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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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This tax pearler is normally associated with the family home, but the federal government eliminated all taxation within superannuation when in the pension stage many years ago.  With the ability to now borrow in superannuation, the astute investor can now leverage his or her superannuation and borrow to purchase property that will become tax free.
While working and paying tax the investor can negatively gear a good capital growth property out of his or her pre-tax income in the same way as if it was purchased outside super. The 9% superannuation guarantee can even be used to fund the negative gearing. The big difference occurs after age 60 when the property in super will attract no tax on rental income or capital gains on sale. Payments from the super fund to the investor are also tax free, and in fact it does not even need to be itemised in the individual’s personal tax return. Outside of super the cashflows would be fully taxable on both the rental stream and any capital gains. This superannuation treatment allows the individual to effectively have the taxation benefits as if they had multiple family homes.
Many people are sceptical about investing in super and argue they are too young, the rules may change and it is too confusing. All valid concerns, but the primary aim of all investors is to make money, and this task is made easier if no taxes are paid. An investment property needs time to do “its thing”, i.e. capital growth, so even the younger generations can benefit. How good would it be to have some of your investments in the “pay no taxes” basket?
This strategy can in some instances apply even before age 60 and has the added benefits of creating an additional land tax threshold and improved asset protection. The benefits are many.
 Ken Raiss is a certified accountant and director of <a target="_self" href="https://www.chan-naylor.com.au/" title="Chan &amp; Naylor ">Chan &amp; Naylor</a> national accounting firm. Ken’s experience lies in working with large publically listed multi-national companies, which gives Ken excellent insight into international market trends. Ken specialises in educating “mum and dad” property investors and small business owners with advice on wealth creation, asset protection, taxation, superannuation and compliance. 
 
 
 
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kenraiss-JsVyb3YKka

How to use your super to buy a tax-free investment property

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“I’m not going to invest in property in 2012! It’s going to be a year full of crises. 
“Just look what’s looming in Europe. The China bubble could burst. And the US could have a double-dip recession.” 
These were the words of two of our friends, Gill and John, as they discussed their plans for this year with me. 
I couldn’t really disagree with some of their predictions about the world economy, but I did disagree with their conclusions. 
Interestingly we had a similar chat at the beginning of last year and the year before. It’s interesting how the conversation seems to turn to property when we get together. And every year they find excuses not to invest. 
They own their own home, have paid off their mortgage long ago and while they understand the need to invest to secure their financial future, they are waiting for a stress-free year – a year without crisis – to get into the property market. 
I explained to them that I don’t think we’ve ever had a year without a crisis. Even if the year starts out looking OK, a terrible crisis happens every year. 
As they’ve owned their home for 20 years I recounted some of the crises that happened in that time – things that came out of the blue and changed market sentiment: 
2011 - Floods in Queensland and Victoria, earthquake in Japan, Middle East uprisings that spread around the world, economic woes in Europe
2010 – A federal election that left us with a virtually hung parliament, European debt crisis
2009 – Global economy nearly collapses
2008 – GFC shard market collapse, company bailouts and the Bernie Madoff scandal
2007 – Mortgage crisis in US – the beginning of the financial crisis
2004 – A tsunami hits south-east Asia (it’s the first time I recollect hearing that word)
2003 – Iraq war, SARS panic, interest rates peak halting our booming property markets
2001 – 9/11 terrorist attack, Afghanistan war, economic downturn in Australia
2000 – Dot.com bubble pops and the share market crashes
1999 -Y2K scare, many people put major decisions on hold
1997 – Asian financial meltdown
1993 - World Trade Center bombing
1991 – The recession we had to have and a major Australian property downturn
1990 - Persian Gulf War, rising interest rates hurt property investors 
I left out lots of events, but think I made my point to Gill and John – you can go back as far in history as you like and there won’t be a crisis-free year. Sure some years are worse than others, but there is always bad news, and much of it is unexpected. 
Where investors get into trouble is seeing these as once-in-a-generation events that will alter the course of history, when in reality they are just the normal path of history. 
I asked my friends what they paid for their home when they bought it 20 years ago: $300,000. 
I then asked what it was worth today, considering properties in Glen Iris, an affluent inner Melbourne suburb, had dropped around 10% in value: $1.4 million. 
I reminded them of all the events that had occurred over those last 20 years and all the reasons they used not to get involved in property and then asked the most telling question of all: 
“If you knew then what you know now, would you have done anything differently when you bought your house 20 years ago?” Their answer: “We would have bought more real estate.” 
I then asked if 10 years ago you would have known what property values would be today, would they have bought an investment property. Sheepishly they had to answer yes. 
So what is different today? 
Sure, 2012 will be a year of crisis and there are things lurking around the corner waiting for us. Things we don’t even know about. 
There are two ways to handle this: 
1. Sell up your assets, have a large cash buffer, hug your loved ones and wait for the sky to fall. 
2. Prepare for the worst but expect the best. 
Do you want to know what I’m doing in 2012?
Last year I sold three properties that no longer suited my investment strategy, and I’m actively using these funds in the property market this year. I’ll explain exactly what I sold and what I’m buying at our upcoming <a href="https://www.propertyupdate.com.au/2012-events/national-property-and-economic-market-update/">National Property and Economic Update</a> one-day trainings around Australia over the next few weeks. 
In fact they start in Brisbane tomorrow, March 10, so if you haven’t reserved your place yet, please click here now, find out all the details and join me plus property analyst Michael Matusik, finance strategist Rolf Schaefer and tax expert Ken Raiss.
 
Some people and some companies prosper during a downturn 
Remember that countries, companies and individual investors can prosper in the face of constant crises. During those last 20 years the value of properties in Australia went up by billions of dollars irrespective of who owned them. 
Companies like Apple, Google and Facebook started in teenagers’ bedrooms and became global juggernauts despite years of crises. 
So what’s the lesson? 
The lesson from all of this is:
<ol start="1">
<li>Don’t panic and make emotional decisions</li>
<li>Learn from history</li>
<li>Review your current property portfolio</li>
<li>Refinance if you can to top up your financial buffers</li>
<li>Take appropriate action – whatever this may be for you: 
<ul>
<li> Maybe you should sell an underperforming property rather than hoping it will increase in value, recognising that the gap between your property and better performing assets will only widen</li>
<li>Perhaps you should buying more properties </li>
</ul>
</li>
</ol>
Of course in the short term our property markets will be driven by market sentiment and microeconomic factors. 
But in the long term the value of well located properties will rise propelled by the twin factors that have always driven long-term property prices – population growth and the wealth of the nation. Both will increase substantially. 
I believe the wise King Solomon had an inscription in his ring to keep him humble during good times and give him hope during bad times – This too shall pass. 
Yes, 2012 will be a year of confusion and concern. 
But this is a perfect time for sophisticated property investors, as the ultra-successful always use downturns to create wealth, knowing that average Australians sit in fear waiting for the recovery.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
 
 
 
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myardney-DFoGhGbSJX

If you wait for a perfect year to invest in property, you will never start

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<img src="/images/stories/26per.gif" style="border-style: initial; border-color: initial;">
The percentage of homes that sold at auction in 2011 in Sydney's inner west. This is down from 27% in 2010.
 
<hr>
 
 
<img src="/images/stories/26per.gif">
The percentage of homes that sold at auction in 2011 in Sydney CBD and eastern suburbs. This is down from 28% in 2010.
 
<hr>
 <img src="/images/stories/21per.gif">
The percentage of homes that sold at auction in 2011 in Sydney's lower north suburbs. This is down from 24% in 2010.
 
<hr>
<img src="/images/stories/15per.gif">
The percentage of homes that sold at auction in 2011 in Sydney's southern suburbs. This is down from 17% in 2010.
 
<hr>
 
<img src="/images/stories/14per.gif">
The percentage of homes that sold at auction in 2011 in Canterbury and Bankstown. This is down from 17% in 2010.
 
<hr>
 
<img src="/images/stories/13per.gif">
The percentage of homes that sold at auction in 2011 in Sydney's upper north shore. This is down from 15% in 2010.
 
<hr>
 
<img src="/images/stories/10per.gif">
The percentage of homes that sold at auction in 2011 in Sydney's northern beaches. This is down from 12% in 2010.
 
<hr>
<img src="/images/stories/6per.gif">
The percentage of homes that sold at auction in 2011 in Sydney's south-western suburbs. This is down from 7% in 2010.
 
<hr>
 
<img src="/images/stories/6per.gif">
The percentage of homes that sold at auction in 2011 in Sydney's western suburbs. This is down from 7% in 2010.
 
<hr>
 
<img src="/images/stories/5per.gif">
The percentage of homes that sold at auction in 2011 on the Central Coast. This is the same as in 2010.
 
<hr>
<img src="/images/stories/3per.gif">
The percentage of homes that sold at auction in 2011 in the Blue Mountains. This is down from 4% in 2010.
Source: Australian Property Monitors
 
 
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cknowlton-QnEa6ntUYP

Fewer Sydney vendors selling by auction: What percentage of homes sold under the hammer? A regional breakdown: APM

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<a href="https://www.propertyobserver.com.au/tax/smsf-gearing-versus-personal-gearing-in-residential-and-commercial-property/2012030753629" target="_blank">Yesterday </a>we looked at an example of personal gearing versus SMSF gearing.
Before gearing a property, it is advisable to ask your accountant and/or financial planner to do some projections to determine whether you may be best to gear in your own name or through your SMSF. 
Points to discuss with your professional adviser when working out your investment projections for an investment property include: 
1. How long should I expect the property to remain negatively geared? Factors to consider here include the size of deposit paid, expected capital repayments and expected rental yield. Higher-income earners in particular will reap much bigger negative-gearing tax benefits than a concessionally taxed super fund. But once the investment becomes positively geared, rent is subject to lower taxes if it is within a super fund. 
2. What is the likely capital growth of the property? The greater the capital growth, the greater the capital gains tax (CGT) savings if held in a super fund – particularly if the property is sold when backing a superannuation pension (when CGT no longer applies). 
3. What if the property’s value falls during my ownership? Paul Banister, tax partner of accountants Grant Thornton in Brisbane, stresses capital losses in an investor’s own name are more valuable to offset present and future personal capital gains than losses in a super fund. And once the property is backing the payment of a pension, capital losses have no value because the asset is no longer taxable. 
4. Should I maximise my concessional super contributions? The making of more concessional contributions within your annual contribution cap to help with the cashflow of a fund-held investment property can provide immediate tax breaks. 
Concessional super contributions are taxed at just 15% – not the usual marginal rates applying to your personal income. This means, for instance, a taxpayer with a 38.5% marginal rate receives an instant 23.5% tax break. (Concessional contributions comprise mainly salary-sacrificed, compulsory and tax-deductible contributions by the self-employed.) 
5. Is it realistic to aim to sell an SMSF-held property in the CGT-free pension phase? The answer depends on a range of factors including your age. A young investor, for instance, may be most unlikely to keep a property until nearing retirement (when eligible for a transition-to-retirement pension from age 55) or in retirement. 
Banister says when making a decision about whether to gear a property in super or in your own name “involves trade-offs”. 
While gearing in your name can provide more immediate tax subsidies from personal negative gearing, holding property in superannuation may produce, according to the circumstances, more tax benefits over the long-term including the possible elimination of CGT. Another issue is that it costs more to setup a gearing arrangement through a SMSF than in your own name.
 
 
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mlaurence-vhAHaLZT8y

Five questions to ask when deciding between SMSF gearing and personal gearing in property

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The growing savings culture of Australian households has been graphically revealed in the latest RBA Chart Pack, which shows the household savings ratio at a near 25-year high.
<img src="/images/stories/rbamarch81.jpg">
At the same time, net household wealth has declined to well below pre-GFC levels, matched by a steady fall in the value of residential property relative to household income and an increase in household debt from 50% to 150% of income.
<img src="/images/stories/rbamarch82.jpg">
A graph on credit growth by sector shows how mortgage lending growth has fallen since 2004, while personal lending continues to contract (as households deleverage). Business lending seems to be rising up from the doldrums.
<img src="/images/stories/rbamarch83.jpg">
The chart pack also shows the collapse in demand for new homes, with detached housing approvals falling steadily since about 2008. The chart also shows the long-running volatile nature of unit approvals.
<img src="/images/stories/rbamarch84.jpg">
 
 
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Household savings ratio at near 25-year high as wealth and mortgage growth decline: RBA charts

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8/447 Sydney Road, Balgowlah, NSW, 2093
<img style="border-style: initial; border-color: initial; max-width: 480px;" src="/images/stories/sydneyrd.jpg"> 
With tenants paying the "fantastic rent" of $550 per week, this two-bedroom apartment in the Sydney northern beaches suburb of Balgowlah could be a good prospect for investors. Ray White agent Mark Griffiths says although the tenants of two years are on an expired lease, their rent was reviewed recently and ithe tenants are paying considerably above average rent for the block. The median asking rent for Balgowlah units is $500 per week, according RP Data.
Griffiths <a target="_blank" href="https://www.raywhite.com/nsw/balgowlah/745945/">is marketing the property</a> with price hopes of $410,000. If it sells for $410,000, that would secure an investor a gross rental yield of 7%, far higher than the indicative gross rental yield of 4.2% for Balgowlah units, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees.
<a target="_blank" href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT">Washington Brown</a> estimates the first-year tax depreciation deduction to be $8,000 and over five years to be $28,000.
The median unit price for Balgowlah fell by 12.5% in the past year, according to RP Data.
The property will be open for inspection on Saturday, March 10 at 2pm and will go to auction on Saturday, March 24 at 2.30pm.
For more about prices and yields in Balgowlah, see the <a target="_blank" href="/news">RP Data suburb page</a>.
For another investment prospect open for inspection this weekend, see page 2.
 
<hr class="system-pagebreak">
 
10/16 Pascoe Street, Pascoe Vale, VIC, 3044
<img style="border-style: initial; border-color: initial; max-width: 480px;" src="/images/stories/pascoest.jpg"> 
This two-bedroom Pascoe Vale townhouse is tenanted until January 2013 at $18,720 per year, so it might be a good prospect for investors. Raine &amp; Horne agent Sebastian Rello <a target="_blank" href="https://www.propertyobserver.com.au/https://www.raineandhorne.com.au/properties/205665">is marketing the property</a> with price hopes of $380,000 plus, and if it sells at $380,000 that would secure an investor a gross rental yield of 4.9%, far higher than the indicative gross rental yield for Pascoe Vale houses of 3.3%, according RP Data.The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees.
<a target="_blank" href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT">Washington Brown</a> estimates the first-year tax depreciation deduction to be $9,000 and over five years to be $32,000.
The median unit price for Pascoe Vale houses fell by 5.1% in the past year, according to RP Data.
The property will be open for inspection on Saturday, March 10 at 11am and will go to auction on Wednesday, March 31 at 2.30pm.
For more about prices and yields in Pascoe Vale, see the RP Data suburb page.
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Friday form guide: Yields of up to 7% in Balgowlah

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The most recent data about the cost of rental accommodation has revealed a substantial decline in the provision of affordable rental accommodation throughout Victoria.
This has occurred at the same time as we are experiencing the most substantial shortage of rental accommodation in the last few decades. The shortage of housing put pressure on rents, with an outcome of far fewer affordable rental homes.
The data, sourced from the Victorian government’s Office of Housing, tells the story.
In the decade between the September quarters of 2001 and 2011 there was a 55% reduction in the number of affordable rental homes in Melbourne and a 19% reduction in regional areas. A decade ago Melbourne had about 14,000 affordable rental homes – now it is about 8,700.
This translates to greater competition for the few affordable rental homes that are available, and tenants having to pay rents that they cannot afford or being forced to live in areas far from employment.
The location of affordable rental homes has also changed. The highest availability for affordable rental homes is in regional Victoria, and what few affordable rental homes were available in Melbourne’s middle suburbs have disappeared.
A decade ago 50% of rental homes in the City of Knox were affordable, and now only 6% are. During the same time there was a drop from 47% to 3.5 per cent in the City of Maroondah and from 28.5% to 1.7% in the City of Moreland.
To address this problem the state government needs to increase direct investment in affordable and low-cost public housing, remove the opportunist taxes on investors and reducing the cost of development by improving the planning process.
Enzo Raimondo is CEO of the <a href="https://www.reiv.com.au/" target="_blank">Real Estate Institute of Victoria</a>.
 
 
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Government should step in as number of affordable rental properties dwindles

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Australian house prices could decline by more than 5% in 2012 if China's economy experiences a soft landing with GDP growth at about 8%, according to Standard &amp; Poor’s.
But in the event of the less-likely scenario, under which China's economy slows to 5% GDP growth, Australia could be sent into recession.
China's hard landing likely flow-on effect of higher unemployment could trigger a sharp decline in Australian house prices of 20% or more, according to S&amp;P who rate the prospect of a hard landing happening at 10%. The other scenario - a medium landing - would trigger a 10% price fall, it envisaged with the prospect of a medium landing happening given at 25% chance.
S&amp;P analysts Craig Parker and Vera Chaplin see a soft landing as the most likely scenario.
The report noted the insatiable demand for commodities from China and other Asian trading partners has kept Australia in good stead relative to most other Western economies during the current global economic slowdown.
While China's growth slowed to 9.2% in 2011 from 10.4% in 2010 due to a weaker global economy and efforts by the Chinese government to control inflation, Standard &amp; Poor's expects China to experience a soft landing in 2012, with forecast GDP growth of 8%.
“Based on this scenario, we expect the Australian economy to continue its moderate growth path and that the performance of the Australian housing market will soften further but not experience a sharp decline given the sound economic outlook,” Parker and Chaplin say.
“In this scenario, we expect the impact on both mortgage defaults and loss-given default to be muted and remain at relatively low levels as we expect the unemployment rate to increase marginally and property price decline to continue its recent softness.”
The report indicated that although Australian residential property prices have softened with Australian capital city dwellings losing about 4.8% of their value in 2011, a supply shortage and demand-side factors (such as falling mortgage interest rates, government assistance to first-home owners, strong labour market conditions and population growth) have prevented a more precipitous decline in asset prices.
But any increase in the unemployment rate and weaker or negative growth in household disposable income are likely to be the key drivers of mortgage default in the coming years.
“Sharp increases in unemployment will be likely if Australia experiences a significant economic slowdown,” the report says.
“Rising unemployment has been a strong precursor to mortgage defaults as evidenced in the early 1990s recession.”
It notes mortgage default rates can be masked in a strong economic environment with vibrant property prices, as borrowers have more options to refinance or adjust their financial position by downsizing their debt exposures.
The report noted that the credit quality of most Australian residential mortgage-backed securities (RMBS) was likely to remain stable, despite renewed uncertainty over the global economic outlook and growth prospects for China.
“However, subordinated RMBS could be vulnerable – with possible downward-rating biases – if China were to experience a harder landing, thereby adversely affecting Australia's mining sector and the overall economy.”
While Standard &amp; Poor's Ratings Services expects the performance of the housing market and housing loans to weaken, the credit enhancement available to Australian senior RMBS is likely to withstand a worsening of portfolio credit quality.
Australian subordinated RMBS would be sensitive to the effect of a downturn on the financial strength of Australian lenders mortgage insurance providers.
 
 
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Australian property price catastrophe if China’s growth stalls: S&P

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In recent months, senior Reserve Bank officials, including the governor Glenn Stevens, have gone out of their way to say that the central bank remains in control of monetary policy despite the increasingly independent setting of rates by the major banks. Today deputy governor Philip Lowe took that argument a significant step further.
There has been a sense of increasing frustration within the RBA at claims that it has lost control of monetary policy to the major banks as a consequence of their decision to make rate movements above and below the movements in official rates and, in ANZ’s case, to flag that its interest rate committee would meet monthly and review its rates independently of the RBA’s decisions. 
At a hearing of the economics committee last month Stevens said the bank had made it "repeatedly clear that the shifting relationship between the cash rate and other interest rates in the economy is a factor that the board takes into consideration in setting the cash rate and that will, of course, remain the case".
"Recent developments (the majors’ decision to raise their home loans despite the cash rate being left unchanged last month) do not in our view materially affect the capacity of monetary policy to achieve its goals."
At that same hearing, assistant governor Guy Debelle articulated the reason for much of the confusion about the relationship between the cash rate and bank interest rates.
He said bank spreads – the rates they pay for their funding relative to benchmark rates, including the cash rate – have gone up. "That is unambiguously the case," he said.
There was, however, some confusion between ’levels’ – the absolute level of rates – and spreads. The levels had in some cases come down, he said, but they just hadn’t fallen as much as the cash rate has fallen.
So, absolute rates – including mortgage rates – have fallen but not as much as the cash rate because the margins, or spreads, over the benchmark rates that the banks have been charged by investors for their own borrowings, including the cash rate, have widened.
Today Lowe, answering questions after giving a speech to the Australian Industry Group in Sydney, said banks’ decisions on rates weren’t a major concern for the RBA.
"The key question for us is, if the banks move independently of the Reserve Bank, whether than undermines the transmission mechanism of monetary policy," he said.
"I think the answer to that is that it does not. It certainly throws sand in the wheels of the transmission mechanism but there are other things that throw sand in the wheels as well."
He said the bank was confident that changes in monetary policy remained a very important influence over lending rates within the economy and that in setting monetary policy the bank took into account what was going on with lending rates.
To reinforce that point, which other senior RBA officials have been making, he said something that ought to give Treasurer Wayne Swan and other strident bank critics paused for very serious thought.
"The current cash rate is at least 100 basis points lower than it would be if this widening in the (bank) margins had not taken place."
In other words, if the banks had simply done as the Treasurer insists they should have and moved rates strictly in line with the RBA’s cash rate the official rate would be 5.25%, or more, rather than its current setting of 4.25%.
What that says very clearly is that, while the RBA might have to try to second-guess the banks’ responses to movements in the cash rates, and there might be occasions where it over-estimates those responses, it is very comfortable that it can factor their likely rate movements into its own decision-making and therefore ensure that it gets the monetary policy settings – and the lending rates – it is targeting.
That process might have been slightly easier when the banks simply passed on the movements in the cash rate but it is obvious from the RBA officials’ commentary that the bank both accepts and understands the funding cost pressures the banks have been experiencing and incorporates into its own rate decisions to ensure that it retains the most decisive influence over the absolute level of interest rates borrowers are being charged.
The way monetary policy is being implemented might have been tinkered with but it is obvious the RBA believes that its pragmatic approach to the position of the banks post-crisis has ensured it remains as effective as it has ever been.
Whether it were achieved by the banks not fully passing on reductions in official rates, or by the RBA not reducing official rates by as much as it has, today’s mortgage and other borrowing rates would therefore be more or less the same, or perhaps even a little higher. It is, of course, a more effective political strategy to accuse the big banks of profiteering rather than criticise the RBA for setting rates it believes are most appropriate for the economy.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator</a>.
 
 
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The RBA's pragmatic push-back: Stephen Bartholomeusz

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A poor-quality jobs number combined with the<a target="_blank" href="https://www.propertyobserver.com.au/economy/christopher-joyes-video-take-on-today-s-gdp-figures/2012030753726"> poor GDP print</a> increases the chance of a rate cut in April or May. The RBA may wait to see the inflation data, and it will also be influenced by what the banks do with lending rates.
Funding costs in recent months have declined appreciably, so it will be interesting to see if banks try to undertake any further margin expansion.


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