Sydney developer&nbsp;<a href="https://www.apartments.com.au/developers/central-element">Central Element</a>&nbsp;is doubling down in Drummoyne, lodging plans for a boutique apartment development on St Georges Crescent, only one-kilometre down the road from its first Drummoyne development, Bianca.

The new project at 15A-21 St Georges Crescent,&nbsp;a&nbsp;1,701sqm north-facing site overlooking Iron Cove, will have 45 apartmnts across 10 levels. Eight of the units will be dedicated to affordable housing.

The site sits within walking distance of Drummoyne Village, Birkenhead Point, ferry services and the Bay Run, and offers harbour views towards the Sydney Harbour Bridge and CBD skyline.

Designed by MHN Design Union, the development will deliver a mix of one, two and three-bedroom apartments, alongside resident amenity including a gym, landscaped communal open space and three levels of basement parking.

The project has been lodged under the NSW Government's Low and Mid-Rise Housing reforms, with Drummoyne Village identified as a town centre capable of accommodating additional housing supply.

Central Element acquired the site earlier this year as part of its continued expansion across Sydney's eastern suburbs, lower north shore and inner west.

The developer's current pipeline includes luxury apartment projects Pearl Bondi and a separate development on Lamrock Avenue in Bondi, a residential project in Barry Street, Neutral Bay, and a mixed-use seniors living community in Greenwich.

Central Element Managing Director Nathan Chivas said the project would address a shortage of new owner-occupier housing opportunities in Drummoyne.

"While we're seeing a significant shift across Canada Bay as major infrastructure investment, population growth and planning reform drive a new chapter for the region, in suburbs like Drummoyne there remains a genuine shortage of new boutique luxury housing opportunities for owner occupiers," Chivas said.

"Sites of this nature are increasingly difficult to secure, particularly those that combine a north-facing aspect with direct water outlook. Our St Georges Crescent project responds directly to the market demand, offering a level of exclusivity, outlook and lifestyle in the highly sought after suburb."

The development application has been lodged with the City of Canada Bay Council, with the project expected to launch to market in early 2027.

&nbsp;

Joel Robinson

Central Element seeks second Drummoyne apartment development

The NSW Government has unveiled plans that could deliver around 1,300 new homes across Nowra and Kiama, continuing its push to unlock housing in well-located regional centres along the South Coast.

The proposals, now on public exhibition, would pave the way for around 830 homes in Nowra and a further 450 homes in Kiama, while also introducing affordable housing requirements and increased building heights in key locations.

The larger of the two proposals is centred on Nowra, where the NSW Government is seeking to rezone land within the Mandalay and Riverfront precincts.

The Mandalay sub-precinct, located close to Shoalhaven Memorial Hospital, Nowra Library and the city's aquatic centre, could accommodate around 530 new homes. Around 30 per cent of housing delivered on Homes NSW-owned land would be dedicated to social and affordable housing, equating to roughly 100 homes. Building heights would increase from the current two-storey limit to between three and six storeys.

A separate rezoning proposal for the Nowra Riverfront Precinct would unlock a further 377 homes while creating stronger connections between the Shoalhaven River and the CBD. The plans include building heights ranging from five to 12 storeys, floor space ratios of up to 2:1 and a requirement for two per cent affordable housing.

Together, the two proposals would deliver more than 900 homes across the broader Nowra area, reinforcing the city's role as one of regional NSW's key growth centres.

The housing push builds on previous infrastructure commitments in the Shoalhaven, including government funding aimed at supporting thousands of future homes in West Nowra through upgrades to water and wastewater infrastructure.

Further north, the NSW Government is also progressing plans for the former Kiama Depot site, a two-hectare parcel near Kiama's town centre.

The rezoning proposal would transform the former industrial site into a residential community capable of delivering up to 450 homes. Buildings would range between six and eight storeys, with at least 10 per cent of homes allocated as affordable housing. The proposal also includes approximately 600 parking spaces and improved walking and cycling connections.

Planning Minister Paul Scully said the proposals are designed to increase housing supply in locations close to jobs, transport and services.

"For too long, families have struggled to find somewhere to live, and activating underutilised sites allows us to deliver the new homes these families need," Scully said.

"The Minns Labor Government is getting on with the job of unlocking well-located sites close to transport, jobs, and town centres and building the homes our communities need.

"These rezonings are about removing barriers to housing delivery and making sure land is put to better use so more people can find a place to call home within the communities they choose."

The latest rezonings form part of the Minns Government's broader strategy to accelerate housing delivery across NSW, particularly in established centres where existing infrastructure can support additional population growth.

Community consultation on the proposals is now underway, with feedback set to inform the final planning controls before the rezonings are determined.

Around 1,300 new homes earmarked for Nowra and Kiama as NSW Government pushes housing supply

<a href="https://www.apartments.com.au/developers/mrcb">MRCB International</a> has commenced construction on its latest Gold Coast apartment development, Maris, on the site of the former Sundale Motel in Southport.

The start of construction by <a href="https://www.apartments.com.au/builders/binah-constructions">Binah</a> follows an exceptionally strong sales campaign, with more than 90 per cent of apartments sold since launch. Every purchaser has been local, an&nbsp;indicator of confidence in both the development and Southport's evolution into a thriving CBD.

<a href="https://www.apartments.com.au/new-apartments/maris-southport-20-queen-street-southport-qld-4215">Maris</a> will deliver 192 residences across 20 levels. The project forms part of MRCB's Australian and New Zealand development pipeline now exceeding $1.6 billion in gross development value, alongside a growing portfolio of projects globally.

[smartcode_project:default project_id=134403 project_image_fid=350663]

The company also commenced construction on its $600 million 26 Vista residences in Surfers Paradise last year, following strong sales momentum, with over 70 per cent of residences sold.

Maris has been designed to meet evolving buyer demand, offering architecturally designed layouts suited to long-term liveability. The approach reflects a growing preference for quality and adaptability among Gold Coast buyers.

Positioned next to the Broadwater in the <a href="https://www.apartments.com.au/developments/southport-qld-4215">Southport</a> CBD, Maris sits directly opposite the Broadwater Parklands light rail station and within easy reach of retail, dining and lifestyle precincts, placing residents at the centre of one of the Gold Coast's most connected and rapidly maturing urban centres.

[smartcode_project:default project_id=134403 project_image_fid=372756]

Maris will offer a full suite of resort-style residential amenities, including a pool, gym and sauna, along with a rooftop level featuring decks, lounges and dining and yoga areas that command sweeping views across the Broadwater and out to the ocean.

Binah, a New South Wales headquartered company co-founded by Amen Zoabi and Khalil Hafza in 2008, has expressed its excitement at establishing its first partnership with MRCB.

Binah's Managing Director Khalil Hafza said partnering with MRCB on Maris is a significant moment for Binah.

"MRCB's financial strength and a track record that speaks for itself give this project a solid foundation, and this marks the beginning of what will be a long and successful relationship.

"With the right people, systems and partnerships behind it, Maris is set to become a significant addition to the Gold Coast's premium residential market."

[smartcode_project:default project_id=134403 project_image_fid=350664]

MRCB International CEO Ravi Krishnan said the project's progression to construction reflects both sustained demand and tightening conditions across the apartment sector, as well as MRCB's continued confidence in the Gold Coast market.

"Commencing construction at Maris is a significant step and reflects the depth of demand for quality apartments in well-connected urban locations," said Krishnan.

"Across Southeast Queensland, new apartment supply remains constrained, particularly in established precincts with infrastructure and amenity already in place. Projects like Maris are increasingly critical in meeting that demand, especially on the Gold Coast and in the city's CBD precinct."

[smartcode_project:default project_id=134403 project_image_fid=372761]

Krishnan said Southport's ongoing transformation, supported by infrastructure investment and long-term planning, was underpinning renewed buyer confidence.

"We're seeing a clear shift back towards well-located urban centres where infrastructure, connectivity and amenity are already established," said Mr Krishnan. "Southport is evolving into a more mature CBD environment, and that is being reflected in buyer behaviour."

Construction at Maris is anticipated to be completed in 2029.

[smartcode_project_cta:default project_id=134403]

Construction commences on MRCB’s $200m Maris Residences in Southport

Moonee Valley Park’s latest residential release <a href="https://www.apartments.com.au/new-apartments/the-eveline-at-moonee-valley-park-moonee-ponds-100-thomas-street-moonee-ponds-vic-3039">The Eveline</a>, has achieved a new benchmark for off-the-plan apartment sales in the suburb, with the sale of The Alexandra penthouse selling for $5,435,000.

Positioned on the top floor of a 16-level residential building, the three-bedroom, three and-a-half-bathroom penthouse features uninterrupted city skyline views across the future Valley racetrack.&nbsp;

The landmark sale comes as momentum at the precinct continues to build, with the Moonee Valley Racing Club progressing works on its new racetrack ahead of the 2027 Cox Plate. The transformative development will see MVRC reimagine the beloved Valley as a vibrant year-round entertainment and lifestyle destination.

Alongside a world-class racing experience, the historic precinct will be activated with events, hospitality and public green spaces designed to attract broader audiences, while breathing new life into one of Melbourne’s most iconic destinations.&nbsp;

[smartcode_project:default project_id=142519 project_image_fid=372786]

Development partners <a href="https://www.apartments.com.au/developers/hamton">Hamton Property Group</a> and Hostplus have delivered five residential stages over the past four years, the most recent in November 2025 with Trackside House and Stonepine House. The flourishing community is now home to almost 500 families.&nbsp;

The latest residential release, The Eveline, has recorded strong demand since launching publicly last July, securing more than $200 million in sales to date, satisfying its pre sales hurdle for construction to commence.&nbsp;

Hamton Founder and Executive Chairman, Paul Hameister OAM said, the sales&nbsp;team have been overwhelmed by demand for these unique homes in this unique project.

"Buyers continue to be predominantly hyperlocal and attracted by the 40 hectare botanic masterplan in Melbourne’s inner north west," Hameister said.

[smartcode_project:default project_id=142519 project_image_fid=372788]

Hamton’s Sales and Marketing Director Fergus Humphries said the team has achieved more than 70 sales over the past eight weeks, including the penthouse purchase by a local buyer.

"These results reinforce that, even in a challenging market, purchasers continue to be drawn to quality projects that offer more than just a home, they offer a lifestyle.”

Designed by Cera Stribley, the penthouse has been created with entertaining in mind, spanning close to 400 sqm of indoor and outdoor living space, including multiple terraces designed to capture sweeping views across Melbourne’s skyline, the new Valley racecourse and sunset views over Moonee Ponds.

Moonee Valley Park is one of Melbourne’s largest urban renewal projects, transforming the iconic racecourse site into a vibrant mixed-use neighbourhood integrating homes, parklands, retail, racing and community amenities.

[smartcode_project_cta:default project_id=142519]

Moonee Valley Park penthouse sets suburb record as sales surge clears construction benchmark

A company linked to one of Australia's largest privately owned cattle businesses has lodged plans for a new residential tower in <a href="https://www.apartments.com.au/developments/newstead-qld-4006">Newstead</a>, continuing the rapid transformation of one of Brisbane's most sought-after, inner-city precincts.

Bottletree Holdings, an entity associated with Stanbroke Managing Director Brendan Menegazzo, has submitted a development application for a 28-storey mixed-use tower at <a href="https://www.apartments.com.au/new-apartments/9-longland-street-newstead-qld-4006">9 Longland Street</a>, a site that made headlines last year when it changed hands in an off-market transaction that reportedly set a benchmark land rate for the suburb.

The proposal would replace an existing two-storey commercial building on the 1,510 sqm corner site with a Bureau Proberts-designed tower comprising 76 apartments, ground-floor retail, office space and a suite of resident wellness amenities.

<img alt="9 Longland" data-entity-type="file" data-entity-uuid="c710a836-568e-4382-bc91-3c34b8e80a8b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.41.45%E2%80%AFAM.png?VersionId=Vy.mQWBc7GA_a.vIBdxKqRC9XGjWalo2" />

According to planning documents lodged with Brisbane City Council, the development would comprise a mix of 36 two-bedroom apartments, 24 three-bedroom apartments and 16 four-bedroom residences, positioning the project firmly at the premium end of the market. The apartments would sit above a podium containing retail and commercial space, with three levels of communal recreation facilities spread throughout the tower. The proposal also includes 198 car spaces and 95 bicycle spaces.

Bureau Proberts has drawn heavily on Newstead's industrial heritage in developing the architectural response.

"Occupying a prominent corner in the heart of Newstead, the proposal draws from the area's industrial lineage of robust brick warehouses to deliver a distinctly contemporary response," the architects said in the design statement.

"It is conceived as a subtropical sanctuary and elevated private retreat embedded within one of Brisbane's most vibrant lifestyle precincts."

The design seeks to reinterpret the traditional Queensland vernacular through wraparound verandahs, deep shading elements and permeable facades that respond to Brisbane's subtropical climate.

<img alt="9 Longland" data-entity-type="file" data-entity-uuid="25524f59-395c-4825-8fad-9b639822fa8a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.42.09%E2%80%AFAM.png?VersionId=dlWlbpCc_g3Y6yTLGqRVKvGJvO2ubMJ3" />

Planning documents describe the building as embodying the principles of "buildings that breathe", a design approach increasingly favoured in Brisbane's apartment market as developers focus on natural ventilation and outdoor living spaces.

The tower itself would rise above a heavily landscaped podium designed to reference the woolstore architecture that helped define Newstead and neighbouring Teneriffe for generations. At ground level, fine-grain retail tenancies would activate Longland Street, Wyandra Street and the existing Wyatt Street laneway, further extending the pedestrian network that has become a hallmark of the Gasworks precinct.

The application notes that more than 54 per cent of the site would be dedicated to landscaping and deep planting, while approximately 1,750 sqm of communal recreation space would be delivered across multiple levels.

<img alt="Planning" data-entity-type="file" data-entity-uuid="fed3b189-1054-4b68-af5f-b0befc4a66e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.42.19%E2%80%AFAM.png?VersionId=gqeE3cjsbnLAfeTUKA1HtPZfqDs6S4Xa" />

Bottletree paid $22 million for the 1,510 sqm development site, equating to more than $14,500 per sqm, a reflection of the strong demand for development opportunities in Newstead. The suburb continues to attract both developers and buyers, underpinned by the ongoing evolution of the Gasworks and Teneriffe precincts into some of Brisbane's most sought-after lifestyle destinations.

Brisbane City Council's Sustainable Growth Strategy and Inner City Strategy both identify Newstead as a priority growth precinct capable of accommodating additional housing density due to its proximity to employment hubs, public transport and lifestyle infrastructure.

The proposed tower joins a growing pipeline of high-end apartment developments in the suburb. Fortis recently launched <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a>, a 65-apartment owner-occupier-focused development on Kyabra Street, while Consolidated Properties Group is preparing to launch <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a 227-apartment waterfront project on Skyring Terrace.

Meanwhile, builder-developer BPG is planning its own Newstead project on Maud Street, comprising just over 100 apartments and more than 1,380 sqm of dedicated wellness and resident amenity spaces, further highlighting the shift towards lifestyle-driven apartment developments in Brisbane's inner-city market.

Newstead apartment boom continues with Longland Street tower plans

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?

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

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When interest rates go up, most homeowners react the same way - they take a big gulp! Conversely, when interest rates drop, these same people let out a big cheer.

Now, what about most <a href="/guides/how-to-ensure-financial-return-on-your-property-investment-in-15-simple-steps">property investors</a>?  How do they react? You’re right, they react about the same.  Maybe they take a bigger gulp or let out a bigger cheer, but the reaction is generally the same. You see, for the property investor, the results are multiplied.  That can be good news or bad news.  If rates go up, then the “pain” is multiplied; hence a bigger gulp.  If rates go down, then the “joy” is multiplied, hence a bigger cheer.

What I’d like to do today is put some numbers to this “pain” and/or “joy.”  Take a look at how interest rates affect a property investor’s cash flow.

Property investor baseline situation

Let’s say our property investor has the following situation:

<ul>
<li>5 rental properties</li>
	<li>$200,000 mortgage on each property</li>
	<li>Each property valued at say $350,000</li>
	<li>7% variable interest rate</li>
	<li>Interest-only loan</li>
	<li>$350 per week rental income</li>
</ul>
This should be enough information for us to make some cash flow calculations.

First, let’s calculate the weekly interest on these loans.

$200,000 X .07 = $14,000 / year

$14,000 / year X 1 year / 52 weeks = $269 / week per property

$269 / week X 5 properties = $1,345 / week

Now, let’s look at the rental margin.

$350 – $269 = $81 / week

$81 / week X 5 properties = $405

So, our investor has $405 per week left over after paying interest to the bank. Let’s estimate the other holding costs for each property.

Insurance, say $1,000 per year = $19 / week.

Property management = 10% of rent  = $350 X .10 = $35 / week

Taxes = $1,500 per year = $29 / week

Maintenance = allow 5% of rent = $350 X .05 = $18 / week

Now tally up all extra costs:

$19 + $35 + $29 +$18 = $101 per week

$101 / week X 5 properties = $505 / week

So, based on these estimates, our property investor is out of pocket each week; to the tune of $405 – $505 = $100 / week.

Not exciting.

Now, let’s run the numbers for two new cases. Let’s just assume a 0.5% change either way.

CASE 1:  <a href="/guides/how-australia-s-interest-rate-cuts-could-impact-first-home-buyers">INTEREST RATE</a> RISE

If interest rates rise by 1/2 a percent (0.5%) then our property investor is in for some “belt-tightening.”

Weekly interest goes up to $1,442; that’s a $97 increase.

Assuming all the other numbers are the same, our property investor has just copped another $97 dollars in the negative each week. The cash flow has gone from negative $100 to negative $197.

Not exciting.

CASE 2: INTEREST RATE DROP

What if interest rates drop by a 1/2 percent? Let's say an interest rate of 6.5%.

Now our property investor will get some relief. The new weekly interest payment drops to $1,250 for the 5 properties. That’s a savings of $95 each week.

Again, assuming all the other numbers are the same, our property investor is now in a much better financial position. The shortfall each week is only $5.

Margin, Margin, Margin

Have you ever heard about the famous answer to the question, “What are the three most important aspects of property investment?" Remember the humorous answer, "<a href="/expert-insights/buying/do-you-know-the-difference-between-cheap-and-affordable-property">Location, Location, Location</a>"? Well, I’d like to follow that up with another question, “What are the three most important aspects of property investment finance?

And, my answer is, “Margin, Margin, Margin.”

I feel the property investor should factor in a safety margin to guard against interest rate rises. This can be in the form of fixing the rate low. Or it can be getting rents sufficiently high. Or reducing the debt owed. Or... (your creative idea goes here!)

As you can see from the numbers in this article, interest rates have a significant impact on <a href="/expert-insights/buying/keeping-sane-and-moving-forward-a-covid-19-odyssey">cash-flow</a>.  As property investors, we need to make sure we can survive the ebb and flow of interest rate tidal changes.

What safeguards do you have in place to mitigate the impact of an interest rate rise?
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jieyee_46282

How to navigate interest rates as a property investor

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The last few months have been a rollercoaster, with the travel/short term accommodation industries being one of the hardest hit in the current pandemic we find ourselves in. However we are true believers in that the travel industry is a resilient industry. We have adapted. We’ll figure out what adaptations we need in order to travel and host again. The survivors are the brands and companies that can adapt and can maintain their brand integrity. 

Businesses in the short term rental industry relied on domestic and international travellers from tourists to people travelling for business. Booking platforms such as Airbnb &amp; booking.com are one of the main sources for these types of bookings, and then for hundreds of thousands of dollars worth of cancellations coming in over a matter of 48 hours was heartbreaking for any rental agent. Businesses have to quickly put a new plan in place with how they were going to tackle this crisis without allowing the businesses to go under. To keep some bookings in the pipeline a lot of agents introduced a Covid-10 cancellation policy for guests who couldn’t travel due to the pandemic, meaning that guests could receive a credit voucher to rebook their holiday for future dates.

<a href="/news/airbnb-plans-to-help-house-100000-covid-19-responders">AirBnB style management</a> companies have had to totally flip their business module and offer their short term rentals for mid-long term residential rentals and switching to use search engine sites such as Domain &amp; Real Estate.com to secure 3-6 months rentals to get them through the rocky period and to keep a regular income coming in their homeowners.

Market updates:

Industry experts have seen the higher end of the rental market still standing strong, whereas the lower end has become very volatile, there are a lot of properties on the market right now, meaning that the market is competitive and causes rental prices to fall.

Executive rental agents stand apart from the traditional real estate agent with their service, which is very attractive to homeowners and tenants, with everyone feeling very uncertain about the property market right now. Also, meaning that as soon as the industry picks up again, they have the opportunity to flip their properties back onto short term rentals and optimise on the rates where the demand is highest and to maximise the return for our owners.

Using this downtime to engage with the audience:

<ul>
<li>Agents have been using this time to reconnect with their audience and find out exactly that the future holds for short term rentals.</li>
	<li>Engage and inspire all audiences with travel inspiration through social media platforms, and get them excited to travel again.</li>
	<li>Educate travel partners about their portfolio and the services.</li>
	<li>
<a href="/expert-insights/buying/keeping-sane-and-moving-forward-a-covid-19-odyssey">Guiding homeowners on preparing the properties</a>, hosting Airbnb Masterclasses, regular Zoom meetings to update them on the current market.</li>
	<li>Supporting local businesses including some of their own homeowners and their businesses.  We believe that small businesses should stand together and support other small businesses.</li>
</ul>
Interactions with our clients and finding out which destinations they will head to first to get an idea on travel patterns, different shifts in terms of behavioural patterns so we can be ahead of the game as soon as travel is allowed again.

What we expect is in store for the short term <a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">rental industry</a>:

People will travel less frequently, but maybe for longer stretches of time. And maybe their preference will be to travel with friends or family that they’re close to, meaning that big houses will be in demand.

Everyone will probably gravitate towards brands they know and trust when booking their private accommodation and opting for holiday rentals over hotels with the benefit of being more isolated, potentially, or being able to control the environment a little bit more carefully. 

Guests will be looking for reassurances with home standards and housekeeping standards, potentially even externally certified cleaning needed to be provided.

That we will all appreciate the <a href="/expert-insights/8-of-nsws-top-luxury-apartments">luxury</a> and freedom to enjoy life, and the simple pleasures such as travel.
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Urban Door - Our response to COVID-19 - Short term rental market

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In the twelve or so months leading up to the 2019 federal election, <a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">real estate businesses</a> at various intervals exercised conservatism and implemented change. Whether cost-effective operating models, hyper-productive systems or almost any structure that leveraged economies of scale, if it was available, we saw it in real estate during 2018 and 2019.

Then the market kicked. 

Confidence returned despite no material changes to any economic drivers and people were transacting with property like the toilet paper panic buyers of the first <a href="/expert-insights/buying/covid-19-a-little-bit-of-positivity-goes-a-long-way">stages of COVID-19</a>.

With that electric spark in the market, conservatism and self-disruption were shelved by many. But now we face yet another challenge, not only in real estate but across global markets in virtually every industry, bar toilet paper, packaged food and hand sanitiser. 

So what’s the forecasted impact COVID-19 will have on the property market? 

Some media outlets have been very bold to suggest a 30 percent drop in property prices is coming. However, most people would strongly disagree. I have yet to find the person with the magic crystal ball who can tell us our future, which forces us to answer this question with the following, “for real estate agencies…it’s irrelevant.”

What do I mean by this? Whether the market craters by 30 percent or 20 percent or 10 percent or not at all, it really doesn’t matter. What does matter is an ever-evolving and completely adaptive operating model? This is what 2018 and the bulk of 2019 taught us and this is what COVID 19 has reiterated.

Social distancing, fear, hygiene and government intervention are just some of our new variables but we can only control what we can control. When the government pushed pause on public inspections and auctions, many in the <a href="/news/around-the-industry-in-80-seconds">industry</a> thought the sky was falling. 

However, as we now start to regain some basic social liberties, it’s very easy to say' "let’s just go back to doing what we were doing beforehand". For those that are wrapping up homeschooling, the common question being asked of Grade 1 and 2 students is “what are you going to continue doing even when homeschooling ends?”. This is the exact same question, we need to ask ourselves.

Real estate businesses must be able to operate remotely from an operational and staffing perspective. If an agent has a phone and a tablet, they should be able to do what needs to be done in any imposed form of isolation. The days of paper ended long ago. Never fear, if your business isn’t in a position to operate remotely, it’s not all doom and gloom, every single supplier to the industry has a cloud-based solution. If you needed a reason to finally adapt to the latest tech, COVID-19 is as good a catalyst as any.

The real estate industry has typically feared change, however, if we alter our perspective and look at this as an opportunity, the process becomes markedly easier. That is not a spin on words, it is fact.

Some businesses will be further along the curve than others but preparing for a downturn of any shape, size or kind are the same parameters we all have. Both operational productivity improvements and <a href="/news/the-cost-efficiency-of-mid-rise-timber-structures">cost-efficiency</a> can be achieved by utilising available technology and leveraging economies of scale. 

Everyone has the same opportunity to utilise tech but not all have scale. You can’t fake scale, so if you don’t have it, you need to find it. It’s as simple as that. Joining forces, outsourcing, creating partnerships and joint ventures are the most common ways to create scale.

Is this the COVID-19 business checklist for a safe and happy return to better trading? No.

These are a few factors which all business operators, irrespective of trading conditions, should be considering in order to have an all-weather business.
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Why the real estate industry must replace fear with opportunity during the COVID-19 crisis

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There is not a single person or business that has not been affected by the widespread COVID-19 pandemic. From the forced closures across the fitness and hospitality industry, every Australian has been impacted in some way, whether physically, mentally, or economically. The wider property industry is no exception.

During this tough period, we are witness to never-before-seen action taken by developers nationwide, in order to adapt to the current circumstances. From virtual display suite tours to one-on-one appointments with purchasers to maintain social distancing, there is no doubt the industry has seen a slow down in purchaser engagement. 

Following the Federal Government’s commendable actions in providing an economic stimulus package of up to  $320 billion to support households and businesses, it is imperative that they also look to aid the property and construction industries. In Victoria alone, this sector is responsible for approximately <a href="https://www.parliament.vic.gov.au/publications/research-papers/download/36-research-papers/13853-victorian-economic-snapshot">8.7 percent of Victoria’s state employment</a>. By introducing incentives for off-the-plan purchasing, removing stamp duty costs or introducing rebates akin to the First Home Owner Grant for local purchasers, there opens the opportunity to help stimulate the industry and more broadly, the country’s economy. Looking specifically at Victoria, acknowledging Melbourne’s status as an international city that relies heavily on migration as a <a href="/news/melbournes-revised-transport-strategy-2030-aims-to-deliver-870-billion-boost-to-economy">positive economic driver</a>, it would be within reason to consider relaxing FIRB requirements for foreign buyers to purchase property and access to Australian home loans.

Though international travel is currently subject to official government bans, there is no doubt that once the time comes for our borders to re-open, there will be many hoping to take advantage of it — a result of Australia’s comprehensive and considered response to controlling the pandemic, as well as low-interest rates, high quality of life and stringent building regulations.

There should be legislative incentives conceived now to generate sales, if not pique interest with those whose cash is <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">ready to invest</a>. Continuing to allow construction sites to remain open whilst adhering to social distancing regulations has enabled the industry to ensure hundreds of thousands of workers stay employed and afforded a stable income. This needs to continue. 

While there is certainly a long road ahead, economic survival beyond <a href="/expert-insights/buying/covid-19-a-little-bit-of-positivity-goes-a-long-way">COVID-19</a> must ensure the property industry continues in a favourable environment for local and international investments once again. Of course, our recovering economy is reliant on countless factors beyond simply property and construction. But if State and Federal Governments (either independently or as part of COAG) consider incentive schemes, perhaps our economy could weather the storm better than many would expect.
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How our state and Federal Governments can support the property industry during COVID-19

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A home with great street appeal can be a joy to come home to and if you are thinking of selling, can add that WOW factor that has potential buyers hooked from the moment they see your home.

The good news is that there are heaps of DIY tasks that you can do for little or no cost. For a more substantial makeover, you can engage professionals which will involve some expense, but deliver spectacular results!

TIP 1 - <a href="/expert-insights/buying/how-to-spring-clean-your-home">Declutter</a> and tidy up

Remove damaged or rusted furniture and rubbish from the yard. Most local councils have annual junk pick-ups from your verge. Make sure you know when this is and clear your yard and shed at the same time!

TIP 2 - Clear the Letterbox

Ensure that your letterbox is regularly cleared. A letterbox with weather-beaten junk mail hanging out of it screams neglect and is very unappealing. 

TIP 3 - Trim and Prune

Trimming and pruning overgrown bushes is a great way to freshen up the yard. Check with your local council and find out when the next green verge collection is taking place in your area so that you can take the offcuts off your hands. 

TIP 4 - <a href="/expert-insights/buying/10-benefits-of-having-plants-in-the-house">Plant some blooms</a>

Planting fresh flowers makes everyone feel good! Spring is the perfect time to plant a few cheap and cheerful blooms such as Petunias and the kids can join in too. 

TIP 5 - Pressure clean hard surfaces

Driveways, paths and verandas get stained and look dull over time. Hire a Pressure Cleaner from your local equipment hire store. This will get rid of oil stains on the driveway and freshen up tired and dull paving. 

TIP 6 - Landscaping

Engage the services of a Landscape Architect/Gardener. They will have great ideas and water-wise recommendations for your garden. A popular trend is to liven up boring fence spaces with vertical gardens.

TIP 7 - Roof restoration

If your roof cover needs attention you have a few options to consider. Old tiled roofs can be completely replaced with a Colorbond tin roof and completely transform the look of a home. Otherwise, an old tiled roof can be restored. Replace cracked and damaged tiles and follow with a fresh spray coating. This is an affordable alternative to a complete replacement.

TIP 8 - External Render

If your home has unattractive face bricks that belong to a bygone era, consider rendering your home. Covering up the old and dated bricks can give your home a real lift. 

TIP 9 - Repainting the exterior of the home

A repaint of the external walls can lift the look of any home. But don’t just repaint in the same colour! Some of the cream and stone tones that were popular in the past are now out of style. If deciding on a colour leaves you scratching your head in confusion, engage the services of a colour consultant. 

In summary, the end result of <a href="/expert-insights/buying/decluttering-experts-share-effective-downsizing-advice-for-apartment-living">sprucing up your home</a> can give it the wow factor and street appeal that makes you beam with pride.
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8 Top Tips for increasing your Home’s Street Appeal

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Many of us have lived through economic uncertainty in our lifetime. That uncertainty comes in many levels for people at different stages of their lives. It could be when you were young and left home for the first time, trying to manage your money, paying rent, buying food, and enjoying the fun things in life. It might be the struggle to save for a deposit to purchase your first home or an investment property. It may not cause economic uncertainty, but it could be financially challenging saving while trying to continue to balance daily living expenses. 

Depending on your age you could have lived through and survived many financial crises and now they are just distant memories. Can you remember how you were affected by the Global Financial Crisis? You may not have been old enough to remember it. Then we had the impact of 9/11 on businesses. What about the Y2K bug when all the computers across the world were supposedly going to cease to work? We had the 1990 recession in Australia with the now-famous quote by Paul Keating, then the Treasurer of Australia:

<blockquote>
“The first thing to say is, the accounts do show that Australia is in a recession. The most important thing about that is that this is a recession that Australia had to have” – Treasurer Paul Keating, November 1990
</blockquote>

Going back to the early 20th century there was the Spanish Flu in 1918. Then the Great Depression in 1929, and the list goes on. 

However, after these hard times, came hope, then growth, and then we prospered.  We forgot about our pain. We survived and we moved forward. Now it is 2020, we are again in fight mode and facing an enemy we cannot see. Through this time there will be many that face economic hardship. There will be people that will struggle. There will be unemployment, loss and adversity. The effects will be felt by people in our communities, our neighbours, friends, business colleagues, or our family. 

On the other hand, there are many who will weather this period of uncertainty with minimum impact. They are employed in industries that haven’t slowed down through this pandemic, they continue to earn an income and life goes on. 

This is where confidence comes into play. If people have confidence, are in a financially sound position and have the foresight to purchase property in a slow market, over time they will find the current economic climate presents a great opportunity for investing in property. There are many great opportunities currently out there in the market, and these opportunities are better described as VALUE.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/silver-and-gold-coins-128867.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="387" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/silver-and-gold-coins-128867.jpg?itok=3LRN7Gl6" width="580"></a>

<figcaption> </figcaption></figure>This is what VALUE might look like. 

<ul>
<li>
Reduced pricing of properties

	<ul>
<li>This could be a discount on the purchase price and might be 5-10% </li>
	</ul>
</li>
	<li>
Cash Incentive
	<ul>
<li>A further incentive to buy at this time. This could be offset against the purchase price or a rebate on a settlement. </li>
	</ul>
</li>
	<li>
Rental guarantee if you are purchasing an investment property
	<ul>
<li>This should be at market rent or close to market rent. If you are offered a rental guarantee well above market yields in the area you are looking to invest in, then this could be a red flag to walk away. </li>
	</ul>
</li>
	<li>
Job Guarantee 
	<ul>
<li>If you lose your job over the duration of the COVID-19 lockdown, you might be able to have a clause in your contract that you can walk away from the purchase and receive a full deposit refund before settlement</li>
	</ul>
</li>
	<li>Stamp duty relief package from governments or developers</li>
	<li>
Turnkey property
	<ul>
<li>This means that there is nothing more to spend on the property. It is ready to move in – make sure it includes free blinds. </li>
	</ul>
</li>
	<li>
Furniture package for properties
	<ul>
<li>This may not be a good option in the current climate due to the downturn with national and international travel or limited people moving. This type of property might have higher vacancy periods.</li>
	</ul>
</li>
</ul>
The above may not be available for all properties on the market. But the time has come to negotiate and see what added VALUE you may be able to receive. Remember, completing your due diligence first is a must and don’t purchase on price alone. 

Lastly, a quote from Warren Buffet to ponder: “Price is what you pay. Value is what you get”.
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Finding value in property during an economic downturn

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Everyone is aware that there’s a bit of friendly (and sometimes not-so-friendly) generational rivalry going around between the Baby Boomers and the Millennials, with a lot of spicy debate around which generation faces the biggest number of issues. Millennials think Baby Boomers inadvertently set them up to fail – while Baby Boomers believe their younger counterparts are lazy, smashed-avo-loving layabouts. But just how true are either these assumptions, if at all?

How the generations compare

There are a few major differences between the upbringings and lifestyles of Baby Boomers and Millennials which create a clear distinction in their lived experiences. Take career paths, for example. Generally speaking, Baby Boomers were likely to leave school, gain employment, then remain in that job throughout their working career. Baby Boomers were definitely loyal, even if it was to their own detriment. Millennials, on the other hand, can enjoy something called the ‘gig economy’, which embraces freelancing, virtual positions and moving from job to job, seemingly at a whim. This freedom doesn’t create the same job stability and financial security that Baby Boomers enjoyed, but it lends itself more to expression of creativity and potentially higher levels of individual happiness.

Another example can be seen when we look at relationships and family. While high numbers of Baby Boomers were likely to be married and planning for kids by the time they were 25, Millennials are waiting much longer to lock it all down. Millennials have also been deemed more health-conscious than their older generational counterparts, putting more emphasis on productive daily habits and overall healthy living to achieve a healthy lifestyle. Furthermore, Millennials have been noted as a generation that undertakes more formal education compared to Baby Boomers.

But what about <a href="/new-townhouses">housing</a>?

Was it really harder for Baby Boomers to own their home?

When it comes to <a href="/guides/how-to-buy-a-house-in-2021-a-guide-for-first-time-home-buyers">buying a home</a>, Baby Boomers can often be heard saying they had it much harder. To determine whether this is true or not, let’s take a look at both situations. Back in the Baby Boomer home-buying era, around 30-40 years ago, they were dealing with a period where interest rates reached 17 percent, compared with rates of around 2-3 percent at the time of writing this article. At the same time, housing was much cheaper, with a median house price of $36,800 in Sydney, $32,900 in Melbourne and $26,275 in Brisbane.

To keep this relative, the average wage in 1975 was $7,600, compared to around $72,000 today. Over the years, as with all goods and services, the price of property has increased. Property moves in cycles, with boom and bust periods. According to statistics from the Reserve Bank of Australia, between the years of 2012 and 2017 in Sydney and Melbourne, property prices rose 75 percent and 58 percent, respectively – this was most definitely a growth period!

So Boomers had it easier – right?

Property prices were around the same as a new small car costs today. Surely, that means Baby Boomers were able to buy property more easily, doesn’t it? But before you arrive at that conclusion, another point of difference to consider is the <a href="/guides/how-much-should-you-spend-on-your-first-house-in-2020">income to price ratio</a>, which determines how high the price of a house is when compared to annual income (before tax). When we take a look back some twenty years, Tim Lawless, property analyst and head of research at CoreLogic, says “a typical ratio was around four and a half times”. That means the average house cost around 4.5 times the average salary.

Today, the ratio is generally around six and half and seven times – higher in Sydney. “Off that measure alone, it’s clear that getting into the market has become a bigger issue than it was,” Lawless says. This might be why the number of renters has been steadily increasing over the years, with a 2017 report published by the Committee for Economic Development of Australia (CEDA) revealing a rise of 22 percent in the number of renters aged between 25 and 34 years who rented, between 1982 and 2012.

Unfortunately for those out for blood in this debate, it seems that there is a relatively fair argument for both generations having either an easier or harder time in the housing market. Both age groups had their challenges to overcome – and property buyers of the future will have their own set of <a href="/expert-insights/buying/why-the-real-estate-industry-must-replace-fear-with-opportunity-during-the-covid-19-crisis">setbacks</a> to conquer. So, rather than directly comparing the two generations and debating about ‘who had it harder’, it’s best to view it as a level playing field.

Cross-generational understanding could encourage both generations to teach and learn from each other. And, realistically? It does not matter. Both generations had their own struggles in terms of property, in different ways. You can either complain about who has it harder, or start working on some strategies today to grow your own wealth through property investing.
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Millennials and Baby Boomers both claim they had it harder…

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Never in the 12 years as Managing Director of Xynergy Realty have I seen this many empty apartments in Melbourne. The lack of international and domestic tourists along with the reduction of international and interstate students living in the city whilst studying at Melbourne universities has caused inner-city apartment rents to plummet.

This has been the biggest decline in overseas tourists in Melbourne's history. Since I have been in Australia I’ve seen the Victorian government invest millions of dollars in tourism, growing the number of international tourists from 5 million in 2009 to 8.5 million in 2019 with the government planning to grow this to 15 million by 2026. Out of the 8.5 million tourists that come to Victoria every year, 3 million of them visit Melbourne as well as 10.8 million domestic tourists.

The real estate market has changed because of this. Due to the increased demand for short term accommodation, landlords can now rent out their apartments as AirBnBs. While this is riskier in terms of consistent cash flow, most investors see greater rental returns in such short-term rentals compared to leasing out long term for 12-months. Some buildings in suburbs like Melbourne CBD, Docklands and Southbank have close to 20% of buildings being used as short term accommodations and <a href="/news/airbnb-plans-to-help-house-100000-covid-19-responders">AirBnBs</a>. This has helped accommodate the increase of tourists in our city.

However, these short-term operators have now become a double-edge sword to many landlords. Most residential buildings in the CBD are not built to cater to commercial activities that short-term accommodation operators present to the buildings’ facilities and amenities. Most of these operators are signing <a href="/guides/covid-19-what-are-your-rights-as-a-tenant">Residential Tenancy Agreements</a> instead of Commercial Tenancy Agreements. Hence, landlords and other owners in the buildings have to cope with significantly higher maintenance costs that are built in their Owner Corporation’s levies and all other outgoings attached to the properties. Given the COVID-19 pandemic situation, the units that are leased out to short-term accommodation operators are the worst performers, since many of these operators are now completely unable to pay rent.

Over the years, students have made up a significantly large portion of tenants in Melbourne's CBD. Most of the students that choose to come to Melbourne come from large cities and they are perfectly fine with that style of living and because some of our largest universities like Melbourne Uni and RMIT are in the CBD, so students will much prefer to live close to Uni and benefit from all the conveniences of CBD living. The Australian Bureau of Statistics showed that only 307,500 foreign students entered the country in March 2020, a drop of 60% the lowest it's been since I came to Melbourne as a student in 1994.

Our nation's vacancy rate usually sits just below 2%. Now in April, it has risen to 2.6%, the highest it's been since the Global Financial Crisis in August 2009. According to figures from the Melbourne City Council, the rental vacancy rate in the CBD and surrounding areas has nearly tripled since last April from 1.9 percent to 5.4 percent, reaching its highest point in more than a decade.

A concern for a lot of landlords if they are unable to rent out their property in 6 months is that they might be hit with the Vacancy Tax, which was originally proposed for landlords who deliberately left their apartments empty. This is obviously not the case now and the tax should be abolished over this period of time.

In summary, with the shrinking number of short term accommodation and a drop in international students, there are <a href="/expert-insights/buying/why-now-is-the-best-time-to-be-a-rentvestor">plenty of empty apartments now competing for tenants</a>. We have seen landlords give huge discounts on rents just to lease out their property. This is great news if you are a tenant looking for an apartment in the city.
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Why Melbourne City rentals are so cheap - and why it's never a better time to be a renter

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One of the most important factors in building a <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">large investment portfolio</a> is generating deposits that allow you to continue purchasing. This aspect of property financing is often overlooked as many people spend their time focusing on how to maximise their servicing. However, having servicing capacity is only useful if you can also produce the deposit needed to purchase! Investors will often look to the equity in their existing portfolio to use as the deposits for new purchases. A good finance structure will play a large role in maximising the amount of equity you have access to. This in turn gives you the firepower to continue to grow your portfolio. 

Here are 2 financing tips for those thinking about using <a href="/guides/how-does-equity-work-in-property">equity </a>to grow a portfolio. Flexibility from the bank will help you release equity 
Some banks are much easier to deal with when it comes to releasing equity, while others can be a massive roadblock (particularly at higher LVRs). Banks will ask what you plan on doing with the equity release and how detailed an answer they require is key to getting your equity out.

If the lender determines that the equity is being released in order to take on more debt (say another loan with a different lender who has a more favourable servicing calculator), then they will have to add an estimate of this additional debt to your servicing. This often results in a servicing fail and it means that the lender won’t approve of the equity release.

Therefore, taking into consideration the process each lender uses to approve equity releases and what verification they require is an important consideration as part of lender selection. Having your loans with lenders who have favourable equity release policies is a great way to position your finances for future growth.

Valuations 
This perhaps is the greatest tool to finding equity that you didn’t think that was there. There are three main types of <a href="/guides/top-7-tips-on-how-to-value-a-house">valuations</a>: a computer estimate, a ‘kerbside’ valuation and a full valuation.

A computer estimate is allowed by some banks at an 80% LVR. Due to their automated nature , these estimates can produce better results than when a conservative valuer walks through the door. It typically helps when you have a property that isn’t as glamorous on the eye but has features that a computer can recognise is valuable. A computer can’t see your renovations, but it does know you’re land size, bedrooms, and comparable sales. 

Being with a lender that allows you to use this valuation tool is a great way to maximise your chances of being able to release equity. This is because you can always upgrade the valuation if you think the computer underestimated the value, but if you think it is favourable you can just accept the computer valuation and access the equity. 

Lenders that don’t allow computerised valuations will make you complete a ‘kerbside’ or full valuation as part of any equity release application. A ‘kerbside’ valuation is when a valuer drives by the property as makes a valuation assessment based on what they can see from the street. A full valuation involves an external and internal inspection by the valuer and a full report is issued outlining the estimated value. 

By choosing your lenders carefully, not only is it ensured that you are best placed to service a large portfolio, but you are also best placed to take advantage of different tools and techniques that savvy investors are using to get that little bit further.
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Build your deposits to grow a large investment portfolio

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Perhaps the most important financing consideration investors have is selecting the right lenders to partner with. Lenders can be viewed as your partner to success – without them, <a href="/guides/balancing-a-property-portfolio">building your portfolio</a> may not be possible.

When people choose between different lender options for a loan, it is usually a very simple thought process: ‘what loan best suits my requirements?’. However, it is natural human behaviour to prioritise the most immediate questions when thinking about these decisions, such as:

<ul>
<li>Which loan has the best rate at the time of signing?</li>
	<li>Which loan has the lowest application fee?</li>
	<li>Are there any promotional offers that take my fancy like rewards points?</li>
</ul>
But this is short term thinking. When you are looking to grow an investment portfolio over time, a loan should never be a ‘strait-jacket’. It’s important to remember as an investor, you’re looking for ways to have more options and possibilities in the future, not less! 

It is really about how to make sure you are always playing the long game – bringing your long-term goals front and centre in your decision making.  Property investing is a long-term game, and your financing strategy and lenders need to match up with these objectives.  Thinking ‘short term’ may ‘snooker’ you in the long run and stop you from achieving your goals.

Instead, the right questions investors should be asking is whether the lender and loan product can help you achieve your longer-term goal. Investors should be seeking to balance:

<ul>
<li>Lenders that suit a diversified lending structure that allows you to multiply your borrowing power over time; and</li>
	<li>Lenders that offer the flexibility and control you need to grow a portfolio over time.  </li>
	<li>To go into further detail on these points, you are looking for some key loan features that become very useful for those trying to grow a portfolio, which are often overlooked in favour of the short term considerations. </li>
</ul>
Lenders that can offer you the following features will pay dividends in the long run:

<ul>
<li>Favourable policies on releasing <a href="/guides/how-does-equity-work-in-property">equity</a>, allowing customers to access equity with ease.</li>
	<li>Easy access to valuations on your existing properties, ideally through a computerised valuation system where the lender can provide an instant valuation without the need for a full inspection.</li>
	<li>The ability to split loan accounts and maintain separate offset and redraw facilities.</li>
</ul>
These may not be the first things you think of when assessing a lender, but as your portfolio grows and your affairs become more complicated, these are powerful tools. I encourage any budding investors to keep these in mind at the start of your journey, it will leave you in a better position down the track.
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