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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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So you've done it, you have reached that point in your life where you can afford a multimillion-dollar home. Well, why not, what's to stop you? You are successful and worked hard to build your business and your fortune. You are a supreme winner in your own area of business, and good for you. Success is sweet and greatly admired by all.
So you find your perfect home. It just came on the market at a price you can afford. Let's say the agent's name is Bill and you have already heard of him around the traps. He has a reputation for achieving astronomic sales prices for his clients, and his reward is a well-earned and generous commission from the vendor. After all, his job is to get the highest possible price for his client.
But what about you, the buyer? Who represents you in this deal? OK, you've got the wife, the mother-in-law and numerous friendly advisors who know exactly what you should do.
To quote John McGrath of McGrath Real Estate, “While a vendor has their selling agent to negotiate for them, buyers are on their own unless they have a buyers’ agent to act on their behalf.”
And here comes the inevitable. The selling agent (who acts exclusively for the vendor) will do his or her best to outwit you every step of the way. That is his job, and they are usually very good at doing it. If you had spent 20 years doing the same thing six days of the week I’m sure you would be, too.
But you can even up the odds: engage a buyers’ agent (or buyers’ advocate) and use their experience, market knowledge and negotiating skills to give you the winning edge.
Depending on the deal he or she can to save you money on your purchase, and give you “peace of mind” about your new home.
The most frequent question asked about engaging a buyers’ agent is, “Will they save me money?”, and the answer nine times out of 10 is yes. These guys are professionals, and their income and reputation depends on successful transactions.
There are cases where the saving on the price of home purchases has largely been negated by the cost of the agent’s fee (although in investment property purchases the fee is tax deductible in New South Wales).
On the other hand there have been several deals done over the last couple of years in the upper end of the market in Sydney where the saving was well over $1 million.
All buyers’ agents charge a fee for their services; they can’t do it for nothing. There was a recent story in the international press about a buyers’ agent in Spain who acted on a “no foal, no fee” basis. The agent soon went out of business.
Buyers’ agents cannot guarantee success, but they will do their utmost to save you money and ensure that the final purchase price was the very best possible.
Tim Mansfield is founder and principal of Sydney-based buyers' agency <a target="_blank" href="https://www.primepropertybuyer.com/">Prime Property Buyer</a>.
 
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tmansfield-Rk8rBecHRA

Million-dollar savings

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A combination of too many projects and historically low demand could result in oversupply of new apartments in inner-city Brisbane suburbs like Fortitude Valley and Bowen Hills, valuation firm LandMark White has warned. 
The warning comes as the latest figures from the Real Estate Institute of Queensland for the December 2011 show that rental vacancies in inner Brisbane increased from 1.4% in the September 2011 quarter to 1.9% in the December 2011 quarter, while the overall city vacancy rate remained unchanged at 2.3%.
LandMark White anticipates that low level migration into Queensland will continue to undermine the market. 
“This will see the inner-Brisbane apartment market continue to battle through one of the toughest phases in the property cycle in the last decade,” the firm says. 
As a consequence, it says “developers will need to ensure their ability to target niche markets through well-designed, appropriately priced product and high-quality amenity in an attempt to avoid oversupply or project deferral”. 
There was a 30% increase in sales of inner-Brisbane city units off the plan in the traditionally active September quarter, with 312 transactions taking place compared with 240 in the previous quarter. However, this figure was down 27% compared with the September 2010 quarter. 
“Incentives and rebates are also prevalent in this market as developers struggle to achieve sales,” says LandMark White. 
On the positive side, the RBA is tipped to further cut rates early in 2012, which should improve affordability and raise investment yields. 
“Rentals in the inner-Brisbane apartment market have experienced strong growth over the year to September 2011, with a 6.8% increase in the median weekly rent to $470. Coupled with historically very low vacancy rates should see the inner-Brisbane residential market become more attractive to the investor market,” the report says. 
And while the report notes there have been some encouraging signs for the inner-city residential market, particularly after the last interest rate drop, it says the market needs confidence and that may be dependent upon the outcome in Europe. 
“The first three months of 2012 may set the tone for the remainder of 2012.” 
LandMark White has calculated that there are around 12,100 apartments currently in the development pipeline and around 100 projects in total. 
Of these projects, nearly half (47%) have received development approval and nearly a third (33%) are under construction. 
Nearly two-thirds of the projects under construction are located in the expanding inner-northern Brisbane market, which includes the suburbs of Fortitude Valley and Bowen Hills.
<img src="/images/stories/landmarkwhite.gif">
 Source: LandmarkWhite
Some of the highest profile developments are in these two suburbs, including <a href="https://www.propertyobserver.com.au/developments/alex-perry-development-and-others-all-the-fashion-in-fortitude-valley/2011091551568" target="_blank">Alex Perry’s designer apartment building on Ann Street</a> (131 apartments) being developed by the Chrome Property Group  and <a href="https://www.propertyobserver.com.au/developments/fortitude-valley-s-brooklyn-development-offers-a-taste-of-the-big-apple/2011100551797" target="_blank">Metro Property Development’s 14-storey Brooklyn complex on Brookes Street</a> (191 apartments) a joint project with Indian-based Pearls Australiasia. 
One of the biggest urban regeneration projects is Lend Lease’s redevelopment of the RNA showgrounds into a predominantly residential mixed-use community. The project will be completed during 13 stages and is expected to accommodate a resident population of 10,000 people and a workforce of 8,000 people.
Upon completion, it will have 2,500 apartments, a hotel, convention centre and other commercial and retail facilities including restaurants and fresh food market. Stage 1, known as “The Green”, has already commenced earthworks and will comprise 340 one- and two-bedroom apartments priced from mid $300,000.
Photo courtesy of <a href="https://www.flickr.com/" target="_blank">Flickr</a>.
 
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Inner-Brisbane apartment market risks oversupply: Report

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Let's be honest; the outlook for 2012 is probably best described as “turbulent”. Some of the more influential voices in the community (Michael Yardney, Catherine Cashmore, for example) are touting 2013 as the more positive year for investment property.
With 2012 being an arguably tough year ahead, young investors feel the stress of this as much as, or even more than, experienced investors. This is because even at the best of times, new investors face the challenge of discerning mass volumes of data, stats, opinions, and trends, so in more ambiguous times, navigating the brevity of data becomes an even greater challenge. More and more conflicting opinions and even hard data (numbers, statistics, and trends) become harder to understand.
From here, new investors begin to question not only the data, but their own skills in interpreting it. They begins to lose trust in themselves and ask questions like, “What am I getting myself into?” and “Am I just throwing money blindly at something and hoping it works?”. You're not alone in doing this; I too go through these doubts from time to time, all based on the conflicting information I uncover.
One of the best ways to combat a case of analysis paralysis is to invest in your own property sleuth skills. Become like a detective; don't be afraid to follow a hot lead based on instinct, and remember to use all of your instincts and logic to lead to you the answers you seek. This means using logic such as questioning current data/numbers and comparing it to historical data, listening to the opinions of experts and agents, and comparing these with market sentiments observed on trusted media sources such as Property Observer and community blogs. As for instinct – go with your gut feeling. Sometimes a great deal that just doesn't feel right, probably isn't right for you. This does not mean it isn't a great deal – it just isn't the deal that's the right solution for your brief.
It's like anything in life: you need to use logic and instinct to achieve the best results. For example, lately I've been trying to improve travel time on my 15-kilometre journey to work each day, so I can map out a new route that gets me there faster. So the logic-based influences that I deduced were things like; Google Maps (for the shortest distance map), personal experience of the busiest stretches of the journey and the number of traffic lights I encounter on such a journey. Then there are the instinct-influenced factors, such as knowing the likely effect that bad weather has on traffic congestion, plus the day of the week it is (Fridays for example have a different flow to say Tuesdays).
Absolutely do your due diligence on any property decision you set out with,yes, but remember to use both logic and instinct when arriving at decisions, and you'll be making the best and most informed decisions you can. So trust your sleuth skills, listen to others, but invest first and foremost in yourself first, and in property second.
Cameron McEvoy is a property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" target="_blank">Property Spectator.</a>
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cmcevoy-Go82SmsJA9

Trust your property-buying instincts

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At the moment it is very hard to work out what the Sydney property market is doing. Certainly none of the experts seem to have a handle on it.
February is always a time when we exercise more caution than usual, particularly with our investor clients. Normally at this time of the year we have a combination of a stock shortage and fresh buyer activity from rested property hunters and new entrants. It takes a while for the market to take up the slack caused by the downtime over the Christmas period, so we usually see heightened competition, increased auction clearance rates and a spike in prices. And this situation can last until the end of March. In boom years it continues unabated until spring. In 2007 I remember the market ran full steam ahead right up to Christmas.
So far this year has been no exception on two counts. There is a stock shortage, and there also appear to be plenty of buyers out there.
But we are now more than halfway through February and last weekend the auction clearance rate was still only 52%, which is a similar level to where it was at the end of 2011. Some properties are languishing (more so in the higher price bracket) while others are selling way above expectations (a number of 2 bedroom cottages in Marrickville spring to mind).
The open houses over the past few weekends have also been a mixed bag. At some properties we have had to queue up before taking a peek inside, while at others we had the house and the agent to ourselves. And there hasn’t been a clear pattern as to why this is so. It is not as simple as saying that anything over $1.5 million struggles while everything under $1 million flies out the door. We have seen properties well under $1 million without any interested buyers.
Feedback we are getting from selling agents is that both buyers and vendors have been sitting on their hands while they wait for another interest rate drop. Now that the banks have taken matters into their own hands and instigated their own rate rises, we hear that a lot of potential vendors have decided to delay listing their properties for sale. Conversely, a lot of buyers seem to have decided they are sick of waiting for lower rates and will take the plunge regardless.
So if these indications turn into a trend we will start to see a rise in both clearance rates and sale prices.
The upshot? Well, we will still exercise caution. That is certainly not to say we won’t be buying anything, however. Because we know the market so well and understand prices, we can assess value and strike accordingly. We also know when to leave something alone because it is selling at a premium that may not be sustainable come April.
And for owner-occupiers who have just found their dream property it may well turn out that it is worth paying a premium and it’s just bad luck that their perfect new home came on the market now instead of a more advantageous time. Just remember to decide on your maximum limit before you begin bidding or negotiating so that the emotion doesn’t take over.
Veronica Morgan is principal of <a href="https://www.gooddeeds.com.au/Default.htm" target="_blank">Good Deeds Property Buyers </a>in Sydney.
 
 
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vmorgan-HbQU5VgC4p

Sydney market could be turning around

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I am always amazed when Australians talk about their assets: they’ll tell you about their houses, their businesses or their boats.
It surprises me because in my opinion, your greatest asset is the ability to generate revenue.
I was reminded of this a few days ago when I was told of the plumber who had a stroke, leaving his wife with no form of income to cover the mortgage and other bills. When she called on her husband’s accountant to sort out the business, she got a surprise: he had income protection insurance.
Not every wife who calls her husband’s accountant gets a response like that.
Our economy has shifted to high rates of self-employment in the past 30 years, with professionals and tradies selling their services on a contracted basis. Although you see this most prominently on construction sites and mines, the legal, accounting, management and engineering professions have all moved towards contracting during my time in the work force.
This shift has been good for the economy and good for the contractors (in most cases), but I’ve noticed a glaring lack of sickness and injury safety nets in the contracting fields. The unions, over the decades, built a solid system of sick leave and workers’ compensation to protect the families of a worker who got sick.
But most contractors do not fall under the award system, and they also do not have the most basic of protection coverage: income protection.
Income protection insurance pays a percentage of a sick worker’s income during a period of inability to work due to injury or illness. The insured usually agrees to a waiting period, for instance you may have to be off work for two weeks before you are considered incapacitated.
It’s an invaluable expense for self-employed people because it goes some of the way to securing that crucial asset – income – while you’re lying on your back recovering.
The last research I saw on this subject was from AXA. It found that among self-employed males, only 23% of income was covered, and among female contractors, only 14% of income was protected.
At the same time, 89% of Australians have comprehensive car insurance.
If you’re a self-employed person in a household where your income is the main or the sole source of revenue, you should consider what happens to the bills and the mortgage and the vehicle costs if you have to spend a few months off work.
I’m not talking about a workplace accident, because when you operate through a company structure you need workers’ comp coverage, and most mining and construction companies won’t allow a contractor on the property without first showing his or her workers’ comp slip.
I’m talking about the scrapes and misfortunes that people go through away from the workplace: the broken leg at netball, the tummy bug in Bali, the stroke, the bout of pneumonia, the stomach ulcer, the hernia operation, the chemotherapy, etc. In short, the medical dramas that seem to happen to someone else until they happen to us.
The protracted global financial crisis has made us focus on our finances, and consequently Australians are pulling out of consumer debt and not taking mortgages in anywhere near the volumes they did pre-GFC.
This behaviour is essentially a de-risking of households – a choice to not hold debt lest something happen that reduces the capacity to pay it back.
There’s another way of looking at the same concern: insure your income.
For those who haven’t done it, I suggest you talk to either a financial adviser or to an insurance broker. Life insurance is not enough – it’s a welcome safety net to the people you leave behind when you die, and you should definitely have it if you are the main breadwinner and you have a mortgage.
But what if you can’t work for two months? You’re still alive, but that’s long enough to put the house at risk, to miss car payments, to max out credit cards and to put undue financial stress on your family.
Many self-employed people belong to a professional or trade organisation that offers income protection insurance, but they can’t make you take it.
I urge those who have not covered their income to at least talk to a broker and discuss why it is that you’d insure your car but not your main source of financial security.
Income is your greatest asset – it’s worth protecting.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
This article first appeared in News Ltd. newspapers
 
 
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Insure your greatest asset – your income: Mark Bouris

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The Reserve Bank is likely to hold off on cutting the cash rate until the second quarter of 2012, according to HSBC chief economist Paul Bloxham, who believes global weaknesses will dictate the RBA’s next move. 
“While we have long thought the Australian economy is in pretty good shape, we have been less comfortable about the global outlook. 
“And despite better global data recently, particularly in the US, and the recent rally in markets, we still remain somewhat sceptical. We still think global weakness and the flow on to the local economy will probably see the RBA cut a bit further. 
“However, a March cut now seems unlikely. We expect one more 25 basis points cut in the second quarter,” Bloxham says in his latest RBA Observer update. 
Bloxham points out that interest rate market pricing has shifted aggressively in the past three weeks – from pricing 75 basis points in cuts over the next year to pricing 45 basis points in cuts. 
Although he says “nothing should be ruled out” in the current uncertain environment, the “economy is still in pretty good shape, the mining boom is continuing and the RBA’s cuts last year are providing some support”.
On the other hand Bloxham expects a clutch of factors – higher mortgage rates, a very strong Australian dollar as well as an “further upward drift in unemployment” and “benign inflation” to motivate one more rate cut.
Bloxham’s comments come as RBA governor Glenn Stevens delivered his opening statement to House of Representatives Standing Committee today where, according to CommSec economist Savanth Sebastian, he made it clear that the “higher cost of wholesale funding and resulting out of cycle rate hikes by the domestic banks was anticipated by the Reserve Bank and was a key reason why interest rates were not cut in February”.
In his address Stevens said: “We repeatedly made clear that the shifting relationship between the cash rate and other [lending] rates in the economy is a factor the Board takes into consideration in setting the cash rate”.
“That will remain the case. Recent developments do not materially affect the capacity of monetary policy to achieve its goals.”
According to Sebastian, Stevens has “delivered the clearest message yet that the Central Bank has a strong degree of confidence in the outlook for the domestic economy”.
“The tone and comments from the testimony is consistent with CommSec’s view that the cash rate will remain on hold until at least the May meeting.”
 
 
 
  
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No rate cut in March, but one more likely by June: HSBC’s Paul Bloxham

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The top end of the housing market in the major metropolitan regions will continue to struggle in 2012, according to Aussie Home Loans founder John Symond, who is seeing signs of life at the more affordable end of town.
“We have seen the property market show some signs of life in recent times because first time buyers and property investors seem to be out there in the price range of $600,000 and $650, 000,” he says in a video on Aussie's YouTube channel.
“So I think the lower price range in the metro cities is going to be active as the months go by; but certainly the higher priced properties are still going to struggle in finding buyers.”
And following on from him re-appearing as the face of Aussie advertising and once again urging borrowers to consider alternatives to the major banks, Symond urged borrowers to see beyond the current marketing spin of NAB.
Symond dismissed NAB’s pledge to offer the standard variable rate of all the major banks throughout 2012 as ‘more clever marketing then substance”.
“When you look at the lowest standard variable and the highest standard variable [of the major banks], you’re only talking a couple of basis points,” he says.
 
 
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Metro housing market sweet spot under $650,000: John Symond

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The record-setting $5.71 million Surry Hills, Sydney warehouse sale by businessman Neville Miles and his artist wife Beryl topped the prices in the year's first bumper weekend of capital city auctions.
It's McGrath selling agents Ben Collier and Andrew Hackett had been seeking $5 million plus for the Bennett Place warehouse, which dates back to the 1870s.
It's been extensively renovated by Hare + Klein since the 247-square-metre holding that spans three levels last sold at $3.1 million in early 2009.
Vendors and agents were hoping auctions got a wiggle on the weekend.
Volumes were up, and Melbourne's success rate, which has been a bit wobbly so far in February was 62% on initial results, and 63% after Sunday's results, bettering the 57% in the prior weekend.
"In light of the increased number of auctions this result provides an indication that demand is gradually improving this year," REIV chief Enzo Raimondo says.
Despite a negative forecast from the SMH property editor, Sydney also secured a slight improvement too with its 56% success rate - on initial returns - bettering the 54% of the previous weekend, according to Australian Property Monitors.
Both capital city results could come down slightly once the final results come in, but the industry will be happy that the weekend with the first big boost in auction numbers also brought sufficient buying demand that was steady or better than in the previous three weeks.
SQM managing director and industry commentator Louis Christopher today urged higher same-day reporting rates to ensure buyers and sellers get a better indication of market direction.
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John Edwards' Residex indicated its 90% collection of all auction sales across NSW for the week ending February 25 showed a 52% clearance rate for the Sydney metro (51% in the week prior) and 40% in NSW regions (34% in the week prior).
The McGrath agency secured a 56% success rate from its 125 NSW Saturday auction listings. 
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Hocking Stuart's Anna Perry noted the Armadale office's four out of four sale in the 38 degree Melbourne heat.
Buxton auctioneer Matthew Young secured five sales from his five Melbourne auctions, although the Foam Street, Elwood listing was sold for $1,341,000 shortly after being passed in at $1,325,000.
The Real Estate Institute of Victoria was expecting around 880 auctions. The highest number of auctions will be held in Prahran (17), Richmond (15) and South Yarra (15).
With a full month’s auction volumes now known, Robert Larocca at the REIV says it is now apparent that the overall number of February listings is about 17% below the average between 2007 and 2011.
This year there will be about 1,900 auctions in February, compared with the five-year average of 2,285.
Melbourne buyers' agent Mal James noted for the second week in a row there was "some spark in the market". But noting eight of the top 10 reported auctions over $2.5 million were passed in, James suggests "we are not saying there is any fire, just isolated sparks".
Australian Property Monitors had 494 auctions on its scheduled Sydney list. It’s 21% down on the same time last year according, to Clinton McNabb, the APM research analyst.
The highest number of auctions in Sydney were held in Strathfield (12), Mosman (10), Kensington (nine) and Randwick (nine).
Simon Pryce, who works for The Wiggles as Ringo the Ringmaster, has sold his Coogee Art Deco apartment before this weekend’s scheduled auction. It was listed through McGrath agent Kel Gray, and Pryce was aiming for more than $625,000 for the apartment, which last traded for $470,000 in 2002. It’s understood to have sold at about $650,000.
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jchancellor-FAypfDUnLy

Auction success rate gets a bounce in first big weekend test

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Diversified property group FKP has reported a 41% drop in sales revenue in its residential development business for the six months to December 2011, with land sales down 20% and apartment sales down 88% compared with the previous corresponding period.
Underlying profit in its residential development division fell 28% to $10.7 million.
FKP’s residential development division includes a number of high-profile projects, notably the Luxe apartment project in Woolloomooloo overlooking the Domain parklands and the residential communities of Saltwater Coast at Point Cook on the outskirts of Melbourne, Rochedale Estates in Brisbane and Peregian Springs on the Sunshine Coast.
The Luxe development, now under construction, is 62% sold with 29 out of the 77 apartment available for sale. One-bedroom apartments in the project are being sold off the plan for $648,000, two-bedroom units for $940,000 and three-bedroom units selling for about $1.3 million. The development launched late last year.
In October the first limited-edition apartment featuring 270 degree views of St Mary’s cathedral, the Sydney CBD skyline and Domain parkland was sold to a local buyer for $3 million having been marketed by Whiterock Capital Partners. 
The developer says results at Saltwater Coast had been impacted by softer market conditions and inclement weather with the lead time between enquiry and settlement increasing over the period.
“In a weak Victorian residential market, sales at Saltwater Coast in Melbourne have slowed from the exceptional levels that were achieved in 2010-11,” says FKP.
There are 1,500 lots remaining for sale at Saltwater, with FKP targeting annual lot sales of between 250 and 300 over the next five years.
“In Queensland, delays in achieving required council approvals directly impacted the number of settlements at The Rochedale Estates,” says FKP.
“However, these approvals have now been attained and increased settlements are expected in the second half of the year.
FKP says sales volumes at Peregian Springs have held up “in a difficult Sunshine Coast market”.
FKP has 4,850 lots across its portfolio currently for sale with an estimated value of  $1.7 billion.
The group plans to build 1,800 apartments over the next six years.
It reported a $43.1 million underlying profit after tax for the half-year, down 21% on the previous period because of a slowdown in residential sales coupled with longer lead times between deposit and settlement of sales for units in the retirement portfolio.
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Luxe in the ’Loo selling well for FKP,  but Victoria and Queensland drag the chain

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The trend towards slimmer and shorter building blocks has prompted the Metricon home building company to unveil 19 new home designs.
They are mostly suited to smaller frontage and depth land sizes, reflecting developer trends towards smaller, narrower blocks.
New <a target="_blank" href="https://www.propertyobserver.com.au/land/melbourne-median-new-lot-size-falls-below-400-square-metres-oliver-hume/2012022053455">Melbourne median residential lots sizes have fallen fell below 400 square metres</a> for the first time.
“It’s very important that current trends in land sizes don’t impact on our ability to deliver spacious, light-filled homes that offer the flexibility modern families need to really love where they live,” Metricon’s head of design Adrian Popple says.
It’s one of the largest releases ever made by Metricon, Australia’s leading home builder. The designs have been added to their Allegra, Freedom and Designer range of homes.
The new releases in the Allegra range, 12 in total, include the <a target="_blank" href="https://www.metricon.com.au/melbourne/homes/alpha">Alpha, a compact entry-level home maximising available space,</a> available from just 16 squares (149 square metres), yet with three-bedroom living.
Metricon marketing general manager Yvonne Abood described the <a target="_blank" href="https://www.metricon.com.au/melbourne/homes/breeze">Breeze home within its Freedom range</a> as “an especially remarkable achievement by our designers, as no comfort is sacrificed to create luxury two-storey living on the narrowest of home sites”.
She expects the Breeze design to be very helpful for the smallest blocks made available in large developments, but also for knockdown rebuild sites.
The Breeze, with a side portico entry, comes with three bedrooms, with the ability to fit on a narrow 8.5-metre wide block.
The company dates back to 1976.
 
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