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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The rate of apartments being offered off the plan is increasing, with developers of high density residential needing a certain amount of pre-sales before the development can kick off. These apartments are generally offered at a cheaper rate with incentives sometimes pinned on, but are these properties a good investment?
Property Observer has asked industry professionals from buyers agents to developers to weigh in with their thoughts.
They were each asked: Can off the plan properties be good investment? Why or why not?
John Carfi – Chief executive officer of <a target="_blank" href="https://www.mirvac.com/">Mirvac</a> residential<img width="113" height="150" src="/images/stories/2013/11/01/carfi-profile.jpg" alt="carfi-profile" style="float: right;">
YES, IF YOU BUY WISELY
off the plan properties can deliver great returns to investors, providing a stable rental income, the potential for capital gain and tax benefits through depreciation and negative gearing.
When investors buy property off the plan they are essentially buying sight unseen so the first rule should always be to ensure the developer and builder are reputable with a track record of delivering quality buildings as specified and on time.
The returns will be determined by many factors depending on whether the investor is intending to hold and rent or 'flip' the property to make a quick profit.
Flipping, or speculative purchase, is a much riskier investment strategy, and presumes that the market will rise and a profit can be made before or soon after settlement. It’s a gamble that may not turn out in the investor’s favour.
For those seeking a medium to long term hold, the factors to consider are the appeal of the property to tenants. If the property is well-designed with a high level of amenity, close to public transport, infrastructure such as schools, shops and open space it is more likely to attract a higher rent and be easy to let.
There are many tax benefits associated with owning an investment property and they are most favourable when the property is new. However this should not be the sole criteria for investment.
Another factor that will impact upon yield is the strata levy. These are not set until settlement however investors need to be aware that inclusions such as swimming pools, gymnasiums and the other attractive selling points of the development will need to be maintained by the owners corporation.
Most investors will be looking for capital gain and if you have bought wisely, a good quality product in a good location, the gains should be in line with the market.
 
Todd Hunter – Director at <a target="_blank" href="https://www.wheregroup.com.au/?">wHeregroup<img width="125" height="150" style="float: right;" alt="todd-hunter-profile-2" src="/images/stories/2013/11/01/todd-hunter-profile-2.png"></a>
off the plan IS RARELY A GOOD INVESTMENT
Let’s look at this practically, the developer is selling a product. They have worked out their numbers to the exact dollar on a spreadsheet and know how much they can sell for as a minimum. But who wants minimum?
As a property owner, when you sell, you want the maximum price don’t you? Well, so does a developer. Their issue is that they don’t have a big market presence in Australia so quite often they employ the services of a marketing company to spread the word to buyers right across Australia. They often have referral networks consisting of accountants, financial planners, and mortgage brokers to help them sell to their client.
Now these marketing companies do not work for free. Nor do the referral networks. The developer doesn’t want to drop their price either, so their fee is simply added to the developer’s sale price.
So why not go direct to the developer and cut out the middleman? Greed, by the developer to sell one at an increased profit as well as keep price consistency for valuation purposes.
It’s only when they have financial issues that they will liquidate and you can maybe get a deal.
Second reason - GST – why do you think that car prices drop by at least 10% the moment they drive out the driveway? Because the GST must be paid. The same is for properties but not on sell price but GST is paid on all good and services used to build the property.
For those reasons I have not seen many off the plan purchases of late that are worth investing in.
Next page: Paul Biller and Damian Collins
 
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Paul Biller – Principal of <a target="_blank" href="https://www.1stcity.com.au/">1st City Hasemer &amp; Caldwell-Eyles<img width="113" height="150" style="float: right;" alt="biller-profile" src="/images/stories/2013/11/01/biller-profile.jpg"></a>
off the plan PROPERTIES CARRY GREATER RISK THAN PURCHASING AN EXISTING PROPERTY
An off the plan purchase carries greater risk than purchasing an existing property as it is very difficult to establish fair market value for what the property will be worth on completion or predict an accurate future rental return. There will also more than likely be an oversupply of competing properties for rent when the development is completed due to other investor sales in the complex, ultimately resulting in having to lower the asking price in order to secure a tenant. Other things to consider are the project may not proceed if the relevant council approvals are not granted; the finished product may differ to what you anticipated; you can’t physically walk through the property you are buying.
There are however many advantages to buying off the plan including buying at a better price. When developers first offer their new projects they often offer them at discounted prices in order to secure required pre-sales for the bank. When the required number of pre-sales is met and construction begins the prices generally rise. Therefore, for investors who commit early to an off the plan purchase there is often a good price incentive.
Another advantage is the depreciation benefits. The newer the property the more tax deductions are available. The buyer is able to claim depreciation on their tax for items including fixtures and fittings. As the benefits are greatest when the property is brand new – buying off the plan maximises your available tax deductions.
As an off the plan purchaser you may get to customize your new property. Often buyers may have a choice of finishes to choose from including different colours, tiles, various fixtures and fittings as well as layouts which the developer may be able to incorporate such as merging two apartments into one large one.
There are also various government grants and stamp duty exemptions to first time property buyers.
As with all property purchasers, be sure to do your research. Look at the median apartment price growth in the area and research the project team including the developer, architect and builder.
 
Damian Collins – Director of <a target="_blank" href="https://www.momentumwealth.com.au/?">Momentum Wealth<img width="113" height="150" style="float: right;" alt="collins-profile" src="/images/stories/2013/11/01/collins-profile.jpg"></a>
GENERALLY, off the plan APARTMENTS ARE NOT GOOD INVESTMENTS
Generally off the plan apartments are not good investments.  Investors are often enticed to "get in on the ground floor" and hope that the property will be worth more at settlement than what they paid. Certainly in a rising market a property may be worth more than what you paid. But on the other hand I've seen many investors buy off the plan and find at settlement that prices are 20% less than what they paid. If you are buying for the intended gain before settlement then you are really a speculator, not an investor. For the long term investor an off the plan apartments provide additional risks. Firstly at the time of buying it may appear that there is limited supply on the market. However, if the market starts to see demand, developers in that area may release a substantial number of new properties leading to potential oversupply and poor price performance. One of the key reasons why off the plan apartments are generally not good investments is that there is too much building value and not enough land value. Ultimately the land goes up in value and the building depreciates. Many high rise apartments have little land content and the long term lower growth rates reflect this. Particularly with off the plan apartments, you are paying for a nice shiny new property that in a few years may not look so new to any future prospective buyers. off the plan sales are great for developers as it helps them get finance for their projects with enough pre-sales. If you are an owner occupier not focussed on the capital growth and you find a property that you think is ideal then it may be suited to you. However if you are an investor, give off the plan properties a miss and find a property with a good land value in an area with limited supply and high demand. You'll be sure to make much more money that way.
Next page: Ross Le Quesne and Kevin Lee 
 
 
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 Ross Le Quesne - Mortgage broker at <a target="_blank" href="https://www.aussie.com.au/?">Aussie Home Loans<img width="113" height="150" style="float: right;" alt="laquesne-profile" src="/images/stories/2013/11/01/laquesne-profile.jpg"></a>
ENTER WITH CAUTION
<div>Buying a property off the plan a can be an attractive proposition but, as with any property purchase, you must only enter into it with great caution and after much research.</div>
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 A brand new property in a new development is very appealing, but like buying a new car, you may find yourself paying a premium for something that is worth less the moment it's yours. off the plan properties can be overpriced due to the additional entities involved. The developer and builder need to make their profits, as well as a marketing agency (who can charge 5% selling fees) which inflates the price you pay.  To ensure you're not paying too much, you must always do your due diligence. Research the area and what similar properties are selling for now. Make sure the assumed future value (the value of the property by the time of completion) has not factored into what you've paid for the property. You want to be paying today's price when you sign your contract. Buying off the plan can sometimes be profitable. If you're buying in a growing area and you pay market price at time of purchase, meaning that by the time you pay for your property (sometimes 18 months later) you've already gained equity. You will only know that you're paying the right price if you're familiar with the local market and can verify comparable sales.
<div>The rental returns (especially as predicted by the vendors) of a new property can be attractive, but are they the best in the market? An investment is a business decision, not an emotional one - the property does not need to be beautiful to make good rental return. Are there established properties out there right now that will provide better returns for lower outlay and lower risk? To minimise the risk of paying too much you need to do your own research. Don't fall -n love with the idea of a brand new property, if you think you're overpaying you need to walk away.</div>
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Kevin Lee - Buyers Agent at Smart Property Adviser
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<div>THERE'S ASSOCIATED RISKS BUT GOOD OPPORTUNITY FOR FIRST HOME BUYERS</div>
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There has always been a degree of risk associated with purchasing residential properties off the plan, yet for some investors, a well-researched off the plan purchase can represent a solid opportunity and good strategic addition to their portfolio.
However we need to put this out there right now: don't purchase property 'off the plan' with the expectation that it will automatically increase in value whilst its being built.
Yes some people made significant capital growth on both existing property and off the plan purchases over the last 40 years - however you could be sadly mistaken if you put all your money on that horse over the next 20, 30 or 40 years.
This is a 'changing of the guard' moment in Australia's history, unlike anything we've ever witnessed.
The days of 'property doubling in value every seven to ten years' (if they ever did exist) are long gone. In fact I'm still looking in the Australian Constitution for where it says that "by merely signing a purchase Contract, you're entitled to capital growth".
If however 'chasing capital growth' is still part of your game-plan for 2013 and beyond, then you should only ever count on matching inflation - maybe a touch more in the long term. But know this - you will most likely have significant periods of negative or nil growth.
Having said that, there are a number things outside your control that can actually help create capital growth. Two that come to mind immediately are: poor government planning &amp; laws that restrict development; and natural geographical constraints that limit development (e.g. Sydney and South East Queensland's urban development confines).
Infrastructure development - or Urban Renewal programs - instigated by either Local, State or Federal Government are like a "free renovation" for your property. So if you can, choose an off the plan development in a metropolitan area where significant government infrastructure spending has been committed - not just planned. Politicians are good at 'talking the talk' - you need to ensure their money is committed in order for the rest of that old cliche to be played out.
Off the plan developments can sometimes prove to be a good opportunity for first home buyers to get into the market faster, with most state governments offering first home buyers significant incentives. For example in NSW they'll put $15,000 on the table and waive the stamp duty for purchases under their self imposed price threshold.
Savvy purchasers though will ensure that they aren't getting in over their head financially - this is your first home remember. Not your last!
Also - if you are buying off the plan you'd be we'll advised to do so as early in the piece as possible. Why? Because that's when developers are willing to offer their 'best terms' as you are actually helping them de-risk the project and qualify their proposed project for construction funding! They need you: it's that simple!
Finally, if the project, style, location and 'it' factor appeal to you and a few of your mates then think about going in as a 'group' - you will get a better deal. Think of it this way: it's like the company that buys a fleet of new cars pays a fair bit less that you do for your purchase of just one.
As I said at the outset, there is always risk associated with buying off the plan - do your homework and mitigate that risk as best you can.
Next Page: Adam Sparkes
 
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Adam Sparkes - Director of sales and marketing at <a target="_blank" href="https://www.crowngroup.com.au/?">Crown Group</a><img width="113" height="150" src="/images/stories/2013/11/01/sparkes-profile.jpg" alt="sparkes-profile" style="float: right;">
GET IN EARLY AND HAVE A LONG-TERM VIEW
The key thing to remember when buying off the plan, especially when buying into well-known developments, is the best investment returns are made by those who get in early.
Buyers who purchase in the first release are offered lower prices and a greater selection of apartments than buyers in subsequent releases or at completion - which means those who get in early also have more choice when it comes to position and aspect.
Adding to that, buyers who get in early can see capital growth even prior to completion. This occurs if similar properties in the development are sold off the plan later in the lifecycle of the project for higher prices. For example an apartment on level 5 sold for $1 million followed by a similar apartment on level 6 sold off the plan nine months later for $1.1 million, the latter provides a benchmark for valuations of the level 5 property sold earlier. This scenario can offer investors a chance to make capital gains faster than they may with existing properties.
Many of us have heard of the scenario seen in some Sydney developments in the early 2000s when investors purchased apartments off the plan and saw values significantly increase before completion. While,  I feel this is unlikely to happen again in Australia (and I would caution buyers solely motivated to buy apartments off the plan and hoping to sell for a large capital gain before completion), purchasing off the plan can present an attractive proposition for buyers willing to take a long-term view.  Investors buying with a view to hold the apartment for five- 10 years are better positioned to ride out the property market cycles and see good capital gains.
Other benefits of buying brand-new apartments include tax deductable depreciation allowances usually are higher for off the plan properties than existing properties, in addition investors are also eligible to the same out–of-pocket tax deductions as an existing property, making off the plan apartments an attractive proposition for savvy investors.
Finally, to give yourself the best chance of good medium-long term capital growth when buying off the plan, it’s worth looking at existing and future infrastructure in the area, including transport, hospitals, universities and schools. Finally, the facilities provided in the development itself, such as function rooms, pools, gyms and well-appointed foyers are becoming increasing important to tenants and buyers.
 
 
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Are off the plan properties good investments?

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We’ve seen a year’s supply of ice cream, and a number of other food-related marketing techniques when it comes to new developments, however GPC has gone one step further.
Rounding up six of Melbourne’s popular food trucks, the opening of Mason Point Display Suite this month will allow potential buyers to try a range of different foods – something said to be important to the north Melbourne crowd.
The “Urbane” Release Two, released in October, features 48 two- and three-bedroom apartments ranging from $323,000 upwards. There are also 16 two-bedroom townhouses from $409,000.
Construction will begin in early-2014, with completion for 2015.
On 16 November, launching Mason Point Display Suite, the food trucks will be available for those attending. There will also be a fairy floss machine, a bubble machine, a face painter and a balloon artist.
Charles Gibson, director of GPC, said that the display will also include architectural plans and pricing, a full showcase of the kitchen, bathroom and timber flooring and a fully interactive touchscreen.
“Representatives from the award-winning Jackson Clements Burrows Architects – the design team behind Mason Point - will also be on hand to meet with buyers and discuss elements of the apartments and town homes’ functional yet stylish, modern design,” said Gibson.
Food Trucks there on the day are White Guy Cooks Thai, Dos Diablos, Sliders on Tyres, Dhaba, Smokin’ Barry’s and Yogurrdiction.
In the past, a <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/ice-cream-giveaway-with-camperdown-cottage-offering/2013030559428">Camperdown property listed in March</a> was offering 52 two-litre tubs of ice cream with the purchase. More recently, in October, a property was offered with a<a target="_blank" href="https://www.propertyobserver.com.au/news/an-icecream-auction-incentive-to-entice-prospective-buyers/2013101665733"> year's supply of ice cream in Albert Park</a>.
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Food trucks latest marketing technique for developers

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With confidence lifting over the past few months, housing prices rising strongly, signs of an upswing in housing construction and other positive indicators, HSBC chief economist (Australia and New Zealand) Paul Bloxham, warns that the RBA is unlikely to cut again.
In his latest HSBC Economics report, Bloxham said that we are unlikely to see any more rate cuts from the RBA "for fear of overinflating the housing market".
"Further signs of a housing upswing and the recent lift in confidence mean that we continue to expect that the easing phase of the RBA's interest rate cycle is done, despite the more elevated AUD," he noted, referring to the Australian Dollar as the RBA's 'bugbear'.
"Low interest rates are clearly lifting the housing market, with housing prices rising by around 6% over the past year and housing price growth accelerating in the past quarter," the report explains.
With improving local and global economic conditions, he said that ultimately he expects the Reserve Bank to stay on hold when the board meets on Friday.
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RBA unlikely to cut for fear of overinflating property: Bloxham

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Every property has a different level of risk and potential profit, and this can be the make-or-break of many investors' renovation strategies, according to author of The Insider's Guide to Renovating for Profit, Patrick Bright.
Renovators must ensure they're purchasing the right type of property to match their risk profile, urged Bright.
“This is important because while renovators want to maximise the return on the money they invest, they also want to be able to sleep at night," he said.
“In general apartments are low-risk because they're cheaper to buy and there's less renovating to do, which means less room for error."
However, he said, the risk and potential profit increases if renovators choose to move internal walls.
“Freestanding houses, semi-detached houses and terraces have higher risk which increases if there are added complexities such as Development Applications," he said.
With this in mind, investors will want to undertake a personal risk analysis before embarking on a renovation.
Considering how comfortable you are with losing money or having an outcome that doesn't match your expectations will put you in good stead if something doesn't stack up in the long run.
Both risk-averse and risk-taking investors should:
- Undertake extensive research
- Liaise with successful investors
- Work through steps methodically
- Consider appointing experts, such as a project manager, to advise
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Renovation success largely about attitude to risk: Patrick Bright

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There are a number of free calculators on the Internet, including MoneySmart’s that you should consider. You can input the new costs and charges, and see what the result is from each product you are considering.
Ensure you research your lender and what support there is for customers.
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This article is from Property Observer's free ebook <a target="_parent" href="http://propertyobserver.com.au/ebooks/free-ebook-mastering-the-art-of-refinancing-12-tips-for-success-and-key-things-to-consider">Mastering the Art of Refinancing: 12 tips for success and key things to consider</a>.
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Thoroughly compare loan options

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My observation on Sydney is this - what can we really expect from an industry in which standards have been diminishing for some time?
Recently, I was called out to inspect a property that our office was to gain as a new management. It had been previously managed by a prominent agent from the local  area. However, prominence does not always reflect quality, and the standard of service.
The property
{yoogallery src=[images/stories/2013/11/01/edw]}
 
The property was a home built approximately 50 years ago. It was fibro, with a garage, and partly renovated. It was clean and tidy for the most part, but perhaps this has been what was needed for the agent to become complacent.
The issues, outside of the tenant’s living standards, are:
<ul>
<li>
No safety switches to the main electrical board;
</li>
<li>
Accumulation of mould around the perimeter in two bedroom ceilings;
</li>
<li>
No balustrades to the landings around the porch area exposing a four foot drop to a concrete slab.
</li>
</ul>
I warn you, if a landlord has these issues, they are a potential liability. For an untrained property manager who isn't aware, or looking, for the issues, they may not see them as a problem and will leave them unaddressed.
However, these were not even the most concerning problems that I found with this property.
<ul></ul>
The alarming issues were the following findings:
<ul>
<li>
The garage was converted to living quarters without any local government approvals;
</li>
<li>
The garage was not fitted with smoke alarms, although it was obvious someone was using it as a bedroom;
</li>
<li>
The rear garage door opening to the swimming pool area was not secure;
</li>
<li>
The main house smoke alarm had not worked for the last 18 months.
</li>
</ul>
The blame
While it's not about who blames who, it's important to think about. Where would the blame lie should anything happen? This is the key legal question in a dispute should someone suffer a loss or injury as a result of the state of the property, so you want to be asking it before anything does happen. 
 
So, who is at fault?
We would be quick to blame the landlord, from the property manager's position. However, the landlord may be ignorant of the situation and regulations.
Is ignorance really an excuse? This question prompts the following argument: both the tenant and the landlord are relying on the professional, the real estate agent. Can you see how convoluted the argument will be once it reaches the courts? And at what price?
The industry
 
In my personal opinion, the industry standards have weakened and have dropped through the basement in some areas of our industry.
Property management, an area close to my heart and where greater attention needs to be placed as we deal with people, has had the misfortune to being the most affected. Low standards have been allowed to creep into the industry.
Then there is the added misfortune of low fees being charged by agencies due to pressure from landlords and the competition around. This is adding to the phenomenon of offices reducing costs and employing very young and unqualified people as property managers or property officers. But can you blame the real estate agencies when it only takes a weekend course to obtain a property management certificate and you can reduce wages by employing younger agents?
This just about says it all, doesn’t it?
Where did the seasoned property managers go, the managers that were able to identify possible issues and deal with these on a preventative mandate as opposed to a reactive process, and why did they leave?
Unfortunately, most have left the industry to work on property sales, a straight forward job in most eyes - once sold you can forget about it.
Sad but true, most property managers have left due to landlord’s unwillingness to rectify issues. These issues cause long term issues for the property managers, and then the tenants take it personally. Then there is the economic strain that most offices cannot afford to pay seasoned property managers due to fees being so competitive.
The solution
This is perhaps the sixty four thousand dollar question, what is the solution?
My first call is for a greater distinction in certificates between 'property management agents' and 'sales agents'.
The second call is for local and state governments to seriously look at the current conditions of rental dwellings and adopt 'spot property audits' not audits on property files in agents' offices but rather, inspections of the actual properties being rented out.
Yes, it may be a pipe dream but do we have to wait until someone is seriously injured or dies before something is done? 
 
<hr>
 Edwin Almeida is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>. 
 
 
 
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Property management: Is your tenant living in squalor?

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George Newhouse, head of disaster insurance recovery department with <a href="https://www.shine.com.au" target="_blank">Shine Lawyers</a>, has firsthand knowledge of the steps involved in getting emergency benefits and how to deal with insurance companies during a time of crisis.
Below are eight tips from George to help any resident dealing with property damage following a natural disaster:
<ol start="1">
<li>
Gather all your insurance policies that were/are in effect from the date your property was damage through to present. If you do not have copies, request them from your broker and document this request in writing.  Remember that your broker is paid by the insurance company and has their own interests at heart.
</li>
<li>
Notify your insurer of the damage to your property. If you had different insurers from the time of the bushfire through to present, it is best to give each of your insurance companies notice.
</li>
</ol>
<ol start="4">
<li>
Gather information about the damage to your property. This could include photographs of your property before and after the damage, information about work done to improve your home over the years, engineering reports and any information you might have received from your insurance company about your loss.
</li>
</ol>
<ol start="5">
<li>
Be careful about underestimating the damage. If the damage is more than cosmetic and you do not receive the full repairs or replacement now, you may be precluded from doing so in the future.
</li>
<li>
Read your insurance policies.  Get advice from a specialist if you have questions and never sign a release.
</li>
</ol>
<ol start="7">
<li>
Many policies are replacement policies. This means insurance companies are required to give new for old property or the equivalent monetary value when you suffer a loss.
</li>
</ol>
<ol start="8">
<li>
Document in writing all communications to and from your insurance company.
 
 
</li>
</ol>
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Eight tips for insurance claims in the wake of a natural disaster

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AMP Capital Markets chief economist Shane Oliver expects the Reserve Bank to leave interest rates on hold today, with some positives – such as HIA figures showing an improvement in the housing market and in new home sales - pointing to a rise in market confidence.
"There are signs the jobs market might be bottoming out, yet CPI inflation figures are a bit higher than expected - although they are in the mid-point of the target range," he said.
"There’s not enough evidence for a cut so the reserve will sit on its hands next week. It’s more likely we’ve seen the bottom of the rate cuts cycle and, in a year’s time, we may be going the other way. The housing industry is a good bellwether for all this and, with it rising, the scene looks a whole lot better."
Oliver said variable interest rates took their lead from the cash rate whereas fixed rates were affected by other factors, such as Commonwealth government bonds, which have been rising over the past year to just over 4% now. This has increased the banks’ long-term borrowing costs.
He said it was always the case that historically low interest rates "were never going to be sustained". As long term bond rates go up, banks lending at fixed rates over, say, three years would be faced with the prospect of being caught by a rise in the official cash rate, pushing up interest rates and making their loans unprofitable.
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Shane Oliver predicts RBA to leave interest rates on hold

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First time mortgage borrowers are tiring of being told that these are the cheapest interest rates they’ll ever see. More important is how to ensure you get a loan. Here are my top tips:
<ol>
<li>
Have a clear goal: Use online calculators to see what you need to save and how much the repayments will be.
</li>
<li>
Have a budget and a plan: you need a deposit and to reduce your weekly outgoings. You need to do this for at least six months.
</li>
<li>
Save a deposit: bigger is better.
</li>
<li>
Show consistent savings: lenders want to see evidence of good financial management, rather than windfalls. Use a separate savings account to make regular deposits and few withdraws.
</li>
<li>
Have stable and consistent income: lenders are generally less comfortable lending to someone who has had numerous jobs or long gaps between employment.
</li>
<li>
If you do change jobs, stay in the same field and show increased income. Apply for your mortgage before changing employers or starting a business.
</li>
<li>
Understand your budget: lenders will want to know your gross income, and your financial and living expenses to gauge your disposable income.
</li>
<li>
Know that most lenders credit-score you to get an idea of how much risk you pose. So you must minimise credit enquiries, job changes and changes of address. Next year Australia gets a credit reporting system where creditors disclose late payments, not just defaults.
</li>
<li>
Have a stable rental history and minimise moving houses or apartments.
</li>
<li>
Lower your limits on credit cards: every $1 of credit card limit stops you borrowing up to $5 of home loan. Reduce credit cards to one, and reduce that card’s limit to what you use. Pay-off and cancel the credit card if you can.
</li>
<li>
Stop applying for credit/store cards: it suggests you live outside your means.
</li>
<li>
Don’t take ‘interest free period’ store finance.
</li>
<li>
Ensure your bank accounts are in order. No late payments, over-limits, or overdraws. Lenders generally check or require account statements for the last three to six months when assessing your loan application.
</li>
<li>
Know your credit report: most lenders credit-score you on the Veda system which shows your current and past credit activity. You can buy your Veda credit file at <a href="https://www.mycreditfile.com.au/" target="_blank">www.mycreditfile.com.au</a>.
</li>
<li>
If you’re self-employed, get your taxes done before applying and make sure there’s no tax owing on your ATO account.
</li>
<li>
Reduce overheads: fancy car leases, big smart phone plans and cable TV charges can reduce your net income and affect your serviceability.
</li>
<li>
Move in with mum and dad if you can, but only if you’re going to save!
</li>
<li>
Talk to a broker: if you’re worried about your credit score and serviceability, a broker can get you prepared pre-application.
</li>
<li>
Don’t apply for too many mortgages. This affects your credit scoring.
</li>
<li>
Don’t lie to lenders, especially about other loans or credit cards.
</li>
</ol>
<ol start="8"></ol>
The basics always apply to mortgages. You need a deposit big enough to have 20% equity, and cover stamp duty and conveyancing. And you need to show you can service the loan. This is a 25-year debt, so take your time and get your preparation right.

<hr>
Mark Bouris is executive chairman of <a target="_blank" rel="nofollow" href="https://www.ybr.com.au/">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
You can contact Mark on <a rel="nofollow" href="https://twitter.com/markbouris" target="_blank">Twitter</a>.
 
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mbouris-tauSvXGAM2

The 20 tips to ensure you get your loan

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Over the past twelve months 4.25% of all houses in Melbourne have been sold. While this result is lower than the very strong years of sales over 2007 and 2010, it still represents almost one in twenty houses.
The suburbs featuring the highest number of sales in raw terms are those in the growth areas. <a target="_blank" href="/news">Pakenham </a>tops the list, followed by <a target="_parent" href="/news">Point Cook</a>, <a target="_parent" href="/news">Berwick</a>, <a target="_blank" href="/news">Frankston</a> and <a target="_blank" href="/news">Craigieburn</a>.
Frankston is the wild card in the list as it is not a growth suburb. This is reflected in the fact that less than 5% of Frankston houses sold over the year. The remaining suburbs recorded over 5%.
Accounting for suburb size some of the newer suburbs top the list. These include <a target="_blank" href="/news">Wollert</a> were over one in eight homes sold followed by <a target="_blank" href="/news">Sandhurst</a>, <a target="_blank" href="/news">Lyndhurst</a>, <a target="_blank" href="/news">Brookfield</a> and <a target="_blank" href="/news">Cranbourne East</a>.
A more in depth analysis of the list shows that a few suburbs would be considered as ‘established’ but whose high proportion of sales shows they are undergoing substantial change through infill development or significant new estates. The five most significant of these are <a target="_blank" href="/news">Mount Martha</a>, <a target="_blank" href="/news">Oak Park</a>, <a target="_blank" href="/news">Pascoe Vale</a>, <a target="_blank" href="/news">Port Melbourne</a> and <a target="_blank" href="/news">Aberfedlie</a>.
In the city’s north two of these suburbs undergoing a comparatively high degree of change and where large volume of sales are taking place. The small but well priced suburb of Oak Park with only 1,700 houses has seen 100 properties sold while neighbouring Pascoe Vale which is more affordable, has seen 247 of its 4,314 sold.
Is it too late to decide to sell this year? 
Following the encouraging results from the biggest week in history in the Victoria property market at the end of October for the Victoria property market some intending vendors may be have asking if it’s too late to sell at auction this year.
With only seven weekends left in the year when an auction can realistically be held, a decision to list for sale would not leave much time for a marketing campaign to make the most of your homes assets.
The most important person for a vendor to consult in making that decision is their real estate agent. After all, they are the experts at marketing and selling property.
The key matters a real estate agent will consider will be the length of time needed to prepare a home for sale, the preparation of the marketing campaign including taking high quality photos, the writing, bookings and placement of the advertisement.
These factors need to precede the actual sales campaign and be well executed to maximise the sale value.
The real estate agent may also consider the volume and types of listings scheduled for the time required to hold the auction.
For those considering selling by private sale there is a useful guide of the average time taking to sell a house at the moment which is the RP Data time on market measure. In the month of September houses took an average of 43 days to sell and units took 47 days.
 
<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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