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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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 days your home is open for inspection are your chance to show it off at its best to prospective buyers. Don’t let anything get in the way of buyers seeing its positive aspects. Your agent may suggest talking to a stylist or home presentation expert who can give you advice on ways you can improve the look and presentation of your home.
1. Clean, clean, clean
Cleaning your property, really cleaning it, is absolutely essential. Many a prospective buyer has been put off a home that looks dingy and unloved. Be methodical — go from room to room and clean every single surface so it gleams. Clean the windows so they are sparkling and let in the maximum amount of light. Get rid of cobwebs high up on the ceilings, and dust every surface as high as you can reach. Should you clean inside cupboards? Yes. People do look behind doors, so at least have items stacked neatly and wipe the surfaces.
Clean until the place sparkles from floor to ceiling. Rid every corner of grime, cobwebs, mildew, stains, animal hair and dust. Polish windows and mirrors until they gleam. You’ll be amazed at how much more light clean glass lets in. Wipe out the inside of cupboards and drawers. Weed the garden, and sweep the front path.
A professional cleaner might be worthwhile getting in for the first big clean. After that, unless you’re very comfortably off, you may need to have a system to give your home a quick clean in the hour or so before buyers come to visit. Don’t forget toilets, the kitchen sink, mirrors and the front porch. And empty the rubbish bins!
2. Repair obvious problems
Even if you have decided not to carry out a major makeover or renovation of your home, you can still ensure that it’s free of any obvious, unsightly problems. Some prospective buyers may not be able to look past imperfections such as stained surfaces or cracked windows, and may wonder if signs of neglect indicate a home that is not in good repair generally. It’s not that you’re trying to pretend there are no problems — and a building inspection will reveal any obvious cover-ups — you just don’t want to confront visitors with them on their very first excursion through your home.
Spend at least a couple of weekends carrying out some basic repair jobs before you open your home for inspection, and perhaps engage a professional if the work is beyond your abilities. Here are some suggestions:
Fill minor wall cracks with plaster and repaint the wall.
<ul>
<li>Replace any broken tiles, and re-grout if necessary.</li>
<li>Check that the plumbing works properly — some visitors to your home will take the trouble to turn on taps and flush the toilets, so make sure there are no easily fixable problems like water hammer or dripping taps.</li>
<li>Resurface or paint over chipped or stained surfaces.</li>
<li>Replace cracked glass or mirrors.</li>
</ul>
3. Spruce up the garden
You don’t necessarily have to carry out a large landscaping job on your garden before you put the property up for sale, but do make sure it’s free of weeds, that the lawn is kept trim and that you prune shrubs and trees into shape. Some pots of colourful flowers or greenery near the entrance and in the backyard — especially around an outdoor entertaining area — will not go astray. You don’t need to go overboard; it should look natural. Keep newly planted shrubs or plants well watered.
Put garden tools away out of sight, make sure any kids play equipment is tidy and clean, and if you have a pet make sure you clean up any unpleasant evidence left on the lawn.
4. Arrange furniture and furnishings artfully
You’ll have already removed all the unnecessary items cluttering up the rooms in your home. But as you come up to inspection day you need to arrange each room so that it looks stylish and is easy to move around for prospective buyers. If you haven’t already had a home stylist advise you on this, now is the time to walk through your home with a critical eye. Each room should contain just enough furniture and ornaments to look lived in and liveable, and no more.
Ensure that the lounge suite is arranged nicely (including artfully strewn cushions), that floor rugs are lying correctly, and that beds are neatly made. Anything left on display, such as ornaments and photos, bathroom items, anything on your bedside table, or on your kitchen bench, should be lined up neatly and arranged in small balanced groups. Straighten up any pictures, as well as drapes and blinds.
Even if you’ve been able to fit a desk and a bookshelf into your bedroom to double as a study area, to prospective buyers this can make the room look crowded. Also make sure buyers on inspection day can move easily around your home without having to push their way around awkwardly placed furniture.
5. Lock up valuables
These days people tend to have to give their contact details before they visit a property that is open for inspection. But there’s no point tempting sticky-fingered guests by leaving out jewellery, electronic equipment or valuable ornaments. The person showing prospective buyers through the property can’t keep an eye on every single person in every single room. And if something does go missing, chasing up every single visitor after a suspected theft is not what you — or your agent — want to be spending time doing.
Hiding your valuables out of sight in drawers or the back of a cupboard is probably enough to deter most opportunistic thieves. Store anything really valuable at the home of a trusted friend, or even in a safety deposit box. Be discreet with information that can too closely identify you or your family members. Don’t leave phone numbers or identity cards (and definitely not credit cards) lying around.
6. Freshen up smells
Bad odours are another big put-off for prospective buyers. You don’t want people walking around your home with a wrinkled nose puzzling over a strange smell. Ideally your home should have little or no smell at all — but if you have issues with damp, or you have pets, you may need to resort to masking a bad odour.
Well before inspection time, open your doors and windows to get as much fresh air into the property as you can. (This may of course not be a great idea if you live close to a busy road, or a smelly factory.) If there are still lingering bad or musty smells, around an hour before inspection time you can either spray some air freshener in the rooms, or use some essential oils to freshen it up. Stick to more neutral smells; vanilla is always good. Don’t overdo it — the idea is to neutralise stale or musty smells rather than overpower visitors with a heady fragrance.
7. Bring in light
Maximise natural light in your home by ensuring the windows are absolutely sparkling clean. You’ll be surprised how much light can be reduced by dust and spots on glass. Remove heavy drapes or blinds if they’re cutting out the available light (you can put them back once you’ve sold the property). You may decide to put in a skylight or an extra window to give extra light to a very gloomy room or corner.
On inspection day, turn on lights in the property — even if it’s sunny outside. Use table or standard lamps to create attractive pools of light. Overhead lights can also be used if a room is otherwise quite dark, or to illuminate special features.
8. Make it warm (or cool)
A warm home gives the impression that it’s lived in and loved. Even if it’s not too cold outside, put the heating on for an hour or so before inspection time just to take the edge off (especially if you’ve been airing the home beforehand). If you have one, a lit fire or gas heater can create a sense of cosiness in a lounge-room or family area.
On hot days, run the air-conditioning if you have it. But only to a level that is refreshing rather than chilly. You may also need to open windows if your home is very stuffy.
9. Place flowers and personal touches
A vase of lovely flowers or two can really lift a room and give it a touch of class. Use whatever is in season in a single colour, or at most two, to complement the colour scheme of the room. Avoid very highly scented flowers. Place one vase in the entrance if you can, and at least another in the living area.
Should you have teacups artfully arranged on the dining table, slippers poking out from under the bed, the smell of freshly brewed coffee wafting through the kitchen? These touches can come across as being a bit stagey and contrived. But an arty book or magazine lying on the coffee table may be a nice detail, and do have fresh towels hanging in the bathroom and fresh tea towels in the kitchen — colour-coordinated, of course.
10. Make yourself scarce
On inspection days you and your family, including the family dog, need to do a disappearing act — usually for half an hour at a time. Have a timetable for each inspection time so everyone is aware of the need to get ready and in the car and out the door well before the prospective buyers turn up. Clear away kids’ toys, pet toys and feeding bowls.
Where should you go? You can visit a friend, drop in to a nearby cafe, or do the shopping. If you really can’t be bothered going too far, you could just park the car out of sight up the street. This can give you the chance to stickybeak at who is coming to visit your property. But be discreet; no one wants to feel like they’re under observation during an inspection.
<img width="100" src="/images/stories/sellingdummies.jpg" style="border-style: initial; border-color: initial; float: left; margin: 5px;">
Karin Derkley is a the former deputy editor of Personal Investor magazine, and continues to write for The Age and AFR Smart Investor. She has also lived through the pleasures and pitfalls of purchasing and renovating her own home. She is the author of Selling Your Home for Dummies, published by <a href="https://au.wiley.com/WileyCDA/" target="_blank">Wiley</a>. The <a href="https://www.dummies.com/Section/index" target="_blank">Dummies brand</a> is celebrating its 21st anniversary in Australia in March. This is an excerpt from Selling Your Home for Dummies.
 
 
 
 
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kerkley-uF6NdMiThS

Ten tips to prepare your home for an open for inspection

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Melbourne-based ME Bank has announced it will leave standard variable mortgage rates unchanged two days ahead of ANZ’s independent rates announcement on Friday.
The decision to keep its mortgage rates on hold follows the RBA leaving the official cash rate unchanged at 4.25% last week.
ME Bank says it is leaving standard variable interest rates unchanged for the third month in a row “despite continued funding pressures”.
However ME Bank CEO Jamie McPhee warned that if “funding costs remain elevated then absorbing these increasing costs cannot occur forever”.
ME Bank currently has a standard variable rate of 6.74%.
This is 62 basis points lower than ANZ, which has the lowest standard variable rate of the big four banks and 72 basis points lower than Westpac, which has the highest standard variable rate of the major banks.
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0">
<thead><tr>
<td width="50%"></td>
<td width="50%">
Standard Variable Rate
</td>
</tr></thead>
<tbody>
<tr>
<td valign="top">
ME Bank Super Members Home Loan
</td>
<td valign="top">
6.74% p.a. Comparison Rate 6.76 p.a.
</td>
</tr>
<tr>
<td valign="top">
ANZ Standard Variable Rate Home Loan
</td>
<td valign="top">
7.36% p.a. Comparison Rate 7.46% p.a.
</td>
</tr>
<tr>
<td valign="top">
Westpac Rocket Repay Home Loan
</td>
<td valign="top">
7.46% p.a. Comparison Rate 7.59% p.a.
</td>
</tr>
<tr>
<td valign="top">
NAB Tailored Variable Rate Home Loan
</td>
<td valign="top">
7.31% pa Comparison Rate 7.44% p.a.
</td>
</tr>
<tr>
<td valign="top">
CommBank Variable Rate Home Loan
</td>
<td valign="top">
7.41% p.a. Comparison Rate 7.55% p.a.
</td>
</tr>
</tbody>
</table>
 
"It's important that we take the lead by acting independently with the needs of our customers and shareholders in mind," says McPhee. "We won't sit idly by and wait for our competitors to make a move when customers need certainty from their bank."
"ME Bank is maintaining our competitive position. Every month, since we became a bank in 2001, ME Bank has provided industry super fund and union members with standard variable mortgage rates lower than those of the major banks. This has not been a short-term pledge.
"While the major banks quickly increased rates and announced mass job redundancies and off-shoring to protect excessive profits, ME Bank did not. We've sought to keep the full burden off customers for as long as possible," says McPhee.
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ME Bank says it will keep its mortgage rates on hold ahead of Friday’s ANZ announcement: RBA rate decision aftermath

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The mortgage market continued to go backwards in February, with the total value of mortgages (excluding alterations and additions) falling 1.3% to $20.29 billion following a 2.3% decline to $20.73 in January.
Over February it became clearer that the withdrawal of first-home buyer stamp duty concessions in NSW for established dwellings brought forward demand.
NSW owner-occupier mortgage commitments fell by 9.4% in February following an 8.5% drop in January.
In December NSW mortgage commitments increased by 8.3% as first-home buyers acted to beat the established home stamp duty concession, which ended on January 1.
This followed a smaller 3.6% rise in November.
South Australia (+2%), Western Australia (0.8%) and Victoria (0.3%) were the only states to record increases in seasonally adjusted owner-occupier mortgage commitments in February.
Investor finance, remains relatively weak but volatile, rising by 4.4% for the month following a 6.8% drop for January.
Fixed loans for investment purposes increased by 4.4% in February to $6.9 billion following a 7.1% decline to $6.58 billion in January.
Westpac senior economist Andrew Hanlan says the February figures show that NSW is "correcting after a sizeable bring-forward ahead of 1 January in response to less favourable stamp duty arrangements while "Queensland [housing] finance softened ahead of the state election".
"Interest rate cuts by the RBA in November and December have so far failed to gain much traction.
"Housing affordability has improved, which acts to boost housing finance. However, this is being countered by a number of negatives: soft labour market conditions, a lack of consumer confidence, stretched housing affordability and global uncertainties.
"Also, commercial banks in February moved independently of the RBA, lifting the average bank standard variable mortgage rate to 7.40% from 7.30%, down from 7.80% as at last October.
"The lack of response from the interest rate sensitive housing sector adds weight to our view that the RBA needs to do more. We expect the RBA to lower rates at the May meeting with a follow-up move in July," says Hanlan
Loans for the purpose of buying a new house continued to trend down with a big 10.4% drop recorded in February following a 6.3% fall in January 2012.
In original terms, the number of first-home buyer commitments as a percentage of total owner-occupied housing finance commitments fell to 17.2% in February 2012 from 20.3% in January 2012.
Between February 2012 and January 2012, the average loan size for first home buyers fell $3,300 to $277,600.
The average loan size for all owner-occupied housing commitments fell $8,700 to $282,800 for the same period, according to February housing finance figures released by the ABS.
This follows January figures, where total mortgage lending fell by 2.3% to $20.73 billion on a seasonally adjusted basis, with the value of owner-occupier housing loans increasing by just 0.1% to $14.15 billion and loans for investment purposes falling 7.1% to $6.58 billion.
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NSW leads national fall in owner-occupier mortgage demand in February: ABS

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A surprise drop in consumer confidence in April sends “a very clear message to the Reserve Bank that Australia needs lower interest rates,” says Westpac chief economist Bill Evans. 
The benchmark Westpac Melbourne Institute Index of Consumer Sentiment fell by 1.6% from 96.1 in March to 94.5 in April to leave it at its lowest level since August 2011. 
Borrower confidence fell by 5.1%, compared with an increase in confidence of tenants of 7.4%, while those respondents who wholly own their houses had a much smaller fall in confidence of 1.7%. 
“We confidently expect the [RBA] Board to lower rates by 0.25% [on May 1] and furthermore, we do not expect that move to be the last,” Evans says. 
“Back in July last year when the Index was even lower than today's level, partly because respondents feared that rate hikes were imminent, Westpac forecast that a rate cut cycle would commence by year's end with a total of 1% in cuts. The bank has now delivered 0.5% in cuts, and we expect the second 0.5% to be delivered in two tranches in the very near future,” he says. 
Over the month attitudes towards purchasing housing and motor vehicles deteriorated. 
The index tracking views on "time to buy a dwelling" was down by 0.3% but at a relatively solid overall level, while the index tracking views on "time to buy a vehicle" fell sharply by 4.9%, possibly reflecting recent petrol price rises. 
Over the last 12 months the standard variable mortgage rate has fallen by an average of 0.4 percentage points, yet the confidence of respondents who hold a mortgage has fallen by 14.6%. 
Evans says the previous August 2011 low came at a time when consumers were very concerned about the global outlook and warnings of an imminent rise in interest rates. 
However, he says the “surprise” April fall in consumer confidence comes “with conditions in the global economy improving and commentators interpreting the Reserve Bank governor's latest statement as hinting strongly that rates are likely to be cut next month”. 
Evans says it seems “surprising that households would have a negative reaction in April”. 
“Indeed, apart from last year’s lows and the March 2008 to May 2009 period, when households feared a recession associated with the GFC, we have to go all the way back to 2001 following the bursting of the dot com bubble and the post-Olympics/post-GST slowdown to find sustained lower reads. 
“From there we have to go all the way back to 1992 to find the next series of lower prints,” says Evans. 
Evans says while the RBA did disappoint many consumers by not cutting rates last week, the guidance from the governor's statement was “quite encouraging”. 
“However, folks with a mortgage did not see it that way.”
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Drop in consumer confidence in April makes May rate cut likely, with more to come: Westpac  - RBA rate decision countdown

pmcstafford-pr9eMARWoN

Campbelltown, Mandurah, Toowoomba and south-eastern Victoria – The worst 10 postcodes in each state for insolvencies

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All good things – including some government property grants and stamp duty concession schemes – must come to an end. 
Currently the first of these to expire will be the Queensland building boost grant, <a href="https://www.propertyobserver.com.au/residential/queensland-government-to-extend-building-boost-until-april/2012011253029">which has already been extended once</a> and is due to end in less than three weeks with no word from the Queensland government about a possible second extension. 
Here’s a list of what’s due to expire over the coming months and years. Click on the links for more information on the grants and schemes.
<img src="/images/stories/april302012.gif">
$10,000 - Queensland
The <a target="_blank" href="https://boost.treasury.qld.gov.au/l">Queensland building boost grant</a> is set to expire on April 30, and there is no word yet from the recently sworn in Newman government about possibly extending it for a second time. The grant is available for those buying or building a new house and is also available to upgraders and investors.  The April 30 deadline applies to when a contract must be signed. Completed applications must be submitted by September 1.
 
<hr>
 
<img src="/images/stories/june302012.gif">
$13,000 - Victoria
First-home buyers who qualify for the $7,000 first-home owners’ grant may also be eligible for an <a target="_blank" href="https://www.sro.vic.gov.au/sro/SROnav.nsf/childdocs/-6BF180369BCB3975CA2575A1004420CF-65A02CC2EEDDD527CA2575A1004420E8-BBB89806303008C1CA2575CB00011AD5?open">additional $13,000 payment known as the first home bonus</a>. For contracts entered into between July 1, 2009 and June 30, 2012, the value of the property must not exceed $600,000. A greater stamp duty concession for first-home buyers<a target="_blank" href="https://www.propertyobserver.com.au/victoria/victoria-s-new-home-bonus-grant-ends-june-30-but-lower-stamp-duty-cuts-in-for-first-time-buyers/2012050254518"> comes into force on January 1, 2013</a>.
$6,500 - Victoria
On top of the first-home-owners grant, there is $6,500 is available for those buying in a designated regional Victorian location. <a target="_blank" href="https://www.sro.vic.gov.au/sro/SROnav.nsf/childdocs/-6BF180369BCB3975CA2575A1004420CF-65A02CC2EEDDD527CA2575A1004420E8?open">Click here for more on the scheme</a> and <a href="https://www.sro.vic.gov.au/sro/SROnav.nsf/LinkView/DBFEE9B4136A31E1CA2575CB00012C3265A02CC2EEDDD527CA2575A1004420E8" target="_blank" title="Eligible regional municipalities">click here for a list of eligible regional Victorian municipalities.</a>
Australian Capital Territory 
Stamp duty concessional rate available for the purchasing a residential home or residential vacant land. <a href="https://www.revenue.act.gov.au/home_buyer_assistance/home_buyer_duty_concession/1_January_2012_-_30_June_2012" target="_blank">More information on the scheme can be found here</a>.
$10,000 - Northern Territory
Eligible home buyers and investors can receive an additional $10,000 as part of the <a href="https://www.nt.gov.au/ntt/revenue/home_assist/buildbonus.shtml" target="_blank">Northern Territory government’s “BuildBonus” incentive</a>. The grant is available to home buyers and investors, including companies and trustees, that sign a contract to purchase or build a new home (including signing a contract for a house-and-land package), or unit (including off the plan) or commence construction of a new home as an owner-builder by June 30, 2012 up to a value of $600,000. The BuildBonus is available to first-home buyers in addition to the first-home owners' grant.
 
<hr>
 
<img src="/images/stories/july12012.gif">
$8,000 – South Australia
First-home buyers who qualify for the $7,000 first-home owner grant in South Australia may also be eligible for a <a href="https://www.revenuesa.sa.gov.au/fhog/bonus8000">first-home bonus grant of up to $8,000</a> if they enter into a contract to purchase or build a new home, or commence construction as owner builders before July 1, 2012. The $8,000 first-home bonus grant will be reduced to $4,000 from July 1, 2012 and then to be fully abolished from July 1, 2013. The first-home owner grant is not being phased out.
NSW Home Builders Bonus
The <a href="https://www.homebuyer.nsw.gov.au/newhomes.php">NSW Government's Home Builders Bonus</a> provides full exemption on stamp duty for new homes where the value does not exceed $600,000 and building has not commenced. It also applies to vacant land up to $400,000. The NSW Home Builders Bonus is available to everyone, including investors, who purchase a new house or apartment. For homes already under construction, stamp duty has been reduced by 25%.

 
 
<hr>
<img src="/images/stories/july120131.gif">
$4,000 – South Australia
Between July 1, 2012 and July 1, 2013 first-home buyers who qualify for the $7,000 first-home owners' grant in South Australia may also be eligible for a <a href="https://www.revenuesa.sa.gov.au/fhog/bonus8000">first-home bonus grant of up to $4,000</a> if they enter into a contract to purchase or build a new home, or commence construction as owner builders before July 1, 2013.
 
<hr>
 
<img src="/images/stories/june3020151.gif">
$7,000 - NSW 
The <a href="https://www.osr.nsw.gov.au/benefits/rrg/council/" target="_blank">scheme provides a one-off payment</a> to assist with the cost of relocating from a metropolitan home to a regional home. A list of metropolitan areas <a href="https://www.osr.nsw.gov.au/benefits/rrg/council/" target="_blank">can be found here.</a> All other regional municipalities qualify for the grant. All applicants must have owned and occupied the metropolitan home as their principal place of residence within 12 months before the contract exchange date of the regional home purchase. It is available for purchases up to $600,000 and $450,000 for vacant land. All applicants must sell the metropolitan home either before or within 12 months after the completion date of the regional home purchase. A further $7,000 is also available via the first-home owners' grant.
 
<hr>
<img src="/images/stories/noexpiration.gif">
 
$7,000 – nationwide
Remains in place across all states and territories though each state and territory has set their own upper property value limit, which was revised at the start of 2012. To find out what the rules and restrictions are in your state go to <a href="https://www.firsthome.gov.au/" target="_blank">firsthome.gov.au</a> and pick your state from the drop down menu.
$3,500 – Northern Territory
A stamp duty concession of <a href="https://www.nt.gov.au/ntt/revenue/home_incentives_priorMay08.shtml" target="_blank">up to $3,500 off the stamp duty payable</a> is available.
$2,000 – Western Australia
Provides a <a href="https://www.finance.wa.gov.au/cms/content.aspx?id=344" target="_blank">grant of up to $2,000 for the incidental expenses of first-home buyers</a> when they purchase an established or partially built home through a licensed real estate agent for $400,000 or less. This is in addition to the first-home owners' grant.
Northern Territory 
The <a href="https://www.nt.gov.au/ntt/revenue/home_assist/fhoc.shtml">first-home owner concession (FHOC)</a> provides stamp duty concessions for persons purchasing their first home in Australia, or land on which to build their first home.
Queensland 
<a href="https://www.osr.qld.gov.au/client-group/first-home-buyer/fhog-duties-concession-comparison.shtml">First home transfer concession and first home vacant land concessions</a>.
NSW  
The newly introduced first home – new home scheme provides eligible purchasers with <a href="https://www.osr.nsw.gov.au/benefits/first_home/first_home_new_home/" target="_blank">exemptions on transfer duty on new homes</a> valued up to $500,000 and concessions on transfer duty for new homes valued between $500,000 and $600,000. Eligible purchasers buying a vacant block of residential land to build their home on will pay no duty on vacant land valued up to $300,000 and will receive a concession on duty for vacant land valued between $300,000 and $450,000</body></html>

Government property grants and stamp duty concessions: The expiry dates you need to know

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Nearly a third (31%) of consumers expect residential property to be the most profitable investment sector over the next 12 months, according to an online poll of 823 consumers by mortgage broker Loan Market.
Residential property was just shaded by the share market, with exactly a third (33%) of consumers expecting the greatest profit from their share portfolio.
Nearly one in 10 (9%) expected commercial property returns to be most profitable.
Reflecting ongoing caution and savings culture 17% of respondents believed they would be better off putting their money “under the mattress”, which is higher than the 10% who expect to profit the most from holding their money in cash or putting it in low-interest-earning savings accounts. 
Property outweighed shares among older Gen-Y respondents – only 27% selected shares while 31% opted for residential property.
Loan Market survey results:
Which investment sector do you believe will be the most profitable over the coming year?
<ul>
<li>Shares                                                33% </li>
<li>Commercial property                 9%</li>
<li>Residential property                    31%</li>
<li>Cash/Savings                                   10% 
</li>
<li>Put money under the mattress 17%       
</li>
</ul>
“Australians have modest expectations for the economy,” says Loan Market corporate spokesman Paul Smith. 
“With savings being a particular priority for many Australians and caution being applied to nearly every financial decision shares and property investment hold the most attractive risk/reward balance. 
“It is alarming though that almost one in five respondents to our survey believe the best place to invest their money is under the mattress. 
“There a lot of uncertainty about the economy despite Australia so far avoiding the debt crisis that has plagued Europe.”
 
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Shares just shade residential property as generating best return over next 12 months: Loan Market

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The construction sector contracted for the 22nd consecutive month in March, with particular weakness in the residential sector, according to the latest Australian Industry Group Performance of Construction Index released in conjunction with the Housing Industry Association (HIA). 
The last time construction was expanding was in May 2010. 
While the index rose slightly by 0.6 points to 36.2 it still remains well below the 50-point mark, which separates a contracting sector from an expanding sector.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/hiaapril11.gif"><img src="/images/stories/hiaapril11thumb.gif"></a>
House building activity declined further in the month with the sector’s sub-index falling by 7.6 points to 30.3 to signal the sharpest pace of decline since September last year. 
Apartment building activity also remained weak, with the sector’s sub-index falling by 3.9 points to 30.5, the steepest rate of decline recorded by the sector in the past four months. 
New orders in house building continued to decline with a sub-index reading of 28.5, which was 4.8 points below the level in February and the weakest reading in six months. 
Commercial construction was again subdued with a sub-index reading of 35.5 but that was up by 9.2 points on the previous month, an early indicator that more projects are starting to receive the go-ahead. 
In March poor demand and subdued workloads resulted in businesses again reducing their employment. 
As a result the activity and capacity sub-index increased by 2.5 points to 35.5 points. 
Reduction in the commercial construction sector moderated in March after a sharp fall in February.
 
 
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Construction industry contracts for 22nd straight month in March due to weak residential sector: AIG/HIA

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In simple terms, your depreciation falls under two separate (but related) categories:
<ul>
<li>Plant and equipment items (Division 40)</li>
<li>Capital works allowance (Division 43)</li>
</ul>
And not everyone is in a position to acquire a stand-alone property.
More often than not, you'll be looking to purchase a "strata-title" office or warehouse, involving an owners’ corporation and some common-area property.
As such, you may not be aware of the full extent of what you are entitled to, by way of your depreciation claims.
However, once you are aware of them, you can significantly enhance the overall return on your investment.
Plant and equipment items
Apart from what may be included inside your unit, you are able to claim your pro-rata share of the common-area items as well. This includes things like the lifts, lighting, fire protection, security system, air-conditioning, gym equipment (including any pool and spa equipment) and so on.
Capital works allowance
Again, quite apart from the structural components of your own unit, you are entitled to also claim your share of the common-area capital items as well.
These will include the driveways, car park areas, foyers, stairwells, barbecue areas, common area communities (like the gym, etc) and fixed landscaping.
Depending upon the year of construction, this allowance would be spread over either 25 or 40 years.
In any event, the proportion of your claim is based upon your "unit entitlement" as specified on the strata plan itself.
Your first step is to engage a land surveyor to thoroughly inspect the common area items. From there, a detailed schedule of your entitlements is drawn up for your accountant to prepare the year-end claim for your depreciation.
Bottom line: Clearly, you need to seek professional advice to ensure you are claiming your full entitlement — and thereby, leaving nothing on the table.
However, there is still one vital step you need to take at the time you acquire each new property. And this relates to knowing how to correctly structure of the contract of sale in order to maximise your depreciation claim for commercial property.
But that's a discussion for another day.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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chrislang-EQKojcgJPV

What depreciation commercial property investors can claim

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Looking at RP Data-Rismark’s daily hedonic home value index, which is also published by the Australian Stock Exchange, we can see that the “stabilisation” evident in Australia’s housing market in 2012 has galvanized further during the month of April.
Australian home values are now in the black for the first time in 2012, having fully recovered from the drop recorded during the seasonally-weak month of January.
At 10 April 2012 home values across the eight capital cities had risen by 0.3% above their end 2011 levels (see first chart below).
<img src="/images/stories/joyebanks4101.jpg">
The improvement in housing conditions can also be viewed through the rolling one-month, six-month and 12-month returns, which simply reflect the raw capital growth, exclusive of any rents, realised over the period in question.
My second chart illustrates that analysis.
While year-on-year returns (blue line) have flat-lined at around -4% we can see more clearly the effect of the recent house price growth on the six-monthly (red line) and monthly returns (green line), which are heading towards or are above the horizontal x-axis that denotes zero growth.
<img src="/images/stories/joyebanks4102.jpg">
One key takeaway from the chart above is that the month-on-month change in Aussie home values has been positive since February and remains in the black as we head into the second half of April. The crucial question is what will happen in the remainder of the year. In late 2011 I forecast that Australian home values would stop falling in the first quarter of 2012 and we would possibly see a return to capital growth, which is the way it has panned out. The good news for housing investors is that the financial markets are putting a near certain (or close to 100%) probability on a third RBA rate cut in May – and some think we might get another in June. As regular readers would know, I did not expect the bank to cut rates last month – or in the preceding two months – given that I deduced that they would want to wait until they got the all-important ABS inflation data at the end of April. The RBA is fond of establishing subtle decision-rules or offering guidance on the future direction of policy if inflation, employment and growth behave in certain ways. After its uneventful April meeting the RBA clearly communicated that it would trim rates in May if it got a weak inflation read for the first quarter of 2012. Analysts have subsequently inferred that to mean the RBA will cut rates if core or underlying inflation prints at less than or equal to 0.6% -- or under 2.5% annualised. Yet the market seems to be overlooking the fact that the RBA will want to “look through” the volatile, and frequently revised, quarterly information, towards the six-monthly and yearly prints. So in that context a May rate cut will likely rely on the six- and 12-monthly outcomes being somewhere between 2.0% and 2.5% on an annualised basis. If they somehow come out in the top half of the RBA’s target 2-3% band it is hard to see how the central bank will relax rates barring further offshore disasters or a big jump in the jobless rate. With the bank estimating that core inflation is right in the middle of its target band - albeit before the full effect of the November and December rate cuts - the core numbers would have to print very high in the first quarter of 2012, and/or the ABS would have to upwardly revise the remaining 2011 data in order for us to see an adverse result (given the advantage of being able to discard the high March 2011 number from the annual time-series).
With the above in mind I would not attach a 100% or even 90% probability to a rate cut in May. It is more than likely but will depend on the pulse of price pressures during the past 12 months. Another thorny question for the RBA is what it would do if the year-on-year inflation data prints just below the mid-point of its target band but the six-monthly average is above it. The RBA might be swayed by the argument that with the Aussie dollar off 4-5% from its recent peaks the economy is already getting the benefit of some extra stimulation that is tantamount to half a rate cut. The flipside of that currency depreciation is imported inflation as opposed to imported deflation, where the latter had been influential in keeping overall price pressures in check via low tradeables and goods price growth. A final curveball is what the banks do with their margins. We have ANZ’s decision on Friday this week. If I was the CEO of a major bank I would definitely bump up lending rates by a good 5.0 to 7.5 basis points. Why? First, because you will boost your net interest margins in an environment in which profits are going to be hard to come by due to structurally low credit growth – funding costs have been falling since January. A second reason to widen margins is to amplify pressure on the RBA to neutralise that change in lending rates in May. All else being equal banks do better in low interest rate climates. Asset prices rise, credit growth accelerates and impairments decline. So the banks will want to see the RBA cutting in May and bumping up margins in April will increase the probability of that happening. Borrowers are still better off because the RBA ordinarily moves in 25 basis point increments. A final reason to expand margins is simply because, as an oligopolist, you can! From a margin extraction point of view the banks need to break the back of the purported link between the RBA’s target cash rate and actual, economy-wide lending rates. While the link will always exist in practice (ie, notwithstanding what people may want you to believe), the banks should rationally want to improve their ability to freely profit maximize without annoying politicians and commentators interfering with their decision-making processes, as has been the case of late.
Christopher Joye is a leading financial economist and a director of <a href="https://www.ybr.com.au/savings/index.cfm">Yellow Brick Road Funds Management</a> and Rismark. The above article is not investment advice.
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