Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Joel Robinson

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<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]

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

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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Last week I highlighted sales by price point across the capital cities. 
The data showed a shortening supply of homes selling at lower price points, in particular within some of our largest capital cities.  This week, I want to investigate what this means for those who don’t already own a home and in particular those that are on lower incomes.
The latest quarterly average weekly earnings data from the Australian Bureau of Statistics (ABS) to November 2013 shows that the average Australian earned $1,114.20 a week. Remember this is the average so plenty of people earn less than this figure which is the equivalent of almost $58,000 a year.
Compared to many other countries, Australia’s average wage is quite high however, so too is the cost of living in Australia and in particular the cost of housing as highlighted last week. With a combined capital city median house price of $580,000 and median unit price of $482,000 an average income is not going to go a long way.
But why is the capital city median price more relevant than the nationwide median which is $490,000 and $440,000 for houses and units respectively? Well it comes down to the fact that you generally need to be employed to secure a mortgage and work towards owning a home. 
The latest labour force data from the ABS shows that Australia had 11.578 million employed persons as at June 2014.  With a 6.0% unemployment rate the total size of the workforce, or to put it another way the number of people with employment or actively looking for employment, is 12.320 million.  
For myriad reasons a proportion of the population is not actively working or looking for work at any given time.  As at June 2014 the employment participation rate was 64.7% meaning that for whatever reason there are an estimated 4.349 million people over 15 years of age that are not actively working or looking for work.
The 2011 Census reported that at that time there were 21.504 million Australian’s living across the six states and NT and ACT. At that time, 65.6% of Australian’s (or 14.1 million) lived in a capital city.  A slightly higher 67.4% of persons reported as being in the workforce (working or actively looking for work) lived in a capital city.  In fact, 58.2% of people in the workforce lived in Sydney, Melbourne, Brisbane or Perth.
If we think how this impacts lower income earners and their prospects of entering into home ownership it’s not simply a case that they can move to another city where housing is more affordable. 
Unfortunately in Australia, jobs, particularly well-paying jobs, are largely located in a handful of major capital cities or on mining sites in the middle of nowhere.  The reality of moving to another capital city or to a regional area where housing is cheaper is not a realistic prospect for many low income earners.
There are still opportunities to purchase lower priced homes across the capital cities however, these opportunities are becoming fewer. If you look at where these lower priced sales are occurring, for houses they are typically located on the outskirts of the city.  Houses on the outskirts of cities, particularly the major capital cities, are inherently cheaper because they are often less desirable than those in well-established suburbs closer to the city centre (although not always). Although housing is cheaper in these areas the cost of doing day-to-day tasks is more expensive. 
If you work in the city, the cost of public transport is higher and if you choose to drive you lose hours in traffic, not to mention the additional cost of fuel and road tolls. Local amenities such as shops, schools and health care tend to not be as abundant in outer suburbs as they are closer to the city centre so it will take residents of these areas longer to access these amenities too. 
Although housing may be more affordable within the outer suburbs, it won’t necessarily make it easier for some lower income earners to afford a mortgage when they factor in all the additional costs of living in that location.
Lower priced housing stock is also available within the unit market however, this too has its shortcomings.  There are becoming fewer lower priced units available in areas closer to city centres.  Unit prices are still generally much lower than that of houses although, most of the newer stock comes with a relatively high price tag these days.  Of course units are also much smaller than a house and you tend to get less (in terms of area) for your money.  While a unit may be practical when your single, a couple or have young children, they become less practical if/when the situation changes and the size of the family grows.  Units also don’t offer the same level of freedom as a house with limitations generally in place with regard to what you can and can’t do both within and to your unit.  Although when you own a home you have to pay for upkeep, in a unit complex you have to contribute strata levies each quarter the cost of which can at times be exorbitant.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
So what realistic option does the person on a lower income have? 
Of course housing should be cheaper on the outskirts of the city (and it is) but even still a lot of lower income earners are not in a position to purchase.  This is partly because although housing is cheaper a mortgage is still going to swallow up a sizeable chunk of their income not to mention the other costs associated with living on the outskirts of the city. 
The commonly recommended solution is to remove urban growth boundaries and cut fees and charges on new developments which would theoretically increase supply and therefore bring down the cost of housing.  But I wonder by how much would it really reduce the cost and would it be significant enough to allow lower income earners to purchase.
I think possibly not and here’s why.
It’s not simply a case that we can fix housing affordability by building more and more homes, if that was the case, lower income earners could just move to a more affordable city.  The issue is more to do with employment and specifically where the jobs are located. Even on the outskirts of the capital cities the cost of public transport and fuel will still eat up a sizeable chunk of lower income earners salaries.
If residents on the outskirts still have to travel to get to their jobs (which often they will) they will often encounter a number of hurdles.  Firstly public transport is often woefully insufficient in these areas.  Anyone who has travelled overseas will know that public transport in our larger capital cities is not of a particularly high standard. The other thing with public transport is that it caters much better to those people living closer to the city centre and transport upgrades often benefit inner city dwellers much more than it benefits those on the outskirts of the city, the ones that need it the most. 
Secondly, the road network also tends to be insufficient on the outskirts of the cities unable to cope with the growing population.  This is due to the fact that governments tend to put the onus of building the roads on the developers and will often not provide the major roads to a new housing area until such time as it is absolutely critical.  Developing the roads before the housing would make these areas much more attractive and accessible.
If we can’t provide sufficient public transport and roads to the housing areas on the outskirts of the city, the greatest assistance we can provide when developing these areas is to accompany this residential development with local jobs for these workers. Travelling to work does not become such an issue for low income earners on the outskirts of a capital city if they can find employment locally.  Not to mention it is imperative to bring amenities such as shops, schools and health care closer by. 
If this were to occur, public transport and investment in new major roads becomes not as vital as it is currently when there are so few employment opportunities locally.
If lower income earners aren’t lumped with the additional burdens of significant public transport, fuel and road toll costs to get to their employment then the burden of a mortgage whilst still difficult does not become a virtual impossibility.
So yes, affordable housing is becoming harder to find in our capital cities and yes, increasing supply of housing will help to improve the opportunities to purchase homes at a lower price.
However, local employment drivers and amenities I believe are just as important, especially seeing as time and time again we have seen insufficient investment in public transport and road infrastructure on the outskirts of the cities. Not to mention that the cost of utilising public transport is extremely restrictive. 
Alternatively we should forget pie in the sky proposals such as fast trains between Brisbane and Melbourne and improve the rail network locally.  Each of Sydney, Melbourne and Brisbane could use a more expansive rail networks which includes more stations, better linkages to suburbs on the outskirts and faster connections between nearby cities. 
Investing in improving links and train speeds to the Central Coast, Newcastle, Wollongong, the Blue Mountains and Bathurst from Sydney, to Geelong, Ballarat and Bendigo from Melbourne and to the Gold and Sunshine Coasts and Toowoomba from Brisbane would no doubt be a much more worthwhile investment.
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ckusher-ujnxiKuFQs

Lower income earners' hopes of owning a home have faded

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When conducting due diligence into property, most people think getting the contract checked by their solicitor is enough to cover their legal backsides, but the reality can be painful.
I recently inspected a property in Melbourne’s eastern suburbs and thought it was a good piece of real estate that needed further investigation.
My main concern was that the neighbouring property was on a substantial parcel of land with an old, rundown house on it. When I took a closer look I noticed the back fence that led to a laneway had completely fallen over and there was no sign of it being fixed.
Alarm bells started to ring as I thought this property could be a potential development site.
I asked my solicitor to review the section 32 to determine if there were any planning permits in place that may affect the property and was informed that nothing was disclosed in the paperwork.
In most cases if there is no disclosure in the section 32 then you can rest easy. However, a quick five-minute check on the local council website was all I needed to discover that there was, in fact, a permit in place that had been issued last year and this had not been fully disclosed.  If the vendor is aware of a planning permit that will have a material impact on the property, they have a legal obligation to disclose this information.
The local council was able to email me the full plans of the neighbouring development within a matter of minutes and I was able to determine that this new development will have a detrimental impact on the property I was looking at.
The discovery of this information does not necessarily mean the property should not be purchased, however it can – and in this case did – have a dramatic impact on the value of the property. This information is vital, as it will influence how much you should be prepared to pay for the property.
So, what happens if you sign a contract to buy a property and then discover some mandatory information was not fully disclosed?
If you discover the omission prior to settlement then you are standing on reasonably solid legal ground. If it is determined that the non-disclosure will have a material impact on the property you can notify your solicitor and instruct them to rescind the contract on the grounds that the section 32 did not make all mandatory disclosures. You are then in a position to re-negotiate the contract taking into account the new information or walk away from the property completely and get your deposit back.
However, if you settle on the property and then realise there is a non-disclosure issue, the solution will not be so straightforward. Given the property has already settled, the onus comes back onto you to enforce your legal rights. This means although you do have a legal recourse to sue the vendor, the cost of taking this action could well exceed the financial benefit. Also, working your way through the legal system is very time consuming and not something in which you really want to get bogged down.
For most people, buying property is the biggest financial commitment of their lives, so it pays to take the time to do that extra bit of research. As with most things in life, preventing a problem is much better than trying to find the cure.
MARK ARMSTRONG is a director of <a href="https://ratemyagent.com.au/" target="_blank">ratemyagent.com.au</a>, Australia’s number one real estate agent rating website.
This article was originally published on Property Observer in April 2013.
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marmstrong-sd3emVLPPb

Thorough research is critical to dodging property purchase problems

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Dear Margaret,
I have a mortgage of $420,000 and my home is worth $750,000.
Is my equity $330,000 and would the bank theoretically allow me to borrow this amount and buy an investment property to rent?
Does your wage dictate the amount the bank will lend for the investment loan, or does it just lend you the $330,000 if you indicate that the rent would cover the loan?
Thanks, 
PC
Margaret's answer on the next page. Please click below. 
<hr class="system-pagebreak">
Hi PC, 
The bank allows you to borrow up to 80% of the entire value of your property without lender’s mortgage insurance (LMI) applying, or up to 95% (depending upon the lender) of the value with LMI. 
LMI is an insurance policy to protect the bank in the event that you default and a forced sale does not provide enough proceeds to cover your outstanding debt. While it’s a policy for the bank, you pay the premium which, depending on the loan amount and how close to 95% you get, can run to thousands and thousands of dollars.
In your case, your total property is worth $750,000 and so, at 80% of that total value, you can borrow $600,000 all up. As you only owe $420,000, this means that you still have $180,000 of potentially available borrowings. Now remember that this potentially available borrowing is on the existing property – once you find a property to buy and add it to the mix, you can borrow up to 80% against that property, too! So that means that whatever you have left as potential available borrowings on your current home will cover the 20% deposit. 
Given that you have $180,000, technically it’s enough to cover the 20% deposit on $900,000 of additional property. As you will have stamp duties and costs in there too, you can probably expect to easily be able to secure a further $800,000 of property with the current equity you have in your own home, and cover all costs too.
I say ‘potentially available borrowing’ as equity is not the only criteria for borrowing. 
You also need to be able to demonstrate the ability to service a debt. Your income, plus any rent from the property you want to buy, will be considered and a formula used to determine if you can afford to meet your daily living expenses plus the cost of your total borrowings.  
Most lender’s will accept the total amount of PAYG income you earn, self-employed income, as long as you can prove it over two years, and 80% of the actual or projected rent return. Some lenders will consider things like family allowance payments and child support, some investment income and other income – each lender is different.  
In considering your total liabilities, banks will take into account current payments on all loans and credit cards, commitment to child support if any, and the future repayments on the new loan being applied for. Usually, they will add a margin to the new loan repayment just to be sure you can Afford any unforeseen interest rate rises.
Regards,
Margaret
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

How much can I borrow against my home to buy an investment property? Ask Margaret

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Property managers are not always seen as important as they are when it comes to your investment properties.
While some recognise the strength of a savvy PM, others will settle for the cheapest option.
There are certain skills that make truly excellent property managers stand out. Here are five of these qualities and skills that Property Observer considers non-negotiable in the individual. However, it’s worth bearing in mind that often multiple property managers will be assisting with your property and each company has a different set up. Be aware of who is truly looking out for your interest in the first place.
Picking a property manager is very important (you can read <a href="/news/how-to-choose-the-best-property-manager">our how to on selecting the best one here</a>).
Here are the four skills and qualities that we suggest you look for:
<ol>
<li>
Negotiation skills The ability to negotiate is second to none for a property manager. Your desires are not always going to line up with those of your tenant, and they are going to need to encourage the tenant to compromise and work with them on your behalf. If the tenant wants you to replace an item, and you’re suggesting a repair, then a good negotiator can seamlessly work this one through with a tenant when the circumstances are reasonable. Negotiators will also give you plenty of assistance to solve problems before they hit tribunal, so you’ll find yourself saving time and money. How to test this: Ask the property manager about a situation when they have had to get a tenant to compromise, or talk them round. They should be able to describe a successful outcome and explain how they did it. 
</li>
<li>
Friendly/Personable Whether it’s managing a rent increase, or letting a tenant know they are in arrears, a personable property manager has more of a chance of keeping everyone onside. While keeping you, as the landlord, happy is one thing, tenants are also human and it’s important that your property manager is friendly enough that they are respected, but firm enough that you get what you want. Property managers who truly care about their tenants and landlords as well help in the long run – they will ensure the tenant is kept in a well-maintained property, which will assist you from larger repair bills and potential future lawsuits. They should be friendly, but confident, and able to speak plainly. You should get a sense of how personable the property manager is in the way they speak to you, and treat you, and the manner in which they discuss their tenants. Respectful and courteous is key here. 
</li>
<li>
Thorough The best property managers are thorough. Often this has much to do with the paperwork and systems set up for the job to be done – checklists, forms that must be filled out and processes that they go through can ensure that everything is ticked off seamlessly. Rushed and careless people, as in any business, are likely to cut corners or miss important items they should have checked. For instance, if they don’t check every aspect of the property before returning the bond then you’ll find yourself in strife. Ask about the processes they have in place, and how they ensure that they don’t miss anything they need to. If you’re still not convinced, get them to describe to you how they undertake a part of the process – such as an annual inspection or an end of tenancy inspection. 
</li>
<li>
Knowledge of legislation This can be a little trickier to test, but it’s crucial your property manager knows the rules and regulations surrounding their profession. You don’t want to find yourself or your property manager fined for charging the incorrect bond, or giving incorrect notice periods. You also want to ensure that the finer points of the legislation they’re up to date with. Read through the basic legislation yourself and ask them some simple questions that have straightforward answers. For instance, what is the process for if I find a tenant has subletted the property without my knowledge? Or, when a tenant is in arrears, what steps do we take?
</li>
</ol>
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jduke-EHk3XBmHkn

The four non-negotiable qualities you want from a property manager

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A preliminary weighted average clearance rate of 68.7% was recorded this week across capital cities compared to 68.9% last week and 67.7% this time last year.
<img class="aligncenter size-large wp-image-3478" src="https://blog.rpdata.com/wp-content/uploads/2014/07/20140713-Capital-city-580x428.jpg" alt="RP Data national auction comment" width="580" height="428">
Sydney provided the highest clearance rate and when combined with the higher volumes in Melbourne resulted in another solid week.
<img class="aligncenter size-large wp-image-3479" src="https://blog.rpdata.com/wp-content/uploads/2014/07/20140713-Sydney-580x386.jpg" alt="RP Data national auction comment - Sydney" width="580" height="386">
This week a preliminary clearance rate of 76.4% was recorded in Sydney compared to 72.4% last week. Sellers with auctions scheduled in spring will welcome the strong result this week.
In Melbourne there was a preliminary clearance rate of 67% recorded compared to 71.4% last week. The market has built a solid basis for spring and continues to offer buyers good opportunity.
<img class="aligncenter size-large wp-image-3480" src="https://blog.rpdata.com/wp-content/uploads/2014/07/20140713-Melbourne-580x377.jpg" alt="RP Data national auction comment - Melbourne" width="580" height="377">
In Brisbane a preliminary clearance rate of 47% was recorded compared to 59.5% last week. Adelaide recorded a clearance rate of 62.3% compared to 64.6% last week.
In Canberra a clearance rate of 64.3% was recorded and in Perth there was a clearance rate of 75%.
In Tasmania one auction resulted in sales from the 4 held.
<img class="aligncenter size-large wp-image-3481" src="https://blog.rpdata.com/wp-content/uploads/2014/07/20140713-Brisbane-580x380.jpg" alt="RP Data national auction comment - Brisbane" width="580" height="380"> <a href="https://blog.rpdata.com/wp-content/uploads/2014/07/20140713-Adelaide.jpg" rel="wp-prettyPhoto[g3477]"><img class="aligncenter size-large wp-image-3482" src="https://blog.rpdata.com/wp-content/uploads/2014/07/20140713-Adelaide-580x380.jpg" alt="RP Data national auction comment - Adelaide" width="580" height="380"></a>
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rlarocca-zWhvjay44N

More auctions and more sales in capital cities than a year ago: RP Data's national weekend auction wrap

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The takeover of department store David Jones looks set to proceed, with the $2.2 billion takeover bid from Woolworths South Africa given the green light from the company’s shareholders yesterday.
<a href="https://www.businessspectator.com.au/news/2014/7/14/dataroom/shareholders-back-djs-22bn-takeover" target="_blank">According to Business Spectator</a>, 89.6% of David Jones shareholders voted in favour of the deal, with 10.4% registering their vote against. David Jones previously said 96.48% of proxy votes were cast in support of the takeover.
The results from today’s vote mean Woolworths has satisfied the two hurdles needed for the deal to go ahead: majority support from the David Jones shareholders present and voting, and at least 75% of the total number of votes by David Jones shareholders present and voting either in person or by proxy.
Yesterday’s vote had been delayed after it was revealed retail giant Solomon Lew had <a href="https://www.smartcompany.com.au/growth/economy/42444-stakes-increased-in-retail-battle-for-djs-as-solomon-lew-grabs-shares-disclosure-breach-to-cost-newcrest-1-2m-midday-roundup" target="_blank">bought up just short of 10% of David Jones’ shares</a>.
The approval of Woolworths’ bid for David Jones by shareholders also paves the way for <a href="https://www.smartcompany.com.au/growth/economy/42526-greens-won-t-support-fuel-tax-hike-woolworths-wants-lew-s-share-of-country-road-midday-roundup" target="_blank">Woolworths to acquire Lew’s 12% share in fashion brand Country Road</a>, of which it already owns 88%.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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David Jones shareholders support Woolworths takeover bid

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The mining boom, and the resulting increase in fly-in fly-out (FIFO) workers, has led to housing shortages across Australia. It’s a problem an innovative new website hopes to solve – by turning spare rooms into cash.
Founded by brothers Daniel and Chris Del Borrello, <a href="https://www.fifohousemate.com.au/" target="_blank">fifohousemate</a> is a new website that aims to connect FIFO workers with spare rooms for hire.
Meanwhile, because FIFO workers are looking for places to stay away from their mining or job sites, fifohousemate is open for property listings across Australia.
Co-founder and director Daniel Del Borrello told StartupSmart the service was inspired by his brother’s experiences in trying to rent out a spare room.
“My brother was looking for a housemate – he has a small two-by-one apartment. It’s a small space, and he doesn’t want to have someone living there permanently and cramping his style,” Del Borrello says.
“He came up with the idea of splitting the rent by having a FIFO worker rent a room. But there’s nowhere specifically where you can find a FIFO worker, so he came to me with the idea for the site.”
Del Borrello says fifohousemate can help alleviate the housing shortage by unlocking new properties that can be rented out.
“It connects rentals with FIFO workers, effectively creating new rooms for them to rent,” he says.
“So, for example, a young family with a spare room is probably not going to look for a full-time housemate. But they might be open to having someone use the room one week out of four.”
While the website has been online for just three weeks, Del Borrello says it has already attracted 10,000 visitors and 350 listings.
Around 80% of its visitors currently come from the traditional mining state of WA, although interest is growing rapidly in the other states.
Victoria has already overtaken Queensland as the state with the second-most visitors. Del Borrello predicts the number of listings will only increase as awareness grows across Australia.
This article first appeared on <a href="https://www.startupsmart.com.au">StartupSmart</a>.
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The new website turning spare bedrooms into FIFO rental gold

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The Reserve Bank of Australia’s meeting minutes for the July monetary policy meeting that saw the interest rate held at 2.5% has made particular note of the increase in dwelling investment.
Pointing to the noticeable increase in the March quarter, and mentioning that over the six months to March investment levels are running close to the fastest pace seen in a decade, it doesn’t appear that the RBA is as yet concerned.
"Dwelling investment increased noticeably in the March quarter and, over the six months to March, was running at close to the fastest pace seen in around a decade," the minutes explained.
“Residential building approvals had declined somewhat in recent months, but they remained at relatively high levels and both work yet to be done and loan approvals for new dwellings pointed to further strong growth in dwelling investment in coming quarters.
“At the same time, there had been signs of a tempering in conditions in the established housing market.
Members were said to have particularly observed that looking past the monthly volatility, housing price inflation was recorded as slowing in recent months, auction clearance rates had fallen from their last year highs and loan approvals were little changed over the past six months.
Overall, they noted that GDP growth was above trend in the March quarter, and resource exports were expected to expand in coming quarters, even if not at such a rapid pace as previously.
A gradual improvement in the non-resource sector, and growth in residential construction was a prospect, “despite some easing of conditions in the established housing market over recent months”.
The exchange rate was also noted as high when compared to historical rates, and therefore offering less assistance in achieving economic growth than might be otherwise expected.
It appears the factors they will are now keeping under close watch is the extent to which the low interest rates offset the decline in mining investment that is anticipated, and the effect of planned fiscal consolidation.
A period of interest rate stability was noted as the most prudent course given current indications.
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Dwelling investment close to fastest pace seen in a decade: RBA meeting minutes

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GUEST OBSERVATION
At the current frequency of financial system inquiries (Campbell 1982, Wallis 1997, Murray 2014) there will not be another until 2030. That makes this week’s interim report from David Murray all the more critical.
By far the biggest problem with Australia’s financial system is the retirement savings system. Its fundamentally flawed structure is damaging the welfare of millions of Australian households.
There are three closely related problems. First, Australia’s retirement system forces households to make complex decisions that most households are not well placed to make.
Households in Australia have more freedom in managing their retirement savings than in any other developed country. That freedom would be terrific if it was matched by a world-leading level of financial literacy, but it is not. So the putative freedom is really more a burden to the majority of households who cannot navigate a complicated system without help from advisers.
The second problem is the poor quality of financial advice provided to households. The certification required to be employed as a financial adviser is an RG146. A person of average ability takes a few weeks to meet the RG146 requirements. That is, with a few weeks' training almost anyone can be employed in a financial advisory group and advise households on their lifetime savings.
The knowledge hurdle for financial adviser certification is not low because the requisite knowledge is small. It is low because of political pressure not to make it too high. In the 1980s and 1990s the life insurance sales sector morphed into the financial advice sector. Financial advice deals with much more complicated questions than insurance but the sector was able to resist regulation that would force its members to be properly trained.
Lobbyists have won
To this day the financial advisory firms have successfully resisted attempts to raise the bar on the expertise required by their employees to provide financial advice. Because most financial advisers are so poorly trained they cannot provide quality advice solutions to the problems of their clients. Most financial advisory firms simply have a set of cookie-cutter solutions for clients and the financial adviser’s job is to decide which cookie cutter goes with which client.
The third problem is by the far the most important. Most financial advisers have a substantial conflict of interest – the interests of their employer are at odds with the interests of their clients.
To make the point imagine the following situation. Your doctor is an employee of the Acme Drug Company. Acme has a suite of drugs covering many but not all medical conditions. For some conditions the Acme drug is the best, but for many conditions there are better drugs.
You pay for medical advice by the hour, but your doctor is paid by Acme. Your doctor can prescribe whichever drug she chooses, but her compensation depends on the volume of Acme drugs she prescribes, not other drugs.
Even though the medical profession has a well-deserved reputation for putting patients first, drug companies are not allowed to own medical practices. It is obvious that vertical integration in the medical system, where drug companies employed doctors, would corrupt the system. Sadly, this is exactly the situation we have in the retirement savings sector in Australia.
Conflicts remain
Over 80% of financial advisers work for firms that are either directly owned by, or very closely affiliated with, firms that provide a suite of financial management products. When a household goes to a financial advisory firm they will most likely be talking to a financial adviser who works for a firm that is vertically integrated with a provider of financial products. The financial adviser may or may not be free to select whichever financial products he chooses for the client’s solution, but he will only be compensated for recommending his own product provider (investment management firm).
This obvious conflict of interest is leading to dreadful outcomes in Australia. Households are being put into retail funds when they would be better off in industry funds. They are being put into very high-fee investment products when low-fee products would deliver the same expected returns before fees. They are being encouraged to borrow money to invest, to be underdiversified, to make the wrong decisions all around.
The financial system inquiry should address each of these three problems. First, it should recommend the federal government implement a long-term program of public education about fundamental ideas in retirement savings: save while you are young, don’t put all your eggs in one basket, and get a second opinion from an adviser who is certified as independent.
Second, it should insist on a proper level of training for all financial advisers.
Third, it should insist that financial advisers cannot be affiliated with financial product providers in any way – using the medical sector as its template.
The missing institution
There is another retirement savings problem that is of first order importance but unrelated to financial advice. Elderly households need a way of releasing the equity in their homes without the uncertainty that they will lose control of their residence.
The largest form of saving that most Australian households undertake over their lifetimes is that they buy homes that appreciate in value. The equity that Australian households have in residential real estate (value minus debt) is about A$2.8 trillion. That is nearly twice the A$1.6 trillion that Australian households have in retirement savings. Yet, there is no direct connection between these great pools of value.
There is a missing institution in the Australian financial system. What is needed is a financial organisation that will allow Australian households to borrow against their homes without any fear of losing control of the home and at an interest rate close to government treasury rates.
There are reverse mortgage products in the market. But those products are too expensive and poorly structured for most households. Releasing the equity in the homes of retirees is essential for solving the fiscal problems of the ageing of the Australian population.
Sam Wylie is principal fellow at <a href="https://mbs.edu/Pages/Default.aspx" target="_blank" style="line-height: 1.3em;">Melbourne Business School</a><img src="https://counter.theconversation.edu.au/content/28725/count.gif" alt="The Conversation" width="1" height="1" style="font-size: 12px; line-height: 1.3em;">.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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Three financial system flaws David Murray can’t ignore

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A portion of property investing is often related to creating equity in a property – through developments, subdivisions and even renovations.
It's unsurprising, especially with shows such as <a href="/expert-insights/building/want-to-join-the-block-2015-heres-how-to-apply">The Block</a> and <a href="/expert-insights/building/underdogs-adam-and-lisa-win-house-rules-season-two">House Rules</a>, that renovating is a much discussed aspect of real estate for both home owners looking to improve their properties, and investors looking for bang for their buck.
Our Tuesday Q&amp;A is with Renovating for Profit’s Cherie Barber,  where we ask about essential renovation skills, the experts you can’t do without and whether you can really make money from a quick cosmetic fix up. Which skill is more important for renovating – a good eye for design or good management skills? I’d say good management skills are essential, whereas a good eye for design is definitely an asset, but you can always call on professionals to help out with that.
In the renovating game, it’s those with exceptional time management and organisational skills, who are great negotiators and communicators, and who know how to accurately set a budget and stick to it… they’re the ones most likely to succeed and make money.
A creative eye, without all those skills, might get you a beautifully renovated property, but it could send you broke! If you could choose just one professional as your “go to” for a renovation project, who would they be? I rely heavily on all my tradies, so choosing just one is difficult, but I’d say a really skilled carpenter is your biggest asset. They’re a jack of all trades who can turn their hand to most things, whether it’s putting up a stud wall, putting in a kitchen, making built-in seating for a courtyard or just smart shelving.
You really need a second in command on a project that you can depend on, so a carpenter would be my “go to” guy if I had to choose just one. Do you think there are any difficulties for women renovating? To be honest, it took me a couple of renovations to gain my confidence working as the only female on a building site – and not just the only female, but the one in charge! Not all blokes are comfortable with that, especially in a male-dominated industry like the building trade.
I’ve found the key is to be calm, assertive and very clear and direct in my communication style.
Never get emotional. You’ll minimise misunderstandings and disputes by having everything in writing, so if there’s a disagreement over an aspect of work or money, you have your written contract and detailed scope of works to fall back on. “Firm, but fair” is an approach that tradies understand and respect, whether you’re male or female. 
Friendliness goes an awfully long way on a building site. No one likes a dragon lady! Can buyers really make money with a cheap cosmetic renovation?  (Must read: <a href="/expert-insights/what-is-a-cosmetic-renovation-investment-terms-explained">What is a cosmetic renovation?</a>) Absolutely - loads of my students have done it! But you have to target the right properties.
If you’re looking for a two-bedroom apartment to renovate in a certain suburb, and you find that renovated and unrenovated two-bedders are pretty much selling for the same price, then it’s unlikely you’ll make money on the renovation.
You need to find decent “pricing disparity” – suburbs where buyers are willing to pay a premium for smartly renovated properties. That’s why careful research is so critical.
Buy the right property, in the right suburb, at the right price, and yes, you can definitely make money on a cosmetic renovation.   
During your shows you often point out that there are many ugly properties across, what are your most hated design features in a property? There’s a few thing buyers really don’t like. “Popcorn ceilings” are definitely one. They’re the spray-on ceilings that were especially popular throughout the 60s and 70s, and often contain asbestos. Visually they’re ugly and people don’t like the idea of asbestos in their home. Skinny little skirting boards and architraves always look cheap.
I hate bad layouts that don’t make the most of the available floor space, and unruly landscaping that was never properly thought out in the first place. And anything terracotta coloured – whether it’s tiled roofs, pavers or brick houses! Speaking of brick (especially those terracotta and blonde ones), rendering them is absolutely compulsory in my book. Are there any people who should not renovate a property? This probably relates back to question one, and the importance of excellent organisational, budgeting and negotiation skills. Those three cornerstones are just such a big advantage in the renovating game.
If you don’t have a single one of them, well, then you’re really going to struggle. Renovating isn’t an automatic road to riches. It takes time, focus, dedication and a lot of hard work to be successful.
Unless you’re willing to put in the hard yards to educate yourself about what’s required and then get out there and do it, you might be better off sitting at home. Trying to “wing it” is simply a recipe for disaster.
Cherie Barber is a public speaker, TV renovator and the owner of Renovating For Profit, a company that teaches everyday people how to buy and renovate properties for a profit. Cherie Barber’s <a href="https://www.renovatingforprofit.com.au/content/renovating-profit-home-study-cherie-barber-live-workshop-inclusions" target="_blank">next three-day Sydney workshop is August 21</a>.
YOU MIGHT ALSO WANT TO READ:
<a href="/expert-insights/building/three-reasons-you-should-renovate-for-profit">Three reasons you should renovate for profit: Patrick Bright</a>
<a href="/expert-insights/investing/to-renovate-or-not-to-renovate-that-is-the-question">To renovate or not to renovate? That is the question: Jo Chivers</a>
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