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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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 Reserve Bank looks set to leave interest rates unchanged for the third straight month tomorrow  and might only cut rates once between now and September, two surveys of economists suggest. 
All 25 economists survey by Bloomberg expect the RBA to leave rates unchanged when it meets tomorrow, and just over half (14) expect the RBA to cut rates by to 4% on May 1. 
Interest rate futures markets are factoring in a greater possibility of a rate cut – they say there is about a 40% chance the RBA may loosen its monetary policy tomorrow. 
Looking ahead to the June 5 monetary policy meeting, 13 economists expect the cash rate to be at 4%, just three expect a further rate cut to 3.75% and a significant one-third expect the cash rate to remain at the current 4.25%. 
A separate poll of 18 economists carried out by the Australian Financial Review expects the Reserve Bank to cut interest rates just once more over the next six months to September.
Click to enlarge
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Twelve out of 18 economists polled expect the cash rate to drop to 4% over the next three months, with only Annette Beacher from TD Securities forecasting two rate cuts over the next six months. The remaining five expect rates to remain on hold over the next three months. 
The economists polled by the AFR predict lower inflation will make it possible for the RBA to cut rates. 
However Westpac chief economist Bill Evans says the RBA decision will be live tomorrow and could be swayed to cut rates. 
Evans says that if it were Westpac’s decision, it would cut rates tomorrow. 
“The bank's decision will be finely balanced and as always determined by subjective judgements. For the board to cut rates, it will need to be absolutely comfortable that the threshold for a move which has been clearly communicated in recent statements – that ‘demand conditions weaken materially – has been crossed. 
“While we believe that this condition has already been met, we feel that on balance a prudent central bank will decide to wait. Therefore we are maintaining our forecast for the next rate cut to be in May, followed by July,” says Evans. 
Evans says Westpac’s recent Coast-to-Coast report highlights the multi-speed nature of the Australian economy, complicating the decision for the RBA. Economic demand soared in Queensland (10.0%) and Western Australia (11.1%) in the second half of 2011 but contracted in South Australia (–0.6%), Tasmania (–0.7%) and Victoria (-0.4%). 
The report notes that NSW received a timely boost from its coal sector but it has still only managed to grow at a below-trend 2% in 2011. 
Similarly, CommSec chief economist Craig James says a “raft of sectors are under pressure in the current environment – retailers, manufacturers, home builders – and we can add banks to the list. 
“The case for another rate cut remains strong,” he says. 
Su-Lin Ong from RB C Capital Markets expects two rate cuts in 2012 due to a “sub-trend pace of growth, rising jobless rate, likelihood of further independent increases in standard variable rates, and a still challenging global outlook suggest the RBA should be doing more to support demand”. 
Ivan Colhoun, head of Australian economics and property research at ANZ, says recent communications by the Reserve Bank suggest the market is underestimating the chances of a reduction in the official cash at next week’s RBA board meeting notwithstanding  the recent increase in pricing by the market. 
“The minutes for March, together with a recent speech by the governor, contain subtle but important evolutions in the bank’s thinking. This raises our confidence in ANZ’s forecast of a rate cut by May and suggests a move at the April meeting cannot be ruled out,” says Calhoun. 
Writing in the Eureka Report, Alan Kohler says there are three reasons why the RBA should cut interest rates tomorrow. 
Firstly, as has always ready been pointed out by other commentators such as <a target="_blank" href="https://www.propertyobserver.com.au/economy/mark-bouris-takes-aim-at-rba-as-gail-kelly-warns-of-frequent-independent-bank-rate-rises/2012030853747">Mark Bouris</a> and <a target="_blank" href="/news">John Symond</a>, Kohler says “Australia's non-mining economy is stagnant at best”. 
While the mining the mining investment boom is locked and not dependent on China's GDP growth, Kohler says the other parts of the Australian economy are more vulnerable to a slowdown in China than they have ever been “because of their reliance on bulk commodity exports”. 
Kohler backs retailer Solomon Lew’s view that the RBA should cut rates by 50 basis points tomorrow to provide stimulus to the economy in light of planned spending cuts by the government to get the budget back in surplus by 2012-13. 
“The RBA will need to counter [the budget cuts if not next week, then in May and June,” says Kohler.
Lastly Kohler says a rate cut is needed to prevent the housing market from weakening further. 
“I had meetings this week with a senior banker and one of the country's largest housing developers, and it was clear that the banks are going to be restraining credit for a long time and this is going to suppress demand for housing.
“For investors it means cash rates will fall again this year so you should think about locking in with term deposits, if you haven't done so already,” Kohler says.
A mixed bag of recent economic data will add to the complicated picture for the RBA and could encourage it to keep rates unchanged until there is more evidence about which way the economy is heading. 
In the December quarter GDP growth was just 0.4% (below expectations of 0.8%) and housing starts fell another 7%. 
However the number of job vacancies rose 0.7% over the three months to February 2011, with 182,000 positions vacant while ANZ job advertisements also picked up. Commenting on these figures, CBA economist James McIntyre said deterioration in vacancies would bolster the case for a rate cut. 
Figures released today by the Rismark-RP Data show capital city home values rose 0.2% over the month of March 2012, leaving the market flat (0%) for the first quarter of 2012.
 
 
 
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No rate cut in April, say economists, with Westpac and others forecasting May cut

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The perception that the Australian housing market is in a “serious bubble” means US investors are wary of funding residential mortgage-backed securities (RMBS) issued by the major banks, according to Peter Dorrian, head of global wealth management at the Australian arm of investment firm Pimco.
According to Dorrian there is “quite a wide difference” of opinion between Australian investors’ perceptions of Australian banks and overseas investors’ opinion of them.
“I have a US colleague with me at the moment and he says Australia has the most overvalued housing market in the world and that is has a serious bubble,” Dorrian told Business Spectator, while stressing that this was not necessarily Pimco’s view.
“There is a view that the big four banks are so tightly levered into the domestic property market that if there was to be a more severe correction of the Australian property market it would have an impact on their balance sheets,” he says.
This is despite the average loan-to-valuation ratio on RMBS portfolios being around the 50% mark, meaning it would require a significant fall in house prices to have a severe impact on the banks’ balance sheets.
“But its perception that counts at the moment,” Dorrian says.
His comments come as Australia’s sixth biggest mortgage lender, ING Direct, raised $800 million in the first deal of the year for the Australian RMBS market but limited interest from overseas investors.
“Investors were primarily local,” David Breen, head of corporate affairs at ING Direct told Property Observer with insurance companies, fund managers and superannuation funds among those that invested in this issuance.
The ING Direct issue was priced at 145 points over the one month bank bill swap rate (BBSW) – the benchmark rate at which banks will lend to each other.
RMBS, where mortgages are bundled together and sold to institutional investors, was a very cheap form of wholesale funding in the decade prior to the GFC, accounting for 23% of all bank mortgage funding at its peak.
However the market collapsed in the two years following the sub-prime crisis in the US, falling 41% from $204 billion to $120 billion as overseas investors’ appetite for the product shrank. 
It has since recovered some ground, but is now a much more expensive form of funding, with little appeal for foreign investors.
<img src="/images/stories/rmbs.gif">
Aside from investor wariness because of housing concerns, Dorrian says Australian banks are also facing a lot of competition from other international banks for wholesale funding.
 
 
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Perception of Australian housing price bubble keeping US RMBS investors away: Pimco

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This week I asked my Twitter followers where they would invest $10,000 to get a good return over 12 months.
Almost two-thirds said they would invest into just three asset classes: property, shares, or a savings account.
The glaring omission was “bonds” – just 4% of respondents thought to invest in them.
Simply, bonds are debts. When called a “corporate bond”, they represent a borrowing made by a company, which offers an interest rate so that you lend the company money.
A “bank-issued bond” is when banks borrow from big investors by issuing bonds.
High-quality bonds offer stable returns with relatively low risk.
For example, today you can get nearly 6% per annum on a senior-ranking, variable-rate bond issued by one of the major banks. And many are liquid: you can put your money in and take it out when you want.
The rate of return you get on the bond is usually tied to how “secure” it is, or the risk that you won’t be paid your interest.
So why are you not offered bonds?
The financial regulations say that the normal minimum investment in a bond is $500,000, which means they are limited to the big end of town.
This is supposed to protect “mums and dads” from bad decisions. But it’s actually unfair: none of you are stopped from buying far riskier bank shares via an online stockbroker.
The difference here is between debt and equity, a point you need to understand: almost all businesses are made up of “debt” and “equity”. If you put your own money into starting a new business, your holding is your equity. But you may also borrow money from the bank, which is your debt. If the business fails, you bear most of the risk – the banks get their money first.
The same applies to a home: when you buy a house your deposit is your equity. But you also typically take a loan from the bank. When your home’s value rises and falls, so does the value of your equity. In contrast, the bank’s return is the comparatively secure interest rate on its loan.
Now that you understand this, why shouldn’t you be allowed to get access to the lower risk returns associated with high-quality bonds?
It’s easy for you to buy shares in Westpac, but nearly impossible to invest in Westpac’s AAA-rated covered bonds.
ANZ recently listed one its bonds on the ASX so you can buy and sell small parcels of it while getting 7.1% per annum return.
This is going to be a big topic in the years ahead because retirees, near-retirees, and even people in the “accumulation” phase of their lives need an alternative to low returning bank accounts or the high risks of shares. Super funds haven’t helped by putting 60% 70% of default options into volatile shares rather than stable bonds.
My advice: take expert advice and become educated about bonds so you can save smarter.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance. He runs a <a target="_blank" href="https://twitter.com/#!/markbouris">Q&amp;A session on Twitter</a> every Monday afternoon at 4pm for small business owners using the hashtag #bizQandA.
 
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mbouris-tauSvXGAM2

Become an expert in bonds so you can save smarter

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Australians love a home project and are spending more on renovations each year, so as the trend continues towards renovating – rather than upgrading, to adapt to the softer property market, borrowers really need to maximise any money they outlay to ensure those funds are put to good use.
Borrowers need to be savvy about exactly how they spend their money on renovating, so there is a genuine financial advantage to their decision to retain and improve their existing property, rather than move on.
There's no point deciding to go ahead with a renovation unless you have weighed up all the benefits of renovating over upgrading.
Your analysis should include determining whether you really are comfortable and ready to give up not just the property, but all the other reasons you live there – including familiar infrastructure such as local schools and transport links, not to mention friends and neighbours.
That's the more emotional side of the equation. But then you also need to be realistic and crunch numbers on all the possible outcomes of buying and selling in the current market.
In the end, if you do finally decide that renovating is the better option for you, you need to be careful about how you spend your money by developing a blueprint to follow, based on finely costed, definitive plans.
One of the main issues that will determine how you spend your budget will be the primary reason you are renovating – i.e. is it to on-sell; improve rental yields; or improve your lifestyle?
There is generally less emotional attachment to renovating an investment property than one you will have to live in, but ensuring you have improved the property in both functionality and value – without over-capitalising on your spend – should always be the prime objective.
Then it will come down to whether the renovations are mainly cosmetic or structural.
If the renovations are largely cosmetic, there is a lot less to consider. It's when you get into the structural type that you really have to do your homework by ensuring that any additions are in character with surrounding dwellings and that it will add to the resale value, among other things.
For larger projects, despite the reasons for renovating, the planning should still come down to considering 12 key points:
<ol start="1">
<li>
START WITH A LIST: Make a list of everything you want to do, not just in one room, but around the rest of your home too, then prioritise that list. This will allow you to decide whether you can stage the renovation, or whether you're better off to do it all in one block of work. Once this is done, you can seek more detailed advice from architects, draftspeople and builders. </li>
<li>
SET THE BUDGET: Work out how much you actually have to spend and ensure if you are borrowing the funds to do this they are firstly approved and that you're comfortable with the additional financial responsibility you will be taking on. Also, if you are significantly changing a layout or adding floor space, ensure your plans comply with any council regulations and allow sufficient time and money for any plans to be drawn up, submitted and approved. </li>
<li>
OBTAIN COMPETITIVE QUOTES: Obtain at least three quotes from reputable builders and tradesmen and ensure the quotes compare like for like. And then, even when the quotes are accepted and contracts are finalised, ensure you have a contingency budget. Speaking to others who have project managed renovations beforehand will be a wise investment of your time. </li>
<li>
THE DIY FACTOR: Despite the popularity of home renovation programs, very few have the skill and experience to do everything themselves. Sure, you can save some money by putting your own sweat into it, but ensure any specialist jobs are carried out by licensed tradespeople. </li>
<li>
INSURANCE: Ask about insurance for each tradesperson as anyone working on your property needs it. Otherwise the liability may rest with you. </li>
<li>
KEY AREAS OF THE HOUSE: Any buyer routinely pays close attention to the state of bathrooms and kitchens, mainly because they're high-traffic areas. As a result, these rooms can justifiably take up a significant portion of your budget, as long as you don't go overboard with costly appliances that won't be appreciated within the context of the rest of the property. </li>
<li>
POOLS: Swimming pools may seem like a luxury but won't always increase the resale value of your home, particularly if it overcrowds the rest of your outdoor area. Balance out your own need for a pool, rather than just installing one because you think it's a property must-have. </li>
<li>
GARAGES: A garage can add considerably to a home's value, as can any off-street parking facility, particularly in high-density, metropolitan areas. So whether you're renovating an investment property or your own property, the addition of a car space is usually a wise one. </li>
<li>
ADDING BEDROOMS: This will also generally add to a property's value, particularly if the property is in a family-friendly area. However, there's no point creating a bedroom for the sake of it, if it's so small it's more likely to be used as a utility room. Buyers can readily see through this. </li>
<li>
PAINTING can make or break a renovation. Good paintwork can instantly lift the overall quality of a house as can the level of preparation that goes into the job. Don't underestimate the power of the paint – it can transform even the drabbest of homes. </li>
<li>
COLOURS AND FINISHES: Keep your overall look co-ordinated and simple in taste, particularly if you're looking to sell in the near future. A consistent, muted style that flows from room to room is safer than something that's too niche and stands out for all the wrong reasons. </li>
<li>
LANDSCAPING: The indoor/outdoor room is now a popular part of the Australian lifestyle, so allow for a percentage of your overall budget to be spent on landscaping so you can complement the work you've carried out inside the house. Even if your budget is modest, basic greenery and clean, functional outside areas will only improve a property's appeal.</li>
</ol>
Lisa Montgomery is the CEO of the non-bank lender <a target="_blank" href="https://www.resi.com.au/">Resi Mortgage Corporation</a>
 
 
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Twelve key points to consider before you start home renovations

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One of my favourite proverbs is never judge by appearances, and it is often trailed by the quote “for things are seldom what they seem”.
William Shakespeare spawned the proverb in The Merchant of Venice from his famous soliloquy “All that glitters is not gold.”
Four hundred years later our lives are a constant race against time to acquire possessions, and we often disregard the old Bard’s advice.
Appearances can be deceptive and are sometimes designed to be just that. Or is it that we don’t see the woods for the trees, or forget that beauty is skin deep?
There is a certain element of arrogance in making quick decisions by judging by appearances. It is an error that can cost us dearly; whether it is a decision to impulsively buy a home simply because it offered a new kitchen or a car because it had a leatherette steering wheel.
Perhaps the real truth is that over the generations mankind did learn from the Bard. But did we only learn to present ourselves and our possessions with a false external covering and to hide the truth? And did we learn too that first impressions are what really count?
Making decisions about anything is based on evaluation of evidence. You need to look at all the angles and not just the superficial ones. And the same is true too for snap decisions about people you meet simply because of the clothes they wear. Remember Mahatma Gandhi?
There is an interesting methodology for reaching decisions called “triangulation”.
It is all about using multiple sources of information including the facts, your own perception, and getting advice from others who can add to the weight of argument before you make a final decision.
In real estate transactions whether you are buying or selling you need to keep your wits about you and remember William Shakespeare. Trust your instinct by all means, but don’t rush into a decision that could cost you a lot of money.
And lastly, engage a buyers’ agent or vendor advocate to advise you independently in your best interest. They will give you unbiased advice that will help you make a rational and well founded decision.
Tim Mansfield is founder and principal of Sydney-based buyers' agency <a href="https://www.primepropertybuyer.com/" target="_blank">Prime Property Buyer</a>.
 
 
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Appearances can be deceiving, so don't make a costly error when buying a house

<html><body>Australian Property Monitors (APM) has released a list of results from 646 auctions in Sydney for the weekend of March 31. The clearance rate was 53.8%. <a href="https://www.homepriceguide.com.au/saturday_auction_results/Sydney.pdf" target="_blank"> Click here</a> for the auction results, and click on each street address to see the property's marketing.</body></html>

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APM's 646 Sydney auction results showing a clearance rate of 53.8%

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Some investment commentators would no doubt believe that investors who negatively gear new investment properties and shares at this time must have rocks in their head.
Residential property prices are still falling in most Australian states, and the highly volatile local share market returned a negative 6.8% in the 12 months to February.
And the Reserve Bank’s latest margin lending statistics underline the extreme reluctance of many investors to borrow to invest. Australia’s total margin lending debt, taken to gear shares, plummeted to $15 billion by December last year – the lowest level in eight years.
Just think that the margin lending debt is 64% down on the record $41.6 billion reached in December 2007 on the eve of the GFC.
Unquestionably, it would be a contrarian approach to negatively-gear your new investments. But given the depressed state of the residential property and the local sharemarket, a case could be mounted for going against the herd of investors who are cutting back on both their investment and personal borrowing.
Further, there is another powerful reason why some older, contrarian investors may decide to take bigger risks by negatively gearing their investments.
The standard annual cap on concessional superannuation contributions by members over 50 – mainly salary-sacrificed, compulsory, and deductible contributions by the self-employed – will halve to $25,000 from July. This will diminish valuable potential tax breaks for middle and higher-income earners.
And in turn, more investors are likely to consider gearing property and shares (outside super and through self-managed super funds) as a way to partly address this looming reduction in tax breaks.
The halving of these caps means that super fund members with a marginal tax rate of 46.5% will lose tax savings of up to $7875 a year from 2012-13 while those with a 38.5% marginal rate will lose up to $5875 a year. Much will depend on an investor’s circumstances.
Gear shares
Negatively geared shares provide a relatively straightforward way to help maximise tax and investment opportunities for investors that understand the greater risks involved. In short, gearing magnifies capital gains and losses.
A share is said to be negatively geared when the interest on the investment loan exceeds its dividend income – and the shortfall is deductible against the investor’s other income.
However, a phenomenon in this volatile sharemarket is that the dividend yields of some popular quality shares are markedly higher than the interest payable on investment loans once the value of franking credits are taken into account.
Ross Bird, head equity strategist for investment researcher Morningstar Australia, points out that the average forecast grossed-up yield (which includes franking credits) of the four big banks is 10.1% for 2011-12, rising to 10.8% for 2012-13. (The forecasts are by Morningstar analysts.)
And Morningstar’s forecast grossed-up yield for dividend champion Telstra is a breathtaking 12.4% for both 2011-12 and 2012-13. (The yield was even higher before the recent rise in Telstra’s share price.)
Yet investors should expect to pay a little more than 9% for a variable rate margin loan and about 8.25 to 9% for a fixed-rate loan (<a target="_blank" href="https://www.ratecity.com.au/margin-loans/low-rate">depending on the terms and conditions</a>).
This means that a geared portfolio comprising of, say, the big banks and Telstra won’t be negatively geared. It will be positively geared with the dividends easily outstripping the interest on a margin loan.
However, grossed-up dividends are unlikely to exceed interest on a loan to finance a properly diversified share portfolio – depending, of course, on the level of gearing. Bird gives the example of what Morningstar classifies as its “sustainable portfolio”.
This regularly updated portfolio currently comprises: QBE, Ramsay Health Care, Telstra, Westfield Group, Westpac, Seek, JB Hi-Fi, CSL, Computershare, Commonwealth Property Fund, Cochlear, Bendigo Bank and APA. The portfolio’s forecast grossed-up yield is 7.4% for 2011-12, rising to 7.8% for 2012-13.
Bird describes this portfolio as “almost self-funding” if geared. “The portfolio is designed for moderate capital growth with a healthy income stream,” he explains.
Key points to keep in mind that even if a portfolio is not negatively geared, interest on the investment loan is tax-deductible – and the investor is getting exposure to the sharemarket when shares are still relatively cheap.
Gear property
If you believe that prices are beginning to bottom out in your selected market, now might be a good time to begin thinking about gearing a residential property investment over the next few months or so.
As reported by Property Observer, <a target="_blank" href="https://www.propertyobserver.com.au/residential/residential-investment-property-capital-city-house-rental-yields-from-best-to-worst/2012013153198">RP Data-Rismark calculates that the indicative rental yield for all capital houses was 4.4% in January</a>. This compares to an average variable rate of 6.99% charged by the four big banks for what interest-rate researcher Canstar regards as “outstanding value” <a href="https://www.canstar.com.au/home-loans/compare/variable-rate-investment-home-loan">property investment loans</a>.
Louis Christopher, managing director of SQM Research, believes another rate cut would be necessary to mark the bottom of the Sydney and Melbourne markets where auction clearances are lower than last year’s levels. However, he suspects that the Perth residential market has either bottomed or is near to it.
In all, Christopher says it is “not a bad time” for investors to begin researching for their next residential investment.
Gear through a SMSF
Sydney tax lawyer Robert Richards says gearing an investment through a self-managed super fund (SMSF) is a way to expand a fund’s assets despite the looming cut to the standard concessional contributions cap for members over 50.
Under superannuation law, SMSFs can borrow to invest subject to strict provisions. The geared asset must be held in a special trust until the final payment of the loan, and lenders cannot make a claim against any other fund assets in the event of a default.
There is plenty to consider. On one side, an SMSF-held asset will produce much lower negative-gearing tax benefits than if the asset was in the name of a top marginal taxpayer.
But once the investment’s income exceeds the interest debt, the rental income is taxed at a maximum of 15%. And the eventual capital gains are taxed at just 10% (if the asset is not sold within 12 months of purchase) or CGT-free if sold when the asset is backing the payment of a superannuation pension.
Finally, no investor should gear an investment without being aware of the risks. As Richards says: “While gearing increases the opportunity for greater capital gains, it also exposes you to greater capital losses".
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
 
 
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Is it time to negatively gear property or shares?

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“It’s on! 7 O’Block weeknights!’ is what is being shouted at us everywhere in the media lately – bus shelters, TV ads, radio, magazines, online banners, etc, all working in unison to present to Australia the rollercoaster adventure that is DIY renovation, in the form of a competitive reality TV program. Yes folks, The Block, the hugely successful Nine Network TV series, now in its 10th year, <a href="https://www.propertyobserver.com.au/renovating/father-daughter-and-mother-son-teams-in-channel-9-s-upcoming-the-block-2012/2012032954015">is back</a>, and as always, “bigger than ever”. As a full-time media industry professional myself, though, it prompted me to have a think about how much the mainstream media presents property investment and renovation-for-profit strategies as entertainment. So I felt it necessary to share with the community the reality of these “reality” shows as being what they are: very, well, unrealistic!
Let me first start by affirming one thing: I really enjoy The Block and shows similar to it; they are great entertainment programs, and I do enjoy the thrill of watching them. You know, identifying my favourite (and of course, least favourite!) contenders in the beginning, then following them through the series and seeing how far they get. As a professional property investor, however, I treat these shows as just that: entertainment. Professional investors understand that these shows glamorise the industry, and we know that the industry reality is nothing like what these shows present to us.
To be honest I really believe that most of the Australian public understand this as well. Yet there are still some perceptions that property investment is “not as hard as they make it out to be”, and this is the most concerning part. Not because I think that these people will fail if they try, I just think that when they hit that first wall or that first (of many) “no” answers, they’ll give up, because “on TV they didn’t have these kind of problems; I must be doing it wrong”.  It is the opportunist in me that thinks sometimes, “If I had the cash and more TV industry clout, I’d propose my own idea for a property investment show to the studios!”
But then I think that my show would probably not be very entertaining, and it is entertainment that sells. It is sensationalist headlines that get viewers. No, my show would be pretty boring actually. It would just involve scene after scene of someone sitting at an office desk using Google for many days, weeks, months on end, and maybe also a notepad, calculator, and a phone call or two (just to spice things up). Because, that’s what you’re doing 90% of the time as an investor: number-crunching, cost analysis, Google searches for information, and calls, calls, calls and emails, emails, emails. The other 10% is the stuff that they show on the televisions shows – the shopping around, inspecting places, maybe buying some curtain fabric and granite benchtops and touring apartments and houses. Sounds like fun, huh? Well, by the way, it’s not likely that these property tours would include the terraces of Toorak, or the penthouses of Potts Point. It’s more likely you’d be looking at the old apartments of Arncliffe, and the duplexes of Dandenong. Not exactly captivating TV viewing, is it?
Comparatively more sinister than the entertainment format though, is the sensationalist mainstream media. You know the most guilty of guilty suspects to which I refer to here: Today Tonight, A Current Affair, and (increasingly more recently) the 7pm show on Network Ten. These programs are all about presenting the flavour of the month when it comes to property, and yes, that generally involves taking whatever alarmist/sensationalist news headline they can find, then knocking up the “drama” of it a couple more notches, and presenting that point of view as “investigative journalism”. 
I’d actually feel more comfortable if these pre-made (and often shelved until they require a “time-filler: on a light news day) sensationalist stories quoted zero credible sources/statistics/accrued trending data. That way, I’d feel hopeful that the greater Australian population wouldn’t buy into these “property stories”. But unfortunately, they usually end up finding just one perspective/source (which often is merely one individual’s conversational opinion with no hard data to back it up) and run with this perspective (providing it is the most extreme perspective available, that is). Usually they pick the most dramatic or condemning perspective and present that as “just how the property market is”. Worse still, these stories are interweaved and mixed with the “dodgy plumber” template; whereby there must always be a ‘bad guy’ being chased down a hallway with a shoulder-mounted camera.
So where should one turn to turn for video content about the investment property “game” that is more constructive, trustworthy, and reliable? I’ve made a list of great sources of video content that I’d recommend. Sure, some aren’t so “entertaining: (read: they drone on a bit), and others aren’t even from Australia, but I think if you like information provided in a video format, here are some great sources:

<p style="background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: white; background-position: initial initial; background-repeat: initial initial;">1) YouTube. Specifically, mini-series, or “vignettes” as they call them (usually a three- to five-minute snippet of video, as part of a five- to 10-part series). Some great names to Google are Australian Property Investment magazine’s Nhan Nguyen, who has a great series. Also Michael Yardney and Lousie Bedford did a series together that offers some great insights. Other names to help get you started would be Margaret Lomas (In Her Shoes series), and Catherine Cashmore and Peter Bozinoski from Property Observer.

<p style="background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: white; background-position: initial initial; background-repeat: initial initial;">2) Get your property industry news from online industry news niche sites. This one just makes sense. Sure, some of the biggest news websites such as NineMSN, SMH/Age, News.com.au etc have property sections, but these sections are really quite generalist and don’t cater as much to the investor mindset. Instead, go to specialist websites like Australian Property Investor magazine online, Your Investment Property magazine online, Property Observer, and even Domain.com.au and Realestate.com.au. You’ll find video content that is specific to investment context within these.

<p style="background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: white; background-position: initial initial; background-repeat: initial initial;">3) Blog communities are also an excellent source for opinion. Sure, they are merely conjecture and the amalgamation/debate of many individuals (most usually with quite strong opinions!), but these communities are, more often than not, made up of the kind of person who, well, if you’re an aspirational investor, would want to be and emulate. Plus, the ones worth their salt (like me) will always present things as their opinion, or their own commentary, on what is trending in the market. They will never try to claim their opinion is an elaborate intensive study (unless of course they are willing to do the due diligence of research and hard data), so their opinions can usually be well-considered if many individuals in these communities all concur on similar topics.

<p style="background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: white; background-position: initial initial; background-repeat: initial initial;">4) There are indeed some TV programs that are not all bad. The UK’s Property Ladder, hosted by Sarah Beeney, is excellent because it shows the due diligence that renovators apply before selecting a property, details the works and itemised costs, the selling process, and then actual profit margins and time/energy taken. Selling Houses Australia also has some great episodes, though it does conform to a more entertainment format. And last of all, regular segments in various reputable news program sources (Sky News Business has some great regular reporters with segments, as does ABC and SBS more infrequently). Even the commercial networks offer programs with some property insight sections, such as Network Ten’s The Circle.

5) Also emerging in the investment property media space are webinars. Whilst not strictly “video” driven, they are quite interactive and visual, and on the rise in Australian media property sites. Worth a look.

Regardless of whether your investment strategy is buy-and-hold, renovate-for-profit (aka “flipping” a property, then moving on to the next one), renovate-and-hold, owner-occupy-and-invest, or even <a href="https://www.propertyobserver.com.au/landlords/the-pros-and-cons-of-buying-your-first-property-as-an-investment-and-continuing-to-rent/2012031153777">rent-and-invest</a>; at the end of the day, you are an investor. And a darned capable one at that. So get out there, keep an ear to the wall and a foot in the door (so to speak, of course), and consume media made with investor in mind, not just owner-occupiers. Find strength in others around you in the community – these are your comrades. And, after a hard day’s’ work, don’t forget to switch on to your favourite renovation entertainment program to relax.

Cameron McEvoy is a property investor and maintains a blog, <a target="_blank" href="https://propertyspectator.blogspot.com.au/">Property Spectator.</a>
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No matter what it looks like on The Block, property investment is not glamorous

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<img src="/images/stories/1point4percent.gif">
The percentage of Canberrasuburbs with a median unit price of under $300,000, according to RP Data. This is the second-lowest percentage in Australia; Darwin doesn't have a single suburb with a median unit price under $300,000.
 
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<img src="/images/stories/10percent.gif">
The percentage of Melbourne suburbs with a median unit price of under $300,000, according to RP Data.
 
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<img src="/images/stories/14point9percent.gif">
The percentage of Perth suburbs with a median unit price of under $300,000, according to RP Data.
 
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<img src="/images/stories/15point4percent.gif">
The percentage of Brisbane suburbs with a median unit price of under $300,000, according to RP Data.
 
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<img src="/images/stories/16point2percent.gif">
The percentage of Sydney suburbs with a median unit price of under $300,000, according to RP Data.
 
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<img src="/images/stories/38point2percent.gif">
The percentage of Adelaide suburbs with a median unit price of under $300,000, according to RP Data.
 
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<img src="/images/stories/74point1percent.gif">
 
The percentage of Hobart suburbs with a median unit price of under $300,000, according to RP Data.
 
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The number of capital city suburbs with unit prices under $300,000: RP Data

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Ask anyone in real estate about 2011 and they’ll tell you it was a tough year. For the first time in nearly a decade, buyers were no longer prepared to pay the “vendor price” for their dream home. In Melton, the sentiment was no different. Last year, some properties were on the market anywhere from three months up to a year.
Having said that, we definitely didn’t feel the same impact as some of our western counterparts such as Braybrook, whose median price in December recorded a fall of 27% from its peak ($380,000, down from $518,000) or St Albans, which experienced a 18% decline from its peak median price ($360,000 down from $440,000). In fact, recently released <a target="_blank" href="https://www.reiv.com.au/en/Property-Research/Median-Prices/2011-Median-Prices.aspx">REIV figures on 2011 median prices</a> revealed Melton was in the top five growth suburbs for 2011, recording an 8% growth in its median price.
Unlike the majority of Melbourne – the auction capital of Australia – Melton’s modus operandi is a little different. Here, it’s all about the private sale. So while the rest of Melbourne has just kicked into 2012 with its first “super Saturday” last weekend, out in the ’burbs we’ve been back in full swing since the new year.
In the last three months we’ve definitely seen improved confidence, evident in our lower stock levels and quicker turnaround times – just the other day we sold a property within two days! We’ve also just listed <a target="_blank" href="https://www.realestate.com.au/property-house-vic-melton-110027169">a three-bedroom brick home</a> in the heart of Melton that has already gained a lot of interest because its asking price of $239,000 to $245,000 makes it unbeatable value.
So where’s the interest coming from? Right now, it’s the investors who are dominating our market. The small outlay – our median price is $293,500 – needed to buy in one of Melbourne’s top growth suburbs makes Melton the perfect investment for the start-up investor. Not only is impressive capital gains an advantage, but properties are also returning high rental yields substantially higher than Melbourne’s gross house rental yields of 4%<a target="_blank" href="https://m.smh.com.au/business/property/rental-returns-nothing-to-write-home-about-20120215-1t5nu">.</a> Savvy investors recognise now is the time to buy when the market is stable, as opposed to later when the pressure on prices will eventually be greater.
The fact that our median price is nearly half of Melbourne’s ($540,383) also makes our area extremely affordable – and attractive – for first-home buyers. For $250,000, buyers can typically pick up a centrally located three-bedroom brick home on a 600-square-metre block – a bargain for young families looking to upgrade, given the same price wouldn’t even get you a one-bedroom apartment in the inner city.
There’s currently a wealth of buyers waiting on the sideline due to uncertainty around unemployment and interest rates. At the moment they’re holding back but at the end of the day, when people move, it’s for life changes such as growing families, empty nesters downsizing or job relocations that won’t stop because of what’s happening in the market. We’ll see an influx of buyers as confidence continues to grow, which will start driving prices up again.
In Melton, we expect to be in the driving seat as our affordability, infrastructure, space and proximity to the city makes us the perfect choice for young families. We already have one of the highest population growth rates in Victoria at 7.1% – nearly five times the statewide average of 1.5% – and anticipate this will continue growing as buyers start to come out of the woodwork.
Julian Conte has more than a decade experience in real estate and is director of <a target="_blank" href="https://www.hockingstuart.com.au/">hockingstuart</a> Melton and Werribee.
 
 
 
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