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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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>
Numbeo’s cost of living statistics for cities across the world provides an interesting comparison point for Australian cities.
Ranked by the rent index, Sydney soars to the top of the list as the most expensive. However, when ranked by the consumer price plus rent index, Darwin takes the lead. In fact, Perth, Sydney and Darwin fight for spaces on the Consumer Price Index most expensive (not including rent).
Here are the statistics to know:
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap width="88">
 
</td>
<td valign="bottom" nowrap width="80">
Rent Index
</td>
<td valign="bottom" nowrap width="223">
Consumer Price plus Rent Index
</td>
</tr>
<tr>
<td width="88">
Darwin
</td>
<td width="80">
75.99
</td>
<td width="223">
102.53
</td>
</tr>
<tr>
<td width="88">
Sydney
</td>
<td width="80">
83.08
</td>
<td width="223">
100.73
</td>
</tr>
<tr>
<td width="88">
Perth
</td>
<td width="80">
70.31
</td>
<td width="223">
99.43
</td>
</tr>
<tr>
<td width="88">
Melbourne
</td>
<td width="80">
59.37
</td>
<td width="223">
87.84
</td>
</tr>
<tr>
<td width="88">
Canberra
</td>
<td width="80">
63.17
</td>
<td width="223">
87.48
</td>
</tr>
<tr>
<td width="88">
Brisbane
</td>
<td width="80">
59.93
</td>
<td width="223">
87.02
</td>
</tr>
<tr>
<td width="88">
Newcastle
</td>
<td width="80">
56.59
</td>
<td width="223">
82.01
</td>
</tr>
<tr>
<td width="88">
Hobart
</td>
<td width="80">
49.67
</td>
<td width="223">
80.19
</td>
</tr>
<tr>
<td width="88">
Adelaide
</td>
<td width="80">
45.26
</td>
<td width="223">
79.43
</td>
</tr>
<tr>
<td width="88">
Gold Coast
</td>
<td width="80">
49.05
</td>
<td width="223">
79.17
</td>
</tr>
<tr>
<td width="88">
Wollongong
</td>
<td width="80">
48.33
</td>
<td width="223">
79.13
</td>
</tr>
<tr>
<td width="88">
Cairns
</td>
<td width="80">
41.08
</td>
<td width="223">
74.25
</td>
</tr>
</tbody></table>
 Source: Numbeo
</body></html>

jduke-EHk3XBmHkn

Cost of living v rent: How do the states compare?

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The Sydney and Melbourne property markets have sailed through their first big auction test at the weekend, as the start of spring saw a wave of properties hit the auction block.
More than 2,000 homes went to auction last week, with an impressive 1,179 of those properties selling under the hammer, according to RP Data.
The national clearance hit 72.2%, up from <a href="https://www.smartcompany.com.au/finance/investment/43422-auction-numbers-up-as-sydney-continues-to-lead-the-way">last week’s solid rate of 66.7%.</a>
“If you wanted to script the lead up to spring, you couldn’t have written it better than what happened at the weekend,” RP Data Victorian housing market specialist Robert Larocca said.
Australia’s two biggest auction markets led the way, with Sydney scoring a remarkable 81.1% clearance on its 769 auctions.
“Exceeding the 80% mark is a clear indication of a very strong auction market,” says Larocca.
“Vendors selling their homes within the next two months will be very happy to see that.”
Larocca says Melbourne also stood up to the test this weekend after a flat few months during winter, with a clearance of 71% on 888 auctions.
“Melbourne has now had three weeks of clearance rates above 70%, that’s a good indication of the strength of the market,” he says.
Adelaide also had a strong 66.1% clearance off the back of 86 auctions, while Brisbane and Perth again struggled with a clearance rate of 47% and 46.2% respectively.
Larocca says the market is closely following last year’s progression at this stage and is still highly dependent on the Reserve Bank of Australia’s historically low interest rates, with any move by the RBA to raise rates potentially taking the heat out of the market.
But he says all current indicators show things are certainly warming up for spring.
“Those that are looking to buy in spring will find there is an increased choice, but many will find the bidding is much more competitive than two months ago,” says Larocca.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
</body></html>

krobb-aCrRNnPq6D

Auction market sails through first big test of spring

<html><body>
It’s now spring and sellers who have been stuck with a stale listing, desperate to get their home to the right buyer for the right price, should be looking to re-vamp their sales approach.
Property Observer provided a <a href="/expert-insights/open-home-in-winter-here-s-how-to-enhance-your-property">number of open home tips for those trying to sell in winter</a>. Many will still apply, but with a new season now upon us it’s worth giving your entire approach another look, particularly if your property has been on the market for far longer than the average.
Spring is known in real estate circles as the ‘selling season’ and listings tend to increase over the period. Sellers still attempting to move their properties from winter may see a benefit, however you may also be facing an increased level of competition in the market.
RP Data’s Robert Larocca <a href="/news/how-big-really-is-spring-robert-larocca">looked into the industry’s assumption that sellers wait until spring to list their properties and found that this is actually true</a>. Last year, he found that over the last five years to September 2013 there had been an average of 29% more homes listed for auction in spring than in the preceding three months in Melbourne, although it did vary from year to year. The importance of ensuring your listing is competitive cannot be overstated.
Usually, a stale listing comes down to three major things – the price, the presentation and the marketing campaign.
The price
Has the market moved since you listed, and were you listing it at a reasonable price in the first place?
If you’ve pitched the price too high (having a look at what is currently selling on the market should help you ascertain this), then you need to re-consider or face having the listing sit for longer on the market. A small discount may be all it needs to push itself onto a buyer’s radar.
Ask your real estate agent to be honest with you about the market’s movements lately and enquire about what else they’re selling that is similar. These are your competition and if they’re priced lower then you may have a problem.
You can read <a href="/expert-insights/investing/how-to-determine-a-propertys-true-value-patrick-bright">Patrick Bright’s article on how to determine value</a> if you’re interested in double checking the price you expect to achieve for your property.
The presentation
Head onto a listings website and take a look at your property. Is the best picture chosen for the thumbnail ‘teaser’ image? Do you have professional photographs? Is the copy well-written?
It may be time for a complete overhaul, some new photos and some better information showing off your property’s best features.
Remember, not every property presents well in Winter, so it may make sense to get those photos done again, as well as to have home opens in the spring season. Dampness, issues with rain and other drabness can more easily be dealt with in the brighter days.
Consider a walk through of your home and see if there are any improvements that will also help make your property present a little better.
You may want to consider:
<ul>
<li><a href="/expert-insights/what-is-home-staging-investment-terms-explained"> Staging your property with furniture</a></li>
<li>
<a href="/expert-insights/what-is-a-cosmetic-renovation-investment-terms-explained">Cosmetic renovations </a>to improve visual aesthetics</li>
<li>A general tidy and <a href="/expert-insights/investing/ten-tips-to-prepare-your-home-for-an-open-for-inspection">other effective tips for your open inspection</a>
</li>
</ul>
The agent and marketing campaign
If you’re selling through a real estate agent, and most will, it’s time to get honest with them. Why do they think it’s not selling? If you don’t think you real estate agent is doing the best job possible, it may just be time to select another.
Here are <a href="/expert-insights/finding-the-right-agent-to-sell-your-home">some tips for finding a proactive real estate agent</a> to sell your property quickly and for the right price.
Part of this is about the marketing campaign, and how they are following up enquiries, as well as how they put your property out there. Above we looked at how to ensure you’re presenting the property well on its listing page, however it might just be time to discuss paying a bit extra for a featured listing, or ensuring you’re on the right portals. When speaking to real estate agents ensure you ask for their justification around the marketing spend and their campaign.
Ask them the following:
<ul>
<li>What effect will print advertisements have for my property?</li>
<li>Is a signboard necessary?</li>
<li>Should we be considering an auction campaign?</li>
<li>Which portals should I list on? Why?</li>
<li>Are featured listings worth the spend?</li>
</ul>
</body></html>

How to spring clean your stale property listing

<html><body>
Advice around property is a minefield; despite the issues inherent in seeking out help no one should feel that they can’t find decent information and assistance if they need it.
These days anyone from accountants, financial planners, buyer’s agents, property mentors and even some developers can have a property advice wing that looks to help investors strategise.
Here are 10 questions to get you started with choosing a property investment adviser.
<ol>
<li>
Are you being paid by anyone else? The most crucial guidance you’ll ever receive is to follow the money. It’s worth asking your property investment adviser upfront whether they’re receiving kickbacks, commissions or any other form of payment from other businesses. This doesn’t mean you shouldn’t necessarily use them, although some will say that it means they have other peoples’ interests ahead of yours, but at least you can be wary of any competing influences. Remember, if you’re not going to pay for the advice or information then they must be getting an income somehow. This ties in with another crucial question: Do you sell property? 
</li>
<li>
Can you explain your fee structure, and the justification for the costs? Whether you’re looking for once-off advice, or someone you can call regularly for a mentor-mentee type relationship, you must know how much they’re set to charge. Advisers offering higher levels of access and closer assistance on all parts of the property process will understandably charge more, but you want to know how they compare to other advisers and how they justify that fee. If they’re much higher than other people you’d be wanting to know what extra level of expertise they provide to justify the cost, similarly if they’re much cheaper you’ll want to know why. This will quickly tell you what you can and cannot afford, as well as whether or not it’s worth the outlay. 
</li>
<li>
Do you have any affiliations? From memberships to peak industry bodies, or even professional groups that give them a better standing, to companies they regularly do work with – it’s time to ask about their connections. Some of these may be to your benefit later, for instance they may have a particular accountant that you can potentially use or they may be able to recommend a building and pest inspector. However, other affiliations may be a little dubious – it’s good to know who they keep company with. 
</li>
<li>
Are you licensed and qualified to give advice? If the adviser is providing financial advice, which can come in many forms, then they need to be licensed to do so. Make sure you double check their licence details. “General advice” that doesn’t take into account your specific situation is often acceptable without a license, and property has been a grey area. However, if you’re engaging a professional adviser to create you a financial plan and strategy then you want to ensure they can legally provide specific advice. ASIC has some<a href="https://www.asic.gov.au/asic/asic.nsf/byheadline/ASIC+review+of+financial+advising+activities+of+real+estate+agents?opendocument" target="_blank" style="line-height: 1.3em;"> interesting information on the distinction in real estate here</a>. Real estate agents, and those involved in the transactions, should be licensed agents (and should be so in each of the states and territories they deal with). You also want to know whether or not they’re qualified. There are a number of financial qualifications, and you may be keen to know that they have a degree in financial planning or accounting, for instance. However, real estate credentials are also worth a quick look – for instance, the <a href="/expert-insights/investing/government-should-regulate-property-investment-industry">Property Investment Professionals of Australia’s Qualified Property Investment Adviser training</a>. 
</li>
<li>
What is the extent of my support from you? Are they there to advise on the type of property to buy, or the potential strategy you will have? Make sure you both have your expectations of their service offering explained upfront. If you want to walk always with an investment plan that leaves you to find your own properties, or engage a separate buyer’s agent to do so, then ensure that you both know what the expectations are.   You also want to know whether in-person meetings, phone calls or emails are the norm for your interactions. 
</li>
<li>
What type of property (and other products) do you/do you not cover? Do you have a speciality? Some property investment advisers primarily cover new apartments or units, while others specialise in a very specific type of stock. This could be sub-$400,000 regional properties, or $800,000+ inner city blue chip stock. Ensure that their philosophy and range aligns with where you are in your property investing, your own thoughts on it and that you can afford the property they will be suggesting. You also want to ask them their thoughts on these types of properties and their justification around suggesting them. Not every property investor is the same, so it makes sense that not every investor will be suited to the same type of property. It’s also worth knowing if they also advise on other investments, such as shares, that can assist you with diversifying your portfolio. 
</li>
<li>
What does your own portfolio look like? While it isn’t crucial that your adviser owns property, or is even successful in this aspect of their lives – not everyone is lucky enough to avoid death, divorce and other personal situations – you do want to know if they practice what they preach. However, you not only want to know what their portfolio is like, and the reasoning behind it, but what the average portfolio of one of their client’s looks like. If their average client is a young professional couple on $150,000 and $90,000 per annum, and you are a single parent 45 year old on $80,000, then it may be time to question whether this person is the right adviser for you. 
</li>
<li>
Do you have professional indemnity insurance? This type of insurance, which is particularly crucial for buyer’s agents, covers a number of different situations from fraud or if something goes wrong. It is often recommended that up to $2 million be held in professional indemnity insurance. Without this, you may not have an avenue for recourse and are leaving yourself open to problems. This can vary between states and territories, so you should double check. 
</li>
<li>
What is your complaints procedure? If something goes wrong, what do you do? It may sound as though you’re whingeing ahead of time, however you need to prepare yourself for if you are not happy with the service you’re provided. Is there a mediation board that the company offers, are there any guarantees (and how solid really are these?), and how do they treat complaints and queries? Turnaround time may also be crucial for you to ask when discussing the procedure. 
</li>
<li>
Which areas of your service offering are you most proud of, and where do you want to improve? It sounds a bit like you’re interviewing your prospective adviser, but allow them to give you their strengths and weaknesses on their own accord. This will let you know how in touch they are with the business and their offering, and their focus as a company. It should also open up a further discussion into the processes and history of the company or their background as an adviser.
</li>
</ol>
What would you ask a prospective property adviser?
YOU MIGHT ALSO WANT TO READ
<a href="/expert-insights/investing/exclusive-how-to-spot-a-dodgy-operator-tips-from-the-experts">How to spot a dodgy operator</a>
<a href="/expert-insights/buying/select-your-buyers-agent-wisely-what-you-need-to-consider">Select your buyer's agent wisely: What you need to consider</a>
</body></html>

10 questions to ask your property investment adviser

<html><body>
All 25 experts surveyed by finder.com.au expect the Reserve Bank of Australia (RBA) to keep the overnight cash rate on hold this month.
The RBA has held the cash rate at a record low of 2.5% since August last year. More than half of the experts surveyed predicted that the next interest rate change will come in the second half of 2015, including Property Observer's Jonathan Chancellor.
Only one respondent, Nicki Hutley of Urbis, expects a rise as early as December this year.
“The Australian economy is still seeing growth a little below par," said Hutley. "Inflation is picking up but not yet alarmingly so... so the RBA won’t be in any hurry to move."
"A first rate rise is likely to occur either in December or the new year," she told <a href="https://www.Finder.com.au" target="_blank">Finder.com.au</a>. Of the 25 respondents, 10 surveyed expected an increase would come in the first half of 2015.
The experts surveyed include representatives  from AMP, ANZ, Bank of Queensland, Moody's Analytics and Commsec. James Bond of the Financial Services Council said uncertainty in recent economic indicators will see the RBA hold rates.
"The RBA will wait to see how employment and wages pan out over the next six months before they make a move either way," said Bond.
"The usual tightening cycle that we would expect has been pushed out by uncertainty in the some of the data.”
Janu Chan of St George Bank also believed that the RBA would wait for more solid evidence of an economic recovery.
"The RBA will probably want to see some stronger evidence that the recovery is strengthening before they raise interest rates," Chan said.
"We think the RBA is done cutting rates so the next move we expect will be a hike."
ING Direct's Michael Witts predicted a 25 basis point increase in the first six months of 2015.
"The Bank is trying to balance the strength of the housing and related sectors," said Witts.
"Equally it is mindful that any near term move in interest rates will see the Australian dollar move higher."
To see each expert's prediction, go to the next page.
<hr class="system-pagebreak">
Click to open in new window:
<a href="/images/2014/09/01/finder-sept-1-one.jpg" target="_blank"></a>
<a href="/images/2014/09/01/finder-sept-1-one.jpg" target="_blank"><img src="/images/2014/09/01/finder-sept-1-one.jpg" alt=""></a>
Source: finder.com.au
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jrichardson-uRX5hFdKfN

Experts predict no interest rate change tomorrow: Finder

<html><body>
Which capital cities across Australia offer the best gross rental yields for houses and units?
The latest RP Data Core Logic Home Value Index has revealed that while yields are tracking down in the majority of areas, there are still some good opportunities for investors willing to look further afield than Sydney and Melbourne.
HOUSES
<ol>
<li>
Darwin - 5.9%
</li>
<li>
Hobart - 5.2%
</li>
<li>
Brisbane - 4.5%
</li>
<li>
Adelaide - 4.2%
</li>
<li>
Perth - 4.1%
</li>
<li>
Canberra - 4.1%
</li>
<li>
Sydney - 3.6%
</li>
<li>
Melbourne - 3.2%
</li>
</ol>
See over page for each state and territory’s gross rental yields for units
<hr class="system-pagebreak">
UNITS
<ol>
<li>
Darwin - 5.8%
</li>
<li>
Brisbane - 5.4%
</li>
<li>
Hobart - 5.2%
</li>
<li>
Canberra - 5.0%
</li>
<li>
Adelaide - 4.8%
</li>
<li>
Perth - 4.6%
</li>
<li>
Sydney - 4.5%
</li>
<li>
Melbourne - 4.2%
</li>
</ol>
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Which capital city offers the best rental yield? RP Data’s state by state round up

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Australian housing is overvalued, Shane Oliver, head of investment strategy and chief economist, AMP Capital, has long maintained.
But he doesn’t think it’s a bubble yet. However the acceleration in price gains means the risks are rising.
"Whilst real house price weakness through 2010 to 2012 saw this diminish, the problem has returned again with a vengeance," <a href="https://www.smsfadviseronline.com.au/columns/item/237-pointing-the-finger-over-high-housing-prices" target="_blank">he wrote on the SMSF Adviser website</a>.
Noting real house prices are 13% above their long-term trend and the ratio of house prices to income in Australia is 21% above its long-term average, he suggests Australia sits at the higher end of OECD countries.
"On the basis of the ratio of house prices to rents, adjusted for inflation relative to its long-term average, Australian housing is 27% overvalued."
Oliver suggests Australian house prices meet the overvaluation criteria for a bubble; but other criteria are less clear.
"Credit growth is a long way from bubble territory.
"Over the year to February, housing related credit grew 5.8%.
"This is up from recent lows, with 7.6% growth in credit for investors leading the charge but pretty tame compared to 2003/2004 when housing-related credit growth was running at 20% plus and 30% for investors.
"Related to this, we have yet to see much deterioration in bank lending standards.
"Similarly, the self-perpetuating exuberance that accompanies bubbles seems mostly absent at present."
Oliver points to four factors:
<ol>
<li>House price strength is not broad-based. Prices in Sydney (plus 15.6% year-on-year) and Melbourne (plus 11.6% year-on-year) are very strong, yet in every other capital city they are up 5% or less;</li>
<li>There has been only one year of strong gains, whereas the surge into 2003 ran for seven years;</li>
<li>Australian’s don’t seem to be using their houses as ATMs at present (i.e. where mortgages are drawn down to fund consumer purchases and holidays); and</li>
<li>We have yet to see property spruikers out in a big way.</li>
</ol>
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jchancellor-FAypfDUnLy

Overvalued housing price problem returns with vengeance: AMP Capital's Shane Oliver

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Second-round submissions to an inquiry into the banking system have challenged findings that the system is competitive and called for a review of mortgage broking practices to ensure consumers are getting quality advice on home loans.
The Financial System Inquiry released its interim report in July, calling for further input on a range of questions, including whether bank ownership of mortgage brokers was restricting competition.
Second round submissions were published on Friday.
The Mortgage and Finance Association of Australia challenged the report’s finding that the banking sector was “competitive, albeit concentrated”, noting that the financial crisis and government intervention had restricted competition.
However, the MFAA said there was no evidence that bank ownership of mortgage broking groups was limiting competition or discouraging brokers from acting in the consumers’ interest.
The MFAA argued that the National Consumer Credit Protection Act, 2009 required brokers to disclose commissions and lender panels and ensure clients were not disadvantaged by any conflicts of interest.
Suncorp disagreed, arguing that bank ownership of mortgage brokers was distorting the way in which mortgage brokers directed borrowers to lenders.
“Of great concern is the fact that customers view brokers as independent but the major banks have growing influence over these channels which they now predominantly own, and coupled with generous incentive schemes, are able to direct business to their products,” Suncorp said in its submission.
Consumer group Choice called for a review of how mortgage broking regulations were working for consumers including an assessment of the impact of mortgage brokers’ remuneration and institutional arrangements on the services they offered. It also called for an investigation into whether more extensive rules about the quality of mortgage broker recommendations and disclosures were required.
Choice said conflicts of interest reduced the quality of mortgage brokers’ recommendations and service for consumers. 
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zfielding-GvX3Uq9KTa

Banking system uncompetitive and mortgage broking review needed: Senate inquiry submissions

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Low interest rates working?
A survey of 23 economists this week showed all 23 of them to believe that the interest rate easing cycle is over, albeit few are expecting hikes any time soon.
A key reason for that is doubtless that lending rates have actually been falling independently of official cash rate decisions made centrally by the Reserve Bank.
Personally I still wonder whether this will be enough, particularly when viewed in the light of an iron ore price which has crashed by 35% in 2014 and a stubbornly high Aussie dollar.
On the flip side, there is some evidence to suggest that low interest rates are having an impact in other areas of the economy in spite if the declining terms of trade.
Consumer confidence is set to rebound above is long term average, retail sales are expected to resume their upwards trend by growing by 0.4% in July and yesterday's capex survey showed that away from mining and resources there are signs of life in the larger services sector of the economy.
For the time being at least interest rates will be stuck on hold until further evidence comes to light.
Financial Aggregates show investor credit growth
The Reserve Bank released its <a href="https://www.rba.gov.au/statistics/frequency/fin-agg/2014/fin-agg-0714" target="_blank">Financial Aggregates data</a> for July today which revealed that easy monetary policy is gradually impacting credit aggregates.
In the year to July 2014 total business credit has spluttered 3.4% higher and personal credit has increased by 0.8%.
Housing credit rose by another 0.5% in July to be a strong 6.5% higher over the year, clear evidence that cheaper credit is set to drive housing markets higher.
<img src="https://2.bp.blogspot.com/-qSVs1pstm5M/VAAwrYJI7sI/AAAAAAAAPYY/SAd8XWcGy5U/s1600/RBA1.jpg">
The gradient of the red line in the chart below shows that housing credit for investors has been outstripping that of credit for owner occupiers over the past year:
<img src="https://3.bp.blogspot.com/-hWwFikc_JCw/VAAwsYVrJII/AAAAAAAAPYg/Sy-4YfSPVKI/s1600/RBA3.jpg">
In terms of annual percentage credit growth the data shows that the housing credit growth rebound has been driven largely by investor credit which has increased by 8.8% over the past 12 months as compared to a 4.8% increase in owner occupier credit.
<img src="https://1.bp.blogspot.com/-pYUrXLAgWdM/VAAwsEDlyjI/AAAAAAAAPYk/cNgjgbqtpLs/s1600/RBA2.jpg">
When smoothed on a rolling annual basis below, the data becomes clearer with the red line denoting a strong uplift in investor credit.
Of course, percentage credit growth is nowhere near as high as it was in decades gone past, but since it is the transaction of dwellings at the margin which drive the market property prices have rebounded very strongly since 2012 and are heading higher still.
<img src="https://3.bp.blogspot.com/-ptfHOAYyNZE/VAAwsuAZcbI/AAAAAAAAPYo/s2lEJtX-e7A/s1600/RBA5.jpg"> 
As a percentage share of housing credit, investor credit has ticked higher again, now representing 33.8% of the total. Interestingly this is exactly the same percentage share of housing credit in the RBA's Financial Aggregates data that we saw a decade ago in July 2004.
<img src="https://2.bp.blogspot.com/-Be87eDNQd-k/VAAws0GGdvI/AAAAAAAAPYs/X4lMYebEjYs/s1600/RBA6.jpg">
Outperforming property types and location
The data continues to imply to us that the property types which will ultimately outperform in this cycle include those which are strongly favoured by investors, particularly well-located properties in Sydney. 
Our previous analysis of rolling 12 monthly investor loans by state has clearly shown that Sydney will be the king of price growth in this period of the cycle:
<img src="https://2.bp.blogspot.com/-8H-Co34r7zk/VAA3WW0QA9I/AAAAAAAAPZQ/34ZBTeQKW9A/s1600/LENDING.jpg">
When you factor in the increasing demand from offshore or Australian real estate which is not well captured in reported data, the bias in favour of Sydney becomes all the more compelling.
The latest statistics from <a href="https://www.rebonline.com.au/blog/8077-what-do-china-s-real-estate-bosses-really-think-of-australia?utm_source=Real+Estate+Business&amp;utm_campaign=Real_Estate_Business_Bulletin29_08_2014&amp;utm_medium=email" target="_blank">Juwai</a> denoted that the favourite locations for Chinese buyers fall in the following order: Sydney, Melbourne, Brisbane. Perth and the Gold Coast.
As the terms of trade have declined dramatically we expect the Australian dollar to fall further from its current elevated point, which may drive significant further demand from offshore.
In this property market cycle, we are following that demand and have thus focused on Sydney real estate. 
Recent property market forecasts from analysts have suggested that the currently property market cycle has another two years to run which fits in tidily with what we have heard from major developers. 
BIS Shrapnel recently forecast price growth of 6 percent per annum for Sydney apartments through to 2016.
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His latest book is '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' .
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pwargent-M4siyDbqQY

Which property types and locations are overperforming?

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Rising home values across most capital city regions has meant that it’s now becoming even more difficult to find capital city homes under $400,000.
Across the combined capital cities, 28% of homes sold over the 12 months to June 2014 were priced below $400,000. In regional areas, the figure was a much higher at 63.9%. Over the past decade, the property market experienced a substantial reduction in housing under $400,000. 10 years ago, 69.3% of capital city home sales and 86.4% of regional home sales were below $400,000.
Over the three months to June 2014, the combined capital city median house price was $550,000 while the median unit price was $475,000. Given the median is the middle sale price over the period, this indicates that over the three month period, an equal number of homes sold above this figure.
<img src="/images/2014/08/28/kusher-aug-28-one.jpg" alt="">
A rise in capital city home values of 10.1% over the 12 months to June 2014 indicates the difficulty being experienced by price-sensitive purchasers looking to enter the housing market - this is most felt in Sydney and Melbourne where home values have increased by 15.4% and 9.4% respectively over the year to June.  
And while properties in Australia’s regional areas may be more affordable, the downside is a lack of employment.  Recent employment data from Australian Bureau of Statistics (ABS) confirmed that across most states, unemployment is lower in the capital cities than in regional markets. The exceptions are Queensland where the unemployment rate is 6.4% in both Brisbane and regional Queensland, and in SA where Adelaide’s unemployment rate is 6.8% compared to 6.4% in regional SA. Although housing might be much more affordable outside of capital cities, job prospects are not as strong.
If we consider the growth in home values and the selling prices of homes, it indicates a shortening supply of more affordable homes.
Looking at the proportion of capital city homes selling below $400,000 over the 12 months to June 1999, in each city the vast majority of homes sold within that price point.  
Five years on, the June 2004 results show a decline in home sales under $400,000. Despite the decline, Sydney houses were the only city and property type with less than half of all sales occurring under $400,000. According to the RP Data Home Value Index, combined capital city home values increased by a total of 87.9% over the five years to June 2004.
Between June 2004 - 2009, combined capital city home values increased by a total of 27.4%.  Although overall value growth was much more moderate than the previous five years, a sharp decline in sales of homes under $400,000 was recorded by June 2009.  Less than half of all house sales in Sydney, Brisbane, Perth, Darwin and Canberra were below $400,000 over the year. In each city a majority of unit sales were under $400,000.
Over the 12 months to June 2014, Hobart was the only city with a majority of house sales under $400,000.  Within the unit market, a majority of sales in Brisbane, Adelaide and Hobart were below $400,000.  According to the RP Data July Home Value Index results, combined capital city home values increased by a total of 22.1% over the five years to June 2014.
Although home value growth has moderated over each of the past two five year periods, the supply of homes selling at lower price points (i.e. less than $400,000) has also fallen.  
Housing is Australia’s single largest asset class and for most people, it’s where they store the majority of their wealth. For those who don’t own their home, it’s a very different story.
In a rising market where home values are increasing, all this is great news for those that own a home but makes entering the housing market more difficult for those that don’t.
Affordable housing is the way that most first time buyers enter the market.  With the supply of affordable homes within capital cities shortening significantly, the prospects for first home buyers entering the market are also diminishing. Based on these conditions, we’re expecting the typical age of first home buyers to increase and first home buyer purchasing to remain at below average levels.
<img src="/images/2014/08/28/kusher-aug-28-two.jpg" alt="">
<img src="/images/2014/08/28/kusher-aug-28-three.jpg" alt="">
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