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

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

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

How Sterling Global designed 623 Collins from Melbourne's history

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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There’s been a lot of debate around property taxation in Australia - significantly negative gearing, which allows an investor to use the short fall between interest repayments and other relevant expenditure, to lower their income tax.  
The policy promotes speculative gain meaning the strategy is only profitable if the acquisition rise in value rather than holding or falling - therefore, in Australia, investor preference is slanted toward the established sector  – the sector that attracts robust demand from all demographics and as such, in premium locations, has historically gained the greatest windfall from capital gains.  
Aside from the impact this creates in terms of affordability (pushing up the price of second-hand stock, burdening new buyers with the need to raise a higher and higher deposit just to enter ownership), it also negatively affects the the new home market, which traditionally struggles to attract consistent activity outside of targeted first home buyer incentive; albeit, the headwinds resulting from planning constraints and supply side policy should also not be dismissed.  
Additionally, capital gains tax and stamp duty have also received much debate. Both are transaction taxes, and therefore have a tendency to stagnate activity, acting as a deterrent to either buying and selling.  
Stamp duty, as modelled by economist <a href="https://andrewleigh.org/pdf/StampDuty.pdf" target="_blank">Andrew Leigh</a>, is shown to produce a meaningful impact on housing turnover, leading to a potential mismatch between property size and household type – a deterrent to downsizing and therefore selling.  
Additionally, it burdens first time buyers by increasing the amount they need to save in order to enter the market and frequent changes of employment concurrent with a modern day lifestyle, are hampered as owners, unwilling to move any meaningful distance outside their local neighbourhood, search for work in local areas alone.  
But, outside of academia and intermittent articles, there is scant debate in Australian mainstream media regarding land value tax and it’s practical impact.  
The theory is taken to its extreme and best advocated by American political economist and author, Henry George, who wrote his publication <a href="https://www.henrygeorge.org/pcontents.htm" target="_blank">Progress and Poverty</a> - an enlightened and impassioned read - and subsequently inspired the economic philosophy that came to be known as ‘Georgism.’  
The ideals of Henry George reside in the concept that land is in fixed supply, therefore we can’t all benefit from economic advantage gained from ‘ownership’ of the ‘best’ sites available without effective taxation of the resource.  
George advocated a single tax on the unimproved value of land to replace all other taxes – something that would be unlikely to hold water in current political circles. However, his ideals won favour amongst many, including the great economist and author of Capitalism and Freedom, Milton Friedman, and other influential capitalists such as Winston Churchill, who gave <a href="https://www.progress.org/banneker/chur" target="_blank">a powerful speech on land monopoly</a> stressing:  
“Unearned increments in land are not the only form of unearned or undeserved profit, but they are the principal form of unearned increment, and they are derived from processes which are not merely not beneficial, but positively detrimental to the general public.”  
In essence, raising the percentage of tax that falls on the unimproved value of land has few distortionary or adverse affects.  It creates a steady source of revenue whilst the landowner can make their own assessment regarding the timing and type of property they wish to construct in order to make profit without being penalised for doing so.  
However, when the larger percentage of tax payable is assessed against the value of buildings and their improvements – through renovation, extension or higher density development for example – not only can those costs be transferred to a tenant, there is less motivation to make effective use of the site. This has a flow on effect which can not only exacerbate urban ‘sprawl’, but also increase the propensity to ‘land bank.’  
The Henry tax review commissioned by the government under Kevin Rudd in 2008 concluded that “economic growth would be higher if governments raised more revenue from land and less revenue from other tax bases,” proposing that stamp duty (which is an inconsistent and unequitable source of revenue) be replaced by a broad based land tax, levied on a per square metre and per land holding basis, rather than retaining present land tax arrangements.  
The Australian Housing and Urban Research Group attempted to mimic the proposed changes using their <a href="https://www.ahuri.edu.au/publications/projects/p30396" target="_blank">AHURI-3M micro-simulation model</a> in a report entitled <a href="https://www.ahuri.edu.au/publications/download/ahuri_80647_fr2" target="_blank">The spatial and distributional impacts of the Henry Review recommendations on stamp duty and land tax</a> .  
And whilst it’s difficult to qualify how purchasers may factor an abolition of stamp duty into their price analysis, perhaps adding the additional saving into their borrowing capacity, and therefore not lowering prices enough to initially assist first homebuyers.  It does demonstrate how over the longer-term <a title="Go to Final Report 182, p.2" href="/Remove Link" target="_blank">falls in house prices have the potential to exceed the value of land tax payments</a>, assisting both owner-occupier and rental tenant as the effects flow through.  
Additionally, increasing the tax base would provide developers with an incentive to speed up the process and utilise their holding for more effective purposes.
And importantly for Australia, it can provide a reliable provision of revenue to channel into the development of much-needed infrastructure.  
The rational for this is coined in the old real estate term ‘location, location, location.’  Everyone understands that in areas where amenities are plentiful – containing good schools, roads, public transport, bustling shopping strips, parks, theatres, bars, street cafes and so forth – increases demand and therefore land values, invoking a vibrant sense of community which attracts business and benefits the economy.  
The idea behind spruiking a ‘hotspot’, such a common industry obsession, is based on purchasing in an area of limited supply, on the cusp of an infrastructure boom such as the provision of a new road or train line for example, enabling existing landowners to reap a windfall from capital gains and rental demand for little more effort than the advantage of getting in early and holding tight whilst tax payer dollars across the spectrum fund the work.
Should a higher LVT be implemented, the cost and maintenance of community facilities could in part, be captured from the wealth effect advantaging current owners, compensating over time for the initial outlay.  Imagine the advantage this would offer residents in fringe locations who sit and wait for the failed ‘promises’ offered, when they migrated to the outer suburbs initially.  
Article continues on next page. Please click below.
 
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Take <a href="https://onthecommons.org/magazine/forgotten-idea-shaped-great-us-cities" target="_blank">New York</a> for example – between the years 1921 and 1931 under Governor Al Smith, New York financed what is arguably the world’s best mass transit system, colleges, parks, libraries, schools and social services shifting taxes off buildings and onto land values and channelling those dollars effectively.  
The policy influenced by Henry George ended soon after Al Smith’s administration, and eventually lead to todays landscape - a city built on a series of islands, with limited room to ‘build out’ facing a chronic affordable housing shortage with the population projected to reach 9.1 million by 2030.
More than a third of New Yorkers spend half their pay cheque on rent alone yet like London, there is little motivation for developers to build housing to accommodate low-wage workers concentrating instead on the luxury end of market, broadening the gap between rich and poor as land values rise and those priced out, find little option but to re-locate.  
New York’s Central Park is the highest generator of real estate wealth.  The most expensive homes in the world surround the park with apartments selling in excess of $20 million, and newer developments marketed in excess of $100+ million.  
Like London it’s a pure speculators paradise – in the 10 year period to 2007, values increased by 73% - owners sit on a pot of growing gold and there’s little to indicate America’s richest are about to bail out of their New York ‘addiction’ with an expansive list of A-list celebrities, high net worth individuals, and foreign magnates, owning apartments in the locality.  
New mayor-elect, Bill de Blasio, who won his seat, based on a promise to narrow the widening inequality gap - preserve 200,000 low and middle income units, and ensure 50,000 affordable homes are constructed over the next decade, will struggle to subsidize plans whist facing a deficit reputed to be as much as $2 billion in the next fiscal year.  
Yet economist Michael Hudson has recently assessed land values in <a href="https://www.salon.com/2013/11/22/end_the_1_percents_free_ride_how_taxing_land_would_solve_americas_biggest_problems/" target="_blank">New York City alone</a> to exceed that of all of the plant and equipment in the entire country, combined.  
Currently more than 30 countries around the world have implemented land value taxation - including Australia - with varying degrees of success not only based on the percentage split between land and property, but how those funds are channelled back into the community and the quality of land assessments in regularly updating and estimating value.  
Pennsylvania is one such state in the USA to use a system which taxes land at a greater rate than improvements on property – I think I’m correct in saying 19 cities in Pennsylvania use land value tax with <a href="https://transportationist.org/2013/08/17/altoona-pennsylvania-adopts-land-value-tax/" target="_blank">Altoona</a> being the first municipality in the country to rely on land value tax alone.  
Reportedly, <a href="https://www.earthrights.net/docs/success" target="_blank">85% of home owners pay less with the policy</a> than they do with the traditional flat-rate approach. When mayor of Washington county, Anthony Spossey, who also served as treasurer from 2002 to 2006 and under his watch enacted an LVT, was <a href="https://www.urbantoolsconsult.org/upload/Mayor%20%20Anthony%20Spossey%20%20on%20LVT.pdf" target="_blank">interviewed</a> on the changes in 2007, he commented:  
“LVT ..helps reduce taxes for our most vulnerable citizens. We have an aging demographic, like the county, region and the state. Taxpayers everywhere are less able to keep up with taxes, and that hurts revenue. LVT helps us mitigate the impact both to them and the city. It’s a win/win.”  
Until fairly recent times, another good example to cite is Pittsburgh. Early in the 1900s the state changed its tax system to fall greater on the unimproved value of land than its construction and improvements.  
Pittsburgh’s economic history is a study in itself, and has not been without challenges.  For those wanting to research further, I strongly advocate some of the writings of <a href="https://www.savingcommunities.org/docs/sullivan.dan/" target="_blank">Dan Sullivan</a> - (former chair of the Libertarian Party of Allegheny County, (Pittsburgh) Pennsylvania) - who is an expert on the economic benefits of LVT and has written extensively on the subject.  
Sullivan demonstrates that Pittsburgh not only enjoyed a construction boom whilst avoiding a real estate boom under a broad based LVT system, but also effectively weathered the great depression whilst maintaining affordable and steady land values along the way.  
In comparing it to other states struggling to recover from the recent sub-prime crisis he points out:  
“In 2008, just after the housing bubble broke, Cleveland led the nation in mortgage foreclosures per capita while Pittsburgh's foreclosure rate remained exceptionally low. Since then, the foreclosure rates in Las Vegas and many Californian cities, none of which collect significant real estate taxes, have passed Cleveland's foreclosure rate. However, on September 15, 2010, The Pittsburgh Post-Gazette reported that while at the end of the second quarter of 2010, 21.5% of America's single-family homes had underwater mortgages (the American term for negative equity), only 5.6% did in Pittsburgh. As a result Pittsburgh was top of a list of the 10 markets with the lowest underwater mortgage figures.”
 
When land value tax is implemented - with the burden taken of buildings and their improvements, ensuring good quality assessments and sensible zoning laws – it not only assists affordability keeping land values stable, but also benefits local business through infrastructure funding, discourages urban sprawl, incites smart effective development of sites, reduces land banking, and as examples in the USA have demonstrated – assists in weathering the unwanted impacts of real estate booms and busts.  
Despite the numerous examples across the world where a broad based land value tax has been deployed <a href="https://www.propertyobserver.com.au/https://blog.p2pfoundation.net/successfull-examples-of-land-value-tax-reforms/2011/02/05" target="_parent">successfully</a>, changing policy and bringing about reform is never easy and rarely without complication.  
Additionally, the implications of a yearly tax on fixed low-income retirees must be handled with care and understanding, as there are ways to buffer unwanted effects whilst changes are implemented.  
Therefore, the process adopted in the ACT which is abolishing stamp duties over a slow transitional <a href="https://www.canberraconnect.act.gov.au/app/answers/detail/a_id/1397/~/tax-reform" target="_blank">20 year</a> period to phase in higher taxation of land is not altogether unwise.  
With any change to the tax system, the headwinds come convincing the public that it’s a good idea. In this respect balanced debate and conversation is necessary, as questions and concerns are brought to the fore.  
The increased tax burden also falls on those who have significant influence across the political spectrum; therefore strong leadership to avoid lobbying from wealthy owners with vested interests is essential.  
Albeit, <a href="/news">as I said last week</a>, we have a new and growing generation of enlightened voters who are well and truly fed up with battling high real estate prices, inflated rents, and care not whether it’s labelled as a ‘bubble’ – but certainly care about their future and that of their children.  
Therefore – I do see a time when all the chatter around affordability, will finally evolve into real action – and a broad based LVT should form an important part of that debate.
 
<hr>
 Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
 
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catherinecashmore-6LXia3pPQj

Is a land value tax the solution to our housing affordability problem?

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Addressing the current misinformation being circulated regarding the Australian Taxation Office's draft ruling on GST for moveable home estates, Commissioner Chris Jordan said that a decision was yet to be made.
The current ruling is still in draft form, and community and stakeholders are welcome to comment.
“We have not made a final decision about charging GST on moveable home estates,” Jordan said.
“There has been a bit of public misunderstanding and I just want to make clear that the draft ruling does not apply to caravan parks and won’t come into play retrospectively," he said.
Released for consultation on 30 October 2013, the <a target="_blank" href="https://law.ato.gov.au/atolaw/view.htm?DocID=DGS/GSTR2013D2/NAT/ATO/00001&amp;PiT=99991231235958">Draft ruling Goods and services tax: supplies made by an operator of a 'moveable home estate' (GSTR 2013/D2)</a> has a preliminary view that a moveable home estate does not fall within the definition of commercial residential premises, as it is not sufficiently similar to a caravan park.
This is due to the more long-term nature of the estate, something that is suggested to have changed over the years.
Therefore, operators would not be able to apply the concessionary treatment of Division 87 of the GST Act to the supply of long-term accommodation to residents.
Submissions close on December 20, with a final ruling expected for mid-2014. Taxpayers are urged to remember not to change their current approach until the final ruling is published.
Feedback can be submitted via (07) 323 8417 or via <a target="_blank" href="mailto:steven.iselin@ato.gov.au">steven.iselin@ato.gov.au</a> <a target="_blank" href="https://mce_host/jduke@propertyobserver.com.au"> jduke@propertyobserver.com.au</a>
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jduke-EHk3XBmHkn

GST rules may change for moveable home estates 

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Foreign investment has been a key issue in national policy debate. Surging levels of foreign investment have provided a fillip to the Australian economy during the <a target="_blank" href="https://www.rba.gov.au/publications/bulletin/2009/nov/pdf/bu-1109-1.pdf">global financial crisis</a>, and have been instrumental in <a target="_blank" href="https://www.propertyobserver.com.au/https://www.rba.gov.au/publications/bulletin/2013/mar/6">financing the resource boom</a>.
However, it has also caused a number of political controversies, particularly over the impact of Chinese <a target="_parent" href="https://www.tandfonline.com/doi/abs/10.1080/10357718.2011.563779#.UoVsrPlmh8E">state-owned enterprise</a> investments and the sensitive issue of foreign investment in <a target="_blank" href="https://theconversation.com/why-not-let-agriculture-benefit-from-foreign-investment-19433">agricultural land</a>. Such has been the attention that no fewer than <a target="_blank" href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Completed%20inquiries/2010-13/foreignacquisitionfarmland2011/index">three</a> <a target="_blank" href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Completed%20inquiries/2008-10/firb_09/index">Senate</a> <a target="_blank" href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Rural_and_Regional_Affairs_and_Transport/Completed%20inquiries/2012-13/firb2011/index">inquiries</a> have been launched into foreign investment issues in recent years.
But a major finding of the <a href="https://www.murdoch.edu.au/Murdoch-Commission/">First Murdoch Commission</a> is that while Australia is relatively successful in attracting foreign investment overall, its investment ties with Asian partners remain relatively under-developed.
Commission of inquiry
Launched in early 2013 by Murdoch University, the First Murdoch Commission is an independent commission of inquiry into Western Australia and Australia’s role and relationship with the Asian region. Its final report, entitled <a target="_blank" href="https://www.murdoch.edu.au/Murdoch-Commission/Final-Report/">Western Australia and the evolving regional order: Challenges and opportunities</a> was launched in Perth this week by WA Premier Colin Barnett.
The First Murdoch Commission’s aim is to investigate how economic interdependence between Australia and Asia could bring mutual benefits to both parties during the coming “Asian Century”. Its report analyses a <a target="_blank" href="https://www.murdoch.edu.au/Murdoch-Commission/Our-themes/">range of issues</a> across the spectrum of Australia’s relations in the region, including the drivers of Asia’s rise, regional institution-building, trade and investment agreements, resource security, and engagement and diplomacy.
One of the key issues identified by the commission was the role of foreign investment, examining the potential benefits it may offer the Australian economy, and its role in supporting the development of economic ties with Asian partners. The Commission found that Australia is arguably not getting foreign investment from the right sources or into the right sectors to fully benefit from the economic opportunities that Asia offers.
Australia’s open door approach
As a small open economy, Australia has relied upon foreign investment to build large-scale, capital-intensive industries. For most of its history, Australia has maintained an “open door” approach to foreign investors, and the Foreign Investment Review Board (FIRB) <a target="_blank" href="https://firb.gov.au/content/_downloads/AFIP_2013.pdf">screens</a> only a small minority of investments over certain size thresholds or in a handful of sensitive sectors. Practically all foreign investments are approved by the government, with only one business investment (the <a target="_blank" href="https://www.smh.com.au/business/swan-rejects-asx-takeover-20110405-1d25e">proposed takeover</a> of the ASX by the Singapore Stock Exchange) rejected in the last decade.
As a result, Australia has performed very well in attracting foreign investment. Australia presently hosts some A$2.2 trillion of foreign investment stocks, and its attractiveness as a site has <a target="_parent" href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/5302.0">steadily grown</a> in recent years, with annual inflows doubling from an average of A$71 billion per annum during 2001-05 to A$150 billion during 2006-2010.
<img style="font-size: 0.8em;" width="470" src="https://c479107.ssl.cf2.rackcdn.com/files/35560/width668/xmq8k8pn-1384828786.jpg">
Distribution of Australia’s inward FDI by source country. Source: The First Murdoch Commission
<figure><figcaption></figcaption></figure>However, the structure of Australia’s foreign investment patterns is arguably out of kilter with its broader economic relationships. At a country level, Australia’s investment ties with Asian partners remain poorly developed. Europe and the US are the major sources of foreign investment (accounting for 58% of current stocks), while Asian partners collectively account for 11%. This is despite the fact that <a target="_blank" href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/ProductsbyCatalogue/A5FB33BD2E3CC68FCA257496001547A1?OpenDocument">67% of Australian exports</a> in 2012 were destined for Asian markets.
On a sectoral basis, the story is similar. One industry – banking and finance – accounts for just over half of foreign investment stocks, with mining accounting for a further 13%. In comparison, many other sectors underperform at attracting foreign investment, particularly manufacturing, agriculture and non-retail services. As these industries will be instrumental in diversifying Australia’s economies ties with Asia beyond resources in future years, this lack of foreign investment is a cause for concern.
The importance of foreign investment links
For a small country like Australia, foreign investment is important for promoting economic growth. Its main – and most discussed – contribution is for financing capital-intensive industries. Australian capital markets are relatively shallow, and companies in large-scale industries (such as mining, infrastructure and construction) often rely on overseas sources of capital to finance investment.
However, foreign investment can also offer several other benefits, which help integrate Australian businesses with partners in foreign countries. One is marketing channels, where foreign investors can help create new export opportunities by opening markets in their home countries to Australia. This is particularly evident in the <a target="_blank" href="https://www.sciencedirect.com/science/article/pii/S0301420712000128">Australian iron ore sector</a>, where many recent Chinese investments have come with “offtake agreements” that guarantee future sales in China to junior companies developing new mines.
A second benefit is technology transfer. Globally, the majority of private R&amp;D is undertaken by multinational corporations, who possess the necessary size, scale and technical capacity to develop new technologies. Hosting investment from these corporations allows an economy to access the technologies they hold, avoiding the need to pay onerous licensing fees. The clean energy industry is emerging as one area where Australia could <a target="_blank" href="https://www.austrade.gov.au/invest/opportunities-by-sector/clean-energy">especially benefit from foreign investment</a>, given its sizeable solar, wind and geothermal endowments.
Third, foreign investment also helps promote integration in global value chains. These are industries in which products are not made in a single country, but stages of production are spread across multiple economies. Global value chains are common in the Asian region, and have become well developed in the textiles, electronics, consumer goods, food and automobile industries.
Foreign investment ties are important in connecting companies within global value chains. A key example is in the auto industry, where exports of the <a target="_blank" href="https://www.stuff.co.nz/southland-times/life-style/9372302/Aussie-Commodore-a-hit-in-the-US">VF Commodore</a> have taken off following a decision by General Motors to market the Australian-assembled vehicle as the Chevy SS in the US.
Recalibrating foreign investment ties
Given these benefits, it is clear that Australia can benefit from a recalibration of its foreign investment ties. Developing investment relationships in Asia would help more closely integrate the economy with increasingly important partners in the region, and create opportunities to diversify inward investment away from the financial and mining sectors. There are a number of strategies government could implement to this end.
First, Australia could better communicate its investment openness to partners in the region. While very few investment proposals are rejected by the FIRB, there remains a perception in the region – particularly in <a target="_blank" href="https://lowyinstitute.org/publications/chinese-perspectives-investing-australia">China</a> – that Australia is restricting foreign investment. More could be done, both by the Commonwealth Government and statutory bodies such as <a target="_blank" href="https://www.austrade.gov.au/Invest/default.aspx">Austrade</a>, to correct such misperceptions abroad.
In certain sectors, there is deep public antipathy towards foreign investment. This is especially true in agriculture, where foreign investment is often opposed as leading to a <a target="_blank" href="https://australianpolity.com/feature/guarding-food-security-in-the-national-interest">loss of national control</a> or being harmful to <a target="_blank" href="https://www.greens.org.au/land-ownership">food security</a>. However, recent research by the <a target="_blank" href="https://rirdc.infoservices.com.au/items/11-173">Rural Industries Research and Development Corporation</a> reveals that foreign investment in Australian agriculture is relatively low, and has a net positive impact on food security. Efforts to increase public awareness of the benefits of foreign investment in agriculture – especially in terms of technology transfer and marketing channels – may help reduce such community concerns.
Finally, Australia might also explore intergovernmental mechanisms to promote investment ties in the region. Free trade agreement negotiations – including bilateral deals with <a target="_blank" href="https://www.dfat.gov.au/fta/ajfta/">Japan</a>, <a target="_blank" href="https://www.dfat.gov.au/fta/acfta/">China</a> and <a target="_blank" href="https://www.dfat.gov.au/fta/akfta/">Korea</a>, as well as the regional <a target="_blank" href="https://www.dfat.gov.au/fta/tpp/">Trans-Pacific Partnership</a> – all presently have investment provisions on the agenda. If crafted well, these agreements may help promote regional interest in Australia as an investment location.
 
<hr>
 Jeffrey Wilson is fellow of the Asia Research Centre at <a href="https://www.murdoch.edu.au">Murdoch University</a>.
 
This article was originally published at <a href="https://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/why-australia-must-deepen-its-asian-investment-relationships-20264">original article</a>.
 
 
<img src="https://counter.theconversation.edu.au/content/20264/count.gif" alt="The Conversation" height="1" width="1">
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jwilson-73uvCTKJtg

Why Australia must deepen its Asian investment relationships

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This article is in response to '<a target="_blank" href="https://www.propertyobserver.com.au/hotspots/stafford-blooms-but-four-out-of-five-sam-saggers-brisbane-hotspots-yet-to-show-promise-samsaggers/2013053061795">Stafford blooms but four out of five Sam Saggers Brisbane hotspots yet to show promise</a>'
People ask me, “Were you angry about the article?” My reply is pretty simple: I’m not. The way I see it, it’s the job of a journalist to create and start debate.
So better late than never, I’ve finally found time to reply. If you have not read <a target="_blank" href="https://www.propertyobserver.com.au/hotspots/stafford-blooms-but-four-out-of-five-sam-saggers-brisbane-hotspots-yet-to-show-promise-samsaggers/2013053061795">the article I am referring to</a>, it states that four out of five of my “Brisbane hotspots” are “yet to show promise.” I appreciate the perspective. Brisbane has been underperforming for a while now. Yet one thing that still plays on my mind is that in conventional capitalism, it’s still better to buy during a market low rather than a market high. Thus smart investors are buying up in Brisbane LGA and buying as many properties as they can.
Those smart investors also entered the Sydney market late 2009 when prices were simply capitulating and it was a real buyers’ market. Of course scepticism in 2009 was rife, and investors were defiantly swimming against a tide of media gloom. Now in 2013, some five years later, the Sydney market is boiling hot. Early investors that struck at the bottom in 2009 have already made huge gains and that is now not disputable. It’s easier to look back and wish you had bought than it is to buy when sentiment is against you. Remember, despite the medias best efforts to de-rail property investors, the job of an investor is to avoid buying because of a fad or because everyone else is in “boom” mode. It is the job of an investor to swim against the tide.
In 2006 many property investors launched into Melbourne despite negative press, they received their rewards some three years later as the market boomed in 2009 and 2010.  See, investing is a game of courage and a game of patience. It’s not for the faint hearted, that’s for sure.
The article is right; Brisbane LGA suburbs did not match the growth of Perth and Sydney.  But is it all doom and gloom? I personally think it’s a great buying market and I personally have invested there. I am confident in my investments already and the best part is that the market growth upside hasn’t even started.
Let’s take a look at two properties I have bought in the last 18 months in Brisbane.
My first buy was a second-hand one-bedroom unit in the suburb of <a href="/news">New Farm</a>, Queensland. It is a highly sought after suburb due to its picturesque streets and because it’s located only 2 kilometres east of the Brisbane CBD on the river. It boasts the popular cafe, bar and restaurant strips of James and Brunswick Streets, and has excellent transport infrastructure in place with regular Ferry and Citycat services, as well as several bus routes. As unit prices are sub-$500,000 and the median house price is over $1 million, units are extremely attractive for home owners and investors alike. Growth drivers included:
<ul>
<li>
Supply and demand;
</li>
<li>
Transient population growth; and
</li>
<li>
Demographics.
</li>
</ul>
So what did I buy? I managed to get a great deal due to the soft conditions. I secured the recently refurbished one-bedroom unit for $280,000. Seems cheap? Well, I agree! It rents for $400 a week, which is a 7.4% rental yield. Of course, once the Brisbane market takes off, I can foresee that the unit will reach a value of $400,000 – where I’ll make a small win for my bravery of buying at the bottom of the market cycle.
My second purchase was in <a href="/news">South Brisbane</a>, Queensland. Without doubt the rental yields in South Brisbane are the best for an inner city suburb anywhere in Australia. Located within 300m of the Brisbane CBD. The suburb is a mecca for students, executives and the cities elite. It is a cultural hub of Brisbane. With some of the best award winning restaurants, the museum of Modern Art, access to train lines and amenities a plenty. With over 30,000sqm of commercial office space and some of the largest big name commercial tenants in the country, the residential market is tight. In 2007, there were 17,000 office workers in South Brisbane and 900 apartments. In 2012 there are 30,000 office workers and 1,100 apartments. The rents are some of the best in the city with yields pressing 6.5% if you buy well. There aren’t many locations left in Australia today where you can buy so close to a capital city at an affordable rate. This alone makes South Brisbane a standout market. Nicknamed “Brisbane’s Greenwich village”, growth drivers include:
<ul>
<li>
Supply and demand;
</li>
<li>
Yield variation;
</li>
<li>
Transient population growth;
</li>
<li>
Macroeconomics;
</li>
<li>
Infrastructure; and
</li>
<li>
Demographics.
</li>
</ul>
So what did I buy? Well I a decided to buy a brand new unit. I actually bought it off-the-plan and paid $440,000 all up that included some furniture. I rented the property furnished from day one, its current rent is $600 per week and the Defence Force is the tenant. What a formidable return, wouldn’t you agree? Actually both these properties are yet to really perform from a growth aspect. But I’m getting $1000 per week for two properties in two great suburbs, and have paid in total $720,000. That’s a 7.2% return on my investments and I’ve done it in Australia’s third largest city without leaving the 3 kilometres ring of the CBD!  I’m not financially stressed either, because the rents pay my mortgages and it doesn’t cost me anything to hold the properties.
I don’t know about you but I think I have bought really well. So why does the article state they're yet to show promise? And why did I pick areas where the median didn't perform?
What I can tell you is this:
 
Smart Property Investment magazine was doing a property cycle report on Brisbane and asked me to identify suburbs that were likely to represent the best buying opportunities in 2012. At no point did I refer to these areas as ‘hotspots’. I worked with the writer to come up with five areas that fit his criteria. The writer required five suburbs within 10 kilometres of the CBD with properties available for under $400,000. I did express that they were the best buying opportunities available at that time, in that area, for under a certain price – and I still stand by what I said.
I know investors can still buy well and still buy at the bottom of the market in these areas. And if agent interest is anything to go by, I think we are starting to see the winds of change finally creep into the Brisbane market. There is definitely a new air of confidence and agents are becoming increasingly confident as sales volumes begin to surface.
Real estate is a long-term wealth creation strategy, and you can’t expect overnight success. I suggested a market high in 2016-17, which is still three to four years away. I did suggest a double-digit price growth but I did state it would be over a three year time period. Again, as it’s only been just over a year since the article was published and I’d love to revisit this discussion in 2016. In truth neither the article nor I can win this debate, at least not for a few years yet. One thing that is certain though is the way data is reported is often very different to what is happening on the street.
Let's explore:
Michael Matusik published an article on Property Observer commenting on <a href="https://www.propertyobserver.com.au/residential/residential-property-commentary-needs-to-focus-on-sales-volumes-as-well-as-prices-michael-matusik/2013062362542" target="_blank">the inaccuracy of median property prices</a> for judging realistic investment returns. Matusik writes, “Far too much commentary about the residential property these days focuses on price. Very little is actually said about sales.” I completely agree.
Matusik sums it up nicely when he says, “Investors, especially, should pay little or no attention to median or average prices.  It’s sales volumes that are really important.” Well, that’s true and I agree with Matusik, if you are looking for a hot market. Sydney today has massive sales volumes and regardless of the median price, the market is surging. The more sales volume activity, the more demand, the more growth. Would I buy in Sydney now? Well, in truth I don’t have to. I bought three properties over the past four years in Sydney and have done well. Again, primarily using bottom of the market buying strategies.
When will Brisbane sale volumes take off?  Well, as an early investor into that market, I can share with my co–investors, it is not a matter of if they will, but when! One thing I think we can all agree on is, it is smarter to buy in a market low than when the market is high. Brisbane is inexpensive right now and low. If you don’t believe me about the theory, perhaps then Mark Bouris can help win this argument with his buying advise.
To quote Mark Bouris, from his article '<a href="https://www.propertyobserver.com.au/residential/when-is-the-best-time-to-buy-property-mark-bouris-markbouris-ybrwealth/2013060762048" target="_blank">When is the best time to buy property?</a>', “Close followers of house prices are often investors who look for total return on their properties, which combines rental yield and capital appreciation. This can be a good test of overall property health.”
Today Brisbane exhibits strong yields, combine that with expected growth and I think the debate will soon be over. Brisbane LGA and its many inner suburbs, including the ones named in the article, are absolute opportune investment areas and just like Mr Bouris says, once you combine high yields and capital appreciation you have a very healthy property market.
Growth will happen. Brisbane has too much right going for it for it not to.
 
<hr>
 Sam Saggers is CEO of<a href="https://www.positiverealestate.com.au/ME2/Sites/Default.asp?SiteID=697F1E57F8A54C7F9582C3C49417EEC4" target="_blank" rel="nofollow"> Positive Real Estate.</a>
 
 
 
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ssaggers-cYw3HLcXnJ

The property game isn't for the faint-hearted: Brisbane 'not spots' require patience

tlawless-5VLUrbAk9s

If I was a first home buyer where would I look?

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RP Data compares the number of new residential listings and total listings on a weekly basis as they help to provide a rounded view of the market. From the perspective of many, the volume of sales can be more important than the price of those sales.
The past two years saw a very low volume of residential sales in Melbourne which is a reflection of conservative decision-making by consumers who, as the saying goes, ‘preferred to save rather than spend.’
There is no doubt that this year, the market has picked up but there is a long way to go. The most recent data shows that there are 16.7% fewer overall homes for sale in Melbourne than 12 months ago. Given that the volume of new listings is up by 1%, this is a sign that older stock is being cleared and the property market is improving, but only moderately.
Victoria-wide, the picture is not as strong with overall listings only being lower by 10% and new listings down by 1.7%. It is often the case that the regional market moves more slowly and is less volatile that the metropolitan and that is the current case.
In stark contrast, the residential market in Sydney is moving homes very rapidly with total listings down 26.3% and new listings up only 4%. Demand is clearly very strong in the Sydney market right now.
 
<hr>
 Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
 
 
 
 
 
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rlarocca-zWhvjay44N

No doubt Melbourne market has picked up, but nothing like Sydney

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Property Observer recently spoke to Feng shui master Yu Gui Feng for tips on making your home feng shui-friendly. He told us that the feng shui elements for commercial properties are quite different.
There are certain elements associated with feng shui – wood, fire, earth metal, and water. Each of them carries a different energy that could be beneficial or harmful, depending on the surrounding energy of the property and its owners.
“For residential properties, you want to built it on flat ground or on the higher side of the road. But for commercial property, we don’t like it to be on top of a hill. We like it to be somewhere on the lower side of the road, or near the bottom of the landscape, because that’s where it can accumulate a lot of money energy,” he said.
He went on to explain that feng shui, literally translated, means “wind” and “water” in Mandarin. Water symbolises prosperity.
“Human bodies are made up of 70% water. A commercial property needs customers. Water energy flows downhill. That’s why a shop or a commercial building should be on the lower side of a road,” he said.
For shops, he advises that there is no “ideal” orientation. However, certain elements need to be closely aligned with the product.
“For example, if you are in the food industry, the prime energy is earth energy. A good colour for earth energy is a yellowish colour. Look at the world’s largest restaurant chain, McDonald’s. Its dominant colour is yellow, and resonate’s with the industry’s energy,” he said.
“For a commercial property, we also need to look at the logo, the business name, how many letters, the logo’s colours, and signage. Of course the internal layout and design matters too,” he added. 
Good layouts for shops include rectangular and square shapes. Ideally, the front entrance should be narrower than the back, like a bottle. 
“This is to accumulate money energy. Money energy goes in every busy shop, in one way or another,” he said.
He also noted that commercial property owners should avoid purchasing properties where the front and back doors directly face each other.
“It is very hard to make a sound investment with this type of property,” Master Feng said.
Additionally, a commercial building’s surroundings is very important. If there are any buildings in its vicinity that have sharp corners and reflect light, that could cause problems for your business.
Similar to a residential property, the front entrance of a commercial building is important.
“It can influence the entire building’s money return. You need to look at the landscape and surrounding buildings to create an appropriate entrance. Once you walk into the entrance of a commercial property, the entrance or lobby area needs to have two conditions: One is light. One is space,” he said.
He added that buildings with a reception area should place the reception as close to the front entrance as possible.
As for colour schemes, he suggests avoiding the colour black. Exceptions to the rule include nightclubs, bottle shops, and adult shops.
Lastly, Master Feng said that feng shui is only one-third of the overall plan to turn a business around.
“It’s about the right time, right person, right place,” he said. “These include opportunities, your personal effort, the product and the services. The energy of the place, that has got to do with feng shui.”
<a href="mailto:dleow@propertyobserver.com.au" target="_blank">dleow@propertyobserver.com.au</a>
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dleow-BGaNPbHWyK

Feng shui tips for your commercial property

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North, south, east, west and all the variations in between. Real estate advertisements regularly highlight a property’s aspect and light-filled interiors in order to attract buyers. In Australia, properties facing north are considered highly desirable due to the amount of direct sunlight received throughout the day. But how should properties with other aspects be considered? 

“In some respects, the ‘north-facing garden’ has become shorthand for an ideally sunlit property,” says Monique Wakelin, director of Wakelin Property Advisory in an article published recently in the AFR.

But Wakelin noted “what really matters is how the design of a property is affected by the direction it faces”.

“When considering aspect it’s not just a matter of north, south, east or west, but what this means for a property given its design, and how this plays out it terms of light,” she said adding that shying away from anything other than north-facing could mean missing out on a better investment opportunity.

[smartcode_project:default project_id=2929]

Our property commentators Jonathan Chancellor and Margie Blok discuss concerns about aspect and light which vendors and buyers should heed when buying and selling properties no matter which direction they face.

HE SAID:<img alt="jc-silhouette-5" height="225" src="/images/stories/2013/09/06/jc-silhouette-5.jpg" style="float: right;" width="150">

Keys factors vendors should consider:

* High capital growth is just as important as a perfect north aspect. Well located properties, and those with water views, usually increase in value even if the aspect is east, west or south.

* A well-designed house or beautifully presented apartment should reap financial rewards because buyers often pay a premium for quality renovations and good design.

* Installing skylights is a practical solution for hallways and rooms lacking sunlight  - funneling sunshine into gloomy spaces can totally transform the ambience of a house.

* Installing mirror panels or hanging mirrors to reflect light into dark corners is a clever (and inexpensive) solution often used by interior designers.

* Natural light is attractive to buyers, but designer interior lighting is too - it allows you to alter the mood of a room. Before listing your property consider seeking professional advice about installing decorative and ambient lighting.

*Don’t overlook outdoor and garden lighting which can enhance the beauty of your property at night.

* If your house has windows looking directly into a neighbour’s home consider replacing clear glass panes with opaque glass to provide privacy but also let in the same amount of light.

* Little or no sunlight can be grounds for rejecting a property by home buyers as well as investors, and can considerably reduce a property’s value, especially in high rise apartment blocks in increasingly crowded CBDs.

<img alt="mb-silhouette-4" height="225" src="/images/stories/2013/09/06/mb-silhouette-4.jpg" style="float: left;" width="150">SHE SAID:

Key factors buyers should heed:

* Check for brightness and sunlight by turning off electric lights to gauge how much natural light fills the rooms of a house or apartment.

* Too much sunshine can be a problem – you don’t want to have curtains drawn and air-conditioning running for hours on end in a west or north-west facing property that cops vast amounts of direct sunlight for most of the day.

* Apartments facing south or west should not be ruled out if these properties have water views or are set in a premium location. These apartments could hold better capital growth potential (and/or higher rental yield) than a north-facing apartment without a view or situated in a less desirable area.

* Be sure to check out a property at different times of the day – estate agents often schedule inspection times for the 30 to 45 minutes when a house or apartment is filled with maximum natural light.

* Check the estate agent’s spiel about a property’s aspect – sometimes their advertisements will emphasise a north-facing aspect but not make it clear which part of the house faces north. It could be the front bedrooms have a north aspect and the living areas at the back of the house, as well as the garden, are facing south. It’s important to check for yourself how a house is sited on the block, so take the iphone compass.

* Bedrooms are for sleeping, so it’s not important for these to be sunny – in fact, some people prefer bedrooms without a north aspect. But best check for mould and dampness problems in places where no light reaches.

[smartcode_project:default project_id=29048]

* Don’t get carried away with beautiful interior décor and then fall in love with a property because of what it looks like – you need to assess its relationship with sunshine and natural light.

* Both home buyers and investors should check the floor plan and consider orientation of various rooms in houses and apartments – these can be just as important as aspect.
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jchancellor-FAypfDUnLy

North, south, east or west: How can investors make the most of house aspect?

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The SMSF Professionals' Association of Australia (SPAA) has warned that theft and fraud need to be better looked at when it comes to disclosure of SMSF risks within a submission to ASIC on Consultation Paper CP216.
SPAA CEO Andrea Slattery said that while they welcome the goal of improving the standard of advice given to those looking to become an SMSF trustee, there are a number of risks that need to be further outlined.
“This includes disclosures on the risks associated with SMSFs; however, the requirements in the ASIC paper may not achieve those goals or be appropriate in the circumstances," said Slatterly.
“ASIC’s recommendation that advisers must provide a warning that SMSFs are not entitled to Part 23 compensation under the SIS Act is too simplistic," she said.
She noted that the approach ignored the difficult nature of compensation for funds affected by fraud or thefty.
“This approach ignores the complex nature of compensation for funds affected by fraud or theft. APRA-regulated funds are not guaranteed compensation under the SIS Act for fraud or theft and the fact that SMSFs do have other avenues for seeking compensation for theft or fraud has been ignored.”
Within SPAA's submission to ASIC, they referred to the common misconception that APRA-regulated funds will receive compensation in the event that the fund is a victim of fraud or theft.
“Instead, we believe any warning that SMSFs are not entitled to Part 23 compensation should be made in the broader context of advisers discussing all compensation arrangements available to SMSFs," she said.
SPAA did support other risk disclosures suggested by ASIC, however noted that risks regularly depend upon individual circumstances of the SMSF.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Fraud and theft in SMSF not guaranteed compensation

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About half of all four- and five-year fixed rate home loans - and more than a third of three-year fixed rate home loans - have had their rates adjusted upwards in the past two months, according to financial comparison website RateCity.  
“The fact that a growing number of institutions are increasing their rates on fixed home loans shows where they think the market might be heading,’’ CEO Alex Parsons says.  
He points out that:  
<ul>
<li>
Since early September, 188 fixed home loans have had rate hikes – including 88 in the past fortnight - by a maximum of 0.55%.
</li>
<li>
The trend is for longer fixed rates drifting up.
</li>
<li>
Competition remains high among one- and two-year fixed home loans, with rates starting from 4.29% fixed for one year.
</li>
</ul>
The news has prompted RateCity to urge borrowers to prepare now for higher rates.
“Movements in fixed rates are common and based on a number of variables, but the trend is definitely to longer term rates drifting up,” Parsons said.  
In comparison, shorter term fixed rates remain largely unchanged, or even fell slightly in recent weeks, with one-year fixed rates as low as 4.29%.  
“We have seen a lot of competition in the shorter term fixed rates. While they are also subject to the same market forces as longer terms, they’re a lower-risk way for institutions to offer hot rates to attract new customers,” he said.  
Fixing can be an attractive option for borrowers because it offers repayment security, making it easier to budget. But they aren’t as flexible, which can be a drawback. Also, some lenders make it harder for borrowers to make extra repayments as a way of building a repayment buffer. And others charge big fees for exiting the loan before the end of the fixed term.
Another key area to watch out for is the interest rate to which fixed loans revert once the set period is over, said Parsons.  
“Most fixed rates revert to a variable rate option at the end of the fixed period, which, depending on the rate cycle, could be more than 1% higher,’’ he said. “This can mean having to fork out thousands of dollars more per year to service the same loan.  
“Borrowers should prepare for the eventuality of higher interest rates in the future and make sure they can comfortably afford to service the loan if rates increase to the historical average of around 7% or even higher.”  
For example, a 0.25% rate rise would increase the first 12 months’ repayments by $540 (or $45 per month) for a borrower with a $300,000 home loan and paying the basic variable rate of 5.19%.  
But, if rates were to return to their historical average of 7%, the same borrower would have to find an extra $333 a month, or $3996 a year.  
“If borrowers aren’t sure whether they want to fix or not, they do have the option of splitting their loan between fixed and variable – so they have the best of both worlds.”    
<a target="_blank" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
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