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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Vendors in Tasmania are set to face higher disclosure requirements when selling their homes under a new set of draft rules being proposed by the Tasmanian government.
The draft Residential Property Transactions Bill 2012 seeks to repeal the 2005 “vendor statement” requirement, which was found after public consultation to be “impossible” to implement, and replace it with a new set of draft requirements.
The new requirements include that vendors provide sellers with third-party documents such as title documents, plans and a section 337 council certificate as well as giving consumers the option to obtain a building inspection report.
The draft rules also give the purchaser the right to rescind a contract in the private treaty sales of residential property during a cooling-off period of five business days after the contract date.
The new draft rules were compiled with the assistance of the Real Estate Institute of Tasmania and the Law Society of Tasmania.
Public consultation carried out by the Tasmania’s Consumer Affairs and Fair Trading (CAFT) in 2010 identified “a number of significant problems” with the vendor statement approach, including that “the property information available to a purchaser would be dependent on the knowledge and memory of the vendor and how long the vendor had owned the property”.
The public consultation also identified that the “vendor statement would require a vendor to make an assessment as to the condition of the property, and to make judgements in relation to matters concerning the legality of building work” and would expose vendors to the risk of legal claims if they “incorrectly answered a question required by the vendor statement in relation to a technical matter”.
In explaining the need for the new rules, CAFT says “there is general support for the view that the principle of 'buyer beware' no longer serves the interests of purchasers”.
“Further it is commonly accepted that purchasers should have the right to access relevant information when deciding whether to purchase a residential property,” says CAFT.
Introducing the bill, Minister for Consumer Protection Nick McKim said the new legislation focused on providing better information to consumers about illegal building works. 
“The draft legislation released today has been developed through collaboration between government and the real estate and legal professions,” he says. 
“I would like to thank the Law Society of Tasmania and the Real Estate Institute of Tasmania for their valuable input to this process. 
“Following the public consultation process I will be moving to finalise the bill and obtain cabinet approval with a view to introducing the legislation into the Parliament before the winter recess. 
“Tasmanian consumers have waited many years for the introduction of vendor disclosure, and I am committed to seeing this regime implemented,” he says. 
The government seeking public comment by June 12, 2012.
 
 
 
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Tasmanian vendors to face higher disclosure requirements 

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Following Friday’s decision by ANZ to reduce its variable rate by 0.37 percentage points to 7.05% as part of its monthly independent rate decision, just two lenders – both credit unions – have passed on the full 50-basis-point May 1 rate cut to borrowers.
<a href="https://www.unicredit.com.au/" target="_blank">Unicredit WA</a>, which primarily provides loans to staff of WA’s four public universities (and according to its website “was born out of the chemistry department at the University of Western Australia in 1964”), has lowered its standard variable interest rates half a percentage point to 6.1%, making it one of the lowest in the market with<a href="https://www.queenslanders.org.au/"> Queensland Credit Union</a> not far behind at 6.15%
The other lender to pass on the full rate cut is New South Wales-based <a href="https://www.pcu.com.au/" target="_blank">Police Credit Union</a>, which has dropped its Police Value Variable Home Loan to 6.24%.
Borrowers at one of the larger credit unions, Credit Union of Australia (CUA) will perhaps feel the most aggrieved after it passed on only a 25-basis-point cut to 6.47% – half of the official RBA rate cut. However, CUA still has a standard variable rate significantly lower than the major banks.
Of the bigger lenders, ING Direct is offering the lowest standard variable rate of 6.44%.
Here’s a guide to some of the standard variable mortgage rates currently on offer from banks, credit unions and non-bank lenders, starting with the cheapest:
All rates correct as of 9am, May 14.
6.10%
The standard variable bank rate of Unicredit WA
6.15%
The standard variable bank rate of the Queensland Credit Union
6.24%
The standard variable bank rate of Police Credit Union
6.37%
The standard variable bank rate of State Custodians
6.42%
The standard variable bank rate of ING Direct (Mortgage Simplifier) 
6.44%
The standard variable bank rate of ME Bank 
6.47% 
The standard variable bank rate of CUA
6.64%
The standard variable bank rate of Yellow Brick Road 
6.66%
The standard variable bank rate of Newcastle Permanent
6.85%
The standard variable bank rate of Cairns Penny Savings &amp; Loan
6.98%
The standard variable bank rate of People's Choice Credit Union
6.98%
The standard variable bank rate of Bankwest
6.99% 
The standard variable bank rate of Bank of Melbourne
6.99% 
The standard variable bank rate of NAB
7.01% 
The standard variable bank rate of Commonwealth Bank 
7.04% 
The standard variable bank rate of St.George Bank 
7.04% 
The standard variable bank rate of BankSA 
7.05%
The standard variable bank rate of ANZ
7.05%
The standard variable bank rate of HSBC
7.06%
The standard variable bank rate of Aussie Home Loans
7.07%
The standard variable bank rate of AMP 
7.08%
The standard variable bank rate of Bank of Suncorp  
7.09%
The standard variable bank rate of Westpac
7.10%
The standard variable bank rate of Bendigo Bank 
7.11%
The standard variable bank rate of Bank of Queensland 
7.62%
The standard variable bank rate of Citibank (unchanged) 
 
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Just two lenders pass on full rate cut: May 2012 to standard variable mortgage rates

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An Australian draftsperson and building product developer has teamed up with an eco-architect to produce an iPhone app to gauge the green credentials of properties.
<a target="_blank" href="https://ecoeasy.com/">Eco Easy Home</a> was quietly released in early March with a feature set to rival a full assessment by a sustainability consultant.
The app uses a variety of assessing factors to allow users to work out how green a house is.
One feature developer John Civijovski is particularly proud of is the alignment tool. The feature lets users work out just how north-facing a property is as it tracks out the future movements of the sun. The information gleaned from this tool lets users calculate the solar gain of a particular property.
“Being able to locate homes with a northern orientation is totally new. A tool like that just doesn’t exist,” Civijovski says.
“You can move the sliding guides and pinpoint homes quite neatly.”
The rating system of the app asks the user a series of questions to let the app assign a value score to a house.
Civijovski says he initially wanted to help people find the thermal strengths and weaknesses of a house, particularly for those don’t know where to start.
“You don’t have to know anything about energy efficiency.”
“It’s a complex area, but we have broken it down into a simple interface that anyone can use. If you use it regularly, you will become familiar with jargon like orientation, insulation and thermal mass, and eventually become an energy-efficiency expert.”
The app intersperses information on energy efficiency with an aim to educate users as they use the tool.
“If you’re looking at buying a home and you’ve narrowed it down to two or three you can make comparisons using Eco Easy Home about which has better opportunities. One might be better in winter while that’s better in summer.”
Civijovski worked with architect Gareth Cole, an architect and public speaker on sustainable design. He has worked as an architect for 30 years and runs The Ecologie Group Architects, which specialises in passive solar design, solar systems, energy efficiency and sustainability.
For more <a target="_blank" href="/news">on online tools for property investors, sign up for our free webinar this Thursday, May 17 at 12.30pm.</a>
 
 
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How green is my home? Eco Easy Home app has the answer 

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A Melbourne property that would suit downsizers drew a lot of interest, but few bidders, at its weekend auction.
There's now a tipping website, <a target="_blank" href="https://www.propertytycoon.com.au/" style="font-size: 14px; text-align: left;">www.propertytycoon.com.au</a>, where punters can guess auction five results in Melbourne and Sydney, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener.
As expected a lot of grey heads greeted the auctioneer at 2/1 Mountain Grove, Kew (<a target="_blank" href="https://www.propertyobserver.com.au/auctions/melbourne-auction-tipping/2012051054648">featured on Property Observer on Friday</a>), as a huge crowd of downsizers look on with interest. But as is becoming all too common a big crowd did not mean lots of bidders as only two buyers contested the auction.
<img src="/images/stories/mountaingrove.jpg">
Luckily for the vendor it only takes two to make an auction as the property (pictured above) eventually sold for $1.23 million, just slightly above the agent's anticipated selling range.
<img src="/images/stories/holkham.jpg">
Good interest leading up to the auction of 9/8 Holkham Avenue, Randwick (<a target="_blank" href="https://www.propertyobserver.com.au/auctions/sydney-auction-tipping/2012051054649">also featured on Property Observer on Friday</a>) failed to extract a bid that was acceptable to the vendor after the auction had finished. The property (pictured above) passed in for $707,000 before the highest bidder went inside to nut out a deal that made the vendor happy.
When the dust settled a sold sticker did appear on the board, but maybe the price was not exactly what the vendors wanted as they requested the price not be disclosed.
Agent Charles Stevens can tell us the price was in excess of $720,000.
 
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A big crowd doesn’t mean many bidders for auction tipping competition properties 

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I recently wrote about the concept of being a ‘renter-investor’, <a href="https://www.propertyobserver.com.au/landlords/the-pros-and-cons-of-buying-your-first-property-as-an-investment-and-continuing-to-rent/2012031153777" target="_blank">where I reviewed some of the positives and negatives associated with it</a>: 
The more research I conduct, the more I see this trend emerging as an increasingly popular investment strategy. But what of those who go half-way there, as in: owning and occupying their principal place of residence (PPOR) and then renting one or even two of the bedrooms in that dwelling? 
It is certainly a trend that is picking up steam. <a href="https://www.apimagazine.com.au/api-online/news/2012/05/renting-out-rooms-a-popular-option" target="_blank">In fact, a recent poll conducted by PRDnationwide</a> concluded that 14% of respondents already had at least one person renting a room in their PPOR, with one in three home owners considering the idea of renting a room out as a revenue driver.
In fact, a simple Australia-wide search on Gumtree.com.au today reveals over 10,173 listings Australia of users advertising a room to rent in their homes. Sure, a portion of these ads are for those who are renting themselves, and effectively sub-letting. 
I guess what I’m getting to is this: I am currently (and have been for almost two years) a renter-investor, finding the strategy suitable to my lifestyle as well as to my balance sheets in my holding cost analysis Excel spreadsheets. But, having exchanged contracts two weeks ago on a PPOR for myself (yes, I’ve decided I need a permanent place to hang my hat), I am actually less than four weeks away from settlement, and my mind is ticking over to the possibility of renting the second bedroom of this residence. 
But with this notion comes so many additional questions. What of the tax issues apparent with this arrangement? And what of the practicalities? What are your rights (and the rights of your tenant) in a circumstance where you let a room, with no formal lease for which the tenant is to comply to?
I do not have all the answers, but I am keen to raise the questions and get the feedback of the investment community.
1)      Tax issues This is something I’m not sure of. In theory, any income you are earning from a property must be declared to the ATO. But what effect does this have on the “tax-free haven” nature of your principal place of residence? There are those who have suggested that by wording the tenant not as a “tenant”, but as a “lodger” or “boarder” this creates a grey area in which the “intended use” of the property is unclear, however I am not certain this is the best way to play it. I’ve had people I know recommend to pocket the weekly board/rent in cash and not declare it, and because the tenant is not on a formal lease, a formal “investment property revenue” should not be declared to the ATO. I’m keen to hear from the community their thoughts on such a notion. 
2)      Practicalities This is an area in which I bring much more experience. Having house/flat shared for the better part of the last 10 years, both in larger four-person plus share houses, down to two-bedroom apartments with just one flatmate, I can attest to the importance of good tenant selection. You need to consider the practicalities of the space that you will inhabit with one (or more, if relevant) flatmates. Small apartments can be tricky, and you may feel you are living on top of one another. Personality clashes are common, and can help be avoided by proper screening of your flatmate. Remember the gruelling process you have to go through to successfully ‘win’ a rental housing application? Well, agencies do this to ensure they are accepting only the best, most trustworthy future tenants, into a property. You should demand the same from your applicants. Sit them down after an inspection of the room for a more formal interview. Ensure you ask all the right questions (Google this for suggestions; there are many you can ask). 
3)      Tenant (and your!) rights I must be honest; over the years I’ve been lucky with flatmates. Usually they are ‘friends of friends’ (coming with references and trust), or even better, friends of my own. But when interviewing complete strangers, establish a “way we live together” list before they move in. Also, it is your place and you could ask for a bond/deposit. Legally you’d be best to lodge this with the Department of Fair Trading, but this is your call. Make clear the rules of the house, expectations, and especially duration of stay. This will ease any potential clashes or misunderstandings further down the track. 
4)      Industrialisation of the flatmate ‘industry’. The advent of sites like Flatmate Finder is an indication that house/flat sharing is an increasingly popular trend. In fact, niche audiences within this category are now being catered to, thanks to specific niche flatmate-finding sites now gaining popularity. There are sites dedicated to mature/older flatmate seekers, gay and lesbian, and even pet-owning/sensitive flatmate seekers!
While renting a room in your own place may not be a strategy that is for all; it’s one to consider, as it may help with the cashflow of whatever your current living arrangement may be. For investors, it is always going to be about that bottom line. And if you can claw back even a few hundred dollars per month by renting a room, imagine what future growth opportunities you could unlock by pouring that money back into an investment stream of your own.
Cameron McEvoy is a property investor and maintains a blog, <a target="_blank" href="https://propertyspectator.blogspot.com.au/">Property Spectator.</a>
 
 
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The rising trend of renting out part of your home as an investment

<html><body>Australian Property Monitors (APM) has released a list of results from 309 auctions in Sydney for the weekend of May 12. The clearance rate was 61.8%. <a target="_blank" href="https://www.homepriceguide.com.au/saturday_auction_results/Sydney.pdf"> Click here</a> for the auction results, and click on each street address to see the property's marketing.</body></html>

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APM's 309 Sydney auction results showing a clearance rate of 61.8%

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The budget showed that the Labor government intends to win back its traditional voters by pushing money to households through tax cuts and cash bonuses for school children.
But although the budget seemed politically smart, it was built on assumptions rather than certainties.
The primary assumption is that the current government will still be the government in 2013 and beyond. Some of the accounting tricks and new revenue programs used to put the 2012-13 budget in surplus require that the government who put them in place will still have its hands on the levers.
In the current environment, that’s a hopeful assumption.
Secondly, the improved budget position is expected to come about because of cuts to government spending and an increase in tax receipts driven by next year’s expected growth rate of 3.25%.
Strong growth is going to be driven mainly by the mining sector because sectors such as retail, hospitality and manufacturing are not doing well. Yet many factors can arise to change growth forecasts and it will only take one sector of the economy to stumble – mining – and all bets are off.
Thirdly, there’s a raft of carbon tax-related initiatives that have been factored into the budget estimates but the one to watch is the so-called ‘carbon price’ of $29 a tonne.
This represents revenue to the Commonwealth, but the more I read about this carbon price the more it becomes apparent that it is not necessarily the price that will be paid by businesses. In fact, carbon emissions are currently being traded in Europe at below $10 per tonne and the momentum is for even cheaper carbon prices.
So, $29 per tonne actually being levied on Australian emitters is not a given.
Lastly is the Treasurer’s forecast that official interest rates will decrease into 2013. This will apparently stimulate the economy.
Even if the assumption on interest rates is accurate, it’s not entirely consistent with an economy growing at 3.25%.
When the economy grows at 3.25% and household consumption is growing by 3% (as forecast) the Reserve Bank will act to stop inflation. And that will mean interest rates go up.
And we should all be concerned about the 1% reduction in company tax promised to business owners that the government abandoned on budget night.
If you base the coming-right of the economy on strong growth in 2013, then you’d expect Australia’s 2.7 million small business owners, who employ 60% of the workforce, to play some part in that.
I know that the government places their faith in an ongoing resources boom but that still leaves about 85% of the economy who are flat or going backwards.
Many householders will be happy with this budget, but can I suggest that everyone who receives their schoolkids bonus spend it wisely? The world economy is going through a structural change and our best defence – along with surplus budgets – is an educated population.
Mark Bouris is executive chairman of <a target="_blank" href="https://www.ybr.com.au/">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance. He runs a <a href="https://twitter.com/#!/markbouris" target="_blank">Q&amp;A session on Twitter</a> every Monday afternoon at 4pm for small business owners using the hashtag #bizQandA.
 
 
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Federal budget was politically smart but built on hopeful assumptions

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What is passing through the mind of the Sydneysider approaching retirement age right now? Standing on the precipice of oblivion, or beginning to quaff the blissful serenity of freedom? ... unless, of course, the kids have moved back in with grandkids in tow.
The baby boomers – those born between 1946 and 1964 – constitute some 25% of Sydney’s population, and for the leading edge of this group – the “imminent retirees” – thoughts of retirement and downsizing are likely to be at the forefront of their minds. And they are beginning to make their plans. Around 80% of the baby boomers own their property outright and – significantly – many also hold investment properties.
With reduced super balances – read sweat and toil of the last 20 years – and no indication of any future success soon, for many, retirement may not be an option in the short to medium term. Indeed, a study by Merrill Lynch (2005) suggests that retirement will be “neither a life of full-time leisure or full-time work”. Similarly, a University of Tasmania study (2007) found that the most likely outcome will be “a phased withdrawal from the labour market over an abrupt cessation from work”. Instead of disappearing, the 65+ers will simply fade away.
The financial model adopted by retirement funds assumes that a retiree will survive on regular series of payments, in a special – almost magical world – where costs (such as electricity and petrol) remain orderly, until the invested capital, and coincidently the retiree, expire around the age of 85 ... but there is an awful lot of living to do in the intervening 20 years. And this is not a generation renowned for its thrift like its predecessors – a good news story for the retail and hospitality sectors. Not so good for any prospective 86-year-olds, or those banking on an inheritance, or those hoping to rise the corporate ladder by filling the retirees’ old positions.
Consequently, some baby boomers may opt to augment their retirement finances by selling the family home and downsize to a more affordable dwelling, while others may sell and move to enjoy the fruits of their next life stage.
Marketing to the baby boomer generation has focussed on larger apartments, with space and storage, good quality design, and offering security and lifestyle. Conversely, a 2001 study by BIS Shrapnel on Sydney’s empty-nesters found that preferences lay in single-level villas, acknowledging that stairs would become an issue in the future. Ideally, dwellings would have ample space, but small, low maintenance gardens – a place for barbecues and grandkids – or better still large balconies as an extension of the leisure-orientated living area with common area rooftop gardens.
A further common theme is that location is paramount – they will not be herded off to Sydney’s Never Never. While some may move away to be close to their children, to find a more affordable dwelling, or move to leisure/lifestyle areas, most prefer where they live and wish to remain there. Developments to accommodate this group need to be strategically placed (walking distance) from their local haunts. The majority will not, so it seems, relocate to the Gold Coast. These people want to live – and live it up – not simply exist.
However, the supply of land for new development in Sydney is tight. After taking into account the cost of land in the established areas and all of the changeover costs, downsizing to a new home doesn’t provide much change after selling your established home – even if the land isn’t as big as their current home. If new dwelling prices stymie the trade down activity of the baby boomer generation, what will be the impact on the market?
The underlying demand for the baby boomers’ family nest egg will come mainly from the Gen X demographic, with some 26% of Sydney’s population; aspiring to provide their children (Gen Y and Z) with something resembling a house with a backyard, sort of like the one they grew up in. But, if family homes are not freed up by the downsizing baby boomers, where will Gen X find their large family home? Chances are the answer lies to the new housing estates on the city fringes, where the land is available. This is likely to continue to diminish housing affordability in established suburbs, where limited houses will be put on the market, and Gen X demand will be pushed to Sydney’s outskirts. But will the Gen X-ers go there or will they opt to reside in apartments closer in?
Conversely, if the baby boomer generation does downsize en masse, then what impact does this have? House price pressures should ease as established housing stock becomes attainable for the Gen X buyers. However, unless NIMBY-ism attitudes and the planning rules were to change, how do you accommodate both the downsizers and the Gen X-ers in their current suburbs where land supply is tight? In addition to approving larger infill apartment projects, up-zoning to medium (or high) density would squeeze more housing out of the land, especially if neighbours co-operated, on-selling their properties as a single site to developers. Simon and Garfunkel cautioned against being “a rock ... an island”, by co-operating, many more should stand to benefit. Moral of the story: if the neighbours are around the same age, get to know them and encourage them to join the local IMBY chapter. Perhaps greed is good after all?
Sydney’s problem is one of undersupply, which has driven price growth. Specifically, an under-supply in the established communities people desire to remain in. Of course, poor planning, decisions of expediency, easy credit and dual income families have also played their part in driving price growth. Something needs to happen within “the system” so that all these people – baby boomers, Gen X, Y, and Z – can be housed; a greater intensity of land use, especially close to commercial and employment centres; a drive to consolidate the larger land parcels in the suburbs to facilitate medium to high density housing would be a (good?) start.
For other retirees, this will be all too hard; another report (Sweeney, 2006) pointed to “aging in place” for reasons centred around emotional attachment and the notion of the “nest egg” for Gen Y children. Most retirees still remain active, and a “seniors’ needs” refurb of the family home is likely to be a distant expense, some 20 years down the track. Perhaps, in the instance where the land is sufficiently large enough, a granny flat extending the family nest to accommodate the kids (and grandkids) on a permanent basis – maybe they’ll even pay for it! – would be cheaper than the commute to the Sydney’s fringes, just as long as it leaves enough room for the Winnebago.
It looks as though we’ve highlighted the issues facing the medium term outlook for the baby boomers – or have we? The truth of the matter is that this is the demographic that has changed the rules to suit their changing needs, why should retirement be any different? There is no one simple answer; this is an issue of lifestyle choice and locality and some of these choices require change – both subtle and dramatic. <a href="https://www.bis.com.au/reports/sydneys_baby_boomers_r" target="_blank">BIS Shrapnel</a> is looking to commence a study examining how the landscape will change, the effects on Sydney’s future housing market, supply and demand patterns, and any sub-regional socio-economic variations. It will flag the policy obstacles and highlight the desired dwelling types and locations.
All of this should be to the forefront of a manager’s mind; anyone involved in property – planning, development, investment, design, government policy, tourism … because the field is changing. New game, different rules. Are you prepared?
Martin Bregozzo is a senior project manager and property economist at <a target="_blank" href="https://www.bis.com.au/">BIS Shrapnel.</a>
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What baby boomers' retirement will mean for the Sydney property market: BIS Shrapnel's Martin Bregozzo

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Lend Lease has sold about 70% of its flagship Docklands development Convesso Concavo, with more than two-thirds of sales occurring in the past six months after the second tower launched.
Convesso Concavo, the developer's flagship luxury complex, will comprise 455 apartments across two towers, with 220 one-, two- and three-bedroom units in Convesso. There are another 235 in Concavo. The developer has sold about 320 units across both buildings thus far, with sales more heavily weighted in Convesso. Convesso launched in late 2010, and Concavo apartments came onto the market in October 2011. 
<img src="/images/stories/convesso2.jpg">
The developer <a target="_blank" href="https://www.propertyobserver.com.au/developments/lend-lease-sells-over-100-units-in-convesso-concavo-docklands-development-in-a-month/2011120552677">had sold just over 100 of the apartments in Convesso Concavo in November last year</a>. 
Prices start from $465,000 for a one-bedroom apartment to more than $5 million for the three-bedroom penthouses in Convesso. In Concavo, prices range from $495,000 to more than $3 million. 
<img src="/images/stories/convessoflicker.jpg">
The development has been designed by architectural firm Bates Smart, and its curved, glass-filled exterior is meant to be “an expression of the reflections of light on the water that lies before them,” according to the marketing brochure.
<img src="/images/stories/convesso3.jpg">
Many of the units have interactive displays that allow the inhabitants to monitor their electricity consumption, communicate with other residents in the building and climate control every room of their homes.
The more expensive units have car parks directly outside their doors, making them feel less like apartments and more like houses. 
The complex is expected to achieve a seven-star NABERS rating and is billed as "Australia's most sustainable luxury residential towers".
<img src="/images/stories/convesso4.jpg">
“Despite the sustainability credentials, Convesso apartments are not necessarily more expensive than similar apartments in the Docklands, they are still market competitive,” says architect Kevin Masci of Bates Smart.
<img src="/images/stories/convesso6.jpg" style="font-size: 14px; text-align: left;">
“At the moment buyers embrace green-star features, providing it’s at a reasonable cost, but in time green-star residential buildings will be recognised as the new state-of-the-art.”
The buildings will include amenities such as 24-hour concierge, a 25-metre lap pool, gymnasium, spa, sauna, deck areas with barbecues, residents’ lounge, cinema and business centre.
<img src="/images/stories/convesso7.jpg">
Convesso is currently under construction and is expected to be finished later this year. Construction on Concavo is expected to begin at the end of July or early August this year and is set to be completed in mid-2014.
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Sales ramp up for Lend Lease Docklands project Convesso Concavo

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With the McKell Institute’s recent Homes for All report calling for the removal of negative gearing to make properties more affordable for first-time buyers and Treasurer Wayne Swan effectively ruling this option out, negative gearing is always on the social agenda.
The best way to balance the concerns that negative gearing inflates prices with the need to support investors is to make negative gearing applicable only to new off-the-plan or newly renovated property investments.
Negative gearing was established to alleviate the tax burden experienced by investors in recognition of the important role they play in providing rental accommodation, and there is no denying that investors are a vital cog in the Australian housing landscape.
However, the vast majority of investment properties that are being financed by investors using a negative gearing strategy are existing dwellings. Hence the practice has very little impact on new supply in a market, where rental vacancies remain extremely tight.
Put simply, investors who buy new off-the-plan properties are having a positive impact on society by creating new rental accommodation, whereas investors using negative gearing to finance the purchase of existing properties are not. Instead they are competing for properties directly with prospective owner-occupiers, but from an unfairly advantageous tax position.
It is important to consider the flow-on effects of new construction and renovation on the broader economy, particular in challenging economic times.
New residential construction contributes significantly to the overall economy, from the obvious beneficiaries like developers, builders and other tradespeople, but also including architects, furniture and appliance wholesalers and retailers, home improvement stores - the list goes on and on.
Hence the need to encourage investor demand for new properties to stimulate construction and to unlock the economic benefits of new development down the supply chain. Making negative gearing applicable only to new or newly renovated developments is one strategy to achieve this.
Of course there is always the question of “how new is new?” That is, up until what point in the development lifecycle should an investor be able to access negative gearing to help finance a property purchase?
A model based on the proviso that an investor must be either contributing to demand for – or supply of – new rental accommodation to access negative gearing is necessary.
The fairest way to ensure a negative gearing strategy is being used only by investors contributing to the supply of rental accommodation is to make the practice accessible from an agreed timeframe following the commencement of the initial lease term, with consideration given to the individual investor’s personal circumstances.
In consideration of the ideal timeframe for an investor to access negative gearing, it generally takes five to six years for an investment property to become neutral in terms of income received versus interest payable. While this is influenced by the rental income, the investor’s marginal tax rate and depreciation allowances, a timeline of this duration seems a logical, fair approach. 
Investors building a property portfolio should ideally be looking to reap the long-term benefits of compounding capital growth by aiming to increase annual rental income and use the fixed expenses and compounding rental growth in the short term to create long term positive gearing.
It should be remembered that all types of income producing properties have substantial taxation benefits, over and above negative gearing, that an investor can claim as tax credits.
Every investor should enlist the services of a quantity surveyor to prepare a depreciation schedule, the cost of which is fully tax deductible, while also ensuring items such as body corporate fees, electricity and gas, insurance, land tax and property agents fees are claimed, to name a few.
Neil Smoli is managing director of the <a href="https://aviategroup.com.au/" target="_blank">Aviate Group.</a>
 
 
 
 
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