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.

[smartcode_project:default project_id=5743 project_image_fid=372394]

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.

[smartcode_project:default project_id=5743 project_image_fid=927]

<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.

[smartcode_project:default project_id=5743 project_image_fid=375255]

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.”

[smartcode_project:default project_id=5743 project_image_fid=375281]

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.

[smartcode_project:default project_id=5743 project_image_fid=925]

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.

[smartcode_project_cta:default project_id=5743]

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.

[smartcode_project:default project_id=145324 project_image_fid=372749]

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.

[smartcode_project:default project_id=145324 project_image_fid=354343]

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.

[smartcode_project:default project_id=145324 project_image_fid=354347]

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.

[smartcode_project:default project_id=152069 project_image_fid=374394]

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.

[smartcode_project:default project_id=152069 project_image_fid=374399]

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.

[smartcode_project_cta:default project_id=152069]

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

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

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

<html><body>
Watching The Block recently, I chuckled as the site foreman Keith was hounding the contestants for their plans so he could start on the plumbing and other rough ins (the electrical and plumbing wiring and pipes to be installed before the internal linings to the frames) when they’d barely started on the ground floor room renovation. They were complaining they barely had time to work out the day’s challenge, let alone plan the upper floors. It hit a chord as I’d been discussing the same thing with our builder today on one of Property Bloom’s house renos.
The rough in process is so important, but seemingly quite ‘boring’. You need to work out where you want pipes and drains that will support the more sexy fittings and fixtures that will come later as part of your bathroom renovation.
To get your wet areas right it’s all about the rough in, to ensure you can then position and connect the PC items in the right spot.  'PC' is the term for a prime cost item – toilet, bath, mirror, vanity, taps etc. If you get the rough in right, then the actual fit out should be pretty easy but you need a good imagination or some experience to ensure your dream design ends up the way you want it. You also need to know what fittings you will use so their specifications can be given to the plumber to refer to during the rough in, so planning ahead is essential.
<img alt="bath-feb-7-after" height="313" width="470" src="/images/stories/2014/02/07/bath-feb-7-after.jpg">
On a house reno we are currently working on, our beautifully restored 1.7 metre claw foot bath, that we found locked away behind an ugly fibro casing, is sitting in one of the bedrooms where we are painting the base after it was re-enamelled. I couldn’t just pick it up and carry it into the bathroom to position it as it’s bloody heavy, so we measured it and traced its position on the yet to be waterproofed bathroom floor, marking out the location of the plug hole so the plumber knows where to position the waste.
<img alt="bath-feb-7-before" height="313" width="470" src="/images/stories/2014/02/07/bath-feb-7-before.jpg">
While we're not changing the location of the toilet, it is being replaced with a more modern and stylish back to wall system – so the toilet waste will move a little. When installing a toilet, you will need to know the "set out" and position of the water inlet. This measurement will help you choose the size toilet you need to buy and which sizes to avoid. 
For an S trap installation (where the waste outlet is positioned on the floor) the set out is the distance measured from the finished tiled wall to the centre of the waste outlet on the floor. The set-out can vary greatly depending on the age of the house. Most new homes will have a standard set-out of about 140-165 millimetres, which will enable most toilet suites to be installed. However, if the set-out is more that 200 millimetres or less than 100 millimetres, it will limit your choice of the type of toilet you can buy.
We are working on a timber floor rather than concrete slab, so it’s a little easier to vary the position of the toilet’s waste area but you certainly need to get it right when working with a concrete slab, as the plumbing rough in is done before the slab is poured.
It’s also important to have the tapware delivered early as your plumber needs to chase in the hardware to the walls – this is also part of the rough in process.
As well as our main bathroom, we have a powder room, where we are installing just a toilet and wall mounted modern wash basin over a polished timber floor. We’ve tried to focus on a single feature piece for each bathroom – the claw foot bath is it for the main bathroom, against a floor to ceiling tiled marble look feature wall and the 750 millimetres wide wash basin beneath a large pendant light for the powder room.
Whatever your bathroom design, take time in the initial planning stages to work out the PC item positions and talk to your plumber about the rough ins so that your bathroom reno turns out smoothly.
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.
 
</body></html>

jochivers-wq5Bp59R5a

Getting the rough ins right is the key to a smooth bathroom renovation

<html><body>
Mining town Moranbah is the epitome of a typical boom-bust story, with the concept of investing in the area out of many investors’ depth.
At one point, rental yields were soaring at around 20%, a figure more reminiscent of overseas markets than anything typically seen in Australia. <a target="_blank" href="https://www.propertyobserver.com.au/queensland/moranbah-current-listings-offer-yields-nearing-20-but-future-returns-less-certain/2012112158004">However, the future’s certainty even at that time – in 2012 – was questioned</a>.
In 2013, observer Terry Ryder said that the use of fly-in, fly-out (FIFO) workers was removing pressure on local rents and prices, with BMA (BHP-Mitsubishi Alliance) planning to have just FIFO workers on two of the new mines in the basin. Workers fly or drive in for their shift, stay in temporary camps, and return home.
“<a target="_blank" href="/news">Moranbah</a> rents and prices are falling right now, with residential vacancies up around 7%. In nearby <a href="/news">Dysart</a>, vacancies are approaching 15% and rental yields, previously above 10%, are now down around 5%,” he said.
Meanwhile, John Wood, of Moranbah Real Estate, said that the market was flat and slow. But as a long time resident, while admitting that prices had fallen, said that it was “at the point where it can’t fall any further”.
Omega Investments’ Flynn de Freitas, however, believes that the market is on the cusp of the “next property boom”. This is due to billions of dollars’ worth of projects in the pipeline that will "secure the town’s future".
Interestingly, this was in a report commissioned for <a target="_blank" href="https://matsonapartments.com.au/">Matson Apartments</a> (pictured below), where it noted that the market was reaching the floor and is setting itself up for another boom.
{yoogallery src=[images/stories/2014/02/07/mor]}
“The Moranbah property market is poised for its next boom with over $17.2 billion in major infrastructure projects planned and $5.6 billion of these approved within a 60 kilometre radius of the township,” the report said.
“While Moranbah has faced a range of challenges in the last two years – including industrial strikes, extraordinary rainfall events, a ‘rental freeze’ by a major employer, a substantial drop in coal prices leading to large scale redundancies and a sea change of locals moving out of town – there are signs the market is turning as nearby coal mines return to full production and new mining projects start construction.”
De Freitas describes Moranbah’s future as ‘secured’ by a worldwide demand for metallurgical coal, a demand which is expected to rise around 20% by 2018.
“Moranbah’s economic future is looking brighter than ever,” he said.
“This large number of new mining projects in the Moranbah region is underpinning strong population growth forecasts, with over a 45% increase in the town’s population expected in the five years to 2018.”
At 13 Bacon Street, Matson Apartments, a 30 unit development with a ground floor commercial retail space, is in a proposed dining and entertainment precinct.
The units, averaging 91 square metres, are priced from $447,500 and have a $700 per week leaseback by Direct Hotels &amp; Apartments option.
The developer, Don Moffatt from Moffatt Property Development Group, said that the town is just “misunderstood”. He also says that the yield and rental guarantee have not been built into the price.
“It is an independent offering from Direct Hotels &amp; Apartments who through a subsidiary have purchased the management rights to Matson Apartments,” he said.
“Not only will residents receive exceptional on-site professional management, investors will receive above market returns.”
{qtube vid:=UYUdnGbluHY#t=35}
The expectation is for Matson to be completed in late-2014.
With a <a target="_blank" href="https://www.sqmresearch.com.au/graph_vacancy.php?postcode=moranbah&amp;t=1">vacancy rate currently recorded at 9.4% by SQM Research</a>, and more supply coming onto the market, some are asking whether this boom will actually eventuate again.
 
{module What do you think is going to happen in Moranbah?}
jduke@propertyobserver.com.au
 
 
</body></html>

jduke-EHk3XBmHkn

Busted suburb again labeled hotspot: The Moranbah debate

<html><body>
Hi Margaret, 
Can you tell me what has happened to unit rentals in Sydney over the past two years? 
Your advice is appreciated.
Kind regards, 
Peter
 
Hi Peter,
This is almost like asking ‘how long is a piece of string!
‘Sydney’ is a very large place and unit rentals can vary greatly from area to area, depending on many things including current demand, current and future supply, housing affordability, demographics and population growth.
For example, rents in <a href="/news">Double Bay</a> are 15% higher than last year while those in <a href="/news">Mosman</a> are 2% lower.  <a href="/news">Cronulla</a> sits 1% lower than last year while <a href="/news">Alexandria</a> sits 3% higher.  <a href="/news">Woolloomooloo</a> is 7% lower while <a href="/news">Parramatta</a> is 4% higher.
As an investor, it's crucial that you have a wider view of what you are buying and you must consider many aspects alongside potential rental yield. Look at areas where the population is growing faster than average but relatively few new developments are planned.
Consider buying in suburbs which have a lot of future infrastructure plans and where it seems that the services required by the demographics of the area are considered and being supplied.
And, more importantly, don’t buy a unit just because it seems to have a good yield, or it feels like a ‘cheaper’ way to get into the market.  In some areas the units grow better than the houses and in others the reverse is true. 
This is related to the kinds of people who live there – in family oriented areas houses will always get better growth and better yields, while in areas targeting couples or singles it will most likely be the units which present the better buy. 
Buying the wrong property type for the demographics could lead to a bad investment in an area which otherwise might have presented a good opportunity.
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>
</body></html>

mlomas-KC9MUPZ6Ca

What has been happening with Sydney unit rentals recently?

<html><body>
Perceptions of the family home have changed dramatically in recent years.
Once viewed as a tool to ensure low housing costs in old age, a more complex and wide-ranging welfare role for home ownership has emerged. A suite of mortgage products are transforming the family home from “bricks and mortar” into a liquid resource that owners can dip into to meet spending needs when required.
The scale of equity borrowing activity has been immense in Australia, with the total value amounting to over two-thirds of the total flow of funds from housing into the cash economy during 2001-2008.
One in five Australian owners dipped into their housing equity every year over the last decade. Home owners, particularly those in retirement transition years, have continued to withdraw equity despite the global financial crisis.
Policy pressure
Interest in withdrawing home equity has in part been driven by fiscal policy responses to our ageing population. For example, the Productivity Commission recently recommended that home owners release equity to help pay for aged care needs.
But equity borrowing is used by home owners throughout their life, not just in old age. Financial innovations have turned the family home into an “ATM”, with borrowers drawing down their housing equity as and when they choose. And so the family home is being positioned at the centre of an asset based approach to the management of lifetime welfare.
Tapping home equity can bring immense financial benefits to home owners, especially baby boomers who have reaped huge windfall gains from rising house prices across the millennium. Now approaching or in retirement, the majority are home owners. Equity borrowing could prolong their financial independence and promote “ageing in place” despite escalating age related costs such as health bills.
It can also enhance the intergenerational flow of financial benefits. For example, owner parents might roll out housing equity to help finance the education costs of children. What’s more, parents may use equity release to help fund their adult childrens’ first home deposits.
Real risks
But equity borrowing can also expose the owner to uncomfortable levels of risk, especially those who have reached or will shortly reach the end of their working careers.
Firstly, there’s the real danger of inadequate or inappropriate advice, due to the often complex nature of mortgage products.
Because equity borrowing involves additions to mortgage debt that have to be repaid in the future, borrowers also take on repayment risks. These risks are often precipitated by adverse life events such as divorce, ill-health or unemployment
Our research shows that equity borrowers approaching or in retirement (aged 45 years or over) have outstanding mortgages that are roughly 1.5 times the level owed by other similarly aged mortgagors. The drawdown of housing equity by ageing parents will also reduce bequests to adult children. Our research found this to be a source of friction that can fracture relationships between parents and children.
What’s required
Getting policy settings right is critical to help people tap their housing equity in secure ways. Misguided equity borrowing could result in growing numbers of home owners entering retirement with large outstanding mortgage debts.
Consumer understanding of equity borrowing products is essential to financially responsible management of housing wealth. Home owners cashing in housing equity should be made fully aware of the safeguards afforded to them under consumer protection laws. Currently, product disclosure details are invariably technically complex and obscure.
The intergenerational implications of equity borrowing cannot be ignored. The “great Australian dream” of owning a home is increasingly out of reach for young Australians, who have been dubbed “Generation rent”. However, those baby boomer parents that secured home ownership “careers” have reaped large windfall housing gains. A willingness to gift some of their gains to help children secure a foothold in home ownership could be the source of a growing rift among Generation rent. Home ownership prospects could come to depend more and more on parents’ housing wealth and their willingness to use equity borrowing products.
But is this growing reliance on equity borrowing products misplaced? We estimate that 642,000 individuals left home ownership between 2001 and 2010 and did not return by 2010. Many left because of financial difficulties, in part due to crippling mortgage repayments, but also precipitated by separation, divorce, ill-health and redundancy. Might it now be time for innovative mortgage products that help home buyers ride out these threats, by allowing them to swap investment returns on their home for lower housing costs?
There is a growing international interest in such financial products because they help home owners better cope with the risks that changing demographics and insecure employment conditions are inflating.
Rachel Ong is associate professor at Curtin University.
Gavin Wood is professor of housing at RMIT University.
This article was originally published at <a href="https://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/your-home-as-an-atm-home-equity-a-risky-welfare-tool-22000">original article</a>.
 
<img alt="The Conversation" height="1" src="https://counter.theconversation.edu.au/content/22000/count.gif" width="1">
</body></html>

jake-cSmGT7VXVf

Home equity is not just an "ATM", it's an uncomfortable risk

<html><body>
A rebound in activity across Australia’s property market is having a flow on effect to other industry sectors; particularly dwelling approvals where, based on recently released Australian Bureau of Statistics (ABS) results, throughout 2013 there were 177,418 residential dwelling approvals.
Australia’s economic reliance is transitioning away from the resources sector to housing construction where according to the ABS building approvals data, there has been a sharp rebound in dwelling approvals through 2013. This is exactly what the RBA was hoping for.
Based on the ABS results, there were 177,418 residential dwelling approvals in 2013; the annual number of dwelling approvals was 15.7% higher over the year which represented the greatest annual increase since January 2011. The 177,418 dwelling approvals was also the greatest number of approvals since January 2011.
A valuable point of interest in the ABS data is that a vast majority of dwelling approvals continue to be granted to the private sector, with the public sector playing little part in the construction of new homes. Over the year, 98% of all dwelling approvals were to the private sector, which is encouraging.
The improvement across the housing sector is important for a number of reasons.
Housing construction is one of the key economic pillars that policy makers are looking towards to assist with the economic transition away from mega-infrastructure projects related to the resource sector which is winding down. Additionally, housing construction provides a significant multiplier effect on the Australian economy, providing more jobs and demand for building materials, home furnishings, appliances and white goods.
Points of interest - house and unit approvals:
• More approvals were granted for units at 77,909 approvals – an increase of 23.4% over the year
• 99,508 house approvals – an increase of 10.4% over the year which was the greatest annual increase since October 2010.
<img src="/images/stories/2014/02/06/kusher-feb-6-one3.gif" alt="kusher-feb-6-one3" height="221" width="470">
Looking specifically at the 77,909 unit approvals, this was the greatest number of annual unit approvals on record. As a result, units also accounted for a record high 43.9% of all dwelling approvals throughout 2013. Placing the heightened level of unit approvals into perspective, 10 years ago 32.6% of all approvals were for units whereas 20 years ago, they accounted for 30.0% of approvals.
Clearly, there is a significant push towards higher density development and this is particularly the case within capital cities.
While 43.9% of national dwelling approvals were for units in 2013, across the combined capital cities the figure was recorded at 52.3%.
<img src="/images/stories/2014/02/06/kusher-feb-6-two.gif" alt="kusher-feb-6-two" height="236" width="470">
Looking across the individual capital cities, all recorded more than half of all approvals for units over the year:
• Sydney (69.2%)
• Melbourne (53.7%)
• Brisbane (57.5%)
• Darwin (63.2%)
• Canberra (67.2%)
• Elsewhere 33.6% of Adelaide approvals were for units, 22.1% in Perth and 25.6% in Hobart.
<img src="/images/stories/2014/02/06/kusher-feb-6-three.gif" alt="kusher-feb-6-three" height="233" width="470">
The results also show that more than 50% of approvals have been for units in Sydney since 1992, in Melbourne since mid-2012 and in Brisbane since early 2003. Sydney has for a long time had a focus on higher levels of densification whereas it is a relatively new phenomenon across other capital cities.
The shift to more unit approvals over houses is indicative of ongoing densification of our capital cities as well as developers seeking to utilise land parcels to their highest and best use which is often multi-level development.
<img src="/images/stories/2014/02/06/kusher-feb-6-four.gif" alt="kusher-feb-6-four" height="236" width="470">
On a state by state basis, dwelling approval increases have been broad-based where approvals are -4.1% lower than a year ago in Victoria (after a strong run up in approvals during 2009/10) and -8.7% lower in Hobart. In all other states, approvals are higher than a year ago; the largest increases were located in: New South Wales (27.7%), Queensland (22.0%), South Australia (22.6%), Western Australia (32.3%), Northern Territory (47.5%) and Australian Capital Territory (41.1%).
Tasmania is the only state where home values continue to trend lower and Victorian dwelling approvals have been elevated over recent years while other states have recorded low levels of approval.
Overall the ABS results are encouraging and highlight that dwelling approvals are increasing. Based on the trend, it looks as if the housing pipeline is set to continue growing.
Ongoing densification across select capital cities is also reflective of changing lifestyle patterns and growing demand for inner city living. Based on this, we would expect that the proportion of unit approvals will continue to grow as the population increases and many property purchasers show a preference for living closer to the centre of cities at more affordable prices than those available for detached houses.
Cameron Kusher is senior research analyst at <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/">RP Data</a>.
 
 
</body></html>

ckusher-ujnxiKuFQs

Australia transitioning from a reliance on the resource sector to housing construction

<html><body>
The ANZ bank’s fee for late credit card payments has been found to be "extravagant, exorbitant and unconscionable" by a Federal Court of Australia judge.
<a target="_blank" href="https://www.smartcompany.com.au/growth/economy/35473-ten-and-fairfax-look-for-happy-marriage-with-talk-of-dating-sites-merger-jp-morgan-to-pay-1-45m-to-settle-sexual-harassment-case-midday-roundup">Justice Michelle Gordon ruled yesterday</a> on a class action brought against ANZ by law firm Maurice Blackburn and funded by Bentham IMF (Australia) on behalf of over 43,000 ANZ customers.
It was ruled that the fee of $20 to $35 was much more than late payments cost the bank, which was around 50 cents to $5.50 per late payment.
Consumer group CHOICE chief executive Alan Kirkland said the decision should send a message to businesses that late fees must reflect actual costs.
"We welcome the Federal Court decision today, which should make it very clear that the days of charging excessive fees to bolster profits are over,” he said.
“It’s not the role of a business to punish customers,” he said. “We expect to see late payment fees to come down in other sectors, such as telecommunications, as a result of this decision.”
Justice Gordon found late payment fees charged more than six years ago could be claimed by customers in compensation, as they were not barred by the statute of limitations. This could lead to millions in back payments to customers.
The late credit payment fee was one of five fees in question, with the judge ruling in favour of the bank on the other four fees. The other disputed fees were over-limit fees on credit cards, as well as honour, dishonour and non-payment fees on deposit accounts for Australian customers. Justice Gordon said these fees were not illegal.
ANZ chief executive Australia Philip Chronican said in a statement he was pleased these four fees were not deemed penalties. In regard to the late payment fee ruling, Chronican said the implications were “still far from clear and it is likely to be some time until this matter is finally resolved”.
Law firm Maurice Blackburn said in a statement the ruling on the late credit card payment fine means that thousands of customers should be compensated.
It said the judgment will set the precedent for seven other Australian banks that have similar class actions awaiting them. These include the Commonwealth Bank, Westpac, NAB, BankSA, Bankwest, Citibank and St George.
Maurice Blackburn head of national class action Andrew Watson said it had been a “long tough fight”.
"What has been decided by the court will mean a better deal for bank customers from now on, and potentially a better deal for consumers more broadly where these same principles apply.”
This article first appeared on <a target="_parent" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
</body></html>

moliver-7qYWqnHmyR

Federal Court rules ANZ's late credit payment fees "extravagant, exorbitant and unconscionable"

<html><body>
Barossa Vines and its directors have been fined more than $1 million for breaching promoter penalty provisions following an investigation by the Australian Taxation Office.
The Tax Office has issued a warning to managed investment scheme operators to implement the schemes as promised, or risk high penalties.
Barossa Vines had been running a managed investment scheme and failed to carry out its wine grape growing activities in accordance with its agreed product ruling.
The company was ordered to pay a penalty of $625,000 while its four directors were made to pay $125,000 for poorly managing the scheme.
The schemes took place during 2007 and 2008 and saw investors in the scheme to pay an upfront management fee of $4400 to establish and manage a vineyard on the land.
Hundreds of investors took part in the schemes with a total of more than $20 million invested across the two schemes.
ATO deputy commissioner Tim Dyce said in a statement product rulings are designed to give people certainty about the tax consequences of their investment.
“The scheme must be implemented as it was described,” he says.
“As we discovered, this was not the case and the promoters’ actions had unfortunate consequences for investors, whose deductions were disallowed.”
The ATO has the capacity to withdraw product rulings at any time and a ruling does not give an investment a tick of approval.
Thomson Reuters tax expert Terry Hayes told SmartCompany these types of schemes were popular a few years ago.
“A lot of the heat has gone out of these managed investment schemes now. The problem arises with the product rulings – if the scheme runs in accordance with what the ATO understand, then it’s fine, but if it deviates in any way then the product ruling is no longer valid,” he says.
“When there is a variation, this means the tax consequences change, impacting upon investors.”
Hayes says in this case a number of vineyards weren’t planted in the appropriate timeframe and some had been abandoned, going against its product ruling.
In an interview with The Australian Financial Review,Dyce said the ATO is reviewing a number of similar cases and considering litigation.
“We occasionally find people will hand over $100,000 or $200,000 to somebody based on a glossy brochure and a promise,” he’s quoted as saying.
Hayes says people opt to invest in these schemes on the promise of great returns or tax deductions.
“They can offer some fairly good returns and deductions and if the ATO approves the arrangement generally they’re fine. Some people plan for a loss to reduce their tax, but not everyone can afford to sustain a loss,” he says.
“This was a big fine, I’d say probably one of the biggest which has been levied, but it’s within the parameters of what the legislation allows.”
Hayes says people running these schemes should inform the ATO if circumstances changes.
“The people managing these schemes are often doing all they can to keep them afloat, but seasonal patterns can have a big impact on agricultural schemes.”
This article first ppeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
</body></html>

yredrup-o4Anfe78KF

Barossa Vines fined $1 million following ATO investigation

<html><body>
A common mistake made by commentators, analysts and investors is to write off an entire region or state because that jurisdiction is under-performing generally.
That attitude overlooks the reality that, regardless of the overall economic or market performance of a broad region, there are always exceptions and out-performers within it.
I’m thinking in particular of South Australia. Few people rate the state or its capital city as places to explore for investment opportunities because the state overall is an economic under-achiever.
In a way it’s understandable. The only reason SA doesn’t rank last on economic indicators is that Australia also has a place called Tasmania. SA is second last in the nation on economic growth, population growth, retail trade and employment.
But, even within such an environment, there are always sub-markets that perform for local reasons. Last year <a target="_blank" href="/news">Port Lincoln</a> and <a target="_blank" href="/news">Whyalla</a>, two solid regional centres out on the Eyre Peninsula, both had strong double-digit growth in their median house prices.
And, as 2014 cranks up, property in SA is showing signs of more widespread growth, despite those poor economic indicators.
One aspect where SA is above average is building approvals. In the past 12 months they have risen 23% in SA, compared with the national average rise of 16%. Another is lending to home buyers, up 8% in the past 12 months, a little higher than the national average.
There are other signals that Adelaide markets are set to rise in 2014. Many suburbs in the SA capital have rising sales activity, as measured by the number of houses and/or apartments sold quarter by quarter.
Rising sales volumes generally translate into rising prices, with a time lag.
One standout region of Adelaide is the Onkaparinga municipality in the south, where a number of suburbs have established patterns of sales volumes rising strongly or at least steadily. Star suburbs include <a target="_blank" href="/news">Aldinga Beach</a>, <a target="_blank" href="/news">Seaford</a>, <a target="_blank" href="/news">Christie Downs</a>, <a target="_blank" href="/news">Flagstaff Hill</a> and <a target="_blank" href="/news">Woodcroft</a>.
This region is getting a massive boost from infrastructure development, with the extension of rail links south to Seaford and a major upgrade to the main road link, the Southern Expressway.
The City of Campbelltown in the north-eastern suburbs of Adelaide is another notable area for sales activity; headed by the suburbs of <a target="_blank" href="/news">Campbelltown</a>, <a target="_blank" href="/news">Tranmere</a>, <a target="_blank" href="/news">Athelstone</a>, <a target="_blank" href="/news">Magill</a>, <a target="_blank" href="/news">Newton</a> and <a target="_blank" href="/news">Paradise</a>. These locations tend to have middle-market prices with median in the $400,000s.
Regional centres with growing sales volumes include <a target="_blank" href="/news">Murray Bridge</a>, <a target="_blank" href="/news">Strathalbyn</a>, <a target="_blank" href="/news">Port Lincoln</a>, <a target="_blank" href="/news">Wallaroo</a> and the <a target="_blank" href="/news">Victor Harbor</a> area.
The appeal of South Australia for property investors includes pricing levels. Adelaide continues to be the cheapest state capital outside Hobart. Most the locations mentioned have affordable prices, as well as solid growth drivers.
Terry Ryder is the founder of <a target="_blank" href="https://www.hotspotting.com.au/" rel="nofollow">hotspotting.com.au</a>.
You can contact Terry via <a href="https://www.hotspotting.com.au/" target="_blank">email</a> or on <a href="https://twitter.com/hotspotting" target="_blank" rel="nofollow">Twitter</a>.
 
</body></html>

terryryder-YECXbqmri2

South Australia: Looking for the diamonds amongst the rough

<html><body>
Fixed rate mortgages dropped slightly in January, yet record high demand is still being seen for fixed rate loans, according to Mortgage Choice’s figures.
Throughout January, 27.43% of all loans were for fixed rates, a significant dip on December, which was 5.63% higher, however still at strong highs not seen since 200.
New South Wales borrowers were those most likely to opt for a fixed rate loan, at 33.62%. Queensland came in a close second at 30.77%. Meanwhile, Western Australia and Victoria were recorded at 21.39% and 21.20% respectively. South Australia saw 19.78% of borrowers opt for a fixed rate.
Last month, several lenders did cut the rates on a number of fixed products, such as National Australia Bank, which cut to a 20-year low of 5.44%, said spokesperson for Mortgage Choice, Jessica Darnbrough.
"If we look back at the last 10 years, on average, fixed rates accounted for 17.63% of all home loans written. So, the demand we are seeing for this type of product is currently sitting almost 10% higher than the long term average," Darnbrough said.
The strength of fixed loans is expected to continue.
"All of Australia's lenders are competing very aggressively on price within the fixed rate arena, and while this is happening more borrowers will opt to fix their mortgage,” she said.
"In the current economic environment and with the Reserve Bank keeping its cards close to its chest, it is not surprising to see a large percentage of borrowers opting for the safety of a fixed rate home loan."
You can <a target="_blank" href="https://homeloans.propertyobserver.com.au/home-loans/">see home loan comparisons here if you want to see which rates are currently available</a>.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
</body></html>

Fixed rates still the loan of choice: Mortgage Choice

<html><body>
With yesterday’s decision to keep the cash rate on hold at a current record low of 2.5%, in the longest period of stability since 2007, investors are asking what they should expect next. Unfortunately, there doesn't seem to be a particularly clear picture available.
As is always the case around interest rates, companies send out their comments in reaction to the potential circumstances expected in advance so that the media can prepare their stories. This was the first meeting of the year and <a href="https://www.propertyobserver.com.au/news/reserve-bank-keeps-rates-on-hold-in-first-meeting-of-the-year/2014020467523?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">it was generally accepted that no change would occur</a> at this February's meeting.
However, this was the first time in the most recent cycle that there was a clear split in the responses being sent through. While everyone sent through a response for the interest rates staying on hold, and of course this was commonly <a target="_blank" href="/news">expected among all of our experts surveyed</a> in the weeks prior, some only provided a rate drop alternative, while others only provided a response for if there was an increase.
This distinction makes it clear that there’s certainly mixed expectations as to what the Reserve Bank will be doing next and that there really is a division of perspectives within the market.
In fact, directly after the rate decision was made, there were already predictions for the next change being discussed.
RateCity noted that their expectation is for the next rate change to be an increase, particularly when using the actions of lenders as a gauge.
Since October 2013, 73 variable rates have increased out of cycle, while 550 fixed rates have increased.
CEO Alex Parsons said that while the recent decision wasn’t a surprise, households should be expecting the next rate move to be up, and that they should be ready to pay more for variable loans before the end of the year.
“Lenders are eager for new business and competition at the pointy end of the market remains strong. While the average basic variable rate is 5.19%, there are 25 variable home loans with rates below that,” he said.
Loan Market’s director, Mark De Martino, said this stability of rates has been encouraging buyers back into the market but that it’s largely unclear where the next movement will be as lenders are adjusting fixed rate products in opposite directions.
“For five consecutive meetings the RBA has made the right call by watching past rate cuts bring confidence back into the market. As inflation and unemployment numbers continue to make cases for rate movements in either direction, it’s not easy to predict where rates may head next,” said De Martino.
“There’s lots of posturing with fixed rates at the moment and with the daily fluctuations of the Aussie dollar, we’re seeing competition open up with lenders trying to correctly predict when this interest rate cycle will bottom out,” he said.
Interestingly, Place Advisory’s director Lachlan Walker believes that there’s likely to be no change until the second half of the year. After this time, his suggestion is that if there is any change it will be a drop.
“I can’t see the cash rate being lifted this year,” Walker said.
“If the Reserve Bank does anything to the cash rate, the only thing I expect they would do is reduce it,” he said.
“While inflation has risen a little, confidence is only starting to rebound and the Australian economy has yet to regain strength.”
He pointed to concerns around unemployment as a clear sign that there’s still a way to go before rates can be increased again.
Meanwhile, Ruan Burger, TIME Home Loans director, said that the banks maintaining or dropping their rates is a good indication that the RBA is expected to remain stable.
“As has been widely reported, many banks have dropped their fixed rates recently, including majors such as Westpac and NAB, as well as non-majors such as Citibank,” he said.
“This reduction in fixed rates is more a reflection on their costs and subsequent margins, however, and this has enabled them to factor in a drop. If they were anticipating that the cash rate would rise though, fixed rates would likely be going in the other direction.”
“The cost of money is cheap, and this is undoubtedly creating an opportunity for home buyers and investors – you really can’t say people can’t get into the market now if they don’t want to,” he said.
It seems that there’s really no general consensus on what the Reserve Bank's next likely act will be. You can <a href="/news">read more details from our expert panel, who all tipped the latest 'no change' verdict accurately</a>.
 
{module What do you think the next Reserve Bank rate movement will be?}
 
jduke@propertyobserver.com.au
 
 
</body></html>

Latest Expert Insights

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

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

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

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News