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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

<html><body>
Have you been refused a loan and concerned about looking elsewhere?
While there are a number of reasons you may not be eligible for the home loan you need, one may be that you aren’t seen as “serviceable”.
This, essentially, means that you are not deemed able to pay off the loan due to calculations that say you have too many other potential areas of debt that needs repaying or daily costs. If you are unsure what serviceability means, or how it is calculated, have a <a href="/expert-insights/finance/what-is-serviceability-investment-terms-explained">look at our investment terms explained article here</a>.
In the meantime, there are other things you can do to increase your serviceability and secure the loan you want.
<ol>
<li>
Shop around Firstly, see if you are calculated as being more serviceable elsewhere. An understanding of different lending policies, which a good broker may be a help with, can assist. You can read this article here about <a href="/expert-insights/finance/how-to-pick-the-best-mortgage-broker">choosing the best mortgage broker for you</a>. Different calculations are used by different banks and lenders. 
</li>
<li>
Pay down debt (and avoid taking on more!) If you can, it’s time to supercharge your debt repayments and clear them as quickly as possible. This is particularly good for buyers who are not intending to get into the market for some time. Avoid upgrading your phone to a new expensive plan and taking on increasing levels of debt, all of these additional costs will decrease your serviceability (and your borrowing power). You might also consider putting off that extra child until you've purchased - children, due to the high level of expenditure required to raise them, are seen in the "outgoings" category. Consolidating debt and spending some time paying this down may be one of the most important options here. 
</li>
<li>
Reduce credit card limits High credit card limits affect your serviceability – even if you haven’t used them to their limits and do not intend to. Reduce them as best possible. You can increase them after you have your loan. 
</li>
<li>
Decrease other overheads where possible Yellow Brick Road’s <a href="/expert-insights/finance/the-20-tips-to-ensure-you-get-your-loan">Mark Bouris recommends reducing your overheads</a>, as well as avoiding taking on more. “Fancy car leases, big smart phone plans and cable TV charges can reduce your net income and affect your serviceability,” he says as one of his 20 tips to ensure you get your loan. You could consider consolidating short-term debt into longer term debt to reduce your monthly repayments. 
</li>
<li>
Ensure all your income is taken into account Usually, tax returns and payslips are used to determine your income. If you receive substantial sums in bonuses or commissions each year that significantly lifts your overall earnings, and this hasn’t been addressed by your broker, then you want to bring it up. 
</li>
<li>
Split debt evenly with your partner You may be purchasing together, but if the property is to be secured in your own name then make sure you have evenly divided up liabilities between both of you. Noting down all the debt and outgoings as your own, rather than as 50/50 in your relationship, will significantly lower your personal borrowing capacity in the eyes of a lender.
</li>
</ol>
</body></html>

jduke-EHk3XBmHkn

Lender says no? Tips and tricks for increasing your borrowing capacity

<html><body>
First time buyers are, by definition, less experienced than those purchasing around them.
Competition is rife, the financial consequences are significant and every purchaser wants to buy well and make good decisions.
Despite this, there are mistakes that Property Observer hears first time buyers making regularly that are all avoidable. Here are our top 10.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-one.jpg" width="32" height="32" style="float: left;">Overextending yourself
There’s nothing more painful than diving in, thinking that you’re going to handle your repayments well, and then struggling each time your mortgage needs paying.
Property requires some hefty upfront costs, even if you’re getting a first home owner’s grant, and selling too soon because you aren’t prepared for the financial commitment can cause you to lose money in the long run, or living off of tinned baked beans.
Think this isn’t common? In October 2013, a <a href="/expert-insights/almost-50-new-buyers-concerned-about-affording-repayments-mortgage-choice">Mortgage Choice survey saw almost 50% of new buyers concerned about being able to afford their repayments</a>. Ensure you aren’t one of them.
Solution: Prepare yourself in advance and get honest about what you can afford. This means knowing about the process of getting your first loan, the implications and ensuring you know what you can and cannot put aside in the way of funds.
<ul>
<li><a href="/expert-insights/buying/getting-your-first-loan-heres-what-you-need-to-know">Getting your first loan? Here’s what you need to know </a></li>
<li>
<a href="/expert-insights/buying/getting-your-first-loan-heres-what-you-need-to-know">Preparing yourself for debt: </a><a href="/expert-insights/buying/preparing-yourself-for-debt-10-things-to-do-now-to-make-home-ownership-easier">10 things to do now to make home ownership easier</a>
</li>
<li><a href="/expert-insights/finance/what-to-do-if-you-are-in-mortgage-stress">What do I do if I am in mortgage stress?</a></li>
</ul>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-two.jpg" width="32" height="31" style="float: left;">Purchasing for the wrong reasons
There are many reasons to consider home ownership and there are many reasons people opt to continue renting or to push back their property buying goals. These are individual circumstances and no one, other than yourself, can decide whether or not entering into a long-term mortgage and financial commitment is going to be right. 
Unfortunately, many home buyers buy for the wrong reasons – this could be due to familial or peer expectations, “fear of missing out” or any number of reasons. You do not want to resent your decision.
Solution: Make sure you buy when you’re ready, and you know the reasons why home ownership is important to you. This is no small decision, and should be looked at logically and carefully.
Think about your ‘pros’ and ‘cons’ and always try to be your own devil’s advocate.
Finally, ask yourself: Why do I want to buy a property? Never feel rushed into a purchase.
<ul>
<li><a href="/expert-insights/buying/the-10-signs-that-you-may-not-be-ready-to-buy">The 10 signs that you may not be ready to buy</a></li>
<li><a href="/expert-insights/renting-v-buying-how-does-it-stack-up-for-you">Renting v buying: How does it stack up for you?</a></li>
</ul>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-three.jpg" alt="" style="float: left;">Not researching an area properly
It's easy to get swept up in buying the perfect home and not thinking about whether it's in the perfect area.
Big backyards, high ceilings and nice furnishings are all fun - considering whether the suburb is well serviced by public transport, serves as an employment hub, has good schools or houses unattractive factories is not so fun.
But the suburb of your prospective purchase is one of the main determinants of its future (and current) value, so pay attention.
Even if the house is perfect, many people search for properties by area, not house type, so it could go unnoticed when you're trying to sell the home.
Solution: Check out suburbs' median prices and historical price growth. See if it offers amenities that attract other buyers, and keep an eye on any news (like future infrastructure developments) that could affect its future value.
<ul>
<li><a href="https://www.propertyobserver.com.au/finding/location/suburb-data" target="_blank">Our suburb data pages </a></li>
<li><a href="https://www.propertyobserver.com.au/finding/residential-investment/suburb-spotlights" target="_blank">The suburb spotlight series </a></li>
</ul>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-four.jpg" alt="" style="float: left;">Not getting the right insurance
Insurance is another part of a home purchase that often goes overlooked - it's hardly as exciting as the other parts of a house hunt.
If you're purchasing your first home with a deposit under 20%, you'll often need lenders mortgage insurance, to protect the lenders against a default. It's worth investigating this option as it could affect how you buy your home. But once you purchase your home, you'll need to protect yourself against natural disaster, vandalism or theft, which can all cost you a lot of money at unexpected times.
You also might find yourself in financial hardship if you are injured or suffer an illness down the line.
Solution: Home and contents insurance will protect your assets, and personal insurance will protect you (don't think you're too young to need it). Income insurance will help cover you if your income is ever threatened by illness or injury and you find it hard to keep up with your mortgage payments or bills.
<ul>
<li><a href="/expert-insights/investing/first-home-buyers-need-personal-insurance-joe-sirianni">First home buyers need personal insurance</a></li>
<li><a href="/expert-insights/investing/ask-margaret-do-i-need-flood-insurance-if-i-pay-body-corporate-fees">Ask Margaret: Do I need insurance if I pay body corporate fees? </a></li>
<li><a href="/expert-insights/buying/you-insure-your-home-so-why-not-your-income">You insure your home, but why not your income?</a></li>
</ul>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-five.jpg" alt="" style="float: left;">Taking “bad” advice
"Spruikers", "property sharks"; you’ve probably heard all the names given to the charlatans of the property industry.
However, bad advice comes from all quarters – family, paid advisers and members of the industry. Many property buyers have bought in areas on bad advice, even from well-meaning uncles and aunts at a barbecue, and have paid for it in opportunity cost and often more.
Solution: Do your due diligence on all the advice you’re given. This may mean double checking the reasons someone thinks an area is a hotspot and doing research on the area yourself. It could be checking to see whether that person is really looking out for your best interests.
Bad advice takes many forms, <a href="/expert-insights/investing/the-deadly-formula-of-bad-investment-advice">even masquerading as news on occasion</a>, and you must always be careful about the information you take onboard.
<ul>
<li>The property investment pandemic: <a href="/expert-insights/the-property-investment-pandemic-how-to-avoid-spruikers-and-bad-advice">How to avoid spruikers and bad advice </a>
</li>
<li>Free advice: <a href="/expert-insights/buying/free-advice-five-experts-you-can-go-to-for-information">Five experts you can go to for information</a>
</li>
</ul>
This article continues on the next page. Please click below.
<hr class="system-pagebreak">
 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-six.jpg" alt="" style="float: left;">Not getting a building inspection
While it's easy to tumble into the purchase process, you need to know that the house you're hoping to buy is stable and sound - especially if you're not familiar with properties. If you don't carry out a building inspection before purchasing a home, you could be saddled with an unsafe house with structural problems or asbestos.
Those problems will end up costing you a lot of money to fix up further down the line.
If you're intending to carry out renovations or alterations in the future you need to know what is possible with the existing house.
Solution: Before you sign a contract, have a reputable independent builder carry out a building inspection. While they may not be able to catch every problem, they can save you from making a bad purchase. <a href="/news/how-to-choose-a-building-and-pest-inspector"></a>
<ul>
<li><a href="/news/how-to-choose-a-building-and-pest-inspector">How to choose a building and pest inspector</a></li>
<li><a href="/expert-insights/investing/the-importance-of-building-inspections-in-property-transactions">The importance of building inspections in property transactions </a></li>
<li><a href="/expert-insights/buying/how-to-navigate-the-building-and-pest-inspection">How to navigate the building and pest inspection</a></li>
</ul>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-seven.jpg" alt="" style="float: left;">Being unwilling to compromise
Buying your first house is a big decision, and one you want to get right. But know now: there's no such thing as the perfect property. If you're operating on a tight budget, don't expect to get a perfect home, with the perfect aspect, in your dream suburb, down the road from your favourite cafe. You're at the beginning of your property buying journey, not the end of it.
Waiting too long for the perfect home may leave you downwind of a market that's long left you behind. You may realise that the three bedroom house that was 10 minutes further out than you had hoped for is now well out of your budget, even though you could have purchased it six months ago.
Solution: To know when to compromise and when to stick to your guns, think about the fundamentals that affect property values - location, land size and aspect, among others - and think about much they matter to you and to potential buyers further down the track.
Remember to consider your wants in the future - will you want to stay in this home for more than 10 years, or are you planning to move overseas or to a more familiy-friendly house later on?
The best house you can afford now might not be the best house for you in the future, and that's alright.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-eight.jpg" alt="" style="float: left;">
Not getting pre-approval
It’s a simple step, but one that many don’t consider: the simple pre-approval.
Not obtaining this piece of assurance, even with the limitations it has, can leave you unsure about what you can afford to purchase and subsequently nervous in an auction situation.
It may cause you to bid beyond your means and put you in substantial strife, particularly when buying at auction where cooling off periods and other conditions do not apply. Consider pre-approval a little added boost of confidence.
Solution: Get home loan pre-approval!
Understand the restrictions around the approval, and know how regularly you need to have it updated, however going through this process is one of the most powerful pre-auction and pre-property searching steps you have available.
It will also let you know what property is and is not within your purchasing range, allowing you to rule out some of the pricier options you’ve been looking at earlier on – before you get too attached.
<ul>
<li><a href="/expert-insights/finance/a-quick-guide-to-home-loan-pre-approval">A quick guide to home loan pre-approval</a></li>
<li><a href="/news/five-things-you-must-do-before-buying">Five things you must do before buying</a></li>
<li><a href="/expert-insights/finance/why-you-should-secure-finance-pre-approval-before-looking-for-property">Why you should secure finance pre-approval before looking for property</a></li>
</ul>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-nine.jpg" width="33" height="31" style="float: left;">Buying with the wrong person
It could be your best friend, your sibling, or even your spouse - no matter who it is, it only takes one person in a property buying duo to sink the ship.
As soon as you purchase with another person, you'll realise that their financial woes are your financial woes. Suddenly, you'll be very interested in their employment status, their spending habits and their ability to make mortgage payments.
Solution: If you're buying with another person, make sure you have clear and simple financing arrangements, with a contingency plan. Also consider your future investment plans - if you decide you want to sell the house when the market is hot in five years but your friend wants to stay on, or she decides to move overseas, you'll be faced with some difficult decisions.
Make sure you go into any buying decisions with open eyes, and think about having a lawyer go over any joint financing agreements you make.
<ul>
<li><a href="/expert-insights/buying/should-i-buy-a-property-with-a-friend-six-things-to-consider-first-ask-margaret">Ask Margaret: Should I buy a property with a friend? </a></li>
</ul>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-ten.jpg" width="32" height="31" style="float: left;">Buying when it’s too “hot”
A hot market, where everyone is rushing in to buy buy buy, is not always going to be the most prudent place for a first home buyer to look.
Investors regularly rush in and lose money by seeking to make a quick buck in a hotspot. It’s commonly said that when you’re buying with the crowd, you’ve missed most of the growth already.
First time buyers are especially vulnerable to the market’s heat and inexperience. At a busy auction, it can be much easier to overpay if bids are busy and emotions are running high. If you can’t stick to your guns on what you’re prepared to pay, then you should not be considering a market that’s running too hot.
Solution: Know how to identify a market that is hot, <a href="/news/nsw/the-market-psychology-behind-the-sydney-property-boom-pete-wargent">the reasons behind it</a>, and determine whether the prices are still reflecting market value.
By this stage, you should know the markets that it would be prudent to take a step back from or to enter with caution.
And if you are going to consider it? Here are <a href="/expert-insights/investing/tips-for-buying-in-a-hot-market">some tips for buying in a hot market</a>.
<ul>
<li><a href="/expert-insights/buying/my-advice-for-buying-in-a-hot-market-dont-terry-ryder">My advice for buying in a "hot" market? Don't: Terry Ryder</a></li>
<li><a href="/expert-insights/buying/investor-saturation-in-suburb-hotspots-will-have-consequences-for-residents-and-investors">Investor saturation in suburb hotspots will have consequences for residents and investors</a></li>
<li>
<a href="/expert-insights/investing/overheated-markets-set-to-see-a-2015-correction">Overheated markets set to see a 2015 correction</a><a href="/expert-insights/buying/investor-saturation-in-suburb-hotspots-will-have-consequences-for-residents-and-investors">: Michael Matusik</a>
</li>
</ul>
</body></html>

10 first time buyer mistakes and how to avoid them

<html><body>
For first time buyers looking for inner city living, studio apartments can be a tempting choice.
With no walls between the "bedroom" and living areas, studio apartments can be a good deal smaller than one bedroom apartments - and therefore cheaper.
A search for studio apartments in capital cities will certainly throw up cheaper and more central opportunities than can be discovered with any other property type.
This studio apartment at 204/268 Flinders Street in Melbourne is on the market with a price guide of $158,000, <a href="http:/www.realestate.com.au/property-studio-vic-melbourne-117636635" target="_blank">through Spencer Nguyen and Robert Eggers of Dingle Partners</a>. You would be hard pressed to find a non-studio apartment in such a central location.
A quick look at the apartment's floor plan reveals why it's so cheap: The bedroom doesn't share the space with the living room - there is no living room. There's hardly room for a bed, with a total area of around 18 square metres.
<img src="/images/2014/09/12/studio2.jpg" alt="">
While a studio of that size may seem unappealing to live in, they can offer attractive yields. According to the listing information, this studio is currently leased at $1,304 a month, representing a yield of 9.9%. So if you don't intend to live in a shoebox studio but instead want to rent it out, you could be receiving good value - if you feel comfortable renting it out to another person.
Such small studios in central locations are often popular with international students who need to be close to universities and haven't brought a lot of belongings. However, that can mean that the rental income is subject to seasonal variation.
This particular property was purchased for $173,000 in 2005, so the owners will have made a capital loss if it sells for its current asking price.
However, one studio apartment doesn't represent the entire market. There is plenty of variation out there in the studio market, from student shoeboxes to bright warehouse conversions. And of course, the more you pay, the better the apartment.
As with any other property, make sure you're not carried away by price. Consider the quality of the apartment you're hoping to purchase, the area and its attractiveness to future buyers and renters (remembering that both offer different gains for you).
If you're hoping to occupy the property, you should be open to compromise, but don't get carried away. Think about whether you would be happy living with a bed a metre away from your kitchen, or if it might be more prudent to save for a few more years before jumping into the market.
</body></html>

jrichardson-uRX5hFdKfN

Are studio apartments a good pick for first home buyers?

<html><body>
It make sense to go to some local auctions as part of your research and due diligence – even if you’re not quite ready to purchase yet.
If it’s going to be worth your time and effort, then you need to know what it is you’re looking to learn. For instance, here's what Catherine Cashmore took away from <a href="/news/eight-lessons-to-learn-from-the-blocks-lacklustre-auction">The Block 2011's lacklustre auction result</a>.
Here are the five things that you should be trying to gain from heading to an auction.
<ol>
<li>
Market activity After you’ve been to a few auctions in an area, you should start to get a feel for the demand for property. Is it strong? Are there lots of bidders? Remember that just because a property draws a crowd, those attending may just be watching – and may not be genuinely interested in purchasing. Taking note of how busy it is on the day is one thing, but you should also note how many bids are made and how competitive the bidding becomes. This will let you know whether you will likely be entering an auction that will be quiet. Potentially this could give you the upper hand for lower bidding and negotiating if the property is passed in, or knowing if you need to put all your cards on the table. Keep an eye out for repeat bidders regularly attending auctions of similar properties – this can suggest who the highly motivated buyers are. 
</li>
<li>
Comparative pricing Another useful thing to note about auctions is exactly what price they end up selling or passing in for. It may take some time for auction results to be properly recorded, depending on the area you’re considering and the type of property and so to get the most real-time information possible it’s worth visiting a few. As you get to normally inspect the property one last time prior to auction, you can also note how much it went for and whether it is inferior or superior to the property you have your eye on. This should quickly let you know if what you’ve been estimating to spend will achieve you the property you want in the area. 
</li>
<li>
Reserve prices Another factor to note down is when the property is officially “on the market”. While you can’t always get a specific indication of reserve price, when a bid goes above it the auctioneer will tend to announce this. Every property is different and every vendor will set a different reserve, but this will help you prepare your strategy and to know when you might be interested in bidding. If you want to be the top bidder when a property is passed in, this will be of particular interest. 
</li>
<li>
Common language used and strategies Familiarising yourself with strategies used by buyer’s agents and common prospective purchasers, as well as the weaknesses that others have when bidding, can prepare you for when it’s your time to bid. Regular, auction success is said to be <a href="/expert-insights/investing/winning-at-auction-isnt-amount-having-the-most-money-its-about-strategy">all about the strategy you employ</a>. It’s worth also getting to grips with the process and the type of language used by auctioneers and the increments of bidding so that you don’t get thrown off. Familiarise yourself with the process so you’re more comfortable when it’s your turn. You can also become familiar with local auctioneers’ styles. Some are very good at hyping up a crowd and drawing out the bids. You should be prepared for how they may auction the property you really want. Here's Patrick Bright's <a href="/news/understanding-auction-talk-patrick-bright">guide to understanding "auction talk"</a>. 
</li>
<li>
Neighbourhood information from locals The final factor to keep an eye out for is how the locals react and what they say. A neighbour may tell you that a developer has been around trying to purchase all the properties in a specific block or of a certain size. Another might tell you about any reasons people are leaving the street, or even about other neighbours. As local experts in their own right, it pays to listen – the information may be crucial later on. Don’t feel as though you can’t ask them about the good and bad streets, or if they know of any other properties coming up for sale. As with all information, do your due diligence and confirm it yourself, but it may just lead you on to better things.
</li>
</ol>
YOU MIGHT ALSO WANT TO READ:
<a href="/expert-insights/buying/twelve-tips-for-bidding-at-property-auctions">12 tips for bidding at auction </a>
<a href="/expert-insights/buying/buying-your-first-property-at-auction-a-step-by-step-guide">A step-by-step guide to buying your first property at auction</a>
</body></html>

Not ready to buy yet? Five things you can still learn at auction

<html><body>
Property and banks are seen as the safest places to put your money, according to the latest Westpac/Melbourne Institute index of consumer confidence.
Banks were seen as the wisest place to put new savings, with 34.3% selecting this option, up 6.8% over the quarter.
Another 25.7% of respondents were keen to put savings into property.
In the past 41 years, CommSec chief economist Craig James noted that there have only been five higher readings for consumer confidence in banks.
Paying off debt was the choice of 13.7% of those surveyed, followed by shares and superannuation at 8.5% and 4.0% respectively.
“Aussie consumers aren’t keen to spend any extra money they have or to pay off any more debt, believing the funds should just stay in the bank or go towards a property purchase,” said James.
Despite this, the statistics around whether consumers believed it was “time to buy a dwelling” noted that those saying it is the time dropped 8.2% in the September quarter. This is now 23.2% down over the year.
“Investors don’t seem to agree according to latest lending figures,” noted James.
It was noted that the Reserve Bank is likely not to move before 2015, while the savings intentions are positives for the financial sector and for home building stocks.
</body></html>

 Banks and property seen as wisest places to put new savings

<html><body>
Grandparents Carole and Russell Bramston are selling the Boya home that was renovated by their team mates on Channel 7's House Rules earlier this year.
The Western Australian couple were runners up on the series, losing out to <a href="/expert-insights/building/underdogs-adam-and-lisa-win-house-rules-season-two">Melbourne's Adam and Lisa</a>.
They purchased the Boya home (pictured above prior to the House Rules renovation) off <a href="/expert-insights/building/house-rules-would-you-buy-a-home-off-gumtree-without-a-building-inspection-report">classifieds website Gumtree</a> for $360,000, and ended up with a home riddled with structural and superficial problems, including plumbing issues, mould, pest problems and holes in the floors and walls.
Carole told <a href="https://www.watoday.com.au/entertainment/tv-and-radio/house-rules-couple-carole-and-russell-to-sell-boya-home-20140912-10fubi" target="_blank">WA Today</a> that if the couple had won House Rules and had their $290,000 mortgage wiped clean, they would have kept the home. After losing, they're now hoping to offload the home to help them downsize and enter a mortgage free retirement.
The couple said they plan to use the sale of their Boya home to fund a move to the riverside suburb of Ascot, where they intend to build small townhouse.
Earlier this year, Carole and Russell faced accusations that they weren't the "battlers" they were portrayed as on television due to their <a href="/expert-insights/building/house-rules-contestants-hardly-on-struggle-street-say-critics">three bedroom Halls Head home</a> that they were intending to sell for $1.17 million.
However, the couple told WA Today that the Halls Head home "has a massive mortgage over it", and that they could not afford to live in it. It has since been removed from the market, after the asking price was lowered to $995,000.
Carole and Russell are not the first couple from the second season of House Rules to attempt to offload their renovated homes. Candy and Ryan sold their Emu Plains house <a href="/expert-insights/buying/house-rules-candy-and-ryan-secure-190-000-emu-plains-sale-flip-success">sold their house</a> in late August for $190,000 more than the initial purchase price.
</body></html>

House Rules' Carole and Russell offloading renovated home

<html><body>
Auctioneer Damien Cooley will be selling Simon and Shannon's apartment on The Block Glasshouse, marking Cooley's sixth appearance on The Block.
This time, he's teaming up with Andrew McCann at Jellis Craig Bennison MacKinnon, a managing director at the agency.
Cooley was most recently seen on The Block Fans v Faves, where he auctioned Kyal and Kara's apartment. The pair won $565,250 after Cooley secured a $2.44 million price for their three storey Albert Park conversion. Kyal and Kara came third overall last season, after winners Steve and Chantelle, who sold their apartment for $2.47 million ($636,000 above the adjusted reserve) and twins Alisa and Lysandra, whose offering attracted a $2,375,000 bid ($616,000 above the reserve).
Tasmanian brothers Simon and Shannon will be hoping Cooley can repeat his performances on the second and sixth seasons of The Block, where he secured wins for Andrew and Jamie and Phil and Amity respectively.
Cooley's debut on The Block came in season two, when he auctioned the winning apartment. Andrew Rocheford and Jamie Nicholson's renovated manly apartment earned the then couple $78,000 plus an additional $100,000 winner's prize.
He returned for the show's third season, auctioning Mark and Duncan's renovated apartment. The duo made the lowest profit of any of the teams that season, with a $47,000 profit.
But Cooley improved greatly on that result with the sale of Phil and Amity's apartment in The Block All Stars.
The winning couple made a $295,000 profit when Cooley secured a $1.67 million bid for the two bedroom Bondi apartment.
Cooley also auctioned Matt and Kim's apartment on The Block Sky High, delivering a $1,205,000 million price for the couple, who took home a $250,000 profit.
The auctioneer is no stranger to television outside of The Block. He has also appeared on The Renovators, Under the Hammer, Hot Auctions and Selling Houses Australia.
All the teams on The Block Glasshouse have <a href="/expert-insights/building/karl-gillon-takes-on-his-third-televised-the-block-sales-campaign">secured agents</a> ahead of their 11 October auctions. Maxine and Karstan have already begun their marketing campaign, advertising their apartment on listing websites. Early in the season, the couple also discussed creating a marketing book for prospective buyers to thumb through on their way through the home.
Ray White agent Matt White has also been busy marketing Michael and Carlene's unit, with two private invitation only inspections. So far, 130 people have inspected the apartment.
White said the apartment received a positive response at the exclusive inspections.
"The inspections weren’t open to anyone, we selected serious buyers and investors, buyers agents and Ray White colleagues with active buyers in the area to view the property," said White.
The public will have a chance to see the apartments for themselves at a rather less exclusive event - the open for inspections. All five apartments will be open to the public on the weekend of 20 September and 21 September.
Picture courtesy of Channel 9.
</body></html>

The Block's Simon and Shannon bring back auctioneer Damien Cooley

<html><body>
This week we've been designing new duplexes to build in a more upmarket location.
We've been studying floor plans with our builder and their draftswoman. The villas are three bedroom, master with en suite and main bathroom, separate living room open plan kitchen, dining and living space with alfresco dining under the roof.
I'm excited about our plans as I think we've managed to design in all the essentials and a few luxuries and we replaced what was originally a second linen press with a built in cabinetry study nook to complete our new plan. There was already a full size laundry with storage and another linen cupboard, each bedroom has built-in robes and the master with a walk-in-robe, there was plenty of storage, which tenants love.
But one area we were not sure about was whether we should separate the toilet from the main bathroom?
A separate toilet compartment can be the ultimate in privacy but it may also seem a little confined or closed in.  We had a generous space already for the main bathroom but when we looked at combining the toilet in this space, we would have a more luxurious area to work with.
We ended up including the loo in the main bathroom and adding a privacy panel to give the sense of separation and hide the toilet as you entered. This gave scope to upgrade our bath to a larger size.
One client asked if we should use an in-wall cistern for the toilet to make it even sleeker but I was dead against that idea. Whilst it can look very stylish, these villas are to be used as rental properties and if there is a repair required on an in-wall system, it can be very expensive to fix.
Another conversation we had was whether to include a double bowl to the 1,200mm wide wall hung vanity in the main bathroom.  I tend to like more surface area that a single sink gives and the extra storage opposed to a double basin (that takes up some of the storage space) but this is a personal choice. The villas are three bedrooms and likely to lease to young families, so kids lining up at one sink to clean their teeth may be an issue. 
We switched our attention to the external façades to ensure that even though the villas are attached and part of a duplex, they still look different. We did this by separating the garages so each villa will have its own driveway and the front entrances and windows are different. We've used gables to the roof line on one side and used texture to differentiate them.
The main building is face brick but on one side will have some weather board cladding. On the other side we'll use a coated brick finish to give another dimension to the texture. One side has brick pillars to the entrance and the other side has painted timber posts. Each front door is a different design as are the windows on the front façade. 
Finally, we will use a different landscape design to the front of each villa to finish our individual look. The last thing we want is for the duplex to look 'mirror' image (which is so 1980s).
Spending time on creating some great designs is fun, but it also very important that we build the right dwellings to suit their environment.
In this case we think we've hit the nail on the head.
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
</body></html>

jochivers-wq5Bp59R5a

The elements that create a great duplex design

<html><body>
The Australian Bureau of Statistics (ABS) released housing finance data for July 2014 earlier this week. 
The headline result was the 0.3% rise in owner occupier housing finance commitments over the month.  In my opinion, a more significant result was the 6.8% monthly rise in investment lending. 
Investment lending had shown signs of slowing over recent months but has come surging back in July.
<img class="aligncenter size-full wp-image-3700" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-11.jpg" alt="Chart 1" width="500" height="182">
Looking at the value of housing finance commitments over the month, the total value increased by 2.7% in July (2.6% excluding refinances).  Owner occupier refinance commitments increased by 3.1%, owner occupier new mortgage commitments fell by -1.3% and investment finance commitments increased by 6.8%. 
Year on year, the total value of finance commitments has increased by 17.4% or 17.2% excluding refinances. The year on year increase in owner occupier refinance commitments was 18.6%, new home loan commitments to owner occupiers were 7.1% higher and lending to investors surged 29.6%. 
In the current climate, subsequent purchasers and investors are occupying the majority of housing finance demand.
<img class="aligncenter size-full wp-image-3701" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-21.jpg" alt="Chart 2" width="500" height="182">
Looking at the same data but focussing on the proportion of total lending reconfirms the high level of lending to investors and subsequent purchasers. 
In July, 41.4% of total mortgage lending was for new loans to owner occupiers, 18.3% was to owner occupiers for refinances and 40.3% was to investors.  The 41.4% of total commitments to owner occupiers (excluding refinances) was the lowest proportion of lending to this cohort on record. 
Conversely, at 40.3% of all mortgage lending, investment lending was at its highest proportion since October 2003 (and second highest ever).  If you remove refinances from the equation 49.3% of lending was to investors which was a record high.
<img class="aligncenter size-full wp-image-3702" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-31.jpg" alt="Chart 3" width="500" height="181">
Data focussing on the number of loans to owner occupiers shows there were 52,251 owner occupier commitments in July.  The number of commitments rose by 0.3% over the month however, it has recorded only a moderate 1.7% rise year on year. Loans for refinancing purposes increased by 2.4% over the month and 6.6% year-on-year compared to a -0.7% fall in non-refinanced loans over the month and a -0.7% fall over the year. 
This data and the data previously detailed suggest that demand from owner occupiers for new loans has slowed with investors and refinances currently driving activity.
<img class="aligncenter size-full wp-image-3703" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-41.jpg" alt="Chart 4" width="500" height="179">
The owner occupiers that commit to finance overwhelmingly commit to finance for the purposes of purchasing an established dwelling. 
In July, there were 25,469 new owner occupier loan s (excluding refinances) for the purchase of established dwellings, 6,157 for construction of new dwellings and 2,871 for the purchase of new dwellings. 
Over the month, established dwelling commitments were down -0.7%, construction of dwellings were -1.3% lower and purchase of new dwellings was 0.5% higher. 
Year on year, commitments for the purchase of established dwellings are -3.6% lower while commitments for construction are 16.4% lower and commitments for purchase of new are -5.1% lower.
<img class="aligncenter size-full wp-image-3704" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-51.jpg" alt="Chart 5" width="500" height="181">
The number of housing finance commitments by first home buyers remains stuck at near record low levels. 
In July, there were 6,717 housing finance commitments to first home buyers, which accounted for 12.2% of total owner occupier commitments over the month. 
The number of first home buyer housing finance commitments is -2.2% lower over the month and -15.7% lower year-on-year.  While the number of commitments by first home buyers is lower over the year, the average loan size has risen by 7.0%. 
First home buyers largely remain on the sideline in the current market as investors and subsequent purchasers capture much of the mortgage demand.
<img class="aligncenter size-full wp-image-3705" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-61.jpg" alt="Chart 6" width="500" height="181">
Based on current mortgage rates, fixed rate loans generally have a lower interest rate than discounted variable loans. 
This is not necessarily unusual however, housing finance data showed that there were just 7,553 owner occupier finance commitments (or 13.7% of all owner occupier finance commitments) on a fixed rate in July.  The number of fixed rate loans has been trending lower after most recently peaking at 17.4% of all mortgage commitments in November 2013.
<img class="aligncenter size-full wp-image-3706" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-7.jpg" alt="Chart 7" width="500" height="264">
The RP Data Mortgage Index (RMI) which measures mortgage activity across RP Data’s proprietary platforms recorded a fall in August.  As this index is closely correlated with owner occupier housing finance commitments, we anticipate a fall in the number of owner occupier commitments next month when the ABS releases August data.
In volume terms, owner occupier loan demand is pretty steady and appears to be at or close to its peak.  Focussing on the value of lending it continues to climb as home values continue to increase. 
After seemingly topping out over recent months, investor commitments recorded a sharp rise in July.  As a proportion, investment lending is at its second highest monthly level ever and highest ever level if you exclude refinances.
The high level of investment lending remains a key area of concern.  With returns on safe asset classes extremely low many investors are purchasing property, mainly in Sydney and Melbourne where capital growth is strong and interest costs on loans are historically low.  As we have mentioned many times, such high rates of capital gain won’t continue forever and our concern remains what will happen if once the growth dissipates and interest rates move higher there may be a high number of these investors looking to exit property. 
We know that historically once value growth slows demand also eases, if these investors look to sell as demand drops a risk develops that value falls could become greater as these investors enter a discounting war in order to sell their homes. 
Obviously this may be good news for those first time buyers which are currently sidelined from the market, however it would be bad news for the two thirds of Australians that own or have a mortgage and have the majority of their wealth stored in their home in the form of equity.
</body></html>

ckusher-ujnxiKuFQs

Investor demand for housing reaches an historic high

<html><body>
A new ASIC MoneySmart poll has shone a bit of light onto the strategies of fruitful savers.
By polling those who are confident in their savings achievements, five strong trends emerged.
These were the five factors:
<ul>
<li>78% say they know how much money is needed 
</li>
<li>75% say they have a clear savings plan 
</li>
<li>73% say they regularly review progress towards their goal 
</li>
<li>72% say they have a specific saving timeframe 
</li>
<li>43% tell family and friends</li>
</ul>
It’s clear that tangible goals are stronger than general “save when possible” mantras. Being accountable to someone and setting yourself measurable targets are crucial.
“Savers who regularly review, remind themselves and publicly commit to their savings goals are those more likely to achieve them,” said MoneySmart’s senior executive leader Miles Larbey.
The majority of those surveyed were saving to buy or renovate a home, with 48% choosing this option. Meanwhile, 47% are saving for a holiday, 46% are saving for the future, 33% are saving an emergency fund and 13% are saving for a car.
With this in mind, ASIC launched a free app today, called TrackMyGOALS. It can be downloaded on the App Store or Google Play.
The app allows you to set your goals, your pay frequency, the total amount you are trying to save, allows you to track your progress and provides alerts when you need to add to your savings account. It appears to work best for long-term goals, but adding on a posh dinner out in a month could work as well.
You can have a number of goals set, and customise the colours for easier identification.
“There are also daily tips and, to help users stay motivated, they can visualise the outcome by uploading a picture of their savings goals,” said Larbey.
Here are some images from Property Observer’s playful trial run. It’s simple and easy to use (although it’s worth putting the cost before the date, as otherwise it looks to put your total cost goal as the amount you want to save per week.
Whenever you add money, you click on the goal, select the ‘add’ function, and type in the amount you’ve put aside. This then adds to a ‘history’ page, where you can track the amounts you have put into savings.
Our favourite feature is the ‘timeline’ function, that can serve to remind you both when you need to pay for something and to get you excited about reaching your saving goal.
<img src="/images/2014/09/11/smart%20saving%20sept%2011%20one.png" alt="">
<img src="/images/2014/09/11/smart%20saving%20sept%2011%20two.png" alt="">
<img src="/images/2014/09/11/smart%20saving%20sept%2011%20three.png" alt="">
<img src="/images/2014/09/11/smart%20saving%20sept%2011%20four.png" alt="">
<img src="/images/2014/09/11/smart%20saving%20sept%2011%20five.png" alt="">
</body></html>

Latest Expert Insights

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

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

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

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News