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

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

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

How Sterling Global designed 623 Collins from Melbourne's history

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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Economist Steve Keen has delivered a damning verdict on the impact of first-home owner grants, saying they only serve to drive up property prices and push first-home owners out of the property market. 


The embattled economics professor and columnist, currently in a legal dispute with his academic institution the University of Western Sydney, says the new doubled $15,000 first-home owner grants being offered by the NSW and Queensland state governments – labelled builders’ grant by Ray White boss Brian White – aren’t as damaging as the previous broader grant to buyers of existing properties.

Keen labelled the recent accusation levelled by acting NSW opposition leader Linda Burney that Premier Barry O’Farrell had abandoned first-home buyers by cutting the grant for existing home and removing stamp duty concessions (unless you buy or build a new home) as “bollocks”.

“First-home buyers weren’t locked out by the ending of the first home vendors’ grant: they were locked out by the impossibly high prices that this grant has helped generate over the 30 years since it was first invented,” says Keen.

Keen says former prime minister Kevin Rudd’s doubling and tripling of the first-home owner grant from 2008 to 2010 caused the last spike in house prices, with the real beneficiaries those vendors who sold their first homes to first-home buyers – hence why Keen calls it the "‘first-home vendors’ grant" – and the banks that took the extra deposit and heaped first-home buyers with “initially three and ultimately over 10 times as much more debt”.

“The grant should be abolished, and governments should keep their hands out of asset markets.

“The O’Farrell government is still in there with its grant to purchasers of new properties, but that isn’t as damaging as the broader grant to buyers of existing properties as well.

“In that sense, I applaud the O’Farrell government for limiting the damage done to first-home buyers – and indeed the economy – by the grant,” he says in a column for Business Spectator.

Keen says the purpose of the first-home owners grant has never been to give first home buyers a helping hand, but has “always been used as a way of giving the economy the economic equivalent of a steroid injection”.

“First-home buyers have instead been the sacrificial lambs of an asset-price-inflation route to apparent national prosperity,” says Keen.
 
<hr class="system-pagebreak">
Keen says former prime minister Bob Hawke was the first to use a first-home buyers grant after he beat Malcom Fraser at the 1983 election, not to help first-home buyers but as a way of “reviving the housing market and perhaps the economy”.

He says it worked a treat, and allowed Paul Keating to claim the mantle of greatest treasurer ever.

But, Keen says, the grant also “supercharged house price rises”.

According to Keen, every time the government has introduced a first-home owner grant, the effect has been the same and can be observed by looking at house price before and after its introduction.

He says without government-injected stimulus, house prices have risen more or less in line with inflation, but have diverged noticeably to deliver real growth on the back of first-home owner grants.

“This is when the myth that house prices always rise took hold in the Australian psyche – without the awareness that this was not a natural phenomenon like sunrise, but took not only rising leverage from the banks, but also active intervention in the property market by both state and federal governments.

Keen is currently embroiled in a Fair Work Commission dispute with the University of Western Sydney over delays in processing his voluntary redundancy while at the same time facing a corruption watchdog enquiry after telling his economics students he could not fail any of them because they would not be able to re-sit exams due to the university no longer offering an Economics degree course.

A tribunal hearing involving Keen and UWS began yesterday in Sydney while UWS has already referred the matter to ICAC.

Keen tweeted that it was confidential hearing at the request of the university.

Keen explained what he told his students in an interview with ABC News radio yesterday.

“I told the students that I would not fail anyone given the circumstances that their subject was quite possibly being abolished and they were told about it two weeks before the exam for that subject would take place and of course if they failed, there wouldn't necessarily be a subject there for them to repeat the following year and I certainly wouldn't be teaching it so in that situation I just couldn't see how I could fail anybody.

He says he “probably overstepped the mark”, but claims UWS has “blown the matter out of proportion as part of a battle over the cuts to economics”.

Keen says he has been invited to two universities in London to apply for professorships and has also applied to his alma mater, the University of Sydney, for the professorship of political economy.
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State handouts turned first-home owners into “sacrificial lambs”: Steve Keen

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In what could signal a better year for retail property on the Gold Coast, diversified financial services group Challenger has bought the Centro Surfers Paradise Mall for $162.5 million.
The sale price is 1.6% above the June 30 2012 book value and follows a number of unsuccessful sales campaigns dating back to April 2010.
Challenger has acquired the centre alongside institutional investors having previously been a lender to the Centro-managed investor syndicate MCS 11, which held the asset.
The centre had attracted the interest of billionaires John Van Lieshout and John Gandel.
The sale was negotiated by retail specialist Simon Rooney of Jones Lang LaSalle, who said “a range of investors are now targeting quality retail assets with strong growth outlooks.
 Rooney says investors are "particularly attracted to Queensland’s positive economic growth forecast, high rate of population growth and strong international tourism sector, which will support a recovery in the Gold Coast retail market"
Centro Surfers Paradise is the dominant retail complex in Surfers Paradise occupying some 2.6 hectares on Cavill Avenue with more than 100m of frontage to the Esplanade overlooking the main Surfers Paradise beach.
The mall was first listed for sale in April 2010, but failed to achieve what Centro considered a reasonable price “in excess of $150 million”.
It was remarketed for sale in November 2011 but Centro could not negotiate a sale despite receiving a number of offers.
Centro purchased the mall for $88 million in 2006 on a yield of 10% with Woolworths as the anchor tenant along with 112 speciality tenants and over 21,000 square metres of gross lettable space.
Investors are forecast to receive a final syndicate net asset backing (NAB) of $1.63 for every $1.00 of original equity invested.
Centro Retail Australia will continue to manage the centre, which according to the Australian Financial Review has “substantial development upside”.
Centro Retail Australia is the restructured entity that emerged after Centro ran into deep financial trouble on the back of the GFC.
Subject to shareholder approval later this month, it will change its name to Federation Centres.
Centro Retail Australia owns 41 shopping centres and has assets worth $6.6 billion
It also manages a further 43 shopping centres on behalf of unlisted property syndicates.
 
 
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Challenger acquires Centro Surfers Paradise Mall for $162.5 million

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Australia has a growing generation of residents who can not only not afford to buy, but cannot afford to rent, either.  They’re the oft-forgotten ‘rental sector’ lost amid an abundance of market commentary devoted to the ‘good news’ on falling interest rates for mortgage holders, endless ‘forecasts’ of growth for potential property investors, and renovation mania that is set to hit the country once again  as we enter the year’s annual ratings war full of obsessive real estate reality shows.
Despite reports assuring buyers that housing affordability has improved and the persistent and poorly assessed claim that it’s cheaper to buy than rent in an increasing number of suburbs, (the methodology of which I argue against <a href="https://www.propertyobserver.com.au/residential/room-for-debate-is-it-really-cheaper-to-buy-than-rent-in-some-suburbs/2012110857623" target="_blank">here</a>), the percentage of people requiring rental accommodation is fast gaining pace, and for the past five years or so, yields have been rising at phenomenal rates – by and large outpacing both wage growth and inflation for the same period.
The insistence from various commentators that the steep rise in rental prices will push increasing numbers back into ownership fails to consider that inflated yields coupled with erosion of interest on long-term deposit accounts has all but cancelled out any perceived benefit for a large proportion of ‘would-be owners’. Consequently, they often have no choice but to lodge with family or friends as they transition through the various stages of job changes and property moves.
Currently, roughly 30% of Australia’s housing market is made up of renters.  The 2011 census data indicated median rises in rental prices rose sharply over the five-year interim, with Western Australia tipping the scales with an increase of 76% over the corresponding period.
The number of owner-occupiers has been slowly diminishing, and the proportion of renters priced out all together is increasing.
Australia’s owner-occupancy rate, which once sat at 71.4% in the mid to late 1990s, is now at 67%  and forms part of a slow decline in which families with children in particular seem to be suffering.  The decrease of ownership for this demographic has fallen from 79.5% (2006) to 77.2% in 2011 – and considering the low activity in the market of late, it’s fair to suggest the downward trend is set to continue.
Other reports presented late last year suggest that had ownership percentages stayed at the same level as that recorded in the 2006 census, we’d have welcomed  an additional 34,000 into the property market.  As it is, despite the 6.1% ‘peak to trough’ fall in the national median house price and flat prices in most capital city markets throughout 2012, sales turnover over the past two years has been woefully low – back at levels not seen since the late 1990s.
It’s easy to palm off the figures as a result of low consumer confidence, however as the latest Fitch ratings report  on residential mortgages pointed out, Australia is still the “least affordable housing” worldwide – and it’s nothing to be proud of.
 
<hr class="system-pagebreak">
 
The trend is not localised. In the UK the owner-occupancy rate is at its lowest level  since 1988, with 64.7% of the population now classified as ‘owner-occupiers’ and the proportion of people renting rising from 31 to 36% over the preceding 10 years.  This is despite a recent British Social Studies Survey that indicates 86% of tenants (social included) still foster a strong desire to “own their own home.”
In light of its financial woes the US is of course no different – their owner-occupancy rate is at a 15-year low. with roughly 65% of the population now classified as owner-occupiers and a rental sector that is straining under the pressure of inflated yields and increased demand in capital city locations.
In fact, across all property markets that have historically boasted high owner-occupancy rates, the rise in the number of homeless people is strengthening as the vicious circle of trying to save for a deposit in a fiscal environment while servicing high rental prices keeps residents well and truly ‘stuck’ – often in accommodation that  is not adequately suited to their family’s needs.
A comment (one of many) from a would-be home buyer on Australians for Affordable Housing’s Facebook site last week summed it up perfectly:
“Well I can't afford to rent let alone buy (and the) stress ... is literally [a]ffecting my health”.
A closer look at exactly what it costs to rent a modest apartment within commutable proximity to our capital cities is truly eye-opening for anyone who may have been out of touch with the market of late.
In the most recent quarterly bulletin wrapping up the year for 2012, RP Data noted that Perth in particular is feeling the strain. with an increase in yields of 12.8% for houses and 10.6% for units, with vacancy rates as low as 1.6%. According to APM, this is an increase of $70 per week over the 12-month period, leading Premier Colin Barnett to single out rental prices as the “biggest cost-of-living pressure facing Western Australians.”
As was noted in another report, Darwin currently has only two rental properties listed on realestate.com.au for <a href="https://www.ntnews.com.au/article/2013/01/07/316453_realestate" target="_blank">under $300 per week –</a> one of which is a rusty old corrugated iron shack that would look more at home in a ‘shantytown.’  The median rent in Darwin is $600 per week.
Students in Queensland have described the market under $300 ‘war like’ and as for Melbourne and Sydney, and it all comes down to the standard of accommodation you want to call "home".
In Melbourne, if you’re halfway fussy – perhaps requiring good proximity to transport, a modest balcony, or internal floor space over 40 square metres, you’ll be hard pushed to get a one-bedroom apartment in original un-renovated condition under a minimum of $350 per week.  In Sydney, the equivalent will cost between $450 and $500 per week – which is hefty chunk for any average wage earner.
To give some idea of the condition of apartments currently for rent at the above prices, this is an interior snapshot of the kitchen in one such apartment I inspected last week in an inner suburb of Melbourne. I think it paints the picture perfectly.
<img alt="cashkitchen" height="320" width="240" src="/images/stories/2013/01/cashkitchen.png">
Students, singles and childless couples can often make do with less space to compensate for the luxury of being close to the city or walkable distance to both transport and shops.  However single mothers, low-wage families, retirees or disabled tenants understandably require something a little more substantial than a one-bedroom flat to adequately fulfil their basic needs.
As such, they’d be hard pushed to find anything suitable for less than $500 per week unless they move to the outskirts of the capital city.  And due to poor public transport facilities in many fringe locations, such a move simply isn’t feasible for a large majority of renters – though many are forced in that direction.
 
<hr class="system-pagebreak">
Is it any wonder, reports of ‘crowded houses’ – with three or more families sharing accommodation – rose nationally by 64% to 48,499 in the last census? Furthermore, other data from the ABS shows from 2009-10, 42% of renter households received some form of housing assistance, once again emphasising the growing crisis in this sector of our marketplace.
Pressure on the rental market is unlikely to ease in the near to far future.  The ABS estimates almost two-thirds of ‘new residents from overseas’ are long-term property renters – this is compared with half new residents from ‘within Australia’ who now class themselves in the same bracket – which is a robust figure in itself.
Economic conditions such as wage growth, unemployment, consumer confidence and frequent changes of work placements all reduce the likelihood of a strong owner-occupier market over the next decade.  Current policy is built around the general assumption that renting is a ‘step’ on the road to ownership – however  it’s fair to suggest, unless the trend takes an about turn,  tomorrow’s generation will hold a growing percentage of residents for which renting is ‘for life’ and as such, we need to consider their welfare.
No one should be fooled into thinking private rental accommodation is affordable accommodation; residential investors are looking for strong yields and solid returns.  In a heated market, vendors will understandably go for as much rent as they can achieve (regardless of tax benefits and lower interest rates, which are rarely passed onto the tenant.)
The NRAS (National Rental Affordability Scheme), which was designed to go some way in bridging the ‘affordability gap’ for low income workers sitting on the rental ladder is also flawed in its design – a subject I’ll expand upon at a later date.  When the scheme was first initiated in 2010, the AHURI analysed the project to assess the overall impact in easing affordability. The findings revealed only 40 per cent of applicants using the accommodation had fallen below the 30 per cent ‘housing stress benchmark.
In the meantime, it’s vital we start to steer policy towards the creation of a fairer partnership between owner and renter.  This would include longer terms of tenancy, protection from exorbitant rent rises, enforcement of basic standards of accommodation (in both the private and public sector) throughout Australia, and a greater partnership between tenant and owner – which could even envisage the tenant taking on more responsibility for the basic maintenance of their ‘home’ in return for a secure rental plan ensuring a longer term of permanent tenancy (five to 10 years) for which rent does not outpace the growth of inflation.  Other models of assistance, including housing co-operatives, should also be assessed.
The benefit an investor can gain from a happy tenant should not be underestimated. Property – even when maintained through an experienced property manager – is not a hands-off experience.  Unlike a share certificate you can file away and forget about – the value of any residential property (whether letting or selling) derives from its lasting appeal as a ‘home.’  Ensuring there’s enough money left over from the initial acquisition for ongoing maintenance is vital – and a long-term happy tenant should never be undervalued.
There is much that needs to be done to assist the ownership of affordable accommodation; however, creating a stable market terrain for tenants is equally important and needs an overhaul of current policy if we’re to do so.
Without it, the number of people seeking government-assisted accommodation will escalate to greater proportions, and the untapped potential of a growing number of residents struggling to make ends meet will hamper advancement of the overall economy.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
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Growing generations of Australians squeezed out of even rental market by diminishing housing affordability: Catherine Cashmore

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The Western Australian economy continues to outperform the rest of the nation, according to CommSec. 
The state has come out on top on four of the eight criteria – retail trade, equipment investment, construction work done and population growth – and also held onto second place in retail trade and housing finance, according to the latest quareterly “State of the States” report  compiled by CommSec chief economist Craig James.
The report places the Northern Territory in second place overall, close behind Western Australia, and the ACT in third.   
The Northern Territory continues to lead the ranking on economic activity at 48% above its decade-average output, and the ACT is supported by strong dwelling starts and population growth.  Although unemployment in the ACT is low compared with the rest of the nation, it is above the historical average at 3.5%.
There is little separating the three major states: Victoria, Queensland and NSW, according to the authoritative CommSec report, which looks at key economic trends.
NSW is benefiting from historically low unemployment together with rising population growth.  Home building has improved with the help of state government grants.  CommSec believes the factors will result in housing activity lifting in 2013.
Victoria has been supported by its housing sector, which is now slowing. 
All states and territories are showing levels of construction work higher than their decade averages.  
Victoria is in second-last place, with construction work 17% higher than the decade average for the state. In contrast to this, Victoria has the highest number of housing finance commitments, at 1.7% below the decade average and up 4.5% on November last year.
Queensland is restricted by its historically high unemployment but is supported by construction work and equipment investment.  The state is ranked third in retail spending, at 15.1% above decade-averages.
"The Victorian economy is certainly still being helped by relative strength in home building. And the Queensland economy is being propelled by equipment, commercial and engineering investment," says CommSec.
South Australia is sitting well below the rest of the country yet has encouraging signs, as population growth has improved and is at two-year highs at 22% above long-term averages.  CommSec believes this has the potential to lift the state via retail and housing-related activity.
Although equipment investment is above decade averages, the Tasmanian economy is still struggling due to 7% trend unemployment, which is well above the decade average of 6%.
"State of the States" is a quarterly report produced by Commsec, edited by chief economist Craig James, analysing eight key indicators: economic growth; retail spending; equipment investment; unemployment; construction work done; population growth; housing finance and dwelling commencements.
 
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Strong economic outlook augers well for WA, NT and NSW housing markets: CommSec

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There are just over two weeks to go until the Reserve Bank’s monetary policy committee meets for the first time in 2013 on February 5 to deliberate on the cash rate.
It currently stands at 3%, with the lowest advertised variable rate on offer being 4.99% from lender Easy Street, owned and operated by Sydney-based Community First Credit Union.
The lowest three-year fixed fixed-rates also start from 4.99%, offered by non-bank lender homeloanHQ, with loans underwritten by a major bank.
Economists are suggesting that the RBA may wait until March to begin cutting rates, but will take a closer look at the December quarter inflation result to be released by the ABS on Wednesday.
With annual inflation expected to track well within the RBA’s annual target band of 2% to 3%, a<a target="_blank" href="/news"> low quarterly inflation reading </a>may give the RBA the green light to cut rates – depending on its assessment on other factors such as unemployment, mortgage growth and retail spending.
AMP Capital Investors chief economist Shane Oliver, who expects at least three rate cuts this year, points out that there was only bright note in December economic data – a record number of car sales.
Overall, he says, “the Australian economy remains sub-par, particularly so given that the RBA started cutting interest rates over a year ago”.
Regardless of what the RBA decides to do, astute borrowers will be examining their current mortgage and lender with expectations that rates will fall further this year.
These are the lowest advertised mortgage rates based on listings by <a href="https://www.ratecity.com.au/" target="_blank">ratecity.com.au</a>, <a href="https://mozo.com.au/" target="_blank">Mozo.com.au</a>,  <a href="https://www.infochoice.com.au/" target="_blank">infochoice.com.au</a> and <a target="_blank" href="https://www.homeloanfinder.com.au/">homeloanfinder.com.au</a> as of January 21:
Where the headline rate is the same, the lender with the lowest comparison rate gets preference.
Lowest variable rate offerings:
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Provider
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</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="134" valign="top">
Easy Street
</td>
<td width="124" valign="top">
Honeymoon Home Loan Special
</td>
<td width="97" valign="top">
4.99%
</td>
<td width="116" valign="top">
5.77%
</td>
</tr>
<tr>
<td width="134" valign="top">
Nationwide Mortgage
</td>
<td width="124" valign="top">
True Saver Home Loan
</td>
<td width="97" valign="top">
5.17%
</td>
<td width="116" valign="top">
5.18%
</td>
</tr>
<tr>
<td width="134" valign="top">
Mortgage View
</td>
<td width="124" valign="top">
Mortgage View Pro Pack, New Year Special
</td>
<td width="97" valign="top">
5.17%
</td>
<td width="116" valign="top">
5.19%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
Greater Building Society
</td>
<td width="123" valign="top">
Fixed Rate Ultimate Home Loans
</td>
<td width="95" valign="top">
4.99%
</td>
<td width="114" valign="top">
5.80%
</td>
</tr>
<tr>
<td width="137" valign="top">
Newcastle Permanent
</td>
<td width="123" valign="top">
Fixed Rate Home Loan
</td>
<td width="95" valign="top">
4.99%
</td>
<td width="114" valign="top">
5.98%
</td>
</tr>
<tr>
<td width="137" valign="top">
Hunter United
</td>
<td width="123" valign="top">
Fixed Rate Home Loan
</td>
<td width="95" valign="top">
4.99%
</td>
<td width="114" valign="top">
5.98%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="131" valign="top">
Provider
</td>
<td width="131" valign="top">
Loan name
</td>
<td width="96" valign="top">
Rate
</td>
<td width="111" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="131" valign="top">
homeloanHQ
</td>
<td width="131" valign="top">
Rate Lock Home Loan
</td>
<td width="96" valign="top">
4.99%
</td>
<td width="111" valign="top">
5.53%
</td>
</tr>
<tr>
<td width="131" valign="top">
Resi
</td>
<td width="131" valign="top">
Flexi Fix Plus 75
</td>
<td width="96" valign="top">
5.09%
</td>
<td width="111" valign="top">
5.80%
</td>
</tr>
<tr>
<td width="131" valign="top">
UBank
</td>
<td width="131" valign="top">
UHomeLoan for refinancing - Fixed Rate Loan
</td>
<td width="96" valign="top">
5.13%
</td>
<td width="111" valign="top">
5.26%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
For information on refinancing, watch our free webinar <a target="_blank" href="/news">The Do's and Don’ts of Refinancing Your Existing Home Loan ... and How to Avoid Unnecessary Hurdles</a>.
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The cheapest home loan offerings in the lead-up to February RBA decision

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In a market where we are seeing a rising number of property listings, it is more important than ever to ensure that when your home hits the open home circuit, it’s playing the part.
Unfortunately the old ‘throw some cookies in the oven’ trick just doesn’t cut the mustard anymore. In fact, the mouth-watering aroma of freshly baked treats is so yesterday. The new must-do property preparation, which surfaced in the United States in the '80s, has well and truly hit Australian shores – property staging.
Essentially, property staging allows sellers to create the ideal home experience for buyers. Experts say that although a buyer may only include certain items on their dream home checklist, they are also subconsciously affected by the not-so-obvious surroundings – which may in turn affect their purchasing decisions. Property staging professionals are trained to incorporate those surroundings into your home in order to achieve those subliminal effects.
A professional stager will assess the property’s current décor, consider the targeted buyer audience and showcase the space accordingly. It’s not just a matter of smart furniture and replica artwork, either. Staging allows the home’s most unique architectural features to really shine and maximises the available space to capitalise on a buyer’s interest.
According to Queensland property staging company Styled By Me, a potential buyer is 63% more likely to buy a property that is presented as a ‘ready to live in’ look. And REIQ-accredited agents have reported that a staged home can decrease time on market and increase potential profit.
This service can also allow a property a renewed lifespan on the market. If a home has been for sale for a significant period, an internal transformation can attract a wider group of buyers and refresh the listing’s presence. Additionally, when a home is completely vacant it’s difficult to ascertain the purpose of particular spaces. When a property is staged, the buyer has a clearer understanding and perspective of each space. And naturally your investment in staging will reflect in the images used in your property’s marketing campaign.
It is even rumoured that prestige residential rentals and commercial and retail leases are getting on the property staging train to ensure they snag the right type of tenant for their property.
So if you’re the type that likes to keep up with the real estate Joneses, it’s time to throw out the cookies and make sure your property is playing the part.
Amanda Haack is events manager journal deputy editor at the <a href="https://www.reiq.com/" target="_blank">Real Estate Institute of Queensland</a>. This article originally appeared on the<a href="https://reiqblog.com/" target="_blank"> REIQ blog.</a>
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ahaack-6499LRWKce

Forget the freshly baked treats: How professional styling can increase your home's selling price

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Queensland is the state requiring vendors to slash asking prices most to secure a sale, according to a RP Data study.
The state accounted for 19 of the top 20 suburbs where vendors gave the greatest reductions on their initial asking price.
Stapylton, situated some 45 kilometres south of Brisbane, topped the list, with an average required vendor discount of 32%.
Next was Eli Waters, near Hervey Bay, as a close second with 31.5%.
The Queensland tourist town Airlie Beach came third with an average discount of 29.4%.
<img src="/images/stories/2013/01/qlddiscount.jpg" width="470" height="747" alt="qlddiscount">
The only suburb not in Queensland in the top 20 was Wannanup in Western Australia. 
<a href="/news">STAPYLTON </a>QLD -32%
<a href="/news">ELI WATERS</a> QLD -31.5%
<a href="/news">AIRLIE BEACH</a> QLD -29.4%
<a href="/news">RUSSELL ISLAND</a> QLD -28.1%
<a href="/news">COOCHIEMUDLO ISLAND</a> QLD -27.4%
<a href="/news">WOWAN</a> QLD -27.3%
<a href="/news">BLACKBUTT </a>QLD -27.3%
<a href="/news">PORT DOUGLAS</a> QLD -26.4%
<a target="_blank" href="/news">POINT LOOKOUT</a> QLD -26%
<a target="_blank" href="/news">CLIFTON BEACH</a> QLD -25.9%
<a target="_blank" href="/news">BAUPLE </a>QLD -25.1%
<a target="_parent" href="/news">NEWELL </a>QLD -24.6%
<a target="_blank" href="/news">MERMAID BEACH</a> QLD -24.6%
<a target="_blank" href="/news">BILINGA </a>QLD -24.6%
<a href="/news">WANNANUP </a>WA -24.6%
<a target="_blank" href="/news">INNISFAIL</a> QLD -24.4%
<a target="_blank" href="/news">DINGO BEACH</a> QLD -24.4%
<a target="_blank" href="/news">WONGAWALLAN </a>QLD -24.1%
<a target="_blank" href="/news">COOKTOWN </a>QLD -24%
<a target="_blank" href="/news">KARRAGARRA ISLAND</a> QLD 24%
Source: RP Data average vendor discount - 12 months to October 2012
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jchancellor-FAypfDUnLy

Queensland accounts for 19 of the nation's 20 highest property vendor discount suburbs

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Hopes of a recovery in demand for tourist accommodation in 2013 on the Gold Coast have been dealt a blow, with young Australians increasingly shunning it as a holiday destination, according to the latest Roy Morgan survey.
Based on a survey sample of 22,000 Australians aged under 30 taken just before the key Christmas holiday period, Roy Morgan found that 4.1 million Australians (22%) want to take a holiday in Melbourne within the next two years, compared with 3.3 million (18%) who would choose the surf, sun and sandy sequins of the Gold Coast.
Also reflecting the rise of big city-based holidays, Sydney is now almost equal third with the Sunshine Coast as a favoured destination, with 2.2 million Australians (12%) choosing Sydney and 2.3 million the Sunshine Coast (12%).
Victoria’s iconic Great Ocean Road rounds out the top five, with 2 million (11%) wanting to visit.
Reflecting the devastating impact of the GFC on tourism-dependent locations, the Gold Coast was the top tourist destination in Australia from 2001 to late 2007, before Melbourne overtook it in late 2008.
Since then Melbourne’s tourism star has risen and continues to rise while the Gold Coast has continued to decline with both its holiday accommodation market and overall property market slumping.
The November quarter Midwood Report tallied just 19 high-rise apartment sales on the Gold Coast over the November quarter, a 70% plunge from sales figure a year ago, with 705 new high-rise apartments still available for purchase and receivers appointed to high-rise developments Oracle and Soul among others.
Top 5 domestic holiday destinations Australians would like to visit in next two years
<img alt="roymorgan" height="216" width="470" src="/images/stories/2013/01/roymorgan.gif">
Source: Roy Morgan
Commenting on the latest results, Jane Ianniello, international director of tourism, travel &amp; leisure at Roy Morgan Research, says beach destinations such as the Gold and Sunshine coasts have suffered in popularity over the past decade due to increased competition from short-haul overseas beach destinations such as Bali, Fiji and Thailand.
She says Melbourne is only domestic holiday destinations to have increased in preference over past decade.
“Australians under 30 are particularly attracted to it, with 28% saying they would like to take a holiday there in the next two years. The shopping, dining, nightlife, and special events all appeal to this younger age group. “Sydney has regained popularity as a holiday destination over the past three years after suffering a large drop in preference after the Cronulla riots in December 2005. A guide to the top 10 destinations for 2013 by accommodation booking website hostelworld.com ranks Taipei, Taiwan, as the top destination following a rise in tourist numbers in 2012 and the opportunity to view the city from one of the world’s tallest buildings (Taipei 101), along with "gloriously tasty and extremely affordable food and more”.
Porto, Portugal, the "city of bridges", ranks second for being “visually stunning”, followed by Christchurch, New Zealand – the closest to an Australian destination, as it rises from earthquake disasters.
The others in the Hostelworld top 10 are Amsterdam, San Diego, Rio De Janeiro, Budapest, Tokyo,  Girona (Spain) and Cape Town. 
 
 
 
 
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Younger Australians increasingly prefer holidaying in Melbourne over the Gold Coast: Roy Morgan

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Today, I look at 10 of the traditionally pre-eminent guises of investment risk but specifically as they apply to Australian property investors.
1 Market risk (or systematic risk)
Market risk may affect all investments in an asset class in a similar manner, such as in the event of a market-wide price crash. As such, market risk that cannot easily be mitigated through diversification. While buying properties in different states might diversify market risk to a partial extent, if the wider property market crashes diversification is unlikely to assuage the systematic risk successfully.
Property investors should additionally invest in other asset classes which tend to move in a non-correlated manner to real estate. Property investors can also focus upon a longer investment time horizon which allows correcting markets greater opportunity to recover.
2 Liquidity risk
Equates to the possibility that an investor may be unable to buy or sell an investment when desired (or in sufficient quantities) due to limited opportunities.
Illiquidity is a salient risk in real estate. It is difficult to sell a property quickly should the need arise, which is not the case for large-cap stocks or government bonds. Liquidity risk in Australian property is best mitigated through investing in landlocked capital city suburbs with eminent demand and constrained supply.
3 Specific risk (or unsystematic/business risk)
Equities investors and fund managers talk much of specific or business risk, being the measure of risk associated with a particular stock or security. Also known as unsystematic risk, this typically refers to the risk associated with a specific issuer of a security. Businesses in the same industry may have similar types of business risk, and issuers of stocks or bonds may become insolvent or lack ability to pay the interest and principal in the case of bonds.
Specific risk in property investment is somewhat different, and rather relates to the risk of acquiring a loss-making property or one which delivers sub-optimal returns giving rise to opportunity cost. Specific risk can be mitigated through diversification, although this can represent a challenging proposition in property as dwellings tend to be expensive.
One frequently invoked strategy of property investors is to acquire different types of property in different states. Careful, detailed due diligence and research of any property purchase also tends to reduce (if not eliminate) specific risk.
4 Interest rate risk
Normally refers to the possibility that a fixed-rate debt instrument will decline in value as a result of a rise in interest rates. Where an investor buys a security offering a fixed rate of return, they introduce an exposure to interest rate risk, examples thereof including bonds and preference shares (preferred stocks).
In Australian investment property, the interest rate risk instead lies in variable rate mortgages as the cost of debt capital can materially increase when the Reserve Bank ratchets up the cash rate. The risk can be mitigated through the use of fixed rate mortgages and prudent cash-flow management.
5 Foreign exchange risk (or currency risk)
Arises from a movement in the price of one currency against another. When the Australian dollar appreciates, the value of foreign investments declines. Conversely, if the dollar weakens the value of foreign investments effectively increase.
Presently the strong Aussie dollar attracts investors to overseas investments, in particular to US real estate. A good strategy? Maybe. Our dollar may depreciate and regional US property markets have corrected. But is there a foreign exchange risk in investing overseas? Absolutely, for exchange rates are inherently unpredictable. Few commentators in 2008 opined that the Aussie dollar could ever be worth 110 US cents, and yet it indeed became so.
Currency risk tends to be greater for shorter term overseas investments, which have insufficient time to revert to a mean valuation in the same manner as longer term equivalent ventures.
 
<hr class="system-pagebreak">
 
6 Sovereign risk (or social/political/legislative risk)
Sovereign risk is associated with the possibility of unfavourable government action or social upheaval resulting in investment losses. Governments retain the power to amend laws affecting investments, and rulings which result in an adverse investment outcome are representative of legislative risk. One frequently highlighted legislation risk in Australian property investment is the possible phasing out of the negative gearing tax rules.
Investing in developing or unstable countries variously offers opportunities for substantial returns but, reflecting the principles of the risk-return trade-off (of the CAPM model) may bring a heightened associated sovereign risk.
7 Credit risk
Credit risk normally refers to the possibility that a bond issuer becomes unable to service expected interest rate payments or a principal repayment. Typically, the higher the credit risk is, the higher the interest rate on the bond.
In property investment, credit risk often lies in the investor rather than the lender, although there is of course a possibility that lending institutions can become insolvent as was seen in the US as the subprime crisis played out. Property investors should retain a liquid buffer in order to mitigate the risk of mortgage default.
8 Call risk
Also usually refers to bond issues and the possibility that a debt security will be ‘called’ prior to maturity. In bonds, call risk prevails when interest rates fall, as companies redeem bond issues with higher coupons and replace them on the bond market with lower interest rate issues to save cash.
Can call risk impact Australian property investors? Indeed, but conversely when interest rates run higher. Investors with high exposure to adverse interest rate movements may be considered risky by mortgage providers cyclically. Investors in Australian commercial property have periodically been subjected to the real estate equivalent of a margin call, being forced to reduce debt exposure through the redemption of assets.
9 Reinvestment risk
Usually refers to the risk that future coupons from a fixed-interest investment will not be reinvested at the interest rate prevailing when it was initially purchased, a risk that increases in likelihood when interest rates decline. Zero coupon bonds are the only fixed-income instrument to eliminate reinvestment risk due to having no interim coupon payments.
The most straightforward strategy for property investors to avert reinvestment risk is simple: never sell.
10 Inflation risk
Also known as purchasing power risk, the possibility that the value of an asset or income stream will be eroded as inflation diminishes the value of a currency. The risk is the potential for future inflation to cause the purchasing power of cash inflows from an investment to decline.
Inflation risk is best countered through investing in appreciating assets such as real estate, dividend-paying stocks or convertible bonds, each of which has a growth component allowing them to outperform inflation over the long term. The uplifting news for property investors is that favourably-located Australian real estate is well recognised as a tremendously effective inflation hedge over time.
 <img src="/images/stories/2012/12/wargentbook.jpg" style="margin: 5px; float: left;">
Pete Wargent holds a range of finance and property qualifications and is the author of <a target="_blank" href="https://petewargent.blogspot.com.au/">Get a Financial Grip – a simple plan for financial freedom.</a>
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pwargent-M4siyDbqQY

The 10 risks to be managed by Aussie property investors 

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If the housing market is one favouring buyers, then the mortgage market is shaping up to be one favouring borrowers.
According to mortgage comparison website RateCity.com.au, competition between lenders for mortgage business is set to heat up in 2013, with annual home loan commitments forecast to return to levels last seen in 2000, meaning borrowers should be able to negotiate or switch lenders for a better deal.
RateCity.com.au says lenders are bracing themselves for one of the toughest years in 2013, and will have to boost their efforts to attract and retain borrowers.
The website bases this outlook on its analysis of ABS annual home loan commitment figures, which show a steep decline since peaking at just under 730,000 in 2007.
“During the global financial crisis, home loan commitments dipped to 599,070 in 2008 and the mortgage market never recovered with 2013 expected to have even fewer home loans financed,” says RateCity.com.au.
RateCity.com.au expects less than 600,000 home loans to be financed this year, and with mortgage rates expected to fall this will give added impetus for borrowers to consider refinancing, particularly if lenders don't pass on full rate cuts.
<img alt="ratecityjan18" height="261" width="470" src="/images/stories/2013/01/ratecityjan18.jpg">
Anecdotally, the competition for mortgage lending appears to be already heating up, with Yellow Brick Road, fresh from its funding deal with Macquarie Bank, offering a 115-basis-point reduction off of its base rate under its Empower Home Loan offering – followed by up to 86 points off the base rate for the life of the loan.
<ul>
<li>Bank of Melbourne is offering a 90-basis-point discount off of its standard variable rate home loan or portfolio loan over $500,000 until the end of January for those who take out a package deal. 
</li>
<li>Bankwest is offering an 80-basis-point discount off the standard variable rate for the first three years of its Super Start Home Loan.</li>
</ul>
In addition, RAMS is not charging mortgage application fees until the end of the month.
Other lenders that have cut upfront fees on some home loans during the past six months include AMP Bank, Yellow Brick Road and Gateway Credit Union.
RateCity.com.au spokesperson Michelle Hutchison says the peak levels of home loan activity in 2007 are unlikely to return any time soon and borrowers should take advantage of competitive offers and the opportunity to negotiate as lenders fight for market share.
“Interest rates are expected to fall further, which means borrowers are less likely to refinance because their repayments will drop, despite significantly lower rates often available to those who compare home loans and switch."
"Fewer government incentives for first home buyers will also mean there’s less appeal to enter the market.”
“Some lenders are also offering <a href="/news">no-deposit loans</a> such as RAMS (offering up to 120% LVR) and the latest from SGE Credit Union (up to 100%) with conditions.
“More lenders need to work harder if they want to attract and retain their mortgage customers this year. Borrowers should take advantage of the exit fee ban and save more than a Reserve Bank rate cut by comparing deals at RateCity, renegotiating with your lender or switching,” she says.
For information on refinancing, watch our free webinar<a href="/news"> The Do's and Don’ts of Refinancing Your Existing Home Loan ... and How to Avoid Unnecessary Hurdles</a> 
 
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