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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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There are some very simple steps which could reduce the cost of Sydney apartments by about $60,000 – from, say, $550,000 to $490,000. Many of the steps also apply to Melbourne. If the steps were taken it would also provide a fantastic boost to the Sydney construction industry, which is now struggling. If we do not take these steps then Chinese buyers will purchase the vast bulk of inner-Sydney apartments. Here are my six steps: 1) In inner-city areas we need to recognise that five-to six-storey apartments are uneconomical. We must change the culture and build apartment blocks with 12 storeys or more. These large apartment blocks are the only solution to the dwelling shortage because outer suburban cottages require too much land and too much infrastructure. Worse still, the home buyers are forced to spend too much money on transport and too much effort is required to go to work and come home. 2) We need to streamline the approval process, which currently can take can take two to three years even when an application complies with all the controls.  3) The state government advisory document called SEPP 65 stipulates strict requirements for the number of units requiring light into the living rooms, which leads to the incorporation of far too many two-storey crossover units. These are not favoured by the market and add enormous cost to a development. 4) The New South Wales Land &amp; Environment Court takes far too long to hear cases and then far too long to hand down decisions. In any event, the majority of decisions seem to be in favour of councils and against developers. It’s a huge burden on the cost to the buyer. 5) Section 94 contributions, which are charged by individual councils, must be fixed at a maximum of $20,000 per apartment and should include all works required by councils and other authorities to the roads and utilities surrounding a development site. These should be payable at occupation of development. 6) Affordable housing levies, where they exist, should be abolished as this is purely a tax on development and the provision of affordable housing is a burden which should be shared by the entire community, not just the development industry. Australian buyers are back in the market but they are being forced to pay unnecessary costs. Lower interest rates will increase Australian buyers but supply is artificially being held back and the costs boosted by state and local governments. Harry Triguboff is managing director of the <a target="_blank" href="https://www.meriton.com.au/">Meriton Group.</a>
This article originally appeared on <a target="_blank" href="https://www.businessspectator.com.au/">Business Spectator.</a>
 
 
 
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Harry Triguboff’s six steps to apartment affordability – starting with more high rise

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With less than three weeks to go until the Queensland government ends its $10,000 building boost scheme and only months remaining on a number of other state incentives, the majority of Australia’s biggest industry players believe government incentives still have a role to play in stimulating residential development.
Nearly nine out of 10 (86%) of the valuers, funds managers, property analysts and mortgage lenders who took part in the latest API Australian Property Directions Survey rated government incentives as moderately to extremely important.
More than a third (39%) rated them as extremely important, and nearly half (47%) as moderately important.
Only 14% of those surveyed saw no role for government incentive schemes.
Those surveyed included all the major banks, property groups Jones Lang LaSalle, Colliers International, CBRE, Cushman &amp; Wakefield and Chesterton International and listed fund mangers <place><placename>Colonial</placename><placename>First</placename><placetype>State</placetype></place> and Investa.
The Queensland building boost is set to end on April 30, having already been extended once – it was originally due to expire on January 30 this year.
<a href="https://www.propertyobserver.com.au/resources/government-property-grants-and-stamp-duty-concessions-the-expiry-dates-you-need-to-know/2012041054208">Four schemes are set to expire on June 30 and another two on July 1</a>.
However government incentives also tend to bring forward demand and create vacuums in the future,<a href="https://www.propertyobserver.com.au/residential/victoria-to-miss-out-on-first-home-buyer-pick-up-and-churn-factor-bis-shrapnel/2012032053939"> as noted by BIS Shrapnel in its recent forecast reports</a>.
“We started to see a pick-up in NSW And Western Australia towards the end of last year, which was emphasised by the expiration of stamp duty exemptions for existing properties,” BIS Shrapnel senior manager Angie Zigomanis said at the March 2012 Building Industry Prospects conference.
“But it is still weak in Victoria, and one of the reasons why it is still weak is because the state government has tended to keep the first-home buyer incentives fairly elevated, which has pushed forward demand.”
 
 
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Government housing grants and tax breaks rated important for housing as deadlines loom: API survey

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Victorian borrowers feel more comfortable about their level of long-term debt than borrowers in the other states and territories, according the ING Household Financial Wellbeing Index.
Victorian borrowers scored 5.8 out of seven in this category, up from 5.5 a year ago.
A score of one indicates “very uncomfortable” and a seven indicates “very comfortable”.
Victoria scored above the national average of 5.5 and higher than NSW/ACT (5.6 up from 5.4 a year ago), Queensland (5.6 up from 5.4) and WA (5.6 up from 5.4).
South Australians feel least comfortable about their level of mortgage debt, with a comfort rating of 5.4. It is the only state to record a decline in mortgage comfort, down from 5.5 a year ago.
Victoria has the lowest percentage of borrowers (34%) paying extra on their mortgages, with the highest proportion found in WA and Queensland (46% paying extra on their mortgages).
Overall borrowers are more comfortable with their level of mortgage debt than they were a year ago, with the national index rising from 5.4 to 5.6.
The survey, which is based on the responses of 1,015 households between March 27 and April 2, 2012, found that the vast majority (93%) of households are comfortable with their home loan, with 63% “very comfortable” – the highest level recorded since the third quarter of 2010.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/ingapril18.gif"><img src="/images/stories/ingapril18thumb.gif"></a>
 
Four out of 10 (40%) mortgage holders are paying off their loan ahead of schedule, according to the survey.
The survey found that nearly a third (31%) of households have share market investments (up from 24% in the fourth quarter), while more than half (51%) of households have no assets or investments outside of the family home.
The median value of total assets in each household (including equity in the family home) is $306,993.
One in five (21%) households say that they don’t have any investments or assets at all.
Long-term assets remains a weak spot of financial wellbeing, with 28% of households saying they are “very uncomfortable” with their level of investments and long-term assets, down from 31% in the fourth quarter of last year.
Nationally however there has been a slight increase in the numbers of households owning long-term investments – 17% own a rental property, up from 15% three months ago, and 31% hold sharemarket investments, up from 24%.
The overall Household Financial Wellbeing Index reached 106.9 in the first quarter of 2012 up from 105.6 in the fourth quarter of 2011.
Although this is below the reading of 107.5 achieved on inception of the index in the first quarter of 2010, it confirms an ongoing uptrend in financial wellbeing since the index plunged in the first quarter of 2011.
 
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Victorian borrowers most comfortable with level of mortgage debt: ING Household Financial Wellbeing Index

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The Real Estate Institute of NSW has proposed several options to the state government in order to encourage first-home buyers into the market. One such scheme would allow first time buyers to pay off their stamp duty over a three-year period, making it less costly for them at the time of purchase, if adopted.

Since the laps of the stamp-duty waver for first-home buyers at the end of last year, many would-be first timers have been stalled in order to save up to meet their stamp duty obligation, resulting in a drop in first home buyer activity since.

Marketing consultant Michael Willcocks, 28, who missed out on the stamp duty relief late last year could envision getting into a property much sooner, should a stamp-duty ‘lay-by’ scheme be put in place. 

“It would cut out several months of saving up the stamp duty and get me into a property sooner,” he says. 

With housing affordability a pressing issue for first-time buyers, such a scheme would reduce the initial cost of getting into a property by spreading this out over 36 months. The adoption of a stamp-duty ‘lay-by’ scheme would surely encourage more first-time buyers to get into the market. 

Currently, there is only the original $7,000 federally-supplied first-home owners’ grant on offer, which applies only to pre-existing properties and therefore does not push for the construction of new dwellings. 

We already have a housing shortage in Australia, which is expected to fall short by over 150,000 dwellings by the year 2020, going by figures released by the Housing Industry Association last year. 

Setting out schemes that drive construction of new homes and encourages new buyers into the market would benefit both the construction and real estate industry.

Other schemes presented to the state government by the REINSW look at concessions for buyers over 65 in an aim to make it easier for them to down-size their homes.

Introducing new legislation that works toward the reduction of our housing shortage, increases affordability and hence home ownership, combined with further interest rate cuts would create an up-swing that would strengthen the property market and our economy.



Robert Projeski is a leading property finance expert and the founder and managing director of <a target="_blank" href="https://%20www.amo.com.au">Australian Mortgage Options</a>. He has appeared on radio and TV and written extensively on property and finance matters.


 
 

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Stamp duty ‘lay-by’ scheme could help first-time buyers get into the market

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One of the most commonly accepted wisdoms about property management is that landlords are price sensitive and that a business has to compete on fees.
I reject this outright. Before going into it, I ask that you first print out a copy of your management agreement and have a read of it with fresh eyes.
Most management agreements follow the same formula. Someone has gone off and read the legislation and faithfully copied out the fields that the law says must go into each agreement. For example, in NSW, an agent may specify whether or not the agency will do routine inspections, and whether they will disburse money to owners. The agency has to specify whether bills will be paid on the owner’s behalf.
Curiously, the fee section of the agreement is in another part of the agreement. It sits by itself, crammed into a corner. Most agents write “See Schedule X” and then copy out the standard agency fee card into that schedule.
Now, with these documents in hand, imagine you are a landlord negotiating the services your agency will provide. Imagine too that you have three different proposals from three different agencies.
We have ended up in a situation where the core document that sets out what you will do for a landlord is identical to every other agency. Of course, you and your competitors will have ticked all the required boxes. Yes, you will do inspections. Yes, you will disburse money. These are, in practice, non-negotiable. To a landlord, you’re all offering the same service.
Worse, the only part of the agreement that is subject to any negotiation is the fee card. No other part of the agreement can logically be changed or negotiated.
No wonder that landlords choose to negotiate fees – there is nothing else to discuss!
I believe we have been poorly served by these standard forms. They have set things up so that we are forced to negotiate on fees only. Much better to start again and negotiate service levels. You want daily disbursements? Fine, that will be more. You are happy with monthly disbursements? Fine, that will be less. You want three inspections a year? Fine, that will be an extra $50 per inspection. You want photos with the inspection? OK, that will be an extra $25 per inspection. Want us to pay your bills? No problem, that will be $1 per bill processed.
Each service you provide, and the level to which you promise to provide it, should be negotiated as a whole. It doesn’t make sense to negotiate fees without regard to the service level you promise. To do so just corrupts the whole negotiating process and leaves everyone worse off.
I believe the future of our industry will be unlocked when agencies move beyond fee cards and start designing genuine service packages that are tailored to the different types of landlords. Some landlords will want some services and will pay for them, others won’t. Each landlord will choose a service package that works for them.
I know this is the future for our industry because it has, or is happening, in every other service industry. I don’t know a restaurant that lets you order what you want but then charges everyone the same. I don’t know an airline that is afraid to charge more for a business class seat and then serve different food in each cabin. Why should it be any different for us?
How to move to this world? Start by throwing out the management agreement template you have and start again. Think about a logical set of service offerings that you can provide and price them to perceived value, not to cost. Be creative in the way you charge for services, and be prepared to move beyond a simple “percent of rent” fee that covers everything. And get rid of the fees and charges mentality.
Ben White is non-executive director at <a target="_blank" href="https://www.raywhite.com/">Ray White</a>. He will be presenting at the <a href="https://wealthconference.com.au/" target="_blank">Wealth Conference </a>on June 3 and 4 on the Gold Coast, a property management conference. 
 
 
 
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Property managers should offer different levels of service for different fees

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Getting into the property market for the first time is tough, there’s no doubt, but there are many factors impacting on why people view this as a major problem.
 
High expectations
Gen Y are living at home longer than ever before. They are saving longer and accruing bigger deposits. Interest rates are low. So why can’t they afford to buy? 
In many cases it’s not that they can’t afford to buy property, it’s that they can’t afford to buy what they want. Expectations are too high. Many people expect to be able to buy a reasonable property in a desirable location close to the lifestyle amenities they want. This, obviously, is very difficult. There is a sense of wanting to have it all straight away. Australian households are paying more than they can afford for housing, with more than 740,000 renters and over 380,000 mortgaged home owners reporting significant financial stress. Sometimes you just have to take baby steps. 
This aversion to moving out of the inner city (where the lifestyle amenities are) is going to lead to a generation of renters, and the Aussie dream of home ownership will be sacrificed for lifestyle. This of course, will push up rents because of the simple rules of supply and demand. 
More than 75% of Australians live in and around our major cities along the eastern and south-eastern coastal areas. And that’s where they want to stay. The limited land available in these locations, along with a growing population of buyers and immigrants, naturally puts pressure on Australia’s metropolitan prices.
Small will become the new big
That leaves two options: a bigger property in an outer-ring location, or a (much) smaller property that is more centrally located. Gen Yers are willing to sacrifice space for location, so will more and  more opt to live in high-density housing (apartments, etc.) that are located close to where they work and play than a bigger place further out.
Governments will need to help out
If affordability issues are pushing people to the ‘burbs, governments will need to create business activity centres where people can work close to home in the outer areas. Lack of infrastructure is still a problem in many outlying areas, and this is preventing people from wanting to relocate to outer-ring suburbs.
In addition, the federal government should be looking at introducing a flexible and secure savings scheme for first-home buyers that is tax free and places no limits on the entry or exit time frames and amounts held in the account. This would go a long way to assist first-home buyers.
Banks need to drop interest rates
Banks will also need to play their part in solving the affordability crisis. The Reserve Bank does its bit to keep rates low and try to stimulate the economy but it’s up to individual banks to pass on those rates to consumers. The GFC, the lending crisis in the US and the experience in parts of Europe have left our banking sector overly cautious when it comes to lending. It’s harder now to get a loan than it has been in a long while. Although I don’t agree with the former US approach of basically handing out an unsecured loan to anyone who asks, if lending criteria were loosened up a bit more people would be able to jump into the property market much more easily.
We have to remember, however, that overall, interest rates are a lot lower than they were 20 years ago. Gen Y didn’t live through that. They don’t understand the pressure of the threat of losing your family home to the bank. 
Housing isn’t that expensive
Speaking of the rest of the world, on international standards, housing is Australia is still relatively affordable. 
If affordability was a real issue, then why do we have so many investors continuing to buy up residential property?  Again, the issues lies with first-home buyers, not the market overall. 
Growth is good!
We want our economy to grow and we want our property market to grow with it. It’s good for the whole country. Many people are doing very well investing in property and will continue to do so. Ultimately, people need to lower their expectations, bite the bullet and start off with a property they can afford while still making a good purchase decision in terms of potential for capital growth. There are lots of great, affordable properties out there. You just need to be prepared to live in one of them!
Melissa Opie, aka “The Property Lady”, is  a multi-award-winning buyers’ advocate, bestselling author and managing director at <a href="https://www.kpi.net.au/">Keyhole Property Investments</a>.  The team at KPI act for investors and owner-occupiers Melbourne wide from $400,000 to $5,000,000. You can follow <a target="_blank" href="https://twitter.com/thepropertylady">“The Property Lady” on Twitter.</a>
 
 
 
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Housing is not too expensive, but Gen Y expects to have it all

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Aussie Home Loans executive chairman John Symond has warned a standard 0.25 percentage point easing by the RBA at its May meeting would not be enough, given the banks have lifted home loan rates since the last cash rate cut in December.
“We have a situation where since Christmas we have had two increases by the banks out of cycle. So, 25 basis points is just playing catch-up for the punter,” Symond suggests.
“If the Reserve Bank wants to make a difference and instil confidence, they now have to go more than 25 basis points and go 50 basis points,” Fairfax Media reported Symond as saying today.
Last month the Aussie Home Loans founder said the RBA was “a bit out of touch by not accepting that parts of the economy, especially small businesses, is doing it really tough at the moment”.
“As well as the Australian economy has performed relative to other economies, we could easily get into the situation where the economy could stall,” warned Symond.
“We need an injection of good news and an injection of confidence – the best way to do that is to start dropping interest rates.”
 
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John Symond says only 50-basis-point RBA interest rate reduction will cut it for borrowers

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The minutes of the April RBA board meeting have strengthened the case for a rate cut at the May 1 meeting, according to Westpac.
“We are confident that the RBA will deliver a 0.25% rate cut on May 1," Westpac chief economist Bill Evans suggests, based on his expectations that the underlying first quarter 2012 inflation data, due for release April 24, will be 0.6% for the quarter and 2.3% for the year, down from 2.5% in quarter four in 2011.
Westpac suggests the data could provide the RBA with ample scope to cut rates again in June or July given the sentiment of the minutes particularly in recognising the sharp regional and sectoral differences in the economy and the likely impact of a significant fiscal tightening.
The minutes gave a number of additions to the bank's insights around the current economic environment, the Westpac chief economist notes.
“Firstly, stronger emphasis is given to the divergences between sectors and regions in the economy.
“Whereas the governor referred to ‘differences’ these minutes refer to ‘sharp differences’,” Evans notes.
The analysis of the minutes by Westpac also noted there was recognition that "the level of non-mining investment had been flat over 2011, and recent surveys of business intentions suggested that non-mining investment was likely to remain sluggish for some time".
Noting the RBA members spent some time exploring reasons for the weakness in many of the indicators for housing turnover and building activity, Westpac concluded the minutes did not go so far as to question why there appears to have been only muted response to the recent rate cuts.
“But one can sense some degree of frustration in the likely discussion,” Evans says.
Westpac also suggests the RBA attitude towards the labour market appears to have become more realistic.
“In previous discussions the emphasis has been around the unemployment rate alone whereas the board now points out that "an easing in average hours worked and a decline in the participation rate were indicative of a softer labour market than that implied by the unemployment rate".
Evans was also encouraged to see that the board had made special note of the Westpac-Melbourne Institute index of unemployment expectations by noting that "household concerns regarding future unemployment (were) at their highest level since mid-2009".
“Probably the most surprising aspect of these minutes was the direct comment on fiscal policy,” Evans says.
“The bank specifically points out that economic conditions will be impacted by ‘significant fiscal tightening in the next few years’.
“Despite the government indicating the intention to return the budget to surplus from a deficit of around $40 billion we cannot recall the bank specifically referring to fiscal tightening in previous statements.”
“The message from the governor's statement on April 3 was that there was scope to cut rates as long as the inflation report indicated that inflation pressures remained benign.
“This message has been repeated with the additional dimension of indicating that slower growth could be expected to result in a more moderate inflation outcome.”
Finally, Bill Evans notes there was an extensive discussion at the April RBA board meeting on the funding costs of banks.
“The importance of term deposits to the banks' overall funding profile has been emphasised.
“Recall that the bank has noted that ‘since the middle of 2011 there has been a further increase in banks' funding costs relative to the cash rate of the order of 20-25bps’.”
Westpac notes that the mismatch was explained in terms of the general principle that the RBA cash rate had become a less important influence on the banks' funding costs due to competition for deposits and the increased costs of term funding.
 
 
 
 
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RBA April board meeting minutes strengthen case for May interest rate cut, and another: Westpac

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The Reserve Bank of Australia kept rates on hold at its April meeting despite spending “some time” exploring reasons for the weakness in many of the indicators for housing turnover and building activity across Australia.
But taking into account other factors, the board decided a month’s delay in any further cutting of rates was the prudent thing to do.
“They noted the apparent sensitivity of developers to the outlook for dwelling prices,” <a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/monetary-policy/rba-board-minutes/2012/03042012" target="_blank">the RBA minutes note.</a>
“New dwelling construction had fallen in the December quarter and there was little sign of a pick-up in building or loan approvals, though house prices had shown some signs of stabilising recently.
“While auction clearance rates in Sydney and Melbourne had picked up a bit of late, they remained below their average levels,” the RBA minutes note.
But the board, noting it had eased monetary policy late in 2011, concluded slower growth in demand could be expected to result in a more moderate inflation outcome, which might then present a case for a further easing of monetary policy.
“The board would have the opportunity at its next meeting to review the inflation outlook based on comprehensive new data on prices, as well as information on demand and output.
“Members judged it prudent to evaluate those data before considering a further policy adjustment,” the minutes conclude.
The board noted indicators of business activity had been mixed, labour market conditions remained subdued, and that world economy growth was at a below-trend pace with the moderate expansion of the US economy continuing but economic conditions in several European countries remaining very weak.
 
 
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Housing industry downer not quite enough as RBA awaits security blanket of benign inflation data

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The Reserve Bank has come under fire from Channel 7 Sunrise host David Koch for not taking swifter action in response to the current challenging market conditions and plans by the federal government to deliver a surplus in the May budget.
“I’ve been a big fan of the Reserve Bank and the way it handled the global finance crisis.
“But I’m concerned the RBA board has been too slow in responding to the recent downturn,” says Koch in his latest blog post, written before the latest RBA minutes were released.
“If the federal budget is contractionary then interest rate settings have to be expansive to compensate.
“And they have to move quickly and decisively,” he says.
Koch has criticised the RBA despite naming Stevens as one of his “idols” in a list that includes Meriton boss Harry Triguboff, rap star Nelly and his own father.
Koch even includes a photo of himself smiling alongside a typically dour-faced Stevens, whom he describes as the “perfect type of person” to lead the central bank.
“The self-proclaimed ‘most boring person in Australia’, [Glenn Stevens] is the ultimate finance nerd. A man with immense intellect, he lives and breathes the job but is very conscious of the responsibility the role brings,” writes Koch on kochie.com.au.
According to Koch, the RBA cannot afford to be slow to react when the federal government is looking to cut spending in the next budget.
“The next six months could be a dangerous time for the economy and the financial health of Australians.
“Because if the federal government and the Reserve Bank don’t get it right, it could prove to be tipping point for the economy to slide in to a recession,” he says.
Kochie warns that there are signs that the resources boom is slowing (two consecutive months of trade deficits) and it “may not be able to offset the sluggishness of the lower speed sectors of the economy”.
Furthermore, he says, “consumers continue to borrow and spend less but save more as they continue to stay in the bunker”.
Figures released by the ABS today show that total lending finance fell by 6.5% in February meaning total lending commitments are up just 0.9% on a year ago after being up 3.5% in January.
According to CommSec economist Savanth Sebastian, the slump in lending seems to be gathering momentum.
“On a trend (smoothed) measure, the pace of lending has now fallen for five consecutive months with the 1.7% slide in February marking the biggest monthly fall since mid-2008 – a period that was at the height of the global financial crisis,” he says.
Sebastian says lending finance figures are a forward indicator of spending further down the track with the current lack of lending “clearly a dampener on future activity”.
 
 
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