High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

[smartcode_project:default project_id=5743 project_image_fid=372394]

For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

[smartcode_project:default project_id=5743 project_image_fid=927]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

[smartcode_project:default project_id=5743 project_image_fid=375255]

The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

[smartcode_project:default project_id=5743 project_image_fid=375281]

For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

[smartcode_project:default project_id=5743 project_image_fid=925]

The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

[smartcode_project_cta:default project_id=5743]

Joel Robinson

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

Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

[smartcode_project:default project_id=145324 project_image_fid=372749]

Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

[smartcode_project:default project_id=145324 project_image_fid=354343]

The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

[smartcode_project:default project_id=145324 project_image_fid=354347]

According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

[smartcode_project:default project_id=152069 project_image_fid=374394]

Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

[smartcode_project:default project_id=152069 project_image_fid=374399]

Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

[smartcode_project_cta:default project_id=152069]

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

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

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

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

<html><body>
Detached houses have now superseded units as the best performers across the capital city property markets. Up until recently unit values were showing a much stronger performance.
Across Australia’s combined capital cities over the 12 months to October, houses grew in value by 8.2% as opposed to units at 5.9%.
There’s a commonly held view that house values appreciate at a more rapid pace than unit values due to the underlying land value however, this has not necessarily been the case throughout most of the past five years.
<img src="/images/stories/2013/11/28/kusher-nov-28-one.gif" width="470" height="228" alt="kusher-nov-28-one">
These results show that capital city values over the past five years to November 2013 increased at an average annual rate of 3.7% compared to growth of 4.0% per annum across the unit market. If we look at the two previous five-year periods we see that growth in house values outstripped unit values.
Between October 1998 and October 2003, house values rose by 15.0% each year compared to unit value growth of 11.1%. Between October 2003 and October 2008 house values increased at an average annual rate of 4.9% compared to 3.6% for units.
<img src="/images/stories/2013/11/28/kusher-nov-28-two.gif" width="470" height="233" alt="kusher-nov-28-two">
Strong growth in house values over the preceding two five-year periods highlights a time when houses were typically favoured over units. However, with current mortgage rates extremely low, buyers are potentially stretching themselves financially in order to purchase a detached house rather than a unit.
It will be interesting to see if the higher level of growth reverts to units in Sydney and Melbourne over the coming year as selling prices rise and affordability becomes more challenging for detached housing.
Once we see start to see a rise in interest rates, we may also see the dynamics shift.
<img src="/images/stories/2013/11/28/kusher-nov-28-three.gif" width="470" height="228" alt="kusher-nov-28-three">
Based on these results, one of the reasons why value growth has been more closely aligned between houses and units over the past five years comes down to affordability factors.
The median selling price for a unit has consistently been between 10 and 15% lower than that of a house since early 2006.
Although this may not sound significant, the current difference is 14.8% which equates to $80,000 across the combined capital cities which is much more than a year’s average wage.
Dwelling approvals data shows that over recent years, there has been a sharp escalation in the proportion of approvals for higher density product as opposed to houses. I expect this trend to continue, largely due to the lower prices of units and increasing demand for people to live in inner city areas which are close existing transport infrastructure.
<img src="/images/stories/2013/11/28/kusher-nov-28-four.gif" width="470" height="217" alt="kusher-nov-28-four">
Based on dwelling approval data over the 12 months to September 2013, 42.4% of all dwelling approvals were for units as opposed to houses. Although houses account for the majority of dwelling approvals, the proportion of unit approvals has increased from:
• 38.9% in 2012
• 33.2% in 2007
• 34.2% in 2003
• 29.6% in 1993.
Dwelling approvals data over the past 12 months across the capital cities shows that higher density living in our major capital cities will be a central feature into the future. More than 50% of all approvals in Sydney, Melbourne, Brisbane, Darwin and Canberra were for units as opposed to houses over the 12 months to September 2013.
Although many people have aspirations of owning a house as opposed to a unit, in reality it’s becoming more and more difficult. Added to this is that  affordable housing tends to be quite a distance from CBD area. As a result we are seeing a rising prevalence of higher density construction in our major capital cities, particularly within inner city areas.
Current market conditions may lead to stronger demand from both investors and tenants and subsequent stronger levels of value growth for units as opposed to houses over the coming years.
 
<hr>
 Cameron Kusher is senior research analyst at <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/">RP Data</a>.
 
 
 
 
</body></html>

ckusher-ujnxiKuFQs

Detached houses overtake units as the best performers in capital city markets

<html><body>
CommSec chief economist Craig James said the Reserve Bank Board had received its Christmas present early this year – hence its decision yesterday to keep interest rates on hold.
"The board wanted a weaker dollar, and it has fallen US4 cents since the last board meeting. Furthermore, home building is lifting to meet higher demand, restraining growth in home prices. And the global economy continues to heal as evidenced by purchasing manager indexes.
"So, the Reserve Bank doesn’t need to touch interest rates."
As a result, the official cash rate remains at a 53-year low of 2.50%.
"Rate cuts are off the agenda – for now anyway," James said. "And it is too early to talk about the ‘normalisation’ of rates, or rate hikes. But stability is a good thing, supporting confidence levels."
James said rates are "at or near the bottom of the cycle, but rate hikes are probably quite some way off. If the economy continues to gather momentum, inflation remains under control and the Aussie dollar remains near US90c or eases further, then the Reserve Bank can happily stay on the interest rate sidelines."
The most recent rate cuts were in August (25 basis points), May 2013 (25 basis points), December 2012 (25 basis points), October 2012 (25 basis points), June 2012 (25 basis points), May 2012 (50 basis points) and November and December 2011 (each by 25 basis points).
Prior to that, James said, the Reserve Bank had lifted rates seven times from October 2009 to November 2010 – a total of 1.75 percentage points - from 3% to 4.75%.
"In the last rate-cutting cycle, the cash rate fell to a low of 3% in April 2009. In the previous rate-cutting cycle the cash rate fell to 4.25% in December 2001. In the two previous rate-cutting cycles, the cash rate fell to lows of 4.75%," he said.
"The Reserve Bank looks more closely at the variable housing rate to gauge how close rates are to ‘normal’. The variable housing rates at major banks average 5.95%, below the long-term average or “normal” rate of 7.20% and only slightly above the 41-year low of 5.75% recorded in April-May 2009."
"Since the last rate cut in August, the consumer confidence index has averaged 109.7 – the highest three-month average in three years. And it is likely that another month of interest rate stability will further support consumer confidence, and in turn, spending."
James said CommSec expects the Reserve Bank to stay on the interest rate sidelines for a while. "We hope to see further evidence that higher confidence levels are translating to higher consumer spending and hiring of staff by businesses. And there are already clear signs of a stronger housing market – home purchases, home prices and home construction."
Reserve Bank governor Glenn Stevens said global growth was running "a bit below average this year, with reasonable prospects" of a pick-up next year.
Commodity prices have declined from their peaks, but generally remain at high levels by historical standards. Inflation in most countries is well contained, he said.
"Overall, global financial conditions remain very accommodative. Volatility in financial markets has abated recently. Long-term interest rates remain very low and there is ample funding available for creditworthy borrowers."
Stevens said the economy "has been growing a bit below trend over the past year and the unemployment rate has edged higher. This is likely to persist in the near term, as the economy adjusts to lower levels of mining investment.
"Further ahead, private demand outside the mining sector is expected to increase at a faster pace, though considerable uncertainty surrounds this outlook. There has been an improvement in indicators of household and business sentiment recently, but it is still unclear how persistent this will be. Public spending is forecast to be quite weak."
Stevens said recent data on prices and wages show inflation to be consistent with the medium term target. The Bank's assessment is that this is likely to remain the case over the next one to two years.
He said an easing in monetary policy since late 2011 had supported interest-sensitive spending and asset values. "The full effects of these decisions are still coming through, and will be for a while yet. The pace of borrowing has remained relatively subdued to date, though recently there have been signs of increased demand for finance by households.
"There is also continuing evidence of a shift in savers' behaviour in response to declining returns on low-risk assets. Housing and equity markets have strengthened further over recent months, trends which should in time be supportive of investment.
"The Australian dollar, while below its level earlier in the year, is still uncomfortably high.  A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy."
Loan Market director Mark De Martino said the decision to leave rates unchanged was "the right choice, but not a straightforward one", as the RBA had to consider the economic indicators speeding up and slowing down the economy.  
He said the small falls in the dollar, and inflation remaining within its target range, were the principal factors keeping interest rates on hold to close the year.  
"Business confidence has slipped after its post-election jump and our construction and resource investment sectors are areas to watch," he said. "But, on the other hand, consumer confidence is rising and the dollar appears to be adjusting to past rate cuts, as well as several other factors.  
"A rate cut or rise would aid areas of the economy needing help, but the RBA’s holistic approach to balancing growth and inflation means it is best to keep rates steady. I think interest rate stability gives so many sectors confidence in doing business," he said.  
De Martino said he expected home loan activity to continue to set "new highs" after the Australian Bureau of Statistics reported a 40-month-high in home loan approvals in September.
<a target="_blank" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>   
</body></html>

staylor-63KgDrKwoY

Weaker dollar is an early Christmas present for the RBA: CommSec

<html><body>
You can argue the case for bravery or stupidity, yet there's always one intrepid soul willing to be that first animal into crocodile infested waters.  A treacherous crossing with potential ruin at the jaws of a true killing machine with a skill set honed over many a year, yet the crossing is worth the risk considering the green pastures that lay beyond.
Unfortunately for me I'm not on safari gazing over the banks of the Mara River in deepest Africa, but rather walking along City Road, Southbank.  In recent weeks that brave soul taking the plunge into one of the more hostile urban environments Melbourne has to offer is  <a href="http://www.yelp.com.au/biz/a-taste-of-france-southbank" target="_blank">A Taste of France</a> - to most people a French patisserie but in the eyes of Apartments.com.au a venture willing to take on a beast that has the ability to crunch and spit out any unsuspecting prey.
<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/article-2225219-15C1E831000005DC-679_964x641.jpg" rel="gallery-all" title="Sometimes it doesn't go to plan. Image © Caters News"><img alt="" class="image-article-full-width-702px" src="http://urbanmelbourne.info/sites/urbanmelbourne.info/files/styles/article_full_width_702px/public/pictures/article-images/article-2225219-15C1E831000005DC-679_964x641.jpg?itok=OcNmQtGf" title="Sometimes it doesn't go to plan. Image © Caters News" typeof="foaf:Image"></a>
City Road in particular has evolved over decades into the hostile environment it is now.  As apartments towers began their infiltration during the late 1990's and gathered pace thereafter, the urban realm was treated as an afterthought - hey there's no rush given there's so many sites yet to be developed plus so many retail and amenity options within a 15-20 minute walk.  Unfortunately the lax attitude has lingered and the area finds itself in a quandary with an ever increasing population mass concentrated around City Road, with City Road itself almost completely inactive from a pedestrian's view.
Some may recall the best part of ten years ago a plan put forward by Melbourne City council to activate and beautify certain parts of Southbank, with City Road coming in for its share of attention.  Included was a circus, a Piccadilly Circus on Southbank of sorts, concentrated around the City Road and Queensbridge Street intersection.  As expected nothing came of the plan and essentially nothing has been done to correct the wrongs of City Road and many other areas of Southbank since.
There are small pockets of resistance though with the recently refurbished <a href="http://www.melbourne.vic.gov.au/CommunityServices/CommunityFacilities/Boyd/Pages/AboutBoyd.aspx" target="_blank">Boyd Community Hub</a> introducing a cafe with outdoor seating while Wine House opposite provides respite for those inclined to enjoy a tipple, yet A Taste of France is the first  commercial/retail outlet to take the fight to the street with curbside seating.
<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/Img_0356.jpg" rel="gallery-all" title="Leading the charge, at a snails pace.City Road at peak hour"><img alt="" class="image-article-full-width-702px" src="http://urbanmelbourne.info/sites/urbanmelbourne.info/files/styles/article_full_width_702px/public/pictures/article-images/Img_0356.jpg?itok=zOuuAK5Q" title="Leading the charge, at a snails pace.City Road at peak hour" typeof="foaf:Image"></a>
The above picture says it all really, dying tree and all.  Good weather on a Saturday morning should see the masses out and about.  The population is certainly there yet where are all the people?  Quite possibly enjoying themselves elsewhere I'd suggest.  Light penetration is good, footpaths are wide, an ever increasing population and no-one walking the area aside from one or two - it's an indictment on Southbank!
So what cane be done to right the wrongs of Southbank?  Well it's a massive undertaking that requires time and capital yet the first steps in correcting the areas failings could involve:
<ul>
<li class="rtejustify">
		Melbourne City Council devising a capital works program to rid the main thoroughfares initially of asphalt and lay pavers equal to those within Melbourne's CBD.  Simultaneously enlist a firm such as <a href="http://www.uap.com.au/street-furniture/" target="_blank">Urban Art Projects</a> to create practical art pieces such as street furniture or sculptures to insert at key locations</li>
	<li class="rtejustify">
		Nice and simple - plant more trees</li>
	<li class="rtejustify">
		With a nice new street level perspective, Council should waive any fees associated with any business willing to implement alfresco seating, or possibly even install fixed glass curbside balustrades (similar to Lygon Street or Lonsdale Street) free of charge </li>
	<li class="rtejustify">
		Platinum Tower will introduce one of the worlds<a href="http://platinumtower.com.au/#/architecture/" target="_blank"> largest vertical gardens</a> to the streetscape upon completion.  Consider requiring any future developments carry green podiums rather than the obligatory inactive mesh or finned facade over above ground car parks.  This serves to soften the vista and brings and earthy, enjoyable element to the area.</li>
	<li class="rtejustify">
		Introduce traffic calming measures</li>
	<li class="rtejustify">
		Address the Kings Way overpass with a similar application to the <a href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/Image6571.jpg" target="_blank">rail overpass found over Carlisle Street</a>, East St Kilda - a little art can go a long way</li>
</ul>
As for that zebra I like to call A Taste of France, life won't be getting much easier with the 170 metre Platinum Tower opposite commencing construction in the new year, providing a 'soothing' hum of construction equipment for the next two or so years.  Sometimes, just sometimes though that first animal to cross the treacherous river makes the crossing successfully and prompts many others to follow -  here's hoping!
Ultimately all I've done is highlight one problem and suggested some remedies.  I don't profess to being able to solve the issues of Southbank, the problem is neither can those charged with its success.
</body></html>

silvermb

Into the jaws of Southbank

<html><body>
The current value growth phase across Australia’s combined capital cities is nowhere near as strong as other growth phases over recent times.  Although home values are rising, they are doing so at a much more moderate pace than during previous growth phases. 
Home values are higher now than they have been in the past however, a different market characteristic now is that investors represent a much greater portion of the market. This could potentially heighten the risks associated with a downturn in the current growth phase.<img class="aligncenter size-full wp-image-2766" alt="chart 1" src="https://blog.rpdata.com/wp-content/uploads/2013/12/chart-1.jpg" width="470" height="168" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
19 months ago, the combined capital city housing market reached a low point following a -7.7% fall in home values.  Since that time, capital city home values have recorded total value growth 10.3% to November 2013.  In comparison, over the 19 months from the beginning of 2001 home values rose by 31.3%.  From the start of 2007, home values were 13.7% higher 19 months later from the beginning of 2009 home values were 19.8% higher 19 months later.  So as you can see, home value growth in this phase has been much more moderate, however, home values are also higher.
Interestingly, values were still growing after 19 months in 2001/02 however, values had begun to fall by this point in 2007/08 and 2009/10.  In 2007/08 the market was beginning to plunge into the financial crisis and aggressive interest rate cuts were not yet enough to stimulate higher demand and subsequent higher home values.  In 2009/10 low interest rates and the First Home Owners Grant Boost (FHOGB) stimulated the growth in the housing market however, once the stimulus was removed and interest rates started to rise we saw the rate of value growth fall and eventually turn negative.
In the current growth phase we have not as yet seen interest rates rise and there has been no other external stimulus such as the FHOGB, and values are still rising after 19 months.  A feature of the market in this growth phase compared to the previous three growth phases highlighted is that a greater proportion of demand is being made up by investors; of course investors were a part of the market in the previous growth phases however, owner occupiers held greater prominence than they do currently.
So is this market being fuelled purely on investment speculation?
Not quite. Currently, there is a comparatively higher proportion of investment activity in the market when compared to the previous growth phases.  Over the 19 months from January 2001, investors accounted for a month-to-month average of 32.2% of the value of total housing finance commitments. 
From January 2007 investors accounted for a month-to-month average of 34.8% of all housing finance commitments and from January 2009 they accounted for a month-to-month average of 32.7%.  From May 2012 to September 2013 (latest data available) investors have accounted for a month-to-month average of 35.9% of all housing finance commitments.  The level of investor activity throughout the current growth phase is not abnormally high but it is certainly elevated compared to the previous three growth phases analysed. 
Across this growth phase investment levels are not abnormally high they are escalating.  In September 2013, investment finance commitments made up 37.3% of all housing finance commitments which were the highest proportion since May 2004 (37.5%).
<img class="aligncenter size-full wp-image-2767" alt="chart 2" src="https://blog.rpdata.com/wp-content/uploads/2013/12/chart-2.jpg" width="470" height="166" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
As I see it there are two potential pitfall of the current heightened level of investment in this market growth phase.
Firstly, data suggests that investment activity is highest within New South Wales, Northern Territory and the Australian Capital Territory.  Anecdotal evidence suggests that offshore investment activity is particularly strong in Victoria. 
If we assume that the state-wide data is a proxy for the capital city markets, we gain some valuable insight into the characteristics of investors.  In Sydney, home values have already risen by 15.9% from their May 2012 low. In Melbourne home values are now 8.6% higher than their low in May 2012.  Darwin values are 15.9% higher than their low in January 2012, while in Canberra, values have increased by just 3.1% from their January 2012 low.  Values are still trending higher in Sydney and Melbourne. In Darwin value growth has moderated while in Canberra values are falling. 
My point is that if investors are chasing capital growth, in all likelihood and based on timing, they have already missed the best opportunity.  If investors are focused on rental return, yields have trended lower across each of these cities over the past year.
<img class="aligncenter size-full wp-image-2768" alt="chart 3" src="https://blog.rpdata.com/wp-content/uploads/2013/12/chart-3.jpg" width="470" height="166" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Secondly, a potential future weakness for the market is that some investors may not necessarily be ‘committed’ to the asset class.  Meaning that if value growth was to slow or start to fall are these investors invested in residential property for the long haul, or will they choose to exit the asset class just as quickly as they have entered? 
My opinion is that if they aren’t committed then there is potential risk associated in the future where a significant supply of investment grade units may come to market when investors may be looking to exit poor performing assets.
One final risk of course is a rise in the unemployment rate.  Official government forecasts are calling for unemployment rates to peak at 6.25% by the middle of next year.  To date, the unemployment rate has been trending higher at a fairly moderate pace and was recorded at 5.7% in October.  If this rate was to rise to 6.25%, it would be the highest unemployment rate since September 2002 (higher than any time during the financial crisis). 
If we were to see investors look to exit their investment properties such as they did in 2008 in line with an escalation in mortgage arrears, we could see weakening home values much like what occurred in 2008.  
<img class="aligncenter size-full wp-image-2769" alt="Chart 4" src="https://blog.rpdata.com/wp-content/uploads/2013/12/Chart-4.jpg" width="470" height="168" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Overall there are always risks associated with the housing market, or any market for that fact.  We have no doubt that the Australian Prudential Regulation Authority (APRA) are regularly analysing these risks and liaising with the banking community to ensure these potential risks don’t turn into a reality for the market.

<hr>
Cameron Kusher is senior research analyst at <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/">RP Data</a>.
 
 
 
</body></html>

What lies beneath: Investor driven growth cycle heightens underlying risks

<html><body>
With the spring auction season over and the heat of summer upon us, property buyers and sellers are facing the inevitable question. With the holiday season around the corner, is it best to list before Santa comes around? Or should you wait until after the champagne pops and 'Auld Lang Syne' has been sung?
Property Observer went out and asked the experts: Should you consider putting your property on the market now or wait until after Christmas? And if so, when is the best time in 2014?
What's your thoughts?
<img alt="poll-results-dec-9" height="124" width="417" src="/images/stories/2013/12/09/poll-results-dec-9.gif">
 
Peter Bushby – President of the <a href="https://www.reia.com.au/%E2%80%8E" target="_blank" rel="nofollow" style="font-size: 14px;">Real Estate Insitute of Australia</a> (REIA).
<img width="125" height="167" src="/images/stories/2013/10/25/bushby-profile.png" alt="bushby-profile" style="max-width: 480px; font-size: 14px; float: right;">
THERE IS A BENEFIT, BUT PRIVATE TREATY IS THE BEST PATH
I often think that there is a benefit in listing prior to the New Year as a lot of people hold off and you can stand out more in this period before others list. I wouldn't auction over the period but private treaty listings are most suitable! 
The reality is a lot of people have more time over the holiday break to check out what is on the market and others potentially are doing preliminary work before starting - you are in that space ready to go as the volume returns after the break. 
I have found over my 40 years experience selling properties that while there are usually fewer buyers about from mid December to mid January, those that are around seem to be much more committed often wanting to use this time to get organised ready for their move. Issues like buying in an area so they can identify what schools kids may attend so they can get those issues of uniforms, etc bedded down, even if they don't settle immediately.
 
Frank Valentic – Managing director of <a href="https://www.advantageproperty.com.au/%E2%80%8E" target="_blank" rel="nofollow" style="font-size: 14px;">Advantage Property Consulting</a><img src="/images/stories/2013/10/22/FrankValentic-profile.png" alt="FrankValentic-profile" height="200" width="150" style="max-width: 480px; font-size: 14px; float: right;"> 
DEPENDS ON WHETHER THE PROPERTY IS TENANTED
 I think it depends upon whether you have a vacant investment property versus if the property is a tenanted or owner/occupied property.  I would put a vacant property on the market now as a private sale/forthcoming auction with prior offers invited, to try and keep holding costs down and reduce interest payments with the possibility of still making a sale over the Christmas/New Year period.
Otherwise, if you were to wait until after this period before launching it, you would have five to six weeks of interest payments and if it takes around 34 days afterwards which is the average days on market for a property in Melbourne, your holding costs would be doubled.  
If the property was owner occupied or tenanted so the holding costs would be reduced or not as relevant if you were living there,  I would hold off launching the property until mid-January to cash in on the pent up demand that usually sees strong results in the early February auction period.  
Most years the market starts strongly with many people relocating, New Year’s resolutions and sometimes even a February interest rate cut to spur things on.  I would definitely wait to capitalise on the strong current Melbourne auction market and see competitive bidding for a property where holding costs weren’t an issue.
Article continues on next page. Please click below.  
<hr class="system-pagebreak">
Ben Kingsley – Chair of <a target="_blank" href="https://www.pipa.asn.au/" rel="nofollow" style="font-size: 14px;">Property Investment Professionals of Australia</a> (PIPA)<img alt="ben-kingsley-profile-2" src="/images/stories/2013/11/22/ben-kingsley-profile-2.jpg" height="200" width="150" style="max-width: 480px; font-size: 14px; float: right;"> 
AS A BUYER, NEW STOCK IS ALWAYS WELCOME
Speaking from the buyers side, as an independent property investment advisor and director of a buyers agency business, my team and I are constantly on the hunt for properties that meet our clients briefs.  So speaking from a buyers position any new stock is welcome for analysis and inspection, especially in a sellers market which is what we are experiencing in the Melbourne and Sydney markets even this late in the year.  
In the current market, The facts are that good quality properties in superior locations and suburbs are still attracting strong interest and are being bought under stiff competition by highly interested buyers, so any new stock is keenly sort and reviewed.  
Speaking from the sellers side, the best way for a vendor to determine if now is the right time or if early 2014 will be better will come down to two things - firstly how much you have been watching the buyers interest in your localised area and more specifically the level of interest in 'like' properties to yours.   Secondly, how much faith and trust you put in the skill of your selling agent.  They are in the market every day, so the best agents will have a real finger on the pulse in terms of the level of underlying  demand right now compared to what their experienced tells them about the upcoming autumn selling season.  
It a simple case of 'horses for courses'.  In some areas now is as good as any to sell up and start to plan for your next move in 2014, but demand should be very strong to consider this.  If not sure , then the smart money would be to wait until early 2014, as many people use the festive season break to make big decisions about their future - and property is a big decision, so this often leads to higher levels of underlying demand as the selling season kicks off in early autumn.
 Andrew Wilson – Senior economist, <a href="https://www.apm.com.au" target="_blank">Australian Property Monitors</a><img src="/images/stories/2013/10/04/AndrewWilson-profile.jpg" width="125" height="150" alt="AndrewWilson-profile" style="max-width: 480px; float: right;"> 
MARKET ACTIVITY IS LIKELY TO SLOW DOWN IN 2014
Housing markets traditionally wind down as the Christmas holiday break approaches but the level of the wind-down is dependent on the nature of the local market dynamics.
The Melbourne and Sydney housing markets are currently being characterised by an unprecedented end-of-year surge in auction listings with thousands of properties due to go under the hammer right up until the last Saturday before Christmas.
Melbourne and Sydney home buyers are keen to take advantage of the strongest market conditions since 2010 and wary perhaps that next year’s market conditions may not be as strong. And they are likely to be correct.
Declining economic activity is likely to moderate buyer activity in Sydney and Melbourne next year even if as is increasingly likely interest rates are cut again in the New Year.
The autumn selling season of 2014 however will remain relatively active in both Sydney and Melbourne although auction clearance rates are likely to be below current levels – particularly in Sydney. Prices will still increase moderately over the year but not at the same levels recorded in 2013 and with most of the increases occurring over the first half of the year.
Other capital city markets should perform close to current levels although buyer activity and house prices in Brisbane are set to rise on the back of an improved local economic performance in 2014. The market is clearly signalling that now is a good time to sell in Sydney and Melbourne with selling conditions in most other markets likely to remain consistent at existing levels well into 2014.
Article continues on next page. Please click below. 
 
<hr class="system-pagebreak">
Paul Biller - Principal of <a href="https://www.1stcity.com.au/" target="_blank" rel="nofollow">1st City Hasemer &amp; Caldwell-Eyles</a> <img alt="biller-profile" src="/images/stories/2013/11/15/biller-profile.jpg" height="200" width="150" style="max-width: 480px; float: right;">
SERIOUS BUYERS ARE ALWAYS LOOKING AND THE HOLIDAYS ARE NO EXCEPTION
With the holidays fast approaching, sellers often wonder if they should list their properties now or wait until the New Year.
The conventional rule used to be that you shouldn’t list your home during the holiday season. Potential home buyers were too preoccupied with attending parties, buying presents or planning vacations. But with the Internet and the marketing process having become far more sophisticated than in previous times, buyers for good quality properties can be found all year round making the issue of timing less critical today than in the past. Serious buyers are always looking and the holidays are no exception. Buyers can check out the latest listings from their mobiles or tablets on the go.
Due to our work commitments and hectic lifestyles, many serious buyers will use the holiday period to monitor real estate more closely than they may do during the year. Many sellers however believe that buyers disappear over this period and choose to wait until the New Year to commence marketing their properties. The effect for those that are on the market during this time often results in high prices being achieved as there is far less competing properties for the buyers to choose from.  
In reality, all that really phases out over Christmas are the auctions. Private treaty sales continue unabated with many properties being marketed “on the quiet” to great effect.  
Another benefit is that lenders can process loans faster as they are typically not as busy at this time of year enabling prospective buyers to act quickly in finalising a purchase.  
My advice is that if you are considering selling – start the process now in order to capitalise on the low levels of stock. If you are not able to close a sale by Christmas, market the property for a February auction.  
 Kevin Lee - Buyers agent at <a href="https://www.smartpropertyadviser.com.au/%E2%80%8E" target="_blank" rel="nofollow">Smart Property Adviser</a> 
<img src="/images/stories/2013/11/15/kevin-lee-profiel.jpg" alt="kevin-lee-profiel" height="200" width="150" style="max-width: 480px; float: right;">
TAKE YOUR CHANCES IN THE NEW YEAR
Ho, Ho, Ho - Santa is about to arrive for some! Maybe......  
It's the $64,000 question on everyone's lips. Should I sell now or should I wait till 2014? Normally there's not much happening in the thousands of residential property markets across Australia between the end of November and mid to third week of January.  
Australia tends to pretty much have a complete 'shut down' mentality when it comes to school holidays, Christmas and New Year all combining into one hot summer. The only things guaranteed to be still on every year though, are the Boxing Day sales; Sydney to Hobart Race; the cricket and the great Aussie BBQ. 
This year however there are plenty of properties still on offer, with auctions scheduled right up to the afternoon of Saturday December 21st. And I think we'll see hundreds of new listings and/or auctions in the second week of January.
Anecdotal evidence I have is that the old 'supply and demand' equation has been hard at work in many parts of Australia - especially in my home town of Sydney. Here's what you need to know and what you need to prepare for:  
1) Over the past four months or so, in Sydney we've witnessed the lowest number of properties for sale in 14 years. 
2) Due to a long period of super low three-year fixed rates - between 4.69% and 4.99% for seven months - thousands of overzealous or uneducated buyers in Sydney have paid above the odds for some very average properties
3) Vendors in many parts of Sydney are getting caught up in the frenzy - and reacting by asking ridiculous prices.
4) Thousands of people who just managed to purchase their first property with a sub 4.99% interest rate are not at all prepared for an interest rate increase.
5) This group don't understand that on a $350,000 mortgage, a mere 2.0% increase to their rate, in fact represents a 40% increase to their interest bill each month.
6) They don't 'get' that their principal and interest repayments on that $350,000 mortgage will go up by $449 per month, from $1877 to $2326 - for owner occupiers this is after tax money people.
7) So you're a first time investor? Sorry - for you that 2.00% increase to your interest rate equates to an extra $583 per month!
Parts of the Sydney property market are 'insane' right now; others have seen an uplift that was literally years in the making. Whilst others are still having to cut their asking price by $500,000 or more - it's all relevant. Three or four months ago was possibly the best time to sell; I'm seeing that now.
There's certainly a lot of mixed messages out there right now, it's hot and cold in different suburbs - including within the auction space.  
So, rather than take my chances next year, a couple of weeks ago my wife and I decided to sell our 100+ year old investment property in Sydney's northern districts pre-Christmas via auction. Due for auction last Saturday, and although it drew strong initial interest that dwindled away (damn lawyers!!!) so we withdrew it from the auction process on Monday a week ago.
Having a great agent though (Amy Kaslar @ LJ Hooker Beecroft) means that we exchanged contracts yesterday for a price that wasn't great; but it wasn't bad either. In this instance we just didn't want to wait and see what the New Year might bring. <a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a> 
</body></html>

po-LsXgBTHBmX

Should you list before Christmas? The experts have their say

<html><body>
Property Bloom is preparing for a big house renovation and thought I’d share some of the steps we are taking in the weeks before we start the renovation.  The house is a beautiful original Californian Bungalow with some wonderful ornate features to the ceilings and cornices (pictured below). There are also some fabulous stain glass windows.
<img alt="chivers-dec-6-one" height="230" width="470" src="/images/stories/2013/12/06/chivers-dec-6-one.jpg">
 <img alt="chivers_dec_6_two" height="313" width="470" src="/images/stories/2013/12/06/chivers_dec_6_two.jpg"> 
We found this particular property for a client who wanted us to source, renovate and prepare the house to sell. He wants to make some profit using a renovation and sell strategy. As property development project managers, we would normally look for further ways to add value to a property in the way of adding additional dwellings and subdividing. But in this case, it’s a straight renovation project.
We needed to find a rundown house with good ‘bones’ that was very well located and had some good features that we could highlight and would help sell it. I think we hit the nail on the head with this little bungalow beauty.
With a strict budget we must adhere to and a house that we could keep working on till the cows come home, we have our work cut out. We need to highlight the features and spend our money wisely.
We are replacing the 1950’s retro kitchen and two bathrooms, carrying out some repairs and painting inside and out. The wonderful old floorboards that lay beneath the floral carpet and linoleum will be sanded and polished.
This week we met with our colour consultant and we starting on the kitchen choices – the kitchen is going to be the big hero in this renovation.  We established bench and cupboard colours and chose appliances which includes a 90 centimeter wide five burner free standing dual fuel cooker with a glass canopy rangehood that will ‘pop’ in front of our bench to ceiling  tiled marble effect feature splashback wall.  We hope this will wow prospective purchasers the minute they walk into the kitchen area.  We all know that women have the main say in home purchases and we are pitching this to the middle market of owner occupiers, looking for their second home – they can afford to pay more but want something they can move straight into and enjoy and a large, modern kitchen will be at the top of their ‘must have’ list.
Now we have the kitchen colours selected, we’ve ordered the kitchen so it can be installed by the end of January. Property Bloom gets a wholesale price as we use the same supplier that our builder uses for our villa developments and so we can pass on this saving to our client. Plus by managing the kitchen ourselves, it means our builder can focus on the bathrooms and other works to ensure a quick renovation process. We plan to spend no more than four weeks on this renovation. Time is of essence to minimise holding costs for our client.
The kitchen colours and style this will spill out into the rest of the house.
Our splashback wall has a grey colour in the marble vein and it is this that gives the inspiration for our bench tops and floor tiles for the bathrooms. We’ll use the same marble effect tile as a feature tile in the main bathroom.  The marble grey can also be associated in the internal wall paint colour.
I think it’s important to continue a theme through colour choices for a house renovation and for us we want to keep it fairly neutral but need to pack a punch so that the house gets noticed and quickly.
Stay tuned and I’ll cover off some of our challenges once we get under way in the New Year with this renovation project.
 
<hr>
 Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">Property Bloom</a>, which manages property development.
 
 
 
</body></html>

jochivers-wq5Bp59R5a

Californian bungalow renovation: We have our work cut out for us and time is of the essence

<html><body>
Hi Margaret,
I'm a new investor and I'm about to invest in a property in Broken Hill. The property is vacant at the moment but the real estate has advised a potential rent of $200.
I'm also yet to do a building and pest inspection. 
Would you be able to give me some advice?
Kind regards,

Ashis
 

When new investors begin the process of choosing their very first investment property, usually they are motivated and guided by the desire to get something as affordable as possible.  In doing so, they consider a price range within their budget, and then go looking for a house to match.  Next, they usually find out the rent return and if it seems as if it will provide a reasonable cash flow, they believe they have a good buy on their hands.
The problem with this approach is that, while it means that you will buy something within your comfort zone in terms of price, with a rent return likely to cover most costs so that your weekly personal cash flows are not too badly impacted, it completely ignores one of the most important features of successful investing – and that is buying a property which will grow and so increase your net worth.  While getting a neutral or positive cash flow is indeed of considerable importance (as highly negative cash flows can cause financial distress and potential early exit), owning property which never grows (or grows very little) will do no more for you than never owning property at all!.
Broken Hill, in my opinion, falls within the category of an area which has affordable housing  and rental yields of over 6%.  However, it has a population which is only not growing; in 2011 it lost 80 people!  There are over 500 properties currently listed, with only four people looking per property available, as compared to a state average of 20.  Combined with a lack of employment opportunities, these facts indicate that there are simply no drivers for property price growth and you’re likely to be left with a property which does nothing in the short and medium term, and likely in the long term too.  You will essentially buy yourself a headache (which most properties are, at some time), with no capacity for a reward at the end!
While I am definitely not a proponent of spending up big when it comes to buying investment property, I believe there is far more risk in buying a cheap property with no demand drivers than there is in buying a more expensive property in an area where you have confirmed employment opportunities, population growth and suitable provision of infrastructure.  Such an area can still have a rental yield sufficient to cover your costs and not stress your budget today,  and in addition to this it can provide growth of your asset and the capacity to leverage into more properties, and thus build a larger portfolio.
Regards,
Margaret
 
<hr>
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel onYour Money, Your Call, both on Sky News.
She is the founder of <a rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
</body></html>

mlomas-KC9MUPZ6Ca

Should I buy my first investment property in Broken Hill?

<html><body>
No surprises that the cash rate stayed on hold in December at 2.50%.
But what for next year?
We've had some interesting developments on the debt ceiling in Australia, and in particular some interesting news in the National Accounts.
GDP growth for the quarter came in at a somewhat disappointing 0.6% quarter on quarter and 2.3% year on year.
In other words, the Aussie economy is growing 'below trend' (which in Australia essentially means 3.00%-3.50% depending on your chosen timescale and your source).
While retail sales have picked up, consumer spending remains fairly weak, and it's clear that dwelling construction has not picked up to anything like the level that the Reserve Bank was hoping.
Business confidence is quite fragile and mining investment expenditure is likely to fall over the next year or two.
What does it mean for interest rates?
In a nutshell, there will be no hikes for quite some time to the cash rate, perhaps not even until 2015 depending upon how the economy fares.
Here's what the futures markets say, which is to say a one-in-four chance of rate cut to just 2.25% at the next Reserve Bank meeting on February 4, 2014.
And here is the cash rate futures implied yield curve at the close of business on Wednesday, which on balance isn't seeing a hike to a cash rate of just 2.75% for some 15 months.
<a imageanchor="1" href="https://2.bp.blogspot.com/-OQAfw0FNeMs/Up7Wjj1cQ1I/AAAAAAAAK_s/S0EufCDCWXY/s1600/asx.jpg"><img width="470" src="https://2.bp.blogspot.com/-OQAfw0FNeMs/Up7Wjj1cQ1I/AAAAAAAAK_s/S0EufCDCWXY/s400/asx.jpg" height="294"></a>
Source: ASX
Households will continue to enjoy very cheap mortgage repayments through 2014 while the economy struggles to rebound.
And we should enjoy it while it lasts. History shows that interest rates can - and will - run high at various points in time.

<hr>
Pete Wargent is the co-founder of <a rel="nofollow" target="_blank" href="https://allenwargent.com/">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a rel="nofollow" target="_blank" href="https://petewargent.blogspot.com/">blogger</a>.
His new book '<a rel="nofollow" target="_blank" href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx">Four Green Houses and a Red Hotel</a>' is out now.
 
 
</body></html>

pwargent-M4siyDbqQY

No interest rate hikes for some time yet

<html><body>
I think now is the time to issue a bit of a warning. This week we have hit the point where I anticipate the market will start to slow down a little.
Now don’t panic. I am not saying it will drop, nor will it stop, but the frantic pace of recent weeks will fall away.
With less than a month until Christmas it is inevitable that for some potential buyers the focus will shift from house shopping to Christmas shopping. Those people will have decided it is just too hard to keep pushing to find the perfect property before the holidays.
But as I said, for vendors it isn’t time to panic.
The market is solid right now. Even if a percentage of buyers withdraw there will remain a healthy percentage who will continue to engage in the hope they can secure a new house for Christmas, even if they can’t move in.
We have several auction scheduled over these last weeks before Christmas and interest is good.
Prices have been strong but not ridiculous which isn’t a bad thing as it reflects a very solid market platform.  With a few less vendors in the mix prices should hold, delivering a happy outcome for pre-Christmas buyers and sellers.

<hr>
Ewan Morton is managing director of the Sydney based <a rel="nofollow" href="https://www.mortonandmorton.com.au/" target="_blank">Morton &amp; Morton</a>.
 
</body></html>

emorton-DecMjPQt5h

Market is solid, but prepare for a Christmas slowdown

<html><body>
It would leave you breathless, wouldn’t it?
Maybe a little unsure about your sanity?
I mean, picking up the phone and taking a call that changes your life doesn’t happen every day!
Some lucky people have had the experience, like those whose numbers came up on Tattslotto and others – like winners of the Mater Foundation’s Home Lottery – who paid $2 for a ticket and then probably forgot about it ...
Until, that is, they had Mater’s commercial director, Bruce Dennehy, on the line trying to convince them they had won the main prize: a million dollar house in an exotic location somewhere along the east coast.
Good causes, such as Mater’s, are easy to support. The lottery has been running for more than 50 years giving families an opportunity to win luxurious homes, holidays - and even gold. And the best part is that all money raised goes to the Mater Mothers’ and Mater Children’s Hospitals, helping sick kids and babies.
“With six million-dollar properties up for grabs in the raffle each year, the chance of winning is achievable,’’ Dennehy – ever the salesman - said.
But rather daunting: Such as when the winner of Mater Prize Home lottery No.249 – the most recent - opened her life-changing winner’s letter...  and thought her eyes were playing tricks on her. Unsure as to whether the letter was genuine she asked her neighbour to read it, too! 
After jumping up and down with excitement and phoning Dennehy for verification, the wonderful news began to sink in: She had a new $1.6 million riverfront apartment at Kangaroo Point, Brisbane.
At first the ecstatic mum – ‘no names please’ - wanted to keep the news a surprise for her young daughter: “I was going to get her ready for school the next day and just keep driving past. But I told her I had a surprise and she just kept guessing. I ended up giving her the letter to read.’’
Did she ever dream of winning? “As a parent I have always had that thought in the back of my mind: ‘What if something happens to me? What will happen to her?’ So, I bought tickets as I knew it would be a way of making sure my daughter was looked after for the rest of her life.
“Now, it feels like we are just renting an apartment for the week. This really has changed everything for us. I have to work a lot and, at the moment, we only get Sundays together. This will give us more quality time together!”
Every year more than 100 supporters <a target="_blank" href="https://www.materprizehome.com.au/main-prize-homes/">win homes</a>, cars, gold bullion and holidays in the Mater Foundation lotteries. The million dollar prize homes all have waterfront views and are in sought after postcodes, such as Hope Island and Biggera Waters on the Gold Coast, and the chic inner-west suburb of Rhodes in Sydney.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="mater_dec_6_one" src="/images/stories/2013/12/05/mater_dec_6_one.jpg" height="180" width="240">
The joy of winning can take a while to sink in. Just ask first prize winner No. 236 Stacy Copelin, above, a lucky cupcake baking, tennis loving Cairns local. She is the owner of Seven Stars Cupcakery and, now, a new million dollar home. 
But, such was the unexpected nature of her call from Dennehy that she almost hung up on him!
Copelin, who was driving at the time, thought he was trying to sell her more tickets. Dennehy then told her she should ‘’put down what you’re doing’’ but she refused, thinking their conversation would end soon. Luckily, it didn’t!
Realising speed was of the essence, Dennehy abruptly told her she had won the competition: a new million dollar home in the tropical city! It’s no wonder Copelin pulled over straight away and had to be convinced he wasn’t joking.
The spacious home on two blocks has a pool, tennis court and large outdoor living area. Copelin says that while her win still hasn’t sunk in, she is planning a big family Christmas and will never stop supporting Mater Lotteries as a VIP. 
<img src="/images/stories/2013/12/05/mater_dec_5_two.jpg" alt="mater_dec_5_two" style="display: block; margin-left: auto; margin-right: auto;" height="180" width="240">
At only 26, Aaron McCabe, above, could not believe his luck when he received the call from Bruce Dennehy notifying him that he had just won the million dollar Kawana prize home in draw 236.
The win didn’t sink in until he got home to check the ticket numbers were correct and that the prize really was his. “I was in complete shock, I couldn’t believe it at first.”
Once he got a hold of his nerves he told mum and dad - then had to spend five minutes convincing them of his good fortune.
McCabe – an electrician - said that with several building projects across the Sunshine Coast he might consider making a sea change. With Christmas approaching, he’ll spend a couple of weeks up there with family and friends, celebrating all that the coast has to offer and spending time in the pool and outdoor entertainment area enjoying lakeside views.
<img src="/images/stories/2013/12/05/mater_dec_5_three.jpg" alt="mater_dec_5_three" style="display: block; margin-left: auto; margin-right: auto;" height="180" width="240">
“Are you joking?” was all Shana Maguire could say when she was told over the phone that she had just become a million dollar Mater Prize Home winner in draw 233. The 21 year old was a VIP Club Plus member, but it was the extra tickets she bought over the phone that won her a new million dollar lifestyle and $50,000 in gold bullion.
“I wasn’t saving because I never thought I could ever afford to buy a house, she said, but her generous support has changed her life. “I just love the house,’’ she said.
“Most people don’t believe that people win these houses. All my friends and mum’s friends are going to buy tickets now because they know that real people do win.”
<img src="/images/stories/2013/12/05/mater_dec_5_four.jpg" alt="mater_dec_5_four" style="display: block; margin-left: auto; margin-right: auto;" height="180" width="240">
In the wake of the Queensland flood disaster, Rockhampton couple Alan and Michelle Ebert, above, have found dry land by winning a fully furnished $1 million house in Kingscliff - and $50,000 in gold bullion - in draw 232.
“We have always struggled for everything that we own and have been living in government housing the size of the Mater Prize Home’s lounge room,” Michelle Ebert said.
“When we signed up as VIP members we were simply hoping to raise money for research and Mater hospitals. I never thought we’d win anything like this, or even own a home, so I encourage everyone to buy a ticket for a chance to win and help those patients at the same time.”
Mater Foundation is the charitable arm of Mater Health Services and Mater Medical Research Institute. The foundation aims to promote, engage and steward philanthropic support to fund clinical care, education and research for the prevention and treatment of disease in people of all ages.
Dennehy said that, every year, the foundation arranges fundraising activities including the lottery, popular events, and direct mail appeals. Money raised helps buy medical equipment, fund research to diagnose, treat and cure life-threatening diseases, and support patients and families financially and emotionally.
He said the charity relied on community, corporate and individual support and donations to help ensure the half million babies, children and adults treated at Mater each year have access to “exceptional’’ care.
“By making a donation to Mater Foundation you can make a difference to countless lives by supporting health care projects that benefit people of all ages: from new born babies to the elderly.’’
Mater’s main prize home lottery No.250 is being drawn on December 17 with the first prize being this $1.42 million home on Bribie Island, Queensland. Tickets are $2.
Can’t you just see yourself in that pool?
 
 <img src="/images/stories/2013/12/05/mater_dec_5_house.jpg" alt="mater_dec_5_house" height="194" width="470">
<a title='"Bribie Island" ' href="https://www.materprizehome.com.au/main-prize-homes/house1/"></a>
<a href="https://mce_host/staylor@propertyobserver.com.au" target="_blank"> staylor@propertyobserver.com.au</a>
</body></html>

Latest Expert Insights

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

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

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

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News