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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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I predict that this is going to be a boom year! 
But before you start wondering what I’m “on” to make a comment like that, let me explain: I believe this is going to be a boom year for fright. 
There is no shortage of scary stuff in the media. Things like "House prices are unaffordable!"; "Property prices will crash"; "Europe’s financial system will fall apart”; “Which economy will topple next?”; “It’s China’s turn for a property bubble”; “Will America go into recession again?"; "Britney Spears does it again!" 
Every year is a boom year Of course just about every year is a boom year for fright.
As far back as I can remember there have always been scary stories in the media.
And looking back over the years I have invested through many property slowdowns, share market crashes, periods of double-digit interest rates and periods when people thought housing was unaffordable or would never go up in value again. Yet despite all of this the value of my properties keeps doubling, allowing me to refinance and buy even more properties.
Like I said, there’s always bad news in the media. I remember in the late 1980s the cry was, "Don't buy houses... they can't go up in value. Your kids will never be able to afford them." Then there were similar headlines in late 2003 and predictions of our property markets collapsing in 2008.
There always seemed to be scary headlines about a grim future that could have given me plenty of reasons not to invest in property. Before the global warming crisis there was an over-population crisis with politicians, environmentalist and economists predicting massive food shortages, rioting in the streets and an impending collapse of society.
I even recall a panic about global cooling.
Of course, the media gets more mileage out of this type of story. Journalists find it hard to get readers’ interest reporting on the unemployment rate being well below the long-term average, an economy that is the envy of most nations, a resources boom the likes of which we haven’t seen in a century and 19 years of continuous economic growth for Australia. This is boring.
Take a long-term view As a property investor you need to take a long-term view and refuse to be scared by the next boogey man jumping out from behind the bushes.
To be successful you need to step back and take a big-picture view.
The fact is, this week somebody's getting married, somebody's looking forward to having a baby, somebody's getting promoted, somebody's getting transferred, somebody's getting divorced. A lot of people are happening to get rich.
This year more than 150,000 new households will be formed in Australia and they are all going to have to live somewhere. Those who can’t afford to buy will have to rent.
This means the long-term fundamentals – in fact the medium-term fundamentals – for our property markets are very sound. And if you take a long-term perspective, you'll be able to spot and act on opportunities that arise this year, as many potential home buyers and investors get scared by this boom year for fright.
Is this a year of opportunity? This could well be a year of opportunities for property investors who are willing and able to see the big picture.
But remember: what you look for is what you see.
If you look for bad news you’ll find it. On the other hand if you look for opportunities, you will find them. And boy, are there opportunities out there at present.
What determines property prices? While many factors, including supply and demand, affordability, interest rates and the economy, affect property values, I have observed:
<ul>
<li>Short-term property price movements (one to three years) are usually determined by market sentiment (which is currently very low)</li>
<li>Medium- to long-term property price movements are determined by two main factors: population growth and the wealth of the nation.</li>
</ul>
Despite what some people would like, strong population growth in Australia is a given (to replace our ageing baby boomers) and as a matter of fact so is our increasing wealth. I don’t think that anyone would argue that as a nation Australia will become wealthier over the next 15 years.
Australia is well positioned to benefit from the growth of Asia, which represents 50% of the world’s population. We have vast resources that will be required by our growing neighbours and we’re at the beginning of the mother of all resources booms.
However, rising property prices, decreasing affordability, changing sentiment and fluctuating supply were a volatile mix that caused our property markets to slump. And now we are in a buyers’ market.
But the funny thing is that buyers don’t buy in a buyers’ market – yet smart investors do! They recognise that the current market presents them with a smorgasbord of opportunities and they step up and take advantage of them.
I’ve found that when there’s lots of bad news people believe times are going to be tough forever, just like when things are good people forget the bad times ever existed and think that things are going to remain good forever.
Neither case is true!
In fact during booms people are most confident when they should probably be the least confident, as things can’t continue travelling at breakneck speed and above average rates of growth. Similarly, during the market slowdowns, things eventually turn around. Ironically, people have the least confidence when it’s more likely that things are going to improve – that is, when markets are near their lowest point.
Now is the right time to educate yourself and get set to take advantage of the opportunities that this stage of the cycle presents.
Yes, things have slowed, and property prices have fallen over the past 18 months. And they will continue to fall in some areas. But this is a normal part of the ups and downs of the property cycle. As always, while some people worry about the bad news and sit on the sidelines, astute investors will set themselves up for the next stage of the property cycle by purchasing well-located real estate.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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This year will be a boom year – for scaremongering

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The appeal of line-of-credit mortgages – traditionally popular among property investors – has declined to levels last seen May 1998, according to the latest ABS Housing Finance figures.
The November figures show that only 3.7% of home loans were revolving line of credit, with just 1,900 of these loans taken out over the month.
Line-of-credit loans peaked at 16.1% of all loans in June 2002, when more than 8,300 of these loans were taken up by borrowers.
The popularity of the products, which act like giant credit cards or bank overdrafts, dropped below 10% of all loans in 2006.
Their recent decline has matched Australian households increasing their savings and deleveraged their balance sheets in the response to the GFC and in the face of more economic uncertainty.
 
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="214" valign="top">
 
</td>
<td width="219" valign="top">
Line of credit mortgages as % of total housing finance
</td>
<td width="183" valign="top">
Average loan size
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2002
</td>
<td width="219" valign="top">
12.4%
</td>
<td width="183" valign="top">
$155,000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2006
</td>
<td width="219" valign="top">
8.2%
</td>
<td width="183" valign="top">
$195,000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2007
</td>
<td width="219" valign="top">
5.8%
</td>
<td width="183" valign="top">
$253,000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2008
</td>
<td width="219" valign="top">
6.5%
</td>
<td width="183" valign="top">
$301.000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2009
</td>
<td width="219" valign="top">
5.6%
</td>
<td width="183" valign="top">
$288,000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2010
</td>
<td width="219" valign="top">
5.1%
</td>
<td width="183" valign="top">
$335,000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2011
</td>
<td width="219" valign="top">
3.7%
</td>
<td width="183" valign="top">
$318,000
</td>
</tr>
</tbody></table>
Source: ABS
“It’s certainly speaks to the shift in both the market and consumer behaviour to see the reduction of revolving lines of credit in the home loan market,” says Dean Rushton, chief operating officer of mortgage broker Loan Market.
Rushton says their popularity has declined because borrowers are choosing cheaper products that offer redraw facilities or offset accounts should they need extra money. 
“These products are often free of any additional fees,” he says.
“Line-of-credit home loans for residential finance that were more in favour during the early to mid-2000s appear to be headed for the mortgage museum as a result of the GFC,” he says.
“However, the key point here is consumers want to have the one-two punch of having access to additional funds paid and the forced discipline of reducing their loan amount.”
Rushton says the key disadvantage for a revolving credit line is that interest rates were generally 10 to 20 basis points higher.
He says with offset and redraw features borrowers can access an amount up to the amortised rate of their mortgage.
“This type of transaction ensures that borrows do not fall behind on their original repayment schedule,” he says.
Line-of-credit mortgages work in the same way as an overdraft account – they provide an approved limit of borrowings that investors can use piecemeal or all at once, depending on their needs.
Interest is accrued on how much of the loan is used and unlike other mortgages it does not have a fixed loan term.
The products have been popular among investors because they allow them to tap into the equity already built up in their portfolios and use this to fund further property purchases or renovations.
Line-of-credit loans were introduced into Australia in the early 1990s but only started growing in popularity in 1999.
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Investors shun line-of-credit loans in favour of cheaper alternatives

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Renovating residential investment property is a great way of building wealth quickly. It’s a relatively low-risk strategy if executed correctly and will allow you to manufacture capital value and increase rental returns without relying solely on market conditions. 

Back in 1999 a friend of mine wanted to sell a house his parents left him when they passed away. Since he knew that I knew a bit about real estate he asked for my help. The house had been neglected for 18 months and was in very poor condition. A few local real estate agents gave him valuations ranging between $320,000 and $340,000.

I did a little research and was confident my friend could get more if he tidied up the house but he couldn’t be bothered and just wanted to sell it as it was. So we made a deal. I would fix up the house and when he sold it we would split whatever profit we made, based on the average of the initial valuations less the renovation costs. So I got stuck into it, working 12 hours a day for a week.

I cleared out all the junk, filling two jumbo skip bins. I had the floors sanded and polished and touched up the interior paintwork. I tidied up the gardens, trimmed some trees that were overhanging the roof, had some stumps removed and put bark on the garden beds. I washed the outside of the house and touched up the paintwork, replaced the cracked roof tiles, cleaned the gutters and painted them as well as the eaves.

The cost of the makeover was just over $10,000 plus my labour. Only two weeks after their initial valuation, we asked two of the original selling agents (plus another one) for a fresh valuation. They all valued the house between $390,000 and $410,000. It sold for $395,000. So for an outlay of around $10,000 plus one week of my labour we had increased the value of the house by $65,000.

In essence, I had converted a little imagination and one week of my time into $27,500, which I used – yes, you guessed it – to buy some property to renovate. Now that you can see what’s possible, here are my top three reasons why renovating residential property is one of the best investment strategies:

1. It’s easy to understand

With the popularity of shows like The Block and The Renovators, most people are familiar with the concept of property renovation and how it can increase the value of a property. Because people already understand how it works, they don’t have to struggle with the basics and can get on with practising their skills and developing their techniques.

2. You’re in control

How much control do you have over the performance of shares you buy? Unless you own a big enough chunk of shares in a company to get yourself a seat on the board, very little. The board of directors can make bad, negligent or straight-out criminal decisions, wiping significant value off your shares, and apart from selling your shares and investing elsewhere as a sign of protest, there’s not much you can do about it.

However, with property renovation you’re in the driver’s seat. Maximum return comes from a property when it’s improved to its “highest and best use” for its tenants and buyers. Because you make all the decisions, you can be proactive to ensure the property reaches its highest and best use.

You don’t have to quit your day job, but renovating can become a full-time career if you want it to. You can potentially make more money in less time than you’re earning now.

3. You can “manufacture” capital growth

If you buy a parcel of shares is there anything you can do to add value to them? No. You can add value to a business but unless you’re a naturally gifted entrepreneur, growing a business is hard work. It usually takes a significant commitment of time, money and emotional energy and according to some reports and business books I have read you have an 80% chance of going out of business within the first five years.

In comparison, adding value to an investment property is relatively simple if you know what you are doing. You add value by taking a structurally sound but run-down property and smartening it up, making it more desirable, and thus more valuable, to renters and buyers.

You can give it a coat of paint and tidy up the garden. Or replace all the doorknobs, build a barbecue, replace the carpet or polish the floorboards. There are literally hundreds of improvements, big and small, that you can do to increase the value. The trick is to add more value than the actual cost of the improvements.

By doing creative, cost-effective cosmetic renovations you can “manufacture” capital growth. Rather than just sitting back and waiting for the market to deliver capital growth over time, you accelerate the process by manufacturing capital growth with a renovation. This allows you to build wealth faster than relying solely on market increases.

As an added bonus, renovating can also increase your cashflow via the higher rent you can achieve for the renovated property. So you have two ways to profit: capital growth and increased cashflow. If you’re clever about it, the increased rental income you generate can cover the costs of financing the renovation. This means you can achieve the capital gain without putting in any of your own money.

In summary, renovating is a solid approach for building wealth which is less reliant on outside factors which are beyond your control. The only limit is your imagination. I firmly believe that building wealth through renovating residential property is a skill that can be learnt by just about anyone.

If you don’t include renovating as part of your property investment strategy then you’re probably not maximising your potential returns. You can use it to fast-track the growth of your portfolio, create an additional income stream, or a combination of the two.

My definition of renovation

When I refer to renovation I’m talking about cosmetic rejuvenation. I’m not talking about buying derelict property and making it liveable again, restoring period homes or fixing major structural defects. What we’re doing is taking a structurally sound but messy property, smartening it up and adding the “wow factor” on a limited budget.

The type of renovation projects you attempt should be in line with your level of knowledge, skills and tradespeople contacts. By using some common sense I believe most people can handle a basic rejuvenation without too many dramas.

My seven-step plan for renovating for profit

The secret to success in anything you do is having a good plan, conducting your research and working smartly. To get you started I want to introduce my proven seven-step plan that I use to renovate properties for profit, for myself and my clients:

Step 1: Understand the renovation profit formula – once you understand the theory you’ll see where the profits lie.

Step 2: Work out how much you can afford – you need enough in the kitty to cover the three major costs of renovating.

Step 3: Target the right property type – match your risk profile to the right type of property.

Step 4: Market research and preparation – it all comes down to the all-important research.

Step 5: Select the right property to buy – how to spot a property with the maximum profit potential.

Step 6: Pay the right price – how to work out the maximum you can afford to pay and still make a healthy profit.

Step 7: Get the work done on time and budget – avoid profit-shrinking cost overruns and delays.
Patrick Bright is a real estate author and founder of Sydney-based buyer’s agency <a target="_blank" href="https://%20www.epspropertysearch.com.au">EPS Property Search</a>. Bright has purchased over $500 million worth of real estate for clients. His best-selling titles include The Insider’s Guide to Buying Real Estate, The Insider’s Guide to Saving Thousands at Auction, The Insider’s Guide to Profitable Property Investing and The Insider's Guide to Renovating for Profit. This is an excerpt from The Insider's Guide to Renovating for Profit. 
For expert commentary and analysis on lessons to be learnt from property reality TV, <a href="https://register.propertyobserver.com.au/lights-camera-auction/" target="_blank">download our e-book Lights, Camera, Auction!</a>
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pbright-aNtgvRfvJN

Three reasons you should renovate for profit

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The inclusion of Sydney in Savills landmark World Class Index highlights the city’s emerging standing in the world of prestige international property offering a safe haven for international investors, particularly from Asia.
The 2011 Savills report on the world’s 10 leading prestige property locations for international investors suggests Sydney is positioned to benefit from the both the “old” and “new” world economies that it bridges.
Savills NSW research director Simon Hemphill believes Sydney is seen as a stable old-world investment choice with a well-established luxury housing market, while also in close proximity to the booming new-world economies of Asia Pacific.
Luxury Sydney property also represents very good value on the global stage, according to Savills, which ranks Sydney as the cheapest location for global billionaires, while also offering the largest size of homes for the super-wealthy, at almost 1,900 square metres.
“Overall, Sydney still offers international investors great value and is extremely well-located to take advantage of Asian wealth if and when its policies restricting international buying are relaxed,” Hemphill says.
“Sydney is geographically very well placed to benefit from investment from frustrated Chinese and other Far Eastern investors, but they will need to open up their markets to such investors to trigger this,” according to Savills international research.
“The city’s undersupply of accommodation and high in-migration plus restrictions on new development, due to zoning and geography, are likely to keep prices the highest of any Australian city.”
Savills describes Sydney as beginning to display many of the common characteristics of the World Class city – constrained land supply, increasing pressure from overseas investors and high demand for prime accommodation – but it is unusual in offering very spacious living accommodation in relation to other leading international investment locations.
“Asian interest in residential developments within the Sydney metropolitan area is at an all-time high, with both Asian developers and private investors making substantial investments in the market,” Hemphill says.
“Anecdotally, almost a third of residential projects in the Sydney metropolitan area currently under construction or being actively marketed are owned by Asian development companies.
“Private investors from Asia also make up a significant portion of buyers for inner-city residential developments, such as the Frasers Property Central Park development in Broadway, in the Sydney market. Indeed, circa 25% of purchases made so far in the Central Park development were by south-east Asian private investors. This trend is set to continue, given the nature and location of a number of developments currently mooted in and around Sydney,” he says.
For more about Asian investors in Australian property, <a target="_blank" href="https://register.propertyobserver.com.au/foreign-investment-in-australian-property-markets/">download our free eBook.</a>
 
 
 
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jchancellor-FAypfDUnLy

Sydney a ‘World Class’ city and a safe haven for Asian investors: Savills

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Westfield has been awarded rights to develop, lease and manage the retail space at the Los Angeles airport, LAX, the sixth-busiest airport in the world and third in the US.
It’s a 17-year agreement with the Los Angeles Board of Airport Commissioners.
The forecast minimum revenue to Los Angeles World Airports (LAWA) is US$331.1 million over the full term, which comprises a two-year development period and a 15-year operational period.
Westfield and its concessionaires must invest no less than US$81.9 million in initial improvements and US$16.4 million in mid-term refurbishment improvements to four facilities: the existing Tom Bradley International Terminal (TBIT), the new TBIT currently under construction, Terminal 2 (LAX’s second-busiest international terminal), and the airport’s iconic Theme Building. The landmark Theme Building opened in 1961 with the building with observation level resembling a flying saucer on four legs.
The agreement covers a minimum of 7,828 square metres of concession area.
“Los Angeles World Airports is undertaking a US$4.11 billion modernisation program at LAX to improve customer service, safety and security at one of the most significant international gateways in the world,” advised LAWA executive director Gina Marie Lindsey in a Moodie Report update.
“Westfield is very proud to be selected to partner with Los Angeles World Airports in the transformation of Los Angeles International Airport,” says Westfield Group Chief Executive Officer Peter Lowy. “We are fully committed to bringing our global resources and development expertise to deliver an iconic, world-class airport experience.”
Westfield Concessions Management LLC was selected from three bidders.
Airport officials are planning to award another concessions management contract for terminals 1, 3 and 6 later this year.
Westfield currently has similar operations at nine other US airports, including New York/John F. Kennedy International, Boston/Logan International, Ronald Reagan/Washington National, Washington/Dulles International, and George Bush Intercontinental/Houston.
Westfield’s airport retail division has 16 years of airport concessions development and management experience at major US airports.
The group has investment interests in 122 shopping centres in Australia, the United States, the United Kingdom, New Zealand and Brazil, with a total value of assets under management in excess of US$59 billion.
In the US it has 55 shopping centres that are home to 9,000 specialty stores and comprise 5.85 million square metres of leasable space across the US.
In the Los Angeles area, it owns and operates nine shopping destinations including Westfield Century City, Culver City and Topanga.
LAX offers more than 600 daily flights to 91 domestic cities and more than 1,000 weekly nonstop flights to 56 cities in 32 countries on nearly 75 air carriers.
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Westfield wins contract for LAX retail space

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Tomorrow’s fourth-quarter inflation data is typically a key milestone for Australians focused on the future course of interest rates (i.e., savers and borrowers). Yet recent ructions in credit markets make the RBA’s decision-making process vastly more complex.
On the one hand, the RBA may throw caution to the wind and cut rates further and faster in order to have its desired effect. Alternatively, Australia’s central bank could conclude that its two cuts in November and December, which have been passed on by the banks, have supplied sufficient relief for the time being, and it can wait to gather better information. There is, after all, something to be said for stability. And there is little doubt that a rate cut that was not passed on by the banks could prove damaging and destabilising to community confidence.
But more on these nuances later. I want to begin by dealing with tomorrow’s data. The first chart below shows the path of core inflation in Australia since the middle of 2010 using the RBA’s published estimates. What you can see is that for five consecutive quarters core inflation was heading in one direction. The RBA ignored the two very high core inflation prints over the first half of 2011 (having pre-emptively raised rates in November 2010), and then cut rates twice in November and December partly on the basis of the very low 0.3% result in the third quarter.
Click image to enlarge
<a href="/images/stories/jan241.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/jan241thumb.gif"></a>
The RBA targets keeping core inflation between 2% and 3% per annum “over the cycle”. Since Glenn Stevens was appointed governor in September 2006, quarterly core inflation has, based on the RBA’s data, averaged 0.8%, or circa 3.2% per annum. Any credible judge would concede that the RBA would be uncomfortable with this track record.
Most analysts think the RBA will cut rates in February if the average of the two core inflation numbers prints at or below 0.6% tomorrow. Assuming no further revisions to the first three quarters of 2011, which is a critical rider, a 0.6% result would mean annual core inflation is sitting around 2.5%.
Ordinarily, the RBA would have to see core inflation falling towards, or below, the lower bound of its target band to justify cutting rates into stimulatory territory. If the core number comes out at, say, 0.5% or 0.6%, the RBA can argue that the six monthly pace of inflation is in the lower half of its band, and, further, that it is forecasting weak outcomes over 2012 and 2013.
Since Treasury estimates that the “natural rate” of unemployment is around 5% and the latest ABS estimate is 5.2%, which is around where it has been for the last 12 months, it is not necessarily the case that the labour market provides the RBA with the smoking gun it needs.
As the two question marks in the chart above highlight, the curve ball for the RBA will be if the third-quarter inflation numbers revise up materially, which is not something it would want to see, and the fourth quarter prints at 0.7% or higher. This would both put core inflation in the top half of the RBA’s target band, and perhaps more worryingly, suggest that the low third-quarter result was an anomaly that did not supply grounds for subsequent rate cuts.
No economists are forecasting core inflation greater than 0.7% tomorrow, so this would be a big surprise. Indeed, almost all economists believe that the risks are skewed to the downside, with the possibility of a very low, say, sub-0.3% outcome.
One issue is that the quarterly standard deviation in core inflation since 2000 has averaged about 0.2 percentage points. It is, as a consequence, plausible that we get a result that is well below, or well above, the “consensus view”.
As someone with a substantial home loan, I would instinctively like to see mortgage rates fall further. Let’s nevertheless suppose that it evolves into a line-ball decision for the central bank. There are some additional wrinkles that make this situation especially challenging.
The first relates to financial market stresses. When the RBA cut rates in November, it argued via its media voice-pieces that this was to be a once-off, technical adjustment to the cash rate to get it back to “neutral”. It pointed to the very low third-quarter inflation data as justification for this striking change in its position.
When the RBA then resolved to follow this cut up with another in December, it claimed that this was both a 50:50 call, and, further, not warranted by domestic economic conditions, which it stated were cruising along “at trend”. Its main focus was Europe, and the need to provide the financial system with insurance against adverse outcomes over the New Year period, especially since it was not planning on holding a board meeting in January.
One of the real-time measures of Australian financial market stress that the RBA says it watches closely is the “ITraxx credit default swap index”. Simply put, this gives an indication of investors’ daily estimates of the likelihood of Australian banks and companies defaulting on their loans. My next chart below illustrates the changes in the ITraxx index since the RBA’s November board meeting.
Click image to enlarge
<img src="/images/stories/jan242thumb.gif">
The good news is that the index has plummeted 17% since December 6th (when the RBA last met), and is 12% below its level at the time of the November meeting.
From a pure financial stability perspective, the RBA’s worst fears have not borne out. The eurozone has not collapsed, and the cost of government debt for most European nations has recently declined given the success of the ECB’s long-term funding operations. As a final helpful point, the run of data out of big trading partners, like China, India and the US, has been much better than most forecasters expected.
There is, however, a flipside to this slippery subject. While the credit default index has fallen strikingly, the new year has brought with it a dislocation in Australian bank funding markets.
Whereas the major banks were previously raising five year, AA- rated senior, unsecured funding at about 1.5 percentage points above the benchmark swap rate, that has now risen closer to two percentage points. This is primarily because of the <a href="https://www.propertyobserver.com.au/economy/stand-by-for-world-s-first-daily-house-price-index-christopher-joye/2011111552360">introduction of “covered bonds”</a>, which have forced a repricing of the cost of all Australian corporate debt in the last week or two.
In contrast to other bank debts, covered bonds are “secured” (as opposed to “unsecured”), and rated AAA rather than AA- (in the case of the four majors). They are, therefore, far safer than anything the banks have issued in the past with the exception of securitised home loans (known as residential mortgage-backed securities or RMBS, which also attract a coveted AAA rating).
Covered bonds have several advantages over RMBS, including: (1) they give investors recourse to both the bank and the assets (whereas RMBS only offers recourse to the assets); (2) the banks “overcollateralise” the bonds, which means investors are given security over assets worth more than the value of their capital commitment; and (3) investors can compel the banks to replace impaired assets with good ones (whereas in an RMBS issue you are stuck with the assets you get).
The problem for the banks is that even with all these advantages, AAA-rated covered bonds are pricing at about 1.7 percentage points over the benchmark swap rate, which means that everything else – which has lower ratings and higher risk – must price higher again. So we have seen, and could continue to see, a secular increase in the cost of corporate debt since the introduction of CBA’s covered bond into the domestic market last week.
The biggest casualties of this new dynamic are the non-major banks, which will not issue covered bonds because they are too expensive to do so. The short explanation as to why is that the non-major banks start with much lower credit ratings than their bigger cousins (because the latter are regarded as “too big to fail”), and in order to lift one of their covered bonds to a AAA rating, they would have to provide substantially more security (i.e., pledge more assets). In the words of one smaller bank CFO, it is simply “non-economic” for them to do so.
The bad news is that the cost of all the non-majors’ unsecured debt is now soaring, because it is regarded as so much riskier than the majors’ covered bonds. This will likely force many smaller banks to boost their deposit rates and focus on raising funds in the retail market, which is not a bad outcome for savers.
This is but a simple sketch of what is going on in bank funding land. It means that if the banks want to preserve their historic net interest margins, they would currently struggle to pass on a standard RBA rate cut of 0.25 percentage points. That in turn creates uncertainty for the RBA.
How much should they cut by if they want to do so, and how much community angst will this process create if they cut by, say, two standard moves (or 0.5 percentage points), and the banks only pass on one? Does a double rate cut send confusing signals to Australians about the prospects for the local economy (i.e., exacerbating the doom and gloom peddled by popular media)? And should monetary policy be used as tool to support bank margins, or are there more surgical solutions (such as public insurance)?
This is also complex for the banks, since the dislocation created by the advent of covered bonds creates extreme uncertainty for the major and, particularly, non-major banks as to what their “steady-state” cost of funds will ultimately be. The bottom line is that nobody knows.
If core inflation settles at around the mid-point of the RBA’s target band and the European imbroglio looks to be sorting itself out, there is a case for the RBA remaining on the sidelines until it gets better information on the effectiveness of its own policy. If, on the other hand, core inflation surprises on the downside, we should get more rate relief one way or another, which would be a welcome boon for borrowers and the housing market.
The ramifications of a high fourth-quarter inflation number and upward revisions to the low third-quarter print are possibly quite calamitous for our independent central bank.
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
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Inflation milestone: The RBA is in uncharted territory in deciding next rate movement: Christopher Joye

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The glut of property sitting unsold on the market means 2012 buyers could find reduced prices in capital city markets given vendors face lengthy blowouts in the number of days on market before sale.
Premium housing has recorded the highest blowout in the average time on market before sale, according to a RP Data survey.
Perth’s Cottesloe houses are currently taking up to 160 days to sell, up by 74 days over the year.
The prestigious suburb of Mosman Park on Perth’s Swan River recorded a 59 day blowout in days on market with homes in the suburb currently taking about 123 days to sell.
“The inner areas of each capital city have often recorded some of the largest increases in the average selling time,” says senior researcher at RP Data Cameron Kusher.
“This reflects the broad trend of premium housing markets recording weaker conditions than lower-priced markets.”
“In regional areas – although coastal markets have been the weakest performers in terms of value growth – these markets have generally been underperforming for some time and in many instances have not recorded a substantial increase in time on market over the past year,” he says.
The data records the greatest increase over the 12 months to October 2011.
According to Kusher, with housing markets transitioning out of a growth cycle over the past 12 months and value falls experienced across most regions, vendors have found it increasingly difficult to sell their properties.
“We are now seeing an increase in the amount of stock available for sale where it has risen to record highs over the year.
“Vendor discounting levels have increased and the negotiation process has taken longer.
“Subsequently, the average time on market has risen across most regions,” he says.
Kusher notes unit markets within the outer suburbs recorded the greatest increase in time on market.
Across regional Australia, Plantagenet in south-west Western Australia has recorded the greatest increase in the average time on market for houses, with the average selling time increasing by 123 days over the past 12 months. The Plantagenet council area also has the highest average selling time for houses of all Australian council areas, at 235 days.
Regional areas of Western Australia, South Australia and New South Wales account for the vast majority of council areas highlighted.
The Central Coast council area on Tasmania’s northern coastline sandwiched between Burnie and Devonport recorded the greatest increase in the average time to sell for a unit over the year, with units now taking 166 days.
The time it takes to sell has increased by 104 days over the past year.
Across the regional areas of the country, seven council areas in both New South Wales and Victoria have been among those to record the greatest increase in average time on market, followed by six in South Australia.
 
 
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Property taking longer to sell as stock levels hit record highs in some areas: RP Data

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RP Data has released a list of the 30 regional markets where the number of days it takes to sell a unit increased the most during the year to October 2011. The chart shows the time on market (TOM), e.g. Central Coast units take an average of 166 days to sell. The increase refers to the number of days, rather than  a percentage increase. 
Click to enlarge
<a href="/images/stories/rpjan244.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpjan244thumb.gif"></a>
TOM= Time on Market
Increase is in days, not percentage
 
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Days on market blowout: the 30 worst regional slowcoaches for unit sales: RP Data

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RP Data has released a list of the 30 regional markets where the number of days it takes to sell a house increased the most during the year to October 2011. The chart shows the time on market (TOM), e.g. Plantagenet houses take an average of 235 days to sell. The increase refers to the number of days, rather than  a percentage increase.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/rpjan243.gif"><img src="/images/stories/rpjan243thumb.gif"></a>
TOM= Time on Market
Increase is in days, not percentage
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Days on market blowout: the 30 worst regional slowcoaches for house sales: RP Data

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RP Data has released a list of the 30 capital city markets where the number of days it takes to sell a unit increased the most during the year to October 2011. The chart shows the time on market (TOM), e.g. Cottlesloe units take an average of 160 days to sell. The increase refers to the number of days, rather than  a percentage increase.
Click to enlarge
<a href="/images/stories/rpjan242.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpjan242thumb.gif"></a>
TOM= Time on Market
Increase is in days, not percentage
 
</body></html>

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