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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Private investors were the most active purchasers of Brisbane industrial property over the year to September, according to research by Savills.
These investors bought 43% of the $500 million worth of industrial property that was reported as sold in Brisbane over this 12-month period.
The chart also shows that more than a third (36%) of businesses have been snapping up their own warehouse premises rather than rent – not surprising, as industrial land values have fallen 30% since 2007, according to Savills.
 
<img src="/images/stories/2012/11/pie_chart2.gif" width="500" height="326" alt="pie_chart2">
Click to enlarge
<a href="/images/stories/2012/10/savillsnov2.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/10/savillsnov2thumb.gif"></a>
Savills reports that there is a good level of activity for industrial assets priced between $2 million and $5 million across "all asset types and precincts".
Yields range between 7.75% and 9.75% for industrial property across Brisbane.
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Private investors top buyers of Brisbane warehouses 

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Tasmania’s extraordinary Museum of Old and New Art (pictured below) has won the prized Sir Zelman Cowen Award for Public Architecture 2012.
{yoogallery src=[images/stories/2012/10/nov1mona]}
Melbourne architects Fender Katsalidis received the honour at the Australian Institute of Architects 2012 National Awards.
It is the first time in the award’s 31-year history that a Tasmanian building won the coveted title.
The jury, which comprised of immediate past president Brian Zulaikha, Kerry Hill, Richard Johnson, Amy Muir and Juliana Engberg, found MONA to be a powerful and entertaining experience for displaying and engaging with art within a steel container that is already weathering inexorably into the landscape – creating one of the best examples in the country of the benefits of cultural tourism.
<img src="/images/stories/2012/10/shearer1.jpg">
The Robyn Boyd Award for Residential Architecture Houses went to John Wardle Architect’s for the Shearer’s Quarters on Tasmania’s Bruny Island (pictured above and below). The building houses travelling shearers and rural workers in the region.
<img src="/images/stories/2012/10/shearer2.jpg">
Zulaikha, who chaired the jury, says winning projects embody best practice principles, showcase sustainable solutions and become part of Australia's architectural history.
“We travelled the suburbs of Fremantle, Sydney, Melbourne, Adelaide, Hobart and Brisbane, where architects had found a link to their own ideas and created meaningful contributions to the broader community. With poetics of space and materials the winners have enriched our communities, and skillfully advocated for the quality of our profession and our professionalism,” Zulaikha says.
The awards, which were held in Perth’s historic Midland Railway Workshops, are the nation’s most prestigious awards in the design and construction industry.
<img src="/images/stories/2012/10/bligh1.jpg">
The Harry Seidler Award for Commercial Architecture was picked up by archiectus + ingenhoven architects for 1 Blight Street, Sydney (pictured above), while the late, great Harry Seidler won the National Enduring Architecture Award for Australia Square in Sydney.
<img src="/images/stories/2012/10/swifts.jpg">
Another Sydney legend – The Swifts at Darling Point (pictured above)– claimed the Lachlan Macquarie Award for Heritage for Clive Lucas Stapleton &amp; Partners’ restoration of the 56-room Victorian Gothic mansion.
Other winners include:
The Fredrick Romberg Award for Residential Architecture – Multiple Housing went to BVN Architecture for? Monash University Student Housing.
PTW Architects for the John Kaldor Family Gallery at the Art Gallery of NSW collected the Emil Sodersten Award for Interior Architecture.
The Walter Burley Griffin Award for Urban Design was awarded to Peter Elliott Architecture + Urban Design for the University Lawn Precinct RMIT University.
The Jørn Utzon Award for International Architecture went to FMJT + Archimedia for the Auckland Art Gallery Toi o T?maki.
The COLORBOND Award for Steel Architecture went to Allen Jack + Cottier Architects for Milson Island Sports Stadium.
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MONA architects Fender Katsalidis win prestigious Sir Zelman Cowen Award for Public Architecture

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Ercan Ersan from BresicWhitney Estate Agents has listed a Newtown residence that received an AIA NSW awards commendation in 2011.
Designed by Jon Jacka Architect to integrate with its streetscape, <a href="https://www.bresicwhitney.com.au/real-estate/id/property/10141/newtown/2d-gladstone-street/" target="_blank">Parallel House</a> is an inner-Sydney urban retreat with an industrial edge. The property has its own <a href="https://www.facebook.com/#!/ParallelHouse" target="_blank">Facebook page</a>.
The property at 2D Gladstone Street, <a target="_blank" href="/news">Newtown</a>, comes with 180 square metres of internal and external floorspace behind its colourful facade.
There is a private deck with urban rooftop vista. The master retreat comes with ensuite and decking, too.
Ersan says there is potential for part commercial usage.
It goes to November 24 auction and has price hopes of $875,000 plus.
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jchancellor-FAypfDUnLy

Parallel House, the architecturally commended Newtown, Sydney, abode, listed

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Developer Brady Group is currently marketing its proposed 226-metre tower at 500 Elizabeth Street, near Queen Victoria Market.
The proposed 72-level tower is the tallest approved residential building in Melbourne, having gained approval for its current design in April this year.
<img src="/images/stories/2012/10/vision.jpg" style="margin: 5px; float: left;">
Marketing for the 524-apartment complex is in full swing, with advertisements being placed online and at the site. Marketing officially began in August.
The $300 million tower is named Vision and will contain a mix of one, two- and three-bedroom apartments and penthouses.
Prices for apartments range from $381,000 to $3 million.
The tower is four metres taller than another proposed high-rise tower in Queen Street that is also being promoted as the city's tallest tower. That tower, <a target="_blank" href="https://www.propertyobserver.com.au/developments/singapore-developer-cheeky-for-selling-unapproved-melbourne-cbd-high-rise-project-off-the-plan-lord-mayor/2012101657194">Tower Melbourne</a>, caused controversy last month when developer CEL Australia began selling apartments before it gained approval, a move that Melbourne lord mayor Robert Doyle labelled cheeky and arrogant.
If approval for the building is granted, construction will begin next year.
 Brady Group managing director Tony Brady says he is baffled that the Tower Melbourne development is being sold off the plan as the tallest and without planning approval.
“Vision Apartments has a planning permit and the required setback provides both safety and adds to the visual aesthetics of the building.  Now we are focused on marketing what will become a uniquely located development in the most vibrant and exciting part of the CBD opposite the Queen Victoria Market," Brady says.
The Brady Group bought the site in 2008 for $11.8 million in a hotly contested auction which sold for well above its reserve price.
The building is the former Stork Hotel and Backpacker Auto Sales.
The current estimated completion date for the building is mid-2016.
A spokesperson for the company says some apartments have sold already. He says marketing for the project has been predominantly in Australia, but it is also marketed in Asia.
The site is on the corner of Therry and Elizabeth streets.
"This is a landmark site in the history of Brady," Brady sales manager Gareth Lee says.
The area is attracting more and more development, as developers eschew <a target="_blank" href="/news">Southbank </a>and <a target="_blank" href="/news">Docklands</a> in favour of <a target="_blank" href="/news">North Melbourne</a>.
Lee says developers have been attracted to the area, close to Melbourne University and RMIT, the Royal Melbourne Hospital, the Royal Women's Hospital and the Royal Children's Hospital, because it is still in the CBD but "not in the thick of it".
"There's quite a few different styles of apartment buildings being proposed, and many are student-focused," Lee says.
<img src="/images/stories/2012/10/vision2.jpg">
"Vision is very much tailored toward a lifestyle aspect. There's a lot of penthouses and three-bedroom apartments and only a small number of one-bedroom apartments."
For comparison, the tallest mixed-use building in Melbourne, the <a target="_blank" href="https://www.propertyobserver.com.au/developments/fender-katsilidis-ever-changing-place-in-melbourne-s-skyline/2011101351927">Eureka Tower</a>, is 297 metres.
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Vision, the tallest approved residential building in Melbourne CBD, begins marketing

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In a shared cab on the way home from my brother-in-law’s birthday party (while dressed as Carmen Miranda) I asked this bloke who was a friend of the birthday boy what he did? By the way, it was a Rio Carnival party; I don’t normally go out with fruit salad on my head!
He said he had an importing business. I have a curious nature at the best of times, but after a few drinks I can be subtle yet blunt with my questioning. It doesn’t seem to offend anyone, and I end up learning about lots of stuff I would never have known about. I am truly interested to hear about other people’s stories.
It wasn’t long before this normal-looking chap told me he had just finishing a million-dollar new home build after knocking down in an area that I knew he would have paid well in excess of a million to buy in in the first place. I thought to myself, “OK, who has a lazy mill to spend on building on essentially a block of land that has cost him that much?”
Next question: “By the way, what do you import?”
Turns out this very clever bloke had a science background and was importing drug-testing products and distributing them to the mines. The mines need to test their employees daily to ensure they are OK to operate all the heavy machinery.
Can you imagine the volume of this market?
After some quick, unofficial research, I’ve found that over 200,000 people work in the mining industry. I’m not sure how many of these will need testing daily, with the salient fact daily. Daily testing is required. So let’s say if only half these people need daily testing, then that means, conservatively over 36 million tests need to be performed a year.
He’d found a great niche and built his business not only on the back of our resource boom, but also the strong Australian dollar, as he was importing from the US. He had low overheads, and his supplier had just bought a fair whack of his company, making him a multi-millionaire.
He was so unassuming yet so entrepreneurial. I said, “You should be on Australian Story or something!” and he said he wasn’t interested, just wanted to “fly under the radar”. He’d taken advantage of economic situations.
Seizing the opportunity is what a successful entrepreneur does.
Here is another example, I have a close girlfriend who has a corporate coaching business and years ago started targeting China. She has done unbelievably well by taking her expertise to China, where they needed to learn about such things as office etiquette, as a small example. Many Chinese were moving to cities from rural areas and they had no corporate experience. My friend taught them how to interact in an office environment, among many other things.
Guess what, she doesn’t even speak their language, but the energy she gave out showed them she was there to make a difference and very soon she’d earned their trust without saying a word (in their language). How cool is that?
How much of the opportunity we grasp really depends on us.
So what are some of your property opportunities right now? Consider this:
<ul>
<li>We have very low interest rates – I hope lower after Melbourne Cup Day!</li>
<li>Great economic indicators, the best in the world, really</li>
<li>High rental returns – in the right locations</li>
<li>Undersupply of new housing - in the right locations</li>
<li>Potential of solid capital growth – in the right locations</li>
</ul>
Big tip: check out the Hunter region of NSW, it’s ticking all these boxes and more if you are looking for a solid investment area.
We’ve been a bit entrepreneurial with our business, too. What we offer is different, essentially it’s a hand of opportunity for those who want to grasp it and for those who are ready to take the next step into property development.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
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Grasp every wealth-creation opportunity, in property and in life

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Once again the value of negative gearing to allow property investors to buy their properties has come into question. 
Some academic commentators and social welfare lobbyists seem to regard negative gearing as primarily a tax avoidance device use by the wealthy to rort the system, which has the added consequence of pushing up property values. 
Negative gearing is not just for the rich
The assertion that all negatively geared property investors are “ugly wealthy Australians” is simply unfounded and incorrect. 
According to 2006-07 ATO taxation records, 1.6 million taxpayers claimed rental income, and of those, two in three negatively geared their investment(s). Interestingly, these investors predominately do not come from the wealthy end of town. Indeed, 74% of negatively geared investors earned less than $80,000. Only 4% were in the top tax bracket. 
The fact is, using the benefit of negative gearing investment has allowed many ordinary working-class Australians to invest in property and to take control of their financial destiny. 
Property investors provide an essential service
While some opponents of negative gearing appeal to the frustration of would-be home owners, suggesting they have been locked out of the market by greedy, tax-driven property investors who receive billions of dollars of tax breaks that push up property prices, I would argue that property investors provide an essential service to millions of Australians who chose to, or have to, rent their accommodation, and as such these investors should be treated like all other businesspeople. 
In our modern society we pay taxes and expect the government to provide us with certain essential services. These include hospitals, roads, schools, jails, public transport, aged care and public housing. 
In Australia the government often shares the burden of providing these services with private enterprises that can often deliver them more efficiently and cheaper. 
When the government can’t supply enough public hospital beds, privately run hospitals step up to the mark and not only receive tax deductions for their business loans, but also allowances to subsidise them. So do aged care providers, schools and public transport providers that provide services in tandem with the government.
Our government also provides public housing, but not enough for all those who can’t afford to buy their own property. While government programs such as the National Rental Affordability Scheme and other social and public housing programs are helpful, it is only the private rental market that can deliver rental accommodation at the rate and scale that is required at present. 
Property investors save a deposit, buy a property, commit to a loan for 25 or 30 years and provide accommodation for others in our community. In return we expect to get a reasonable return on our investment risk, just like other businesspeople do. 
We know that the rent won’t cover our expenses, but accept that certain tax benefits plus the long-term capital growth will make up for this. 
Sometimes it does, and sometimes it doesn’t.
What if the government removes negative gearing?
Leverage and negative gearing compounds returns in the good times, but multiplies losses when property prices are flat or falling. I know as many people who have lost money in property investment as those who have made money.
Much like most other small businesspeople.
If the government takes away my tax concessions, I would have to consider my investment options. To ensure I get a decent return I’d put up my rents if I could, or maybe I’d invest elsewhere to get the best bang for my bucks.
The result would be that rents would rise and tenants would have to fight over the few rental properties left, or the government would have to invest its own money and buy or build properties and enjoy the pleasures of being a landlord.
Of course the government already provides some public housing, but not enough, leaving the task of providing rental accommodation not only in our capital cities, but also in regional Australia and in the remote mining towns to private investors. People like you and me who have chosen to run our own little property investment businesses.
If I set up a dog wash business or a restaurant, I’d be able to claim a tax deduction for legitimate business expenses including loans to set up our business or purchasing business equipment.
Why should it be different for property investors who take on a business risk?
 
<hr class="system-pagebreak">
 
Doesn’t negative gearing push up property values?
To say negative gearing has pushed up property prices is a smoke screen.
Just look what happened to property prices overseas in countries like the USA and parts of Europe, where negative gearing isn’t allowed. They experienced a boom and a subsequent bust of much greater magnitude that we have.
What these lobbyists may not recognise is that borrowing in order to undertake productive investment actually helps economic growth because value is being added.
After all, there will always be some investments that have lower returns than the interest expenses on the loans taken on to acquire them. This economic reality has nothing whatsoever to do with tax.
For example, a typical property investment may start off with a large loan and lowish rent. As time goes by the loan is paid down and the rent increases. Overall the investor makes a profit and the tax office gets its share of this.
Actually, there is not as much loss of revenue to the authorities as some critics believe, because for every dollar of interest claimed as a tax deduction by a borrower there is a corresponding dollar of interest assessable to a lender.
But that’s not all
If the government stops the availability of negative gearing benefits, the danger arises that there may be unintended consequences.
It is possible that even following a positive cashflow strategy you end up negatively geared and suffer. What if:
• Interest rates rise after you buy your investment?
• Rents fall or your property becomes vacant for a period of time? Or
• You have to undertake a major repair of your investment property?
To deny the person making commercial a loss like this a tax deduction would be to inflict a double whammy on them and increase their hardship unduly.
In conclusion:
Any reduction in negative gearing benefits would significantly reduce rental investment in both new and existing properties and would worsen rental affordability through a reduced supply of investment housing. A reduced rental supply means lower rental vacancies and increased rents.
Property investment is a real and effective method for bolstering the savings of middle Australia at the same time providing accommodation for those who the government can’t or won’t help and should remain as is.
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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Negative gearing helps all Australians, not just the rich

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With the recent interest rate reduction in October by the Reserve Bank of Australia (RBA) and another one predicted to possibly occur on Melbourne Cup Day next week. I thought it would be a good time to have a look at just what a difference a 0.25-percentage-point drop in your interest rate really does and how to take advantage of it. (As long as the bank pass on the full rate reduction, but that’s a discussion for next month.)
The first thing that happens every time the rate drops is that every media outlet and even we often send out a chart of what happens with your repayments. And it’s true that on an average $350,000 mortgage a 0.25% difference will save you about $72.91 per month in interest.
For the clever investor or home owner, though, the impact can be far greater.
So how do you take advantage of the recent rate reductions?
For home owners looking to pay off their home
Maintain your current repayments
Now that sounds simple enough, but in reality this can be a little tricky because it can depend on your lender. You see some lenders like the idea of collecting 30 years’ worth of interest from you and will adjust your payments downward each time the interest rate drops. So you get a letter in the mail that says your new payment will be X, you read it and file in the circular filing cabinet. Then what ends up happening is that next month the automatic payment gets taken and you don’t realise and all of a sudden you have spent that extra $72.
If you want to really take advantage of the extra money what you may need to do is call your bank and change your repayment from the minimum amount to a set payment. It’s a simple call that could cut years of your home loan. Why not check out the <a title="Extra Repayment Calculator" target="_blank" href="https://www.chan-naylor.com.au/uploads/57029/ufiles/extrarepayments">Extra Repayment Calculator</a> at <a title="Chan and Naylor | Home Loan &amp; Finance Calculators" href="https://www.chan-naylor.com.au/calculators/">chan-naylor.com.au/calculators</a> and you will see that an extra repayment of $72 a month will cut a $350,000 mortgage by two years and eight months.
Put the extra fund towards paying off your credit cards
If you aren’t paying off your credit card on a monthly basis the rate reduction can be a great way to finally start bringing that credit card balance down. Again, this can be as simple as arranging with your bank to set up an automatic direct debit form the same account your mortgage payments where coming from so that you don’t notice the extra $72. And remember when rates are falling it can be a great time to negotiate to get your credit card interest rate down.
 
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It can be a great time to check out a new loan
Because the market is more competitive and lenders are trying to position themselves after a rate reduction and get you to commit, it can be a great time to shop around for a mortgage. Lenders tend to offer rate discounts and switching incentives to get you to sign on the dotted line, so negotiating can be easier. The savings made by reviewing your loans can be quite substantial, however as always, just be sure to weigh up the overall costs of refinancing (upfront, ongoing and exit fees) compared to the savings.
For property investors
In the last 12 months interest rates have dropped over 1.5 percentage points (according to the RBA website), that means we have had six rate drops of 25 basis points each in the last 12 months. Well, you're probably thinking that's pretty simple maths and rather obvious. But have you thought about the fact that these rate reductions have essentially reduced your interest cost by six times $72 a month? That means you now have almost $432 extra per month.
What if you put that $432 in cashflow per month back to work for you? With variable interest rates around 6% at the moment that’s an extra $86,400 you may be able to borrow. Probably not enough to get you into another property, but then these numbers are based on a single $350,000 loan.
What if you have a home loan and an investment property? You can see that the last 12 months could really be doing you some favours.  And with three-year and five-year fixed rates between 5.5% and 6% now is a great time to take advantage of a <a title="Request a Free Lending Capacity Check | Chan &amp; Naylor Finance |" href="https://www.chan-naylor.com.au/free-lending-capacity-check/">Free Lending Capacity Check</a> to check your new borrowing capacity.
With your extra borrowing power it can be a great time to be looking for new property investments especially where property market prices have fallen. However when interest rates drop, eventually people start to notice the extra money in their pockets and eventually consumer confidence starts to return.
Now if anyone can tell me exactly when consumer confidence is going to return, as they say in the old movies I will buy them a steak dinner.
Albertus Waldron is finance strategist and partner at<a href="https://www.chan-naylor.com.au/" target="_blank"> Chan &amp; Naylor</a>
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How owner-occupiers and property investors can make the most of an RBA rate cut

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<a target="_blank" href="https://www.realestateview.com.au/Real-Estate/7a-79-atherton-road-oakleigh/Property-Details-buy-residential-4593451">7a/79 Atherton Road, Oakleigh, VIC, 3166</a>
<img src="/images/stories/2012/10/atherton.jpg" width="470">
Within easy walking distance of Oakleigh train station, shops and cafes, this two-bedroom apartment is currently leased at $380 per week on a month-to-month lease. Listing agent Nick Blow of Hodges says this is about at market rent for the unit. It has reverse-cycle air-conditioning as well as a basement car park and storage.
Blow <a href="https://www.barryplant.com.au/property.cfm?propertyID=2175147&amp;realestate=1_Balmoral_Way_PAKENHAM_VIC_3810&amp;menuItemID=41771" target="_blank">is marketing the property</a><a target="_blank" href="https://www.buxton.com.au/"> </a>with price hopes of $350,000 plus, and if it sells for that price, that would secure an investor a gross rental yield of 5.7% at a rent of $350 per week,  well above the gross rental yield for Oakleigh units of 4%, 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 $9,000 and over five years to be $31,000.
The median unit price in Oakleigh rose 16.8% in the past year and 29.4% in the past five years, according to RP Data.
For more information about prices and yields in <a href="/news">Oakleigh, see the RP Data suburb page.</a>
The property will be open for inspection on Saturday, October 27 at noon and will go to auction on Saturday, November 3 at noon.
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Friday form guide: Yields of up to 5.7% in Oakleigh

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Nearly two-thirds of property investors and buyers expect the cash rate to fall over the next six months, according to a survey of more than 800 Property Observer readers.
More than a third (35%) of those surveyed expect one more rate cut over the next six months – the most popular choice among readers of the website with just over a quarter (28%) expecting two rate cuts (50 basis points)  between now and March next year.
However, a significant proportion – roughly in one five – expect no more rate cuts over this period while more than one in ten readers (12%) expect the cash rate to rise by either 25 basis points or 50 basis points in the short term.
The results of the survey suggest there is fair amount of uncertainty among investors and borrowers about the direction of interest rates.
This is also borne out by the response to a refinancing question in the survey with just a quarter of borrowers saying they would consider refinancing over the next year - a lower mortgage rate is a reason why many borrowers would refinance.
The results of the survey come less than a week until the Melbourne Cup Day November RBA cash rate decision, where sentiment has swung from a sure-bet of a rate cut to it now being a close call following a speech by RBA deputy governor Philip Lowe, who said “very low interest rates in many other economies should not be seen as a good thing or something to aspire to”.
<a href="/news">Commonwealth Bank chief economist Michael Blythe</a> interpreted the speech to mean that it was now only a “50-50 call” as to whether the RBA would cut rates.
Similarly, in a recent column for the Australian Financial Review, economist Christopher Joye said November rate cut hopes were dimming <a href="https://www.propertyobserver.com.au/news/fewer-economists-expecting-a-november-cup-day-rba-rate-cut-bloomberg/2012102657470">despite 21 out 28 economists polled by Bloomberg</a> still expecting the RBA to trim further.
Joye highlighted that bank interest rates rather than the target cash rate set by the RBA were having more of an impact on stimulating demand.
“The RBA is belatedly starting to acknowledge that interest rates, as opposed to its target cash rate, are getting quite stimulatory for rate-sensitive sectors,” said Joye.
"Two major banks have now cut the price of their fixed-rate home loan products to 20-plus-year lows. Unsurprisingly, auction clearance rates are reinvigorating," he added.
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A maximum of two more rate cuts to come say uncertain Property Observer readers

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An internal ASIC taskforce will investigate the collapse of Victorian non-bank lender and debenture issuer Banksia as well as consider regulation of the wider Australian unlisted debenture sector.
Banksia Securities collapsed last week placing $660 million in small investor savings at risk. The financier lent on debenture holders' money as mortgages to fund property purchases.
Apart from Banksia, the other notable debenture issuer to collapse recently was <a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/news/provident-capital-s-creditors-vote-to-liquidate/2012102457415" target="_blank">NSW-based non-bank lender Provident Capital,</a> with unsecured creditors voting to liquidate the $130 million sub-prime lender last week.
Debenture issuers unlike banks, building societies and credit unions are not generally regulated by APRA nor are there any prudential standards that apply.
The ASIC taskforce will be led in Melbourne by Commissioner John Price and will make its recommendations to Treasury.
“The <a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/industry-news/victorian-non-bank-lender-banksia-securities-collapses/2012102657456">failure of Banksia</a>, an unlisted debenture company that has operated a mortgage financing business across a large part of regional Victoria, will affect the lives of many everyday Australians. ASIC wants to take a closer look as it is another area of retail-funded shadow banking,” says ASIC chairman Greg Medcraft.
"At the moment there are laws around disclosure and, to a limited extent, the conduct of debenture issuers. But we need to lift the regulatory intensity to make sure that investors are confident and informed.’ "The taskforce will review the extensive work we’ve done to date around the regulation of the unlisted debenture sector. The taskforce’s work may involve making recommendations to Treasury about law reform given we have pushed the existing conduct and disclosure regime to its limit.’ "We will also work closely with Banksia receivers and managers McGrath Nicol to try and get the best result for Banksia investors and retail clients who Banksia provided credit to.
"Importantly, we’ll also continue to remind debenture trustees of their obligations as gatekeepers to protect investors and monitor debenture investments - particularly bad loans and liquidity problems,” says Medcraft. 
Prior to the collapse of Banksia and Provident Capital, unlisted debenture issuers were on ASIC’s radar with the watchdog undertaking “general market reviews” of the sector and conducting “risk based surveillances on a small number of debenture issuers”.
ASIC is not a prudential regulator but will monitor disclosures made by debenture issuers.
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