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.

Joel Robinson

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.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<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.

[smartcode_project:default project_id=95289 project_image_fid=366769]

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.

[smartcode_project:default project_id=95289 project_image_fid=366762]

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

Luxury apartment buyers have long prioritised design, space and finishes, but increasingly they're placing equal importance on something less tangible: how easily they can live without relying on a car.

At <a>Richmond Square</a>, <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> believes that convenience begins beyond the apartment itself, with the mixed-use precinct earning a near-perfect Walk Score of 99.

The development has been planned around the idea that some of the most valuable amenities aren't contained within a building, they're the restaurants, cafés, parks, transport connections and daily conveniences that can all be reached on foot.

Located just behind Swan Street and Church Street, <a href="https://www.apartments.com.au/new-apartments/richmond-square-1-wiltshire-street-richmond-vic-3121">Richmond Square</a> places residents within one of Melbo​u​rne's most established lifestyle precincts while offering a quieter residential setting removed from the busiest thoroughfares. East Richmond Station is moments away, trams run along both Swan and Church Streets, and the MCG, Melb​​ourne Park, Yarra River trails and the CBD are all within walking distance. At the same time, the precinct itself will introduce a curated mix of dining, retail, hospitality and wellness offerings, creating a destination that extends well beyond its residential buildings.

[smartcode_project:default project_id=13181 project_image_fid=348530]

For Fortis, that combination of location and scale was what made the site unique.

"<a href="https://www.apartments.com.au/developments/richmond-vic-3121">Richmond</a> is one of Melb​o​urne's most established and distinctive inner-city neighbourhoods, with a rare combination of dining, culture, recreation, public transport and proximity to the CBD," the developer said.

"The opportunity at Wiltshire Street was particularly compelling because the site sits slightly removed from the activity of Swan and Church Streets while remaining only moments from everything that makes the area desirable."

Rather than developing a standalone apartment building, Fortis consolidated 15 individual properties to create one of the larger development parcels assembled on Mel​b​ourne's city fringe in recent years. That allowed the team to deliver a genuine mixed-use precinct comprising 107 residences across Wiltshire House and Carmine House, premium office space, hospitality venues, retail, wellness offerings and a future 57-room hotel.

"The scale of the site allowed Fortis to think beyond a standalone apartment building," the developer said.

"Richmond Square could be planned as a complete lifestyle precinct, bringing homes, workplaces, dining, retail, hospitality and wellness together around a series of activated public spaces. The aim was to create a destination that feels connected to Richmond rather than separate from it."

[smartcode_project:default project_id=13181 project_image_fid=348533]

The emphasis on walkability has also resonated with buyers.

Interest has been strongest from established owner-occupiers, particularly downsizers from Richmond and Melb​ourne's inner east who want to remain close to familiar restaurants, workplaces, family and social networks while moving into a more secure, lower-maintenance home. The project is also attracting Mornington Peninsula and interstate buyers seeking a Melb​ourne residence they can lock up and leave between visits.

Many are looking for generous living spaces, room to entertain, quality finishes and confidence in the project team, but location remains one of the biggest deciding factors.

"For many buyers, Richmond Square provides a way to simplify the practical side of home ownership without reducing the quality of their lifestyle," the sales team said.

"Location is also a major driver of interest. Buyers can remain connected to the CBD, major sporting events, the arts centres, local restaurants, cafes and bars and their family while living in a private and secure residence that is easy to lock up and leave for weekends or longer periods away."

[smartcode_project:default project_id=13181 project_image_fid=348549]

The residences themselves have been designed with that buyer in mind. Award-winning architecture practice SJB and interior designers Hecker Guthrie have created spacious two and three-bedroom apartments and penthouses that prioritise generous living areas, natural light, bespoke joinery and private terraces. Above, a rooftop sanctuary by Acre includes landscaped lawns, bookable dining rooms, barbecue facilities, wellness spaces and panoramic views across the CBD, the MCG and Port Phillip Bay.

Fortis believes Richmond Square reflects a broader evolution in apartment living, where the surrounding neighbourhood becomes just as important as the residence itself.

"Richmond Square introduces a different proposition: generously proportioned residences within a genuinely mixed-use, hospitality-led destination," the developer said.

"The project's location and Walk Score of 99 further support a lifestyle where residents can complete many everyday journeys without relying on a car."

Fortis has assembled an experienced team that includes <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, <a href="https://www.apartments.com.au/interior-designers/hecker-guthrie">Hecker Guthrie</a>, <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a> and builder <a href="https://www.apartments.com.au/builders/hacer-group">Hacer Group</a>, reflecting the developer's commitment to creating projects with enduring design quality and meaningful connections to the communities in which they sit.&nbsp;

Richmond Square is an expression of that philosophy, bringing together homes, workplaces, hospitality and wellness within one of Me​lb​ourne's most walkable neighbourhoods.&nbsp;

Construction is now almost complete, providing purchasers with growing confidence ahead of its expected September 2026 completion.

[smartcode_project_cta:default project_id=13181]

Walk Score of 99 places Richmond Square at the heart of Melbourne's most connected lifestyle

<h3 data-end="19" data-section-id="1dvgwoe" data-start="0">Summary</h3>

<ul data-end="634" data-start="21">
	<li data-end="170" data-section-id="1o77v31" data-start="21">Walker Corporation has lodged plans for a second major residential development in the Maroochydore City Centre, a 29-storey tower known as Celeste.</li>
	<li data-end="327" data-section-id="1lb0y6t" data-start="171">The Plus Studio-designed proposal at Lot 30 Sunshine Coast Parade would deliver 208 apartments, including four four-bedroom sub-penthouses and penthouses.</li>
	<li data-end="487" data-section-id="za720" data-start="328">The application comes as Walker doubles down on Maroochydore following the strong sales campaign at SOL by Walker, where the first tower is nearing sell-out.</li>
	<li data-end="634" data-section-id="5sovec" data-start="488">Walker is a key partner in the transformation of the Maroochydore City Centre, which is expected to ultimately deliver at least 4,000 new homes.</li>
</ul>

Walker Corporation is doubling down on Maroochydore following the successful sales campaign at its first residential project in the emerging CBD.

The national developer has filed plans for <a href="https://www.apartments.com.au/new-apartments/celeste-30-sunshine-coast-parade-maroochydore-qld-4558">Celeste</a>, a new 29-storey apartment tower at Lot 30 Sunshine Coast Parade, just metres from its under-construction SOL by Walker development.

The plans, prepared by Plus Studio, would see 208 apartments delivered across a 100-metre tower on the 2,376 sqm site, which fronts Sunshine Coast Parade, First Avenue and Future Way within the Maroochydore Priority Development Area.

<img alt="Walker" data-entity-type="file" data-entity-uuid="17038209-6fea-4ed2-855d-fd4df65b3d02" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.16%E2%80%AFAM.png?VersionId=iZD.oVXcQn.aLpUytDAW.CWjxP4puWMy" />

The proposed apartment mix comprises 36 one-bedroom apartments, 48 two-bedroom apartments, 72 two-bedroom apartments with an additional multipurpose space, and 48 three-bedroom apartments.

The upper levels would be capped by two four-bedroom sub-penthouses and two four-bedroom penthouses, taking the total apartment count to 208. The preliminary yield study also provides 262 car spaces, 114 resident bicycle spaces and storage for each apartment.

It represents Walker's next major residential move in the new Maroochydore CBD after the success of SOL by Walker, its $220 million two-tower project nearby.

SOL launched to market in early 2025 and has since seen strong demand, particularly from local owner-occupiers. By February this year, Walker said the first SOL tower was nearing sell-out, with a strong waitlist also emerging for its recently released penthouse collection.

Construction is already underway on SOL, with the first tower expected to be completed in late 2027 and the second to follow in early 2028.

[smartcode_project:default project_id=147777 project_image_fid=319846]

<h2 data-end="2518" data-section-id="1b2dyo5" data-start="2459">Celeste to rise 100 metres over Maroochydore City Centre</h2>

Celeste would take a different form to the twin 19-storey buildings at SOL.

Plus Studio has designed a single 100-metre tower above an activated podium, with the architecture responding to the site's prominent position and three street frontages.

The podium would incorporate commercial tenancies and public art, with sweeping façade elements wrapping the street edges. The scalloped concrete podium has been inspired by the patterns created in sand at low tide, while extensive landscaping would continue vertically through the tower.

The ground level plans show three commercial tenancies addressing Sunshine Coast Parade alongside the residential lobby and landscaped public realm. The podium would then accommodate several levels of car parking before the residential tower rises above.

<img alt="Celeste" data-entity-type="file" data-entity-uuid="121f77b1-71c5-46d7-9b36-0a7d474211ca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.47%E2%80%AFAM.png?VersionId=MGrg9Hb7HgzLN0Lelq_xrXNAruVl77ia" />

Plus Studio said the tower had been designed to maximise views from each apartment, taking in the Maroochy River, Sunshine Coast hinterland, Cotton Tree and Maroochydore Beach and ocean.

Those views have also shaped one of the project's key features, with Walker proposing to put the primary resident amenity on Level 29 rather than lower within the building.

The rooftop would feature a 284.9 sqm pool area with an infinity edge, along with a cold pool, spa, sauna, 93.2 sqm gym, sunset lounge, BBQ and dining areas, pool deck and private dining space. Cabanas and day beds are also shown across the recreation level.

The two penthouses would extend across the upper levels and each feature private terraces and plunge pools.

<h2 data-end="4202" data-section-id="v5f4ix" data-start="4160">Walker's growing Maroochydore footprint</h2>

Celeste further reinforces Walker's commitment to the transformation of Maroochydore City Centre.

Walker is one of the key partners delivering the new CBD alongside Sunshine Coast Council and SunCentral Maroochydore, with the broader 62-hectare Priority Development Area occupying the former Horton Park Golf Course and surrounding land.

The precinct is ultimately expected to accommodate at least 4,000 new homes as Maroochydore evolves into the Sunshine Coast's principal commercial and residential centre.

When SOL secured approval in February 2025, Walker Managing Director and CEO David Gallant described it as the "first of many residential projects" the company planned for the Maroochydore City Centre.

Celeste now provides the clearest indication yet of what comes next.

The site sits immediately within the new CBD, with the design report identifying Sunshine Plaza and surrounding parkland within walking distance and Maroochydore Beach around a five-minute drive away.

For Walker, the timing of the application comes as its first residential bet on the new CBD appears to have been vindicated.

SOL has progressed from planning approval to construction while its first release has approached sell-out, giving Walker confidence to push ahead with another 208 apartments and take its residential pipeline in the Maroochydore City Centre to around 450 dwellings across the two projects.

Celeste remains subject to planning approval, with the architectural material describing the scheme as a preliminary yield study that may change through the assessment process.

Walker doubles down on Maroochydore with 29-storey Celeste apartment tower

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

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?

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Leading into the end of the financial year and the start of 2012-13, most of Australia’s property investors will be visiting their accountants and projecting their cashflow position for the coming year. Every property investor should consider a pay as you go (PAYG) variation. Often overlooked by investors, the PAYG system is a great way to increase fortnightly cashflow throughout the year. 
What could you do with extra cash each fortnight? Maybe save on interest costs by paying a current mortgage off faster? Fast-track savings for the next investment property deposit? Go on a holiday? There are so many possibilities.
 
The PAYG method of tax collection was introduced in July 2000 to replace previous versions of the same system, such as pay as you earn (PAYE). The system gives the option of claiming back tax regularly, rather than in one lump sum at the end of the financial year. A PAYG variation means that the property owner’s employer will reduce the amount of tax withheld to reflect set deductions like interest, rates and depreciation on a rental property. In essence it is a way of decreasing the amount of tax paid by the investor each pay period. 
It is important to note that submitting the PAYG variation does not replace a normal tax return. A tax return still needs to be filed at the end of the year to calculate the actual amount of tax liability. Your PAYG instalments for the year are credited against your assessment. 
A quantity surveyor can provide all current and future depreciation values for investment properties in a detailed tax depreciation report. Obtaining the report immediately after the purchase of a property will allow the maximum return from a PAYG variation, as the precise figures will make the instalments accurate. 
The flexibility provided to the Investor through a PAYG variation, combined with depreciation deductions identified by a quantity surveyor, can be of great help in managing the fortnightly cashflow of an investment property. 
Let’s consider a hypothetical situation:
A typical $400,000 investment property would show an average annual loss (or deduction) of $35,000 and an average income of $20,000 for the first five years. The deductions include costs such as interest on a $350,000 mortgage, management fees, maintenance and property depreciation. The total loss (income minus expenses) will result in a deduction for the owner of $15,000. In the 37% tax bracket the $15,000 deduction could generate a tax return (or credit) of $5,550. Under a PAYG variation, the investment property owner can adjust their fortnightly pay to anticipate this return, adding $213 to their pay packet each fortnight.
Bradley Beer is a director of <a href="https://www.bmtqs.com.au/" target="_blank">BMT Tax Depreciation.</a>
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PAYG tax variation can improve cashflow for property investors

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Mirvac threw in in an extra $10,000 sweetener to attract first-home buyers to some of its offerings before the Victorian government’s first-home bonus expires tomorrow, June 30.
<img src="/images/stories/2012/06/tce1.jpg">
The latest release of homes in the master-planned <a target="_blank" href="https://www.propertyobserver.com.au/land/near-90-of-lots-sold-in-first-release-of-wantirna-south-project-harcrest/2012050154454">Harcrest</a> and Waverley Park developments, called Terrace Homes, come with a $10,000 Visa cash card.
<img src="/images/stories/2012/06/tce3.jpg">
The homes launched in early June, and about 30% are sold so far. Until tomorrow, first-home buyers who buy a property under $600,000 <a href="https://www.propertyobserver.com.au/residential/time-running-out-for-first-home-bonuses-and-stamp-duty-concessions/2012052854863" target="_blank">will be entitled to a $13,000 bonus from the Victorian governmnent. </a>From this Sunday, first-home buyers will be entitled to a 20% reduction in stamp duty on homes under $600,000. For a home costing $600,000, this equates to a stamp duty savings of $6,214, less than half what a first-home buyer would secure from the first-home bonus.
<img src="/images/stories/2012/06/tce5.jpg">
The three-bedroom Terrace Homes start from $505,000 and are aimed at the first-home buyer market.
<img src="/images/stories/2012/06/tce4.jpg">
“We understand many young couples and families are struggling to buy their first home, juggling things like rising utility bills, school fees and food costs. With the first-home owner grant coming to an end on 30 June, the Terrace Homes offer Mirvac’s signature quality finishes at an affordable price point, meaning more families are now able to buy their own home,” says Matthew Wallace, Mirvac CEO of masterplanned communities.
Harcrest is in the outer-Melbourne suburb of Wantirna South, about 30 kilometres east of Melbourne CBD, and Waverley Park is in the south-eastern Melbourne suburb of Mulgrave, about 25 kilometres from the CBD.
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Mirvac’s latest Victorian releases target first-home buyers with $10,000 sweetener in June

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If you’ve been following my blogs you’ll know that I feel confident about the long-term prospects for our property markets. These prospects will be supported by the dual pillars of strong population growth and strong economy powered by a resources boom. 
With the recent <a href="https://www.abs.gov.au/census" target="_blank">release of census data</a> everyone’s talking about what’s happening to our population. 
The fact is that despite strong population growth, we still need to “import” more people to fill the demand for skilled labour. And over the next 15 years, we’ll need to replace close to five million baby boomers that will retire and leave the workforce.
So it’s good news that Australia has emerged as the second most desired location for people to live and work, according to a recent report by recruitment firm Hydrogen Group, titled Global Professionals on the Move 2012.
The report says Australia’s lifestyle and standard of living made it so popular, as well as the career opportunities presented by the mining boom.
Ivan Jackson, the managing director for Hydrogen Group in Australia, was reported in the Herald Sun as saying that there were 404 natural resources projects taking place in Australia worth about $450 billion in total.
“A lack of relevant skilled professionals is one of the main barriers to bringing these projects to fruition,”  Jackson said in the report. “Many oil and gas projects are reaching a point where they will suddenly need several thousand extra workers.
“In the next two to three years recruitment to Australia will be at its highest ever.”
Where else is popular?
The survey, which was conducted by ESCP Europe late last year, found that the USA was the most popular destination to work. This was followed by:
<ul>
<li>· Australia, which tied second with the UK</li>
<li>· Singapore </li>
<li>· Canada </li>
<li>· Switzerland </li>
<li>· Hong Kong and </li>
<li>France
</li>
</ul>
What’s happening to Australia’s population?
Australia’s population is estimated to be about 22,500,000. You can get an updated figure by clicking <a href="https://www.abs.gov.au/ausstats/abs%40.nsf/94713ad445ff1425ca25682000192af2/1647509ef7e25faaca2568a900154b63?OpenDocument" target="_blank">the Australian Bureau of Statistics population clock.</a> 
Even though population growth has eased since peaking back in 2008, when over 380,000 new arrivals called Australia home, Australia’s population increased by around 1.4% last year, which means we’re still growing faster than most developed nations. And a large part of this is because of strong immigration. 
Population and, more importantly, the change in population, are intrinsically linked with housing demand. To put it simply, more people means demand for more homes. And a prosperous nation means we can afford to buy or rent these homes. 
This is all great news for property investors with a long-term perspective.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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Australia’s increasing population great news for property investors

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The world of property ownership is changing. The GFC and its aftermath have caused traditional methods of buying and selling the Australian home to come under scrutiny. The Australian public is proving increasingly receptive to new and less expensive strategies to buy and sell property.

Housing market predictions are subject to much spin doctoring. In an attempt to talk up the market, real estate agents would have us believe that the worst is over and things are on the up. The Australian Bureau of Statistics (ABS) however, tends to be a reliable source of information that often paints a different picture. Its recent figures reveal the following:
<ul>
<li>a 1.1% national fall over the March 2012 quarter</li>
<li>average Australian house prices have now fallen 6.1% from their last peak</li>
</ul>
The fact is that property prices have been falling for 21 months, which is the longest downturn in nominal prices ever recorded by the ABS. 
Why is the market tough at present? 
Tightened lending practices have been bought in by lenders in an economy where their cost of funds is high and the global economy has ongoing challenges. Additionally, the Australian Securities and Investment Commission (ASIC) brought in stringent lending criteria and the new National Consumer Credit Policy (NCCP) is making both brokers and lenders more cautious in their lending practices. These forces have made it difficult for many potential home buyers to borrow and, in turn, made it difficult for property vendors to sell their properties. 
What is the impact of this tough market? 
Borrowers often simply don’t have a 20% deposit (plus stamp duty costs) for a house or unit purchase that may be costing them $400,000-$600,000 at the lower end of the sought-after capital cities markets. The discontinuation of the government grants for stamp duty exemptions for first-home buyers has caused a rapid reduction in the numbers of first-home buyers seeking properties at present.
Increasing numbers of self-employed and contract workers have particular challenges in qualifying for a home loan. Frequently their incomes are not packaged in a way that presents well to credit assessors despite the fact that their actual incomes are robust.
Fewer buyers means fewer properties sold. Many sellers are going through the agonies of waiting months for properties to sell and are being forced to lower their sale price well below expectations. Of course when the property does sell at a lower rate they are still having to pay real estate agents 1.5-2.5% commission on top of the marketing costs.
Investment properties and negative gearing that looked so attractive a few years ago have, for many people, become a painful liability. With little hope of a quick sale in a slow property market and the possibility of negative equity looming, the viability of a negatively geared property often looks questionable.
These are tough real estate market conditions, and those of us wanting to reduce debt and gearing levels by selling a property have often faced difficulties. Those of us wanting to buy into the market or with grown children seeking their first homes have often been challenged by lenders who will not lend money and valuers who seem to routinely undervalue the properties we offer as security for our loans.
Seller or vendor finance?  What is it?
It’s timely that we look at some lateral solutions to these challenges. Chan &amp; Naylor Finance has been discussing these issues with an associate who specialises in vendor finance. We present the benefits and the new thinking around processes involving the use of vendor finance when selling or acquiring property. Strategies such as “rent to buy” are rapidly gaining acceptance and provide an attractive alternative to the traditional approach to buying and selling houses and units.
Here is some information from them on how the process works.
SELLERS There are several reasons why owners may want to sell their property quickly:
<ul>
<li>real estate agent hasn’t found a buyer</li>
<li>cannot keep up with their home loan repayments</li>
<li>have a negatively geared investment property and want to reduce gearing and debt levels</li>
<li>have a property with negative equity</li>
<li>have been retrenched</li>
<li>need to relocate</li>
<li>have a property that requires work or is unattractive</li>
<li>have acquired a deceased estate property that they don’t want to keep</li>
<li>are going through a divorce</li>
</ul>
Example Here is an example to demonstrate how “rent to buy” works for sellers:
John has an investment property he bought for $450,000 two years ago with a $380,000 mortgage. He wants to sell quickly as its market value is dropping below $400,000. The house has failed to sell over a four month period and has cost John $6,000 in marketing and will cost him another $6,000 in real estate agent’s commission when it does sell.
Fast Home Solutions (FHS) agrees to purchase the house at the market value of $400,000. The transaction takes only days. The transaction is similar to buying equipment through Harvey Norman, where you pay for the goods 24 or 36 months later. A deposit is paid to the seller, John, and monthly payments to cover the home loan repayments are made from rentals paid to John by FHS from that point on. John has the security of retaining ownership of the house until final payment is made. After 24 months the balance is then paid to John, the mortgage is replaced and ownership on title is transferred.
 
Benefits for the seller 
<ul>
<li>quick sale in days, not months</li>
<li>seller doesn’t have to pay the $6,000 real estate agent’s commission </li>
<li>seller receives sufficient monthly rental to cover the mortgage payments</li>
<li>receives market value for the house</li>
</ul>
 
BUYERS How does the bendor finance process work for a buyer?  Many home buyers are finding it difficult to achieve home ownership because the banks are making it difficult to qualify for a home loan.
Key reasons for failing to qualify are:
<ul>
<li>newly arrived in Australia</li>
<li>are contracting, self employed or receive cash payments as income</li>
<li>the buyer may have black marks on their credit record</li>
<li>the buyer may not have a stable employment or rental history, or</li>
<li>they simply don’t have a big enough savings for the deposit and costs required – up to 25%  in most cases</li>
</ul>
Example Here is an example to demonstrate how “rent to buy” works:
FHS has purchased a house from a seller for $400,000. They introduce a buyer, Sam. Sam is an IT contractor with $30,000 savings for a deposit and costs of a purchase. This is insufficient to complete the purchase. Additionally Sam doesn’t qualify for a home loan because of an irregular employment record, despite the fact that he is earning $130,000 per year. Sam is presently renting and paying $500 per week. He agrees to buy the house. It takes only days to organise and sign the legal paperwork.
Sam will pay rent plus an additional amount to save for a deposit over a period of around 24 months or less until his employment record is more stable, his rental history is good and he can qualify for the home loan he needs. At Chan &amp; Naylor Finance we can work with FHS and a buyer to prepare them as quickly as possible for the purchase loan that they will need to complete this purchase.
The seller has the security of retaining ownership of the house until final payment is made. The original home loan is then retired and the property title is transferred.
Benefits for the buyer 
<ul>
<li>the buyer can get to own a property without having a full deposit saved or a bank loan</li>
<li>the buyer gets into a property with an agreed price</li>
<li>FHS works with the buyer to establish a savings routine for the home loan deposit</li>
<li>Chan &amp; Naylor Finance helps with advice to ensure the buyer qualifies for his own home loan in the shortest possible time</li>
<li>should the buyer improve the appearance of the house (agreed with owner), any increase in value is retained by the buyer should the property market improve, any increase in the house value is retained by the buyer</li>
</ul>
Jenna Ford is a finance strategist and partner at<a href="https://www.chan-naylor.com.au/finance/" target="_blank"> Chan &amp; Naylor Finance</a>
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Vendor finance provides new approaches to owning or selling a house in a difficult market

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The buyers of units in Gold Coast’s troubled high-rise development Oracle have been knocked back in their second bid to escape contracts.
They had been trying to exit their contracts with South Sky Investments Ltd to buy the units, arguing that the change of letting managers and name of the development constituted a breach of contract.
The appeal by six buyers against a previous ruling in the Supreme Court was dismissed by Court of Appeal Justice Margaret McMurdo.
They originally purchased units in Tower 1 of the Oracle development but before settlement, Peppers Retreat, Resorts and Hotels was given letting rights to the tower and tower was to be renamed Peppers Broadbeach.
Supreme Court Justice John Muir said there was no evidence that the value of an apartment would fluctuate any more if the letting business was conducted by Peppers as opposed to any other manager.
The six buyers argued “the change from ‘The Oracle’ to ‘Peppers Broadbeach’ denotes a change from an independently recognisable (‘branded’) apartment tower to a hotel/resort in a chain of hotel/resorts,” McMurdo wrote in her ruling.
“There was no suggestion in the evidence … that The Oracle was a name which carried with it any particular attraction for purchasers or that the failure to use it exclusively or predominantly to identify Tower 1 would result in any detriment to the appellants.
“The mere fact that a development is given a name and that name is used in promotional and contractual documentation says little, if anything, about whether there is to be found in the contract an implied promise that the name will be used in respect of the completed building.”
Sales in the $700 million development have picked up recently, led by interest from local buyers. Gold Coast residents have bought $20 million worth of the 505 apartments.
The development has been in the hands of receivers KordaMentha since December 2010 after the Nikiforides family's Niecon business ran into trouble when a financier withdrew from the project.
The appeal was dismissed with the appellants paying all costs.
The appellants were John Maclain Gough and Norma Patricia Groves; Derick Brisley and Debbie Brisley; Jeffrey Aiden Wicks and Julie Kathryn Wicks; Patricia Gaye Ryan; Vicki Anne Taylor and Jennifer May Ferguson; and John Clifton Parsons and Dorothy Anne Parsons.
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Buyers of Gold Coast’s Oracle not allowed to escape contracts over name change

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16/187 Cleveland Street, Redfern, NSW, 2016
<img src="/images/stories/2012/06/cleveland.jpg">
Within walking distance of Central Station and Sydney CBD, this recently renovated two-bedroom apartment is currently tenanted at $550 per week, and the tenant is on an expired lease. Listing agent Braden Walters from True Property says the unit could reasonably be expected to fetch $570 a week in rent. The property is also within walking distance of Surry Hills, UTS and the University of Sydney. 
Walters <a target="_blank" href="https://www.trueproperty.com.au/411887/">is marketing the property</a> with price hopes of $500,000 plus, and if it sells for that price that would secure an investor a gross rental yield of 5.7% at its current rent, above the indicative gross rental yield for Redfern units of 4.8%, according to RP Data. At $570 per week it would secure an investor a gross rental yield of $5.9%. 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 $13,000 and over five years to be $43,000.
The median unit price in Redfern rose 1.1% in the past year and 31.9% in the past five years, according to RP Data.
The property will go to auction on Saturday, June 30 at 1pm.
For more information about prices and yields in <a target="_blank" href="/news">Redfern, see the RP Data suburb page.</a>
For another investment prospect open for inspection this weekend, see page 2.
<hr class="system-pagebreak">
3/18 The Crescent, Highett, VIC, 3190
<img width="470" src="/images/stories/2012/06/thecrescent.jpg">
This three-bedroom house in Highett has a long-term tenant paying $400 a week who would be keen to stay on. The property includes a standalone garage and is at the end of a quiet crescent.
Listing agent Christian Hegarty of Buxton <a href="https://www.ljhooker.com.au/F87GQH" target="_blank">is marketing the property </a>with price hopes of $420,000 plus, and if it sells for $420,000 that would secure an investor a gross rental yield of 5%, above the indicative gross rental yield of 3.3% for Highett houses, 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.
The median house price in Highett  fell 6.7% in the past year, according to RP Data.
<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 $11,000 and over five years to be $39,000.
The property will be open for inspection Saturday, June 30 at 12.3opm and will go to auction Saturday, July 14 at 1.30pm.
For more about prices and yields in <a target="_blank" href="/news">Highett, see the RP Data suburb page.</a>
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Friday form guide: Yields of up to 5.9% in Redfern

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After the surge in Australian house prices from the mid-1990s into last decade my view was that while the risks of a sharp fall back in house prices were high, the most likely scenario was an extended period of range bound house prices in real terms. If anything most of the surprise has been on the upside – although not by much in real terms. But despite the fears of many, house prices have not plunged like those in the US and elsewhere, despite a bigger boom.
<img src="/images/stories/2012/06/oliver1.gif">
However, the risks are rising again. Prices have slid 6% since their 2010 high and worries that the GFC is about to finally catch up with Australian housing are on the rise again. Excessive house prices and the excessive level of household debt that has come with it are Australia’s Achilles heel.
Housing is 60% of household wealth and so movements in house prices have a big impact on household financial wellbeing and spending. Housing credit also amounts to 59% of total private credit, so what happens to house prices is critically important to Australian banks. And as we have seen in Ireland and now Spain, what happens to banks can have a big impact on public debt levels.
Still overvalued, but not by as much
The bad news is Australian housing is still way overvalued. The good news is it is less so, with real house prices going nowhere for the last four years:
<ul>
<li>According to the OECD, the ratio of house prices to incomes in Australia is 28% above its long-term average, putting it at the top end of OECD countries, although several other countries are more extreme. The US is now below its long-term average on this measure.</li>
</ul>
<img src="/images/stories/2012/06/oliver2.gif">
<ul>
<li>According to the 2012 Demographia International Housing Affordability Survey, Australian housing trades on a median multiple of house prices to annual household income, which is double that of the US. In Sydney, median house prices are $637,600, compared with $324,800 in Los Angeles. In Perth they are $450,000, compared with $159,500 in Houston, Texas.</li>
<li>However, it is apparent in the next chart that while real house prices are still above their long-term trend, the divergence has narrowed to 13% from a peak of 33%. Real house prices have now fallen back to 2008 levels.</li>
</ul>
<img src="/images/stories/2012/06/oliver3.gif">
<ul>
<li>Another way of looking at property valuations is to look at the ratio of price to rents (sometimes referred to as a PE ratio for housing) and adjust for inflation. On this basis Australian housing is still overvalued relative to its long-term average by 10%, but at least this is down from a peak overvaluation of 38% in 2003.</li>
</ul>
The bottom line is while it may not be as stretched as was the case a few years ago, Australian housing is still overvalued. This combined with still high household debt-to-income ratios leaves Australia vulnerable.
Still undersupplied, but maybe not as much
One of the big supports for the Australian housing market is thought to be a shortage of housing, with the National Housing Supply Council estimating a cumulative shortfall of more than 200,000 dwellings. However, the just released 2011 ABS census wiped almost 300,000 off previous population estimates suggesting that the undersupply may not be as chronic as thought, and along with slowing population growth, has potentially reduced a support for house prices.
Our assessment though is that while the undersupply of housing may not be as severe as thought, low vacancy rates still attest to some undersupply. And Australia has not had anything like the residential property construction boom that the US had last decade, which accentuated the downwards pressure on its house prices. In Australia, housing starts and approvals are at cycle lows.
 
<img src="/images/stories/2012/06/oliver4.gif">
 
<hr class="system-pagebreak">
 
Where to from here?
Right now the Australian residential property market is chronically weak. Finance approvals and new home sales are depressed, first-home buyer activity is subdued, prices are down, listings are up and auction clearance rates have been weak for 18 months. In fact, the failure of timely data like auction clearances to spring back into life despite mortgage rates starting to fall eight months ago is a sign of how weak things are. Since the GFC, Australians have become fearful of taking on more debt and the once strongly held belief that house prices can only go up has long been ditched.
<img src="/images/stories/2012/06/oliver5.gif">
However, while fears are growing of a deep house price slump ahead, the most likely scenario remains a lengthy period of range bound house prices around a flat trend in real terms – just as we have seen nationally over the last few years and in Sydney since 2003. Essentially poor affordability, overvaluation and high household debt levels have put a cap on house prices, whereas undersupply should limit their downside, within which, prices will cycle up and down in lagged response to falls and rises mortgage rates.
Australia did not experience the same deterioration in lending standards that occurred in other countries last decade. Home ownership rates didn’t increase. Most of the increase in mortgage debt went to older and wealthier Australians better able to service loans. And this has all been reflected in still low arrears rates of around 0.6%, and something like 50% of borrowers being ahead on payments.
Nevertheless, there are two key threats. First, a hard landing in China resulting in a collapse in export earnings could drive unemployment sharply higher threatening a sharp rise in delinquencies and forced sales. However, while this risk has increased given the threat from Europe, a sustained hard landing in China seems unlikely given China’s low tolerance for social unrest and falling Chinese inflation.
Second, property investors, who make up a third of housing debt, may lose patience with the lack of capital growth and sell, leading to sharp falls in house prices. However, while it’s hard to see investors piling into residential property now, why would those who are already in suddenly sell now? Real estate investors are usually in there for the long term, made necessary by large transaction costs.
A third threat was coming from interest rates, but with rates falling since last November, this has turned into a positive for the housing market. Affordability is still poor, but at least it’s improving, and our assessment is that a further improvement in affordability lies ahead as interest rates are likely to fall another 0.75% by year end.
Bottom line – in the very short term house prices could fall a bit further as economic uncertainty continues to impact, but providing Europe doesn’t plunge China and the world into a renewed recession, falling mortgage rates are likely to drive a cyclical recovery in the housing market from later this year/early next. However, the most likely profile over the next five to 10 years is for house prices to be stuck in a 10% or so range around a broadly flat trend in real house prices.
This is consistent with the 10- to 20-year pattern of alternating long-term bull and bear phases seen in real Australian house prices since the 1920s. The long-term bull phase of Australian house prices that started in the mid-1990s is now giving way to a long-term bear phase.
Housing as an investment
After allowing for costs, residential property has historically provided a similar return over the long term to shares. This can be seen in the next chart, which shows an estimate of the long-term return from housing, shares, bonds and cash.
<img src="/images/stories/2012/06/oliver6.gif">
Since the 1920s, housing has returned 11.1% pa after allowing for capital growth and rents and shares have returned 11.4% pa after allowing for capital growth and dividends. While housing is less volatile than shares and for many seems safer, it offers a lower level of liquidity and diversification. Once the similar returns of housing and shares are allowed for there is a case for both in investors’ portfolios over the long term. Right now though, housing looks somewhat less attractive continuing to offer much lower yields. The gross rental yield on housing is around 3.7%, compared to yields of 7% on unlisted commercial property, 6% for listed property (or A-REITs) and 6.5% for Australian shares (with franking credits). So for an investor, these other assets represent much better value.
Dr Shane Oliver is head of investment strategy and chief economist at <a target="_blank" href="https://www.ampcapital.com.au/">AMP Capital</a>
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Australia's chronically weak house prices: Is the crash upon us or a long-term flat trend?: Shane Oliver

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In encouraging news for prospective property owners, Aussie housing continues to get cheaper when deflated using disposable incomes. According to Rismark, Australia’s all regions, average dwelling price-to-average disposable household income ratio has fallen to around four times, which is its lowest level since March 2003 (abstracting away from a temporary dip during the GFC).
This analysis is based on both “average” and “median” dwelling prices calculated using all home sales recorded across the country during the March quarter. The quarterly income estimates are extracted from the ABS’s National Accounts data, which publishes a regular “disposable household income” aggregate. To translate this figure into a “per household” unit, Rismark divides through by the number of households each quarter. It is important to remember here that this income estimate reflects that there are multiple income earners per household, and is an “average”, not a “median”, and likely to be biased upwards somewhat due to right-skew in the distribution of incomes.
Click to enlarge
<a href="/images/stories/2012/06/june281.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/06/june281thumb.gif"></a>
The second chart below seeks to remove one of the main “non-cash” items that is captured in the ABS’s disposable household income series: “imputed” owner-occupied rents, or the rents you effectively save by buying a home rather than renting it. As you can see, this boosts the dwelling price-to-income ratio to about four and a half times.
Click to enlarge
<a href="/images/stories/2012/06/june282.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/06/june282thumb.gif"></a>
The exact levels of the price-to-income ratio are relatively trivial: it is the change in the ratio over time that affords much more useful insights.
From the analysis above we can infer several things. First, disposable household incomes in Australia have grown as quickly, if not more quickly, than nominal Australian house prices over the last nine years. Indeed, when we measure changes in house prices more precisely using a “hedonic regression” technique, we arrive at even lower house price inflation numbers. In particular, we find that disposable incomes have actually out-paced house prices by about 15% over this period.
A second learning is that the price-to-income ratio seems to have risen by about one-third from circa three times to four times since 1993. In fact, there was a very distinct regime change in the late 1990s and early 2000s.
There is a sound explanation for this innovation: the long-term cost of mortgage debt in Australia declined by north of 40% between 1980 and 1995, and 1995 and today. This was largely a function of the long-term reduction in realised inflation and measured inflation expectations, which in turn allowed Australia’s central bank, the RBA, to permanently lower its cash rate.
The radical reduction in the day-to-day cost of mortgage debt permitted Australian households to significantly increase the amount of debt they were servicing without a noticeable rise in underlying mortgage default rates. Notwithstanding a peak in headline mortgage rates of around 9.5% in August 2008, system-wide arrears have remained no higher than their last spike in 1994-95.
Here we are able to document another development. The striking rise in Australia’s household debt-to-income ratio from the mid-to-late 1990s onwards ceased altogether in about 2006, a year or two prior to the onset of the GFC. That is, credit growth started tracking income growth, which is what you would expect through the cycle. Households evidently discovered that they had maxed out their debt servicing capability, and rationally stopped leveraging up.
Rismark’s price-to-income ratio analysis does not, of course, account for changes in interest rates. Today mortgage rates are well below their long-term averages. You can get discounted variable rates as low as 5.6% per annum, and three-year fixed-rates at about 5.8% per annum.
Factoring in the change in both incomes and interest rates is important. As one exercise, Rismark took the median Australian dwelling price in 1985 and indexed it up by changes in per household disposable incomes and adjustments in borrowing capacity afforded by changes in mortgage rates (i.e., holding the repayment-to-income ratio constant).
Rismark found that they could explain 93% of the actual increase in median Australian house prices over the 1985 to 2011 period simply referencing these two variables.
Christopher Joye is a leading financial economist and a director of <a target="_blank" href="https://www.ybr.com.au/savings/index.cfm">Yellow Brick Road Funds Management</a> and Rismark. The author may have an economic interest in any of the items discussed in this article. These are the author’s personal views and do not represent the opinions of any other individual or institution. This material is not intended to provide, and should not be relied upon for, investment advice or recommendations.
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chrisjoye-JYhJsTrNRC

Australian housing at its most affordable level for nine years: Christopher Joye

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A free-standing Ritchies IGA in Mount Waverley has sold to an Asian Melbourne-based buyer for nearly $700,000 above the reserve after attracting more than 23 enquiries from offshore Asian buyers prior to its June 27 auction.
Many of the bids included the number 88 – the Asian symbol of good fortune and good luck.
In a room packed with 200 people the 2,500-square-metre supermarket was the subject of a bidding war between four potential buyers in the room - three of whom were Asian - and a Hong Kong investor on the phone.
"Two bidders locked horns over the property" says Graeme Watson, joint selling agent alongside Raoul Holderhead from Burgess Rawson.
The supermarket had a $6.5 million reserve and eventually sold for $7.19 million.
The sale price reflected a yield of 6.51% based on rent of around $477,000 per annum plus GST, with the property leased to long-term tenant Ritchies IGA on a 15-year lease with renewal options to 2034.
It had previously been marketed in Asian publications given its location on the corner of Stephensons Road in Mount Waverley, a suburb where houses are regularly snapped up by Asian buyers looking to live in its sought-after school zone.
Recently Jeremy Desmier, Fletchers real estate director, said suburbs like Balwyn and Glen Waverley were popular among buyers with temporary residency because of their highly rated government schools.
Holderhead tells Property Observer the high yield reflected the fact the shopping centre is a “very rare” asset in the “dead centre of Melbourne” in a fairly affluent suburb with no available land pockets.
“The only competition is a Woolies round the corner,” he says.
Another appealing factor, he says, is the fact that it was only built in 1999 and thus is relatively new.
He says the buyer is willing to pay well above the reserve price despite “turnover being knocked around a bit from the recent supermarket price wars”.
He estimates that a Coles or Woolies in the same location could fetch $10 million or $11 million, with yields of around the 4% mark.
Graeme Watson describes Mount Waverley as a “very established, affluent area with a substantial Asian population".
"The IGA is located in a very comprehensive strip style centre” with none of the 100 shops on the strip vacant.
“All the major banks are on the strip plus there are four pharmacies and four bakeries,” Watson says.
He says the IGA's free-standing nature also made it an attractive asset for investors.
The sale of the IGA suggests Glen Waverley and surrounding south-eastern Melbourne suburbs are becoming something of a commercial as well as residential hotspot.
In March The Palms restaurant at 213-215 Blackburn Road in Mount Waverley, standing on a 1,015-square-metre block, sold for $2.03 million to a private investor on a yield of nearly 7%.
It sold with a 10-year lease to the restaurant, having attracted interest is in the vicinity of $1.9 million to $2 million.
Selling agents were Colliers International's Hamish Burgess and Ben Baines, who said three strong bidders pushed the price well above the reserve.
Burgess said at the time there was a strong demand for development sites in the Melbourne eastern metropolitan market, with developers now favouring medium-density sites in the eastern suburbs.
As an example of the demand for residential property in nearby Glen Waverley he pointed to the recent off-the-plan success of Consolidated Properties $70 million 11 storey Ikon apartment project.
All 116 one- and two-bedroom apartments in the mixed-use development were snapped when it launched last year. The project also includes an office and retail precinct. Construction began in April.
Recent Melbourne suburban shopping centre sales have included a Mentone supermarket anchored by Woolworths, which sold on a yield of close to 8%, and a Coles-anchored Bundoora Square in the north east, which sold on a yield of 7.4%.
Mount Waverley ranked as the 121st most liveable suburb in Melbourne in the 2012 Age liveability survey, with the report noting that neighbouring Clayton ranked 272 with the only sizeable difference between the two is Mount Waverley's good rating on crime.
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lschlesinger-FZcF9M3vE6

Mount Waverley IGA with lucky 88-dollar bids sells for $600,000 above the reserve

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Mining tycoon and eccentric billionaire Clive Palmer has spent $10 million on the former Club Med resort at?Bora Bora in Tahiti, French Polynesia.
The 30-hectare resort has 150 rooms, a 200-seat theatre and a private bay. It comes with four villas and 46 staff units. It was marketed by CBRE Hotels.
Palmer told Fairfax he had no plans to refurbish the resort yet, but that the resort does hold development potential.
He says he bought the property for “relaxation, serenity and because no?one else was going to buy it”.
“I will bring my family here – it’s one of the most beautiful places on Earth.”
He says he will be staying at his resort next month when attends the Asia-Pacific Forum, set up to discuss the promotion of socio-economic development and growth in the Pacific islands.
The purchase is the latest in a series of tourism related acquisitions and plans by Palmer.
Last year he bought the Hyatt Regency at Coolum in the Sunshine Coast.  He has also bought the <a target="_blank" href="https://www.propertyobserver.com.au/leisure/clive-palmer-buys-distressed-golf-courses-at-discount/2011092051616">Robina Woods and The Colonial golf courses at Robina</a> for $7 million and this year his Gold Coast purchases has totalled $6 million.
He told Fairfax the Bora Bora purchase is unlikely to be the last. “I’ll take a look at anything.”
The club was shut down by owners Club Méditerranée SA in 2009.
The resort is set in Faaopore Bay on the south coast of Bora Bora, 250 kilometres from Tahiti. Parisian interior designer, Christian Liaigre worked on the internal furnishings, borrowing themes from the island tattoos.
Celebreties who stayed there include Ringo Starr, Harrison Ford, Meg Ryan, Patrick Swayze, Senator John McCain, Janet Jackson, Pierce Brosnan, Drew Barrymore and Cameron Diaz.
Prices ranged from $200 to $375 per night to stay at the all-inclusive resort.
The rooms are a mix of stand-alone and duplex bungalows and two-storey, motel-style buildings, though the beachfront bungalows were the preferred choice for holiday makers.
CBRE’s marketing in 2009 said the property is a “world-class resort destination offering scenic beauty, political stability and high-quality resort product”.
The deal comes after Palmer’s failed attempt to buy <a target="_blank" href="https://www.propertyobserver.com.au/leisure/chinese-mining-tycoon-beats-clive-palmer-to-acquire-lindeman-island-with-plans-to-redevelop/2012042554429">the Club Med in Lindeman Island in the Whitsundays,</a> when he was outbid by a Chinese mining tycoon.
Photograph by Thomas Wasserberg, courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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