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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

Joel Robinson

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

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

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

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

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

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

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

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

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

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

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

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

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

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The amount of stock on the market declined in all capital cities in April compared with March, according to SQM Research. Of course, the month of April contained the Easter long weekend, Anzac Day and school holidays.

The biggest decrease in stock on market was in Sydney, which recorded a 12.1% decrease month on month. 

"It is becoming more evident that the number of real estate listings has reached its peak," says SQM managing director Louis Christopher.

But Christopher warns that just because stock levels have peaked, it does not mean that prices are rebounding.

“Now while stock levels maybe be peaking, that doesn’t mean prices have suddenly stopped falling," Christopher says.

"As the ABS data illustrates, house prices were falling in the March quarter and we think they are still falling as we speak. I’d like to see a sustained decline in stock levels before calling a real bottom in prices. But overall, the worst now is likely behind us with this current downturn.”
 
<img src="/images/stories/48430.gif">
The amount of stock currently on the market in Melbourne, according to SQM Research. This is down 4.7% from last month but up 11.2% from this time last year.
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The amount of stock currently on the market in Sydney, according to SQM Research. This is down 12.8% from last month and down 8.2% from this time last year.
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The amount of stock currently on the market in Brisbane, according to SQM Research. This is down 6.9% from last month and down 10.4% from this time last year.
 
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The amount of stock currently on the market in Perth, according to SQM Research. This is down 5.5% from last month and down 14.1% from this time last year.
 
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<img src="/images/stories/17559.gif">
The amount of stock currently on the market in Adelaide, according to SQM Research. This is down 2.5% from last month but up 5.8% from this time last year.
 
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<img src="/images/stories/4584.gif">
The amount of stock currently on the market in Hobart, according to SQM Research. This is down 2% from last month but up 29.3% from this time last year.
 
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<img src="/images/stories/3611.gif">
The amount of stock currently on the market in Canberra, according to SQM Research. This is down 7.2% from last month but up 8.7% from this time last year.
 
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<img src="/images/stories/1234.gif">
The amount of stock currently on the market in Darwin, according to SQM Research. This is down 6.8% from last month and down 28.6% from this time last year.
 
 
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How much stock is on the market in your capital city? A state-by-state analysis: SQM

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Lower RBA inflation forecasting has prompted Bill Evans, the Westpac chief economist, to conclude today’s RBA statement of monetary policy (SoMP) makes the prospect of earlier rates cuts than he’d anticipated.
“The case for another rate cut has already been made, and every board meeting through the course of this year must be seen to be very much alive,” Evans says.
“We had expected that the 50 bp cut would be in two tranches in August and November.
“This RBA statement now indicates to us that these cuts can be expected earlier by the end of the September quarter, being concentrated in that July–September window.”
Savanth Sebastian, an economist at CommSec noted the door had been left open for further rate cuts with CommSec pencilling in a quarter per cent rate cut in August.
"However the focus on inflation has now shifted from prices to cost pressures," Savanth Sebastian noted adding that subdued wage costs and/or an improvement in productivity will ensure that the Reserve Bank has scope to comfortably cut rates further in coming months, if it is deemed necessary to stimulate activity.
Evans says the monetary policy statements make it quite clear that the case for another rate cut has already been made.
“In the February SoMP the Bank forecast underlying inflation in the year to December 2012 at 2.5%.
“That has now been reduced to 2%.
“Forecasts to December 2013 appear to be broadly unchanged with 2.5% being replaced by 2–3%.
“The forecast for June 2014 has been reduced from 2.5–3% to 2–3%.
“We find these forecast revisions significant since it is very rare that a central bank would forecast inflation at the bottom of the band over the course of the current year.
“On our figuring the bank is assuming a print for underlying inflation in the second quarter of 0.7% falling to an average of 0.5% in the third and fourth quarters.
“The other significant development is that there is no longer concern that inflation will necessarily reach the top half of the 2 to 3% band in the year to June 2014.”
“The bank’s decision to forecast that underlying inflation (excluding carbon price) will remain at the bottom of the 2 to 3% band over the course of 2012 is a very strong signal that it retains an easing bias.
“Since 2005 when the Bank began producing inflation and growth forecasts there have only been two SoMPs when it has forecast inflation to be at the bottom or below the band over the next year or so.
“That was in May and August 2009 in the aftermath of the global financial crisis,” Evans says.
“Admittedly, the cash rate had bottomed out by then but cuts totalling 425bps had been rapidly delivered as the economy lost momentum.
“In this current episode the bank's growth forecasts are more upbeat but in recognising that inflation will remain at the bottom of the band (despite trend growth) the signal is clear that there is ample scope for further monetary easing,” Evans says.
 
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Next RBA rate cut could be as early as July after inflation forecast revision: Bill Evans

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The RBA says the ratio of dwelling prices to income is back around its 2002 level, in its latest statement on monetary policy.
Weak demand has been reflected in a fall in Australian capital city dwelling prices of around 6% since their peak in early 2011 and low housing turnover.
“Notwithstanding this, it appears that in recent months dwelling prices might have been declining at a slower rate.
<img src="/images/stories/rbamay41.gif">
“With declines in dwelling prices, the ratio of dwelling prices to income is back around its 2002 level,” the central bank notes.
It notes slower growth in housing debt has been associated with weakness in the housing market.
In contrast to dwelling prices, the RBA notes various measures of rents grew by 4% to 5% over the year.
Reasonably strong rental growth, together with falling dwelling prices, has lifted rental yields to around ½ percentage point above their mid-2000s level.
<img src="/images/stories/rbamay42.gif">
The report noted rental vacancy rates have been around 2% since 2009, above the very low levels seen in 2006–08 but still low by historical standards.
The report also noted residential building activity fell over 2011 to be around the lows of some earlier cycles in dwelling investment.
The weakness in residential building activity reflects a number of factors, the RBA suggests, including declines in established dwelling prices, having made households reluctant to commit to new contracts to build.
Also, in recent years, the RBA notes lengthy planning processes and arrangements for infrastructure provision have increased the cost of new dwellings.
<img src="/images/stories/rbamay43.gif">
The reported notes a range of initiatives have been undertaken by state governments to address these issues, including reviews of planning systems, the release of infrastructure plans and caps on infrastructure charges.
Despite recent decreases in housing prices relative to income and increased rental yields, forward-looking indicators suggest that there is little prospect of an imminent recovery in housing construction.
<img src="/images/stories/rbamay44.gif">
Approvals for new dwellings have continued to trend downwards in early 2012, especially for higher-density housing.
It notes this has followed the run-up in approvals in 2010 that was concentrated in Victoria.
Approvals for detached houses are at low levels in all mainland states, notwithstanding a recent increase in Queensland that can be partly attributed to the state government’s building boost grant for new dwellings.
 
 
 
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Dwelling price-to-income ratio at 2002 levels: RBA

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Westpac has lowered its home loan rates by 0.37 of a percentage point, less than the Reserve Bank of Australia’s supersized official 50-basis-point cash rate reduction on Tuesday.
Westpac's new mortgage rate will be 7.09%.
The cut is less than <a target="_blank" href="/news">Commonwealth Bank</a>, but more than <a target="_blank" href="https://www.propertyobserver.com.au/overseas/nab-first-of-big-four-banks-to-cut-rates-with-032-percentage-point-cut/2012050254522">NAB</a>. ANZ customers will have to wait until next Friday to learn what the bank will do.
 
 
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Westpac cuts standard variable rate by 0.37 percentage points

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Money doesn’t discriminate; it doesn’t care who you are or where you come from and it’s there for the making. 
No matter what you did yesterday, today begins anew and you have the same rights and opportunities as everyone else to become wealthy. Yet the sad reality is that the majority of Australians will never achieve financial freedom. 
On the other hand, a small group of Australian property investors are becoming very wealthy. In this, the first part of a two-part series, I begin exploring the common myths about money that hold many people back from achieving their financial goals. 
Myth #1: It takes money to make money 
Despite what some people believe, it doesn’t really take a lot of money to make money. 
Many Australians have untapped equity in their homes that they can use as seed capital for investments, while others will have to learn the discipline of saving to get some start-up capital. Then all they need to do is invest in high-growth investments such as residential real estate and use the magic of compounding leverage and time to grow their asset base. 
You don’t need a fortune to begin making your first million; you just need to commit to making a start and stick with it. 
Myth #2:  I don’t make enough money 
 Almost everyone makes enough money to become an investor. The truth is most people don’t have an income problem; they have a spending problem. 
Look at your current wage and ask yourself; how much am I likely to earn over my lifetime? For most of us, the answer will probably be more than a couple of million dollars. The problem is most of us spend as much as we earn. You’ve got to start living within your means, paying yourself first, saving a deposit for a property and investing in order to break your current pattern.
 
Myth #3: My job and superannuation will take care of my financial future
If you accept my definition of financial freedom as having enough passive income to finance the lifestyle you desire without having to work, you will never achieve this through your job or superannuation. Instead you will need to take control of your financial future by investing. 
Even if you try to save 5% or 10% of your income as many financial planners suggest, you’ll find it won’t give you a big enough nest egg to fund your retirement.
 
Myth #4: I’m not smart enough
In our country everybody has the ability and opportunity to become rich. Successful people come from different backgrounds and while some have university degrees, others have never finished high school. 
To reassure you that an education doesn’t equal a financial fortune, here are a few multi-millionaires who never graduated from college: Bill Gates (Microsoft), Michael Dell (Dell Computers) and Steve Jobs (Apple). The truth is you can do whatever you want; not being smart enough is just another excuse.
 
Myth #5: Investing is complicated
Developing your own financial freedom is only as complicated as you make it. Sure, gaining the knowledge to become financially independent is challenging; but many new things seem more difficult than they are until you develop an understanding of them. 
Investing is no different. 
Now it’s easier than ever before to learn the fundamentals of wealth creation, with limitless tools available in today’s high-tech, info-laden world. The key is to learn from the right people – those who’ve already achieved what you want to achieve. The process is also simplified when you select an investment niche such as residential property investment and develop specialist knowledge in that area. 
Myth #6: Investing is risky
The dictionary definition of “invest” is: “To commit (money or capital) in order to gain a financial return.” The word “risk” doesn’t even get a look in. 
However, many people speculate when they think they are investing – they buy a property in a secondary location or off the plan “hoping” it will increase in value. Speculation is risky. 
On the other hand, finding a property with an element of scarcity so it will always be in strong demand, in an area that has always outperformed the averages and buying it below its intrinsic value, is a proven investment strategy that minimises your risk. 
Myth #7: You have to know how to time the investment markets
It’s often said that timing is everything when investing, but that’s not really the case. 
Sure timing matters - you don’t want to buy property at the peak of the boom, but successful investors find that timing isn’t really that important. Have you noticed how some investors do well in good times and do just as well in bad times, while others do poorly in good times and even worse in bad times? 
The truth is successful investors know how to create wealth at any point in the property cycle while unsuccessful investors manage to lose money at the same stages of the cycle. This suggests to me that it's not our external world that determines whether we make money; it's our mindset.
 
Next week, I’m going to share another eight wealth myths that tend to hold back ordinary Australians from reaching financial freedom. 
The good news is that as you become aware of these myths, you can do things differently. You can choose to change your beliefs and produce outrageous results and reach every goal you set.
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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Seven wealth myths that hold you back: Michael Yardney

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G7, 199 Pyrmont Street, Pyrmont, NSW, 2009
<img src="/images/stories/pyrmont1.jpg">
The tenants of this two-bedroom Pyrmont apartment are paying $730 per week and are on a lease until September this year. Within the Casino Gardens building, the apartment includes an internatl laundry, and the building has a swimming pool and gym. It is within easy walking distance of Darling Harbour and the CBD.
Kho and Lee Property Group agent Sami Yildiz<a href="https://www.khoandlee.com.au/properties/557124/details" target="_blank"> is marketing the property</a> with price hopes in the "early $600,000s". If it sells for $600,000 that would secure an investor a gross rental yield of 6.3%, significantly above the indicative gross rental yield for Pyrmont units of 5.1, 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 $12,000 and over five years to be $42,000.
The median unit price in Pyrmont fell by 4.3% in the past year, according to RP Data.
The property will be open for inspection Saturday, May 5 at noon and will go to auction Saturday, May 26 at 11.30am. 
For more about prices and yields in Pyrmont, see the RP Data suburb page.
 
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1 Harcourt Street, Blackburn North, VIC, 3130
<img src="/images/stories/harcourt1.jpg">
Although this property is in need of renovation, it is currently returning $310 per week, with a rent increase to $320 per week about to take effect. The tenants are on an expired lease but are keen to stay on. The block is 516 square metres and could be suitable for redevelopment. It is within easy walking distance of North Blackburn Square Shopping Centre, Blackburn High and Old Orchard Primary. It has excellent access to the freeway.
Noel Jones agent Tim Penhalluriack<a target="_blank" href="https://www.noeljones.com.au/property-details/3931451/"> is marketing the property</a> with price hopes of $420,000 plus. If it sells for $420,000 that would secure an investor a gross rental yield of 4%, above the indicative gross rental yield for Blackburn North houses of 3.2%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. The median asking rent for Blackburn North houses is $380 per week.
<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 $3,000 and over five years to be $5,000.
The median house price in Blackburn North fell by 6.7% in the past year, according to RP Data.
The property will be open for inspection Saturday, May 5 at 10am and will go to auction Saturday, May 19 at 10am.
For more about prices and yields in <a target="_blank" href="/news">Blackburn North, see the RP Data suburb page.</a>
 
 
 
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Friday form guide: Yields of up to 6.3% in Pyrmont

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Bids closed this week for the Mantra Group offering by private equity firm CVC Capital Partners.
The hotel and resort owner-operator Mantra Group could reportedly fetch somewhere more than $400 million, according to the Australian Financial Review, or more than $600 million, according to the Sydney Morning Herald report. The Australian comes in with a $520 million estimate.
Archer Capital is reportedly among the bidders, along with potential trade buyers including the French giant Accor, which secured Mirvac Hotels &amp; Resorts in 2011. The publicly listed Amalgamated Holdings, and global players InterContinental Hotels Group and Stamford Land Corp, has been included among possible buyers.
CVC appointed UBS, a 40% co-owner of Mantra, as an adviser on the sale.
The Mantra Group operates more than 130 hotels and resorts across Australia and New Zealand.
Mantra’s earnings before interest, tax, depreciation and amortisation for 2012 will come in at $60 million, up from $45 million three years ago, according to the information memorandum.
A larger proportion of Mantra’s earnings now come from the CBD market.
 
 
 
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Bids close for resort owner-operator Mantra Group

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The rental vacancy rate for Melbourne in March was 2.3%, a slight rise compared with the 2% recorded in December, according to the Real Estate Institute of Victoria.
It’s been sitting above 2% for 10 consecutive months, the first time since 2005.
REIV chief Enzo Raimondo says the level of vacant properties is “reasonably consentient” in the suburbs between zero and 20 kilometres from the CBD, with the inner-city vacancy rate at 2.3% compared with 2.4% in December.
The middle suburbs’ vacancy rate sits at 2.3%, compared to 1.2%.
“It is also clear that there is a higher level of vacancies in the suburbs within four kilometres of the CBD,” he says.
In regional Victoria the vacancy rate is 1.6%, continuing the trend of fewer vacant rental homes compared with Melbourne.
Of the three main regional centres, Ballarat now has the lowest level of vacancies, with 0.5% compared with 1.3% in December.
Bendigo, which has been below 1% for just under a year, has a vacancy rate of 0.9% compared with 0.5% in December.
“In both cases vacant rental homes are in short supply,” Raimondo says.
Geelong is more similar to Melbourne, with a vacancy rate of 2%, which has improved substantially for renters from the 0.9% recorded in December.
 
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Melbourne rental vacancy rises slightly in March: REIV

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I often speak with investors, and the question about how much deposit should they put into a property purchase and how much cash they should keep as a buffer often comes up in the discussions. What many investors fail to realise is the contribution that mortgage insurance can make to the creation of wealth. Most just see it as another expense.
So what is mortgage insurance and why and when should you consider using it?
Mortgage insurance is a one-off charge that is paid by the property purchasers who borrow more than 80% of the purchase price in the case of full-doc loans and 60% in many cases on low-doc loans.
It can be the valuable tool that can help you achieve your goals much sooner.
Consider the comment I often hear from property investors: “Why would you want to incur an extra cost?” As a result most try to avoid paying mortgage insurance, which they view as an impost by the lender.
What some investors fail to recognise is that in some instance it can be a very valuable tool that gives them more leverage and enables them to grow their asset base faster.
For example, two investors have the same $100,000 to use a deposit but each approaches mortgage insurance slightly differently:
Investor one wants to avoid paying mortgage insurance and takes a conservative approach purchasing a property for $400,000. With a loan at an 80% LVR or $320,000 the $100,000 covers the 20% or $80,000 deposit + $20,000 to cover stamp duty, legals, etc.
Investor two take a different approach and is happy to gear up to 90% and pay the mortgage insurance costs.  This allows for the purchase of two properties at $300,000 each. Now the $100,000 deposit covers the 10% or $60,000 deposit + $30,000 to cover stamp duty, legal etc, and leaves the investor a buffer of $10,000 in cash. To be fair it has cost 1.22% of the loan amount of $540,000 or $6,588 in mortgage insurance to secure the extra funds. This is explained in the table below.
However, if in the first year of ownership those properties go up by 5% the mortgage insurance has allowed the investor to purchase an additional $200,000 in property that has now increased in value by an additional $10,000, which is more than enough to offset the cost of the initial premium.
So how does lenders mortgage insurance (LMI) work? Firstly is should not be mistaken for mortgage protection Insurance, which covers the loan repayments on your mortgage in the event of death, sickness, unemployment or disability. LMI protects the lender against a loss should you default on your loan. For example if the security property is required to be sold as a result of the default, the net proceeds of the sale may not always cover the full balance outstanding on the loan. In this case, the lender is entitled to make an insurance claim for the reimbursement of any shortfall, calculated in accordance with the terms of the insurance policy. The mortgage insurance companies will then generally pursue the borrower to recover these funds.
With a normal 80% lend, it is fairly unlikely that there will be shortfall after the sale of the property and as a result most lenders will take on this risk. However as the loan-to-value ratio (LVR) rises, the borrower is required to contribute less deposit. The possibility of the property being sold at mortgagee sale and the proceeds not being enough to cover the loan also rises. As a result the lenders look to avoid this risk by insuring the loan against this possibility.
As the risk is now taken by the Mortgage Insurance company they also look to match the insurance premium to the level of risk. As a result mortgage insurance is charged on a sliding scale so for example if your loan to value ratio (LVR) is 84% you will pay less mortgage insurance than if you are borrowing 95%.
For example on a $300,000 loan you could expect something like the following scale.
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="205" valign="top">
LVR Band
</td>
<td width="205" valign="top">
Premium as a percentage
</td>
<td width="205" valign="top">
Approximate Cost
</td>
</tr>
<tr>
<td width="205" valign="top">
80.01% to 82%
</td>
<td width="205" valign="top">
0.41%
</td>
<td width="205" valign="top">
$1,230
</td>
</tr>
<tr>
<td width="205" valign="top">
82.01% to 84%
</td>
<td width="205" valign="top">
0.61%
</td>
<td width="205" valign="top">
$1,830
</td>
</tr>
<tr>
<td width="205" valign="top">
86.01% to 88%
</td>
<td width="205" valign="top">
0.91%
</td>
<td width="205" valign="top">
$2,730
</td>
</tr>
<tr>
<td width="205" valign="top">
88.01% to 90%
</td>
<td width="205" valign="top">
1.22%
</td>
<td width="205" valign="top">
$3,660
</td>
</tr>
<tr>
<td width="205" valign="top">
90.01% to 92%
</td>
<td width="205" valign="top">
1.68%
</td>
<td width="205" valign="top">
$5,040
</td>
</tr>
<tr>
<td width="205" valign="top">
92.01% to 94%
</td>
<td width="205" valign="top">
1.89%
</td>
<td width="205" valign="top">
$5,670
</td>
</tr>
<tr>
<td width="205" valign="top">
94.01% to 95%
</td>
<td width="205" valign="top">
2.10%
</td>
<td width="205" valign="top">
$6,300
</td>
</tr>
</tbody></table>
 
Also because the frequency of defaults can vary depending on the lender it is also worth noting that the amount charged can vary significantly from lender to lender, even given the same loan-to-value ratio, so it can pay to shop around.
Some lenders also pay a part of the mortgage insurance costs to a point and some, like Westpac, CBA and ING, have their own mortgage insurance for some loans. Some lenders even switch between mortgage insurers depending on who has the lower cost premium. So if you are going to go down this track it is important to speak with your mortgage broker about which lender is best for you circumstance.
So while at first glance mortgage insurance can appear to be an unnecessary expense charged by the lenders. The plain fact is that avoidance of LMI at all costs can be a false economy, which ultimately curbs the acquisition of further growth assets. If you are truly treating your property investing as a business it can be seen as just another cost of doing business. So if you are one of those investors who have resented LMI in the past, take another look. It could prove to be a valuable tool that can help you achieve your goals much sooner than you thought.
Albertus Waldron is finance strategist and partner at<a target="_blank" href="https://www.chan-naylor.com.au/"> Chan &amp; Naylor</a>
 
 
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How buying lenders mortgage insurance can allow you to grow your property assets faster

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I don’t know about the rest of the industry, but here at Cooley Auctions we are pretty pleased that April is behind us. The data to come out of April shows that low volume and a genuine lack of quality properties on the market can have a direct impact on prices, clearance rates and buyer activity. We expected a lot more property to begin coming onto the market after the Easter break, but it seems school holidays and the Anzac Day public holiday has all but written off April as a month that many would like to forget.
The big positive to take out of the last couple of days is the Reserve Bank of Australia’s decision to lower the cash rate by 50 basis points to 3.75%, effective May 2, 2012. It’s no secret that economic conditions have been weaker than expected and the recent inflation figures released show that it has moderated. While we don’t feel that the RBA’s decision will spur on an immediate market recovery, it is a move in the right direction for borrowers and agents alike. The message for buyers right now is buy immediately because when the market bounces back it will bounce back at a pace that will be difficult to keep up with. Vacancy rates remain strong and interest rates are low. It is an exceptional time to be buying.
Too often we can get caught up in “the market”. The market is what it is and we shouldn’t make excuses based on a slower market. Hunger is the key ingredient in the success of any agent, and hard work, making calls and being proactive should drive your business. Be inspired by the people you look up to. Model the agents who are succeeding and leave the negativity for someone else. The work you are doing today will have a direct reflection on your results this winter and spring.
<ul>
<li>Even Channel 7 News couldn’t resist coming along to this one bedroom apartment in the heart of the Sydney CBD at 282/569-581 George Street Sydney. It sold at auction for $408,000 through Alan Cheung, LJH Chinatown. Auctioneer: Paul Millett</li>
<li>This five-bedroom home held in the same family for over 130 years at 20 Tantallon Avenue, Arncliffe attracted terrific interest and seven registered bidders when it sold well above reserve for $980,000 through George Kambouroglou, Raine &amp; Horne Rockdale. Auctioneer: Andrew Cooley</li>
<li>In front of a huge crowd and Channel 9 News this immaculately presented federation home set on approximately 556 square metres of land at 50 Monash Road, Gladesville, sold at auction for $96,000 above reserve when it sold for $1,076,000 through Matthew Shepherd &amp; Nick Bedford, Belle Property Beecroft. Auctioneer: Nick Cleary </li>
</ul>
Ideally located across the road from Nagle Park and just a short level walk to Pacific Square, this well-presented two-bedroom home at 97 Hannan Street, Maroubra, sold at auction for $810,000 through Cameron Airlie, Ray White Maroubra/South Coogee. Auctioneer: Ricky Briggs
Commercial sector
<ul>
<li>A medical centre moments from Liverpool CBD, hospital and train station with a current net income of approximately $75,700 per annum at 8 Speed Street, Liverpool sold at auction for $860,000 through Miron Solomons, City Commerical Property. Auctioneer: Damien Cooley\</li>
<li>A cracking result was achieved for this funky warehouse at 12 Clevedon Street, Botany. It sold at auction for $1,186,000 through Keegan Ridings &amp; Sam Brewer, Jones Lang LaSalle. Auctioneer: Damien Cooley</li>
<li>A ground-floor shop leased to Pizza Hut and three-bedroom apartment freshly renovated at 232 Marrickville Road, Marrickville, sold in the Cooley Auction Centre Inner West for $1,080,000 through Colin Tseris, R T Golby (Realty).Auctioneer: Ricky Briggs</li>
<li>A prized blue-ribbon estate set over 2.5 acres (1.01 hectares) at 3 Pembury Close Denham Court sold at auction for $1.75 million through Fab Dalfonso, Colliers International. Auctioneer: Bram Page</li>
</ul>
 
Damien Cooley is the founder of <a href="https://www.cooleyauctions.com.au/" title="Cooley Auctions" target="_blank">Cooley Auctions</a>
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