One of Hervey Bay's best-known waterfront landmarks could undergo its biggest transformation in decades, with plans lodged to redevelop the Hervey Bay Hotel &amp; Resort into a four-tower mixed-use precinct combining apartments, retirement living, a new hotel, wellness facilities, retail and an expanded hospitality offering.

The proposal seeks approval to redevelop the 8,981 sqm site at 249 Esplanade, Pialba, transforming much of the existing 1980s-era hotel and resort into a staged masterplanned precinct while retaining the Hervey Bay Hotel as its centrepiece.

Rather than a conventional apartment project, the proposal has been designed as four distinct towers delivered across four stages, each with a different role within the precinct.

<img alt="First look: Four-tower transformation planned for iconic Hervey Bay Hotel site" data-entity-type="file" data-entity-uuid="89db2163-cdf2-484e-90a0-9804ece86a31" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Pialba%20da%201.png?VersionId=JsYhCwLtFk2p72uhjPQBqQ57.vWoIPeB" />

The largest hospitality component sits within Stage Two, which combines a refurbished tavern, sports bar, gaming lounge, bottle shop, lobby café and wellness facilities beneath a new 52-room hotel and 55 apartments, including 30 dual-key residences. The tower rises 14 levels above the Esplanade and includes gym, spa and wellness facilities together with more than 260 car spaces.

Stage One introduces a retirement living component comprising 69 retirement apartments alongside communal facilities, while Stage Three delivers 59 apartments overlooking the Esplanade. Stage Four includes a retail tenancy at ground level with a further 45 apartments above. Collectively, the masterplan provides 228 apartments across the four towers in addition to the new hotel accommodation.

Urban Planet Town Planning Consultants, acting on behalf of Herbay Pty Ltd, says the redevelopment builds on the long-standing role of the hotel within the Fraser Coast community.

"The Hervey Bay Hotel is an iconic use (notwithstanding the current format) and the retention for this facility in the community as an effective and successful business will advance the goals of the Planning Scheme," the town planner noted in its planning documents.

<img alt="First look: Four-tower transformation planned for iconic Hervey Bay Hotel site" data-entity-type="file" data-entity-uuid="cca3617b-693f-40e2-8fa3-f609c2c95d00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Pialba%20da%202.png?VersionId=8.hhkMuikoiLvoD6ei655Pj9mTKob4xV" />

The planning report argues the redevelopment responds to demand for greater housing diversity, additional tourism accommodation and expanded hospitality offerings within Hervey Bay's established urban area, rather than continued greenfield expansion.

"The delivery of contemporary services in the form of hotels, dining opportunities and short-term accommodation will be the cornerstone of the proposed development and does have a significant community outcome in the retention and expansion of existing services."

The masterplan has been prepared by <a href="https://www.apartments.com.au/architects/oge-group-architects">OGE Group Architects</a> and features three basement parking levels beneath towers rising to around 14 storeys, creating one of the largest integrated mixed-use developments proposed for the Fraser Coast. The design also incorporates gym and wellness facilities, communal recreation areas, retail space and new landscaped public interfaces across the four street frontages.

The site occupies a prominent waterfront block bounded by the Charlton Esplanade, Thomas Street, Watson Street and George Street, immediately opposite the foreshore and within walking distance of Hervey Bay's city centre, Wetside Water Park and surrounding commercial precinct. The existing Hervey Bay Hotel &amp; Resort currently occupies the site, with buildings dating largely from the 1980s.

Joel Robinson

First look: Four-tower transformation planned for iconic Hervey Bay Hotel site

The transformation of the Gold Coast’s CBD of <a href="https://www.apartments.com.au/developments/southport-qld-4215">Southport</a> is underway with the official commencement of one of the area’s first ‘next generation’ towers, the $200 million Maris residences.

More than 250 onsite and offsite workers will deliver the project being delivered by Malaysian company <a href="https://www.apartments.com.au/developers/mrcb">MRCB International</a> and its build partner, <a href="https://www.apartments.com.au/builders/binah-constructions">Binah</a>.

The start of construction by Binah follows an exceptionally strong sales campaign, with more than 90 per cent of apartments sold since its market launch less than a year ago.

The project has attracted predominantly local buyers and downsizers, many of whom who live and work in the CBD or the nearby Health and Knowledge precinct.

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The commencement of construction was marked by an official sod turning ceremony on site today (Friday, August 7).

MRCB International CEO Ravi Krishnan said MRCB was delighted to be playing a part in the transformation of the Southport precinct.

“We’re very aware of the importance of Southport as the CBD hub of the Gold Coast and the need for high-quality residential facilities for locals who live and work in the area,” said Krishnan.

"Across Southeast Queensland, new apartment supply remains constrained, particularly in established precincts with infrastructure and amenity already in place. Projects like Maris are increasingly critical in meeting that demand, especially on the Gold Coast and in the city's CBD precinct."

&nbsp;

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Binah's Managing Director Khalil Hafza said the company was delighted to be constructing Maris in its first foray into the Gold Coast market.

“Binah has been in Queensland for some time but we are very pleased to be given the opportunity to construct a project of such magnitude on the Gold Coast,"&nbsp;Hafza said.

“Some 250 on and off-site tradespeople and consultants will work on Maris over the course of the next two years bringing significant economic benefits to the Gold Coast community.”

Maris will deliver 192 residences across 20 levels. The project forms part of an Australian and New Zealand development pipeline by MRCB now exceeding $1.6 billion in gross development value, alongside a growing portfolio of projects globally.

The company also commenced construction on its $600 million 26 Vista residences in Surfers Paradise last year, following strong sales momentum, with over 70% of residences sold.

[smartcode_project:default project_id=134403 project_image_fid=372760]

Positioned next to the Broadwater in the Southport CBD, Maris will sit directly opposite the Broadwater Parklands light rail station and within easy reach of retail, dining and lifestyle precincts, placing residents at the centre of one of the Gold Coast's most connected and rapidly maturing urban centres.

Maris will offer a full suite of resort-style residential amenities, including a pool, gym and sauna, along with a rooftop level featuring decks, lounges and dining and yoga areas that command sweeping views across the Broadwater and out to the ocean.

Construction at Maris is anticipated to be completed in 2029.

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MRCB and Binah mark start of construction on $200m Maris Residences in Gold Coast CBD

To say Frank Licastro is keen on Wyandra Street, the small 400m strip that straddles Teneriffe and Newstead, would be an understatement.

Licastro, who runs Frank Developments, first jumped onto the street with <a href="https://www.apartments.com.au/new-apartments/ducale-teneriffe-33-wyandra-street-teneriffe-qld-4005">Ducale Teneriffe</a>, just 26 apartments at 33 Wyandra Street.

With those apartments heading towards construction completion later this year, Frank went again just a few doors down with the recent launch of <a href="https://www.apartments.com.au/new-apartments/murano-teneriffe-37-wyandra-street-new-farm-qld-4005">Murano House</a>, a further collection of 41 apartments at 37 Wyandra Street.

Now Licastro is planning his third building on the strip.

Frank Developments has submitted plans to Brisbane City Council for a considerably larger 147-apartment project across an amalgamated 1,928 sqm site at <a href="https://www.apartments.com.au/new-apartments/22-40-wyandra-street-teneriffe-qld-4005">22-40 Wyandra Street</a>, which also runs through to Wyatt Street.

The Cavill Architects-designed proposal, on the opposite side of the street to Ducale and Munro House, will rise to 22 storeys at its tallest point, stepping down towards Wyandra Street as the building transitions between the higher-density Newstead skyline and the lower-scale character of Teneriffe.

<img alt="Frank" data-entity-type="file" data-entity-uuid="fe60dd88-c9f1-495c-b918-ddfd5dbae504" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-17%20at%207.57.08%E2%80%AFAM.png?VersionId=0cxIChr_1aSNoE3K3VbVl8qNyENf4a90" />

The plans comprise just two one-bedroom apartments, with the project overwhelmingly geared towards larger apartments. There will be 80 two-bedroom apartments, 58 three-bedders, six four-bedroom apartments and a single five-bedroom residence.

The apartment mix continues the owner-occupier focus Frank has pursued across its recent inner-Brisbane developments.

There will be 222 resident car spaces and seven visitor spaces across four basement levels, along with 166 bicycle spaces.

Cavill has approached the architecture as a transition between two very different parts of inner Brisbane.

The site effectively sits on the dividing line between Newstead's high-density mixed-use precinct and Teneriffe's medium-density residential area, something that has heavily influenced the massing of the building.

Rather than presenting as a single 22-storey tower, the building steps up from a 13-storey form towards Wyandra Street to its taller 22-storey element towards Wyatt Street and Newstead. The design documents describe the taller component as the "backdrop massing", with the lower form creating the transition towards Teneriffe.

The architecture itself also changes as it rises.

At the lower levels, Cavill has drawn from Teneriffe's heritage buildings and the tuff stone found below ground, before shifting towards a more contemporary Newstead-inspired tower expression with continuous balconies higher up.

<img alt="Frank 2" data-entity-type="file" data-entity-uuid="3c6953c7-f65c-4ca5-bba0-08c1782b72af" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-17%20at%207.56.33%E2%80%AFAM.png?VersionId=NxHPok5FY.omKhxPVqVWIN9ONqfoQV53" />

Frank is also proposing a significant amount of resident amenity throughout the building rather than concentrating everything on one recreation level.

Amenity terraces are proposed at levels 13 and 16, before another major rooftop terrace at the top of the building. The plans show a pool terrace and landscaped outdoor spaces, with shaded outdoor rooms, tree planting and protected "City Rooms" incorporated into the shared areas.

At street level, the project will also seek to open up the connection between Wyandra and Wyatt streets.

A currently constrained pedestrian laneway along the northern boundary would be expanded, while a double-height "City Room" would be created on Wyandra Street. A separate two-storey outdoor arcade would run through the site from Wyandra Street to Wyatt Street.

The ground floor plans also show food and beverage tenancy space alongside the residential lobby, lounge, office and landscaped public areas.

Cavill says the intention is to create a more generous and heavily landscaped Wyandra Street frontage, with weather protection and public spaces designed to encourage people to spend time at street level.

Frank has been busy across Brisbane and the Gold Coast in recent years, with two ultra-luxury projects under construction in Surfers Paradise, as well as several projects in the pipeline across New Farm and Hamilton in Brisbane.

&nbsp;

First look: Frank Developments triples down on Teneriffe's Wyandra Street

Pikos Group has unveiled plans for an $850 million mixed-use precinct in Newstead, continuing the Brisbane developer's push into large-scale, lifestyle-led apartment projects.

The proposed development will transform an amalgamated industrial site bounded by Waterloo, Byres and Gordon streets, adding more than 300 apartments to one of Brisbane's most active inner-city development pockets.

Pikos secured the three adjoining lots, spanning a combined 2,346 sqm, in 2025.

Designed by Plus Studio, the plans are headlined by a 34-storey residential tower with 305 apartments, along with 496 sqm of retail, commercial and wellness space at ground level.

The project will also introduce a relatively uncommon apartment model to Brisbane, with two entire levels dedicated to pied-à-terre residences.

The smaller, flexible apartments are aimed at buyers who want a Brisbane base without necessarily living in the property full-time, targeting professionals, downsizers, interstate buyers and those looking to spend part of the week in the city.

<img alt="Newstead" data-entity-type="file" data-entity-uuid="f2c587aa-c365-4533-9893-a106714d2753" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-17%20at%207.43.25%E2%80%AFAM.png?VersionId=IrEvph5yTZTY7Jj78QcjT23cFvr5idPZ" />

Pikos Group Managing Director Pedro Pikos said the concept had been driven by changing buyer behaviour in Newstead.

"Newstead has become one of Brisbane's most desirable lifestyle suburbs, but it's also a market where many buyers are looking for flexibility," Pikos said.

"The pied-à-terre apartments give people a way to live in Newstead without the commitment of a large residence. They're beautifully designed, efficient and attainable, and they open the door for professionals, downsizers, interstate travellers and those who want a city base during the week.

"We see these apartments as an important addition to the precinct because they broaden accessibility and reflect how people increasingly want to live, close to work, close to entertainment and close to the river."

The project will be heavily weighted towards resident amenity, spread across multiple levels.

A rooftop recreation level will feature a 25-metre lap pool, plunge pool and spa surrounded by landscaped Mediterranean gardens and daybeds.

There will also be barbecue and pizza terraces, a teppanyaki terrace, olive court and outdoor relaxation areas, along with a sauna and steam room, private dining rooms and residents' lounge.

A separate amenity level on level five will include a gym, wellness and work-from-home spaces, cinema, multi-court facilities, games and function room and communal lounge.

Pikos said the development would build on Newstead's transformation over the past decade, driven by its proximity to the CBD, Brisbane River and neighbouring Teneriffe and Fortitude Valley.

"Newstead is one of Brisbane's leading lifestyle precincts and we see this project making a meaningful contribution to its next chapter," he said.

"The development represents a major milestone for our portfolio by bringing together luxury living, activated retail and wellness spaces in a way that reflects the future of inner-city Brisbane."

The Newstead proposal represents another significant addition to Pikos Group's rapidly expanding Brisbane apartment pipeline.

Earlier this year, the developer completed the $360 million <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">SKYE by Pikos</a> at Kangaroo Point, while construction is progressing on its $700 million <a href="https://www.apartments.com.au/new-apartments/gaia-kangaroo-point-108-lambert-street-kangaroo-point-qld-4169">GAIA</a> development nearby.

GAIA is being positioned as a wellness-focused residential community and represents part of Pikos' broader move towards amenity-heavy developments targeting Brisbane's owner-occupier market.

Pikos Group has delivered more than 65 projects over the past three decades and currently has more than $1.5 billion in high-end residential projects either under construction or in planning.

Pikos Group plans $850m Newstead apartment tower

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

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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Realestate.com.au has revealed the suburbs most-searched for by property buyers in Australia.
The South Australian suburb of Parkside tops the list, followed by Freshwater in NSW and Belair in South Australia.
The list is published every quarter.
Belair, Ashwood, Blackburn South and Stanmore are all newcomers to the list, while Freshwater, Fullarton and Newmarket regained popularity with buyers after dropping off last quarter.
The top 10 suburbs are:
1. <a target="_blank" href="/news">Parkside </a>(SA)
2. <a target="_blank" href="/news">Freshwater </a>(NSW)
3. <a target="_parent" href="/news">Belair</a> (SA)
4. <a target="_blank" href="/news">Newmarket </a>(QLD)
5. <a target="_blank" href="/news">Surrey Hills</a> (VIC)
6. <a target="_blank" href="/news">Ashwood</a> (VIC)
7. <a target="_blank" href="/news">Blackburn South</a> (VIC)
8. <a target="_blank" href="/news">Fitzroy North </a>(VIC)
9. <a target="_blank" href="/news">Stanmore </a>(NSW)
10. <a target="_parent" href="/news">Fullarton </a>(SA)
Parkside also took out top spot in the website's <a target="_blank" href="/news">July report</a>. 
At the same time last year the top 10 suburbs were:
1. <a href="/news">Parkside</a> (SA)
2. <a target="_blank" href="/news">Norwood </a>(SA)
3. <a target="_blank" href="/news">Walkerville </a>(SA)
4. <a target="_blank" href="/news">Hazelwood Park</a> (SA)
5. <a target="_blank" href="/news">Mont Albert</a> (VIC)
6. <a target="_blank" href="/news">Clifton Hill</a> (VIC)
7. <a target="_blank" href="/news">Park Orchards</a> (VIC)
8. <a target="_blank" href="/news">Unley </a>(SA)
9. <a target="_blank" href="/news">North Rocks</a> (NSW)
10. <a target="_blank" href="/news">Carlton North</a> (VIC)
 
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awalsh-7Ub9EypybQ

Top 10 most searched for suburbs in Australia

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Hi Margaret,
I have recently bought an investment property, and wish to maximise depreciation.  In the market there are so many quantity surveyors, how do I go about finding the best one? Are they all the same?
Many thanks, Daniel
 
Hi Daniel, 
Maximising depreciation on a property is really important, as it adds to the cash flows and can turn a previously negatively geared property into a positive cash flow one.  Even in a low interest rate environment, the possibility of achieving a positively geared result in your property investing (where raw rent exceeds raw expenses, and you pay tax) is limited to those areas with unusually high rental yields – these are usually areas based on one industry and with a greater risk to the investor. 
Where you have purchased in an area with more normal yields in the 5 – 6% range, on paper deductions, which are items which do not add to the expense ledger, can result in extra tax back.  This extra tax can plug up that shortfall between what comes in and what goes out and help you to stay in the market longer, as your holding costs are more well covered.  
Finding a quantity surveyor who is going to maximise these deductions is an important part of the investing process.  Understanding how they perform their calculations can help you to narrow down the good ones.  
The depreciation allowances themselves do not change from company to company – there is a prescribed amount which can be claimed on plant, equipment and buildings and the period of time over which they can be  claimed is  also prescribed, in the main, by the tax office.  It is the way that a quantity surveyor does their estimating that creates the difference in two different reports from two different companies.  
A quantity surveyor must, in effect first look into the past to establish what the original construction costs may have been for your property.  Then, they must estimate the value of the items within the property such as carpets, curtains and light fittings.  The first part is easier as there are tables which outline construction costs according to the years in which they were effected, but estimating a second hand value on an item for which you do not know the original purchase price is where the skill comes in.  
I’d suggest that first of all you ensure that the company you choose employs only duly qualified people and has a fairly long history in the business.  I like to choose companies which do a lot of the larger work too – the ones who do the big commercial and industrial estimating, as this is harder and requires a greater level of skill.  Next ask for a copy of a sample report, and then compare them across a couple of companies – these sample reports often contain similar sample properties so you can see how they differ.  
Lastly nothing is as good as a testimonial from satisfied clients.  Ask if they have happy clients who are willing to talk on their behalf, and whether it’s OK for you to contact them or be contacted by them.   If they can provide people who use them over and over again, this kind of testimonial can tell you much more than you can ever know from asking the company itself if they think they are good.  If they cannot provide this type of testimonial, there could be a good reason why!
Regards,
Margaret

<hr>
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel onYour Money, Your Call, both on Sky News.
She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
 
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mlomas-KC9MUPZ6Ca

I wish to maximise depreciation; how do I find the best quantity surveyor? Ask Margaret

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RP Data is expecting 826 auctions in Melbourne this week. After this week there are another 11 weekends for auctions to be held before Christmas and by using last year as a guide we can estimate around 10,000 homes will be offered at auction.
<ul>
<li>
Preliminary clearance rate week ending 29 September: NA (low volume)
</li>
<li>
Melbourne auctions expected week ending 5 October: 826
</li>
<li>
Melbourne private sales time on market week ending 29 September: 39 days (houses)
</li>
<li>
Melbourne vendor discounting market week ending 29 September: -6.2% (houses)
</li>
<li>
Listings being prepared for market: 8.6% higher in month ending 29 September
</li>
</ul>
RP Data is expecting 826 auctions in Melbourne this week. After this week there are another 11 weekends for auctions to be held before Christmas and by using last year as a guide we can estimate around 10,000 homes will be offered at auction.
Of those 10,000 auctions this years trend would suggest around 7,000 will be sold at or before the auction. The majority of those passed in will be negotiated over as the vendor and buyers seek to agree over price and terms.
Across the broader market there continues to be very strong listings as Victoria lead the nation for homes being prepared for sale for the second week in a row.

<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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RP Data's Melbourne weekend auction preview for October 5-6

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If you are worried about all this talk about a housing 'bubble' and have delayed buying a property or put off other decisions as a result, then you have fallen into a well laid trap, or perhaps you are following a path that the RBA (Reserve Bank of Australia) and others are trying to steer you down.  
Don't believe me? Here's why  
This country's monetary policy in recent decades has been set and controlled solely by the RBA (this wasn't always the case). Fiscal policy is set down by the government of the day with the assistance of Treasury and the competing interests of other departments and that government's policy agenda (meaning it can get messy &amp; complicated).
As the name suggests, monetary policy relates to the supply and cost of money.
Interest rates are the price (cost) of money and, whilst they can also have an effect on supply, the RBA's legislative ability to regulate supply and cost has largely evaporated over the past  40 years or so with deregulation as they moved away from or eased legislated controls such as LGS and SRD ratios, abolition of interest rate ceilings, exchange controls and the like to a liability management model. You can read all about it <a target="_parent" href="https://www.rba.gov.au/publications/rdp/1989/pdf/rdp8904.pdf">here</a> in a research paper written by Ric Battelino and others of the RBA.
So, with the removal of that legislative ability to impose controls the RBA has come, through necessity, to rely more on setting interest rates but even then their ability to impose those changes in getting the banks to follow suit has been found wanting as we have seen in recent years with banks often choosing their own path. Even when banks do agree to change their lending rate on mortgages, especially when the change relates to a reduction, their internal policies often leave the client's monthly payments unchanged.
The big problem for the RBA in this deregulated globalised environment now that we have a floating dollar is the effect of interest rate changes on the rate of exchange for that dollar. Make no mistake  - the RBA is poised on a knife's edge in balancing it's interest rate policy lever. Here's why.  
The effect of the GFC
 
It's very nearly six years now since our markets started to head south. It was five years ago last month that Lehman Brothers collapsed and we were engulfed by the GFC, the biggest financial mal event since the great depression. No other financial event has received such widespread media coverage at a time when media reaches us at all times of the day and in every place we visit - like it or not.
Furthermore, financial news has never been so prominent and widespread.
Here in Australia we escaped the worst of the GFC yet it scared the pants off most investors, home owners, business people and those who need to be employed. As a result countless plans have been delayed, decisions put off, retirements avoided, expansion plans placed on the back burner etc, etc. All this has led to massive pent up demand, especially for housing as our population continues to rapidly increase.
With Australia's economy in good shape compared to most other western economies these past few years and the strength of investment in the mining boom our currency has been very strong which has hurt many sectors of the economy, (even mining), to the point where a lot are at, or near, breaking point. With mining entering a new phase it has now become very important and urgent to assist and stimulate those sectors through creating the conditions for a lower aussie dollar. For the RBA that means low interest rates.
To their frustration the low rates to date have not translated to people spending money. Retail prices are still low; profits patchy and minimal. The dent in confidence was deep. Conservative consumer habits developed during the GFC are proving hard to shake. Three years of a hung parliament with all the negativity it brought did not help, just exacerbated things. Yet all this time our population continued to grow. Pent up housing demand was growing, yet confidence and job security was still weak.
 
Change isn't just coming - it's here!
 
That's right and there is more to come. Confidence is returning and we've got a new government. People are back out looking to buy houses and it has got the RBA scared. They are scared because we not only have a major under supply of housing but also labour and resources required to build more.
The laws of supply and demand then dictate that this puts upward pressure on existing housing stock which does nothing to stimulate the economy and is counter productive to what the RBA wants. Pent up demand is so great that if left unchecked it may lead to a bubble. Then again it may not. But wasn't that a bubble in US housing prices that caused the GFC? Maybe  - in very simplistic terms. It's a good scary story though.
So in this deregulated environment what does the RBA do? Increase interest rates (and by so doing the aussie dollar) to pour ice on the housing market at the expense of every other sector such as manufacturing, retail, farm, tourism etc, etc? It's a dilemma.  
RBA's new power tool
 
A few years back, having lost most of their statutory controls the RBA discovered another powerful tool to harness. It's called publicity and use of the media. They noticed how the media hang on every nuance of the RBA Governor's utterance.
They need to keep interest rates down and they also need badly to stimulate the economy at large to fill a sizeable hole left by falling mining investment. Any uncontrolled surge in prices of existing houses is just not productive except for assisting a few real estate agents.
So what better idea than to flag in the media the possibility and then call it "likelihood" of a housing bubble? Try and scare the punters away before it ever happens. They've even enlisted the likes of APRA and other spokespeople to join in the cause.
This story has been getting a good feed and continues to do so. Insurance and fund management industry spokespeople even blamed self funded retiree's with their SMSF's as the main 'housing bubble' protagonists locking the poor (still scared) first home buyers out in the cold.
Of course they have a major axe to grind as they have witnessed the SMSF sector take charge of their own money management instead of entrusting it to them, depleting the pie that the fund managers controlled for many years by many billions of dollars, with more than $500 million dollars going into SMSF's each and every week according to the Institute of Public Accountants.
Fund managers don't like it and you can bet that they will be lobbying the new government for some changes  - just what I am unsure. For their part the government will also be eyeing that SMSF pie too because there's a huge stash of cash there. Oh how to make use of it?  
So what about the bubble? Evidence please  
Truth is there is no bubble. Sydney prices have been buoyant and auction clearances above 80%. According to RP Data Sydney prices were up 8.4% last 12 months whereas the previous 12 it was only 1.2% and the year before that they were down 2.4%. Prices elsewhere in the country have told a similar story in a general sense over the same period, though not as buoyantly as Sydney - yet.
Sydney always leads and we all follow.
Brisbane according to RP Data has only risen 1.8% these past 12 months after some decreases and a flat market following the extensive flooding experienced all over Queensland these past two ears. So follow we will, but is it a bubble?
The answer is an emphatic no. Have another look at those graphs that I featured in my <a target="_blank" href="https://www.embarkpropertyinvestment.com.au/blog/housing-bubble/">blog</a>, "Where to after the election", it's all there in black and white and easy to see. We are simply now in the early stages of upswing in the investment cycle. Remember how back in April and May we studied the property cycle in quite some detail? You can go back and read it again here if you missed it.
The fact is that the RBA does not want to increase rates or have plans to do so anytime soon. They do want to encourage broad activity however across most sectors of our economy, even new home building, but price inflation of existing housing stock is not a preferred outcome so they are attempting to scare people a little to slow things down avoiding use of their interest rate lever.

<hr>
Adrian Stagg<a title="This external link will open in a new window" target="_blank" href="https://www.linkedin.com/profile/view?id=81214303&amp;trk=tab_pro" rel="nofollow"></a> is a director of <a href="https://www.embarkpropertyinvestment.com.au/" target="_blank" rel="nofollow">Embark Intelligent Property Investment</a> and has been actively involved in the property industry since the 1970’s.
You can connect with Adrian via LinkedIn.
You can also read Property Observer's exclusive article with several of the countries top economists and commentators in the property space, who shared their thoughts on <a target="_blank" href="https://www.propertyobserver.com.au/economy/is-there-a-property-bubble-the-experts-have-their-say/2013100365490">is there is a property bubble?</a>
 
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Don't believe the RBA's 'bubble' scare tactics; and here's why: Adrian Stagg

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We've been reading about it for the last few weeks, and some of us have been talking about it for years: The Property Bubble.
We asked some of the country's top economists and commentators in the property space to share their thoughts exclusively with Property Observer.
They were each asked:
Do you think there is a property bubble in Australia? Why/Why not?
Here, we share their responses to this question.
We also invite other spokespeople, and readers, to have their say.
Yesterday we polled our readers to find out their views on the question; the results are below. It's fairly clear most of you believe there is a housing bubble or one coming soon.
<img src="/images/stories/2013/10/04/poll-results-oct-4.jpg" width="470" height="258" alt="poll-results-oct-4">
Email <a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a> if you have an opinion that you think hasn't yet been shared.
Here are our experts' opinions.
 
Shane Oliver – Head of investment strategy and chief economist, AMP Capital<img src="/images/stories/2013/10/04/shane-oliver-profile.jpg" width="125" height="150" alt="shane-oliver-profile" style="float: right;">
NO BUBBLE YET, BUT RISKS HAVE INCREASED
What a difference a year makes! A year ago the big concern was that interest rate cuts won't work to boost the economy with some predicting a house price crash. Now it’s the other extreme with worries of a bubble. To be sure the risks of the housing market becoming a bubble have increased: mortgage rates are around record lows, house prices are picking up and buyer confidence has returned.  
However, just because house prices are rising at above average rates doesn't mean it’s a bubble any more than the falling prices over the 2010 to 2012 period means a property crash. Some aspects of a bubble certainly exist, in particular Australian house price to rent and house price to income ratios are well above long term average and well above global average levels. But this has been the case for more than a decade.
Other aspects that would normally be expected in a bubble are not yet present: house prices have only just risen above 2010 levels and have only been rising for a year, whereas housing bubbles normally see years of gains; housing credit growth is still around record lows at 4.7% year on year whereas during the bubble years last decade it was in the double digits; and I don't see the sort of speculative fever that normally goes with bubbles although we may be starting to get there given the media coverage.  
Finally, rising unemployment will likely be a constraint.  
So while the risks of the housing market becoming a bubble have increased I doubt we are there yet - one year of average home price gains of 5.5% certainly does not qualify - and there is a good chance we will avoid one in the year or so ahead. To be honest I rather hope we do, because bubbles bring the risk of official measures to pop them and by definition run the risk of ending with a crash.  
 
Steve Keen – Professor of economics and finance, University of Western Sydney<img src="/images/stories/2013/10/04/Steve-keen-profile.jpg" width="125" height="150" alt="Steve-keen-profile" style="float: right;">
BUBBLE HAS BEEN HERE FOR A WHILE
 
Yes there's a bubble--or rather that the bubble that began to burst back in 2012 has been given a new lease of life by falling mortgage rates, and the rise of two new classes of buyers, both of which should have been limited by public policy but have instead been promoted by it: wealthy Chinese buyers hedging their political and environmental bets by buying property on Australia, and self-managed superannuation funds who are now allowed to call a levered bet on property an investment.  
No sane country allows 50% of its new properties to be bought by non-residents: the rational limit applied by many European countries is 10%. Our policy is doubly insane given our geographic location and size, since there are certainly more Chinese millionaires than there are Australians.  
And superannuation funds should be allowed to buy properties for the income stream, but with no leverage. The leverage and seeking capital gain turns this from an investment to a speculation, and the leverage itself drives up the prices and causes the desired capital gain.  
These two additional forces drive out first home buyers, making for disastrous social policy. But it seems appeasing baby boomers with ever rising house prices matters more to both parties than affordable housing.  
The flies in the ointment for this bubble are (1) that Australians haven't deleveraged after the GFC, as Americans did. US mortgage debt has fallen from 86% of GDP to 68%, we have flatlined at about 88%. So any interest rate rise--and I think the RBA will be forced into them soon given this bubble (that they could have prevented with LVR controls as in New Zealand)--will crucify demand from upgrades and even investors; and (2) that the buyers are far more investors now than upgraders. They are utterly dependent on Chinese and superannuation demand to make a profit, because they can't all get rich selling second hand houses to each other.  
So I stick with seeing this as a suckers rally, but one aided and abetted by a compromised political class.  
 
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Tim Lawless - National research director, RP Data
<img src="/images/stories/2013/10/04/TimLawless-profile.jpg" width="125" height="150" alt="TimLawless-profile" style="float: right;">
NO BUBBLE YET, BUT WE NEED TO TALK ABOUT IT
 
The first thing to point out is no I don't think there is a property bubble but the debate it worth having. We’ve seen values up by 3.7% over the quarter and since it bottomed out last year, it's great to see a growth cycle and at the beginning of a cycle you see strong rates of growth. But these rates of growth are not as strong as we have seen in previous cycle starts. In saying that, I think the debate is more focused on two key markets - Sydney and Melbourne, which is dragging the capital cities up.  
Our index is a weighted index and so these cities have heavier weighting as they have more stock. Brisbane was actually down in September and over the past decade; values have only risen in Brisbane by 4% per annum.  
Look back to 2007 and Brisbane arguably overshot the mark, which is why it's largely subdued now as it's feeling the pain from a strong run of growth in 2007.
As capital gains outpace rental growth the impact on yields naturally dampens investor exuberance.  
Melbourne yields on a house are 3.5%. As yields become eroded and there’s more speculation about these markets overheating, we’ll see investors move to other markets. Brisbane is the obvious candidate as dwelling values are substantially lower, yields are much higher and the fundamentals are relatively strong. I think Brisbane will be a natural flow-on point.
Perth and Darwin have been standouts until six months ago, and now they’re hitting the breaks. It’s explainable by the slowdown of the mining sector and some of the slowdowns and cancellations of projects we’re seeing. It stands to reason that as labour markets slow so does the housing market, as the two are intertwined.  
Generally when you talk about a bubble you're talking about a strong unsustainable ramp up that will be followed by a correction. Over the past quarter the growth rate is high and warrants this sort of discussion. They should be watched with scrutiny if we see the growth continue into 2014, but I don’t think we’re in a bubble yet. However, this conversation is healthy to have.  
Even though the Reserve Bank and APRA haven't been overt in their actions I think it's guaranteed their over the table discussions would be deliberate with the financial sector to ensure lending standards are maintained.  
 
Saul Eslake - Chief economist Australia and New Zealand, Bank of America Merrill Lynch<img src="/images/stories/2013/10/04/saul-eslake-profile-2.jpg" width="125" height="150" alt="saul-eslake-profile-2" style="float: right;">
NO BUBBLE YET, PUT POTENTIAL RISKS
 
At this stage I don't think it is accurate to characterise Australia's property market as a 'bubble'. It's certainly true that Australian property prices have begun to rise again, spurred by very low interest rates and by the interaction between strong growth in 'underlying' demand and unresponsive supply. And it's also true that the current rise is occurring from a very high base, both by historical and by international standards. So far, however, the current upswing in property prices doesn't seem to be being driven by rapid growth in debt, which is another key hallmark of a 'bubble'.
After rising very rapidly between 1992 and 2005, household debt has been fairly stable as a proportion of household disposable income since 2006. And over the past year, during which property prices have risen by an average of 5.3%, the total stock of housing debt outstanding has risen by only 4.7%, close to historical lows.
However, if interest rates remain at very low levels for an extended period (or fall further), it is quite conceivable that the Australian property market could take on 'bubble'-like characteristics, with people borrowing in order to buy property purely in expectation of reaping capital gains.  
One worrying feature of the current upturn in the property market is that it is being driven to a greater than usual extent by investors, who, to a much greater extent than owner-occupiers, typically buy established properties rather than new ones. If that remains the case as the upturn continues, it will do more to boost prices and less to induce new construction than either the Reserve Bank wants, or the country needs - increasing the chance of an abrupt correction when interest rates start rising again - which they will do sooner rather than later if property prices and mortgage debt start to rise at rapid rates.
Ideally, the federal government would reform the taxation system so as to reduce the extent to which it inflates speculative demand for housing, while state and local governments would reform their tax systems and their planning policies so as to make it easier to boost the supply of housing. But history argues against expecting much on either score.  
 
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Louis Christopher – Owner, SQM Research<img src="/images/stories/2013/10/04/Louis-Christopher-profile.jpg" width="125" height="150" alt="Louis-Christopher-profile" style="float: right;">
NO BUBBLE, RECOVERY SET TO ACCELERATE
Typically, a bubble is characterised by explosive rises in prices (typically double digit annualised price rises) which occurs across the most of the sector or economy. At this point in time national house prices are only recording modest to moderate capital growth rates (at about 6% annualised) with one city (Canberra) actually recording price falls. There are only two cities recording above average price growth, that being Sydney and Perth.
To call it a national housing bubble, we would need to at least see Melbourne and Brisbane also record double digit capital growth. That just simply isn’t happening right now and is not likely to happen given those market are currently well supplied.  
However, we do envision a situation that dwelling price growth rates will accelerate to a point later next year, where it may become a little uncomfortable for the RBA and, at that point, they may wish to tap on the brakes and lift interest rates to slow the pace down a little. That maybe a difficult proposition for the bank, especially if the economy itself is recording below average GDP growth rates and especially if most of the national lift in dwelling prices is really just coming from a heated Sydney market.  But even if that is the case, it still may not be classified as a 'bubble'. But rather a very manageable situation that can be nipped with just a tap of the interest rate brakes.  
So, is the Sydney market in a bubble? Sydney itself was actually overdue for a large lift in prices. The local market has largely underperformed compared to other capital cities over the past 10 years in what was really a consolidation period from a rather frothy market back in 2003; a point in time when the Sydney market was indeed extremely overvalued.
In terms of the valuation metrics we consider, even with the price rises we have had to date and SQM’s rather bullish forecast for next year taken into account, Sydney would still not be at those hefty highs recorded ten years ago. There are also some firm fundamentals driving the market; namely being a genuine shortage of accommodation, an improving state economy which has kept unemployment below the national average; a strong population growth rate. That is not to say the market won’t get into overvalued territory in this cycle; it will. But just not right now.  
So, in our firm conviction there is no property bubble at present in the Australian housing market. End of story. Before blindly following those who make such warnings, perhaps do some research on their previous calls. I can tell you now; it’s not a pretty picture.  
If there was a current property bubble right now, you would hear it from us first. Our track record speaks for itself. We are on public record as forecasting the downturn of 2010 to 2012. And we are on public record for predicting the recovery of 2013. And now in recent weeks have been on public record as being picking that this recovery will accelerate into 2014. We are the only analysts out there with this type of record and it is done without a conflict of interest or deliberate hysteria.  
 
Andrew Wilson – Senior economist, Australian Property Monitors<img src="/images/stories/2013/10/04/AndrewWilson-profile.jpg" width="125" height="150" alt="AndrewWilson-profile" style="float: right;">
NO BUBBLE AND NO CRAZY BOOM
 
So here we go again. The housing market bubble bandwagon is up and running – but this time it’s a crazy boom not a scary bust that is being predicted by some for the Sydney housing market next year.  
The reality more likely is that the Sydney housing market is about as close to a boom next year as it was to the bust that was widely predicted for last year.  
Low interest rates, rising confidence and a surge in investor activity are the current drivers of the Sydney housing market together with a solid performance by the local economy.
But the underlying drivers remain problematic for sustained high levels of house price growth next year. Sydney’s unemployment rate is now rising towards 6% and predicted to continue to rise. Wages and profit growth remain subdued in a low inflation economy with a stagnant stockmarket continuing to constrain growth in the prestige market. The prospect of sharply falling rental yields will also prove a disincentive for new investors.  
Prices growth in Sydney is likely to peak over the next six months with continued solid growth dependant on a sustained revival in the economy and unemployment falling to or below 5%.  
For the record, Sydney’s highest annual house price growth over the past 20 years was in 2002 at 22.2%. Next best was 2001 at 17.4%.  
If, as has been heroically suggested by some, Sydney house prices were to rise by 20% next year that would bring the median price to nearly $900,000. Enough said.  
 
<hr class="system-pagebreak">
Harley Dale - Chief economist, Housing Industry Association<img src="/images/stories/2013/10/04/harley-dale-profile.jpg" width="125" height="150" alt="harley-dale-profile" style="float: right;">
NO HOUSING BUBBLE, WE'RE IN A RECOVERY
 
Australia does not have a housing bubble, but rather a recovery in some dwelling price markets. Nationally, dwelling prices are no higher in real terms than back in late 2007. Dwelling prices are still declining in three capital city markets and in non-metro Australia, and are barely growing faster than the rate of inflation in a further two cities.
Not quite ‘speculative fervour’! Australia does not have high levels of new home building – we are constructing fewer homes than a decade ago. We do not have an extremely high level of transactions occurring as investment properties change hands in rapid fashion – transactions volumes are recovering but are still below historical averages.  
Median dwelling prices are growing strongly in Sydney, Perth, and to a lesser extent Melbourne. Sydney is receiving much attention, but prices there were the worst performing of any capital city market over a decade. A ‘first stage’ recovery in new home construction is underway in both Sydney and Perth and it is crucial that further growth occurs in 2014 and 2015.
A sustainable lift in the supply of new dwellings and how that can be assured is where the focus needs to reside, not a preoccupation with a fictitious bubble. The latter focus harms the prospects of a sustainable, broad-based new home building recovery emerging at the very time when that is one of the key outcomes the Australian economy requires.  
 
Whose opinion would you like to have added to the list? 
Email <a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a> and we’ll consider getting their viewpoint.
 
 
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po-LsXgBTHBmX

Is there a property bubble? The experts have their say

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HE SAID: SADLY, NO
<img height="225" width="150" src="/images/stories/2013/09/06/jc-silhouette-5.jpg" alt="jc-silhouette-5" style="float: right;">
Although I am a devotee of the famous opera diva, I don’t think her name carries much weight anymore.
Indeed, I notice the current listing of a Warrawee residence, Kirkoswald, makes no mention of her name in its marketing campaign. Unlike previous advertising campaigns when her name was considered noteworthy. It last sold for $4.9 million in 2005.
During the height of her fame early last century, Dame Nellie Melba performed in a reception room at Kirkoswald, at 22 Warrawee Avenue (pictured below), the 1906 Victorian Free Classical style mansion designed by architect J. Burcham Clamp for Irish-born John Meloy, a master carrier from Glebe.
{yoogallery src=[images/stories/2013/10/11/war]}
'Kirkoswald' 22 Warrawee Avenue, Warrawee
These days, property listings are more likely to mention Lady Gaga’s attendance at a property - to wit, Moebius House, the Dover Heights residence as yet unsold.
Of course, Dame Nellie’s enduring association is the famous Peach Melba dessert. I recall seeing the dessert featured on an original 1890s menu displayed in a museum at Villeneuve-Loubet, a village in the South of France. This museum celebrates Auguste Escoffier, the king of celebrity chefs who created many famous dishes.
In 1893, while working as a chef at the Savoy in London, Escoffier invented Pêche Melba in honour of the Australian opera singer, and four years later he devised Melba toast. Nellie often ate at Escoffier’s restaurants while performing in Covent Garden during the late 1890s and early 1900s.
 
<img height="225" width="150" src="/images/stories/2013/09/06/mb-silhouette-4.jpg" alt="mb-silhouette-4" style="float: left;">SHE SAID: YES, OF COURSE
Dame Nellie Melba is more current than ever. Only this week her name was splashed across London following her appearance (played by Dame Kiri Te Kanawa) in the latest episode of Downton Abbey’s season four. Last month about 10.5 million people tuned in to watch the season four launch of the popular television series.
Rupert Christiansen, the opera critic of The Telegraph in Britain, noted Melba’s enduring notoriety this week. But his column gave the writers of the television series a serve by noting: “Downton Abbey got Nellie Melba all wrong. Confined to her room with a cup of tea and treated by Carson as though she was a visiting tradesperson during her visit to Downton Abbey? The real Dame Nellie Melba wouldn’t have tolerated such treatment for a nanosecond. In 1922, she had enjoyed 30 years of being received as a social equal by crowned heads and aristocrats throughout Europe, and she would only have sung at a private party as a personal favour to her host. Melba was nobody’s hireling: she called all the shots, and the Granthams and their staff would have quaked at her approach.”
With the number of expats living in London, who could be watching Downton Abbey while searching on the internet for a mansion back home in Australia, it may be a good idea for <a target="_blank" href="https://www.mcconnellbourn.com.au/buying/NSW/North-Shore-Upper/WARRAWEE/House/1P2507">McConnell Bourn </a>agent Carole MacRae to amend her advertisements for Kiroswold at Warrawee. Certainly worth adding Dame Nellie Melba’s association to the marketing of the mansion which sits on 2,640 square metres with verdant gardens, a tennis court and swimming pool.
Of course, Kirkoswald is not the only mansion connected with Melba. The immensely wealthy operatic superstar’s longest association with a Sydney property is Rose Bay’s Fernleigh Castle.
Melba rented Fernleigh Castle initially at 30 guineas a week in 1911, and seemingly stayed for two years. But the prima donna’s tenancy, like her life, was not without incident. An uproar ensued after Melba had trees chopped down to improve her harbour view from the circa 1892 sandstone mansion.
During the First World War, Melba worked tirelessly on singing tours of Australia to raise money for war charities - about £100,000, a vast sum at the time. In recognition she was made a Dame Commander of the Order of the British Empire (DBE) in March 1918 “for services in organising patriotic work”.
Other homes Melba is known to have sung at include:
·     Katoota in Avenue Road, Hunters Hill, Sydney
·     Moombara, a former vice-regal residence at Port Hacking, Sydney
·     Amanbah House at Maitland (Hunter Valley NSW)
·     Coorah at Wentworth Falls (Blue Mountains NSW)
·     Como in South Yarra, Melbourne
In her twilight years, <a target="_blank" href="https://warrenfahey.com/fc_nsw-manar5">Dame Nellie had a Sydney bolthole at Manar, a gracious apartment building at 42 Macleay Street, Potts Point.</a>
Coombe Cottage at Coldstream, a small town situated at the gateway to the beautiful Yarra Valley and about 50 kilometres east of Melbourne, was her home. The property is now owned by her great-grandsons, Lord Samuel Vestey and the Hon. Mark Vestey.
Born Helen 'Nellie' Porter Mitchell on 19th May 1861, Melba was the first Australian to achieve international recognition as a classical musician. In later life she set up a music school at Richmond which she merged into the Melbourne Conservatorium.
 
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jchancellor-FAypfDUnLy

Is there still cache in selling a home where Dame Nellie Melba once sang? He Said/She Said

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Another of the Richmond cottages from the 2011 series of the Channel 9 renovation show, The Block has come onto the market. <a target="_blank" href="https://www.realestateview.com.au/Real-Estate/43-cameron-street-richmond/Property-Details-buy-residential-6145815">It's the renovated three bedroom terrace of Rod and Tania</a>.
Our contrarian property commentary couple, Jonathan Chancellor and Margie Blok look at the merits of buying 43 Cameron Street, Banstead Cottage.
{yoogallery src=[images/stories/2013/10/04/rich]}
HE SAID: CAUTION<img height="225" width="150" src="/images/stories/2013/09/06/jc-silhouette-5.jpg" alt="jc-silhouette-5" style="float: right;">
It will be interesting to see how this listing performs as while there's been nice recent strong price growth just three along, this one looks a bit trickier to gauge.  
It was only a few weeks ago the dearest home in the 2011 Block Richmond renovation series resold for the first time. 
It was the three bedroom 37 Cameron Street Richmond cottage renovated by Josh and Jenna who had a $950,000 Block 2011 auction reserve.
Their Edwardian cottage sold under the television bright lights for $1 million. Its recent auction price guidance was $1 million plus. And it fetched $1,147,500.
Rod and Tania's auction reserve was $850,000, and while it didn't sell on the day, the couple's handiwork secured an ensuing $922,000 sale at an impromptu Jellis Craig onsite auction attended by six parties.
Just one of the interested parties had been at the auction, with the other five having only seen the property passed in on television. <a target="_blank" href="https://www.propertyobserver.com.au/victoria/take-two-auction-frenzy-as-only-one-offering-left-on-the-block/2011082351266">I called it an auction frenzy</a>.
It's now been listed by a Melbourne investment couple.
The current marketing for 43 Cameron Street has the price estimate as $900,000 plus. 
RP Data suggests the median Richmond house price sits at $773,000 which is down on the $800,000 median around the time of the 2011 auction, so best any interested parties don't get carried away in a mix of Block afterglow and Melbourne's current price spike. 
<img height="225" width="150" src="/images/stories/2013/09/06/mb-silhouette-4.jpg" alt="mb-silhouette-4" style="float: left;">SHE SAID: CAUTION
Ignore all the fun the hit television series generated and just figure out its fundamentals.
Especially if you are an investor because the rental returns have been diminishing over the past two years.
Indeed the neighbouring cottage recently became available for rent again and the investor was set to get even less return on the initial $860,000 outlay. It was Katrina and Amie's house at 41 Cameron Street which was listed at $950 a week shortly after the big 2011 auction and then next became available for lease at $895 a week. 
The indicative gross rental yield for <a target="_blank" href="/news" title="Richmond">Richmond</a> houses is an ordinary 3.8%, according to RP Data.
Another Block cottage was offered - at 39 Cameron Street - with a weekly $1,250 asking rent after the 2011 auction and then a year later at $1,000 a week.
Ofcourse there are good tax depreciation prospects, but be sure to get a building inspection report before its October 26 auction.
And don't forget to check out the impact of the Coles Property Group's 11 storey redevelopment of Richmond Plaza - it includes the carpark just across the road from the front facade of Banstead Cottage.
Nothing much in the metropolitan press since it was first mooted after the television series in late 2011, but I see the VCAT approval came through not so long ago for the 12,840 square metre site.  
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The latest Block Richmond cottage offering: He Said/She Said

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As the front covers of property investment magazines attest, many younger investors have done well by choosing to invest in the property market.
McGrath Real Estate boss John McGrath advises that provided you can afford it, you should get involved in property at a young age.
According to McGrath, over the long term property is a very “safe and stable asset class that will become your most valuable financial investment for the future.”
While it is the most expensive asset class, he says there are capital gains exemption on family homes and negative gearing on investments that can lighten the load.
Other reasons to consider investing now include very low interest rates and improved housing affordability.
There is also the opportunity to be a renter-investor– rent in a desirable area close to the city, shops and nightlife and buy a more affordable investment property further out of the city.
Young investors could also consider buying with friends or family.
<hr>
This article is fromProperty Observer's free ebook <a href="/guides/free-ebook-top-10-property-investment-tips">Top 10 Property Investment Tips</a>
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You are never too young to start investing

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Are great property investors born or made?  
If you’re like me you were told from very young age that if you want to succeed at something – be it sport, school or a musical instrument – that you must put in time, hard work and importantly, practice.  
Most of us learnt our times tables by repeating them over and over – practicing multiplication was the most effective means of learning this skill.  
Well the same applies to property investment. Successful property investors are not born with a “how to” manual and they certainly don’t rely on luck.  
Fact is one of the big differences between the athletes, musicians and business people who excel in their chosen field, compared to the “average Joe” is in the years of practice they dedicate to honing their craft.  
And this also applies to property investors.  
Successful property investors understand that to be good at what they do – creating wealth with real estate – they must learn the rules, gain experience by “doing it” and then improve by refining how they do it.  
Training for investment success
In his book Outlier, Malcolm Gladwell noted that in most occupations where complex cognitive and motor skills are required – such as performing complicated surgery or playing the piano – experts in these fields have had an average 10,000 hours of training.  
The key is being able to eliminate all the “noise.”  
You need to be able to chunk down all the information available into usable bite-size pieces through a finely honed retrieval system that can quickly screen out irrelevant options given the specific situation.  
This skill comes from familiarity gained by “doing it.”  
It’s like top tennis players who through experience have developed a sense of where a ball is likely to be served by unconsciously noting the subtle changes in the stance of their opponent.  Or the champion cricketer who seems able to anticipate where a ball will be bowled even before it has left the bowler’s hand.  
It’s the same type of perspective that gives seasoned property investors an edge over the average investor.  
Think about it…  
Having lived and invested though five property cycles means I don’t get carried away by all the property naysayers and doomsday merchants that seem to concern many other investors.  
I’m not an eternal optimist. I’ve just seen it all before.  
Consistency is key
No matter which investment strategy you select, be it capital growth or cash flow, renovations or property development; you’re likely to find that a small group of investors, say 10% do really well and the rest struggle.  
Rather than jumping from one shiny thing to the next like the average investor, these successful investors do the same things over and over again.  
They set their goals, map their course and then keep doing what works, refining their skills along the way.  
By sticking with a tried and tested strategy, these investors know how to navigate any tricky bumps in the road and become accustomed to seeing the opportunities and potential earning power in market movements.  
This means their success depends on them and the skills they have refined throughout their investment journey, rather than on the market place.  
But that’s not how most beginning investors do it.  
They want to climb the property ladder all the way to the top and nothing will stand in their way.  
They start using the latest fad from some get rich quick seminar, buy their first investment and then look for the next big way to make millions. And thus begins a cycle of jumping from one bandwagon to the next.  
However we know most investors never achieve financial freedom. In fact most never get past their second property.  
This is in part because they have never refined their real estate strategy and taken the time to learn the rules of the game, so they inevitably fall at the first hurdle and more often than not, call it quits before they make any progress at all.  
That’s why around 20% of those who buy an investment property sell up in the first year and around 50% of those getting involved in real estate investment sell up in the first 5 years.    
So when will I become an expert?
The way to become an expert is to do one thing a hundred times, rather than 100 things once.  
Yes practice makes perfect, which means that rather than looking for the “one big deal that will make you rich quickly”, you should start your investment journey gently, knowing that you’ll make mistakes along the way and learning from these will make you a better investor.
 
Before you panic about having to commit 10,000 plus hours to property investment before you can call yourself an “expert”, let me assure you that there are ways to speed up the learning process in real estate.  
The simplest is to find a mentor who has already achieved what you want to achieve and let them guide you.  
Study how they think, because it’s likely a large part of their success comes from their mindset.  
Then emulate their successful behaviours and learn from the mistakes they made in order to advance your own skills and refine your own strategies.  
How will you know when you’re an expert?  
The main thing that separates the successful investor from the wannabe’s is an ability to consistently outperform the averages.  
And yes, to get to this level of expertise, takes time, patience and practice.
 
<hr>
 Michael Yardney is a director of <a rel="nofollow" href="https://www.metropole.com.au/">Metropole Property Strategists</a>.
 
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myardney-DFoGhGbSJX

Successful property investors put in time, hard work and importantly, practice: Michael Yardney

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Property developing can throw many different challenges at you and one thing I have learnt after managing over 60 developments is that there is always a solution to a problem. The trick is to understand what possible issues could arise and preparing yourself for them.
You see, the development process is not an exact science because every development site is different.  So the construction costs will rarely, if ever, be the same from project to project, even if you are using the same plans.
Some sites will need more retaining than others based on the fall of the land, others may need more concrete due to the length of the site and then there are the projects that have things lurking below the surface that could never have been imagined.  We once uncovered an old asbestos shed that had been buried many years ago. This did not come up on our geo technical report and had to be removed as contaminated rather than normal waste.
Sometimes if you develop in the same areas, you can work out after a few developments, what is likely to happen.  You may be able to base your estimates on say the soil type as you’ve developed in that same estate.  This can mean similar slab piering will be required as an example. You understand what council is likely to approve and the fees and charges. That’s what experience brings to the table.
But sometimes things don’t go to plan and as a project manager it is up to us to make sure the development gets through as efficiently as possible. One of the biggest areas for problems is the allowance for building works.
When pricing a development and running feasibilities, it is important to understand that your building estimate is an organic creature. By this I mean the building estimate you start with will nearly always be different to the one you end with.  It will evolve throughout the process as you obtain more and more details.  Once you have all the fine details, the building estimate can be finalised to the fixed price builder’s tender.
When designing our villa plans, we generally follow this process:
<ol>
<li>
Concept plan – this will show the number and size of villas on the land, but not much detail
</li>
<li>
Development application (DA) plans – enough information is included on the plans to satisfy  council
</li>
<li>
Construction certificate (CC) plans –more detail, including engineer drainage and slab design
</li>
</ol>
The starting point for our build estimate will be based on similar projects that we have recently completed and an allowance for the different site.
This progresses to an estimate based on the concept plan.  Still a very ‘loose’ estimate as there is usually not enough detail on the concept plan for the builder to have all information he needs.  The build estimate we have at this stage will tell us whether we are tracking within budget.  If not, we can make the necessary changes required, perhaps reducing the size of the villas working with both our builder and architect to design the right dwellings for our project to be successful.
Once the concept plan is approved, the architect will proceed to full DA plans.  It is here that much more detail is added and we will have our builder price the DA plans.  Again, this does not give us a final build cost but we will be getting closer to the expected outcome.  Once approved by our client, the DA plans are finalised and the DA is prepared.
During the DA process, council may request some changes to the plans, so it is important to understand we are still ‘evolving’ at this stage. We also need to review the conditions of the DA consent before we have more detail to finalise the build costs.
Once council have approved the DA, we will start to prepare the CC plans.  Engineers will be briefed and a drainage and engineered slab design or footings for the foundations will be produced. More detail is added to the CC plans, finalising levels and double checking schedules.
Before we lodge the CC plans with our private certifier we will have our builder issue a third costing. It is this costing that will give us the final build costs...well almost.  We still need to have the CC approved and ensure there are no further revisions to the plans required.
After we have the CC stamped plans, our builder will issue their final tender and building contract. This will be a fixed price contract; however, there may still be a few items that will be ‘provisional’. They are usually some site works, removal of fill and retaining walls. 
The builder may mark these items as provisional as they won’t know until works proceed exactly what the cost is. For instance, if rock is hit during the site cut, this will increase the site costs. If the site cut differs slightly to the plans, this may impact on the height of retaining walls.  So these ‘provisional’ items will be charged at actual cost whether it is lower or higher.  
<img alt="chivers-oct-3-one" height="263" width="470" src="/images/stories/2013/10/03/chivers-oct-3-one.jpg">
So you can see how the build estimate must evolve through the development process and until your development is completed, you really won’t know the exact cost.  It’s important you allow a contingency amount for variations that may crop up along the way.
As a developer, you will embark on a challenging journey from start to finish and the path you choose can be simplified with the help of a project manager to guide you along the way.  Always take the time to have full builder’s estimates done at each stage to avoid any nasty surprises.
 
<hr>
 Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">Property Bloom</a>, which manages property development.
 
 
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