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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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.

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<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.

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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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Residential construction activity fell 1.8% in the final quarter of 2011 to be 6% lower than a year ago, according to the latest data from the ABS. 
Overall construction work done fell by 4.6% in the December quarter after surging 11.7% in the September quarter. 
This was mainly the result of a 24.4% decline – expected to be temporary – in construction work done in WA. Construction in WA rose by 45% in the previous quarter. 
“We are not of the view that WA’s engineering construction boom is over. Recent project announcements for the expansion of iron ore projects are but one example pointing to the opposite,” says CBA economist James McIntyre. 
Commercial building work done fell by 7% in the December quarter while engineering work done fell by 5%. 
The drop in overall construction activity will drag on economic growth, with the Commonwealth Bank trimming its GDP forecast slightly as result of the latest figures. 
The CBA had forecast annual GDP growth of 3.25% for 2012. 
“Construction work done provides a guide to the likely contribution to GDP from residential and non-residential (commercial and engineering) construction activity,” says McIntyre.
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Master Builders Australia (MBA) chief economist Peter Jones says the fall in building and construction work done in the December quarter is consistent with reports of poor industry conditions.
“With major parts of the industry caught in the slow lane of the two speed economy, the RBA needs to cut rates further,” says Jones.
“[December] figures confirm evidence from Master Builders’ latest survey showing builders expect industry activity to fall as trading conditions and profitability weaken.
“The ABS release shows that building work yet to be done and in the ‘pipeline’ suffered a sharp decline in the December quarter, in line with Master Builders’ information that builders are suffering a downturn in sales and enquiries.
“There is no indication that the negative growth trend firmly established in both the residential and commercial building sectors will turn around without further policy change,” says Jones.
 
 
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Residential construction down 1.8% in December quarter led by drop in WA activity: ABS

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The appeal of new residential property is growing among first-home buyers, investors and overseas buyers, according to NAB’s latest quarterly residential review. 
While owner occupiers remain the biggest category of new home buyers, their share of the market fell sharply in the final quarter of 2011 from 52% to 38%. 
A combination of lower rate and softer prices resulted in first-home buyers accounting for nearly a quarter (24%) of new home buyers in the December quarter, up from 17% in the September quarter. 
Investor numbers increased from 4% to 8% spurred on by lower rates and softer prices as well as stronger rental returns. 
Overseas buying activity doubled from 4% to 8% with NAB noted was consistent with some recent reports of strong foreign buying activity in the apartment market.
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NAB expects these trends to stay broadly unchanged over the next 12 months.
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According to the survey of 270 real estate industry particpants, demand for new residential property is expected to strengthen across all property types over the next 12 months, led by inner-city low-rise apartments and townhouses, where demand conditions are expected to be good. 
Demand for inner-city houses is also expected to strengthen, especially in NSW, with demand conditions approaching good. Demand is expected to remain weakest for high-rise apartments in the middle/outer ring, although somewhat stronger than in September, with demand for this type of property weakest in SA/NT, Victoria and WA.
 
Currently, the most popular new property types are inner-city low-rise apartments and townhouses, followed by inner-city detached housing, with demand strongest in NSW and Victoria.
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There was a slight improvement in demand for new residential houses and low-rise apartments and townhouses in the middle and outer ring of major cities during the December quarter. 
In contrast, demand for all other types of new residential property weakened relative to the September survey.
 
 
 
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More first-home buyers, investors and overseas buyers keen on new property: NAB

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Nearly two-thirds (65%) of Australians will consider an alternative mortgage lender to the major banks this year, according to the 2012 Citi Fin-Q Survey.
The same percentage of respondents say there is not enough competition in mortgage lending.
The results were based on online interviews with 500 participants in Australia carried out in December 2011, during a time when variable interest rates were falling.
The survey also found a high level of negative sentiment about the mortgage market, with 70% saying the government needs to do more to help first-time buyers and 63% saying they don’t believe home ownership will be an option for the next generation of Australians.
Vibha Coburn, director of Citibank Mortgages, says the findings point to a trend of Australians looking at all their options when choosing a home loan.
“Despite the doom and gloom from our survey respondents, I believe the fact that Australians will look at mortgage providers outside the big four when choosing their home loan is a positive sign,” she says.
“Regardless of which home loan you choose, the best thing you can do is to conduct your own research and compare a range of products and lenders to find the most suitable solution for your needs.”
The survey also found that more than one in ten (11%) people have moved or downsized in the last 12 months to lower their costs and nearly two-thirds (62%) have indicated that home ownership is so expensive, they’ve adjusted their expectations about what their dream home might look like.
“At Citibank, we’re seeing a trend where customers might sacrifice the size of a property to live in a particular location or vice versa.
“This could mark a return to eras gone by when first-home buyers bought an entry-level property with the aim of upgrading to another larger property, or a property in another area,” Coburn says.
To learn more about refinancing your mortgage, <a href="http://propertyobserver.com.au/ebooks/free-ebook-12-tips-for-refinancing-your-mortgage" target="_blank">download our free eBook</a>.
 
 
 
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Two-thirds of borrowers to look beyond big four banks for mortgages: Citibank 

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Perth sales up almost 70% on the same week last year: REIWA

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The insurance industry has come under heavy fire for the way it handled claims from those who suffered property and other losses in the wake of the flood disasters in Queensland and Victoria, following the release of the much-awaited parliamentary report chaired by Labor MP Graham Perrett.
The House of Representatives Legal Affairs Committee report In the Wake of Disasters provides numerous examples of the delays, frustrations and heartache suffered by some claimants due to insurance companies’ responses. More than three-quarters (78%) of 625 people surveyed as part of the report said their claim had been settled “slowly” or “very slowly”. More than 75% of those surveyed said their claims related to home and contents insurance. “Victims of extreme weather events all over Australia faced unacceptable delays in the assessment of their claims; misunderstandings about the scope and extent of their polices; a lack of information or communication from insurers; discrepancies or inaccuracies in damage assessments or third-party expert reports; and token efforts at dispute resolution,” says Perrett in his introduction to the report.
“Those who tried to assert their rights in the labyrinth of the claims process found themselves on the wrong side of a power imbalance.
“The committee concluded that consumer protections need to be increased, particularly in the claims-handling process. The best way to do this is to remove the legislative exemptions that the insurance industry currently enjoys, and bridge the gaps in consumer protection.” 
Perhaps the most damning line in the lengthy report is: “Indeed, the greater the disaster, the greater the vacuum of consumer protections”.
The report recommends that corporate watchdog ASIC be appointed to oversee the handling and settlement of claims, along with a host of changes to the way insurance companies interact with claimants.
Among the 13 recommendations made in the report, the committee wants General Insurance Code of Practice to be amended by July 1, 2012 to include the following minimum standards for claims handling in times of exceptional circumstances such as declared disasters:
<ul>
<li>a timeframe for informing claimants of the progress of the claim; </li>
<li>a timeframe for advising claimants if an external expert has been appointed; </li>
<li>assurance that external experts are fully qualified to undertake assessments; </li>
<li>an undertaking to provide claimants with information about the qualifications, employer, and role of external experts that are appointed to assist with their claim;</li>
<li>a maximum timeframe of 12 weeks for external experts to provide reports; </li>
<li>a maximum timeframe for accepting or denying a claim; </li>
<li>a timeframe for responding to requests for information; </li>
<li>an undertaking to communicate all decisions about insurance claims to the claimant in writing with clear and explicit reasons relating to their particular claim; and </li>
<li>a timeframe for informing claimants of the progress of their complaint or dispute.</li>
</ul>
Other key recommendations include that Bill Shorten, the Minister for Financial Services and Superannuation, “immediately establish a joint industry-government action group to address evidence of the rising costs and market failure of insurance premiums across Australia”.
<a target="_blank" href="https://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=spla/insurance/report/index.htm">The full list of all 13 recommendations of the report can be found here.</a>
“I urge governments and the insurance industry to implement these recommendations with the utmost speed so that policyholders can have peace of mind for future, inevitable natural disasters,” says Perrett.
The report includes numerous examples of submissions made by exasperated claimants in relation to property claims, such as: “I have had five people come to assess my property and still nothing has happened”. 
The Caxton Legal Centre told the inquiry it had cases where hydrologists had still not visited a person’s property six and seven months after the event. 
Residents in Loddon Shire in rural north-west Victoria told the inquiry they felt they had been neglected due to their rural location or distance from major centres, and that larger towns and more vocal groups had been given a higher priority. 
“Central Goldfields Shire residents queried whether the ‘lack of publicity affected the willingness of insurance companies to come to the party’,” the report says. 
“Some residents met with further disadvantage due to their rural locations: vouchers provided by insurers for replacing house contents could only be used at designated retailers out of town, some more than kilometres away.” 
The report notes that in many instances “insurers did not meet the standards, in particular the timeframes, contained in the code when responding to the large volumes of claims arising from natural disasters.” 
One person recounted that “the process of dealing with the insurance company was more stressful than the actual natural disaster”. Another said “the stress of following up with the assessor appointed by the insurance company and the insurance company itself was far worse than dealing with the clean-up”. Yet another recounted that “due to the lengthy time response, my husband and small family are hurting more mentally and emotionally than the actual financial loss”.
Responding to the report, ICA chief executive Rob Whelan says the general insurance industry had handled “an unprecedented 275,000 claims stemming from extreme weather in 2011, with insurance losses of almost $5 billion”. 
Whelan says many of the Perrett report’s recommendations listed changes already enacted by either the insurance industry or the federal government. 
He says current dispute resolution processes had proven robust and effective, and further government and regulator intervention are not necessary.
Photo courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
 
 
 
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Insurance changes needed to better protect consumers in disasters: Report

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The auctions are back on again, and the chatter about what is happening on the 2012 property market has started. By Labour Day the trickle of opinion on the state of the market will turn into a flood.
The big question for many of you right now may well be: Should we buy the family home in Brighton or Hawthorn now – or should we wait till later in the year? You may be worrying about what’s happening to the economy and wondering how it’s going to affect the property market.
But the fact is it’s still impossible to say what’s happening on those two fronts. And whether you decide to buy now or later in the year, first you need to work through your home-buying plan for 2012. To some people this is an amazingly difficult ask. But I can assure you that if you make a sensible plan and follow it, it’s a Black Caviar certainty you’ll buy a house that suits your needs, makes your family happier and lets you retire earlier.
Your plan should include both financial and emotional outcomes. Financial outcomes include whether you aim to minimise debt as soon as possible and whether you want your home to help you build wealth. Emotional outcomes are about what kind of property will maximise your family’s happiness and wellbeing.
Your plan will of course be very different depending on what stage of life you are at, whether you’re a single, couple, have young children or older children, are in mid-life or retirement.
So grab your iPad or a piece of paper and pencil and divide a page into three columns. At the top of column 1 write ‘Position’; at the top of column 2 write ‘Property’ and at the top of column 3 write ‘Price’.
This is where you answers will go –what about the questions?
Start with the emotional outcomes. If you are a single or child-free couple you might be focusing on car spaces, benchtops or a groovy locale. But think in terms of a bigger picture. Imagine your life five years from now. Maybe you’ll meet somebody, leave somebody, get a job, lose a job, go to Nepal, discover the punt. The point is your price column shouldn’t tie you down to a life of endless mortgage payments; your property column should have room for a spouse or child or renter; and your position should go beyond the one funky suburb. Your best emotional outcomes are flexible ones.
If you have young children, your focus will be on how the house can accommodate you all happily as the family grows. So think hard when filling in the ‘Property’ column on how the floorplan can combine supervision with some separation. With older children your emotional focus is schooling and transport. So when you fill out the ‘Position’ column, remember that where you live in relation to schools and public transport determines how much time you’ll spend driving the kids around in the car.
In the mid-life stage, there’s a chance you’ll make a big dramatic life change – move to the country or overseas. But when you look at ‘Price’ be careful you don’t rule out the possibility you may want to come back to a home in the city. In the retirement stage your emotional focus will move back to the ‘Position’ column – to somewhere you can easily walk to a cafe, catch a train and see your doctor.
In terms of the financial outcomes in your life your answers will revolve around growth (building wealth to give you choice later in life), cashflow (allowing you to live for the now) and risk (allowing you to sleep at night). All boring but necessary.
Once you have a PPP plan, looking at each home becomes much easier and quicker because you know what you want. You can assess each home against your plan rather than looking at each home and then trying to work out a plan to fit.
If your PPP plan is functioning, well then the question asked at the start, “Do I buy now or do I wait?” can be answered relatively easily. It’s not so much about getting the timing right, but about the property itself: does it meet my PPP plan and does it feel right? Yes? Well then, buy it! No? Wait and keep looking.
 
Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" target="_blank" title="James Buyer Advocates"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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maljames-vHwm28JUAa

To buy the best property for your needs, you need a plan

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The former Ritz Carlton/Stamford Plaza hotel site in Double Bay is back on the block, with Kevin McCabe’s Scarborough Pacific Group listing the residential high-rise development prospect.
CBRE is marketing the Cross Street property following recent development approval for a complex with 78 apartments along with a 600-seat cinema complex with five screens.
<img src="/images/stories/cinemadoublebay2.jpg">
Architects PTW designed the eight-storey U-shaped building, which will feature views over Sydney Harbour. The hotel closed in 2009. 
Scarborough took over control of the project from the beleaguered Ashington group, which failed to get either Woollahra Council or state government approvals given heights concerns. The original proposal from Ashington was 14 storeys.
The last sale of the six-storey complex is unknown, but it has been reported the 2008 purchase by Ashington was $81.5 million.
It’s been reported that <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/double-bay-cinema-and-residential-project-approved-after-planning-panel-cuts-it-down-to-size/2011121552847">since its December 2011 development approval</a>, Scarborough has been approached by a number of parties looking to acquire a stake, despite the number of floors being trimmed back, along with the profit margins, from nine floors to eight to secure approval.
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The expressions-of-interest campaign could result in McCabe either selling the development or striking a partnership deal.
The development will reportedly have an end value of about $230 million.
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McCabe has told Fairfax Media that demand for such a prized location, with full planning permission, was hardly surprising.
“Double Bay … is one of the jewels of Sydney’s exclusive eastern suburbs” and ranks as one of “Australia’s most densely populated areas”, he said.
 
 
 
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Controversial Double Bay high rise hits the market in new twist to four-year saga

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There appears to be no relief in sight for residential builders, with new home sales declining by 7.3% in January, according to the latest HIA - JELD-WEN New Home Sales report. 
CommSec economist Savanth Sebastian says new home sales have slumped to their lowest levels in more than 11 years and the lack of activity in the home building sector does not bode well for a raft of businesses. 
“While the Reserve Bank doesn’t seem in a rush to cut rates, the ongoing downturn in the residential building market certainly keeps another rate cut on the table,” Sebastian says. 
A graph prepared by the HIA shows that new home sales have been in decline since about May 2010 (there was a brief modest recovery from March 2011 to May 2011), with current dwelling sales volumes around half of what they were three years ago.
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Detached house sales fell by 7.4% in January and eased by 0.5% over the three months to January 2012. 
Detached house sales are down 11.9% compared with the three months to January 2011. 
The more volatile apartment market partially reversed its big jump of December 2011 by falling by 6.3% in January this year. 
Multi-unit sales are down 14.1% over the January quarter to be down by a substantial 25.1% when compared with the three months to January 2011. 
“A sharp decline of 19.6% in detached house sales in Victoria weighed on the overall January result,” says HIA chief economist Harley Dale. 
“Nevertheless, there were also declines in detached house sales in New South Wales and South Australia in the first month of 2012, so the overall update is a weak one.” 
“Victoria for a long time propped up new home building in Australia, and now the reverse is occurring,” says Dale. 
According to Dale, the latest new housing data indicates that the interest rate cuts of late 2011 were insufficient to generate a sustained improvement in new home building conditions and highlights “the inappropriateness of the rise in interest rates” in February. 
“New home sales, along with other leading housing indicators, are showing that other large markets in Australia are not filling the void in 2011-12.” 
“However, there is an upside given the current weak new home building environment. Now is a very good time to be building a new home for those who are financially set to take such a decision,” he says. 
Dale repeated the HIA’s demand for federal and state governments to “embark on policy reform to reduce the excessive and inefficient taxation of the new home building sector”. 
“Such reform would embolden households to engage in building a home while enhancing economic activity, efficiency, and productivity. It’s a no-brainer.” 
The HIA report is based on a survey of Australia’s 100 largest builders.
 
 
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New home sales at 11-year low led by big drop in Victoria: HIA

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Total superannuation assets increased by 11.5% during the year to June 30, 2011 to $1.34 trillion, according to the Australian Prudential Regulation Authority.
Of this $810 billion is held by APRA-regulated superannuation entities and $407.6 billion are held by self-managed superannuation funds (SMSFs), which are regulated by the ATO.
The remaining $117 billion comprises exempt public sector superannuation schemes ($80 billion) and the balance of life office statutory funds ($36 billion).
The number of SMSFs grew by 7.2% to 442,528 funds during the 2011 financial year, according to the latest APRA report.
Of the total assets held by entities with more than four members, 42% of assets ($376 billion) were held in the default investment strategy.
Industry funds held 64% of assets in the default investment strategy, followed by corporate funds with 53%, public sector with 51% and retail funds with 20%.
At June 30, 2011, the majority of default strategy assets were held in equities: 28.8% in Australian shares and 23.5% in international shares.
A further 13.5% were held in other assets, 10% in Australian fixed interest, 9.5% in property, 8.4% in cash and 6.2% in international fixed interest.
Of entities with more than four members, 68% offered investment choice to their members.
Retail funds offered the greatest number of investment choices to members, with an average of 255 options per fund.
Industry funds offered an average of 10 investment options per fund, public sector funds offered an average of nine investment options per fund and corporate funds offered an average of six investment choices per fund.
It noted over the 15 years to June 2011, the average rate of return for the superannuation industry was 5.2% per annum and when adjusted for the 2.7% per annum inflation provided a real return of 2.5% a year.
 
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Self-managed super fund numbers jump 7% in a year

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Today I want to talk about our $100 million housing challenge to US fund manager Jeremy Grantham, and a new revolution in trading and risk management that is about to hit our financial markets. But first some background.
Regular readers will know that after years of research and development, Rismark designed the intellectual property that allowed it to introduce Australia’s first “hedonic”— or “quality-controlled” —house price indices with its strategic partner, RP Data, which is the nation’s largest real estate data company.
We also broke new territory by producing dependable “monthly” measures of house price movements (APM and the ABS report quarterly), and by publishing “seasonally adjusted” index numbers for the first time.
Finally, we extended our house price index coverage to include non-capital city, or “regional” markets, which while accounting for 40% of all dwellings by number, had historically been neglected by major index suppliers.
On every step of this complex journey we have consulted closely with, and often been guided by, academic, government and industry authorities, such as the RBA.
Today it is safe to say that despite a number of competitive alternatives, RP Data-Rismark’s index suite is recognized as the market leader.
There were two key reasons why we spent so much time and effort transforming Australia’s house price technology. And the first motivation led to us inevitably addressing the second.
Approximately 11 years ago I was in between jobs at Goldman Sachs and the RBA. At that time, most Australian house price indices were based on notoriously unreliable “medians”, and therefore problematically poor.
This would emerge several years later as a serious policy issue targeted by the RBA and Treasury for analytical remedy. That is, government economists pro-actively called for the development of new house price measurement tools.
Financial contracts tied to house price indices, otherwise known as derivatives, also did not exist. It was not until mid-2006 that the Chicago Mercantile Exchange would launch the world’s first house price index “futures” market based on the popular Case-Shiller indices.
This was also several years before I started working on <a href="https://mrcltd.org.au/research/home-ownership/volume_1.pdf" target="_blank">my 380-page paper</a> on housing policy for then prime minister John Howard. In that study, I noted, “while there are exceedingly sophisticated capital markets for corporate debt, equity, and exotic derivatives therein the same cannot be said for what is, in fact, a much larger asset category: owner-occupied housing”.
While wandering along the beach on a break one day in 2001 I asked myself why people couldn't hedge the biggest financial risk they faced (aside from a loss of labour income) – that is, the risk of a decline in the value of their largest asset holding, which was typically housing.
Having worked over 2000 and 2001 with Goldman Sachs and studied economics and finance at university, I was familiar with the functions of financial markets. But actively traded financial contracts tied to the $3 trillion housing asset class were not available. So I asked myself, Why not simply create futures (or derivatives) tied to a house price index to enable people to cost-effectively hedge the risk of house price rises or falls?
As I started looking into this, I discovered that the principal problem was with the prevailing house price proxies. They were far too infrequently reported, and far too inaccurate, to hope to convince investors to commit billions of dollars to exchange contracts valued, or “marked-to-market”, against them. The project would thus be put on hold until I helped found Rismark, with funding from Macquarie Bank.
A number of years later the RBA and Treasury would independently arrive at the same conclusion, but from the vantage of policymakers wanting superior information on housing risks (recall that Australia had experienced a stunning house price boom in the early 2000s that exercised the minds of regulators).
By combining a team of world-class PhDs with hundreds of millions of dollars of valuable housing data, RP Data and Rismark were able to ultimately solve the analytical problem. Using regression-based “hedonic” methods that carefully control for each property’s unique attributes – such as its location and land size, and its number of bedrooms, bathrooms, car spaces, and so on – we’ve been able to radically enhance the quality of estimates of monthly changes in capital values and rents.
It’s also well documented in the media that we’ve been actively working with regulators and exchanges to develop liquid financial markets based on our patented index technology. Due to various embargoes that will be shortly relaxed, I cannot say much more on this front other than to recommend you keep an eye out for the launch of several “global firsts” in the housing analytics space.
This brings me to GMO’s founder Jeremy Grantham, who has argued that Australia suffers from the mother of all housing bubbles. When he first aired these remarks in 2010, we at Rismark challenged him to put his money where his mouth was. Specifically, we offered to work with Grantham to help him to “short” – or bet against a fall in the value of – one of our national indices over the ensuing three-year period.
In order to do so, we would have to find a counterparty to take the other side of this transaction: i.e., some individual or institution that wanted to effectively go “long”, or lock in the future returns associated with our index.
One blogger recently claimed, incorrectly, that we intended to take the other side ourselves. Our original article demonstrates that this was not, in fact, the case:
“To be clear, Rismark would need to work proactively with Mr Grantham to construct this transaction. We believe we have counterparties that would likely be prepared to contract with him. But it may take several months to facilitate (and cannot be guaranteed). “Before we can proceed, we require a firm, contractually binding commitment from Mr Grantham that should we be able to facilitate this transaction, he will indeed act on the advice that he’s offered to the rest of the world by committing a tiny fraction – less than 1% – of his capital to his predictions.”
How would Grantham have fared had he backed his own rhetoric? The indices that RP Data and Rismark produce for trading purposes are “total return” benchmarks, much like the ASX All Ordinaries Accumulation index, which tracks changes in capital values and dividends.
Since the end of October 2010, when we first outlined this idea, RP Data-Rismark’s capital city accumulation index has risen by about 0.2%.
So using this benchmark, which is the most likely index that a counterparty would wish to trade against (given they’d be expecting the capital gains and rental income realized from Aussie housing), Grantham would be down around $200,000. Call it evens.
If, on the other hand, he wanted to use the RP Data-Rismark index that follows changes in capital values, Grantham would be up about 5% assuming we could have found a counterparty willing to ignore incomes (or rents).
Of course, the proposed transaction was over a three-year horizon, so we are only 40% of the way through it. And given that a national house price index has annual volatility of 5% to 6%, we are still within the realms of what one might expect to see. Much like those analysts who predicted six RBA rate cuts to a 3.5% cash rate by June this year, it would be highly imprudent to bank profits that have yet to be crystallised.
It is certainly true that we devised this bet at a deliberately attractive juncture for the bearish Grantham. It followed the RBA slamming the housing market with a surprise double interest rate hike in November 2010, which we forecast could put downward pressure on house prices over 2011. And that is indeed what transpired with the help of some additional RBA jaw-boning.
The good news for Grantham is that this opportunity still exists. So while he did not have the courage of his convictions when we first proposed it in late 2010, he can still put the trade on today.
Following media coverage of our idea, Grantham did personally contact my brother-in-law about it, and GMO officials requested a meeting in Sydney. Independently, I also received some email enquiries from GMO’s head office in Boston. Curiously, when I actually met with GMO’s executives face-to-face they made it clear they did not personally subscribe to Grantham’s relatively extreme positions.
Nevertheless, in the event that Grantham still believes shorting Aussie housing is one of the best investments of all time, we would love to hear from him…
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
 
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