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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Data-matching by the Tax Office is now a well entrenched feature of the Australian tax landscape. It seems that almost not a week goes by without an announcement of some new Australian Tax Office data-matching project.
<a href="https://www.smartcompany.com.au/finance/tax/31198-beware-of-the-ato-s-data-matching-machine" target="_blank">Data-matching</a> is not about to stop. In fact, it will expand and a new proposal from the government will see new reports submitted to the Tax Office. Oh joy – another report to be done!
In November last year, the government announced its intention to proceed with the 2013-14 budget proposal by the former Labor government to improve tax compliance through third party reporting and data-matching. The proposal is designed to improve taxpayer compliance by increasing the information reported to the ATO by a range of third parties through the introduction of new reporting regimes. It is also proposed that this additional information would allow the ATO to offer an enhanced pre-filling service to taxpayers. The proposal is currently scheduled to commence from July 1, 2014 (although first reports would not be due to the ATO until after July 1, 2015).
In last year's federal budget, the former Labor government announced it would provide funds to the ATO to improve compliance for taxpayers by expanding data-matching with third party information.
Treasury has now released a discussion paper on the proposal. It notes that some of the elements of the proposal can be implemented by the ATO changing its administrative practices whereas others would require tax law changes. The paper only relates to those elements requiring legislative change.
This would involve the creation of new third party reporting regimes in relation to:
<ul>
<li>
sales of real property – To implement this proposal, the ATO would need to receive the following type of information for each real property transaction: vendor and purchaser name; vendor and purchaser address;  vendor and purchaser date of birth (for individuals); vendor and purchaser Australian Business Number or Australian Company Number (for entities); property details, including ID and address; property type (eg residential, commercial, new residence or vacant land); contract date; settlement date; and  consideration and any other costs and charges. The reporting of property information would not necessarily be restricted to an annual report. The likely reporting entities could be State and Territory Land Titles and Revenue Offices;
</li>
<li>
sales of shares and units in unit trusts – Sales of shares in companies and units in unit trusts may give rise to income tax (including Capital Gains Tax) consequences. Initially, the proposed reporting regime would apply to transactions for shares in companies listed on a recognised stock exchange. However, going forward, the paper says it may be possible and necessary to bring sales of "private company" shares within the reporting regime. To implement the reporting proposal, the ATO would need to receive the following type of information in relation to each share transaction: shareholder's name, address and date of birth (if applicable); shareholder's Tax File Number, ABN or ACN (if applicable); TFN withholding tax code; "non-resident indicator" in respect of the shareholder; company name and Australian Securities Exchange code, and the CHESS and internal registry reason codes; shareholder's account holding number (Share Reference Number/Holder Identification Number) (if applicable); acquisition and disposal dates, prices and quantities; incidental costs (such as broker's fees); and any capital returns or payments and the associated dates. Those most likely to have ready access to the required information would be the "market participant" executing the transaction, the clearing house provider used by the market participant to facilitate the transfer, and the Share Registry maintaining the company's share register (particularly in relation to "off-market" transfers);
</li>
<li>
sales through merchant debit and credit services – To implement this proposal, the ATO would need to receive the following type of information: merchant name, address and ABN or date of birth; all monthly purchase/sale amounts from credit card and debit card transactions; and all monthly cash out amounts. The reporter would be the entity that provides the payment facilities to the merchant. Traditionally, this has been financial institutions that operate in Australia’s payment system and are attached to card schemes (eg financial institutions and banks providing such services). However, the expansion of the e-commerce market has impacted the methods consumers use to purchase goods and services. Under this proposal, where an entity provides merchant payment facilities for debit and credit payments, they would need to report to the ATO; and
</li>
<li>
taxable government grants and other payments – To implement this proposal, the ATO would need to receive the following type of information for each grant or payment recipient: ABN (for grants and payments made to businesses); TFN or date of birth (for grants made to non-business individuals); full name; address; gross amount paid; total GST (if applicable); BSB and account number; and other contact details such as phone number or email address. All government entities including federal, state, territory and local government bodies that make grants and payments are likely to collect some of this information.
</li>
</ul>
In respect of the above, the ATO would initially seek to receive annual reports and then seek to move to quarterly, monthly or "real time" reporting.
The paper sets out a preliminary set of law design principles that could form the legislative basis for the new reporting regimes. However, it notes that the final form of any draft legislation would depend on the final form of the policy design and this, in turn, will be informed by the outcomes of the consultation process. Accordingly, the government says it is seeking feedback on policy issues and, in particular, and SMEs should take note, the compliance cost impacts of the proposed reporting regimes.
The proposed reporting regimes would be designed so that in most cases third parties would only need to provide information to the ATO that they receive or record in the ordinary course of their business or operations. That's fine, but it doesn't mean a third party won't incur costs in reporting the new information. However, as an effective third party reporting regime depends on the ATO being able to match the reported data to the relevant taxpayer, some additional identifying information may be required.
For individuals, the minimum amount of identifying information needed to provide high confidence identity matching for tax purposes is their name, address and either date of birth or TFN. However, it is important to note there are tax and privacy law restrictions on requesting, recording and using TFNs which would need to be taken into account when considering the use of TFNs in these proposed reporting regimes. For business taxpayers (including individuals in a business), the minimum information is name, address and either an ABN, ACN or TFN.
Whilst it is likely that many of the proposed reporting entities currently collect an entity's unique identifiers in the ordinary course of their activities, there may be some that do not. The paper says these entities would be required to collect this additional information and report it to the ATO under the proposed reporting regimes.
SMEs should note that comments on the Treasury paper are due by March 11, 2014, with details on the <a href="https://www.treasury.gov.au/ConsultationsandReviews/Consultations/2014/Improving-tax-compliance" target="_blank">Treasury website</a>.
The range of data being collected by the Tax Office is ever expanding. Businesses should not underestimate the use to which this data will be put. It's trite to say, but Big Brother is alive and well – even if that data does help with the pre-filling of tax returns.
Terry Hayes is the editor-in-chief of tax news reporting at <a href="https://www.thomsonreuters.com.au/" target="_blank">Thomson Reuters</a>, a leading Australian provider of tax, accounting and legal information solutions.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.<a target="_blank" href="https://www.SmartCompany.com.au"></a>
            
</body></html>

thayes-XhNcNKLNWa

New data reporting regimes for tax compliance will extend ATO's reach

<html><body>
Marvellous Melbourne is set to hit our television screens on the Arena, Foxtel channel this Sunday night when the first installment of Australia’s Real Housewives reality broadcasting phenomenon premieres.
It's been billed as a mix of Kim, Kim and Kimmie. An antipodean mix of Kim Kardashian, along with Kim Cattrall from Sex and the City, and then of course our own  Fountain Lakes temptress, Kim Craig, nee Day.
Our property contrarians Jonathan Chancellor and Margie Blok both contend Sydney should next feature in the global franchise which also is filmed in New York, Beverly Hills, New Jersey, Atlanta, Orange County, the first in 2006, and Miami, among other US post codes. Even Vancouver, Canada. Two other versions, The Real Housewives of Athens and The Real Housewives of Israel, disappeared without trace.
Sydney Sunday Telegraph columnist Ros Reines wrote Sydney was the flashy heart and soul of the nation, and Melbourne just wasn't going to make much of a splash. "Don't get me wrong, that city has plenty going for it including some quirky shops, interesting little wine bars in laneways, pretty gardens and some major sporting fixtures including the Melbourne Cup and the Grand Prix."
Even cultural commentator Bernard Salt expressed surprised at the choice of city.
<img height="264" width="470" src="/images/stories/2014/02/21/RHOM-cast.jpg" alt="RHOM-cast">
The Real Housewives of Melbourne (left to right): Lydia, Gina, Jackie, Andrea, Chyka and Janet, picture courtesy of Arena TV
HE SAID:<img height="200" width="133" src="/images/stories/2013/09/06/jc-silhouette-5.jpg" alt="jc-silhouette-5" style="float: right;">
Move over Melbourne, or is it Mildura? The Aussie version of the Real Housewives franchise should really have always been in Sydney, the sparkling harbour city with hoardes of housewives who could provide all the excitement, opulence, aspirational glitz and excess associated with this show.
It remains to be seen if Melbourne’s Real Housewives - Chyka Keebaugh, Lydia Schiavello, Jackie Gillies, Janet Roach, Andrea Moss and Gina Liano – makes for compelling viewing.
I have my doubts that the Melbournites will be quite able to step into the big glamourous shoes set by their US counterparts such as the divorcees Camille Grammer, Kelly Killoren-Benisom and the singing countess, LuAnn de Lesseps.
Indeed Janet Roach, the Real Housewives of Melbourne champagne sipping millioniare property developer, is my big worry. Her spiel says fabulous and fun is the only way to describe the blonde bombshell who after leaving husband number two overnight is now living life to the max re-discovering herself, her freedom and what makes her happy. "Developing a massive over-55s lifestyle village in Mildura" is her current big project. So I made my enquiries in the small river town, and she'd certainly not yet left any impressions. A little more sleuthing only to uncover it's actually a caravan park she has planned. Presumably for grey nomads. It's actually a vineyard site just outside of Mildura, about 18 acres currently growing grapes for dried sultanas.
Apparently the deal's settlement awaits the upcoming harvest in the district known for its dry summers and mild winters - and being a great place for a round of golf on a Peter Thompson-designed course. Mildura is situated in north western Victoria, in the Sunraysia district, some 500 kilometres from Melbourne, on the mighty Murray River.
I gather the Gympie-born Janet Roach, aka Janet Forshaw, was interested in one of the two neighbouring caravan parks, and finding it not quite suitable, she then rang the vendor Joseph Nocera direct. He's going to keep his automotive works, I understand, which might be handy for those nomad oil changes. <a target="_blank" href="https://www.roccisano.com.au/real-estate/property/280280/land/vic/mildura-3500/lot-2-38-cureton-avenue/">He was wanting $1.5 million for the bigger entire holding on Cureton Avenue</a> (pictured below), but Janet isn't taking the lot. The suggestion from town planning sources is that she's proposing around 190 caravan sites.
{yoogallery src=[images/stories/2014/02/21/mil]}
Do you reckon anyone in Sydney with caravan park plans for Umina would get a word in edgeways in any Sydney Real Housewives series?
But I might be a tad too snobbish as the latest IBISWorld report out this week indicated travel service providers, especially cruise ship and caravan park operators, are enjoying a surge in activity from baby boomers keen to spend their hard-earned cash while they are in good health.
They say more grey nomads are hitting the open road, which is boosting revenue for the caravan parks and camping grounds industry. The industry is forecast to grow at an annualised 1.9% over the five years through 2013-14 to $1.4 billion despite the number of camping grounds declining.
Senior travellers currently account for 26.5% of the industry’s visitor nights – a figure IBISWorld expects will increase over the next decade.
Anyway when not getting the requisite approvals for the Mildura caravan park, Janet Roach keeps hereself busy on trying to <a target="_blank" href="/news">grow truffles on the Mornington Peninsula</a> under the business name, Mont Rouge Truffiere. She's previously known to have dabbled in property development at Diamond Creek and South Morang.
 
<img height="200" width="133" src="/images/stories/2013/09/06/mb-silhouette-4.jpg" alt="mb-silhouette-4" style="float: left;">SHE SAID:
Jonathan tells me he will be watching Downton Abbey on Channel 7, but he is spot on when it comes to the conclusion that it is Sydney with the wealth of material for the Real Housewives juggernaut which no one admits to watching, but everyone secretly does.
Popular Sydney lunchtime restaurants, including Catalina, Chiswick and Bather’s Pavillion, would be the first place to unearth an abundance of talent to fill a sextet of sirens to star in the show.
In fact, Judy McMahon, Catalina’s chatelaine, could be Sydney’s answer to Lisa Vanderpump, a restaurateur and long-standing cast member of  <a href="https://www.bravotv.com/the-real-housewives-of-beverly-hills">The Real Housewives of Beverley Hills</a>. I understand Jonathan is a big fan of Lisa Vanderpump, one of the most popular Real Housewives.
And Sheeva Tavakoli, the wife of Sydney plastic surgeon Dr Kourosh Tavakoli (who live in a $16.35 million harbourfront mansion at Darling Point) is the perfect Sydneysider to take the place of Toorak’s Andrea Moss who’s married to Melbourne plastic surgeon Dr Chris Moss.
Of course, a hot contender for Gina Liano’s legal spot is Sydney beauty and well-dressed barrister, Louise McBride, who lived in a clifftop mansion at Whale Beach before moving to an apartment in Potts Point, with plenty enough wardrobe space for her impressive couturier collection. It would be fun if she could pop over to Bomera to vist the $12.5 million landmark Italianate Potts Point sandstone mansion owned by Leanne Catelan who would also be a terrific Real Housewives candidate given her experience with family stoushes.
Leanne, the daughter of Ray Catelan, the late entrepreneur once behind real estate data company RP Data, and her sister Michelle - daughters from the first of Ray’s three marriages - were involved in a battle over their father’s estate following his 2011 death.
Tiffany's stores in the city and at Westfield Bondi Junction also could be locations to discover potential Real Housewives following in the footsteps of Joyce Giraud, a Real Housewives of Beverly Hills star, who was spotted shopping last week with her husband Michael Ohoven at Tiffany’s store on Rodeo Drive. With her red and black polka dot mini dress, black platform heels and huge shopping bags, the 38-year-old was hard to miss.
Hair salons are another obvious hunting ground for Real Housewives talent. Heading the Sydney list is the first floor Double Bay digs of celebrity snipper Joh Bailey, with its hundreds of well coiffed clients who live in multi-million dollar eastern suburbs homes.
And for that vital real estate ingredient in Sydney, where property is almost a religion, why not an estate agent – perhaps D’Leanne Lewis, Alison Coopes or Victoria Morish? Although, flamboyant World Square city agent, Monika Tu, of Black Diamondz, might give the eastern suburbs gals a run for their money.
Given Sydney has so much to offer Real Housewives, Jonathan and I quickly cobbled together a list of suggestions for Foxtel’s executive director of television, Brian Walsh, who hopes Melbourne's offering enthralls, bemuses and dazzles. Hopefully the cameras don't visit Mildura too often! 
Brian Walsh needn't actually stray far from his own highrise home to find the Real Housewifes of 2011, tres girly, but should he wish to diversify the series elsewhere, here are our suggestions:
<img height="34" width="25" src="/images/stories/flagtitletat.jpg" alt="flagtitletat" style="font-size: 14px; margin: 5px; float: left;">
Real Housewives of Mosman – the lower north shore’s beautiful harbour suburb with a smorgasbord of sporting types including horse trainer Gai Waterhouse, Sally Kahlbetzer (wife of polo player Markus Kahlbetzer who paid $18 million for Mandolong House, a vast non-waterfront estate) and a gaggle of rugby wives including Erica Gregan (wife of George Gregan), Julie Kearns (wife of Phil Kearns) and Lara Eales (wife of John Eales) who all reside in magnificent homes.
<img height="34" width="25" src="/images/stories/flagtitletat.jpg" alt="flagtitletat" style="font-size: 14px; margin: 5px; float: left;">Real Housewives of Vaucluse – no shortage of talent here including Erica Packer (estranged wife of billionaire James Packer), Susie Kelly (a founder of Industrie Clothing), Sanchia Brahimi (wife of chef Guillaume Brahimi), Ann Cam (missus of carpenter Scott Cam who paid $4.6 million for a three-level residence last year), Mariana Ipkendanz (the London-based Brazillian beauty who’s yet to occupy the Peter Stutchbury designed waterfront mansion which her husband has on the market for $60 million) and breakfast radio’s Jackie O who recently renovated a $2.7 million house with husband Lee Henderson.
<img height="34" width="25" src="/images/stories/flagtitletat.jpg" alt="flagtitletat" style="font-size: 14px; margin: 5px; float: left;">Real Housewives of Sylvania Waters – no respectable wife in “The Waters” would participate in a Real Housewives show considering the infamy and repercussions for Noelene Donaher, Australia’s first reality television star who, 20 years ago, had a spectacular burst of fame after starring in the BBC fly-on-the-wall series named after the suburb. But wouldn’t it be wonderful for the Real Housewives series to snare say Susan Stevens, wife of Glenn Stevens, Governor of the Reserve Bank of Australia who apparently plays the guitar at his local Baptist Church? However, it’s much more likely that the couple would agree to participate in the fabulous ABC series, Family Confidential.
<img height="34" width="25" src="/images/stories/flagtitletat.jpg" alt="flagtitletat" style="font-size: 14px; margin: 5px; float: left;">Real Housewives of Centennial Park – a small suburb with gracious parkside mansions and a bevy of suitable Real Housewives talent including society lioness Skye Leckie (wife of former Channel Seven boss, David Leckie, who spends weekends with her family at their Southern Highlands farm), Lisa Vandenberg (wife of spin doctor/wheeler dealer Grant Vandenberg) and Catherine Honan (a daughter of squillionarie Dick Honan, chairman of the ethanol producing Manildra Group, who owns a vast Hunters Hill waterfront home and a $10.05 million weekender at Palm Beach). Pity Divonne Holmes a Court sold out a few years ago. 
<img height="34" width="25" src="/images/stories/flagtitletat.jpg" alt="flagtitletat" style="font-size: 14px; margin: 5px; float: left;">Real Housewives of Sutherland Shire – a domain of WAGS and footballers wives including Lee Furlong (wife of cricketer Shane Watson), Sara Leonardi (art gallery owner and wife of cricketer Glenn McGrath) and Rebecca Stevens (wife of footballer Jason Stevens, a celebate author who wrote Worth The Wait). Of course, Jonathan’s pick of The Shire is the genetically blessed 27-year-old celebrity model, Tahyna Tozzi, who last month tied the knot with her professional dancer fiance, Tristan McManus, while Margie’s choice is Rachel Gilbert, a fashion designer and wife of former television chippy, Tom Williams.
<img height="34" width="25" src="/images/stories/flagtitletat.jpg" alt="flagtitletat" style="font-size: 14px; margin: 5px; float: left;">Real Housewives of Palm Beach - sun kissed starlets should be easy to round up in this northern beaches peninsula playground whose circa 1880 white lighthouse and golden sands already are etched in the minds of millions of viewers who tune into the television series, Home and Away. As well as some of the most expensive and exclusive beachside holiday shacks in Sydney, Palmy has dozens of potential Real Housewives including Heidi Middleton (Sass and Bide designer), Bec Cartwright (wife of tennis player Lleyton Hewitt), Shay Lewis-Thorp (a daughter of the late property developer Bernard Lewis who owns $7.4 million beachfront holiday house), Carrie Hayes Bellotti (Aspen spa/yoga studio owner and wife of banker Steve Bellotti who own an $8.4 million Iluka Road beachfront residence) and Belinda Henry (wife of banker Paul Henry) - sadly, blonde glamourpuss Amanda Nankervis no long lives in the swanky summer playground where she once reigned supreme.

<img height="34" width="25" src="/images/stories/flagtitletat.jpg" alt="flagtitletat" style="font-size: 14px; margin: 5px; float: left;">Real Housewives of Point Piper - Angela Fleming, the widow of grocery tycoon Jim Fleming who recently bought a harboufront apartment, Tiffany Tilley, who briefly turned her hand at selling children's designer clothes, and is the wife of Ben Tilley, who has recently rekindled his friendship with old school mate, James Packer. Then you'd toss up between Julia Ross, Kristy Hinze and Jodie Meares, who still owns there on the peninsula, but might well depart when she marries the rock-star fiance, former INXS frontman Jon Stevens.
Undoubtedly Brian Walsh will find his way into Queensland. 
<img height="34" width="25" src="/images/stories/flagtitletat.jpg" alt="flagtitletat" style="font-size: 14px; margin: 5px; float: left;">Real Housewives of the Gold Coast - hard to know where to start but you'd have to find a cameo role for A-Team Gold Coast socialite Donrecka "Chanel, Chanel, Chanel" Issakidis, wife of property developer husband Michael. She once had a gold-edged Rolls Royce key.
news@propertyobserver.com.au
       
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Melbourne's Real Housewives amid Mildura grey nomad caravan push

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With the Abbott-led Coalition government set to hand down its first federal budget in May, organisations have already begun releasing their pre-budget submissions, calling for the 2014/15 budget to help boost certain sectors of the economy.
Earlier this week, the Urban Development Institute of Australia (UDIA) released a statement calling on the federal government to use the budget to help boost investment in housing and improve housing affordability. The UDIA has called for the reduction of excessive regulation, including removing barriers to land supply and lowering housing taxes and charges. Of the UDIA’s submission, UDIA national president Cameron Shepard said:
“Despite record low interest rates, the dream of homeownership is still out of reach for far too many households. We’re calling on the federal government to work with state and territory governments to address the problems holding up investment in new housing, such as constraints on land supply, poor investment in urban infrastructure, excessive red tape, and hefty taxes and charges. “In addition to improving housing affordability, increased investment in housing will create new jobs, improve business activity, and add to government revenue.  This boost to the economy and Budget bottom line will be particularly crucial over the coming years as the mining investment boom winds down.”
The organisation also called for the government to commit additional funding to the National Rent Affordability Scheme (NRAS) and the Housing Affordability Fund (HAF).
Property Observer took the question to a team of experts: “What do we need to see from the 2014/15 federal budget?”
Andrew Wilson - chief economist for <a target="_blank" href="https://apm.com.au/">Australian Property Monitors</a> <img src="/images/stories/2014/02/21/AndrewWilson-profile.jpg" width="125" height="150" alt="AndrewWilson-profile" style="float: right;">
It’s a fine balance between the need for the government to improve the budget position, with the significant deficit, and helping local economies. With growth below trend for the last couple of years, prospects for increased income are still problematic.
But we are starting to see more positive signs from the economy that may start to help improve income. The lower dollar has improved exports, certainly, with businesses starting to show positive results.
And there have been significant early initiatives from this government in cost cutting – there’s been talk of privatising Medibank, and other measures to deal with the expense side.
Keeping the deficit in line  will involve more fiscal consolidation and more cost cutting. But that may lead to issues such as public sector job losses, and there needs to be a balance, particularly given that there are some dark clouds on the horizon for parts of the economy. We’re seeing unemployment at a 12 year high in Victoria – the resource states like Queensland and Western Australia will have a brighter future, with the lower dollar.
The jury’s still out on New South Wales – it’s still a fluid situation. Low interest rates have certainly boosted housing, but there hasn’t been as much construction coming through as we might have expected.
So overall, we’re looking for some balance – there needs to be a level of cost cutting, but we need to be mindful of the local economies, and not throw out the baby with the bathwater.
 
Robert Simeon - director of <a target="_blank" href="https://www.randw.com.au/">Richardson &amp; Wrench</a> Mosman and Neutral Bay
<img src="/images/stories/2014/02/21/Robert-Simeon-profile.png" width="125" height="150" alt="Robert-Simeon-profile" style="float: right;">
The upcoming federal budget will come under greater scrutiny, given its arguably the most important for decades, given what’s happening presently in the Australian economy. There are three things I would love to see.
<ol>
<li>The appointment of a Federal Housing Minister given it's ludicrous to suggest that such a key portfolio does not warrant a Minister. </li>
<li>The Treasurer Joe Hockey to start referring to the Australian economy as an asset not a liability. For six years the LNP proclaimed to all and sundry that they could run the economy better – so now it’s time to stand - up and deliver a budget with economic vision.</li>
<li>Tony Abbott is on record when he said that he wants to be remembered as “the infrastructure prime minister”. It will be a fascinating budget to see how they marinate fiscal consolidation with a massive infrastructure spend which is what is needed now more than ever before.</li>
</ol>
One can only hope that like so many before this budget is not built on a wing and a prayer.
Article continues on next page. Please click below.
      
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Shane Oliver - chief economist at <a target="_blank" href="https://www.ampcapital.com.au/news/olivers-insights">AMP Capital<img src="/images/stories/2014/02/21/shane-oliver-profile.jpg" width="125" height="150" alt="shane-oliver-profile" style="float: right;"></a>
What we need to see at a high level is a plan to reduce the size of the budget deficit in the years ahead. But it needs to be done in way that doesn’t threaten economic growth the short term – the government should be focussed on long term measures to reduce the deficit, rather than tax hikes or “slash and burn” measures.
I certainly don’t think there should be any change to the taxation environment around property. There’s a lot of talk about the need to abolish negative gearing – but that would only further hamper our efforts to improve housing supply.
When it comes to supply, it’s really a state issue. It would be good to see the federal government working with the states, but I worry that could turn into a “motherhood” issue, because really, it’s up to the states to deal with issues to do with slow land release, stamp duty and excessive red tape.
So really, the best position the federal government could take would be “do no harm”; anything they can do to bring the states together to embark on more concrete measures to improve supply would be a good thing.
At a federal level, it’s really about the government coming up with policies that help support the economy. Obviously, they can’t go on a spending spree – they have to cut back. But any spending should focus on reinvigorating the economy; focussing government spending on infrastructure and making suburban fringes more economical to live in.
For example, Sydney’s so-called second airport. There would obviously have to be transport links to that, which could possibly open up land release, and could improve property development in those areas.
We also need to to boost productivity and keep a low interest rate environment. Part of that is ensuring more competition in the economy. We’re still sort of a protected economy, and if the government signals another round of reforms to cut down excessive regulation, that would be a good thing.
Keeping a lid on inflation in the longer term would ensure that we have a favourable environment for interest rates, which is vital for property.
 
Louis Christopher - managing research director with <a href="https://www.sqmresearch.com.au/">SQM Research</a> <img src="/images/stories/2014/02/21/Louis-Christopher-profile.jpg" width="125" height="150" alt="Louis-Christopher-profile" style="float: right;">
It’s a difficult one. It all depends on what you’re trying to achieve. I generally agree that we need to cut expenditure in certain parts of the economy – but we need to support other sectors of the economy as well.
With regard to housing, a first home owners' grant is not warranted, and we do not need that. The problem with housing is that a lot of the policies that are required are at the state level. One thing that is practical is to keep the NRAS going, with some tweaks being made to it, so dodgy developers aren’t getting involved, and so it’s organised and executed in a transparent way. The NRAS is a good idea, and we’re supporters of it.
The Liberals were the ones who first brought in the 50% discount on capital gains tax. With the view of cutting expenditures, they may wish to look at that. I also think long term they should also consider cutting company tax, and it’s going to be very difficult to do that in the current environment.
We’re being quite internationally inefficient – there are several first world countries with better tax environments that are competing for the business of big companies, while company tax here is a flat 30%. Sadly, the tax take on the productive side, which is small businesses and companies, needs to be looked at. Something along the lines of pay as you go, a proportional tax; we should see that for companies as well. The higher the amount, the higher the tax; the lower the amount, the lower the tax. That would be far fairer.
We do need to get back to a balanced budget, so some tough decisions need to be made, and we need those decisions to not be hypocritical.
<a href="mailto:jrichardson@propertyobserver.com.au" target="_blank">jrichardson@propertyobserver.com.au</a>
   
 
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What do we need to see from the federal budget? The experts have their say

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If you are just starting out in property development and haven’t yet found a builder, a good way to get a pretty good idea of what your construction costs may be is to engage a quantity surveyor (QS) to work with you in the early design stages of your project.
A QS can estimate the building cost of your development by using a trade based cost plan.
Provide your QS with architecture plans, including the engineer designs for stormwater and slabs. Your QS can then calculate all areas of your dwellings including floor, wall and roof areas.
There are literally hundreds of calculations made from the plans in order to complete the report.  The report contains a number of breakdowns so you can see for instance what the plumbing costs of the build will be.  The report contains calculations for the length of sewer drainage pipes and all the plumbing materials that will be required to connect the dwelling to the street’s service, installation of fittings and the internal pipework and stormwater drainage.
Once measurements are completed they are all combined to give a total cost of materials and labour for the project.
The QS will also break down the project into the different trades that will be needed to complete your project and apply costs to those trades.
I spoke to Bob Macansh from <a href="https://quanto.com.au/" target="_blank">Quanto Pty Limited</a> about the degree of accuracy between a builder’s quote and a cost plan.
“We receive requests for a cost plan from mum and dads wanting to build their own house right up to architects designing high density unit projects," Macansh said.
"Interesting enough, we have found that no matter the size of the project, our cost reports generally come in within 10% of the actual builder’s contract.
"We recommend our clients use the cost plan as a working tool with their builder, rather than a tool to try and prove them wrong or catch them out.  At the end of the day, you need your builder on your side as a property developer and the report gives both parties the opportunity to review cost areas to see if there are opportunities to trim build costs."
The cost report can be an important tool if you are having more than one builder quoting on your project. You can supply the report (less the costs) and ask the builders to quote on each section. This way you will be able to accurately compare quotes.
In my experience, builders prepare and present their quotes or tenders in different ways so having a template for them to provide costs on can give you the edge as a developer and determine the areas the builders are more cost effective in.
Glenn Cartwright of Quanto Pty Ltd says: "Too many times you hear of developers running out of funds before the development is completed. By having a trade based cost plan prepared by a quantity surveyor, developers can see not only how much the overall project will cost, but exactly where the costs are going. They can then alter the design as they see fit to meet their budget. It is easier to plan a realistic budget prior to commencement rather than seeking extra funds towards the completion of a construction project."
Jo Chivers is director of <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://www.propertybloom.com.au/" title="Property Bloom">Property Bloom</a>, which manages property development.
     
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How to accurately calculate the cost of your development project

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The owner and managing director of Century21 Australasia, Charles Tarbey, says that people who have taken Harry Dent's advice should be holding the US property commentator to account.
In the country to speak at the Secure the Future events in Sydney and Brisbane, Dent has <a href="https://www.propertyobserver.com.au/news/property-crash-is-like-popping-popcorn-especially-in-melbourne-harry-dent/2014020567560" target="_blank">claimed</a> that Austalian property prices will drop by up to 50% as our property market bubbles bursts.
But far from being in a "bubble", Tarbey says that our property market still hasn't experienced a full recovery. 
"He said this last year, he said this the year before, and one of these years, he’s going to be right," Tarbey said of Dent. 
"But in the meantime, you should be taking that guy to account.
"If you had have listened to Harry Dent two years ago when he came out, and you didn’t buy, you should be taking that guy to task right now, and saying 'You said, two years ago, that prices in Australia were going to drop 50%. You said that, two years ago, publicly. Why are you saying it today? I didn’t buy, when I could have bought and sold three or four properties in the last 24 months. But I didn’t because of you.'"
Australia is yet to see a real recovery in discretionary spending after the global financial crisis, said Tarbey, pointing to the sluggish performance of the holiday property market.
"When you have a holiday home, and you have your own home, and you’re forced to sell one, which is going to go first? It’s going to be the holiday home," said Tarbey.
"So the discretionary spending market and the coastal areas, and some magnificent holiday areas, drop by 50%. They haven’t actually started to recover."
According to Tarbey, we'll see real signs of a strengthening market when top end buyers in the holiday market are spending again.
"Harry Dent is wrong in the sense that we have not even had a recovery in the market," said Tarbey.
Tarbey claims that countries that are considered discretionary markets by overseas buyers tend to be the most exposed to global economic conditions, citing Spain as an example.
"There were massive, massive amounts of complexes and apartments to cater for the overseas investors and so on," said Tarbey. 
"So Spain became a large discretionary spending area for investors." And when the GFC hit, Tarbey says, it was felt in the country's property market.
"That was the first place [buyers] were going to trash and let go, and that affected the market. But Australia’s not like that.
"What Harry Dent needs to understand," said Tarbey, "is that the reality is that 90% of Australia’s population lives in capital cities.
"So there’s so much out there if we need to spread. 90% of the people in Australia live in the coast. We live in larger houses on average than our counterparts in Europe. We live in an economy that’s been stable and safe, that’s been distant from many of the other issues in the world.
"We live in an environment where we have a climate that is mild, to say the least, most of the year, not erratic like what you see in the US. And we have a political system here that’s been tried and tested and is very strong.
"Why wouldn’t you pay more to live here?"
<a target="_blank" href="mailto:jrichardson@propertyobserver.com.au">jrichardson@propertyobserver.com.au</a>
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Harry Dent is wrong and should be taken to task: Charles Tarbey

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A combination of buoyant market conditions and low interest rates is largely responsible for driving up property values over the past 12 months. 275 suburbs now have a median house value of more than $1 million. For units, the news isn’t that exciting; just eight suburbs share a median unit value of more than $1 million.
Topping the list for houses is Sydney’s Point Piper with houses recording a whopping median value now sitting at $5,817,581. Other Sydney suburbs making it to the top ten included: Woolwich, Darling Point, Centennial Park, Cremorne Point, Bellevue Hill. Peppermint Grove in WA, and Victoria-based suburbs, Deepdene and Toorak, also made the cut to the top 10.
<img src="/images/stories/2014/02/21/kusher-feb-21-one.gif" width="470" height="239" alt="kusher-feb-21-one">
Of the 212 suburbs with a median price of at least $1 million, 56% were in Sydney in New South Wales and 20% of suburbs were located in Victoria. These were then followed by Western Australia (12%), Queensland (6%), South Australia (3%), Australian Capital Territory (2%) and Northern Territory (0.5%).
Across council areas, Ku-ring-gai in Sydney has recorded the greatest number of suburbs in the million dollar club with 15 suburbs having a median price of $1 million or greater.  Other council areas with a substantial number of $1 million plus suburbs include: North Sydney (12), Woollahra (10) and Brisbane, Canada Bay and Boroondarra (each nine).
<img src="/images/stories/2014/02/21/kusher-feb-21-two.gif" width="470" height="241" alt="kusher-feb-21-two">
Although with just eight in the list of units where values reached over the one million dollar mark, it was Sydney that again scored top results in the list of best performers by exceeding the million dollar value mark. Included in the list of Sydney suburbs are Dawes Point, Point Piper, Darling Point, The Rocks, Millers Point and Huntleys Cove and Milsons Point. Brisbane riverside suburb Tennyson was the only other suburb outside of Sydney to make the top.
Just 12.4% of all capital city houses and 1.7% of regional houses sold in 2013, transacted for more than $1 million. For units it was 4.6% of capital city sales and 2.3% of regional unit sales which had a $1 million price tag.
Despite such significant media reporting about homes over $1 million, these actually account a very small portion of the overall sales within the market.
At a national level, 275 suburbs (or 6.1% of suburbs with a reported median value), have a median house value which is greater than or equal to $1 million. Nationally, only eight suburbs have a median unit value which is greater than $1 million, representing 0.4% of all suburbs.
In 2005, just 78 suburbs across the country had a price tag of $1 million or more.  In just five years, the number of $1 million plus suburbs has increased by 172%.  Victoria has recorded the greatest increase in suburbs with a $1 million price tag over the five years, increasing by 950% during the period.
<img src="/images/stories/2014/02/21/kusher-feb-21-three.gif" width="470" height="433" alt="kusher-feb-21-three">
The figures vary somewhat when looking exclusively at the capital city markets. It’s important to remember that home values tend to be much higher in the capital cities and this is where the bulk of the national population resides.
For houses, there are 271 capital city suburbs or 12.0% of all suburbs that have a median value of more than $1 million. For units, 0.6% or 8 capital city suburbs have a median value of more than $1 million. Across individual cities the current results are also quite different.
For houses, almost one in every four Sydney suburbs has a median house value of more than $1 million, in Perth the figure is 12% of suburbs and in Melbourne around one in 10 suburbs has a median value of more than $1 million. Very few suburbs have a median unit value of more than $1 million, only eight suburbs nationally. Seven of these eight suburbs are in Sydney with the remaining one in Brisbane.
Five years ago, around 5% of all suburbs nationally had a median house value which was more than $1 million and for units, 0.4% of all suburbs held a median value which was more than $1 million. By way or proportion, the five year change has been minimal with a median unit value of more than $1 million but a full one percentage point increase in the proportion of suburbs where houses have a median value of more than $1 million.
Suburbs where the median value is in excess of $1 million are quite small. However, as home values increased over the past five years so too has the number of suburbs.
With low mortgage rates and relatively high levels of buyer demand we would expect the proportion of suburbs with a median value of more than $1 million to trend higher throughout 2014. It is important to note that outside of Sydney, Melbourne and Perth suburbs with a median value of more than $1 million are a rarity.
Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
 
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Where are Australia's million dollar suburbs?

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If you own a property and are looking for a quick equity boost, or some extra rent, then adding a room might be a good option.
While this strategy suits some, not every house is going to be suited to the task. Before you even touch the toolkit, you need to hit up the numbers.
As always, head on to a listings website. You need to create an understanding in your mind about the difference between prices of say, comparative two bedroom homes and three bedroom homes that have the majority of other factors (such as land size, location and amenity) similar to yours.
Once you have worked out what this number is, you can very easily do a similar task with rental prices.
For suburbs where fewer properties transact or rent, you might find yourself collecting this data over a period of time – particularly where there is a mixture of housing types. You could also phone a local real estate agent and ask them to appraise your home and ask them how much it would add value with an extra bedroom.
Let’s assume the difference in price is $50,000 - a substantial sum, which can vary significantly between suburbs. We’ll also assume that, based on the rule of $100 rent for every $100,000 in home value, there’s an extra $50 a week in rent potentially available. We note that these are very rough sums and your result may be substantially different.
If there’s a potential $50,000 to be made, it’s certainly worth looking at.
With the $50,000 figure now in your mind, you need to turn your attention towards the property itself and consider where you can fit this extra room.
Understand what constitutes a bedroom
Of course, you can put a desk in a bedroom and call it a study, or you could put a table in there and make it a new living room, but a bedroom does have to fit certain standards. The Building Code of Australia will be a useful guide to head to.
To make it legally fit the definition of a bedroom when it comes to sell, there are a number of standards that need to be adhered to.
There are specific rules about ventilation, windows, floor space and ceiling height (2.4 metres for habitable rooms) that you need to be mindful of. Bringing in the council early, especially where permits are required, can be crucial.
Ensuring you fit these requirements is necessary, otherwise you will be legally required to sell your property as having the initial number of rooms and an extra “storage room” regardless of whether you think it is perfectly fine to be a bedroom.
Article continues on next page. Please click below.
   
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Firstly, look towards your floor plan
Cherie Barber from Renovating for Profit <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/how-to-add-%24100000-of-value-with-a-%2410000-renovation/2013093065370">has previously told us to look for a “big open space” where you can put in a cheap $1,000 wall</a>, add some paint and a bit of cleaning up and change an L-shaped room into two spaces – one of which becomes your extra bedroom.
You can also look for non load bearing walls that can be moved within a larger room to create two rooms, or an office that just needs to be slightly bigger.
Changing a room in this way is going to be your cheapest option, perhaps costing up to around $5,000, leaving you a nice $45,000 in equitable profit.
Look for alternative spaces
Garages, attics and similar spaces can be converted into bedrooms, however these can incur substantial costs – particularly if, for instance, the attic requires proper walls to be installed and windows to be put in. This can easily make the $50,000 profit potential erode, leaving you over capitalizing.
In some areas, a garage is going to be seen as an absolutely crucial aspect to your property. Turning this into a bedroom may, in fact, be detrimental to your investment – even if the numbers appear to stack up on first glance.
Other options
An extension may also be a consideration, however this is a costly measure. If you are looking to achieve substantial profit from adding a room, then you may consider this approach. This works particularly well in locations where you have a substantial sized yard and where house space commands a premium price.
Remember to factor in the length of the construction, as this is going to be a bigger project than just putting in an extra wall. You’ll also want to be particularly mindful of where you place the extension – perhaps the extension itself becomes a living area and you can convert a current living area into a bedroom.
When considering the costs to undertake any renovation, remember to factor in time that your tenant may need to be out of the property if it is currently rented. You may need to provide them a rental discount or other sort of compensation, such as alternative accommodation, to keep them on-side through all the improvements. Similarly, you may not be able to increase the rent if they are not close to the end of their lease.
You also want to make sure that the addition of an extra bedroom “makes sense” to the property that you have. If you own a three bedroom, one bathroom house, an extra bedroom may see you considering putting in an extra bathroom as well.
Remember that, just as with most renovations, it’s likely to cost you more and take you longer than expected. Ensure you have worked out the best and worst case scenarios for your profit before undertaking any work and risking over capitalizing.
Presentation
Lastly, remember that presentation is everything when it comes to offering your property to prospective buyers or tenants.
Considering staging, either professionally or on your own, to show the functionality of the space. This is particularly important if a room is small, but fits the requirements. Place beds, furniture and other necessary items to show how you envision someone using the space. Perception is everything.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
        
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How to: Increase value with an added bedroom

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Hello Margaret,
My husband and I, both 50, are considering purchasing an investment property to potentially provide us with an income for our retirement. We have two dependent children, aged 19 and 16, a combined annual income of around $200,000, a mortgage of $320,000 and our home, recently appraised, is worth about $1 million. We are paying off our mortgage at $2,200 per fortnight at 5.1%. We always clear credit card debts before interest is incurred. We have no other loans.
We both have frozen pension overseas, seven and 12 years, and both have had workplace super since returning to Australia in 2006, contributing an extra $100 per fortnight each. We have savings and shares to totaling about $10,000.
I am concerned we will need to sell the family home and downsize, in order to adequately fund our retirement. We would prefer to leave an inheritance for our two children, to enable them to each get on the property ladder before real estate eventually becomes too pricey.
I have been reading your articles over the past year and I'm not sure if we are in a position to purchase a second home, or if this is the way forward for us?
We used 10 years of (cashed in) super, to purchase and develop our first property, at the ripe age of 38 and 35, overseas, giving us a significant profit over the seven years we lived there. Ultimately, this enabled us to return to Australia and purchase our first home here in a good suburb.
Hope you can help us with some independent advice.
Kind regards,
Maria
Margaret's answer on the next page. Please click below.
 
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Hi Maria,
I'm glad you wrote to me before rushing ahead and making any major mistakes.
Firstly, I think it is imperative that you think about planning for your own retirement before you think about planning for your children's inheritance!  You are a lot older and closer to retirement than they are, and the best inheritance you can give them is parents who are financially independent and who lead by example.  Teach them how to be good investors by becoming one yourself and they won't need to inherit.
You are in an excellent position to begin investing, in fact you have been for some time so there's no time to waste.  I've done some quick calculations based upon your equity of around $700,000 and your incomes of $200,000 and, along with projected rental incomes which buying property would bring, there is no reason why you could not in fact borrow enough to buy total property to the value of around $2 million.
Now, don't rush out and do that  - just because you qualify doesn't mean you should do it! 
You must start with a strategy, an assessment of your risk profile, a plan which matches your personal circumstances, then some good quality education to enable you to become a skilled investor before you start.  If you do not follow this sequence you will be setting  yourself up as fodder for every dodgy property spruiker that you are bound to find lurking in every corner - waiting to part you with your money on property which might be right for them (due to their large commissions) but possibly wrong for you. 
Here are some things to be wary of:
<img src="/images/stories/2014/02/21/number-1.jpg" width="20" height="30" alt="number-1" style="float: left;"> Mortgage brokers giving you 'property advice' - they are licenced to give you loan advice only and largely have no qualifications or skills to assist you to invest well.  Their property recommendations are most likely being made because they will be receiving commissions from developers for anything you buy.
<img src="/images/stories/2014/02/21/number-2.jpg" width="26" height="30" alt="number-2" style="float: left;">Financial advisers giving property advice - recent changes to the law means financial advisers no longer make money from commissions, instead they must charge the client.  Some are turning to developer stock to sell to their clients, for which they receive large commissions, with no requirement in the legislation to tell you about them.
<img src="/images/stories/2014/02/21/number-3.jpg" width="22" height="30" alt="number-3" style="float: left;">Glossy brochures advertising fabulous property in areas that you cannot confirm is really a hotspot.
<img src="/images/stories/2014/02/21/number-4.jpg" width="22" height="30" alt="number-4" style="float: left;">Anyone giving you 'property advice' and selling you a property as well - it's impossible to be independent if there are commissions to be made, and these people cannot possibly have properties to sell you in a hotspot which also just happens to be perfectly matched to your own financial circumstances.
Now that I've provided all the warnings, get going!  Read some good property books and look for an adviser who offers a pure advice model.  Get educated too, but beware the spruiker seminar with the high price tag!
Regards,
Margaret
Margaret Lomas is a best-selling author and writes and hosts the popular 'Property Success With Margaret Lomas' and heads up the panel on 'Your Money, Your Call', both on Sky News.
She is the founder of <a rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
 
      
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Am I in a good position to become a property investor? Ask Margaret

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In November 2013 Australian adults working full-time were on average making $1,437.00 per week in ordinary time earnings, a jump of 2.9% in the previous 12 months.
According to Australian Bureau of Statistics figures, in ordinary terms males working full-time were earning on average $261.60 more than females.
While employees of the mining sector earned significantly more than any other sector, bringing in $2,469.60 per week.
The lowest paid industries were the retail, accommodation and food services industry, where full-time employees made on average less than $1,100 a week.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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Adult average weekly earnings on the rise

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The remainder of the 200-lot Gabriel’s Run release at the Hermitage community development in Sydney’s south west have now been sold. The sale of the final 37 lots at Gabriel’s Run marks a total of $150 million in sales for the development.
The Hermitage is to be the first Australian masterplanned community by Japanese developer and builder Sekisui House. Located in Gledswood Hills, the development is being marketed towards young families and first home buyers, with its open green spaces offered as a major drawcard.
According to Craig Barnes, estate sales and customer relations manager at The Hermitage, word of mouth has been a big driver in demand for the estate.
“More than 60% of sales are from referrals, which is certainly impressive,” Barnes said.
“The demand for land at the Hermitage has been so strong with previous releases that people had been camping outside the sales office for days. To avoid this, we asked people to first register interest and then offered them priority numbers and a personalised approach, making the weekend a lot smoother but still completely – if not more – fair.”
Buyers from the development’s Chilsolm’s Corner and Hardy’s Rise releases have now moved in. Lots in the development have averaged $275,000.
Lots in the Gabriel’s Rise release ranged from 400 square metres to 625 square metres, and were priced from $243,000.
When completed, the Hermitage will be a 312 hectare community which will include a 10 kilometre cycling path and the regenerated South Creek. The development will also include a “hilltop village”, with boutique shops, cafes, restaurants and community facilities.
The Hermitage's next release will be a new precinct, planned for Easter. 
<a target="_blank" href="mailto:jrichardson@propertyobserver.com.au">jrichardson@propertyobserver.com.au</a>
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