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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The latest Household Financial Comfort Report from ME Bank outlines that the Reserve Bank will have time to ‘wait and see’ on rates this afternoon, as financial caution and job insecurity colour the findings of their survey.
In the top three concerns for households is job security, up 5%, to 31% of households in the six months to December 2013.
Concerns about finding a new job within a period of two months if unemployed rose 1% to 55% of the working population.
Similarly, households are remaining cautious with their finances and are avoiding risks with investments. For instance, self-noted risk avoiders came in at 37% as compared to self-noted risk takers at 18%.
Interestingly, self-funded retirees had the highest number or risk takers to risk avoiders, 32% to 19%, compared to Gen Y, 21% to 37%, Gen X, 21% to 33%, Baby Boomers, 17% to 37% and government-funded retirees at 10% to 58%.
ME Bank’s CEO, Jamie McPhee, said that the report also identified that the number of households struggling to save on a month-by-month basis increased 2% to 51%, with 46% having less than $5,000 in emergency savings funds.
With just 26% saving for a ‘rainy day’, 11% are spending more than they earn while 5% are using equity in their homes to make ends meet.
“The rise in job insecurity, a result of increasing unemployed persons and increasing casual/part-time jobs, is exacerbated by a relatively low level of household comfort with emergency cash buffers and more generally, current savings and investments,” said McPhee.
Households with savings are showing another sign of caution, with 34% paying off their debts as fast as possible.
“Notwithstanding low interest rates and rising share prices and to a lesser extent rising house prices, the findings support the case for the RBA to continue to ‘wait and see’ on official cash rates, as it looks for increased household spending and investment as the economy as a whole passes the peak in the mining investment boom,” he said.
The index saw household financial comfort at 5.52 out of 10 in December 2013.
“In terms of households, significant rises in financial comfort among retirees (up 5% to 5.4 out of 10), especially self-funded retirees (to 7.2), as well as couples with older children (up 6% to 5.7), were offset by a sharp fall in financial comfort among single parents (down 5% to 4.7), notably single parents dependent on government payments (to 3.4)”, he said.
“While retirees and couples with older children are benefitting from rising equity and to a lesser extent housing markets, single parent households are concerned by the announcement to tighten government assistance and parenting payments from 1 January 2014.”
With these indicators, the Reserve Bank is expecting to hold today. A <a target="_blank" href="https://www.propertyobserver.com.au/finance/economists-unanimously-expect-no-rate-change-but-cut-could-be-on-the-cards-this-year-finder/2014020267477">conclusion also expected by a number of economists</a>.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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jduke-EHk3XBmHkn

Job insecurity and financial caution to encourage RBA to ‘wait and see’

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The Reserve Bank of Australia (RBA) has announced that the <a target="_blank" 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">cash rate will remain unchanged this month</a>.
Ahead of the first RBA board meeting of the year, we asked a team of experts to predict the RBA’s decision. They all came back with the same answer – in February, the cash rate will stay put. Citing the economy’s shift from the resources sector to housing, historically low interest rates and the weakening Australian dollar, our experts all had it right.
<a target="_blank" href="https://www.propertyobserver.com.au/news/february-statement-by-glenn-stevens-governor-monetary-policy-decision/2014020467526?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=newsplus">RBA governor Glenn Stevens said</a> that "since the Board's previous meeting, information on the global economy has been consistent with growth having been a bit below trend in 2013, but with reasonable prospects of a pick-up this year."
Shane Oliver – Head of investment strategy and chief economist, <a href="https://www.ampcapital.com.au/home" target="_blank">AMP Capital</a> <img style="float: right;" width="125" height="150" src="/images/stories/2013/10/25/shane-oliver-profile.jpg" alt="shane-oliver-profile">
<img src="/images/stories/2014/02/04/green-tick-small.jpg" width="33" height="35" alt="green-tick-small" style="float: left;">WE’VE SEEN CLEAR EVIDENCE THAT INTEREST RATE CUTS HAVE STARTED TO GAIN TRACTION
I think they’ll leave the rate on hold – and there are several reasons. Firstly, the last rate cut was now back in August – it’s been about six months with rates on hold. Given that the Reserve Bank has already cut interest rates to record lows, it’s unlikely that they’ll like to drop them further.
I think the reality is that over recent months, we’ve seen clear evidence that interest rate cuts have started to gain traction. Housing prices picked up in the last quarter of last year, and there’s now evidence that interest rate cuts have flowed through to housing construction activity.  Consumer and business confidence has also bottomed out, while retail is beginning to pick up. The strong Australian dollar was a concern, but we have seen that weaken – in fact, last week we saw the Australian dollar drop below US 88 cents, for the first time since 2010. That coupled with strong indicators in the economy will leave the Reserve Bank feeling confident.
We might see rate hikes in the December quarter, perhaps around October. Right now, the economy is still probably not strong enough for an interest rate increase. We’ll be looking at at least 12 months of rates on hold.
 
Angie Zigomanis – Senior manager, residential, <a href="https://www.bis.com.au" target="_blank">BIS Shrapnel</a> <img style="float: right;" alt="Angie-Zigomanis--porfile" height="150" width="125" src="/images/stories/2013/10/25/Angie-Zigomanis--porfile.jpg">
<img style="float: left;" alt="green-tick-small" height="35" width="33" src="/images/stories/2014/02/04/green-tick-small.jpg">UNDERLYING INFLATION IS STILL LIKELY TO BE AT A COMFORTABLE LEVEL FOR THE RESERVE BANK
We do not expect the Reserve Bank to change interest rates at its February meeting. Headwinds still face the Australian economy. Resource sector investment is estimated to have peaked and is now tapering off, while growth in other sectors of the economy is not yet picking up at a pace to sufficiently offset this decline in the short term.
Nevertheless, there are signs that the current levels of interest rates are doing their job. After declining in 2011 and 2012, house prices have stabilised and have been growing in some cities in 2013. This is encouraging new dwelling activity, with an upturn in residential construction nationally now appearing to be entrenched.
While inflation for December was a little higher than most analysts expected, there were some “one-off” factors that helped to drive the numbers, and underlying inflation is still likely to be at a comfortable level for the Reserve Bank. As a result, we expect the cash rate to be held at current levels for now.
Article continues on next page. Please click below.
 
<hr class="system-pagebreak">
Cameron Kusher – Senior research analyst, <a href="https://www.rpdata.com/" target="_blank">RP Data</a> <img style="float: right;" alt="cameron_kusher_new" height="156" width="125" src="/images/stories/2014/01/28/cameron_kusher_new.jpg">
<img style="float: left;" alt="green-tick-small" height="35" width="33" src="/images/stories/2014/02/04/green-tick-small.jpg">WE COULD SEE AN INCREASE IN THE INTEREST RATE LATER THIS YEAR
Obviously [the other week] we had some pretty confronting results. I think inflation is a lot higher than people expected. But I think generally rates will be on hold for the next few months. The RBA will want further evidence that inflation is growing, and that the economy is picking up.
They’ve said all along that what they’ve wanted to see from interest rate cuts is a handover from the resources boom to the housing sector, which they’re getting. We’re seeing higher home values.
So the likelihood is that rates will stay still for the next few months. But we could see an increase in the interest rate later this year. The RBA are pretty concerned with just how quickly Melbourne and Sydney have been growing over the past year. If home values continue to accelerate, that could move them to increase rates.
At the moment we’re seeing 2.7% annual inflation. If that starts heading up to the higher end of their target band, that would also impact interest rates. And with the Australian dollar dropping, we might start importing inflation from overseas.
Any increase in the interest rate won’t happen til the second half of the year at the absolute earliest – most probably late in the year.
 
Alex Parsons – Chief executive officer of <a href="https://www.ratecity.com.au/" target="_blank">RateCity</a> <img style="float: right;" alt="alex-parsons-profiel" height="150" width="125" src="/images/stories/2013/11/15/alex-parsons-profiel.png">
<img style="float: left;" alt="green-tick-small" height="35" width="33" src="/images/stories/2014/02/04/green-tick-small.jpg">A CUT IS OFF THE CARDS
I hate to be boring, but there will be no change in February. I think based on the inflationary figures that just came out, coupled with the property market, particularly in Sydney, a cut’s off the cards.
If we do see any movement, it’ll be a rise, but it’s too early for that – that will happen towards the end of the year. But obviously a lot can happen between now and then, in Australia’s economy and internationally.
For now though, the interest rate will stay put. Especially if we see the positivity in the market continue, and now that the dollar’s back in the range they’d like to see. Interest rates are at record lows – the RBA won’t be making any cuts over the next six to eight months.
But overall, consumers shouldn’t worry about RBA changes – they aren’t always passed on by the institutions anyway. Get out there and find out what rate you’re on, and compare it with what else is out there. You can save yourself some money, both on the borrowing side and the lending side.
And if you don’t have a four in front of your home loan interest rate today – get out and get a better one.
Article continues on next page. Please click below.
 
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Andrew Wilson – Senior economist, <a href="https://apm.com.au/" target="_blank">Australian Property Monitors  <img style="max-width: 480px; float: right;" alt="AndrewWilson-profile" height="150" width="125" src="/images/stories/2013/10/04/AndrewWilson-profile.jpg"></a>
<img style="float: left;" alt="green-tick-small" height="35" width="33" src="/images/stories/2014/02/04/green-tick-small.jpg">THE IMPROVEMENT TO ECONOMIC ACTIVITY REMAINS A WORK IN PROGRESS
Interest rates settings have been a critical element driving the ongoing revival of Australian housing markets over the past year. Cuts to interest rates in May and August 2013 to the lowest levels in 60 years fuelled home buyer and investor activity with prices growth accelerating in all capital city markets over the second half of the year.
The easing of interest rates over the past two years has been a monetary policy initiative designed to stimulate economic activity in the face of the decline in the construction phase of the mining boom that has underscored economic growth in recent years.
Easier interest rate policy was also designed to reduce the relatively high value of the Australian dollar and increase the competitiveness of Australian goods and services in export markets.
Although lower interest rates are typically a catalyst for house price growth through improved affordability,  this is designed to be offset by an increase in dwelling construction to ameliorate short-term supply-demand imbalances that adds to prices growth – and also to add to economic activity.
The improvement to economic activity through lower interest rates remains very much a work in progress which leaves further scope for another easing in monetary policy through lower interest rates.
Employment in the major states of New South Wales and Victoria continues to deteriorate. Latest ABS data reports that the number of people with jobs in both those states has declined disturbingly over the past year and continues to trend downwards.
Dwelling construction as expected has improved recently although most of the increase in activity has been in planned apartment construction in Sydney and Melbourne which will not add to the stock of housing or economic activity in the short-term. The number of new houses approved remains underwhelming considering the level of stimulus in the market.
The Reserve Bank will likely wait until more data becomes available on the unfolding underlying nature of the economy in 2014 so an interest rate cut is unlikely in February. Although interest rates are likely to remain stable over the short-term the risks remain for another easing in monetary policy particularly if the New South Wales unemployment rate climbs above 6%.
There is certainly no realistic prospect in the foreseeable future of a rise in official interest rates despite the emergence of rising inflation.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
 
 
 
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jrichardson-uRX5hFdKfN

Interest rate stays on hold: Did our experts get it right? 

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In an ideal (and economically efficient) world, tax policy would not influence the investment or consumption choices taxpayers make. In reality, this neutrality is rarely achieved.
External factors influence choices, which then fail to conform to rational economic models; or the tax system may be deliberately used to intervene in the market to counteract inefficiencies.
In Australia owner occupiers compete with investors for housing property; and there is also competition within these groups. A small increase in the number of superannuation funds and foreign investors purchasing property can have a significant impact on demand; while first home owners are finding it increasingly difficult to enter the market. Each of these groups is impacted differently by the tax system.
Owner occupiers in front
Owner occupiers are the <a href="https://grattan.edu.au/publications/reports/post/renovating-housing-policy/" target="_blank">major beneficiaries</a> of tax concessions on housing.
The latest <a href="https://treasury.gov.au/PublicationsAndMedia/Publications/2013/TES-2012" target="_blank">tax expenditure statement</a> costed the capital gains tax (CGT) exemptions on owner-occupied housing at A$30 billion, on a par with concessional taxation of superannuation at A$30.25 billion.
The Henry Review <a href="https://www.taxreview.treasury.gov.au/content/Content.aspx?doc=html/pubs_reports.htm" target="_blank">acknowledged</a> that these tax expenditures can be justified as both contribute to people’s living standards in retirement.
However the CGT main residence exemption distorts the market as owner occupiers invest more in their residence, diverting capital from other more productive investments in the expectation of tax free capital gains.
Investors also benefit from the CGT discount, but negative gearing has a more immediate benefit. Negative gearing is the product of two of the basic design principles of our tax system.
Muddying the waters
Firstly, expenses are deducted from income in calculating the income or loss from an activity, and secondly we apply a global system under which income from all sources is aggregated to determine a taxpayer’s income for a year. Therefore, in the absence of any specific restrictions, losses from one activity can be applied to reduce the tax payable on income from other sources.
The <a href="https://www.ato.gov.au/About-ATO/Research-and-statistics/In-detail/Tax-statistics/Taxation-statistics-2010-11/?page=8#Individuals__tax" target="_blank">tax statistics for the 2010-11 year</a> show that 2.5 million rental property schedules were lodged by individuals, showing nearly A$30 billion of rental income received during the year.
The deductions claimed against this income amounted to A$37.8 billion, of which A$22 billion was interest on loans. A further A$1.8 billion was claimed as capital works deductions, which allows a write down for the capital cost of a building used to earn rental income.
There is no particular bias in the tax system to make negative gearing more beneficial for real estate than other investments: the drivers for that decision come from outside the tax system.
For example, lenders may be prepared to lend a higher proportion of the purchase price on real estate when compared to other forms of investment, thus the purchase can be more highly leveraged and the eventual capital gain will represent a higher return on funds invested. However this does presume the investor has the cash flow, often from other sources, to service the loan.
The role of CGT
Negative gearing would be less attractive if the capital gain on the sale of an investment was taxed in full.
Negative gearing is a negative cash flow, but it produces an annual tax benefit that would be clawed back if the capital was taxed when the property is sold. But CGT is generally only paid on half of the capital gain as a discount is applied when calculating how much is included in taxable income. Therefore there is an asymmetry as the full amount of any mortgage interest is allowed as a deduction when incurred, but only half of the capital gain is included as income.
The Henry Review recommended (Recommendation 14) that a 40% discount should be applied across all forms of non-business investment income, including capital gains, with a corresponding reduction in the amount of interest that could be claimed each year. This would reduce both the bias to investments that produce capital gains over income, and the incentive to leverage off negative gearing deductions.
First home owners and renters miss out
The group of prospective purchasers that is most affected by housing prices is notably absent from the discussion of tax incentives.
First home owners don’t have access to tax deductibility to subsidise interest payments, and without a windfall on the sale of another property they may have difficulty accumulating a deposit.
The effect of first home owner subsidies, however, is mixed: although it boosts the deposit the subsidy can itself be inflationary as vendor price expectations rise to take account of the subsidy.
The remaining group, renters, also face increased rents as the owners of rental properties seek a return on the capital they have invested in the property.
It has been argued that any changes to negative gearing would result in increased rents, based on rental increases between 1986 and 1988 when the Hawke government quarantined negative gearing deductions. But this is largely discredited as the <a href="https://www.asb.unsw.edu.au/research/publications/ejournaloftaxresearch/Documents/paper4_v3n1.pdf" target="_blank">evidence</a> shows there were other issues that increased demand in the Perth and Sydney markets over this time.
These current policies all affect demand, resulting in increased housing prices as investors and cashed up owner occupiers bid up the cost of housing.
What is needed is a set of policies that would stimulate the supply of housing, for example the <a href="https://www.dss.gov.au/our-responsibilities/housing-support/programs-services/national-rental-affordability-scheme" target="_blank">National Rental Affordability Scheme</a> which provides tax incentives on new housing development.
Ultimately tax reform in relation to housing will require the government to make some hard decisions.
The two issues that need to be reformed are the main residence CGT exemption and removing the ability to offset investment losses against other income. Such reform will not be successful without public support, and neither the Labor nor the new Coalition governments have been prepared to act on these proposals.
Helen Hodgson is senior lecturer, School of Tax and Business Law at the University of New South Wales.
Helen was a Member of the Legislative Assembly in WA from 1997 to 2001. She has no current affiliation with any political party.
This article was originally published at <a href="https://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/explainer-why-negative-gearing-is-bad-policy-21882" target="_blank">original article</a>.
 
 
<img alt="The Conversation" height="1" src="https://counter.theconversation.edu.au/content/21882/count.gif" width="1">
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hhodgson-WTYf8w7F7q

Who are the real winners and losers from housing tax concessions?

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One of the greatest sources of property misinformation comes when newspapers report short-term price data from a single source. 
Tremendous importance is placed on monthly median price changes in figures from one research company and sometimes even weekly price movements. 
The reality is that monthly changes are often irrelevant and it’s quite farcical to place any significance on alleged weekly movements.
Undue emphasis on monthly data from one source caused some media to declare in October that the market had peaked and the boom was likely over. More recently, figures for the December quarter from multiple sources have made nonsense of that interpretation. 
But writers and commentators continue to repeat this kind of mistake because (a) they don’t understand real estate data, and (b) they don’t care too much because it’s easy copy and a cheap headline. 
The record shows that statistics from one source can be contradicted by figures from another. When media reports both in isolation the result is confusion and misinformation. 
As one example, Australian Property Monitors says the median unit price for Darwin rose 8% last year, while RP Data says it fell 4%. One week the headline shouts that the market is booming and the following week the same newspaper says the market’s in decline. 
Having said all that, we had a rare event last week when house price figures published by APM were almost totally in line with data published earlier by RP Data. I can’t remember the last time that happened, given the variances that usually arise from different methodologies and competencies.
This time around, both sources found that the average rise in house prices across the eight capital cities was slightly under 10% in 2013.
One said Sydney rose 15.2% and the other said 15.1%. Both recorded a 5%-ish annual rise in Brisbane and both agreed Adelaide’s market had nudged ahead about 3% last year.
RP Data said Melbourne rose 8.5% and APM said 8.6%. Have they been comparing notes? If so, they didn’t consult the REIV, because that august source of “interesting” figures has claimed a rise almost double that of the two independent research sources.
Darwin’s figures were a little wider apart, with one suggesting a 5% rise and the other a 7% lift. In Perth, RP Data’s 10% increase compares with APM’s 8.5% rise. Both sources claimed moderate rises in Hobart, one suggesting 3% and other 5%.
So, according to those two sources, all eight capital cities lifted their house prices last year, mostly by moderate amounts, with the exception of Sydney which had its first strong year in a decade.
There’s less uniformity in the data on apartments, but there are some areas of near agreement. The average across the capital cities, according to APM, was a rise of 8% while RP Data said 9%. Both reckon Sydney’s market lifted about 11% and they agree that Canberra rose around 1% and Adelaide by less than 1%.  
Melbourne had a solid year with both sources, but one records a rise of 7% and the other 9%. Ditto Perth, with a rise of 6% or 9%.
Hobart fell markedly, but the degree of decline varies from 5% with RP Data to 8% with APM.
As previously mentioned, Darwin’s situation is a mystery, given that one source reports a solid rise and the other a significant decline.
The bottom line is that while this kind of data can be interesting and occasionally informative, it is more often confusing and/or misleading. And it records the recent past, which really does very little to inform the future, which is the key piece of intelligence for property investors.
As I have written before, it’s far more useful to know what’s happening with the number of sales, rather than the median prices they produce.
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://mailto:%20ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://twitter.com/hotspotting" target="_blank">Twitter</a>.
 
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terryryder-YECXbqmri2

Short-term median price data can be interesting, but more often it's confusing or misleading

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A four bedroom house on prestigious Coolong Road in Vaucluse was the week's most expensive sale, according to RP Data.
The sale at $6,550,000 was comfortably the highest fee brought in over the week, topping a five bedroom house in Kyle Bay and a a four bedroom house in Gordon by a margin of just under $4 million.
This week saw the <a target="_blank" href="https://www.propertyobserver.com.au/australian-capital-territory/auction-season-kicks-off-melbourne-and-sydney-still-strong-but-brisbanes-got-buzz/2014020367496?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">2014 property market season kick-off</a> after Melbourne and Sydney reached record-breaking heights in spring last year.
<a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/apm-s-sydney-76-auction-results-show-a-803-clearance-rate/2014020267479?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=newsplus">Sydney recorded a clearance rate of 80.3%</a>, while <a target="_blank" href="https://www.propertyobserver.com.au/victoria/apm-s-melbourne-auction-results-for-february-1-weekend/2014020267478?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=newsplus">73.6% of houses in Melbourne sold</a>, according to Australian Property Monitors.
The house at <a target="_blank" href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-vaucluse-nsw-2030/194332">6 Coolong Road, Vaucluse</a> (pictured below) was marketed as the perfect modern family home, in reference to its close proximity to public and private schools as well as nearby Vaucluse Village.
{yoogallery src=[images/stories/2014/02/03/vau]}
Inspired by Toorak architecture and set on a 835 square metre block the property features expansive terraces, a gourmet kitchen and a gas heated swimming pool.
The listing was handled by Hamish Robertson of McGrath Estate Agents.
The top five sales of the week according to RP Data
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/6_coolong_road_vaucluse_nsw_2030/7138499">6 Coolong Road, Vaucluse, NSW, 2030,</a> four-bedroom house, sold on January 29 by McGrath Estate Agents for $6.55 million
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/139_kyle_parade_kyle_bay_nsw_2221/3507027">139 Kyle Parade, Kyle Bay, NSW, 2221,</a> five-bedroom house, sold on January 29 by McGrath Estate Agents for $2.71 million  (pictured below)
{yoogallery src=[images/stories/2014/02/03/kyle]}
 
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/37a_cecil_street_gordon_nsw_2072/2522689">37a Cecil Street, Gordon, NSW, 2072,</a> four-bedroom house, sold at auction on February 1 by Century 21 Cordeau Marshall for $2.6 million  (pictured below)
{yoogallery src=[images/stories/2014/02/03/gor]}
 
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/32_knightsbridge_parade_west_paradise_point_qld_4216/6753069">32 Knightsbridge Parade West, Paradise Point, QLD, 4216,</a> five-bedroom house, sold at auction on January 28 by Ray White Sovereign Islands for $2.535 million (pictured below)
{yoogallery src=[images/stories/2014/02/03/par]}
 
<a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/4_wren_court_portsea_vic_3944/12601985">4 Wren Court, Portsea, VIC, 3944,</a> five-bedroom house, sold at auction on February 1 by Melbourne Sotheby’s International Realty for $2.275 million  (pictured below)
{yoogallery src=[images/stories/2014/02/03/por]}
<a target="_blank" href="https://mce_host/news%20@propertyobserver.com.au">news @propertyobserver.com.au</a>
 
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jake-cSmGT7VXVf

Vaucluse mansion sells for $6,550,000 the week's most expensive sale: RP Data

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The Australian Industry Group Australian Performance of Manufacturing Index contracted for the third month in a row in January, down 0.9 points to 46.7 points.
Seasonally adjusted, it remained in negative territory across all the major activity sub-indexes.
Some improvement was found in new orders and employment, with those sub-indexes contracting at a slower rate compared with December, at -48.8 and 48.3 respectively.
Some sub-sectors, however, recorded growth, including food, beverages and tobacco at 54.0, wood and paper products at 61.9, petroleum, coal, chemical and rubber products at 52.7 and non-metallic mineral products at 57.6.
Australian Industry Group chief executive Innes Willox said the year is looking challenging for manufacturers; however, some areas have positive signs of growth.
“Non-metallic minerals – which includes key building materials such as glass, bricks and cement – has improved in response to the beginnings of a lift in residential construction,” he said.
“Some encouraging signs are also evident in food and beverages manufacturing and in petroleum and chemicals manufacturing, possibly due to the lower Australian dollar over recent months.”
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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moliver-7qYWqnHmyR

Manufacturing slips for third consecutive month

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Depending on who you are talking with about the global economies commentary is either optimistic or pessimistic – this appears to be the new world order. Personally I’m on the optimistic side although I’m well aware that consumer sentiment can change in a heartbeat. The Commonwealth Bank future business index, which gauges the sentiment of midsize businesses with a turnover of $10 million to $100 million found that <a target="_blank" href="https://www.businessspectator.com.au/news/2014/1/23/australian-news/business-bullish-2014-survey" title="Bussiness bullish on 2014: Survey">business is bullish on 2014.</a> The index was 17 points in the December quarter, its highest level since the survey began in September 2011 and up from 10.8 points in the previous three months.
I don’t really care these days what weapon of choice one uses to determine what’s happening in global economies so long as we keep seeing positive consumer sentiment. <a target="_blank" href="https://www.whocrashedtheeconomy.com.au/blog/2014/01/2014-the-year-the-world-is-taken-off-life-support/" title="2014: The year that the world is taken off life support">The year that the world is taken off life support</a> is yet another interesting analogy and very hard to argue against. Despite the rejoicing the Australian economy has been dragging its feet for well over four years now so it was only a matter of time before the mode went much more up-tempo.
Gong Xi Fa Cai – The Year of the Horse is connected to travel and speedy success. It’s a good year for action, enterprise and achievement – as the horse has plenty of energy and charm. So it will be most interesting to see how dominant the Chinese buyers are in 2014.<a target="_blank" href="https://www.smh.com.au/business/property/chinese-buyers-fuelling-sydney-property-hotspot-demand-20140129-31m1b" title="Chinese buyers fuelling Sydney property hotspot demand">Chinese buyers are fueling Sydney property hotspot demand</a> and Australian banks’ lending to Chinese borrowers has soared by 75% in a year, as the industry rushes to lift its exposure to Asia’s powerhouse economy. The value of loans to Chinese borrowers on the books of Australian banks swelled by US$12.3 billion to US$28.7 billion during the year to September, figures from the Bank for International Settlements show.
More than 20,500 people from China, Hong Kong and Taiwan settled in Australia in the year to June 30, according to immigration department figures. Another 219,000 came to Australia as temporary immigrants and students, the data show.
<img style="margin: 0px auto; padding: 0px; outline-width: 0px; font-weight: inherit; font-style: inherit; font-family: inherit; display: block; max-width: 100%;" height="271" width="470" src="https://www.rwm.com.au/files/2014/01/30-01-2014-10-30-10-AM.jpg" alt="30-01-2014 10-30-10 AM" class="aligncenter size-full wp-image-8402">
<img style="margin: 0px auto; padding: 0px; outline-width: 0px; font-weight: inherit; font-style: inherit; font-family: inherit; display: block; max-width: 100%;" height="277" width="470" src="https://www.rwm.com.au/files/2014/01/30-01-2014-10-31-26-AM.jpg" alt="30-01-2014 10-31-26 AM" class="aligncenter size-full wp-image-8404">
Source: Australian Property Monitors
The APM  House Price Report for the December Quarter 2013 highlights Sydney as the absolute star performer in the house and apartment sectors. The March quarter 2014 will confirm that the Sydney property market is taking off – although we need to look closely at what is happening in Mosman. <a target="_blank" href="/news">Last year I wrote</a> that “in 2012 out of 52 weeks there were on 33 occasions more than 100 houses on the market. In 2013, Mosman only broke the 100 mark on just four occasions which explained why we had fewer houses on the market."
We work on the philosophy that only 5% of house owners are totally satisfied with the home they currently reside in and s79% “acknowledge” that they would be happy to move to a better home however it’s not a major concern or priority. The lesser the number of homes on the market resonates back through their consumer sentiment. It has become instinctively clear that this housing desire was lost in the global financial crisis (GFC) as households re-calibrated their lifestyles and requirements.
Again this is seen with the number of houses on the market this week which was quite disappointing – from last week’s 47 this week it moved to 68. This time last year the number was 79 and the year before that it was a staggering 129.
All the signs are there for an action packed 2014 property market (well in Sydney anyway).
Naturally, there will also be many conversations about that mysterious property bubble too. As we have said on countless occasions ‘yes – there will be areas that crash and burn, that’s the nature of the industry’.
Although this time around there are many more buyers than sellers which is a pretty good clue – better known as a vendors market.
Robert Simeon is a director of <a rel="nofollow" target="_blank" href="https://www.rwm.com.au/" title="RWM" style="font-size: 14px;">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a rel="nofollow" target="_blank" href="https://www.rwm.com.au/news/" title="Virtual Realty News">Virtual Realty News</a> since 2000. 
The RWM real estate model has sold in excess of $1 billion in database sales globally.
 
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robertsimeon-hRNTwJyXkQ

All signs are there for an action packed 2014 (at least in Sydney)

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Off the plan properties are becoming increasingly attractive for property investors and home buyers, and in a property market that’s heating up, it makes sense. Buy now, for today’s prices, and have a home later that’s worth more than you paid for it. If everything goes well, it can be a dream. However, if you scrimp on your research, choose the wrong development or developer, then you could be in for a nasty shock.
In this Property Observer exclusive, we asked a number of property experts, including those directly involved in development, to <a href="https://www.propertyobserver.com.au/developments/exclusive-are-off-the-plan-properties-good-investments/2013103166079" target="_blank">provide their opinion about whether off the plan can be a good investment</a>.
Opinions were strongly split; some noted that off the plan is ‘rarely’ a good investment, with others saying that if you buy wisely you will reap the returns.
“When investors buy property off the plan they are essentially buying sight unseen. So the first rule should always be to ensure the developer and builder are reputable with a track record of delivering quality buildings as specified and on time,” said John Carfi, chief executive officer of Mirvac.
Meanwhile, Todd Hunter from buyer's agency wHeregroup notes that you may be paying top dollar for a developer who is paying for a marketing company, GST and a number of other aspects before factoring in their own margin.
Our other experts spoke of needing a ‘long-term’ view, and the fact that with current grants the properties can be good for first home buyers, as well as the associated risks.
Monique Sasson, from Wakelin Property Advisory has been forthright about her belief that the majority of off the plan investments don’t work due to the lack of scarcity value.
However, she notes that there are always exceptions.
“There are always two or three examples that break the rule to prove the rule, but they do tend to be geared towards owner occupiers, many of them are seven figures, rather than what I would consider to be the garden variety investment apartment at a more affordable level for most investors.
“I'm really talking about something between $500,000 and $700,000. Whereas these ones that may have started out as off the plan would have started out as $700,000 or $800,000 investments when they were sold but they'd now be worth well and truly in excess of $1,000,000 and sometimes even $2,000,000,” <a href="https://www.propertyobserver.com.au/news/properties-that-will-double-in-value-in-seven-to-10-years-monique-sasson-wakelin/2013091265003" target="_blank">she told Property Observer</a>.
If you’re determined to buy off the plan, then there are a number of things you can do to prepare yourself and mitigate against any risk.
Article continues over page. Please click below.
 
 
<hr class="system-pagebreak">
 
How you can mitigate risk
Never treat any aspect of the marketing material as gospel.
If you are being given a price for the apartment, triple check the inclusions – ensure these are noted specifically on the contract. Be wary of ‘estimates’. If you have been provided an estimated rental return and capital growth, find out what this is based on.
Rental returns should be based on other comparative rentals currently tenanted in the area. Ensure you check the vacancy rate. Call some local property managers and ask them what sort of demand there is for you sort of property and how much they would put the weekly rent at for prospective tenants.
Capital growth prospects should not necessarily be based on past growth. Trends can change at any time, and if you’re being provided some assumption of growth in the area, be ready to ask for the research that went into this forecast. Ask other experts about their forecasts.
Similarly, compare everything provided in the marketing material against the contract. Double check the inclusions, floor plans, delivery date and anything else you believe you are entitled to.
If there is a discrepancy in any of the material, you’ll want to be taking a close look at what you’re potentially going to buy.
Have your own team
Do not rely on the experts provided to you by any development company or one-stop shop. Ensure you seek out independent accounting and legal advice. Use these experts to put any of the claims of the developer to the test, and to help you with double checking the marketing material.
You’ll also want to ask your accountant or solicitor of anything that stands out to them as unusual, or to flag any common problems with you.
Research:
The area
Researching the area in which you’re buying should be standard for any home buyer or investor. There are many fundamentals and aspects to check first (you can <a href="?option=com_googlesearch_cse&amp;q=research%20an%20area" target="_blank">see a number of our research guides here to get you started</a>).
Prices can certainly drop in suburbs and you’ll want to ensure that you’re not overpaying to begin with. You'll want to esnure that the outlook is fairly comfortable for the future prospects, particularly as you are not going to get your hands on the property for some time.
Most crucially for those looking to buy off the plan is to find out what other developments are coming online in the area, particularly those that can substantially change what you are looking at now. Will something build out the view that you’re paying a premium for (or is there the capacity in the future)?
You will also want to find out the local opinion about the development. If there has been unrest from residents for the development, something regularly seen in the more tightly held areas of Melbourne, the stigma of the new building may be hard to shake off in the future.
The developer
Treat your discussions and research about the developer as a job interview. Ask for examples of previously successful projects and remember to check that they’ve come in on time, in budget and within expectation of previous owner occupiers.
Ensure they have completed similar projects before, and, if possible, visit the development to see how closely it stacks up against their marketing material.
You’ll want to check their insurances, and run checks through Fair Trading to find out about any cases against them. We also recommend a thorough Google search to find out what is being said about them online.
Ask the developer:
-          How long have you been working in the industry and what have your other projects been?
-          What development updates should I be expecting, and who can I contact during the construction?
-          Can I speak to some of your previous clients?
-          What sort of buyers have purchased the rest of the building?
-          What interest are you receiving on this building?
-          How long did it take to get development approval?
-          Can I see your balance sheet?
The development
Opportunity cost is a hugely important aspect to bear in mind, particularly when your capital is held up as you wait for construction to complete. Have a look at the lead time on these developments.
Be wary of any changes to the initial plans and of any differences to the show home and material you’ve been presented. What ‘wriggle room’ is there for this specific development, and in the contract, for you to be provided a different apartment? Never settle on the verbal agreement, and get everything in writing.
The contract is going to be one of the main pieces of paperwork that will look after you, should you have to take further action down the track. You will also want to find out if there is the ability to make changes in consultation with the developer if you are unhappy.
Fair Trading recommends the following questions should be asked (and checked against the contract):
<ul>
<li>
Can I make changes to the finishes in the kitchen and bathroom?
</li>
<li>
Can I select appliances such as stoves and dishwashers and items such as floor and wall tiles?
</li>
<li>
Can I visit the site during construction?
</li>
<li>
If the building is finished earlier than expected, has finance been suitably arranged?
</li>
<li>
What are my rights if construction is delayed?
</li>
<li>
Is my deposit secure if the building doesn't proceed?
</li>
<li>
Can I on-sell during the construction period?
</li>
</ul>
Source: <a href="https://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owners/Buying_property/Buying_off_the_plan.page" target="_blank">Fair Trading New South Wales</a>
RealestateVIEW recommends the following checks and balances:
- Take note of the completion date
- Are there penalties if you withdraw from the contract?
- Can you visit the site during construction?
- What happens if the developer runs into financial problems, and what happens to your deposit?
Source: <a href="/guides" target="_blank">RealestateVIEW</a> 
Read more over page: Free resources and useful information
 
<hr class="system-pagebreak">
Free resources and useful information
Finally, there's plenty of free information available online that will assist you in ensuring you choose wisely. Be wary of <a href="/news">any information that simplifies the process</a> or suggests it can be done cheaply or easily.
On Property Observer we have the following available for anyone looking to buy off the plan: An eBook, with <a href="/guides" target="_blank">14 tips for buying off the plan</a>
A number of articles about new developments near you, and an <a href="https://showcase.propertyobserver.com.au/" target="_blank">Investor Showcase</a> with further details Fair Trading also has a number of useful documents, such as <a href="https://www.fairtrading.nsw.gov.au/Factsheet_print/Tenants_and_home_owners/Buying_property/FTB21_Buying_off_the_plan.pdf" target="_blank">this PDF with a two-page guideline to your off the plan basics</a>
 
YOU MAY ALSO WANT TO READ:
The <a href="https://www.propertyobserver.com.au/developments/don-t-underestimate-the-risks-in-off-the-plan-buying/2013031959692" target="_blank">risks of off the plan buying</a> should not be underestimated
Ask Margaret: <a href="https://www.propertyobserver.com.au/residential/ask-margaret-should-i-buy-off-the-plan-or-an-existing-property/2013062862801" target="_blank">Should I buy off the plan or an existing property?</a>
The three risks buyers take when they buy off the plan, and <a href="https://www.propertyobserver.com.au/developments/three-risks-buyers-take-when-they-buy-off-the-plan-%E2%80%93-and-how-to-avoid-them/2011112952599" target="_blank">how to avoid them</a>
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
 
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Considering buying an off the plan property? Read this first

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Across the board, it appears that economists expect no change in interest rates tomorrow, with nine economists surveyed by finder.com.au expecting that the Reserve Bank will hold.
Despite this, and <a href="/news">Property Observer’s recent exclusive finding the same agreement</a>, finder.com.au’s Michelle Hutchison says that there could be a cut on the cards later this year.
“It’s unusual to see variable home loan rates move outside of the Reserve Bank’s cash rate changes, with the latest lender HSBC to drop its variable rates this month. This shows that anything can happen this year as it’s now harder to predict when variable rates will move and by how much,” Hutchison said.
“But with the home loan war heating up, it’s good news for borrowers who can capitalise on the competition by comparing home loans and switching to cheaper deals, particularly when borrowers are taking on more debt.”
With the national average home loan size up 6.4% since November 2011 when compared to November 2013 using Australian Bureau of Statistics data, the highest loans in the country are in New South Wales, at $358,800, a 10% increase over the same period.
A 0.50% cut to interest rates would bring the average variable rate to 5.34%, saving $110 per month, or $39,600 over the life of the loan.
“Don’t get caught up in rate cuts because it’s the actual interest rate that matters. There are currently 33 variable rate loans under 5%, so it’s more important than ever to make sure you compare home loans regularly this year,” she said.
Read <a href="tags/rba" target="_blank">more about rate decisions here</a>.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Economists unanimously expect no rate change tomorrow, but cut could be on the cards this year: Finder

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The fashion giant Zara will open its multi-level store at Westfield Chatswood  on Thursday 13 February.

Zara's new Autumn/Winter collection will be on display.

Zara's new <a target="_blank" href="/news">Chatswood</a> home continues the international brand's strong Westfield presence with its only two other Sydney locations in Westfield Bondi Junction and Westfield Sydney.

European fashion giant Zara opened its first Australian stores in Melbourne and Sydney in 2011.
news@propertyobserver.com.au

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