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]

Joel Robinson

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

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

&nbsp;

Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

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

<html><body>
One of the biggest question marks facing Australia in 2012 is whether global banking turbulence will affect Australian property prices. The international bears say we are very vulnerable. For example, the International Monetary Fund says that Australian house prices are overvalued by between 10% and 15%. The Economist magazine reckons the overvaluation is closer to 50%. By contrast, Property Observer columnist Christopher Joye from Rismark believes our dwellings are not overpriced.
The last word we got from 2011 was RP Data-Rismark November capital city home value index, showing a rise of 0.1% in November – its first lift in 11 months.
The factor to watch in 2012 is the willingness of our banks to lend. The tightening of Australian bank lending for housing is one of the reasons we have seen a small fall in the housing market in 2011. If banks were to tighten further there would be a more marked decline.
Of course, closely related to the availability of bank lending is the level of employment. If there is a rise in unemployment and therefore a rise in problem housing loans, not only will it tighten bank lending, but it will also increase the supply of houses as people can't keep up with their mortgages.
The banks' lending criteria is also closely related to the level of interest rates. If rates rise, banks become more cautious because people can't afford to repay the loans. Urged on by our politicians, Australians have come to link Reserve Bank official interest rates with the level of home loan rates.
There is grave danger that in 2012 this nexus will be broken.
Historically, Australian banks have made substantial profits by borrowing money on the overseas wholesale market and using that money to fund about 40% of our home loans. European banks are headed for a substantial money squeeze and that may spread to the US, particularly if US state and local governments get into trouble. If that happens then Australian banks will have to either pay the going wholesale rate, bid up the local deposit interest rates to attract local savings or curtail their lending.
Each of those alternative actions will affect the value of Australian dwellings. One of the looming dangers in the banking sector is the exodus of European banks from Australia.
As they withdraw funds from a large number of medium-sized businesses, those enterprises will lower employment levels, although the accelerated mining boom will take up a lot of the slack.
The aim of Australian banks in 2012 will be to attempt to take advantage of the sharemarket turbulence to entice people to put money in bank deposits and without paying substantially higher interest rates.
If they can do that, it will contain the higher interest rate pressure and be of great value to the dwelling market.
Banks have to be careful because if they take actions that reduce the value of dwellings by a substantial amount, they will in turn cause a big rise in bad debts as people throw in the towel and the subsequent foreclosures create bank losses and further house price declines. Accordingly, if banks are smart enough to understand these forces, they should be able to restrict any housing decline to relatively small amounts.
But there is an Australian dwelling factor outside of our banking system and domestic economy.
Mainland Chinese have dominated the purchases of inner Sydney apartments and, to a lesser extent, Melbourne apartments. In the last month or so the Chinese have halved their buying of apartments and if that accelerates, it will push down the prices of apartments in our two major cities (primarily in Sydney). We could be looking at a 10% fall. In turn, that will spread to apartment blocks outside the inner city and ordinary houses. But again the effect is manageable.
The greatest danger is that a sizeable proportion of the multitude of inner Sydney and Melbourne apartments that have been bought off the plan by mainland Chinese are not consummated and the Chinese simply walk away and accept the loss of their deposit.
That will create a pall of unsold dwellings over the Melbourne and Sydney markets in much the same way as contracts reneged in the Sunshine and Gold Coast have affected property values.
The Chinese have honoured almost all contracts to date but we all need to understand that there is a danger. Australia has one of the best banking systems in the world because we have not gambled with depositors' money as occurred with European and US banks.
But that doesn't mean we don't face important challenges in 2012.
This article originally appeared on <a target="_blank" href="https://www.businessspectator.com.au/">Business Spectator</a>. 
</body></html>

rgottliebsen-VjLFh9nsD4

The banks' delicate property balance: Robert Gottliebsen and Alexander Liddington-Cox

<html><body>
Westpac has revealed it has provided a distorted breakdown of its mortgage book since its merger with St George bank in late 2008.
On the final day of trading of 2011 the bank revised down its proportion of owner-occupier loans from $198.6 billion to $165.2 billion while revising up its proportion of investment loans from $88.6 billion to $116.8 billion.
The revisions relate to “legacy” adjustments following the bank acquiring St George bank in December 2008.
The revisions include changes to St George lending figures dating from November 2008 to February 2011 while Westpac revisions apply from November 2008 to October 2011.
The error was revealed following an internal review and means that monthly banking figures provided by APRA dating back to November 2008 have been incorrect for three years.
In a statement Westpac said the changes would have no impact on its published financial statements and financial position.
However, some banking analysts have questioned whether the restatement indicates a poorer-quality loan book.
Westpac says it might ake additional changes to its data “should it identify further opportunities for enhancement and alignment”.
The restatement comes as APRA prepares to issue the final version of its prudential standard covering capital adequacy requirements in mid-2012 in line with Basel II banking reforms and follows Australia’s big four banks having their <a target="_blank" href="https://www.propertyobserver.com.au/economy/major-banks-play-down-sp-ratings-downgrade/2011120252649">long-term credit rating downgraded by Standard &amp; Poor’s at the start of December 2011.</a>
Westpac says the revisions will not have any material impact on its risk profile, with a spokesperson saying the risk “relates to the individual, not the property”.
“The real risk in the mortgage is whether people can continue to pay or not. We lend based on people's capacity to repay."
The bank blames the error on borrowers using equity generated in their homes to buy investment property.
The bank was also revised down the size of loans to financial corporations from $10.1 billion to $11.3 billion, while liabilities to clearing houses and financial institutions were revised down from $6.2 billion to $5.2 billion.
Other revisions included lowering the bank's holding of trading securities from $51.1 billion to $32.2 billion, while raising the value of its investment in security holdings from $70.1 billion to $90.2 billion.
</body></html>

lschlesinger-FZcF9M3vE6

Westpac has reported inaccurate mortgage book numbers for three years

<html><body>
<city>Sydney</city> and <city><place>Canberra</place></city> are the only two capital cities to deliver noteworthy returns to investors over the year to November 2011, according to latest RP Data-Rismark Hedonic Home Value Index.
<country-region><place>Australia</place></country-region>’s biggest city has been kindest to investors, delivering a total return (house price increases and rental increases) over the past 12 months to November of 4.3%.
<city><place>Canberra</place></city> was the only other capital city to deliver a noteworthy return for investors of 3.5%. <city><place>Darwin</place></city> returned investors 1.7%.
<city>Brisbane</city> fared the worst, delivering a total return of -2.4% over the past 12 months, while <city><place>Melbourne</place></city> investors lost 1.9%.
Including gross rents, the total return realised by investors in capital city property remained positive in 2011 at 1.2%.
Sydney house prices remained unchanged in November and were on hold over the past 12 months, rising just 0.5%,while Canberra house prices increased by 0.4% in November, a striking result in the context of a 0.1% increase for the month across all capital city markets.
Overall, <country-region><place>Australia</place></country-region>’s regional property markets outperformed capital cities in November with values rising by 0.3% on a seasonally adjusted basis over the month, according to the latest RP Data-Rismark Hedonic Home Value Index.
Capital city house prices remained stagnant, rising by 0.1% over the month to continue a trend of <a target="_blank" href="https://www.propertyobserver.com.au/australian-capital-territory/regional-centres-outperforming-capital-cities-cba/2011061650514">non-capital city markets outperforming their big-city rivals over the past year.</a>
Over the past 12 months leading up to the December holiday period, the regional housing market, which accounts for about 40% of all homes by number, has declined by 2.5% while capital city house prices have fallen by 3.5% led by Brisbane (down 7% year on year) Melbourne (down 5.6%) and Adelaide (down 5%).
<img src="/images/stories/rpdatajan3.gif">
Over the three months to November, <city>Darwin</city> and <city><place>Canberra</place></city> were the best-performing capital cities with values up 0.3% over the three months to November while Melbourne and Brisbane were the weakest with values down 1.7% over three months to November 2011.
<city>Darwin</city> delivered the highest rental yields with gross rental yield of 5.5% for houses and 6% for units while <city><place>Melbourne</place></city> had the lowest gross rental yields of 3.7% for houses and 4.3% for units.
 
</body></html>

Sydney and Canberra best for investors in 2011: RP Data-Rismark

<html><body>
Mortgage broking firms will kick off 2012 in a better frame of mind after ASIC eased training and competence requirements for credit representatives that operate under the organisation’s credit licence. 
Since ASIC assumed the mantle of credit industry regulator in July 2010, firms have come under a tougher and more costly compliance regime, which has caused many to exit the industry. 
Under the revised regulatory guide (206) credit representatives no longer have to complete a certificate IV in finance and mortgage, but are only required to complete training “as determined by their licensee” so that they are: 
<ul>
<li>Able to deal appropriately with consumers (gather appropriate information, understand their needs, etc.)</li>
<li>Have broad knowledge about home loan products and their characteristics (features, fees, etc.)</li>
<li>Understand the economic and market context, understand basic financial and accounting concepts that relate to home loans and understand real estate terms and concepts </li>
</ul>
To assist with this training, ASIC has provided “more principles-based guidance on the types of skills and knowledge these representatives should acquire through the training they undertake”. 
In addition, ASIC has given credit representatives the option of a “regular knowledge update review”— a test administered by a registered training organisation via a secure facility – rather than undertaking 20 hours of continued professional development such as attending conferences and seminars or publishing journal articles. 
“Our revised policy seeks to minimise licensees’ compliance burden while requiring a high standard of training for those who play a significant role in decisions about home loans,” says ASIC commissioner Peter Kell. ASIC will monitor how the credit industry complies with RG 206 over the next three years.
If, following this period, the regulator is not confident that the more flexible arrangements are effective “it may investigate whether a more prescriptive approach would be appropriate”.
</body></html>

ASIC eases mortgage broker training requirements

<html><body>
It appears that the November rate cut has already worked its magic in the housing market, leading to the first lift in dwelling prices in almost a year. Before the rate cuts in November and December, supply and demand in the housing market was reasonably balanced, translating to a softening of home prices. But the rate cuts will serve to lift demand for homes and drive property prices higher over 2012. CommSec expects Australian property prices to grow around 5% in 2012, but as always there will be major deviations from city to city and across regional areas. Certainly <a target="_blank" href="https://www.propertyobserver.com.au/residential/sydney-and-canberra-best-for-investors-in-2011-rp-data-rismark/2012010252951">a small 0.1% lift in home prices </a>is nothing to get excited about at present. But the small increase does signify that home prices are flattening or close to flattening. If you had been thinking about purchasing an investment property, now is the time to get your homework and paperwork in order. The job market is healthy, housing markets are considered to be undersupplied and rates have been cut twice in the space of two months. Certainly other asset markets don’t offer the same attraction as residential property. But as always it is a case of researching your prospects, as conditions differ significantly across the country.
One major consideration for investors is whether to purchase a house or unit. Certainly apartments have been in demand as generation Y exercise their preferences for city living rather than suburban life. The gap between Australian house and apartment prices is now the smallest in over five years. Could apartments eventually become more expensive than homes? It seems hard to believe, but the gap in prices continues to close. Aussies still aren’t keen on taking on debt – a factor that will bring the Reserve Bank a step closer to cutting rates in February. The Reserve Bank monitors home prices, lending, the Aussie dollar and the level of interest rates when considering rate changes. Home prices are still flat, the Aussie dollar remains firm, lending growth is weak and variable mortgage rates are still slightly above 15-year averages. CommSec expects the Reserve Bank to cut rates by another 25 basis points or quarter of a percent in February.
What do the figures show? 
House prices The RP Data-Rismark Hedonic Australian Home Value index of capital city home prices rose by 0.1% in November in seasonally adjusted terms to be 3.5% lower than a year ago.  Home prices in regional markets (40% of homes by number) rose by 0.3% in seasonally adjusted terms in November to stand 2.5% lower over the year. Dwelling prices were strongest in Perth (up 0.5% in seasonally adjusted terms) followed by Canberra (up 0.4%) and Melbourne (up 0.2%). Dwelling prices were unchanged in Sydney but fell in Darwin (-0.9%), Brisbane (-0.7%), and Adelaide (-0.3%). Hobart prices fell by 0.4% in October (November data not yet available). Home prices are lower than a year ago across all capital cities. Prices fell most in Brisbane (down 7%), followed by Melbourne (down 5.6%), Adelaide (down 5%), Perth (down 3.9%), Darwin (down 3.7%), Canberra (down 1.6%) and Sydney (down 0.5%). November home prices aren’t available yet for Hobart. In the year to October, home prices in Hobart were down by 3%. Total returns on capital city residential property rose by 1.2% in the 11 months to November and were up 0.8% on a year earlier. Across capital cities house prices were down 4.3% on a year earlier with unit prices down just 1.1%. The average Australian house price was $541,835 and the average unit price was $457,553. The $84,282 gap in prices was the smallest since April 2006.
Private sector credit
 Private sector credit (lending) rose by 0.3% in November after a 0.2% rise in October. Annual credit growth held steady at 3.5%. Housing credit grew by 0.5% in November after a 0.4% rise in October. Housing credit is up 5.7% on a year ago – the weakest annual growth in records going back 34 years. Owner-occupier housing credit rose by 0.5% in November to stand 6% higher than a year ago. And investor housing finance lifted 0.4% in November to be up 5% over the year. Personal credit rose by 0.1% in November. Personal credit was down 1.1% over the year – equalling the biggest decline in two years.
Business credit was flat in November after a similar outcome in October. Business credit is 0.9% higher than a year ago, marking only the third annualised increase in 29 months.  What is the importance of the economic data? The RP Data-Rismark Hedonic Australian Home Value Index is based on Australia’s biggest property database, covering more than 312,000 sales during 2011. Unlike the ABS Index, which excludes terraces, semi-detached homes and apartments, the RP Data-Rismark Hedonic Index includes all properties. The monthly RP Data-Rismark Hedonic Index compares month-to-month index results. Quarterly results are measured comparing end months rather than averaging each month in the quarter. For example, the first quarter of 2011 index results compared the end of March index with the end of December index. Private sector credit figures are released by the Reserve Bank on the last working day of the month. Credit is separated into three categories – housing, other personal and business. Private sector credit is effectively the amount of loans outstanding in the economy. If growth in lending is strong then it suggests that credit from financial institutions is freely available, underlying demand for assets such as cars and houses is firm and that the price of credit (interest rates) is attractive. What are the implications for interest rates and investors? Despite a modest lift in home prices the Reserve Bank is still expected to cut rates in February. But in the absence of another significant flare-up of the European debt crisis, we don’t expect the Reserve Bank to keep on cutting rates in 2012. Real estate agents and retailers alike will cheer the result on home prices. If home prices start to move higher it will serve to accelerate demand for homes as well as flow-on items like furniture, carpets and curtains. Higher home prices will provide confidence to those who own or are paying off their homes. And stronger confidence potentially means higher spending on discretionary items.
 
 
 
</body></html>

cjames-5S2v74qSNK

Home prices up! But Aussies refuse to borrow

<html><body>
As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
The hotly debated question of whether Australian house prices are too high and must inevitably come crashing down to earth has been answered by Deakin University’s Phillip Dare, who says there are 10 fundamental reasons why the property market is safe from a crash. 
Writing for <a target="_blank" href="https://theconversation.edu.au/">The Conversation academic blog</a>, Dare, lecturer in property and real estate at Deakin University’s school of management and marketing, says the question is “not whether Australia has a housing price bubble, but what fundamentals are in place that might sustain our housing prices”.
Dare notes in particular the most extreme predictions of a 60% crash in property prices by <a target="_blank" href="https://www.propertyobserver.com.au/residential/us-economist-predicts-australian-housing-crash/2011081551170">US academic Harry Dent </a>labelling it a “gross exaggeration”.
According to Dare, the 10 reasons why the Australian property market is not destined to crash are:
1. We’re big and isolated
“Australia is a big country, without shared borders with neighbouring economic powerhouses – or economic basket cases that might impact our population bases or locational living choices.”
2. Australians stay put and in major urban areas
Whereas in Europe, workers can cross borders easily to seek work in other capital cities, reducing the demand for property in urban areas in their home countries, “[Australia’s] population flows remain largely static… We basically follow jobs, usually Victoria to Queensland and back in the other direction. We are similar in area to continental Europe and the United States, but with a population barely 10% of those geopolitical entities. The majority of Australians live within the major urban hubs of each state, with most living along the eastern seaboard.”
3. Our economy is strong is relative to the those of US and Europe
“Contrary to the economic woes being experienced by Europe and even the US, our economy is chugging along nicely, keeping us out of recession with a tight fiscal regime, low public debt and a central bank with a flexible monetary policy that concentrates on taming inflation and achieving low rates of unemployment. So it could be argued that compared to markets such as the UK, US and Ireland where prices have been in free-fall, Australian property prices may well look as if being overpriced simply because they have not receded in such precipitous levels,” says Dare.
4. Our banking system is strong and well regulated
“[Price] falls are inextricably linked to the catastrophic failures in the North Atlantic and European banking systems, while Australia has a robust banking system with strong prudential regulation. Thanks to this, we have not been burdened with a US-style sub-prime property disaster which figured so prominently in the 2008 global financial crisis,” Dare says.
5. A tax system that favours investors and owner-occupiers
According to Dare, among favourable tax rules in place for property investors are negative gearing concessions that allow interest payments to be written off against personal income and a 50% reduction in capital gains tax on property kept for at least one year. For owner-occupiers, profit earned on the sale of their principal place of residence are not taxed while the abolition of death duties decades ago means that “significant amounts of [property] value are transferred inter-generationally without attracting any tax”.
6. We are not building enough houses
Dare says stock levels are falling – though the likes of <a href="https://www.propertyobserver.com.au/residential/michael-matusik-dismisses-housing-undersupply-findings-as-spin/2011122152932">Michael Matusik would disagree</a>. “Not enough new housing stock is being built to sate demand (such as new household formations and immigration),” Dare says. In addition, due to land banking, there has been a controlled release of development land. “Major builders and developers have bought large tracts of development land and [are] holding for controlled release.”
7. Election strategies support house prices
Dare says political parties have supporting housing values as part of their election strategies with policy promises such as the first-home owner scheme. “Propping up house prices was strategically used by previous governments for electoral purposes.”
8. Easier for investors buy real estate
According to Dare, changes in foreign investment rules have sustained prices in some areas. In 2008 the Foreign Investment Review Board dropped its requirement that only 50% of new dwellings could be sold to foreign persons in an off-the-plan transaction. 
9. Continual spruiking of property 
“[There] is regular spruiking in the daily newspapers of get-rich fast with property seminars/schemes,” says Dare. 
10. It’s easier to borrow money 
Dare notes the weakening of loan-to-valuation ratios from 80% to 95% and 100%. “Banking deregulation has seen housing finance freed from the shackles and once onerous (and at times ridiculous) lending guidelines,” he says.
</body></html>

Ten fundamental reasons why prices won’t crash in 2013: Academics

<html><body>
When veteran Noosa real estate agent Peter Butt looks at the modest Sandpiper residential and retail block on the beachfront in <street><address>Hastings Street</address></street>, he becomes nostalgic about earlier days at the <state><place>Queensland</place></state> resort. 
Butt, co-principal of Richardson &amp; Wrench Noosa, first came to Noosa on holiday 33 years ago, staying in a cheap one-bedroom flat at the Sandpiper. He never returned home to the eastern suburbs of <city><place>Sydney</place></city>. 
“I looked at the emerald green sea for the first time and saw waves breaking at the point – I used to be a mad surfer – and said to myself, ‘My God, I’ve found the Garden of Eden’.” 
Butt didn’t stay in the cheapest accommodation in <street><address>Hastings Street</address></street>. That distinction belonged to the camping area and caravan park, known as The Woods. “You could stay in The Woods for $50 a week then,” he says. 
From a location viewpoint, The Woods was the best place to stay in town. It had a double waterfront with the ocean on one side and the river on the other. And you could dine out on a Betty’s Burger for a $1. 
Fast forward to the present. 
Even a street protest – surely a one-off for Noosa – failed to stop the bulldozing of The Woods in the ‘70s. And the old Sandpiper is about to be demolished.
<img src="/images/stories/sandpiper2.jpg"> 
From 2013, a <a href="https://www.rwnoosa.com.au/28609/">new Sandpiper</a> (pictured above) will occupy the prized site, comprising three luxury full-floor apartments and a boutique facing the street. Richardson &amp; Wrench <a href="https://www.propertyobserver.com.au/queensland/sale-of-%2414-million-apartments-as-tide-turns-for-better-in-noosa/2011072650927">sold the two lower units off the plan to one buyer in July</a> for $14 million. And the penthouse is for sale at $9.5 million – by far the most expensive property on its books.
 <img src="/images/stories/noosa2.jpg">
And this year, $50 will buy little more than a decent meal in <street><address>Hastings Street</address></street> but not even put a dent in your accommodation bill. The most expensive rent being collected by Richardson &amp; Wrench this Christmas is $19,500 a week for a<a href="https://www.rwnoosaholidays.com.au/noosa_accommodation_view.asp?holidayID=474" target="_blank"> four-bedroom beachfront house </a>(pictured above) in Belmore Terrace, Sunshine Beach. It’s an $8 milion to $10-million property.
Butt says that although each of the 260 holiday rentals on his books is let between December 23 and January 17, rents have been discounted this year. “And there are still some great deals either side of the Christmas period.” 
There goes the neighbourhood
When David Edwards, licensee of LJ Hooker Palm Beach, began to sell real estate in Palm Beach 25 years ago, he remembers a “thriving community where people lived full time. Along the commercial stretch of <street><address>Barrenjoey Road</address></street>, there was a butcher, barber, chemist and petrol station. 
“Now you have real estate agents, coffee shops and restaurants,” Edwards says with some regret. And the population has become much more transient. 
Despite the stratospheric rents paid for high-end <city><place>Palm Beach</place></city> properties, Edwards says that on the non-water side of <street><address>Barrenjoey Road</address></street> facing Pittwater, it is still possible to rent a place for $1,500 to $1,800 over Christmas. “But on the other side of the road, you can spend $13,000, $15,000 and $18,000 a week.” And for houses facing the ocean, the dollars just escalate.
 {yoogallery src=[images/stories/september16kalula]}
Kalua on <street><address>Ocean Road (pictured above) </address></street> holds the record for the top Christmas rent for <city><place>Palm Beach</place></city>, renting in past years for $38,000 to $45,000 a week to the likes of Nicole Kidman, James Murdoch and John Cleese. The plantation-style house, owned by businessman Ian Joye, is currently on LJ Hooker’s website for $40,000 a week. However, Edwards says the Joye family is actually staying there over Christmas, and he believes some rental may be involved over this period. 
For Christmas 2011, life is a little tougher in rental paradise. “Our top rental this year is $25,000,” says Edwards. “There are probably about 20 properties in the $25,000-plus category and we have secured rentals on less than a handful.” 
Average rents a week for <city><place>Palm Beach</place></city> this year are $6,000 to $7,000 – down from $8,000 to $9,000. It seems that both owners and tenants are being more careful with their money. 
“In previous years, the bookings were two weeks or longer,” says Edwards. “This year, one week seems to be the more favoured tenancy. 
“The owners are being more frugal, not travelling overseas as much and are using their residences at <city><place>Palm Beach</place></city>.” 
And at the top end, owners tend not to cut rents to meet the market. “These are wealthy clients who don’t need to lease,” Edwards emphasises. “Some say, ‘If I am not going to get a good rate, we’ll leave it empty or use it ourselves’.” 
Upmarket fibro
When letting agent and landlord Christine Lewis bought her fibro beach house 10 years ago, she set about to recreate the settings of her childhood holidays – albeit in a more upmarket way. 
Lewis, proprietor of <a href="https://www.lovemelovemydog.com.au/" target="_blank">www.lovemelovemydog.com.au</a> – a booking agency for pet-friendly beach houses and owner of a beachfront rental property – used to spend every Christmas from the mid-50s at her grandparents’ fibro cottage at Surfers Paradise. 
“My grandfather would pick me up from the station in his Ford Prefect [a model that hasn’t been made for 50 years].” Her grandparents have long died and their little house has been demolished “take make way for a flash development”. 
Although Lewis’s website lists 2,500 pet-friend properties throughout Australia, the heart of her business is unquestionably Culburra on the NSW south coast. Culburra properties on her books rent from $209 to $1,000 a night. And this Christmas, the most expensive house is renting for $7,000 a week.
<img src="/images/stories/lovedog.jpg">
Her own property, <a href="https://www.lovemelovemydog.com.au/rent/nsw/south-coast/culburra-beach/on-the-beach/">On the Beach</a>, is rented over Christmas for $4,500 a week. Not bad for a fibro house, even though it’s right on the beach, cost more than $1 million and has about everything that opens and closes – for dogs and humans. 
“It’s probably politically incorrect,” Lewis says. “But I am one of those 1950s babies who isn’t scared of fibro or bindis.” 
It seems that Culburra doesn’t attract the celebrities of the fame of Nicole Kidman or John Cleese. However a regular tenant is Dr Katrina Warren, the TV vet from Harry’s Practice. And in pet-friendly circles, that’s true celebrity. 
*Author’s note
Michael Laurence is a long-time observer of Australia’s beach culture, particularly at <city><place>Palm Beach</place></city>. He learned to ride a surfboard at Kiddies’ Corner on the northern end of the beach – across the road from the pricey  Kalua, stored his surfboard next door under Willeroon – the long demolished 1920s Ocean Road house then owned by the Forsyth family (owners of Dymocks bookshops), and once interviewed Billy Connolly as the comedian came in from the surf.  
</body></html>

mlaurence-vhAHaLZT8y

Agents look back on summers past with nostalgia for cheap beachfront property

<html><body>
When the Reserve Bank of Australia lowered the official cash rate by 25 basis points on December 6 it was very interesting to watch how the major banks tried to handle the RBA’s decision on Twitter – which I believe was poorly handled. Here are their tweets.
December 6
@ANZ _AU: “Hi there, our rates are under review – we will keep you posted. Thanks ^LG.” This was posted a further seven times.
@nab: “rates are under review.” This was posted a further eight times.
@CommBank: “Our rates are under review and we’re carefully considering the impact of the RBA’s announcement on all our products.” This was posted a further 11 times.
@Westpac: No tweets
December 7
@ANZ –AU: “Hi there, rates are still being reviewed. We’ll let you know once a decision has been made.” This was posted a further seven times.
@nab: one update
@CommBank: 18 more updates
@Westpac: “Our rates remain under review, we know this has big implications for your home loan &amp; savings, we’ll let you know as soon as we do.” One update
December 8
seven more updates then @anz_media: “ANZ cuts rates for mortgages and small business lending by 0.25%”
@nab: seven more updates then “We’ve just confirmed a 0.25% cut to the variable mortgage rate and business loan rates.
@CommBank: two more updates then “We are lowering our Standard Variable Home Interest Rates by 0.25% to 7.31% effective for new and existing customers from 19 Dec 2011.
@Westpac: “We’re happy to pass on the full RBA interest rate cut for home and business lending by 0.25%
The Treasurer Wayne Swan @SwannyDPM was busy tweeting to his followers.
“A great early Christmas present for ANZ customers today. Heat is now really on NAB, Westpac &amp; CBA to do the right thing by their customers.” Then “NAB also doing the right thing by their customers with full 25 point rate cut. Heat just gone up another notch on Westpac and CBA.” Followed by “Good news for CBA home loan customers this evening too. Westpac customers deserve their bank to do the right thing as well.” Finally, “CBA has done the right thing for its home loan customers, that just leaves Westpac out there facing a massive backlash from its customers. “
ANZ then announced that it will now review its rates on the second Friday of every month, which prompted me to write on my final blog for 2012. “ANZ shifts to monthly rates review where it is now set to sever the long-standing link between official interest rates set by the RBA and the rates customers pay on their mortgages. This decision questions the relevance of the RBA, if banks are to decide independently, what their cash rate will be. This has the potential to become ugly, and I see ‘bank bashing’ alive and well in 2012. On the one hand we will have bank advertising campaigns of those warm and fuzzy happy family moments and on the other, journalists and social media beating the living daylights out of their reputations. The latter will win hands down.”
<a target="_blank" href="https://www.propertyobserver.com.au/trends/real-estate-businesses-must-make-the-most-of-the-web-or-be-left-behind/2011102352031">Social media is now a huge voice</a> where one only has to look at the #VileKyle trending on Twitter last month where over 30,000 signed an online petition demanding he be dumped following his ugly spray at a journalist. Online polls went into meltdown. The result? Mazda, Telstra, Harvey Norman, Fantastic Furniture, Blackmores, Crazy John’s, Vodafone and Good Guys withdrew their sponsorship.
This was the very first social media online protest march Australia has ever seen before where it worked wonders and yes – I did sign the petition, too. Absolutely no doubt the major banks took notice too.
Twitter Statistics 2011 reveal 1 billion tweets posted per week, three years, two months and one day the time in between the first tweet and the billionth tweet, 177 million tweets sent on March 11, 2011, 456 tweets per second (TPS) when Michael Jackson died on June 25, 2009 (a record at the time) and 6,939 current TPS record, set four seconds after midnight in Japan on New Year’s Day.
Our big four banks are not performing well on Twitter – @CBA has 2,284 followers with 234 tweets, @Westpac 8,658 followers with 2,944 tweets, @ANZ 1,746 followers with 1,000 tweets and @nab 8,279 followers with 4,444 tweets.
So I was interested to see this week when I received a direct message from ANZ_AU – “Hi, this is automated but we’re here to help 9 – 5.30 pm Mon – Fri (AEST) in accordance with our Twitter service terms.”
Now that is a first so watch the other three follow suit as they battle to attract followers given their ability to attract followers thus far can only be described as very ordinary.
In Twitter speak they may well be trending to be different – time and tweets will tell. Once upon a time we heard “the dogs are barking” today, it’s the customers are tweeting and reputations are on the line – just ask Kyle Sandilands.
Robert Simeon is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real-estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
</body></html>

robertsimeon-hRNTwJyXkQ

Banks will have to hone their social skills in 2012

<html><body>
There was more than a frisson of excitement when British chef – and global television celebrity – Rick Stein announced in 2009 that he would be opening a seafood restaurant in Mollymook.
Local real estate agents and savvy investors in the laid-back coastal settlement were well aware of the celebrity chef’s track record in the UK where he’d transformed a Cornish fishing village into a magnet for wealthy Brits looking for that idyllic holiday home.
His colonisation of Padstow is so complete that locals have renamed the village “Padstein”, but the success of the Seafood Restaurant and his other ventures also boosted real estate prices. Every well-heeled Londoner wanted a cottage in Padstow.
Although he arrived on the NSW south coast with similar fanfare, promising to revive Mollymook’s gastronomic fortunes, opinion is divided about whether the urbane English chef has done anything to pep up the appetite for residential property on the coast.
Carmel Timmins from Bella Coast Property says that Stein’s arrival may have improved bookings at Bannisters, the boutique hotel with which the restaurant is associated, but has done nothing to bolster real estate prices in Mollymook.
“It would be great for Rick Stein to have worked his little magic down here and see the price of property go through the roof but it hasn’t happened,” she says.
“Everybody had impression that Rick Stein was going to change the world. They thought ‘Oh, Rick Stein is here so I’m going to get big money for my property’. But a good feed isn’t necessarily going to entice someone to spend a $1 million on a holiday house.”
Other agents strongly disagree, arguing that the “Stein effect” has turned Mollymook into an international gourmet destination. They say the fact that Stein and his Australian wife, Sarah, have bought a number of properties in Mollymook has definitely attracted other wealthy buyers, often from overseas.
Ben Pryde from Raine &amp; Horne Ulladulla says it is now a common sight to see people arriving from Sydney by private helicopter – something that would inconceivable a few years ago.
“A lot of wealthier people have been coming here since Rick Stein became involved,” he says. “Their helicopters fly into Milton and there’s a courtesy car waiting to pick them up. They’re either here just for the day or staying overnight at Bannisters and then flying back next day. That happens regularly.”
Pryde says that the launch of Bannisters with Stein’s much-publicised involvement has certainly given Mollymook an international profile, but that the impact on local real estate prices has, for a number of obvious reasons, been far less spectacular than Padstow in the 1980s and 1990s.
“I think it will take a longer than it did in the UK. I know prices skyrocketed over there [in Padstow]. It will take place but in Mollymook we’re still battling the state of the economy at the moment and people are a little more cautious,” he says.
“But the market is still bubbling along down here. There’s so much doom and gloom in Sydney, but we’re not experiencing that to the same degree. We’re getting quite a lot of sales away.”
Kevin Cooper from Ray White Surfside Properties is another Stein supporter, saying that the presence of the celebrity chef has helped bolster the sale of property in the $1 million-plus range by attracting a new wave of international clients.
The agency recently sold a house on Beach Road, Mollymook for just over $1 million. The buyers, from Singapore, were actually staying at Rick Stein’s house while they looked at property in the area – the couple is now looking for second investment property to buy.
“I believe that Rick Stein owning that restaurant has assisted me in selling that particular property,” he says. “Mollymook is a funny place. You’ve only got to get a couple of people of well known stature purchasing on the beach and that sets a bench mark.”
But Cooper concedes that people buying a more modest property in Mollymook or nearby Milton are probably unaffected by the presence of such a foodie celebrity in their midst.
“Let’s face it, the majority of people can’t afford to eat there,” he said. “But I do believe that Rick Stein being here has an impact on the higher end and it certainly hasn’t hurt the area. I certainly think that there’ll be some positives in the future when market trends start to change.”
No amount of stardust can camouflage the fact that real estate prices along the south coast have taken a pasting over the past two years. The median price for a house in Mollymook is now $410,000. Demand for property continues to be weak – severely impacting the re-sale value of glamourous, waterfront properties.
Overall, agents blame the impact of increased land tax and the continuing uncertainty about the state government’s coastal management plan for Shoalhaven for depressing property prices on the south coast, rather than worries about the global economy.
Ben Pryde says that land tax has particularly impacted on retirees and people who have inherited family-owned property in and around Mollymook. This has been compounded by uncertainly about the impact of the coastal management plan.
“For a lot of people entering retirement age the land tax suddenly became too much to bear, so they had to sell,” he says. “As far as the coastal management plan, there was a big fear campaign in the media which didn’t help.”
The coastal management plan seeks to protect coastal communities from storm and flood damage associated with global warming and an associated increase in ocean levels – predicted to be as much as 40 centimetres by 2050.
Many people are naturally concerned that the new regulations will prevent them from redeveloping attractive waterfront sites, but a spokesman for Shoalhaven City Council says these fears are largely unfounded.
“In the main these new design regulations can easily be incorporated into a DA,” he says. “As it stands only a handful of properties will not be eligible for redevelopment.”
</body></html>

cknowlton-QnEa6ntUYP

Mollymook keeps its fingers crossed for a taste of the 'Rick Stein effect' on property prices

<html><body>
As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
The massive wave of baby boomers nearing retirement and a sharp fall coastal property values make an often overlooked tax and investment strategy much more appealing. 
This innovative strategy involves typically middle-aged couples buying their next investment property based on two fundamental criteria: its potential returns and its potential as a future retirement home. 
The new property is treated strictly as a negatively geared investment property for up to 20 years or so until the owners are ready to sell their existing family home and move into it. 
Depending upon the circumstances, the breaks from income tax and capital gains tax can be outstanding – and, perhaps, unexpected. 
Tax adviser Gordon Cooper is convinced that investing in the property in your own name is likely to produce far superior after-tax benefits than pursuing an identical strategy through a self-managed super fund. 
Cooper, the principal of Cooper and Co in Sydney, believes the strategy of buying a future retirement home – initially as a geared investment – is extremely timely given the rapid ageing of the population. 
Louis Christopher, managing director of property adviser and forecaster SQM Research, says the fall in the prices of coastal houses – which may be suitable for future retirement homes – could create good buying opportunities. 
Christopher points out, for instance, that Gold Coast prices are down by 15% from a high in 2008 and prices on the NSW Central Coast are down by 12% from a peak in June last year. 
“It is probably time to research these properties,” he says, “but their prices could fall a bit more.” 
These are the four steps involved in this strategy: 
1. Borrow up to entire purchase price
Cooper says borrowers following the strategy would typically take an interest-only loan to finance the property, using their existing family home as loan security. This will help maximise their tax benefits. 
2. Claim negative-gearing tax breaks
The annual deductible shortfall between the rent and the costs of interest on the loan, maintenance, council and water rates, and insurance could eliminate much of the tax on your salary. As Cooper emphasises, salaries are often at their highest in the last decade before retirement, making the negatively gearing tax breaks highly rewarding. 
3. Minimise CGT
When you ultimately make the property your permanent home, it will gain the CGT-exempt status of your main residence. However given the property will not be your home for some years, you are likely to face a CGT bill upon its eventual sale. 
Fortunately, there is a smart way to minimise that CGT liability. 
Say you owned the property for five years before moving in and making it your home for another 15 years. Cooper explains that you would be liable for CGT on a quarter of the assessable capital gain. 
But now Cooper adds a twist that may surprise many property owners. 
“In calculating your CGT liability [upon the property’s eventual sale], you can subtract a proportion of the non-deductible expenses,” he says. 
You would have incurred these non-deductible expenses after the property ceased being used as an investment and had become your home. And such expenses would include council rates and interest on any outstanding mortgage. 
Cooper says that after taking into account these non-deductible expenses, you might actually end up with a capital loss.
4. Consider the SMSF alternative
Some investors arrange for their SMSF to buy their future retirement homes as geared investment properties as an alternative to gearing the property in their own names. 
The apparent attractions of this SMSF strategy are two-fold. First, your super fund is likely to have enough money to pay the deposit or first instalment on the property. Second, you could arrange for your fund to eventually transfer the property into your name as an in-specie (non-cash) pension payment. 
Your SMSF would not be liable for CGT upon the transfer of the property into your name provided: 
<ul>
<li>The property was backing the payment of a superannuation pension. (Fund assets supporting a pension are exempt from CGT and income tax.) </li>
</ul>
<ul>
<li>The transfer of the property into your name as a pension payment did not result in the full pension account balance being paid out. (Strictly speaking, the benefit is treated as a partial commutation to a lump sum.) </li>
</ul>
However, Cooper is convinced that high-income earners in particular would gain higher after-tax returns from negatively gearing the property in their own names rather than gearing through a SMSF. This is despite the fact that the property will not be subject to CGT if eventually transferred into your name as a non-cash pension payment. 
“I think it is very hard to see how the maths can work to show it is an advantage to gear through your SMSF rather than in your own name,” Cooper emphasises. 
For more on self-managed super funds,<a target="_blank" href="http://propertyobserver.com.au/ebooks/16-questions-self-managed-super-fund-trustees-should-ask-before-investing-in-property"> download our free eBook</a>.
 
 
</body></html>

Latest Expert Insights

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

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

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

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News