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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8/127-129 Polding Street, Fairfield Heights, NSW, 2165 <img alt="polding" height="353" width="470" src="/images/stories/2012/12/polding.jpg">
There is no pre-Christmas slowdown in the market in Fairfield Heights, according to Ray White agent Graham Ball, who is marketing this three-bedroom house. 
"We're going to be busy right up until Christmas Eve," says Ball.
"The market is buzzing along in our area."
The townhouse is within easy walking distance of Fairfield Heights Shopping Centre and has a bus stop out the front. It is currently leased until April for $460 per week, which Ball says is a great return for the property. He says the tenants are keen to stay on longer if possible. 
Ball <a href="https://www.raywhite.com/nsw/fairfield-heights/889178/" target="_blank">is marketing the property</a> with price hopes of around $350,000, and if it sells for that price, that would secure an investor a gross rental yield of 6.8% at its current rent, well above the gross rental yield for Fairfield Heights houses of 5.1%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees.
<a href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT" target="_blank">Washington Brown</a> estimates the first-year tax depreciation deduction to be $8,000 and over five years to be $28,000.
The median house price in Fairfield Heights rose 0.6% in the past year and rose 30.3% in the past five years, according to RP Data.
For more information about prices and yields in <a target="_blank" href="/news">Fairfield Heights, see the RP Data suburb page.</a>
The property will go to auction on December 22 at noon.
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Friday form guide: Yields of up to 6.8% in the last pre-Christmas auction weekend

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Buying an apartment in the Brisbane CBD could be a cheaper option than renting one, according to the December RP Data Buy vs Rent report.
The latest edition of the theoretical report lists 494 suburbs across Australia where renters should think about doing the sums and perhaps looking at buying an equivalent property (if they can find one) rather than paying rent to a landlord.
This is up from the 388 suburbs in the previous October report and well up from just 238 locations listed in the first report released in August – RP Data updates the report whenever the RBA cuts the cash rate.
However, there are very few inner-city locations where genuine deposit savings are possible, with many of the suburbs on the list being  in remote locations, hundreds and sometimes thousands of kilometres from the nearest capital city – and requiring huge deposits.
The top 20 on the list is dominated by mining towns in WA with inflated rents, but with rental population heavily subsidised by mining companies and with little incentive to consider buying.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/12/rentbuy4.gif"><img src="/images/stories/2012/12/rentbuy4thumb.gif"></a>
With the average variable interest rate now at 5.65%, Brisbane is the capital city that potentially offers renters the best opportunity to come out financially better off by becoming property owners with 58 greater Brisbane suburbs out of a total of 185 in Queensland.
Brisbane CBD units ranks 52nd out of the 494 suburbs on the RP Data list with a potential saving of $344 a month for those buyers who can find a similar property to the one they are renting and raise a 10% deposit of $45,000.
The median unit price in the Brisbane CBD is $455,000 while median weekly rent is $625.
Recent Brisbane CBD apartment sales around the median include <a target="_blank" href="https://www.realestate.com.au/property-apartment-qld-brisbane+city-110402065">this two-bedroom unit on Albert Street</a> (pictured below), which sold for $445,000 in October.
<img alt="albertst3" height="353" width="470" src="/images/stories/2012/12/albertst3.jpg">
A look at rental listings in the Brisbane CBD show there are around 90 or so two-bedroom apartments available for rent around the $600 per week mark, including<a target="_blank" href="https://www.realestate.com.au/property-apartment-qld-brisbane+city-409249651"> this fully furnished, air-conditioned two bedroom apartment</a> (pictured below) in the CBD advertised at $580 per week.
<img alt="brisbcity" height="353" width="470" src="/images/stories/2012/12/brisbcity.jpg">
There are 48 suburbs in Sydney on the list, 40 in Adelaide, 16 in Hobart, eight in Perth, six in Melbourne and seven in Darwin.
 
<hr class="system-pagebreak">
 
Other inner-city locations to feature on the Buy vs Rent report include Enmore units in Sydney, units in the Perth CBD, units in Carlton, Melbourne, units in Ascot Vale (Perth) and Wynnum West in Brisbane.
In total there are only 18 inner-city suburbs on the list out of nearly 500 where renters would $100 or more better if they chose to rent.
Click to enlarge
<a href="/images/stories/2012/12/rentbuy6.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/12/rentbuy6thumb.gif"></a>
The report, meant as a starting point for those considering buying rather than a definitive guide, compares the cost of monthly mortgage repayments (using the scenario of  paying back principal and interest on a variable mortgage rate) with the median rent in that suburb.
It does not consider the potential for capital gains or other costs of ownership such as transaction costs and ongoing maintenance expenses.
It also does not factor in the need to raise what could be a substantial deposit, particularly if you are considering buying nor does it consider the demographic factors within a location.
For example, the location where it theoretically makes the most sense to buy a house rather than rent is Port Hedland in the Pilbara, the epicentre of WA’s mining boom.
RP Data estimates that buyers are over $5,000 a month better off than those that rent with monthly rental costs in excess of $10,000.
However, the median price of a house in Port Hedland is almost $1.2 million, meaning renters could be required to stump up a 10% deposit of $120,000 to secure a loan – out of reach for most.
Furthermore, most renters in Port Hedland and other mining towns, which dominate the top Buy vs Rent locations, would have their rents paid by their mining employee  or might be fly-in-fly-out (FIFO) workers so they would have no incentive to buy.
Another point to bear in mind that some locations considered good options to buy rather than rent would have a scarcity of stock or virtually no stock at all, with the prime example being houses in Docklands, a suburb where apartments dominate.
Docklands houses rank 21st on the list with potential monthly savings for those who choose to buy rather than rent of $846 a month on a variable loan. However, do a search on real estate listings websites and you’ll find just a handful of houses and asking prices approaching $2 million for river-fronted properties.
According to RP Data national research director Tim Lawless, it is meant as a “good starting point for further investigations into whether or not a potential purchaser should consider purchasing within a specific suburb”.
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Brisbane CBD among 494 suburbs where you could be better off buying then renting, but very few inner-city options: RP Data

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Swimming pools were once designated to the ground level of apartment complexes, and for a while to the dark, internal basements, but today they’re increasingly offering sky-high outdoor views.
The aquatic rooftop trend comes on the heels of the democratisation of the tops floor with the trend also seen through <a target="_blank" href="/news">rooftop gardens</a>, and even cinemas.
<img height="353" width="470" src="/images/stories/2012/12/radius.jpg" alt="radius">
The Radius apartment complex in <a target="_blank" href="/news">Woolloongabba, </a>Brisbane, will have a 20-metre three-lane lap pool (pictured above) on the rooftop of the nine-storey building.
The sky deck will offer tiered viewing decks, sun terraces and two 12-seater spas – all with panoramic mountain views of Brisbane – on its expected March 2014 completion.
Designed by Hayes Anderson Lynch Architects, Radius Apartments is a close three kilometres to the CBD.
Warren Hyatt from Majella Group – developer of Radius Apartments – says placing the leisure amenities on the roof allows for a larger scale of facilities than if the swimming pool were at the ground or podium level, where space is limited.
Warren Hyatt also says a pool on the roof increases privacy, as residents do not look down onto the recreation facilities.
With its prime Melbourne CBD position at 199 William Street, Melbourne, The William is another new development embracing the trend.
<img height="265" width="470" src="/images/stories/2012/12/thewilliam.jpg" alt="thewilliam">
The William offers views from the rooftop swimming pool on level 23 (pictured above), with a barbecue and lounge area.
Comprising 470 units, the development is designed by Bruce Henderson and developed by Hengyi Australia.
A bit more low rise, and right opposite the sandy beach, EightyEight in <a target="_blank" href="/news">Albert Park, </a>Melbourne, will on its much-awaited commencement and completion have a fourth floor lap pool overlooking Port Phillip Bay.
<img height="353" width="470" src="/images/stories/2012/12/88beaconsfield.jpg" alt="88beaconsfield">
Designed by Omiros One Architects (O1A), EightyEight (pictured above) offers 27 residential dwellings.
O1A says it is committed to the health of the environment and the creation of buildings that show a deep respect for the planet.
With construction to commence March next year, EightyEight is currently 50% sold.
One-bedroom apartments start from $950,000 and two-bedroom apartments start from $1.4 million.
EightyEight has an expected completion date for the last quarter in 2014.
 
<hr class="system-pagebreak">
 
<img height="353" width="470" src="/images/stories/2012/12/belvedere.jpg" alt="belvedere">
The $140 million development Belvedere by Winten Property Group boasts a 12.5-metre lap pool (pictured above) on the rooftop terrace.
Located at 138 Walker Street, <a target="_blank" href="/news">North Sydney</a>, Belvedere soars 22 levels high, and the rooftop terrace also hosts a gymnasium and relaxation areas.
On offer are one-, two- and three-bedroom apartments ranging from $375,000 to $2.95 million.
With an expected completion date of November 2013, Belvedere has currently sold 80% of the 195 apartments.
<img height="353" width="470" src="/images/stories/2012/12/divercity1.jpg" alt="divercity1">
Divercity at <a target="_blank" href="/news">Waterloo </a>in Sydney (pictured above)  is another new development to embrace the swimming pool trend.
Suitable for those afraid of heights, Divercity apartment towers range between six to 12 storeys high.
The lifestyle floor – two floors high – features an outdoor heated 20-metre lap pool that overlooks the street below, and an outdoor yoga studio.
Also included is an outdoor kitchen equipped with a barbecue and pizza oven for that after-swim feed.
Developed by Becton and designed by Turner and Associates architects, Divercity has a late 2013 completion date.
Matthew Chun, the Becton Property Group chief says says developers are opting for higher-level swimming pools due to street level noise and the benefit of offering residents more privacy and security.
“Residents are more favourable to having pools adjacent to aesthetically pleasing outdoor entertainment spaces, as opposed to an indoor pool,”
Chun says the introduction of these facilities increases tenant demand, reduces rental downtime and improves rental growth for investors.
The Becton boss also notes public swimming pools and gyms generally require an admission or membership fee; therefore swimming pools in apartment complexes are seen as a free benefit to tenants.
Michael Fox, managing director of Little Property Group – developer of Central South Yarra – says the rooftop trend stems from tenants and their landlord investors seeking low-maintenance recreational living options.
“They want to enjoy the outdoor scenario,” says Fox.
Fox says the additional recreation space adds to the value of all apartments, despite the loss of revenue from sale of the top floor or rooftop.
“Essentially, it’s an extension of their apartment. Residents are happy to live in smaller spaces but have other facilities at their fingertips so they can entertain their guests in an open and unique environment.”
We’ve also looked at the trend of starry-eyed<a target="_blank" href="/news"> rooftop cinemas</a> leading the way in outdoor viewing.
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Rooftop pools make a splash as developers bring penthouse amenities to the people

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Before the GFC hit and destroyed many Australians’ retirement funds, we were beginning to see a demographic shift as some segments of Australia’s population, particularly the retiring baby boomers, were selling up their large suburban homes and moving to the coast to retire, undertaking a transformation known as a  “sea-change”.
While this trend seems to have been halted as many boomers reassess their retirement plans in light of the current economic conditions, the trend will re-emerge, and in time, many coastal towns will have to reinvent themselves to cope with the influx of people.
When looking for a high-growth properties in coastal locations, the question to ask yourself is, “Will this be the type of property that will be attractive to a sea- changer?” Sea-changers will be looking for spacious, modern, low-maintenance properties that offer security and privacy. They will not be looking for “holiday” accommodation.
Another important factor is driving time to major cities, because even though sea-changers are shifting out of a big city environment, they still want a relatively easy drive to a major regional centre or the city. They want to be near hospitals and airports.
Beware the “holiday home” syndrome
Many people like the idea of buying a holiday home and think they can get the dual benefit of a rental income and a free holiday.
I would be cautious, because many people fall into the trap of buying with their hearts overruling their minds in this area. Many investors kid themselves and tell their friends and family that they bought a holiday property for financial reasons when, in reality, they fell in love with the idea of owning a holiday home and often paid scant attention to the investment fundamentals.
I’d rather own my investment properties in prime (non-vacation) locations and then stay at the latest and best accommodation in the spots where I want to holiday.
So which location?
For years, the agents have been telling us the answer is “location, location, location!” And in recent years they have been telling us the right location is near (not in) the CBD or near the water. But this doesn’t help us decide which location to choose and which property within that location to choose.
Location is important, but as you now realise, not always as important as some other factors. You will need to do the legwork and research you do to familiarise yourself with your chosen areas and markets so you can identify bargains and keep your finger on the pulse.
<img style="margin: 5px; float: left;" src="/images/stories/2012/12/yardneybook.jpg">
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
This is an excerpt from the fully revised new edition of Michael Yardney’s best seller How to Grow a Multi Million Dollar Property Portfolio – in your spare time. Get your own copy plus four free bonuses by here <a href="https://thebookonpropertyinvestment.com/" target="_blank">https://thebookonpropertyinvestment.com/ </a>
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Be wary of investing in holiday properties

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Most communication involves negotiation. Aside from ‘splitting-the-difference’ most people don’t know a lot about negotiating. They are not very good at getting very good deals for themselves.
One of the most important things to remember when negotiating is to ask lots of questions. Very often, you need to ask questions of yourself. Why do you want to buy? How much do you want to pay? When do you want to have it? Try and remember what the writer Rudyard Kipling once said: ‘I keep six honest servants; they’ve taught me all I know. Their names are what, why and who. And when and where and how.’
Most people make the mistake of thinking that negotiation is a complex science. It’s not. It’s usually just two people both trying to get the best deal for themselves: the person who is selling and the person who is buying. And there is no honest reason why both sides can’t reach a price which makes both of them happy. Here are 10 of my favourite points about negotiation.
1. FAIRNESS
First, don’t even consider ripping off the other person. If you’ve got a good product that’s priced higher than it can be bought elsewhere, then you’d better have a very good reason to justify your higher price. What are you offering that the other seller is not offering? If nothing, then all you’ve got to offer is price. If you are in a price war – as so often happens today, especially with cars and white goods – there’s only one way you can be sure of winning. Guarantee the best price.
That’s right; don’t just say that your price is best. Guarantee it. If they buy from you and later (within, say, 30 days), they see it advertised cheaper with someone else, then say you’ll refund the difference. I love honest guarantees in negotiation. They instantly move you closer to closing the transaction and they make you feel good. You don’t go away with that nagging feeling that maybe you could have got it even cheaper elsewhere. So this sort of negotiation is simple. If you’re the seller, offer the best price possible. If you’re the buyer, do some research and get to know the prices.
There is, however, one wonderful seven-word question which you should ask the other party, regardless of whether you are buying or selling. That question is: ‘Is that the best you can do?’ You’ll be astounded how many times this soft little question saves you a stack of dollars. One final tip on this question: Ask it a second time with one more word added. Once you’ve got what you are told is ‘the best’ that can be done, ask this eight-word question: ‘Is that REALLY the best you can do?’
I estimate that the first time you ask this question, you’ll get a better deal at least 50% of the time. The second time you ask the question – with the word ‘really’ added – you’ll get a better deal (in total) about 75 per cent of the time.
 Finally, the most important word in negotiation is ‘fairness’. It’s the first and final rule.
 
<hr class="system-pagebreak">
 
2. VARIABLES
Second, look for variables – something you can add in as an extra if you’re selling or something that you can take out if you’re buying. For example, a home may have some expensive light fittings. If the buyer makes an offer which seems too low, the seller can say, ‘We accept the offer but we need to exclude the light fittings.’ There are a whole host of other extra things you can include or remove if you are selling or buying a house. During tight times in real estate, some property developers offer a ‘free car’ if you buy one of their properties. With such a large inclusion, though, it’s hard not to think that the price of the car has been added to the price of the property. Once again, do your own research.
3. RESEARCH
Third, become a superb researcher. You know who always gets the deal from a negotiation? The person who’s the best informed. Depending upon what you are selling or buying, the more research you do, the more knowledge you’ll acquire. With negotiation, knowledge is power.
Here’s an example. There’s another home for sale in my street. It’s just been built. It’s a gorgeous looking home but it’s located in the middle of a bend coming down a hill. As you drive down the hill, it’s easy to imagine a car losing control, failing to take the bend and ploughing into this house. This is a valid concern which can be used by buyers to secure a lower price. But if the sellers have done their research, they’d be able to tell the buyers that the council is going to close the street at the top of the hill. Cars will only be able to go one way – up the hill. Presto, knowledge has saved the sellers from having to give a hefty discount.
4. TIME
Fourth, be careful of time. The longer you spend in a negotiation, the more likely you’ll capitulate. When you invest a lot of time with people, you think: Well, we’d better do a deal now or else we’ve wasted all these hours/days/weeks. A car salesman once told me that some buyers will point to a car in the middle of many cars and ask the salesperson for a test drive. The poor salesperson may spend 20 minutes shifting cars around. He expects to make a sale. He has invested time and whoever invests the most time is the one most likely to surrender conditions. Some car buyers get salespeople to bring cars to the buyers’ homes. All the buyers do is sit at home and wait. The car salesperson uses up a heap of time, especially if they have to go back and forth to the buyers’ home with several types of cars.
So be careful. The longer the negotiation goes for, the less chance one side will have of getting the best deal. Make sure it’s not your side that’s invested huge chunks of time.
5. TERMS
Fifth, consider terms. Often, negotiation involves a financial focal point. For example, the price asked for a home may be one million dollars. Buyers are only offering $900,000. The sellers reduce their price to $980,000. The buyers increase to $920,000. Stalemate. Sixty thousand dollars short. The buyers say they have run out of money. With their savings, they have reached the maximum that the bank will lend them. The sale is about to fall over. But, suddenly, the sellers offer to ‘lend’ the buyers the $60,000 shortfall. The sellers may say, ‘Okay, we are $60,000 short, but we’ll let you pay us $12,000 per year for six years.’ If the buyer agrees, which they often do, the sale is saved. There are a myriad of combinations that can be used with financial terms.
6. STEADY
Sixth, be careful how you say ‘yes’. Let’s say you like something that has an asking price of one thousand dollars. You may offer eight hundred dollars. The seller gives you a big smile and says, ‘Yes, I accept,’ and out comes the proffered hand to shake. What’s your first thought? Yes, it was all too easy; maybe you should have offered less.
If you are the seller and someone makes you any offer that you want to accept, never look delighted. Take it steady. Maintain a stern, almost worried look. Ask for a few minutes alone with your partner. If you decide to accept the offer, always try to get the other side to make one more, final, concession. Here’s what you would go back and say: ‘Look, it’s not what we are hoping for, but we have decided to accept if you will pay for postage and packing [or whatever concession you seek].’
 
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7. CONTRA
Seventh, if you give something, make sure you receive something in return. That’s right, every time you agree to some point or condition in the negotiation, the other side, in return, should agree to compensate you for that. Don’t ever give anything away without getting something  in return. A contra arrangement. For example, you might increase your offer by $10,000 if they agree to leave their ride-on lawnmower and all the gardening implements.
8. QUESTIONS
Eighth, ask questions instead of making statements. Let’s face it, almost no one feels comfortable looking another person in the face and saying, ‘I want to give you $10,000 less than you are asking.’ 
So instead of making such ‘in-your-face’ statements, try asking a few soft questions.
For example, you can look at the asking price and then look puzzled before you ask, ‘Why are you asking this price?’ Amazingly, rather than try to justify why they are asking a certain price, many people will immediately reduce the price. It’s easier for them to reduce than defend their price.
And let’s say you are checking in to a hotel. All hotels have a series of set rates they charge. All hotels are flexible on their rates, no matter what they tell you. After all, they can’t sell the previous night’s empty room at any price. The worst rate that hotels have – and the one they’ll try to get you to pay – is what’s called their ‘rack’ rate. If you know what you are doing you will never pay the rack rate. So all you do is ask the desk clerk, ‘What special deals do you have on at the moment?’ If they say there are no deals and then they quote you a rate, you should immediately say, ‘Yes, but that’s your rack rate!’ (Say it as if only mugs would pay a rack rate.) All hotels also have a corporate rate, which is anywhere from 10 to 30 per cent cheaper than the rack rate. So you should ask, ‘What’s your corporate rate?’ When they tell you, then say – almost grudgingly – ‘Okay, I’ll take that then.’
But you’re not finished yet. Have you got one of their premier rooms or just one of their mediocre standard rooms? It costs a hotel nothing to give you one of their better rooms. To get a better room, just politely say, ‘Could you please give us a nice room?’ You’ll be surprised how often hotels will upgrade you at no extra cost. And what about breakfast? Ask the question in a positive manner and you’re more likely to get a positive result. For example, ‘This includes breakfast, doesn’t it?’ 
And finally, don’t forget to get a late check-out. Conrad Hilton was the man who got the masses to check out of his hotels on time. People used to be told that ‘check-out time’ was 11 am. But hardly anyone took any notice. He was having terrible trouble. And then he decided to post signs at the reception desk and in the rooms, saying ‘Check-out time strictly 11 am’. Suddenly, because it was in writing, everyone obeyed.
So be careful. Don’t ever let written words intimidate you to do what the written words want you to do. With negotiation, just about everything is negotiable – except your integrity, of course. Never do, or even hint at doing, anything unethical.
Recently I was at one of the big city car parks. I couldn’t find my car so I asked one of the attendants to help me. He was not only helpful with directions, he also took my money which saved me going to the cashier. It wasn’t until after I drove out that I realised what had happened. He had acted nervously and he moved behind a large concrete post when he looked at my ticket and got my money (I later realised to hide from the security camera). He took two 20-dollar notes from me which, at the time, I thought was quite reasonable, considering I had been parked there for most of the day. When he took the money, he said: ‘That’ll do.’ I thought he had given me a special rate. But he had actually given me the thief’s discount because he kept the money for himself. The real rate was around 70 dollars. As I joined the mass of city peak hour traffic, I slowly began to work out what had happened. He had pocketed my money. I fumed. I felt like going to his employers and setting him up in a hidden camera sting. I hate dishonesty, wherever it’s found or however it’s perpetrated. And, as in this case, I hated being almost a partner in this crook’s crime. I drove home feeling guilty myself. I couldn’t stand it and so the next day I rang the large car park company. To my shock, they weren’t interested. Perhaps they were all doing it all the time. Who knows?
 
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9. ODD
Ninth, don’t negotiate in even numbers, particularly near the end of the negotiation. Have you ever noticed that when people tell you their highest or lowest price, it almost always ends in a round number? Such as $10,000 or $12,000. But seldom $10,277. If people really were stretched to their limits, they’d be offering an odd amount – a sign that they had virtually emptied their purse.
Often, when you offer an odd amount, the other side will say something such as, ‘Why are you offering me $10,277?’ You then reply: ‘Because that’s all I can afford. I just can’t go any higher. If that’s not enough for you, then, I’m sorry, I’ll have to let it go.’ Again, you’ll be surprised how many times people will accept a price with an odd number, even if they may have refused a higher price with an even number!
10. EXPERTS
The 10th point is: consider using experts. I have done a lot of negotiation in my life but never felt comfortable negotiating for myself. I can get great deals for the sellers of real estate but when it comes to myself, I often end up feeling sorry for the buyers. I sold my last family home for almost $20,000 less than an earlier price I had been offered. Yes, I had two buyers. Instead of taking the buyer with the higher amount, I took the offer from the mother with a mentally disabled daughter. The agent introduced me to the lady. She was lovely and my heart melted.
It has been a different story, though, whenever I have been buying real estate. On the last three occasions that I or a close family member have bought property, we have always used the services of a Buyers’ Agent. In every case, we have saved more money than the amount we paid the expert. So, if you don’t feel 100 per cent comfortable doing the negotiating yourself (on big items only, such as houses or cars), I recommend that you hire a skilled negotiator.
Neil Jenman is a property commentator, consumer advocate and <a href="https://www.jenman.com.au/index.php" target="_blank">investigative writer. </a>
<a href="https://www.successtakescharacter.com/" target="_blank"><img src="/images/stories/2012/12/jenmanbook.jpg" width="150" height="204" alt="jenmanbook" style="margin: 6px; float: left;"></a>
This is an excerpt of his book <a href="https://www.successtakescharacter.com/" target="_blank">Success Takes Character: Winning and Losing in the Game of Life</a>
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The 10 ways to negotiate a better deal in property: Neil Jenman

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That annoying Coles jingle “Down, down, prices are down” (was there ever more reason to shop at Woolworths?) could easily be applied to the outlook for the cash rate in 2013 with economists revising their forecasts in expectation of further rate cuts over the course of the next 12 months.
The key questions remain how many more rate cuts there are likely to be in the current cycle and perhaps more importantly, if they will have any impact on buying intentions of key market segments like first-home buyers and upgraders.
Certainly rate cuts will be welcomed by the generally financially better off investor market, where activity already appears to be on the rise based on October housing finance figures from the ABS.
These showed a 5.5% rise in the value of fixed-rate investor home loans over the month of October, compared with 0.2% decline in the value of owner-occupier mortgages.
An improvement in the new housing market is also expected, with Westpac chief economist Bill Evans noting that residential construction sector has “turned the corner and will be supported by recent lower interest rates, a shift which has greatly enhanced housing affordability” as well as from the  $15,000 first-home buyer handouts for those buying or building a new home in NSW and Queensland.
Evans quotes ABS construction figures that show that new dwelling construction advanced by 3.7% in the September quarter, partially reversing a 7% decline over the previous five quarters.
In addition, he points to the October Westpac- Melbourne Institute consumer sentiment index, where the ‘time to buy a dwelling’ sub-index showed a very positive response rising to the highest level since late 2009.
“This suggests that a housing recovery is locked-in for 2013. However, we expect the upswing in activity to be relatively gradual to emerge and that the cycle will be restrained by historical standards. The main constraint is the high starting point for household debt. Our forecast is for new dwelling construction to rise by 4.5% through 2013 and by 5.0% through 2014,” he says.
However, the evidence of a recovery is less certain for established housing, which makes up the bulk of the Australian housing market.
Concerns remain about the fragile confidence of Australian consumers, with the November Westpac consumer index recording a drop in confidence to levels last seen before the RBA began cutting the cash rate in November last year, though mortgage holder confidence rose 4.4%.
The key take-home message from the November index were concerns about the <a href="https://www.propertyobserver.com.au/economy/households-growing-concern-about-job-market-point-to-further-rate-cuts-westpac/2012121358456?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=latestnews" target="_blank">economy and job security are upper-most in the minds of consumers</a>, something a rate cut won't easily fix.
Despite 175 basis points being trimmed from the cash rate since November 2011, consumer confidence has not improved, with interest rate cuts appearing to lose their potency, a point observed by Laing+Simmons general manager Leanne Pilkington who, following the December rate cut, said they were no longer having any meaningful impact on <a href="/news">housing market activity</a>.
For the RBA, the focus will be on the job market and the non-mining sectors of the economy, including housing, taking up the slack with the 2014 mining investment peak now “confirmed”.
“Labour demand had softened, which pointed to only modest employment growth in coming months,” was arguable the key sentence in the December minutes, along with the RBA’s note that the “inflation outlook still afforded the board some scope to provide additional support to demand”.
ANZ has revised its estimates and is now tipping a further 100 basis points to be shaved off the cash rate over 2013, principally due to the slowdown in mining investment and an expected slow pick-up in non-mining sectors.
This would take the cash rate to an unprecedented 52 year low of 2% and could result in introductory variable loans being offered at around 4.4% (currently the cheapest variable loan offerings start from about 5.2%) assuming lenders pass on about 80 basis points to borrowers.
Standard variable mortgage rates would fall to around 5.6%, while the three-year fixed rate would fall well below 5%.
AMP Capital chief economist Shane Oliver is tipping at least two more rate cuts next year (in February and April), taking the cash rate to 2.5%, but warns that the cash rate could fall below 2% if the recovery in key non-mining sectors like retail, housing and tourism is slower to eventuate.
According to Oliver, in the current environment “of household and business caution post-GFC” the neutral standard variable rate has likely fallen to around 6.75%.
“In the last two easing cycles the mortgage rate had to fall to around 6.05% in 2002 and to 5.75% in 2009.
“Given the fall in the likely neutral level for mortgage rates and the current headwinds coming from the strong Australian dollar and fiscal tightening, mortgage rates will at least need to fall to these lows.
“Given ongoing issues with bank funding, to achieve a circa 6% mortgage rate the cash rate will need to fall to around 2.5%,” he says.
Oliver is quite bullish on the impact that lower rates will have on the housing market.
“Based on the assumption that the RBA cuts interest rates further and the global economy stabilizes then Australian economic growth should pick up by the end of next year.
“One should not underestimate the boost lower mortgage rates will ultimately provide. A fall in mortgage rates to 6% from the 2011 high of around 7.8% is equivalent to around $4500 pa in interest savings on a $300,000 mortgage. Ultimately some of that will be spent.
The key question remains though if lower interest rates will have enough of an impact on the housing market to spur a pick-up in activity.
Westpac’s Bill Evans anticipates one more rate cut on February 5 when the RBA next meets, but tellingly adds that “evidence to date is that low rates are not achieving traction with the hearts and minds of households or business”.
But he says the RBA is unlikely to concede that its primary policy instrument is ineffective.
However if the cash rate does fall to 2% and bank mortgage rates follow downwards but home buyers stay away, the uncomfortable question for the RBA and economists will be: where to next?
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Down, down, interest rates going down in 2013, but will they make a difference?

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Unless you have a reliable crystal ball, predicting how the property market will shape up in 2013 is a tough call to make.
Uncertainties include how the global economy will play out and impact on Australia, the extent of the slowdown in the mining investment boom and how quickly non-mining sectors like retailing, housing, manufacturing and tourism can pick-up the slack.
Economists are tipping interest rates to fall further in 2013 and reach record lows, which will be good news for mortgage holders, but astute buyers and investors will recognise the economic warning signs.
Lower interest rates are having less of an impact on buying intentions, with confidence seeming to be the major stumbling block.
Still, many property market players are tipping modest property gains in 2013 for some markets, while others are set to tread water or fall further.
Property Observer has spoken to a wide range of industry players and pundits to get their thoughts on what might happen next year.
Here are 10 tips from property market analysts about what to expect in 2013:
1. Sydney to do better, but best NSW prospects still in the regions: Terry Ryder
Hotspotting.com.au’s Terry Ryder expects the Sydney market to do better in 2013 but still tips a number of NSW regional towns to outperform the capital city. Regional towns, he says, are more affordable and have provided much better capital growth over recent years. He expects the following regional market to continue to outperform Sydney in 2013: <a target="_blank" href="/news">Dubbo</a>, <a target="_blank" href="/news">Tamworth</a>, <a target="_blank" href="/news">Gunnedah</a>, <a target="_blank" href="/news">Mudgee</a>, <a target="_blank" href="/news">Orange</a>, <a target="_blank" href="/news">Goulburn</a>, <a target="_blank" href="/news">Albury </a>and <a target="_blank" href="/news">Wagga Wagga</a>. For more on <a target="_blank" href="/news">capital city vs regional prospects in 2013 watch the full webinar</a> with Terry Ryder.
2. Luxury market to recover first: Janusz Hooker
LJ Hooker deputy chairman Janusz Hooker says a recovery in the housing market is “inevitable”, with the luxury high-end market expected to be the first to enjoy price recovery having been hit the hardest by the downturn. His advice to property investors is to “look for places that went down the most and also watch the big cities – when they move it fans out to the regions usually within six to 12 months”.
3. Sydney sub-$750,000 market the strongest in Australia’s “BHP of real estate”: John McGrath
McGrath Estate Agents CEO John McGrath says recent weekend clearance rates indicate clearly that the under-$750,000 market is still strongest in Sydney, with McGrath averaging a 69% clearance rate in this bracket, followed by 65% for the $750,000 to $1.5 million sector. "Sydney remains the <a target="_blank" href="https://www.propertyobserver.com.au/residential/the-end-of-the-buyers-market-drawing-near-with-australian-property-prices-set-to-rise-in-2013-john-mcgrath/2012121658475/Page-1?utm_campaign=observers&amp;utm_medium=aida&amp;utm_source=po">BHP of Australian real estate</a> – the big blue-chip market that generally outperforms the rest, says McGrath, who predicts a 2% to 5% price rise in the under-$750,000 market and a 5 to 8% rise in the $750,000 to $1.5 million bracket.
4. Consider the outer suburbs of Adelaide and Brisbane: Margaret Lomas
Destiny Financial’s Margaret Lomas says property investors are starting to take a look at the outer suburbs of Adelaide and Brisbane, with activity picking up towards the end of 2012. These were areas were house prices started to move up a little bit in contrast to the rest of the market, which mostly stagnated, she told realestatetalk.com.au.
5. Rent vs buy equation to sway more first-home buyers and renters into the market: Tim Gurner
Tim Gurner, director at Melbourne-based property development company Urban Inc, says the buy versus rent equation will sway strongly towards buying in 2013, “so we’re expecting to see a lot of first home buyers and renters return to the market”. Urban Inc is currently developing Alessi in West Melbourne.
6. Perth and Sydney to perform, Brisbane held back by unemployment: Aaron Maskrey
Aaron Maskrey, research director at PRDnationwide, expects Sydney to experience steady, but modest growth of around 5% throughout the upcoming year. He says Perth should also be a stronger performer in 2013, with a combination of mining investment and low interest rates helping to shift this market off the bottom of its property cycle. “A conservative estimate of price growth during 2013 would see Perth increase in value by 2%, but such is the swing with this resource affected region, greater market sentiment could give rise to 6% growth." Maskrey says Brisbane finds itself in a similar situation to Perth and would have been included with Perth’s forecasted growth but for the sharp rise in unemployment. “With a rising rate of jobless residents, any potential growth that was initially forecasted for Brisbane is now expected to be temporarily suppressed in early 2013,” he says.
 
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7. A more generic uplift in property prices for Sydney then Melbourne: Matthew Chun
Becton CEO Matthew Chun is more bullish on the Sydney property market than Melbourne in 2013. Chun tells Property Observer he expects “meaningful price growth” in Sydney of 4% to 8% with modest growth of 2% to 4% in Melbourne. Chun also expects a more generic recovery across the Sydney market, while Melbourne will be restricted to growth from unique, well-located properties within 10 kilometres of the CBD. “Outside of this zone growth will be flat, and I also don’t expect much growth in the Melbourne apartment market,” he says. Becton's two key projects are Divercity in Waterloo and Newleaf in Bonny Rigg in the west of Sydney.
8. West Melbourne land market has better prospects: Jeff Garvey, director of ID Land
Jeff Garvey, director of Melbourne residential developer ID Land, says the outer west growth corridor, which includes suburbs like <a target="_blank" href="/news">Truganina</a> and <a target="_self" href="/news">Plumpton, </a>have good prospects, in contrast to the perception that the Melbourne land market is struggling. Garvey says the area is supported by “really big infrastructure projects” including the $5 billion regional rail link running from Southern Cross to Werribee and due for completion in 2016. In addition, Truganina is only 20 kilometres from the Melbourne CBD. 
9. Don’t expect or wish for the cash rate to reach 2%: Joe Sirianni
Joe Sirianni, executive director at mortgage brokers Smartline, anticipates only one more rate cut in 2013 and says were the cash rate to fall to 2% it would undermine confidence, which he says is the key issue. “We’re living in changing times and the use of interest rate cuts as a lever to stimulate the economy just isn’t having the same impact as it has in the past. Therefore, I think the RBA will realise that there is little point in going much lower with the cash rate.  A cash rate of 2% would be unprecedented in Australia, and I think there’s a danger that if rates were cut to this level, it would un-nerve most people and exasperate the already low levels of confidence,” says Sirianni.
10. A modest recovery in new housing in NSW in 2013 with better buying conditions: Craig D'Costa
Craig D'Costa, senior development manager of Sekisui House, a co-developer of the $2 billion Central Park project in Sydney, says a recovery in the housing industry will be a key factor in boosting the NSW economy. "The housing industry is forecasting NSW to achieve a modest increase in housing starts for 2013, this comes of the back of government led stimulus for new home buyers with substantial saving in stamp duty and grants. Overall, improved affordability and better buying conditions will underpin home buying activity next year in 2013, with upgraders and investors also likely be very active sectors," he says.
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The 10 insights into the 2013 property market: What, why, when and where to look

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Phew, what a year (sigh of relief that’s it’s almost over).
This year we completed the most development projects for our clients in our business history, but it wasn’t until I sat down to lunch with one of my builders and team last week that I’d even had time to reflect.  We wanted to celebrate the massive year we had all had.  My builder had turned over a record amount, and his business was up 15% – not bad in these ‘tough’ times.  Property Bloom also had a record year, which shows in new wrinkles forming on my face. I need a holiday!
At lunch we looked at some stats I put together on what we’d achieved.
There were some highlights but also some lowlights. I had one builder go into liquidation, which I would not wish on my worst enemy but wanted to mention in the light of another large NSW builder – Procorp was swept into administration a few weeks ago.  We completed this three-unit project early this year, and I had coffee with my client recently. Of course it wasn’t what we had expected, and the delay and added cost of finishing construction with another builder is very frustrating, but Property Bloom managed this process smoothly. After getting no fewer than five quotes to complete their triplex, we saved about $80,000 by using our smaller, renovation builder.  He was more affordable because he was on the tools himself.  At the end of their project the tax rebate from the high depreciation was a good reward together with the high yield they are getting. So they were not too sad, but this was definitely a lowlight for us.
We also completed two other projects that started off very differently to how they ended. We had planned for three-unit projects but ended with dual occupancies due to a sequence of unexpected events at the council, which had its planning powers taken and an independent planning panel suddenly put in place that proceeded to reject development application after development application (DA) without warning or giving us or anyone else a chance to modify plans. These circumstances were well beyond everyone’s wildest imaginations, and so these developments were impacted by a situation totally unforeseen.
We are extremely proud of this year because the highlights far outweigh the low ones.  The reason I’m even mentioning lowlight projects is because we all need to understand the risks in property developing and also because I’m an honest person.  It’s not always beer and skittles!
If you are going to develop property, you need to be prepared for the unknown. It’s like unwrapping a Christmas gift and not knowing what’s inside until all the wrapping is gone and the contents revealed.  A development site is somewhat similar; it’s not until you get through each phase – site selection, design, planning and construction that you really know what you will end up with.
 
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So now I’m going to boast of one of great results.  This three-unit project (pictured below) surprised even me when we finally ‘unwrapped’ it – it was truly the gift you always wish for.
<img src="/images/stories/2012/12/chiversdec14.jpg">
Our first signal that we were off to a good start was sourcing an off the market site directly from the land developer, a farmer who was subdividing off some on his very flat, well-located land. Our client paid $195,000 for a 1,090-square-metre lot.
We completed the project with 14 months, including design, DA approval, construction certificate approval, finance approval and construction.
The build time was 25 weeks.
The equity created through the development process was a massive $222,301, representing a 16% return on investment (within 14 months).
The gross yield was 7% upon renting the villas.
The best result we achieved was to bring in the project $38,623 less than what was originally estimated.  Our initial estimates are done before we have any plans and based on our experience on similar projects.
There were many other very successful developments, and as I reflected on this with our team and builder at lunch overlooking the vineyards of the wonderful Hunter Valley, we summarised it quite simply into the ingredients for successful developments: finding good sites, implementing good systems, running a good team and having great clients, ones who make quick decisions and let us get on with what we do best.  Thank you to all our wonderful clients, and I wish everyone a safe, relaxing and happy Christmas.  I’m looking forward to a nice break myself so I can try and better our bumper year in 2013.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
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A year of highlights and lowlights in property development management

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The biggest twits in real estate are the people waiting for the trough. 
Many tell me they’re not going to act until “the market bottoms”. I ask how they think they’ll be able to identify the bottom when it arrives. They don’t have an answer. 
Primarily, I think, they’re waiting to read about it in a newspaper. 
Here’s the problem. There’s nobody writing for newspapers with sufficient expertise to know a trough from a peak. 
Here’s another. By the time journalists start writing about the market bottoming, after receiving a press release from an attention-seeker, it will be too late. It will have occurred six months earlier. 
And here’s the biggest problem. While people have been scratching their bottom waiting to pick the bottom, the bottom has already happened. In many key markets, it’s already part of history. 
It may not feel so for some people, but 2012 has been a much better year in real estate than last year. Darwin and Perth have had huge rental increases and prices have started to follow. The bottom has long since passed in those two cities. 
The latest figures for Sydney and Brisbane also indicate the declines of 2011 and early 2012 have been arrested, and those markets are also moving forward. 
Around Australia, many regional markets have left their troughs in the distant past and have had strong growth years in 2012. There are dozens where prices grew 5% or more in the past 12 months. 
The trough-seekers have been piling into markets like Gladstone this year, having missed the trough which happened two to three years ago. 
<a target="_blank" href="https://www.propertyobserver.com.au/residential/its-time-to-stop-procrastinating-and-get-into-the-real-estate-market-terry-ryder/2012120558315">As I wrote in a Property Observer column earlier this month</a>, it doesn’t get any better than this for property buyers. All the indicators – including rising sales activity, increased lending levels, improved clearance rates, six interest rate reductions and seven consecutive quarters of improved affordability – declare that now is the moment. 
So, following an improved 2012, next year will be better again. I’m expecting growth in all the capital cities except Melbourne (Hobart I’m not sure about – weak economic fundamentals may be counter-balanced by the advancement of key construction projects and state government spending packages). 
The regions will again provide the most upside for property investors. Many regional towns and cities have been solid in 2012 and some have been very strong.  There will be more growth markets in 2013 than this year. 
It’s important to pick the right ones. The key factors to look for include diverse economies, proactive local councils, spending on infrastructure and expansion of jobs-creating businesses. 
The best capital growth will be found in those that experienced significant rental growth in 2012, but not the same level of price growth – yet. 
Most likely these will be regional areas touched by the resources sector but not dependent on it. Toowoomba in Queensland and Tamworth in NSW provide a couple of pertinent examples. These places have been important, prosperous regional centres long-term but have an additional powerful element to their economies with the emergence of resources activity in their area of influence. 
These are safe places to invest – you’re getting the benefit of the mining sector without the risk of buying in a mining town. 
So here’s the best tip for getting the best out of 2013: get busy now. Don’t be a herd animal. Most investors follow the pack and end up like pigs feeding at the trough, in a shambolic frenzy – except, it’s not a trough any more. By the top everyone’s gorging themselves, it’s well on the way to the peak – or has already passed it.
 
Terry Ryder is the founder of <a target="_blank" rel="nofollow" href="https://www.hotspotting.com.au/">hotspotting.com.au</a> and can be <a target="_blank" rel="nofollow" href="https://www.twitter.com/hotspotting">followed on Twitter</a>.
For more, watch Terry's free webinar <a href="/news">Regions vs capital cities: Where to invest in 2013</a>
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Why you should get busy investing in residential property in 2013: Terry Ryder

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The scaffolding surrounding Lend Lease’s timber Docklands development Forté has come down, revealing the tallest timber residential building in the world.


Construction started in the first week of June, with levels rapidly added in the weeks that followed.
<img height="353" width="470" src="/images/stories/2012/12/fortedec20.jpg" alt="fortedec20">
Buyers are expected to move in next month, with the official launch to be held in late February. 
<img height="353" width="470" src="/images/stories/2012/12/fortedec202.jpg" alt="fortedec202">
The $11 million project makes use of the lightweight cross-laminated timber (CLT), commonly used in Europe, which has a structural strength similar to concrete and steel.
There are be 23 apartments in the 32-metre, 10-storey building. Prices start from $435,000 for a 59-square-metre one-bedroom apartment, climbing to the high $600,000s for a two-bedroom, two-bathroom pad, with the penthouses reaching $795,000.
Construction of the building was quieter, more efficient, faster and safer than construction with more traditional materials.
 
Forté's pictorial timeline
 
  
<img height="313" width="470" src="/images/stories/2012/06/fortesite3.jpg" alt="fortesite3">
Forté's progress as of June 8
 
<img height="313" width="470" src="/images/stories/2012/06/fortejune3.jpg" alt="fortejune3">
Forté's progress as of June 29
 
<img height="313" width="470" src="/images/stories/2012/07/july13forte/_mg_5006.jpg" alt="_mg_5006">
Forté's progress as of July 13
<img src="/images/stories/2012/08/forteaug173.jpg">
Forté's progress as of August 20
<img src="/images/stories/2012/09/fortesept7.jpg">
Forté's progress as of September 7
<img height="627" width="470" src="/images/stories/2012/12/fortedec201.jpg" alt="fortedec201">
Forte's progress as of December 20
{module Would you buy an apartment in a timber building?}
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