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]

Joel Robinson

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.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

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

<a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.

Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.

A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" />

"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.

"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."

The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" />

Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.

The architects say landscape is intended to be integral to the building rather than an applied element.

"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."

"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."

Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.

HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.

HG Developments doubles down in Newstead with second Maud Street apartment development

Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.

"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.

"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.

"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

What does it really mean for a building to be 'green'?

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>

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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>

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Ellen Walker

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

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Since 2003 I've argued that many academics, economists, commentators and consumers confuse two fundamentally different concepts: the risk observable in a broad-based house price “index” and the probability of loss (or risk) faced by individual homeowners. This is a profoundly relevant issue for us all. 
The popular notion of bricks and mortar being a safe investment for owner-occupiers is at least partly based on the observed volatility, or risk, associated with regional house price indices.
The problem here is that a house price index proxies for literally millions of homes worth billions or trillions of dollars. An index is, therefore, an incredibly well-diversified portfolio.
In contrast, an individual homeowner is making an economic commitment to one highly idiosyncratic asset. 
You are buying one home, on one street, facing one direction, with all of its manifest peculiarities. This is, by definition, a poorly diversified investment with a much larger prospect of loss. 
A similar analogy can be found when comparing the risk of a micro-cap listed on the ASX with the fluctuations observed in the ASX All Ordinaries index, which captures every company listed on the exchange.
The micro-cap’s volatility will be much greater than the variations observed in the index. This is why your average super fund's portfolio invests in the index, and not micro-caps. 
Diversification is meant to be the one “free lunch” in economics. It’s the one time you really can walk along the street and pick up 100-dollar bills.
Since the circa 7-8 million property owners out there do not get the benefit of a national portfolio comprising millions of assets, understanding and managing individual asset-level risk (ie: your own home) is of great importance.
Regrettably, there is very little research on the economic hazards faced by single family homeowners. Rismark's team has, however, spent a lot of time thinking about this subject. 
Applying one methodology developed by professor William Goetzman, a leading financial economist at Yale, we found that the total risk of an individual home is about 15-20% per annum depending on the holding horizon. If we take a seven to eight-year ownership period, the individual property volatility is about 15% per annum. The chart below illustrates the results of this research based on all purchases and sales of Australian homes between 1990 and 2009. 
<img src="/images/stories/joyegraph1-cropped.png">
 Based on this analysis, owning a home outright is slightly less risky than owning every company listed on the ASX, which has exhibited historical volatility of nearly 20% per annum over the past 30 years. The next diagram shows a simulation of the risk profile of an individual home compared with capital city and national house price indices between 2004 and 2009. For the purposes of this analysis, the team used RP Data-Rismark's Hedonic Home Value Index. Importantly, we have also assumed that the individual property owner, which is represented by the red dotted line, has no mortgage debt. You can see that the value of the individual asset varies strikingly through time, compared with the capital city and national indices. 
<img src="/images/stories/joy-new-graph-cropped.png">
To highlight these differences further, here are approximations of the expected return ‘distributions’ attributable to both a national portfolio of housing and a single family home. 
<img src="/images/stories/joyegraph3-cropped.png">
 Observe how the individual property’s return distribution, which is proxied by the blue bars, has far 'fatter' tails and a lower peak. This tells us that the prospect of realising positive or negative capital growth outcomes is much higher than a nationally diversified portfolio, which is represented by the comparatively narrow red distribution. The latter demonstrates that the dispersion in the range of possible outcomes is very tightly wound around the average, or expected, capital growth rate. 
This is just one way of saying that a national housing portfolio has exceptionally low risk of just 3-4% per annum. If you had this holding, the value of your investment would have fallen only 2.5% in 2008. If, on the other hand, you had a single, million-dollar-plus property in Sydney or Melbourne, it probably fell by about by 10 to 15%.
The final chart illustrates the monthly returns attributable to a simulated Australian home between 2004 and 2009. Critically, we have created both 'geared' and 'ungeared' capital growth profiles. The blue line denotes the value changes associated with a homeowner with 70% mortgage debt. The red line represents a homeowner with no debt (they own the property outright). The impact of leverage is vivid: it amplifies the probability of loss, with the blue line dipping far below the zero% (ie, no change in value) axis with disturbing regularity.
<img src="/images/stories/joyegraph4-cropped.png"> So, what is the message from all of this? Over and above simple portfolio diversification, one take-away is that households have a profound (latent) desire to deleverage their balance sheets. This is an obvious statement today – but it was not something that many folks focused on back in 2003, when I first made it.
The only way to reduce debt is by boosting equity. This brings us to an economic puzzle: equity markets for housing finance don’t exist. While listed and unlisted companies raise debt and equity every day of the week, homeowners are stuck with debt. So, whereas a company with 90% gearing would be punished by the market for being excessively risky, we happily allow first-time buyers to leverage up to the tune of 95% against far riskier underlying assets.
The principal value of equity finance, as opposed to debt, is that the equity provider wears the risk of loss alongside you.
When times get tough, equity costs you nothing. In comparison, you always have to service your debt. Equity only has a positive cost when things go well, and you can afford to pay. This is precisely why financial markets and regulators like to see companies with more equity and less debt. 
The Bank of England's Andy Haldane recently arrived at this conclusion: policymakers need to revisit the housing finance paradigm and promote the design of smarter instruments that help households better mitigate their risks. Of course, real change is an awfully difficult thing to implement.
Christopher Joye is a leading financial economist, and works with <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" target="_blank" title="Rismark International" href="https://www.rismarkinternational.com/">Rismark International</a>. Rismark and RP Data provide house price analytics products, and solutions that enable investors to go long and/or short the housing market. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

Residential: not as safe as bricks and mortar

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
The stream of extreme bullish and bearish views regarding the real estate market adopts the guise of a political contest.
Those of us working in the industry are constantly accused of talking up the market for our own ‘greedy’ ends. On the other end of the spectrum are the ‘bubble’ doomsday pundits, who are so determined to see our market suffer an American style crash and shoot down the drain, they hang onto any bit of negative data they can lay their hands on.
The real truth is neither bearish nor bullish, but in many respects overwhelmingly predictable.
Most Australians recognise the beauty and quality of lifestyle we’re privileged to experience in comparison to many other countries. It’s the reason our major cities top the list of the world’s most liveable destinations.
However, debate is rife concerning our rapidly increasing population, simply because our infrastructure in major metropolitan areas is woefully over-capacity. We don’t have enough accommodation in the areas where people want to live, so is it any wonder we continue to see inner-city property cycles of unsustainable booms, followed by flat periods of pain and grief, for potential buyers who can’t afford a foot in the door?
Real estate has always seemed unaffordable and overpriced to first-home buyers – a simple search through newspaper archives will teach you this.
However, as the metropolitan belt tightens, it’s fast becoming a split between ‘those who can’ and ‘those who can’t’. In short, any single person on an average wage fighting to save a deposit will find they’re limited to regional locations with sparse amenities, or high-rise inner-city rabbit hutches which banks are not all that keen to lend on.
Is it any wonder fewer first home buyers are entering the market? The incentive to scrimp and save for a deposit is only there when the reward is achievable.
Prime Minister Julia Gillard, and Sustainable Population Minister Tony Burke, recently commented that Australia's most densely populated cities, Sydney and Melbourne, have reached their ''carrying capacity''.
This could have been a political ploy to gain kudos in the polls – after all, there’s huge consensus to cap Australia’s population, but it would be interesting to debate how we intend to achieve this.
Australia is one of the least densely populated countries in the world. It’s not good enough to protest that much of the land isn’t arable when we’ve already proved our ability to adapt to different terrains and climates. Although we may be able to slow our growth, we can’t single-handily stop it any more than we can single-handily stop climate change! People are going to keep coming, and a consistent fertility rate alone will see a population of 29 million by 2050.
Therefore, unless we look outside the square and find real, feasible options for an increasing number of buyers who can no longer afford to purchase, we’ll see tremendous pressure on rental accommodation and our market will become an investor’s domain.
Increasing stock supply is not the ‘simple’ answer to this equation, if it is to be located where commuting time will outweigh any savings made.   Increasing inner-city density is well and good, however, as any first home buyer knows, banks place strict criteria on the type and size of property they’ll lend against.
Many of the Manhattan-style high-rise developments (supposedly built to ease home buyer pain) don’t come close to filling the necessary criteria.
At about $290,000 – the average loan for a first home buyer – it’s all but impossible to purchase something in a metro location that will provide a decent stepping stone for future advancement.
Anyone experienced in property investing knows the number one consideration for home buyers is proximity to public transport. Schools are also high on the list.
We have to face the stark reality that our population cannot be ‘capped’, but neither should we feel like factory-farmed chickens squashed into metropolitan areas where housing is reserved for ‘those who can’.
By 2013 Australia will be the only continent without any high speed rail! A high-speed network linking regional locations would see commuting times to the nearest CBD from as little as 20 minutes and open a wide range of affordable options for homebuyers.
Unless we start understanding extra roof space is not the answer to sustainable population without serious commitment to improving transport systems, we can expect the house hunting-pain of ‘those who can’t’ to get progressively worse.
Catherine Cashmore is senior buyer advocate for <a target="_blank" href="https://www.elitebuyeradvocates.com.au/">Elite Buyer Advocates</a>. With extensive experience in all matters regarding real estate, Elite Buyer Advocates purchases and negotiates more than $100 million worth of property each year for its clients.
 
 
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catherinecashmore-6LXia3pPQj

How rapid population growth divides prospective buyers

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House rent increases have lagged increases for apartment over the past five years, according to the latest RP Data rental report.
Capital city rents increased at an average annual rate of 7% for houses and 7.9% for units over the past five years.
But since 2009, capital city house rents have increased by just 4.1% while units have performed relatively stronger with rents increasing by 8.6%.
Across the nation, house rents have increased by just 4.3% since the beginning of 2009, while unit rents are up by 7.6 %.
Mr Kusher said the result is an indication that rental demand for units has been much stronger than for houses.
“The result reflects changing lifestyle patterns and the ongoing densification of inner-city areas and subsequent increasing demand for rental units in these regions,” he said.
For units, rents are most expensive in Sydney ($450/week) and Canberra ($430/week). Hobart is home to the most affordable rental units ($280/week), followed by Adelaide ($290/week) and Melbourne ($350/week).
Despite a quarterly slow-down in rental growth, the lack of first home buyers and limited supply of new housing may be creating increased competition, Mr Kusher said.
“This activity may be beneficial to investors who could see a boost in rental rates as vacancies tighten and fewer new dwellings continue to commence construction.”
Pilbara in the WA has the most expensive rents of all rental markets, at $1,650 a week for houses, according to RP Data.
Darwin has highest median rents followed by Canberra and Sydney. The cheapest capital cities to rent are Adelaide and Hobart.
Weekly rental rates increased nationally by 2.9% over the past year – slightly higher than the 2.7% increase in the capital cities.
The national median rental rate is currently $360 a week with the combined capital city median at $380.
According to the results, rental growth has tracked below average over the past 12 months; a trend which has been evident since early 2008 when rental demand started to slow.
“Combined capital cities rents increased by 2.7% over the year, which is below the inflationary figures to March 2011,” Mr Kusher said.
 
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jchancellor-FAypfDUnLy

Units yielding bigger returns than houses for investors

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Website developers in Australia have never been busier thanks to the insatiable consumer desire to shop online.
With the strong Australian dollar, local big-brand retailers have been caught asleep behind the counter given until recently online branding had been largely ignored. As a consequence, Australian retailers quickly observed significant drops in profits which have now prompted the battle of the homepage. Make no mistake: the online economy is booming with revenues increasing by up to 40% in 2010.
Apple recently reported that more than 15 billion applications have been downloaded for the iPhone, iPad and iPod Touch. Latest statistics show that in early 2010, about 25% of mobile phone users were shopping via their phones.
The online doubters now find themselves in a denial freefall given the total revenue from electronic payment systems in Australia was estimated at about $3.8 billion in 2010. When compared to 2009, virtual spending increased by 40% in 2010. The 2011 retailing results keep getting worse, and now they have been told that unless they quickly adapt, they will perish given consumers are sending out a clear message that their preference now is to shop online from home.
The latest findings by Macquarie Equities Research confirmed that 18% of shopping centre visitors are only there to check out prices and sizes before going home to complete the purchase online. In an amazing admission of defeat, Australia’s largest retailers are now turning their attention to finally building vast online platforms, but the question begs: what took them so long given the real estate industry has been selling real estate on property portals since the early 1990s?
With interest I have been reading a fascinating (and scary) <a href="https://www.business2.com.au/2011/07/project-rebellion-reas-problems-continue-with-accc-investigation-underway/">blog</a> on Business2, the real estate news and technology website, which follows up a recent story that appeared in the Australian Financial Review which investigated a revolt by real estate agencies across Australia against realestate.com.au. In short, some of Australia’s largest real estate groups are looking at starting up a combined property portal, which has been called Project Rebellion. While I support the concept of an industry website – I can also see many of the same mistakes in this concept that retailers are making at the moment. Aside from the reality that such a venture would require at least $1 million dollars to get it up and running, it certainly appears to me that such an exercise lacks vision. Simply put: the agent sentiment of dissatisfaction is built on the past, not the future.
Building websites if you don’t know what you are doing can be costly mistakes. Just look at the City of Sydney council, which is now spending a massive $1 million of ratepayers’ money tweaking their website – just six years after it was constructed. Anyone with the slightest online knowledge would see this as an embarrassing waste of money – given in another six years’ time they will be back at it again. Everything may be now moving to digital, however, the answer is providing clients with the best online experience that separates your online model ahead of your competitors.
The secret to search engine marketing (SEM) is not having the best-looking website. It is about having the best database. One vital component that has not changed over the past decade is that for any online platform to perform to its best ability, it must be connected to a database. This flows through to search engine optimisation (SEO) where the content on that particular website is collected by the search engines. The more content, the higher the search engine ranking. It should be every website’s goal to appear on page one of a Google keyword search.
There are many great success stories in Australia where amazing growth strategies are on display where we are only talking a few short years. Online shopping club Ozsale launched in 2007. Last week it reached two million members. More than 5,500 new members are signing up each day and exponential sales growth saw revenue grow by more than 300% last financial year.
In the real estate industry, businesses need to take ownership of their very own online models, rather than rely on third-party assistance. We measure our business growth on competing with the two major property portals: Domain.com.au and realestate.com.au. As this graph identifies, you need to be your first point of contact to your demographic market. Here is a typical report that we sent a vendor showing the first week’s activity for their apartment.
<img src="/images/stories/simeon-cropped.png">
Successful SEM and SEO allow a business to take ownership of their demographic markets where they become the online voice for that market. It does require a lot of work and dedication – blogging, database management, social media and constant email alerts. This is the new online platform for the real estate industry which explains why website developers have never been busier.
The choice of letting competitors control your market online is self-explanatory – they will make your market their new market, which is otherwise known as capturing market share. In this modern era, if you are not running your own website, you run the risk of being irrelevant – the internet already has made many businesses irrelevant, where via natural attrition, they have now closed – not by choice.
That is why your homepage must be your online ‘home sweet home.’
Robert Simeon is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM">Richardson &amp; Wrench Mosman &amp; Neutral Bay </a>(RWM) 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.
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robertsimeon-hRNTwJyXkQ

Why online presence has never been more important for estate agents

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Sometimes the best-looking property can be the worst real estate investment you've ever made. Remember that investing in commercial property is all about the price, the terms and the ongoing return on investment. Here are several tips for successful commercial property investing.
Be an investor – not merely an accumulator of commercial properties.
The reason you make investments is to produce a worthwhile profit. So if you end up buying a property that produces little or no growth, \you basically acquired a property (instead of making an investment).
Get yourself a mentor so you benefit from his or her experience.
Mentors can save you from making very costly mistakes, identify when you've missed due diligence items, and connect you with resources that you otherwise wouldn't have immediate access to.
Understand that every commercial property has a lifetime.
One of the biggest errors you can make as an investor is to ignore the fact you will need to spend money on the upkeep of the building over time. The building may need a new roof, or the electrical system may need to be upgraded. Every building goes through these renewal phases. Therefore, make sure you have a long-term strategy to handle such repairs.
Focus on one commercial property sector at a time.
Especially when you're starting out, you should focus on one type of investment: offices, shops, warehouses, or whatever you prefer. Each deal needs your undivided attention. It's much better to master one aspect than to be average over many. And who wants average-performing properties anyway?
Decide whether you and your assets are adequately protected.
As with anything in life, messy lawsuits can occasionally occur. Therefore, you need to do everything in your power to protect yourself and your investment. Ask yourself the following questions to determine whether you're fully covered:
How is your commercial property protected – both legally and insurance-wise?
Are your other investments totally separate from each other so one lawsuit can’t affect the other investments?
What do you have at stake, if you lose a lawsuit? Is your personal property, for example, your home, isolated?
Don't try to guess when it comes to the answers of these questions. Talk to a lawyer to ensure you're fully protected if ever you were to be sued.
For a partnership or syndicate, finance the deal using non-recourse finance. Non-recourse means you aren't personally guaranteeing the loan. This gives you two distinct advantages: it allows you to be taken off the loan if the partnership sour, and, if the property were to fail, the financier cannot come after you personally.
Once you understand the “rules of the game”, buying commercial property is really quite straightforward. You just need to do a little homework and make sure you get the right advice along the way.
Chris Lang is a commercial property investor and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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chrislang-EQKojcgJPV

Five tried-and-true tips to help you profit from commercial property investing

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It was the height of the boom in 2004, and as we walked our little girls around Glenwood, watching new houses being built, we discussed whether they will ever be able to afford a house when they grow up. In our suburb alone, prices were conservatively in the high $600,000s. During this walk we had a discussion that changed our lives. John knew a fellow policeman who was investing in property – so if they could do it on a policeman’s wage, why couldn’t we?
Not long after this conversation, on my regular train commute to work, my thoughts were consumed with property. I looked up and saw a ‘for sale’ sign on a property that was located literally opposite the Harris Park train station.
When I tried to search for that particular property on the internet, I couldn’t find it, but the first listing that popped up grabbed my attention. It was in dire need of help – bright blue, smoke-grimed walls, crappy carpet and hodge-podge kitchen – and it was cheap at $190,000.
At the time, prime-time TV was all about renovation rescue shows and I was caught up in the hype of it all. I thought, “Let’s go and renovate!” It wasn’t the thought of making lots of money that was driving me – just the idea of renovating.
I just really wanted to buy something and when I viewed the property, I saw the renovation potential. I perused the local newspapers to see how many other properties were on offer in that price range and to see how much a one-bedroom unit rented for. There wasn’t much to go by, so I called the agent to view the property and subsequently made an offer of $180,500, and it was accepted.
Before I put any money down, though, I had to convince John that it was a good buy. He came down and viewed the unit. I don’t think he was that enthused – he knew I just wanted to buy something for the sake of buying something. Still, he gave me the green light. Even my mortgage broker tried to talk me out of it, but I was adamant: this was going to be our first step towards financial freedom through property investing. I just knew it!
So where did we go wrong?
This renovation-rescue, one-bedroom unit was under 50 square metres, which made it more difficult to secure funding. Banks prefer to see properties that are at least 50m2 in size, as it means that a wider pool of people – including singles and couples – could potentially live in the property. We paid approximately $2,500 in lender’s mortgage insurance for the privilege of buying under 50m2. It was also in a 1970s red brick building and we purchased at the top of the <city><place>Sydney</place></city> boom, which crashed all of two months later.
We spent $5,000 on renovations, including replacing carpet, painting, light fittings and kitchen cupboard handles. John’s nightmare renovation task was to the paint the very 70s vermiculite ceiling – as he learnt, that stuff has limitless potential to soak up paint and our money.
As it turned out, it wasn’t the most astute investment decision we could have made. Over the past five years, the property actually decreased in value by about $5,000 – even with the renovations. Only in the past six months have we seen capital growth. But every cloud has a silver lining and in this instance, our mistakes have been softened by the property’s strong performance in the rental market. It’s always had good tenants and it takes care of itself, so we don’t have to think about it. Utopia would be for a developer to knock the whole block down, so there could be further potential there.
The facts
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="95">
Purchase Price 2004
</td>
<td valign="top" width="95">
Current value 2010
</td>
<td valign="top" width="91">
Rental start
</td>
<td valign="top" width="90">
Rental current
</td>
<td valign="top" width="90">
Yield current
</td>
</tr>
<tr>
<td valign="top" width="95">
$180,500
</td>
<td valign="top" width="95">
$200,000
</td>
<td valign="top" width="91">
$150
</td>
<td valign="top" width="90">
$290
</td>
<td valign="top" width="90">
8.35%
</td>
</tr>
</tbody></table>
This is an exerpt from  <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://www.ipip.com.au/" title="Journeys Along the Property Path" target="_blank">Journeys Along the Property Path: 12 real life stories of 12 property investors</a>, published by Inspirational People in Property. Two of the authors are fighting breast cancer, and IPIP has aligned with the McGrath Foundation to raise money to fund McGrath breast care nurses in communities across Australia and raise awareness of breast cancer, particulary among young women. The <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://www.facebook.com/inspirationalpeopleinproperties" title="Keep up with the campaign" target="_blank">initiative </a>aims to sell 9,000 books to raise $90,000 to support the McGrath Foundation. 
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swarniecondon-aTY2bgqmPh

How a simple conversation sparked a property addiction

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Once you have made the decision to sell your property, the next step is to determine whether you wish to hire a real estate agent to act on your behalf. An increasing number of sellers are choosing to go the ‘DIY’ route, also known as ‘for sale by owner’.
Both approaches have merits and require careful consideration. Regardless of which approach you choose, there are common pitfalls for all property sellers.
1. Hiring the wrong agent
One of the most critical decisions early in the process is the selection of agent (if you choose to have one). Not selecting the right agent can significantly affect the outcome of the sale.
Be careful not to select an agent based on commission alone. Afterall, the cheapest agent is the one who can get you the highest net selling price.
Sellers should also be wary of selecting an agent based on an inflated appraisal of the property. This practice is commonly known in the industry as ‘buying a listing’. Another common mistake sellers make is to select an agent who is out-of-area, usually due to a personal relationship or recommendation. Property markets vary greatly and out-of-area agents often lack local knowledge and the ability to interpret market nuances.
Look for an experienced agent who has a proven track record of selling properties in your neighbourhood. Ask for and personally verify references from past clients. Find out how many listings the agent will have in addition to yours and who will be present for the open inspections.
You must pick a selling agent you can trust and can communicate openly with. They are your representative and should work in your best interest at all times. If you don’t trust your agent, any negotiation with a buyer will be a three-way one and won’t lead to an optimal outcome.
2. Unrealistic price expectations
All properties can be sold. It is just a matter of price. Too often, sellers are fixated on a target price based on the net proceeds. This pricing strategy often leads to an overly ambitious price expectations. While a seller can have whatever asking price they want, buyers reserve the right to disagree. At the end of the day, the market value for a property comes down to what the buyer is willing and able to pay today – not yesterday and not tomorrow.
3. Not understanding your rights and obligations as a vendor
It is important that all sellers are educated about their rights as well as their obligations as vendors. Be thorough in reading the fine print in legal documents (such as the Agency Agreement) and don’t hesitate to seek advice from the Office of Fair Trading, or your legal representative if necessary.
4. Not selecting the appropriate method of sale
There are two main methods of sale: private treaty or auction. All sellers will have to make a decision on whether to put a sticker price on the property and sell it via private treaty or take the property to auction. Both methods have pros and cons and neither are foolproof. Much depends on the prevailing market dynamics, which may favour auction in a sellers’ market and private treaty during a buyers’ market, for example. Whether you choose to sell by private treaty or Auction also depends on the type of property being sold. Agents often have a preference for one method of sale over another and sellers should discuss both options with the appointed agent. At the end of the day, sellers need to make an informed choice and be comfortable with the chosen method of sale.
5. Not doing own research and homework
At every step of the process, sellers need to invest time and effort to do their own research. Prior to selecting an agent, go around to nearby open inspections and auctions and see how the agents conduct themselves. Interview at least three agents and be strategic with the questions you ask them. Throughout the selling process, attend as many open inspections and auctions as possible in your neighbourhood. This will help you to get timely first-hand information on market sentiment as well as enable you to analyse competing properties.
6. Not taking presentation seriously enough
When you are selling a property, you are not merely selling bricks and mortar. You are also selling a dream. Therefore, the property needs to be presented in such a way as to appeal to the targeted buyers (be they owner-occupiers or investors). While staging or styling is increasingly common and can be very effective, it is still possible to present a property nicely without a substantial budget. Some of the best return-on-investment can come from de-cluttering, mowing the lawn, improving the curb appeal of the property, painting, etc. Investing in strategic cosmetic fixes can also be rewarding. Be careful, though, not to over-capitalise on any pre-sale renovation.
7. Poor marketing
You can't sell a property if nobody knows about it. Marketing (of which advertising is one key component) is essential to getting people through the door and needs to be managed strategically according to your budget. The amount of money spent on advertising can often be indicative of how motivated the vendor is to sell. The more a vendor spends out-of-pocket on advertising, the more invested they are in the selling process.
Due to the costs, vendor-paid advertising can be a controversial issue as some sellers feel they are paying to promote the branding of the agent/agency. As advertising outcome can also be difficult to track accurately, many sellers are not convinced of the return on investment. The good news is that more and more people are searching for properties online and internet advertising is a cost-effective option.
Irrespective of whether you have a mansion, a unit, a renovator’s delight or just a piece of land, invest in professional photography to make sure your asset is shown in the best light.
8. Getting too emotional and not listening to market feedback
Every home owner thinks their property is better than their neighbours’. Sometimes the emotional attachment to the property can cloud your judgement as a seller and prevent you from listening to genuine market feedback. A property ceases to be a ‘home’ and becomes a commodity as soon as it is placed in the marketplace. It needs to be marketed as a commodity and priced relative to competing properties to be attractive to buyers.
While it is not possible to be entirely objective, sellers need to try to take a step back and assess their situation in a business-like manner and take into account opportunity costs involved with a drawn-out sale. Time is money and there can be significant costs if a property lingers on the market.
9. Not timing the sale
Many sellers want to sell their property when it is looking its best. Hence spring and summer often see more listings than winter. However, timing the sale is not just about picking the nicest season. Sellers also need to consider the level of competition for their property at any given time. Keep in mind that in peak selling periods, your agent is likely to have more listings to look after and may not be able to focus 100% on your property.
10. Not having a Plan B
Sellers are optimists and often make the mistake of not having a Plan B. Make sure you know what your options are if your property does not sell. Having a Plan B is all about control and can prevent you from getting too emotional and from making knee-jerk decisions.
Oliver J. Stier is the director of <a title="OH Property Group" target="_blank" href="https://www.ohpropertygroup.com/">OH Property Group</a>. In addition to being a licensed real estate agent, he is also a chartered financial analyst. You can follow Oliver on Twitter at <a target="_blank" href="https://www.twitter.com/ohproperty">www.twitter.com/ohproperty</a>.
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Top 10 mistakes property sellers make

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It’s no secret that A-REITs were one of the hardest-hit asset classes during the GFC, and while A-REITs have taken the lessons from the GFC to heart, investor confidence has been slow to recover – and to reward the sector for its prospectively more stable business models and income streams.
While there is still need for investor caution, evidence is mounting that there are opportunities in the sector for those seeking income opportunities.
Today’s A-REITs are markedly more conservative than their pre-GFC incarnations. Pre-GFC, many A-REITs added leverage, increased their offshore investments, branched out into areas associated with less stable income streams, such as funds management and development, and became more aggressive in their earnings-to-dividends payout ratios.
Since this time, gearing ratios have returned to pre-GFC levels of about 30%, due to a combination of rebounding asset valuations and equity recapitalisations (rights issues). Several A-REITs have announced plans to wind down their overseas exposures and reduced or abandoned their efforts to pursue non-core fee streams. A-REITs are making allowances for capital expenditure and other expenditures while reducing earning payout ratios from nearly 100% during the market peak to the more sustainable level of 80%.
Australian property fundamentals are fairly strong with occupancy levels for core, major property types (office, retail and industrial) generally in excess of 90%, positive if modest pressure on leasing rates, and low overall levels of new supply. These fundamentals indicate a stable valuation outlook at the asset level, with future valuation gains to be driven by higher occupancies and slowly rising rents in the near- to mid-term.
Despite this, A-REITs underperformed their global peers during the GFC and have continued to do so during the global rebound. In fairness, US REITs have benefitted during the rebound from capital markets’ search for yield in the low-interest environment in the US, whereas A-REIT dividend yields in Australia are similar to those offered by term deposits.
That said, Blackstone’s bid for Valad Property Group at a greater than 50% premium to share price in late April may be interpreted as a sign international investors believe that in certain cases, the A-REIT share price discounts to net tangible assets (NTA) are exaggerated, and some represent buying opportunities.
Given the high degree of correlation between A-REIT and Australian equities performance, the major headwinds facing A-REITs are similar to those facing the Australian equity markets as a whole. These include: the drag of a high currency, modest though to positive non-mining related domestic growth, and uncertainty regarding the contagion effects of the European debt situation, sluggish US growth and a China slowdown.
In spite of these wider macro headwinds, there are a number of factors working in favour of A-REITs: the structural changes to A-REITs post-GFC, the stable outlook for Australian property fundamentals, the historical high component of income to overall return, and the current on-average modest discount of share prices from NTA. The combination of these elements means A-REIT shares now appear to offer a reasonable risk-return trade-off.
Martin Lamb is head of property, Asia-Pacific, for <a href="https://www.russell.com/au/" title="Russell Investments" target="_blank">Russell Investments</a>.
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Today’s A-REITs – slimmed down, more stable, but not without headwinds

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Charter Hall has reportedly sold a Hunter Street, Sydney office block at a loss.
Anchored by the Dymocks bookstore on the corner of Pitt Street, the B-grade building was bought for $41 million in 2007 from Dymocks, and recently old at $36 million, according to the Australian Financial Review.
The 1959 office block, which was refurbished in 1997, was on the unlisted fund’s books with a $35 million valuation as at December 2010.
Its buyer, Malaysia-based IGB Corporation subsidiary, Cititel, plans to convert the 12-storey building into luxury hotel, given the city now has a hotel shortage and high occupancy rate.
The building, with 5,436 square metres of space, was listed through Savills, who indicated on its March listing that they were seeking up to $40 million.
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Charter Hall sells B-grade Sydney office block for a loss

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Investors have begun snaring some quality industrial properties, as rentals begin to climb following a reasonably static past five years.
<img src="/images/stories/lang-chart-cropped.jpg">
As you can see from the table, this increase in activity has been reflected in the dominance of developers bringing new stock onto the market.
Plus, you'll notice that private investors have emerged as the major category of buyers for industrial property.
The current wave of development is catering for a much larger office component, relative to what is normally provided by industrial developers. So much so, it is now often as high as 40% of the overall building area.
This trend is being driven by occupiers wanting to combine their administration building, in top-quality accommodation, with their distribution facility, rather than leasing an outer-lying warehouse, and having their head office in a more traditional office location.
The bottom line is: many of the larger developments are occurring by way of a fully-integrated business park environment, catering for small- to medium-sized businesses.
 And this is providing investors with the opportunity to acquire affordable industrial properties, surrounded by all the amenities needed by those tenants who occupy them.
Chris Lang is a commercial property investor and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" target="_blank" title="Chris Lang's blog">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
 
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