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 Australian Bureau of Statistics (ABS) released national population projections earlier this week.  The data looks at the projected growth in the national population from 2012 through to 2101 and the data provides a fascinating insight into the potential future of Australia over the coming years and decades.
The projections look at three different scenarios which can be read about <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/3222.0Main%20Features52012%20(base)%20to%202101?opendocument&amp;tabname=Summary&amp;prodno=3222.0&amp;issue=2012%20(base)%20to%202101&amp;num=&amp;view=" target="_blank">here</a>.  For the purposes of this post we are utilising ‘Series B’ or the medium level projections.  Based on this series, Australia’s population was estimated to be 22,721,995 persons in 2012, by 2101 the population is projected to be 136% higher at 53,564,333 persons.  Under this scenario we would see the national population from 2012 having doubled by 2071.  Keep in mind Australia was first settled by Europeans in 1788 so it took 224 years to get to the 2012 population and it projected to double in just 59 years.
Projections are also provided at a state and capital city level from 2012 through to 2061, at which time the national population is projected to be 41,513,375.
<img width="470" height="234" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" src="https://blog.rpdata.com/wp-content/uploads/2013/11/state-by-state.jpg" alt="state by state" class="aligncenter size-full wp-image-2741">
The above table details the estimated population as at June 2012 and the percentage of the national population across each state and compares it to the same projected data for 2061 as well as showing the average annual growth rate over the period.  At a state level, the proportion of the national population is projected to fall in New South Wales, South Australia, Tasmania and Northern Territory.  The proportion is projected to remain static in Victoria and rise across Queensland, Western Australia and the Australian Capital Territory.  Western Australia (2.0%), Queensland (1.5%) and the Australian Capital Territory (1.4%) are projected to record the greatest average annual rate of population growth while Tasmania (0.2%), South Australia (0.7%) and New South Wales (0.9%) are projected to record the lowest growth rate.
Of course these are just population projections and are no way set in stone however, it does seem inevitable that the population of the country will expand substantially (even based on the low series of assumptions) over time.  The big question remains where and how will we house all of these additional citizens? Based on the data provided in the release it seems that a significant majority of the population will continue to live within our capital cities.
<img width="470" height="205" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" src="https://blog.rpdata.com/wp-content/uploads/2013/11/cap-city-by-cap-city-580x253.jpg" alt="cap city by cap city" class="aligncenter size-large wp-image-2742">
The above table details the estimated population as at June 2012 and the percentage of each state’s population across each capital city and compares it to the same projected data for 2061 as well as showing the average annual growth rate over the period.
There are quite a few interesting points to take from these long-term projections.  Firstly, by 2061 Sydney will no longer be the nation’s most populous city and Brisbane will no longer be the nation’s third most populous city.  Melbourne will overtake Sydney as the most populous city in 2053 and Perth will overtake Brisbane as the third most populous city in 2028.
The proportion of Australian’s living within a capital city is already quite high at 66.1% however, this is projected to increase to 73.4% by 2061.  Think about that, out of a projected population of 41.5 million, almost three out of every four Australians will live in a capital city.  If we focus on the four most populous capital cities, 57.3% of Australians currently live in Sydney, Melbourne, Brisbane or Perth.  Based on the population projections, by 2061 65.8% of the total national population will live in Sydney, Melbourne, Brisbane and Perth.
Should this scenario actually come to fruition it will create significant challenges for each of these cities.  Obviously housing is a challenge which immediately comes to mind, how and where these people can be housed and what it would mean for property values.  Over time the capital city areas do expand however, for a city such as Sydney that is surrounded by water and national parks the scope to expand is quite limited. No wonder the inner city areas are undergoing such rapid densification.
Elsewhere you can continue to grow the urban sprawl but there must be a consideration around how people travel around the city and commute to their jobs.  Transport infrastructure is typically already insufficient, without appropriate investment levels how much worse would it be by 2061?  Of course, for some, purchasing a home in a capital city is already out of reach; how do governments ensure that a greater number and proportion of capital city residents doesn’t just lead to further escalation of property values?
Of course these figures are in no way set in stone however, it does appear that the country’s population will continue to grow which will pose myriad challenges.  In my opinion the greatest concern is the projection of a greater centralisation of the population to our capital cities and more pointedly the four most populous cities. 
As mentioned, in each of these cities there are already affordability barriers for certain home buyer cohorts and investment in transport infrastructure has not been sufficient.  In my opinion we should be looking to a decentralisation of the population rather than encouraging more and more people to the capital city.  Not only do regional markets tend to have lower house values, in many instances they offer a superior lifestyle than that which is available within our major capital cities. 
The biggest challenge of course is employment in regional areas however, with the advent of high speed internet and major infrastructure projects such as the National Broadband Network (NBN) we will hopefully see the nature of work change with more telecommuting taking place and less focus on physically being located within an office. 
Alternatively, many businesses do not necessarily need to be located within a major capital city.  Perhaps governments could incentivise major businesses to locate their headquarters or major offices outside of Sydney, Melbourne, Brisbane or Perth.

<hr>
Cameron Kusher is senior research analyst at <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/">RP Data</a>.
 
 
</body></html>

ckusher-ujnxiKuFQs

How will Australia cope with the housing demands of a doubled population?

<html><body>
Not much to report on the share markets: the Fed taper keeps getting deferred and US stocks remain in a significant uptrend.
There has been a lot of talk about shorting the market over the last few years due to the world ending - and it still might yet. There are a lot of debt-related issues in the world (both public and private) where the full pain of a long-term resolution has never fully been taken.
But you'd have done very well indeed just to hold the index - the Dow Jones Industrial Average is +27% year on year...and the returns since the middle of 2009 have been staggering.
The share market recovery has been less dramatic in Australia, in part due to a historically strong Aussie dollar which may have made our stock market less appealing to foreign investors.
Nevertheless, excellent returns for holder over the past half decade, particularly for those holding strong dividend-paying stocks.
You could have done well from shorting the market if you timed your entry and exit well, but that's a tough gig to get right for most average traders/investors.  As a general rule, for most people, there is a far greater chance of long-term success through owning quality income-producing assets.
<img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="400" src="https://hfgapps.hubb.com/asxtools/imageChart.axd?s=xjo&amp;pi=Index&amp;ct=3&amp;tf=M5&amp;ovs=&amp;si=Code%20not%20supplied&amp;tima1=0&amp;tima2=0&amp;bi=2&amp;bima=0&amp;comt=index&amp;ds=xjo&amp;dovs=0&amp;ex=ASX&amp;ex2=ASX&amp;val=1&amp;stmp=20131127092914225" height="275">
Source: ASX
I keep reading articles about how, for various reasons, property in Sydney is not a good investment. Well, you can keep telling yourself that if you like and if it makes you feel better, but unfortunately, that's nowhere near being the case.
SQM produces an excellent <a target="_blank" href="https://www.sqmresearch.com.au/graph_median_weeks.php?region=nsw%3A%3ASydney&amp;type=c&amp;t=1">'vendor sentiment index'</a> based upon asking prices by property type and by capital city. It's one of my favourite reporting tools. Here is their key:
<a style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;" imageanchor="1" href="https://3.bp.blogspot.com/-3OLWG4aNmhc/UpUjPkJIiTI/AAAAAAAAK8g/tkxEZL4vgyM/s1600/key.jpg"><img style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="400" src="https://3.bp.blogspot.com/-3OLWG4aNmhc/UpUjPkJIiTI/AAAAAAAAK8g/tkxEZL4vgyM/s400/key.jpg" height="137" border="0"></a>
And here has what has happened to Sydney dwelling prices since the financial crisis, which is to say, sentiment has been very, very strong across all property types. And sentiment is continuing to get stronger, with SQM forecasting a boom in prices of 15-20% in 2014.
Vendor expectations are getting higher, and as anyone who has actually bought in the established Sydney market of late will know, there are stacks of buyers out there ready to meet them.
<a style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;" imageanchor="1" href="https://4.bp.blogspot.com/-BneE8m7x4Ck/UpUjXszvRrI/AAAAAAAAK8o/M7-pc-LKFC0/s1600/Sydney+SQM.jpg"><img style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="400" src="https://4.bp.blogspot.com/-BneE8m7x4Ck/UpUjXszvRrI/AAAAAAAAK8o/M7-pc-LKFC0/s400/Sydney+SQM.jpg" height="167" border="0"></a>
Source: SQM
If you think back to my posts on population growth, <a target="_blank" href="https://petewargent.blogspot.com.au/2013/11/whats-going-to-happen-to-australias">here</a> and <a target="_blank" href="https://petewargent.blogspot.com.au/2013/11/more-on-population-growth">here</a>, combined with an inherent under-supply in the harbour city and low interest rates, it's not hard to see why.
Sure, population growth in itself does not cause property prices to move higher, but in the supply-constrained desirable suburbs that is precisely the impact it is having.
Wondering whether Adelaide will start to pick up a bit now? You'd think it would have to sooner or later after a very uninspiring and under-performing five years, but at this stage, according to SQM's vendor sentiment index...no dice.
<a style="color: #253fff; margin-left: 1em; margin-right: 1em;" imageanchor="1" href="https://3.bp.blogspot.com/-AGHPjKupxTI/UpUoKQ5zvcI/AAAAAAAAK84/swYEKC12f50/s1600/adelaide+sqm.jpg"><img style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="400" src="https://3.bp.blogspot.com/-AGHPjKupxTI/UpUoKQ5zvcI/AAAAAAAAK84/swYEKC12f50/s400/adelaide+sqm.jpg" height="163" border="0"></a>
Source: SQM

<hr>
Pete Wargent is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
 
 
 
</body></html>

pwargent-M4siyDbqQY

The good (and the not-so-good) investments since the GFC

<html><body>
The Commonwealth Property Group has terminated its exclusive takeover talks with the Dexus consortium, in the wake of the $3 billion GPT rival bid last week.  
The decision to end the "process agreement" was specifically due to Dexus and its partner the Canadian Pension Fund not matching the competing proposal from GPT within the specified period of time spelt out in the agreement. The decision allows GPT to start talks with the Commonwealth Property Fund (CPA). 
However, CPA management did say that the Dexus consortium "may undertake further due diligence on CPA, on a non-exclusive basis until 9 December."   
Last week, Credit Suisse analyst said it that it may be difficult for the Dexus consortium to match the competing bid offer.
GPT is offering $O.75325 in cash and 0.141 GPT security for every CPA unit. Based on GPT's closing price on 18 November, the offer values CPA units at $1.272.
The Dexus and Canadian Pension Fund offer is valued at $1.219 per unit. 
One reason Credit Suisse gave was that "if DXS were to match GPT’s offer by increasing the cash offer by 2.7¢ to 73.7¢, implying a total bid price of $1.24, this would see EPS accretion (FY15) reduce to ~1.3–1.8% as compared to the guidance of 2–2.5%". 
On that basis, net tangible asset dilution would increase from 1.9% to 2.7%, they said.  "As a result, we see limited scope for DXS-CPPIB to justify any further premium".
However, with Dexus already holding a key blocking stake of 14.9% in CPA, a likely end scenario is a break up of CPA's $3.8 billion property portfolio. Dexus has already said it won't be supporting the rival offer and GPT needs to reach a compulsory acquisition target of 90% before it can offload any of the CPA assets.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>     
</body></html>

kjiminez-eaYKfU7qd2

CPA terminates exclusive takeover talks with Dexus consortium

<html><body>
A pronounced shortage of stock and heightened competition for property assets is forcing offshore investors into capital partnerships with local players to secure a foothold in the Australian property market.
The findings were revealed in new research from Cushman &amp; Wakefield which showed that since the end of the GFC, the total value of transactions recorded in the Sydney, Melbourne and Brisbane office markets had topped $10 billion in the 12 months to June 2013.
But despite that significant spike, the report pointed out that there had only been a limited number of direct property purchases.
Cushman &amp; Wakefield associate director of research and consultancy Peter Ainge attributed that shift to the increasing practice of capital partnerships.
“The proportion of capital partnerships to total sales has grown rapidly since the end of the GFC, with 46.4% of transaction volumes recorded in the Australian retail market and the eastern seaboard office markets in 2012 involving a capital partnership,” he said.
This year, the proportion of capital partnerships to total sales slipped back to just below 40%.
Cushman &amp; Wakefield estimates the weight of money from offshore buyers aimed at Australian commercial assets to be US$16.5 billion (AU$18.5 billion) as at September. Combined with the shortage of prime available stock, Ainge said “it is clear that offshore investors need to get creative to penetrate the domestic market.”
Sydney was where capital partnerships had been the most prominent, the report said. One notable partnership was the $1.2 billion privatisation of the Charter Hall Office REIT, which saw the grouping of the Government of Singapore Investment Corporation (GIC), PSP Investments from Canada (PSPIB) and Charter Hall Group.
Stockland was another prominent name recognising this trend, it said, having made available a stake in its Piccadilly Centre in Sydney CBD, which should appeal to offshore money.
“As well as the shortage of prime stock making capital partnership a necessity for offshore investors intent on investing in Australia, the relatively higher barriers to investment when acquiring prime property investments is another important driver of this model,” said Mr Ainge.
The report cited a number of pros and cons in capital partnerships.
Among the advantages identified by Ainge were access to prime assets that would otherwise be unavailable, lower entrance costs, access to existing management expertise, reduced single building exposure and increased portfolio diversification. On the flipside, he said adopting a capital partnering relationship still required risk mitigation when it came to the potential for difficulties in exit strategy, pricing risk and the investor having limited control of the asset.
With investment appetite for core Australian investments continuing to grow, and alternative investment opportunities shrinking rapidly, “it is expected that the uptake of the capital partnership model will continue to grow in popularity,” it concluded.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
</body></html>

Offshore investors forced into local capital partnerships by lack of stock, heightened competition: Cushman & Wakefield

<html><body>
Tasmania recorded the nation's highest level of mortgage arrears for a second consecutive quarter, according to the latest report by Standard &amp; Poor's Ratings Services.
Six of the 10 worst-performing postcodes were in New South Wales, the standard mix of coastal areas and suburbs on the outskirts of Sydney.
Overall Australia's level of arrears for subprime loans in the June quarter was the lowest in 13 years, but loans greater than 30 days in arrears totalled 1.68% in Tasmania.
Next was New South Wales, at 1.48%, and Queensland, at 1.40%, according to the report, RMBS Performance Watch: Australia which compiles data from residential mortgage-backed securities which are a means for lenders to raise funds by selling bundles of loans to investors. It involves a high proportion of non-bank originators and financial institutions and subprime and low-doc lenders.
But there's also now the latest RP Data analysis that details the weakness of the Tasmanian property market saying Hobart has experienced the weakest performing market over the past year of all capital cities with home values falling by 0.7%. The median house sale sits at $325,000 and units at $236,000.
"The Hobart market weakness has been consistent over recent years with it also the weakest market over the past five years," RP Data's Tim Lawless noted.
"Unfortunately most other indicators remain weaker now than they were a year ago," he added.
<div title="Page 12" class="page">
<div class="layoutArea">
<div class="column">
Hobart Property Values
<ul>
<li>
? 6.0% quarter
</li>
<li>
? 0.7% year
</li>
<li>
? 1.8%  per annum over last five years
</li>
<li>
? 2.9% per annum over past 10 years
</li>
<li>
? 7.3% per annum over past 15 years
</li>
<li>
? 15.2% from peak
</li>
</ul>
</div>
</div>
</div>
<a target="_blank" href="https://www.propertyobserver.com.au/news/tasmania-s-unemployment-rate-holds-back-property-investment-but-watch-growing-overseas-student-numbers/2013110666223">I've recently written on Tasmania's high overseas student numbers</a>, but tourism activity on the island is expected to drive the brightest prospects for Tasmania's economic growth.
Earlier this month the Tasmanian motoring group RACT added the 60-room Freycinet Lodge, 60-room Cradle Mountain Chateau, and Strahan Village to its property portfolio.
It already includes the Grand Mercure Hobart Central Apartments, which it bought in partnership with the RACV for $25 million in June.
The motoring group will also take ownership of Gordon River Cruises.
The Farrell family’s Federal Group will maintain a small investment in the tourism assets with the deal done through Knight Frank Tasmania managing director Scott Newton. 
 The four assets are currently profitable but were operating at below preferred occupancy levels.
The RACT hopes its member base and seven million mainland affiliate automobile members will be willing tourists.
The deal comes as signs of an improvement emerge in Tasmanian tourism.
For the year ending June 2013, Tourism Tasmania reported that visitor numbers were up 12% to 961,600.
The total nights spent in Tasmanian hotels rose 7% with visitors spending $1.5 billion over the year which was 10% more than in 2012, the Tasmanian Minister for Tourism Scott Bacon said.
Federal still owns Hobart's Wrest Point casino and Launceston's Country Club casino along with the luxury resort Saffire on the state's east coast and the Henry Jones Art Hotel in Hobart.
The sale has likely freed up capital for Federal to develop a luxury hotel at Port Arthur.
The 4.5 Star Freycinet Lodge (pictured below) in coastal bushland on the shores of Great Oyster Bay. It includes 60 one and two-roomed cabins, restaurants and conference facilities. The property is leasehold with 41 years remaining, issued by Parks and Wildlife Service.
<img alt="freycinet-nov-27-one" height="317" width="470" src="/images/stories/2013/11/27/freycinet-nov-27-one.jpg">
Photo courtesy of Freycinet Lodge
The 4 Star Cradle Mountain Chateau includes 60 standard twin rooms, king spa rooms and deluxe split level suites, restaurants, bars and conference facilities.
Strahan Village, located on the bank of Macquarie Harbour on Tasmania's west coast. It features include two main areas of accommodation, four food and beverage areas including Hamers Hotel, View 42 Restaurant &amp; Lounge, Fish Café and Banjo’s Bakery and various tourism activities.
Gordon River Cruises is located on the Gordon River. 
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
<div class="page" title="Page 1">
<div class="layoutArea"></div>
</div>
</body></html>

jchancellor-FAypfDUnLy

Motoring group RACT driving Tasmanian tourism boost as mortgage arrears linger

<html><body>
First off today an apology to the young RMIT student to which the two images below belong.  Currently on display within level ten of the <a href="http://www.designhub.rmit.edu.au/" target="_blank">RMIT Design Hub</a> building, the scheme below is one of many works conceived by this years crop of students.  With no visible student name of number, we can't credit this design to any particular student...so if any information is forwarded, Apartments.com.au will be happy to publish the details.
On the student creation, it's envisaged as an integrated transport hub catering principally toward the movement of freight.  Air, sea, rail and road transport options are incorporated into the design located on the current Toll Automotive dock which meets Williamstown Road.  With an associated hotel, office building and public transport station, it surely is a grand design.  
Now Apartments.com.au wouldn't be so daft as to critique this particular design, yet it does provide a visual context as to the article that will follow. 
<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/IMG_00031.jpg" rel="gallery-all" title="Rmit student designed airport located within Port Melbourne"><img alt="" class="image-article-full-width-702px" src="http://urbanmelbourne.info/sites/urbanmelbourne.info/files/styles/article_full_width_702px/public/pictures/article-images/IMG_00031.jpg?itok=Pt2fKcjp" title="Rmit student designed airport located within Port Melbourne" typeof="foaf:Image"></a>
As recently as July <a href="http://www.heraldsun.com.au/news/victoria/docklands-airport-plan-slammed-as-8216crazy8217/story-fni0fit3-1226687150609" target="_blank">media reports</a> suggested the possibility of an airport being built within Melbourne's Docklands area. According to the Herald Sun the suitably named <a href="http://www.parliament.vic.gov.au/osisdc" target="_blank">Outer Suburban/Interface Services and Development Committee</a>, made up of three Liberal and two Labor MPs, urged the Victorian Government to consider a city airport (in many ways quite similar to<a href="http://www.londoncityairport.com/" target="_blank"> London City Airport</a>) which would "Better service low-cost segments of the aviation market."  Further "The committee believes that a Melbourne City Airport could be a useful ... particularly for commuter-type domestic flights and short-haul international flights such as to New Zealand." 
The committee report stated "Such an airport could be a useful addition as part of a comprehensive brownfield redevelopment area near the centre of Melbourne, such as Docklands," said the report, which was handed down during June.
<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/Img_96041.jpg" rel="gallery-all" title="An aerial perspective of the site in question"><img alt="" class="image-article-full-width-702px" src="http://urbanmelbourne.info/sites/urbanmelbourne.info/files/styles/article_full_width_702px/public/pictures/article-images/Img_96041.jpg?itok=LAAGxSgM" title="An aerial perspective of the site in question" typeof="foaf:Image"></a>
Given the stupendous size and expense of such a venture, what would be the inhibiting factors for this city airport....aside from common sense?
<ul>
<li class="rtejustify">
		The Westgate and Bolte Bridges, built obstacles in any such venture.  With minimum separation required the alignment and location of any runway is surely compromised.</li>
	<li class="rtejustify">
		Melbourne's variable winds.  Although the prevailing north/south winds would dictate runway alignment, a single runway would unlikely be operational for periods of time</li>
	<li class="rtejustify">
		Two efficient existing airports with a third major airport mooted on suburban Melbourne's south eastern fringe.</li>
	<li class="rtejustify">
		The ground swell of public opinion demanding a dedicated rail line to Melbourne Airport</li>
	<li class="rtejustify">
		Encroaching populous as Fishermans Bend is progressively developed, not to mention existing areas </li>
	<li class="rtejustify">
		Aircraft noise, and many more</li>
</ul>
So the Docklands airport notion has been dispelled as the random musings of a committee justifying their existence.  Now for the crux of the article, rather than ideas of folly would it not be more appropriate to invest in a rail link to Melbourne Airport, but also further study the eventual relocation of the Port of Melbourne?
This is very much a long term stance yet the initial planning has been done.  The Port of Hastings has already been earmarked as a <a href="http://www.peninsulaweekly.com.au/story/1406932/port-of-hastings-development-premier-unveils-110m-kickstart/" target="_blank">major future container port</a>, as has a <a href="http://www.theage.com.au/victoria/government-urged-to-consider-secret-bay-west-option-for-port-20120903-25amq" target="_blank">section of land</a> between Point Wilson and Werribee South.  At what point would common sense suggest Avalon as a contender where Avalon Airport owner Linfox Group has for a long period of time trumpeted their desire to turn the facility into a freight hub amalgamating rail, air and sea movements.  
Throw in pending developments such as Salta Group's inland ports at Altona and Lyndhurst which are essentially integrated freight logistics, container handling, storage and distribution centres along with the mooted south eastern airport and a picture is starting to emerge of a future outer metropolitan arc of infrastructure designed to handle Melbourne ever burgeoning freight movements.  At either end of this arc may just be Melbourne's two international ports.
<a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/both_maps_combined.jpg" rel="gallery-all" title="City of Port Phillip map, aircraft noise anyone? Image courtesy City of Port Phillip"><img alt="" class="image-article-full-width-702px" src="http://urbanmelbourne.info/sites/urbanmelbourne.info/files/styles/article_full_width_702px/public/pictures/article-images/both_maps_combined.jpg?itok=UFJIdfZM" title="City of Port Phillip map, aircraft noise anyone? Image courtesy City of Port Phillip" typeof="foaf:Image"></a>
Could the way forward be a model where cumbersome shipping, freight and associated industry are one the urban periphery - on the outside looking in?  This is of course diametrically opposed to the current model where Port of Melbourne (and the notion of a city airport) are at the heart of Melbourne, causing some metaphorical heartburn I might add.  
Consider this - amazingly enough the image above will one day be dominated by high density housing and commercial use, in effect creating a megatropolis from Footscray to Fishermans Bend.  Gone will be the Port of Melbourne, in its place swathes of new development land which could soak up Melbourne's burgeoning population over not years but decades.  Port Melbourne, Docklands, Southbank, Fishermans Bend and E-gate are examples of existing and future examples of mixed purpose development over what was formerly industrial land in order to assist an expanding central Melbourne.
Freight would be efficiently distributed to transport centres without having to traverse inner urban areas, a larger percentage of the population would live closer to Melbourne's CBD allowing for decreased use of private vehicles and a decrease in inner Melbourne truck journeys alleviating to a degree strains on current road infrastructure.  More people living within a certain radius of the CBD suggests that public transport would benefit due to economies of scale involved - high frequency services for a high density population...and so I could continue on and on.
Now some will suggest this is pie in the sky material, but certainly not as whimsical as an airport based within the City of Melbourne.  The initial steps in identifying the long term shift of Port of Melbourne have been taken, whether it occurs in our lifetime is another question.
</body></html>

silvermb

Standing on the outside looking in...

<html><body>
The tide is turning for Australia's bulky goods centre sector, with both investor demand returning and yields likely to tighten in 2014.
For years bulky goods have been seen as higher risk than other retail property assets. But new research from Colliers International is showing that a recovery is underway in bulky good sales, in particular in the key household goods, hardware and garden supplies categories. The research further found that a "pick up" in the sector is emerging in retailer demand.
<img src="/images/stories/2013/11/27/chart-of-the-week-nov-27-one.gif" width="470" height="302" alt="chart-of-the-week-nov-27-one">
"Investor interest in the prime end of the bulky goods sector is starting to see signs of an increase in the depth of demand, with a number of large transactions having occurred over the last 12 months," said the Colliers report titled Balancing the tenancy mix. “This reflects the expectation that market conditions will improve and the favourable terms (higher yields) at which assets in this sector can presently be acquired".
Year-to-date transaction volumes for bulky good centre assets of more than $10 million totalled $653.95 million, with 18 transactions recorded. Based on those numbers, volume is above the five year average of $576 million but well down on the total sales volume of $944 million achieved in 2012, it said.
Despite some of the positive numbers for the sector, one key measure which remains soft is yields. Average yields across the 18 transactions, Colliers noted, indicated a further softening of yields to 10.6%. That compares to the previous year's 9.3% and 8% in 2008.
However, Colliers said that values in the sector appear to have bottomed and that private investors had been "building up" their portfolios.
Rents were steady for bulky goods centres and vacancies tightened nationally.
The report concluded that while the bulky goods sector is considered higher risk than other retail investments, "this risk currently appears to be overpriced, and therefore there is scope for yields to tighten during 2014."
It also believes that with interest rates low and the anticipated increase in residential transactions, sales for retailers in the bulky goods sector was likely to improve over the next 12 months. "While this is positive, it is likely to take some time to flow through to rents," it said.
Colliers is forecasting rental growth to likely remain in line or slightly above CPI during 2014.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
</body></html>

The tide is turning for the bulky goods sector

<html><body>
Hi Margaret,  
I need your help. Currently I have an old house on a piece of land in Longanlea. I would like to look into subdiving the property. Where do I start?
Appreciate your help and knowledge.  
Thanks  and kind regards,
Stacey
 
Hi Stacey,
Many investors write to me eager to begin a subdivision, as they see it as the chance to make quick profits, easily.  Sometimes it is, but more often than not subdividing ends up being costly, time consuming and very stressful, with the profits made disappointing and sometimes not commensurate with the effort which has been made.  
Before you subdivide, it is critical that you establish the likelihood of being able to make a considerable profit from the exercise, both in terms of the final value of the subdivided property and the improved rental yield.  If you are able to subdivide a property while keeping the existing property (with or without a renovation) then this will always be preferable.  In this case you can essentially end up with a free piece of land, which, if developed, will more than likely be worth more than it was before the subdivision.  While you subdivide you can at least be earning  rental yield from the existing property.
On the other hand, if subdivision requires demolition of the existing property, you really must do your numbers to establish if this is a worthwhile exercise.  Demolition can run to tens of thousands of dollars, and along with the costs of subdivision, which in itself can be up to $50,000, you should be sure that the resulting two blocks, considering any loss of value once they no longer have a dwelling on them (or the improved value once you spend money on erecting two new dwellings) is worth it. 
When establishing this, do be sure to take into account the accruing interest on any loan on the property (which you must pay without the benefit of rental income), and the interest on any loan you need to create the subdivision and/or build new dwellings, all which add to your cost base.  
If you have done the exercise and still feel that there is a chance for profit, the next step would be to consult with a local town planner.  Town planners can guide you and help to establish if the proposed subdivision falls within the council’s development application (DA) requirements.  If it does not, they can also advise what they believe to be the chances that you can be granted an approval under an exemption of some sort, which can happen.  The costs of a town planner, which can be anything from $2,000 - $5,000 should be considered in your subdivision costs.  
The town planner should be able to arrange for you any surveys, engineer’s drawings for driveways, drainage and easements and even prepare the submission for you.  Remember that at this stage you must pay all of these costs prior to even knowing if the subdivision will be approved.  Some councils have good pre- DA processes in place designed to minimise costs and save you submitting a DA application which they would never approve in the first place, while others don’t.  I personally have spent $10,000 in an area in Queensland for a DA which is now dead in the water due to a constantly changing opinion about what can and cannot be done, so there is a very real possibility that you will lose money unless you are sure that your subdivision is straight forward.  
Your DA approval will come with a list of requirements which must be attended before the final subdivision is cleared (such as access-way construction, and any sewer and drainage requirements) and, once done, your subdivision is complete.  Depending upon the council and their policy, this can take three months or it can take 12 months – there seems to be no standard here, and however long it takes you’ll have money on the table not getting a return and essentially adding to your costs.
Regards,
Margaret
 
<hr>
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News.
She is the founder of <a rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
 
 
     
</body></html>

mlomas-KC9MUPZ6Ca

I want to subdivide, but where do I start?

<html><body>
Congratulations — you’re having a baby! Your head will be full of plans for medical check ups, baby names, cots and prams.
In the midst of all the excitement, there’s one issue many expectant parents overlook. If you’re taking leave from paid employment to be with your child, how will this affect your finances? Will you be able to afford your mortgage and other living expenses, or will you need to reshuffle the deckchairs?
All too often, parents leave these considerations until after the baby is born, their income is significantly lower, and they’re struggling to meet their commitments.
That’s why, after you’ve called your family and friends to break the good news, it’s important to contact your lender, broker or financial adviser and put plans in place to ensure you can fund your new lifestyle.
If you have a mortgage and think your finances may be stretched, speak with your adviser about reducing your repayment amount. It’s particularly important to do this well ahead of your baby’s birth, because — regardless of whether you’re varying the terms of an existing loan or changing to a different one — lenders use a ‘snapshot’ approach when assessing your application.
This means you must present yourself and your finances in the best possible light — which is why the best time to apply is when you’re still earning the maximum possible income, not after the birth when your income has dropped substantially. The last thing you need on top of sleep deprivation and wet nappies is to be forced back to work early because of financial pressure!
There are several ways to reduce your repayment amount.
Extend your loan term.
Let’s say you have 23 years left on a 30-year principal and interest loan of $300,000 at the standard variable rate of 5.9%. Your minimum monthly repayment will be $1,989. By extending your loan term back to 30 years, the amount would drop to $1,779.
 
Change from principal and interest to interest only.
Loans for owner occupiers are usually structured so that you pay off a small amount of principal alongside the interest. This helps reduce your loan balance faster than if paying interest alone. However, when your income drops after having a child, changing to interest only can ease the squeeze. Using the example above, the borrower’s new repayment would be $1,475 — a saving of a further $304 per month.
 
Renegotiate your interest rate.
The home loan market is constantly changing so if you’ve had your loan for more than two years, there may be a better option out there. For example, many lenders will offer a discount of 0.7% or more off the standard variable rate.
By extending their loan term, changing to to interest only and negotiating a discounted rate, our $300,000 borrower will pay $1,300 per month — freeing up a massive $689 to help meet expenses while their income is reduced.
Find your safety net.
Make sure your loan includes a redraw facility. If your property has increased substantially in value since you bought it and/or you’ve made extra repayments, a redraw facility can help you access these funds. Alternatively, you may be able to establish a line of credit, enabling you to draw on some of your equity to fund living expenses if required.
By planning your property and loan commitments well ahead of time, you can stop worrying about your finances and concentrate on something far more important — your new son or daughter.
 
<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

Great expectations: How to stop your bundle of joy burning a hole in your pocket

<html><body>
Tenant damage is not a new phenomenon, and it strikes fear into the hearts of many investors. We've compiled a list of some of the more terrible cases of tenant damage we've read about across the globe.
Vote on yours at the bottom in our poll of the day, and send in your own examples.
1) $13,000 worth of damage - and all on video
{qtube vid:=ovtinAAqb_Y}
This video shows $9,000 worth of tenant damage from a Section 8 Housing Tenant in the United States. It shows significant carpet damage, and the tenants' own paint job, among dirt, broken doors and more.
Across their multiple condos, there was a total of $13,000 damage.
2) Peanut butter on the walls
This 2012 story has to be seen to be believed, as we were wide-mouthed reading it. The <a href="https://www.thestar.com/life/homes/2012/09/27/my_tenant_wrecked_the_place_now_what" target="_blank">Toronto Star reports</a> that landlord 'Steven' evicted his tenant with the Sheriff, to find the apartment destroyed.
Broken sinks, toilets, doors, windows and light switches were just the start of his worries... there was ketchup and peanut butter on the walls as well! The tenant also seemed to act particularly maliciously in pouring dried rice down the toilet to clog it.
3) Damp, dog excrement and damage
UK's <a href="https://www.thenorthernecho.co.uk/news/10419114.Couple_s_devastation_as_former_Darlington_home_wrecked_by_tenants/" target="_blank">The Northern Echo discusses</a> landlords who rented out their three-bedroom former home.
Coming home to find it riddled with damp, dog excrement, an overgrown garden, ripped wallpaper, a smashed bath screen and cupboard doors hanging off... it's not a pretty picture.
4) Rotting rubbish in every room
The <a href="https://www.qt.com.au/news/rental-house-of-horrors/1984543/" target="_blank">Queensland Times earlier this year</a> pointed to this rental house of horrors, with piles of garbage left rotting and reeking throughout the house (including food waste), punched in walls, uprooted trees and plants, and all sorts of mess.
This was in Wallbank, and the landlord didn't take a bond from the tenant. He noted he now had to sell the property due to the financial hardship caused.
Read this article from Leah Calnan as to <a href="/news">why taking a bond is always crucial</a> (if you're still not convinced).
5) £20,000 worth of destruction
UK-based landlord, Glenn Schofield, rented his four-bedroom property to an 18 year old in 2011. The teen's girlfriend moved in, and problems started to occur with complaints from the neighbours. Suddenly, the rent stopped, <a href="https://www.dailymail.co.uk/news/article-2063189/Tenant-hell-trashed-home-leaving-landlord-20-000-clean--wont-pay-penny#ixzz2lhft2XDC" target="_blank">reported the Daily Mail</a>.
After finally getting the tenants to leave in August, he spent £2,000 cleaning and had a quoted £18,500 bill to fix everything left - from broke appliances to a blocked and overflowing toilet.
Broken windows, mess and, the worst part of all, no compensation ensued. 6) The tenant kept a pig or a goat in here
This month, <a href="https://www.ntnews.com.au/article/2013/11/17/327490_ntnews" target="_blank">NT News reported</a> about a landlord left with a $14,000 repair and rental arrears bill to cover that may have actually been the result of a literal pigsty.
"I heard from other residents the tenant had a live pig or goat in there," the landlord told the local paper. Damaged furniture, walls, lights, and even ceiling fans are on the list making up the repair bill in the Stuart Park home.
Have you ever had a nightmare tenant? Or, have you been on the receiving end of a nightmare landlord?
{module Which of these cases of tenant damage is the worst?}
 
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
 
YOU MIGHT ALSO WANT TO READ: Ask Margaret: <a href="/news">If I buy a property to rent out, what insurances do I need to cover me for the tenants etc? </a>This guide: How to keep good tenants
Click over page for some tips on avoiding this type of damage from your tenants, and what to do when things go wrong.
 
 
<hr class="system-pagebreak">
Tips for avoiding tenant dramas with Carolyn Majda
Think about the type of tenant you want to attract - Consider this before purchasing the property - Think about the demographic of the area - Look for a large pool of prospective tenants Keep up appearances - Poorly presented properties may deter good tenants from applying - Lower maintenance properties are easier to care for by everyone involved - Minimise the effort required by the tenant to keep the property in good order Generate interest - Place good advertising - Ensure the photos present the property well - Provide lease deadlines - Have open inspections at times when the tenants you want to attract are available (e.g. after work hours for young professionals) - Talk to as many potential tenants as possible so you can put faces to the names Screen tenants - Contact their employers to confirm details - Contact previous landlord to discuss any issues - Contact any personal referees listed - Consider speaking to responsible adults if it is their first lease - Access tenant databases Attend to maintenance issues promptly - Do not let your tenant question your commitment to the property - Have a tailored insurance policy that covers malicious and accidental damage
<a href="https://www.propertyobserver.com.au/landlords/how-to-find-and-hold-good-tenants-carolyn-majda/2012071755510" target="_blank">More available here</a>.
 
YOU MIGHT ALSO WANT TO READ: Ask Margaret: <a href="/news">If I buy a property to rent out, what insurances do I need to cover me for the tenants etc? </a>This guide: How to keep good tenants<a href="/news"></a>
 
<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