income
Recent federal budgets have started to directly address retirement issues, the retirement age is being increased, yes we are living longer, but we are also working longer by choice and by necessity.
As part of the housing equation income planning is now a central concern, people want to have more control when they retire and this is leading to a greater trend towards semi-retirement, with more lifestyle flexibility. By moving into retirement slowly, people are able to retain the family home longer, or plan their move to say a new apartment project, in an orderly fashion and possibly over a number of years. This is often an appealing solution for those who are asset rich, but cash poor.
If people do not want to sell their homes and move to fund part of their retirement income, staying local looks to be a long-term trend. Staying connected also means more boomers are looking for flexibility in their housing options and moving to semi-retirement may well have the impact of delaying the possible turnover of some existing housing stock. However it appears that it is quality of life that will drive retirement housing options. It is interesting to note that it’s the more highly paid who work longer and those that retire early usually do so not for financial reasons, but for health reasons as their ability to work is diminished.
Somehow that retirement cottage on the beach has lost its appeal, while a CBD apartment gains appeal and boomers weigh up how best to fund their future lifestyle and housing needs.
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pchittenden-eLqUUC8TWW

How Baby Boomers retirement plans are impacting the housing market

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Proposed changes to NSW's planning system are a step in the right direction, but there is still more to be done, according to the Urban Taskforce.
Urban Taskforce CEO Chris Johnson says: “Far more (improvement) is needed across the whole planning system.”
Johnson believes there are three major changes that can ideally improve the system.
“Firstly we need to have a much simpler planning system.
“Secondly we need to get rid of the street by street battles that are occurring in NSW by having code accessible projects. There is not nearly enough code accessible projects in NSW compared to Victoria and Queensland.
“The third thing is a revision of how approvals are occurring in NSW. There are 43 small councils in Sydney which think in very local ways and therefore are not supportive of change and new development.”
Johnson also said compared to other states, the NSW planning system is falling behind in promoting growth and dwelling approvals may be affected, with fears of the current high ratings declining.
“I detect that the planning systems in Queensland and Victoria are more supportive of growth but in NSW they are somewhat anti growth,” he said.
“While NSW is currently doing well in terms of dwelling approvals, this may not continue unless the planning system is made simpler.”
In the September 2014 quarter NSW approval ratings were down 6.7% on last year, according to ABS Building Approvals.
Pru Goward, NSW Minister of Planning believes these projects currently take too long to process.
“It is unreasonable for communities and industry to wait years for projects to be determined...we expect councils to assess development applications without delay, so we (the government) should hold ourselves to the same standards,” Goward said.
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owisniewski-RiYLqnXfKH

Three changes that could improve NSW's planning system: Urban Taskforce

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By the end of this year, the Housing Institute of Australia (HIA) expects construction will have commenced on 188,000 new homes – the highest level of housing starts since 1994.
20 years ago, housing construction hit its previous peak at 187,000 starts.
According to HIA's National Outlook for Spring 2014, housing starts are likely to decline in next few years after this year's peak. Next year is predicted to see 183,900 starts, with 177,300 for 2016, though these figures are still described as "elevated by historical standards".
<img src="/images/2014/11/25/hia-nov-25-one.jpg" alt="">
Source: HIA
According to HIA chief economist Harley Dale, growth in housing construction has been slower than previous cycles to gain momentum.
"The momentum culminating in this milestone has provided a substantial boost to Australia's economy at a crucial juncture in the cycle. Below trend economic growth and weak labour market outcomes would be considerably worse without the reach a new home building recovery is exerting into the broader economy," said Dale. He noted housing demand has been boosted by a number of factors.
"Record low borrowing costs have combined with other factors such as high net overseas migration to unleash substantial pent-up demand for new housing. These factors will keep the level of new homes commenced at historically elevated levels. However, what the economy needs is further growth in new home building over the next couple of years, but that will only occur as a consequence of taxation and regulatory reform," Dale said.
While construction on new dwellings has reached a historic high, renovations activity increased just 0.3% in 2013-14 from a 10 year low, according to HIA.
<img src="/images/2014/11/25/hia-nov-25-two.jpg" alt="">
Source: HIA
"Unemployment concerns, a lack of available credit, and an elevated household savings rate are but three elements in the current environment which mean there has not been room for a renovations recovery alongside new home building activity and existing property price growth," said Dale.
However, HIA does predict renovations growth will increase to more than 2% in the next three financial years.
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jrichardson-uRX5hFdKfN

Home building to hit 20 year record in 2014: HIA

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GUEST OBSERVATION
<a href="https://www.treasury.gov.au/ConsultationsandReviews/Consultations/2014/ILRB-2014" target="_blank">Proposed laws</a> to reform the insolvency industry are long overdue. Under the changes, liquidators will require a licence and creditors will be able to remove poorly performing practitioners. The reforms aim to improve consumer confidence in an area that has been <a href="https://www.afr.com/p/business/companies/keeping_the_liquidators_honest_uohZ6UPQRtS9XIQAilJzDP" target="_blank">plagued with controversy</a>. However, they still fail to meet the need for transparency around corporate insolvencies.
The industry already has a chequered history when it comes to attempted reform. Proposed changes stalled last year. Regulation of the industry has been the subject of <a href="https://www.ntu.ac.uk/nls/research/insolvency_journal/previous_editions/index" target="_blank">eight major reviews and inquiries</a> over the last 25 years.
In 1998 the <a href="https://www.alrc.gov.au/report-45" target="_blank">Harmer Report</a> outlined the shortcomings of the regulatory system governing insolvency practitioners. It cited failures within the industry to respond quickly to complaints against practitioners. Other criticisms included a lack of established professional conduct standards and ethics.
Practitioners' remuneration levels were also not determined nor reviewed by an industry board. Rather the market was relied upon to set reasonable fees.
Although a professional code of conduct now exists 25 years later, the same criticisms can still be made today. Successive reviews have made <a href="https://www.ntu.ac.uk/nls/research/insolvency_journal/previous_editions/index" target="_blank">similar recommendations</a> to tackle these shortcomings. Most of them still have not been implemented. The result is the insolvency industry is open to criticism of over-servicing, excessive fees and self-interest.
The largest 13 insolvency firms <a href="https://www.bankruptcy.net.au/docs/Senate%20report%20September%202010.pdf" target="_blank">comprise 39% of the market</a>. They may be more deserving of, but better able to deal with, such criticisms than smaller individual practitioners, which represent 29% of the market.
<h3>The industry overhaul</h3>
The planned changes aim to remove unnecessary costs from the insolvency industry. This should result in around $55.4 million per year in compliance cost savings. Submissions on these changes are due in late December.
Under what has been dubbed as a “user pays” system, they require liquidators to be licensed and to undergo continuing education. The result is the government can reap big fees in exchange for licences.
Registration must be renewed every three years. For this to occur, written evidence of adequate professional indemnity insurance and compliance with continuing professional education conditions must be provided. The circumstances where registration may be cancelled or suspended have been widened. These include any offence conviction involving fraud or dishonesty.
There have been highly publicised accounts of poorly behaving liquidators. <a href="https://www.propertyobserver.com.au/https://www.austlii.edu.au/cgi-bin/sinodisp/au/cases/nsw/NSWSC/2009/829?stem=0&amp;synonyms=0&amp;query=Ariff" target="_blank">Stuart Ariff</a>, who is serving a six-year jail sentence, provides the most notorious example. However, the Ariff case is considered exceptional and not reflective of the majority of insolvency practitioners.
A lack of licensing within the industry has not led to an increase in the number of badly performing insolvency practitioners. Rather, its absence has meant the small number of dishonest practitioners remains undetected. Licensing will increase public confidence in the industry.
Where creditors are unhappy with the performance of a liquidator, they will be able to remove that practitioner and appoint another. To do so, the majority of creditors in number and value must pass a resolution at a creditors’ meeting. No particular grounds for removal are required.
However, the former administrator may apply to the court to be re-appointed. The court may re-appoint the administrator if it is satisfied the removal was improper.
<h3>Increasing consumer confidence</h3>
These changes finally act on the unanswered criticisms of the Harmer Report. The regulation of personal and corporate insolvency regimes will now be consistent.
This will cut compliance costs across the industry. A system of licensing will maintain educational standards and experience. So does the ability to cancel or suspend licences. These measures increase consumer confidence in the professionalism and competence of the industry.
Yet more can be done. More public education about a liquidator’s role and the nature of the work is needed.
The changes also fail to address a common theme in previous reviews: there is no adequate and publicly available corporate insolvency data. This information is needed for effective policy making, public debate, regulation implementation and ongoing review. It is imperative that such data be independently collected, maintained and available to the public free of charge.
<img src="https://counter.theconversation.edu.au/content/33888/count.gif" alt="The Conversation" width="1" height="1">Jennifer Dickfos is lecturer in business law and corporations law at <a href="https://www.griffith.edu.au/" target="_blank" style="line-height: 1.3em;">Griffith University</a>.
This article was originally published on <a href="https://theconversation.com" style="line-height: 1.3em;">The Conversation</a>.
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JenniferDickfos-EWaQAER27W

Chasing money: Why the insolvency industry needs reform

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GUEST OBSERVATION
Melbourne is undergoing a profound shift. It’s a renaissance of sorts – yet, instead of the rebirth emanating from the centre of the city, all the action is happening on the city’s fringes and in nearby suburbs. 
Here’s why I believe this to be the case.
In the inner city, enormous towers are rising up at alarming speeds, often fuelled by offshore investment. In the long-term, these 100 plus level towers simply cannot hold their value as the sheer number of them has a diluting effect.
On the flip side, boutique projects on the fringes of Melbourne are proving to stand the test of time and really hold their resale value. They have enduring appeal for owner-occupiers who seek a great location close to transport and parkland. These buyers also appreciate the fact that they are buying into a smaller development that will be shared with other owners like themselves – instead of disconnected investors.
And, perhaps most importantly for the bank balance, these projects are unique. You want to buy into something that hasn’t been repeated 20 times in a similar area – a property that will retain its value into the future.
The key is to get in early when these one-of-a-kind projects are in their planning stages. By buying off the plan, you will secure a great investment and should reap significant monetary gains in the long-term.
<h3>Tips for off the plan purchases</h3>
Buying off the plan has its risks and it’s important to be as thorough as you can. Ask yourself key questions about what you’re after, and why; and seek advice at every turn. The more knowledge you have, the closer you’ll come to finding a property that ticks all of your boxes – now and into the future.
Here are my key tips for purchasing property off-the-plan:
<ol>
<li>
Know your borrowing capacity  Find out how much you can borrow, and make sure you’re comfortable with your debt level and the monthly repayments. 
</li>
<li>
Seek boutique, ideally located projects  For enduring value, seek out boutique projects in well-located positions, close to public transport, cafes, grocery stores, markets, parklands, gyms, or universities. 
</li>
<li>
Investigate the project developer  Look at their track record and ask around to get an idea of their reputation. 
</li>
<li>
Investigate the project builder  Find out about the building company (if different to the developer), paying particular attention to their track record for successful, on-time project delivery. 
</li>
<li>
Choose an experienced ‘off the plan’ conveyance  Not all conveyancers have experience in off-the-plan purchasing, so it is important to ask at the outset what their background is. If they haven’t worked in the off the plan space, look elsewhere. 
</li>
<li>
Read the contract of sale  Ask for the contract of sale and read it carefully. Pay particular attention to sunset clauses, defect periods/warranties provided by the builder, and estimates of body corporate charges. Ask yourself whether they are realistic or excessive. 
</li>
<li>
Know the size of development  Find out how many apartments are in the development, and ask yourself if you’re happy with the number. 
</li>
<li>
Review the fit out and specifications  Ensure that quality isn’t skimped in any area. Pay attention to everything – joinery materials, quality and brand of appliances, heating and cooling appliances, the energy rating, glazing properties, handling of refuse, ducting of exhaust, mechanical ventilation, and so on. If you’re unsure about any of these elements, seek professional advice. 
</li>
<li>
Consider car parking   Find out whether on-site parking is included, where the parking spaces are, or whether car parking is available on surrounding streets. 
</li>
<li>
Beware the ‘added extras’  While swimming pools, saunas and gyms sound great in theory, they can erode an investment’s return in the longer term because of excessive maintenance and upkeep fees.</li>
</ol>
Then, once you’ve bought off the plan and are enjoying your new home as an owner-occupier, I strongly encourage you to join the body corporate. Living onsite, you have a vested interest in the upkeep and smooth running of the building’s public areas – and can help to preserve the property’s value into the long term.
Damon Krongold is director of <a href="https://www.bellergroup.com.au/" target="_blank">Beller Project Marketing</a>.
Beller Real Estate has been part of the Melbourne property market for over 50 years.
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DamonKrongold-BsycV2puKv

Melbourne's boutique apartment renaissance: 10 tips for buying off the plan

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GUEST OBSERVATION
The recent <a href="/expert-insights/investing/pie-face-bakery-chain-collapses-into-administration">voluntary administration of Pie Face</a> has highlighted the uncertainty faced by franchisees if their franchisor goes into administration.
Here are 10 key risks to franchisees of insolvent systems:
1. The risk of little useful information
Many insolvency practitioners do not understand franchising and the nature of the franchise relationship.
Administrators will apply considerable effort to keep staff and creditors informed during an insolvency – the first to ensure they keep the business operating or provide access to records while the administrators sort out the business’ position, and the second to ensure continuity of key supplies. However, franchisees are generally given the bare minimum of information.
Because staff and suppliers are recognised as creditors, they are usually better-informed than franchisees, who may be circulated a form letter when the business is placed in administration, and then hear no further meaningful information until a sale or winding-up announcement is made. Franchisees of insolvent chains often learn more from the media about the future of their livelihoods than they do from the administrators.
2. Loss of consumer confidence
In previous franchise insolvencies such as that of book retailer Angus &amp; Robertson in 2011 and whitegoods retailer Kleenmaid in 2009, the loss of consumer confidence when the businesses went into administration was so great that it accelerated the final collapse.
Angus &amp; Robertson customers were outraged when administrators announced that gift vouchers (many of which were given as Christmas presents only a couple of months earlier) would no longer be honoured, prompting a consumer backlash. During this highly damaging PR, the remaining company-owned and franchised stores were expected to trade on as usual.
When Kleenmaid went under, its franchised and company-owned stores were besieged by angry customers trying to claim the goods for which they had collectively paid more than $25 million in deposits. In rare cases, some were able to buy their goods all over again in liquidation sales to ensure that their newly-built or renovated kitchens or laundries could be completed without further modifications, but many swore they would never buy Kleenmaid again, and actively campaigned against the brand in revenge.
3. Disruption to supply chains
Some franchise systems have preferred supplier arrangements, and others are the primary supplier to their franchisees themselves.
A manufacturer may supply its retail network of company-owned and franchised stores with the majority of their product lines. If the manufacturing facilities are scaled-back, closed or sold separately from the retail network, then a significant risk of disruption to normal supplies exists. A new buyer of the group could decide to close the factory and outsource manufacturing altogether, in which case it is likely that teething problems with a new set of arrangements could also result in supply issues for franchisees.
While it is possible for a franchisee to continue to operate when a franchisor goes bust in networks that have preferred supplier arrangements, the franchisee might find that creditors will become more risk averse and tighten their credit terms, insist on cash up front, or otherwise cap franchisee purchases to a low limit to reduce future risk.
4. Stock dumping
Franchisees of fashion accessory chain Kleins, which collapsed in 2008, found themselves selling goods at cost or below as the administrator sought to liquidate inventory held by the franchisor that could not be returned to suppliers.
In any group where the franchisor has embedded itself into the supply chain and provides inventory to the franchisees, there is the risk that administrators will seek to liquidate inventory as quickly as possible through the network to generate cash, and this may be done at the expense of franchisee margins or in breach of the brand’s established price positioning.
Either way, this can be damaging to a franchisee’s business.
5. Diminished franchisor support
Administrators will question all costs in a business, particularly labour costs. Franchisor head office staff who survived the franchisor’s descent into administration may still be made redundant by the administrators in an attempt to restore profitability and improve the saleability of the business as a going concern, but in doing so often reduce the very resources for which franchisees pay royalties.
Consequently, franchisees of an insolvent system might find that their field support officer has been let go, or now has two or three times more franchisees to support as his colleagues have left.
A reduction in field support is likely to occur concurrently with a reduction in marketing personnel and other head office functions that directly or indirectly provided support, meaning that franchisees will be left more and more to their own devices, and while some may see this as a good thing, it further exacerbates damage to the brand (and therefore, network value) as inconsistencies develop in the group.
At its worst, this could lead to open revolt by franchisees, as happened with Angus &amp; Robertson in 2011 when nearly half the franchisees sought to leave the group en masse while it was under administration.
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6. Pursuit of outstanding royalties
Administrators have no capacity to offset debts owed by an insolvent franchisor to its franchisees, against the royalties owed by the franchisees.
In other words, franchisees have to claim their debt owed by the franchisor like any other creditor, and end up with whatever cents in the dollar might be paid at some future point, but in the meantime must pay 100% of all outstanding royalties to the administrators on demand without argument.
If franchisors have allowed franchisees to fall behind in their royalty payments, administrators will ditch such arrangements and demand full payment immediately as they scrape together cash to keep the business afloat. Unfortunately, this can result in considerable financial pain to any franchisees who owe royalties, and whose business may also be struggling (the reason why they fell behind in their royalties in the first place).
7. Disclaiming of leases or other agreements
When Kleins was placed into voluntary administration in 2008, it was subsequently revealed that the franchisor held the leases on all the stores in the network, including the franchised outlets. Franchisees would then sub-lease the stores from the franchisor, to whom they would pay rent, and then the franchisor in turn would pay rent to the landlord (many of which were major shopping centres).
However, under this arrangement, the rents paid by the franchisees to Kleins were not being passed to the landlords, and the store rents fell behind.
When the administrators took control of the business, they exercised their unique power to disclaim (i.e. terminate) the leases, to reduce their ongoing liabilities in operating the business. The unfortunate byproduct of this action was that the franchisees in terminated outlets were suddenly left with two choices: close the shop and wear the losses caused by the premature ending of their business, or negotiate new leases directly with the landlords and attempt to continue trading.
Many chose to negotiate new leases with the landlords, but found this to be a double-whammy.
In some cases their rent increased because they were now independent operators, and no longer part of a national chain. In all cases, the franchisee would have had to find the cash to lodge the usual rental guarantee (up to three months rent in advance), plus invest in new signage and fitouts, etc, to trade as independents, while at the same time writing-off as unrecoverable large sums of money owed to them by the franchisor under Kleins’ unique income guarantee.
Administrators can and will disclaim leases and other commercial agreements if they feel it is in the best interests of the insolvent entity, even if it is not in the best interests of the franchisees.
However, the reverse does not apply to franchisees, who usually have no rights to terminate their franchise agreements even if their franchisor is in administration.
8. Loss of business value
It goes without saying that any franchisee who might have been planning to sell their business before their franchisor goes into administration will subsequently find it almost impossible to complete a sale until the system recovers from this emergency.
Such a recovery, if one is possible at all, could take years.
Even if the system does recover, a franchisee’s business in future may be worth less than it would have been prior to the administration. This loss of business value can cause major problems for franchisees who are heavily geared and may ultimately sell at a loss, or who planned to fund their retirement using the proceeds from the sale of their business, which may now be insufficient.
Unless franchisees themselves are creditors (which is rare), this loss of franchisee business value, or the imperative to maintain franchisee business value, is incidental to administrators whose sole focus is to maximise the returns to creditors.
9. Significant ongoing personal liabilities
If a franchisor collapses, franchisees may be left without a business to trade if their supply of unique products ceases to exist.
Because Kleenmaid stores sold only Kleenmaid products, when these were no longer available following the collapse of the franchisor, the stores could not switch suppliers and continue to trade.
If this occurs, franchisees may have no choice but to close their stores, while continuing to pay the significant ongoing costs of shop leases, business loan repayments, and chattel mortgages for shop fit outs, fixtures and fittings. These ongoing liabilities can be a blight that weighs down a franchisee long after the collapse of their franchisor.
10. Radicalisation of corporate culture
If a buyer is found for an insolvent franchisor, the new owner will inevitably want to put their own stamp on the business and make changes to ensure its ongoing survival.
The nature of the buyer, and the changes they will seek to implement, might clash with franchisees and appear at odds with the corporate culture under the former owners. For many franchisees, a change of ownership will require them to adapt to new management and new ways of doing things. These changes can be relatively minor, incremental and easily adaptable, or can be major, radical and disruptive to the organisational culture and brand values.
Conclusion
This is not an exhaustive list, but should give pause for thought to any existing franchisee concerned about the future of their network, any potential franchisee who needs to asses the risks of what might happen in a worst-case scenario, and any insolvency practitioner who might one day find themselves managing a franchise network in administration.
Most importantly, this list should also serve as a reminder to franchisors that an inability to adapt to a changing market and poor management has consequences for those around them, especially their franchisees.
Jason Gehrke is the director of the <a href="https://www.franchiseadvice.com.au/" target="_blank">Franchise Advisory Centre </a>and has been involved in franchising for 20 years at franchisee, franchisor and advisor level.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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