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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Builders and developers have begun 2013 with a range of financial incentives and discounts on new homes and house-and-land packages aimed at enticing new home buyers in what is likely to be another challenging year for the residential building sector.
New housing finance and building approval figures suggest there will be no swift rebound in demand for new housing.
There was a <a target="_blank" href="/news">10.3% fall in home loan commitments</a> for new dwellings and <a target="_blank" href="https://www.propertyobserver.com.au/australian-capital-territory/wa-the-only-bright-spot-as-detached-house-dwelling-approvals-fall-03-in-november/2013011058711">a 0.3% drop in building approvals for new houses in November</a>, according to seasonally adjusted ABS figures.
New home buyers can secure discounts in the thousands and sometimes tens of thousands of dollars on select blocks of lands and new homes in Melbourne, the Gold Coast and Sydney.
There are also <a href="/news">generous first-home buyer incentives</a> on offer from NSW, Queensland, Tasmanian and South Australian state goverments for those buying or building new homes. 
Buyers should keep in mind that discounts and rebates may be factored into valuations by lenders when financing is sought.
These are some of the specials currently on offer.
$30,000
Listed residential developer Peet is offering savings of up to $30,000 on “certain lots” in residential communities on the outskirts of Melbourne.  The <a target="_blank" href="https://www.peet.com.au/megahouseandlandsale?utm_source=adexchange&amp;utm_medium=banner&amp;utm_content=news&amp;utm_campaign=megalandsalevic">‘Mega House and Land Sale’</a> is available until the end of January. The participating Peet communities are Aston in <a target="_blank" href="/news">Craigieburn</a>, Kingsford at <a target="_blank" href="/news">Point Cook</a>, Cardinia Lakes in <a target="_blank" href="/news">Pakenham</a>, Quarters in <a target="_blank" href="/news">Cranbourne West</a> and Livingston in <a target="_blank" href="/news">Cranbourne East</a>.
$22,000
Listed developer Devine is offering to pay mortgage repayments for up to a year on behalf of approved purchasers who sign an unconditional contract to purchase a new Devine house and land package before February 28 2013 under its <a target="_blank" href="https://www.devinemortgagebreak.com.au/">Devine Mortgage Break</a> promotion. Repayments must be the minimum required repayments on a 30-year loan and interest only during construction.  Property Observer calculates this would equate to savings of around $22,000 given a $300,000 mortgage over 30 years at the average standard variable rate of 5.98% (according to RateCity.com.au).
$22,000 - $30,000
Melbourne builder <a target="_blank" href="https://carlislehomes.com.au/">Carlisle Homes</a> is offering a $30,000 discount off the retail price of double-storey homes and $22,000 off the retail price of single-storey homes in its luxury Affinity and T Range collections. There is currently no end date to this promotion.
$10,000
Up until February 25 2013, Stockland is offering approved purchasers a<a href="https://www.stockland.com.au/residential/changeforlife/change-for-life-nsw.aspx" target="_blank">$10,000 VISA gift card </a>to spend as they wish. The VISA gift card will be on offer to buyers of selected land and house-and-land packages at four of Stockland’s NSW communities, includingMcKeachies Run in <a target="_blank" href="/news">Maitland</a>, Murray’s Beach on Lake Macquarie, Brooks Reach in the Illawarra and Bayswood at Vincentia on the NSW south coast. Prices start from $326,544 for a three-bedroom, one-bathroom, one-garage home.
$8,000
<a target="_blank" href="https://www.8homes.com.au/wp-content/uploads/2013/01/Home-Mag-12th-Jan-2013_web.pdf">Melbourne builder Eight Homes</a> is offering $8,000 off the price of eight different designs of three- and four-bedroom houses. The reduced prices are based on a standard floorplan with E1 façade. The cheapest house starts from $131,900 (previously $139,900) for a four-bedroom, two-bathroom single-storey house rising to $241,900 (previously $249,900) for a four-bedroom, two-bathroom double-storey house. There is currently no end date to this promotion.
$76,000 - $126,000
Discounts of up to $126,000 are on offer for residential lots in <a target="_blank" href="https://www.highlandsale.com.au/">The Highlands community</a> in the Ecovillage, Currumbin Valley on the Gold Coast. The lots are just eight kilometres from Currumbin Beach and are up for sale under bank instructions, with the properties being marketed by Colliers International.  Lots range in size from 2,800 square metres to 8,300 square metres set amidst 60 hectares of green mountain forest and creeks.
$5,000 to $25,000
Residential developer Mirvac is offering a range of rebates, free inclusions and land discounts as part of its <a target="_blank" href="https://rightplace.mirvac.com/">Right Here, Right Now Summer Bonus</a> campaign on specific NSW master-planned communities. In Elizabeth Hills, Mirvac is offering $25,000 rebate on specified land lots In, Ayre, there are discounts on offer on land from $5,000 to $25,000 as well as air-conditioning free of charge and upgrades included in house-and-land package prices valued up to $10,000. In Saddlers Ridge it is offering a split-system air-conditioning and upgrade packages included free of charge and value at $7,000. In its Hidden Waters community there is the offer a $5,000 landscaping bonus.
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lschlesinger-FZcF9M3vE6

House-and-land incentive and discounts from $5,000 to $126,000

<html><body>
Last year brought more economic worries: Renewed fears about Europe; more US “double dip” fears; weaker growth in the emerging world; US drought threatening higher food prices; and ongoing Middle East tensions.
However, despite the wall of worry it turned out to be a good year for investors. Key themes for 2012 were:
<ul>
<li>Soft global growth, but no recession. While global growth softened from 3.8% in 2011 to around 3% and profits were downgraded, both were better than feared a year ago. In other words, the falls in share markets in 2011 anticipated the economic slowdown of 2012.</li>
<li>Easy money. Slowing growth and benign inflation resulted in plenty of monetary easing globally – both rate cuts and quantitative easing. This contrasted to the global monetary tightening that continued into early 2011.</li>
<li>More Europe, not less. The European Central Bank’s bank funding operation and its threat to buy bonds in troubled countries combined with an ongoing theme from European leaders of “more Europe, not less” and more support for Greece reinforcing a determination to defend the euro, all helped head off the threat of a major financial crisis emanating out of Europe.</li>
<li>The US comeback. While US growth has been subdued, the commencement of open-ended quantitative easing by the Fed has kept growth going at the same time that signs of rebuilding gather with a housing recovery, surging oil and gas production, a manufacturing renaissance, and an ongoing tech boom.</li>
<li>Cyclical bottom in the emerging world. Increasing signs that growth in the emerging world has bottomed has also added to global confidence. Chinese growth specifically appears to have bottomed out around 7.5%.</li>
<li>Mining slows while the non-mining sector stays weak. Australia has also had a decent share of worries with a rapid slowing in mining investment at a time when non-mining sector activity remains weak. Growth for 2012 looks like coming in around 3.5% but this masks a slowdown to a 2% to 2.5% annualised pace. Inflation has been benign, despite carbon pricing, allowing the RBA to cut the cash rate back to its GFC low of 3%.</li>
<li>Search for yields amid rate falls. An overwhelming investor theme in 2012 was the chase for yield in the face of zero interest rates in major advanced countries and falling rates elsewhere against a backdrop of investor caution. This benefited high-yield assets. The following table shows returns for major asset classes.</li>
</ul>
<h3>Investment returns for major asset classes:</h3>
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top">
Total return %, pre fees and tax
</td>
<td valign="top">
2011
actual
</td>
<td valign="top">
2012*
actual
</td>
<td valign="top">
2013
forecast
</td>
</tr>
<tr>
<td valign="top">
Global shares (in Aust dollars)
</td>
<td valign="top">
-5.3
</td>
<td valign="top">
11.5
</td>
<td valign="top">
15.0
</td>
</tr>
<tr>
<td valign="top">
Global shares (in local currency)
</td>
<td valign="top">
-5.3
</td>
<td valign="top">
13.4
</td>
<td valign="top">
11.0
</td>
</tr>
<tr>
<td valign="top">
Asian shares (in local currency)
</td>
<td valign="top">
-13.6
</td>
<td valign="top">
14.7
</td>
<td valign="top">
15.0
</td>
</tr>
<tr>
<td valign="top">
Emerging mkt shares (local currency)
</td>
<td valign="top">
-12.7
</td>
<td valign="top">
12.6
</td>
<td valign="top">
15.0
</td>
</tr>
<tr>
<td valign="top">
Australian shares
</td>
<td valign="top">
-10.5
</td>
<td valign="top">
16.4
</td>
<td valign="top">
12.0
</td>
</tr>
<tr>
<td valign="top">
Global bonds (hedged into $A)
</td>
<td valign="top">
10.5
</td>
<td valign="top">
9.3
</td>
<td valign="top">
2.5
</td>
</tr>
<tr>
<td valign="top">
Australian bonds
</td>
<td valign="top">
11.4
</td>
<td valign="top">
7.5
</td>
<td valign="top">
3.5
</td>
</tr>
<tr>
<td valign="top">
Global listed property securities
</td>
<td valign="top">
1.4
</td>
<td valign="top">
23.0
</td>
<td valign="top">
12.0
</td>
</tr>
<tr>
<td valign="top">
Aust listed property trusts
</td>
<td valign="top">
-1.5
</td>
<td valign="top">
29.3
</td>
<td valign="top">
12.0
</td>
</tr>
<tr>
<td valign="top">
Unlisted non-res property, estimate
</td>
<td valign="top">
9.0
</td>
<td valign="top">
8.0
</td>
<td valign="top">
9.0
</td>
</tr>
<tr>
<td valign="top">
Unlisted infrastructure, indicative
</td>
<td valign="top">
11.0
</td>
<td valign="top">
10.0
</td>
<td valign="top">
10.0
</td>
</tr>
<tr>
<td valign="top">
Aust residential property, estimate
</td>
<td valign="top">
-4.0
</td>
<td valign="top">
2.0
</td>
<td valign="top">
6.0
</td>
</tr>
<tr>
<td valign="top">
Cash
</td>
<td valign="top">
5.0
</td>
<td valign="top">
3.7
</td>
<td valign="top">
2.7
</td>
</tr>
<tr>
<td valign="top">
Avg balanced super fund, ex fees &amp; tax
</td>
<td valign="top">
-2.1
</td>
<td valign="top">
10.6
</td>
<td valign="top">
8.0
</td>
</tr>
</tbody></table>
*Year to date to Nov. Source: Thomson Reuters, Morningstar, REIA, AMP Capital
Shares provided decent gains and setbacks were milder as a lot of the bad news had already been factored in; policy action was decisive and signs of improvement were evident in the US and emerging countries.
By region, European shares outperformed as investors sought their better value after several years of underperformance, followed by US shares – helped by easy monetary conditions – Asian shares, and emerging markets generally, with Japan’s lagging performance not helped by a return to recession.
Australian shares performed well as the rate hikes that caused underperformance since late 2009 were reversed and the Chinese economy stabilised. Healthcare, telco, consumer staple and bank shares outperformed, partly reflecting the defensive and yield bias of investors.
Global and Australian property securities had a very strong year as investors switched into high yield assets. Unlisted commercial property and infrastructure also performed well as investors sought their attractive yields. Bond returns remained solid as interest rates remained low or fell and central banks bought government bonds.
The $A rose slightly on US quantitative easing and central bank and safe haven buying reflecting its safe AAA rating, but has really been range bound for two years.
The strong returns from most assets resulted in solid returns for traditional balanced superannuation funds.
 
<hr>
 
<h3>Outlook for 2013 – tail risks diminishing</h3>
A year ago it seemed everyone was obsessed with Europe. At the time we thought there was a case for a bit of cautious optimism. This turned out OK. While sentiment is now not as bleak, we remain cautiously optimistic for several reasons.
First, the cyclical pattern since the 1970s has been to have major recessions every 8-10 years (mid 1970s, early 1980s, early 1990s, early 2000s, late 2000s) with modest growth slowdowns in between. We still appear to be following this pattern, with the global growth slowdown of 2012 largely anticipated by the 20% top to bottom falls in share markets seen in 2011. If this, albeit imperfect, pattern is correct then the 2012 global growth slowdown has cleared the way for a continuation of the global recovery for the next three years or so which should help underpin growth assets.
Second, the risks around Europe remain high, particularly with the Italian election expected in February and a likelihood that Spain will have to apply for assistance from the bailout fund and the ECB in the next three months. However, the ECB’s funding intervention in banks, its threatened bond-buying program and the euro zone’s ragged but seemingly dogged determination to head towards more Europe, not less, suggests that the risk of a blow-up in Europe will continue to recede. In the meantime, declining inflation and continued recession will see more monetary easing helping clear the way for an exit from recession during the second half.
Third, while the fiscal cliff of budget tightening is a near-term hurdle for the US, there is a 90% probably it will be solved by end of January (as the political consequences for both parties in triggering a recession are just too big). But once the US clears this hurdle it should have a reasonable year in 2013 as the housing recovery adds around 0.75% to growth, shale oil and gas continues to revolutionise the US, capital spending rebounds after uncertainty associated with the fiscal cliff and quantitative easing spurs growth.
Fourth, China looks like it’s on track for growth at around 7.5% at least with the slowdown behind it. Growth in Asia, Brazil and India should also stabilise and begin to improve, following significant monetary easing.
Pulling all this together suggests:
<ul>
<li>global growth somewhere around 3.25% in 2013, ranging from a mild but fading recession in the euro zone, 2.5% growth in the US, 5.5% growth in the emerging world and 7.5% growth in China;</li>
<li>benign inflation in response to 2012’s growth slowdown and spare global capacity;</li>
<li>continued low interest rates and quantitative easing leading to a very easy and growth-supportive monetary environment; and</li>
<li>a stabilising then improving earnings growth reflecting the improving economic backdrop.</li>
</ul>
For Australia, growth is likely to remain subdued initially as mining slows and non-mining is slow to pick up. This is likely to see unemployment rise to around 6%. Against this backdrop the RBA is likely to cut rates further to 2.5% in order to push bank lending rates down closer to past cyclical lows.
However, as the impact of rate cuts starts to feed through with normal lags, growth should start to improve by year end. Overall, we see growth around 2.5%, but this is masking a second half upswing; inflation remaining benign; and the cash rate falling to around 2.5% in the first half.
<h3>So what does this all mean for investors?</h3>
Against a background of a modest pick-up in global growth and gradually receding risks in Europe, growth assets are likely to continue to do well but the returns from bonds are likely to be limited.
Shares are likely to provide another solid year of returns. Shares are very cheap against bonds as bond yields have fallen further and should benefit from ultra-easy monetary conditions globally and the anticipation of stronger profit growth in 2013-14. What’s more, while sentiment towards shares is not as bearish as it was in late 2011, it is still very cautious at a time when share weightings have collapsed. This suggests there is plenty of money to come into shares once confidence starts to pick up. Worries about Italy and Spain could trigger a bout of volatility around February/March, but overall returns are likely to be solid.
While US shares have been a star performer, helped by more aggressive monetary easing, this may be starting to change. Our assessment is that European and Asian shares are likely to be the star performers in the year ahead, reflecting relatively low price-to-forward earnings ratios of around 10 times, compared to around 12 times in the US, the gradual pricing out of disintegration risks in Europe and stronger growth prospects in Asia.
Falling interest rates and improved sentiment towards China are likely to see Australian shares do well, but uncertainties about the growth and profit outlook will act as constraints. We expect the Australian ASX 200 to rise to around 5,000 by end 2013. Bombed out cyclicals such as resources, along with yield plays like telcos, are likely to outperform.
The $A is likely to fall to around parity as the combination of a narrowing interest rate gap, slowing growth, and a widening trade gap offset the impact of more US quantitative easing.
Cash and term deposits are likely to become even less attractive, as cash rates slide to 2.5%, further pulling down term deposit rates well below 4%.
Historically low starting point bond yields suggest low returns from sovereign bonds, unless global growth takes a renewed leg down. Australian bonds are a bit more attractive than global bonds, given higher yields. Corporate debt is a better bet for those after income.
Property securities are likely to continue to benefit from investors seeking yield. However, returns are likely to slow after the 20-30% returns of 2012.
Unlisted commercial property and infrastructure are likely to benefit from relatively attractive returns and strong investor demand, given their relatively attractive yields, e.g. around 7% for commercial property.
Australian house prices are likely to see a modest 4-5% bounce on the back of lower mortgage rates.
<h3>What are the risks?</h3>
The main global risks relate to US budget and debt problems and a relapse in Europe perhaps triggered by renewed worries regarding Italy or Spain. An alternative risk is that growth surprises on the upside, triggering a mass investor switch out of bonds resulting in a sharp back up in bond yields.
In Australia, the main risk is that the non-mining sectors of the economy, e.g. housing, retailing, tourism, etc, take longer than expected to pick up pace leading to a sharper slowdown in growth beyond the 2.5% we are expecting. This could occur, for example, if rising unemployment triggers a desire on the part of households to more rapidly reduce their debt levels. This could see the RBA cut the cash rate to 2% or below.
<h3>Conclusion</h3>
While the year ahead is likely to see occasional bouts of volatility, returns overall are likely to be reasonable, as global growth picks up a bit and monetary conditions remain ultra-easy globally and become increasingly so in Australia.
<h3>Key points:</h3>
<ul>
<li>While 2012 has had its share of worries, it has turned out far better than feared and share markets and growth assets have been able to generate strong returns for investors. This has been helped by investors looking for higher yields in the face of zero or falling cash rates.</li>
<li>The combination of diminishing extreme downside risks globally, a modest pick-up in growth as the year progresses and attractive valuations for most growth assets points to another year of reasonable returns in 2013. Expect interest rates to remain low globally and fall a bit further in Australia.</li>
</ul>
The main risks relate to US budget and debt problems, a relapse in Europe, slow growth in Australia and a sharp back up in bond yields if investors get more confident.
Dr Shane Oliver is the head of investment strategy and chief economist at AMP Capital. Please note that this article is intended as general information and not as investment advice.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany.</a>
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Economic storm clearing in 2013 as greater property investment returns expected: Shane Oliver 

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“Aaahhh….” That’s the sound I made when watching Hugh Jackman receive his Golden Globe Award this week for best actor.  I was impressed with the credit he gave his wife Deborra-Lee Furness for helping him keep faith.
Keep faith?  A talented and experienced singer, dancer and actor, yet he admitted he had doubts and lost confidence during rehearsals for Les Miserables. The man is not only truly amazing but honest.
Jackman nearly quit due to feeling overwhelmed and unsure of himself.
"Three weeks before we started filming, we had a terrible day of rehearsal, a humiliating day. I came home to Deb and I said, 'It's time, I've gotta ring him [director Tom Hooper] and tell him there's someone else to take this role.
"I really thought I'd bitten off more than I could chew … My wife talked me off the cliff – thank you for always being right, baby," he said.
Wow, even Hollywood stars want to give up some times. It just goes to show how human he is. Yes, Les Miserables would have been a very ambitious production for anyone to take on, but look at what Hugh achieved by pursuing the role and getting on with it – with the support of his wife.  Not only did he win the Golden Globe for best actor, but he’s been nominated for both an Oscar and a BAFTA award.
What a great example of taking on a challenge, conquering fears and using the support of others to help get through to the end.  And look at the rewards he reaped.
So what unnerved him?  Jackman must have thought about the risk. The risk of not doing his best, the risk of doing something he had never done before, the risk of failing.
We all have doubts at some time or another.  While I’m not comparing a property development to a musical movie adaptation, I couldn’t help but reflect that property development can seem just as daunting.  When developing, you really don’t get “rehearsal time”; it’s just a matter of good planning and then taking action.
I have seen people give up on their property development, quitting when they have hit a dead end with the council. Quitting after starting a renovation and not realising just how big a job it really was. Quitting after not hiring the right people.
As development project managers, it’s our role to manage the fears of our clients and the risks of the project.  With risk comes reward.  It can be a big decision to take on your first property development.  But once our clients make that decision, we move them forward quickly. They start seeing results quickly and realise that development can be a good challenge and they don’t have to do it alone.  Often the hardest thing is to make the decision to start.  If you have the support of someone to help you then you won’t feel alone. So enlist a friend or hire support in the area you need it and keep moving forward.
The start of a new year is a great time to stop procrastinating and commence that project you’ve been researching for so long. Have faith and use support like Hugh Jackman did.  You too could end up with an award-winning result.
Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank">Property Bloom</a>, which manages property development.
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The importance of faith, or what Hugh Jackman can teach us about property development

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Incentives! One of the key laws of economics. We act in a certain way because we are incentivised to do so.
Generally people don’t turn up to work purely for the enjoyment of so doing, although they might say that they do. Instead, the primary incentive is usually financial reward. Some older folk elect to keep working beyond the retirement age for the incentive of keeping active or sociable.
Coles and Woolies offer us shopper dockets in order to incentivise us to come back to their store instead of another outlet.
Incentives don’t only apply to financial and economic decisions. In almost every decision humans make we consciously or unconsciously weigh up the incentives of each of our options. This is the origin of the phrase "There's no such thing as a free lunch".
Let’s take the example of… well, why not the example of an actual free lunch?
Let’s say I’m 21 again (sigh) and I wander down to a pub in Sydney tomorrow (sigh!) and meet a beautiful lady whom I find funny and great company. I offer to buy her lunch next weekend. Obviously the lunch would not be free to me. Nope, certainly no free lunch there!
But would it be a free lunch for her? No. Her assumption would be that I would be expecting something in return as an incentive (even if that incentive was simply her time and company) and would intuitively weigh up her own incentives. She’d balance up the mediocre quality of the suggested restaurant, the inane nature of my moribund 21-year-old conversational skills and – the clincher – my woeful need of a haircut, before politely declining.
Whether we think about it or not, we weigh up incentives in this way all the time. Blokes spend more time getting ready to go out on a hot date than they do for a day at the footy due to the incentive of a potential romance.
Even when we are apparently giving something for free such as a charitable donation, we often expect to feel good in return as our incentive. This is why we choose charities that have a meaning to us and is why I donate to cancer charities in in preference to other deserving causes.
Governments use tax cuts and parking or speeding fines to incentivise us to behave in certain ways, and so on, but can we find a free lunch in investing?
Unfortunately, the law of "no free lunches" also applies to property investment.
Investors who gave money to Allen Stanford thought they’d found a free lunch. Consistent, high returns with remarkably little volatility! But they forgot to ask what the cost was. In this instance, sadly, the cost was one of the greatest frauds ever committed, a gigantic Ponzi scheme that ultimately collapsed. No free lunch – and the cost many investors suffered because they did not diversify was immense.
Incentives in property
In<a target="_blank" href="https://propertyupdate.com.au/dont-be-lured-by-property-investment-incentives/"> this recent article, Michael Yardney </a>urges investors to be wary of property investment incentives such as discounts, which can distort the market. Similarly, be wary of rental guarantees. What is the cost of a guarantee? Is it that the developer wants to sell you a property based upon a multiple of the high rent? What happens when the rental guarantee ends?
What if you buy a property via a property investment club? Is the club helping you to buy just to be nice? Perhaps, but you need to fully understand the incentives. It may be 6% of the property purchase price. What of the developer’s incentive in this case? The developer may be selling via a club because it is a simple way to find buyers. At other times, developers may be offloading properties they simply can’t get rid of.
Does that mean that all properties bought via clubs are sub-standard? Of course not, some might be excellent investments. You simply need to understand the incentives and the costs and to always do your own due diligence.
 
<hr class="system-pagebreak">
 The incentive of yield
Property investors today are constantly being lured to invest in regional markets. The incentives are always listed as the same. Higher yield to lower your risk! Higher capital growth! More affordable and “room to grow”!
If anyone had designed a free lunch, this juicy trifecta must be the veritable entrée, main course and dessert. Might you get both positive cashflow and growth? Actually, you well might if you choose your market well.
But always ask, what is the cost? Go back to basics. A yield is high because the market value is low. Prices are usually low because demand is low. A property that is in low demand is a bad investment.
Be especially wary of investing in small cities or towns where there is vast acreage potentially available for new property development – if prices do go up it could become swamped with dwellings and prices may retrace. The best property investments are those you own forever.
Remember that by investing counter-cyclically in cities that are at the nadir of their cycle investors can get some pretty darned good yields anyway.
If you think you can outsmart the market in today’s climes by getting into and out of a mining town with expert timing (materially beating stamp duty, legal fees, sales costs and capital gains taxes) you're probably wrong.
Property cycles
The best benchmark I have for a property market which is at a different stage of the property cycle to that of Australia is the British market.
A great many investors opted to buy properties before 2007 in outer areas and remote markets tempted by yields of 7% or even above. The cost was that when the credit cycle reversed properties in low demand have been absolutely clobbered, in many cases by more than a quarter. And it’s now 2013, with little in the way of a recovery having taken place.
Those who invested in some city markets in the south-east of England, including in and around London, had previously paid a cost of a somewhat lower yield. But today, the incentive they are paid back is that by buying properties in the part of the country with a shortage of property and massive demand, their property portfolios are stronger than ever before.
Property in Australia has delivered outstanding returns over the past decade and a half which incentivises investors into the market.
The future is unknown, of course. Low interest rates in 2013 could well result in some reasonable growth this year. But what is the cost? My fear is that when we reach the end of the interest rate easing cycle and rates move upwards, some markets where property is in low demand will get clobbered.
Remember the law of incentives. There’s no such thing as a free lunch and always ask yourself: “what is the cost?”
<img src="/images/stories/2012/12/wargentbook.jpg" style="margin: 5px; float: left;">
Pete Wargent holds a range of finance and property qualifications and is the author of <a target="_blank" href="https://petewargent.blogspot.com.au/">Get a Financial Grip – a simple plan for financial freedom.</a>
 
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There is no such thing as free lunch, so beware of property investment incentives

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While The Hobbit movie continues to be a box office draw, some people are taking the next step into the magical world and building hobbit-esque homes.
We are all conscious of our carbon footprint in this day and age, but some people have decided to do their part by using the earth as building material – Property Observer looks at the three best hobbit homes from around the globe.
<img height="315" width="470" src="/images/stories/2013/01/hobbit1.jpg" alt="hobbit1">
Located by the seaside in Atlantic Beach Florida, the Dune House (pictured above) was designed and constructed in 1975 by architect William Morgan.
As per its name, the Dune House was built inside a dune.
The wall shapes were inspired by Morgan’s experience in the navy and the curved walls of submarines.
With the shape in mind, Morgan built two cave-likes structures within the earth with large openings towards the oceanfront.
The 1,5000-square-metre Dune House is separated into two living quarters of one bedroom and one bathroom.
The property was recently listed for sale for $US1.4 million.
<img height="269" width="384" src="/images/stories/2013/01/hobbit2.jpg" alt="hobbit2">
With the help from his father in law and visiting friends, Simon Dale built his hobbit-like home in Wales (pictured above) for his family over a period of four months and spent a total of £3,000, or $4,570 AUD.
Dale dug into the hillside for shelter and used stone and mud for the retaining walls and foundations.
The frame of the house was built from oak thinnings from the surrounding woodland, and straw bales were placed in the floor, walls and roof for insulation.
A skylight in the roof lets in natural sunlight, and solar panels are used for lighting, music and computing.
Dale said he is not a builder and this type of building is accessible to anyone. He only used a chainsaw, hammer and a one-inch chisel.
The philosophy of earth-sheltered construction is based on three fundamental principles, including energy saving, energy recovery and drawing energy from the environment.
<img height="314" width="470" src="/images/stories/2013/01/hobbit3.jpg" alt="hobbit3">
Located in Big Sur California, architect Mickey Muennig mastered the eco-minded architecture more than 30 years ago before it became a fashionable trend.
The Cooper Point house (pictured above) blends in with the landscape – literally – with a roof of wild grass and California poppies.
The house is built like a bunker, with concrete retaining walls at both ends and all-glass walls in between.
Muennig developed his own style of design by experimenting with earth, stone, redwood and eccentric roof shapes.
The half-buried walls provide insulation and savings in energy, with the owner estimating a total of 50% savings on energy compared to a traditional house.
“It doesn’t require much maintenance, but sometimes we go up there with a weed whacker when it gets too shaggy,” the owner told WSJ magazine.
Kevin McCloud’s Grand Designs featured one endeavour with <a target="_blank" href="https://www.visitcumbria.com/pen/underground-house.htm">a two-storey house that burrowed backwards into rock in Eden in Cumbria </a>around 2002.

Not much resembles hobbit houses in Australia – notwithstanding the mostly unappealing underground homes of Cooper Pedy. And a mud brick home or two that appeal to the few.
Australia does have a slightly forlorn-looking attempt at building an underground sanctuary in Brisbane’s Mount Cotton (pictured below).
{yoogallery src=[images/stories/2013/01/jan16mtcotton]}
Built in 1985, the house is completely below the surface.
Owner Ian Bridge said he hasn’t needed to use air-conditioning since he moved in as the house creates its own micro-climates.
It is currently listed for sale seeking a $620,000-plus price after failing at its October 2012 auction.
Even in New Zealand there are not many real life examples, although jewellery tycoon Michael Hill did win awards for his The Hills golf club house, an innovative underground bunker-style building in 2008. But his plans to build 17 subterranean houses on and around the swish golf course in Central Otago don't appear to have eventuated.
One company ColFibrex is offering easily erected earth sheltered housing (artist's impressions below) that uses the insulation and stability of the surrounding earth, plants, rocks and trees to provide an even temperature throughout the year.
{yoogallery src=[images/stories/2013/01/jan16hobbits]}
<a target="_blank" href="https://www.colfibrex.com/en/index">The greenhouse system is assembled with prefabricated modules made of space-age resins and fibers</a>.
You just have to tell them how you would like your house and within a few days it will be designed and all the necessary pieces will be shipped to you.
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Tolkien-style hobbit homes yet to reach The Shire, but there's something at Mt Cotton

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Foreign tourists are travelling to Australia in record numbers, an increase the tourism industry is attributing to savvy marketing by Tourism Australia in Asia.
Figures from the Australian Bureau of Statistics released yesterday show the number of people travelling to Australia was up 6.9% on the same time last year.
While New Zealand continued to be the biggest source of tourism arrivals for Australia, Chinese visitors rose by about 14% in November. China is now Australia's second largest source of foreign tourists, beating the United Kingdom.
The growth in tourists from Asia was not limited to China, with Malaysian and Thai tourists increasing by 35% and 27% respectively.
The industry's peak body, the Tourism and Transport Forum, attributed the boost in numbers to an increase in flights by Asian airlines and successful marketing campaigns in the region by Tourism Australia.
John Lee, chief executive of the TTF, told SmartCompany there were increases across the board, with the exception being the UK.
"The passenger movement tax in the UK is just decimating outbound travel from the UK. It means a family of four pay just under $800 in taxes alone to travel from the UK to Australia," he says.
Lee says the strength of the tourist numbers coming from China, north Asia and south-east Asia is "heartening".
He attributes much of the growth to Tourism Australia's advertising campaign that was launched in June last year and garnered over 24 million hits on the ad, with 20 million hits in China.
"Millions and millions have seen the ad and have transferred their psychological intention to booking tickets and that is great news for our sector," he says.
"Now it is the Asian Century with huge growth from Malaysia, India and Thailand and, if we get it right, rather than the rivers of coal of the past 10 years in Australia there is an opportunity to have rivers of visitors from Asia."
Lee describes Tourism Australia's digital campaign and strong reach into new markets as "phenomenal" and singles out the leadership of managing director Andrew McEvoy and chairman Geoff Dixon.
"We are seeing the fruits of that intelligent strategy deployment. It is all about marketing where you are going to make a difference," he says.
"Andrew jokes China is an overnight success but it has taken 10 years to come to fruition."
Some 66,000 visitors traveled to Australia for business purposes. 
The ABS figures also revealed Australians are continuing their love affair with overseas travel, with the number of people flying abroad for holidays or business rising by 2.5% in November.
For the year to November, a record high of almost 8.18 million Australians travelled overseas.
"We still have a passenger deficit of six million inbound and eight million outbound but we were seeing outbound growth of over 10% last year and that is shrinking and is now back to 5.6% and dropping," Lee says.
"So it seems as though that is capped and it is dropping. I think there was an absolute spurt of outbound movement with the rise of the dollar and a perception of a once-in-a-lifetime opportunity to see other parts of the world."
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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Foreign tourist numbers up 6.9% from last year, with Asian marketing increasing

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A Sydney property investor has failed in his bid to convince a court that his estranged wife should pay half of his tax bill after claiming that they jointly owned a retail commercial property and thus should split the rental income.
The bid appears to have failed principially due to lack of evidence - with tax experts warning of the importance of keeping relevent documentation.
Sydney investor Barrie Harbutt had submitted a tax return claiming only half the rental income on a commercial property based in Dee Why on Sydney’s Northern beaches over 2003, 2004 and 2005 and leased to two retail businesses.
He bought the property on Pittwater Road for $800,000 in 1990.
He attempted to convince the Administrative Appeals Tribunal (AAT) of his claim despite being the sole owner and receiving all the rent.
But the ATO formed a different view, and apportioning all the rental income to Harbutt.
As a consequence, he made a smaller net loss to offset against his income under negative gearing rules and hence had a higher tax bill.
Having assessed both Harbutt’s financial affairs and that of his wife, the ATO made the assessment that Harbutt was “liable to tax on the entire net rental income from the property, and Mrs Harbutt became liable to tax on none of it”.
Harbutt had argued that he was a in a “tax law partnership” with his wife and claimed that they always intended to own the property jointly, despite being separated.
He said his wife had access to his bank account regularly withdrew funds but failed because he had no evidence to support this claim nor was their evidence of a partnership agreement between Harbutt and his wife.
In his ruling, AAT deputy president Stephen Frost criticised Harbutt’s lack of evidence but suggested that the argument put forward by Harbutt did have merit.
“In circumstances where a person is the registered proprietor of a rental property, receives the rental income for that property into an account in his name alone, and pays the expenses for the property from that same bank account, a presumption is created that the income from the property belongs to that person alone, and that any deductions are allowable to that person alone,” said Frost.
But he also added that while a statement that income is shared with someone else, “is a self-serving statement which, while it should not be rejected out of hand, is to be approached critically and must be subjected to careful scrutiny”.
Frost said that if he accepted Harbutt’s assertion that 50% of the income from the property belongs to his wife, then his tax liability would be significantly reduced and there would a corresponding increase in his wife’s tax liability.
“That circumstance would make any evidence that Mrs Harbutt might be able to give about the existence of a tax law partnership absolutely critical. Unfortunately there is no such evidence. Mr Harbutt explained that he and his wife are currently separated. But it is not the case that they have lost contact with each other. He knows where she lives,” he added.
Harbutt was not helped in his claim by his correspondence with the ATO – included in the judgement  - telling the tax commissioner his wife knew nothing of his court proceedings and that they were “none of her business”.
Commenting on the case, Chan &amp; Naylor director Ken Raiss <a target="_blank" href="https://www.propertyobserver.com.au/tax/tax-experts-warn-documentation-critical-after-property-investor-loses-attempt-to-split-tax-burden/2013011558792?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">told SmartCompany </a>that proper documentation is "absolutely critical,”
“We always tell our clients to start paperwork from day one," he said.
Tax lawyer Robert Richards of Robert Richards &amp; Associates told the Australian Financial Review the Australian Tax Office's view that legal ownership is supreme was wrong and comments made by the AAT in its judgement might work against the ATO.
This simple little case looks as if the Tax Office has won,” said Richards,.
“[But the AAT] seems to indicate that the rule as to legal ownership is not conclusive.”
The case is the exact opposite of the common scenario where property investors take advantage of favourable negative gearing rules that allow them to deducting net tax losses on rental properties against their income and reduce their tax bill.
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Dee Why property investor loses battle with ATO over split rental income with estranged wife

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Lenders are returned to the days of 100% home financing and above, but with the catch that parents with equity in their own homes have to act as guarantors.

A 100% loan called the Get Ahead Start Home Loan is being offered by SGE Credit Union and is said to be the first time in three years that a lender has prominently offered loans with no deposit required.
"The Get Ahead Start home loan option allows parents to use some of the equity in their own home to guarantee part of a home loan taken out by their children," explains SGE on its website.


"This gives the children the ability to borrow more, or borrow up to 100% of the value of the property plus stamp duty and other upfront costs. It can also help avoid the cost of mortgage insurance that applies to high LVR loans.

SGE Credit Union operates in NSW and Victoria with nine service centres in Bathurst, Lismore, Liverpool, Malabar, Melbourne, Mid-City, Newcastle, Parramatta and Wagga Wagga and has about 36,000 members.

Westpac-owned RAMS currently offers a feature called "fast track" on four of its home loans - the full feature home loan, the fixed rate home loan, the low rate home loan and the investor home loan - which allows borrowers to secure a loan up to 120% of the full purchase price plus upfront costs if if a guarantor or a parent of the applicant, "simply provides RAMS with a limited guarantee supported by a registered mortgageover their property, for the amount you need to borrow over 80% of the property value".
This also removes the requirement that borrowers who don't have a 20% take out lenders mortgage insurance (LMI), which according to RAM can be in excess of $10,000 on a $350,000 property, where the borrower only has a 5% desposit.
No deposit loans were prominently promoted and widely-available during the boom years of the early 2000s but the advertising of these products disappeared following the GFC as lenders shored up their lending policies.
Mortgage brokers tell Property Observer that there are many lenders that will offer a 100% home loan under certain circumstances including ANZ, NAB, St George and Suncorp.
"Each lender has strict guidelines around who can guarantee the loan," says Don Nicolussi of Homeloan Warehouse.
He says some lenders will allow non-family members to guarantee a loan such as a close family friend rather than a parent
"This would be considered on a case by case basis and only for strong applicants," he says.
"The guarantor is making a big commitment and for this reason the lenders will require that they obtain independent legal advice.
"Anyone (a broker) recommending such a loan needs to also consider whether it is even appropriate to begin with.That is, if the borrower does not have a deposit it would first be important to look at their financial habits to ensure that recommending such a long term commitment is the right thing for them," he says.
However, he says many people applying for a loan may simply be paying down other debts - HECS, car loans - when the opportunity to purchase a home comes up.
"That is when this type of product makes sense. It allows someone with good income and the support of their family (or networks) to aspire to home ownership. With rents rising and interest rates falling in some cases the repayments will be less than the rent they are already paying,"  Nicolussi says.
According to mortgage comparison website RateCity.com.au, 70% of home loans now offer 95% or more of the purchase price.


Consumer group Choice warns that no deposit loans can put borrowers at risk of greater financial stress.

It also warns of higher interest rates and the need to pay mortgage insurance.

"While these loans enable you to buy a house sooner, you need to take the cost of mortgage insurance into account. And with a loan for more than the value of the property, it’s crucial to make extra repayments to get some equity as quickly as you can," says Choice. "Saving as much as you can before buying will lower the amount of mortgage insurance, or remove it altogether if you can save a deposit of 20% or more of the property’s value. It’ll also give you a wider variety of lenders and loans to choose from — and helps you get used to the discipline needed when you have a mortgage."
Another former broker, Phil Richards, now with Peaple's Choice Credit Union, says 100% home loans have always been available.
"From a lenders perspective it is very safe. Even with a limited guarantee the risks can be high for the parents especially if they are near retirement and the kids default on the loan. Many of the lenders offer the products although some of the policies are slightly different," he says.
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Lenders return to 100% plus mortgages but with parental guarantor requirement

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New Stockland boss Mark Steinert received a favourable welcome from the stock market to his first day in the office with its share price rising 5 cents to $3.53 yesterday, in a market that went up 0.2%.
Steinert, <a target="_blank" href="https://www.propertyobserver.com.au/residential/stockland-confirms-ubs-banker-mark-steinert-as-new-managing-director/2012112858171">a former UBS investment banker</a>, replaced long-serving managing director and CEO Matthew Quinn to head up Australia’s largest residential developer.
The stock gain will no doubt please Quinn who walked away with 2.25 million shares worth around $7.8 million at yesterday’s closing price  - and worth little bit more today with the share price up to $3.56 by mid-morning.
When Quinn announced his decision to step down on July 25, the Stockland share price was $3.24. It rose 3 cents to $3.43 when Steinert was appointed on November 29.
Challenges for Steinert will include restoring market confidence in Stockland after it suffered three earnings downgrades last year and trying to turn around its struggling Melbourne residential business – Stockland is heavily exposed in Melbourne with eight residential communities in development on the fringes of Melbourne.
No dramatic changes are expected to be made by Steinert in the first six months of his tenure, but he is expected to re-appraise Quinn’s '3Rs' strategy, with its focus on residential, retail and retirement developments.
Steinert told analysts at a conference call late last year following his appointment, that he intends to undertake “deep analysis” before making any changes to strategy.
According to the Australian Financial Review, another thorn in Stockland’s side is its 15% investment in the struggling FKP Property Group.
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Stockland shares trade up as Mark Steinert completes first day in charge

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South Australia's richest man, Con Makris, has bought the Marina Mirage shopping centre on Queensland's Gold Coast for $52 million.
<img alt="marinacentre1" height="293" width="470" src="/images/stories/2013/01/marinacentre1.jpg">
The shopping centre was placed on the market after private group Fenix were placed into receivership by St George Bank.
The centre was listed in October last year with expectations of up to $60 million.
The 11,800-square-metre centre is split across two levels and comprises 100 shops and 700 parking spaces.
“The Gold Coast has been down for the past four years… but it’s just hit the bottom and is now on the way up,” Makris told The Financial Review.
Makris said that conditions had never been better for buying commercial property as borrowing costs were low and capital growth expected.
“The shopping centre is a destination. It’s where all the top fashion designers are, the best restaurants – it’s a place for the rich and famous to shop and dine,” says Makris.
Christopher Skase built the shopping centre 25 years ago and sold it to MFS Diversified Trust for $28.4 million in 2005.
MFS Group sold the centre in the same year to Fenix Real Estate for $40 million.
Fenix invested about $30 million into the asset but went into receivership.
David Winterbottom and Martin Madden from receivers KordaMentha appointed McVay Real Estate to sell the centre after they secured a $68 million deal with two Chinese groups for the neighbouring Palace Versace.
“It’s in the middle of all the five-star hotels – Palazzo Versace, the Sheraton – and they’re going to build a casino on land next to the shopping centre,” Makris told the Gold Coast Advertiser.
“This is the Miami of Australia,” says Makris.
The centre is opposite the $62 million Sheraton Mirage Resort and includes premium tenants such as Hermes, Tommy Hilfiger and Calvin Klein.
Con Makris founded Makris Group, which acquires shopping centres and today is a $1.5 billion-plus South Australian company.
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