Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

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?

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

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The property investment industry is growing rapidly, with well in excess of $500 billion invested by small investors in property in this country every year. To think that this industry operates completely without any kind of governance is beyond belief.
You can start helping to change this by writing to <a href="mailto:mbill.shorten@treasury.gov.au">bill.shorten@treasury.gov.au</a> and asking him why he refuses to do anything about regulation for the industry. When we had a Liberal government, I had made some great progress with Treasury in not only designing potential regulation, but having the government commit to implementing this regulation. The minister of the day, Nick Sherry, had made a public commitment to this pathway on one of my shows, and he had guaranteed me that the property industry would be regulated as part of ‘tranche two’ of the Credit Reform. The green paper referenced the property investment advice industry, and also committed to including it in the Credit Reform Legislation.
Once the white paper was in existence and accepted by parliament, this commitment had curiously disappeared from the agenda. Next, we saw a change of government and suddenly any intention to even consider such regulation disappeared. I have continuously tried to gain an audience with Financial Services Minister Bill Shorten to outline the problem, and he steadfastly refuses to acknowledge my existence, let alone the issue itself.
To give you an idea of the extent of the issue, here are some facts:
The property investment industry is completely without regulation. This means that anyone can wake up one day, decide he wants to be a property investment adviser, and set up shop in his own business, or working for someone else, giving you advice about property investing. There is no licence required, no education or training needed, and no one is supervising the activities of these people to ensure that you are being protected.
Some of these people provide advice only, while others, in an outrageous conflict of interest, actually sell you the property, too. In some cases, the company may have a real estate licence, however these licences simply provide ground rules about how property is sold and still leaves the entire issue of the advice surrounding these sales without governance. I recently reviewed the website of one of these spruikers who has a real estate licence, and the claim was that, while this person “technically” acts for the vendor according to the provisions of his or her licence, in fact the spruiker acts for you, the buyer, by giving you advice. If that’s not a conflict of interest, and most likely also a breach of their real estate licence, then I am not sure what is.
ASIC provides no supervision, and the Australian Financial Services reform does not recognise the activities of these property investment advice companies because a property investment is not recognised as a financial instrument. ASIC makes claims that it has the issue covered, since new rules allow the organisation to investigate “spruikers” who cross the line into actual financial advice, but this is a weak argument provided by a government department that simply cannot bear the thought of adding responsibility to an already stretched agenda. In truth, spruikers who do cross this line make up less than 1% of the players in the property investment advice industry, leaving 99% of them free to operate completely without rules, regulation or any kind of supervision whatsoever. 
If that frightens you, then consider this: property investment advisers also operate without any kind of professional indemnity insurance to cover their “advising” activities. Those with policies have significant exclusions, which limit their cover to activities which fall under legislative governance, such as finance broking. The reason for this is that the underwriters refuse to provide coverage for activities that are unregulated, and rightly so. What this means for you is that, if you suffer any kind of financial loss as a result of poor property investing advice, you have no capacity to recover that financial loss, as the adviser most likely won’t have the funds to compensate you!
And so, in case you’re not seeing the full picture here, this is how it looks:
If you are seeking assistance or advice from a “professional” property investment advice company or person to help you make what is most likely going to be the largest investment you will ever make, the company you approach will have no licence, most likely no education or training, and is not supervised by any government department or licensing body. They are not required to disclose to you any commissions they may receive from any sales made to you (and these can be as high as $40,000 per property sold), they can freely give you advice to invest or disinvest in any property or product that suits them, and, if it all goes pear- shaped, you have absolutely no regulatory framework under which to seek recompense, and no likelihood of recovering your losses from PI insurance.
If this alarms you as much as it does me, let’s get together and take action! We need a groundswell of support. We need letters to the government and support from the media. We need outrage by the very people who are not being protected to force the government into taking real action which once and for all creates the regulation within which these companies and advisers must operate. And, we need it now!
(note: some advisers have taken the trouble to become members of the not-for-profit industry association, PIPA and complete a diploma-level course. For now you can go a small way toward protecting yourself by asking questions about those you go to for assistance, and making sure that at the very least they are members of an industry association AND have completed adequate educational courses.)
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News. She is the founder of <a target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny </a>
 
 
 
 
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mlomas-KC9MUPZ6Ca

Alarmingly, there is no governance whatsoever surrounding the property investment industry

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The value of lenders mortgage insurance claims have declined since the GFC, according to Credit Suisse.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/csmay232.gif" rel="shadowbox"><img src="/images/stories/csmay232thumb.gif"></a>
Source: Credit Suisse
 
 
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cknowlton-QnEa6ntUYP

Australian mortgage insurance claims declining: Credit Suisse

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Nearly 18,000 borrowers refinanced their home loans in March, the biggest number of refinanced home loans in one month since April 2008, according to ABS figures.
In addition, there was a 19% increase in refinanced home loans for the 12 months to March 2012 compared withfsd the previous 12 months, according to further calculations by mortgage comparison website Ratecity.com.au.
On a state-by-state level, NSW borrowers were the most active switchers in March, with 41% of all loans comprising borrowers ditching their lenders for better deals. <state><place>Victoria</place></state> followed, with 38% of all home loans financed in the state refinancers.
Before the increase in refinancing, ANZ increased its standard variable rate by 0.06 percentage points on February 10 while lenders continued to decrease their fixed-rate mortgages over the month, including CUA, which cut its three-year fixed rate by 39 basis points on February 13.
May 2012 figures released by mortgage broker AFG also revealed an increase in refinancing activity, with borrowers showing a greater willingness to move away from the major banks and refinance with a non-major lender.
Non-major lenders grew their share of the mortgages refinanced by AFG brokers from 24% to 26% over the three months to May 2012, compared with 21% for the last six months of 2011.
Non-major lenders with greatest market share were Suncorp (3.6%), AMP (3.5%) <place>Macquarie</place> (2.5%) and ING Direct (2.1%).
Among the smaller lenders to record an increase in refinancing activity has been the Greater Building Society, which says it is continuing to experience an increase in people wanting to switch from the major banks and other financial institutions.
Product manager David Bryde says that to the end of April 2012, the number of customers refinancing to The Greater is up 24.6% on the same period last year following previous apathy and misinformation about switching lenders.
“People are starting to vote with their feet as they realise that there are large, safe, well-run alternatives to the major banks offering more competitive rates, lower fees and better service,” Bryde says. 
“People can save thousands, sometimes tens of thousands of dollars by switching. 
“Switching is easier than people think and in many cases, people don’t even have to talk to their existing lender,” he says.
 
RateCity spokeswoman Michelle Hutchison says the number of borrowers who switch lenders is likely to increase in the coming months
“While there’s still a lot of work to do to make switching easier, it’s clear that Australian borrowers are far more comfortable switching their home loan than ever before, and the ban on exit fees for new variable rate loans since July 1, 2011 must be playing a part,” she says.
“We believe we’re only beginning to see the very start of the impact of these changes and it’s likely that more borrowers will switch lenders more often than in the past.”
{module Have you changed lenders in the last six years?}
{module What do you intend to do given the current interest rate fluctuations?}
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lschlesinger-FZcF9M3vE6

Mortgage refinancing at four-year high as non-major bank lenders pick up market share: ABS

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Australian houses are not overvalued, according to a report into the current state of housing and mortgages by investment bank Credit Suisse.
The report questions the likelihood of a house price crash and says households can manage their debt obligations. 
Australian houses appear to be fully priced according to the authors of the report, analysts Jarrod Martin and James Ellis along with Omkar Joshi.
They base this view “on a range of usual metrics for assessing house price levels”, including house prices to income, house prices to rents, house prices to GDP, per capita value of the housing stock to household income
The report notes that housing affordability has deteriorated.
However it questions the argument that an improvement in the ratio of income to house prices will be achieved through a “a sharp and disorderly retracement of house prices” (a house price crash) rather than a “slow re-balancing of this ratio through real house price erosion or flat nominal house prices combined with on-going growth in household income”.
Click to enlarge
<a href="/images/stories/csmay234.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/csmay234thumb.gif"></a>
Source: Credit Suisse
According to Credit Suisse, Australian household leverage is relatively high in both an Australian historical and in an international context – above that of both the <country-region>US</country-region> and <country-region><place>UK</place></country-region>.
Click to enlarge
<a href="/images/stories/csmay235.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/csmay235thumb.gif"></a>
Source: Credit Suisse
However, it notes that as the RBA has previously stated household debt in <country-region><place>Australia</place></country-region> is mainly held by higher income households, with households in the top two income quintiles holding almost three-quarters of household debt. 
While the report says there is a risk that the relative resilience of Australian house prices will not be sustained in the future, it says there are “numerous arguments” cited as to why Australian house prices “are (and presumably should be) relatively high by international standards”. 
Some of these include: 
<ul>
<li>Australia is a highly urban society by international standards with a cultural preference towards living close to central business districts / coastal cities (limiting desirable land area in an otherwise large land mass country) such that Australia’s capital city house prices to income ratio is comparable with coastal city metrics globally; </li>
</ul>
<ul>
<li>Australian housing stock is relatively of high quality in nature and both relatively large and land-intensive by international standards; </li>
</ul>
<ul>
<li>the supply of housing stock in <country-region><place>Australia</place></country-region> has been excessively constrained in long-term by land zoning and development restrictions (concurrently in some recent years by accelerating population growth); and </li>
</ul>
<ul>
<li>the Australian taxation system is unusually generous with respect to residential dwelling investment, reinforced by a cultural personal investment bias towards the residential real estate.</li>
</ul>
Due to Australian banks being so heavily exposed to the residential lending market (<a href="https://mail.privatemedia.com.au/exchange/cknowlton/Inbox/wednesday%20flicker%205%20http:_xF8FF__xF8FF_www.mcgrath.com.au_xF8FF_buy_xF8FF_house-mermaid-beach-qld-4218_xF8FF_152394.EML?Cmd=openhttps://www.propertyobserver.com.au/mortgages/dark-cloud-risk-for">59% of bank loans are residential mortgages</a>), Credit Suisse says there is a strong connection between house prices and financial stability, noting “house prices have the scope to create financial system instability, and financial crises have scope to exacerbate house price declines”. 
But it says factors in favour of a stable mortgage and housing market include the overall strength of the macro economy and an apparently “increased consideration of house price inflation in RBA monetary policy deliberations in the wake of the financial crisis” and the extent to which “mortgage interest rate changes are being undertaken outside of cash rate changes”. 
It also notes the stable rates of home ownership in recent years in <country-region>Australia</country-region> compared with rising home ownership rate in the <country-region><place>US</place></country-region>, “widely seen as a factor exacerbating the subsequent delinquencies crisis”.
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Australian housing market crash unlikely: Credit Suisse

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Mirvac's 46-townhouse development Laureate in Albert Park, set in gardens designed by <a target="_blank" href="https://www.e-ga.com.au/">Eckersley Garden Architecture</a>, has won the HIA's 2012 townhouse/villa development of the year. 
<img src="/images/stories/laureate1.jpg">
The $90 million project was completed in early 2011 on its 8,144-square-metre site opposite the <place><placename>Gasworks</placename><placename>Arts</placename><placetype>Park</placetype></place>. 
They were marketed as a modern twist on the Victorian terrace. 
Set among textured and patterned plants, vines and trees, the site is bordered by Pickles, Graham, Foot and Dank Streets. 
<img src="/images/stories/laureate2.jpg">
Spanning three and four levels, the townhouses ranged in size from 164 square metres internal space to 320 square metres plus. 
Some 85% of the townhouses were sold off the plan. 
Mirvac is currently advertising its last townhouse priced at $1,799,000. 
There are other on sale listings including one at $1,899,000 for a four-bedroom townhouse through RT Edgar.
 
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jchancellor-FAypfDUnLy

Mirvac’s Albert Park townhouse development Laureate wins laurels at HIA awards

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Strong leasing activity and an increase in speculative development looks set to drive heightened investment demand for industrial property in <place><city>Melbourne</city></place>. 
Colliers International’s Melbourne Industrial Research &amp; Forecast Report for H1 2012 has found the shortage of prime-grade stock we have observed in recent times is expected to continue over the next 12 months and result in increased activity in the middle-tier market. 
The combination of high tenant demand for prime-grade stock and limited speculative development in the current market is likely to result in an increased number of tenants seeking second-grade stock.
The majority of developers are now awaiting pre-commitments before starting new industrial projects in <city><place>Melbourne</place></city>, while a number of speculative developments in the west and south-east markets have been fully leased prior to completion. 
We expect this to lead to more speculative development occurring in 2012, although access to finance still remains an issue for many developers. 
As a result, limited new supply of premium stock is expected over the short to medium term. and we expect purchasers will turn their attention to the middle tier of the market, where the greatest opportunities will exist in the next 12 months. 
As demonstrated in the report, we believe the <city><place>Melbourne</place></city> industrial investment sales market is set for increased demand from investors over the remainder of 2012. 
The lack of stock on the market currently available for sale is likely to encourage capital values to increase over the second half of the year, and prime grade average yields are set to compress further. 
From a leasing perspective, the Melbourne industrial market remains robust, with more than 370,000 square metres leased between October 2011 and March 2012, an increase of almost 100% from the previous six months. 
<city><place>Melbourne</place></city> is expected to continue to have a shortage of prime-grade stock over 3,000 square metres due to strong tenant demand and limited new construction activity. 
Geographically, <city>Melbourne</city>’s West remains the best-performing market in <state><place>Victoria</place></state>, accounting for 52 per cent of the total area leased. 
Most demand for space is coming from tenants looking for warehousing and distribution centres, with the growth of online retailing also a key driver. 
Many tenants are now being forced to take up existing secondary grade stock as a result of prime-grade shortages. 
Developers are responding to the situation and, as a result, we are starting to see higher levels of speculative development. 
As indicated in our report, of the total 106,000 square metres of industrial stock currently under construction in <state><place>Victoria</place></state>, 60% is speculative. 
Net face rents have remained stable across all markets over the past six months, however, the shortage of available stock has resulted in a decline of prime grade incentives in the south-east, east and north. 
Increasing pre-lease rents have also become apparent from the stock shortage. 
A creeping increase in net face rents is possible over the next 12 months as a direct result of the current stock shortage. 
On the investment front, total activity has slowed significantly over the past six months. There were eight transactions, totalling $145 million, representing a decline in total volume of almost 50% from the previous six-month period. 
Institutions are now becoming more active in the Melbourne industrial market, with GPT’s recent purchase of Citiport Business Park in Port Melbourne from Salta Properties for $61million accounting for the majority of total volume. 
Capital values and yields have also remained stable over the last six months.
Tony Iuliano is national director of industrial for <a href="https://www.colliers.com.au/Find-a-location/Victoria.aspx" target="_blank">Colliers International in Victoria</a>.
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Strong investor demand for Melbourne industrial property in next year

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Tax time can cause great anxiety for investors who unwittingly make claims they are not entitled to, getting themselves into deep water with the Tax Office. Here are some helpful hints to assist property investors to capitalise on their allowable deductions and avoid unwanted interest from the tax man.
Property is an increasingly popular form of wealth creation for many Australians, but often they lack the accounting and financial knowledge to know what it is they are entitled to claim, or how much they can claim and what is not an accepted tax deduction.
The ATO monitors property investor claims and often issue warnings or notices of the types of common mistakes made, so investors should at least visit the ATO website.
Reports say more than 1.5 million people claim in excess of $24 billion in rental deductions in a year, which explains the ATO’s vested interest and continued focus on monitoring rental property deductions.
The most common mistakes made by property investors include making claims against:
<ul>
<li>Immediate initial repairs or capital improvements including structural repairs and improvements which are seen more as capital works deductions such as remodeling a bathroom or building a pergola</li>
<li>The portion of a loan that is used for both investing and private purposes</li>
<li>Inspection of a rental property while on holiday in the area, which is the real purpose, and the inspection only incidental</li>
<li>Expenses relating to the private use of a property such as a holiday home</li>
<li>A property that is not genuinely available for rent including periods while it is undergoing construction or renovation</li>
<li>Borrowing expenses in the first year rather than being spread out over the term of the loan or five years, whichever is the lesser of the two.</li>
</ul>
Investors should seek the services of a qualified professional such as an accountant or financial advisor when looking at preparing their tax return.
Everyone’s personal financial circumstances are different and the tax implications of the individual property investment strategy may differ, so it is important to discuss it with someone who has the necessary expertise and experience.
It is also a good idea to look at using the services of a respected and qualified property manager who will act on your behalf with your best interests at heart.
A property manager will have the requisite forms, processes and systems to effectively manage a property as well as maintain and keep appropriate records for tax and accounting purposes.
Proper record keeping and tracking is more than half way to ensuring the investment property yields the optimal return.
Ray Ellis is CEO of <a target="_blank" href="https://www.firstnationalnews.com">First National Real Estate</a>. 
 
 
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Top tax slips property investors must avoid

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The striking Wharf Road, Gladesville residence Avondale has sold for $5,325,000, the highest sale of the week.
The 2,141-square metre estate was sold under the hammer by auctioneer Christopher Mourd of Cooley Auctions on Saturday, May 19. There were seven registered bidders, with three putting in bids. Savills listing agents Adam Ross and Shayne Harris had been seeking more than $4.8 million.
The house dates back to 1888, with renovations undertaken in 1993 and 2009. It’s an ornate Victorian residence built by solicitor Edwin Sandys Lumsdaine, the husband of Banjo Paterson's sister, Rose Florence Paterson. A son of Reverend William Lumsdaine, he was also a religious, having a small chapel built within the house, which is now used as a study. The grounds have the original stables, which have been converted to a self-contained guest house overlooking a 16-metre swimming pool. There's also an 1830s sandstone cottage, Rockend, which was the home of Banjo Paterson's grandmother and as a young man, the iconic bush poet lived there with her.
With ornate original details throughout, the two-storey residence has elegant formal sitting and dining rooms, five bedrooms, three bathrooms and a modern marble kitchen.
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The week’s second most expensive sale was a five-bedroom Fitzroy North house (pictured above), sold by Nelson Alexander Real Estate for $4.2 million. Its auction was extremely heated, according Mark Armstrong of Property Tycoon.
“A huge crowd of around 300 people looked on as two punters with deep pockets went toe to toe for almost half an hour and placing around 200 bids,” Armstrong says.
 
1. 76 Wharf Road, Gladesville, NSW, 2111, five-bedroom house sold at auction on May 19 by Savills NSW for $5,325,000
2. 39 Alfred Crescent, Fitzroy North, VIC, 3068, five-bedroom house, sold at auction on May 19 by Nelson Alexander Real Estate Fitzroy for $4.2 million
3. 5 Adaluma Avenue, Buddina, Queensland, 4575, five-bedroom house, sold at auction on May 17 by Elite Lifestyle Properties for $3,112,500
4. 9 Beauchamp Avenue, Chatswood, NSW, 2067, five-bedroom house, sold before auction on May 19 by Century 21 Cordeau Marshall Lindfield for $2.7 million
5. 6 Rivers Street, Bellevue Hill, NSW, 2023, three-bedroom house, sold at auction on May 15 by Laing + Simmons Double Bay for $2.6 million
6. 1 Ryries Parade, Cremorne, NSW, 2090, four-bedroom house, sold at auction on May 19 by McGrath Estate Agents for $2.6 million
7. 39 Bay Street, Brighton, VIC, 3186, five-bedroom house, sold before auction on May 19 by Hodges Brighton for $2.4 million
8. 31 Rubens Grove, Canterbury, VIC, 3126, six-bedroom house, sold at auction on May 19 by Marshall White Albert Park/Armadale/Brighton/Hawthorn for $2.3 million
9. 15 Evans Road, Kew, VIC, 3101, five-bedroom house, sold at auction on May 19 by Jellis Craig Real Estate Hawthorn for $2.27 million
10. 32 Duke Street, Bulimba, Queensland, 4171, four-bedroom house, sold at auction on May 17 by Place Estate Agents for $2.12 million
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Gladesville residence Avondale leads week’s top sales: RP Data

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The GFC forced Australia’s major banks – among the most heavily exposed in the world to the local residential property market – to raise their mortgage underwriting standards and helped avoid a mortgage arrears crisis, according to a new report by investment bank Credit Suisse.
However, in the current slow housing credit market (the value of owner-occupier loans fell 0.3% in March) Credit Suisse warns there could be the “commencement of the next cycle of degradation of mortgage credit underwriting standards”.
“Our industry liaison suggests that this process is starting to occur (albeit has not slackened to the extent seen in the pre-crisis era), with banks more selectively retaining mortgage credit risk that previously would have been transferred to the lenders mortgage insurance (LMI) industry,” says Credit Suisse.
The report also notes that lenders resumed offering 95% LVR mortgages in 2011, with loans with LVRs of more than 90% rising from a trough of 11.5% in the June 2010 quarter to 17% in the December 2011 quarter.
The present decline in mortgage standards, Credit Suisse analysts say, is being driven by “challenges of achieving mortgage balance growth and revenue growth in a subdued macro environment”.
The Credit Suisse report shows that Australian lending institutions are among the most heavily exposed to the residential property market, with 59% of their loans offered to this sector, compared with 38% in the US, 33% in Canada and 13% in the UK.
Within Australia, the Westpac group has the most exposure to the residential property market, with 67% of its lending in the form of home loans.
The Commonwealth Bank has a 65% home loans exposure, followed by ANZ (53%) and NAB (52%).
Released at a time when APRA figures show the stock of bank-problem mortgage assets is now declining, the report says the GFC “reset the clock” in 2008 and 2009 and was a key reason why the 2009 mortgage vintage proved so resilient despite it having many unfavourable credit characteristics, such as “first-home owners that had received the first-home owner grant boost, written at or near-peak house price levels in many markets, and written at or near trough mortgage interest rates”.
Report authors and Credit Suisse analysts Jarrod Martin and James Ellis contend that “a potential mortgage arrears crisis was probably averted in Australia by the onset of the global financial crisis from mid-2007”.
They argue that a mortgage arrears crisis is founded upon “substantial, enduring and widespread degradation of origination underwriting standards, “not merely upon (say) overpriced housing or highly indebted households”.
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“Conversely, had the global financial crisis not occurred, the alternative future might have been that ongoing growth and development of higher-risk mortgage products such as low-doc mortgages might have degraded Australian mortgage underwriting standards to a sufficient degree, across a wide enough range of mortgage originators and for a long enough period of time — that a material portion of the system’s mortgage stock would have become tainted with low credit-quality mortgages that had high probability of loss given default characteristics,” the report says.
Putting it another way, Credit Suisse argues that the “silver lining of the GFC for Australian banks” was that it brought to a halt lending by “highest risk mortgage providers (many non-banks and some regional banks)” and prevented the “meaningful spill-over of lax mortgage underwriting standards over to the major banks”.
“In this regard, we note that, even Westpac’s mid-2000s staunch resistance to offering low-doc mortgages saw a capitulation when Westpac’s on-going mortgage market share losses coincided in a de-rating of Westpac’s stock multiple.”
Westpac ramped up its play in the riskier low-doc loan market in 2005 in an effort to capture market share as lending slowed, prompting the RBA to warn that an increase in these riskier loans was a potential threat to the banking system.
 
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Dark cloud risk for big four banks after GFC mortgage crisis escape: Credit Suisse

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Developers David Devine and Ken Woodley have walked away from buying the Couran Cove resort on South Stradbroke Island.
Devine and Woodley, who established Metro Property Group after selling out of Devine Limited, confirmed to the Gold Coast Bulletin they had backed out of the conditional contract.
"After undertaking thorough due diligence on the deal, we have elected not to proceed," Devine said.
News Ltd papers have previously speculated the billionaire American vendor was prepared to sell the resort for less than $20 million.
Ferrier Hodgson will now try to negotiate a new sale for Couran Cove, which closed in June last year after being placed into voluntary liquidation when American philanthropist Chuck Feeney decided to withdraw his financial support for the property.
Records showed Feeney poured $283 million into Couran Cove from 1998 until last year.
Feeney controls the property through InterPacific Group, which is owned by his Bermuda-based charity Atlantic Philanthropies.
The freehold assets of Couran Cove include 158 units and a waterfront building that has a reception area, cafes, conference facilities and function rooms, plus a beachfront surf club that incorporates restaurant function rooms and sports facilities.
The main leasehold assets are 102 marina berths and jetties.
It’s been mooted any new owner may also be able to implement the plans for a further 198 strata-titled cabins, 14 units and a yacht club, which were part of the original proposal.
 
 
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