<a href="https://www.apartments.com.au/developers/jl-place">JL PLACE</a>'s Veil Brighton is approaching its final months of construction, with the nine-townhouse development at 17 Rooding Street expected to complete in December 2026.

The milestone is bringing the boutique project closer to becoming a finished part of the <a href="https://www.apartments.com.au/developments/brighton-vic-3186">Brighton</a> streetscape, with much of Brighton's everyday amenity within a short walk.

Palace Cinema, Coles Supermarket and North Brighton Station are all around five minutes on foot from <a href="https://www.apartments.com.au/new-townhouses/veil-brighton-17-rooding-street-brighton-vic-3186">Veil</a>, alongside numerous cafés, restaurants and bars. The station provides a direct rail connection toward Melbourne's CBD, while Bay Street and the wider Brighton retail and dining network add to the range of services accessible without relying on a car for every trip.

"The location was fundamental to the project. Brighton is an established suburb where many buyers already have strong connections to the area and want to remain close to the people, places and amenities that form part of their everyday life," the developer said.

"Veil sits in a highly walkable part of Brighton, with a Walk Score of 90/100."

For buyers looking to right-size within Bayside, that level of walkability adds to the appeal of a more manageable way of living. Everyday shopping, dining, entertainment and public transport can be accessed without relying on the car for every trip, while residents remain connected to the places and routines that make Brighton familiar. It allows buyers to simplify day-to-day life without giving up the convenience, amenity and connections they already value.

[smartcode_project:default project_id=7877 project_image_fid=355754]

As completion approaches, the architecture, landscaping and material palette are progressively becoming visible on site, giving prospective purchasers a clearer view of the finished development beyond its plans and renders.

Veil comprises nine townhouses, predominantly three-bedroom homes with between 2.5 and 3.5 bathrooms, two car spaces and, depending on the residence, study areas and private outdoor space. Selected homes include a bedroom on the ground floor.

Veil occupies a middle ground between detached housing and apartment living, retaining private gardens, storage and secure parking within a more manageable residential format.

<a href="https://www.apartments.com.au/architects/schmidt-pang-architects">Schmidt &amp; Pang</a> designed the architecture around natural light, ventilation, privacy and practical use of space. From Rooding Street, the façade has been composed to read as a cohesive residential building rather than nine individual townhouses, with landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick Landscape Architects</a> integrated throughout the site.

Inside, natural stone, oak flooring, integrated joinery and brushed nickel finishes establish a restrained material palette, while kitchens include Miele appliances and substantial storage such as pantries. Walk-in robes and dedicated study spaces have also been incorporated across the collection.

[smartcode_project:default project_id=7877 project_image_fid=355852]

The project team said the planning of the homes has been informed by how the spaces function for both daily routines and larger gatherings.

"Our new homes owners at Veil have enjoyed the attention to detail in creating efficient layouts that use every space well. Hosting Christmas lunch and large family gatherings is an ease when care is taken to consider how people really live and entertain."

Private landscaped gardens extend the living spaces outdoors, while secure basement parking and bicycle parking are provided below. The homes have also been designed to achieve a 7-star energy rating, supported by double glazing, high-quality insulation, natural ventilation, LED lighting, water tanks and water-efficient fittings. Each residence is backed by a 10-year building guarantee.

Veil is being built by <a href="https://www.apartments.com.au/builders/jeniton">Jeniton</a>.&nbsp;Limited-time stamp duty savings are also currently available on selected purchases at Veil, adding another consideration as the project moves toward completion.

[smartcode_project_cta:default project_id=7877]

Joel Robinson

Veil Brighton nears completion in one of the suburb's most walkable pockets

<a href="https://www.apartments.com.au/developers/mosaic-property-group">Mosaic Property Group</a> has recorded 134 sales worth just over $400 million in two months of pre-release activity at The Riversdale, as the developer brings its $750 million South Brisbane riverfront project to the broader market.

The sales represent more than 60 per cent of the project's 213 apartments, with Mosaic reporting the majority of purchasers have been local owner-occupiers and downsizers.

<a href="https://www.apartments.com.au/new-apartments/the-riversdale-by-mosaic-south-brisbane-91-montague-road-south-brisbane-qld-4101">The Riversdale</a> will rise 39 storeys from its north-facing site at 91 Montague Road, delivering a mix of two, three and four-bedroom apartments alongside a collection of Mosaic's premium Masterpiece Series Sky Homes.

[smartcode_project:default project_id=151614 project_image_fid=371872]

The early buyer response comes ahead of the wider evolution of the northern end of Montague Road, where The Riversdale will be one of the first major residential projects delivered within an emerging riverfront precinct.

Directly adjoining the development is a planned 7.1-hectare mixed-use precinct, set to introduce new residences, parkland and public realm along the river's edge. The Riversdale's position directly on the Brisbane River gives it a relationship with the waterfront that Mosaic says cannot be replicated by future buildings within the precinct.

The site is also the result of a years-long pursuit by Mosaic. The developer first earmarked the <a href="https://www.apartments.com.au/developments/south-brisbane-qld-4101">South Brisbane</a> property in 2018, reflecting what Founder and Managing Director Brook Monahan has described as a deliberately patient approach to acquiring development sites.

[smartcode_project:default project_id=151614 project_image_fid=372083]

"We aren't opportunistic," Monahan previously told Apartments.com.au.

"Every site purchase is carefully considered. As seen with Kangaroo Point and South Brisbane, it can take years to eventuate. There are sites we're looking at now that we may not secure for several years."

Designed in collaboration with <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau Proberts</a>, The Riversdale has been shaped around the qualities of the riverfront site, with apartments oriented to capture northern light and uninterrupted Brisbane River views.

Generous floorplans and expansive balconies extend the living spaces towards the river, while natural materials and a restrained interior palette have been selected with longevity in mind.

[smartcode_project:default project_id=151614 project_image_fid=371890]

Residents will have access to a level of amenity more commonly associated with world-class hotels and private members' clubs, with almost 3,000 sqm dedicated to wellness, connection, recreation and everyday convenience.

At ground level is a business lounge, private meeting rooms and dedicated workspaces. Mid-tower is a wellness sanctuary featuring magnesium hot and cold plunge pools, sauna, steam room, infrared therapy facilities, a Pilates and yoga studio, and a commercial-grade gymnasium.

Crowning The Riversdale is a rooftop featuring a 35-metre swimming pool with lap lane and spa, outdoor dining and seating terraces, firepit lounges and views of the city, river and Mount Coot-tha.

A private members' club-inspired retreat offers private dining rooms, a whisky lounge, media rooms and immersive entertainment experiences. Completing the amenity offering are two hotel-style guest suites and a resident-exclusive electric vehicle fleet and car-share program.

[smartcode_project:default project_id=151614 project_image_fid=371877]

The Riversdale sits at the northern end of Montague Road between South Bank and West End, around 1.3 kilometres from the Brisbane CBD, providing access to the city's major cultural, dining and recreation precincts.

It becomes Mosaic's largest Brisbane project to date and adds to a pipeline already under construction across the city.

In Brisbane, the developer is currently delivering The Bedford and The Carter at Kangaroo Point, both of which are approaching sell-out, with a further four projects being delivered on the Gold Coast. Mosaic has completed more than $2 billion in projects since 2012 and has a further development pipeline exceeding $2 billion across South East Queensland.

Early works are underway at The Riversdale, which will be delivered by Mosaic's in-house construction division. Completion is anticipated in late 2029, with remaining apartments priced from $1.98 million.

[smartcode_project_cta:default project_id=151614]

Mosaic records more than $400m in two months at South Brisbane's The Riversdale

Lender, fund manager and apartment developer Princeton has completed <a href="https://www.apartments.com.au/buildings/marque-rockdale-602-608-princes-highway-rockdale-nsw-2216">Marque Rockdale</a>, the first new apartment development in South Sydney to provide its owners with a 10-year Latent Defects Insurance policy, the most comprehensive insurance available for a new apartment building.

The policy has been a key consideration for prospective purchasers of the 58 one-, two-, and three-bedroom apartments, strategically located between&nbsp;Rockdale Plaza and Rockdale Station.&nbsp;

Buyers have also been drawn to the fact that it is one of few new apartment developments delivered in the suburb in the last 10 years, and the only one located on Princes Highway to be set well back from the street to reduce noise. There's also a communal rooftop, a rarity in the suburb, complete barbecue facilities, landscaped seating areas, a children's play zone and herb gardens.

[smartcode_project:default project_id=136442 project_image_fid=374084]

Ray White Projects’ Matt Otway said buyer enquiry reflected the increasingly diverse and cosmopolitan population that has made Rockdale home.

“We’re seeing strong interest from a broad mix of buyers, including young professionals and people who have rented in Rockdale and the surrounding suburbs and now see Marque as an opportunity to buy a brand-new apartment in an area they already know,” Otway said.

“Proximity to the CBD and Sydney Airport is another key advantage particularly for buyers working in these locations who want the added convenience of living close by.”

Investors have also been attracted to the project, with rental yields of more than five per cent, which is considered a strong result for the Sydney market.

[smartcode_project:default project_id=136442 project_image_fid=374090]

Adding another layer to the buyer proposition is Marque's 10-year Latent Defects Insurance policy from Resilience Insurance, making it the only new apartment development in Rockdale to offer the cover.

The policy protects apartment owners against major structural and waterproofing defects for 10 years following completion, giving Marque purchasers cover until early 2036 at no additional cost.

The likelihood of defects emerging has also been mitigated through the Technical Inspection Service (TIS), which saw independent experts inspect the building at various stages throughout construction to identify potential issues during the build, rather than after the fact.

SDSS, which provided the TIS, consistently ranked the construction quality at Marque, undertaken by iCIRT-rated builder Coplex, among the best across its extensive portfolio of projects.

[smartcode_project:default project_id=136442 project_image_fid=374088]

Otway said the LDI had become a major drawcard for buyers, particularly given Rockdale has seen relatively little new apartment development over the past decade.

"Rockdale hasn't had a lot of new apartment buildings in the last decade, and has never had a project with 10-year defect insurance," Otway said.

"Marque presents a truly rare opportunity at an affordable price point, so well connected to the Sydney CBD."

One-bedroom apartments at Marque start from $735,000.

[smartcode_project_cta:default project_id=136442]

Marque Rockdale completes as South Sydney’s first apartments backed by 10-year defect insurance

Sydney developer <a href="https://www.apartments.com.au/developers/odus">ODUS Property Group</a> is continuing to expand its local Gold Coast development pipeline, filing plans for a new 40-storey tower in the Southport CBD.

Odus, which bought two luxury Main Beach projects, now La Mer and Le Reve, to make its move into the booming Gold Coast apartment market, has secured its third site. But it is tweaking the plans for a previously proposed 50-storey skyscraper, now seeking to deliver 40 storeys.

The project, dubbed <a href="https://www.apartments.com.au/new-apartments/80-marine-parade-74-80-marine-parade-southport-qld-4215">80 Marine Parade</a>, sits on a prime&nbsp;2,032 sqm amalgamated corner site at 74–80 Marine Parade and 4 Welch Street, across the road from the Gold Coast Aquatic Centre. It will have unobstructed, never-to-be-built-out views to the east given its position opposite the Broadbwater Parklands.&nbsp;

The plans are for 316 apartments, ground-floor retail, and resort-style resident amenities. The project sits within Precinct 1 (Central Business District) of the Southport Priority Development Area, where high-density residential and commercial development is actively encouraged.

BGD, ran by Bayden Goddard and the architecture firm behind Le Reve, has revised the original concept plans, substantially reworking the built form. Basement parking has been replaced by an expanded podium designed to improve functionality while reducing the tower's overall visual impact.&nbsp;&nbsp;

<img alt="First look: Odus Property Group plots landmark 40-storey tower for Southport's Broadwater gateway" data-entity-type="file" data-entity-uuid="0f13d065-2cf5-45ec-aa17-1a03754d93d8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Southport%20da%202.png?VersionId=.9QS2n7kBc_U3PyaI247uOyNSXIqnXSE" />

The tower rises above the eight-storey landscaped podium with a distinctive architectural language defined by sweeping arches, integrated greenery, bronze-toned glazing, and a sculptural rooftop crown.

The development will comprise 104 one-bedroom apartments, 208 two-bedroom apartments, and four four-bedroom penthouses across levels 9 to 36. Apartments are designed to accommodate both permanent residents and short-term accommodation within the same building.

A double-height lobby and reception will anchor the ground floor alongside a 23 sqm food and drink outlet, activating the Marine Parade frontage.

Parking will be accommodated within the podium, providing 288 vehicle spaces and 74 bicycle spaces, accessed from Welch Street.

<img alt="First look: Odus Property Group plots landmark 40-storey tower for Southport's Broadwater gateway" data-entity-type="file" data-entity-uuid="d7528b91-2c47-4094-98b3-5eecbacc0041" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Southport%20da%20podium.png?VersionId=efF5oWs4T9PDvxJwJEDHu5kSQ5eE3IBy" />

Residents will have access to an extensive suite of amenities spread across multiple levels. A podium recreation deck will include a swimming pool, spas, sauna, steam room, cinema, residents' lounge and children's games room, while a second wellness level near the top of the building will feature a gym, co-working spaces, reading room, dining areas and communal kitchen. Extensive podium landscaping wraps the building to soften the built form and strengthen its interface with the surrounding streetscape.

The planning report notes the project responds directly to Southport's ongoing urban transformation.

"Consistent with much of Southport, the surrounding area is undergoing significant transition, with many older low-rise developments progressively being redeveloped for higher-intensity urban outcomes, as envisaged within Precinct 1."

It also states that the proposal "will contribute to a defined and legible eastern gateway to the Southport CBD, reinforcing the area's high-density urban character while maintaining a strong visual connection to the adjoining public open space network."

<img alt="First look: Odus Property Group plots landmark 40-storey tower for Southport's Broadwater gateway" data-entity-type="file" data-entity-uuid="0b9fdebd-4b35-400b-a287-6bd1cdbcdb1b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Southport%20da.png?VersionId=4LG35XR5mfir7jvG2TShtQx.utMLYBxu" />

Located opposite the Broadwater Parklands, the site enjoys immediate access to the Gold Coast Aquatic Centre, Australia Fair Shopping Centre, TAFE Queensland Southport campus, the G:link light rail corridor and Southport's established commercial precinct. The location places future residents within one of the Gold Coast's fastest-evolving mixed-use centres, where numerous high-rise residential projects are reshaping the CBD skyline.

Odus is headed by development professionals Byron Sakha, Jarrod Younan and Sebastian Younan. The Younans also head family-owned builder Nazero Constructions, established in the 1960s.

They are currently delivering La Mer, 24 luxury apartments on Main Beach Parade, and Le&nbsp;Rêve, on the same street but on the prized beachfront side of the sought-after strip.

ODUS plans landmark 40-storey tower for Southport's Broadwater gateway

A boutique collection of just 10 residences could become the catalyst for the next phase of renewal along the southern end of Surfers Paradise Boulevard, with new plans laid for a mixed-use tower designed to transform a long-vacant site.

The proposal for <a href="https://www.apartments.com.au/new-apartments/3098-surfers-paradise-boulevard-surfers-paradise-qld-4217">3098 Surfers Paradise Boulevard</a> has been conceived as more than a standalone residential project. Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, the development aims to spark the revitalisation of what the design team describes as the "South Boulevard" precinct, creating an active streetscape with retail uses at ground level beneath a collection of full-floor luxury residences.

The application, by PR Property Holdings, an entity directed by the Brisbane-based Ryan and Petrovic families, seeks approval for a 17-storey, 62.2-metre mixed-use development on a compact 427 sqm site between Surfers Paradise Boulevard and Appel Street.

The project will comprise just 10 apartments, including eight full-floor residences and two duplex apartments, positioned above a two-level retail podium. Three podium parking levels will accommodate 26 vehicle spaces, while a recreation deck is proposed on Level 4.

<img alt="First look: PR Property Holdings plans boutique apartment tower to kickstart Surfers Paradise's 'South Boulevard' revival" data-entity-type="file" data-entity-uuid="46cfa37d-5051-4449-8d8e-6724f8ca0d59" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_8.png?VersionId=e7UkeV1eTZAC2lXhdq72E3jpUbwiFD2t" />

Rather than pursuing apartment volume, the proposal focuses on large-format homes with a slender tower form intended to maximise outlooks while limiting visual bulk.

BDA Architecture said the proposal has been designed to become an urban renewal catalyst for the precinct.

"The ambition of 3098 Surfer's Paradise is that it provides the catalyst for incremental infill redevelopment and upgrade of what is coined the 'South Boulevarde' of Surfers Paradise which connects to the beating heart of Cavill Avenue."

The architects added: "An incremental approach to development that provides quality ground plane interface, human scale design, integrated subtropical landscape and semipublic permeable frontage can over time entirely upgrade a precinct."

The architecture adopts soft curves, articulated balconies and a slender tower profile rising from a human-scaled podium. The design report describes the project as delivering "bespoke residences of enduring distinction, sculpted with precision and quiet sophistication," with a focus on timeless coastal architecture.

The application also includes retail tenancies addressing Surfers Paradise Boulevard, reinforcing the site's role as an active mixed-use destination rather than a purely residential address. The planning report states the combination of the podium, landscaping and active frontage is intended to strengthen the pedestrian experience while contributing to the evolving character of the boulevard.

The site occupies a prominent position in the southern section of Surfers Paradise, directly opposite the G:link light rail corridor and within walking distance of Surfers Paradise Beach, Cavill Avenue, the Nerang River and Bruce Bishop Car Park. It is currently vacant, having previously accommodated a single-storey commercial building that was demolished in 2022. The planning report notes the surrounding area is characterised by a mix of commercial buildings and residential towers, with unlimited building height provisions applying under the Centre Zone.

The proposal also replaces an earlier 2022 approval for a restaurant and bar on the site, instead introducing a permanent mixed-use development that combines retail activation with boutique residential living.

Boutique apartment tower to "kickstart" Surfers Paradise's 'South Boulevard' revival

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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When purchasing a property through a self managed super fund, the timing is absolutely crucial due to the impact it may have on your personal borrowing capacity, warns Smartline Personal Mortgage Advisers.
Due to the personal guarantee required by most lenders when buying a property in super, the SMSF strategy may best be suited to those in their 50s and older, Smartline's executive director, Joe Sirianni, said.
“For those keen to tap into the growing equity in their existing properties to purchase more properties in the future, this can be a real impediment to fast-tracking wealth creation,” Sirianni said.
“Many people don’t realise that providing a personal guarantee is reducing their borrowing ability by that amount,” he said, referring to investors' personal borrowing capacity.
“While you might not have actually incurred that debt, in the eyes of the lender, it has to be allowed for in any assessment of borrowing ability.”
With lenders more comfortable in recent years to lend to SMSFs, it's still a vastly different situation to those buying a property within another structure, he said.
Take the example of a couple who borrow $400,000 in their super fund to buy an investment property, with the associated personal guarantee. The SMSF receives the rent from the investment property, yet the guarantor is liable for the debt outside the SMSF. 
Twelve months later they want to upsize the family home and look to borrow another $300,000 to do so. The $400,000 loan and associated guarantee means they are not able to borrow the additional funds for the family home.
While an SMSF property strategy can be successful, he warns that investors need to be looking at the whole picture. 
“There are some real benefits to buying property in your super fund versus personally – when you retire. You just don’t want a SMSF loan to restrict you before you do retire," he said.
This may mean that for those in the younger age brackets, it may be best to consider investing outside of your super.
“However, once you move to an age of about, 50 or 55, where you don’t want to borrow any more money because you own your house and you’ve got a couple of investment properties, that’s then probably a better time to buy through your super fund."
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jduke-EHk3XBmHkn

Property in SMSF may be an impediment

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We've recently seen buyer's agents come out against the National Rental Affordability Scheme.
Firstly, wHeregroup's buyer’s agent, director and location researcher, Todd Hunter, said he would "<a target="_blank" href="https://www.propertyobserver.com.au/news/id-rather-stick-a-fork-in-my-eye-than-buy-nras-todd-hunter/2013090464795">rather stick a fork in (his) eye rather than buy an NRAS property</a>."
Following this article, Propertyology's managing director, and Australia's Buyer's Agent of the Year in 2012 and 2013, Simon Pressley,  told Property Observer that he believes that <a target="_blank" href="https://www.propertyobserver.com.au/residential/another-expert-comes-out-against-nras/2013091064942">NRAS properties are "terrible investments"</a>.
After Property Observer published these two articles we put a call out to property professionals, and readers, to have their say about the other side of this investment.
The responses we received were varied and outspoken, including this opinion piece in <a target="_blank" href="https://www.propertyobserver.com.au/trends/my-response-to-nras-naysayers-adrian-jenkins/2013091264998?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">repsonse to NRAS nay-sayers</a> by Adrian Jenkins, who is director of a private company, NRAS Australia,  that specialises in listing and providing information about NRAS properties.
Here are some of the highlights of our responses:
<a target="_blank" href="https://www.propertynetwork.com.au/">Property network</a>'s Stephen Lazar:
NRAS can make for an excellent investment opportunity for property investors if, and only if, the property stacks up on its own merits and you would invest in that property if it did not have NRAS. Then with NRAS as an added benefit you should grab it if your due diligence meets your investment strategy.
Think about it this way, with the income tax one would save (eg. around $7,000 through negative gearing + $10,350 tax credit per annum) within just over 2.5 years you would have ‘gotten back’ your original 10% deposit, the property remains cash flow positive and part of your financial planning is 10% paid for by someone else.
Your readers should be aware that your previous two articles were over generalised, included emotion and also contained some inaccuracies and should not let misinformation cloud their due diligence when looking for an investment property that meets their investment objectives.
NRAS because we are at the tail end of the current 40,000 licences issued is in high demand  but not all NRAS properties make for good investment opportunities, review the fundamentals that underpin the property and make an informed decision without the emotion.
<a target="_blank" href="https://www.meridiengroup.com.au/">Meridien Group</a>'s David Brown:
Consistently, NRAS can be shown to deliver a superior cash-flow outcome to a non-NRAS property. The extra cash-flow can then be directed towards either reduction of private debt or towards secondary investments.
It is the net bottom line – after costs, after discounts, after rebates and tax credits etc. that needs to be evaluated. I agree that the management costs are excessive but do not agree about exit strategies for the investor or the net bottom line benefit.
If an investor has an NRAS property they have a formula for annual rental reviews and the NRAS rebate also has annual indexation. Most property managers and landlords hold back on rent increases as they don’t like to rock the boat with a good tenant and therefore short-change themselves on their potential returns. The annual review program in NRAS is good and there are market reviews in years one, four and seven which makes sure that the market rental is in step with prevailing yields. This is a lot better than the amateur way things are done in general.
In our analysis of NRAS v non-NRAS the net cash-flow advantage is $135 per week in favour of NRAS. Given the point I made above about increasing rents, the net advantages for NRAS v non-NRAS are even greater and we estimate that there is a gap of $60,000 to $80,000 in cash for the investor to re-invest for a secondary benefit.
The selling prices of NRAS properties are generally consistent with other properties. We all know how vigilant the valuers have been lately so if the properties are over-priced, then it all falls down like a pack of cards when the valuers come into the game. We all know that the main channel for NRAS sales is via investment property agents and marketers that have fees above standard real estate commissions – but so what? If the deal stacks up then what does it matter?
There are extra costs to developers for NRAS property and these are on the increase. Submission/application fees are paid up-front to some consortiums and if the application does not get approval then that is just burnt money. There are also fees paid to the consortiums for each registration. On top of this, the lead times for approvals and the holding costs associated with that are not inconsiderable either.
Another major benefit is that the state and commonwealth governments essentially underwrite a considerable part of the investment via the negative gearing benefits and the NRAS rebates – both of which are tax free. Over 10 years, the aggregate of these payments can be around $200,000 which is about 50% of the typical contract price for an NRAS property.
From my perspective, NRAS provides higher returns for lower risk and that is why we like it for our clients. And, our clients like it and are coming back for more.
<a target="_blank" href="https://www.regardingmarketing.com.au/">Regarding Marketing</a>'s Trudi McConnell:
Like all investment there is the good, the bad and the ugly.  I have been fortunate enough to have had several viewpoints of NRAS having held a number of consulting positions across the scheme – buyer, seller, developers and consortium consultant.  There are a number of entities out there doing all sorts of unscrupulous things, but there are number of them that are not.  Just to correct the statements in the recent article;
1.	The tax free incentive is $10,350 currently and indexed to CPI.
2.	Apples with apples, the fees are charged at the achieved rent, including the reporting and tax certificates, and the property managers do not or should not charge a letting fee.  Comparatively these would see a real comparison to mainstream property management fees.
3.	It is not the federal government's core industry to run rent roles – not for profit consortiums have been tasked with this service and they do a damn good job for both tenant and investor at the extent that a number of purchasers who bought into the scheme at the outset are now in a position to purchase more NRAS properties and are doing so over and over again.
4.	Banks are lending to 90% now and are extremely supportive of the scheme. It was not the scheme that the lenders had issue with, it was the head lease arrangement which has now been replaced with a management agreements across the board.
5.	There is no price discrimination for a NRAS vs non NRAS.	There is no evidence of resales as buyers / investors do not buy them to sell them.  They buy them for the tax right offs over 10 years.
7.	Like any property investment, the buyer needs to feel comfortable about capital growth in the area, the property configuration, location, rental demand etc. if everything else stacks up, then NRAS is a bonus.
8.	Not all NRAS property developers pay those copious commissions.  At the end of the day, (at least in Queensland), the commissions need to be disclosed.  Valuer practise is to wipe commissions off the final valuation. If these are too high, the property will never settle.
I urge all buyers to do due diligence, check the developer, check the seller, check the property and check the consortium.  NRAS is a fantastic investment if it’s done right.
<a target="_blank" href="https://www.moretonbayhousing.com.au/">Moreton Bay Region Housing Company</a>'s Sean McCreanor:
I am an NRAS investor and have been investing in property for 20 years.  One of our companies, Moreton Bay Region Housing Company Ltd manages a large number of NRAS properties for our investor clients.  We have been involved with the NRAS scheme since its inception and have a very detailed knowledge of the scheme and different NRAS models.
The NRAS scheme currently offers investors $10,350 per annum indexed to the rent component of CPI over 10 years.  The $10,350 is paid via a 75% tax credit from the ATO ($7,762.50) and 25% is paid by the state government ($2,587.50).  In Queensland, the state government component is paid in cash.
The $10,350 is tax free indexed over 10 years to rent component of CPI - resulting in more than $110,000 tax free over a 10 year period.  In return for this tax benefit the investor needs to rent their property at 80% or less of the market rent.
The NRAS tenants can earn between $45,956 per annum for a single person up to$109,264 per annum for a couple with three children.  The scheme is targeted at low to moderate income households.
The management fees we charge investors vary between NRAS models.  Some of the models mandate a particular fee structure.  The lowest NRAS fee we charge is 8% of the discounted NRAS rent - which is the equivalent of 6.4% of the market rent.  The highest fees charged by some models are 13% but these generally cover all costs - let fees, postage &amp; petties, relet fees, break lease fees, bank fees, etc.
When investors are looking at NRAS properties they need to consider the usual property investment criteria plus a number of other important factors:
1. How does the price compare with other local properties of the same type?
2. Would I buy the property without NRAS?
3. What is the sales commission and marketing fee?
4. What is the NRAS management model and how flexible is it?
5. What are the ongoing NRAS fees and charges?
6. How many NRAS properties are in the project/in the area?
With a good property, in a quality location and low management fees, the NRAS incentive increases the after tax yield significantly.
As with all property purchases, investors need to be careful and ensure all the facts are known before they proceed with the investment decision.  There are spruikers in the market pushing a range of property investments - coal seam gas, mining towns, off-the-plan apartments, NRAS, etc.  Investors should be seeking full disclosure and sellers providing full disclosure on all property investments.
Accountant, investor and Property Observer reader Kevin Gatto:
 I have read a few articles regarding negatives on NRAS. I have purchased two NRAS properties and I am for it. I am an accountant and I have researched this , looked at it upside down, sideways , etc to make sure there are no loopholes that I have missed. I purchased one in Marrickville, the complex being built near the station on the old RSL site. Cost: $420,000  (one-bedroom apartment). I believe it was a fair price because the real estate agent selling via the pricelists to the public was selling for the same price.
The numbers are as follows: Market rent say $450. NRAS discount at 20% is $90. Therefore tenant able to rent at $360 per week. Benefit - no shortage of tenants, nil vacancy factor, who wouldn't want to rent something at 20% less that market rental? The $90 loss per week is tax deductible, so in my pocket I lose $59 per week or $3,068 per year
I receive a tax free credit of $10,350 per year. Benefit - so I am in front by $7,282 per year. NRAS compliance costs e.g. annual certificate is approx 7% of the incentive so $724.50, again tax deductible so loss to me of $474.54. I choose what tenant rents it, just like any other rental property investment. 
My agents commissions cost is 8-10% of the rental, little bit more than standard rental property. Benefit - the incentive is indexed by rental CPI each year. Therefore this financial year it is tax free $10,350, if the CPI is 4%, you will receive $11,642 after three years, or $12,592 after five years etc. This is adjusted three times during the 10 years when a valuation is done on the rental. The NRAS scheme is optional meaning you can opt out during the scheme with notice if you want to. I ask myself, with the above figures, why would you want to.
What this all means is, the typical rental property loses between $60 to $120 per week, so an NRAS one makes the same property $30 to $90 per week positive
As with any asset purchase, taxation considerations should not be the main driver in the purchasing decision.With property purchases, location, price , growth etc should be the reasons and NRAS adds a bit more cream to the cashflow.
With NRAS, I have two properties , one in Marrickville NSW, the second on Mackay Queensland, and they will bring in to me close to $300 per week positive cash flow, after negative gearing tax benefits , and the tax free incentives received. I can buy and forget, I don't need to put money into it, it is self funding, therefore it gives me time on my side for capital growth to kick in.
Hopefully the above has convinced you that it is not a bad scheme.  What is also interesting is that the same properties for rent can be listed at two different rentals with the non-NRAS one listed at a higher rent and would be subject to competition by the nras rent due to the 20% discount.e.g Marrickville would be listed at $450 per week, while the NRAS one would be listed at $360 per week. Which one would you prefer to rent?
Reader email (owns NRAS properties):
- I agree that maybe the capital gains over time will be questionable on some properties, but a fair reasonably priced property in a fairly well placed location eventually wins. So do your research.
-	I intend to hold onto this for longer than 10 years. At which point, it will no longer be an NRAS property, therefore negating any need for legals to sell up.
- Yes, the costs incurred through NRAS add up, but your return is still higher that the outlay. I am watching it work for me as we speak.
I did meet with a buyer's agent recently and his opinion was exactly the same as this article. It was also obvious that he could not make any money from an NRAS transaction. I also met up with a financial planner and they steered me away from property in favour of shares. The banks financial planner makes no money in commissions if you buy property. The one thing they both have in common if you ask me is that they will both give advice that will favour their wallet.
Buyer's agent Sebastian James (responding via a Somersoft call out):
As a buyer's agent myself I certainly don't disregard NRAS, I just feel it is more suited to those with a debt reduction strategy and belief that the market as a whole will be subdued over the next decade or so due to limited credit growth, as the guaranteed returns therefore become an attractive option.
Whilst this is not an argument I subscribe to, I understand the logic behind the thought process.
Lastly I think its important to note that not all NRAS properties are a like, and unfortunately for every one good NRAS company which pre vets the opportunity on its own merits and conducts upfront vals, there are countless others who don't, and simply seek to generate the biggest profit margin, regardless of the inferior quality product they are offering.
Ultimately this majority creates a generally negative viewpoint on the subject as a whole, at least that is my perception of the matter.
 
<hr>
Next week we'll put some experts head-to-head for a comprehensive debate on the matter, and we'll share even more of the opinions flooding into our inboxes.  
If you'd like to weigh in further on the debate, either for or against, email <a target="_blank" href="mailto:%20jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a> 
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Readers respond in defence of NRAS

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There are good and not-so-good operators, developers and agents in the market. Do not let the not-so-good people distort or discolour NRAS as the investment vehicle through their own lack of fact and knowledge.
Both NRAS and non-NRAS agents who do not know what they are talking about, often misrepresenting facts and figures through lack of their own knowledge.
It has two constituent parts. The property and the rental agreement.
The property
Properties built and sold with an NRAS rental agreement, are identical to the same design neighbouring non-NRAS property built by the same developer.
NRAS properties cannot be conveniently ‘pigeonholed’ by the un-informed to be poor capital growth areas or properties.  How can major cities and State capitals be blanket covered as “poor growth areas”.
As a rule the NRAS allocations are placed in areas with population growth and upward rental pressure. Surely, some of the essential cornerstones of all research into good investment property.
The Rental Agreement
The NRAS consortiums providing the rental agreements have different models to consider.
Topline - NRAS is a very flexible rental agreement that sits over the property that you purchase as an investment. The property can be re-sold, with all benefits of NRAS passing on to the new owners. NRAS can also be dropped.
Its simple limitations are that there is an upper limit of income that precludes higher income earners from benefitting from discounted rents. It has a positive social impact. Primarily but not limited to being for tenancy by undervalued essential key workers in our community (nurses, teachers, etc).
NRAS v non-NRAS
Non-NRAS investment properties have two revenue streams.  Cash-flow is made up of a tax rebate based around investors’ marginal rate of tax (negative gearing), and rental income.
NRAS investment properties enjoy three revenue streams. More revenue streams, has to make investments, more robust and secure.  NRAS investment properties cash-flow is comprises all the benefits of negative gearing, rental income, plus the third stream of NRAS contributions being $10,350 (2013-2014).
The facts
Contracts: Any NRAS rental contract will be dealt with by a solicitor – it’s not for you to worry about. And it’s not complicated.
The finance: Most lenders lend against property with NRAS rental agreements.  Why wouldn’t they? It’s no different property build, cost and value to the same property without NRAS rental agreement.  Some NRAS models are better favored by lenders than others.
The returns: NRAS operates based around discount to market rents, not guaranteed rents.
If the rent discount amount is less than $199 per week, then you are ahead.  Most rental discounts amounts are less than $100 per week, meaning with $199 per week from NRAS tax free, investors are going to be better off by at least $99 per week or $5,148 per annum tax free.
Guaranteed rents are sometimes used to ‘prop up’ non-NRAS investments, which mean the investor will have paid for it somewhere.
Lastly, people have often been totally misinformed and say NRAS is designed for the developers to get concessions and financial benefits for delivering NRAS. The fact is that’s simply not true.
Developers are not getting any financial benefit from NRAS. In fact if anything, having to hold the land whilst making the application submissions and having to waiting to see if the proposal satisfies the NRAS stringent guidelines and the local social requirements, can only bee seen as an additional cost-risk, not a financial benefit.
NRAS simply makes the property investment far more attractive and therefore easier to sell.
Prevention is the cure
The cost of acting before being fully informed can be disastrous.
To make smart investments, understanding what you are doing is critical.  The cost of finding out facts is nothing but investing your time.
 
<hr>
 Adrian Jenkins is director of <a href="https://www.nrasaustralia.com.au/" target="_blank">NRAS Australia</a>.
NRAS Australia is a private company that specialises in listing and providing information about NRAS properties and walks investors through the purchasing process. 
 
 
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My response to NRAS naysayers: Adrian Jenkins

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This week Property Bloom finished a fabulous little renovation.  It was an ugly house where we removed a few internal walls, opened the living spaces and created another bedroom.  We added a nice timber deck entrance and we’ve worked hard to keep costs down using a kitchen from Bunnings (that looks gorgeous), recycling the original bath and laundry tub, tiling around the terrible 70s fireplace, paving an unappealing outdoor space to make it more usable and polishing the beautiful floorboards we discovered under the old carpet.
This renovation was all about pushing the yield of the property although we’ve defiantly added a bit of value along the way.  You see this property was purchased specifically because of its attributes for adding another dwelling; not for the existing house’s appeal.   The house is on a nice flat corner block with plenty of room to add a garden villa.
The property cost just $209,000, we spent about $30,000 on the renovation and it will now rent for $295 per week, but the real value will be in the second dwelling we add. For a cost of about $105,000 we will build a two bedroom villa and it should rent for around $280 per week. So the combined rent will be $575 per week and the cost of the property, renovation and building new dwelling is around $350,000. This gives a gross yield of 8.5%.
At the same time, we’ve been running some numbers on a much larger renovation project.
We have a client who asked us to manage a ‘renovate and sell’ project.  Normally, we’d be looking to add value through renovating and adding more new dwellings and subdivision. In this case, the brief was to find a good house that we can simply add value through renovation. Our client wants to sell immediately to make a gain.
My initial thoughts were that this strategy is risky.  Risky because we’ll only be adding value to an existing property. It can only work if the property cycle is in the right stage.
After some reflecting and discussion with my team, we needed to determine if we were in deed at that ‘right’ stage or not.  Our client also needed to do his own due diligence on this.
The reason Property Bloom does not normally manage pure house renovations is because in my opinion, this development strategy relies on the market moving upwards. It also needs some very keen negotiations to buy as low as possible, so you can’t be buying in a ‘hot’ market. The trick is to pick the market so that you can buy well, renovate and ride the upswing as you sell.
Also, some very well planned renovations are required. The latter we can manage, but the direction a property market is moving in, especially in the early stages, really comes down to an educated punt.
Now that the long awaited election is out of the way, the government is fresh, I have a feeling 2014 is going to be a great year for property investors. I feel we’ll see some strong demand to buy because interest rates are low, sentiment is high and there is pent up savings that we’ve made during the GFC that might be burning a hole in our pocket.  Property yields have been performing well and really, why wouldn’t you invest in property right now?
For this large renovation, we’ve found a wonderful federation style house with beautiful features. The location is second to none in this large regional town. We’ve identified that a second bathroom can be added, a new kitchen with some great features such as stone benches, decent brand appliances and ceiling high cupboards (as we are working in the upper end of the market on this one) will be required and a fabulous facelift to the property. Special preparation and painting with some very well thought out designer paint colours inside and out, not just a quick coat of paint, is needed. It’s said that higher priced properties generally combine three or more colours on the exterior. This will give us the ‘wow factor’ from the street.
This renovation strategy is all about attracting an owner occupier buyer hopefully with high emotions. For this renovation and sell development strategy to work, I think it will come down to a combination of buying well, in the best location possible, savvy renovations and an emotional buyer to make our client some good profit. Stay tuned and we’ll let you know how it pans out.


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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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Is it the right time of the cycle to renovate and profit? Jo Chivers

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The election is finally out of the way and the government has a big agenda ahead of it. Right out of the gates it has announced a tax review, a financial services review, a competition review, and a review of government spending.
Importantly, the government has said that it will consult with and wants to hear from the people of Australia. This is a smart move - the expectation of a Coalition victory last week was cause in itself for improvements in confidence, and when confidence is lifted, so is spending and other factors that bolster economic activity.
So this new government brings the promise of change, but how, when, and where will they start?  I wonder which changes the general public would put through. I’m talking about the plumber in Parramatta working 12 hours a day six days a week, or the retired couple in Frankston who has seen their superannuation wither away. What would these people urge on the new government if they had the access and influence? What would you say to our new Treasurer, Joe Hockey, if you could spend the next month as his adviser?
Firstly, I wouldn’t assume Joe wouldn’t listen: he grew up in a family of small business owners and understands the plights of the average Australian well. This understanding is already evident in the Coalition’s commitment to reducing company tax rate by 1.5% and cutting regulatory burden on business.
So where would you start if you had the opportunity to speak up about the issues that matter to you?
I did a quick survey on Twitter and found that taxes were indeed at the forefront of most people’s minds. Simply put, most people think there’s too many of them and that they’re too high.
But which ones would you reduce, which would you scrap and which part of the system would you reform?
Most people understand that the political stability and regulatory structure we operate doesn’t come free. That means the tax system has to raise requisite amounts of cash before it concerns itself with fairness or efficiency. It’s a balancing act.
It’s the same with red tape. We all want an easier way of operating our businesses and creating the best possible opportunities for our families, but what red tape do we advise Joe Hockey to cut? What regulation actually makes sense and where are we tied up in unnecessary bureaucracy? When you start cutting the red tape, where do you stop?
Competition is another agenda item that affects us all. Market dominance by large conglomerates can hurt smaller businesses, which generally means that prices rise and choice reduces. This affects both business owners and consumers in industries from banking to manufacturing to supermarkets. So how we can bolster competition to create a more even playing field?
As we move past all negativity and criticism that comes with campaigning and into the command of a new government with fresh policies, now is a good time to speak up.  I worked with the Treasurer when he was Minister for Financial Services and I can tell you that this guy is not only smart and experienced, he listens.
This is probably the time to speak up. I’d love to hear your ideas.

<hr>
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
You can contact Mark on <a target="_blank" href="https://twitter.com/markbouris">Twitter</a>.
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Confidence in new government a great start: Mark Bouris

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A few years back I was approached by an agent to buy a vacant lot which he thought might have been ripe for one into two lot subdivision. It had an extra wide frontage and, as he enthusiastically pointed out, it even had two street numbers, which immediately pricked my interest. In fact, on inspection I noticed that all the neighbouring properties were of similar size and I immediately wondered why they had not already been subdivided.
The answer soon became clear. They were not sewered. To subdivide one would need to provide sewer, the closest connection point of which was several hundred metres away and therefore not feasible for just two lots. The land on offer had a large <city>Greenfield</city> site to the rear which I had heard rumours about being developed into a large housing estate.
I visited the local council just to verify my thoughts and whilst there enquired as to what exactly was happening with the <city>Greenfield</city> site. To my surprise I learned that the subdivision had just recently been approved and that one of the conditions of approval was that they provide a sewer connection to the adjacent unsewered lots including the one I had been offered. This was a game changer!
In addition to putting a contract on the lot in question I also approached all the owners of the other unsewered lots that had suitably positioned homes to enable subdivision and managed to buy another two including the one next door to the first lot.
Now this is where it gets even more interesting. On checking the densities set down in the town plan I noticed that each lot had a plot ratio of 2.2 lots, meaning that together the two adjacent lots had a combined allowance of 4.4 lots.
The Queensland state government through it’s Department of Local Government has ultimate say over planning matters and actively encourages local councils where possible to allow development which uses existing infrastructure more efficiently. I wondered if this would enable me to turn our two lots into five?
There was another advantage in going for five lots because the second property acquired had a highset timber house on it which would likely need to be moved sideways or removed if four new evenly spaced lots were created whereas it fitted in just nicely in a five lot scheme.
Along with some joint venture partners we chanced our arm and succeeded in getting four new vacant lots and one other with the existing home remaining which was renovated to be sympathetic with the four new homes that we built there.
This turned out to be quite a profitable project. Two of the four joint venture partners including myself elected to sell straight away and those two homes were sold immediately at asking price. Tax liability could be dispersed because we were structured suitably. The other two partners each kept a new home for letting and to hold for the mandatory 12 months period until they at least qualified for the 50% capital gains tax rebate.
Sadly the market conditions deteriorated somewhat as has their likely selling price. Fortunately for them though they are still in a very profitable position due to the manner in which they acquired the properties in the first place. Had they bought the homes at ‘market price’ at the time they would still be playing catch up.
 
<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"></a> is a director of <a href="https://www.embarkpropertyinvestment.com.au" target="_blank">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.
 
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Diary of a property investor: Adrian Stagg

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The Australian Bureau of Statistics (ABS) housing finance data released earlier this week provided further indication of an ongoing improvement in overall housing market conditions across Australia.
The data to July 2013 showed an ongoing improvement in demand for housing finance throughout the country. Given the recent rise in home values and a lift in sales transactions off the back of low mortgage rates, I am anticipating that the increase in finance commitments will continue over the coming months as the housing market enters one of its busiest periods.
Click to enlarge
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Housing finance data over the month showed a continued improvement in demand for mortgages with owner occupier finance commitments increasing by 2.4%. Finance commitments for loans that weren’t refinanced increased by 2.7% over the month and refinance commitments rose by 1.7%. There were 35,356 commitments for non-refinanced loans in July 2013 which was the highest monthly figure since November 2009. There were 16,848 refinance commitments over the month which was the highest number of refinances since April 2008.
The high volume of new loans to owner occupiers indicates growing demand for home loans across this sector of the market and the high volume of refinances would tend to suggest that many home owners are now shopping around for a better loan deal as the market becomes more competitive.
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When refinance commitments are removed and we look at the type of owner occupier finance commitment, the surge in demand is really being fuelled by an increase in demand for existing dwellings.
In July, there were 5,265 commitments for the construction of new dwellings, 3,131 commitments for the purchase of new dwellings and 26,961 commitments for existing dwellings. Over the month, more than three of every four owner occupier finance commitments were for the purchase of existing dwellings. Year-on-year, commitments for the construction of new dwellings has increased by 1.1%, commitments for the purchase of new dwellings is up 52.1% and commitments for the purchase of existing buildings has risen by 17.4%.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/09/12/kusher-sept-12-three-big.jpg" title="Click to enlarge"><img src="/images/stories/2013/09/12/kusher-sept-12-three-small.jpg"></a>
Investment purchases are also an important component of the overall market, unfortunately the ABS only publishes investment loan data based on value, nevertheless it still shows clear trends. Based on raw figures, there was $9.3 billion in housing finance commitments for investment purposes in July 2013. The total value was slightly down on its recent peak; however, the value of commitments was 30.6% higher than at the same time last year. The result indicates a high level of activity from investors in the housing market currently.
Value-based data for all sectors of the market revels that some very clear trends emerging. On a rolling three month average basis, there has been a clear trend of improvement across the four sectors analysed (first-home buyers, upgrade buyers, refinances and investment buyers). Based on the rolling three month average figures, investment buyers are currently accounting for 37.5% of purchasers, upgraders are accounting for 35.9% of the market, refinances are 17.8% of the market and first-home buyers are just 8.8% of the market. Based on the proportion of overall market activity, first-home buyers are sitting at around their lowest proportion of market activity since June 2004 while investors are at their highest proportion since June 2004.
<a rel="shadowbox" href="/images/stories/2013/09/12/kusher-sept-12-four-big.jpg" title="Click to enlarge"><img src="/images/stories/2013/09/12/kusher-sept-12-four-small.jpg"></a>
The housing market is now largely driven by investors and upgraders.
The low mortgage rates are proving an attractive lure for those looking to upgrade into a slightly superior home. From an investor’s perspective, returns are low across most asset classes however, when you factor in gross rental returns and capital growth homes are returning fairly attractive yields of around 10% currently.
The surprising development has been the lack of response to low mortgage rates by first-time buyers. This may be due to the fact that in a number of states first-home buyers can now only receive a grant on brand new homes, these homes often tend to be more expensive than pre-existing homes. Also, a lot of first home buyer demand was probably pulled forward into 2009 when mortgage rates were at a similar level and first home buyers could buy pre-existing homes with an additional $7,000 in addition to the first-home owners grant.

<hr>
Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
 
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Ongoing improvement within the Australian housing market: Cameron Kusher

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A surging Australian dollar to near three-month highs overnight will help to bring a big dose of realism to all this talk of expectations and confidence driving a weak Australian economy higher. As US economist Paul Krugman said, the "fairies of confidence" and the "imps of expectations" are nothing but ephemera in the greater scheme of things, there to wave their wands when all else fails. We saw this yesterday when the sharp rise in business confidence in the National Australia Bank's August business survey, but little or no impact on weak trading conditions.

Today it was a big rise, to a three-year high, in the Westpac/Melbourne Institute Consumer Sentiment survey for September, the highest level since late 2010 (when which government was in power? Why the Gillard government).

All agree the economy is waiting for the confidence fairy to emerge and convince consumers to spend, business to invest and jobs to be created. Just a sprinkle of confidence dust and the economy will be surging. If you were in the UK in 1992 after John Major unexpectedly won, you would have seen Rupert's papers pushing this line -- "Cash Happy Shoppers Celebrate Tory Win" was one Sun headline. Before, of course, Black Wednesday arrived in September that year. Before the bad times.

Much of this "confidence" stuff is economic gobbledygook -- like Tony Abbott's line that Australia is now "open for business". Improving expectations and confidence among business and consumers is imprecise and hard to formalise, and has minimal correlation with real-world outcomes.

And since the poll there has been a surge in the value of the Australian dollar -- not because of the Coalition win, but because of more evidence that the Chinese economy has stopped weakening and is now probably just starting to grow again. It underlines what Abbott, new treasurer Joe Hockey and Andrew Robb (temporary finance minister until Arthur Sinodinos has his Senate spot confirmed) ignored for the past two years: the fact that offshore investors view Australia and the dollar as proxies for the Chinese economy.

Australia is now the most exposed of all major economies to the health of the Chinese economy and, with the fifth most traded currency in the world, it's been easy for investors offshore to bet against China (go short) or go long and believe the China story. There's been a battle between the shorts and the longs, and from May onwards the shorts won. The combination of both, plus the August interest rate cut from the Reserve Bank, saw the Aussie dollar hit a low of 88.48 US.

But with Chinese economic data for July and economic better than expected, there is now a growing belief that China is recovering. Demand for the dollar is up and the currency is over 93 US cents, the highest since late June. Should China continue to recover, the Aussie dollar will rise, even if the Fed reveals next week a timetable to end its $US85 billion a month in spending.

If that happens, Abbott and Hockey will only be able to sit and watch with the same sense of frustration as Julia Gillard and Wayne Swan as a strengthening Aussie dollar starts to put a stranglehold on the economy and the budget's revenue base. Helping this is the virtuous circle of good economic management by successive governments and the RBA; we have low inflation, reasonable growth, rising labour productivity and low interest rates that have resulted from the high dollar/ high credit rating and good economic management by the federal government, and especially the Reserve Bank.

"This could very well emerge as a flash point between the new government and the regulators. House-price booms always end in tears in Australia."

This is a positive feedback loop. Like the Gillard government, Abbott will be an unwilling bystander to the fallout from years of solid, successful management of the economy and creative policy measures during the GFC.

One thing that is more within the control of policymakers is housing. The picture on housing construction has been mixed -- it looked like the sector was recovering from its post-GFC lull this calendar year, until growth tapered off. But Australian Bureau of Statistics data released on Monday showed a 2.4% rise in loan approvals (for both existing and new housing) to 52,204 in July, compared to 50,983 in June. The number of loans approved for the purchase of existing homes was 43,809 in July, the highest since 2009.

There's also solid demand for new homes, with the number of loans to finance new home construction 5265 in July. But the number of loans to buy a just-built new home was 3131 in July, the highest since March 1979. July's rise means the number of home loans approved has risen for seven months in a row, thanks to solid demand from investors (many self-managed super funds) for existing homes or off-the-plan units or apartments.

Growth in demand for new homes is what the RBA has been aiming for as part of its goal of an economy transitioning from a mining investment boom. But demand for existing homes is more problematic. House prices are now up 10% in some markets in the past year. The last thing the economy needs is a housing boom which distorts the economy and brings higher interest rates. Already APRA has signalled concerns about the rising number of home loans where the loan-to-valuation ratio is 90% or more, and has told banks to start being tough on these high LVR loans. APRA and the RBA could very well start trying to "lean against" the surge in the prices of established houses.

The RBA believes in confidence and expectations that flow from consumers feeling more wealthy as asset prices rise, but members also know that contains the seeds of the next, unwanted crisis if left alone for too long. This could very well emerge as a flash point between the new government and the regulators. House-price booms always end in tears in Australia.

Revenue-pressed states want the boom (for higher stamp duty revenues) and News Corp Australia and Fairfax media want the house price boom to continue because their online real estate businesses are the only area of growth for their troubled empires -- that's why newspapers have been talking up house price movements, auction results and other fluff for the past six months. As the ABS data shows, there's a recovery underway, but it is not doing as much to stimulate demand for new house construction as it is for existing homes and apartments.

If anything this home-price - rather than new-home - boom may become the most pressing problem for the economy, rather than the value of the dollar.

 
<hr>
 This article was originally published on <a target="_blank" href="https://www.crikey.com.au">Crikey</a>.
 
 
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Our biggest economic problem could be a housing price boom

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With seven buyers in the room, the Westpac Bank branch at 26 Hall Street Bondi Beach sold at auction this week for $6,426,000.
Colliers International agents Matthew Meynell and Brian McInally had given a $5.5 million reserve price to the Cooley Auctions who took around 75 bids for the investment property.
Its sale priced represented an approximate 4.93% yield.
Bidding had opened at $4 million on the highly desirable investment with its 512 square metre net lettable area.
Its leased to Westpac on a 5 + 5 year lease at a net $317,000 annual income. There was an apartment on top of the bank.
The site has a FSR 2:1 and 13 metre height limit.
It's a 200 metre walk to Bondi Beach.
"Due to its prime location and exceptional development potential, it will feature as one of the key eastern suburbs investment sales of 2013," the marketing said.
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Bondi's Westpac Bank branch sells

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With our increasingly urbanising population in Australia comes a race for space of sorts in our major capital cities, where desire to live in them remains high and is growing.
Like many geographically large nations around the world such as China, Brazil, and Russia, despite the seemingly endless supply of land these countries have, people are preferring to value the convenience of an urban lifestyle at the sacrifice of land and space.
I’ll take you through eight innovative changes or improvements that investors are updating their properties with in order to attract the best rental returns. These trends cover off things like space maximisation and the growing urban desire to bring the rural or country creature comforts into urban spaces.
The key thing is that these trends are happening in smaller, urban properties where space maximisation and lifestyle convenience are the things renters are seeking. Investors ought to take note as some of these can be quite cost-efficient to implement, and could see the rental returns increase as a result.
<img style="float: left;" alt="number-1" height="35" width="24" src="/images/stories/2013/09/17/number-1.jpg">Veggie ‘feature’ gardens: These are popping up in tiny terrace back (and front!) yards in suburbs in inner-western Sydney and south-east Melbourne. Basically these are a small dedicated veggie patches – perhaps just 1 metre x 2 metres – planted in a front or back garden where space is limited, as a feature garden. The gardens achieve three core design functions: 
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<div>-          Creating visually pleasant focal point for small gardens;</div>
<div>-          Saving much-needed space for entertaining – also high priority for inner urban renters;</div>
<div>-          Addresses growing urban renter demand for ‘grow your own’ produce</div>
<img style="display: block; margin-left: auto; margin-right: auto;" src="/images/stories/2013/09/16/mcevoy_sept_16_one.png" width="381" height="214" alt="mcevoy_sept_16_one">
<img style="float: left;" alt="number-2" height="35" width="31" src="/images/stories/2013/09/17/number-2.jpg">Elevated deck with under storage. According to US site <a target="_blank" href="https://Houseplans.com">houseplans.com</a>, these are trending well with ‘tiny’ cottage style homes; similar to the workman’s terraces/cottages in Australia. Elevated back yard entertaining decks have been including dedicated, secure, and weather-resistant storage ‘bins’ underneath them. These bins, or drawers, literally roll out from underneath the decking and free up space in otherwise cramped small properties.
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<img style="float: left;" alt="number-3" height="35" width="26" src="/images/stories/2013/09/17/number-3.jpg">Kitchen/study combos. Weaving in to apartment design in several upcoming Australian developments are kitchens that can double as a study space when needed. These work by allowing an entire cabinet wall (usually a floor-to-ceiling pantry wall), to have a hinge half way down so that the top half of the wall folds over 90 degrees. This creates an office bench when needed and is a good feature of micro-apartment design (units of under 45 square metres), where space is particularly lacking.
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<img style="float: left;" alt="number-4" height="35" width="26" src="/images/stories/2013/09/17/number-4.jpg">Wall dining storage: Similar to the convertible kitchen cupboard/study desk above, some micro apartment designs are including TV unit wall storage that actually store a dining table and four dining chairs on racks, to save space when not needed. <ol></ol>
<img style="float: left;" alt="number-5" height="35" width="26" src="/images/stories/2013/09/17/number-5.jpg">Filtered water taps. By no means are these a new trend. However, what is trending well are older-style apartments who are installing water filter taps to existing kitchens. Water filter taps make older apartments more desirable, particularly in inner-ring suburbs. These are easy to have installed when in between tenant occupancies and are a capital cost that can be added to your depreciation report within the financial year they are installed. <ol></ol>
<img style="float: left;" alt="number-6" height="35" width="26" src="/images/stories/2013/09/17/number-6.jpg">Pre-fabricated building design. Melbourne’s International Flower &amp; Garden Show was abuzz with word of this design material. For investors the value of using pre-fabricated wooden panelling in any small front or back yard renovation is cost-efficiency. Some investors use it to create ‘backyard rooms’ which are effectively an oversize cubby-house for adults. This can add a covered entertaining space to small urban courtyards that previously had no entertaining function, for a reduced cost. Additionally these add as a striking design focal point in the yard, in turn attracting tenants and maximising rental return.
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<img style="float: left;" alt="number-7" height="35" width="26" src="/images/stories/2013/09/17/number-7.jpg">Wee tree wall gardens. Funny name, handy cost-efficient addition. The wee tree wall trend started out in Chicago but is appearing in Australia too. When there is no courtyard or balcony space for a ground-planted garden, but when you want to cost-efficiently add greenery and a dynamic focal point for the space, these wooden-panel walls can be built and installed cheaply. They work well to either hide an ugly wall, or to create a garden where there was no space in the ground previously to do so. The wall slats have shrubs planted across all the gaps, adding a sense of nature to otherwise cramp and industrial-feeling urban yards. Again, these add perceived value for minimum cost, working to attract premium rental value for a property.
<img src="/images/stories/2013/09/16/mcevoy_sept_16_two.jpg" width="468" height="309" alt="mcevoy_sept_16_two">
<img style="float: left;" alt="number-8" height="35" width="26" src="/images/stories/2013/09/17/number-8.jpg">Clever Use of Mirrors. Again, nothing new with mirrors being used in small spaces to add the perception of more space. But it is the clever use of them in renovations that is innovative. Mirrored bottom-shoe-drawers inside wardrobes that angle so shoes are visible when the drawer is only slightly open, are trending well for urban spaces. These save people from sifting through shoe drawers when they are busy whilst also saving storage space. Wall-to-floor mirrors in living spaces duration renovations are also an age-old manoeuvre to convey a more spacious living area.
 
<hr>
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" rel="nofollow" target="_blank">Property Correspondent.</a>
 
 
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