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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Property investors who may have missed the best opportunities for growth in the Queensland mining town of Gladstone and should instead consider investing in an up and coming investment hotspot like Geraldton in WA, says hotspotting.com.au’s Terry Ryder.
Ryder urges caution when considering investing in Gladstone and says it's property market is at risk of oversupply.
He says developers have been desperate to get into Gladstone, but because of the time it takes to get approval, they have been a couple of years behind the market, up until now, with projects starting to come on board.
“If you fly into or over Gladstone, you see there are just new housing estates and earth-moving machinery everywhere,” said Ryder in a recent <a target="_blank" href="/news">Property Observer</a><a target="_blank" href="/news"> webinar</a> looking at investment hotspot opportunities in 2013.
Ryder says the best growth opportunities in Gladstone were two year's ago.
Rather, he suggests investors take a good look at Geraldton, which he says has the potential to evolve into a Gladstone.
Geraldton is a coastal town of about 35,000 people about 430 kilometres north of Perth.
“It’s a city with a nice diversity (agriculture, fishing, tourism, mining, ports) to its economy and it receives a lot of benefit from iron-ore mining to the east.
Ryder says there have been delays in getting the $6 billion Oakajee port off the ground, but believes it will happen.
“And when it does go ahead, it will take Geraldton to another level."
Another project which Ryder says tends to be overlooked is the $3 billion Square Kilometre Array (SKA) project, which will be the world’s largest and most sensitive radio telescope, to be designed and constructed in the desert to the east of Geraldton (alongside a twin project in South Africa) between now and 2024.
“This will make Geraldton a city of international importance,” Ryder says.
Looking back over the success of Gladstone and other established hotspots, Ryder says the trend witnessed in boom markets is that rents are the first to rise, before prices go up.
“We noticed this in Gladstone in 2011, where there were massive rental increases but prices did not move at all."
Ryder says the prices rises in Gladstone happened this year with price growth in various Gladstone suburbs of 16% to 17% - about one year after the rent rises.
He says a lot of people have been emailing him about Gladstone asking if it is too late to invest.
 “I think it is too late to get the best growth prospects, although there still will be growth.
“You still have $70 billion worth of LNG projects under construction, a $5 billion steel mill is still to start and there is the expansion of the port and rail, which will bring lots of jobs to Gladstone.
 “But my point is that the best time to invest in Gladstone was two years ago.
“When that new [housing] supply comes in, there is the risk there will be too much – and one for investors to be cautious about,” he says.
For more on Terry Ryder's hotspots selections for 2013 and the three other regional locations that could be the next Gladstone, watch the full free webinar  - <a href="/news">Regions versus capital cities - where to invest in 2013?</a> 
 
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Investors should look at Geraldton as future Gladstone style hotspot: Terry Ryder

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The combined capital city auction clearance rate was recorded at 51.6% last week, up from 47.1% the previous week. Across the capital cities, there were 2,175 auctions last week, while at the same time last year, there were 2,057 auctions and the clearance rate was recorded at 44.9%.
Melbourne’s auction clearance rate was recorded at a strong 57.8% last week, up from 53% the previous week. There were just fewer than 1,000 auctions across the city over the week, up slightly from 986 the week prior. At the same time last year, Melbourne’s auction clearance rate was recorded at 45.5%. In Sydney, auction volumes were slightly lower last week, when 774 auctions were held across the city, down from 791 the week prior. The clearance rate increased from 45.8% the week prior to 54.4% last week.
It is expected that there will be around 2,100 capital city auctions next week in another busy week prior to the slowdown over the Christmas and New Year period.
Click to enlarge
<a href="/images/stories/2012/12/rpdec11.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/12/rpdec11thumb.gif"></a>
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Auction clearance rates pick up in lead-up to Christmas and New Year period: RP Data

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Negative gearing has worsened the housing crisis and cost taxpayers billions of dollars: Philip Soos
Few Australian housing policies are more <a target="_blank" href="https://www.prosper.org.au/wp-content/uploads/2012/09/Philip_Soos_Written_Off_Negative_Gearing.pdf">contentious than negative gearing</a>. Despite the publicity it has received and its popularity with government and property investors, little analysis of negative gearing can be found within easy reach, with much of it accessible only in academic journals. Only an occasional fragment is found in the mainstream media.
Australia’s policy on negative gearing is considered a sacred cow by investors and politicians, with <a target="_blank" href="https://news.domain.com.au/domain/home-investor-centre/blogs/domain-investor-centre-blog/what-housing-policy-20120621-20pcl">Prime Minister Julia Gillard</a>, <a target="_blank" href="https://www.theaustralian.com.au/national-affairs/treasury/wayne-swan-stands-by-negative-gearing/story-fn59nsif-1226321644363">Treasurer Wayne Swan</a> and <a target="_blank" href="https://www.couriermail.com.au/news/breaking-news/housing-crisis-negative-gearing-will-stay/story-e6freono-1226462610490">Federal Housing and Homelessness Minister Brendan O'Connor</a> ruling out changes to this policy. The reason for this obstinacy is that negative gearing allows a property investor to deduct losses against the investor’s personal income of the investor at their marginal tax rate (MTR), a tax minimisation strategy adopted by 1,110,922 taxpayers who vote. Property is run at a net loss when interest payments and property-related expenses like <a target="_blank" href="https://www.ato.gov.au/content/downloads/IND00270214N17290611.pdf">repairs and maintenance</a> exceed rental income.
The strong Australian economy has not experienced a recession since the early 1990s. This along with reduced personal tax burdens, real rising incomes, extensive property<a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=hsaf_ctte/report/report.pdf">subsidies</a> and <a target="_blank" href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=hsaf_ctte/report/report.pdf">tax breaks</a>, and rapid increases in property values, delivered an economic environment conducive to negative gearing. From 1996 to 2010, housing prices surged by 130%, adjusted for inflation and quality.
The present <a target="_blank" href="https://housingstressed.org.au/wp-content/uploads/2011/09/Australias_Broken_Housing_System.pdf">housing and rental affordability crisis</a> is placing tremendous <a target="_blank" href="https://housingstressed.org.au/wp-content/uploads/2011/10/Housing-costs-through-the-roof-Final-Report.pdf">financial stress</a> on many Australians as <a target="_blank" href="https://www.rba.gov.au/speeches/2008/images/sp-so-270308-graph1.gif">housing and rental prices have outpaced wages</a>, and provided the spark for the public to question the validity of subsidising investors, whether they choose to gamble on making a return by selling property at a higher price or eventually becoming cash flow positive when rents rise to exceed outgoings.
Despite the fact that negative gearing has existed for a long time, much assertion but surprisingly little evidence has been made to justify this policy across all classes of investment, whether it be shares, business, or property investment. The supporters of negative gearing provide negligible evidence to show that is it a sound policy.
Deductibility and tax minimisation under negative gearing
It is common sense that both businesses and investors should be allowed to deduct the costs directly incurred in making an income, but labour is unable to do so. A salaried employee incurs substantial costs in the course of earning a wage (for instance, accommodation, travelling to and from the workplace, and childcare) but government policy bars deduction of these costs against wages.
There is a double standard in operation here. From a distributional or equity perspective, this policy is biased towards the <a target="_blank" href="https://taxreview.treasury.gov.au/content/downloads/report/Architecture_of_Australias_Tax_and_Transfer_System_Revised.pdf">wealthy</a>, as business and investment capital <a target="_blank" href="https://www.melbourneinstitute.com/downloads/working_paper_series/wp2004n12.pdf">ownership</a>is concentrated into this class, which relies proportionately less upon wages.
The disparity between wage earners and investors is exacerbated when negative gearing is considered. The net income loss from an investment property reduces the investor’s personal tax liability, even though that loss was generated elsewhere. Earning a wage and earning income from an investment are two separate activities and should be treated as such. Business commentator Alan Kohler <a target="_blank" href="https://www.propertyobserver.com.au/https://www.smh.com.au/articles/2004/06/28/1088392603764">accurately summarised</a> the inconsistency between investment and employment:
Five years ago treasurer Peter Costello told Australians: “Work for a living and we’ll tax you at close to 50 cents in the dollar; speculate and we'll only take 25 cents. Not only that but, as a special deal – while stocks last – we’ll pay half your speculating costs.”
To sum up this line of reasoning, investors are unduly advantaged by the present taxation arrangements relative to labor. Investment capital is overwhelmingly concentrated in the wealthiest households, who deduct investments costs against income generated, have the highest personal incomes and thus MTRs, can deduct investment losses against their personal tax liability (negative gearing), can carry forward losses and lower their effective MTRs.
Clearly, the tax system is biased towards the rich in terms of cost deduction and tax liability minimisation. Some of this bias can be reduced by maintaining consistency: labour should be allowed to deduct costs against wages but disallow negative gearing for investors.
 Increasing the rental stock and lowering rents
This is the <a target="_blank" href="https://media.hia.com.au/enews/industryupdate/iss3/media/Negative_Gearing_Feb11.pdf">primary argument in favour of negative gearing</a>, that it provides an incentive to investors to purchase property for rent, thus increasing the supply of rental properties as a proportion of the total housing stock. As the reasoning goes, negative gearing holds rental prices down, benefitting tenants.
The evidence shows otherwise: <a target="_blank" href="https://www.macrobusiness.com.au/2011/04/negative-gearing-on-the-nose/">92% of residential property investment</a> is for the purchase of existing dwellings rather than those newly constructed, meaning that former owner-occupiers and tenants have to purchase or rent elsewhere, respectively, thus resulting in little to no net increase in the supply of rental dwellings.
In the long term, it makes little sense for the supply of rental properties to increase compared to the total residential stock unless there is a profound upward swing in housing prices, with investors spurred into the market on expectations of making a substantial profit through realising capital gains upon sale. Accordingly, there is little incentive when<a target="_blank" href="https://debtdeflation.com/blogs/wp-content/uploads/2010/09/KeenCLSAReportHandOfGov.pdf">long-term data</a> from Australia and other countries shows that housing prices track inflation, despite numerous and ongoing booms and busts.
Negative gearing is also <a target="_blank" href="https://www.propertyobserver.com.au/https://www.austlii.edu.au/au/journals/DeakinLRev/2002/17">badly targeted</a> as high-income professionals and millionaires also allegedly receive lower rents along with those who do need it. If policymakers are concerned about rental affordability, there are other options to pursue. The obvious candidate is the Centrelink <a target="_blank" href="https://www.humanservices.gov.au/customer/services/centrelink/rent-assistance">Commonwealth Rent Assistance</a> (CRA) scheme, a subsidy provided to low-income tenants.
The effects of quarantining negative gearing in the 1980s
The <a target="_blank" href="https://www.theage.com.au/business/a-negative-impression-20110501-1e30g">favourite scare story</a> promulgated by the housing lobby is that when the Hawke/Keating government quarantined negative gearing during 1985-87, it caused rental prices to surge, quickly leading to its reinstatement. Fortunately, not only did the evidence refute this <a target="_blank" href="https://www.theage.com.au/business/time-to-change-the-unfair-rules-for-negative-gearing-20110424-1dsu6">urban myth</a>, it showed that negative gearing can be safely quarantined, if not abolished.
Rents rose in Perth and Sydney only, remained steady in Melbourne and Canberra, and fell in Brisbane, Adelaide, Hobart and Darwin. If the lobby was correct, quarantining should’ve adversely affected all capital city rental markets equally, not just two out of eight (even when factoring in a lagged response). There were <a target="_blank" href="https://www.asb.unsw.edu.au/research/publications/ejournaloftaxresearch/Documents/paper4_v3n1.pdf">confounding factors at work</a>: rising interest rates, introduction of capital gains tax and a stock market bubble.
Oddly enough, while the lobby claims that quarantining will increase rents, the inverse is not considered: rents have escalated from 2006 onwards while negative gearing was in effect. Perhaps they could claim that rents would’ve been higher otherwise, but this is an ad infinitum argument, that is, negative gearing is not generous enough, so by increasing the scope of tax deductibility, it can serve to further constrain rents.
How much does negative gearing cost?
ATO data provides an estimate of the cost of negative gearing: in 1993-94 it was $850 million, fluctuating around the $1 billion mark over the next several years. As investors piled into the market, the cost rapidly escalated to a peak of $3.8 billion in 2007-08 before falling to $2.9 billion in 2009-10. Over the last 17 years, negative gearing has cost taxpayers an inflation-adjusted $33.5 billion (2012 dollars).
What to do?
Policy outcomes can be enhanced by quarantining negative gearing deductions to the purchase of newly constructed properties but not for established properties. It would be even better to remove it, as it makes little sense to subsidise property investors, regardless of the reasons for investment when there are <a target="_blank" href="https://housingstressed.org.au/2012/08/30/aah-releases-a-4-point-plan-to-fix-our-housing-crisis/">better policies</a> for helping low-income tenants.
Also, the negative gearing debate presupposes the existence of income taxation, which has no justification when <a target="_blank" href="https://www.prosper.org.au/wp-content/uploads/2007/11/dwyer-tax-resources.pdf">evidence suggests that substantial amounts of tax revenue</a> can be raised from far more efficient bases. Income tax is one of <a target="_blank" href="https://www.taxreview.treasury.gov.au/content/html/Publications/papers/report/image/section_2-2.gif">125</a> <a target="_blank" href="https://taxreview.treasury.gov.au/content/html/commissioned_work/downloads/KPMG_Econtech_Efficiency%20of%20Taxes_Final_Report.pdf">burdensome taxes</a> that productive individuals and business bear the brunt of.
According to the property lobby, it’s <a target="_blank" href="https://www.smh.com.au/business/negative-gearing-is-safe-from-tax-review-treasurer-hints-20100326-r34t">too dangerous to reform negative gearing</a>, let alone abolish it. Fortunately, there’s no requirement for anyone to believe the lobby, given the weight of evidence against their assertions and the fact that they have enough conflicts of interest to fill a book.
Philip Soos is a researcher at the School of International and Political Studies at <a target="_blank" href="https://www.deakin.edu.au/">Deakin University.</a>
Property investor Melanie Stott responds on page 2
 
<hr class="system-pagebreak">
Negatively geared property investors' contributions far exceed their tax breaks: Melanie Stott
 
OK, Philip Soos, I’ll bite.
Your article earlier this week on negative gearing has really ticked me off – and you can’t call me ‘the property lobby’ because I’m primarily a stay-at-home mum and a part-time journalist who used to run around after politicians for a living on the telly.
I’m a property investor too – thank goodness – but I should warn you that negative gearing on property investments all through my 20s certainly paved the way for me to spend the last seven or so years at home, raising two new little taxpayers. You’re right, what a dreadful policy, only benefiting “the rich”.
Who are these “rich” people?! Let’s find them and burn their houses down! They’re certainly the bad guys <a target="_blank" href="/news">in your article, Mr Soos.</a>
I could go on and on about the benefits of private investment in the property industry, despite your determination not to understand them. Try to think of it, if you would, as the original public-private partnership. Governments always have and always will need private citizens to invest in property, therefore providing a bigger rental pool for other private citizens. I hate to be all anti-progress about it, but there just isn’t a better way of doing it for a lazy $3 billion a year.
For this very large effort and ongoing commitment by the investors, there needs to be some sort of reward. People everywhere are great, but generally speaking in a business sense, people don’t do things for others for free.
The point of my response is not to get bogged down in policy debate. What I can tell you is what’s happening on the ground. Negative-gearing property investors are people, too. We’re workers, we’re mums and dads, we’re small business owners, and we’re taxpayers. We’re putting in the hard yards on the ground in the rental industry, and we’ve been doing it for years. Years and years.
I’ve renovated for profit every night and weekend for months, I’ve responded to tenant disasters in the middle of the night, I’ve picked up the pieces when good tenants go bad, I’ve experienced the best and worst of human nature as a self-managing lessor.
I’ve claimed losses, I’ve paid capital gains tax, I’ve put profits back into the economy and I’ve saved money to live off while our children are small. I’m also unlikely to need a pension in retirement –  here’s hoping, anyway. 
I’m far from a blight on society, Mr Soos, and I’m certainly not alone. As you’ve pointed out, there are well over a million property investors just like me. We’re a brave lot, and I firmly believe – no, I know, from experience – that our significant contribution outweighs our tax breaks.
Yes, some of us speculate, but many other taxpayers choose not to take on the associated risks and extra hard work. That’s their choice. That’s the difference.
By the way, your assertion that “a salaried employee” doesn’t get tax breaks associated with earning an income, is also wrong. Anyone who works or studies 20 hours or more per week gets 50% of their childcare costs back, paid quarterly, not annually in a tax return. I have no idea why you think “accommodation” is a legitimate work expense – it’s not. We all have to sleep somewhere, job to go to in the morning or not. That’s why it’s called a living expense.
Don’t get me started on your suggestion that perhaps negative gearing should only be applied to new property. Property investors are clever, but you won’t find many of us out and about on the weekends knocking up our own structures from scratch. Why would we want, as a nation, to hand a bigger break to the multinational building firms, which would no doubt whack a premium on top of their house-and-land or apartment package prices for investors, purely because they’d be the only products able to be negatively geared?
If you think there are any “millionaires” out there receiving low rents as a result of negative gearing, well, you’re wrong there, too. No property investor worth their salt sits down and works out the lowest rent they can charge based on what they’ll get back from negative gearing. It doesn’t work that way. It’s called market forces. I can ask $1,000 per week for a shack, but I won’t get it unless it’s comparable with other shacks on offer at the time. It’s unlikely there are any millionaire or high-income tenants paying less than market rent simply because the landlord is negative gearing.
And finally, a little more sense about the maths, please. Let’s all remember that tax refunds received as a result of negative gearing still represent a portion of the total losses on a property during a financial year. No one is investing in the hope of losing $20,000 per annum on a rental so they can get $10,000 (or less) back. They’re out of pocket by $10,000 on an investment!
Every property investor, big or small, is restricted by income. I can’t speak for the casino-owning Packers of the world, but I can confirm that while many mums and dads would like to own a whole street of rentals, most of us can’t – we couldn’t sustain the out-of-pocket repayments. Making it harder for us to be fairly small fish in the rental sea really doesn’t make sense, or good policy.
The aim of public policy should be to encourage private investment (and wealth creation for all), not whack it mercilessly and stomp on it until it’s shattered, and then wonder why government housing queues are getting longer.
I’m also not sure whether you realise that the perceived health of the property market helps determine that whole Reserve Bank interest rate decision each month? It’s pretty big. Screw with property and watch interest rates move, one way or another. With fairly limited options these days for capital growth, there’s never been a worse time to even think about dropping negative gearing.
Over a million of us would run a mile. 
Melanie Stott is a freelance journalist and regular contributor to <a href="https://www.hotspotting.com.au" target="_blank">The Ryder Report</a>. She also writes for Michael Matusik and works as a TV News producer in Brisbane. Melanie and her husband Andrew own <a href="https://www.paradiseatthepoint.com.au" target="_blank">Paradise at the Point</a>, the Gold Coast holiday house featured in 2012’s Big Brother series– and it’s positively geared.
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Room for Debate: Should negative gearing be abolished?

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The median house price in the remote Queensland regional town of Cloncurry rose 35% in the past 12 months. In the same period, the median house price in the upmarket Sydney suburbs of Double Bay fell 35%.
That is the black and white of property markets around Australia. In between, across the thousands of suburbs and towns in this country, have been many different shades of grey.
Some markets have boomed, some have grown moderately, some have stagnated, some have gone a little backwards and some have gone into reverse rapidly.
Those at the positive end of the growth scale are overwhelmingly in regional areas with some influence from the resources sector. Those at the negative end are mostly upmarket suburbs in capital cities.
The simple message in this? There’s no such animal as “the Australian property market”.
Next time you hear an analyst discussing what will happen in the Australian property market next year, you can assume you’re listening to a charlatan. There are surprisingly large numbers of them getting airplay.
People keep asking me what will happen next year in the property market, and I keep asking them which market they’re referring to. There are dozens of different answers I could give, depending on location and market segment.
 
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The key to success in property investment in 2013 is understanding that there is not a single market out there. There are thousands of them. Next year, more than ever, the market will be highly segmented. There will be boom markets and there will be disasters, and numerous variations in between. Prosperity depends on distinguishing one from the other.
Given the record numbers of consumers who registered for the <a href="/news">webinar I conducted last week with Property Observer</a>, there’s a lot of interest in what might happen in real estate next year.
We’ve seen some recovery in capital city prices, we’ve seen an improvement in consumer sentiment and we’ve had a sixth interest rate cut. What are the prospects for next year?
Overall, many markets will be stronger in 2013 than this year. There is a gathering of indicators pointing in the right direction, including the number of new housing loans, the improvement in affordability, the rise in consumer confidence and the impact of interest rate reductions.
But there will not be a uniform movement in markets. Among the eight state and territory capitals, for example, I see strong upward trends for Perth and Darwin, solid increases for Sydney and Brisbane, moderate improvement in Adelaide, stagnation in Canberra and further decline in Melbourne and Hobart.
There will, of course, be variations within each of those cities, with some locations doing better than others, influenced by local factors such as new infrastructure and improved affordability.
Beyond Darwin and Perth, which are the standout contenders among the major cities, I see the best opportunities being found in the regions.
That was undoubtedly the case in 2012, and it will still be so in 2013.
Keep watching this space, as in coming weeks I will discuss some of the regional markets I see thriving in the 2013 economic environment.
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>.
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Best opportunities for property investors will be in regional areas with mining influence in 2013: Terry Ryder 

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Australia’s already highly-concentrated listed property trust sector is set to consolidate even further following GPT’s $3 billion bid to acquire Australand’s investment property portfolio and commercial and industrial business.
GPT’s non-binding proposal does not include the residential assets and business of Australand.
It has been described as a “semi-friendly” approach with GPT looking to enter into “constructive discussions with the board of Australand with the aim of developing a complete proposal in the interests of both sets of securityholders”.
GPT is seeking to re-weight its portfolio and strategy with an increased exposure to office, logistics and business parks while Australand has been seeking to reduce its non-residential holdings having announced the sale of two Sydney commercial properties in the last week.
It sold 80 Alfred Street in Milsons Point to a private developer for $49 million on December 7 and on December 4 announced the sale of the 111 Darlinghurst Road, Kings Cross (the former Crest Hotel) to the Iris Capital Group for $65 million.
Australand has confirmed the unsolicited approach from GPT Group.
“The proposal involves Australand Holdings Limited retaining the residential business and remaining a listed entity," says Australand.
“The proposal is incomplete, highly conditional and is subject to a number of factors including undertaking due diligence.
“Australand has become aware of market rumours in relation to this proposal and, accordingly, has decided to make this announcement.
“The Board of Australand has not formed a view at this stage on the proposal. There is no guarantee that the proposal or any discussions with The GPT Group will lead to a formal, binding proposal for the acquisition of the Investment Property Portfolio and its Commercial and Industrial business. Accordingly, the Board of Australand recommends that securityholders take no action at this time.”
Both REITS have said they will keep their shareholders and the market updated of any further material developments as they occur.
Australand has appointed Fort Street Advisers as financial adviser and King &amp; Wood Mallesons as legal adviser in relation to the proposal.
GPT Group has been led by Michael Cameron since 2009 while Australand has ben led by Bob Johnson since 2007.
Australia’s listed property trust sector (AREITS) has a market capitalisation of $82 billion with more than 90%  of the market held by the top 10 stocks, with Westfield Group and its shopping centre spin-off Westfield Retail Trust accounting for around 40% of the pie.
The other major A-REITs are Stockland, Goodman Group, GPT, Centro, Mirvac, Dexus, Investa, Charter Hall Office REIT and Multiplex.
The proposed GPT/Australand deal is set to spur renewed merger and acquisition activity, after a quiet 2012 with the Investa Office Fund considered the most vulnerable along with Colonial First State – Commonwealth Property Office Fund and CFS Retail, according to the Australian Financial Review.
According to 2012 BDO A-REIT Survey, this year saw less transactions taking place than in 2011, but more interest from offshore buyers.
Over 2012, “offshore acquirers were at the forefront taking advantage of the opportunity to acquire high quality assets at a discount to net tangible assets with a consortium led by Reco Ambrosia acquiring Charter Hall Office REIT.
According to the BDO survey, while the number of merger and acquisition transactions within the sector declined in comparison to last year, the overall transaction size increased as the transaction activity focused primarily on mid-cap A-REITs.
“Despite the sustained impact on the high Australian dollar, acquisitions were again led by foreign investment, in particular from North America. Overseas buyers have been attracted to A-REITs for two reasons.
“Firstly, some buyers have capitalised on depressed security prices in order to acquire foreign real estate in recovering markets at below asset valuation. Secondly, Australian real estate remains attractive to overseas investors due to the stable economy, and the underlying quality of assets with occupancies and strong tenant registers,” says Sebastian Stevens, BDO corporate finance partner and author of the A-REIT Survey
 
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GPT $3billion bid for Australand portfolio to spur further consolidation activity in already concentrated A-REIT sector

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Two articles that caught my attention last week were <a href="https://m.smh.com.au/victoria/warnings-as-outer-suburbs-property-market-teeters-20121128-2aefh" target="_blank">Chris Vedelago’s</a> excellent piece on Melbourne’s outer-suburban estates where buyers who previously committed to a house-and-land purchase using a “holding deposit” of some $500 to $1,000 (or in some cases 5%) were cutting their loses and cancelling projects following an inability to gain finance as a result of the post-boom slump – an inevitable consequence of short-term first-home buyer grants and incentives.
The other was Roz Hansen’s excellent speech – originally delivered at The Sambell Oration to the <a target="_blank" href="https://www.bsl.org.au/">Brotherhood of St Laurence</a> ” entitled “A Tale of Two Melbournes? The Disparities of Place and How to Bridge The Divide” and <a href="https://www.propertyobserver.com.au/victoria/melbourne-must-plan-for-its-future-growth-of-outer-suburbs-or-social-economic-and-environmental-problems-will-escalate-roz-hansen/2012112858154" target="_blank">printed in Property Observer last week.</a>
Vedelago’s article pointed out the harsh consequence an inevitable rush to market induces when foolhardy first-home buyer grants are introduced and subsequently scrapped in an attempt to boost new home sales.
According to the report (in which the research was derived from the “specialised urban research organisation” Research4), developers have had nearly 1,800 lots returned this year as plans to build new homes were scrapped.
Other data from Research4 indicates that a drop in Melbourne’s land sales accounted for an 83% overall fall in the national number of land transactions from the peak of the second quarter 2010 to first quarter of 2012.
On the face of it, the data is shocking, however it’s not surprising. The 2009-10 boom in land sales was driven wholly by a rollerball of acquisitions induced principally by first-home owners taking advantage of increased state grants and the additional federal first-home owner boost –not to mention the low interest rate environment.
The effect subsequently inflated Melton’s population by some 7,535 new residents and increased the median lot price by a lofty 60%, which, according to ‘Research4’, made it the “fifth most expensive land market out of 33 submarkets across Australia”.
The foolhardy nature of inducing so many residents to move into a sparsely facilitated suburbs, lacking in essential infrastructure – and subsequently abandoning them in “never never land” as grants are scrapped, causing land prices to fall sharply, seems to be of no consequence to state governments, which are busy introducing yet another round of incentives to stimulate (prop up) the construction industry in outer suburbia.
Hansen voiced thoughts I have shared in many of my columns for Property Observer – principally the poor planning and failed “infrastructure” promises that equate to municipalities where residents are more likely to suffer health issues such as eating disorders and depression accumulating from inadequately integrated and facilitated communities.
As I have previously mentioned, unless we address the core issues behind our new greenfield estates, recent history will keep repeating itself and the outer suburbs will (for want of a better word) become the relative ‘ghettos’  of Melbourne town.
It would be far more sensible to build up already facilitated satellite towns such as Geelong and Ballarat in Victoria as an example, and continue to extend our train and public transport amenities, than create new suburbs of sprawling Mc Mansions where the trade-off of a bigger house is of little consequence once you step outside the front door.
 
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Perhaps Australia wasn’t hit hard enough by the GFC to learn valuable lessons in community innovation and sustainability?  Instead governments seem to concentrate their efforts on how to continually prod and poke the housing market under the misguided hope a jump in construction and resurgence of pre-GFC booms are the economic drivers that could rescue state and federal balance sheets as we enter 2013.
The HIA (which understandably are not unbiased in its commentary) on the one hand screams how ‘affordable’ housing is, with its ‘housing affordability index’ showing levels are back to the early 2000s.  And yet, at the same time the HIA informs us that “The RBA must cut interest rates to bolster the chances of a housing recovery in 2013.”
What the HIA fails to address is how home owners will survive when rates finally rise and the incentives that the industry advocates ad infinitum are once again withdrawn.
First-home owner’s grants and low interest rates are of no long-term help to a failing construction industry.  All they do is provoke an endless series of relatively short-term boom and bust cycles – hurting construction workers and home buyers over the long term and providing a great example of Einstein’s beautiful definition of Insanity – “doing the same thing over and over again and expecting different results“.
Hansen mentions that landlocked residents need to turn to “buses, walking and cycling”.  However, in a  recent study prepared by” Adelaide thinkers in residence”, it was noted that in the absence of train lines,  “when driving is the only option for travel – then walking and biking are abandoned”. In other words, they are not preferred modes of transport for our 21st-century generation outside of recreational activities.
For outer suburbia, we need train lines – firstly because people need a fast way of commuting to existing workplaces and inner-city amenities, and secondly, because factories and additional jobs will not “up sticks” and move outwards if the only option they have to recruit staff is in a local neighbourhood of falling land sales and poor infrastructure facilities.
Research4 also made comment that “Melbourne’s first-home buyers could soon be priced out of the new homes market unless the state government returns a $13,000 grant scrapped in June”.
It bases its research on the stark reality that outside of an incentive-fuelled environment,  in which buyers have an uninfluenced period of time to think about their purchase, a large majority  opt not to buy in outer suburbia for profoundly obvious reasons.  Reasons that must be addressed before a construction boom can adequately address both housing affordability and population growth.
 
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Melbourne’s market in particular is a concern because an unprecedented decade of growth has led to a housing market that is clearly overpriced for a growing minority of buyers. Even an uplift in transaction levels as we finish the year with a Christmas rush of bumper auction activity hasn’t spurred values with RP Data recording a 1% fall in dwelling medians for the month of November and a 2.5% drop for the year to date.
A lack of first-home buyer activity has been noted by a number of players.  In a recent article that recognised “the lower interest rates are not causing [first-home buyers] to rush into new dwellings,” Meriton’s Harry Triguboff commented that the Reserve Bank would need to drop rates more than a “quarter or even half a per cent” to boost spending.
Obviously Triguboff is looking for a quick solution best served to his own interests – principally boosting sales of his high-rise developments.
However, issues of affordability can only be addressed by rectifying the disparities in the type of accommodation available for the first-home buyer demographic and ensuring it is “foot through the door” affordable.
Currently the only choices on offer are either a) out of price reach - especially for single-wage purchasers, b) not in a location that provides a viable trade-off between the cost of commuting and purchasing, or c) in accommodation that first-home buyers are prevented from purchasing due to restrictions from various lending institutions.
As a case in point, back in 2011 when Melbourne’s Fishermans Bend (”Australia’s first inner-city growth corridor”) was mooted, Planning Minister Matthew Guy stressed the project would focus on affordable housing.   However, he was either misleading the public or ignorant of the core drivers that boost buyer activity, because as a number of commentators and planners pointed out at the time, in order for the suburb to work  and not become another Docklands, there would need to be a mix of low-density housing well suited families and first-home buyers .
However, it’s now revealed Melbourne’s new CBD zoning has all but ensured the area will be dominated by high-rise developments fitted out to appeal to the predominant market for high-rise accommodation – principally Asian investors, who (when compared with Aussie home buyers) have cash to burn, value high-spec accommodation and are certainly not in the market to offer rental rates for less than premium returns.
Hansen ends her speech stressing that she is ‘optimistic’ about the fate of Melbourne, although she hopes futures aspirations will not be ‘business as usual’ - however, I am less optimistic.  Successful long-term planning policies require a fundamental change in the way both town planners and ministers think about housing.  In essence this means looking up from the budget books and enforcing a much stronger collaboration between both state and local community.
However, if the scheduled council meetings and calls for public opinion are then followed by the same old course of action regardless of local opinion, 20 years down the line and Einstein’s theory of insanity will once again reach fulfilment.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
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Building more outer Melbourne suburbs without infrastructure a foolhardy move

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A heritage-listed  B &amp; B guesthouse in Hobart constructed of sandstone and convict bricks, built in 1829 has been listed for leasehold sale.
This North Hobart guest house has a price tag of $465,000, with a wide and varied history, having had many different uses over the years.
<a href="https://www.thelodge.com.au/" target="_blank">The Lodge on Elizabeth </a>operates as an accredited four-star accommodation abode, with 13 ensuite rooms and a cottage set in a garden at the rear of the property. There is also a breakfast room, guest lounge, small kitchen and  modern two-bedroom owner's  quarters.
The stately Georgian mansion is situated at 249 Elizabeth Street has operated as a guest house since the early 1990s, with the exterior maintained by the interstate landlord.
Lodge on Elizabeth was originally know as the Melbourne Lodge, built by John George Stracey, who was the colony's first auctioneer. It became a private boys' school in 1831, and later the home for George Salier and his 14 children. The Argus newspaper reported that in June 1892, making his way home from his warehouse, George Salier fell dead in Elizabeth Street. He "staggered, fell and never spoke again" .
There were many other notable residents, including Sir Adye Douglas who was the Tasmanian premier between 1884 and 1886.
The lodge promises to offer guests an "olde world" experience as opposed to a bland motel room and includes cellars with evidence as to where convicts have been chained and period furniture.
The property is listed for sale by <a href="https://www.realcommercial.com.au/property-hotel+leisure-tas--500529803" target="_blank">Paul Scott of Tourism Brokers</a>.
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Hobart guesthouse built from convict sandstone with rich colonial history listed for leasehold sale

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Have you ever wondered why politicians are so universally distrusted when so many of them work 24/7 for the benefit of their communities?  It’s because they use 90% of their media time telling us that other politicians are not to be trusted.  As a result we don’t trust any of them.
I find it really disappointing when this attitude spills over into other areas of our lives, and so it is with this in mind that I write in response to the article by Margaret Lomas on Property Observer entitled <a target="_blank" href="https://www.propertyobserver.com.au/residential/nras-is-a-tax-scheme-a-property-investment-must-stack-up-on-its-own-margaret-lomas/2012120258187?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=observers">“NRAS is a tax scheme”.</a>
Lomas’s article has sought to demonise NRAS and people associated with NRAS by the use of inflammatory language like “greedy developers”, “flippant claims”, “prostituted for gain” and “misleading in the extreme”.  It is this approach to commenting on property investing that leads to people distrusting property investment in general.  The result is that many Australians may miss out on potential investment benefits through analysis paralysis and “whom do I believe?” syndrome.
Like many other areas of business, and indeed our lives, NRAS and the property investment field in general may have its share of people who do the wrong thing, but there are also many professionals working for the benefit of not only investors but also the NRAS tenants.  Lomas's pen portrait of NRAS is inconsistent with the fact the 57% of all NRAS allocations have been made to endorsed charities that are not-for-profit organisations.
My company has specialised in NRAS property services for well over two years.  We have sold property from most of the major NRAS-approved participants to clients throughout Australia and have provided mortgage broking, financial planning, self-managed superannaution fund and legal services related to NRAS purchases.  We are better placed than any other company or organisation in the country to know the facts of NRAS.  So let me address some facts relevant relating to Lomas's article.
She asserts that “It’s pretty easy to counter the flippant claims of NRAS marketers” and uses three points to support her argument but all three are inaccurate and poorly researched.  Let me take each in turn:
<ul>
<li>“Middlemen” make big commissions – Almost all property (investment and owner-occupier alike) is sold by real estate agents who earn their income from commission on sales.  All property prices factor in agent commissions and marketing costs.  The vast majority of commissions being paid on properties sold are well under the $20,000 that Lomas claims as a minimum.  I accept that commissions offered in Queensland have for years been higher than other parts of the country, but this applies to both NRAS and non-NRAS property.</li>
</ul>
Furthermore the commissions we earn on sale of NRAS properties are well earned.  The government has spent nothing on promoting the scheme or educating investors.  It has been left to companies like ours to do the heavy lifting on educating investors in a highly beneficial and socially responsible investment. It has been appreciated by our clients.  We have provided hundreds (if not thousands) of hours of education, seminars and advice to our clients free of charge that other companies charge for.  Earning commissions from vendors enables us to do this without charging our clients. 
<ul>
<li>
Oversupply – Lomas claims that NRAS allocations are made in lots of 100.  This is incorrect.  The size of allocations has varied.  The minimum allocation size has been 12.</li>
</ul>
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There are only a small number of areas where 100 or more NRAS allocations have been made.  Official government figures show that NRAS allocations have been made across 849 postcode areas.  Of these 639 areas have less than 50 allocations.  There are some postcode areas with large allocations, for example, in <a target="_blank" href="/news">Bruce </a>in the ACT, but these allocations have been made to large institutions such as the Australian National University and will not be available to individual property investors.
The conclusion is that there is no evidence that NRAS properties are being released in large enough numbers into individual markets to push down market rents.
<ul>
<li>
NRAS allocations and hotspots – Lomas claims NRAS properties are rarely in hotspots.  Hotspot locations are a matter of personal opinion, but let’s just look at how NRAS rates in some of the locations Lomas has identified as hotspots in the Property Observer article on  October 8: <a target="_blank" href="https://www.propertyobserver.com.au/hotspots/plenty-of-regional-hotspots-to-tempt-investors-as-market-hovers-at-five-oclock-on-property-clock-margaret-lomas/2012100757021">“Plenty of regional hotspots to tempt investors as market hovers at five o’clock on property clock: Margaret Lomas”</a>.</li>
</ul>
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Here are Lomas's hotspots and the number of NRAS allocations in each:  <a target="_blank" href="/news">Ballarat </a>(443 NRAS allocations), <a target="_blank" href="/news">Bendigo </a>(267), <a target="_blank" href="/news">Gladstone </a>(243), <a target="_blank" href="/news">Mackay </a>(313) and <a target="_blank" href="/news">Toowoomba </a>(146).  I think there is fair opportunity for hotspot buying.
Lomas claims NRAS is purely a tax scheme.  If this is the case then so too is superannuation and non-NRAS property investing.  The provision of tax incentives by the government for superannaution and property investing in general underlie investing in these areas.  We saw when Paul Keating removed negative gearing incentives for property investors that the effect was so dramatic that he had to quickly reinstate them.
 
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There is absolutely no comparison between NRAS properties and failed agriculture investment scheme, as Lomas implies.  NRAS properties are owned outright by the investors and can be sold as non-NRAS properties to investors or owner-occupiers at any time.
NRAS, which has been modeled on similar successful overseas initiatives, provides additional tax incentives on top of other forms of property investment, but it also offers plenty of choice of assets to purchase.  There are apartments, townhouses, and houses across 849 postcode locations Australia-wide.
One point where I do agree with Lomas is that investors should be buying NRAS property, like any other property, on its investment merits.  For residential property the name of the game is capital growth, and we always have this discussion with our clients before they buy.
NRAS properties sit side by side with non-NRAS property and have the same capital growth potential.  But why buy a non-NRAS property with negative cashflow when the NRAS one next door has the same capital growth potential with positive cashflow?
In relation to the private tax ruling that Lomas refers to in the article, we have recently become aware of this private ruling also.  Lomas  implies that this ruling is some proof of a marketers'/developers' plot to mislead property investors.  Conspiracy theories are best left to Hollywood.
Let’s be clear on what the ATO private ruling means.  The ruling that she refers to is specific advice to one person by the ATO in answer to questions raised by that person pertaining to their own personal circumstances.   Whilst the ruling may have general applicability it is not necessarily the case.
We have been in contact with a number of NRAS-approved participants in relation to this advice, and they were not aware of it.  It is clear that this ruling has come out of left field for those involved in NRAS.  I believe that the issue has now been taken up by one or more of the NRAS-approved participants with the government, as it is seen as inconsistent with the intent of the scheme.  The government's NRAS website states “investors are able to apply property expenses and non-cash deductions and allowances against a lower assessable rental income, increasing the negative gearing benefit”.
That said, we have reassessed the cashflow modeling for NRAS properties taking into account this ATO ruling.  Whilst the cashflow is reduced, we disagree with the size of the claimed impact.  Everyone’s circumstances are different, but we would still expect the majority of people to be able to buy an NRAS property with positive cashflow.
When we started with NRAS it was largely unheard of by property investors.  It has gathered momentum now and is more widely known but unfortunately recent promoters of NRAS and promoters of alternatives to NRAS have often not got their facts straight.  So let’s get the facts straight, encourage our clients to embrace property investment no matter what their investment choice, and leave the inflammatory demonising to the politicians.
Ruby Janssen is managing director of <a target="_blank" href="https://onyx.net.au/">Onyx Domain</a> and is an author and a successful property investor.
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NRAS property investment stacks up and shouldn’t be demonised: Ruby Janssen

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More Chinese left for an international holiday during China's Golden Week holiday in October than ever before in history, according to official data. Many of them came to Australia, hunting for property.
Our Hong Kong call center worked around the clock taking queries from Chinese real estate buyers in locations around the world, including the Gold Coast.
Buyers viewed 66% more property on our international property portal Juwai.com as Golden Week approached. Then, once Golden Week started, traveling Chinese buyers switched to their phones and iPads – giving mobile traffic a 99% boost.
Chinese buyers have spent millions on luxury residences in new towers like the Broadbeach Oracle and the Soul and Hilton buildings in Surfers Paradise, according to recent reports.
As I write this, there is a three-bedroom, four-bath residence on the 22nd floor of The Oracle for sale at $1.8 million. Perhaps it will sell to a Chinese buyer, too.
If so, it might well go during the next peak travel periods of Christmas and Chinese New Year (in February 2013). It is no surprise that Chinese New Year is the busiest travel time of the year, but Christmas?
Yes, Christmas. Santa isn’t just for Westerners any more. Christmas has become a key travel period for high-net-worth Chinese in part because it is the ultimate symbol of the allure of Western culture.
It is during holidays like Christmas and Chinese New Year that many high-net-worth individuals combine overseas holidays with overseas property scouting. And we all hold the purse strings a little less tightly when on vacation.
There has been a significant rise in the number of enquiries about Australia that we receive from potential buyers, with many of our wealthy Chinese customers telling us they plan to take up Australia's new Significant Investor Visa.
Even the Chinese think of Australia as "the lucky country". This new visa exempts the language requirement and is more flexible with residence guidelines, which is lucky indeed.
With so many Chinese investing in Australian property, the question that vendors and agents ask me most often is, "Would my property appeal to Chinese buyers?"
There are already around 230,000 Australian listings on <a href="https://juwai.com/" target="_blank">Juwai.com</a>. To find out if your property should join them, you need to look at it from the eyes of an investor from China.
 
 
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If your property is in a major metropolitan area like Sydney, Melbourne, Brisbane, Adelaide or Perth, it could interest a Chinese buyer. But you don't have to be in a city centre. There is high demand for working farms, as well.
Residential properties with income and projected capital growth near mines and mining areas make a good investment case and therefor attract Chinese buyers. Other types of properties that attract Chinese investors are new developments, which even non-residents can purchase.
Even what the Foreign Investment Review Board calls "second-hand dwellings" are very appealing to Chinese buyers. Second-hand housing is popular with buyers who know Australia already, including those who already have one or more properties here. Second-hand housing is also very popular with the Chinese Australians who search for local property on <a href="https://juwai.com/" target="_blank">Juwai.com</a> because it is in Chinese rather than English.
It may be beyond the scope of this article, but there is more demand than ever for large investment opportunities, like those above $50 million. In fact, a journalist contacted me about one such deal as I sat at my desk writing this article.
If your property fits into one of these categories, what should you be doing to reach the Chinese buyer? Here, I'll share my top tip with you. (<a href="https://www.propertyobserver.com.au/residential/how-to-understand-chinese-property-buyers/2012020253055" target="_blank">For more tips, read this article</a>)
If you are a vendor, make sure your agent acts on this advice: write your advertising copy and property descriptions with the flavor of destination and lifestyle marketing more than of traditional local property marketing.
Remember, the typical Chinese buyer is part foreign tourist and part savvy investor. Copy like, "Malvern delight – off main road, fully renovated, period charm," does not help sell your listing to the Chinese buyer.
Instead, the copy should focus on Australia as a safe investment, on the lifestyle the property offers, the number of total rooms, transportation links, the quality of schools, suburb highlights, the security of investment and local property value trends.
As <a href="https://www.propertyobserver.com.au/industry-news/the-five-words-that-help-sell-your-home-and-the-five-that-don-t-mike-mortlock/2012111557844" target="_blank">Mike Mortlock has pointed out </a> the right words can help sell your property faster and for a higher price.
When marketing to the Chinese buyer, be sure to choose your words carefully.
Andrew Taylor is the founder and CEO of sales and marketing of <a href="https://www.juwai.com/" target="_blank">Juwai.com</a>, the number-one Chinese real estate portal for property in Australia and around the world. Find out more about him at <a href="https://list.juwai.com" target="_blank">list.juwai.com.</a>
 
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How to sell Australian property to the savvy Chinese investor: Juwai's Andrew Taylor

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Landlords struggling to fill large floors in the CBD should consider splitting floors to attract a growing number of tenants looking for smaller, fitted office space.
A substantial facelift and sub-division of space has led to a more than 10 leases being signed in the last 12 months at 470 Collins Street in the Melbourne CBD – a  sign of strong demand for quality office space up to 200 square metres on Collins Street.
In the past 12 months, I have leased almost 800 square metres of space, ranging from 40 square metres to 200 square metres, within 470 Collins Street, which is commanding rents in the $400-$450 per square metres (gross) range.
In total, I have negotiated more than 20 leasing deals in the first half of 2012 to tenants on split floors and I continue to receive substantial enquiry on spaces of 100-300 square metres with a usable fit-out, with many converting to deals.
Quality fitted tenancies in the CBD are in high demand, however there is very little supply.
Tenancies in quality B-grade buildings with a good fit-out, or which have been refurbished, are also in strong demand.
Some smaller tenants are seeking a flight-to-quality, however there is a limited number of options.
Sub-lease space is quite attractive to tenants for short-term purposes, while benefiting large tenants by reducing their costs by subletting unused fitted space.
Incentives are still important in attracting tenants in the current market, however having a quality fit-out in place could assist landlords in reducing the incentives required.
Landlords with whole floors up to 700 square metres should consider splitting floors where possible into tenancies of 150 to 350 square metres to cater to the increased demand for this kind of space.
Adam Davy is <a target="_blank" href="https://www.colliers.com.au/">Colliers International</a> executive for office leasing. 
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