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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

Joel Robinson

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

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

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An 1834 four level Millers Point dwelling in the Colonial Regency style fetched $2.56 million at auction tonight.
Offered for the first time in over a century, <a href="https://www.domain.com.au/property/for-sale/house/nsw/millers-point/?adid=2011319939" target="_blank">29 Lower Fort Street</a>, was sold at auction by the NSW state government. 
The five-bedroom heritage listed townhouse (see plan below) with a 6.5 metre frontage has extensive views of Sydney Harbour.
Requests by Property Observer for the price guidance provided to buyers were not met prior to publication by the office of Dominic Perrottet, the Minister for Finance and Services.
The <a href="https://www.onthehouse.com.au/reports/property_profile/11919684/29_Lower_Fort_Street_DAWES_POINT_NSW_2000/" target="_blank">onthehouse website</a> gave a $1.89 million to $2.01 million estimate in May for tonight's 169 square metre offering.
The adjoining terrace - <a href="https://www.realestate.com.au/property-house-nsw-millers+point-105847297" target="_blank">on 147 square metres - sold as leasehold in 2009 at $1.025 million</a>.
It followed last week’s sale of a property for $1.91 million on Kent Street (pictured top above) with Walsh Bay water views at well over price guidance.
The first offer was on a 109 square metre holding.
“All proceeds from sales will go straight back into maintenance and building contemporary social housing that is so urgently needed," the Minister for Family and Community Services, Gabrielle Upton said.
There are currently three other properties on the market as part of the Government’s first tranche of freehold sales in the Millers Point precinct. 
"The real estate agent had more than 200 prospective buyers inspected the premises with more than 60 pre-auction contracts issued.
The initial sales in Millers Point are setting the freehold market, as the prior sales campaign begun by the Labor government in 2009 offered property on 99 year leaseholds.
<a id="photoLink" href="https://www.propertyobserver.com.au/https://www.allhomes.com.au/ah/nsw/sale-residential/29-lower-fort-street-millers-point-sydney/14140337912311?lid=169173927&amp;pid=1403379123"><img class="photo" src="https://ee76d6753238c242b807-86a86923a0d3a601a8260e746ceafc0b.r51.cf4.rackcdn.com/ahda/property/photo/2014/07/21/eca61d4c05956cf0b106f641ad873b61_l.jpg" alt="" title=""></a>
Protesters to the relocation of housing department tenants again <a href="https://www.facebook.com/millerspointsaveourhomes/photos/pcb.905537062794191/905536632794234/?type=1&amp;theater" target="_blank">were refused admittance to the auction</a>.
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jchancellor-FAypfDUnLy

The second Millers Point offering fetches $2.56 million for state government housing

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<blockquote>
There are some people who say you shouldn’t mix politics and music, or sports and politics. Well… I think that’s kind of bulls*#t.
<cite>Adam Clayton, U2</cite>
</blockquote>

Politics and culture have an intrinsic relationship upon each other. Whilst there are some people who attempt to separate the two, in order to justify their apathy, a quick read of a typical Melbourne newspaper would show how politics is so effectively entwined with our cultural pursuits. Architecture endeavours to reflect our culture but it is also caught up within it.

In the 2010 State election, Victorian’s voted in the Liberal / National Party coalition. The new government was led by Ted Baillieu – an Architect who was sworn in as Premier of the State. Among the more public pre-election commitments was the Flinders Street Station Design Ideas Competition. This policy was implemented within the first 12 months with the international competition launched in November 2011.

The decision to run a competition for Melbourne’s most important landmark is quite controversial to this day. The detractors would argue that with no commitment to undertake the project, the efforts and the taxpayer money used to run the competition have been wasted. This would appear quite short sighted given the importance and the longevity of the landmark in question. As a result of Victorians voting in a design-intelligent Premier, we now have a fantastic design which has proven design merit.

This design allows the public and the decision makers to talk about the project in specific detail rather than in the abstract.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/img_3191.jpg" rel="gallery-all" title="Parliament House, Melbourne."><img alt="" class="image-article-full-width-580px" height="435" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/img_3191.jpg?itok=iBFksIm-" title="Parliament House, Melbourne." width="580"></a>

<figcaption>Parliament House, Melbourne.</figcaption></figure>A far more subtle policy resulting from an Architect Premier was the introduction of the Design Review Panel at the Office of the Victorian Government Architect. This service offers high level independent design advice to various Government bodies who procure or approve public projects. Typical projects include hospitals, libraries, transport infrastructure projects and community master plans.

Between 2012 and 2014 over 100 projects have been reviewed under this system. To accurately assess the quality of the design review program, an audit by SGS Economics was undertaken in December 2013. This independent review found overwhelming support for the scheme from those who had participated, proving with hard evidence the value of design.

<a href="http://www.ovga.vic.gov.au/images/VDRP_Key_Achievements_June2014.pdf">Click here</a> for further information on the key achievements of the Design Review Panel.

In July 2012 the Government then decided to embark on the most significant reform to the planning system in 30 years. The process began with a set of proposed changes which were open to public submissions. Naturally, given the city shaping nature of the proposed changes, The Australian Institute of Architects put forward their considered opinion. In their <a href="http://www.architecture.com.au/docs/default-source/national-policy/121001-viczoningreview-final.pdf?sfvrsn=2">submission</a> they highlighted some points of agreement such as the benefits in reduction of red tape. However there were also grave concerns about the process and the consequences.

<blockquote>
One effect of mandated outcomes is likely to be a greater focus on height rather than design as the relevant arbiter of what defines acceptable development.

A strategic justification and narrative to explain the zone changes is needed, and the process that has informed them lacks clarity.
<cite>Australian Institute of Architects, September 2012</cite>
</blockquote>

Next in the series of reforms were the changes to the Architects Act and the Architects Registration Board of Victoria mooted in <a href="http://theredandblackarchitect.wordpress.com/2012/12/14/a-red-and-black-investigation-into-the-future-of-the-architects-registration-board-of-victoria/">November 2012</a>. This was deeply concerning to Architects in Victoria at the time, however the fact that the Premier himself was an Architect provided significant reassurance to the profession.

At the time the Victorian President of the AIA, Jon Clements provided this comment to the Red and Black Architect:

<blockquote>
It is fair to say that under the current government leadership, noting that the Premier is himself an architect and an Institute member, that it is highly unlikely that we will see any diminishment of the role of the architect in the building industry.
<cite>Jon Clements, December 2012</cite>
</blockquote>

Then three months later the politics changed. The political train wreck of MP Geoff Shaw threw the Baillieu government into crisis upon his resignation from the Liberal Party. Hours later Ted Baillieu had also resigned as leader of the Liberal Party and as a consequence Dennis Napthine was installed as the new Victorian Premier.

Perhaps in an effort to make his own mark and stamp his authority, Napthine ordered a restructure of the government departments which resulted in the Department of Transport, Planning and Local Infrastructure (DTPLI) being established on the 9th of April 2013. With this change, the Office for the Victorian Government Architect was relegated from reporting directly to the premier, to instead working under the DTPLI. Yet again the importance of design was eroded from what was previously a design conscious government.

Since then the planning reforms have been pushed through and are currently being finalized. In the Winter edition of Architect Victoria, the AIA once again highlighted the dangers and consequences of the State Governments actions.

<blockquote>
The Institute believes that the proposed zoning changes, if implemented in the form requested by local councils, will be a huge step backwards for planning and design in Melbourne.

The risks faced are very real:

Reduced housing affordability

Reduced diversity of housing for aged and low income households

Difficulty for small-medium scale developers to find suitable sites.
<cite>Australian Institute of Architects August 2014</cite>
</blockquote>

As bad as the situation has become, an even bigger concern is that it appears that the peak body of Architects is being flat-out ignored by the Planning Minister, Matthew Guy.

<blockquote>
In the last four years the [Victorian] Chapter [of the Australian Institute of Architects] has only been able to secure one direct face to face meeting with the [Planning] Minister. He has refused all invitations to attend institute events in this time.
<cite>Alison Cleary, Victorian Chapter Manager of the Australian Institute of Architects.</cite>
</blockquote>

This is akin to the Minister for Health refusing to meet with the Australian Medical Association. It projects incompetence and arrogance of the highest manner. Furthermore it is not as if Matthew Guy is himself an expert on the Built Environment. Matthew Guy’s comments (<a href="http://www.heraldsun.com.au/news/victoria/planning-minister-matthew-guy-no-fan-of-ugly-hoyts-cinema-building/story-fni0fit3-1226814345343">as reported in the Herald Sun</a>) regarding Melbourne’s Brutalist Architect expose his limited understanding.

<blockquote>
People use the term brutalist architecture to legitimise ugly buildings.
<cite>Matthew Guy, Minister for Planning</cite>
</blockquote>

Again to analogise this to the medical profession, this statement is the equivalent of the Health Minister making a comment such as ‘people use the term mental illness to legitimise hospital care’. Both outrageous comments should draw instant condemnation of a minister so out of touch with their field of influence.

Within a single term of government from 2010 to 2014 we have gone from a design-intelligent and architecturally progressive State Government, to one which has marginalized those best able to advise it. The public who voted in the Architect Premier in 2010 have every right to feel let down by the party politics that has led to this point.

In November 2014, Victoria will head to the polls to elect the next Government. More than anything Victoria deserves a government that is willing to take and act upon advice from experts in all fields and not just presume that it knows best. We need a new Planning Minister who will listen to the Australian Institute of Architects. We need the Office of the Victorian Government Architect reporting directly to the Premiers Office as it was always intended to. Finally we need to end this obsession with building the East West Link at all costs. The built environment is too important to be the plaything of politicians.

Michael Smith is Director of Melbourne architecture firm <a href="http://redblackarch.com.au/">Atelier Red + Black</a>. This article originally appeared on <a href="http://theredandblackarchitect.wordpress.com/">The Red and Black Architect blog</a>.
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redblackarchitect

Architecture and Politics

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That first picture of your property understandable needs to be one of the best.
It should be inviting and presentable, the type of photo that makes your prospective buyer just want to click on it. Of course, it must also stand out – when a buyer is browsing through tens, if not hundreds, of similar listings it makes sense that yours needs to command attention.
Real estate photographers and real estate agents are increasingly becoming savvy on how to make that first listings picture pop. While some are making careful choices not to include the front façade in a listing, which makes sense if it’s not much to look at, others are playing with another factor to make them stand out – taking the photos by night.
We’re talking almost full darkness. While plenty take beautiful photographs in the sunset, or when it’s a bit darker to show off the lights of the property (for instance, this<a href="https://www.realestate.com.au/property-house-qld-pullenvale-117619943" target="_blank"> this Pullenvale, Queensland listing</a>, picture above, which plays beautifully with light on the exterior), it’s rarer but often effective to see a house in the late evening.
This South Australia, Northgate property at 5 Kingston Parade is a three bedroom, two bathroom offering for a price guide of $1,049,000 to $1,149,000. It’s being <a href="https://www.realestate.com.au/property-house-sa-northgate-107656001" target="_blank">marketed through Refined Real Estate Plympton</a>.
They made the decision to shoot the brightly-lit up façade in the dark. It matches its name – also called Lightsview – and does actually work to show off the modern lines of the house. Included in the listing is a shot of the home in the light and, comparing the two, we think it’s a wise decision to have used the evening shot as the main listing image.
Shooting the rest of the house at night works for some rooms, although it would’ve been nice to see some inviting sunshine in the garage shot.
Coupled with some descriptive copywriting, that invites you to “Enjoy stunning views of the sweeping city skyline, in the warmer months have a sip of champagne whilst sitting in your spa, alternatively, cosy up with a glass of red next to the huge roaring feature fire,” we think they’ve done a great job at conjuring up a luxury lifestyle with this listing.
<img src="/images/2014/08/26/nothgate%20aug%2026%20one.jpg" alt="">
<img src="/images/2014/08/26/nothgate%20aug%2026%20two.jpg" alt="">
From Spins &amp; Co Residential – Brisbane, a very wise decision was made to include the night-time shot on the listing as the main image. The six bedroom, four bathroom offering, <a href="https://www.realestate.com.au/property-house-qld-upper+brookfield-116644851" target="_blank">654 Upper Brookfield Road, Upper Brookfield</a>, benefits hugely from careful decisions are the light in the photographs. The palatial, stunning façade seems to lose something of its grandeur in the day-time listing.
The rest of the house has been, very thoughtfully, photographed during daylight hours, easily showing off the airy rooms and beauty of the gardens. It really does seem to have been a decision that pays off in terms of the presentation of this home.
<img src="/images/2014/08/26/upper%20brookfiled%20aug%2026%20one.jpg" alt="">
<img src="/images/2014/08/26/upper%20brookfield%20aug%2026%20tow.jpg" alt="">
This Queensland<a href="https://%20http:/www.realestate.com.au/property-house-qld-balmoral-117734083" target="_parent"> listing for 35 Ryan Avenue, Balmoral </a>through Place Bulimba has the main image being of the swimming pool in the night. While the sky is very blue, to the point of being questionably real, the property shines through the dark.
It’s a good choice of image as well, running with the pool, as the actual front façade shot doesn’t quite do the home justice.
It’s up for auction on September 18.
<img src="/images/2014/08/26/balmoral%20aug%2026%20one.jpg" alt="">
Another <a href="https://www.realestate.com.au/property-house-qld-buderim-117093903" target="_blank">Queensland offering, at 4-6 Pacific View Parade, Buderim</a> also uses darkness to great effect in its main photo. Clearly the shoot took place over a late-afternoon and evening, with some lighter than the others, but the cosyness that this property is given from the gloom, coupled with bright lights, is clear.
Looking for $1,175,000, the five-bedroom, four-bedroom property is noted as being under contract. We think the dimness really suits the resort-style home, allowing it to show off some pretty fancy light fittings.
<img src="/images/2014/08/26/buderin%20aug%2026%20one.jpg" alt="">
However, this home’s night time shot is a little questionable. <a href="https://%20http:/www.realestate.com.au/property-house-qld-gatton-117260795" target="_blank">The Gatton, Queensland listing at 72 Highway Avenue</a> could really do with some lights towards the front of the driveway, or a different angle for the photo, particularly for their main image. In fact, some of the other day time shots might actually have been preferable.
<img src="/images/2014/08/26/gatton%20aug%2026%20one.jpg" alt="">
<img src="/images/2014/08/26/gatton%20aug%2026%20two.jpg" alt="">
{module When do you think the best time is to take a feature image for a home?}
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jduke-EHk3XBmHkn

Do atmospheric late-evening listings photos work?

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Yesterday, Property Observer shared Onthehouse’s data for Sydney’s top streets with $1 million plus properties, in regards to the percentage of houses valued at this amount.
In fact, <a href="/news/nsw/23-4-of-sydney-metro-properties-over-1-million-here-s-the-richest-street">almost 25% of Sydney’s metro properties were valued at $1 million</a> and upwards.
We don’t want Sydney to have all the fun. Onthehouse have also shared the mainland states and territories’ top streets with the highest percentages of houses over $1 million.
Here are the seven streets you should know about:
<img src="/images/2014/08/26/onthe-aug-26-one.jpg" alt="">
Source: Onthehouse.com.au
Which street were you most surprised about? 
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The priciest streets in the mainland capitals: Onthehouse

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Managing your own investment property has its advantages. You get to maintain control of the process and it can save on agent costs but there are traps that investors need to watch out for.
Property Observer talked to NSW Department of Fair Trading senior customer service officer Hollie McPherson about the common mistakes that self-managing landlords make.
<ol>
<li>
Access One of the most common complaints the NSW Department of Fair Trading receives about self-managing landlords relates to accessing the property without permission. “Because it’s a significant investment that people make when they buy and investment property, sometimes the landlord will not let go of the property and turn up without providing sufficient notice,” McPherson says. Retaining control over management does not mean you can ignore the rules about access. Landlords need to remember that tenants have rights and must obtain permission to access the property, except in some special cases. Landlords often face problems with tenants failing to grant access for the landlord or others to come to the property to carry out repairs, for example. If the tenant fails to provide access after the landlord has given the proper notice, the next step for the landlord would be to go to the dispute service offered by the Department of Fair Trading. 
</li>
<li>
Bonds Another common mistake that self-managing landlords make is not lodging rental bonds with the Department of Fair Trading, McPherson says. Landlords in NSW must lodge bond money with Fair Trading. Some landlords keep rental bonds in their own personal bank accounts, which can make it difficult for tenants who are leaving a property to recoup their bond. That’s not allowed. Landlords sometimes request more than four weeks’ worth of rent to be held as a bond but that’s also against the rules. 
</li>
<li>
Documentation “Sometimes landlords forget [a rental property is] like a business,” McPherson says. “You do need to have things in writing. It’s a protection for the tenant and for the landlord.” There’s no requirement in NSW to have a written tenancy agreement in place when renting out a property. When there’s no rent agreement, the lease reverts to a six month agreement that applies to both landlord and tenant. The landlord can’t increase the rent during that period and the tenant can’t stop paying the rent. While it’s not a requirement to provide a written tenancy agreement, it’s a good idea to have one. It’s difficult to prove that someone is a tenant and not a guest if there’s no tenancy agreement in place, McPherson warns.  A tenancy agreement should show what’s included under the lease agreement. It should also include a condition report that documents any damage or flaws in the property when the tenant moves in and out. “It’s an investment property so you want to keep track of what condition the property was in at the start of the lease,” McPherson says. Take photos for evidence. When the tenant moves out agree a time to inspect the property. If there’s damage the landlord can get works done and show receipts to the tribunal to have the repairs paid for out of the bond money. “Without that it’s really hard for the landlord to prove who caused the damage,” McPherson says. With rental payments, McPherson says it’s wise to provide rent receipts to the tenant or keep a tenant ledger, although some landlords fail to do this. “Keeping a tenant ledger is good for the landlord because it shows if the tenant is up to date also it’s good for the tenant because they can use it for future rental applications,” McPherson says. As a landlord, you’ll probably need to keep track of rental payments for your own tax records anyway. 
</li>
<li>
Charging for utilities Landlords sometimes make the mistake of trying to charge for utilities when they are not allowed to. “There are clear rules for when you can and can’t charge for water usage,” McPherson says. If there’s only one water meter for multiple residences, such as in an apartment building, you can’t charge utility bills, for example. 
</li>
<li>
Staying in touch Another common mistake is that landlords will only provide a mobile number to their tenants which can make it difficult for the tenant to get in touch with them. “It’s important for the landlord to give [the tenant] their full name, address to write to, telephone number or email address,” McPherson says. If something goes wrong, it’s important to try to contact the tenant to try to have a discussion about the problem. Keep a written record of what was discussed, including a diary of conversations and communication with the tenant. Record details such as when repair works will be completed, or why modifications won’t be made if the landlord chooses not to do work that the tenant requests. “It doesn’t matter how good the relationship was at the start things can go sour,” McPherson says. 
</li>
<li>
Seeking help If landlords are not sure of what to do, they can contact the Department of Fair Trading for advice, McPherson says. There are also fact sheets on the website that can assist. Fair trading can negotiate with the tenant on the landlord’s behalf, free of charge. Mediation is mostly conducted by telephone but if required Fair Trading can facilitate to face-to-face meetings. “If [landlords] make an effort to resolve issues, keep records in writing, then the service we offer is quite effective in negotiating the outcome,” McPherson says. If the problem can’t be solved through mediation, the next step is to go to the NSW Civil and Administrative Tribunal for a binding decision. It costs $47 to lodge a case with the tribunal.
</li>
</ol>
Note that this story refers to processes and rules in NSW only. The details will be different in other states and territories but the basic principles are still the same.
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The six most common mistakes self-managing landlords make

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The weekend offering in Majorca House on the corner of Flinders Lane and Degraves Street in the Melbourne CBD fetched $750,000.
The 1928 fifth-level apartment now sits among the coffee and cafe-filled laneways.
It last sold for $315,000 in 2003.
The floorplan allows either for two bedrooms or a huge living-dining room.
It was offered<a href="https://www.realestate.com.au/property-apartment-vic-melbourne-117552031" target="_blank"> through Melbourne Boutique Property agents Gina Donazzan and Mark Connellan</a> whose price guidance for 504/258 Flinders Lane was $600,000 plus.
The building was designed by art deco architect Harry Norris.
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Majorca House, Flinders Lane Melbourne apartment sells

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GUEST OBSERVATION
It is interesting how underquoting is allowed to rear its ugly head.
Last week, the government-owned heritage property at 119 Kent Street, Millers Point (pictured above) <a href="/expert-insights/buying/vacated-millers-point-four-level-terrace-fetches-1-911-000-at-private-state-government-auction">sold at auction for $1,911,000</a>, through McGrath.
The initial price guide was reported to be $1,000,000 and then adjusted to $1,300,000. The property, as we well know, has been sold for $1,900,000. Almost 100% above the original price guide. Jonathan Chancellor’s article on <a href="/expert-insights/buying/buyers-needed-to-add-11-to-weekend-sydney-pre-auction-price-guidance">being prepared to adjust your expectations at auction by 11%</a> just went out the door. I cringe with disbelief that this has been allowed to happen.
This auction campaign was backed by the NSW state government. I wouldn't suggest that because of this the agents running the marketing campaign/auction sale have been absolved from following the strict guidelines of the real estate industry's regulations, but the agent has not gained any credibility. It could just be a sheer case of blatant ignorance and an agent simply not understanding their industry. But then again any publicity is good they say, even if it’s bad.
The property itself, regardless of the state it was presented in, has vast inherent value - it is located in an address that boasts local sales of up to $6,000,000. A harbourside, and much sought after, prestige location that for the postcode alone is worth $1,000,000.
Now, if we add the historical and actual building value, we could comfortably add hundreds of thousands more. Then there is the value of the actual block of land. Even if we looked farther afield, to <a href="/news">Annandale</a> and <a href="/news">Leichhardt, </a>shacks have reached the $1.2 million to $1.5 million mark in the past.
How, in heavens name, did the agent come up with the original price guide and, even when adjusted, fall so short of where the offers finished?
Were they looking for a crowd? Or publicity perhaps? I can’t figure it out.
If it is sheer ignorance, maybe a professional valuer should have been called in to provide a realistic price guide. I am once again alarmed how this four bedroom home in this location was advertised publicly for so low. The underlying question is: did the low price guide also work against the price achieved? Could a more realistic price guidance have attracted a different clientele that would have pushed the price even higher?
I guess we'll never know.
EDWIN ALMEIDA is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a>.
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Nearly 100% above the initial price guide? Underquoting rears its ugly head

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Market Outlook: unchanged - neutral with negative bias
<ul>
<li>Attractiveness of renting as a preferred accommodation option has further increased (as at June 2014).</li>
<li>Purchase affordability is still very high, although slowly declining - this provides strong support for prices at the current level (as at June 2014).</li>
<li>Confidence in the economy continues to deteriorate with no signs of improvement (as at August 2014).</li>
<li>Housing Credit Impulse continues to grow, indicating there is still plenty of demand for residential real estate (as at June 2014).</li>
<li>Actual prices are above what could be expected based on changes in housing credit - although the margin is reasonable it makes prices very sensitive to adverse changes in economic conditions (as at June 2014). </li>
</ul>
National Real Estate Price Forecast
With purchase affordability at a decade high, the underlying demand for residential real estate in Australia remains strong and property prices continue on the upward trajectory, albeit at a slowing pace.
The current price level remains slightly elevated in relation to the underlying mortgage credit flowing into the market, indicating that prices are vulnerable and may suffer an unexpected stall or even reversal at this level (slowing price growth is a manifestation of this vulnerability).
Since buyers are now at disadvantage to renters due to faster rising costs of buying, return to wide spread optimism about the economy is a prerequisite for the continuation of strong price growth.
However, pessimism about the state of the economy is not improving, and hence, it poses a serious threat of derailing what is otherwise quite a robust market.
A sudden return of optimism could reinvigorate buyers and lead to a very substantial jump in prices in the coming months (since buying costs compared to average incomes are still at historical lows).
However, the more likely scenarios at present are either no improvement in perceptions about the state of economy, or a further rise in pessimism. Although this will not crash the market in the short-term, nevertheless, it can potentially put the lid on further price growth in September and December quarters.
Detailed analysis starts on the next page. Please click below.
<hr class="system-pagebreak">
Detailed Analysis
<ul>
<li>optimal accommodation choice: attraction of renting is increasing</li>
</ul>
 <img src="/images/2014/08/26/BRI_August2014.png" alt="">
The Buy-Rent Indicator (BRI) identifies how cost of buying is changing in relation to cost of renting.
BRI bottomed in June 2012 (indicating the lowest point in the current cycle) and it has been rising consistently since then. The indicator crossed the equilibrium line in March 2014 and continues on an upward trajectory.
This indicator is constructed based on the simple concept that renting and buying are substitute accommodation options, hence the optimal choice depends on which accommodation cost is rising in relation to the other. The practical use of this indicator is for identifying market cycles and for timing purchase and sale decisions.
The crossing of the indicator from buy to rent zone gives a signal that buying costs are starting to rise faster than rental costs.
In a market where property prices are rising, this marks the point in time when opportunities to purchase a property at attractive prices are limited.
For those intending to sell in the current cycle, it marks a time to start preparing for the sale - the optimal point for selling the property will be when the indicator peaks, which should coincide with an interim peak in property prices.
We are already two years into the current cycle and the next peak should be anticipated sooner rather than later.
Trough-to-peak of two years in duration was not uncommon in the last 30 years but there were also a few cycles with an uptrend as short a 16 months and the longest recorded was just over 3.5 years in duration. 
Further strong increases in property prices and/or a rise in interest rates will increase the cost of buying relative to the cost of renting, making purchasing a much harder option to choose than it is at present. Therefore, fast moving prices can lead to a quite dramatic reduction in the demand for properties and, in effect, shorten the overall cycle.
Stagnating or slowly growing prices can potentially limit the negative impact on demand as growth in buying costs will be offset to a large degree by rising rental costs. This can delay the peak and extend the duration of the overall cycle.
Indicators show that this cycle is a slow moving one and therefore the next peak may be still some way off (i.e. up to two years based on historical evidence). However, it all depends how fast prices and/or interest rates move up from here onwards.
<ul>
<li>purchase affordability: at a historically high level and falling, but only just</li>
</ul>
 <img src="/images/2014/08/26/PAI_August2014.png" alt="">
The Purchase Affordability Indicator (PAI) compares changes in the annual cost of buying to changes in average full time adult income, therefore it identifies how purchase affordability has changed over time.
PAI is at historically high level and the revised June 2014 value has recorded only a small fall in relation to the previous month reading.
This indicator explains that, relative to incomes of Australians working full time, property prices are still very affordable.
In fact, the cost of buying a median priced property relative to average income is now 27.4% lower than it was in 1986. So, given the expectations of long term low interest rates, there is still a lot of room for prices to move before Australian property can be considered overvalued.
Since purchase affordability is declining very slowly at the moment, the support for current prices appears to be strong. It means that the property market should be very resilient if Australia were to experience a case a mild economic turbulence in the near future.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
<ul>
<li>perceptions about economy: negative and deteriorating</li>
</ul>
 <img src="/images/2014/08/26/EWI_August2014.png" alt="">
The Economic Wellbeing Index (EWI) is designed to reflect general perceptions of Australians about the current economic conditions.
The EWI is falling since June 2013. August 2014 estimate is in the negative territory and continues to fall. A more volatile raw measure is also down and the signs of recovery highlighted last month were short lived.
The key premise behind this indicator is that people are generally less inclined to make big purchases when they are worried about the state of the economy.
Actual prices cannot be expected to advance strongly for much longer if there is no substantial change in perceptions about the economy.
If such a change comes soon, we should experience a very vibrant spring selling season, where prices continue to rise strongly.
However, if pessimism prevails, which as this stage seems to be the more likely scenario, it will most likely put a dampener on the pace of further price growth due to reduction in demand for properties.
Nevertheless, there is no reason to panic just yet as the likelihood of prices falling is still very minimal. However, a flat-lining market is not totally out of the question. 
<ul>
<li>demand: still strong and trend is not yet changing</li>
</ul>
 <img src="/images/2014/08/26/PHCI_August2014.png" alt="">
The Private Housing Credit Impulse (PHCI) provides an indication of the level of buyer activity in the residential property market in Australia, hence it reflects underlying demand for properties.
The June 2014 PHCI estimate is positive and the value of the indicator is at its highest since December 2011.
The June value of PHCI is subject to final revision but it is very unlikely the indicator will change from its current direction.
The practical use of this indicator is to provide early warning about impending changes in housing credit uptake, and hence, changes in the underlying demand for residential property.
A positive and rising value of the indicator reflects continued strong demand for residential property. When the indicator turns down, it will signal a change in the underlying demand.
Investors stepping aside, as reported recently in the media, may prove to be the catalyst for change if they are not replaced by home-upgraders and first home buyers. However, so far, the demand holds quite strongly despite rising pessimism about the economy. 
<ul>
<li>property price expectation: growth to slow or flatten</li>
</ul>
 <img src="/images/2014/08/26/PPG_August2014.png" alt="">
The Property Prices Gauge (PPG) is a proxy of a property price index. It becomes a leading indicator when combined with House Price Index (HPI).
PPG recorded a small jump in June 2014. However, actual prices (June 2014 House Price Index) also increased by a similar margin and remain above what could be expected based on housing credit growth. 
The rebound in PPG provided evidence of a relatively strong support for the current prices.
However, the 12 month rate of growth in prices has now started to slow, reflecting softer market conditions in the last few months, as indicated by a flattening PPG.
Despite the rate of growth in prices moderating and PPG recording some gains in June, the gap between the two is not narrowing. It implies that property prices are vulnerable at this level and can unexpectedly stall or maybe even record a small fall.
If the rebound in PPG continues in coming months it will indicate a strong probability of further rises in property prices in the September quarter and beyond. However, any divergence from this uptrend will imply an underlying weakness in the market and hence greater uncertainty about the direction of property prices.
Arek Drozda is an independent property market analyst.
Caveat: The information is provided in good faith and does not constitute financial advice. Use with caution and at own risk.
For more extended description of individual measures and how to apply this information please refer to the first report in this series: <a href="/expert-insights/buying/buying-more-advantageous-than-renting-yet-change-imminent-april-2014-state-of-the-market-analysis">State of the Property Market, April 2014</a>.
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Pessimistic market outlook likely to put a lid on price growth: August state of the market analysis

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Over the first five months of the year, across the combined capital cities of Australia, RP Data has recorded 35,367 auctions of which 24,320 (69%) sold either under the hammer or shortly before/after the auction date. 
Over the same time frame we have recorded a total of 128,437 house and unit sales. Based on these numbers, auction sales account for about 19% of all sales across the capital cities of Australia (excluding Darwin).  Excluding the month of January, where very few auctions are held, the proportion of auctions to total sales increases to 22% between February and May.
The remaining 81% of home sales were sold by private treaty. The fact that private treaty sales account for the vast majority of all home sales often gets overlooked when people are commenting on recent market conditions and trends.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/08/Auction-and-private-treaty-sales-as-a-pc-of-all-sales.jpg" rel="wp-prettyPhoto[g3629]"><img class="aligncenter size-large wp-image-3630" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Auction-and-private-treaty-sales-as-a-pc-of-all-sales-580x252.jpg" alt="Auction and private treaty sales as a pc of all sales" width="580" height="252"></a>
Source: RP Data.
Of course the proportion of auctions varies substantially from city to city. Melbourne and Sydney have historically had a selling culture that is more heavily aligned with auctions as a method of sale.  Between February and May of this year, auction sales accounted for 35% of all Melbourne sales and 31% of all Sydney sales. At the other end of the spectrum is Perth where auctions are comparatively rare, comprising just 2% of all sales over the same time frame.
Another trend we have seen in the market since the growth phase kicked off in June 2012 is a substantial rise in auctions as a proportion of the total market. Clearly auctions as a method of sale are more popular when housing market conditions are ‘hot’; a fact which comes as no surprise. Auctions work best when there is high buyer demand providing a competitive bidding environment.
Of course, home value growth is strongest at the moment in Sydney and Melbourne which are the two most auction-centric markets.  What is interesting though is that auctions as a proportion of all sales are significantly higher over the current growth cycle (ie June 2012 to current) compared with the previous growth cycle (ie Jan 2009 to Oct 2010).
<a href="https://blog.rpdata.com/wp-content/uploads/2014/08/Auctions-as-a-pc-of-all-sales-history.jpg" rel="wp-prettyPhoto[g3629]"><img class="aligncenter size-large wp-image-3631" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Auctions-as-a-pc-of-all-sales-history-580x254.jpg" alt="Auctions as a pc of all sales history" width="580" height="254"></a>
Source: RP Data.
Considering that private treaty sales account for a larger proportion of housing sales than auctions, what high frequency metrics are available to monitor this side of the market?  RP Data publishes a variety of vendor metrics each week, with the most commonly referred to metrics being the average selling time and average level of vendor discounting which are both measures of private treaty conditions.  Both of these measures exclude auction results.
The average selling time is a measure based on the number of days from when a home is first advertised to the contract date of sale.  The vendor discount provides a metric on how much vendors are reducing their initial asking price in order to sell their home.  It’s based on the percentage difference between the initial asking price and the contract price on the home.  Both indicators are updated weekly by RP Data based on data received over the past 28 days.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/08/Tom-and-Vee.jpg" rel="wp-prettyPhoto[g3629]"><img class="aligncenter size-large wp-image-3635" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Tom-and-Vee-580x172.jpg" alt="Tom and Vee" width="580" height="172"></a>
Source: RP Data.
There are additional weekly metrics where you can follow the housing market trends such as updates to the RP Data Home Value indices, median selling prices, number of listings in the market, and metadata indices that indicate mortgage demand (RP Data Mortgage Index) and how many homes are being prepared for sale (RP Data Listings Index).
<a href="https://blog.rpdata.com/wp-content/uploads/2014/08/Values.jpg" rel="wp-prettyPhoto[g3629]"><img class="aligncenter size-large wp-image-3636" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Values-580x143.jpg" alt="Values" width="580" height="143"></a>
<a href="https://blog.rpdata.com/wp-content/uploads/2014/08/Listings.jpg" rel="wp-prettyPhoto[g3629]"><img class="aligncenter size-large wp-image-3632" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Listings-580x146.jpg" alt="Listings" width="580" height="146"></a>
<a href="https://blog.rpdata.com/wp-content/uploads/2014/08/RMI.jpg" rel="wp-prettyPhoto[g3629]"><img class="aligncenter size-large wp-image-3634" src="https://blog.rpdata.com/wp-content/uploads/2014/08/RMI-580x153.jpg" alt="RMI" width="580" height="153"></a>
<a href="https://blog.rpdata.com/wp-content/uploads/2014/08/RLI.jpg" rel="wp-prettyPhoto[g3629]"><img class="aligncenter size-large wp-image-3633" src="https://blog.rpdata.com/wp-content/uploads/2014/08/RLI-580x150.jpg" alt="RLI" width="580" height="150"></a>
 
Source: RP Data.
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How important are auction clearance rates in the housing market?

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GUEST OBSERVATION
<ol>
<li>The agency which sold you the investment property is not necessarily the best to manage it – it is worth actively reviewing your choices in the local area, rather than just taking the most obvious option. </li>
<li>The person who signs you up at an agency may not manage your property. This means you have limited opportunity to assess the calibre of the people who will actually manage your hard-won asset. </li>
<li>Even if you go to a great deal of effort to select an individual property manager, it’s also vital to assess their agency as a whole. Many agencies have high rates of staff turnover but good business systems help ensure consistency regardless of which manager looks after you. </li>
<li>The best property managers do more than collect the rent and organise repairs. For example, they can alert you to the benefits offered by depreciation schedules, suggest high-return improvements and make sure you are aware of your options when it comes to insurance. </li>
<li>Property agencies should be judged on quality not just price. The advantage of a slightly lower management fee will quickly be eroded if there’s an unnecessary vacancy or a badly-prepared tribunal appearance. Don’t forget to ask how many properties each manager has to handle when comparing agencies, and whether they hold open for inspections on weekends. Examine all their ancillary fees as these can really add up. </li>
<li>While it’s important not just to focus on price when selecting an agency, it’s also worth remembering that you can negotiate – the higher end the property, the more room there usually is to manoeuvre. Those with a larger portfolio also have more power to strike a better deal. </li>
<li>Consider doing some mystery shopping before deciding on an agency. Inspect the quality of “for lease” ads and photography, checking how long it takes for calls to be returned and even turn up to an open for inspection. </li>
<li>While property managers are on “your side”, they also have a professional duty of care towards tenants and a responsibility to ensure relevant legal rules are followed. Property managers need to be able to negotiate in a firm but personable manner with tenants and landlords – so when they say you can’t make DIY electrical repairs, for example, don’t take it the wrong way! </li>
<li>Property management is not an easy job. Think twice before taking on the role yourself – poor quality tenants often target DIY landlords because they know a professional will screen them out. It’s no coincidence that the landlords in tears in current affairs television over their “trashed house” are almost always managing their property themselves. Even with professional managers, there are no guarantees but, if worst comes to worst, they are better equipped to deal with the eviction process. </li>
<li>Property managers usually have access to a network of quality, responsive tradesmen. These may not always be the cheapest in town, but have proven their ability to get the job done reliably. If the quote provided really is over the top, take the time to do some research on alternatives – and be polite in raising the matter. Set aside some of the rent you receive so that you can afford repairs. </li>
<li>Read your annual rental statements with an eye for what’s missing as well as what’s there – has money been taken out for pool maintenance, gutter clearing and the like? If not, ask why. </li>
<li>Property managers can make your investment journey easier and smoother, but the buck stops with you – it’s up to you to carefully select your property manager, respond to their queries, monitor their performance and proactively change managers if necessary.</li>
</ol>
Sharon Fox-Slater is the General Manager of EBM Insurance Brokers’ <a href="https://www.rentcover.com.au/" target="_blank">RentCover </a>landlord insurance division.
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