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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PRDnationwide estate agents will give home buyers the chance of discussing their mortgage needs with online non-bank lender eMoney following the signing of a referral partnership agreement between the two businesses.
PRDnationwide operates 120 franchise offices, all of which will have the option to refer on clients to eMoney.
Real estate firm tie-ups with lenders and mortgage brokers have become a fairly common feature of the industry over the past decade.
McGrath Estate Agents set up mortgage broker Oxygen Home Loans in 2004 to provide home loan services to clients. Oxygen Home Loans sub-aggregates under AFG. It was named major brokerage of the year at the 2012 Australian Broker Awards in August.
Ray White acquired mortgage broker Loan Market Group in 2009, which has 600 mortgage brokers across Australian and New Zealand and writes around $600 million in loans per month.
Century 21 has its own mortgage broker franchise, Century 21 Home Loans, as does Raine &amp; Horne with its broker offering Raine &amp; Horne Financial Services.
Under the arrangement with PRDnationwide, eMoney receives major bank wholesale funding and currently offers a standard variable rate home loan rate of 5.65% and a three-year fixed rate home loan from 5.25%. Lower rates are available for borrowers who can stump up a 25% deposit.
It consistently offers among the lowest variable and fixed-rate offerings in the market and says it is able to do so because it does not have the added cost of expensive overheads due to its online business model.
Tony Brasier, chairman and managing director of PRDnationwide, says the firm had a number of pre-requisites in its search for a home loan partner.
“The first was an online solution. We wanted to ensure our potential clients were referred to efficiently with a guaranteed response.
“The second was access to innovative and competitive financial products, and the third was to find a financial company that was honest with an exemplary reputation in the marketplace; eMoney ticked all the boxes for us,” he says.
Commenting on the tie-up with PRDnationwide, Neil Manuel, general manager of eMoney, says buyers will benefit through PRDnationwide’s expertise in the property market and eMoney’s competitively low variable home loan rate.
“It is important for buyers to shop around before they commit to a home loan and if a buyer is looking to purchase a home through a PRDnationwide franchise, they should speak to their agent and arrange a phone call with an eMoney consultant before signing on the dotted line with their current lender,” says Manuel.
“A simple phone call to get a better rate can potentially save thousands of dollars in future interest repayments.”
Manual says choosing an eMoney home loan at a variable rate of 5.5% could save a buyer up to $221 a month in repayments on a $300,000 mortgage over 25 years.
“That’s a saving of over $2,600 in mortgage repayments a year, and rather than giving your hard-earned cash to the bank, this spare coin could be used to take your family on a holiday,” he says.
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PRDnationwide sets up home loan referral partnership with online lender eMoney

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Aussie Home Loans boss John Symond is urging first-home buyers to consider buying with friends or family, rather than miss out on a good opportunity.
In a blog post, Symond says co-ownership allows buyers to get a foot on the property ladder by combining their borrowing power and splitting the cost of buying property.
Symond says timing is everything when it comes to making a purchase and believes it can be a better idea to buy with someone else than to not buy at all.
“If you see an opportunity where prices have come off, it may be a good idea to buy with a friend or relative if you can’t afford to buy yourself,” he says.
“But you really do need professional advice to do this.”
Symond points out that buying under a co-ownership agreement means you can split all the fees that come with buying a home including stamp duty, legal costs and inspections.
And, he says, there is a good chance you’ll be able to reduce the length of the mortgage and own your half of the property faster.
Symond says improved housing affordability, stable property prices and low interest rates have made shared property purchases more uncommon in recent times, there are still plenty of people who are opting to co-own.
Symond highlights the many things to consider if you are serious about co-ownership.
“Get advice with structuring the purchase. What happens if your friend or relative changes their mind somewhere down the line? What happens if one of you wants to keep the property and one wants to sell? Or if one wants to rent and the other wants to move in?
“There are a lot of scenarios to consider and you really do need to tick all the boxes.”
PodProperty, which specialises in shared buying of property, recommends that buyers enter into a legally- binding co-ownership agreement.
This is a contract between parties who own property together as "tenants in common".
“It can cover many different types of relationships, including groups of friends, family members, defacto partners (either heterosexual or same-sex) or any combination of these types of relationships,” says PodProperty.
PodProperty charges $350 to write a co-ownership agreement and also offers a free guide to co-ownership on its website.
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Buy with friends rather than miss out on a good property opportunity: John Symond

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There were 770 sales in Perth this week, up 15% from 670 the same week last year. The most actively traded suburb was East Perth, with 23 sales, followed by Scarborough, with 19. 
 
<img src="/images/stories/2012/11/reiwanov7.gif">
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Perth sales up 15% on same week last year: REIWA

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Wealth management company <a href="/news">Yellow Brick Road and Macquarie Bank</a> have foreshadowed some sort of relationship that will provide a “much-needed alternative for Australian consumers”, with the first step being a new mortgage product.
Challenges to the big four banks' dominance of the mortgage market are welcome (even though this writer has shares in those banks, and also in Macquarie). But there is a lot more information needed before the positive spike in YBR’s share price following the announcement could be seen as warranted.
While as an academic researcher I do not believe it appropriate to generally comment on business strategies of specific companies, I don’t think my social conscience can let this one pass.
Take the following description in YBR’s <a href="https://www.asx.com.au/asxpdf/20121107/pdf/42b1g692g3vrs6.pdf">two-page announcement</a> to the Australian Securities Exchange. It reads:
<blockquote>
“Yellow Brick Road’s opening move is a 1.15% discount off the base rate of 6.65% for the first 12 months on residential home loan products.
After that, a discount off the base rate of up to 0.86% is guaranteed for the life of the loan… All successful applicants will get the discounted rate irrespective of their status."
</blockquote>
Now, it may just be a drafting error, but “up to 0.86%” is not the same as “of 0.86%”. “Up to” could include zero! But even more relevant is the question of how the base rate is determined.
It may be 6.65% today, but what will it be in a year’s time? A quick search of the YBR website provided no information to answer this question – even among the list of FAQs provided. A discount on a base rate that might exceed the standard rates offered by other lenders would be a “Clayton’s discount” (for those who can remember the ads for “the drink you have when you’re not having a drink”).
Now, it maybe that the tie-up between YBR and Macquarie will enable funds to be raised at a rate to finance mortgages which means that the YBR base rate is competitive with loan rates of the big four and other lenders – although how is not clear. But more fundamental (or maybe it’s semantic) is the issue of what is meant by a base rate which no one pays? All successful applicants, it is stated, get the discounted rate.
I can imagine the possibility that a relationship between a wealth management company such as YBR and Macquarie Bank could yield potential economies and efficiencies. And I look forward to more information to assess that.
But a two-page news release with the sort of information contained is really no news at all – even if it was listed on the ASX announcements as being a “price-sensitive” announcement.
Kevin Davis is research director at <a href="https://www.australiancentre.com.au/" target="_blank">Australian Centre for Financial Studies</a>
This article originally appeared on <a href="https://theconversation.edu.au/" target="_blank">The Conversation.</a>
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Challenges to big four mortgage dominance welcome, but YBR-Macquarie partnership raises questions

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54 Nasmyth Street, Young, NSW, 2594 <img src="/images/stories/2012/11/naysmith.jpg" width="470">
This two-bedroom cottage in the NSW town of Young was recently rented for $150 per week and is currently vacant. LJ Hooker agent Christian Rowan says it would be a great investment opportunity. It is on a 758-square-metre block with a garage and is within walking distance of schools.
Rowan is marketing the property<a target="_blank" href="https://www.buxton.com.au/"> </a>with price hopes of $100,000 plus, and if it sells for that price, that would secure an investor a gross rental yield of 7.8% at a rent of $150 per week,  well above the gross rental yield for Young houses of 5.6%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees.
<a href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT" target="_blank">Washington Brown</a> estimates the first-year tax depreciation deduction to be $2,000 and over five years to be $4,000.
The median house price in Young rose 6.5% in the past year and 13.6% in the past five years, according to RP Data.
For more information about prices and yields in <a href="/news">Young, see the RP Data suburb page.</a>
The property will go to auction Saturday, November 10 at 10am. 
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Friday form guide: Yields of up to 7.8% in Young

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I love it when debates around whether there is a property bubble begin, and so I particularly enjoyed reading about the latest debate, right here on<a href="https://www.propertyobserver.com.au/residential/room-for-debate-is-there-an-australian-housing-bubble/2012110157585" target="_blank"> Property Observer</a>. 
This one pitted Terry Ryder, whose job is to examine property markets and their movements at their most fundamental, determining the potential impact of future, planned activity on micro property markets, against Phillip Soos, a master’s research student and employed researcher at Deakin University.
People always take sides, and it comes down to which side of the fence you sit on.  In this particular debate, the two sides have completely different backgrounds, experience and perspectives and use entirely different methods to assess and forecast the property market.
Terry uses factual data to establish whether or not there is likely to be property price growth in the future, along with issues of housing affordability, supply and demand and general price movements.  From what I can see he looks at areas in their individuality, considers the micro-economic situation in its present form and then overlays the information he has about what’s happening next in that area.  When this is all measured against the supply factor, I think he is saying that strong, local area economic growth, where there is an undersupply of property, has to mean that property in that area will go up.
Phillip uses some pretty impressive data, some great-looking graphs and some economic theory to predict a bubble.  From what I can see, he overlays this theory and graph drawing upon the Australian property landscape and from that he draws the conclusion we are in a bubble.  In addition, he quotes Minsky’s financial instability hypothesis, one that says that where income flows cover neither principal nor interest repayments the result is an asset bubble, to assert that there is, in fact, a bubble.
I like economic theory as much as the next guy, and I definitely use economic factors on which to base my own prognosis of where I think a property market is headed.  It’s not an exact science, but there is a good degree of empirical evidence to show that strong underlying economic factors, such as decreasing unemployment, increasing median household income and an improvement in gross regional product can often lead to property price growth.
However, I can’t help but get an uncomfortable squirming feeling when I see someone who devotes their life’s work to studying property markets at the most micro of level debating against someone who uses economic theory to pronounce to the property investing world that there is a bubble.
If my two cents worth means anything, here it is:  If we live in a country where there is such a vast difference in property prices, where we have areas that are ramping up and those that are plateauing or falling in value, where we have two-speed economies (Queensland) and varying degrees of local government activity, infrastructure development and employment opportunities, how can we possibly rely on a single, economic projection of a single property market to establish if there is a bubble or not?
 
<hr class="system-pagebreak">
 
The other factor that has me twitching at my desk, wanting to shake someone, is that those basing forecasts on economic theory like to ignore the bottom line impact of taxation.  Yes, I get it that at any time the government can take away tax benefits. 
I also know that investing for a tax benefit is no way to approach your retirement  income needs.  However, we do live in a country where the tax treatment of investors is quite unique and decidedly different than most others in the developed world, and from what I can see it makes it difficult to rationalise the theory that ‘where income flows cover neither principal nor interest repayments the result is an asset bubble’. 
To the average punter, what matters most is cashflow, and since investing in property in this country is tax advantaged, (and includes on-paper deductions for depreciation in many cases), the cashflow for many properties purchased today in economically strong areas with great yields and potential for further values growth is positive, or at least even.  Whether gross rent covers principal and interest repayments is a moot point when you consider that you can get a tax break equal to, or greater than, the difference.   And while ever that possibility exists, investors will continue to support those markets, creating further, albeit moderate, values growth and continuing strong yields.
I’ll never understand why economists cannot see the forest for the trees and why they insist on having a single-minded, broad view of the Australian property market. I am not suggesting that the market in Australia is fantastic or risk- free, and I don’t think Terry Ryder is, either.  But I do believe that talk of a unilateral property bubble decidedly ignores the true underlying situation – that opportunities for great property investing do exist, and that now is as good a time as ever to find them.
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News.
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Australian housing market too complex to make sweeping bubble statements: Margaret Lomas

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Fact: most property investors never get past owning one or two properties. In my experience, the two big things most property investors fail to do are:
<ul>
<li>Have a formulated property investment strategy; and </li>
<li>Regularly review their property portfolio’s performance.</li>
</ul>
If you don’t really know why you want to build a property portfolio or how it will one day get you out of the rat race and if you don’t really know where you are heading, how will you know which properties to buy? How will you know if you’re on track and on target?
The trouble is if you don’t know where you are going, any road can get you there, but any road can get you lost. And nowhere is this truer than property investing.
What are your goals?
How much money do you want your property portfolio to produce? How many properties will you need to achieve this?
And what type of strategy are your going to follow – capital growth, cash flow or are you just going to leave it up to luck?
Currently there are over 400,000 properties on the market in Australia. Not all of them will make good investments. In fact, most won’t.
To ensure I only buy properties that outperform the market averages I use a 4 Stranded Strategic Approach:
1. I buy a property below its intrinsic value.
2. In an area that has a long history of strong capital growth.
3. I look for a property with a twist – with something unique, special, different or scarce about the property.
4. And I buy the type of property where I can “manufacture capital growth” through refurbishment, renovation or redevelopment.
While most investors read a book or two, do a little research and then buy one of the first properties they come across, strategic investors are smarter than that. They follow a system that is rooted in the real world and has stood the test of time and changing markets.
By following my 4 Stranded Strategic Approach I minimise my risks and maximise my upside as each strand represents a way of making money from property and combining all four is a powerful way of putting the odds in my favour. If one strand lets me down, I have two or three others supporting my property’s performance.
But it doesn’t end there. I also suggest you…
Regularly review your property strategy
While most investors just buy a property and hold it for the long term, strategic investors regularly review their investment portfolio’s performance.
When I ask investors how their properties are performing they usually have no idea. They’ve just closed their eyes, crossed their fingers and hoped for the best. It makes no sense to invest in a property and then not review its performance every year or so.
Some investors avoid the tough decisions and excuse their property’s poor performance by saying things like “it will turn around eventually” or “I don’t want to make a loss, so I’ll sell it when I can cover my costs.”
 
<hr class="system-pagebreak">
 
Interestingly, every year I like to ask myself some questions about each of my investment properties:
<ul>
<li>How has this property performed over the last few years?</li>
<li>Knowing what I know now, would I buy this particular property again?</li>
<li>Is this property likely to outperform the averages over the next decade?</li>
<li>Is there anything I could or should do to improve this property and generate a better return on investment for me?</li>
</ul>
Logically, if a property has not performed well over a three or four-year period, it’s likely to be a dud investment. The answers to these questions help ensure that I only retain top performing properties in my portfolio and that my money is working hard for me.
But isn’t it the wrong time to sell?
If due to your financial capacity you can only afford to hold five properties, you should aim to own the five best performing investment properties you can. This means that if your property isn’t giving you the return you feel it should, then it might be time to make a change either through renovations, by changing property managers or by selling up and buying a better performing investment property.
I know the market is flat and you may not get the optimal price today, but don’t wait till the market picks up because the gap between your underperforming property and better performing investments will only widen as the market improves and it will become harder and more expensive to buy the type of property you’d like to own.
Essentially the sooner you can identify and offload an underperforming property, the better. Sure, you may crystallise a loss, or have to pay some capital gains tax on the sale and then pay stamp duty on your next purchase.
I understand this may mean that you’ll take two steps back to move three steps forward; but if you treat your property investments like a business, and that’s what all strategic investors do. You’ll recognise that it’s not how much money you make that matters; it’s how hard your money works for you and how much you keep that counts.
Sure, there are lots of other mistakes you could make as an investor, but if you adhere to a proven property investment strategy and then regularly review the performance of your real estate portfolio, you’re likely to avoid the majority of blunders that other investors make.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
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Why most property investors don't get rich: Michael Yardney

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The unemployment rate holding firm at 5.4% in October should not prevent the RBA from cutting the cash rate to 3% on December 4, says ANZ.
Markets had tipped the unemployment to rise to 5.5%.
ANZ says that ongoing softer labour market conditions prevail and support its view that the RBA will need to reduce the cash rate further, with a 25-basis-point rate cut “pencilled in for December”.
Borrowers should take note of this forecast – ANZ was the only major bank to correctly tip the RBA to leave the cash rate on hold on Melbourne Cup Day in November.
According to ANZ, the key metric is not the overall unemployment rate, but the "employment-to-population ratio", which “fell a little further, meaning that jobs growth is not keeping pace with population growth”.
“The less-volatile, and in our view more important, ANZ job ads series points to further declines in this ratio coming months,” says ANZ.
EMPLOYMENT-TO-POPULATION RATIO VERSUS ANZ JOB ADS 
<img src="/images/stories/2012/11/anznov9.gif" width="470">
Sources: ABS, ANZ 
“Population growth is strengthening in Australia so stronger employment outcomes are necessary to stop upward pressure on the unemployment rate.
“At current rates of population growth (+27,000 per month), 17,000 net new jobs are required each month to keep the ratio of employment to population steady and prevent the unemployment rate rising (barring lower participation),” says ANZ.
There were 10,700 more people employed in October – well below the 17,000 required, while ANZ also points out that the ABS trend measure of employment growth has remained in the 2,000 to 2,500 range for the past four months, “which is clearly weak”. 
According to ANZ, the unemployment rate remaining unchanged at 5.4% in October, following a “sharp 0.3 percentage point jump in September” confirms that “Australia’s labour market, while gradually deteriorating, is not collapsing”
The bank forecasts the jobless rate to rise to around 5.75% by mid-next year.
Taking a look at the jobs data, CommSec chief economist Craig James says there is “something for everyone”.
“The optimists could focus on the ongoing rise in full-time employment over the past four months and conclude all is fine.
“The pessimists would look at the fall in the participation rate and hours worked and conclude something more concerning."
But he says what is clear is that the labour market is “treading water”.
“Yes, it was encouraging that employment grew but more forward looking indicators like job advertisements have suggested that further labour market gains may be more circumspect. In fact internet and newspaper job advertisements have fallen for seven consecutive months, suggesting job growth is likely to flat line in coming months,” says James.
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ANZ finds gloom in jobs figures to suggest December RBA rate cut is likely

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Buyers' agent Catherine Cashmore:
RP Data’s Rent vs Buy report flew into my email box this week, and already bold claims are being made across the internet and in print media that it’s currently cheaper to buy in 388 suburbs for those servicing a principal plus interest home loan using a variable rate.
Hurray! I hear you all cry – with the joyous voices marginally overpowered by the stampede of renters’ feet as they rush into their local real estate agency, chequebook in hand.
RP Data claims to be “Australia’s leading property data and analytics company”, and for the most part, I enjoy their market insights, updates, and media releases – all of which provide a valuable service for those of us not privy to direct data collecting software.
However, once in a while, I dearly wish RP Data would spend a little time thinking about the headlines it is creating before jumping in with the bold claims made on this report.
Median values – while a good barometer of the price point the predominant buyer demographic in any one suburb is purchasing – should always be used with caution when assessing if an area is “affordable”. The median price is only the middle number of all properties sold within a single period and therefore not helpful when it comes to assessing individual property prices.
RP Data stratifies its median prices between units and houses – and when producing detailed reports, usually breaks this data down listing other relevant information such as the number of bedrooms and so forth.
However, for the purpose of this report, the median values are simply divided between the two major property types – unit and house – therefore median “unit” value could mean a one-bedroom apartment or semi-detached three-bedroom townhouse. There is no distinction.
In its last report, <a target="_blank" href="/news">RP Data pinpointed 238 suburbs or towns</a> where “the mortgage repayment is lower than the median rent, based on a principal and interest loan on a variable mortgage rate”. Obviously the list expands two-fold when assessing interest-only loans, and there are hefty disclaimers explaining how the research is pinned together. In the latest report, due to lower rates and flattening prices, more suburbs fall into the bracket they use for assessment.
The resulting calculations are derived from the “median” unit price (or house price depending on suburb) and median “weekly advertised rental price”, with the “buyer” purchasing on a 90% loan-to-value ratio at an initial 5.9% variable 30-year loan. (Other examples are calculated on terms of interest only; however the above example is most applicable to the classic first-home buyer profile). The results, however, assume a great deal – to take median values and use them as a barometer of affordability against a median rental price has significant flaws. For example, in Victoria’s list, you will find the popular suburb of Abbotsford – located a hop and a skip from Melbourne’s CBD.
Abbotsford is a favoured area for home buyers looking north of the city, so it may surprise readers that the median value is listed as $360,868. There is currently only a small handful of properties listed for sale online in <a target="_blank" href="/news">Abbotsford</a> that you could comfortably purchase for the RP Data median value (or less) of $360,868. One of the listings is a small one-bedroom flat (roughly 40 square metres) situated on a main road.
There is nothing wrong with the unit – it would suit a first-home buyer – however probably not on a 90% LVR variable home loan (the formula used by RP Data.) Due to its internal size the lender of choice would probably require a larger deposit – however, we’ll put this to one side and assume otherwise.
The median rent in Abbotsford according to RP Data’s Rent vs Buy report is $475 per week – yet in reality, this is the price you’d expect to pay for a small house in “original condition” – not a one-bedroom apartment!
If you’re a renter currently paying $475 per week for a one-bedroom flat, of course it’s cheaper to buy! Yet for the one-bedder that I used as an example, the rent would be roughly $270 per week – cheaper to buy? Not on your Nelly is it cheaper to buy – in fact it’s far cheaper to rent in Abbotsford than it is to buy.
Let’s take another example –<a target="_blank" href="/news">Docklands </a>– Melbourne’s favourite underperforming high-rise metropolis. The median value is listed as $493,185 – the price will buy a standard two-bedroom apartment most likely servicing high owner’s corporation fees due to the high-density construction.
Furthermore, borrowing for high-rise accommodation would likely present problems for a first-home buyer who may encounter lending restrictions for this type of accommodation – especially if borrowing on a 90% LVR. However, once again for the sake of the analysis on this report, we’ll put this to one side.
The median weekly rent is listed as $963 per week – if any renter is paying over $900 per week for a two-bedroom apartment in Docklands I’d suggest they seek help. For roughly $900 per week, it’s possible to rent a fully furnished three-bedroom penthouse with views of the city and beyond! Is it cheaper to rent than buy? No! It’s not!
It may be advantageous for some in the industry to spread the rumours spruiked in the report and encourage buyers to make the move and go see a mortgage broker. Hopefully even those who don’t follow the market closely will be a tad more educated when assessing the analysis.
Rental prices in Australia have risen over 49% over the past five years, and the number of renters is up from 27.2% to 28.7%. Along with this outright ownership is down from 32.6% to 31% and of those figures, 34.5% of 30- to 39-year-olds now live in rented accommodation and clearly struggle to save a deposit while servicing rising rental costs.
Families with children in particular are suffering, recording a decrease in their ownership rates from 79.5% to 77.2%. If it were cheaper to buy than rent, these figures from the ABS census data would be – at best – questionable.
Although Australia may still possess a good proportion of owner-occupiers to renters – enabling some in the industry to close their eyes to distress calls coming from the increasing numbers locked out altogether – both state and federal governments would be foolhardy to ignore the downward trend in ownership and the reducing pool of first-home buyers. Meanwhile, any myth that it’s cheaper to buy rather than rent in some of our most desirable inner-city locations needs to be taken with a degree of mistrust until data can be analysed at a deeper level.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
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RP Data national research director Tim Lawless:
The Buy versus Rent analysis from RP Data is aimed at providing a guide to the difference between mortgage payments and rental payments at the suburb level.  The report is not positioned as a detailed property-by-property assessment of rental costs and loan repayments, although we would encourage prospective purchasers to undertake a more specific assessment of costs based on their individual circumstances.  As Catherine Cashmore points out, there is going to be some diversity in the findings for individual properties.
The article from Cashmore does make some valid points; RP Data has not gone into detail in the report, segmenting houses and units by the number of bedrooms and bathrooms.  This level of detail was not our intention; the report provides an ideal starting point for prospective buyers to embark on their own due diligence.
In saying that, there are some errors in her comments. Firstly, the analysis is based on an assessment of median values, not median prices. The difference may be subtle, essentially, the median value for houses or units within a suburb is much more representative than a median price, as it is not based on simply only those properties that have sold over a period.
RP Data estimates the value of virtually every residential property across the country, the median value for a suburb is based on all dwellings within the suburb, not just those that have sold. It provides a much more stable and representative estimate about what a typical house or unit within a suburb sells for.
Cashmore also suggests the report is rife with disclaimers; any reporting will have disclaimers, and RP Data’s are standard. I think Cashmore is referring to the assumptions outlined in the report.  We aim to be completely transparent in our analysis, and for this reason it is important to ensure readers are completely informed about what assumptions are behind the figures; interest rates, the loan to valuation ratio, the mortgage period, and the methodology behind the numbers is essential to that end.
Tim Lawless is national research director of <a href="https://www.myrp.com.au/" target="_blank">RP Data.</a>
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Room for Debate: Is it really cheaper to buy than rent in some suburbs?

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As project managers, one of our roles is to report to our clients on the progress of their project.  We do this each Friday in a formal written report with photos. The report system proves to be a good record of progress and what happened throughout the project. Our clients get to keep the reports of course and they act as a handy reference tool, giving a snapshot of their project at every stage.
I thought it would make for interesting reading to take some extracts from our weekly client reports on this dual-occupancy project that we have recently completed in the Hunter region of NSW.
The project can be described as: source development site (corner block in Maitland, NSW), design, plan and build two free-standing three-bedroom, two-bathroom, single-storey villas and a two-lot Torrens title subdivision.
You’ll get a taste of the process we managed during this development.
We pick up the story after the client has her construction finance approved and is ready to start building.  There was obviously a few months of work prior to this where we found the development site, a corner block in a new estate. We then managed the design and planning phase, and here we are starting the contraction phase:
25/5/12 - The site has been cut and the plumbers are on site preparing plumbing before the slab goes down.
<img src="/images/stories/2012/11/chiv1.png" width="470">
1/6/12 - The slab was poured yesterday on unit 2, and unit 1 is formed up ready to go. See photos below of the concreters working on finishing the slab on unit 2 and the “waffle pods” (polystyrene foam blocks) used in the engineering of the slab. Once the slab is complete, our builder will send through their first progress claim.
<img src="/images/stories/2012/11/chiv2.png" width="470">
8/6/12 - The slabs were completed during the week and the frames have been started (yesterday). There was a lot of rain during the week so unfortunately there had been no progress when we were on site this week.
By the end of next week, we expect the frames to be completed and the roof trusses to be up. Things are moving along well despite the recent weather.
15/6/12  - Frames and trusses are now up and the windows were being installed this week. The site has been affected by weather; however our builder has managed to continue without really any delay.
<img src="/images/stories/2012/11/chiv3.png" width="470">
 
<hr class="system-pagebreak">
 
22/6/12
We had a good week this week, with the roof being completed, the facia and gutters installed and the bricks delivered to site. The bricklayers are booked for next week so we’ll really see some progress over the next couple of weeks.
<img src="/images/stories/2012/11/chiv4.png" width="470">
29/6/12 - Brickwork has commenced. Rain held up works a little this week, however we found a fair amount of progress evident on the exterior.  The plumbing and electrical fit-out will follow shortly with the builder running all pipes and wiring through the frames before the wall insulation and linings are installed. Brick work should be complete over the next week.
<img src="/images/stories/2012/11/chiv5.png" width="470">
6/7/12
Brickwork has been completed this week. Rain is still lingering, however progress is consistent. The bricklayers have indicated that they would be finished well before the end of the week.
16/7/12 The brickwork is completed and the carpenters have completed the eves also. Timber finish to the porticos has started and we can now see what the finish will be like. We are currently sourcing quotes for timber-look garage doors and front doors (particularly for the grey colour scheme unit). Depending on what deal we can get, it may be an option to change. The electrical and plumbing rough-in is underway, and we should see the wall linings go up over this week.
<img src="/images/stories/2012/11/chiv6.png" width="470">
27/7/12
The hyprock has gone up, and the units are currently being “set” with plaster. See photos of plaster setting on the gyprock walls in unit 2. The materials for the cornices and architraves have arrived on site, and the fit-out carpenter is scheduled to begin on Monday.
<img src="/images/stories/2012/11/chiv7.png" width="470">
3/8/12
The fit-out carpenter was on site this week with the window and door architraves have been installed. Unit 1 is almost complete and work will then move into the second unit today.  Your neighbours have commenced construction on the property next door.
10/8/12
The painters were on site this week and the water-proofing has been completed to all wet areas: bathrooms, kitchen splashbacks and laundries. Next we will see tiling and baths being delivered and fitted.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development. Property Bloom is holding a small seminar next Tuesday in Brookvale in Sydney. Numbers are strictly limited, but if you think you may be ready to take the next step into a property development and would like to come along, then <a href="mailto:jo@propertybloom.com.au">please email Jo for details </a> 
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