Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

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The North Epping home where five members of the Lin family were murdered has been listed for March 22 auction.
North Nor'West Property, the estate agency that sold the property to the Lin family in October 2001 for $575,000, has been appointed as the listing agents by the New South Wales Trustee and Guardian, which manages the estate.
Mark Ward, <a target="_blank" href="https://www.northnorwest.com.au/index.cfm?pagecall=property&amp;propertyID=1968226">the agent handling the Boundary Road sale</a>, says prices for comparable properties are in the $900,000 to $950,000 range.
But there is expected to be a discount secured by its buyer.
The property falls well into the requirement of NSW law requiring disclosure of "some material facts" about properties that would not be obvious to potential buyers.
It covers "potential psychological stigma attached to a property, which is likely to be shared by a significant proportion of the population".
Buyers’ agent Tim Mansfield says selling agents <a href="https://www.propertyobserver.com.au/residential/murder-and-mayhem-what-an-agent-should-disclose-if-a-property-has-an-unsavoury-past/2012021953438" target="_blank">have a duty to tell buyers if a property has an unsavoury past</a>.
 
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North Epping home where Lin family was murdered listed for March auction

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Why should you invest interstate?
I often get asked this question, and it’s a great question. Some people say that you should only buy within the area you live in because you are familiar with the prices and you can drive past to inspect the property and if required you are handy to make your own repairs.
While all those reasons have merit the answer goes far beyond this.
There are several really important reasons why you should invest in properties interstate, and it’s more about good investment principles than about convenience. Here are a few:
1.            Ride the property wave. The property cycle moves differently in different states. When one state is at the top of the property cycle other states could be at the bottom.
2.            Property clock: The property market moves through a cycle and when things are booming in Victoria they may not be booming in NSW. When they are slow in Perth they might be booming in South Australia. Currently Melbourne is oversupplied, Sydney is “steady as she goes”, Queensland is at the bottom of the cycle but the Gold Coast is anticipated to stay at the bottom for many years to come, while Brisbane is showing signs of life. Perth is steady as she goes, and so on. As you can see, each state is at a different part of the cycle, so it’s important you time the purchase at the bottom of the cycle.
Buying in your own suburb or state might not be the proper thing to do if you are at the top of the cycle. 
3.            Land tax: Each state has different land tax rules. Each state allows a certain land tax threshold before land tax is payable. Once you have “used up” your land tax threshold in the one state by having several properties held in that state, further properties in that state will attract higher rates of land tax. If you than buy in another state than the land tax threshold starts again. Hence another reason to buy in other states is because of the land tax you are prepared to pay.
If you carefully manage the timing of your new purchases you could buy both at the bottom of the cycle and minimise your land tax by buying in the right state at the right time.
For example, while the property cycle suggests Brisbane is at the bottom of the cycle and may be the best place to buy your next investment property, if you already have several properties in the state of Queensland and have breached the land tax threshold in Queensland. Further properties bought in Queensland (irrespective whether they are in Brisbane of Townsville or Gold Coast) would mean you would be paying excessive land tax. In this instance you should consider investing in another state that is at or close to the bottom of the cycle and one where you have not used up the land tax threshold as yet.
In the above example you may consider buying in Darwin if you have no properties there as you have the full Northern Territory land tax threshold to take advantage of.
Hence careful management of your property investment strategy could mean you pay no land tax at all even while holding over a dozen or so properties. Wouldn’t that be good? 
4.            Diversification: Just as it’s important to diversify your share portfolio it’s also important to diversify your property portfolio. Diversification means that when some properties are slowing down in some states you should have properties in other states that are growing.
This will also help manage your bankers stress levels because while some properties they hold as security are going down in value the other ones they are holding may have gone up. Risk management is about ensuring your bankers do not force you to refinance when the market values are down or you are forced to sell the properties when the market is down.
While there are emotional reasons for investing in the state or suburb you feel most comfortable in, investing is much more scientific than using one’s “feelings”. It’s always best to use professionals to assist in property selection because they have the research material to determine where you should be investing. Timing is so important because the market could change within months. Get a property accountant to assist you with buying it in the right structure to minimise tax and give you the flexibility should your circumstances change in the future.
Ed Chan is a founding partner of <a href="https://www.chan-naylor.com.au/" target="_blank">Chan and Naylor</a> accountants and a leading property tax specialist. He has co-authored three best-selling books as a seasoned property investor who understands the relationship between property investment and tax.
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echan-hSGJw4wwC5

Why you should invest interstate

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Many specific terms are used when analysing and commenting on the property market. 
Having an understanding of these terms is important for anyone who is looking to enter the property market as a tenant, owner–occupier or investor. 
One frequently used term is "median". 
The median value is the middle price in a series of sales, where half of the sales are of lower value and half are of higher value. For example, if 15 sales are recorded in a suburb and arranged in order from lowest to highest value, the eighth sale price is the median price. 
Median prices are used rather than average prices because median prices are unaffected by a few unusually high or low prices, making them a more accurate indicator of true market activity. 
Along with the Victorian government, the REIV uses medians when discussing and reporting property prices. 
Of course, medians do not describe the value of every home in a suburb; rather, they serve to show how prices may have generally changed. In that way, they are a guide only. The sale price for each home will still depend on the home, the vendor’s preferred price and the level of competition between buyers.
When looking at a median price, be aware of the number of sales on which it is based. The lower the number of sales the more variable the figure will be. This is why the REIV notes with an asterix those suburbs where the median is based on fewer than 30 sales. This provides the public with an additional tool with which to understand the data.
Enzo Raimondo is CEO of the <a target="_blank" href="https://www.reiv.com.au/">Real Estate Institute of Victoria</a>.
 
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How to determine the median house price

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Buying your first home is a huge  leap.  And it’s one made more difficult by the fact that property prices are high, no matter where you look. Most first-home buyers always have a tough time, though. They usually have to look in areas outside their preferred location or buy a property that’s smaller or more rundown than they prefer. The important thing is to get your foot on the first rung of the property ladder — even if you have to lower your expectations a bit. But don’t buy before you’re ready — financially and psychologically. Here are some tips to help you take heart.
1. Buy when you’re ready to buy
When you’re looking for a property, everyone you know is an expert about when is the best time to buy.  They  tell you the market is going up fast,  so you need to buy  now, not  in six months’ time;  or that the  market’s going to crash, so you ought to wait another year  to catch the  bargains when  interest rates go up.
Ignore them!  Yes, all of them. The right time to buy a property is when you’re ready to buy.
You know you’re ready to buy when:
<ul>
<li>You find yourself dreaming about renovating your own home.</li>
<li>You find yourself incessantly looking at the property section of the local newspaper or browsing the real estate listings on the internet.</li>
<li>You start putting every last penny into the bank, rather than spending it on new clothes, going out or other treats.</li>
</ul>
Given the huge financial commitment involved in buying a property, you need to be psychologically ready for that step. Assuming you’re  going to hang  on to the  property for a while and you find a property that suits at a price you can  afford,  who cares what  the  wider  market is doing?
2. Think outside the square
If you can’t  find anything you can afford  in the  suburb or area of your  choice, you may need to think  laterally or scale down your  expectations just  to get your  foot on the  first  rung of the  property ladder. Traditionally, first-home buyers tend to look beyond their first choice to find a home they can afford.
To find somewhere more affordable, investigate suburbs just beyond those of your first preference. These nearby suburbs may have similar qualities to those you have your heart set on — they’re just a bit further out than you may like. They can also offer other unexpected benefits, such as bigger properties and bigger yards and a neighbourhood more conducive to raising a family in the longer run.
Don’t forget, you’re not alone. The  middle suburbs and  many country towns are  filling up with  people just  like you who  are priced out  of suburbs closer to the  city and  who  eventually put their own stamp on the “new” area.
Another alternative to your  first  choice is to buy  a property still within  your  chosen area but  that needs a lot of work  — or one  that originally may not  have  been a residence at all. First-home buyers are a creative-thinking lot and are able to convert old warehouses, factories or shops into interesting new homes.
3. Look at your first purchase as a springboard
As property owners, Australians tend not to buy just the one property and stay in it for the rest of their lives.  If the first property you buy isn’t the property you can imagine living in forever, think of it as just your first step onto the property ladder. In four or five years, you can sell it on to someone who is in the same position you’re in today. Between when  you buy and  that time,  your  equity in the  property builds up — from the repayments you make  on the  loan  and  hopefully from  the increase in the  value  of the  property itself  — and  you can  use that financial gain to buy  a property that better suits your  needs.
4. Borrow no more than you afford
Temptation can come knocking, especially in a hot market when prices are rising quickly. Before you know it, you want to go beyond your budget to buy the home of your dreams. And lenders are  only too  happy to lend  you as much as they  think your  income can  bear, even  if you don’t  have  enough money, after  making  the  required mortgage repayments each month, to step outside your  new front  door for the  next  few years.
You need to cover more than the cost of the actual property. You have to foot the bill for a number of transaction costs and costs associated with getting a loan and getting legal advice. These costs can really send you over the financial edge if you don’t budget for them.
Owning a home also involves expenses you may not have had to carry while you were renting. You’re now the  one  who  has  to pay  the  council and  water rates, for that new hot  water system and  to keep  the  house looking  good  over  the  years. Stretch the repayments too far over the limit, and owning a new home isn’t going to be much fun at all.
5. Another property is always around the corner
When you miss out on a property that tugs at your heart, you may feel like you’re never going to find a property you can both love and afford.  Keep going.  Fortunately, new properties keep coming on to the  market each week,  and  eventually you’re  going to find the  one  that fits your  criteria and  your  budget.
You may need to make a compromise on your criteria here or there, but don’t settle for something you’re not going to be happy living in for at least a couple of years. Chopping and changing properties more often than that is too expensive to contemplate.
Have faith  that with  consistent searching and  effort the  right property eventually comes along  and  is available at a price that you’re  able  and  willing to pay.
6. Don’t pay too much for a property
Each property has a fair value.  Don’t be too desperate to find a home. You don’t want to pay more for a property than it is really worth — in terms of its location and in terms of the property itself.  First, paying too much can mean you have less to spend on improving your property. Second, you’re  going to have  less equity in the  property, and  your  loan-to-value ratio may go over  the  80%  level — meaning you have  to pay  mortgage insurance, which  adds several thousand to your  purchase price.
Do your research on how much properties in a particular area are worth, and make sure you get a building inspection report so you’re aware of any problems with a property and how much it costs to repair them.
 7. Keep your emotions in check when looking at a home
Deciding you want to buy a home can be a bit like falling in love — sometimes your emotions can overwhelm your reason. You can fall for a property that looks gorgeous on the outside but may not be suitable to your needs. That cute white picket fence and those gorgeously painted ceiling  roses may conceal a host of structural problems that could cost a fortune to fix up.
Retaining a business-like reserve when  you’re  looking  at one  of the  biggest purchases you’re  ever  going to make  pays  you back handsomely. Take along  a hard-headed friend you can  trust
to point out  negatives when  you look at properties. And if you really fall in love, get a thorough building inspection done before you make  any serious offers.  You should at least know about a property’s faults  before you commit to it.
8. Be sceptical of selling agents
With rare exceptions, remember that the  real estate agent isn’t your  friend — even  if the  agent pretends to be. It’s not  that agents are  against you; the  agent’s just  working  for the  sellers of the  homes the  agency represents. The  agent’s primary interest — and,  in fact,  a legal obligation exists — is to sell those properties for the  highest prices possible. So when  agents take you aside to tell you about the  special prices they  can  get for you, be aware that they  probably say that to everyone.
That’s  not  to say that an agent can’t  help  you find the  home you’re  looking  for. When  you get to know the  agents in the  area, they’re more than happy to inform  you about properties that fit your  bill. Agents  can  help  you to forge  a win-win situation that helps both their clients and  you.  Just  don’t  expect any special favours just  for you.
9. Renovating can wait
Most  first -home owners don’t  have  much spare money to think about anything but  the  most basic renovations after  they  buy a home. But rushing into  the  renovations may not  be the  best approach. You need to give yourself some time  to live in a property to see  how  you can  improve it to better suit  you and your  family. 
By living in the  home for some time,  you get a sense of how  your family uses the  property and  you can  identify:
<ul>
<li>How much time  you need to save  some money to put towards your  renovation.</li>
<li>How much you can  afford  to spend on your  renovations.</li>
<li>How the  inside interacts with  outdoors.</li>
<li>How the  sun  moves through the  home.</li>
<li>What  are  the  bad  features you just  have  to remove.</li>
<li>What  are  the  good  features you want  to enhance.</li>
<li>Which  rooms work  and  which  don’t.</li>
</ul>
10. The mortgage does go down — eventually
When  you buy  your  first  property, your  mortgage can  feel like a huge  weight  around your  neck.  You’re committing to an enormous amount of money, it’s true. And for the  first  couple of years, you may have  to deny  yourself many  of the  treats you’re used to — eating out,  buying CDs, travelling overseas — just  to scrape together those monthly repayments.
After a few years of owning  your  own home, financially positive things begin  to happen:
<ul>
<li>You pay  down  the  principal of the  loan  and  the interest repayments start decreasing as well — almost infinitesimally at first  but,  after  a few years, the  interest amounts become noticeably smaller.</li>
<li>As long as you stay  employed, your  wages  are  probably going to keep  increasing. That  means that the  interest payments become smaller in another way — as a proportion of your  income.</li>
<li>If you buy  well, the  value  of your  home may also  go up, so that the  amount you owe to the  lender also  becomes smaller (as  a proportion of your  home’s value). At the  same time,  your  equity in your  home becomes greater — without you doing  anything much at all. </li>
</ul>
Of course, if you decide to borrow against the  increased equity in your  home, you’re  heading for a bigger  loan  and  being  back where you started — but  at least you know you’ve  got a growth asset on your  hands that you can  sell if your  financial situation changes for the  worst.
<img src="/images/stories/buyingdummies.jpg" style="float: left; margin: 5px;">Karin Derkley is a the former deputy editor of Personal Investor magazine, and continues to write for The Age and AFR Smart Investor. She has also lived through the pleasures and pitfalls of purchasing and renovating her own home. She is the author of <a href="https://www.dummies.com/store/product/Buying-Property-For-Dummies-2nd-Australian-Edition.productCd-0730375560,navId-322442" target="_blank">Buying Property for Dummies</a>, published by <a href="https://au.wiley.com/WileyCDA/" target="_blank">Wiley</a>. The <a href="https://www.dummies.com/Section/index" target="_blank">Dummies brand</a> is celebrating its 21st anniversary in Australia in March. This is an excerpt from Buying Property for Dummies.
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Ten things to remember as you dive into home ownership

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Mainland buyers constituted some 13% of sales in Tasmania during the December quarter, according to the Real Estate Institute of Tasmania (REIT) property report.
Tasmania’s median price was $305,000 and Hobart’s median price sat at $365,000 during the period.
The annual price change for the island and its capital city were both down about 4.6%.
During the quarter there were 442 sales with properties typically sitting on market for 55 days, compared with 43 in the December 2010 quarter.
The REIT report splits the suburbs of Hobart into three areas – inner, middle and outer.
Hobart inner had a median price of $471,310, Hobart middle had a median price of $320,000, and Hobart outer had a median price of $345,000.
Launceston’s median was $280,000, an increase for the quarter of 3.7% and annual change of 1.8%.
Top 10 Most Expensive Tasmanian Suburbs/Towns for the December Quarter 1. East Launceston, Launceston ($690,000, 5 sales) 2. Tranmere, Hobart Middle ($665,000, 5 sales) 3. Sandy Bay, Hobart Inner ($642,500, 44 sales) 4. Acton Park, Hobart Middle ($630,000, 7 sales) 5. Mount Nelson, Hobart Inner ($600,000, 5 sales) 6. Battery Point, Hobart Inner ($582,500, 6 sales) 7. Taroona, Hobart Inner ($530,000), 7 sales) 8. Seven Mile Beach, Hobart Middle ($515,000, 5 sales) 9. West Hobart, Hobart Inner ($470,000, 19 sales) 10. Dynnyrne, Hobart Inner ($460,000, 5 sales)
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Mainland buyers account for 13% of Tasmanian sales: REIT

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20/21 Sutherland Street, Cremorne, NSW, 2090
<img src="/images/stories/sutherland.jpg" style="border-style: initial; border-color: initial;"> 
In The Links building in Cremorne, this two-bedroom unit is currently leased until November 2012 at $500 per week. Listing agent Fran Turner of Croll Real Estate says the tenants have been in place for 12 years and are playing significantly below market rent. She says a rental analysis of the property indicates it could be rented out for between $650 and $680 per week. It features views over Willoughby Bay and the surrounding district, laundry and 103 square metres of living space. 
Turner<a href="https://www.croll.com.au/dbpage.php?pg=view&amp;dbase=listings&amp;id=787115" target="_blank"> is marketing the property</a> with price hopes of $730,000 plus.  If it sells for $730,000, its current rent would secure an investor a gross rental yield of 3.6%, below the indicative gross rental yield for Cremorne units of 4.2%, according to RP Data. A rental of $680 per week would equate to a gross rental yield of 4.8%. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. Levies are $1,340 per quarter, council rates are $187 per quarter and water rates are $142 per quarter.
The median unit price for Cremorne rose by 5.6% in the past year, according to RP Data.
The property will be open for inspection on Saturday, February 25 at 11.30am and will go to auction on Saturday, March 10 at 12.15pm.
For more about prices and yields in Cremorne, see the <a target="_blank" href="/news">RP Data suburb page</a>.
For another investment prospect open for inspection this weekend, see page 2.
 
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 4 Fitzroy Court, Endeavour Hills, VIC, 3802
<img src="/images/stories/endeavourhills.jpg" style="border-style: initial; border-color: initial;">
This three-bedroom house is currently tenanted at $270 per week, and the lease has expired. Ray White agent Daniel Pepperell says a new lease could be signed for the house at between $300 and $320 per week. All three bedrooms include built-in wardrobes, and it is close to Chalcot Lodge Primary School, the M1 Freeway and Endeavour Hills Shopping Centre.
Pepperell <a target="_blank" href="https://www.raywhite.com/vic/endeavour-hills/743210/">is marketing the property</a><a href="https://www.century21.com.au/c21/propertySearch/brochure.cfm?grplstno=VIC619037&amp;listing=residential&amp;buyrent=buy&amp;sbrb=BrightonEast&amp;State=ViC&amp;pcde=3187" target="_blank"> </a>with price hopes "in the low to mid $300,000s". If it sells for $320,000, its current rental would secure an investor a gross rental yield of 4.4%, above the indicative gross rental yield for Endeavour Hills houses of 4.2%, according to RP Data. If it were rented at $320 per week, that would equate to a gross rental yield of 5.2%. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees.
The median price for Endeavour Hills increased 3.8% in the past year, according to RP Data.
The property is open for inspection on Saturday, February 25 at noon and will go to auction on Saturday, March 17 at 1.30pm.
For more information about yields and prices in Endeavour Hills, see the <a target="_blank" href="/news">RP Data suburb page</a>.
 
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Friday Form Guide: Yields of up to 4.8% in Cremorne

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Perth sales up 10% on last week: REIWA

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The key regional industrial NSW markets of the Illawarra and Newcastle are set for a tough year in 2012, according to the latest Herron Todd White property market report.
Local Herron Todd White agents say steel producer <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/bluescope-steel-closure-will-severely-hurt-illawarra-market-michael-yardney/2011082551290">BlueScope’s decision to close its No. 6 blast Furnace in Port Kembla in August last year</a> (and axe 800 local jobs) will continue to impact on demand for industrial space in the Illawarra.
“While the closure will not have a direct impact on the level of supply, with the facilities likely to remain in BlueScope’s hands, the impact upon the support business will no doubt see a reduction in demand for industrial space within the Illawarra,” the report says.
“With letting-up periods already a concern, any further reduction in demand may result in rental downgrades over the coming 12 months.
“Coupled with the shutdown of the Port Kembla furnace, investors remain uncertain about the overall outlook for the broader economy and the direction of the Illawarra commercial market.”
According to Herron Todd White, commercial investors who require yields greater than 9% have been priced out of the market by owner-occupiers, “who are willing to pay a premium to secure long-term stability”.
And with commercial lending rates forecast to rise, Herron Todd White does not expect an increase in investor activity during 2012.
“However, it’s not all bad news for the Illawarra; quality properties and properties with strong lease covenants, while scarcely traded, remain in demand and will continue to secure higher capital values over 2012”.
North of Sydney, Herron Todd White reports that 2012 has brought uncertainty for the Newcastle and Hunter industrial property markets.
“Having one eye firmly fixed on well publicised global economic troubles, investors are well aware of the continued reliance on the coal trade in Newcastle to prop up the local industrial market,” says Herron Todd White.
However, plans by Nathan Tinkler’s Hunter Ports to create a new rail link to its $2.5 billion coal and remove about 90% of coal trains from residential areas is expected to resolve some of the oversupply issues in and around Newcastle.
Hunter Ports is currently acquiring industrial land adjacent to the Hunter River for the new railway corridor.
“The oversupply has seen land values fall consistently since 2008. However, in 2012 we expect to see this fall in value flatten out, as land is slowly taken up, with no major releases in the pipeline,” says Herron Todd White.
“The slow rate of take-up has been exacerbated by commercial lenders’ inability to lend speculatively on property without pre-commitments in place.
“The general weakening of industrial property values in Newcastle is illustrated by the sale of a fully tenanted complex in the established industrial locality of Cardiff.
“The property has recently exchanged for $4.3 million. The same property previously sold in April 2007 for $5.2 million, indicating a fall in value of 17% and a yield softening of 2.93% since the previous sale.”
Not all areas are performing poorly.
Herron Todd White reports that Beresfield and Thornton continue to remain the most solid areas locally due to the New England Highway and their location midway between Newcastle and Maitland.
“These areas are situated at the intersection of the F3 freeway to Sydney and the New England Highway which provides access to the greater Hunter Valley including mines in Muswellbrook and Singleton.
“Beresfield remains the number one position for distribution companies in the area due to the ease of access to the above mentioned highways.”
 
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Challenging year ahead for Illawarra and Newcastle industrial markets, but some bright spots: HTW

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Australian banks must resist the temptation of lowering credit standards or seeking out unfamiliar market to grow their lending books, APRA chairman John Laker has warned.
Delivering a speech to the Senate Standing Committee on Economics in Canberra this week, Laker says the challenge for banks is “coming to terms with ‘life in the slow lane’”.
“The Australian economy is expected to grow at around its trend pace over the next couple of years.
“However, if the current cautious approach of households and businesses towards taking on additional debt persists, authorised deposit-taking institutions are very likely to be denied the strong balance sheet growth that supported a sustained period of profit increases before the crisis.
“In these circumstances, boards and management may be tempted to chase unrealistic expectations for returns on equity by assuming more risk — through lowering credit standards or seeking new and unfamiliar markets where they may have little comparative advantage — or by aggressive cost-cutting that may weaken risk management capacities.
“These temptations must be resisted in favour of more measured strategic ambitions,” he says.
Laker’s comments come as the major banks highlighted rising wholesale funding costs and lower margins on mortgages.
In his speech, Laker highlighted three factors – the improvement in the US economy; a soft landing for the Chinese economy; and strong growth and the actions of the European Central Bank– that have lifted sentiment and improved conditions in global bank funding markets and allowed all the larger Australian banks to step up bond issuance.
 
 
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Banks must not take risks to achieve growth: APRA chairman

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New research indicates Brisbane property investors are the strongest buyers in their own backyard.
As investment activity returns to the city, PRDnationwide has found some 86% of recent property investors are Queenslanders.
The company's research director, Aaron Maskrey, says most of the property investors in the city came from inner-city suburbs, and they often chose to invest in the same suburbs.
At 7% New South Wales accounted for the second highest level of investors in the Brisbane market.
Only 1% of investor sales were to foreign property investors.
The majority of the investor spend occurred within the inner-city suburbs, with the CBD registering the most at $94.5 million.
This was followed by Newstead and New Farm, achieving $85.9 million and $42.3 million respectively.
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The top three suburbs to receive the most investor spend remained the same from the previous year.
Investment inside the Brisbane CBD decreased by 17% from the previous year, while New Farm experienced a significant decline of 49%.
Newstead however, increased by 18% in total investment spend.
The PRD study found total investor sales in Brisbane had decreased from the previous year from 5,036, to 3,865, equating to a decrease of 23%.
However, it notes the final number of settled investor sales is yet to be determined for the six-month October 2011 period as a portion of sales have yet to settle.
It suggested many acquisitions from off-the-plan apartment developments will likely settle over the next three to 12 months, reducing the decreased sales percentage figure provided.
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Although housing stock is higher priced than unit stock and typically provides a lower gross yield, when closely analysed it is determined that approximately 50% of investors have purchased units, and the other half bought houses.
The majority of investors who bought a free-standing home did so in the suburb of Forest Lake over the six-month period ending October 2011, registering 55 house sales.
This was followed by Wynnum (34), Coorparoo (33) and Bracken Ridge (32). When observing the previous year, Inala recorded the most house sales at 62, followed by Forest Lake (61) and Wynnum (48).
When observing the top 20 house suburbs, an overriding trend of affordability appears.
The majority of the top 20 suburbs are located in the middle to outer Brisbane, allowing for investors to capitalise on more affordable house prices, which in turn may lead to greater yields.
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