<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Joel Robinson

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

Luxury apartment buyers have long prioritised design, space and finishes, but increasingly they're placing equal importance on something less tangible: how easily they can live without relying on a car.

At <a>Richmond Square</a>, <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> believes that convenience begins beyond the apartment itself, with the mixed-use precinct earning a near-perfect Walk Score of 99.

The development has been planned around the idea that some of the most valuable amenities aren't contained within a building, they're the restaurants, cafés, parks, transport connections and daily conveniences that can all be reached on foot.

Located just behind Swan Street and Church Street, <a href="https://www.apartments.com.au/new-apartments/richmond-square-1-wiltshire-street-richmond-vic-3121">Richmond Square</a> places residents within one of Melbo​u​rne's most established lifestyle precincts while offering a quieter residential setting removed from the busiest thoroughfares. East Richmond Station is moments away, trams run along both Swan and Church Streets, and the MCG, Melb​​ourne Park, Yarra River trails and the CBD are all within walking distance. At the same time, the precinct itself will introduce a curated mix of dining, retail, hospitality and wellness offerings, creating a destination that extends well beyond its residential buildings.

[smartcode_project:default project_id=13181 project_image_fid=348530]

For Fortis, that combination of location and scale was what made the site unique.

"<a href="https://www.apartments.com.au/developments/richmond-vic-3121">Richmond</a> is one of Melb​o​urne's most established and distinctive inner-city neighbourhoods, with a rare combination of dining, culture, recreation, public transport and proximity to the CBD," the developer said.

"The opportunity at Wiltshire Street was particularly compelling because the site sits slightly removed from the activity of Swan and Church Streets while remaining only moments from everything that makes the area desirable."

Rather than developing a standalone apartment building, Fortis consolidated 15 individual properties to create one of the larger development parcels assembled on Mel​b​ourne's city fringe in recent years. That allowed the team to deliver a genuine mixed-use precinct comprising 107 residences across Wiltshire House and Carmine House, premium office space, hospitality venues, retail, wellness offerings and a future 57-room hotel.

"The scale of the site allowed Fortis to think beyond a standalone apartment building," the developer said.

"Richmond Square could be planned as a complete lifestyle precinct, bringing homes, workplaces, dining, retail, hospitality and wellness together around a series of activated public spaces. The aim was to create a destination that feels connected to Richmond rather than separate from it."

[smartcode_project:default project_id=13181 project_image_fid=348533]

The emphasis on walkability has also resonated with buyers.

Interest has been strongest from established owner-occupiers, particularly downsizers from Richmond and Melb​ourne's inner east who want to remain close to familiar restaurants, workplaces, family and social networks while moving into a more secure, lower-maintenance home. The project is also attracting Mornington Peninsula and interstate buyers seeking a Melb​ourne residence they can lock up and leave between visits.

Many are looking for generous living spaces, room to entertain, quality finishes and confidence in the project team, but location remains one of the biggest deciding factors.

"For many buyers, Richmond Square provides a way to simplify the practical side of home ownership without reducing the quality of their lifestyle," the sales team said.

"Location is also a major driver of interest. Buyers can remain connected to the CBD, major sporting events, the arts centres, local restaurants, cafes and bars and their family while living in a private and secure residence that is easy to lock up and leave for weekends or longer periods away."

[smartcode_project:default project_id=13181 project_image_fid=348549]

The residences themselves have been designed with that buyer in mind. Award-winning architecture practice SJB and interior designers Hecker Guthrie have created spacious two and three-bedroom apartments and penthouses that prioritise generous living areas, natural light, bespoke joinery and private terraces. Above, a rooftop sanctuary by Acre includes landscaped lawns, bookable dining rooms, barbecue facilities, wellness spaces and panoramic views across the CBD, the MCG and Port Phillip Bay.

Fortis believes Richmond Square reflects a broader evolution in apartment living, where the surrounding neighbourhood becomes just as important as the residence itself.

"Richmond Square introduces a different proposition: generously proportioned residences within a genuinely mixed-use, hospitality-led destination," the developer said.

"The project's location and Walk Score of 99 further support a lifestyle where residents can complete many everyday journeys without relying on a car."

Fortis has assembled an experienced team that includes <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, <a href="https://www.apartments.com.au/interior-designers/hecker-guthrie">Hecker Guthrie</a>, <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a> and builder <a href="https://www.apartments.com.au/builders/hacer-group">Hacer Group</a>, reflecting the developer's commitment to creating projects with enduring design quality and meaningful connections to the communities in which they sit.&nbsp;

Richmond Square is an expression of that philosophy, bringing together homes, workplaces, hospitality and wellness within one of Me​lb​ourne's most walkable neighbourhoods.&nbsp;

Construction is now almost complete, providing purchasers with growing confidence ahead of its expected September 2026 completion.

[smartcode_project_cta:default project_id=13181]

Walk Score of 99 places Richmond Square at the heart of Melbourne's most connected lifestyle

<h3 data-end="19" data-section-id="1dvgwoe" data-start="0">Summary</h3>

<ul data-end="634" data-start="21">
	<li data-end="170" data-section-id="1o77v31" data-start="21">Walker Corporation has lodged plans for a second major residential development in the Maroochydore City Centre, a 29-storey tower known as Celeste.</li>
	<li data-end="327" data-section-id="1lb0y6t" data-start="171">The Plus Studio-designed proposal at Lot 30 Sunshine Coast Parade would deliver 208 apartments, including four four-bedroom sub-penthouses and penthouses.</li>
	<li data-end="487" data-section-id="za720" data-start="328">The application comes as Walker doubles down on Maroochydore following the strong sales campaign at SOL by Walker, where the first tower is nearing sell-out.</li>
	<li data-end="634" data-section-id="5sovec" data-start="488">Walker is a key partner in the transformation of the Maroochydore City Centre, which is expected to ultimately deliver at least 4,000 new homes.</li>
</ul>

Walker Corporation is doubling down on Maroochydore following the successful sales campaign at its first residential project in the emerging CBD.

The national developer has filed plans for <a href="https://www.apartments.com.au/new-apartments/celeste-30-sunshine-coast-parade-maroochydore-qld-4558">Celeste</a>, a new 29-storey apartment tower at Lot 30 Sunshine Coast Parade, just metres from its under-construction SOL by Walker development.

The plans, prepared by Plus Studio, would see 208 apartments delivered across a 100-metre tower on the 2,376 sqm site, which fronts Sunshine Coast Parade, First Avenue and Future Way within the Maroochydore Priority Development Area.

<img alt="Walker" data-entity-type="file" data-entity-uuid="17038209-6fea-4ed2-855d-fd4df65b3d02" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.16%E2%80%AFAM.png?VersionId=iZD.oVXcQn.aLpUytDAW.CWjxP4puWMy" />

The proposed apartment mix comprises 36 one-bedroom apartments, 48 two-bedroom apartments, 72 two-bedroom apartments with an additional multipurpose space, and 48 three-bedroom apartments.

The upper levels would be capped by two four-bedroom sub-penthouses and two four-bedroom penthouses, taking the total apartment count to 208. The preliminary yield study also provides 262 car spaces, 114 resident bicycle spaces and storage for each apartment.

It represents Walker's next major residential move in the new Maroochydore CBD after the success of SOL by Walker, its $220 million two-tower project nearby.

SOL launched to market in early 2025 and has since seen strong demand, particularly from local owner-occupiers. By February this year, Walker said the first SOL tower was nearing sell-out, with a strong waitlist also emerging for its recently released penthouse collection.

Construction is already underway on SOL, with the first tower expected to be completed in late 2027 and the second to follow in early 2028.

[smartcode_project:default project_id=147777 project_image_fid=319846]

<h2 data-end="2518" data-section-id="1b2dyo5" data-start="2459">Celeste to rise 100 metres over Maroochydore City Centre</h2>

Celeste would take a different form to the twin 19-storey buildings at SOL.

Plus Studio has designed a single 100-metre tower above an activated podium, with the architecture responding to the site's prominent position and three street frontages.

The podium would incorporate commercial tenancies and public art, with sweeping façade elements wrapping the street edges. The scalloped concrete podium has been inspired by the patterns created in sand at low tide, while extensive landscaping would continue vertically through the tower.

The ground level plans show three commercial tenancies addressing Sunshine Coast Parade alongside the residential lobby and landscaped public realm. The podium would then accommodate several levels of car parking before the residential tower rises above.

<img alt="Celeste" data-entity-type="file" data-entity-uuid="121f77b1-71c5-46d7-9b36-0a7d474211ca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.47%E2%80%AFAM.png?VersionId=MGrg9Hb7HgzLN0Lelq_xrXNAruVl77ia" />

Plus Studio said the tower had been designed to maximise views from each apartment, taking in the Maroochy River, Sunshine Coast hinterland, Cotton Tree and Maroochydore Beach and ocean.

Those views have also shaped one of the project's key features, with Walker proposing to put the primary resident amenity on Level 29 rather than lower within the building.

The rooftop would feature a 284.9 sqm pool area with an infinity edge, along with a cold pool, spa, sauna, 93.2 sqm gym, sunset lounge, BBQ and dining areas, pool deck and private dining space. Cabanas and day beds are also shown across the recreation level.

The two penthouses would extend across the upper levels and each feature private terraces and plunge pools.

<h2 data-end="4202" data-section-id="v5f4ix" data-start="4160">Walker's growing Maroochydore footprint</h2>

Celeste further reinforces Walker's commitment to the transformation of Maroochydore City Centre.

Walker is one of the key partners delivering the new CBD alongside Sunshine Coast Council and SunCentral Maroochydore, with the broader 62-hectare Priority Development Area occupying the former Horton Park Golf Course and surrounding land.

The precinct is ultimately expected to accommodate at least 4,000 new homes as Maroochydore evolves into the Sunshine Coast's principal commercial and residential centre.

When SOL secured approval in February 2025, Walker Managing Director and CEO David Gallant described it as the "first of many residential projects" the company planned for the Maroochydore City Centre.

Celeste now provides the clearest indication yet of what comes next.

The site sits immediately within the new CBD, with the design report identifying Sunshine Plaza and surrounding parkland within walking distance and Maroochydore Beach around a five-minute drive away.

For Walker, the timing of the application comes as its first residential bet on the new CBD appears to have been vindicated.

SOL has progressed from planning approval to construction while its first release has approached sell-out, giving Walker confidence to push ahead with another 208 apartments and take its residential pipeline in the Maroochydore City Centre to around 450 dwellings across the two projects.

Celeste remains subject to planning approval, with the architectural material describing the scheme as a preliminary yield study that may change through the assessment process.

Walker doubles down on Maroochydore with 29-storey Celeste apartment tower

For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make

The location, floorplan and price are often the first considerations, but in recent years another question has become increasingly important: who is actually delivering the project?

A series of high-profile builder collapses, construction delays and defect concerns have fundamentally changed how many Victorians approach buying off the plan. The collapse of Porter Davis in 2023, which reportedly left around 1,700 homes unfinished, became one of the most visible examples of the risks that can emerge when a construction company fails. <a href="https://www.equifax.com.au/sites/default/files/lpassets/pdf/Final-Business-Market-Pulse-June-Sector-Deep-Dive-Report-2.pdf">Similar challenges across the broader construction sector</a> have left buyers asking more questions before signing a contract.

As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.

One tool increasingly entering the conversation is the <a href="https://icirt.com/">Independent Construction Industry Rating Tool (iCIRT)</a>, an independent assessment framework designed to help buyers better understand the developer or builder behind a project. Originally developed by Equifax in consultation with government and industry as part of NSW's Construct NSW reforms, the system has since expanded nationally.

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

Most Australians are familiar with independent ratings in everyday life.

We compare ANCAP safety ratings before buying a car. We look at Health Star Ratings in supermarkets. Banks rely on credit assessments when lending money.

Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.

That gap is what iCIRT was designed to address.

Builders, developers and other construction professionals with an iCIRT rating have demonstrated high-trust characteristics through an independent, evidence-based assessment across six criteria: Character, Capability, Conduct, Capacity, Capital and Counterparties. This involves a rigorous review of financial health, past project track record, and ethical conduct. Crucially, an iCIRT rating could help provide property buyers with confidence that they are working with a professional who has demonstrated the capability, capacity, and willingness to return and rectify issues.

Importantly, iCIRT is not a recommendation to purchase a particular property, nor is it a traditional credit rating. It is an independent assessment framework designed to provide objective information about a construction business using a <a href="https://icirt.com/sites/default/files/2025-08/iCIRT-Methodology-Issue1-May-2021.pdf">published methodology</a>.

The system has been widely adopted in New South Wales, where more than one-third of medium and large residential builders and developers now hold an iCIRT rating, representing over two-thirds of the state's residential building market by value as of 2025/26.

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.

It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.

<a href="https://icirt.com/sites/default/files/2026-07/iCIRT%202025%20Consumer%20Survey%20Report%20v05.pdf">Consumer research commissioned by iCIRT</a> found more than half of respondents believed current protections do not adequately safeguard buyers from builder insolvencies or defective projects. Other research found 88 per cent of prospective buyers would seek independent ratings or due diligence before purchasing, while 90 per cent said trust in construction professionals is essential.

That doesn't mean buyers should rely on a single rating alone.

Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.

However, an independent assessment can provide another source of information alongside those traditional checks.

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

The conversation isn't only changing for buyers.

Developers are also recognising that trust has become an increasingly important part of the sales process.

Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.

Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.

For companies with strong governance and established delivery records, an independent iCIRT rating provides another way to demonstrate those credentials before buyers even visit a display suite.

According to Equifax, the assessment can also help businesses drive sales and <a href="https://icirt.com/resources-for-business/icirt-rating-helps-scion-secure-high-value-projects">secure high-value projects</a>, as well as identify operational improvements and <a href="https://icirt.com/resources-for-business/mirvac-reinforces-brand-trust-and-quality-independent-icirt-rating">attract top talent</a>.

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

The influence of independent construction ratings is also extending beyond consumers.

According to Stamford Capital's Real Estate Debt Capital Markets Survey, an increasing number of lenders now incorporate iCIRT ratings into their due diligence processes when assessing residential development finance applications.

The survey found lender adoption has continued to rise, with many respondents saying independent assessments provide additional insight into governance, counterparties and delivery capability beyond traditional financial analysis. Some lenders also reported declining funding applications where businesses had poor or no ratings.

As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

Victoria's apartment market is entering a new phase.

The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.

For buyers, that means there are more tools available than ever before to research the businesses behind a project.

For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.

Buyers are asking more questions than ever before and increasingly expecting independent information, not just marketing material, before making one of the biggest financial commitments of their lives.

Find out how to get iCIRT rated <a href="https://www.icirt.com/sites/default/files/2025-08/iCIRT-Infographic-Assessment-Process-Final.pdf">here</a>.

<hr data-end="6469" data-start="6466" />
The information contained in this article is general in nature and does not constitute personal, financial, legal or tax advice. It does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it and, where appropriate, seek independent professional advice.

This article contains links to third-party websites. These links are provided for convenience only. Equifax Australia does not control and is not responsible for the content, accuracy or privacy practices of external sites.

Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

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;

[smartcode_project:default project_id=111820 project_image_fid=344699]

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.

[smartcode_project:default project_id=136442 project_image_fid=374084]

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.”

[smartcode_project:default project_id=134954 project_image_fid=4553]

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>
	<li>Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li>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>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>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>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>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>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>
	<li>Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li>Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li>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>Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

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

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?

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Investors secured two south east Queensland 7-Eleven service stations at auction yesterday, at an average 6.1% yield.
<a href="https://www.7eleveninvestments.com.au/queensland-properties/" target="_blank">JLL’s Sam Byrne and Sam Hatcher marketed the properties on behalf of the Withers Barlow Property Trust.</a>
The Robina store fetched $4.3 million and the Nerang store sold at $4.7 million.
The 15-year lease terms that commenced between 2010 and 2012, come with three five-year options; guaranteed fixed 4% annual rent increases, with the tenant responsible for all outgoing costs except land tax.
The 4,032 square metre Robina outlet (pictured above) at 48 - 56 Commerce Drive had a current rental of $291,340+gst.
The 4,100 square metre Nerang outlet at 70 Beaudesert-Nerang Road had a current rental of $321,149+gst.
One of the buyers had missed out on his selection at the <a href="/expert-insights/investing/yields-tighten-in-latest-7-eleven-sydney-service-station-offering">auction of seven offerings in Sydney on the day prior</a>.
Six more 7-Eleven service stations in Melbourne, will be auctioned today.
Russell Withers, worth an estimated $665 million according to the recent BRW Rich list, jointly owns the rights to 7-Eleven in Australia with his sister, Beverley Barlow.
Chairman Russell Withers introduced the 7-Eleven concept to Australia, opening the first store in Oakleigh in 1977.
His grandfather, George, had a grocery store in South Yarra, in 1912 which became a chain of grocery stores.
The 7-Eleven chain operates more than 600 outlets and has recently expanded into Western Australia
Jones Lang LaSalle has been selling the stores in tranches on behalf of 7-Eleven since early 2011.
The purchasers have been attracted by land rich investment properties in prime locations with secure long-term leases and fixed rental increases.
Many of the buyers were self-managed super fund retirees looking for passive cash flow investments, seeing the opportunity as ticking the box for a premium tenant on long-term lease, high underlying land value, rental growth guarantee, and high-profile exposure locations.
 
The franchisee occupies the site under licence meaning the landlord has no exposure to the franchisee, only to 7-Eleven directly.
 
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jchancellor-FAypfDUnLy

JLL secures 6% yields in SE Queensland 7-Eleven offerings

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Last month residential property stock on the market decreased to the lowest level seen since February 2011, according to SQM Research.
Nationally, there were 334,683 unsold properties last month, down 3.6% from the month before and 4.8% from July last year. <a href="https://www.sqmresearch.com.au/" target="_blank"></a>
<a href="https://www.sqmresearch.com.au/" target="_blank">SQM Research</a> says the market "remains in favour of sellers", with low stock levels pointing to an active market. However, the research firm also notes the rate of decrease has slowed, particularly in Sydney, which saw a yearly stock decline of 8.7%. There, annual stock declines between 15% and 25% were previously recorded.
Of the results, SQM Research managing director Louis Christopher says: "The national housing market overall remains buoyant with real estate listings being absorbed at a fairly fast pace and buyers moderately outnumbering sellers.”
<table border="0"><tbody>
<tr>
<td>City</td>
<td>July 2013 total </td>
<td> June 2013 total</td>
<td>July 2014 total</td>
<td>Monthly change %</td>
<td>Yearly change %</td>
</tr>
<tr>
<td>Adelaide</td>
<td> 16,453</td>
<td> 15,819</td>
<td> 14,593</td>
<td> -7.8%</td>
<td> -11.3%</td>
</tr>
<tr>
<td>Brisbane</td>
<td> 26,150</td>
<td> 26,624</td>
<td> 25,615</td>
<td> -3.8%</td>
<td> -2.0%</td>
</tr>
<tr>
<td>Canberra</td>
<td> 3,555</td>
<td> 3,250</td>
<td> 3,140,</td>
<td> -3.4%</td>
<td> -11.7%</td>
</tr>
<tr>
<td>Darwin</td>
<td> 1,302</td>
<td> 1,531</td>
<td> 1,582</td>
<td> 3.3%</td>
<td> 21.5%</td>
</tr>
<tr>
<td>Hobart</td>
<td> 4,280</td>
<td> 4,137</td>
<td> 4,063</td>
<td> -1.8%</td>
<td> -5.1%</td>
</tr>
<tr>
<td>Melbourne</td>
<td> 46,748</td>
<td> 43,237</td>
<td> 41,432</td>
<td> -4.2%</td>
<td> -11.4%</td>
</tr>
<tr>
<td>Perth</td>
<td> 19,353</td>
<td> 21,220</td>
<td> 20,049</td>
<td> -5.5%</td>
<td> 3.6%</td>
</tr>
<tr>
<td>Sydney</td>
<td> 23,207</td>
<td> 22,504</td>
<td> 21,179</td>
<td> -5.9%</td>
<td> -8.7%</td>
</tr>
<tr>
<td>National</td>
<td> 351,397</td>
<td> 347,074</td>
<td> 334,683</td>
<td> -3.6%</td>
<td> -4.8%</td>
</tr>
</tbody></table>
 Source: SQM Research
The largest monthly decrease was recorded in Adelaide, where stock on market fell by 7.8% to 14,593 homes. On a yearly basis, Canberra had the greatest decline, with an 11.7% decrease to 3,140 homes on the market. Darwin was the only capital city where a monthly increase in stock levels was recorded. Stock on market climbed 3.3% in July to 1,582. The city also saw the biggest yearly jump of stock on market, of 21.5%. The firm also recorded a small month-on-month decrease in asking prices for houses, of 0.2%. Unit asking prices saw an increase of the same proportion on a national level for July.
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jrichardson-uRX5hFdKfN

National stock levels down to three year low in July: SQM

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GUEST OBSERVATION
There is now keen interest in whether the US Federal Reserve will move to raise its near zero interest rates following two recent pieces of conflicting economic data.
Data on real GDP for the second quarter of 2014 indicate the US economy is growing at an annualised rate of almost 4%. This figure represents a marked turnaround on the negative growth rate for the first quarter of 2014. The average annualised quarterly growth rate for real GDP since the end of the <a href="https://www.nber.org/cycles">US recession</a> in the second quarter of 2009 is only 2.2%. So the 4% figure represents an above-average outcome.
Some preliminary evidence that the stronger US growth will be maintained into the third quarter of the year can be found in the latest <a href="https://www.markiteconomics.com/Survey/PressRelease.mvc/d4d22d88d4f54cf69dcc6e2fa12cb082">PMI</a> figures for July.
But despite the recent strong growth in real output, the consensus view remains that actual US output is still below its potential output, implying the continued existence of a negative output gap for the US economy (where the output gap is defined as actual output less potential output). The latest Congressional Budget Office estimates for potential output suggest a current output gap of about -4.5%.
Further evidence of a negative US output gap can be found in the unemployment rate, which stood at 6.2% for the month of June. The civilian unemployment rate reached a post-recession peak of 10% in October 2009 and has trended downwards since then.
At 6.2% the unemployment rate is still about 1.8 percentage points above its pre-2008 recession low-point. The current rate also lies above the average rate of 5.3% that was achieved during the 2001 to 2008 expansion.
Both these outcomes raise questions as to whether the Fed will soon end its unconventional monetary stimulus program of quantitative easing, and more significantly begin to increase its interest rate, more properly referred to as the Federal Funds (FF) rate, set just slightly above zero since the end of 2008.
Quantitative easing (QE) is a policy whereby the US Fed purchases longer-term assets - mainly mortgage-backed securities and long-term US Treasuries - with the ultimate objective of reducing long-term interest rates (if the Fed’s purchases bid-up the price of an asset it will reduce its yield). QE began during the GFC and continues today. Recently, the Fed has begun to taper the size of its asset purchases and at its end-July meeting the Federal Open Market Committee (FOMC) reduced the value of monthly asset purchases from $US 35 billion to $US 25 billion.
The other key variable for the Fed’s monetary policy setting is US inflation. The Fed has a stated target rate for inflation of 2% per annum. Standard measures of US inflation are the PCE (personal consumption expenditures) index - which showed year-ended inflation for the month of June at 1.6% - and the CPI (consumer price index) - which showed year-ended inflation for the month of June at 2.1%.
These are headline figures and like most central banks the Fed uses measures of underlying or core inflation as an indicator the general trend in inflation. One widely used measure of US core inflation is the PCE less food and energy, which increased by 1.5% in the year through to June.
Whatever measure is used, the inflation outcomes for the US since the end of the 2008 recession have generally been well below the Fed’s target rate of 2%. To date there has been little pressure from inflation outcomes for the Fed raise the FF rate.
The current unemployment rate and negative output gap are consistent with the view that resource utilisation in the US economy is still below some optimal/normal level. Provided that inflation and its forecasts do not move significantly above the Fed’s 2% target, this will tend to support a continued expansionary stance for monetary policy; with no immediate movement towards raising the FF rate.
A reading of the end-July FOMC Statement suggests that if current tends in US growth and inflation continue, the Fed will move to end its QE program, but may then wait some time to begin raising the FF rate.
Furthermore the process of returning the FF rate to some normal level - a rate approximately equal to the sum of the real interest rate and 2% inflation - is likely to occur via a series of small steps. Current expectations suggest the first increase in the FF rate will be in 2015.
For the Australian economy, the initial effects of rising FF rate are likely to be felt as downward pressure on the value of the Australian dollar.
 
Glenn Otto is associate professor at <a href="https://www.asb.unsw.edu.au/" target="_blank">Australian School of Business<img src="https://counter.theconversation.edu.au/content/30044/count.gif" alt="The Conversation" width="1" height="1"></a>. 
Glenn receives funding from the Australian Research Council.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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po-LsXgBTHBmX

US interest rates: time for a change or steady as it goes?

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Senator Nick Xenophon's proposed legislative changes to allow first home buyers to access their superannuation funds for a deposit on their first homes have seen many different reactions from property experts.
“With more and more Australians finding it difficult to break into home ownership, adopting the Canadian scheme would make a difference to many thousands of Australians each year,” said Xenophon.
The Canadian scheme allows first home buyers to extract C$25,000 for the purchase of their first home, which must be repaid into the fund within 15 years.
The scheme has been supported by some industry groups and businesses and derided by others.
Property Observer took the question to the experts: Should first home buyers be allowed to access their superannuation to fund the deposit on their first home?
Catherine Cashmore: market analyst <img src="/images/authors/fullbody/Catherine-Cashmore.png" alt="" align="right">
Nick Xenophon, along with other groups, such as the REIA, is advocating a policy that will be responsible for making housing affordability worse.   The procedure in Canada allows eligible buyers to withdraw up to C$25,000 tax-free from their retirement fund, on the condition that they pay it back over a 15-year period.   
If they fail to do this, the amount withdrawn will be taxed as per the income earner's tax bracket. Currently, 35 per cent of Canadians fall into this category. However, according to the CRA, roughly one out of two (47%) contributed less than the required repayment amount over the 2011 tax year.    The Government picks up the added income revenue windfall.
Buyers, buoyed by a rent seeking culture that fools the public into believing such policies are designed to be ‘helpful’, over stretch their budget and are left to carry the can in weak economic conditions.   In short - you borrow money from yourself at 0% interest and in doing so lose 15 years of compounding 'tax free' interest with average returns in the order of 7%.    
Many low to middle-income individuals have inadequate funds to draw upon. So even assuming the scheme were to be effective, the difference it can make to those that need the help is limited.   
But the real ‘nub’ of the issue, which Nick Xenophon has failed to acknowledge, is that the Canadian Home Buyer Plan was never intended to aid affordability.    It was promoted by the real estate industry following the 1990s recession to stimulate land values and benefit the FIRE (finance, insurance, real estate) sector, along with its economic offshoots - renovations, furniture and appliances, moving costs, tax revenue to government and so forth. The FIRE sector has lobbied to keep in place ever since and also pushed for the threshold to be raised.
Craig MacKenzie: RP Data executive general manager commercial, with research analyst Cameron Kusher<img src="/images/2014/08/06/CraigMackenzie.jpg" width="150" height="225" style="float: right;">
Pros:
<ul>
<li>Buyers need genuine savings given the price of housing in cities Sydney and Melbourne and the cost of renting saving deposit is extremely difficult, accessing superannuation would make it easier</li>
<li>Genworth reports that 1 in 4 first home buyers need assistance from their parents to enter the market, by accessing superannuation they remove the burden from the parents</li>
<li>In some instances tapping superannuation would mean that the purchaser doesn’t have to pay LMI on their purchase which would reduce the cost of purchase</li>
<li>The retirement savings pool is one of the largest in the world unlocking a portion of it would enable first home buyers to access one of the most basic human need, shelter</li>
<li>Superannuation is about forced saving for retirement, a home for owner occupation is a long-term investment so the horizons are aligned.</li>
<li>Ultimately the position is neutral with the Canadian scheme seeing the amount withdrawn from Canadian Registered Retirement Savings Plan’s (RRSPs) repaid over 15 years.</li>
</ul>
Cons:
<ul>
<li>Accessing Superannuation doesn’t address the key reason why FHB can’t purchase a home, that is that it is too expensive in many areas particularly those areas close to city centres and around major working nodes. </li>
<li>By accessing Super to purchase a home it would potentially increase home values further, much like the First Home Owners Grant has</li>
<li>Utilising Superannuation would allow FHB to buy in a location they otherwise couldn’t afford to, is this really a good policy given buyers should by in a location which is aligned with their current means to repay a mortgage.</li>
<li>The Canadian scheme doesn’t appear to have any penalty or interest associated with withdrawing that money.  The amount is paid back over 15 years however, that is 15 years over which that money could have compounded if invested elsewhere.</li>
</ul>
It should be noted that Canadian RRSPs are somewhat different from Superannuation as they are set up by individuals and in most instances employers don’t contribute to the plan.  It is about saving for retirement however, there are no compulsory contributions from the employer rather an RRSP is set up by the employee to save for retirement.
 
Turn over page for more responses, from Philip Soos, Helen Hodgson and Peter Bushby.
 
 
<hr class="system-pagebreak">
 
Philip Soos: economist, author and Deakin University PhD candidate<img src="/images/2014/08/06/soos-profile.jpg" width="150" height="180" style="float: right;">
<div>I staunchly oppose the suggested policy advocated by Senator Nick Xenophon, which allows potential first home buyers to access their superannuation to finance a deposit. Simply put, it acts likely a privately-financed First Home Owners Grant/Boost, which has the intended effect of distorting (and increasing) housing prices.</div>
<div> </div>
<div>One of the most popular interventions in the housing market has been the use of federal government homeowner cash grants, in one form or another. They are implemented on the pretext of helping Australians realise the so-called dream of home ownership. This is false, however, as housing prices outpace the amount of the FHOG/B by a considerable multiple due to the additional leverage bank credit enables.</div>
<div> </div>
<div>Put another way, the FHOG/B is rendered null and void, as it is simply capitalised into higher prices from the moment of its availability. The FHOG has the effect of pulling forward demand for housing into the present, with first home buyers stampeding into the housing market.</div>
<div> </div>
<div>The pretext for superannuation is to help retirees, but in reality is designed as a pork barrel for the financial sector, which creams off approximately $19 billion in fees annually. Bankers already benefit from regulations allowing homeowners facing foreclosure to raid their super.</div>
<div> </div>
<div>Xenophon’s policy makes it doubly worse – another gift to bankers through higher housing prices, larger loan portfolios, and rising net interest income. This senator owns eight properties; it is clear he advocates this policy out of self-interest, not out of any concern for first home owners. It is designed to increase home prices, not home ownership.</div>
<div> </div>
<div>
Helen Hodgson: associate professor, Department of Taxation at Curtin Business School, Curtin University <img src="/images/2014/08/06/Helen.Hodgson.png" width="150" height="167" style="float: right;">
</div>
<div> </div>
<div>Secure housing is important to wellbeing in retirement, but as the superannuation guarantee increases to 12% first home buyers hoping to enter the market will find it increasingly difficult to save a deposit. There are three major hurdles to the proposal to allow access to superannuation: 1. Increased demand increases house prices in the relevant price range: as Saul Eslake notes, first homebuyer grants end up in the pockets of vendors. Stamp Duty concessions have been scaled back with some states limiting them to new construction to stimulate housing supply. A similar strategy here could limit house price rises due to increased first home buyer activity. 2. Superannuation is a tax preferred investment, and allowing superannuation withdrawals would exploit this tax advantage. The accumulated superannuation balance is higher than other investments, and a salary sacrifice strategy could take advantage of this. This could be counteracted by taxing withdrawals at the marginal tax rate, less the tax paid by the fund. 3. The funds must be used to acquire and continue to use the property as a residence. There should be a requirement that if the person moves out of the property the funds must be repaid, coupled with compliance measures.</div>
<div> </div>
<div>This article continues on the next page with thoughts from Peter Bushby and Terry Ryder. </div>
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Peter Bushby, Real Estate Institute of Australia president <img src="/images/2014/08/06/bushby-profile.png" width="150" height="200" style="float: right;">
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<div>It's been part of our (the REIA's) policy for many years now that it should be considered as a possibility, as long as it's packaged correctly, and as long as it doesn't harm, or have a negative effect on superannuation funds, and [first home buyers] would be paying it back in the longer term. We certainly believe it would be a tool to assist first home buyers., It would actually allow a lot of people to take advantage of and enjoy the benefits of home ownership that they can't quite get at the moment. They might be able to get the money at the end of the day, but if they got it earlier, it could be far more valuable to them, rather than renting and paying off someone else's mortgage. We believe that it is a viable option. Of course you'll get a negative reaction from the super funds and so on, but we believe that as long as it's operated properly, it could be very valuable. There are a couple of schemes that operate well around the world. We've identified Canadian and Singaporean schemes that could be translated, though obviously it would work differently here. But the Canadian scheme in particular could be useful to look at. It's about looking at the elements of it that would work best in our market without damaging existing super funds.</div>
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<div>Terry Ryder, founder of hotspotting.com.au <img src="/images/authors/fullbody/Terry-Ryder.png" width="135" height="186" style="float: right;"></div>
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<div>Nick Xenophon is suggesting a solution to a problem that does not exist. And, in the process, weakening the solution to a problem that does exist.</div>
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<div>Xenophon's proposal is based on the premise that we have an affordability problem in Australia. All the evidence suggests that we do not.</div>
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<div>Before we start implementing solutions, we need to properly understand the "problem". It is assumed that, because first-home buyers are apparently less active than before, there can be only one explanation - that they cannot afford to buy. The evidence suggests another reason: that young adults are not interested in buying. They have other priorities. Their parents were married with kids and a mortgage before the age of 30, and today's generation doesn't want that. </div>
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<div>So we don't need Xenophon's solution which, while addressing a non-existent problem, would weaken the solution to a very real existing problem. And that is the rapidly ageing population and the need for people to fund their retirement - for which superannuation is critical. Superannuation funds should be sacrosanct.</div>
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Exclusive: The experts on super access for first home buyers

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There are any number of expensive options across New South Wales, but what about the cheaper suburbs?
Property Observer looked to the most recent median unit prices from RP Data to find out where the cheapest options are (sub-$200,000), and their gross rental yields, and then took to the current listings to see whether these properties could really be snapped up in today's markets.
Here are the suburbs and what we found, in alphabetical order.
<a href="/news">Bomaderry</a>
$195,000
On the market now: Three apartments or units at $190,000 or below. The cheapest is at 1/42 Lyndhurst Drive, asking $180,000 for a two-bedroom one-bathroom apartment. The most expensive is 1/5 Harbour Boulevard, which is asking $257,000 for a two-bedroom one-bathroom.
Gross rental yield: 6.4%
<a href="/news">Brownsville</a> $195,000 On the market now: Only two options came up, one at $200,000, the other at “over $200,000”. Gross rental yield: 6.8%
<a href="/news">Casino</a> $190,000 On the market now: Currently, there are 30 units or apartments on the market, including an entire block of flats (three one-bedroom and one two-bedroom) for $349,000 as well as a $269,000 home converted into two units that is marketing itself to developers. Individual apartments up for sale span from a $132,000 two-bedroom one-bathroom unit advertising a potential 7.1% rental yield to a $270,000 three-bedroom, two bathroom villa in a newer estate. Gross rental yield: 6.02% <a href="/news">Corowa</a> $139,000 On the market now: There are five units or apartments to choose from. A two-bedroom, one-bathroom brick veneer unit for $130,000 is the cheapest up to a two-bedroom, one-bathroom unit with a larger yard for $159,000. Gross rental yield: 6.28% <a href="/news">Cowra</a> $115,000 On the market now: Four Cowra results reveal opportunities for $100,000 (for a one-bedroom, one-bathroom offering) up to a $375,000 renovated studio with a blue chip tenant offering a 7% rental return. Gross rental yield: 7.69%
<a href="/news">Deniliquin</a>
$124,000
On the market now: Eight results come up for a search, including some business premises. One of the apartments is a one-bedroom, one-bathroom offering for $85,000. The priciest is a $320,000 opportunity, bringing two apartments to the market each with two-bedrooms, one-bathroom and with $170 and $175 per week in rent.
Gross rental yield: NA
<a href="/news">East Albury</a>
$185,000
On the market now: There are currently purchasing opportunities from a two-bedroom one-bathroom apartment for $129,000, to $239,000 for a well presented two-bedroom unit with a garage.
Gross rental yield: 5.92%
<a href="/news">Griffith</a>
$192,000
On the market now: Currently there are six apartments for $700,000 in total in a listing and a 16 room boarding house for $360,000 plus, with individual offerings spanning as low as $175,000 for a two-bedroom one-bathroom.
Gross rental yield: 6.77%
<a href="/news">Kooringal</a>
$190,000
Currently on the market: With just six offerings, aimed at investors includes a two-bedroom, one-bathroom for $119,000, aiming itself at new investors starting their portfolio, and a $253,000 renovated opportunity with two-bedrooms and one-bathroom in a central location. The listing notes it has rent potential of $280 to $300 per week.
Gross rental yield: 6.02%
<a href="/news">Lavington</a>
$138,000
Currently on the market: Currently, there are 35 options in Lavington. A two-bedroom, one-bathroom sits at the bottom of the list at $105,000 with tenants who have been in residence for four years. There are many options around the $120,000 mark, and a couple of multi-unit offerings in the $200,000 to $300,000 bracket. For $215,000 investors can buy themselves a freestanding two-bedroom one-bathroom townhouse.
Gross rental yield: 7.56%
See over page for more
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<a href="/news">Leeton</a>
$191,000
Currently on the market: A measly three listings comes up when searching for Leeton units, with a one-bedroom, one-bathroom offering for just $69,500 on the edge of town, up to a $147,000 two-bedroom, one-bathroom offering that appears to aim itself more towards owner occupiers.
Gross rental yield: 5.73%
<a href="/news">Lismore</a>
$168,000
Currently on the market: Just one listing comes up for Lismore, with 9 Cathcart Street offering “Cash flow positive flats” saying that they want the market to tell them what they’re worth and asking for offers. They’re expecting that the two dwellings on one title as a ‘flat’ will net two incomes totalling $565 per week in rental income.
Gross rental yield: 7.45%
<a href="/news">North Albury</a>
$157,000
Currently on the market: Offerings from $119,000 for a two-bedroom, one-bathroom unit – aimed at first home buyers and investors – up to $295,000 for a block of two units, and $189,900 for a three-bedroom, one-bathroom townhouse.
Gross rental yield: 5.96%
<a href="/news">Nowra</a>
$175,000
Currently on the market: Three offerings in Nowra see a $142,000 two-bedroom one-bathroom listing compete with a $235,000 two-bedroom, one-bathroom free-standing villa and a newly renovated CBD $229,000 two-bedroom, one-bathroom apartment.
Gross rental yield: 6.84%
<a href="/news">Taree</a>
$155,000
Currently on the market: In total, 19 results (when taking out duplicates) come up when searching in Taree. A whole block of four units is seeking investors to pay $495,000 for the offering. Meanwhile, a $235,000 three-bedroom duplex with no strata is being advertised. There are also many offerings on the other side of the spectrum, with two units (one bed sitter and one studio) looking for $72,500, with most of the cheaper options around the $120,000 mark.
Gross rental yield: 7.38%
<a href="/news">Tolland</a>
$124,000
Currently on the market: Six Tolland results see the most expensive asking for offerings around $195,000 for two-bedroom, one-bathroom and one-garage with a tenant in-situ at $240 per week until January 2015. A $118,000 two-bedroom, one-bathroom unit is also up for sale suggesting that the previous tenant paid $175 per week, and also noting that the adjacent unit is also up for grabs.
Gross rental yield: 7.65%
<a href="/news">Vineyard</a>
$165,000
Currently on the market: Just two units are available – both over-55s villas, the first for $165,000, the second for $320,000, both in Windsor Country Village. Another stage of property releases is also noted for the area in Granthan Estate, which notes that stage one’s 111 lots and stage two’s 116 lots sold out, with stage three now to be released with 56 elevated lots. They are priced from $345,000.
Gross rental yield: NA
<a href="/news">Warrawong</a>
$194,000
Currently on the market: Just one option exists in Warrawong right now, asking for offers above $199,000. The two-bedroom top floor unit is in a boutique complex of four and has been recently updated. It notes that strata levies include admin of $570.40 per quarter and $182.25 per quarter for the sinking fund.
Gross rental yield: 6.7%
<a href="/news">West Albury</a>
$198,000
Currently on the market: Four West Albury options from $179,000 to $270,000 are available. The lower priced offering on Padman Drive includes two bedrooms and one bathroom, while on the other end of the scale is a three-bedroom, two-bathroom unit with one garage, with just two units on the block. Gross rental yield: 6.06%
<a href="/news">West Tamworth</a>
$184,000
Currently on the market: No listings currently noted for units and apartments in West Tamworth.
Gross rental yield: 6.78%
<a href="/news">Windradyne</a>
$190,000
Currently on the market: Six opportunities, evenly split between Bathurst Real Estate and the local Ray White office are available. These span from $134,000 to $205,000, the lower being the only one-bedroom, one-bathroom listed and the higher being one of two three-bedroom, one-bathroom offerings. The rental potential of the $134,000 listing is set at $150 per week, with the more expensive listing suggesting an achievable $270 per week.
Gross rental yield: NA
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jduke-EHk3XBmHkn

The 19 NSW suburbs with median apartment prices sub-$200,000

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I think there’s a strong argument that the strongest property market in Australia right now is not Sydney, nor Melbourne, but the Queensland regional city of Toowoomba.
This is the market which has not only delivered outstanding growth in the past year but has the credentials to keep on doing it. It has one of the nation’s most vibrant local economies, it has the lowest unemployment in the land, it’s affordable, it has above-average rental yields and there is a massive infrastructure spend under way.
That’s an investment cake with lots of tasty ingredients. And the icing on the cake is the resources activity in the nearby Surat Basin.
A question I always ask when a location is being boosted by exceptional circumstances is this: if all that activity suddenly stopped, would the location still be a good investment?
In the case of Toowoomba, this means: would the cake still be tasty without the icing? If all the coal seam gas and related activity stopped tomorrow, would Toowoomba still be a good buy?
The answer, unequivocally, is yes.
Toowoomba has long been an important regional centre. It’s Queensland’s largest inland city and it has that most important of ingredients, economic diversity – including agriculture, tourism, manufacturing, health &amp; community services, construction and government administration.
I’ve been shouting about Toowoomba for several years now and recently the city has been widely recognised for its many qualities.
A 2012 report by the Queensland Chamber of Commerce and Industry rated the <a href="/news">Toowoomba</a> region as the backbone of the state economy. The chamber’s Queensland Pulse Report ranked the south-west region, centred on Toowoomba, as the leader in all key criteria except one. The region led the state on business confidence, general business conditions, sales and revenue, employment levels and capital spending.
A 2013 report by Suncorp Bank rated Toowoomba as the employment capital of Australia. It had the lowest unemployment rate at 1.9%, ahead of Darwin 2.1% and Canberra 2.9%. This was reinforced in a September 2013 report which found Toowoomba’s unemployment rate was 1.5 percentage points below the national average. Toowoomba was also rated the third most “family friendly” of Australia’s 30 largest cities.
Affordability and strong rental returns are a big part of the Toowoomba appeal for invesetors. The standard house purchase is something in the high $200,000s or low $300,000s, with apartments in the mid to high $200,000s. It’s fairly easy to find 6% gross yields on houses and 6.5% on units. Vacancies are consistently low.
According to Australian Property Monitors, there has been exceptional capital growth in the past 12 months. Most suburbs have had double-digit growth in their median prices, with several recording 15% to 18%.
Prospects for ongoing performance are strong. The infrastructure spend is considerable and there is the bonus of resources activity via the coal seam gas which is feeding the new processing plants at Gladstone.
The Wellcamp Airport is well advanced in construction, there is massive investment in roads (including the $1.6 billion second range crossing, which has state and federal funding), there are plans for two major new rail links to serve the resources sector, a $300 million convention centre is in the offing and there are upgrades to medical facilities including Toowoomba Hospital.
Property developers are active, with projects that include a $350 million re-development of inner-city retail facilities, major industrial estates and an array of housing and apartment projects.
In terms of what many investors would see as the ideal investment venue – affordable prices, strong rental returns and great future prospects, underpinned by a vibrant local economy – it doesn’t get much better than Toowoomba.
You can contact Terry via <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
 
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terryryder-YECXbqmri2

Strongest property market right now isn't where you think

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Syd Fischer's has secured $8 million for his remaining whole floor Gazebo, Elizabeth Bay high-rise apartment.
<a href="https://www.ballardproperty.com.au/Renting/slideshow.aspx?id=BALLARD%20PROPERTY922&amp;wlid=6081b0de-67a5-4a16-a773-330c960d3be4" target="_blank">It's the 16th floor in the former 201-room 1970s hotel</a>. The apartment has been bought by the vice president of the Brewers for Europe, Anthony Froggatt, who previously served as chief at Heineken UK Limited.
The 18-storey Elizabeth Bay Road tower, nicknamed "the corncob", now has 61 apartments after a four-year conversion was completed in 2005.
The penthouse-style residence was meticulously crafted to create a state-of-the-art environment for living and entertaining with house-like proportions, high-end custom finishes, world-class facilities and triple parking. 
It had 350 square metres of living space with four bedrooms, three ensuites and a guest powder room.
Back in 2005 $8.25 million was spent on the 17th whole floor Gazebo apartment.
The 18th floor apartment, which is 296 square metres, sold at $7.75 million in 2006. It is currently available for lease at $4750 a week. 
Built in 1968 by Fischer's Australian Development Corporation Group, the round tower is recognised by the Australian Institute of Architects as a significant building of the 20th century.
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Syd Fischer sells $8 million Gazebo, Elizabeth Bay apartment

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GUEST OBSERVATION
“With more and more Australians finding it difficult to break into home ownership, adopting the Canadian scheme would make a difference to thousands of Australians each year,” <a href="https://www.mortgagebusiness.com.au/breaking-news/7542-xenophon-to-introduce-fhb-changes">Senator Xenaphon said</a>.
“As HomeStart Finance said this week, there’s something strange about being able to access your super fund if you are about to default on your housing loan, but you can’t access it to put a deposit on a home in the first place,” he said.
Australia is in the midst of a <a href="https://housingstressed.org.au/get-the-facts/">chronic housing affordability crisis</a>. Housing price inflation has outstripped both rents and household incomes for over a decade, leading to a residential property market considered unaffordable both historically and internationally. Yet, instead of helping to resolve the crisis, Australia’s political class is apparently determined to maintain world-beating prices with poorly but purposefully designed policies to <a href="https://www.publicresearchinstitute.org/reportfiles/Economic/KeenTheGreatResidentialHousingDebateFinal.pdf">maximise prices</a>.
The public should ask “Are the property holdings of our federal politicians negatively influencing policy and causing them to ignore evidence?” The parliamentary register of members’ interests may help to answer this question, allowing for a summary report of real estate holdings for each Australian federal politician (which may be jointly owned with their spouse).
It is evident that politicians are heavily invested in the property game, with the 226 members in both houses of parliament with an ownership stake in a total of 563 properties – an average of 2.5 properties per member, conservatively estimated at around $300 million (563 multiplied by the median dwelling price of $530,000 as of <a href="https://www.macrobusiness.com.au/wp-content/uploads/2014/08/RP-Data-Rismark-Home-Value-Index-1-August-2014-FINALMK.pdf">July 2014</a>).
The real total is probably higher considering well-off politicians are likely to purchase real estate in prime suburban and coastal areas above the median (and not all property holdings are residential such as farmland and commercial properties). Property investment is popular across the political spectrum and is a common thread binding the normally divided and bickering politicians together.
<img src="/images/2014/08/06/Table1-1.png" alt="">
 
Australia’s federal political class own an enormous property portfolio, with only 13 of the 226 members (6 per cent) not holding any real estate. In the Senate, 76 members own a total of 202 properties – 2.7 properties per Senator – estimated to be worth around $107 million.
Further, 91 per cent of all Senators own real estate (57 per cent investment/commercial property/vacant land, 41 per cent owner-occupied and 2 per cent recreational), 75 per cent have a mortgage, and the top ten control a colossal 95 properties.
Senator Xenophon maintains an impressive portfolio of eight investment properties, along with Senator Barry O’Sullivan from the National Party who owns an incredible fifty properties (see Table 2). The high concentration of landed gentry in the Senate acts as a vested interest to pass policies which inflates housing (land) prices.
<img src="/images/2014/08/06/Figure1-1.png" alt="">
<img src="/images/2014/08/06/Figure2-1.png" alt="">
The 150 members in the House of Representatives also have substantial property interests. In total, they own 361 properties – 2.41 properties per member – estimated to be worth around $191 million. 
Moreover, 95 per cent of all Representatives own real estate (54 per cent investment/commercial property/vacant land, 43 per cent owner-occupied and 3 per cent recreational), 86 per cent have a mortgage, and the top ten own an astonishing 92 properties. Double-digit property holdings are maintained by David Gillespie (NP, 18 properties), Clive Palmer (PUP, 13 properties), Natasha Griggs (CLP, 12 properties) and Karen Andrews (LIB, 10 properties) (see Table 2).
<img src="/images/2014/08/06/Table2-1.png" alt="">
The trends in the data suggest a sizeable majority of federal politicians have a vested interest in maintaining high housing prices, particularly since most have mortgages over their own investments. A fall in housing prices may cause many politicians to fall into negative equity, providing a strong incentive for politicians to enact legislation which has helped fuel a <a href="https://www.australiaboomtobust.com/">housing bubble</a>, enriching owners.
When the top twenty members of the landed gentry in federal parliament own 191 properties, it is difficult to believe that politicians will address the real causes of housing unaffordability, despite the recommendations from <a href="https://www.propertyoz.com.au/library/A%20good%20house%20is%20hard%20to%20find%20report%20JUNE%202008.pdf">government reports</a>.
If federal senators like Xenophon are <a href="https://www.worldeconomicsassociation.org/books">looking for solutions</a>, the focus should be on negative gearing, capital gains tax concessions and exemptions, liberalised SMSF and foreign property investment, first home owner grants and boosts, deregulated bank lending, land-banking, town planning, local infrastructure and development levies and the absence of a uniform land value tax.
The property-rich Senate and House of Representatives cannot be trusted to act in good faith on matters concerning real estate. Aversion to evidence-based housing policy has a long and tortured history, owing to federal politicians’ interest in maintaining the value of their collective real estate bounty, and also fearing a voter backlash following any substantive reforms that reduces prices, let alone the corrosive lobbying (legalised bribery) by the <a href="https://en.wikipedia.org/wiki/FIRE_economy">FIRE sector</a>.
Politicians regularly demonstrate flagrant ignorance of policies which lead to more affordable housing, having consistently implemented flawed reforms that actually increase prices. Negligence and indifference has become par for the political course, suggesting the direction of housing policy must be freed from the vested interests of an unrepresentative parliament.
 
<a href="https://www.australiaboomtobust.com/buy-now" target="_blank" title="Australia: Boom to Bust. Buy Now">Click Here</a> to purchase a copy of the book ‘Australia: Boom to Bust’ from your preferred book retailer. 
<a href="https://www.worldeconomicsassociation.org/books" target="_blank" title="Bubble Economics">Click Here</a> for a copy of Bubble Economics by Philip Soos and Paul Egan.
Lindsay David is a co-founder of clean technology company GreenRigCo and a former strategy &amp; business development consultant. Lindsay holds an MBA from IMD Business School.
Philip Soos is an economist and post graduate candidate at Deakin University. He has recently co-authored <a href="https://www.worldeconomicsassociation.org/files/Bubble_Economics_Egan_Soos.pdf" target="_blank">Bubble Economics: Australian Land Speculation 1830-2013 </a>with Paul D Egan.
Paul D. Egan was previously employed as a supervisor and policy officer at the state government level.
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The propertied federal politicians: Pollies and their $300 million property portfolio

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On the subject of off-markets, we buy a fair number – but we reject an awful lot more than we buy.
For the inexperienced buyer, many off-markets are not what they are cracked up to be (by the agents). A number of inexperienced buyers are lured by the romance of an off-market – you know that secret listing that only you know about? However, well down the track the inexperienced buyer can often find that the property was not really for sale.
In other words, an off-market home may look like a duck and you may be told that it is a duck, but it doesn’t always walk like a duck or quack like a duck. And if you can’t buy it, then it isn’t a duck.
How can that be? After all, the agent told you this off-market home was for sale and even took you there. That may be so, but he may be using you just to get a future listing. Or the seller may have told the agent that if he can get 50% more than market <a class="st_tag internal_tag" href="https://marketnews.com.au/tag/value/" title="Posts tagged with value" rel="tag">value</a> he may deal. In these two circumstances we consider the home is really not for sale.
To find out whether an off-market home is really for sale, you need to ask four questions.
Question number one: Does the agent have an authority to sell this home and what is written on the authority? If the agent can’t say yes then it’s not a duck. We recommend you are very careful in your dealings with that agent until they have an authority.
Question number two: Can I have access to the home? If the agent replies that the owner wants a really quiet sale and doesn’t want anybody going through the home or anyone else to know about it, that doesn’t sound like a duck. If you can’t get reasonable access for valuers, for buyer agents or for pest and building inspectors or architects, then it isn’t a duck. The off-market is not really for sale, as any reasonable seller would give you reasonable and timely access.
Question number three: Ask to see the contracts. If you want to put in a reasonable offer and the seller won’t prepare a basic contract (which takes no more than 72 hours and less than $1500 on most normal homes), then this deal is not walking like a duck and quite possibly it’s not really for sale. I wouldn’t make my final offer until I had contracts, no matter how time compelling everything seems to be.
Question number four: Is there an asking price? If the agents answers something like: “Well, she wants $3,000,000 I think. She is being very cagey. Why don’t you just put an offer in and we can go from there?”; and then if you put an offer in and the response is: “It’s not enough”, and then you ask the agent: “okay how much is enough, what does the seller want”, and no clear answer comes from the agent, heaps of excuses, but nothing in writing – guess what, it’s not a duck! It’s not really for sale, so move on – you are wasting your time for now.
Read over page for four signs to help you know if an off-market home is truly for sale
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We do not pursue off-market homes if we have made good offers and nothing concrete comes back to us. The home is not for sale now – the seller may be just bored an looking for entertainment, wanting to get a “free val” or trying to appease the agent who is pressuring him or her.
You can tell whether off-market home is for sale if:
<ol>
<li>The agent has a written authority to sell</li>
<li>You can get good access</li>
<li>There are or will soon be contracts if negotiations get going</li>
<li>It has a price</li>
</ol>
Even though off-markets may appear very attractive because they are “secret”, if you are a real buyer, it’s important that you only spend your emotional efforts on off-market homes that are really for sale. While you are looking to the left at an off-market that is not really for sale, you may be missing out on an on-market that is drifting down your right side.
So remember the four rule duck test for off-markets and quack, quack, welcome back – let the early spring season bloom for all buyers and sellers.
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maljames-vHwm28JUAa

When an "off market sale" isn't really up for sale

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David Bassanese, in his inaugural Switzer website blog, noted this week that rarely a week passes without the perennial issue of house prices being raised. 
He's long been of the view that Australian house prices are not wildly over inflated – and are not about to crash any time soon.  
<a href="https://www.switzer.com.au/the-experts/david-bassanese/house-prices-are-not-about-to-crash/" target="_blank">And recent research from the Reserve Bank of Australia only affirmed his view</a>. 
He says a major reason why house prices seem high relative to household incomes in this country was because of the large “proximity premium” that has been built into the value of most of our homes which have been allowed to luxuriate on large parcels of land very close to our major urban job centres.
"We haven’t had the huge house price bubble that many have feared," he said.
"In fact, the adjustment in house prices in recent decades to these forces has been remarkably orderly.
"Consider at the national level, for example, that house prices have broadly tracked household disposable income over much of the past decade. "Of course, there have been cyclical swings around this average – in line with cyclical swings in employment and interest rates – but little evidence of a wayward upward trend.
"Household debt levels have also flattened out, and there’s still little evidence of a broad-based upsurge in mortgage defaults.
"Indeed, more and more Australians are taking advantage of low interest rates to save more and get ahead of their mortgage repayments.
"It’s for this reason, moreover, that I dispute billionaire fund manger Kerr Neilson’s recent claim that “to believe home prices in the next 10 years will meaningfully outpace the consumer price index (CPI), as they have in the past, would require a remarkable set of circumstances.”
"All we need is household incomes continuing to rise by more than inflation – consistent modest real wage gains on the back of rising productivity – and for house prices to continue to broadly track household income."
His regular "Bassanese" column appeared in the AFR three times a week between 2003 and June this year when he became chief economist at Betashares.
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