High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

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For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

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<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

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The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

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For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

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The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

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Joel Robinson

Buying with confidence: What NSW apartment buyers should check beyond the defect headlines

Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

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Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

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The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

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According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

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Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

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Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

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Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

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.

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.

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<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.

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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.

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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

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?

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

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With misleading <a href="https://www.propertyobserver.com.au/western-australia/we-buy-houses-claims-from-rent-to-buy-promoters-prompts-fine/2014030568189" target="_blank">rent to buy schemes</a> gaining momentum and property spruikers increasingly<a href="https://www.propertyobserver.com.au/queensland/cancer-patients-and-pensioners-found-to-be-victims-of-gold-coast-financial-scam/2014021267745" target="_blank"> targeting the elderly and the ill</a>, the dodgy practices of a few are threatening to tarnish the reputation of the property industry. Properties, once considered safe and reliable investments, are increasingly being used by unethical operators to victimise those looking for a stable source of income.
<img src="/images/stories/2014/03/07/jc-profile.jpg" alt="jc-profile" width="125" height="150" style="float: right;">A predator in the property sphere may cost someone their retirement savings, their biggest asset or their home. Jonathan Chancellor, editor at large of Property Observer, says there are a number of ways to spot an investment trap.
"Dodgy operators try to get you into something without allowing you a second opinion from your accountant or solicitor, and sometimes not even your partner or spouse, given the intensity of their “act now” imperative.
"But no deal being pushed by a spruiker is going to simply disappear overnight. If it did, they would be out of business.
"So you are entitled to sleep on it - without signing anything - cooling off promise notwithstanding.
"And then overnight, take the time to just do some simple research. The internet makes it easy. Research the sales person, their team and their potentially dodgy practices in online chat rooms, which have plenty of feedback on the worst of cases. Then research the property, its neighbourhood and the promised returns.
"If it still looks good, then getting an independent legal and financial review of any transaction could save you your hard earn income in the long term.
<blockquote>
"Remember, property investment falls largely outside the jurisdiction of major regulators, so you are on your own.
</blockquote>
"You ought to sign only once you are completely comfortable with the clarity of the offering. Quite simply, if you lack investment knowledge - and who doesn't - then you need an independent advisor. They could be your savvy estate agent or mortgage broker acting as an honorary sounding board, or a non-commissioned professional who preferably doesn't charge over the top, but who knows their stuff."
 
While strict regulations exist for financial advisors and real estate agents, property advisors, or “spruikers” operate in much more nebulous territory. They could be a regular on the investment seminar circuit, the face of an investment scheme or your own accountant. With such unclear waters, property investors are left largely to take care of themselves. Property Observer approached some leading advocates of ethical operations in property field to ask them about how to spot a dodgy operator.
 
<img src="/images/stories/2014/03/07/ben-kingsley-profile-2.jpg" alt="ben-kingsley-profile-2" width="113" height="150" style="float: right;">Ben Kingsley, chair of the <a href="https://www.pipa.asn.au/" target="_blank">Property Investment Professionals of Australia</a> (PIPA) and chief executive of <a href="https://empowerwealth.com.au/" target="_blank">Empower Wealth Advisory</a>
Unfortunately our property investment industry remains unregulated. Given that property is such a high value transaction, which can attract large commissions and incentivised sales campaigns from builders and developers, it naturally attracts some operators who are more interested in their own self-gain than the investment returns of their clients.
For me the two main warning signs of a dodgy operator are:
<ol>
<li>
A reluctance, or even worse, a total refusal to talk about or disclose how much they are being paid for recommending a property.
</li>
<li>
A hard sell in terms of what property they are pushing. Usually the classic line about acting now, as ‘this opportunity won’t last’.
</li>
</ol>
In any field of work there is always a chance that a ‘bad egg’ or two will find their way into a professional environment, even if their profession is licensed or regulated in some way.
Having said that, PIPA is steadfast in its belief that regulation is necessary in order to limit these kinds of operators.
When it comes to steering clear of dodgy operators, PIPA’s advice is to be very cautious, do your due diligence, ask plenty of questions and don’t be rushed into anything.
Article continues on next page. Please click below.
                     
<hr class="system-pagebreak">
<img src="/images/stories/2014/03/07/jacque-parker-porfile-3.png" alt="jacque-parker-porfile-3" width="113" height="150" style="float: right;">
Jacque Parker, director of <a href="https://housesearchaustralia.com.au/" target="_blank">House Search Australia,</a> president of the <a href="https://rebaa.com.au/" target="_blank">Real Estate Buyer's Agents Association of Australia</a> (REBAA)
When seeking a property advisor, including a buyer's agent:
<ol>
<li>Ensure they are appropriately licensed with their relevant state or territory licensing body, for example, the Office of Fair Trading.  This entails a simple check online via the Department of Fair Trading and also provides consumers with information on how long the operator has been in business for.</li>
<li>Ensure they are members of a professional industry body, like their state Real Estate Institute or preferably REBAA, for buyer's agents.</li>
<li>Confirm they are appropriately insured with personal indemnity cover, as this affords consumer protection.</li>
<li>An important question to ask a buyer’s agent is whether they are truly “exclusive” or “independent”. If they accept sales commission from vendors or developers then they cannot be classified as “independent” as they are acting in the interests of the seller.</li>
<li>Ask for references of recent clients and speak to them if possible. If a buyer’s agent can’t provide you with recent buyers, then there’s something wrong.</li>
</ol>
        
<img src="/images/stories/2014/03/07/jenman-profile.jpg" alt="jenman-profile" width="113" height="150" style="float: right;">Neil Jenman, property commentator, consumer advocate and <a href="https://www.jenman.com.au/index.php" target="_blank">investigative writer</a>
Honest people, straight people have always got something wrong with them. They make a mistakes, they muck up. Dodgy spruikers have nothing wrong with them. Their websites are perfect, their pitches are perfect – there won’t be anything wrong with them whatsoever, because they’ve gone to great lengths to whitewash their image completely.
They’ll quote statistics to scare people, most of which are made up. They’ll say things like “most people are going to be poor in their old age”.
Another one is the claim that they’ve “carefully researched properties for prime growth areas” – this is just doublespeak for “the developer is telling me to get people to invest here”.
The way that apartment buildings and developments used to be sold was with a full page ad in the Sunday newspapers. Now, there aren’t any ads in the paper, because property spruikers are getting commissions ranging up to $50,000 per property.
The developer will go to an accountant and say, “Listen, all your clients need to invest in something, they need tax deductions” – which means a loss. “If you get them to invest in one of our projects, we’ll give you $50,000 per property.”
They’ll often call themselves a club – this is a big warning sign. And they might not say it, but they’ll give the impression that they’re doing this out of love and helping the community. The word “club” is one of the worst things. There are right now about 15 or 20 dodgy spruiking outfits that refer to themselves as “clubs”. It’s not just in the property industry either; it’s also spread to the finance industry.
There is so much money to be made, because people are afraid of being poor; especially the elderly. I went through a copy of the Financial Review seven years back and cut out all the ads where people were offering high interest rates. There were about 11 of them, all targeting older people, with photos of elderly people walking on the beach, that sort of thing. I waited five years to see what had happened to those companies – every single one had gone into receivership.
[Of those who aren’t familiar with property investing and want to protect themselves] They should go to an ordinary real estate agent in an ordinary suburb. And buy an ordinary house, in ordinary times.
Years ago – when you wanted to buy a property, you went to the local real estate agent. Now, real estate agents are like angels compared to some of these property spruikers.
<a href="mailto:jrichardson@propertyobserver.com.au" target="_blank">jrichardson@propertyobserver.com.au</a>
                            
</body></html>

jrichardson-uRX5hFdKfN

Exclusive: How to spot a dodgy operator - tips from the experts 

<html><body>
The grand ‘success story’ is a marketing technique and also a caricature that is instantly recognizable in the real estate world. Whether it is a rags to riches story, the underdog winning against the odds, or just someone doing well with an investment – they are stories that everyone loves to tell and loves to read.
However, as is often asked of fairy tales, what happens when the curtain comes down and the happy ending has been reached? What happens after the story ends up in the waste paper bin?
A typical story emerged with two rent to buy practitioners in Western Australia. They were incredibly young when they started out. Siblings Patricia Mirawati Susilo and Bryan Artawijaya Susilo, the brother of the sibling pair being just 17 years old and still at school, attended a seminar and they became, like many others, hooked on property and the dream of making money through real estate.
Last week, Property Observer reported that they <a href="https://decisions.justice.wa.gov.au/supreme/supdcsn.nsf/judgment.xsp?documentId=0A4F904B45F9C89548257C8C001BBF99&amp;action=openDocument" target="_blank">had been fined for misleading and deceptive conduct by the Supreme Court of Western Australia</a>.  The pair were given penalties and ordered to pay costs to a total of more than $30,000.
Bryan has just turned 20 – his birthday was last month. But how did they get from being wide-eyed youths at a property wealth building seminar, to slightly stunned adults at the court house?
The court documents revealed that the pair had learnt about rent to buy from a course in Sydney that cost them $20,000 for four days, after an initial free seminar. The court records did not note who the provider of the course or the seminar was. The siblings set up Buy Houses Easy and began a small rent to buy business in Western Australia. They also have the website Easy Home Solutions, where Bryan is the main phone contact and his name is cited in the testimonials. His phone was turned off when Property Observer called.
Patricia, director of their self-created ‘Buy Houses Easy’, was operating without a real estate license and the court ruled that many of the terms they used on their advertising material were misleading or deceptive.
The promoter who taught the Susilos appears to have initially paid their court costs and provided the legal advice until the end of last year when everything changed, and the siblings did an about turn and pleaded guilty. At the time of publishing, it was unclear exactly who funded these legal costs.
The Susilos, softly-spoken Patricia and bolder younger brother Bryan, attended their first seminar in North Perth, held by TGR Seminars Pty Ltd and hosted by Stuart Zadel. It was 2009, and they had never done anything with property before, nor had they attended any other seminars at that time. The siblings, who have spent most of their lives in Perth, were told about the event by their father, who asked them to come with him. One of the sessions within the seminar was a ‘rent to buy’ presentation.
Zadel has since told Property Observer that given the reputation of the seminar industry, he has gone to great lengths to bring honesty, integrity, transparency and longevity to the industry with his events, noting that he is committed to making a difference in the world and always giving back to the community and environment. "Zadel Property Education is an established, well-respected personal development and property education company offering leading-edge information to inspire prosperity for all," he said of the events.
In a ‘success story’ interview with Zadel, Patricia explained that it was important to their father that they start a business and work together and that they saw an opportunity to do this through the information provided at the seminar. You can <a href="https://stuartzadel.com/stuart2012/wp-content/uploads/audios/patricia_and_brian_part1.mp3" target="_blank">hear the full interview online</a>, although the video has been removed from the <a href="https://stuartzadel.com/stuart2012/podcast/success-story-patricia-and-bryan-age-is-no-barrier-part-i/" target="_blank">main page of their success story</a>.
“I was at highschool at that stage, she [Patricia] was at work in an accounting firm doing auditing, doing this and that. When we first came to Stuart we had very little background in terms of doing our own business. Never bought a property before, never done any renovations, we were pretty fresh off the block,” Bryan told Zadel.
Their youth, heavily focused on in the interview, was said to be unusual, with the majority of people going to the seminars being significantly older.
The Susilos explained that they sometimes experienced difficulties due to people’s perception of them as inexperienced. Some people “don’t believe that we own the houses,” explains Patricia. However, she goes on to say that the potential clients eventually “get over” the sibling’s youth, as they appear to know what they’re doing.
“That’s fantastic,” says Zadel.
Bryan laughs remembering the first time he put his new skills into practice.
“I still remember the first meeting I had with someone who was selling their house. It was traumatizing,” he muses.
<blockquote>
“I still remember the first meeting I had with someone who was selling their house. It was traumatizing,” he muses.
</blockquote>
The first year of their business was slow. “The first year we only had one go through,” explains Patricia.
“It was slow,” says Bryan, “the first three quarters of that year were almost uneventful.”
As of the interview, they said they had about eight deals altogether that had gone through.
“We were starting from ground zero, no financial resources, no experience, we had the support, we had the resources from Stuart and his strategies… for that reason, our first few, some we had to let go in the sense that we weren’t in a financial position to commit from them… since then in the last 12 months we had [about five] deals stack up,” Patricia explains.
“We’re making, on average, around $30,000 per house,” she told Zadel at the time.
Evidence shown in court amounted to four property transactions. The profit received on these transactions was described in the judgment as including $2,825 on a Huntingdale property, and $17,676 on an Orelia property.
Further research has found that the ‘hand over’ course from the seminar, which the students told the Court their parents paid $20,000 for them to attend, was that from best-selling author of How to buy a house for one dollar, rent to buy promoter Rick Otton. This was not mentioned in the success story interview the siblings did with Zadel and was gleaned from further searching. Zadel tells Property Observer that this is the norm for his business and not undertaken with anything sinister in mind.
"In relation to the online "success interview", our long-standing company policy with such interviews is to focus on highlighting personal success with strategies and approaches, not the specific teacher," he said of the interview.
"The last time my company worked with Mr Otton in Western Australia was in April 2012. Around that time, we became aware of potential regulatory issues with Mr Otton's rent to buy strategy in that state (but in no other states), and immediately withdrew it from our program," he said.
"In all my legal agreements with my speakers, it is made very clear, amongst many other requirements, that: "All statements made by the Speaker during the event are true and accurate and not misleading in any way and any opinion given by the Speaker during the event is based on the Speaker's reasonable belief"."
At the time of writing, Otton has images of Bryan and Patricia on his Facebook (screenshots below) and refers to them as the ‘BKs’, or the ‘Big Kahunas’, in one of the 2012-uploaded images. This is a term he regularly gives to his successful students.
<img src="/images/stories/2014/03/10/facebook-march-10-one.jpg" alt="">
<img src="/images/stories/2014/03/10/facebook-march-10-three.jpg" alt="">
Source: Facebook 
The course went on for five days, and the judgement explains that it included information on many aspects, such as promotion, sales methods and documentations and also had a lawyer speak at one of the sessions.
The Susilos also paid $1,000 a month in ongoing mentoring fees after this date, which Justice Beech at the Supreme Court of Western Australia, believed to express the faith the siblings held in the course and its presenters.
“The defendants' evidence is that they followed what they were taught at the courses, including in the advertising of their business and the sales the subject of these proceedings. This evidence was not challenged, and I accept it,” said Justice Beech.
While it was claimed that they did not know at the time that their actions were misleading, "The Company Website Conduct was deliberate in that Ms Susilo knew that her business did not buy houses and knew that she derived fees and commissions. However, she believed, based on the course she had done, that the business did buy houses in a broader, non-technical sense of the word," the judgement ruled.
"Nevertheless, given the defendants' age and inexperience, and what they had been told at seminars, their beliefs might be said to be understandable."
<a href="https://www.thenaysayer.net" target="_blank">Consumer advocate blogger at Naysayer</a>, Carolyn Bond who previously co-ran the Consumer Action Law Centre in Victoria, and the Consumer Credit Legal Centre for 15 years, and has held numerous advisory body positions as consumer representative, has weighed in on what some of the recent judgments mean for others in Western Australia. She also told Property Observer that she has spoken to a number of those who have been involved in similar activities.
“While the court didn’t specifically discuss the reference to options in the legislation, I suspect that as far as “creative” property strategies, the question of whether an estate agent’s licence is required in WA (and possibly the rest of the country) may have been settled,” Bond writes in <a href="https://thenaysayer.net/2014/03/08/big-comeuppance-for-big-kahunas/" target="_blank">her most recent post Big Comeuppance for Big Kahunas</a>.
She also notes the following that rent to buy promoters can learn from:
Hold a real estate agents licence. if you are doing rent to buy or be very confident of any legal advice that indicates you don’t need one. While the licence decision was based on WA legislation, the wording of the decision suggests that the definition of ‘real estate transaction’ in other states’ legislation would be adequate to require that rent-to-buy operators hold a real estate agent’s licence.
Fix up your website, ads and signs. The Court relied on the Australian Consumer Law (Commonwealth) in finding the various statements to be misleading, so it is likely that similar statements would be found to be misleading in all other states.  While there could be prosecutions in other states for conduct over prior years, it’s better to comply late than never.
You can’t use the excuse “someone taught me". The problem for any seminar students is that it is not a defence to prosecution to say that someone suggested, or taught them to make particular representations. 
Unjust contracts. The decision relating to the exorbitant house price was based on the NSW Contracts Review Act.  However, this legislation contains similar provisions to the unjust provisions in the NCCP.  While purchasers in the same position in another state may not obtain a similar outcome from a deal which is not in the course of business, similar provisions of the NCCP may apply if a party is in the business of providing credit, or holds a credit licence.
Source: Naysayers Blog
And, finally, she indicates that there are many other rent to buy operators in Western Australia who are using very similar methods as those seen by the Susilos, and who are no doubt concerned as to whether they are compliant with the law.
The active, or soon to be active, nature of the rent to buy industry in Western Australia was also mentioned by Justice Beech.
<blockquote>
The active, or soon to be active, nature of the rent to buy industry in Western Australia was also mentioned by Justice Beech.
</blockquote>
"It is open to infer from the defendants' evidence that there is, or is likely to be, an active rent to buy industry. Some of the participants may have attended the same seminars and may be liable to engage in marketing and promotions strategies that raise questions of misleading conduct under the ACL. That engages the need for general deterrence. In any event, the object of general deterrence applies more widely," continued the judgment.
Both of the siblings, along with the fines, received three year injunctions requiring them not to engage in rent to buy real estate transactions without a license or without working for a licensee and not to represent that they "buy houses" unless they intend to acquire a freehold title.
They were also told not to represent that they are the owners, jointly or solely, of properties they are selling unless they are the owners and not to represent to buyers that they can purchase without a bank loan unless there are reasonable grounds for this.
Beech told them that accurate and complete statements of the money payable by prospective buyers under the arrangement must be provided, that rent to buy arrangements are not immediate sales of the property and this must be disclosed and that the promoters must also disclose what revenue they will attain from the arrangement.
When Rick Otton, director of We Buy Houses, was contacted by Property Observer he said that he was in a seminar but agreed to answer some questions by email.
He responded to the questions, which have been reproduced in their entirety below:
<ol>
<li>
 When did the Susilos become involved with you, and how did you meet them? Many people have attended my trainings at some stage over the last 15 years as these strategies have become more main steam (sic) and popular both here in Australia and overseas the solicitors handle the legal aspects at these events. Most attendees go to other seminars covering the same subject areas 
</li>
<li>
What support did you provide to the siblings through the court proceedings? (Including help with legal advice etc?) I did not believe that prosecuting a 17 school boy in the supreme court was in anybodies best interest let alone the expense or the message it would send to other young Australians for what ended up being a legal technicality. 
</li>
<li>
I have read a comment online that is said to be from yourself about the case on Australian Property Forum here: <a href="https://australianpropertyforum.com/single/?p=8444000&amp;t=9755161" target="_blank">https://australianpropertyforum.com/single/?p=8444000&amp;t=9755161</a>. Was this your post? [No response provided, and after a follow up email was sent Otton said that he would have to chase it up, as much of this is outsourced] 
</li>
<li>
Do you intend to alter the way you teach your students as a result of this? What are your overall thoughts on the judgement? Guidelines have now been set regarding advertising which offers more clarity as the industry is growing and constantly changing, as a result the industry has adapted. I'm glad but not surprised that the Justice agreed that all the strategies are legal. 
</li>
<li>
Had any of these issues as presented by Justice Beech been on your radar previously? This case has been ongoing for over two years as nobody could clearly define all variations in the way Australians now transact property The market is changing and therefore a lot of what was old does not necessarily apply to the needs of people today. The Justice agreed with our side on many issues raised by the commissioner of WA . On a couple of points he agreed with the WA commissioner 
</li>
<li>
Any other comments you think are pertinent. I believe that the way Australians transact real estate is ever changing as it is in other parts of the world.... In all areas of life change is inevitable, you can try to stop it or accept it and develop guidelines that accommodate the change</li>
</ol>
 
That there has been a crackdown on rent to buy in Western Australia, with Consumer Protection Commissioner, Anne Driscoll, leading the charge has been no secret in the industry. In fact, on their website there is <a href="https://www.commerce.wa.gov.au/ConsumerProtection/Content/Property_renting/Buying_and_selling/Rent_to_buy_schemes" target="_blank">a list of the warnings and court proceedings in regards to rent to buy</a>.
Rick Otton’s seminars have already been the subject of a voluntary ban in the state, <a href="https://www.google.com/url?q=https://www.propertyobserver.com.au/western-australia/best-selling-property-investment-author-s-wa-seminars-banned-dept-of-commerce/2013111266316&amp;sa=U&amp;ei=cS8dU5KnDY-FogST54CoCg&amp;ved=0CAYQFjAA&amp;client=internal-uds-cse&amp;usg=AFQjCNF4zFh4lif72QuiT-4uZ1SXOAKbng">as reported back in November last year due to potentially misleading advertising</a>. Action in other states and territories around the issue hasn’t yet been as pronounced.
Meanwhile, Zadel noted that this case had "nothing remotely to do with my business, which anyone who takes the time to read the publicly-available online judgment will realise."
As for the Susilos, one can only hope that their real estate dreams haven’t necessarily been broken and that they realize there is an appropriate method for everything. As well as that it's necessary to comply with the law - particularly when dealing with many peoples' most valuable asset and lifeline. It was noted in court that Patricia currently works as a credit assessor, while Bryan relied from the funds coming in through the business, as well as on his parents.
<a href="https://mail.privatemedia.com.au/owa/redir.aspx?C=UaqQaCzKr0mPHBbYLZDRkDI8X8tjD9EI6oITOZGSRU_X9kxubKT8jj90VXO4-8fs30k5GCGiPSU.&amp;URL=mailto%3ajduke%40propertyobserver.com.au">jduke@propertyobserver.com.au</a>
Note: The article has been updated to reflect comments provided by Stuart Zadel post-publication 
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jduke-EHk3XBmHkn

From seminar to success story… to getting fined in the Supreme Court of Western Australia: How it happened

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GUEST OBSERVATION
No matter how many investment properties you have or plan to have, assessing your risk profile before you purchase is vital.
Your attitude towards risk may affect what types of properties would better suit you. Everyone will most likely have a different attitude towards risk based on their own situation and future goals. What may be considered a risky property by one may be considered a safe option by another.
However, if you don’t do your research and you’re not 100% sure what your comfort levels are, you may end up purchasing a property that will end up costing you financially and emotionally.
So how can you calculate how much risk you can handle? Firstly, your personality will play a part in establishing your risk tolerance. For example, if you have a more conservative nature and tend to worry more, your risk tolerance may be lower than someone who is more of a go-getter. Although it is important not to let your emotions affect your investing decisions, you should still know how much risk you can handle so you don’t lose sleep over your decisions.  
Some other factors that may affect your attitude towards risk include:
Personal life: Are you single, married or have kids? Do you have a stable career? These factors could affect how much risk you are willing to take on.
For example, if you have a family to provide for, you may opt to purchase a property in an area with a lower rental yield, but a strong occupancy rate, giving you the stability of constant rental income to help pay off the mortgage.
However, if you are single and are able to cover the repayments without the rental income, you may be more willing to choose an area that has a higher rental yield, but a lower occupancy rate.
Money habits: Whether you are a habitual saver or live from pay to pay, your approach towards money may impact your risk tolerance.
For example, your money habits may influence which strategy you choose to build wealth on your investment property. When purchasing a property, investors need to decide whether to focus on capital growth or the rental income.
Some property investors find rental income less risky as the property pays them more than it costs to own it<ins cite="mailto:Melissa%20Urquhart" datetime="2014-01-09T15:39"> </ins>and comes to you in regular instalments rather than a capital gain which can be unpredictable.
Past experiences: Having past investment experience may affect your attitude towards risk.
If you have had bad experiences or big losses, your tolerance for risk may be lower.
However, if you have managed to successfully get through rough times before; riskier investments may not bother you as much.
Income: If you have a solid, stable career with a regular income, you may be more willing to take on extra risk compared to someone who does not have a regular income stream.
For example, areas such as mining towns may be more appealing if you have a regular income as the rental income will be high, but you can still meet repayments if the property is vacant. 
Although it will be hard to find an investment without risk, there are ways to meet your investing goals with being exposed to too much danger. Some strategies include:
<ul>
<li>Choose mainstream property investments: If you are new to the property market, it is best to steer clear of ‘get rich quick’ schemes. It may promise fast returns, but if you don’t know what you are doing, you could get into trouble. Remember, if it sounds too good to be true, it probably is.</li>
<li>Manage your finances: One of the main risks of property investing is relying on the rental income to repay your home loan. Most rental properties will experience vacant periods, so it is important for investors to ensure they have enough surplus funds to cover these vacant periods.</li>
<li>Select an investment that suits your needs and goals. Property experts are regularly releasing information on the up and coming investment hotspots and although an industry expert’s opinion may be valuable, this information is generalised and doesn’t take your own personal circumstances into account. Think carefully about what your needs and goals are and then look at properties that match this.</li>
</ul>
An investment is a serious financial commitment that can be extremely costly if you don’t know what you are doing. Extensive research and speaking with professionals will help you make informed investing decisions and give you a better chance of building a successful portfolio. 
Heidi Armstrong is the CEO for <a href="https://www.statecustodians.com.au/home-loans" target="_blank">State Custodians Mortgage Company</a>. As an expert in personal finance, securitised lending and the mortgage industry, Heidi is passionate about educating borrowers to help them make smart lending decisions.
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jake-cSmGT7VXVf

How much risk can you handle? Assessing your risk profile

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When owning a rental property, the safety of your tenants is in your hands. While this can be as a negative when it comes to investing in property, it’s still an aspect to be taken seriously. Disregard for the state of your rental can leave your tenant unwell and see you facing tribunal. Last year, the <a href="https://www.sunshinecoastdaily.com.au/news/mum-wants-out-of-mould/1265926/" target="_blank">Sunshine Coast Daily reported</a> about a woman claiming ill health due to a mould infused rental. Property Observer has also asked many times “<a href="/expert-insights/investing/is-your-tenant-living-in-squalor-this-video-is-hard-to-watch">Is your tenant living in squalor?</a>”. In the United States a number of landlords have faced lawsuits regarding mould and its effect on the health of tenants. Poorly ventilated properties are usually those most prone to mould and, while this can be in older homes, new homes do not get off the hook. The video below is of a property in Sydney – just two years old. Of particular note are the mould spores around the children’s room and bed.
{qtube vid:=kp4dwMrL1DU}
 A quick Google search online reveals forum post after forum post of different renters experiencing this problem, and many where tenants discuss respiratory difficulties and other ailments. In the above video, Just Think and Oz Real Estate TV’s Edwin Almeida explains that they use special equipment to expose the extent of what some tenants live with. “Our expert informed us; it is not what you see that you need to worry about as much as what needs to be seen with a blue light apparatus. The mould spores turn into shiny particles under the blue light and only then are we able to see where these toxins rest. In most cases the spores can be found on the other side of the homes, from where the naked eye sees the black stains. These spores become airborne and end up in the wardrobes, cold surfaces, enclosed areas and all over the furry toys children play with daily,” Almeida explains. “In most of the newly built apartment blocks post 2006, I have seen that the wet areas namely; bathrooms, laundries and kitchens, don’t have windows and these areas rely on mechanical ventilation to extract the humidity out of the room. Most of the time, the ventilation filters are seldom cleaned and at first they may be working at full capacity. However, the flexible ducting, which is meant to carry the moist air out, is usually compressed and twisted during the construction.” In a nutshell, the mechanical ventilation is failing. With fewer windows, smaller rooms and smaller rooms, ventilation problems are increasingly becoming a complaint. Investors dealing with a rental property with a mould issue should consider the following recommendations from Almeida: 
<ul>
<li>Act promptly on requests from tenants when they report musky smells in the property.</li>
<li>Identify dust-riddled areas and encourage these to be cleaned by the tenants regularly when conducting a mid-term reports. Dust and moisture is the breeding ground for mould.</li>
<li>Where possible assist the tenants by providing a dehumidifier to extract moist air from the apartment.</li>
<li>Encourage tenants to ventilate the apartments as much as possible even in winter.</li>
<li>Keep wet areas (rooms) ventilated and doors open when in use, mainly the laundry area when using the dryer.</li>
<li>Do not clean mould with bleach. Use commercial white vinegar with a tenth portion of methylated spirits andspray on effected surface then wipe clean. Re-spray the effected surface area with a fine mist of the same solution andallow it to dry, creating a barrier.</li>
<li>Do not paint over mould without first cleaning or properly preparing the surface area.</li>
<li>Contact a mould specialist immediately if the infestation is prevalent, as it is quite possible the entire home will require treatment as mould spores are airborne.</li>
</ul>
 <a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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One rental problem that may be opening you up to a lawsuit

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I recall over a decade ago venturing into Docklands with camera, thinking what wondrous experience could those in charge create over time - how times change.
Peddle Thorp recently released a swag of new designs on show for the first time via their website. One of which is a concept for the Docklands Aquatic Centre which sees an integrated facility located between Etihad Stadium and Victoria Harbour.
As a stand alone concept, the sinuous facility looks great although when in situ one thought sprung to mind. Does Docklands really need another large, isolated structure that has little by way of interaction with passers-by? Etihad Stadium, parts of Yarra's Edge and AXA's 750 Collins Street amongst others already take that mantle, serving as Dockland's Achilles heel.
<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/Image20_0.jpg" rel="gallery-all" title="Concept for the Docklands Aquatic Centre. Image © Peddle Thorp"><img alt="" class="image-article-full-width-580px" height="274" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/Image20_0.jpg?itok=9BG0QAiH" title="Concept for the Docklands Aquatic Centre. Image © Peddle Thorp" width="580"></a>
Naturally the question becomes, what does Docklands really need? This question is asked in respect to advancing the precinct in the eyes of the common person who for lack of interest or experience, tend to dismiss the area out of hand.
Up until recently I would have thought community facilities were a must, yet they tend to serve the wants and needs of a vocal, local population - and fair enough. The most recent planning application for Lend Lease's Victoria Harbour is a Boating and Family Services Hub, seen below. Designed by Hayball, this odd duo will meld under the same roof providing services such as consulting rooms, workstations, playgrounds, function areas and boat storage/rigging spaces.
As part of Victoria Harbour's civic precinct, two more development lots have been set aside for human services buildings. These are all great initiatives located in one pocket of Docklands but they won't generate markedly increased foot traffic through the precinct.
<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/Image24_1.jpg" rel="gallery-all" title="Boating and family services complex. Image © Hayball"><img alt="" class="image-article-full-width-580px" height="336" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/Image24_1.jpg?itok=fOsYBser" title="Boating and family services complex. Image © Hayball" width="580"></a>
What does Docklands really need? Intimacy... pure and simple.
When so many of Docklands' buildings are large, independent and isolated, the result is a rather sterile, disconnected experience. The intimacy of the CBD's laneway network is a success because the average person is confronted with sensory overload. Sights, smells and constantly changing shop fronts stimulate and entice, coaxing the average person into an enjoyable experience. The generic aluminium-framed, street level glazed facades of Docklands simply disappoint.
It's no coincidence that NewQuay's waterfront and Lend Lease's Merchant Street area are the most frequented as the pedestrian experience is dynamic, green (Merchant Street at least) and interesting. Some may say Harbour Town Docklands pursues the model of intimacy and diversity. Yes it tries to, but it also succeeds at being cheap, isolated and dare I say gimmicky - no authenticity there.
<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/100-Things-To-Do-Before-You-Die-79-Melbourne-Laneways-Featured-Image.jpg" rel="gallery-all" title="Image © Australian Traveller"><img alt="" class="image-article-full-width-580px" height="339" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/100-Things-To-Do-Before-You-Die-79-Melbourne-Laneways-Featured-Image.jpg?itok=8wuVpx89" title="Image © Australian Traveller" width="580"></a>
Can Docklands generate intimacy? Mmmmm... no.
So much has been spoken about what could and should be done to enhance the Docklands experience, nothing tangible has eventuated. The cost to retrofit massive swathes of inactive street frontage is prohibitive and I just can't help but feel Docklands will retain the feel of a large suburban office park at the foot of the CBD.
The solution - aside from demolishing a few buildings and starting over, better luck with Fishermans Bend!
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silvermb

What Docklands really needs?

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The national construction sector has declined in February, according to the latest Australian Industry Group figures.
The Australian Performance of Construction Index (PCI) fell by four points to 44.2 in February, a 50% contraction in performance.
While house building continued to grow alongside commercial construction, a sharp drop in engineering and apartment building is being blamed for the pulling overall constriction figures down. New orders also fell to their lowest levels since July 2013.
In a statement, Ai Group director of public policy Peter Burn said developments in the construction sector reflected the conditions in the broader economy.
“The mining investment boom is fading, as seen in the sharp fall in engineering construction activity and new orders,” he says.
“Even though there is an accumulation of positive signs, other sectors are not filling the void.”
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank" rel="nofollow">SmartCompany</a>.
         
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po-LsXgBTHBmX

Construction sector contracts further in February

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Reserve Bank of Australia governor Glenn Stevens has signalled the official cash rate is unlikely to see any more cuts, although he’s unsure how long it will stay at its current record low.
Speaking to the House of Representatives Standing Committee on Economics, Stevens said there is likely to be a period of stability.
“I haven’t said how long a period because I don’t know...That's a bit of a shift on our part, where we had been saying that there might be scope to go down a bit more if needed; I don't think we do need to, at this point in time,” he says.
“I think if it's possible for there to be a period of stability, then that in itself at the margins is probably helpful to people.”
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank" rel="nofollow">SmartCompany</a>.
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RBA signals further rate cuts unlikely

Property Trivia: Medieval castles, top not-spots, the ‘X-factor’ of the market

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Yesterday morning, I had a coffee at Max Brenner on Margaret Street with a girl I used to work with in the mining industry, then rather fancy tapas lunch at Circular Quay with an old cricket mate turned investment banker, and, not feeling much like cooking in the evening, got a Thai takeaway to watch the rugby league last night.
A neat microcosm of Sydney, that.
My missus tells me that she also had lunch out for a friend's 40th, and bought her mate a present from Tiffany's.
Hmm, so much for this being a blog about finance: spend less than you earn and invest the difference. That little lot adds up to an expensive day.
The odd thing is, I'm pretty sure that two years ago, we'd have felt less inclined towards spending like that. But interest rates are way down. Share markets are way up. Sydney home values are booming, and so too are house prices in London. Even without drawing lines of credit, we're wealthier.
We're not the only ones. Without fail, I make the comment every weekend to my better half that in Sydney at the moment it feels like what it must have been like to live through the US golden age of consumerism in the 1950s. People have got money and by heck they are spending it!
<div></div>
Incomes
A couple of observations, though.
Firstly, this has not been an income-led phenomenon. Wages are only growing at 2.6% year on year, which is historically the lowest we've seen in the history of of the wages index.
It's mostly been about the massive affordability dividend gifted to home owners since the interest rate easing cycle began in November 2011, since which time we've had the equivalent of another eight interest rate cuts, which frees up a lot of cash to spend each month.
Mortgage arrears are nowhere to be seen in Australia, tracking at just 1.37%, as compared to, say <a target="_blank" href="https://www.reuters.com/article/2014/01/20/fitch-irish-mortgage-arrears-to-peak-in-idUSFit68205820140120">nearly 20% of mortgages</a> being three months in arrears in Ireland.
Another noteworthy point is that while certain profligate people have been shopping at Tiffany's, it's largely been about eating out, restaurants, drinking and similar consumption-based recreation.
Last Tuesday, to celebrate some good news, we tried to go for a Japanese lunch and couldn't even get a seat. Granted, it was close to the large Macquarie Bank office on Shelley Street...but on a Tuesday lunchtime?!
This is Sydney at the moment, the city of takeaways, restaurants, food and drink consumption.
Repeat
Of bad and annoying habits, I have several.
I repeat myself a lot - once I get an idea in my head, I tend to keep banging on about it.
I often get prematurely excited (only with regards to ABS data, mind).
And I repeat myself a lot.
Regular readers will know that <a target="_blank" href="https://petewargent.blogspot.com.au/2013/09/will-rising-house-prices-cause-rise-in">for the past 6 months</a> I've been saying that retails trade is going strong, whatever people might be trying to argue.
It feels like I'm living in a parallel universe sometimes, since even until recently there have been articles talking about a spending recession. I know that Sydney is not Australia, but still, this is definitely not what my eyes have been telling me...
Retail print
And so to yesterday, after prints of 0.7% month on month and 0.5% month on month, yesterday the market expected a Retail Trade print of 0.4%.
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/8501.0">And we got 1.2%</a>!
Bears have tried to play this down as a blip or a one-off, but there is no other realistic way to describe that than as a huge beat. And in any case, the prior month was also revised up as well to 0.7%.
The statistics now show that for six months, retail trade has been rising at an annualised pace of 9% (it's been the longest run of monthly gains since 2005-7), and the last three months we now are at double digit speed! We haven't seen anything remotely like this since the stimulus of 2009.
And where are we spending all this money? Well, all over the place, but a huge chunk of it on cafes, takeaways and restaurants:
"The seasonally adjusted estimate rose 2.0%. By industry subgroup, the trend estimate rose for Cafes, restaurants and catering services (1.7%) and Takeaway food services (0.3%). The seasonally adjusted estimate rose for Cafes, restaurants and catering services (2.7%) and Takeaway food services (0.9%)."
<img style="display: block; margin-left: auto; margin-right: auto;" width="320" height="159" src="https://www.abs.gov.au/ausstats/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/7db5df17519aa9d4ca257276000d5433/Body/0.33F0!OpenElement&amp;FieldElemFormat=gif" alt="Graph: Cafes, restaurants and takeaway food services">
Source: ABS
Wealth effect
The wealth effect has been well known about in Britain for years. In fact, it's even a <a target="_blank" href="https://www.bankofengland.co.uk/monetarypolicy/Pages/how.aspx">part of the Monetary Policy</a> wording over there, and here's how the Bank of England describes it:
"Lower interest rates can boost the prices of assets such as shares and houses. Higher house prices enable existing home owners to extend their mortgages in order to finance higher consumption. Higher share prices raise households’ wealth and can increase their willingness to spend."
And the data from the Office National of Statistics proves it:
<img style="display: block; margin-left: auto; margin-right: auto;" src="https://1.bp.blogspot.com/-kRwCjnMf7QE/Ujg_hdgaqPI/AAAAAAAAKRY/T91uDuNtYb4/s400/spending.jpg">
Source: Nationwide
Does the wealth effect work in Australia too? Cameron Kusher of RP Data charts the information, so draw your own conclusions (it does):
<img style="display: block; margin-left: auto; margin-right: auto;" width="400" src="https://pbs.twimg.com/media/BiAaqe9CYAEHqzH.jpg:large" height="150">
Source: RP Data
Strong data
Yesterday, we also got reported a <a target="_blank" href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/5368.0">trade surplus of $1.4 billion</a>, another big beat against a forecast of only $100 million. Resources exports are booming. The economy is heating up. Add to this in the past week:
-a huge <a target="_blank" href="https://petewargent.blogspot.com.au/2014/03/wow">jump in the AIG Services Index</a>
-building <a target="_blank" href="https://petewargent.blogspot.com.au/2014/03/building-approvals-to-decade-high-as">approvals at their highest level in a decade</a>
-the <a target="_blank" href="https://petewargent.blogspot.com.au/2014/03/6-year-high">stock market hitting a six year high</a>
-Coles announced yesterday a massive <a target="_blank" href="https://www.smh.com.au/business/retail/coles-unveils-massive-11b-expansion-plan-20140305-346t1">$1.1 billion expansion plan</a>. The retail sector is set to add 109,000 jobs over the next few years.
Low interest rates are working. Futures markets increasingly believe that the next move in interest rates is up.
Make the most of low rates while it lasts, I say. Max Brenner anyone?
Pete Wargent is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' was released on 1 September 2013.
                                  
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pwargent-M4siyDbqQY

Retail figures jump and the wealth effect

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Over the many years I’ve been helping people with their property developments, I have uncovered some amazing stories.
To celebrate <a target="_blank" href="https://www.internationalwomensday.com/theme.asp#.UxhaU_mSySo">International Women’s Day</a> – which is tomorrow 8th of March - I thought I’d share with you some of the most inspiring women property investors I’ve come across and who I am proud to call my clients and friends.
These women have achieved great things whilst just getting on with their lives. They are normal, down to Earth chicks; mothers, wives, daughters.
When I met Rachel, she was a part time working mother of four young children all under five. She wanted to development property so she could continue building her existing portfolio but was a little bit busy to manage it herself. She already held what I considered a very impressive portfolio of eight investment properties. When Rachel was 24 years old, instead of a car, she bought her first property and then just kept investing.
Rachel worked in accounting for a company she didn’t much care for.  To put it bluntly, her boss was a pig. But she used to grit her teeth and bear it as she knew she needed the salary income to keep moving forward on her property journey.
Rachel lived near me, so I went to her house to present our property development project management business to her.  We met over the kitchen bench with her husband and the little ones pulling on her skirt. Between distracting the kids, we chatted about property and it was only a few weeks later we’d started on her dual occupancy development. Rachel was decisive; I guess she didn’t get much time to procrastinate.
We completed her dual occ, increasing her property portfolio by two more properties, and then I received the phone call. Rachel excitedly shared with me her news that she was pregnant again and in the same breath she explained that she wanted to get another cashflow positive property under her belt before having to leave work. We discussed a granny flat project and immediately started searching for the right property for her. We found the property and at the same time, Rachel had an announcement to make. The amazing news was that she was having twins!
We completed her granny flat development after her beautiful twins were born twelve weeks premature! Now she owns 10 investment properties. Rachel’s goal is to set herself and her husband up for an early retirement and to help her children with their investments in the future. She is also looking to start a new business helping other investors do the same as she’s done.
My next amazing lady client is Angela who owns a whopping 14 properties including the three villas Property Bloom recently developed for her.  Angela started investing when she was 27. A dynamic single mother who works full time in the corporate sector leading a large operational team in the media industry, she is focussed on building her asset base and wealth, securing the future for herself and her two beautiful children.
Her investment strategies include buy and hold, subdivision, medium density development and build to add value. Angela has also set up her own self-managed super fund.
When we worked together, Angela really impressed me with her attention to detail and focus on exactly what she wanted. I knew her day job was very demanding but the time she dedicated for her family was more important to her. Angela’s biggest driver is to be a great role model for her children and to provide them with a future that will offer them options and choice.
Finally, I’d like to introduce Justine who is possibly better known as a successful, <a target="_blank" href="https://www.smarttrading.com.au/index.php?q=1">professional stock and CFD trader</a>, speaker and best-selling author; but Justine is also a property investor.
Justine was just 23 when she purchased her first property investment. However, before this at the tender age of 18, she invested her savings in the stock market as a hobby. Talk about diversification. This ‘hobby’ then became a full-time career in 2001, when Justine decided to take the plunge and leave her job to become a full time stock trader.
I met Justine a few years after this and she was well on her way to securing her financial freedom.  A wife and mum of two gorgeous children, she engaged Property Bloom to manage a corner block development that included a major house renovation, Torrens Title subdivision and unit development.  This project created a high amount of equity and a solid yield.
Justine has since ventured to the USA to take advantage of the low property prices and strong Aussie dollar and has built up a fantastic portfolio of USA properties. Being the entrepreneur she is Justine’s latest venture is <a target="_blank" href="https://www.smartpropertyinvesting.com/index">Smart Property Investing</a> where she helps others buy into the US property market.
These three women are remarkable in their own ways.  But they are all focussed, work extremely hard and are motivated to make a difference for their futures and for the future of their children.
Most importantly, they are every day women, just like you and I who just get on and do it.
I’m also working with many other fabulous ladies who have taken on the challenge of setting themselves up financially....so here’s a shout out to Liz, Linda, Sandi, Lean, Nikky, Annabel, Jo-anne, Lorraine, Alison, Esther, Karen, Paige and Suzie. Happy International Women’s Day to your all!
Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">Property Bloom</a>, which manages property development.
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