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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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A self-managed superannuation fund has paid $1.4 million for St Kilda Indian restaurant premises.
It reflected a 5.3% yield given the property, at <a href="https://www.realcommercial.com.au/property-retail-vic-st+kilda-501218879" target="_blank">194-196 Barkly Street</a>, is leased for five years with one five-year option, at $77,070 a year.
The property is 90 square metres. 
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St Kilda restaurant premises sells to SMSF at 5.3% yield

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The historic Vue Grand hotel in Queenscliff remains listed through James Gladman of Fletchers .
It is tipped to attract interest <a href="https://fletchers.net.au/2123813/46-hesse-street-queenscliff" target="_blank">between $4 million to $4.5 million</a>, a price range unaltered over the past four years. 
The 32-guest bedroom property was built in 1881.
The hotel, with conference rooms and a rooftop bar, captures views to the Sorrento ferry.
The 1950-square-metre Hesse Street block could continue as a boutique hotel but it is also being marketed for its residential development potential.
There is planning permit in place for a four-level extension on the current manager's residence site, providing additional accommodation, a day spa, further conference facilities, a lounge and bar.
 
 
 
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Vue Grand Queenscliff still offered with residential potential

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Former Cronulla Sharks chairman and rugby league player Glenn Coleman has pocketed millions on his Canterbury development site.
Coleman sold the <a href="https://www.raywhite.com/nsw/canterbury/1163374/" target="_blank">Broughton Street property</a> for $7.5 million having bought it from State Rail for $140,000 in 1992, with added further to the site the following year, paying $265,000. It was sold to a local developer, Buildform.
A 1,405 square metre parcel has development approval from Canterbury Council for a seven-level residential apartment building. The site is adjacent to Canterbury railway station in Sydney’s south-west.
It sold through Marcello Bo and Peter Apostolou from Ray White Project Di by auction at the rooms at AuctionWORKS in the Sydney CBD, in conjunction with Ray White  Commercial NSW Managing Director Jeff Moxham. 
 
David Scholes, founder and principal of auctionWORKS, was presented with the top prize at the Real Estate Institute of NSW’s annual awards for excellence, this month.
 
David Scholes received the Woodrow Weight Award for outstanding service to the industry.
 
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Canterbury development site sold 

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Three Pillars has launched the final stage of Martha Cove, on the Mornington Peninsula.
The launch coincided with the completion of the first Harbourside homes, which include an offer of boat berths.
The Harbourside precinct of the  <a href="https://threepillars.com.au/portfolio-type/harbourside-martha-cove/" target="_blank">$650 million 94 hectare development in Safety Beach</a> has sold 175 homes since construction began in July 2013.
The development was previously brought out of receivership by Three Pillars, PPB Advisory and KordaMentha. Three Pillars have been in control of the Harbourside precinct, now launching this fifth stage.
Core Projects, the selling agents for the development, have already sold out the first three stages. A small number of lots remain in stage four, explains Three Pillars director Tom Hoogenbosch.
“The fifth and final stage is one of the last chances to secure a Harbourside Terraces address and a 15% saving on a berth at the estate’s safe boating harbour,” Hoogenbosch said.
“What’s great about this release is that, despite being the final stage, we’ve held onto some of the best floor plans and saved them until last.”
The properties released in this stage are 31 townhouses, ranging from 156 square metres to 187 square metres, over two- or three-storeys with three or more bedrooms. They include double garages and balconies.
Under an exclusive arrangement, they have been designed by Malcolm Elliott Architects and built by Edgepoint with six-star energy ratings, communal pools and barbecue areas, back to base security and landscape gardens.
They are priced from $449,000 to $519,000.
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Final stage of Victoria's Martha Cove launched, including boat berths

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Governor Glenn Stevens' statement:
At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent. 
Growth in the global economy is continuing at a moderate pace. China's growth has generally been in line with policymakers' objectives, though some data suggest a slowing in recent months. Weakening property markets there present a challenge in the near term. Commodity prices in historical terms remain high, but some of those important to Australia have declined further in recent months.
Volatility in some financial markets has picked up in recent weeks. Overall, however, financial conditions remain very accommodative. Long-term interest rates and risk spreads remain very low. Markets still appear to be attaching a low probability to any rise in global interest rates or other adverse event over the period ahead.
In Australia, most data are consistent with moderate growth in the economy. Resources sector investment spending is starting to decline significantly, while some other areas of private demand are seeing expansion, at varying rates. Public spending is scheduled to be subdued. Overall, the Bank still expects growth to be a little below trend for the next several quarters.
Labour market data have been unusually volatile of late. The Bank's assessment remains that although some forward indicators of employment have been firming this year, the labour market has a degree of spare capacity and it will probably be some time yet before unemployment declines consistently. Growth in wages has declined noticeably and is expected to remain relatively modest over the period ahead, which should keep inflation consistent with the target even with lower levels of the exchange rate.
Monetary policy remains accommodative. Interest rates are very low and have continued to edge lower over recent months as competition to lend has increased. Investors continue to look for higher returns in response to low rates on safe instruments. Credit growth is moderate overall, but with a further pick-up in recent months in lending to investors in housing assets. Dwelling prices have continued to rise over recent months.
The exchange rate has declined recently, in large part reflecting the strengthening US dollar, but remains high by historical standards, particularly given the further declines in key commodity prices in recent months. It is offering less assistance than would normally be expected in achieving balanced growth in the economy.
Looking ahead, continued accommodative monetary policy should provide support to demand and help growth to strengthen over time. Inflation is expected to be consistent with the 2–3 per cent target over the next two years.
In the Board's judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to be a period of stability in interest rates.
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Dwelling prices have continued to rise over recent months: Glenn Stevens' governor statement

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The Reserve Bank of Australia (RBA) has kept the interest rate on hold today at 2.5%. Interest rates have remained at a record low since August 2013.
ME Bank general manager markets, John Caelli, said that the focus from the RBA remains on providing conditions to support business investment and unemployment, with other options for dealing with house price increases.
"The RBA has flagged that measures other than interest rates may be more appropriate to address the issue of house prices," said Caelli.
RP Data head of research Tim Lawless noted that softer readings for housing market conditions over September may have eased some of the concerns that the RBA held about the property market, however the trend does remain strong.
While a 0.1% growth figure was recorded across the capitals for the month of September, the quarter still recorded a 2.9% increase.
He said it will still be important to monitor the trend rate of growth across Sydney and Melbourne.
"Investor interest in these markets has been significant compared with other capital cities and compared with historical ratios of owner occupier loans to investor loans," said Lawless.
"If investor interest in these markets doesn't moderate we can expect the RBA, in conjunction with APRA, to intervene via prudential regulation of the banking sector to attempt to slow down the level of investment lending activity in the market," he said.
This intervention, he suggests, may be higher risk ratings or capital for investment loans.
"In any event, the goal would be to slow the level of speculative investment across the housing market, particularly in Sydney and Melbourne, alleviating the pressure on the RBA to raise interest rates in order to dampen housing market conditions," he said.
Michelle Hutchison, money expert for Finder, noted that all the experts recently asked in their Reserve Bank Survey said that they are expecting a rise on the cash rate next year.
"With a cash rate rise on the horizon, it could be a good time for borrowers to take advantage of the mortgage season promotions currently available by home loan lenders, which could help them get onto the property ladder so they can start preparing for rate hikes ahead," she said.
"We're also still seeing home loan interest rate movements, with 94 fixed home loans that saw reduced rates by as much as 0.70 percentage points over the past month, and 23 fixed rates increased by up to 0.30 percentage points. Interestingly, 27 variable rate home loans have fallen in the past month, by up to 0.30 percentage points from ANZ, My State, IMB, Bendigo Bank, Resi, Suncorp Bank, Wide Bay Australia and State Custodians."
She noted that it's a good idea to compare home loans and promotional offers available, but to be wary of the fees involved.
Caelli noted that today's announcement of a stable rate would be welcomed by borrowers, with a recent ME Bank survey recording 49% paying down their home loan faster with additional payments. Despite this, 42% said they were just managing to pay the minimum requirement.
"While any future rate increases are likely to be gradual, borrowers just managing repayments now will need to make financial adjustments when this happens," he said.
"We're also noticing an increase in borrowers taking out fixed term loans to protect themselves from potential RBA rate increases."
LJ Hooker chief executive officer Grant Harrod said that low rates have assisted in offsetting the fall in mining investment, and that the start to the spring market has been encouraging.
"However, while markets such as Sydney and Melbourne have performed well, there are many other markets which have softened or experience more modest result," said Harrod.
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RBA on hold as they consider other measures to deal with house prices

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Guest observation
As we go about our lives, it's easy to get caught up in everyday expenses without thinking about future finances.
Retirement is supposed to be about living the life you want, but that means having enough money to do the things you love.
According to the 2012–2013 Australian Bureau of Statistics, only 4.5% of people who retired from the labour force have a total gross weekly household income of $2,000 or more.
The 2014 Budget outlined Federal Government plans to lift the retirement age to 70 by the year 2035, and Treasurer Joe Hockey has started the conversation about lifting the superannuation preservation age to match.
The impact of this means you will have more time for your investments to grow and less time to spend the results. But consider, too, you may need to stop work earlier than you intend.
So while the rules around retirement may change, one certainty is that tomorrow's retirees will need a plan that includes super, supplemented by passive income from other investment.
For the purpose of this article all examples will be based on a retirement age of 65 and rounded to the nearest $1,000.
Out of Sync
Improvements in aged care and diet, along with medical advances mean the majority of people today will live longer than generations that went before them. As a result, our retirement expectations are out of sync with our retirement savings, and most of us aren't saving enough to pursue our retirement dreams.
Our idea of what is 'comfortable' is likely to be slightly more than the Association of Superannuation Fund Australia's definition at AU$41,169 a year for singles or $56,317 for couples.
The consensus is that 60% to 65% of your pre-retirement household income should be your retirement income target. Therefore, if you earn a household income of around $160,000 per annum pre-retirement, an annual retirement income goal of $2,000 per week or $104,000 p.a. would be a more appropriate target to maintain your standard of living.
How Much Do You Need?
If you want to earn $104,000 p.a. in retirement, you will need to be mortgage-free and have AU$2,600,000 (in today's dollars) in investments (based on a 4 per cent return). With inflation at 3 per cent, in 15 years' time this equates to an annual income of $162,000 from a $4,051,000 portfolio.
<img src="/images/2014/10/7/Picture%208.png" alt="">
Based on 4% p.a. investment return, 3% p.a. inflation. Figures rounded up to the nearest thousand.
Meet Tony and Judy Jones
Tony and Judy represent an average professional Australian couple whose goal is to retire in 15 years at age 65. They currently have an annual income of $160,000 and also have $155,000 in superannuation savings. Tony and Judy want to travel around the world and visit relatives overseas.
They also want to be able to pay for their daughter's wedding and access the right medical care and retirement accommodation when needed.
In 15 years Tony and Judy's superannuation savings will grow to $533,000 from their regular contributions and returns from funds invested. Despite this growth they still have a retirement shortfall of $3,518,000, if they want to achieve those financial and lifestyle goals. That means they'll need to save $235,000 every year for the next 15 years.
It's a frightening figure. But there is a smarter way for Tony and Judy to close the gap.
Plan Earlier and Smarter
Most Australians like Tony and Judy struggle to reach what they need to achieve a comfortable retirement because they don't have a plan in place. Typically, like Tony and Judy, their savings are accumulation-based. With this approach it's unlikely they'll reach their goals by retirement age. The alternative way is to earn money from assets.
There are many investment products available with the most common being direct shares, high interest savings accounts, extra super contributions, term deposits, self-managed super funds and managed investments.
This article continues on the next page. Please click below.
<hr class="system-pagebreak">
Investing in Property
Property growth is another investment that can help you build wealth.
<img src="/images/2014/10/7/Picture%2010.png" alt="">
Source: Residex June 2012
With such a sustained growth, you'd think more Australians would invest in property, but according to the Australian Taxation Office,5 only 1.7 million Australians are recorded as having an interest in a rental property. Of those, the majority (72 per cent) have an interest in only one rental property.
If we go back to Tony and Judy's case, for example, we have established they need to save $235,000 a year for each of the next 15 years. Structuring the purchase of four rental properties into their investment plan would be one way for them to reach this goal.
<img src="/images/2014/10/7/Picture%2012.png" alt="">
All figures rounded to the nearest $1,000.
If property is to be included in your investment portfolio, you may consider enlisting the expertise of a professional who specialises in property investment.
Where to From Here?
If you decide to invest in property, take some time to consider your overall retirement goals and timeframes and be sure to work with a reputable company that can assist you in building an investment portfolio.
The right consultant will consider your current situation and goals, calculate your borrowing capacity, then provide a plan with a clear strategy to achieve your desired outcome, making sure your decisions are informed, and not based on emotion.
Michael Fuller is a Property Consultant at <a href="https://www.dpn.com.au" target="_blank">Direct Property Network </a>(DPN).
 
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Earn $100K or more in retirement: informed planning needed

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Finder.com.au’s Monthly Reserve Bank Survey of 28 leading economists and experts looks to shed some light on interest rates and the thoughts of the Reserve Bank. Here are comments from 10 of their experts on the current rate environment. Jonathan Chancellor, Property Observer
“The recent Sydney house price boom, after years of little growth, is not a sufficient trigger for the bank to make any move. The domestic economy appears to be strengthening, but the international outlook looks tricky to draw any firm conclusion ... It was interesting that the RBA has signalled it was looking at macroprudential moves to help contain the current property exuberance. I still reckon they will stick with simply stepping up its public warnings around housing prices and investor activity. A reasonable conclusion is that Australia is unlikely to introduce the New Zealand style of direct macro prudential controls.” Bill Evans, Westpac
“We do not expect to see the Reserve Bank changing rates anytime over the next year. Indeed, the Bank once again confirmed its intentions in its September board minutes for a period of stability in rates. Westpac expects that, with our expectation of a more favourable economic environment than is anticipated by the Reserve Bank, the next move in rates will be a tightening but not until the second half of 2015, with August currently appearing to be the date for the first move.” Angus Raine, Raine &amp; Horne
“Inflation is still within the acceptable 2-3% range, and unemployment is holding steady at &lt;5%. The RBA wants to see that the employment market has stabilised before it increases rates. Once it sees evidence that the unemployment rate has plateaued, it’s fair to expect that the RBA will begin to tighten monetary policy. The next cash rate change will be impacted by the global geopolitical climate. If tensions worsen in the Middle East and the Ukraine, it might prompt the RBA to hold off, while it will continue to monitor the US and EU recovery or lack thereof.” Grant Harrod, LJ Hooker
“The economy continues to perform as expected by the RBA. Employment and private investment remains the chief concern, however, these should be helped by the recent softening of the Australian dollar. Housing markets continue to remain buoyant with the growth seen in Sydney and Melbourne having a ripple effect out to the other, more affordable, capital city markets. The associated growth in construction is also helping rebalance the economy. However, price growth and investor demand for housing, especially in Sydney and Melbourne, has seen the RBA raise the prospect of introducing macro prudential measures to help de-risk the market.” Shane Oliver, AMP
“While housing related indicators are strong, providing a reason not to cut rates further, the rest of the economy is sub-par. Uncertainty remains high regarding how quickly the mining investment boom will unwind, inflation is benign and the Australian dollar remains too high – all of which suggests it's premature to start raising rates. The most recent commentary from the RBA has indicated that a period of stability in rates remains prudent. This language is likely to be dropped well before the RBA starts hiking rates.” Paul Bloxham, HSBC
“For the moment there's still concern that the labour market has spare capacity, and that they'd like the unemployment rate to be declining before they raise interest rates. By the same token, I don't think they've got scope to cut interest rates any further because the housing market continues to boom.” John Caelli, ME Bank
“We don’t expect interest rates to change in October despite the Australian dollar falling and concerns about rising house prices. The RBA’s key focus remains on providing conditions to support business investment and employment. That the RBA has flagged macro prudential tools to manage house prices suggests they may be considering options to deal with the situation beyond just interest rates. The RBA minutes continue to refer to a period of stability in interest rates and so we expect any rises in rates won’t occur until the first half of 2015.” Nicki Hutley, Urbis
“The balance of macroeconomic indicators suggest that growth has improved in 2014 and is close to trend, but is not yet accelerating sharply enough to concern policy makers. Unemployment and subdued wages will keep inflation from rising too quickly for a little longer ... It is easy to think that, because growth and inflation have been modest for a prolonged period, that they will remain so indefinitely. There is clearly momentum building in the economy however and, notwithstanding slower mining investment, this momentum will lift growth and inflationary pressures over the coming year.” Michael Witts, ING Direct
“The economy is still in transition, and despite the RBA being concerned about the housing market, they would be reluctant to increase rates given the impact on the exchange rate. Also employment data has been highly volatile over the past few months ... The action by the RBA is constrained by the action of US Fed and this will drive local timing. Also the exchange rate is a further constraint, the RBA would like to see the Australian dollar well under 90 US cents.” David Scutt, Independent Market Strategist
“The RBA will keep the cash rate steady at 2.50% in October, the fourteenth-consecutive month that this has occurred. They will keep their neutral bias and communicate that ‘the most prudent course is likely to be a period of stability in interest rates.’ While on the surface the grounds for a return to a hawkish bias seem to be building, most economic indicators have been improving, the Australian Dollar has fallen while unease towards developments in the established housing market is growing, counteracting those forces are real-negative wages growth, subdued business confidence along with a noticeable deterioration in recent Chinese economic data, something that along with recent USD strength has seen the prices for Australia’s key commodity exports fall sharply. Given that household consumption and non-mining investment will be crucial in offsetting the effects of the slowing mining capital expenditure boom in the years ahead, there are simply too many uncertainties at present for the RBA to adopt anything other than a wait-and-see approach. When, and only when, they see non-mining activity start to accelerate sharply will they begin the process of policy normalisation. If that doesn't occur, not my baseline forecast but certainly a possibility, an extended period of policy stability, or even further easing, appears likely.” Source: Finder
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10 expert opinions on interest rates: Reserve Bank Survey

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The Reserve Bank of Australia (RBA) touches on some interesting points in its latest Financial Stability Review, including the paradox of low interest rates.
Household debt-to-income ratios have been flat for the past eight years, but the RBA quite rightly senses a risk that low rates could see this figure busting out to new highs and looks on cautiously.
<img src="/images/2014/10/7/RBA1.jpg" alt="">
The paradox is that low interest rates have made life pretty easy going for existing owners of property on variable rate mortgages, with the interest payments-to-income ratio falling from 13% to just 9%
Mortgage buffers
The RBA notes that aggregate mortgage buffers are at remarkably high levels, the equivalent of "more than two years" of scheduled repayments. A big reason for this, as I've experienced myself, is that banks have frequently left mortgage repayment amounts on auto-pilot despite declining mortgage rates:
"Households' ability to service their debt has been aided by ongoing low interest rates. The proportion of disposable income required to meet interest payments on household debt has stabilised accordingly, at around 9%.
"Households continue to take advantage of lower interest rates to pay down their mortgages more quickly than required. The aggregate mortgage buffer – balances in mortgage offset and redraw facilities – has risen to be around 15% of outstanding balances, which is equivalent to more than two years of scheduled repayments at current interest rates.
"Prepayment rates and the proportion of borrowers ahead of schedule on their mortgage repayments are also high according to liaison with banks. Part of this prepayment behaviour has been due to some banks' systems not automatically changing customer repayment amounts as interest rates have declined, while in many cases households have not actively sought to reduce their repayments.
"This might be a sign that household stress is currently limited. The household saving ratio, although trending down a little lately, remains high at just under 10%. Households' aggregate balance sheet position has continued to improve in recent quarters: real net worth per household is estimated to have increased by 4% over the year to September 2014."
Rental market
With dwelling prices rising we might expect to see rental vacancies increasing and yields declining. Historically speaking, however, Sydney's vacancy rate remains low despite pockets of forthcoming oversupply. RBA again:
"Despite the activity and housing price inflation in the Sydney and Melbourne property markets, rental yields have not declined to a significant extent and vacancy rates in these cities remain fairly low."
<img src="/images/2014/10/7/RBA3.jpg" alt="">
True, but vacancy rates are elevated and likely to rise in inner city Melbourne apartments as the RBA observes.
Household financial stress?
Generally 90 day+ loan arrears at now at very low levels at only 0.5 percent, but there are some indicators of household financial stress in Victoria. Back to the RBA:
"Aggregate indicators suggest that household financial stress is generally low, despite the increase in the unemployment rate over the past year. The share of banks' housing loans that are non-performing has declined for both owner-occupiers and investors since reaching a peak in the middle of 2011.
"Data on securitised housing loans show that the share that are 90  days or more past due has declined over the year for most states, coinciding with lower interest rates and rising housing prices. In Victoria, however, loan performance has deteriorated slightly."
<img src="/images/2014/10/7/RBA2.jpg" alt="">
The RBA notes instances of mortgage stress and arrears in "outer west and north Melbourne".
Interest rate rises?
So it's largely happy days for homeowners at present. But what about interest rate increases?
Previously we have covered off the possibility here that interest rates might yet fall further as the mining construction boom tails off.
So, what could lead to hikes? Mostly we'll be looking at inflation and the jobs market.
The TD-MI inflation gauge printed flat again for the month, leaving this particular measure sliding towards the bottom of the 2-3% range (now at just 2.2%) and suggesting little in the way of inflationary pressures or a pressing need to hike interest rates.
The declining Aussie dollar could well wash through a little more tradables inflation in due course, but sustained inflationary pressure would likely need the labour market to pick up, since there currently appears to be a fair amount of slack therein.
<img src="/images/2014/10/7/4br-tradeinf-small.gif" alt="">
Some heartening news on that front today with ANZ job adverts recording its fourth consecutive monthly gain to hit its best reading in two years.
Could this suggest that the labour market is picking up as was suggested here by last month's figures? Maybe! The next round of Labour Force figures on the 9th of this month is very eagerly anticipated for all of the above reasons.
In any case, interest rates will be very much stuck on hold today at 2.50%. It seems likely that prudent households will have at least another year of low rates ahead to keep building up those mortgage buffers.
 
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Reserve Bank muses on housing stress

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Belle Box Hill, in Melbourne's Box Hill, is the latest launch from Little Projects, offering 100 one and two bedroom apartments to market.
Designed by Plus Architecture, the development on Station Street is 14 kilometres from the CBD and will begin construction in the next few months for 2016 completion.
One bedroom apartments <a href="https://www.belleboxhill.com.au" target="_blank">start from $322,000</a>, with two bedroom apartments from $475,000 upwards. They range from 43.4 square metres to 76.2 square metres.
<img src="/images/2014/10/7/LittleProjects_BelleBoxHill_V01_Facade_cmyk_MR_ps.jpg" alt="">
Image supplied.
Managing director of Little Projects, Michael Fox, said that it provides good amenity to retail, parks, employment and education.
"Creating inviting communal spaces as an extension of residences will ensure Belle Box Hill residents can engage with each other and entertain friends and family with ease," said Fox.
This includes a ground floor dining area with full kitchen, lounge, library, private cinema room and landscaped outdoor entertainment space with barbecue facilities.
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