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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Veteran retail property and business professional Duncan Johnston is taking a truly counter-intuitive approach to investment opportunities in shopping strips. There are “marvellous buying opportunities” for cashed-up investors such as self-managed super funds, he says. 
Johnston and his associates manage many retail and commercial properties on behalf of more than 150 self-managed super funds (SMSFs) administered by Accounting Solutions Victoria and its financial planning arm, Financial Solutions Victoria. 
In another role, <city>Johnston</city> is co-owner of a handful of Collins franchises including the Hill of Content bookshops in Melbourne and Sydney. 
As a tenant, he is making the most of the difficult retail market by negotiating cut-price rents for Collins franchisees. And as an investor, he is buying strip shops on the cheap for his SMSF clients. 
When Johnston heard that 38 shops on Oxford and William streets in Sydney’s Paddington were reportedly vacant, his reaction was blunt: “It’s a real opportunity for investors.”  
 
Often a number of his SMSF clients join together to buy more expensive properties. “We are looking at properties costing $1 million to $5 million.” 
Johnston says the keys to successful buying in this market include paying the right price for quality property, carefully choosing tenants that will draw in customers, and then looking after those tenants in such ways as offering rent holidays if trading gets tough. 
The selection of tenants is all-important. <city>Johnston</city> favours what he calls lifestyle tenants that include home furnishings, food supply, entertainment, books and restaurants. 
A series of interviews by Property Observer confirm that property analysts and investors have a mixed and somewhat cautious outlook for retail property as an investment. 
Some analysts are convinced that the gloom-and-doom commentary directed at retail is overstated, pointing to some better-performing retail sectors and shopping areas as well as the expectations that retail spending will eventually recover. 
And some property specialists believe that investors who select their properties and tenants with extreme care can pick up bargains in this market – provided the purchase price allows for the possibility of more bad news. 
Here’s what five retail experts are saying: 
Property hunt
Johnston recently bid $2.6 million for a strip shop in Victoria’s Werribee on behalf of eight SMSFs who would have each put in $325,000. Although he decided not to match the winning bid of $2.85 million, the shop typifies the property that SMSFs are hunting for. 
The Werribee shop, which is located on the city’s main thoroughfare, is occupied by an IGA franchisee on a 10-year lease. And <city>Johnston</city> knows the shopping strip well because SMSF clients own a Centrelink shop a block away. 
IGA-type grocery businesses really appeal to <city>Johnston</city> as tenants for his SMSF landlords. He believes that the “IGAs of this world have really come into their own” as shopping habits change. 
“The average spend in a supermarket has gone from $70 or $80 down to $20 or $30 because more people are shopping once a day or every two days. And they like to buy near where they live or work.” 
For instance, <city>Johnston</city> describes the inner-<city>Sydney</city> suburb of Balmain – where he co-owns the Hill of Content bookshop – as a “classic” example of a suburb that could accommodate a small IGA supermarket in addition to the existing Woolworths. 
Although Johnston says that despite retail’s current woes, “it will be always there for the long term”. 
Johnston adds that while retail landlords might have received low yields in the past and relied on capital growth, yields have now reached 7% or 8%. “And while landlords may not be getting capital growth in the short term, we can see it expanding in the long term.” 
 
<hr class="system-pagebreak">
 
Pessimism ‘overstated’
Leigh Warner, director for research and consulting with Jones Lang LaSalle, says that while retailers and landlords face challenges, the pessimism in some circumstances is overstated. 
“Retail turnover will recover,” Warner emphasises. While he believes that the aggressive credit growth experienced between 1997 and 2007 will not return, growth in population and real wages will justify an annual increase of about 5% in turnover over the next decade. 
“Spending growth is also likely to get a slight boost at some stage over the next few years as a cyclical recover in confidence sees the household savings rate fall from around 10% of household incomes to settle around 7%,” he adds. 
Although Jones Lang LaSalle’s research doesn’t include shopping strips – it tracks sales costing $5 million plus – Warner says his comments on the outlook for retail cover retail in general, not solely shopping centres. 
Warner believes that the retail yield spread – the difference between the retail yields and the 10-year bond rate – appears to suggest there is “pretty attractive buying” for investors. 
He says the yield spread for neighbourhood centres, for instance, is the biggest he has seen since the downturn of the early nineties. Jones Lang LaSalle calculates that the yield gap for neighbour centres stood at 685 basis points in March 2012 compared to 412 basis points at the market peak in late 2007. 
“It is very hard to finance a property that is regarded as secondary,” Warner points out. But for investors that could get finance, “we think in some instances, there will be some good returns made”. 
Warner says risk-averse investors have largely focused on dominant regional centres and quality CBD properties, leaving a potential opening for investors in secondary properties including neighbourhood centres. 
Interestingly, Warner says that astute buyers may find value in shops that have had little spent on their maintenance and improvement. “There is a very shallow buyer pool for these investments.” 
Warner adds that active investors and those taking professional advice may do well by bringing the shops up to a satisfactory standard. He emphasises, however, that investors should be confident about the property’s potential value and the suitability of an area’s demographics. 
High risk in hard-hit areas
Managing director of SQM Research Louis Christopher warns that any investor buying a strip shop in, say, <street>Oxford Street</street>, Paddington or in nearby <place><placename>Double</placename><placetype>Bay</placetype></place> would be taking a big bet. “There is considerable downside risk.” 
Christopher believes there are safer options in retail areas that aren’t as devastated. 
“But it’s all about price,” he says. “If you are going to buy into market right now, make sure the price you pay reflects what’s happening in the markets and the potential for further bad news and downgrades. 
“Tenants in <street>Oxford Street</street>, Paddington, are demanding substantial cuts. I am hearing demands for 30-40% cuts. The price needs to reflect that.” 
Christopher argues that <street>Oxford Street</street> can no longer blame its woes on Westfield Bondi Junction. He points to retail in another inner-eastern suburb, Potts Point which is potentially affected by <city>Westfield</city> yet is doing well. 
“<street>Oxford Street</street> is a physical mess; it’s difficult to park and hard for pedestrians to cross.” Further, many of the shops were upmarket and discretionary. “And rents are too high.” 
Nevertheless, Christopher says a “contrarian view” would be to buy a shop in <street>Oxford Street</street>. “It could be the point to re-enter retail. Do your homework. Understand the demographics, understand where rents are, and what turnovers are really like. And snoop on the ground, speaking to shopkeepers.” 
Well-located shops
Ross Horsley, research analyst for LandMark White, says that although retail spending is down, well-located properties will still earn satisfactory returns for landlords. 
And with yields rising as values fall, Horsley says there could be good buying opportunities including along shopping strips. 
Horsley suspects that a large number of for-rent and for-sale signs in a shopping strip may point to a chance for an investor to make an offer that may just be accepted. 
While Horsley doesn’t envisage that <street>Oxford Street</street> in Paddington will return to its peak from a retail perspective, he agrees the area is likely to improve when shoppers begin to spend again. 
Horsley says that despite weak consumer spending and high savings rates, well-located small shops, particularly in central business districts remain popular with SMSFs. 
Strong sectors
Tony Sherlock, senior property analyst for investment researcher Morningstar <country-region>Australia</country-region>, says there are few signs of an improving outlook for retail property. 
However, Sherlock writes in a new report – Retail – What’s in store? – that weak sales are not being experienced across all retail. He says the better-performing categories are consumer staples, pharmaceuticals, cosmetics, cafes, restaurants and supermarkets. 
“This is shown in recent sales statistics for supermarkets, up 3.7% on a 12-month moving average basis; liquor, up 7.1%; pharmaceutical, up 7.3%; and cafe/restaurants, up 4.2%.” 
Sherlock says this “bodes well” for owners of smaller neighbourhood and sub-regional malls.
For end-of-financial-year tax tips for property investors, <a target="_blank" href="/news">sign up for our free webinar on Wednesday, May 23 at 12.30pm</a>.
 
 
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Retail properties going ‘cheap’  and showing strong yields – but  take extreme care

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The level of vendor discounting and the average time on market are important vendor metrics to understand as they provide an insight around selling conditions in the marketplace.
Vendor discounting is simply the difference between the price at which a property is initially listed for sale and the price at which it ultimately sells for.
Time on market, on the other hand, is the difference between the date when a property is first advertised for sale compared to the contract date of a sale.
Both measures are taken across private treaty sales only and are across just those properties that have sold. Given this, it provides a good indication of conditions to those vendors that are focused on successfully selling their home.
As the first graph shows, the level of vendor discounting for houses has been trending slightly lower over recent months.
Across the combined capital cities, vendor discounting is recorded at -7.2% for houses and -7.1% for units. The vendor discounting measure for houses is higher than it has been in recent years while for units it is the same as it was at the same time last year.
Click to enlarge
<img src="/images/stories/rpmay111thumb.gif"> Across individual capital cities, vendor-discounting levels for houses are lower than at the same time last year in Perth and Darwin but higher elsewhere. Discounting levels for units are the same as last year in Sydney and lower in Brisbane, Perth and Darwin. In Melbourne, the level of vendor discounting is much higher than it was at the same time last year.
Click to enlarge
<img src="/images/stories/rpmay112thumb.gif">
The average number of days it takes to sell a house across the capital cities was also trending lower over the second half of 2011.
Typically there is a spike in the time it takes to sell a home early in the year and it has eased by March however, this year’s data is not reflecting these conditions for houses.
The average number of days it takes to sell a house was recorded at 77 days in March 2012 and it was 51 days for a unit. Both measures were higher than the 65 days and 47 days recorded respectively at the same time last year.
 Click to enlarge
<img src="/images/stories/rpmay114thumb.gif">
At an individual capital city level, the average time on market is lower than at the same time last year for houses in Brisbane, Perth and Darwin.
For units, the average time on market is currently lower than 12 months ago in Brisbane, Perth and Darwin. In Sydney, the average time on market is relatively similar to that at the same time last year while in Melbourne it is taking much longer to sell property than it was last year.
 Click to enlarge
<img src="/images/stories/rpmay112thumb.gif">
The improvement in vendor metrics in Brisbane, Perth and Darwin and the weakening conditions in Melbourne are reflective of the overall market conditions across these cities and highlighted by the amount of stock currently available for sale across these cities.
In Brisbane, total listings are just 2.3% higher than a year ago, in Perth they are -6.4% lower, in Darwin they are -16.4% lower and in Melbourne they are 36.1% higher.
The lower levels of discounting and average time on market in Brisbane, Perth and Darwin reflect improving market conditions in those cities. On the other hand, the significant increases in both measures across Melbourne reflect the cooling conditions across that market.
Overall, the elevated volume of stock available for sale reflects the low levels of demand for housing credit. Ongoing weakness across the housing market is likely to result in the average level of vendor discounting and the average time on market remaining at above-average levels.
Although this is likely to be the case, we have in recent months seen the amount of stock available for sale decline and the volume of sales stabilise. This may result in some further improvements in vendor discounting and time on market.
Cameron Kusher is senior research analyst at<a target="_blank" href="https://www.rpdata.com.au/"> RP Data</a>.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>.
 
 
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ckusher-ujnxiKuFQs

Australian property markets becoming more balanced: Cameron Kusher

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Newcastle-based lender the Greater Building Society, perhaps most famous for getting Jerry Seinfeld to do its advertising, can now also claim to have the lowest three-year fixed home loan rate in Australia.
The Greater has reduced its three-year fixed Ultimate (packaged) Home Loan by 15 basis points to 5.79% per annum. Product manager David Bryde believes this is the lowest three-year home loan rate in Australia.
Mortgage comparison website RateCity.com.au had listed IMB Building Society as having the lowest three-year fixed-rate loan at 5.89%, but this offer appears no longer available, with the IMB website showing an advertised three-year fixed rate of 5.99%.
This 5.99% three-year fixed-rate also offered by the Commonwealth Bank, ING Direct, ME Bank, CUA, Aussie and Citibank.
The Greater has also cut its credit card rate by 0.49%, bringing it down to a starting rate 10.25% from June 1.
“The Greater continues to offer Australian consumers with better value home loans and credit cards than the major banks as well as outstanding service,” says Bryde.
“Alternatives to the major banks are already here and it is already easier to switch financial institutions than people think,” he adds.
The Greater Building Society is one of Australia’s largest building societies with almost 250,000 customers across NSW and South East Queensland with 66 branches.
 
 
 
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lschlesinger-FZcF9M3vE6

First Jerry Seinfeld, now Greater Building Society claims cheapest three-year fixed-rate loan

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Property investors worry unduly about the utterances of resources companies.
They get the decision jitters whenever miners spit their dummies at any circumstance that suggests they might not get their own way. 
Investors need to understand that the big mining companies of Australia are the masters of scare campaigns. That’s how they negotiate with government, with unions and with landlords: they threaten to scrap planned projects or shut down existing operations or refuse to sign leases for houses to accommodate their staff. 
This week there were hints from BHP Billiton that the Olympic Dam expansion in South Australia is in doubt – and media outlets worked themselves into a minor frenzy over it. 
I have to wonder: don’t journalists know anything that goes on? BHP Billiton has been casting doubt on the $30 billion expansion plan for a long time. 
Meanwhile, the company has continued to advance the project and recently handed out substantial contracts for components of it – in other words, it’s already under way, although the final investment decision is not yet made. 
That’s normal for big resources projects. By the time the board of directors gives its formal approval, the project is already being built. The $40 billion Gorgon gas project in Western Australia had handed out contracts worth many billions of dollars long before the formal board decision was taken. 
It’s the same with Olympic Dam and numerous other big resources ventures around Australia. 
Every time the federal government comes along with a decision that big miners don’t like – like the carbon pricing scheme and the minerals tax – the mining lobby runs a scare campaign, always with the enthusiastic support of the federal opposition. 
They “warn” that mines will close, proposals will be scrapped, tens of thousands of jobs will be lost and the boom will be snuffed out. 
If they and Tony Abbot had been right, dozens of major resources projects would have been killed off by now. Of course, the opposite has happened: the iron ore magnates of Western Australia are expanding like never before and the coal barons of Queensland and New South Wales are investing unprecedented billions. 
Around Australia $80 billion is being spent on building new export facilities. 
Yet the mining lobby continues to hint at scrapping projects and shutting down busy operations which deliver product for which there is massive overseas demand. 
Xstrata has declared the death of the $6 billion Wandoan coal project in Queensland more than once. Yet it has persisted with advancing the project, continued to buy large chunks of land to facilitate it and fought very hard to win a court case earlier this year to allow it to proceed. 
BHP Billiton, through its alliance with Mitsubishi in a venture known as BMA, has announced the closure of the Norwich Park coal mine near Dysart in Queensland, having become fed up with recalcitrant unionists who have hampered operations there for the past 18 months.
 Meanwhile, it’s investing $4 billion in creating a new coal mine a short distance down the road at Moranbah. 
It’s also refusing to sign new leases on houses in Moranbah, because it’s unhappy with the high rent levels. 
This is how big miners negotiate. We’re big, we’re powerful, if you don’t toe the line we’ll take our ball and go home. 
We really shouldn’t take these things to heart. It’s not the end of Dysart as a mining town, nor does it mean Moranbah will no longer provide positive cashflow rental returns. 
The Olympic Dam expansion will happen, at some point when the proponent is ready, and then Roxby Downs will grow and places like Whyalla and Port Augusta will benefit from their roles in the project. 
Xstrata’s big coal mine will go ahead, despite all messages to the contrary, and Wandoan will grow exponentially from its current population of 400 (especially as there are other mining proposals in the area, plus a $1 billion rail project). 
Investors should think long term, as the big miners do, and ignore the background static in mainstream media – most of it written by people who don’t really understand what’s going on.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a> and can be <a href="https://www.twitter.com/hotspotting" target="_blank">followed on Twitter</a>.
 
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terryryder-YECXbqmri2

Property investors need not fear mining companies’ tantrums: Terry Ryder

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ACT had the biggest percentage increase of stock on market in Australia in the past year, according to RP Data, closely followed by Victoria. The number of properties for sale increased 37%, from 1,722 to 2,364. In Victoria, the number of listings increased 35% from 53,110 to 71,747.
The total number of properties for sale in Queensland has dropped slightly over the year, but it remains the state with the most homes for sale in Australia.
Queensland had a total of 84,761 properties up for sale in the month ending May 13, down from 85,162 for the same time last year.
The total number of properties for sale has increased around Australia, but the number of new listings has dropped from the same period last year in every state and territory.
The number of new listings in Australia for the month ending May 13 has dropped from 58,015 to 46,767.
While Queensland has the most available stock, New South Wales just edges it out for total property value, worth an estimated $50.5 billion.
“The number of newly advertised properties for sale rose last week however, the number of new listings remains much lower than at the same time last year (19.4% lower nationally and 15% lower across the combined capital cities),” RP Data’s Property Pulse report says.
“The slowdown in new listing numbers has seen the total number of home available for sale nationally reduce from a high of 325,446 in the first week of December to 309,074 at the end of last week. That’s 5% lower than the December 2011 peak nationally and 8.7% lower across the combined capitals.
“Across individual capital cities, the total number of properties advertised for sale is lower than at the same time last year in Brisbane (-0.9%), Perth (-7%) and Darwin (-18.7%).”
“Across all other capital cities, total listings are higher than at the same time last year with the largest increases recorded in Canberra (42.2%) and Melbourne (35.2%),” says RP Data.
 
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awalsh-7Ub9EypybQ

Property stock on market jumps 35% in Victoria in past year: RP Data

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 17 Rimula Road, Corio, Victoria, 3214
<img width="470" src="/images/stories/rimula.jpg">
This four-bedroom Corio house includes a garden shed and a double garage and is on an 840-square-metre corner block. The tenants are on a month-to-month lease but have lived in the property for seven years and are keen to stay on. The current rent is $280 per week, and although listing agent Bob Bartulovic of CJ Keane &amp; Co says the property could possibly rent for $300 per week, having tenants of such good quality makes it worth accepting a slightly below-market rent.
<a target="_blank" href="https://www.cjkeane.com.au/index.cfm?pagecall=property&amp;propertyID=2038736">Bartulovic  is marketing the property</a> with price hopes of $230,000 plus, and if it sells for $230,000 and is rented at $280 per week, that would secure an investor a gross rental yield of 6.3%, above the gross indicative yield of 5.8% for Corio 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.
<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 $4,000 and over five years to be $8,000.
The median house price in Corio was unchanged in the past year, according to RP Data.
The property will be open for inspection Saturday, May 19 at noon and will go to auction Saturday, June 9 at noon.
For more about prices and yields in <a target="_blank" href="/news">Corio, see the RP Data suburb page.</a>
For another investment prospect open for inspection this weekend, see page 2.
 
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13/54 Amy Street, Regents Park, NSW, 2143
<img src="/images/stories/amy.jpg">
On the top floor of a modern complex, this three-bedroom apartment is currently rented out for $410 per week. Although the tenants are on an expired lease, listing agent Sang Tat of Elders Real Estate says this is current market rent for the area and the tenants are keen to stay. The apartment includes a laundry and a balcony and is within walking distance of Regents Park Station, shops and schools.
Tat <a href="https://www.eldersrealestate.com.au/residential/buy/property-apartment-nsw-regents-park-496163" target="_blank">is marketing the property</a> with price hopes of $350,000 plus, and if it sells for that price that would secure an investor a gross rental yield of 6.1%, above the indicative gross rental yield of 5.8% for Regents Park units, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees.
<a target="_blank" href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT">Washington Brown</a> estimates the first-year tax depreciation deduction to be $8,000 and over five years to be $28,000.
The property will be open for inspection Saturday, May 19 at noon and will go to auction Saturday, June 2 at 2.30pm.
For more about prices and yields in <a target="_blank" href="/news">Regents Park, see the RP Data suburb page</a>.
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Friday form guide: Yields of up to 6.3% in Corio

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Property investors who take up an offer from HSBC Bank of a discounted fixed rate mortgage product if they pay the first year's interest on the loan upfront could cut their end-of-year tax bill by thousands of dollars, while making a small saving on their mortgage repayments.
HSBC has cut its fixed-rate mortgage products by 10 basis points and is offering an additional 10-basis-point discount for investors that who take up the “interest-in-advance” offering.
The rate cut means the bank’s three-year fixed-rate product has dropped to 6.09% but will drop to 5.99% for those investors who take up the interest-in-advance offer.
Paying the interest upfront will allow investors to claim a tax deduction for the interest expense earlier.
HSBC has calculated that investors taking out a $300,000 mortgage on a three-year fixed rate term would have to pay $17,970 interest in advance for the full year with mortgage repayments reduced by $300 over this period.
According to accounting firm Chan &amp; Naylor, an investor on a taxable income of $100,000 would be able to reduce his tax bill by more than $7,000 (from $26,700 to $19,691.70)  by paying the $19,691.70 before the end of the current tax year.


Alice Del Vecchio, head of mortgages for HSBC Bank Australia, says paying interest in advance on a fixed-rate loan allows customers to enhance the tax effectiveness of their property investment. 
“With tax season approaching, many of our customers will be considering various investment strategies, so offers like these come at an opportune time,” she says.
The HSBC fixed-rate cut comes as ABS March housing finance data revealed that fixed-rate mortgage demand climbed to its highest level since April 2008, with nearly 15% of borrowers opting for a fixed-rate product during the month.
Please note this article does not constitute tax advice and the numbers quoted are for illustrative purposes only.
Here’s a guide to the range of headline three-year fixed rate products currently on offer:
5.79%
The three-year fixed-rate offering of Greater Building Society
5.99%
The three-year fixed-rate offering of Commonwealth Bank, ING Direct, ME Bank, CUA and Aussie, Citibank, IMB Building Society.
6.03%
The three-year fixed-rate offering of LJ Hooker Finance
6.04%
The three-year fixed-rate offering of ANZ
6.09%
The three-year fixed-rate offering of HSBC Bank Australia and NAB, St.George, Bank of Melbourne, BankSA
6.13%
The three-year fixed-rate offering of Suncorp
6.15%
The three-year fixed-rate offering of Myrate.com.au
6.19%
The three-year fixed-rate offering of Westpac and ANZ
6.29%
The three-year fixed-rate offering of Heritage Bank and Homeloans Ltd
 
6.33%
The three-year fixed-rate offering of Bankwest
6.34%
The three-year fixed-rate offering of Bendigo Bank
6.37%
The three-year fixed-rate offering of Yellow Brick Road
6.39%
The three-year fixed-rate offering of bankmecu
6.46%
The three-year fixed-rate offering of Resi Mortgages
 
 
 
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Tax savings for property investors who take up HSBC interest upfront offer on fixed-rate mortgages

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Around this time of the year client managers at Chan &amp; Naylor may undertake a process of review of the current financial year activities with a number of our clients.  The purpose of this is to prepare for a scenario of likely levels of income tax payable or estimated levels of tax to be refunded. This may determine how quickly you would like to have your tax affairs attended to following June 30. 
Who would benefit from such a process? Any property investor with solid PAYG earnings or business income and sound cashflow.
Through a process of review your financial advisor may be able to assist in identifying particular issues: 
<ul>
<li>whether the investment property is maximising its deductible entitlements;</li>
<li>whether it is worthwhile prepaying loan interest for the following financial year; and</li>
<li>whether the property is entitled to capital allowance deductions. </li>
</ul>
In some instances there may be little that can be achieved for the current financial year but your property accountant may be able to identify whether there is scope for additional property acquisition or means of reducing income for the following tax year and beyond. 
We recommend that you contact a financial advisor should you wish to consider this option.
 
The benefits of an income tax variation application
 
Another activity that Chan &amp; Naylor undertakes at this time of the year is the submission of applications for 1515 PAYG variation certificates for the next financial year. The 1515 application is to provide your employer with an authority from the Australian Taxation Office to reduce the amount of PAYG withholding from your regular salary. This is usually in expectation of a significant difference between your normal salary and your likely assessable income for a given year often brought about by a negatively geared property investment. 
The benefit of this is that is increases your amount of “take-home pay” to assist you with the ongoing costs associated with a negatively geared property, primarily the interest expense. 
So if you have purchased your first investment property during the current financial year or have ongoing negatively geared property investments now is a good time to be arranging to have your 1515 applications prepared.
Clive Nelson is a partner at<a target="_blank" href="https://www.chan-naylor.com.au/"> Chan &amp; Naylor </a>Parramatta.
 
 
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The 1515 application and why property investors need to consider end-of-year tax planning

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What most of us have been taught about risk is wrong, and it’s probably holding you back from obtaining real wealth. 
Conventionally we’re taught that there’s a continuum of risk starting with low-risk investments at one end of the spectrum to highly speculative investments at the other. We’ve been led to believe that any investment can be placed somewhere along this continuum and that, in general, the higher the risk, the greater the potential rewards. 
The fundamental problem with this logic is that you are taught to evaluate the risk in the investment itself. There’s something very important missing from the equation and that’s you – the investor. 
Imagine you are considering undertaking a small property development. Traditionally you would look at this proposal in isolation and ask yourself, “Is this a risky venture?” 
But here’s the thing: that question is impossible to answer in isolation because we still don’t know enough about you. 
Have you ever invested in property before? Have you ever completed a property development? 
Do you have the knowledge, skills, contacts and experience required to successfully complete a property development? If you have no, or limited, knowledge about council zoning, town planning, feasibility studies, building costs and the building process, no matter how good the deal itself might be on paper, jumping headlong into your first property development will be a high-risk proposition for you. 
Over the years I’ve seen people make a lot of money out of real estate, but over the same time, in the same market and the same economic conditions, I’ve seen just as many people lose a lot of money. The difference is in the individual investor’s skills, contacts, strengths and expertise. 
So in light of this new idea associated with risk assessment, let’s take a closer look at what really makes an investment more or less risky. 
1.  What is your area of expertise? 
Your experience and network of contacts could be your biggest competitive advantage or your most potent risk factor. If you’re investing in something that is your speciality, you start with a built-in advantage that will allow you to achieve a higher return than other investors. 
2. What level of control do you have? 
The more control you have over your investment, the lower your associated risk.
3. Is there transparency? 
The more you know about what is happening with your investments, the lower your risk.
4. How liquid is your investment? 
How easy it is to access your money by selling your investment and converting it (or part of it) to cash. The more liquidity, the lower your risk will be.
5. How do you achieve your returns? 
Property investors receive returns from their investment property in four distinct ways: 
<ol style="list-style-type: lower-alpha;">
<li>Cashflow – the rent you receive</li>
<li>Capital growth - the increase in the value of your property as the overall values in the area increase</li>
<li>Forced appreciation – the increase in value you “manufacture” by undertaking renovations or redevelopment</li>
<li>Tax benefits – such as depreciation and tax deductions</li>
</ol>
 The more secure the returns on your investment, and the less dependent you are on any one of these four categories, the less risky your investment will be.
6. Is your equity safe? 
Is the initial money you outlaid to acquire your investment secure should the investment fail? 
7. What is your personal liability?
When you make an investment, you are sometimes required to provide a personal guarantee. If you do, this gives others (usually the banks) the right to pursue you personally for any lost funds should things go pear-shaped.
8. What is the market risk?
Some risks are inescapable as they are inherent to certain markets. For example, if you invest in tourism, you are subject to the market collapsing if a natural disaster occurs, such as a cyclone, a Tsunami or a disease outbreak.
9. What is the specific investment risk? 
This is the risk specific to the particular investment itself. Is it the right property, in the right suburb, at the right price and at the right time in the cycle? 
When assessing risk, most investors focus only on the last two factors – the market risk and specific investment risk. This tunnel vision often means that they fail to take account of other critical underlying factors that, in many cases, are more significant. 
Your take home lesson should be that while most investors spend vast amounts of time analysing the deal, you must spend more time understanding yourself better. 
My risk spectrum is different to yours and relates to my expertise, my background, the things I’ve done, the lessons I’ve learned and the mistakes I’ve made. Which means that some types of investment are much less risky for me than for you! 
In the same way, you have your own risk profile and you need to take the time to assess what that might be. Whenever you consider putting your money into an investment, don’t make the mistake of analysing the investment in isolation – look at that investment in relation to yourself. What types of investment choices are low-risk for you? What type of investment is medium-risk for you? And which type of investment is high-risk for you? 
Remember that even though all investment comes with some degree of associated risk, you can change this by developing expertise in an area and make the journey to your own financial freedom a low-risk, high-return venture.
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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The riskiness of a property investment depends on you

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The privately owned Perron Group has agreed to pay a post-GFC record of $690.4 million to acquire a 50% share in a portfolio of three Centro flagship regional shopping centres.
The Perth-based property investment business owned and controlled by founder and chairman Stan Perron has entered into unconditional contracts to become joint owners of the Colonnades in South Australia, The Glen in Victoria and the Galleria in Western Australia in a deal brokered by Simon Rooney, Australian head of retail investments at Jones Lang Lasalle.
<img src="/images/stories/galleria4.jpg" width="470">
The Galleria (pictured above and below) is the biggest asset in the portfolio with 73,000 square metres of net lettable area and 201 speciality stores.
<img src="/images/stories/galleria5.jpg" width="470">
The Glen (pictured below) measures 59,000 square metres.
<img src="/images/stories/glen.jpg" width="470">
The Colonnades (pictured below) measures nearly 66,000 square metres.
<img src="/images/stories/colonnade.jpg" width="470">
JLL says this transaction is a post-GFC record for an agency-negotiated real estate transaction.
The previous record was the $738 million paid by LaSalle Investment Management in August 2007 to acquire a 50% stake in the Westfield Doncaster in Melbourne.
The Centro portfolio sale price on reflects a 3.7% premium to book value (pre-transaction costs) reflecting an increased level of demand for exposure to this sector.
The recent transactions of Westfield Doncaster (25% interest), Northland (50% interest) and Myer Centre Brisbane (50% interest) in late 2010 through to early 2012 were sold in line with book values, while in late 2009 and early 2010, Westfield Whitford City (50% interest) and Joondalup were sold at 5% and 2.9% discounts to book values, respectively.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/perron.gif"><img src="/images/stories/perronthumb.gif"></a>
 
 
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