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

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

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

How Sterling Global designed 623 Collins from Melbourne's history

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

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

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

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

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<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

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A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

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The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

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

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make

The location, floorplan and price are often the first considerations, but in recent years another question has become increasingly important: who is actually delivering the project?

A series of high-profile builder collapses, construction delays and defect concerns have fundamentally changed how many Victorians approach buying off the plan. The collapse of Porter Davis in 2023, which reportedly left around 1,700 homes unfinished, became one of the most visible examples of the risks that can emerge when a construction company fails. <a href="https://www.equifax.com.au/sites/default/files/lpassets/pdf/Final-Business-Market-Pulse-June-Sector-Deep-Dive-Report-2.pdf">Similar challenges across the broader construction sector</a> have left buyers asking more questions before signing a contract.

As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.

One tool increasingly entering the conversation is the <a href="https://icirt.com/">Independent Construction Industry Rating Tool (iCIRT)</a>, an independent assessment framework designed to help buyers better understand the developer or builder behind a project. Originally developed by Equifax in consultation with government and industry as part of NSW's Construct NSW reforms, the system has since expanded nationally.

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

Most Australians are familiar with independent ratings in everyday life.

We compare ANCAP safety ratings before buying a car. We look at Health Star Ratings in supermarkets. Banks rely on credit assessments when lending money.

Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.

That gap is what iCIRT was designed to address.

Builders, developers and other construction professionals with an iCIRT rating have demonstrated high-trust characteristics through an independent, evidence-based assessment across six criteria: Character, Capability, Conduct, Capacity, Capital and Counterparties. This involves a rigorous review of financial health, past project track record, and ethical conduct. Crucially, an iCIRT rating could help provide property buyers with confidence that they are working with a professional who has demonstrated the capability, capacity, and willingness to return and rectify issues.

Importantly, iCIRT is not a recommendation to purchase a particular property, nor is it a traditional credit rating. It is an independent assessment framework designed to provide objective information about a construction business using a <a href="https://icirt.com/sites/default/files/2025-08/iCIRT-Methodology-Issue1-May-2021.pdf">published methodology</a>.

The system has been widely adopted in New South Wales, where more than one-third of medium and large residential builders and developers now hold an iCIRT rating, representing over two-thirds of the state's residential building market by value as of 2025/26.

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.

It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.

<a href="https://icirt.com/sites/default/files/2026-07/iCIRT%202025%20Consumer%20Survey%20Report%20v05.pdf">Consumer research commissioned by iCIRT</a> found more than half of respondents believed current protections do not adequately safeguard buyers from builder insolvencies or defective projects. Other research found 88 per cent of prospective buyers would seek independent ratings or due diligence before purchasing, while 90 per cent said trust in construction professionals is essential.

That doesn't mean buyers should rely on a single rating alone.

Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.

However, an independent assessment can provide another source of information alongside those traditional checks.

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

The conversation isn't only changing for buyers.

Developers are also recognising that trust has become an increasingly important part of the sales process.

Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.

Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.

For companies with strong governance and established delivery records, an independent iCIRT rating provides another way to demonstrate those credentials before buyers even visit a display suite.

According to Equifax, the assessment can also help businesses drive sales and <a href="https://icirt.com/resources-for-business/icirt-rating-helps-scion-secure-high-value-projects">secure high-value projects</a>, as well as identify operational improvements and <a href="https://icirt.com/resources-for-business/mirvac-reinforces-brand-trust-and-quality-independent-icirt-rating">attract top talent</a>.

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

The influence of independent construction ratings is also extending beyond consumers.

According to Stamford Capital's Real Estate Debt Capital Markets Survey, an increasing number of lenders now incorporate iCIRT ratings into their due diligence processes when assessing residential development finance applications.

The survey found lender adoption has continued to rise, with many respondents saying independent assessments provide additional insight into governance, counterparties and delivery capability beyond traditional financial analysis. Some lenders also reported declining funding applications where businesses had poor or no ratings.

As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

Victoria's apartment market is entering a new phase.

The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.

For buyers, that means there are more tools available than ever before to research the businesses behind a project.

For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.

Buyers are asking more questions than ever before and increasingly expecting independent information, not just marketing material, before making one of the biggest financial commitments of their lives.

Find out how to get iCIRT rated <a href="https://www.icirt.com/sites/default/files/2025-08/iCIRT-Infographic-Assessment-Process-Final.pdf">here</a>.

<hr data-end="6469" data-start="6466" />
The information contained in this article is general in nature and does not constitute personal, financial, legal or tax advice. It does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it and, where appropriate, seek independent professional advice.

This article contains links to third-party websites. These links are provided for convenience only. Equifax Australia does not control and is not responsible for the content, accuracy or privacy practices of external sites.

Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.

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

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With ASIC cracking down on potentially misleading advertisements, Media Super Limited is next to pay a penalty, of $10,200, to comply with an infringement notice.
The advertisement in question, a factsheet published in September 2012 entitled 'Self-managed super? You be the judge', was that which caused the concerns from ASIC.
The advertisement compared the costs and benefits of an SMSF with a fund through industry superfund, Media Super. It was seen on Media Super's website and was sent out to all fund members.
ASIC noted concerns that the factsheet inaccurately represented the costs and benefits of Media Super funds compared to SMSFs.
ASIC commissioner, Greg Tanzer, said that Media Super reacted quickly - removing the statements from the websites once approached, and cooperating with concerns.
"ASIC is serious about making sure investors can be confident and informed and that means cracking down on misleading or inaccurate advertising," said Tanzer.
The payment is not an admission of a contravention of the ASIC Act.
The infringment notice states that the advertisement appeared between about 1 September 2012 and 26 April 2013.
Media Super currently has a <a target="_blank" href="https://www.mediasuper.com.au/media/asic-penalty">'Need to Know' mention about the fine</a>, stating that there have been no complaints about the fact sheet and no "apparent loss to any member arising from reading the fact sheet".
They identify the error as being an accidental omission of a component of their fees.
<div class="field field-name-body field-type-text-with-summary field-label-hidden">
<div class="field-items">
<div class="field-item even">
"Media Super considers ASIC’s response in imposing a financial penalty to be an over-reaction," it notes.
"Media Super is vigilant in ensuring that it meets all of its regulatory obligations. Media Super is equally vigilant in cautioning members about the potential costs and risks of self-managed super funds, and will continue to do so."
A <a target="_blank" href="https://www.mediasuper.com.au/sites/mediasuper.com.au/files/self_managed_super._you_be_the_judge_aug_2013.pdf">version of the Media Super factsheet</a> is currently online on their website with the following statement:
"IMPORTANT UPDATE: We previously published a fact sheet on this topic that contained misleading statements. We have revised the fact sheet to enable you to make a fair comparison on the different products. It is important that you read this fact sheet and disregard the previous one."
</div>
</div>
</div>
Recently, <a target="_blank" href="https://www.propertyobserver.com.au/finance/asic-penalises-mortgage-choice-for-claims-of-saving-customers-%2410k-over-five-years/2013112766653">Mortgage Choice</a>, <a target="_blank" href="https://www.propertyobserver.com.au/finance/myrate-makes-changes-in-response-to-asic-concerns/2013120966843">MyRate</a> and <a target="_blank" href="https://www.propertyobserver.com.au/showcase/smsf-property-capital-pays-penalty-over-asic-approved-statements/2013121867016">SMSF Property Capital</a> have been penalised by ASIC for potentially misleading advertisements.
However, this isn't the first time ASIC has been taking a stand against poor form in advertising, with <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/asic-clamps-down-on-misleading-lender-advertising-and-unlicensed-mortgage-brokers/2012082756262">August 2012 seeing a clamping down on lenders</a>, specifically, for similar issues. At the time, a counted 117 from July 2010 were forced to alter or withdraw their advertising in response to similar concerns.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au </a>
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jduke-EHk3XBmHkn

Media Super Limited latest to pay penalty under ASIC misleading ad crackdown

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Unclear, complex and poorly drafted regulations and laws had hurt the National Rental Affordability Scheme, according to the first public submission to the 2014 Senate inquiry into housing affordability. 
Poor co-ordination between government departments had undermined property investor confidence, with the submission claiming "thousands"of property investors initial tax returns had been rejected by the ATO due to the NRAS complexity.?
The submission by Andrew Tyndale, a director of Grace Mutual, suggested the NRAS regulations were unduly complex. Grace Mutual Limited is a not-for-profit entity utlising wholesale funding in the social sector, in particular the financing thus far of more than 1,000 houses under NRAS.
Despite the flaws since its 2008 introduction, NRAS had resulted in significant numbers of affordable dwellings being constructed, Andrew Tyndale said.
"Regardless of criticisms of NRAS, it has resulted in the construction of at least 20,000 new affordable rental dwellings, directly positively impacting 30,000 tenants, building capacity and assets within the Community housing Sector, and creating or preserving thousands of jobs in home construction."
He added NRAS had brought affordable housing to the awareness of the general public suspicious of social housing.
"With the majority of built NRAS dwellings being sold to private investors, this has created widespread awareness of the need, the difference from social housing and the NRAS solution."
The submission noted the NRAS regulations were unduly complex, in particular the interpretation on capping of rental increases at original rental rate plus NRAS indexation for the full 10 years.
"This significantly disadvantages landlords who put in social tenants first, as they will not be able to increase rent, even if an essential worker becomes the tenant later.
"Many CHPs (community housing providers) bowed to State pressure and put social tenants into NRAS dwellings in the early days.
"Another example is the rejection of thousands of investor tax returns by the ATO, due to the complexity around the State’s NANE income and associated deductions.?
"Having two complex tax-related incentives (State &amp; Commonwealth) increased the complexity and cost of documentation and legal services, and raised the barriers to institutional involvement, as did linking the incentives to the NRAS Rent."
'This poor coordination between government departments undermined investor confidence.
"This occurred from the very beginning where the ATO took a hard line stance on introducing investors to benefit from NRAS, despite this being one of the foundational objectives of the program."
The submission claimed too many NRAS incentives were being wasted on university student housing.
"Large numbers of NRAS incentives (at least 4,000) were awarded for the construction of student housing.
"There appears little evidence that this has any positive impact on the middle to low-income families that were the target of the original policy."
The scheme was hoped to generate the supply of 50,000 new dwellings between July 2008 and June 2012, and the option for 50,000 more to be built subject to market demand from 2012.
 
 
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jchancellor-FAypfDUnLy

Low income NRAS incentives wasted on university student housing: Grace Mutual

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Data concluding the last 12 months of real estate activity is slowly filtering through and, not surprisingly, gains were recorded in all capital cities as well as some regional localities.
Louis Christopher was first out the ranks on New Year’s Day with a fairly comprehensive twitter update from his <a href="https://www.sqmresearch.com.au/graph_median_weeks.php?t=1">vendor sentiment index</a> - the most accurate timely indicator we have on market movements.
SQM’s index shows over the course of 2013, national asking prices increased +7.2% for houses and +2.3% for units, and whilst Canberra recorded the weakest result from all capital cities, with the asking price down -1.5% for houses and -3% for units, Sydney was unashamedly the stand out performer, with a remarkable uplift in the advertised price range across all <a href="https://www.sqmresearch.com.au/graph_median_weeks.php?sfx=&amp;region=nsw%3A%3AEastern+Suburbs&amp;t=1">regions</a>.
Additionally, ‘RP Data’s’ <a href="https://www.macrobusiness.com.au/2014/01/rp-data-december-update/">December Capital City home value index</a> hit the press, showing a gain of +9.8% nationally over the 2013 calendar year, and charting a dramatic increase of +15.2% in Sydney’s house values, compared to a more subdued +2.9% in Hobart.
The accompanying statement from ‘RP Data’ reads; “this is the fastest annual rate of value growth since August 2010, and the largest calendar year increase in values since 2009 when home values were up by 13.7%.”
According to RP Data, despite a new record median house price in both Sydney and Perth, at $655,250 and $520,000 respectively, compared to other ‘growth cycles’ this is a ‘somewhat muted’ recovery; “… home values increased by 9.8 per cent in 2013 (however) the growth follows a -3.8 per cent annual fall in values in 2011 and a further -0.4 per cent annual fall in 2012. Cumulatively, from peak to trough, capital city dwelling values were down 7.7% prior to this current growth cycle…” therefore “…although value growth has been strong compared to recent years, the current growth cycle has been somewhat muted,” Mr Kusher said.
However, this ‘muted recovery’, which according to RP Data is somewhat justified by the decline in values in both 2011 and 2012, is little consolation when you consider the gains that lead to the previous peak were initiated by the first homeowner boost, which formed part of the Rudd stimulus packages post GFC.
While the packages introduced over the period helped to buffer a rise in unemployment, the ‘FHOB’ did little more than enrich vendors and developers at the expense of inexperienced purchasers, thereby stemming any fear that house prices might suffer a significant fall, and played to the needs of an aging population who have been encouraged to use capital gains in their principle place of residence to fund retirement.
It also flooded the lower end of the property market with swathes of easy credit, arresting the downward decline and deceleration in household debt growth as the effects rippled across the rest of the segments and upgraders, downsizers, and investors all shifted seats predominantly in the second hand sector.
You don’t need to be an economic master to understand that throwing easy credit at a limited division of the market does nothing to stabilise prices over the longer term, instead working pro-cyclically to exacerbate the swings, bidding up prices and encouraging young buyers to take on an inflated percentage of mortgage debt, before the inevitable withdrawal of the grant produces the expected ‘slump.’
Albeit, it doesn’t prevent the <a href="https://www.reia.com.au/userfiles/REIA%20Pre%20Budget%20Submission%202013-14.pdf">REIA lobbying Government</a> for a return of the policy along with other ideas, such as allowing first homebuyers to access their superfund to purchase which, in the absence of substantial supply side reforms, would result in a similar effect.
Meanwhile, market analysts tend to adopt the premise that as long as prices are below, or not at, previous peaks or - as mentioned in the RP Data media release - moving as strongly as those witnessed in past cycles during which no major downturn occurred (however manipulated a prevention may have been), any upward trend is merely a ‘recovery’ and an understandable symptom of record low rates in a post GFC environment.
In other words, in an era where investment activity in the housing market is at record levels, with speculation on market movements broadly encouraged by incentives such as negative gearing and SMSF acquisitions stewing the pot, ‘up’ is good, and when it follows a downward trend it can be safely termed a ‘recovery.’
Another factor that plays into the analysis is that the heat is generally focused on contained geographical areas – such as the inner and middle ring suburbs of Sydney and Melbourne – again, allowing analysts to conclude the offsetting data from regional and outer localities balances the distortions.
As RP Data’s Melbourne analyst Robert Larocca commented in The Age “I don't think you could mistake what's happened in Melbourne over the past year as a boom. It's not been, it's been a recovery [here we go again] and we've still got some way to go [reassuring!] … there’s   a ‘vast swath of suburbs’ in middle and outer Melbourne where a dwelling - house or unit - could be bought for below the median of $563,000.”
However, whilst investors may be able to pick and choose the suburb, state, or territory they wish to leverage in order to fall in line with their budget and long term requirements, home buyers and renters are restricted to fairly limited areas where they can access their place of work, ferry the kids to the local school, and facilitate their family’s requirements – therefore if we’re to provide plentiful accommodation for our largest home buying demographic (families with children,) we must cater in a timely fashion, to both housing and infrastructure needs.
Such remarks show we have lost all sense of what ‘recovery’ really means – to paraphrase a <a href="https://www.macrobusiness.com.au/2013/11/van-onselen-vs-keen-vs-cashmore-on-property/">comment</a> made by economist <a href="https://www.debtdeflation.com/blogs/">Steve Keen</a> – being a thousand metres below the peak of Everest does not mean that prices at their current levels, are in anyway acceptable, or in need of ‘recovery.’
Purchasing a home has never been easy, however years of poor public policy by local, state, and federal government, has paved the way for a downward trend in the number of homes constructed each year - produced rapid increases in residential land values - a worrying degree of investor speculation in the established market - a consistent shortage of rental accommodation in most capital cities - an increase in over crowding of accommodation - a decrease in home ownership -a drop number of first home buyers entering ownership outside of grants and incentives - <a href="https://www.theage.com.au/national/more-baby-boomers-still-paying-off-the-house-20130817-2s3yp">double</a> the number of Australians aged 50 to 65 since the turn of the century still paying off their mortgage as they approach retirement – and this is before we have even touched upon the quality and supply of Public housing.
The fact that median house prices in most capitals are now more than six times the median income, simply highlights the long-term symptoms of a failure to adequately cater for a rising population, and ensure the options in our housing market cater for all, and not just ‘a few.’Those who entered ownership toward the start of the lending boom when it was possible to purchase and service a mortgage on a single wage for roughly 3 times the median income, have basked in the halo of the above consequences of housing policy failure, and enjoyed a substantial increase in asset wealth.
To a limited extent, this has ‘gifted’ their children’s foothold onto the ‘property ladder.’ However, it’s also promoted the dangerous cultural conception, that rising house values are a ‘public good,’ with perhaps the only niggling worry from most <a href="https://www.afr.com/Blogs/christopher_joye">mainstream economists</a>, being the pace at which they are sustainable to protect existing gains.
Read the rest of the article on the next page
 
 
 
<hr class="system-pagebreak">
 
In the face of swelling levels of unemployment and politicians who are focused on paying down Government debt at the expense of increasing levels of private debt, along with record numbers of inexperienced investors speculating on gains in the established sector, this is understandable. However, politicians – ever worried about their rating in the polls, will always play to the majority, as Howard openly admitted in 2007 when he delivered the comment;
“A true housing crisis in this country is when there is a sustained fall in the value of our homes and in house prices”.
What Howard failed to acknowledge, is a sustained rise in land values, funded by a dramatic increase in our house­hold debt to income ratio, which at 148%, has more than off­set any fall in inter­est rates over the resulting period, has caused a gradual erosion of affordability which has broad reaching consequences for Australia’s community as a whole. Yet, despite in-depth studies – such as the <a href="https://www.macrobusiness.com.au/2013/12/what-must-the-senate-do-about-housing-affordability/">five year old senate enquiry</a> I mentioned prior to Christmas, which was comprehensive enough to educate our political movers and shakers to some of the complexities surrounding the provision of affordable accommodation, little if anything is done.
Over the coming month, predictions on yearly market movements in each state and territory will occur from all spectrums of the property sector. Sydney is expected to continue it’s acceleration in house prices, and some analysts have picked Brisbane as this year’s ‘hotspot.’ However, I have only one prediction to offer - the ground swell from a younger generation of non-home owning residents which has gained pace throughout 2013, will continue to shift the debate on prices from one in which gains are considered ‘good’ - to one where inequality and anger will increasingly bite.
The main stream media has played into this to some extent, with one hit headlines suggesting that simply scrapping negative gearing (for example) or restricting foreign buyers alone, will be enough to solve the problem – it won’t - rather a real recovery in Australia requires significant political reform and a broad spectrum of changes (many of which <a href="https://catherinecashmore.wordpress.com/">myself</a> – along with numerous others from various advocacy groups - covered in detail last year.)
Whilst none of the above is achievable overnight – it is important we continue foster effective advocacy of the issues at hand, and push for better representation from politicians who may have personally benefitted from restricting supply, to those who recognise the social and economic inequities produced, and work consistently to push through the difficult reforms needed to fix them.
  
<hr>
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
 
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catherinecashmore-6LXia3pPQj

My predictions for 2014: Times are changing

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Every investor should be able to work out some of the most crucial aspects of property investing themselves - even if they're not a mathematician or financially trained.
Each week we will be looking at a different 'How To', from renovating to those niggly sums that you're used to Googling.
The Rental Yield
A number of rental yield calculators exist online, and while it's definitely useful to be able to quickly have a machine spit out a number, it's worth knowing the calculations that are happening behind the scenes.
What is it calculating?
Your rental yield is a quick number that lets you know how much rental return you are achieving compared to the asset's value. A $500,000 property returning $200 a week will have a worse rental yield than a $200,000 property achieving the same income. Regardless of whether you invest for cash flow or capital gains, rental yield is likely to be of interest to you.
How do I work it out?
Take your property's purchase price, and the yearly rent (weekly rent times by 52). Divide the yearly rent by the purchase price and times the result by 100 to get yourself a percentage. This percentage is your rental yield.
If you haven't purchased the property yet then using a rental estimate (from a property manager, or from your own comparisons made) and a price estimate should be able to give you a close comparison.
Example:
Purchase price: $500,000 Weekly rent: $495 Rental yield: 5.15%
Be aware
If you are provided a rental yield 'estimate', always ask for the basis of the purchase price and rent assumed behind the calculation. Note that the common calculation, as above, does not allow for any vacancies at all. You should be aware of the likelihood for vacant periods and how this will affect the return.
A quick note
A number of readers regularly ask why the gross rental yields (the above calculation), rather than net rental yields are commonly used. Net rental yields can be useful for working out the minutiae of an investment, however gross rental yield is a broad-sweeping calculation that is comparable across investments and quickly provides a return that isn't based upon an individual.
Everyone's net will be different (as it depends on your LVR, taxable income, strata levies, and a number of other considerations) and therefore it isn't practical for news outlets to use this figure unless in specific case studies. Similarly, costs can change over time and for reasons outside of your control (for example, increasing insurance premiums) as can the return (unexpected vacancies).
To calculate your net rental yield, take the annual expenses away from your rental income and then undertake the same calculation.
Now that you know how to calculate a rental yield, tomorrow we'll flesh out how to use this statistic in a little more detail and why you want to know the number before you purchase.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a> 
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Your weekly 'How To': Calculating rental yield

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Two apartment tenants in Canberra who sued their landlord for faulty airconditioning and a failure to provide Foxtel have been awarded $3788 in compensation.
The tenants, Emilio Broso and Hyeyoung Sun, signed a 12-month rental agreement for the apartment in September 2012.
They filed a case with the Australian Capital Territory Civil and Administrative Tribunal (ACAT) on 15 July 2013, seeking to terminate the residential tenancy agreement, and compensation.
According to ACAT, The tenants contacted their property manager from Ray White Canberra on December 2012, alleging that that the air-conditioning “turned itself off every 20 minutes”, but was not satisfactorily repaired until March 2013.
Due to extreme temperatures above 30°C, the tenants alleged that they were unable to to sleep because of the heat.
In addition, the tenants alleged that the premises was not properly secure, and that despite being told Foxtel was connected in the property, it was not.
The tribunal found the air-conditioning issue was a breach of the landlord’s obligations, and ruled that the tenants be compensated $3048, 65% of the rent paid during the hot months of December 2012, as well as January and February 2013.
In addition, the landlord was ordered to compensate $610 to the tenants, the equivalent of five months’ Foxtel subscription fees.
In relation to the security of the premises, the tribunal was not satisfied with the evidence presented.
Broso told Property Observer that he contacted Ray White Canberra in November 2011 about faulty airconditioning in the apartment, but it was only fixed in March 2012.
“Ray White don’t (sic) really care about us, they sent a few people to fix up the problem, but the problem wasn’t fixed up until after five months,” Broso said.
He said that they changed a number of agents in a year and that nobody knew about the problem. After winning at ACAT, he notes that he is waiting for the payment.
Broso also alleges that he spoke to the landlord recently, and the landlord was unaware of the events that transpired with the exception of a phonecall in November 2012, that informed him of the issue with the air-conditioning. 
Ray White spokesperson Lisa Pennell told Property Observer it was “not ideal” that the repair of the air-conditioning took four months.
Providing an account of the incidecent, she said on December 12 2012 the tenant reported the issue with the air-conditioning via email, and a maintenance work order was issued on the same day. However, that particular company failed to get back to Ray White by January 22 2013. Ray White then issued a separate work order to another company, who only managed to get in touch with the tenant on January 25 this year.
On February 13 this year, the company provided an update to Ray White that they were awaiting information about parts to supply a quote. The next day, on February 14, they provided an estimate that it would be cheaper to replace the air-conditioning unit than repair it.
However, on February 20, the owner responded that the air-conditioning unit was still under warranty, and instructed Ray White to contact the company handling warranty repairs. The company then undertook repair work on the air-conditioning unit, which was completed in April 2013.
Pennell also told Property Observer that there was “extensive communication” between Ray White Canberra and the landlord throughout the tenancy. 
Responding to the tenant’s claims that Ray White Canberra changed six or seven agents during his tenancy, Pennell said, “The tenant would have had contact with a number of different people within the office during the normal course of business, including a leasing agent, receptionist, and property managers. One property manager did leave during the tenancy, otherwise the staff of the office has remained consistent.  It is normal in a modern office for various parts of the property management process to be handled by different staff, and also for staff to be able to substitute for each other in times of illness or leave.” 
She added that “numerous attempts were made to mediate the conflict prior to the tribunal hearing”, but it was unsuccessful.
Pennell also noted that the tribunal’s decision to award 65% of the rent to be paid as compensation to the tenant was “perplexing”, as cooling is not listed as an urgent repair in the ACT. She also felt the decision to award compensation for Foxtel was unusual, as the lease did not stipulate Foxtel as an inclusion.
She also said the owner is “currently considering appealing the decision.”
ACAT registrar Athol Morris told Property Observer that while a 65% compensation for four months' worth of rent is an "unusually high figure", it is "well within discretion". 
"It is clear that the landlord has persistently failed to fix the airconditioning," Morris said. 
With the Foxtel issue, Morris said, " The matter was heard, both parties were represented, the member decided it was what it was worth in this case."
Lisa Indge, managing director of property management firm Let’s Rent, advises that “best practice” for tenants should always be to report all repairs in writing unless urgent.
She says property managers should induct their tenants at the beginning of the tenancy to put all repair requests in writing, and if tenants ring the office, ask for them to send an email.
“Property managers should have systems in place to ensure (cases like this) this does not occur including a requirement that tenants report repairs in writing and a system of following up outstanding work orders,” she said.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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Canberra tenants sue landlord for faulty air-conditioning

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On Monday, we looked at <a target="_blank" href="https://www.propertyobserver.com.au/finance/your-weekly-how-to-calculating-rental-yield/2014010567064">how you can work out the rental yield for a property </a>and the calculations behind the rental yield. If you haven't tried varying the rent and the price to see how it might affect the yield, it's worthwhile having a quick play with the equation.
However, what is the use for this statistic?
Comparison between properties and their return
There are a huge number of properties across the country, and when you're looking at those transacting at any one time it can still be overwhelming. When looking to buy, investors are going to need to be able to discern between the property that performs well and is likely to stack up, compared to the property that is not as profitable. While the rental yield is just one of a number of statistics to look at, and in isolation its usefulness is questionable, it's worth using this as one point to begin comparing the property.
You can also use it to compare the property against those you already own - to see how the return may look if you sold one property and bought another, or to ensure yours is not underperforming, which may be a suggestion that there is something not-quite-right about your numbers, such as your rent being set below market value.
For "yield chasing" investors - those that look for as high rental yields as possible - comparing this statistic is part of their hunt for the best property. If looking for cash flow, it's just the tip of the iceberg, with the next step being to look at potential repairs, vacancies, levies, rates and other costs that will erode this income. 
Shortlisting and benchmarking 
Ensuring your property is performing, as mentioned above, is an important aspect to look at. One way to do this is to look at the average and median statistics available for suburbs, particularly those where the properties tend to be homogenous. While the use of median statistics is hotly debated, it's an extremely quick way to cross check a figure and to ask yourself important questions as to why your rental yield is or isn't as good. You can check these statistics via our free suburb data.
You might also have certain points in your mind about what it takes for a property to fit into your portfolio and the numbers you need to achieve. The rental yield can create a part of this picture. There are many investors who require a property to have a number of aspects for them to even consider (such as <a target="_blank" href="https://www.propertyobserver.com.au/residential/why-spring-might-not-necessarily-be-the-best-time-to-sell-property-jane-slack-smith/2012081955899">Jane Slack-Smith's Trident Strategy</a>), and it is one way that you can take on the mammoth task of deciding where to invest and which properties suit. 
As a market indicator and quick alert 
Not as commonly used, but still of great benefit, is the role of the rental yield as a market indicator. Keeping an eye on how the area's median fluctuates can quickly get you asking important questions that may allow you to deduce a little more about the suburb. For instance, if the yield is increasing it doesn't necessarily mean that rents are rising - perhaps property prices are dropping? Perhaps there has been a brand new development finalised and rented for the top dollar? 
Instead of having to look at a number of different indicators, the rental yield will quickly have you crossing off different reasons. It can also be worth using your understanding of the rental yield to question when someone tells you that an increasing yield in an area is a good thing. Are they using this to cover up a drop in prices? Or is a soaring rental yield suggestive that capital gains are to follow? Looking at historical information around this statistic can also give you a different insight into the area you are considering. 
As an identifier of risk
Mining towns and regional areas have higher-than-the-usual rental yields in common. <a target="_blank" href="/news">Moranbah</a>, for instance, saw yields of 20% at one point. Now our median statistics point us to a 7.4% and a -42.5% median price change over the last year. The <a target="_blank" href="https://www.propertyobserver.com.au/news/mining-s-clean-sweep-on-rp-data-s-10-top-rental-yield-locations/2013121867018">Top Ten rental locations from RP Data</a> were all within regional mining town precincts. Similarly, the US can also have very attractive rental yields due to their comparatively low prices - we've seen examples of around 16% rental yields.
High returns and high risk often go hand in hand, and an area or property boasting a very high rental yield should have you asking two things: 1) What is the catch? 2) If there isn't one, then why hasn't anyone else bought it yet?
If you can't satisfy these questions, then you'll want to keep on digging for answers.
jduke@propertyobserver.com.au
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How to: Use the rental yield statistic

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There are some predictions that rates are set to increase over 2014, so it's crucial to make the most of the record lows that we're in at the moment, according to RateCity.
With the official cash rate at a record low 2.5%, and borrowers 1.42% better off than January 2012, or typically $262 savings each month, it might be the time to get started on that New Year's resolution of hacking through the mortgage.
The Reserve Bank of Australia, in passing the August rate cut, gave borrowers an extra $540 a year (on a typical $300,000 mortgage).
With five cuts since January 2012, it's the time of year to put extra money back into your mortgage, notes Alex Parsons, CEO of RateCity.
“If you are paying an average rate of 6 percent interest on your mortgage over time and you’re an average tax payer, you would have to find a financial investment with a greater than 10 percent rate of return elsewhere to better off – that’s a tough gig in the current market,” said Parsons.
“If you leave the extra money on the mortgage, it comes straight off the principal and it pays off your mortgage faster," he said.
Top tips to get more from low rates:
- Pay more than your minimum repayments: This will cut the amount you owe, shortern your loan's life and save you interest. (On a $300,000 25-year loan term, paying the current average standard variable - 5.41% - with monthly repayments, it could cost $547,850 principal and interest, with steady rates. Putting the savings back in will take six years off the mortgage and save $63,545).
- Refinancing the same loan to a lower rate variable home loan, such as at 4.49%, could free up $160 per month ($1,920 per year). If put back into the loan, that's $33,000 over 25 years saved without any lifestyle impact.
- Paying down non-tax-deductible debt first, such as credit cards, is a good first approach, with average interest rates on credit cards at 17%.
Source: RateCity
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Make the most of low interest rates while they stay low

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The year 2013 has been plagued by collapses – some more notable than others due to the history of the business, the impact on staff members, or the statement the collapse makes about the state of an industry.
Many mining and construction companies crunched, while a number of prominent fashion labels such as Lisa Ho and Bettina Liano wound up.
Fitness equipment companies, printers and dairy businesses took a dive, showing how some areas were harder hit than others.
Here are 20 that made the most impact within their industry and resonated with readers.
1. <a href="https://www.smartcompany.com.au/1.%09http:/www.smartcompany.com.au/growth/economy/32958-family-owned-menswear-business-founded-in-1936-collapses-with--6-million-turnover">Brenstew</a>
In August, family-owned retail fashion business Brenstew, based in rural New South Wales and founded in 1936, collapsed, with administrators blaming tough trading conditions and a poorly-timed expansion. The company had five retail outlets in Dubbo, Tamworth and Armidale, under the brands Blowes Menswear, The Wardrobe and URXs. At the time of the administration it was reported that it turned over more than $6 million annually.
2. <a href="https://www.smartcompany.com.au/finance/31873-cleaning-company-with-2500-employees-and--92-million-turnover-collapses">Swan Services</a>
Cleaning giant Swan Services faced administration after reportedly suffering losses from a number of unprofitable contracts. The administration encompassed Cleaners QLD, Cleaners SA, Cleaners ACT, Superior Cleaners WA, Cleaners New South Wales and Cleaners Vic. All companies ceased to trade and the employment of the 2379 cleaners was terminated unless otherwise advised. The business operated for 43 years. It reported it had turnover of $92 million in the last financial year.
3. <a href="https://www.smartcompany.com.au/growth/30719-byron-bay-cookie-s--13-million-business-crumbles-into-administration">Byron Bay Cookies</a>
In March, the manufacturing arm of Byron Bay Cookies went into voluntary administration following a court notice from the ATO regarding tax debts. The 23-year-old Australian gourmet biscuit producer turned over $13 million in 2012, boasting partnerships with a number of major airlines. In July, the company was <a href="https://www.smartcompany.com.au/growth/economy/32679-byron-bay-cookie-company-bought-by-rinoldi-pasta">rescued by pasta makers Rinoldi Pasta</a>.
4. <a href="https://www.smartcompany.com.au/growth/31608-high-end-blinds-manufacturer-turning-over--4-5-million-collapses-into-administration">Lidi Group</a>
Melbourne-based high end blinds manufacturer Lidi Group collapsed in May, amid challenges in the building industry. The business was founded in 1976 and manufactured blinds for commercial and residential properties.
5. <a href="https://www.smartcompany.com.au/growth/economy/33222-king-of-knives-retail-chain-with-60-stores-collapses-into-administration-after-25-years-in-business">King of Knives</a>
Kitchenware chain King of Knives, which has operated for 25 years with 60 locations across Australia and New Zealand, went into administration in August. The business was founded in 1987 and continued to operate throughout the administration.
6. <a href="https://www.smartcompany.com.au/growth/economy/31740-retail-on-its-knees-as-iconic-70-year-old-department-store-collapses">Trims</a>
Adelaide department store Trims went into administration after 76 years of business. It was established in 1937 by Alf and John Trim and originally sold reconditioned clothing and hired out clothing, including formal wear. The family-owned clothing store had 25 staff at the time of administration, and was forced into administration after a downturn in retail left it unable to pay its suppliers, according to reports inAdelaide Now.
7. <a href="https://www.smartcompany.com.au/growth/31014-harrison-group-chain-of-14-pharmacies-and-six-medical-centres-collapses">The Harrison Group</a>
The Harrison Group, comprising 14 pharmacies and six medical centres, went into receivership in March. The group includes Harrison's Health and Beauty Pharmacies. It has pharmacies across New South Wales, Queensland, South Australia and Northern Territory, as well as a number of medical centres and a head office in Sydney.
8. <a href="https://www.smartcompany.com.au/growth/economy/31176-big-losses-from-hospital-projects-cause-nsw-construction-company-to-collapse">National Buildplan</a>
A regional family-owned construction company in New South Wales responsible for redeveloping regional hospitals across Australia collapsed in April putting 180 jobs at risk. At the time of administration, it was revealed that some of the companies 50 active projects were unprofitable, with four major projects taken resulting in substantial financial losses for the company.
9. <a href="https://www.smartcompany.com.au/growth/30467-printing-company-once-valued-at--320-million-goes-under--leaving-1-000-jobs-at-risk">Geon Group</a>
Commercial printing company Geon Group went into receivership in February, leaving the jobs of its 1000 employees at risk. The group created print catalogues and marketing material as well as mail out campaigns.
10. <a href="https://www.smartcompany.com.au/growth/economy/32568-discount-book-chain-turning-over--21-million-goes-under-after-director-s-death">Allbooks4less.com.au</a>
Two years after the local book industry was rocked by the collapse of Borders and Angus &amp; Robertson, discount book chain Allbooks4less.com.au went down. The business was turning over about $21 million a year with a retail network of 30 stores in four states. However, a variety of factors reportedly influenced the decision to enter administration – including the death of company director Paul Alford.
11. <a href="https://www.smartcompany.com.au/growth/economy/31918-victorian-winery-group-collapses-as-wine-industry-continues-to-get-crushed">Mornington Winery Group</a>
Victorian-based Mornington Winery Group collapsed in May as the wine industry battled against a "double whammy" of high exchange rates and a consolidated retail sector. The company sought expressions of interest for the winery, cellar door and restaurant with seating capacity for 110 people. Brands in the group include Dromana Estate, Mornington Estate, 'i' Range and David Traeger.
12. <a href="https://www.smartcompany.com.au/growth/economy/33698-stop-the-press-printing-business-with--8-million-in-turnover-in-administration">Print National</a>
Printing company Print National, with 35 staff and a turnover of around $8 million per year went into receivership in September. The NSW-based business offered offset and digital printing, binding, distribution and in-house design.
13. <a href="https://www.smartcompany.com.au/legal/34320-outdoor-apparel-retailer-snowgum-australia-collapses-after-89-years-in-business">Snowgum</a>
Outdoor apparel retailer Snowgum Australia collapsed in October, with a sale the core focus of the administration. The business, which had operated for 89 years, had an estimated debt to unsecured creditors of up to $2.3 million.
14. <a href="https://www.smartcompany.com.au/technology/information-technology/31763-computer-crash-it-services-company-collapses-with--3-8-million-debt">ICT</a>
Perth-based information and communication services firm ICT collapsed in May, owing unsecured creditors $3.8 million. The branches of the group employed approximately 80 people, with 55 jobs lost at the time of the administration.
15. <a href="https://www.smartcompany.com.au/growth/economy/33837-27-year-old-award-winning-sheet-metal-family-business-collapses">Advance Metal Products</a>
NSW-based sheet metal manufacturing family business Advanced Metal Products went into liquidation in late September. The business also trades under the names Bosco Storage Solutions and Boscotek, and has two engineering and manufacturing facilities and approximately 150 employees. The 27-year-old company has since been acquired by Wilson &amp; Gilkes.
16. <a href="https://www.smartcompany.com.au/growth/30519-family-owned-printing-company-turning-over--17-4-million-collapses-into-administration">Vega Colour Group</a>
Just days after Geon Group went into administration, family-owned printing company Vega Colour Group, worth 17.4 million collapsed. It was reported the company turned over $17.4 million a year. It was founded in 1960 and operated out of a factory and office space larger than 5000 square metres.
17. <a href="https://www.smartcompany.com.au/growth/economy/33854-tamar-valley-dairy-goes-under-following-turbulent-times">Tamar Valley Dairy</a>
Tasmanian-based yoghurt producer Tamar Valley Dairy collapsed in late September, with administrators pointing to slower sales and pressure on margins as causes. The 17-year-old business was established in 1996 near Launceston and has 170 employees. In November it was rescued when acquired by dairy giant <a href="https://www.smartcompany.com.au/finance/investment/34471-fonterra-saves-tamar-valley-diary-from-administration">Fonterra Australia</a>.
18. <a href="https://www.smartcompany.com.au/growth/economy/31302-australasian-telco-with--5-4-million-in-turnover-collapses">Infratel Networks</a>
Telecommunications company Infratel Networks collapsed in April, despite turning over $5.4 million in the 2012 financial year. At the time, a legal battle with a sub-contractor and debts owed to the Australian Taxation Office were reported as the likely causes. A spokesperson for the administrators told SmartCompany unsecured creditors were owed $3.8 million at the time.
19. <a href="https://www.smartcompany.com.au/growth/economy/31651-iconic-fashion-brand-lisa-ho-collapses-into-administration-after-failed-ipo">Lisa Ho</a>
One of Australia’s most prominent fashion brands collapsed this year leaving the fashion industry mourning. The company recorded $13.05 million in revenue in 2012 but made a loss of $2.3 million, which the business attributed to "one-off issues". The administration was also plagued <a href="https://www.smartcompany.com.au/growth/33007-phoenix--issue-rises-to-plague-lisa-ho-following-the-brand-s-collapse">by talk of phoenix trading</a> after the designer bought the intellectual property rights to her name and the brand.
20. <a href="https://www.smartcompany.com.au/finance/cashflow/34836-workout-world-in-administration-but-name-living-on-with-super-retail-group">Workout World</a>
Fitness equipment business Workout World collapsed into administration in December, less than a month after finalising a deal to sell its key assets to Super Retail Group. Workout World had fitness equipment showrooms across Australia, and in late November this year it sold its brand name, intellectual property, inventory and store assets to retail giant Super Retail Group. Super Retail Group announced at the time that Workout World would become part of the group's sports retailing division.
This article first appeared on <a target="_parent" href="https://www.SmartCompany.com.au">SmartCompany.</a>
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The 20 most notable collapses of 2013

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There are currently more than 15.5 million credit cards in circulation, with an average $22 billion spent on credit purchases every month in 2013, however over the holidays you need to keep a close eye on your spending, according to RateCity.

The end of January will be here before you know it, and the last thing you want is to blow 11 months of doing the right thing with your credit card in just a month, warned CEO of RateCity, Alex Parsons.
“The only way to limit the damage from credit cards is to proactively put plans in place that will minimise the cost of overspending and paying unnecessary fees,” said Parsons.
He noted that there are five common traps that can be easily avoided.
1) Be aware that shopping with a card feels different to shopping with cash
When the statement finally arrives, you’ll then realise how much you have spent – when you use the cash it’s a physical reminder, however the card can put it out of your mind.
“Where possible, use cash or a debit card. This will help you control your spending,” he said.
2) Know that minimum repayments can be costly
Parsons points to data they have collected showing that most credit cards have a minimum repayment of just 2% of the outstanding balance.
When looking at a $5,000 debt, paying the average rate of 17%, it could take 30 years to clear the debt.
“By paying the minimum, you don’t cover your interest payments and end up paying more interest overall as it takes you longer to pay off your debt. Ideally, you should pay the balance in full each month. If that’s not possible, pay as much as you can afford,” he said.
3) Cash advance features can also cost you
Cash advance features of a credit card can affect you in unexpected ways. Interest-free periods do not apply to cash advances, for instance, with often exorbitant interest being charged on these. This can be as high as 29.49%.
“But that’s not the only trap associated with cash advances. In many cases, you’ll be hit with interest as soon as you withdraw the cash as well as possibly having to pay a withdrawal fee. This fee may be a percentage of the amount you withdraw or a flat fee,” said Parsons.
4) Introductory and balance transfer deals can revert to high rates
The terms on your introductory and balance transfer credit card deals can note that you revert back to rates of almost 20% on balance transfer cards.
“There’s around a dozen 0% intro-rate credit card deals advertised at the moment, and more than 50 balance-transfer deals offering interest-free for up to 12 months, which can seem like a great way to shed the Christmas credit hangover,” he said.
“But many of these deals wouldn’t exist if the banks weren’t sure that many people will end up paying interest on the revert rates. So only use these if you’ve got the discipline to pay it off in full during the intro period and not rack up more debt."
5) Ensure you are aware of excess fees
Annual fees and interest charges are not the only costs you may be slugged with, as the way you use your card can also see you racking up more debt.
For instance, fees such as exceeding your credit limit, late payment of monthly statements, replacements for cards, using ATMs outside of your network and similar can also cause extra costs.
Spend wisely when out shopping these holidays!
<a href="mailto:Jduke@propertyobserver.com.au">Jduke@propertyobserver.com.au</a>
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Five ways to avoid blowing your home deposit with credit cards: RateCity

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Ivanhoe resident Karen Zapulla’s home has been a regular fixture during the Ivanhoe Christmas Light-up. Through the years, she has loved putting up Christmas lights to spread the joy.
A mainstay on the Zapullas’ lawn is a giant blow-up Santa. Children seem to know to look out for it – many wanted to enter the Zapullas’ front porch just to have a photo with Santa.
Karen warns against giving out lollies if you don’t want a barrage of people on your front lawn.
“You can’t have a thousand people coming to your property. If you say ‘yes’ to one, there will be another ten outside the gate,” she says. 
What is the secret to her private magical winter wonderland?
“Put as many things that will make the children go, ‘Look at that!’” she said enthusiastically.
Personally, Karen puts up strings of fairy lights, a mechanical moving reindeer that lights up at night, as well as a hand-painted nativity set in the garden. 
“That’s what Christmas is all about, you know,” she said.
Karen’s husband, Sam, does most of the heavy lifting during the run-up to the Christmas season. He climbs up to the roof to install the lights and decorations each year.
Karen notes that while Sam is still able to do it, they bring in professional help when it comes to the electrical wiring around the house, as well as the outdoor areas.
“Be very careful,” she warns.
“This is quite an established area, so there are quite a few older people who can’t do it anymore,” she said.
As for safeguarding your Christmas decorations, Karen notes that there’s no guarantee even if your front lawn is off-limits to the public. She has had a few decorations taken without her permission. 
She recalls one particular memorable incident where a beloved Father Christmas gnome was stolen.
“I was disappointed that someone had come onto our property. Funny enough, after Christmas we began getting postcards from this gnome in different places from all over New Zealand,” she reminisces.
Despite hoping that the gnome would turn up the following Christmas, the Zapulla family was disappointed.
“He never turned up again. Oh well,” Karen said.
Ultimately, Karen says the Zapullas put up Christmas decorations not just to join in the festivities in Ivanhoe. While it adds to the Christmas cheer, she believes it is a reminder to spread the joy and be thankful for what she has.
“I can still remember going out to the garden at night, and a little girl of about six or seven comes up to me and says, ‘Lady, you’re so lucky to live in such a beautiful house,’” she said.
“And you know what, I am!”
“It’s to see the magic in the children’s eyes when they look at it all. It’s a lot of work, but it was worth it,” she said.
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