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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James MacKenzie has been re-elected as chairman of Mirvac at today’s AGM in Sydney, but not before copping a bashing from some small shareholders in attendance.
MacKenzie had the unanimous backing of Mirvac board members for his re-appointment as well as from major and institutional shareholders following his decision to sack former managing director and CEO Nick Collishaw and replace him with London-based Susan Lloyd-Hurwitz.
The final vote was 87.8% in his favour with all other board re-appointments also confirmed by shareholders by a similar majority.
Shareholders that attended the meeting accounted for just 0.11% of Mirvac stock with major and institutional shareholders voting by proxy.
Prior to the vote, MacKenzie’s seven year tenure came under fire from a number of small shareholders disgruntled with the performance of the company over this period.
Winston Sammut, founder and managing director of Maxim Asset Management and an agitator for MacKenzie to stand down following the decision to get rid of Collishaw, pointed out that the Mirvac share price was $4.59 when MacKenzie was first appointed as a non-executive director (in January 2005) and were trading at $3.56 when he was appointed chairman in November 2005 and is now currently trading at $1.45.
“After seven years as chairman, Mirvac shares are down 59% - shareholders suffered a fall, while you (MacKenzie) benefited to tune of 105% rise in your salary," he said.
Sammut also pointed out that Collishaw had elected to reduce his salary while the Mirvac board had not.
“I consider it is time for you to move on – how you can you justify these sorts of numbers?” said Sammut, who ended up in a tense exchange with acting chairman Peter Hawkins, while MacKenzie’s re-election was being considered.
Hawkins accused Sammut of interrupting him when he spoke and asked Sammut to sit down.
Sammut said he preferred to stand and then presented a chart comparing Mirvac’s performance against its peers highlighting that Mirvac was the “bottom line” of the graph.
Hawkins claimed Sammut had got the numbers wrong and that MacKenzie’s salary had only risen 3% annually since he became chairman rising from $406,000 in the first year rising to $464,000 in the last financial year.
Another long-standing shareholder said he could note vote in favour of MacKenzie given the deterioration of the share prices.
But he said small investors were powerless against the institutional investors and it was a case of “to hell with the shareholders”.
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Mirvac chairman James MacKenzie re-elected with 87.8% AGM support

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The Brisbane CBD is developing into something of a hotel development hotspot with Malaysian-born mining billionaire Sam Chong reportedly acquiring a parcel of land from property group Devine with plans to build another hotel in the Queensland capital.
The site forms part of scrapped plans by Devine to develop a  $1 billion “French quarter” that was to comprise an apartment and retail complex bounded by Alice, Albert and Margaret streets.
Sunland acquired half of the site in December 2009 with plans to develop an apartment tower.
According to a report in The Australian, Chong acquired his parcel of land for around $18 million. He also own an adjoining property known as the Carrington site.
Chong is currently developing a 32-storey hotel tower on Mary Street that will be leased to Starwood Hotels &amp; Resorts and operate under its luxury Sheraton brand.
The 246 room hotel is due for completion by January 2014 and will be known as the Four Points by Sheraton Brisbane.
It follows the opening of the Four Points by Sheraton Perth in June 2012 with the expansion of the Sheraton brand into Brisbane seen as part of a growing demand for accommodation for cities benefiting from the mining boom.
In September, Singapore-based hotel group SilverNeedle Hospitality acquired the four-star Chifley at Lennons Hotel (also known as the Lennons Plaza hotel) at 66 Queen Street Mall Brisbane CBD for around $57 million.
SilverNeedle will refurbish the hotel and convert the existing commercial office space into hotel accommodation, doubling the room count to 300.
The revamped hotel is set to open in 2014 in time for the G20 summit and will be rebranded as NEXT hotel, a new brand to be launched by SilverNeedle in Australia.
According to the <a target="_blank" href="https://www.propertyobserver.com.au/leisure/perth-surpasses-sydney-as-best-performing-hotel-market-dransfield/2012092556695">most recent Dransfield report</a>, the Brisbane hotel sector performed strongly over the March quarter with revenue per available room (revPAR) up 17% over the quarter. However the Brisbane hotel occupancy rate fell from 82.5% in the December quarter to 77.6%.
 
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Mining billionaire Sam Chong to develop second Brisbane hotel

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<img src="/images/stories/2012/11/1.gif">
Do your homework. Especially when it comes to ascertaining the history of capital growth of the property, in the suburb and even the likelihood of any huge increase in rival housing stock. Overpaying because you haven’t done enough research will be the most telling of factors no matter what happens to the overall economy.
 
<hr>
 
<img src="/images/stories/2012/11/2.gif">
As too many random inspections will only confuse you – and wear your commitment down – make a preliminary, but adaptable, list of what you actually want in an investment. Narrow your aim and search requirements – house or unit, old or new? Price growth or yield?
 
<hr>
 
<img src="/images/stories/2012/11/3.gif">
Research the capabilities of the existing infrastructure and the potential and likelihood for improved infrastructure in the locality.
 
<hr>
 
<img src="/images/stories/2012/11/4.gif">
Make sure you know exactly how much money you reasonably have to buy with and stay under budget, if possible, unless it's a remarkable opportunity. Be aware of just how much of the rental income your bank will take into account when working out your borrowing capability. Pick the right type of mortgage that suits you. Discuss with your accountant the pros and cons of using the equity from your principle place of residence.
 
<hr>
 
<img src="/images/stories/2012/11/5.gif">
Factor in stamp duty, building inspection report price, rates, insurances, and any likely needed repairs so your list of expenditure costs leaves little to chance. Even build in a buffer. Get early advice from your accountant too especially when it comes to the likelihood of depreciation benefits, land tax and capital gains tax.
 
<hr>
 
<img src="/images/stories/2012/11/6.gif">
 Don't let emotion govern your purchasing decision. Have at the top of mind what actually suits the demographics of renters in the location and how much would they typically expect to pay for it.
 
<hr>
 
<img src="/images/stories/2012/11/7.gif">
Don't buy the best property in the block or on the street or the suburb. Ideally buy below the median price so that any improvements take its resale price to just over the median price bracket.
 
<hr>
 
<img src="/images/stories/2012/11/8.gif">
Vary the time of day you inspect the pinpointed property. Take along a friend or family member when you do your final pre-purchase inspection as even untrained eyes might spot flaws you may have missed. Get an official report on the condition of the property.
 
<hr>
 
<img src="/images/stories/2012/11/9.gif">
Bounce the purchase price details with an estate agent unrelated to the property. Or engage a buyer's agent. Remember that property is a long-term investment and you shouldn't rely on rising prices in the short term, especially if you want to cover your purchase and exit costs.
 
<hr>
 
<img src="/images/stories/2012/11/10.gif">
Do not be afraid to make repeated substantially lower offers than the asking price.
 
<hr>
 
<img src="/images/stories/2012/11/11.gif">
Take your time and never sign any contract unless you understand what you are getting into, especially if you are being unduly pressured by the sales person. 
 
<hr>
 
<img src="/images/stories/2012/11/12.gif">
Start your ongoing continuous research into the rental market in the suburb well before you intend to buy, thereby keeping tabs on rental price direction and how long are properties are vacant between tenants. And then check with a local property manager to confirm the potential rent of any property you are about to purchase.</body></html>

po-LsXgBTHBmX

The 12 smart buying tips to secure you first residential investment property

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WBP Property Group chief executive Greville Pabst says property valuers make easy scapegoats in a soft property market but says the vast majority do a good job and are only “interpreting the market”.
Pabst says it is very easy to blame someone when your home is valued less than what you believe it is worth because people form emotional attachments but says valuers “do not set the market”.
“Valuers are the obvious people to blame,” he tells Property Observer.
“But property values have fallen – we are only the messengers.”
Pabst says good valuers base their valuations on a plethora of historical sales data (sales on the same street, the street behind, in the suburb, etc) and by taking into account the features and characteristics of the individual property.
“Our job is to compare apples with apples and then discount for the bruises,” he says.
Pabst says valuations often come in under buyers' expectations with house-and-land packages bought on the fringes of the city as well as off-the-plan apartments, when contracts are exchanged sometimes two years ahead of settlement.
“You might have bought off the plan 18 months ago. It’s a package. You are buying the land, which has been discounted to reduce the stamp duty while the building costs have been maximised so the buyer can take advantage of the maximum rate of depreciation. Plus there is the developer’s profit and risk factored into the price, the marketing cost and in some cases elevated commissions.
“All this is factored into the price, but that is not the real value.
“Price is what you pay – value is what your get.”
 
<hr class="system-pagebreak">
 
He comments follow criticisms of the service provided by property valuers from <a href="https://www.propertyobserver.com.au/residential/property-valuations-a-waste-of-time-and-money-terry-ryder/2012110557626" target="_blank">Property Observer commentator Terry Ryder</a> concerning how valuers determine their valuations and how – in Ryder’s experience – the valuations can be easily changed.
Pabst says buyers should keep in mind that valuations are legally binding documents that can be challenged. 
He does acknowledge that valuers who act on behalf of banks and mortgage insurers are  “conservative beasts” but says they are not in the business of employing “rogue valuers”.
He adds that valuers also have a duty to protect the banks’ interest and ensure that should a bank be forced to sell a property as mortgagee-in-possession they get their money back.
“The whole banking system has changed. Capital is scarce. There are far tighter controls and banks have become far more selective and more focused on managing their risk.
“They are the ones, after all, who are stumping up the money.”
“Banks lend money based on our advice. We act as the ears and eyes of the bank,” he says.
He also questions why so many buyers rely on the word of the estate agent, who is acting on behalf of the vendor.
“From the minute you walk in the door the agent is using every tactic they can to sell you the property.”
He says in most cases valuations  are done because of a statutory requirement: for the purposes of getting a loan, or  if a house has to be sold due to divorce or a business partnership being dissolved.
But he says buyer should consider using a valuer before they purchase to ascertain the true value and he says he is amazed that so many do not get any objective advice before making such a significant purchase.
“You wouldn’t make other investments without first seeking advice, so why not with property?”
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Property valuers just messengers in softer market: Greville Pabst

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 This is a warning to property consumers. You need to be aware that scary creatures are prowling the Australian landscape and blazing a path to wealth and glory. 
These are the (drum roll) “savvy investors”. You need to know that they’re out there, and they’re smarter than you and me, and the only thing we can do is watch what they do and try to imitate them, without treading on their toes or getting in their way. 
I’ve been reading about savvy investors for ages, and at first I thought they were a strange genre of people who were investing money in highly seasoned smoked sausages, otherwise known as saveloys. Why, I wondered, would anyone want to be a savvy investor? 
But then I learnt that a savvy investor is one who is extremely well-informed. Someone who really knows what they’re doing, compared with the unsavvy masses. 
Savvy investors distinguish themselves by their individual behavior. They never buy things, they snap them up (I’ve always wanted to do that but don’t have the talent). Everything they buy is a bargain, and most of what they do results in windfall gains. And journalists always write about them, whereas they never bother with the non-savvy. 
So, having learnt that the best way to get rich is to study rich people, I decided to study what savvy investors were doing. 
And guess what? I discovered that savvy investors are mostly idiots. I didn’t see that coming. 
I read on news.com.au that savvy investors were buying off-the-plan apartments in inner-city Brisbane. This struck me as extremely unsavvy, especially as the stated reason for buying new product was that you get better depreciation benefits. I assumed savvy buyers would make purchase decisions based on the prospects for capital gains – but new apartments in inner-city areas seldom deliver. 
Then I read that savvy investors were snapping up apartments close to the Sydney CBD. As they were buying in suburbs with capital growth records that are among the worst in the nation, that further unsettled my faith in emulating the savvy. 
My confusion grew when I read that savvy investors were “turning to real estate agents for advice”. 
 
<hr class="system-pagebreak">
 
What really floored me was that savvy buyers were snapping up “prime” properties in beachside suburbs on the Gold Coast. That was the clincher. 
Seriously, the endless appetite savvy investors have for losing money on the Gold Coast never ceases to amaze. 
They’re obviously reading different charts to me, because the ones I’m looking at say that the average annual growth in Surfers Paradise apartments over the past five years is minus 2.3%. It’s minus 2.5% per year at <a target="_blank" href="/news">Main Beach</a>. <a target="_blank" href="/news">Mermaid Beach</a> and <a target="_blank" href="/news">Broadbeach</a> are also in negative territory. In other words, property today is worth less than it was five years ago. Sadly, this is all too normal on the Gold Coast. 
Of course, the savvy investors who are doing the snapping up thing are attracted by those low values, on the assumption that they won’t go any lower and things will improve. Therefore, they are fulfilling the job description by snapping up a bargain with a view to future windfall gains. That’s what you do when you’re savvy. 
That’s why I’ve never bought on the Gold Coast. I’m unsavvy. I like my investments to grow in value, and I like them to be in locations with multi-faceted economies where political decisions aren’t based on what’s in the brown paper bag. 
Buying at the current low prices would make sense if you believed there was strong growth on the coastal horizon. I don’t see it that way. There’s still oversupply on the Gold Coast, and the developers who have avoided going broke are building more apartments. The economy remains overly reliant on tourism, never a good basis for growth. 
Property analyst Michael Matusik does see signs of recovery in some of the signals coming out of the Gold Coast but predicts only very moderate growth in values in the next few years. And he thinks notions of a Commonwealth Games-inspired boom are bunkum. As do I. 
So here’s a tip: if you want to grow your wealth in real estate, it’s hip to be square. Avoid savvy.
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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terryryder-YECXbqmri2

Whatever you do, don't become a savvy property investor. Stay square: Terry Ryder

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The problem with a million-dollar view in Sydney is it now costs a lot more than $1 million.
There’s a website, <a href="https://www.propertytycoon.com.au/" target="_blank">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a style="font-size: 14px;" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" target="_blank" rel="nofollow">Property Observer readers have their own competition, which you can access here</a><a href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" rel="nofollow">.</a> The winner of the overall competition will win $1,000.
<img src="/images/stories/2012/11/shackel.jpg">
To get the view that million-dollar view <a href="https://www.realestate.com.au/property-house-nsw-clovelly-111965679" target="_blank">15 Shackel Avenue, Clovelly</a>, has on offer you will first need more than $2.5 million just to get your hands on the land. From there you will drop another million to build a two-storey home and then you will truly have a spectacular million-dollar view.
This <a target="_blank" href="/news">Clovelly </a>property is certainly what you would call tightly held. It was purchased by the current owner back in 1974 for $49,000 and has been an outstanding investment. If it does crack $2.5 million as Daniel Gillespie from Belle Property expects it will have shown an annual compound growth rate over 10%.
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marmstrong-sd3emVLPPb

Sydney auction tipping: Million-dollar view in Clovelly, for three times the price

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The vendors of a Mont Albert property going to auction this weekend hope a significant renovation entices $1.2 million-plus buyers.
There’s a website, <a target="_blank" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a rel="nofollow" target="_blank" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" style="font-size: 14px;">Property Observer readers have their own competition, which you can access here</a><a rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">.</a> The winner of the overall competition will win $1,000.
They just don't build them like <a target="_blank" href="https://www.realestateview.com.au/Real-Estate/1-laurencia-court-mont-albert/Property-Details-buy-residential-4587709">1 Laurencia Court, Mont Albert</a>, anymore. This “Waterfall Art Deco” property was built in 1946 and features an original iron curved staircase. The five-bedroom home is full of character and is located at the end of a quiet <a href="/news">Mont Albert</a> court.
<img src="/images/stories/2012/11/laurenci.jpg">
The current owners purchased the property in 2004 for $613,000 and have made significant cosmetic improvements to the property including an alfresco space that includes a heated below-ground pool. Tom Ryan from Jellis Craig says this property has really struck a chord with a lot of buyers and expects the property will sell in excess of $1.2 million.
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Melbourne auction tipping: Character-filled Art Deco home in Mont Albert

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Xavier Perronnet of iProperty Plan argues:
The federal government’s National Rental Affordability Scheme (NRAS) is being used as a marketing tool to sell property. The scheme was introduced in 2008 and is designed to help meet the social need for affordable rental housing by encouraging investment in residential property through attractive tax incentives.
The scheme provides a substantial financial incentive of a minimum of $9,524 tax-free per house annually to investors who rent approved houses at 20% or more below current market rates to eligible tenants.
However, NRAS is not an investment scheme per se, it is a housing scheme. It aims to provide affordable accommodation and underpins the government’s drive to privatise public housing.
My concern with the scheme is the regulated choice investors have. Asset selection is limited to new approved developments in areas where there is a need for affordable housing. It aims to supply 50,000 new dwellings, and because these are in defined areas where approval is granted, there is a risk of clusters of NRAS properties throughout the market. This has the potential to cause oversupply issues down the track.
Further, these developments tend to be in areas where land is available at low cost, which is generally the case when there is limited demand in the area.  However a key characteristic for capital growth is a high land value and limited supply.
The popularity of NRAS properties is growing as financial planners find ways to market the incentives and make money through their referrals and recommendations. Investors need to be aware that large kickbacks of 5% to 10% of the purchase price are being paid to the advisor who is making the recommendation to purchase, and that these kickbacks are simply built into the purchase price of the investment.
I have come across a number of people promoting these schemes, and the alarm bells have been ringing. In one example an investor was offered a unit backed by the scheme for $356,000. On paper the investment cashflows looked great but when subjected to greater scrutiny, the property was found to have a market value of closer to $300,000. 
Investment schemes that are heavily marketed off the back of cash incentives and tax benefits are nothing new. In recent times we have seen a number of investments that have been sold with a focus on up front benefits only to be a disaster down the track.
In the early 2000s a wave of off-the-plan properties were sold around the country. The lure of stamp duty savings and depreciation benefits were used to attract buyers. Fast-forward five years and many of these properties have been resold at a loss. In one example a Docklands property was purchased in 2001 for $582,000 only to be sold in 2006 for $455,000.
Further, the investment time bombs are not limited to the property market. In 2008 many investors got stung investing in agribusiness managed investment schemes such as Timbercorp and Great Southern. Once again these investments were sold with the enticement of upfront tax deductions. However when the dust settled the Australian Securities and Investments Commission (ASIC) was reported to have identified issues with inadequate disclosure of information to potential investors and poor performance of the investments. Once again these investments were sold through financial planning channels where commissions of around 10% were paid.
It is important to point out I am not criticising the NRAS scheme itself, however investors need to understand the true motivations of the scheme. They should be wary of the marketing machine that uses the scheme to make an investment product look good.
Upfront cash benefits are great, but they must be viewed as a bonus. The quality of an asset should be assessed in isolation of any incentives.  If the investment asset does not grow in value, or worse has the potential to lose money, then why bother? In some cases keeping your money and just going on a nice holiday is a better option.
Xavier Perronnet is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
 
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Michael Sloan of The Successful Investor counters:
There’s an easy trap to fall into when you’re a property commentator or you work in the industry: the lure of the blanket statements. As more and more of our lives get reduced to soundbites, it’s easy to release lines like “only buy houses” or “don’t touch it if it is more than 10 kilometres from the CBD”, then sit back and relax.
Of course, in property investing, like everywhere else, there are many shades of grey to each argument. Your skill and attention as a property investor should be focused on ensuring that you make the right decision for you and your personal circumstances, while our job as industry leaders should be to provide you with enough factual information to make that decision an informed one.
Unfortunately there has been a lot of misinformation from some property commentators or financial planners telling investors to stay away from properties in the National Rental Affordability Scheme.
While I’m obviously in favour of investing in the NRAS system, I should point out from the start that this is not a blanket statement. There are good NRAS investments and bad ones – it’s your job to make sure that you choose an investment that is best for you.
If you are new to NRAS let me explain it very simply:
•             You buy an investment property.
•             You provide a discount on the rent
•             You get tax-free money from the state and federal governments
The scheme is in place to provide affordable rental properties for middle- to low-income earners. However the income threshold is not as low as you may think. For example, tenants qualify with an income below $45,496 for a single person and $93,079 for a couple. If the couple has two children, the eligible income can increase by 25% with no penalty, which takes the threshold to more than $116,000 per year – a figure most would consider as well off.
According to the Australian Department of Families, Housing, Community Services and Indigenous Affairs, which is responsible for administering NRAS, properties in the scheme are typically indistinguishable from other middle-market dwellings. Rigorous criteria is applied to the location, design and amenity of approved dwellings, and investors can expect to benefit from the annual NRAS Incentive, rental yields and capital gain.
If you are a potential property investor what does this mean to you? Let’s say the normal rent is $400 a week. Under the NRAS program you rent it at $300 a week.
This means you lose $5,200 in income each year ($100 per week), although this income would have been taxable, so your actual loss is about $3,800. But you get $9,981 tax free!
As a comparison, we recently sold units in an <a href="/news">Essendon North</a> development where some were under the NRAS allocation and others were sold to either owner-occupiers or investors who did not wish to participate in the scheme.  For those investors, the cashflow was negative $90 a week in year one, $66 in year two and it took 10 years to become positive. But as an NRAS property, it was positive cashflow $54 a week in year one $81 in year two and $239 by year 10. Over the first 10 years this property is cashflow positive by more than $70,000. These figures are based on an income of $65,000 and a 6.5% interest rate.
This money can be used to reduce personal debt, to pay off the investment property or, yes, to have a holiday.
Critics of NRAS are quick to dismiss its tax benefits by likening it to other schemes with so-called ‘tax benefits’ such as timber plantations and olive groves. Of course, the two have nothing to do with each other. The stock-market based tax dodges were marketed for their tax breaks alone, whereas investors in the NRAS scheme have the security of owning quality properties in good locations.
Others have linked it to negative experiences purchasing off the plan properties in large-scale developments such as Melbourne’s <a href="/news">Docklands</a>. Once again, the commentators are attempting to use guilt by association. It would be like a stockbroker warning you not to invest in a particular stock because four years ago an investment in a completely different stock performed badly.
A final criticism is levelled at direct sales companies selling NRAS properties, because of the high commissions they receive. They suggest the commission is being added to the price and the properties sold above their real value. Does that happen? Sure, but it happens with non-NRAS properties as well, so to dismiss all NRAS properties because of it is short sighted.
Besides, it is easy to find out if this is happening: just mystery shop the builder/developer and see if you save money by going direct. If so then drop the marketing group like a hot potato.
So why is the blanket statement “Don’t buy any NRAS property” wrong? Effectively these commentators are saying there is not one single NRAS property worth buying in the whole country. In fact a recent article on this site suggested that NRAS properties were so bad you would be better spending your money on a holiday. Really?! Come on!
Why would these commentators make these negative comments about NRAS? More often than not, these commentators often promote inner-city high-capital-growth properties as the only way to invest. They really can’t understand why an investor would buy an apartment off the plan instead of an older inner-city apartment in a block of 12, or a single-fronted terrace or any other of those beautiful properties.
If buying a property that you can brag about is your main reason to invest, or if money is no object then you should buy one of these properties. But these properties are out of reach of the average investor; typically they will cost $300 a week or more after tax. How many investors can afford that? And for those that can afford it, you need to ask the question: what else could you do with a spare $300 a week?
The choice between these two mindsets (the pro-NRAS and anti-NRAS) can be reduced to this. You could buy a normal investment property and put money towards it every week or buy an NRAS property and enjoy the tax breaks where the tenant not only buys the property for you but also gives you a profit.
One thing is for sure, the cashflow on these properties can be outstanding. A client of mine on a high income recently purchased an NRAS property and it is positive cashflow by more than $100,000 in the first 10 years.
When this scheme finishes I doubt we will ever see cashflow figures like this again without investing in mining areas.
Just before you think I have broken my own rule about making blanket statements, I want to make something clear.
Not all NRAS properties are good investments, just like in the regular investment market some are terrific and some are shockers. Each NRAS property needs to be treated on its merits, instead of dismissing all NRAS properties. What’s the solution to avoiding a bad NRAS property? Don’t buy one.
Also, a word of warning about the risks of allowing a company that is selling you an NRAS property to also arrange the loan (in a one-stop-shop type arrangement). Potentially the property will undervalue, and they won’t tell you (especially if you have plenty of equity, as you’ll find the bank will lend you the money without telling you about the poor valuation).
How do you deal with this issue? Firstly, you should be aware that there is a cost for the builder/developer to get an NRAS allocation and they will usually pass that on to you (the cost is generally around $10,000 to $16,000). While some might baulk at this, you should remember that it’s similar to paying extra for ducted heating so you get higher rent.  If you want to check the valuation, make your offer subject to a satisfactory valuation, then make an allowance for the NRAS loading and decide if it is reasonable. The key is to make sure the broker or lender tells you what the property values at.
Lastly, one more warning: for most investors interested in NRAS, it is now or never. Why?  Because it is unclear how much longer the scheme will last for. For an investor who plans to buy a few investment properties, buy the NRAS-approved property first, because by the time you’re back in the property market the scheme will likely be at an end.
So remember: keep an open mind about the National Rental Affordability Scheme. Don’t buy a property just because it is has an NRAS allocation. And don’t listen to commentators telling you to stay away from every NRAS investment.
Michael Sloan is the founder of The Successful Investor. He regularly writes for NAB about property investing – for further information about NRAS visit <a href="https://moneybasics.nab.com.au/michael-sloan." rel="nofollow">https://moneybasics.nab.com.au/michael-sloan.</a>
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Room for Debate: Do NRAS properties make good investments?

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Putting a rental property on the market can be a disruptive time for tenants.
Open inspections, potential buyers driving by and regular contact from the selling agent to arrange further inspections can significantly interrupt your tenant’s daily routines.
However, waiting for the lease to expire before selling a property is not always an option.
Maintaining a positive relationship with your tenant can help to ensure that they remain cooperative throughout the sale process.
If you are looking to sell your rental property, your tenant’s lease should be the priority.
This can contribute to a smooth and hassle-free sale and reduce the likelihood of the tenant causing malicious damage to the property if they feel as though they have been mistreated.
Tenants who respect the landlord and the property are likely to ensure it is well maintained and tidy for open inspections, which can help to attract possible buyers.
A tenanted property that is clearly well looked after can also be an attractive proposition for potential investors. If they are the successful buyers, they may look to keep the tenants rather than trying to find new ones.
How you manage the situation and what you can request from the tenant depends on the lease agreement that was signed by you and the tenant at the beginning of the tenancy.
If the lease is a fixed term agreement, you must allow the tenant to remain in the property until the end date stated on the agreement.
However, if you would like them to vacate the property prior to this date, you can try to negotiate with them.
 
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If the tenant is on a periodic lease, you are entitled to end the agreement.
The termination notice period and requirements vary from state to state and according to the tenancy agreement, so make sure you are familiar with these details.
It is therefore a good idea to ensure any periodic lease agreement you present to tenants at the beginning of a lease outlines what would happen if you wish to sell the property so they are aware of the process prior to entering the agreement.
There are many things landlords can do to maintain a positive relationship with their tenant while selling their rental property.
Regardless of the type of agreement you and the tenant entered into, you are required to issue the tenant with written notice to inform them of your intention to sell the property before the property is listed for sale.
Giving the tenant as much notice as possible regarding the property being placed on the market will allow them time to plan for the situation and, if necessary, relocate.
Passing as much information as possible from the selling agent onto the tenant and acting as a go-between for each party will reduce the likelihood of surprises down the track.
The selling agent must discuss open inspection times with the tenant and seek their permission to use photographs that contain any of their possessions in marketing materials.
You may wish to ensure that the tenant is happy with the arrangement and that the selling agent obtained the agreement in writing.
If the property is nearly due for a routine property inspection prior to being put on the market, you may also wish to bring the date forward and conduct it before open inspections commence.
This will allow you to identify and action any maintenance issues prior to the property going on the market and limit interruptions for the tenant while the property is up for sale.
Once the property has been sold, it can be a nice gesture to offer your tenants an excellent reference that they could use to apply for their next rental property.
Carolyn Majda is insurance manager at landlord insurance specialist<a target="_blank" href="https://terrischeer.com.au/"> Terri Scheer.</a>
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Your tenants should be your top priority if you are selling your investment property

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Nine months after a tile fell from its façade forcing the closure of retail stores, a protective barrier remains around ISPT’s façade-damaged 447 Collins Street office tower.
The future of the 20-storey Godfrey &amp; Spowers-designed office building, built in 1965, remains uncertain with ISPT committed to repairing the façade but also seeking to redevelop the building.
It remains tenanted in part by Suncorp, which also owns the naming rights to the building on the corner of Collins Street and William Street in the Melbourne CBD. 
However, <a target="_blank" href="https://www.propertyobserver.com.au/office/tenants-yet-to-get-compensation-guidance-after-emergency-closure-of-collins-street-office-building/2012020953323">pedestrian access remains blocked, with barriers erected on three of the four sides.</a>
Daryl Browning, chief executive officer of ISPT, tells Property Observer the building will remain tenanted by Suncorp until mid-2013.
“Some works will be undertaken on the facade over the next six months as agreed with Melbourne City Council,” says Browning.
A spokesperson for Melbourne City Council confirmed that ISPT have applied for a building permit “for the installation of a system that will secure the panels and enable the public protection to be removed”.
“The first stage of the permit will address the western side of the building.  A second stage permit will then be required for the remainder of the building
“The documentation is currently being assessed for compliance with the relevant regulations, codes and standards.  Barriers and traffic management installed to protect the public will remain in place until the works are complete,” says the spokesperson.
Part of the façade has been removed entirely, exposing the grey concrete behind it, while the other parts of the facade are held in place by a steel framework.
The building forms part of ISPT’s Core fund, one of the Australia’s largest unlisted property funds, with a valuation as of September 30 of $6.8 billion.
According to the 2012 ISPT annual report, the building is one of a number that are earmarked for future development.
The report does not provide any information or update regarding the damage to the façade, which forced Melbourne City Council to issue an emergency order and the protective barriers installed.
ISPT has approval to build a Buchan Group-designed 11-storey office block and a two-storey restaurant on the site, with permit due to expire in December 2015.
However, the building was recommended for heritage protection in July 2011 by Melbourne City Council.
The collection of shops at the Collins Street-facing side of the building were forced to close when the tile fell. Two shops on the William Street side of the building – a furniture store and barber – continue to operate.
The ground floor foyer and large plaza forecourt – a popular lunchtime eating spot – have also been closed since the two-metre-by-one-metre marble panel fell into the plaza on January 30.
ISPT bought 447 Collins Street for $81 million from AXA in November 2004.
Browning told Property Observer in February the weather could have affected the adhesive.
“Just as windows can break, adhesions or fixings can be affected by weather, extreme weather. There could be some breakdown in the metal or the adhesive. It unfortunately does happen,” he said.
Tenants affected by the closure of their shops must apply to ISPT for compensation, Browning said in late March.
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