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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Having observed a slight, but expected rise in the unemployment rate last week (up 0.1 percentage points to 5.4%) the RBA will next turn its attention to the December quarter inflation reading put out by the ABS next week on Wednesday (January 23).
Apart from the monthly unemployment figure, the quarterly CPI reading is perhaps the most keenly watched statistic by the RBA given that the aim of monetary policy settings are to maintain an average medium-term inflation rate of between 2% and 3%.
Inflation is viewed as a forward-indicator of demand, allowing the RBA to reduce the cash rate if inflationary pressures are diminishing to provide a “short-term stimulus to economic activity”.
For the RBA to continue to cut the cash rate this year, the inflation rate will need to continue to hover towards the lower end of the central bank’s target band.
Economist and the RBA will focus on the ‘underlying’ or ‘core rate’ of inflation reading rather than the overall headline rate.
Core inflation gives a long-term trend picture of inflation by excluding volatile, seaosonal components of CPI like automotive fuel and some food items.
An average of the trimmed and weighted inflation readings provided by the ABS gives the core inflation reading.
The major banks are forecasting a moderate rise in both headline and core inflation, which will give the RBA scope to cut the cash rate further – but a March rate cut appears more likely at this stage than one in February.
NAB and ANZ expect a core inflation reading of around 0.7% for the quarter equating to an annualised rate of 2.4% to 2.5%.
According to NAB, a low core reading of 0.6% for the quarter is needed to sway the RBA to cut the cash rate in February rather than March.
“While a February rate cut will be discussed at the next board meeting, they already have done a lot. A low core CPI would probably be needed.
"We see the tipping point at 0.6% or lower (or 0.5% ex carbon). Hence we still see a March cut as more likely but it will be a close run thing," says NAB.
ANZ expects the RBA to leave the cash rate on hold in February, but that a moderate inflation reading will give the RBA the scope to lower rates further over the year.
The bank expects a 25 basis point rate cut in March with the cash rate falling to 2% by the end of this year.
“The improvement in financial market sentiment and, tentatively, the global backdrop is likely to stay the RBA’s hand," says ANZ.
“However, given confirmation of softness in the Australian labour market this week and few signs that interest-rate sensitive parts of the economy are picking up strongly, an unusually low fourth quarter underlying CPI inflation print next Wednesday would ensure an interesting discussion by the RBA Board."
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RBA interest rates countdown: Low inflation number could result in February rate cut

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In positive news for the construction sector, 2% more homes were built in the past quarter than the previous one.
<a rel="nofollow" href="https://hia.com.au/media/~/media/Files/MediaMicrosite/Media%20Releases/Modest%20Rise%20in%20New%20Home%20Building.ashx">The figures</a> released today by the Housing Industry Association show marked increases in New South Wales and Western Australia, with a smaller rise in Victoria.
In NSW new housing commencements increased by 9.5%, triggered in part by changes to government incentives, which saw NSW first homebuyers receive a $15,000 government grant.
HIA economist Geordan Murray says the overall increase was driven by the rise in NSW.
“I would be hesitant to suggest that this growth would be continued,” Murray says.
Western Australian figures rose by 23.6% for the quarter, but Murray says this was because the state was “getting back to where it should be”.
“In April and May changes in the approvals process in Western Australia caused a bottleneck in new home commencements, causing a hold up in the June quarter,” Murray says.
The Western Australian state government implemented changes in April 2012, which affected everything from the design stage to the occupation of the building.
In the December Quarter Murray says the 5000 new home approvals to date suggest a continuing strong result for the state.
Aside from the large increases in Western Australia, New South Wales and Victoria (where there was a rise of 2.9%), the other states recorded drops.
Most notable was Queensland, where new home developments fell by 14.2%.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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pmcstafford-pr9eMARWoN

Housing construction up in NSW, WA and Victoria: HIA

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If you're going to start a new business, you might as well dream big. And launch it in an exotic, beachside location.
That didn't quite happen immediately for entrepreneur Zoe Watson, but her big thinking approach has developed in the two years since she opened her <a target="_blank" href="https://www.blisssanctuaryforwomen.com/about-3/">Bliss Sanctuary for Women</a> in Bali in 2010.
Currently, she's in Hong Kong, where she's based the travel business in an effort to expand it across the globe. With the next stop Spain, her plan is to establish 20 sanctuaries in 12 countries over the next 10 years.
The Balinese sanctuary includes use of villas within Canggu, Bali, and future sanctuaries are set to include similar leisure accommodation.
It's a fairly ambitious mission for a woman with a fear of flying, who originally left the corporate world for Bali in order to rekindle her health and allow her body to recover from a nasty car accident. But it's a mission she believes is possible in a market that's saturated with retreat-style vacations for women, but very few resorts that focus on the "travel experience" instead.
Watson knows this because before dreaming up the idea, she long tried to find such solo-travelling holiday experiences herself, while in desperate need of some time out from the corporate world.
"At the time, I said to my boss, 'I need a month off or you need to get someone to help me'. He said, 'You can't do either or those; you can take next week'," Watson recalls. She took what she could get and travelled to Bali – an option she thought wasn't ideal at the time, but relatively simple, inexpensive and appeared to offer the safe, solo-travelling experience she was after.
It was better than expected: upon returning to Adelaide, she quit her advertising job to take a year-long break living in Bali where she could recover – something she knew could be funded with the compensation money she'd received from the car accident. The enforced rest didn't last a month.
Watson came up with the Bliss Sanctuary business plan within two weeks. Four weeks later she was flying to Bali to source a villa to rent, which she found within three days. The goal was to create a sanctuary for women travelling alone or with a friend who are looking to take a simple, carefree break. Women who wanted to take the "thinking" out of a holiday, and allow somebody else to sort out accommodation, meals, transport and even the day-to-day experiences (the Bali sanctuary offers packages covering cultural experiences, surfing and yoga).
"We've had ladies who get there and say 'I can't decide what to eat – you decide!'" says Watson.
Bali quickly provided a successful test case on how the business could work globally – with sanctuary spaces filling 50% in the first month of operation and up to 90% just a couple of months later. Now in its second year, it has seven local staff and a Canadian hostess, allowing Watson to work on opening new locations. As she extends the business across the world, she plans to work on site for a few months as each new location opens, then hand the space over to a Western hostess under a franchising arrangement.
Not bad for a business idea Watson attributes to simply taking a break. "I'm pretty gung-ho, having worked in media and the rat race in Australia, my whole lifestyle has completely changed now. If it wasn't for the forced rest on my part I don't think things would have played out the way they have," she says.
And unlike other rat race escapees seeking a seachange, Watson never hated her job. In fact, she recently recounted to the Adelaide Advertiser how she's always had fun, sought-after roles – even one in which she drove around a yellow Mustang convertible as a company car. She's now working harder than ever, but believes that having now found her purpose, the health effects of long hours are minimal.
As for the fear of flying, it hasn't quite disappeared but Watson's dealing with it. "I do find that the things we have the most fear of in life are often the things we need to overcome."
This article originally appeared on <a href="https://www.womensagenda.com.au/" target="_blank">Women's Agenda.</a>
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po-LsXgBTHBmX

How an entrepreneur's holiday turned into a women's tourism accommodation business

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Big homes, not necessarily McMansions, are easier to sell than their smaller counterparts as people look to future-proof their investments.
With families having more possessions than ever before, four-bedroom homes allow for a spare room to be used in many ways.
Three-bedroom, one-bathroom homes are becoming rarer and take longer to sell than a four-bedroom, two-bathroom home.
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Tip of the week: Enlightening property investment gems

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Are your loans stopping you from being a successful property investor?
Many investors wonder how they will ever build a property portfolio when they’ve been told they can’t access any more equity by their lender.
Or they feel like they can’t afford the payments on the loans they already have and even one property feels like a stretch, even though on paper their properties are nearly cashflow neutral or even positive.
Or they feel like they are still paying too much tax.
You would be surprised how many times people come to us with these same questions and don’t realise that often the loans they took out are causing some of the problems and holding them back from being a successful.
So how does this happen?
The first thing to remember is that banks and lenders are not property investing or tax specialists. Their job is to sell a product. It’s a bit like buying a car to tow a caravan; if you just ask for the cheapest car and don’t mention they want to tow a caravan you will probably end up with the wrong car.
John’s case study
Here is a typical case study from our team in Melbourne, where John* was referred by a friend.
John explained that he has 10 properties all with loans to one major big four bank lender, and would like to buy property number 11. However, this time when John approached his previously helpful bank manager, he was told that the bank could not lend him anymore money and he didn’t have sufficient equity.
For John this was a big surprise because he was on a much higher income than his last property purchase and the majority of his properties had also increased in rent and market value, thus increasing his equity position. He was also sure by his calculations that because of this all his properties were almost positively geared and in fact his previous accountant had told him that he would have to pay tax on the new rental earnings.
So, what was going on and why couldn’t his bank manager assist him?
After reviewing John’s financial position and completing a preliminary assessment, John’s finance strategist and accountant were able to determine that:
<ol>
<li>John’s current bank loans had expired on interest only and rolled over into principal and interest payments. This had the effect of increasing his monthly commitments and reduced his cashflow;</li>
<li>John's current bank had also cross collateralised his whole portfolio (10 properties including his owner occupied property), which impacted his overall equity position and borrowing capacity. Therefore, any changes to the current loans (and/or any request of additional lending) required the valuation and reassessment of all the properties/loans in his portfolio. This meant that his borrowing capacity was being tested on the total loans at the higher of the bank new loan testing interest rate further restricting what he could potentially borrow;</li>
<li>Due to John’s substantial borrowings with the one bank, he had also reached the bank's loan limit and mortgage insurer exposure level of $2.5 million, meaning that he could not borrow any“additional money” and/or had to reduce the overall loan-to-value ratio (LVR) to 70%. This also negatively impacted what equity could be accessed and also what John could then borrow;</li>
<li>Several of John’s loans where on older loan products with interest rates that were 0.1 percentage points or more  higher than new more competitive loans being offered by the same bank; and</li>
<li>John’s previous accountant had been overlooking some depreciation that John was entitled to. The team also identified some tax deductible loan portions that further improved John’s tax position &amp; negative gearing add back for serviceability.</li>
</ol>
 
The solution for John was to regain control of his financial position
Once John had worked with his lending and accounting specialist he was in a much better position to achieve his goals.
The 1st step was to have his team arrange for valuations on each property in his portfolio, all ten in total. Once the valuations were received, he was able to ascertain his equity position and start reviewing his borrowing capacity on all the current loans in his portfolio and ascertain whether further equity could be obtained as well as funding for the new purchase.
The 2nd Step was the “uncrossing” John’s securities with his current Bank so that all loans were secured against individual properties/or the property in which they related to. This provided John more flexibility in his portfolio and the ability to change lenders/access equity/sell property more readily should his financial position require this.
Once the 2nd step was completed, the uncrossing securities and overall restructure, he was able to refinance 2 of his current properties loans to a new lender to release further equity of $300K and obtain a  pre-approval with a third lender of $500K to purchase his 11th property.
Keep in mind that all of this has allowed John to rebalance his portfolio and exposure levels for future property investing. And the initial steps of reducing his loan exposure with his current Bank to below the $2.5 million has given him enough room to potentially increase these facilities in the future.  In addition simply by completing these steps, he has drastically improved his cash flow position, saving over $2,000 per month!
The end result
<ul>
<li>Ensuring John’s property portfolio was uncrossed and balanced to suit him (and not the bank);</li>
<li>John’s borrowing capacity was maximised by utilising his negative gearing and add backs to access $300,000 additional equity for further investment and “buffer” purposes;</li>
<li>All his loans and sub accounts were structured correctly for accounting and tax purposes;</li>
<li>His loans were negotiated to obtain the maximum discounted rates where possible to improve cashflow;</li>
<li>All his investment loans were interest only and not principal and interest; and</li>
<li>A loan approval for his 11th investment property at $500,000 loan amount.</li>
</ul>
 
Albert Waldron and Lauren Mamaj are part of the team of property investment specialists at <a href="https://www.chan-naylor.com.au" target="_blank">Chan &amp; Naylor</a>, national property, business tax accounting and wealth advisory group 

 
 
<ul></ul>
<ol></ol>
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awaldron-dVhPXocinv

How your loan structure could be hindering your property investment potential

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Although most of us are back at work already, some lucky readers out there may still be on annual leave. During my short break I was able to catch up on some of my favourite property-themed TV entertainment programs from around the world.
I have ranked my top six favourite programs that I think are the most information-rich programs, starting at number six. By no means is this an exhaustive list; there are more shows out there that I’ve not mentioned, but I feel the ones mentioned below are the most useful and accessible for investors.
Coming from a media background myself, I’m always keeping my eyes and ears open for new media and programs that have a property focus. It is important to note upfront is that the bulk of these shows are produced squarely as entertainment first and education second. That said, I’ve been able to extract value out of all of the programs below and take away some great lessons that have helped me in my investment life.
Number 6 – Hot Property (Australia)
Concept/Synopsis: Actor and famous Australian icon Michael Caton hosts a program focused on the negotiation process between property buyers, sellers and renovators. The episodes feature an auction in every episode, as well as private sales.
Why it is entertaining: This program is a little bit “loose”. The structure tends to change from episode to episode, with some focusing mostly on the stressful auction process (which plays out like a soap opera thanks to some clever editing and the addition of some emotional musical curves), with others focusing on the families of first-time property buyers.
Why I like it: This show is very much ‘entertainment first, facts second’ in its priorities, however it does give great insight into the objectives and motivations of both buyers and sellers, all emotionally invested in the same property. It is also an excellent exposure to the auction process and the unexpected things that can occur. For those who are too time-poor to get first hand auction witnessing experiencing, this show is great.
Areas to be weary of: Being hosted by an actor and not a property expert (the actor was chosen because he is famous for starring in films focused around the emotional importance of property ownership), the show lacks the much-needed stats, numbers and return on investment summaries that other programs usually provide, making it a little bit vague.
Number 5 – The Block (Australia)
Concept/Synopsis: Running for over 10 years in Australia, this is a reality entertainment program focused on four competing couples renovating stripped-down properties, often located in a blue-chip/prestige urban suburb. The contestants then must complete one room renovation per. At the conclusion, all properties are sold at an auction, with the couple with the highest profit declared the winners.
Why it is entertaining: The ‘mad rush till the last minute’ nature of the program really adds heightened emotion, and some excellent editing makes the program very entertaining for this reason. The contestant couples are selected carefully, and most are enjoyable to watch over a season of the program.
Why I like it: From an investment perspective, I actually enjoy the program more for the things it teaches me not to do as opposed for the tools it may teach me to do. The most glaringly obvious mistake most contestants make is when they overcapitalise on their renovations. But then, these renovations are not being made as part of a buy and hold strategy, these high-end renos are designed for ‘wow factor’ to appeal to the top-end owner-occupier would-be purchaser!
Areas to be weary of: In most years of its run, The Block had selected the city/suburb that was in a rising market at the time of planning, meaning that about six months later, when renovations were complete and the apartments were auctioned off for sale, the profit margins made were regarded as “awesome”. The program editing would have you believe that all profits were attributed purely to the efforts of the contestants in renovating them.
Where you can access it: The Block runs almost annually, and is coming up to its 2013 season premiere. It’ll be on during most weekends on the Channel 9 network. Previous seasons have been made available for purchase on DVD from specialty outlets and JB Hi-Fi/department stores. The next series returns to Channel 9 Monday, February 4. 
 
<hr class="system-pagebreak">
 
Number 4 – The Barefoot Investor (Australia)
Concept/Synopsis: This is not a program about property investment specifically. Instead, it is focused around all kinds of investment classes – ranging from property to shares to managed funds to some more obscure investment classes.  Host Scott Pape is a known investment expert and appears in numerous magazines and newspaper columns, along with regular appearances on TV and radio in Australia.
Why it is entertaining: The show’s approach is light and accessible enough, and with a wide variety of asset classes covered, makes for interesting repeat viewing because the content is so different with each episode. Scott’s approach is quite humorous and his youthful nature makes the show entertaining.
Why I like it: As a younger investor myself, I find this program more relatable than some of the others in this list. While it is great to hear from more mature, seasoned, and successful investors on what worked for them, it is great to watch a program that provides a focus to younger investors and ways to help them achieve their goals. When Scott does cover the property asset class in several segments, his advice for younger/aspiring investors is always sound and logical.
Areas to be weary of: The show sometimes travels off-topic, exploring things topics like love, travel, and life hobbies. Scott does skew these back into some kind of investment focus or strategy.
Where you can access it: The Barefoot Investor website offers some viewing of episodes, while others have been uploaded in full to dedicated channels on YouTube. The program airs infrequently also on Channel 10 on free to air television.
Number 3 – Flip Men (USA)
Concept/Synopsis: Business partners Mike Baird and Doug Clark, along with their crew of helpers, simultaneously buy, renovate, and sell – in other words ‘flip’ – multiple properties at any given time, focused predominantly on one market – Salt Lake City, Utah. Results vary from astonishing successes to projects of several months’ duration that result in loss rather than profit.
Why it is entertaining: As they often enter ‘high-risk’ neighbourhoods and buy properties ‘site unseen’ at auction, it is entertaining to watch the boys enter properties that they’ve already bought. There can be anything inside them – sometimes squatters, junkies, and gangs inhabit them, other times they discover drug labs were present, while sometimes they uncover profit-killers such as unforseen plumbing issues, entirely missing kitchens, or bizarre objects left behind by previous tenants.
Why I like it: It is entertaining, sure, but I respect an onscreen property team who allow cameras in to their everyday flipping world, warts and all, and are not afraid to show their audience their failures as well as their successes. I also have an interest in the US property market, so the program is a great educator to highlight just how much risk the US market offers Australian investors.
Areas to be weary of: Like many US reality programs involving auctioning, bidding, or improving something for profit, the 22-minute episodes firmly focus on the glamorous elements and unfortunately rarely present the hard work done, due diligence investigated, and the fact that the two business partners have an entire team/entourage working behind them. This team is what allows the duo to effectively be flipping around 10 properties at any time!
What you can actually learn from it and use in your property investment life: These two are very efficient at what they do, thanks to years of experience and their concentration on just one market (which they know inside out). Australia’s closest celebrity flipper would be Cherie Barber of Renovating for Profit, who runs workshops to teach others how to flip. The biggest two learnings I took away from this show is that 1) It gives you a feel for the multitude of problems you can face by entering a high-risk market with the intention of flipping and on-selling to family buyers; and 2) It gives you a good understanding of how important it is to buy the right 'type' of property in the market you are investing, relevant to the demographic of that area.
Where you can access it: It airs randomly on digital free to air (7Mate channel mostly), and on Foxtel’s A&amp;E channel. Episodes can also be viewed online for free via international streaming sources, or as paid HD downloads via iTunes or Amazon Store.
 
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Number 2– Selling Houses Australia (Australia)
Concept/Synopsis: Ex-real estate sales agent and property expert of over 20 years Andrew Winter makes the move from the UK to the Australian market. In each episode, Andrew, along with his gardener Charlie and interior designer Shaynna, enters a struggling vendor’s property to help get their house sold that has otherwise sat on the market for way too long.
Why it is entertaining: Andrew has a relaxed demeanor but also a charming way of allowing his ‘vendors’ to come to realise the mistakes they’ve been making and how these attribute to a poor sales interest by the market. Vendors in almost every episode will throw out all kinds of humorous excuses for why they have not made the effort to make their property stand out from the crowd. Andrew also interrogates the selling agent responsible for each of these properties in a similarly humorous way.
Why I like it: It seems strange that I should enjoy a program focused purely on selling property, when I’m very much in the acquisition stage of my property investing career. That said, I find the insight into the pre-sales preparation phase very helpful,; both as a buyer of properties and also as a consumer of sales strategies and techniques, for that time later in life when I’ll be looking to offload some portfolio properties. Also, each episode is 45 minutes and concentrates on just one house/sale, allowing a more in-depth insight into each one.
Areas to be weary of: There is a lack of investor perspective to the program. Every house is always an owner-occupied family home never an investor. This means the program focuses on the emotional attachment that owner-occupiers feel to their home, rather than the business and non-emotional approach that an investor would bring. Also, it is purely focused on houses, with no unit sales being covered by the program.
What you can actually learn from it and use in your property investment life: The program is a big help for those looking to sell an investment property. It highlights techniques to make minor cosmetic changes leading up to a sale, along with how to ‘dress’ the premises for inspections, as well as techniques in selecting and appointing a proven and successful sales agent for the sale process. It also exposes us to the emotional connection that owner-occupiers have with their homes, an important element considering we may one day be marketing/selling our investment properties to owner-occupiers and not other investors.
Where you can access it: The show has recorded many seasons, and airs random episodes on Foxtel’s LifeStyle channel nationally. For those without Foxtel, most seasons are available on DVD from specialist outlets along with JB Hi-Fi.
Number 1– Property Ladder With Sarah Beeney (UK)
Concept/Synopsis: UK property expert Sarah Beeney focuses on just one to two properties per hour-long episode and chronicles the journeys of the risk-taker renovators who aim to flip these properties for profit, regardless of the market conditions the UK may be experiencing at the time.
Why it is entertaining: Sarah is very knowledgeable about property investment, renovation and selling knowledge. Watching amateur flippers openly ignore or go against her trusted advice, resulting in dire re-sale or rental rates after completion, can be entertaining and educational. It also uses humour to highlight the challenge that renovation presents, well before even so much as a nail is removed from a property.
Why I like it: Yes, my no. 1 program for Australian investors is from the UK! I like it so much because it really is focused entirely on first-time investors and the chronicling of their cosmetic and structural renovations, all the way through to the return on investment delivered back to them. Each project or guest is actually visited by Sarah several months later, as a recap, providing an extra insight that few other programs carry all the way through. Furthermore, each episode gives so many dedicated bullet-point screens of tips and tricks that I get so much value out of every episode I watch.
Areas to be weary of: This is a UK program so we must be mindful that the drivers and desires of would be tenants and owner-occupiers there can be much different to those of Australian would-be renters and owners, so these needs do not always translate. Also, while the program has been going for 10 years, many of the results recorded and the projects focused on have occurred in a rising market, making the true dollar (or pound, I should say) value of the profits difficult to ascertain.
What you can actually learn from it and use in your property investment life: If you can get your hands on this show, you’ll take away something from just about every episode. Tasks such as understanding your suburb/market, your target inhabitant, and council due progress and restriction are covered. It also demonstrates the more conventional ‘trials and tribulations of renovating property’ wisdom. The follow-up section at the end, along with detailed summaries of blown budgets and lacklustre profits, can also serve as a sobering reality check for those with the ‘romantic’ dream of property renovation.
Where you can access it: For Australians this show is very difficult to access. Apart from the airing of occasional episodes on Foxtel’s LifeStyle channel, it does not air here on free to air television, nor has it been released on DVD in Australian region 4 coding. Even finding a UK supplier online to buy from is tough. The other program is that although there has been over 10 seasons, not all seem to have been put on DVD in the UK in the first place.
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" target="_blank">Property Spectator.</a>
For more on property reality TV,<a href="http://propertyobserver.com.au/ebooks/free-ebook-lessons-from-the-block-and-other-property-reality-television-shows" target="_blank"> download our free eBook</a>
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Real-life property lessons from The Block, Hot Property and other reality shows:  Cameron McEvoy

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As the Commonwealth Bank’s chief economist Michael Blythe says, the RBA pays “a lot of attention” to the unemployment data – and so should property investors and buyers.
Most home owners need to have a job in order to secure and pay off their mortgages.
Unemployment rose – as expected – by 0.1 percentage points over November to 5.4%, but there’s more to the monthly labour force data than just the change to the headline unemployment rate.
Here are seven points to ponder from the December figures:
Nationally, employment is trending upwards
On trend measures (rather than using seasonally adjusted figures) employment is trending upwards at a modest pace, with 7,000 jobs added. According to bullish HSBC chief economist Paul Bloxham, the trend data “cuts through the month-to-month noise”. Rising employment could temper the RBA’s eagerness to cut the cash rate. Bloxham is the only bank economist tipping the cash rate to rise to 3.25% this year.
However, a fall in the participation rate is masking higher unemployment rate 
The participation rate (those employed or unemployed but looking for a job) was flat in December but is trending down. Westpac points out that if the participation rate were holding closer to its average since March 2008, then the unemployment rate would now be around 6% rather than 5.4%.
 Employment is growing in some non-mining sectors
Looking at December quarter data (October, November and December combined), Bloxham points out that employment is rising in some of the “exchange rate sensitive industries” including manufacturing, as the “effect of the high Australian dollar starts to wear off”. Again this suggests the economy may be starting to rebalance away from mining, suggesting a wider economic recovery.
But unemployment is rising in Queensland and is at 6.2% 
Those hopeful of a recovery in house prices in south-east Queensland should keep in mind that the state still has the highest unemployment rate on the mainland, well above the national average, and that it rose by 0.1 percentage points to 6.2% while the national unemployment rate fell. Westpac labelled the Queensland December unemployment result as “very poor”. The state’s unemployment rate has been above 6% since August last year – a drop in this rate could bode well for a pick-up in demand for housing, but should it continue to remain elevated a recovery could be further off.
Unemployment rate lowest in WA, but higher than six months ago
The biggest beneficiary of the mining boom, Western Australia, has the lowest unemployment rate of any state or territory at 4.3% – well below the national average. Six months ago, though, WA had an unemployment rate of 3.5%. ANZ notes that employment growth in Western Australia was strong over 2012 but “moderated towards the end of the year as the iron ore price fell sharply and the global outlook became more uncertain. Strong population growth has meant that the unemployment rate has increased a little in WA as a rising share of jobseekers has not found work”.
NSW employment trending upwards
NSW employment growth is up a solid 1.6% year-on-year, with ANZ noting that this was  accompanied by a “broadly unchanged jobless rate over the year”. This bodes well for expectations of moderate recovery in house prices in Sydney and other parts of the state in 2013.
 
Unemployment rate among youngest-seeking work at 14.1%
Loans to first-home buyers fell from 18.7% to 15.8% over November according to ABS housing figures. December unemployment figures show that those aged between 16 and 24 seeking full-time work, the unemployment rate stands at 14%, up from 13.5% in November. A year ago the unemployment rate for this category of prospective workers was 13.3% and it was less than 10% before the GFC – many of these people seeking work are potential first-home buyers.
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Unemployment rises to 5.4%: Seven insights for property investors and buyers

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The unemployment rate increased marginally by 0.1 percentage points to 5.4% in December,  according to figures released today by the Australian Bureau of Statistics (ABS).
This was in line with consensus forecasts.
The December data release included upward revisions to the November unemployment reading with job gains upwardly revised from 13,900 to 17,100 jobs while work hours were also revised up in November, now showing 0.8% growth rather than 0.1%.
"In short, the job market remains resilient," says CommSec economist Savanth Sebastian.
The Commonwealth Bank had forecast the unemployment rate to remain unchanged at 5.3%.
Commonwealth Bank chief economist Michael Blythe says the RBA pays “a lot of attention to the jobs data". 
"It is the one monthly statistic that covers the whole economy.
“Trends in the unemployment rate are a good near?term predictor of RBA rate moves,” he says.
Economists tipping multiple cuts in the cash rate this year are forecasting a rise in unemployment to around 5.7% over the course of the year along with lower economic growth.
According to the ABS, the number of people employed decreased by 5,500 to 11,538,900 in December.
The decrease in employment was driven by decreased full-time employment, down 13,800 people to 8,112,500 and was offset by increased part-time employment, up 8,300 people to 3,426,400. The increase in part-time employment was driven by an increase in male part-time employment. The number of people unemployed increased by 16,600 people to 656,400 in December, the ABS reported.
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RBA interest rates watch: slight rise in unemployment to 5.4% in December, but as forecast

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There are 23 suburbs in Melbourne where first-home buyers can purchase a one-bedroom apartment and pay equal or less than the average estimated first-home buyer mortgage repayment in Victoria of $414 per week.
The suburbs can be found in an interactive heat map showing weekly mortgage repayment price bands across Melbourne suburbs compiled by the Real Estate Institute of Victoria (REIV) as part of its new <a target="_blank" href="https://www.reiv.com.au/Property-Research/First-Home-Buyer-Guide">first-home buyer guide.</a>
The $414 per week median mortgage repayment is based on the average first-home buyer loan size of approximately $286,600, a standard variable interest rate of 6.40%, receipt of the $7,000 First Home Owners Grant, a loan term of 30 years, a 10% deposit, and benchmark Lenders Mortgage Insurance (LMI) and conveyance fees.
First-home buyers may be surprised to learn that the list includes inner city, café-lined suburbs like Carlton and Moonee Ponds, the bayside suburb of Williamstown and up-and-coming suburbs like Preston and Reservoir.
The full list starting from the cheapest is:
<ol>
<li>
<a href="/news">Noble Park</a>, $202 per week, median price of $155,000</li>
<li>
<a href="/news">Albion </a>- $232 per week, median price $177,000</li>
<li>
<a href="/news">Box Hill</a> - $257 per week, median price of $194,750</li>
<li>
<a href="/news">Carlton </a>- $257 per week, median price of $195,000</li>
<li>
<a href="/news">Frankston </a>- $260 per week, median price of $197,500</li>
<li>
<a href="/news">Footscray </a>- $325 per week, median price of $245,000</li>
<li>
<a href="/news">Ormond</a> - $339 per week, median price of $255,000</li>
<li>
<a href="/news">West Footscray</a> - $346 per week, median price of $260,250</li>
<li>
<a href="/news">Epping </a>- $347 per week, median price of $261,000</li>
<li>
<a href="/news">Brunswick West </a>- $365 per week, median price of $274,000</li>
<li>
<a href="/news">Moonee Ponds</a> - $366 per week, median of $275,000</li>
<li>
<a href="/news">Mentone </a>- $370 per week, median price of $277,750</li>
<li>
<a href="/news">Reservoir </a>- $380 per week, median price of $285,000</li>
<li>
<a href="/news">Preston </a>- $381 per week, median price of $285,500</li>
<li>
<a href="/news">Williamstown </a>- $387 per week, median price of $290,000</li>
<li>
<a href="/news">Coburg </a>- $388 per week, median price of $291,000</li>
<li>
<a href="/news">Murrumbeena </a>- $391 per week, median price of $293,000</li>
<li>
<a href="/news">Flemington </a>- $392 per week, median price of $294,000</li>
<li>
<a href="/news">Bundoora </a>- $394 per week, median price of $294,000</li>
<li>
<a target="_blank" href="/news">Glen Huntly</a> - $401 per week, median price of $300,500</li>
<li>
<a target="_blank" href="/news">Thornbury</a> - $401 per week, median price of $300,000</li>
<li>
<a target="_blank" href="/news">Essendon </a>- $414 per week, median price of $310,000</li>
<li>
<a target="_blank" href="/news">Carnegie </a>- $414 per week, median price of $310,000</li>
</ol>
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From Noble Park to Essendon: 23 Melbourne suburbs with one-bedroom apartments priced below the first-home buyer mortgage median

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Rental vacancies rose in all mainland capital cities over December with Melbourne recording the highest vacancy rate of 3.6% - up 0.4 percentage points - with over 15,000 properties available for rent, according to the latest SQM Research figures.
The only capital city to buck the trend or rising rental vacancies was Hobart, where the vacancy rate eased marginally from 2.1% to 2% with 549 properties available for rent.
Perth remains the tightest capital city rental market with a vacancy rate of 0.9%, up from 0.7% in November, but unchanged on a year ago with 1,710 properties available for rent.
Sydney still favouring landlords with a vacancy rate of 2.1%, up from 1.8% in November, well below what is considered a balanced rental vacancy rate of 3%.
Melbourne, with a vacancy rate of 3.6% favours tenants and is described by Australian Property Monitors as the most “tenant friendly” capital city market in Australia.
Nationally, the vacancy rate increased by 0.4 percentage points to 2.3% with to a total of 63,089 rental listings following a rise in November – the first rise seen months “after periods of modest declines and stagnation in the months preceding” - but in line with SQM expectations.
“However, when comparing this figure to that of the corresponding period of the previous year (December 2011), there is very little to no change in vacancies,” says Louis Christopher, managing director of SQM Research.
“Thus, this surge is seen predominantly by SQM Research as a seasonal increase, with many rental properties becoming vacant during this period due to possible reasons such as university students vacating student accommodation or rental properties situated near their respective campuses, due to the end of year break,” he says.
Christopher says that at this time of the year “seasonality really can have an impact upon vacancy rates and overall property listings, and this year has proven to be no exception”.
“SQM Research does not seasonally adjust its numbers because we are of the opinion that the user of the data actually receives more value from observing the seasonal change that occurs in the property market,” he adds.
SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties rather than what it considers an inferior methodology of using a "potentially incomplete sample of agency surveys or merely relying on raw online listings advertised".
 
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