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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With the first big “didn’t see that one coming unless you looked out the window” storms of the season hitting Brisbane at the weekend, the timing of the release of two new disaster information tools this week was quite apt, in my opinion.
A new earthquake map and a<a href="https://www.qldreconstruction.org.au/flood-check-map" target="_blank"> new national online flood risk portal</a> were both unveiled by the federal government this week. Developed by Geoscience Australia, both tools will be helpful for communities to understand their disaster risk and for planners involved in the future development of our country.
There is a plethora of information available online these days that buyers can access during the research phase of their property purchase.  In our capital city, for example, you can find out the current and future flight paths of Brisbane Airport on <a href="https://www.reiq.com/Content.aspx?page=Brisbane_flight_paths" target="_blank">reiq.com</a>, and drill down to the flood risk of a specific property through the Brisbane City Council website.
And for each and every buyer, the information that these and other tools provide will mean something different. Some will look at the data and say, well, there is a chance my property might flood in the next 20, 50 or 100 years, but I’m happy to take the chance. Others will not be happy with any flood risk whatsoever (which in Brisbane may leave you with limited options except perhaps living on the top of a 20-storey building) and so will head for the hills.
Some of Brisbane’s most prestigious suburbs are located directly under flights paths for Brisbane Airport, but the majority of residents in these areas are happy to put up with some occasional aircraft noise for the views of the river or their location close to the CBD and entertainment precincts.
All buyers have a list of what they are prepared to put up with and what they are not. Some people are happy to put up with living on a main road if it cuts down on their commuting time or is close to public transport options. Others know their area might be prone to specific weather events but the lushness of the bush or the relative isolation of the location more than makes up for the risk in their mind.
I live on the river in Brisbane’s inner-city suburbs. I didn’t live there last year during the floods, but my building was seemingly about four metres under water. What I have learned from living there is that the Brisbane River – although far from aqua blue – is an almost hypnotic vista to have, and I often find myself staring blankly at the water with very little going on between my ears. It is very peaceful.
I have also learned that being on the river seems to be much windier than in the suburbs. Saturday morning’s storm certainly confirmed that assessment. At about 10.40am, as one of the many storms that rolled over our city hit, it was pitch-black in my apartment. I was too scared to turn on any lights so I sat in the dark and listened as the world outside turned topsy-turvy. The wind was howling, all the windows started to shake (and leak, I was to learn later), and I could see white-tipped waves on the usually-tranquil river. The beautiful gum trees at the front of my building were swaying back and forth so violently they were almost bending at right angles.
Scared the windows were about to crack, I moved to the hallway where I would be safe from any shattering glass, and waited. The whole episode took about 15 minutes, but it was long enough for this New Zealand native to start quivering in her boots (well, sandals, actually). You see, I can deal with earthquakes. I grew up in Christchurch. But the big summer storms that hit Queensland almost every year are a relatively new phenomenon that I am yet to fully master. Earthquakes are probably scarier, on measure, but I guess it just depends on what you are used to.
Once the storm had moved onto its next victim, I looked around my apartment to find no damage except one very wobbly resident – me. Outside, on the riverfront, one of the aforementioned gum trees have snapped in half and landed smack-bang in the middle of the swimming pool. It was a surreal sight – although I couldn’t help but be a little annoyed that if it had landed one metre to the left I would have got a new car.
Nicola McDougall is executive manager for corporate affairs for the <a target="_blank" href="https://www.reiq.com/">Real Estate Institute of Queensland</a>. This article originally appeared on the<a target="_self" href="https://reiqblog.com/"> REIQ blog</a>.
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What the Queensland government's flood and earthquake risk maps will mean for property buyers

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The high-end restaurant market in Brisbane continues to tick along, perhaps surprisingly.
It is well known that discretionary spending has been subdued for some time and consequently those sectors dependent on this such as department stores have been experiencing tough conditions, while non-discretionary sectors, such as supermarkets and grocery stores, are performing more strongly.
Restaurants, particularly high-end restaurants, could be put into the discretionary spending category, but for some reason they are still performing well in Brisbane.
This is evidenced by the number of well-known high-end restaurateurs and chefs expanding their successful Sydney or Melbourne-based restaurants into Queensland’s capital.
The latest high-end restaurant to open its doors in Brisbane was Pony Lounge and Dining. With two successful branches in Sydney – The Rocks and Neutral Bay – Queensland-born chef Damian Heads has opened a third at the recently revamped Eagle Street Pier in the Brisbane CBD.
Other restaurants that have expanded from Sydney or Melbourne into Brisbane include Stokehouse, which is at South Bank, and Aria, which was opened at the Eagle Street Pier by Australian chef Matt Moran around three years ago.
The expansion of these already successful restaurants into the Brisbane market was in response to demand, and while in the current economic conditions many people weren’t spending their money on non-discretionary items such as clothing and electronics, the “MasterChef-phenomenon” is leading people to continue spending money on dining out.
Over the past few years television shows such as MasterChef have sprung up and found enormous popularity amongst viewers, and this exposure to cooking has led people to becoming more interested in food.
More people are getting into cooking and are trying different types of food, and it is this rise of food connoisseurs that is pushing this part of the retail market along.”
The move into Brisbane by successful Sydney and Melbourne-based restaurants had “changed the face of dining in Brisbane”.
Before Brisbane had little choice in the way of high-end dining, but as the city has become more destinational for several of Australia’s talented chefs and restaurateurs all that has changed.
I previously worked for Stockland and was involved in all the leasing deals for the company’s Eagle Street Pier refurbishment.
Restaurateurs want a location in the inner city and a spot on the river, or at least with river views, within a dining precinct as opposed to a standalone location.
As well as the food they provide, they’re selling an experience, and the ambiance of the restaurant and its location contributes to that.
Ben O’Connor is Colliers International retail leasing director
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High-end restaurant premises in demand in inner Brisbane

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Housing affordability improved for the seventh straight quarter in September to be at its highest level in three years, according to the latest HIA-CBA Housing Affordability Index.
Over the quarter, the index increased by 5.3% to 65.8% to be up by 15% compared with the same quarter in 2011.
Affordability improved due to the median dwelling price falling from $466,900 to $459,100, and mortgage rates falling from 6.4% to 6% over the quarter.
Affordability improved in all capital city and regional markets with Hobart the most affordable with an index score of 78.3 - up from 73.1, followed by the ACT (67.8 to 71.3) and Adelaide (70 to 71.1).
Sydney’s affordability score improved from 51.9 to 54.2 over the quarter, but remains the least affordable capital city market, followed by Melbourne (63.6), Perth (64.1) and Brisbane (68.5).
In Victoria, South Australia and Queensland, it is more affordable to buy in the capital city market than in the regions.
HIA chief economist Harley Dale says the run of consecutive improvements in some regional indices is even longer, “in some instances showing affordability has reached levels not seen since the early 2000s”.
“Housing affordability has been improving on the back of steadily growing incomes, falling interest rates, and easing dwelling prices,” says Dale.
“At the same time, however, transactions volumes have remained historically low as economic uncertainty has weighed heavily on households’ willingness to engage in the residential property market.”
“Tentative signs of a recovery in transactions volumes should hopefully gather legs – another interest rate cut in early December would enhance the prospects of this occurring.
“An increase in home buyer action can occur without generating undue inflationary pressure and would assist a much-needed recovery in new residential construction activity.”
A full explanation of how the index is calculated can be <a href="https://economics.hia.com.au/media/Affordability%20Index%20Methodology.pdf">downloaded on the HIA website.</a>
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Housing affordability improves to highest level since September 2009: HIA/CBA index

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Cross-collaterisation is a topic that often confuses many people. There are benefits of using this structure for a property purchase, but if you are thinking about building a portfolio you need to know the risks associated with it.
It is easy to be amazed at how your friends or work colleagues are buying investment properties, especially when they are on similar salaries and have similar lifestyles to you. There is no secret. What many do is use the equity they have built up in their home to give them a kick start. Over the last 10 years home values throughout Australia have increased, and in some instances doubled. This essentially provides every home owner a source of funds that they can now use. Some have used these funds to upgrade their homes, buy new cars, or make an investment, be it superannuation, shares or property.
Equity is the difference between the value of a property and the loans against the property. In this article we will be looking at using your available equity so that you too can purchase an investment property. Available equity is the actual amount of your equity that you can take out and use. Most lenders require you to keep 20% of the house value quarantined as a buffer. There are few ways that you can then access this available equity, putting it to work for you rather than letting it remain dormant. Two of these methods are discussed below:
1. Cross collaterisation. You can use the equity available in your home to purchase an investment property by securing the new purchase with both your home and the new property. Essentially this means you put no money down and the lender combines your home and investment together, giving you a new loan for the purchase price and the costs of purchase, i.e. the new loan is higher than the purchase price of the new property. The very important thing to remember with this strategy is that your home is directly linked to your investment property and the lender will take the title over your home to secure the new loan as well as the title over the new property.
2. Separate loans. This allows you to access only as much equity as you need to cover the deposit and costs of the new property as a top-up loan or line of credit against your home. Once this is done a separate loan, which may even be with another lender, is taken for the remaining funds required to complete the purchase on the new property. Once again there is no money down required from you, however the titles of your properties are separated and you have greater flexibility. Another advantage of doing it this way is you may find you have enough equity and serviceability to complete a second purchase.
There are positives and negatives with each of these structures. Those using cross-collaterisation will find that over time, lenders invariably start dictating terms, which you may not be comfortable with. For example, they will only lend you money based on the new investment loan being principal and interest, rather than the norm for investors, which is interest only. One of the main issues is that your only portfolio growth may have to stop as the bank will not lend you anymore funds. Imagine you have a house in Perth and over the last few years the value increased from $250,000 to $300,000, meaning you have greater equity to tap into. Now let’s assume you also have a two-bedroom unit in Western Sydney that  was worth $250,000 five years ago, but today it is only worth $200,000.
 
<hr class="system-pagebreak">
 
Your portfolio is stagnant as it is still worth $500,000, despite the prices of individual houses changing. Hence the lender will be reluctant to allow you to access the equity from your Perth property. If you had followed the separate loan strategy and kept all your loans separate then it could be possible to access the equity from the Perth property to allow you to purchase again. You may even decide that you want to maximise your available equity and not use the full 20% deposit for the new investment purchase. This would mean that you will need to pay mortgage insurance. Mortgage insurance is a borrowing cost and hence tax deductible over five years for investment properties.
Many investors use mortgage insurance so that they can buy more than one property using their available equity. An often misunderstood concept with the separate loan structure is that the new top-up loan or line of credit although secured against your home will still be considered an investment loan and hence the interest will be tax deductible. One of the benefits of cross-collaterisation is that you do not have to pay mortgage insurance, as the lender is tying up all the available equity in your property rather than just the amount required.
You will find that the lenders are delighted to assist you with this structure as it makes it harder for you to leave them and difficult to separate the loans in the future so you must work with that same lender for any future purchases.
In summary, most investors want to combine the benefits of using none of their own savings with the tax minimisation advantages when buying an investment property. Releasing equity from your home in a structured way allows you to keep your savings in the bank.
Your savings could even assist you further by putting them into a 100% offset account against your personal debt, i.e. your home loan. Accessing equity in your home or current investment property allows you to leverage your current situation and use the lender’s funds to assist you in buying a property and hence buying you time in a growing market.
Property investment is a long-term strategy in assisting you in achieving your goals. The more exposure you have to a growing market the more opportunity to grow equity and in the long term the more equity you have to help you fulfil your goals.
Bear in mind that all geographic markets do not grow at the same time or at the same rate, so spreading your exposure and hence risk across different states, towns or suburbs is one investment strategy to reduce risk. So buying an investment property around the corner from your home may not give you all the advantages you imagine. Obviously you need to be comfortable that you can service any new loans and maintain a standard of living.
Jane Slack-Smith is director of <a target="_blank" href="https://www.investorschoice.com.au/">Investors Choice Mortgages</a> and founder of <a target="_blank" href="https://www.yourpropertysuccessnow.com.au/">Your Property Success</a> online education teaching investors to find the right property at the right price. Winner of the Your Investment Property 2009 Mortgage Broker of the Year. Jane is a regular property commentator, author and experienced investor. This is an extract from her new book <a target="_blank" href="https://yourpropertysuccess.com.au/">Your Property Success with Renovation</a>, published by John Wiley &amp; Sons.
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How to use equity in your home to buy an investment property: Jane Slack-Smith

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A house price crash has been rated as a low to medium risk of occurring in Australia, according to the latest Financial System Stability Assessment report from the International Monetary Fund (IMF).
The report does note that the banking sector is heavily exposed to the housing market, with residential mortgages the banks’ single largest asset, but says the financial system is buffeted from an “unlikely” house price collapse because the household sector is not highly leveraged.
The report says an average loan to value ratio of 50% on mortgages provides the Australian financial system with “a buffer against a large decline in house prices”.
Click to enlarge
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In addition, the IMF notes the differences in the Australian mortgage market compared with other countries and the propensity of borrowers to pre-pay their mortgages.
“[In Australia] there is no tax incentive for owner-occupier debt,  and prepayment on housing loans is prevalent and sizable.
“Mortgages are full recourse loans, giving borrowers an incentive to continue making payment even under stress,” the IMF adds.


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Apart from the diligence of borrowers, the IMF says that at a central bank and government level, there are good structures in place to mitigate against structural risk from Australian banks' heavy exposure to the residential mortgage sector.
The IMF says authorities have “considerable policy space to respond to negative shocks given low public debt, a flexible exchange rate, some scope for monetary easing, and a well-capitalized banking system”.
However, it does warn of some risks to financial stability due to about a quarter of mortgages having a loan to value of 80% or more at origination mainly by first-home buyers and low-income households.
“The buffer for this group is much smaller and a large decline in house prices would have an impact on asset quality,” says the IMF.
But a house price crash is unlikely given that there is no oversupply of housing as was the case in the US sub-prime-fuelled mortgage crash.
“No construction boom has accompanied the run-up in house prices, and supply remains quite tight,” says the IMF.
While the report notes that house prices have “declined gradually over the past year” it anticipate a further correction in commercial property prices.
“Commercial real estate prices have seen a large correction since 2008 but still appear high by international comparison,” says the IMF, which calculates that commercial real estate represents about 10% of banks’ exposures and a sharp fall in prices would impair banks’ balance sheets.
The report does highlight how heavily Australia depends on the residential property market, with 90% of Australia’s household debt being housing loans, above the average of advanced economies in the G20.
“Strong house price gains over much of the past two decades have made Australia’s house prices relatively expensive now. This combination exposes banks to negative income shocks generated by a sharp increase in unemployment.
“Moreover, around 30% of new mortgages are interest-only, a potentially riskier type of lending than regular mortgages, and 55% of those mortgages are interest-only investor loans.
“However, the risk is mitigated by a number of factors, including much larger household assets that dwarf household debt, relatively low household leverage and increased household savings over recent years."
The report also notes that loans with an LVR of greater than 80% are “generally covered” by lenders mortgage insurance (LMI).
“The banks’ capital positions seemed capable of withstanding a range of adverse scenarios ranging from slow growth to severe macroeconomic shocks, even after taking into account banks’ cross-border-exposures.
“Under the most severe scenario, aggregate Tier 1 capital (funding sources to which a bank can most freely allocate losses without triggering bankruptcy such as ordinary shares and retained earnings) remains above the minimum threshold, although total capital of some banks falls slightly below the threshold after two years.
“The liquidity stress test, which simulated a bank-run type scenario, indicates that banks would be able to withstand a severe liquidity shock with support from the RBA under a new Basel-approved facility, and withdrawals of funding from banks in the United States, United Kingdom, and Japan would have the largest impact,” says the IMF.
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Borrower mortgage repayment diligence protecting Australia against ‘unlikely’ house price crash: IMF

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We are living through a period of great volatility. The world’s economies are fragile, and this makes it more important than ever that you have a financial plan to protect yourself. 
Despite the gloom that seems to be perpetually portrayed in the financial press, the truth is that recessionary economic times offer outstanding opportunities to those who are prepared. 
Wealth has not simply been lost in the global financial crisis; it has been transferred, from the financially uneducated to the sophisticated. 
We have had global recessions before, and you can be certain that we will have them again, because economies move in cycles. The facts and the specifics may change, but the patterns are similar. 
The losers in financial crises will continue to be the same: those who try to save their cash (inflation will quickly eat away at the value of savings), the inflexible, people with extravagant spending habits, those approaching retirement with much of their wealth in a managed accumulation fund and, particularly, many of those with a total dependence on a job for income. 
Having all your eggs in one basket – a job – is a potentially dangerous approach to personal finance. 
So who will the winners be? The winners will be those who have the financial education to spot opportunities, and those with multiple income streams. Winners will also include people with moderate spending requirements and those who are prepared to be flexible. 
Winners are generally not dependent on highly taxed salaries to increase their wealth. Stock-market meltdowns offer amazing opportunities to those who are able to time the market. Property investors, too, will take advantage of fear to invest counter-cyclically and will capitalise on the low interest rates that often result from a recession. 
It is important to be in tune with the financial markets. By the time you read about a hot stock or a flying property market in the media, it is probably too late. Besides, the press print an awful lot of doom and gloom as it seems to sell newspapers. If you believed everything you read in the press you would probably never invest at all. 
What is not good enough is to blame the government, your fund manager, or your employer for your financial predicament. You must take responsibility for your own financial health and wellbeing. 
One of the seven Buddhist factors of the path to enlightenment is mindfulness, an awareness of reality and clear understanding. Just as to avoid becoming obese we must be mindful of our diet, to become wealthy and financially free we must apply mindfulness to our finances. The first step is accepting that your financial health is your own responsibility. 
 
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Why most people can’t quit work young and wealthy 
Many people believe that the way in which they will retire will be to build up a lump sum in a superannuation fund that they will withdraw when they are around 65 years of age. 
Hopefully, the amount they have built up will last longer than they live. Some of those who have the option to do so consider downsizing their place of residence or using a reverse mortgage to free up some capital. 
To me, this is a flawed thought process, and a very risky one for obvious reasons. The risk of the cash running out can be mitigated through selecting an appropriate annuity product, whereby actuarial percentages dictate the level of your annual income based upon your life expectancy. 
This mindset shows why most people are unable to be financially free at a young age. The numbers simply don’t stack up. 
If you want to retire at 65 the amount you will need as a lump sum is approximately 13 times (see below) your desired retirement income. Therefore, if you want to retire on $100,000 per annum, a lump sum of $1.3 million should be your goal for age 65. 
But what if you want to finish working full-time younger than that? Well, naturally, your life outside of the full-time workforce will run for a longer course, so the required multiple of your desired annual earnings increases. 
<table cellpadding="0" cellspacing="0" border="1"><tbody>
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<td width="170" valign="top">
Age at retirement
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<td width="236" valign="top">
Required multiple of income
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65
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13
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60
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15
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55
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17
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40
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<td width="236" valign="top">
25
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 So far, so good, for at least this gives us a target figure. The flaw in this idea, though, soon becomes clear. If you want to quit work entirely at the age of 40 with an annual income of $100,000, you will need a lump sum balance of around $2.5 million. 
This is fine in theory. The problem as I see it is that if you are a person who has the financial capability to build a balance that runs into the millions by age 40, you are highly unlikely to be satisfied with an annual income of $100,000.
This is why I believe that what you really need to achieve financial freedom at a young age is a significant balance of net realisable assets – but also a portfolio of assets that continues to grow in perpetuity.
The asset class which gives you the leverage to power ahead is property – particularly residential investment property.
<img src="/images/stories/2012/12/wargentbook.jpg" style="margin: 5px; float: left;">
Pete Wargent holds a range of finance and property qualifications and is the author of <a target="_blank" href="https://petewargent.blogspot.com.au/">Get a Financial Grip – a simple plan for financial freedom.</a>
 
For more on where property fits into your wealth-creation portfolio, sign up for our free webinar on <a target="_blank" href="/news">Thursday, November 29 at 12.30.</a>
 
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How you can retire young through property investment: Pete Wargent

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<img src="/images/stories/2012/11/1.gif">
There's never a huge Santa rally when it comes to property. Just a few too many many distractions, although estate agents will seek to use the persuasive closer – buy now, this is your last opportunity before February next year. That's not really the case anymore, given property is accessible via the internet even if it looks like everyone is off on holidays. 
<hr>
 
<img src="/images/stories/2012/11/2.gif">
Auctions are scheduled through to December 22 this year, with most agents ideally, or more likely desperately, seeking to sell before auction. Private treaty negotiations will then continue until Christmas Eve and then through even to New Year's Eve, with vendors hoping for the occasional buyer seeking to finalise contracts for their special acquisition before the end of the year. Finding a solicitor might make things trying during the break, though. But the economist Christopher Joye bought his Sydney house on a past Christmas Eve, maintaining it was a good time to crunch the cheaper deal given the vendors had the property still for sale after an unsuccessful early December auction.
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<img src="/images/stories/2012/11/3.gif">
 
If you are thinking of being a fresh seller in 2013, have a conversation with your agent now about the marketing for your property. Decide whether you want to bring it to auction in early 2013, i.e. around late January or early February, or sell it by private treaty. Check on the agent's own holiday plans, as will he or she be around to show your home? Select the best selling agent for your property. Don't necessarily choose the agent who quotes the hearty highest selling price, as he or she could be overquoting just to get the listing and then crunch your price expectations down the track.
 
<hr>
 
<img src="/images/stories/2012/11/4.gif">
Pop the listing up on the agency website and other online marketing as soon as possible as a forthcoming auction or private treaty sale, and you never know, you might just get a buyer without forking out too much in marketing or any auction fees. There are still plenty of spring sellers who have yet to find their new home.  
 
 
<hr>
 
<img src="/images/stories/2012/11/5.gif">
Be aware that February almost always achieves a higher clearance rate than December. Likely buyers return from their summer holidays brimming with enthusiasm.
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<img src="/images/stories/2012/11/6.gif">
While waiting for the early bird 2013 buyers, give the place a quick repaint possibly inside and out. A fresh coat of paint will brighten even the most tired-looking property. Consider the services of a professional home stylist and hiring new furniture before getting the photos done for online and print marketing. At the very least, clear out clutter and anything old or dirty to make sure your property looks its best.
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<img src="/images/stories/2012/11/7.gif">
Then get your summer garden in good shape. The Christmas holidays are a good time to spend some time weeding, cleaning out dead plants and putting in some landscaping that will make your property shine come early 2013. Consider getting a pest inspection and building inspection report done. It could be a good selling point, and getting it done early will prevent any nasty surprises down the line. Get your floors in order. Re-polish floorboards, clean and/or re-grout tiles, and lay new carpet, if your current floors are looking a bit tired. Even renew the outdoor paths and patio.
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Seven smart selling and buying tips for Christmas house hunting or early bird 2013 listing

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Sydney's western corridor is currently the most tightly held precinct in the CBD office market and is expected to remain tightly held over the next three years while Lend Lease’s $6 billon Barangaroo development takes shape, according to a new Pulse report from Jones Lang LaSalle.
The western corridor comprises the strip of offices incorporating Hickson, Shelley and Kent roads and the future Barangaroo development, from Circular Quay to Darling Harbour.
As the graph below shows, the vacancy rate in the western corridor has fallen steeply since the early 2000s, when it was above 16%, to under 8%.
The highest vacancy rate is in the core CBD market.
Click to enlarge
<a href="/images/stories/2012/11/jllnov27.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/11/jllnov27thumb.gif"></a>
“No developments are scheduled to complete in the western corridor until the first stage of the Barangaroo development in late 2015," says Jones Lang LaSalle.
“There will, however, be backfill space created as a result of KPMG and Lend Lease relocating to the International Towers.
“Both tenants will vacate assets at the end of first generation leases. Jones Lang LaSalle expects that a high proportion of the good quality backfill space at 10 Shelley Street and 30 Hickson Road will be leased prior to lease expiry.”
According to Jones Lang LaSalle, the western corridor has experienced the strongest growth in stock over the past 15 years.
Major buildings to complete over the past six years include: Westpac Place at 221-293 Kent Street (73,620 square metres), 1Shelley Street (31,225 square metres) and 12 Shelley Street (14,848 square metres).
As a result, the western corridor’s share of the Sydney CBD office market has increased from 19.2% in 2001 to 23.2% in mid-2012.
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Sydney’s western corridor now the tightest CBD office market: Jones Lang LaSalle

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Hollywood special effects studio Luma Pictures, which has worked on over 80 movies including films by the Coen Brothers (True Grit, No Country for Old Men), X-Men and Prometheus, has leased over 1,000 square metres of office space in South Melbourne on the edge of the Melbourne CBD.
Luma Pictures will pay net rent in the high $300s per square metre per annum in Heritage Victoria listed, warehouse-style space at 256 Clarendon Street, <a target="_blank" href="/news">South Melbourne</a>.
The five-year lease deal was brokered by Savills Australia’s Louise Nicoll.
Nicoll says the Santa Monica-based company sought a location in close proximity to restaurants, bars and tenant amenity.
"Luma also wanted a funky space which was conducive to a creative working environment, which the village like community of Clarendon Street was able to provide,’’ she says.
The Melbourne premises are Luma’s first office outside of the US and will focus on offering its special effects expertise to Australia’s film and television industry.
The lessor was a private Melbourne investor.
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Hollywood special effects studio leases heritage space in Melbourne

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Work on the first Australian building designed by North American architect Frank Gehry nears after the construction giant Lend Lease won the bid to build the landmark undulating building at the University of Technology, Sydney. Billed as Sydney's most distinctive project since the Opera House, it will consist of 320,000 brown bricks, all laid by hand.
<img src="/images/stories/2012/11/gehr1.jpg">
Likened to a paper bag by some, the 12-storey faculty of business building will be the 83-year-old architect's first in Australia.
Excavation of the <a href="/news">Ultimo </a>site near the ABC is already under way, and construction of the tower for around 1,300 students and more than 300 academic staff has an early 2014 completion timeline.
<img src="/images/stories/2012/11/gehr2.jpg">
Gehry, who was reportedly unperturbed by the paper bag comparison, has described the building's internal structure as being like a "tree house", designed to encourage a sense of "creative play".
<img src="/images/stories/2012/11/gehr3.jpg">
The 12-storey building is being built on the former Dairy Farmers site between the ABC Ultimo Centre and the Powerhouse Museum.
It will be named after Dr Chau Chak Wing, an Australian-Chinese businessman who donated $20 million for its construction and $5 million for scholarships.
Its a $180 million project, according to the UTS vice-chancellor, Ross Milbourne. The new building is part of a UTS campus master plan, estimated to cost a total of $1 billion. 
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