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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Sydney’s most affordable property reported sold at weekend auction was a one bedroom apartment in Narwee, in the southern suburbs.
The top floor 5/33 Graham Road unit sold for $325,000 <a href="https://www.domain.com.au/property/for-sale/apartment-unit-flat/nsw/narwee/?adid=2011409446" target="_blank">through L.J Hooker Riverwood</a>, according to Australian Property Monitors, under instruction from NSW Trustee &amp; Guardian.
The 1986 block's last and highest previous sale was $319,000 when a one bedroom apartment sold earlier this year, and then was put up for $310 a week rental. Based on these figures the sale would reflect a yield of about 5%.
The median price for an apartment in <a href="/news">Narwee</a> is currently $421,000, which is a down from last year's price spike of $550,000 an apartment.
The median asking rent for apartments in Narwee is currently $380 a week, according to RP Data. 
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andreadixon-oif3j7eKne

Narwee one bedder Sydney's cheapest auction sale

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Comparison website Finder has put out a warning about high-risk home loans, after recording a jump in interest-only home loans and larger loans across the board.
In fact, 81% more Australians were searching for interest-only loans compared to the same period last year, Finder recorded.
Over a third of home loans financed since the March quarter to June quarter 2014 were interest only, at 35%. This is the highest level since the data was collected, according to Finder’s money expert Michelle Hutchison, and loans are now at a record high of $319,000.
This puts the average borrowing $24,000 higher than last year.
“It's a real concern to see borrowers taking on more risk because interest rates are at record lows and expected to rise next year, which means borrowers can find themselves in financial trouble if they take on more debt than they can afford,” said Hutchison.
“For instance, if interest rates rise back to historical average levels of 5%, it would cost borrowers with a $300,000 home loan an extra $400 per month or about $4,800 in one year.”
Difference in average home loan sizes in each state compared to last year:
<table style="width: 647px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="136">
State
</td>
<td valign="top" width="149">
July, 2014
</td>
<td valign="top" width="158">
July, 2014
</td>
<td valign="top" width="123">
Difference
</td>
<td valign="top" width="81"> </td>
</tr>
<tr>
<td valign="top" width="136">
NSW
</td>
<td valign="top" width="149">
$366,700
</td>
<td valign="top" width="158">
$336,000
</td>
<td valign="top" width="123">
+$30,700
</td>
<td valign="top" width="81">
 
</td>
</tr>
<tr>
<td valign="top" width="136">
VIC
</td>
<td valign="top" width="149">
$333,000
</td>
<td valign="top" width="158">
$293,300
</td>
<td valign="top" width="123">
+$39,700
</td>
<td valign="top" width="81">
 
</td>
</tr>
<tr>
<td valign="top" width="136">
QLD
</td>
<td valign="top" width="149">
$301,300
</td>
<td valign="top" width="158">
$282,200
</td>
<td valign="top" width="123">
+$19,100
</td>
<td valign="top" width="81">
 
</td>
</tr>
<tr>
<td valign="top" width="136">
SA
</td>
<td valign="top" width="149">
$263,100
</td>
<td valign="top" width="158">
$245,200
</td>
<td valign="top" width="123">
+$17,900
</td>
<td valign="top" width="81">
 
</td>
</tr>
<tr>
<td valign="top" width="136">
WA
</td>
<td valign="top" width="149">
$312,800
</td>
<td valign="top" width="158">
$296,400
</td>
<td valign="top" width="123">
+$16,400
</td>
<td valign="top" width="81">
 
</td>
</tr>
<tr>
<td valign="top" width="136">
TAS
</td>
<td valign="top" width="149">
$215,500
</td>
<td valign="top" width="158">
$208,300
</td>
<td valign="top" width="123">
+$7,200
</td>
<td valign="top" width="81">
 
</td>
</tr>
<tr>
<td valign="top" width="136">
NT
</td>
<td valign="top" width="149">
$341,300
</td>
<td valign="top" width="158">
$331,700
</td>
<td valign="top" width="123">
+$9,600
</td>
<td valign="top" width="81">
 
</td>
</tr>
<tr>
<td valign="top" width="136">
ACT
</td>
<td valign="top" width="149">
$329,700
</td>
<td valign="top" width="158">
$329,600
</td>
<td valign="top" width="123">
+$100
</td>
<td valign="top" width="81">
 
</td>
</tr>
<tr>
<td valign="top" width="136">
National average 
</td>
<td valign="top" width="149">
$319,000
</td>
<td valign="top" width="158">
$295,000
</td>
<td valign="top" width="123">
+$24,000
</td>
<td valign="top" width="81">
 
</td>
</tr>
</tbody></table>
Source: Finder, ABS
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jduke-EHk3XBmHkn

How much more debt is being taken on in 2014 compared to 2013? Finder’s high risk warning

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A new record low fixed rate offering is now available at Bankwest, through the broker channel, across two fixed mortgage products.
The two-year fixed rate is now at 4.59%, down 19 basis points, with the three year fixed rate at 4.74%, down 10 basis points, for both the Complete Fixed Home Loan and the Fixed Rate Home Loan.
Borrowers can obtain these rates up to 90% LVR.
The Complete Variable Home Loan currently sits at 4.74%, with a comparison rate of 5.13%.
It is certainly<a href="/expert-insights/finance/record-low-fixed-rates-who-is-offering-them"> lower than the fixed rates of some of the major banks</a>.
ME Bank’s <a href="/expert-insights/finance/me-bank-takes-three-year-fixed-rate-lower">three-year fixed offering currently sits at 4.59%</a>, also a record low for the lender.
YOU MIGHT ALSO WANT TO READ:
<a href="/expert-insights/aussies-john-symond-fixes-his-investment-property-mortgage-rate">Aussie's John Symond fixes his investment property mortgage rate</a>
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Bankwest drops fixed rates to new record low

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Guest observeration
Recently I read two very different articles about our 'property markets'.
The first was an in depth piece by arguably Australia's most accurate property analyst, Michael Matusik. The <a href="/expert-insights/finance/unprecedented-low-interest-rates-wont-last-forever">second article</a> was attributed to the chairman of Century 21 Real Estate, Charles Tarbey. Both articles rammed home why the average Australian finds it difficult to know (let alone understand) what's really happening in 'the property market'.
Matusik suggested that "caution and common-sense" are the order of the day for owner occupiers and investors alike (along with investing for rental income of course).
Tarbey on the other hand declared that there was no bubble in Australian real estate, and that "we're in a very steady adjustment growth mode driven by the shift to a market where buyers and sellers negotiate a fair price". Caution and common sense?
Neither pundit addressed this point though: your bank has a dirty little secret (weapon) that they can't wait to use on you.
Our current low interest rates and housing shortage issues have lured thousands of people each week into paying 'whatever it takes' to get into a property, especially in Sydney and Melbourne. There's so much evidence of this that it's just plain scary.
Whether you like it or not, Sydney is the undisputed engine of Australia. Melbourne comes in second and not-so-sleepy Brisbane is third in line.
So let's take a close look at Sydney, shall we? With 4.35 million residents, the largest workforce, strongest Gross Domestic Product (GDP) and highest home prices in the nation. House prices (in Sydney and every other overheated market) are poised for a serious downward adjustment, not if, but when interest rates go back up from their current 50 year historical lows.
Most people flocking in to buy a home today don't understand that an interest rate of 6.70% isn't just a "bit more"; it's a whopping 37% extra interest each month.
How will life change for an average Sydney couple with a $400,000 mortgage currently and 4.89% interest rate? Their current monthly repayment is $2121 with an interest component of $1630; and they're paying the principal down by $491 a month. It will take them 30 years to own that home at that rate.
But what happens when their interest rate goes back to 6.70% - still well below the long term average?
Have a look at the 'smoke &amp; mirrors' their bank uses to hide its dirty little secret. Although the monthly repayment for our Sydney couple jumps by $460 to $2581, the interest component jumps by almost $150 more, from $1630 to $2233.
The interest component on their loan is now $112 a month more than their previous principal and interest repayment.
Their interest is now $603 higher, however their monthly repayment only increased by $460. Even though their monthly repayment jumped by almost 22% - the interest component jumped by 37%.
Hello, did you see that: they've gone from paying almost $500 a month off, to now only reducing the debt by just $348 each month.
Kiss that 30 year repayment period goodbye!
Score 1:0 to their bank, who win big time, with each rate rise working in their favour.
 This article continues on the next page. Please click below to continue.
<hr class="system-pagebreak">
 
So I simply cannot agree with Tarbey's view. When people are competing in record numbers, for the few properties available, and prepared to pay above the odds to secure a place to call home, then common sense has gone out the window.
I know we're in a bubble right now, when real estate agents tell me that the house I bought for $680,000 just over five years ago would probably now fetch $1.1m.
I know we're in a bubble right now, when real estate agents tell me that they'll now accept "offers over $280,000" for the two bedroom units I was buying for investor clients 21 months ago for $200,000 - and their rents have either remained static or dropped $10 a week in the process.
I know we're in a bubble right now, because my house hasn't increased in value by over $500,000 or 73%. I know we're in a bubble right now, because those two bedroom units haven't increased in value by $80,000 or 40%.
I also know we're heading for a severe correction in those markets because:
<ul>
<li>This insanity is driven by an abundance of cheap money</li>
<li>The supply component is out of synch to match the demand caused by the abundance of cheap money</li>
<li>Money is the cheapest it's been in over 50 years because our economy is in trouble</li>
<li>Borrowing to the hilt because you can afford to pay whatever it takes for 'that' property based on today's interest rates is maybe the new definition of insanity</li>
</ul>
Michael Matusik, I think you're closer to the truth than even you might know.
What should you do right now? A couple of things, actually:
<ul>
<li>Get rid of all that credit card debt, personal loans, and any other high interest rate facilities</li>
<li>If you can't get rid of that debt, if you've got enough equity in your home consider rolling those debts into your home loan. Better still, roll them into a separate facility and pay it off over say three to five years</li>
<li>Seriously consider switching your home and/or investment property loan to either a three or five year Fixed Rate loan - sooner rather than later</li>
<li>Pay more than the minimum repayment on your home and/or investment property loans; in fact use these ridiculously low interest rates to pay as much extra as you can afford</li>
<li>Right now, the smartest thing you can do - for you - is to reduce debt fast. The lowest interest rates in five decades is your best chance to do this, probably in five decades.</li>
</ul>
 
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klee-LzAEhB2j7n

Your bank has a dirty little secret

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GUEST OBSERVATION
In my time of investing and purchasing for investors, I have the luxury of knowing that this current market movement is not normal, nor an accurate prediction of what they next five years will be like.
In fact, if anything, I am more bearish now about property than I have been for some six years, seeing that affordability and irrational exuberance have taken over rational thinking and sensible wealth planning.
But I have never actually been called a property bear - until now, that is.
I copped the comment last week at a luncheon, replete with bankers and wankers. I might also add that my fellow lunchers included people who exclusively made their money from giving obscene levels of credit to suckers (otherwise known as consumers) to go and buy more residential property.
After I gave someone a response that they clearly didn't want to hear, of course I was howled down. In their minds, there are so many people out there buying right now. The masses clearly can't be that wrong.
Can't they? Have they ever been that wrong before?
You bet they have. In fact, history demonstrates this repeatedly. I cite below one of the most extraordinary examples of irrational exuberance ever to present itself to an investor market.
Tulip Mania
The Tulip Craze of Holland truly demonstrates not only what a human mind can conjure up to consider an investment, but how obsession and irrational exuberance can take over even the most logical of minds.
The flower Semper Augustus was judged to be the most valuable flower in the Tulip family in the 1600s. So much so that in 1630 one person paid 3,000 guilders for one tulip bulb.
Do you know what the value of a guilder was in 1630s? Well, me either - but I can tell you that three months later, a Rembrandt painting sold for 1,500 guilders. Importantly, Rembrandt (1606-1669) was not one of those artists who were popular only after he died!
Moving on to 1633, records show that one investor swapped traded three tulip bulbs for a whole property. In the ensuing years (1634-1673) the value of tulips then ran up by another 1000%.
Then, one day, at a non-descript tulip auction, one large buyer didn't turn up to claim his prized tulip trade. Upon witnessing this, other buyers baulked. The ensuing panic saw the value of tulips return to their intrinsic value in less than a week: zero (or at least, the nominal value of just a beautiful flower).
The government of the day agreed to protect people's bad investments to the value of 10%, a story that is repeating itself now. That is: privatise the gains, but socialise the losses. Sometimes, we never learn!
Now, in the above examples it is true to say that there was profit to be made from the trade at every stage except for the when the last investors jumped in.
There is no denying that many of you already have and still will make money from property in 2014-15 in particular segments of the market. But as time passes the risk increases that you may just be the one holding the bomb when the fuse runs out.
I also understand that tulips aren't property. Of course, property has a utility value of some considerable price (a roof over someone's head), but we still need to keep in mind that it is the same "animal spirits" brought out tulip mania that are playing itself in our property market.
This article continues on the next page. To continue, please click below.
<hr class="system-pagebreak">
Investors keep bidding the prices of property up, so much so that they can reflect far more than the actual value of the property.
I find it almost strange that I am writing this article at the time when my <a href="https://propertyobserver.com.au/forward-planning/investment-strategy/market-trends/23116-thursday-may-30-observer-gavin-mcpherson" target="_blank">past simple calculations</a> (see paragraph 6) have come about, with average Sydney prices now coming in at $800,000; only $500 off my prediction.
With an interest rate decrease given to consumers last August '13, it is true to say that the potential to bid homes even higher is likely. But not by much. Ask yourself how much more that $40-$50 per month can add to a house price. Very little, I would imagine.
But keep in mind, my calculations used a logical and arithmetic method to it. Logic and arithmetic don't come into the equation when "animal spirits" take over.
And that's why I think property is going to go higher, and produce a lot of pain for those latecomers (still) piling into the Sydney and Melbourne property markets right now.
I am not happy about it, but it seems the inevitable next step for the market to take. Call it irrational exuberance.
The fact remains that the greatest risk always presents itself when the the most people are in the same trade - all expecting it to go up in perpetuity.
Any decrease in this demand in the future can only decrease price expectations.
Is there still opportunity?
The only opportunities I see (at all) for real capital growth are north of the New South Wales border. In <a href="/expert-insights/buying/six-tips-to-help-you-through-the-next-market-cycle-unscathed-gavin-mcpherson">the same article mentioned above</a>, I observered that Brisbane and the Gold Coast presented real buying opportunities over 12 months ago. In fact, they were perfect buying then. It's true that some of the gains have been lost to modest capital growth since then, but opportunity still abounds while so much attention is focussed on the overbid Sydney and Melbourne markets.
And for those who still carry that foolish notion, "I want to live near my investment property, so I can check on it", may I ask how you might feel in 2016/17 if you had to drive by that same property to be reminded that you were in a negative equity position. Wouldn't that be ironic?
Brisbane - I still love it. As Australia's fastest growing capital city (yes, it has overtaken Perth some time ago now!) and Australia's 3rd largest city, for me still stands out as a bastion of value.
For Gold Coast, I don't deny the volatility that this presents over a long term investment period. All the same, for those that can avoid the high rise district and cope with this long term volatility, the seachange effect is something that I expect is occurring in earnest now.
Don't forget, in 2001-04, when prices doubled in the southern states (especially Sydney and Melbourne), the Gold Coast (and less so Brisbane) became a beneficiary of this as migration led by affordable housing made the move north a rational decision. As the sunny state hit prices only 10% below Sydney/Melbourne leading up to 2007, the rationale for a 'seachange' diminished.
With southern states house prices edging $800k and $700k respectively now, yet with Brisbane and Gold Coast at just over half of that, are you telling me that history is not about to repeat itself?
I'd at least put down a few tulip bulbs to bet that it will.
Sydney and Melbourne at record highs, or the northern cities on the way up. What side of this trade are you going to get caught on?
Oh, one more tip. If you think that something like Tulip Mania can't strike again, I have two words for you. Bit. Coin.
Gavin McPherson is the chief executive of <a href="https://www.oasisproperty.com.au/" target="_blank">Oasis Property Group</a>. His book, 'Value Investing in Property - What would Warren Buffet do if he was buying property in Australia?', takes aim at the get rich quick property experts and explains instead the sturdy path to wealth through value investing in property.
 
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gmcpherson-YBEWnRLxLK

Sydney and Melbourne: ticking time bombs

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Last week, I noticed Craig James, chief economist of Commsec, pointing out to David "Kochie" Koch that although wages growing have been growing slower than prices, household incomes are actually growing at the fastest pace in two years, increasing by 4.7% in the last 12 months.
While wages growth has indeed slowed (<a href="https://petewargent.blogspot.co.uk/2014/05/wages-grow-at-26" target="_blank">as I analysed here,</a> among other places), apparently household disposable incomes have been rising more quickly. Interesting statistic I thought, so I asked "CJ" for the source.
<img src="https://3.bp.blogspot.com/-7SzKL4Y4BIU/VCF5vBSJ3TI/AAAAAAAAP70/Yhw_QqERMLs/s1600/HICJ.jpg"> 
Straight from the National Accounts, advised CJ. So I thought I'd take a little look to confirm or deny.
Household gross incomes rising
First, I ran the seasonally adjusted household income data from the National Accounts.
As you can see from the green line circled below, after a rampant boom in employee compensation spurred on by Australia's mining boom, income growth from paid employment has slowed since December 2012.
Although the trend does remain up on a national basis, in real terms wages are at best flat and at worst declining moderately.
Of course there are many forms of income including dividends, rent, social assistance, other transfers, and more besides, and overall household incomes have increased at the significantly faster pace of 4.4% seasonally adjusted over the last year according to the Australian Bureau of Statistics (ABS) - in essence, everything that is not wages has increased in real terms.
 
 <img src="https://2.bp.blogspot.com/-8H1Wz0wmWcQ/VCF5psR7OkI/AAAAAAAAP7Q/opfMA4K1EVA/s1600/HI1.jpg">
Still, even this income growth cannot fully account for a 4.7% rise in household disposable incomes.
Payables down?
The big mover in terms of payables in recent decades has of course been interest paid on dwellings, which skyrocketed until September 2008, then collapsed as interest rates were slashed and house prices eased. Then it repeated the trick once again from September 2011 as the latest easing cycle took hold.
With interest rates significantly closer to the zero bound than historically has been the case and household debt levels today much higher than they were before the deregulation of the banking system, relatively small adjustments to mortgage rates can result in wild swings in total interest payments on dwellings. And how!
<img src="https://3.bp.blogspot.com/-xFfk72ZbyRo/VCF5p2fT1FI/AAAAAAAAP7U/ucfhOLYzSDo/s1600/HI2.jpg"> 
With most mortgage debt being charged on variable rate products, this explains why Australia's housing market is so sensitive to shifts in interest rates, and why only a few rate hikes would quickly quell speculative sentiment and swiftly end the property price uptrend for this cycle.
Why? Because the people lumbered with the highest mortgage debt as a percentage of their household income are those at the margin i.e. those buying much of the property which transacts.
It is difficult to draw hard conclusions from macro level data, but the two charts above show that for existing homeowners on variable rate mortgages, disposable income has surely roared higher in the period since the dramatic peaks in interest repayment levels of September 2008 and September 2011 respectively.
Anyone with existing mortgage debt who has remained in employment will appreciate just how comparatively easy life is with a standard variable rate of 5.2% rather than the 9.6%, we saw as recently as July and August 2008.
<img src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph11.gif"> 
This article continues on the next page. Please click below to continue. 
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Household income accounts
On a national basis total gross income dwarfs property payables largely because most Australians are not mortgaged to the eyeballs as is widely believed. 
Depending on your state, between a quarter and a third of homes <a href="https://petewargent.blogspot.co.uk/2014/05/dynamics" target="_blank">are owned debt free</a> while mortgage holders over recent years have been moving well ahead on their repayments. 
Meanwhile income taxes payable have moved higher in concert with rising taxable incomes. 
The trend in gross disposable income is shown by the red line below.
 <img src="https://4.bp.blogspot.com/-ew6soAsW11s/VCF5umNs6jI/AAAAAAAAP7w/d8MQCRJdCdQ/s1600/HI4.jpg">
So, in this sense, Commsec's observation is correct - gross disposable incomes are indeed 4.7% higher than a year ago.
However it is a fair bet that those who are not homeowners and are 100 percent reliant on a salary for their income do not feel much better off, if they even do at all.
Homeowners and in some instances those with diversified income streams are clearly benefiting very significantly from record low borrowing rates.
These things naturally tend to work in cycles, though - when interest rates were much higher and rising and dwelling prices easing, the boot was on the other foot entirely.
 
 <img src="https://3.bp.blogspot.com/-CV4uoAihbTI/VCF5tvRx9fI/AAAAAAAAP7k/dN77fz2dzgw/s1600/HI5.jpg">
Gross disposable income nationally has been launched massively higher by more than 80% in the past decade, unadjusted for population growth.
However, the trend disposable income growth per capita seems likely to slow, and if interest rates are hiked several times gross disposable income in aggregate could plateau unless wages growth rebounds.
 <img src="https://2.bp.blogspot.com/-fXYwdyho_XE/VCF5vQP6fjI/AAAAAAAAP74/O2tfGis_r1o/s1600/HI6.jpg">
 
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pwargent-M4siyDbqQY

Are household disposable incomes really increasing at 4.7%?

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Leighton's Perisher ski lodge, Barrakee, has been listed for sale at $1.85 million.
Situated in North Perisher close to the North Perisher T-bar and Interceptor Chair Lift, the ski lodge comes with a 50 bed licence.
There are 25 guest rooms plus staff accommodation.
There is a<a href="https://www.fsre.com.au/property-details.php?propid=330&amp;print=1&amp;iframe=true&amp;width=750&amp;height=470" target="_blank" style="line-height: 1.3em;"> licensed 34 seat dining room</a>, plus lounge with fire place and bar facilities.
It has been listed through Forbes Stynes Real Estate by the construction giant, which is offloading all its non-core assets.
It had tried unsuccessfully to sell Barrakee in 1989, when the leasehold property had 44 years to run before it expired.
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jchancellor-FAypfDUnLy

Barrakee, Leighton's Perisher ski lodge, listed

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As the mining investment boom deflates, in order for Australia to rebalance its economy, a pick-up in demand for homes and house prices in response to lower interest rates, sending a signal to home builders to build more homes was essential. Fortunately, it's occurred.
The Reserve Bank (belatedly in my view) got rates down, home buyers returned, home prices rose and we are now in the midst of a dwelling construction boom.
The housing sector is doing its part!
But it seems that there is nothing that gets Australians going more than what's happening with house prices. Are they in a bubble? Is negative gearing to blame? Or is it foreign buying? Will it burst? Should the Reserve Bank slow it down? Is housing a good investment? This note looks at the current state of play in the Australian residential property market.
Australian housing remains overvalued
Australian housing remains overvalued on most measures. But then again this has been an issue for more than a decade.
For example, while a bit more extreme than my own view at the time, the OECD estimated that Australian house prices in 2004 were 51.8% overvalued. This compared to just 1.8% for US housing and 32.8% for the UK. While real house price weakness through 2010 to 2012 saw the degree of overvaluation diminish, the problem is returning with a vengeance:
<ul>
<li>According to the 2014 Demographia Housing Affordability Survey the median multiple of house prices to household income in Australia is 5.5 times versus 3.4 in the US.  </li>
<li>On the basis of the ratio of house prices to rents adjusted for inflation relative to its long term average, Australian houses are 30% overvalued and units 17% overvalued.</li>
<li>The ratios of house prices to incomes and rents in Australia are 23.5% and 40.9% above their long term averages respectively, which is at the higher end of OECD countries. This contrasts with the US, which is near the lower end in the OECD. <img src="/images/2014/09/26/Picture%2043.png" alt=""> 
</li>
<li>And on my favourite measure, real house prices have been running above trend since 2003. <img src="/images/2014/09/26/Picture%2044.png" alt=""> 
</li>
</ul>
What's to blame for high house prices?
There are two main drivers of the surge in house prices over the last two decades. The first was the shift to low interest rates. Lower rates enabled Australian's to borrow more for a given level of income and so pay each other more for homes.
As can be seen the shift in house prices from below trend to above (as derived from the last chart) has gone hand in hand with an increase in the ratio of household debt to income.
<img src="/images/2014/09/26/Picture%2046.png" alt="">
The trouble is that the shift to low interest rates occurred in many other countries and most did not have anywhere near the surge in house prices or household debt  Australia had, implying a heavy speculative element in driving prices higher as well. I have long thought this surge in household debt and relative house prices represents Australia's Achilles' heal.
Should anything go wrong with the ability of households to service their debt Australia would be at risk. Fortunately it's hard to see the trigger for this in anything but a small way.
The second reason is a lack of supply. While the US saw a property price surge into 2006 matched by a supply surge, supply in Australia has been subdued due to restrictive land supply policies and high stamp duty and infrastructure charges.
The National Housing Supply Council estimated a few years ago that since 2001 Australia had a cumulative net shortfall of over 200,000 dwellings. Reflecting this, residential vacancy rates remain relatively low.
<img src="/images/2014/09/26/Picture%2047.png" alt="">
Given the supply shortfall, most of the scapegoats that various commentators have come up with to explain high home prices are a sideshow. Foreign and SMSF buying is no doubt playing a role in some areas but looks to be small.
Negative gearing is more contentious, but it's likely that curtailing access to it when stamp duty remains very high will have a negative impact on the supply of property to the extent that it will have the effect of reducing the after tax return to property investment.
Restricting negative gearing for property would also distort the investment market as it would still be available for other investments.
This article continues on the next page. Please click below.
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Rising risks
Our assessment is that the Australian property market is not at the bubble extreme it was at a decade ago: the overvaluation is a bit more modest; annual housing credit growth for owner occupiers and investors is running at around one third the pace seen in 2003; Australians don't seem to be using their houses as ATMs against which debt can be drawn suggesting they are less comfortable regarding the outlook and debt; and the home price gains now have been over a shorter period and are concentrated in just Sydney &amp; Melbourne.
However, danger signs are emerging:
<ul>
<li>After a cooler period during the first half of the year the property market seems to be hotting up again. National average home prices rose at an annualised 16.8% pace over the 3 months to August according to RP Data and auction clearance rates are at or above last year's highs. <img src="/images/2014/09/26/Picture%2048.png" alt=""> 
</li>
<li> The proportion of housing finance commitments going to investors is now back to around the 50% high seen a decade ago, suggesting that the market is becoming more speculative. And there are signs that home buyers are starting to extrapolate recent strong price gains into the future which is very dangerous.</li>
<li>Finally, The Block is back on top as the most watched show on TV highlighting a return to very strong community interest in the property market. </li>
</ul>
Taken together these indicators warn that the housing market is getting a bit too hot.
Policy implications
The heat in the home buyer market is clearly starting to concern the Reserve Bank with its Financial Stability Review indicating that it's becoming concerned about speculative activity in the property market and the risks this poses to the broader economy when the property cycle eventually turns down.
Normally with the property market hotting up the RBA would start to think about raising interest rates but right now it's loath to do this given uncertainty regarding the rest of the economy and the risk a rate hike would put upwards pressure on the still too high $A.
As a result the Australian Prudential Regulation Authority (APRA) is more closely monitoring the banks and the RBA and APRA are now discussing steps that could be taken to ensure sound lending practices are maintained with a focus on investors. The latter would involve the use of macro-prudential controls to slow the housing market – which is really just a fancy term for the old fashioned credit rationing that used to be applied prior to the 1980s.
This could involve limits on loan to valuation ratios, forcing banks to put aside more capital or forcing banks to impose tougher tests when granting loans. Such approaches all have problems: they tend to work against first home buyers; if they target  investors as looks likely they work against a group of lower risk borrowers; people can start to find their way around them; and their impact is hard to gauge.
The best approach is for the RBA to first ramp up its efforts to warn home buyers of the need to be cautious. But if that fails in quickly cooling the property market, expect an announcement from APRA and the RBA on lending restrictions likely targeting investors in the next few months.
Housing as an investment
Notwithstanding the rising risk of macro prudential controls, in the short term further gains in house prices are likely until the RBA starts to raise interest rates probably around mid-next year, soon after which another 5 to 10% property price down cycle is likely to start.
Beyond the short term it's worth noting residential property has provided a similar long term return as Australian shares, with both returning around 11 to 11.5% per annum since the 1920s. They are also complimentary to each in terms of risk and liquidity and are lowly correlated. All of which means there is a case for investors to have exposure to both.
At present though, housing looks somewhat less attractive as a medium term investment. The gross rental yield on housing is around 3.2% and for units is around 4.4% giving an average of just 3.8%. After costs this is just below 2%.
Shares &amp; commercial property both offer much higher yields. Medium term capital growth is also likely to be limited, with the overvaluation likely to see real house prices stuck in a 10% or so range around a broadly flat trend. This is consistent with the 10-20 year pattern of alternating secular bull and bear phases evident in the second chart in this note.
Taken together this suggests that a realistic expectation for total returns from residential property over the medium term is just around 4 to 5% per annum.
Shane Oliver is the head of investment strategy and chief economist of AMP Capital
 
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soliver-smf6LQXgW9

Australian housing prices: a bit too hot in parts

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Buying off the plan, or buying “new”, can be incredibly exciting for home buyers of any level of experience. For first time buyers, it can also be daunting.
While there are many positives associated with buying off the plan, and it can be useful to get in early and lock in a price prior to the property being purchased, there are a number of risks to be aware of.
Firstly, if you’re interested in purchasing off the plan you can read our How To series about going through the buying process.
Here are the risks that you need to have on your radar.
You may not be satisfied with the end product
You can look at as many renders, artists impressions, show homes and samples as you like, but nothing quite compares to seeing the actual property in the flesh. Similarly, unless your contract is very specific and you get it looked over, you may see variance in the quality or brands of your finishes, fixtures and appliances. Make sure these elements are specifically stated in the contract.
The market may fall while the property is being built
If the market drops during the development’s construction phase, you may face yourself needing to foot a bill that’s more than the bank will lend to you if the valuation comes in lower at settlement. This can pose significant difficulties to those without substantial funds behind them, and can push your finances backwards. On the other hand, the market could increase over this time. You will want to make sure that any market increases haven’t been factored in to the price already – don’t be paying tomorrow’s prices unless it is already tomorrow.
Rental forecasts and guarantees may be off the mark
Just as the sales market can drop, the rental market can fluctuate as well. This may leave your rental yield flagging, or your property vacant, if you haven’t considered where the rental demand is heading. Similarly, those guarantees provided by unscrupulous developers can often come unstuck. Perhaps they require you to stick with their selected property management company or jump through another set of hoops. Know what terms are behind this guarantee ahead of time.
The area becomes oversupplied with other off the plan developments
Developments have a habit of cropping up together. If you’re buying into an area with lots of developer interest and property demand, you’ll want to make sure that by completion the area won’t be oversupplied or facing a potential future oversupply.
The developer may go bust or there may be delays 
Make sure you do your research on the developer and other professionals involved in creating your property prior to purchasing. While some delays are unavoidable, and you should prepare for them, such as weather-related delays, others can be caused by poor planning from developers. If it spans out by a significant period of time, you could face your funds being tied up elsewhere, costing you time and other opportunities. If it’s a home, then you may need to seek out other accommodation in the event of a delay. Some developers can even go bankrupt, leaving you in the lurch.
Rates increasing before you can fix
In the current low interest rate environment it’s unsurprising that many are interested in fixing their loans to take advantage of the low repayments required. However, if you’re buying off the plan now then you won’t be taking the loan out until further down the track – this means that you’ll be facing the interest rates then. With all the predictions at the moment, it’s likely <a href="/expert-insights/finance/more-than-one-interest-rate-rise-on-the-cards-for-2015-anz">the rate may be higher by the end of next year</a>.
However, with the right research and careful decision making, off the plan properties can present good buying for some investors and home buyers.
Here are<a href="/expert-insights/five-tips-for-protecting-yourself-when-buying-an-off-the-plan-property"> five tips to protect yourself when purchasing off the plan</a>.  
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Six risks that come with buying off the plan

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Living regionally isn’t something that every first time buyer is able to accomplish. There are, of course, some things tying people to the capital cities across Australia.
In saying that, for those willing or able to take the plunge into regional property ownership, there are a number of opportunities further out of the city centres that come with a cheaper price tag, or higher rental yields if you’re intending to invest.
Often, when growth has surged in the capitals, regional areas are yet to catch up. This can provide opportunities for those who just saw their desired property soar past them in value.
There are also regional relocation grants potentially on offer. For instance, in New South Wales, a <a href="https://www.osr.nsw.gov.au/grants/rrg/hrb" target="_blank">$7,000 has been available for some time</a> (this closes on 30th September), provided certain criteria are met, And there are often grants for skilled workers willing to relocate to a regional area.
We’ve outlined a select few of the numerous pros and cons that exist to choosing a regional location to live in for first home buyers and new investors.
What’s worth a note is that, for this particular article, ‘mining towns’ are not considered ‘regional towns’ – even while many of them are regionally located. Due to their riskier nature, <a href="/expert-insights/buying">observer Pete Wargent has called them “insane” as an investment</a>. For those still keen on the idea, then you might want to read <a href="/expert-insights/buying/five-tips-to-make-the-right-moves-investing-in-a-mining-town-simon-pressley">Simon Pressley’s five tips for making the process a bit more successful</a>.
Resort or <a href="/expert-insights/investing/regional-towns-a-budget-property-investment-option-but-avoid-one-industry-mining-towns-monique-sasson-wakelin">tourist towns are also potentially under this banner of being ‘unusual’ regional areas</a> that offer one major driver and little protection if that industry should drop.
Here are the pros and cons to start thinking about.
For home buyers:
PROS
<ul>
<li>Cheaper entry points 
</li>
<li>“Tree change” lifestyle 
</li>
<li>Extra government incentives may be available</li>
</ul>
CONS
<ul>
<li>Volatility (due to smaller populations, and single industry towns can suffer quick downturns) 
</li>
<li>Infrastructure and loss of busy city lifestyle doesn’t suit everyone 
</li>
<li>Getting employment can be tricky</li>
</ul>
For investors:
PROS
<ul>
<li>Cheaper entry points 
</li>
<li>Often higher yields 
</li>
<li>For those with investments or a home in a city, it can offer some diversification for the portfolio 
</li>
<li>May be less competition to purchase in</li>
</ul>
 CONS
<ul>
<li>Volatility (due to smaller populations, and single industry towns can suffer quick downturns) 
</li>
<li>Can be a smaller tenant pool 
</li>
<li>Decent property management in some areas can be a challenge 
</li>
<li>Infrastructure isn’t always as forthcoming 
</li>
<li>The same supply restrictions seen in many capitals are not as evident 
</li>
<li>Can be hard to renovate/repair a property yourself if it’s not located near you 
</li>
<li>The same lack of competition when buying in may mean that it takes longer to sell</li>
</ul>
Regardless of whether you’re buying solely as a home, or as an investment, it’s worthwhile considering market fluctuations and the volatility of some areas – particularly smaller markets.
Angus Raine, from Raine &amp; Horne, previously provided these three things to look out for when purchasing in a regional area:
<ol start="1">
<li>Robust economies 
</li>
<li>Strong employment prospects 
</li>
<li>Population growth</li>
</ol>
With these points in mind, it’s worth noting that many first time buyers have been taking the plunge into regional properties.
See over page for Q&amp;As with two home buyers who have done the regional shift
<hr class="system-pagebreak">
 
It’s all well and good talking about moving regionally – but who's actually done it?
Here are two examples of young first time buyers who have purchased regional property.
These New South Wales based home buyers all moved to an "<a href="https://www.evocities.com.au/" target="_blank">Evocity"</a>, a joint initiative between the state's regional cities: Albury, Armidale, Bathurst, Dubbo, Orange, Tamworth and Wagga Wagga.
Name: Matilda Julian
Age: 29
Employment: Self-employed solicitor
Salary: $50,000 - $60,000 per annum
<img src="/images/2014/09/24/IMG_20130512_165033.jpg" alt="">
House, Geurie, Dubbo, NSW
Year purchased: 2009
Number of bedrooms, bathrooms, garaging and any other descriptor details: 2 bedrooms, garage
Cost: $250,000
Deposit:  $50,000 deposit
Why did you choose to buy in a regional area?
I relocated from Sydney to Dubbo after I graduated from University to start my career. I had also saved up some money and could afford to buy a beautiful house out here on my own.
Why did you want to buy here?
I have always been very a homely person, so I like to do things around the house like gardening and raising chickens. Therefore I wanted a property I could invest in for the long term, and within 6 months of moving to Dubbo I bought my own home.
Have you lived in a regional area before?
I grew up in Bilpin in the Blue Mountains, so I was used to open spaces.
How have you found living in the area?
I have found that community networking is strong in regional areas. In times when I have been out of work, my strong community contacts have allowed me to easily and quickly find employment. Due of the low cost of living and renting commercial areas, it is also (and in my experience) extremely viable to start small businesses in regional areas, without the risk associated in more metropolitan areas like Sydney.
How did you hear about the area and properties?
The local paper has a Domain section each week. I was browsing the section and saw the picture of the house I bought and still live in - It was something like love at first sight!
Has this been a significant lifestyle shift for you?
Yes, I now live on three acres of land, with space to have a dog, chooks and a vegetable garden. When I lived in Ashfield I didn’t know my neighbours and I couldn’t mentally bring myself to maintain the garden because of limited time I had and I didn’t know how long I would live there.
How long do you see yourself living here for?
I could stay here and be happy. I am open to moving, but now it would have to be for a significant reason, such as falling in love. But the idea of never moving again is a nice one.
 
Name: Marilyn and Tim Stebbings
Age: 34 and 39
Employment: self-employed, Corporate debt recovery consultant and event manager
Salary: $55,000
<img src="/images/2014/09/24/House%20front.jpg" alt="">
House, 1,667sqm block, East Tamworth, NSW
Year purchased: 2012
Number of bedrooms, bathrooms, garaging and any other descriptor details: Amazing views, 4 bedrooms, 2 bathrooms, 2 care spaces, huge lounge room with views all over town, renovated kitchen, renovated bathroom, large laundry with sewing area, polished timber floors, fire place, ducted reverse cycle, beautiful pool, full size tennis court, double car accommodation, work shop and loads of storage.
Cost: $450,000
Deposit: $200,000
Why did you choose to buy in a regional area?
I had lived in Sydney for 10 years and there was no way Tim and I could afford to buy in the suburbs we wanted with the house size we needed to accommodate our two young children. So we decided to look outside of Sydney to enter the property market and to better manage our work/life responsibilities.
Once Tim secured a position with Tamworth’s local Motor Group, we made the decision to move to Tamworth, and were surprised to find that within only a few months we have been able to purchase a house and our cost of living has reduced.
Why did you want to buy in Tamworth?
First of all, Tamworth is a beautiful area to raise and grow a family. Also, we wanted a house and backyard with plenty of space for our kids and their friends to play and enjoy themselves. We really wanted our house to be a self-contained entertainment centre with a swimming pool, tennis court and space to run around so they could stay at home more and we could enjoy time as a family.
Have you lived in a regional area before?
I have always lived in capital cities. I was raised in Perth and moved to Sydney when I got older. So making to transition to Tamworth was a little bit of an adjustment for me. But Tim on the other hand grew up in a similar sized city in New Zealand, so he made the change very easily.
A common view of regional areas is that they do not have many employment opportunities, or leisure options. What has been your experience of this?
I do not agree with this. There are plenty of job opportunities in a very large range of industries in Tamworth, especially as the city grows more. I have also noticed there is a lot of potential for people to start businesses and be hugely successful too.    
How did you hear about the area and properties?
Tim and I love to scan realestate.com.au from time to time and we happened to stumble across our current house. At first we weren’t too keen on it from the images we saw. But we decided to take a walk through of the house anyway and ended up buying the house!
Has this been a significant lifestyle shift for you?
Yes, having the husband home more and being able to work my life around the kids instead of them work around mine. It has also been great to expose the kids to some unique experiences like milking dairy cows, something they probably won’t have done if they lived in Sydney.
How long do you see yourself living here for?
To start off we were committed to staying in Tamworth for 2 to 5 years. However, the longer we stayed here, the more friends we made and the more we got involved with the community we actually increased our commitment to 15+ years. So really a long-term plan to live here.
Read over the page for their five steps to a successful regional relocation
<hr class="system-pagebreak">
Home buyers looking for regional options will find themselves easily catered for, even if currently looking in the capital cities. With state and territory government pushes on to get skilled workers moving to regional areas, regular expos and events are held to help people move further out. For instance, the <a href="https://www.goodmove.vic.gov.au/" target="_blank">Regional Victoria Living Expo </a>that is held each year from Good Move, a government initiative, showcases all the different regions. 
They have five steps they suggest for a successful regional relocation:
<ol>
<li>
DO YOUR HOMEWORK Think about what you’re looking for and what you would like around your new home. Whether it’s schools, housing, certain kinds of employment, health care, access to public transport, access to Melbourne – there’s bound to be a place that ticks all the boxes for you. Think about your spouse’s employment needs and how they can be met too. 
</li>
<li>
VISIT BEFORE YOU DECIDE There’s no substitute for spending time in an area. Get to know some of the locals. Ask them about the area – what’s good and not so good. Talk to real estate agents, school principals, hospital administrators, business owners and local Council staff. Explore the different kinds of lifestyle – regional city, a small town or hobby farm. 
</li>
<li>
RENT FIRST IF YOU'RE NOT SURE If you’re in any way unsure about your move, rent before you buy. You can spend enough time to get to know an area without committing to a major financial decision. And if you decide this part of regional Victoria is not for you, it’s easier to explore another. 
</li>
<li>
TAP INTO THE COMMUNITY Regional Victorians are a friendly lot, so becoming part of your new community should happen very quickly. Through school, work, sports clubs and service clubs, there are people ready to reach out and make you welcome. So don’t be backward in coming forward. 
</li>
<li>
BE PATIENT It won’t happen in just a day. Give yourself time to build the networks and connections you need to feel at-home. Once you’ve moved, make sure you immerse yourself in exploring the area, particularly on weekends and holidays, rather than living ‘between’ Melbourne and your new home. You’ll be surprised how much there is to see and do in regional Victoria and you’ll feel more at home more quickly.</li>
</ol>
Source: Victorian Government’s Good Move
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