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>
The ACT remains the most affordable state or territory to buy in, while New South Wales remains the least, however first home buyers appear hesitant across the board, according to the Real Estate Institute of Australia (REIA).
REIA president, Peter Bushby, said that the latest Adelaide Bank/REIA Housing Affordability Report recorded an improvement in housing affordability when considering the proportion of income required to meet loan repayments. The amount decreased 1.2% to 29.8%.
Observer Terry Ryder<a target="_blank" href="/news"> recently noted that his thoughts around first home buyers</a>, particularly with statistics around affordability, is that they’re staying out due to choice. However, one reader commented that this was too simplistic a measure of affordability.
Bushby noted that all states and territories recorded this affordability improvement over the quarter. In Tasmania, the proportion sits at 24.6%, with the greatest drop of 1.6%.
“As we expected, due to the changes in the First Home Owner Grant introduced by the Victorian Government, the number of loans to first home buyers in the state had the biggest quarterly drop across the country,” he said.
“The consequences of the availability of the grant to those only purchasing new dwellings are abundantly clear in NSW and Queensland – the number of loans to first home buyers in these states is 46.7% and 34.5% lower than it was a year ago.”
South Australia and Western Australia saw strong increases in loans, excluding refinancing.
“For renters, it became slightly more affordable to rent in Tasmania, but in the Northern Territory, rental affordability fell further with renters paying well above the national average," said Bushby.
 
jduke@propertyobserver.com.au
</body></html>

jduke-EHk3XBmHkn

ACT most affordable, NSW the least: REIA

<html><body>
Australia spends more on infrastructure today than at any stage in its history. Yet governments are unable to meet demand and don’t expect ever to do so. What can governments do to keep up with escalating demand and community expectations for infrastructure?
Reserve Bank assistant governor Philip Lowe <a href="https://www.businessspectator.com.au/news/2013/11/26/infrastructure/rbas-lowe-urges-tolls-infrastructure" target="_blank">says</a> tolls and levies could be the answer to more efficiently funding the transport infrastructure we need - infrastructure he says would boost productivity and improve living standards.
Tolls are just one issue likely to be debated as part of the Productivity Commission’s current <a href="https://www.pm.gov.au/media/2013-11-13/productivity-commission-inquiry-infrastructure-costs" target="_blank">inquiry</a> into infrastructure costs, which is considering how infrastructure is funded and financed by both the Commonwealth and the states.
Governments trying to fix the infrastructure backlog face a number of constraints including money, suitable land access and community buy-in.
Historically, Australia is a large investor in infrastructure with per capita spending of about $18,500 per annum in the past decade. This means the nation has pulled ahead of the OECD, reflecting two mining booms and nation building public spending.
Gridlock frustrates
At the same time congestion in Australia’s major cities continues to escalate with gridlock on roads impacting passenger and freight logistics. This situation reflects poorly on project selection processes and willingness to choose infrastructure that lifts national productivity. For example, renovating existing infrastructure and shifting demand from the peak to the shoulder period can often have superior productivity impacts compared with building greenfield assets.
While Australia has a strong case to build more infrastructure, it must do so with a great deal more discipline and clear purpose towards the long term national interest.
Prioritising projects with the highest cost benefit ratios is fundamental. At the same time we must recognise that Australia has erred on this front, which has come at a cost to the public. These projects are typically in the category “too much, too late,” such as gold plating electricity distribution networks on the east coast and the south-east Queensland water grid.
If more road and public transport investment is to occur, governments should also focus on how they will service private capital during the long period of investment in infrastructure. This means a willingness to allow prices to reflect full cost recovery for the infrastructure provided, permit prices to reflect the incentive to invest and where appropriate use the government’s balance sheet to fund shadow tolls where a user charge is not appropriate.
Productivity matters
Better infrastructure for Australia should be anchored by a clear objective of lifting national productivity. This clarity of objective has been missing which has made it difficult for governments to be purposeful and consistent in their infrastructure decisions.
To that end the regulatory system requires reform, as it must provide the right price signals and incentives to make the best use of existing infrastructure. Tolls and user charges can have a more fundamental role to play in shaping demand and helping to direct where investment is needed to lift productivity growth.
Of course a toll should always be a fee for a defined level of service, and the community has the right to expect choice in the services available. The problem is that infrastructure often fails this test to the detriment of business and the community.
Tolls need to be justified
It is notable that the M1, M2, M4 and M5 toll roads in Sydney all originally demonstrated great benefit to commuters with faster travel time. But the reality is that now each of these toll roads has a peak hour exceeding 10 hours per day; slow speed and uncertain travel time is the norm.
To address this situation, state and federal infrastructure agencies need to enshrine customer service benchmarks that govern lifetime performance of major assets and networks. Government and the private sector concession holders will then require a framework to sustain them together.
The Australian community expects globally competitive transit times during the peak hour. Using tolls to help fund transport infrastructure is reasonable but without service benchmarks commuters are not assured of value for money; a toll becomes just another tax.
Tolls and user charges are not a panacea without fundamental institutional reform. Infrastructure must perform a service to the community that is relevant and compelling in order to justify a user charge in the first place. This is one of the missing ingredients to a better infrastructure future for Australia.

<hr>
Garry Bowditch is CEO of the <a rel="nofollow" href="https://smart.uow.edu.au/index" target="_blank">SMART Infrastructure Facility</a> at the University of Wollongong, which has been funded by the NSW and Queensland state governments to conduct research into infrastructure costs.
This article was originally published at <a href="https://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/should-users-pay-the-toll-for-australias-infrastructure-problem-20774" target="_blank">original article</a>.
 
 
<img width="1" height="1" alt="The Conversation" src="https://counter.theconversation.edu.au/content/20774/count.gif">
</body></html>

gbowditch-XhQ427ncp8

We need to fix our national infrastructure problem, but who's going to pay for it?

<html><body>
Net asset value (NAV) and net tangible assets (NTA) are two common valuation metrics of Australian real estate investment trusts (AREITs). NTA is the balance sheet or book value of the underlying properties held within an AREIT. NAV is an analytical valuation of an AREIT based on the expected net cash flows from the property assets and profits generated from activities unrelated to income generation within the AREIT structure. These activities include operational businesses, such as funds management or property development.  
The degree that an AREIT is trading at a premium or discount to NAV and/or NTA, serves as a yardstick for assessment of the whether the AREIT is undervalued or overvalued.    
Rental income AREITs v AREITs with operational businesses  
A rental income AREIT, such as Westfield Retail Trust (WRT), derives the vast majority of its revenue from rental income. This compares with Westfield Group (WDC), which generates rental income and undertakes operational businesses such as construction, funds management, property asset management, leasing and marketing activities.  
Chart one illustrates the premium/discount to NAV and to NTA that these AREITs have traded at over three years to October 31, 2013.  
Chart one – Premium/Discount to NAV and NTA comparison
<img src="/images/stories/2013/12/04/binesh_dec_4_chart_one.png" alt="binesh_dec_4_chart_one" width="470" height="185"> 
 
*Inception – 13 December 2010
Source: UBS, Atchison Consultants  
WDC has been trading at substantial premiums to NTA since September 2011 which is attributable to the expected profits generated from the operational businesses within the group.  
However, WDC has been trading closer to its NAV, which accounts for expected market value of the assets of the properties and profits from operational businesses.  
Pricing relative to NTA and NAV  
The premium/discount to NAV and to NTA that the sector is valued at as at 31 October 2013 is shown in Chart two
 
Chart two – AREIT Sector– Premium/Discount to NTA and NAV as at October 31, 2013
 <img src="/images/stories/2013/12/04/binesh_dec_4_chart_two.png" alt="binesh_dec_4_chart_two" width="470" height="250">
Source: UBS  
Over the last 18 months, prices of AREITs have been driven upwards by investors looking for high cash dividend yield investments, within a prevailing low interest rate environment.  
As shown in chart two, as at October 31, 2013, the AREIT sector was trading at premium to NTA of around 23% and at a minimal discount to NAV of 1.5%.  
WDC, which accounts for approximately 25% of the value of the AREIT sector, skews the overall sector’s valuation. The AREIT sector, excluding WDC, was trading at a premium of around 13% and 1.7% to NTA and NAV respectively as at October 31, 2013.  
As shown in chart two, as at October 31, 2013, AREITs such as Westfield Retail Trust (WRT) Investa Office Fund (IOF), Challenger Diversified Trust (CDI) and GPT Group (GPT) have been trading at discounts to both NTA and NAV. These AREITs are undervalued by the market.
 
<hr>
 Binesh Seetanah is an analyst at <a href="https://atchison.com.au/" target="_blank" rel="nofollow">Atchison Consultants</a>.
</body></html>

bseetanah-MkzVfc9t4h

How to decide if a REIT is undervalued

<html><body>
With Australia’s capital cities being home to some of the world’s most expensive rental properties, it is no surprise that overcrowding is a serious problem that many investors face. This is a serious problem in many Australian capital cities, as housing costs increase and supply of affordable property fails to meet demand levels.

Overcrowding of apartments, houses, and other property types occurs for a plethora of reasons. Some of these are profit-driven, others more situational and/or socio-economic. Whatever the reasons a tenant has for overcrowding a property they are renting; landlords suffer the ramifications of this.

[smartcode_project:default project_id=528]

Just about everyone has heard a story or has been directly involved – perhaps as a landlord – in a property overcrowding situation. I’ve heard so many horror stories here in Sydney from friends, colleagues, and readers about overcrowded apartments. One friend, a fellow investor; discovered that after six months of a 12-month lease; his three-bedroom apartment was being permanently occupied by nine adults.

Many Australians who have ever lived in inner-city areas have heard stories like ‘that apartment on the other side of my building back in my uni days that only had two bedrooms, but had eight people sleeping on mattresses in it!’.

[smartcode_project:default project_id=29358]

Some investors may have a mindset of ‘So long as the rent is being paid, I don’t care what happens in the property’. However, savvy investors know why overcrowding must be stamped out, otherwise they can be personally liable. Here’s why and how overcrowding can hurt investors:

Fire safety

-          Say you have say a two-bedroom apartment and you rent it out to just one or two people, whose names are on the lease. If there is a fire where injuries, or worse, fatalities occur, and the investigation reveals that several adults were occupying in the property at the time, insurances are likely not to be paid out.

-          This results in oftentimes crippling losses for the investor, as they are forced to either repair and renovate the apartment at great expense; or sell the apartment at great loss in order to consolidate their losses.

Property damage

-          A less severe but just as important consequence of overcrowding is property damage. This is worse for landlords of houses, however unit and townhouse investors can still suffer. I’ve heard of horror stories for house investors where tenants have ripped down walls, or added their own walls to create more bedrooms to fit more people.

-          With so many people living on top of each other in cramped spaces, carpets, walls, and appliances will get warn out much faster than regular properties.

I dug a bit deeper to find out the major reasons why properties in Australia, and in particular, in inner-CBD located properties, are prone to overcrowding:

Poor housing affordability

-          This is a huge issue not just for Australian-born citizens, but those who are new to the country, as well as international students.

-          Share houses and apartments are becoming increasingly popular in middle to outer-ring suburbs to help curb affordability issues. This is happening not just with the ‘young student’ population that most would imagine would live in this way, but with young professionals, and even mature friends living together to keep costs down.

-          However in the CBD areas, the rarity of three to four bedroom properties that can be affordably shared, means that smaller apartments can suffer overcrowding as a way to keep costs down for renters.

Proximity to centralised transport nodes

-          Those who are new to the country are also less likely to drive a car, and combined with the desire to live in the heart of a CBD or close by, to allow them to be close to work, whilst still affording the expensive rent, sharing a room in an overcrowded apartment or boarding house may be the most viable option.

-          This is also related to time efficiency. Those new to the country or international students are sometimes working two or more jobs, and this means they don’t have the time to waste on commuting from cheaper, outer-ring suburbs. Instead, it is more ‘efficient’ for them to live within minutes’ walk to the best-paying job prospects; and these are usually located close to CBD areas.

Illegal profiteering

-          Unlike the abovementioned reasons, this one is more sinister, and highly illegal. Some profiteers ‘prey’ on those who either cannot get a lease of their own, or are new to the country and there are language or other barriers that prevent them sourcing a property legitimately. This unfortunately includes illegal arrivals to the country.

-          These people will rent out large apartments and houses in prime locations from real estate agents, and then then illegally sub-let the property for profit, overcrowding the rooms as much as possible.

-          For example; a ‘tenant’ may pay $800 per week to rent a four-bedroom, well-located apartment, but may fill each room with two or more beds, and charge $150 per bed, per week, turning a profit weekly from the revenue

So what can you do to prevent overcrowding, and how can you tell from the outside if a property has too many occupants?

Get the best managing agent money can buy

-          A highly competent agent will never allow overcrowding to occur. This happens because they are conducting regular routine inspections of your property.

-          However, the best agents are almost like detectives for that. An overcrowded property; with enough notice period prior to a routine inspection, can be made to ‘appear’ it is not overcrowded, however savvy managing agents will be on the lookout for any evidence that the property is being occupied than more adults than those listed on the lease.

Be aware of strata by-laws in your state or territory

-          How many people is too many, in a property? You need to investigate what the strata by-laws are for units and apartments in strata-managed properties; as well as what the law states for houses that are not part of any strata management.

-          There are mild variances from state to state. For instance, in NSW, where overcrowding is a severe problem due to weak affordability for renters, strata-managed building now stipulate no more than two adults per-bedroom, per-apartment. This means in a one bedroom apartment, only two adults are allowed.

Tenant screening in the beginning

-          Ensure that the applicant(s) you choose to allow to rent your property have been properly screened by your managing agent.

-          If you have any doubts, it is appropriate to ask to see references and/or a tenant ledger history from your agent. Red flags to look out for include a history where the tenant(s) have not stayed in one property longer than a year (over a long period of time), or of course any black marks against their name in their rental history (such as reports of damage, tribunal hearings, and so on)

Local council and student council awareness programs

-          To help prevent international students being taken advantage of, by illegal profiteers, most CBD campuses of universities around Australia give information about overcrowding as part of student orientation and on boarding processes. This helps to prevent students being taken advantage of.

-          Local councils in densely populated local government areas also investigate reports of overcrowding. If you suspect neighbouring properties near where you live, or where friends live, are overcrowding the rooms, it is best to report them.

-          This in turn helps to combat the issue head-on. The knock on effect is then a more spread out human population throughout capital cities, and this is good for the health of all residents in big cities, because city resources and services are more evenly and fairly distributed for use to all occupants.

Have your agent ask the neighbours

-          As an investor, it is hard to keep an eye on your place when you are not actually living there yourself. This one comes back to having a good agent on board. If there is suspicion that a property is overcrowded, ask your agent to check things such as:

<ul>
<li>
	Neighbour observations. If neighbours notice lots of people regularly coming and going from the property, this could be an indicator.
	</li>
	<li>
	Rubbish share. If the property is a unit and is producing ridiculously high volumes of rubbish contribution to the shared bin areas, this is another indicator. With houses, asking neighbours on rubbish volumes is also a possibility.
	</li>
</ul>
As an investor it is vital to protect the financial prosperity of your property, and overcrowding is one of the nasties to be conscious of. Knowing how to detect if it is happening in your property; what to do if it occurs, and the potential legal consequences of not doing anything about it is an important piece of the investor success puzzle.

 

<hr>
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://www.propertycorrespondent.com.au/" rel="nofollow" target="_blank">Property Correspondent.</a>

 

 

 
</body></html>

cmcevoy-Go82SmsJA9

Overcrowded properties: Why it happens and how to stop it

<html><body>
It was reported recently in October 2013, the NSW state government made the largest monthly windfall on stamp duty since it began recording such data trends back in 2005.
With over $350 million collected in the month of October, stamp duty is unquestionably one of the biggest revenue raisers for NSW.
However, we shouldn’t get too carried away with what, at face value, appears as a larger than usual money-grab by the state government. The increase in stamp duty revenue also needs to take into account some other market factors, such as near-record high auction clearance rates for the months of August, September, and October of 2013. It is within these two to three months that the state government’s stamp duty tax windfall reported, would have been derived from.
It is safe to call a spade and spade and realise that in NSW, higher than usual auction and private sales data – and thus higher volumes of stamp duty collection as a result – is an indication of renewed buyer and market interest in residential property.
And hey, why wouldn’t there be?
The current property market climate has been something of a perfect storm for home buyers and investors alike in recent months. This is especially evident in NSW. Though housing affordability challenges continue to persist, there are just too many well-received positive factors at play that are stirring home buyer and investor market activity. These include:
-          Some of the lowest interest rates on offer of all time
-          Not only are rates low, but some of the most competitive and cost-efficient two-year, three-year, and five-year fixed interest rate deals are on offer. These deals are ‘security’ music to a first home buyer’s ears
-          Though affordability remains a challenge, property values throughout most of NSW have not risen in as high a proportion as other states in the past 12-24 months
-          Previously the construction industry was in a slump, however it is starting to heave back into prosperity and with more construction upstarts and projects commencing, buyer confidence levels boost
As an investor, my view on stamp duty is in a constant state of flux. Though it prohibits many first home buyers from entering the market initially, it can be argued that it also prevents first home buyers entering the market foolishly and setting themselves up for failure. Yes, saving that initial first home deposit will take a little longer due to the needed stamp duty capital being raised, however it also means buyers need to learn more diligent saving and spending habits in their quest to home ownership.
This can be a good thing for buyers who have unrealistic expectations or a view that their first home purchase should be the ‘forever dream beach house’ that they want, long term. First home buyers need to view stamp duty as a challenge; a necessary evil that means they may need to compromise on certain elements of their first property purchase.
Stamp duty also encourages would-be first home buyers to consider renting longer, and perhaps buying a more affordable investment property to start with, saving first home ownership for a few more years down the track. I personally think this is one of the smarter and more cost-efficient strategies out there.
Say for example your goal is to buy your first home, a $500,000 property, within the next few months and you have your 15% deposit saved. Here’s what you’d be up for if you bought it as a home and lived in it for three years:
-          15% deposit: $75,000 (leaving a mortgage value of $425,000)
-          LMI (Lender’s Mortgage Insurance) because you do not have the needed 20% deposit: around $4,000 (that’s $4,000 of wasted money you can never get back or make any claims on)
-          NSW stamp duty on purchase of $500,000 (payable at time of settlement, remember): $18,010 (yes, that is dead money you can never get back)
-          Other settlement costs (legal, any loan fees, searches): $2,000
-          Total upfront payable: $99,010
Assuming you take out a mostly-fixed loan product (say 30 years), two to three years of chipping away at the mortgage will not make much of a dent, because remember, most 30-year mortgages do not start to make headway until around year #5 or #6. You are also liable to pay hefty interest on your mortgage from day one, because of a substantial $425,000 sized mortgage.
In my view, a better strategy for this home buyer is to rent for a few years, but buy a cheaper investment property up front. Let’s say a modest unit or apartment in middle-outer Sydney suburbs, or a well-located property in a regional centre such as Wagga, Newcastle, or the North Coast. Let’s say you still have that $99,000 upfront budget mentioned above to spend.
-          Buy one $250,000 investment property right away
-          Put down 20% deposit (thus negating the need to pay LMI): $50,000
-          This means you have a loan amount of $200,000. I’d take out a split loan that is 60% fixed for three to five years, and 40% variable (with an offset facility that is redraw-capable). This means 40% ($80,000) of your mortgage is offset-capable
-          NSW stamp duty on $250,000: $7,260
-          Other settlement costs (same as above): $2,000
-          You are ‘all in’ for $59,260 initially
-          As for the remaining $30,000 of savings, don’t spend it, but put it into that $80,000 offset account. This means that for the first few years you are only paying interest on $50,000 of offset plus 120,000 of fixed loan = interest payable only on $170,000
-          Over years one to three you continue to rent and pour savings into that offset account, all the while reducing the interest you pay on the investment property. Then in year three, you pull out your original $30,000, plus three years’ worth of savings revenue. Assuming you save an average $20,000 per year, this will see you back at the $90,000 mark to buy your home with.
-          Oh and let’s not forget some of the tax minimisation benefits that often come with well-purchased investment properties. Even if this saves you only a couple of thousand per year, that’s still an additional $2,000 each tax year that will help to ease the mortgage stress of your big chunky home mortgage, when you are ready to buy your home.
This strategy will not work for everyone or every situation. It is not financial advice and is not to be construed or applied as such. However, it is an example of how renting for a few more years whilst having an investment property up your sleeve, can better your home-buying position later on.
Stamp duty is one of those necessary evils in the property game. It may not always be, but for now, it is. In my view, though stamp duty is an evil, it is not the real problem here – a poor buying strategy mixed with unrealistic buying expectations is. Australian property buyers need to get smarter in their home ownership aspirations and realise that the best course to take isn’t always the direct one.

<hr>
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a target="_blank" rel="nofollow" href="https://www.propertycorrespondent.com.au/">Property Correspondent.</a>
 
</body></html>

The best course to home ownership is not always the most direct one 

<html><body>
Australian retail turnover increased 0.5% in October, following a rise of 0.9% in September, according to the latest Australian Bureau of Statistics figures.
Turnover in the cafes, restaurants and takeaway food category recorded the biggest rise, jumping 1.2% for the month.
Food retailing in general increased 0.5%, while clothing, footwear and personal accessory retailing was also up 0.6%.
These gains were partially offset by a 0.3% fall in department store spending.
On a state basis, Tasmania and the Australian Capital Territory recorded the biggest gains, jumping 1.3% and 1.4% respectively.

<hr>
This article first appeared on <a target="_parent" href="https://www.SmartCompany.com.au">SmartCompany</a>.
</body></html>

yredrup-o4Anfe78KF

Retail spending lifts in October

<html><body>
When it comes to owning an investment property, investors tend to put most of their efforts towards selecting the asset, financing it and negotiating the purchase. After they buy, they attend to day-to-day issues like tenant selection and property maintenance, but seldom take the time to review the performance of their asset and assess whether it’s doing the job they need it to do.
Ideally, residential investment property should be held for at least seven to 10 years to ride out market fluctuations and maximise compound capital growth. However, each property performs differently—and not all of them perform at a rate that justifies their long-term inclusion in your portfolio. For this reason, it’s essential to review your property’s performance every two or three years and make the necessary adjustments if it falls short of the mark.
How do you evaluate whether your property is producing the goods—and what should you do if it isn’t?
The best way to find out whether your asset is up to scratch is to determine whether it is growing in value at a faster or slower rate than the median. To do this, ask a couple of local real estate agents for an appraisal of the property’s current market value. Divide this figure by the purchase price and subtract one to work out the percentage increase for the total holding period.
Then, find out the current median value in the city the property is located, along with the median for the year you bought the property. Divide the current median by the older median and subtract one to work out the percentage increase for the holding period.
If you want to take things a step further, you can compare your property’s growth rate with the growth rate for your suburb. Be aware that the small number of properties sold in some suburbs means that a few exceptionally strong sales results can skew the median figure. For this reason, the city wide median should be your primary benchmark.
If its growth rate is higher than the median growth rate, you know it’s earning its place in your portfolio. Sit tight and review its performance again in two or three years’ time.
If its growth rate is lower than the median, there’s a reasonable chance that this trend will continue. At this point, you need to put emotion aside and look at your investment with a critical eye. Is it worth holding on to your asset in the faint hope that ‘things will turn around’, or are you better off selling it and putting the proceeds into something that will work harder over the long term?
If your property’s performance is pretty much level pegging with the median, you’re in somewhat of a grey area. Here, it may be helpful to consider how much longer you’re intending to hold the property. If you’ve already held it for seven to 10 years and only plan to hold it for a couple more, time is working against you because transaction costs like agent’s fees, advertising expenses, capital gains tax and stamp duty will eat substantially into your profits. In this case, it’s probably appropriate to sell it in two years’ time as planned.
On the other hand, if you’ve only owned the property for a few years and plan to hold it for the long term, time is on your side. It may be best to sell it now and reinvest your money in an asset that will work harder for you.
When you’re assessing your investment property’s performance, it’s also a good opportunity to evaluate your financing arrangements. The residential loan market changes constantly, so reviewing your loan structure, interest rate and fees could save you a substantial amount of money, freeing up funds which you can put towards reducing your debt.
By taking the time to crunch the numbers every so often, you’ll be in a better position to make an objective assessment about whether your property is holding its own, or whether it’s best to sell up and put your investment dollars into something that will truly deliver.
 
<hr>
 Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
 
 
 
</body></html>

marmstrong-sd3emVLPPb

Knowing when to sell your investment property

<html><body>
The great migration back to the Melbourne CBD is on.
Fresh research from Jones Lang LaSalle has revealed a notable lift in the number of city fringe occupiers moving back to the Melbourne CBD over the past 12 months. Data from the paper recorded16 "centralised" transactions of more than 1000 square metres, compared with just three over the previous 12 month period.
Another measure was net absorption. In the year ending Q3/2013, JLL said, Melbourne CBD recorded positive net absorption (8,380 square metres) compared with negative net absorption (- 32,550 square metres) in the city fringe.
<img src="/images/stories/2013/12/03/chart_of_the_week_dec_3_one.png" width="470" height="275" alt="chart_of_the_week_dec_3_one">
Driving this migration back to the CBD, said the JLL Pulse report paper was a combination of higher incentives available in the CBD and narrowing of the rental spread between the CBD and decentralised markets which had "accelerated a wave of centralisation".
Another factor it cited was the limited new supply in the city fringe market, along with the significant shortage of contiguous space across. Only 11 prime grade options are available above 1,000 square metres, compared with 39 in the CBD.
The city fringe locations were identified as West Melbourne, North Melbourne, Parkville, Carlton, East Melbourne, Richmond, Abbotsford, South Yarra St Kilda, and Port Melbourne.
<img src="/images/stories/2013/12/03/chart-of-the-week-dec-3-two.gif" width="470" height="287" alt="chart-of-the-week-dec-3-two">
The paper also made a point of saying that there was increasing demand from decentralised occupiers for "quality, well presented stock - driven by cultural change, cost savings, business contraction and expansion activities, and changes in the way people are working." Specifically, it said companies were increasingly seeking enhanced corporate identity through location - connectivity to the CBD, which offered firms closer proximity to clients and competitors.
JLL looked at a number of themes in its report on centralisation. One was the question of cost. JLL said that since 2008, it has recorded 42 major tenant moves (1,000 square metres plus) by occupiers moving into the CBD from decentralised locations. Its analysis showed that 85% of those occupiers had relocated to the periphery of the CBD, with very few locating to the core CBD itself.
But at the same time, it points out that increasing vacancy rates have exerted upward pressure on incentives, notably in the CBD. Over the past 12 months, average leasing incentives increased from 24 months’ rent free (20%) to 35 months’ rent free (29%) - above peak levels recorded during the GFC and currently at their highest level in 17 years, it added.
As such, "city fringe occupiers are increasingly looking at upgrading from lower grade assets and taking advantage of competitive rental terms", JLL said.  "Occupiers are seeking space with a generous fit-out incentive or an attractive turn-key solution which allows them to upgrade from their current accommodation."
Based on its assessment of average rent free periods (based on 10-year term) across a basket of grade A assets in the CBD and city fringe precincts, the average rental spread between gross face rents in the city and city fringe is about 25%.
However, taking into consideration the higher incentive levels offered in the CBD compared to the city fringe, JLL calculates that the average spread on an effective rent basis narrows to 12%. This spread becomes even more acute when comparing submarkets within the CBD and city fringe markets.
Looking out, JLL said believes that a lack of development activity and limited contiguous options for large space users in the city fringe combined with higher incentives available in the CBD will "continue to drive centralisation and support Melbourne CBD demand in the short term." While a number of medium-term lead indicators have started to improve and point towards a demand recovery in the Melbourne CBD.
"A reactivation of business investment projects will have a positive impact on white-collar employment, supporting our forecasts of above trend net absorption in the Melbourne CBD projected for 2016 (75,000 square metres) and 2017 (110,000 square metres)."
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
</body></html>

kjiminez-eaYKfU7qd2

The great migration back to Melbourne CBD office space is on: JLL

<html><body>
Two out of five houses sold to investors last year in Queensland.  Investor interest in townhouses and apartments is much higher, with seven out of 10 townhouses selling to investors and 85% of apartments being sold to non-residents.
Sales to investors are up on 2012, by about 10%.  During 2014 they will get even higher.
This article outlines where most of the investment buying has been taking place across Queensland.
Houses
Most houses in Queensland - like the rest of the country - are purchased by owner-residents.  Investor interest is highest in mining-related regions and in resource-based towns.  Investment interest remains high in those areas, albeit at a lower level than in previous years.
Investor interest - so far this cycle - has been more limited in the south east corner of the state than in Queensland's regions.   This is a trend that is somewhat consistent across townhouses and apartment sales as well.
<img alt="matusik-dec-5-one" height="333" width="470" src="/images/stories/2013/12/05/matusik-dec-5-one.png">
Townhouses
More townhouses sell to investors than to owner-residents.  A trend which is not only evident in off-the-plan/new townhouse sales, but also for resales too.
Owner-resident interest does increase at resale, but only if the townhouse complex has certain features.  These include:
<ul>
<li>
three- or four-bedroom product
</li>
<li>
ensuites
</li>
<li>
off-street parking for two cars
</li>
<li>
private courtyards
</li>
<li>
duplex arrangements
</li>
<li>
smaller complex
</li>
<li>
well located
</li>
<li>
acoustically proofed i.e. limited road traffic noise
</li>
</ul>
The owner-resident interest in townhouses is highest in the south-east.
Townhouse living is becoming more popular in Brisbane and on both the Gold and Sunshine Coasts.  Townhouse development is expected to increase, at the expense of new house/land, across South East Queensland in coming years/decades.
Think townhouses, more maybe, than apartments.
<img alt="matusik-dec-5-two" height="329" width="470" src="/images/stories/2013/12/05/matusik-dec-5-two.png">
Apartments
There is more consistency across Queensland when it comes to apartment sales to investors.  The vast majority of Queensland apartments sell to investors.  The Queensland apartment market is driven by investment selling.
Reflecting the recent market downturn, investor interest in apartments was lowest on the Sunshine Coast and in Cairns and Townsville last year.  In was much lower on the Gold Coast (in 2011 and 2012) than the chart below suggests.  Given the rock-bottom prices being offered for Gold Coast apartments in recent years, it is little wonder that investment interest has increased.
Owner-resident interest is there for resale apartments, but not to the same extent as townhouses or detached homes.
Apartments that attract the most owner-resident resales usually are:
<ul>
<li>
in small complexes
</li>
<li>
have high quality - the <a target="_blank" href="https://matusikmissive.com.au/2012/09/18/four-fs/">four Fs</a>
</li>
<li>
in an established neighbourhood
</li>
<li>
similarly sized (within the same development)
</li>
<li>
on a unique site - view, aspect, height
</li>
</ul>
<img alt="matusik-dec-5-three" height="335" width="470" src="/images/stories/2013/12/05/matusik-dec-5-three.png">
<ul></ul>
Comments
For mine, too much property is still being sold to investors across many parts of Queensland.
The longer term averages are 30% for houses; 65% for townhouses and about 75% for apartments.
Yet, we will see more investment selling of Queensland property as the residential recovery gains more momentum during 2014 and 2015.
Investors should be wary of buying in a project or location which is seeing a lot of investment selling.  There is only so much rental market to go around.
Investors also have a better chance of getting a better <a target="_blank" href="https://matusikmissive.com.au/2013/06/05/what-makes-a-good-investment-2/">resale</a> if the dwelling has owner-resident resale appeal.
Sadly, a lot of Queensland's new residential projects of late, don't.

<hr>
Michael Matusik is the founder of <a href="https://www.matusik.com.au/" rel="nofollow" target="_blank">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  
Read <a href="https://www.matusikmissive.com.au/" rel="nofollow" target="_blank">Michael’s Blog</a> or follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" rel="nofollow" target="_blank">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" rel="nofollow" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
 
 
</body></html>

michaelmatusik-49YzLvdmNv

Investors are taking too large a slice of the Queensland property market

<html><body>
The Reserve Bank of Australia has left the official cash rate unchanged at 2.5%, in line with analysts’ predictions.
It is the fourth month in a row the Bank has left rates unchanged at a 53-year low.
The Bank has previously cut rates in August 2013, May 2013, December 2012, October 2012, June 2012, May 2012, November 2011 and December 2011.
Raine &amp; Horne CEO, Angus Raine, said that this is a sign of confidence in the Australian economy, and the role property is playing in the transition away from its mining sector dependence.
"News that some markets took a breather in November will be noted by the RBA, however it’s fair to attribute some of this trend to the disruptive impact of Festive Season celebrations, horse racing carnivals and the like on the business of real estate at this time of year," said Raine.
"The situation with price growth in November also underscores the message that Sydney real estate is a significant distance from a boom scenario. This year, we’ve had growth closer to 12 percent, which represents a moderate, expansion phase in the property cycle. Compare this to the boom year of 2002, when Sydney real estate prices grew by 22%," he said.
This comes as no surprise to a <a target="_blank" href="https://www.propertyobserver.com.au/news/no-rate-change-expected-for-this-afternoon-s-rba-announcement/2013120266721?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=tweetoftheday">number of different economists and sources who predicted the rate would remain stable</a>.
Finder.com.au's spokesperson Michelle Hutchison said that all nine economists who took part in their survey were correct, predicting rates to remain stable.
"They also told <a href="https://finder.com.au/" target="_blank">finder.com.au</a> that they think the next rate change will be an increase, with seven out of the eight experts betting on the next rate rise in 2015, while one said it could be in the second half of next year," she said.
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@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