Eddy Haddad's <a href="https://www.apartments.com.au/developers/level-33">Level 33</a> is levelling up its approved Wollongong development, as the coastal city south of Sydney continues to prove popular in the high-density development space.

Level 33, a longtime developer in the Wollongong area, has gone through the NSW Government's Housing Delivery Authority to upsize its approved two-tower development on the corner of Crown Street and Gladstone Avenue, just 100 metres from Wollongong Station.

The developer currently has approval for 252 apartments across two buildings rising to 19 storeys. It is now seeking approval for 33 and 38-storey towers that would deliver 467 apartments, including 67 affordable homes.

Designed by <a href="https://www.apartments.com.au/architects/bka-architecture">BKA Architecture</a>, the development would comprise apartments above a three-level podium with around 1,100 sqm of retail space, along with basement parking for 448 vehicles.

According to the Urban Design Report by BKA, the proposal has the capacity to "reinforce the precinct's identity by strengthening links between health, education, and transport services, while also contributing to Wollongong's ongoing evolution as a key regional centre."

Wollongong is somewhat in vogue. Between Level 33 and Urban Property Group, the two developers have several thousand apartments planned across the city.

Level 33 is currently delivering Easterly Wollongong, one of its most boutique projects to date with just 21 high-end apartments, as well as Atchison &amp; Kenny, a 329-apartment development due for completion later this year. The developer also plans to redevelop the 13,088 sqm WIN Grand megasite into a new $500 million precinct with nearly 600 apartments and has more than 900 apartments planned for the former Bunnings Warehouse site at the intersection of Gipps and Flinders streets.

Urban Property Group is also playing a major role in the city's transformation. Its five-tower Keira Place precinct will deliver more than 800 homes, and it has recently lodged plans for a further 300 apartments near Wollongong Station.

Joel Robinson

First look: Level 33 upsizes Wollongong apartment towers

Just a week after filing plans for the final stage of its major Keira Place masterplan, <a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has unveiled another significant housing proposal in Wollongong, this time targeting a prominent site opposite North Wollongong Station.

The developer has lodged a State Significant Development Application for a 38-storey mixed-use tower at <a href="https://www.apartments.com.au/new-apartments/4-4a-flinders-street-north-wollongong-nsw-2500">4-4A Flinders Street</a>, around one kilometre north of the <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place precinct</a> currently taking shape on the edge of the CBD.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="2b6428f1-6405-4038-8476-897de440e90d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium.png?VersionId=QLqEvK0OuCEwRC47oHNftrw2B1YqaHF8" />

Designed by Studio.SC, the proposal comprises a 38-storey mixed-use development containing 303 apartments, including 45 affordable housing units, alongside 174 co-living residences. The scheme also includes ground-floor retail space, extensive landscaping and public domain improvements.

Studio.SC noted in the proposal it "outlines a vision for a landmark transit-oriented mixed-use development centred around North Wollongong Station, designed to support the city’s future growth while responding to the NSW Government’s housing and planning reforms."

The architecture firm said the proposal responds to the opportunities and constraints shaping future growth within the 400-metre catchment of the station and represents "a coordinated and future-focused approach to urban intensification, contributing to the long-term evolution of North Wollongong as a connected, walkable and high-density station precinct."

The site occupies a strategic corner bounded by Flinders Street, Station Street, Stafford Street and the Princes Highway, directly opposite North Wollongong Station.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="7863adad-1f71-4022-b850-f44b252738fd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium%20a.png?VersionId=WsU7av0g8_8R2tGHWxgHeFSlhu7yeY1V" />

The proposal follows Urban Property Group's recent submission for the second and final stage of Keira Place, which would deliver a further three buildings comprising 657 homes opposite Beaton Park. It builds on the first stage, which features 150 apartments across two towers and recently commenced construction.

Urban Property Group CEO Patrick Elias said breaking ground on the first stage marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/urban-property-group-unveils-trio-of-towers-for-next-stage-of-new-wollongong-precinct-keira-place">Urban Property Group unveils trio of towers for next stage of new Wollongong precinct, Keira Place</a>

First look: Urban Property Group plans next major Wollongong tower

<a href="https://www.apartments.com.au/developers/arada">Arada</a> has wasted little time expanding its ambitions in Campsie, lodging plans for a second major project in the rapidly transforming town centre just months after unveiling its three-tower One Campsie proposal on Beamish Street.

The UAE-backed developer has now taken aim at one of the suburb’s most strategically positioned sites, filing a State Significant Development Application for a <a href="https://www.apartments.com.au/new-apartments/10-north-parade-campsie-nsw-2194">33-storey mixed-use tower</a> at 10 London Street and 43 North Parade, directly opposite the future Campsie Metro Station. The proposal is currently on public exhibition and represents another significant vote of confidence in Campsie's emergence as one of Sydney’s key transit-oriented growth centres.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the development would deliver 156 apartments above a podium containing retail and commercial space, creating a new residential and commercial gateway to the town centre. The scheme also includes a four-level above-ground parking podium and a dedicated residential amenity floor featuring wellness and recreation facilities. At least 10 per cent of the apartments would be allocated as affordable housing for a period of 10 years.

The proposal occupies a 1,631 sqm site bounded by London Street, North Parade and Dispensary Lane, immediately adjoining the future Metro station precinct and just metres from Beamish Street’s retail and dining strip. According to the Urban Design Report, the project seeks to deliver "a great place that prioritises human-scaled experience and provides spatial improvements to the area."

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="175a8324-015b-4856-abe3-ce6f23199fa7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium%20campsie.png?VersionId=742UGwXFhFBX4GEl6wX4PYIWREAgn6il" />

Woods Bagot describes the tower as a key marker within Campsie's next phase of growth.

"Located directly opposite the new Campsie Metro Station on North Parade, 10 London Street is a thoughtfully composed 33-storey mixed-use tower that contributes to the ongoing transformation of the town centre," the Architectural Design Report states. The report says the project is intended to provide "high-quality homes within a vibrant, connected urban environment, while helping define Campsie's future skyline."

A strong emphasis has been placed on the public realm. The ground floor incorporates over 500 sqm of retail space and active frontages along both London Street and North Parade, while the podium is wrapped by extensive landscaped planting intended to soften the building's scale and strengthen the pedestrian experience. The development would also widen surrounding footpaths and improve connections between the Metro station and the broader town centre.

Above the podium, residents would have access to more than 1,400 sqm of communal amenities, including a pool, gym and landscaped recreation spaces. A distinctive green-wall treatment extending across four podium levels forms a major architectural feature, helping differentiate the project within the emerging high-density precinct.

The tower's design is closely tied to the broader Campsie Town Centre Master Plan and the arrival of Sydney Metro. The Urban Design Report notes the proposal "directly supports the Campsie Town Centre Master Plan by delivering new homes in a location explicitly identified for growth, improved accessibility, and high-quality urban renewal." It adds that the project contributes to the master plan's vision for a strengthened town centre supported by thousands of new homes around the future Metro station.

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="bfd17654-253e-489a-bade-6278d63db412" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/base%20campsie.png?VersionId=3roJPMQGs36dazpkhvpvbDDP73Ld.Ica" />

The application follows Arada's recently lodged One Campsie project at 124–142 Beamish Street and 16–18 Ninth Avenue, where the developer is seeking approval for 346 apartments across three towers rising 24, 32 and 39 storeys. Together, the two proposals would cement Arada as one of the most influential developers shaping Campsie's future urban form.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-arada-files-for-trio-of-apartment-towers-in-campsie-town-centre">First Look: Arada files for trio of apartment towers in Campsie town centre</a>

Arada entered the Australian market in 2024 and has rapidly assembled a significant development pipeline across Sydney. Alongside its Campsie holdings, the developer is soon to launch <a href="https://www.apartments.com.au/new-apartments/wattle-green-2-fishburn-crescent-castle-hill-nsw-2154">Wattle Green</a> in Castle Hill, and has expanded its local operations following its acquisition of construction firm Roberts &amp; Co.

Located around 14 kilometres south-west of the Sydney CBD, the site sits at the centre of one of Sydney's fastest-changing middle-ring precincts. The Metro conversion of Campsie Station, combined with Canterbury-Bankstown Council's master planning framework, is driving significant residential intensification around Beamish Street and North Parade, with thousands of new homes expected over coming decades.

First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans

For the first time in a long time, Australia's inflation story is starting to look more like a landing than a fight.

The latest Consumer Price Index figures from the Australian Bureau of Statistics showed annual inflation eased to four per cent in May, down from 4.2 per cent in April. On the surface, that might not seem like a major move. Inflation remains above the Reserve Bank's target range and some categories continue to record stubborn price growth.

But the significance of this result lies less in where inflation sits today and more in what it means for where interest rates are likely heading next.

The biggest takeaway is that inflation continues to move in the right direction.

Markets had been bracing for another sticky result after a period where progress appeared to stall. Instead, headline inflation came in softer than expected, helped by falling fuel prices and easing transport costs. Annual transport inflation halved from 6.6 per cent in April to 3.3 per cent in May, while automotive fuel prices fell 11.9 per cent during the month following lower oil prices and the impact of reduced fuel excise measures.

While petrol prices don't solve Australia's affordability challenges, they are one of the most visible and immediate costs for consumers. Falling fuel costs feed through the economy quickly, helping ease pressure on household budgets and business operating expenses.

The ABS data also showed headline inflation is now sitting at its lowest annual level in several months, reinforcing the broader trend that price growth is gradually moderating.

That trend is important because it aligns with what many economists and lenders have been saying for the last month.

Prior to this week's inflation data, ANZ, NAB and Commonwealth Bank had all shifted their forecasts, now believing the Reserve Bank had likely reached the peak of the interest rate cycle. Following the May inflation release, ANZ reaffirmed that view.

In its latest economic update, ANZ said it expects quarterly trimmed mean inflation to come in at 3.7 per cent for the June quarter, slightly below the Reserve Bank's forecast of 3.8 per cent. Importantly, the bank said that outcome, when combined with slowing economic activity, "supports our view that the cash rate has peaked".

The Reserve Bank has spent the better part of three years attempting to bring inflation under control through higher interest rates. If Australia's major banks are correct and rates have now peaked, the conversation shifts from how much higher rates could go to when they might begin coming down.

Westpac's caution comes from underlying inflation. The trimmed mean, the measure most closely watched by the Reserve Bank, increased from 3.4 per cent to 3.6 per cent annually. Housing inflation remains elevated at 6.5 per cent, reflecting ongoing increases in rents, electricity costs and new dwelling construction.

Electricity prices remain particularly problematic, rising 21.1 per cent over the past year following the removal of government rebates.

Housing construction costs are also showing signs of renewed pressure. ANZ noted new dwelling costs rose 0.9 per cent in May and are now running at an annualised pace of 8.6 per cent over the past three months. Builders continue to face higher labour, fuel and material costs, a reminder that inflationary pressures have not completely disappeared.

Housing affordability has deteriorated largely because of higher interest rates rather than higher property prices alone. Even modest reductions in mortgage rates would improve borrowing capacity, increase buyer confidence and reduce repayment pressure on existing homeowners.

While August is far from a certainty, the latest inflation result has strengthened the view that the next move in rates is more likely to be down than up. For borrowers, buyers and the development sector, that alone represents a significant shift from the conversation that dominated much of the past two years.

The inflation result the property market was waiting for

Commercial property group FiveX is doubling down on its move into the residential space.

The group, founded by Joshua and Marko Berger more than five decades ago, has followed up its plans for a 39-storey tower on North Sydney's Alfred Street with a proposed 61-storey tower in Chatswood.

The new tower at <a href="https://www.apartments.com.au/new-apartments/815-pacific-highway-chatswood-nsw-2067">815 Pacific Highway</a>, which would be one of the tallest proposed in Chatswood in recent years, will comprise 490 apartments, 76 of which will be dedicated affordable housing and managed by Evolve Housing for a minimum of 15 years.

The project will replace the long-standing Panorama Building, originally known as the BMA Tower, a 14-storey office building completed in 1972 and designed by Hungarian-born architect Hugo Stossel. At the time of its completion, the building was the tallest structure in Chatswood and became a local landmark due to its distinctive curved form and external glass lift.

<img alt="FiveX" data-entity-type="file" data-entity-uuid="956bd299-3864-47a0-8ea6-162b5524c5d8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%201.02.03%E2%80%AFPM.png?VersionId=EWx7teUr7RcYrI9mgRytwppwt5AdUDtb" />

fjcstudio is behind the designs. Its Architectural Design Report argues the ageing commercial building no longer reflects Chatswood's role as one of Sydney's key strategic centres and that the site is ideally positioned to support significantly higher residential density.

"The site is located at the heart of Chatswood, within the TOD accelerated rezoning area that supports higher density development around the new Metro station," the report states.

"The site's role within a walkable 400-metre radius catchment is where housing, employment, retail and community uses are encouraged to cluster in support of transit-oriented living."

<img alt="fjc" data-entity-type="file" data-entity-uuid="8d198f5e-cc71-4175-9357-be6ec7207473" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%201.18.27%E2%80%AFPM.png?VersionId=5WUFc3IYBPvhQMBUYLCsjJhzdcVeYodE" />

The proposal has undergone two rounds of review by the NSW State Design Review Panel, with the design evolving through an extensive assessment process focused on design excellence, public realm outcomes, residential amenity and the integration of affordable housing.

fjcstudio says the residential component provides a diverse mix of apartment typologies, supporting a broad demographic and contributing to housing supply in a highly accessible location close to major transport, employment and retail infrastructure.

The application follows FiveX's plans for a 39-storey tower at <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">275 Alfred Street</a>, which it <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">submitted through the same NSW Government pathway</a> in December. That's for 184 apartments.

Recent activity in Chatswood includes Hyecorp launching its Archer Street project, Celine, and Develotek securing approval for a 34-storey tower.

First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney 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>

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Ellen Walker

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

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<h2>OPINION:</h2>

At present we are being bombarded with various opinions on what <a href="/industry-news/how-are-real-estate-agents-assisting-during-the-covid-19-crisis">this global pandemic</a> means for the economy and subsequently the merits of investment.

With any investment, timing can be vital.

We find ourselves in interesting times, I say interesting rather than the current buzzword, ‘unprecedented’, because I tend to disagree with those in the ‘unprecedented’ camp.

Movement in the <a href="https://www.asx.com.au/">Australian Stock Exchange (ASX)</a> has been volatile since 21st February 2020, a date that is widely accepted by the investment community as when the COVID-19 effect first appeared.

On that day the ASX closed at 7,139 and fell to a recent low of 4,546 on the 23rd March 2020, since that time it has rallied somewhat but has been characterised by unpredictability.

<h2>What about other markets?</h2>

They all fell. Defensive stocks, government backed securities, hybrids, property. The lot.   
We can observe our most recent global crises for a clue here and this is also why I believe that our current situation is not ‘unprecedented’.

“In October 2008 all markets – gold included – fell sharply as the credit markets seized up. At the time gold was being sold as investors sought funding to shore up losses in other markets. The U.S. government began working on bailout plans in October 2008, which was the depth of the global financial crisis.”   
Debbie Carlson, Kitco Metals Inc.

Sound familiar?  We have already seen bond spreads wider than during the Global Financial Crisis (GFC), a marker of fear and uncertainty.

<h2>Property markets</h2>

I remember when the GFC impact reached our shores, discussing its impact with clients and undertaking many valuations of security property assets. Many were worried, most were at least concerned.

Let me provide an example.

In early 2009, Client ‘A’ was a High Net Worth individual earning in excess of $400,000 per annum.

He was married with two children in private school and was considering the purchase of a holiday home in a coastal area.

We had a valuation of his home (located in Melbourne’s inner East) on file no more than 12 months old that ascribed a value of $2.8 Million to the property.

As part of our due diligence on the possible transaction we revalued his home.  A valuer for the same lender came back with $2.2 Million.  This triggered a candid conversation and one which I draw on in these current ‘interesting’ times.

In short, this client backed himself.  He considered things carefully and was confident that the real estate he was buying was good value (due to market conditions) and his own home would rebound.  Most importantly he was confident he could meet the repayment obligations.

I am pleased to report that this client has since acquired the property next door to his holiday home and also extensively renovated his own place.  I might add we re-valued that property prior to the renovation at $3.5 M in 2017 using the same valuer.

This is merely one example, there are many variations on this theme and also examples of where people got spooked and fled the market, only to buy in again at inflated values later.

The thing that most of us should have learned in the GFC is that property markets, like all markets can go down. It is the purpose for which you are investing that needs to be considered as well as your own capacity.  In my example this client had a long term view and confidence in his ability to repay so has managed to reap the rewards.

Currently, low interest rates are making investment in quality property more affordable.  The general consensus is that <a href="https://www.theguardian.com/australia-news/2019/oct/01/reserve-bank-cuts-interest-rates-to-historic-low-of-075-to-boost-flagging-economy">interest rates will remain low for some time</a>.

It is also evident that there are some good buying opportunities emerging, as Jarrod McCabe from Wakelin Independent Property Advisory, stated in a recent webinar entitled, ‘Covid 19 and property investment on the 31st March 2020.’

‘I think it is probably inevitable that there is going to be some form of contraction (in residential real estate prices), to what level at this stage it is probably a little but too early to tell.’

He went on to say that a clear picture is likely to emerge after the Easter break.

<h2>How are Lenders Responding?</h2>

As part of my professional practice I hold daily conversations with decision makers across credit markets.  These men and women are charged with assessing applicant’s ability to borrow to support personal, business and investment proposals, including real estate.

Some of these conversations are now feeling eerily like the beginning of the GFC, funders are tightening their assessment criteria and applications that may have sailed through pre-Covid 19 are now being carefully scrutinised.  Several sent out revisions to policies last week.

I can hear some of you thinking, ‘but the <a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">Government is backing the economy</a>’.  I would urge you all not to fall into a false sense of security just because the Treasurer has opened up his (or someone else’s) chequebook.  It is always the case that debt obligations are just that, obligations.

Money apparently does not grow on trees.

<h2>What does this all mean?</h2>

What no one can predict with accuracy is how long these ‘interesting ‘times will stay. 
The way in which you choose to react will be the litmus test.

When the cloud passes over and better times return we will all no doubt reflect on how we did react.  Whilst you are ‘ in the moment ‘, remember;

<ul>
<li>Markets will rise and fall.</li>
	<li>Good property is still good property and the same for bad property.</li>
	<li>Test your credit capacity if needed as the rules are changing.</li>
	<li>Trust good advice and good instincts, you can rely on both.</li>
</ul>
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Melvie

Investing in Real Estate during an uncertain environment 

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<h2>OPINION:</h2>

In unprecedented times the <a href="https://str.com/data-insights-blog/coronavirus-hotel-industry-data-news">accommodation industry </a>faces a massive downward trend in occupancy and income, and like most businesses that are considered as “non essential”.  
However, tourism is a <a href="https://www.rba.gov.au/publications/bulletin/2011/dec/pdf/bu-1211-3.pdf">major contributor</a> to the Australian economy and now more importantly owners/operators and landlords must look ahead and how they position themselves when restrictions are lifted and holiday makers, business and leisure can recommence.

This is the opportunity to consider your developments and its best use, the location, demographic, brand proposition and structure. Does your hotel need to be rebranded, refurbished or needs to sell as a result of Covid19? Or does your development upon feasibility conduct support a new build of hotel accommodation which subsequently requires Hotel Operator Selection? If yes, is your answer then it is the best time now to determine and carry out the necessary steps. 

Hotel Operators are seeking sites and have the time now to use their resource to determine if their brand marries up with your asset. Typically this would involve a full comprehensive campaign with an appropriate consultant that would seek all operators nationally and internationally to express their interest. This is not limited to a <a href="/developments">new development</a> it may mean that your existing asset requires to be rebranded to get the best use and distribution which also involves refurbishment. 

Operators will work cohesively with the owner to ensure the brand is delivered aesthetically and within the DNA. Whilst this creates and leads into refurbishment now is the best time given that there is no concern of operating and disruption to the operations of the business.

I have also broken down into three structures that hotel assets are generally set up and also requires consideration on what suits you best as an owner and your own risk profile as each one does vary.

1. Hotel Management Agreement

This is the preferred model by most <a href="/news/hotels-hotels-hotels-why-so-many-new-hotels">Hotel</a> Operators, they manage the property on your behalf with agreed commercial terms that are negotiated through and prior to any commencement. 

Typically management agreements can be fixed for the first option of 15 years or 10 years with further options of 3 x 5 or 2 x 15 years or 3 x 10 year options.

The operator’s remuneration is by way of fees, generally made up of a guaranteed base amount, calculated as a percentage of revenue from the hotel business, and a performance incentive element paid if gross operating profit exceeds an agreed threshold.

The owner is still responsible for the working capital and delivery of the product of the agreed brand to its appropriate standard. Generally there are Furniture Fittings &amp; Equipment Reserve to ensure that the product doesn’t get diluted over time and can maintain its standards.

2. Lease

both the owner and the tenant like to see an extended lease and similarly to a Hotel Management Agreement and sometimes longer i.e. 40 years. Ideally no party would like to see a lease less than 25 years, and in my opinion when the lease reduces and gets to a 20 year term the best practice is to renovate your lease terms again. The length of your lease underpins the value of your business and vice versa for the landlord. 

3. Management Rights

This structure is normal practice in states such as QLD however we are increasingly seeing this structure come into new developments as developers are selling the management rights business off the plan. That being said it is best to seek appropriate advice if this is the best strategy and each state has different laws. Management Rights have two components, the exclusivity to operate a hotel letting business via short term serviced apartment or hotel rooms, and to conduct the caretaking. The other is associated real estate assets required to operate the business such as reception, office and or restaurant. 

However you look at it is in my opinion that as a hotel owner, developer or landlord if any of the above mentioned was earmarked, strategically planned for the future or was put on hold, maybe reconsider your options as much as accommodation is closed for business the behind the scenes are still very much open for business and the opportunity still presents itself to explore your options as its night an overnight result it takes time and planning.
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Concerned about your hotel development during COVID-19? A lesson from hotel broker Michelle Matthews

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<h2>OPINION:</h2>

Now more than ever we will evaluate what is really important to us. Amongst the chaos and <a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">uncertainty</a>, how can we work towards a secure future?  What is the right secure future for us?

There is something very secure about a good old fashioned brick and mortar investment.  

During difficult times it is comforting to return to a <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">home you own</a>. A safe place where you can cultivate your lifestyle and personality in the way that you choose.  Hang those precious memories, paint or wallpaper the walls – or not, it doesn’t matter, you can create your own style, your own sanctuary, your own safe haven.  

Owning your own home fulfils fundamental needs as outlined in Maslow’s “<a href="https://www.thoughtco.com/maslows-hierarchy-of-needs-4582571">Hierarchy of Needs</a>” and for many, their home is a status symbol or a financial vehicle in which to grow wealth and success.

Driven by these fundamental human needs it is vital that we have a practical and financially viable plan to obtain these goals.

<h2>How do I know I’m making the right decision to go from renter to owner?</h2>

Research, then apply practical financially viable solutions. If you can afford to pay rent, chances are you can afford to pay a mortgage. Run the numbers. Get good financial advice, speak to a financial planner, an accountant, a bank manager and make a plan for the future.  Know what your <a href="http://How%20do%20I%20know%20I%E2%80%99m%20making%20the%20right%20decision%20to%20go%20from%20renter%20to%20owner?%20%20Research,%20then%20apply%20practical%20financially%20viable%20solutions.%20If%20you%20can%20afford%20to%20pay%20rent,%20chances%20are%20you%20can%20afford%20to%20pay%20a%20mortgage.%20Run%20the%20numbers.%20Get%20good%20financial%20advice,%20speak%20to%20a%20financial%20planner,%20an%20accountant,%20a%20bank%20manager%20and%20make%20a%20plan%20for%20the%20future.%20%20Know%20what%20your%20commitment%20will%20cost%20not%20just%20mortgage%20payments%20but%20include%20stamp%20duty,%20rates,%20insurance%20and%20body%20corporate%20fees.%20%20The%20Reserve%20Bank%20Australia%20(RBA)%20predicts%20a%20shortfall%20in%20housing%20(Financial%20Review,%202019).%20%20With%20record%20low%20interest%20rates,%20record%20first%20home%20buyers,%20population%20growth,%20high%20immigration*%20(COVID-19%20restrictions%20will%20not%20last%20forever)%20and%20increased%20renters%20the%20data%20indicates%20that%20if%20you%20have%20a%20secure%20income%20that%20you%20should%20consider%20the%20following%20tips%20and%20purchase%20once%20this%20immediate%20unsettling%20time%20has%20passed.%20Yes,%20we%20are%20experiencing%20a%20pandemic%20with%20a%20recession%20looming%20but%20our%20economy%20is%20cyclic.">commitment will cost</a> not just mortgage payments but include stamp duty, rates, insurance and <a href="/guides/how-much-can-i-expect-to-pay-for-owners-corporation-fees">body corporate fees</a>.

The Reserve Bank Australia (RBA) <a href="https://www.afr.com/policy/economy/rba-tips-housing-supply-shortfall-20191016-p531az">predicts a shortfall in housing</a> (Financial Review, 2019).  With record low-interest rates, record <a href="/guides/how-to-buy-a-house-in-2021-a-guide-for-first-time-home-buyers">first home buyers</a>, population growth, high immigration* (COVID-19 restrictions will not last forever) and increased renters the data indicates that if you have a secure income that you should consider the following tips and purchase once this immediate unsettling time has passed. Yes, we are experiencing a pandemic with a recession looming but our economy is cyclic.

<h2>Buying a medium to long term investment</h2>

Over the past 30 years, Australian housing prices have <a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/publications/bulletin/2015/sep/3">increased on average by 7.25 %</a> per year (RBA, 2015). Statistics historically tell us that provided you are buying a property as a medium or long term investment where you can choose your time to sell you will not lose.  If you are buying a short term prospect you need to do more to ensure a return on investment, such as the following;

* Australia’s population continues to grow and 231,937 people migrated from overseas in 2019 (Australian Bureau of Statistics, 2019).All these people need homes.

<h2>Buying like a pro</h2>

<ul>
<li>Negotiate.  </li>
	<li>Purchase below market value.</li>
	<li>Take advantage of stamp duty savings and other government grants.</li>
	<li>Build relationships with real estate agents and experts to find off-market opportunities and distressed sales. Consider if a buyers advocate would be beneficial in your situation.</li>
	<li>Ask for both a property and a council <a href="/guides/top-7-tips-on-how-to-value-a-house">valuation</a> and determine the price per square metre in that suburb for that type of property, for example, new or renovated apartment price per square metre or renovated or un-renovated house price or land value per square metre.</li>
	<li>If <a href="/guides/how-to-ensure-the-off-the-plan-investment-property-you%E2%80%99re-buying-is-of-high-quality">buying off the plan</a> or a new build ensure that you are purchasing a high-quality build from a reputable developer.</li>
</ul>
<h2>Do your research</h2>

<ul>
<li>Purchase through the lens of an investor, you must do this first and then you can allow yourself to fall in love with your purchase.  </li>
	<li>Purchase property where the price is likely to increase, for example, purchase in a <a href="/buildings/nbh-at-lachlan-s-line-25-27-epping-road-macquarie-park">rising suburb</a> or an upcoming lifestyle development.  </li>
	<li>Buy in an area that is about to be transformed due to new or special amenities such as a well-regarded school, a new tram line or other infrastructure upgrades.  </li>
	<li>If rental vacancies are low and neighbouring suburbs are already in demand these are good indicators.</li>
	<li>Research the specific market you are buying in, some suburbs have their own unique cycles or are seasonal.</li>
	<li>Research and obtain sold property prices through publications online.</li>
	<li>Research buyer needs. If you resell what will these buyers be looking for and therefore what will give you the best return on investment.</li>
</ul>
<h2>Buy something that you can capitally improve</h2>

<ul>
<li>If you can undertake a major renovation to maximise your return on investment, great, but you don’t have to undertake a full renovation. <a href="/expert-insights/buying/essential-household-items-for-your-new-apartment">Small cosmetic improvements</a> and styling can also yield great results.  There are plenty of television shows and publications on this topic alone #The Block.</li>
</ul>
<h2>Buy something that generates income to help pay the mortgage</h2>

<ul>
<li>Can you rent out a room to a friend, family member or colleague?  </li>
	<li>Does the property have a car space or garage you can rent out?  </li>
	<li>Can an inner city apartment be set up as an office to rent out during business hours while you are at work?</li>
	<li>Can you build a studio over the garage or a “granny flat” that can generate rental income?</li>
	<li>Speak to your financial adviser or accountant as there may also be tax benefits if you work from home and/or if your home is generating income.</li>
</ul>
<h2>Learn from the past</h2>

My Nanna provided me with many <a href="/guides">buying tips</a> before I even understood real estate.  “Buy close to the city or the water (in her case both), buy close to amenities, and buy the worst house on the best street”. That is what she did, then subdivided, renovated and bought and sold until she had enough equity to diversify and build a portfolio rather than always continue to sell. Nanna was an accountant and what we would now dub as environmentally conscious.  “Buy what you can afford, live within your means, replace only what you need and repair what you can”.  Boring? Maybe - but after living through World War II she had learnt to find happiness in life’s simple pleasures and did not seek constant and instant gratification. buyinIn many ways COVID-19 with its threat to our existence and wellbeing, with its restrictions and rations, we are now experiencing some of what our ancestors did during war times.

<h2>Commit to your future</h2>

If you can’t afford to buy where you want to live you can purchase an investment property and rent at the same time.  Eventually you will build enough equity to buy where you want to live. Just make a commitment to start somewhere.

Some renters don’t realise that once they put down a deposit that they could be paying the same amount in rent as what they could be paying in mortgage repayments and hence they can potentially be missing out on capital growth and other financial benefits. Ideally a 20% deposit to avoid mortgage insurance is optimal and understandably saving a 20% deposit for many people is a long daunting task but there are options and you should speak to your financial planner or finance broker. You may have to pay a little more on a mortgage as opposed to paying rent but a little short term sacrifice for long term gain will be worth it.  
That said, you must make sound financial decisions and have provisions if interest rates go up. You don’t want to be forced to sell in a downturned market.

Speak to your bank manager or financial advisor about different mortgage options such as variable and fixed rates. Despite COVID-19 we are blessed to be living in a country like Australia where there is <a href="https://www.health.gov.au/news/health-alerts/novel-coronavirus-2019-ncov-health-alert/government-response-to-the-covid-19-outbreak">government support</a> during times of economic difficulty and banks can provide bank holidays for those mortgage payers during financial hardship.

We may be experiencing a pandemic with a recession looming, but our economy is cyclical. Run the numbers, seek financial advice but remember, over time the property market only goes in one direction and that is up.

We live in a world where we can easily access data and services so do your research and become financially savvy. COVID–19 may have given us the pause we need to evaluate what is important and forge a plan for the future. A plan that gets you on the property ladder and on your way to financial and emotional security in the form of a home, a safe haven and a financial vehicle in which to grow wealth and success for a secure future.

*Seek professional financial advice from a qualified advisor to determine what is right for your individual needs.

<h2>References</h2>

<a href="https://www.abs.gov.au/ausstats/abs%40.nsf/mediareleasesbyCatalogue/CA1999BAEAA1A86ACA25765100098A47">https://www.abs.gov.au/ausstats/abs%40.nsf/mediareleasesbyCatalogue/CA1999BAEAA1A86ACA25765100098A47</a>

<a href="https://www.afr.com/policy/economy/rba-tips-housing-supply-shortfall-20191016-p531az">https://www.afr.com/policy/economy/rba-tips-housing-supply-shortfall-20191016-p531az</a>

<a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/publications/bulletin/2015/sep/3">https://www.rba.gov.au/publications/bulletin/2015/sep/3.html</a>

<a href="https://www.realestate.com.au/sold">https://www.realestate.com.au/sold</a>

<a href="https://www.thoughtco.com/maslows-hierarchy-of-needs-4582571">https://www.thoughtco.com/maslows-hierarchy-of-needs-4582571</a>

<a href="/guides/how-much-can-i-expect-to-pay-for-owners-corporation-fees">https://www.urban.com.au/guides/how-much-can-i-expect-to-pay-for-owners-corporation-fees</a>

<a href="/buildings/nbh-at-lachlan-s-line-25-27-epping-road-macquarie-park">https://www.urban.com.au/guides/9-ways-to-tell-if-you%E2%80%99re-buying-a-property-in-a-rising-suburb</a>

<a href="/guides/how-to-ensure-the-off-the-plan-investment-property-you%E2%80%99re-buying-is-of-high-quality">https://www.urban.com.au/guides/how-to-ensure-the-off-the-plan-investment-property-you%E2%80%99re-buying-is-of-high-quality</a>

Maslow, Abraham Harold. “A Theory of Human Motivation.” Psychological Review 50.4 (1943): 370-396.
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Your home is your safe haven: Could COVID-19 encourage more renters to purchase property?

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<h2>OPINION:</h2>

Home Loan market summary

In the last few years, we’ve seen a time of upheaval in the <a href="/guides/how-to-choose-the-right-home-loan">home loan market</a>.  From government clampdowns via APRA on Interest Only and Investor Lending in 2014, which resulted in interest rate differentials between investment loans compared to owner-occupied loans, and saw <a href="/guides/top-7-tips-on-how-to-value-a-house">property prices</a> drop around the country. These restrictions were then lifted during 2018 with the aim of stabilising these property price falls. Around the same time, from December 2017 and running for 14 months we had the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry which handed down its final report in February 2019. After this we had the inevitable fallout as non-acceptable culture and behaviour was exposed, and now just when things were looking to return to a more normal period, we have the unforeseen and <a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">devastating Coronavirus</a> which is impacting us all worldwide. So, what to make of all this?  Changes in home loan requirements

An outcome of all the above has been a <a href="https://www.canstar.com.au/home-loans/expenses-cost-a-home-loan/">renewed focus on living expenses</a> as part of a Banks approach to home loan assessments, with them generally looking at an applicant’s Bank statement transactions over the three months prior to the application, in order to make an assessment of where spending has gone. Will spending factors during self-isolation affect our ability to secure a home loan?

The <a href="https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/a-global-view-of-how-consumer-behavior-is-changing-amid-covid-19">spending people</a> do now, in this period of Isolation, will have an effect on their standing as a home loan customer when this period of COVID-19 imposed restriction lifts. Being confined to home, it may be tempting to hit the internet, shopping from home using ZipPay, Afterpay, etc and ordering in food, all these debts that appear on your Bank Statements will be factored in when assessing a home loan application. Additionally, Banks are now starting to look for increased documentation, particularly for applicants that are employed in industries that have been significantly affected by restrictions, such as Tourism and travel-related services, Hospitality, Retail sales sector, and others. In the more extreme cases, income earned from applicants who are still employed in these industries is not even being considered by some Lenders.

As this period of <a href="https://www.health.gov.au/news/health-alerts/novel-coronavirus-2019-ncov-health-alert/how-to-protect-yourself-and-others-from-coronavirus-covid-19/limits-on-public-gatherings-for-coronavirus-covid-19">social and trading restrictions</a> continue, then it is not unreasonable to expect more and more lenders to get tougher in their assessment criteria, all of which means it is going to get harder, particularly for some, to <a href="https://www.finder.com.au/home-loan-eligibility-calculator">qualify for a home loan</a>. While some people, not unexpectedly, might put their <a href="/guides/20-things-you-should-look-out-for-before-you-buy-property">property purchase</a> plans on hold for a period of time, there are still many people who already have home loans that are wanting to take advantage now of the historically low-interest rates, and even though they might still be employed, there is a chance they are going to find it harder to get a new home loan approved. No matter if you want to <a href="/guides/how-to-secure-a-mortgage-free-lifestyle-sooner">refinance</a>, or purchase a property, it really is a time to get back to basics, as much as possible during this trying period. Keep an eye on discretionary spending, take advantage of as much of the Government help that is available to you, and talk to your bank early if you do need to discuss what they have on offer in terms of home loan payment relief. 
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How our spending habits during self-isolation will influence our ability to secure a home loan

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The sidewalks of my suburb are narrow and hard to negotiate on any normal day, and today is not a normal day. There’s a couple with a pram walking towards me, presenting a potential hindrance to my 1.5m bubble. I take to the street. It’s not a main road but it’s a well-known thoroughfare and usually it is filled with cars carefully manoeuvring their way between oncoming traffic and parked cars. Usually. 

From this point in the middle of the road I can see right down the street to the intersecting perpendicular main roads at either end. I see people passing through the street at odd points and some such as me, are walking down the middle. There are no cars coming, none retreating. 

Did it take a <a href="/expert-insights/buying/how-will-the-coronavirus-impact-australia-s-property-market">global pandemic</a> to give the streets back to people? 

In a time when everything we do is now magnified, examined and in many cases banned. The simple acts of triumphant togetherness feel warm and fuzzy. Our streets are now mapped by teddy bears, waving from their postings in the windows of houses. They mark a new path through the streets for the littlest in our midst. Rainbow paintings accompany them, stuck to windows and fences and <a href="https://www.thecourier.com.au/story/6707866/rainbow-girl-adds-sunshine-to-lives/">colourful chalk motifs carve a joyful route</a> offering the passerby a game of hopscotch on their journey. 

The signage too is changing. There are messages hanging from balconies, wisdom wrapped around telephone poles and reminders to keep our distance are plastered to the walls. 

They shout words of encouragement from the surfaces of the public realm. 

“We got this"  
“Power to the people”  
“This too shall pass” 

A sense of camaraderie washes through the streets. The uniting togetherness of a common lived experience, one that we are desperate to permeate outside our private domains. The world is closed and yet, people are everywhere. In message or in person, the public realms are filled with encouragement.

<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/the_changing_face_of_our_streets2_0.jpg" rel="gallery-all" title="Pablo Neruda Poem on a vacant shop front. Image Credit: [Julia Frecker]"><img alt="" class="image-article-full-width-580px" height="491" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/the_changing_face_of_our_streets2_0.jpg?itok=lm-RMgKk" title="Pablo Neruda Poem on a vacant shop front. Image Credit: [Julia Frecker]" width="580"></a>

<figcaption>Pablo Neruda Poem on a vacant shop front. Image Credit: [Julia Frecker]</figcaption></figure>An issue for Australians can be that, if you give us an inch, we’ll take a mile, and there have been concerns about the large rush of people striving to do outdoor activities in the light of the recent advice. However, as people try to handle the balance of <a href="/news/how-to-effectively-manage-a-remote-workplace-during-social-distancing">working from home</a>, staying sane and for many managing children as well, solace can be found in our government sanctioned ‘outside time.’

The uptake in outdoor exercise has been inconceivable. Local Council’s have been trying to prevent some scarcely populated parks from becoming rubbish dumping wastelands for years and now they are filled with people. People who are steadfastly running their personal bootcamp for one, utilising the street infrastructure and turning them into exercise implements. Cricket pitches have been set up in laneways, and basketball hoops have been affixed to garage doors. When everything is closing in around us, we are desperately clawing out saying “No, I will have a shred of autonomy!”  

Cities are a gift. In times like this they can be scary, teeming with people and risk. However, people are a gift and the uptake in neighbourly enterprise has been striking. They include letterbox drops to the elderly or next-door neighbours leaning on their mutual fence to have a yarn. It is noticeable when walking down the streets, more people are sitting on front balconies, terraces and lawns. They are looking for a person to lock eyes with, enjoying a break in the sun, on a Zoom call from their front gate or sharing a drink over the back fence.

<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/the_changing_face_of_our_streets3.jpg" rel="gallery-all" title="Shout Out Loud Print contributing to the community messaging. Image Credit: [Julia Frecker]"><img alt="" class="image-article-full-width-580px" height="435" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/the_changing_face_of_our_streets3.jpg?itok=jpGP25Kz" title="Shout Out Loud Print contributing to the community messaging. Image Credit: [Julia Frecker]" width="580"></a>

<figcaption>Shout Out Loud Print contributing to the community messaging. Image Credit: [Julia Frecker]</figcaption></figure><a href="/new-apartments">Apartments</a>, who have been fighting against the new age problem of not knowing your neighbours, have fostered communities over balconies and courtyards. We have seen workout routines in Spain, singing and dancing from Bologna to Sydney all conducted on apartment balconies. Those balconies whilst initially designed for inward use, now represent a full external embrace of our neighbours. 

Our streets are becoming outward looking, despite us all being very much within. We are changing the public realm and our interfaces with it to suit the changing needs of the community.

Some of the changes, as driven by the people, are veering on tactical urbanism interventions.

<a href="https://www.citylab.com/design/2012/03/guide-tactical-urbanism/1387/">Tactical urbanism</a> involves small scale often interim improvements to the public realm through community initiative and can take many forms. 

While formal planning caters for the needs of the community, it is hard to predict the specific needs, particularly when the parameters of the area changes. This is pertinent now in the way that the cities are changing in reaction to the changing social climate.

Tactical urbanism can be in the form of physical changes to a place including small ameliorations to space that help with <a href="http://tacticalurbanismguide.com/">transformation and engagement</a>. In the past many tactical urbanism techniques involve not socially distanced choices, such as <a href="https://globaldesigningcities.org/2018/04/18/from-pop-up-to-permanent-five-lessons-in-tactical-urbanism/">pop-up bars and markets</a>. However, tactical urbanism can also be reflected in the way we use space in the public realm, and one of the hallmarks is the reclamation of streets for community use. Cornerstones of tactical urbanism practices are now showing up in formal planning with the improvement of the public realm and walkable streets. 

In our car dominated world, the roads are run by the automobiles and pedestrians are relegated to the thin sidewalks. However, the creeping of pedestrians to the street in this current pandemic is indicative of a new way to use space and <a href="https://thespinoff.co.nz/society/16-04-2020/enjoying-the-people-friendly-streets-of-lockdown-lets-make-them-permanent/">reclaim our streets back from the cars</a>.

<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/the_changing_face_of_our_streets4.jpg" rel="gallery-all" title="Interim bike lane Berlin. Image Credit: [Paul Zinken]"><img alt="" class="image-article-full-width-580px" height="387" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/the_changing_face_of_our_streets4.jpg?itok=14sCC1R6" title="Interim bike lane Berlin. Image Credit: [Paul Zinken]" width="580"></a>

<figcaption>Interim bike lane Berlin. Image Credit: [Paul Zinken]</figcaption></figure>Around the world bikes and pedestrians are being prioritised with temporary street reclamation to provide more room for social distancing. From <a href="https://www.independent.co.uk/news/world/europe/germany-coronavirus-road-space-cycle-lanes-berlin-a9462771">Berlin</a> to <a href="https://www.smartcitiesworld.net/news/news/bogota-expands-bike-lanes-overnight-to-curb-coronavirus-spread-5127">Bogota</a> and beyond, the simple use of traffic cones or a bucket of paint has transformed streets to emergency bike lanes and given more agency to bikes to help essential workers travel to work without having to rely on the transit system. 

In New Zealand, widened sidewalks and temporary bike lanes initiated by residents have now been taken up by the <a href="https://www.forbes.com/sites/carltonreid/2020/04/13/new-zealand-first-country-to-fund-pop-up-bike-lanes-widened-sidewalks-during-lockdown/#e0a178e546e1">government and funded</a>. Epitomizing a true success story with a tactical endeavour that has been formally established. In New York, the city is temporarily <a href="https://www.nytimes.com/2020/04/11/us/coronavirus-street-closures">shutting down some streets to cars</a> to give the 1000’s stuck in their apartment buildings more room on the sidewalks to move around.

<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/the_changing_face_of_our_streets5.jpg" rel="gallery-all" title="Park Avenue, New York temporarily shut down to provide residents with more space. Image Credit: [Carlo Allegri/Reuters]"><img alt="" class="image-article-full-width-580px" height="387" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/the_changing_face_of_our_streets5.jpg?itok=8fr8AIVT" title="Park Avenue, New York temporarily shut down to provide residents with more space. Image Credit: [Carlo Allegri/Reuters]" width="580"></a>

<figcaption>Park Avenue, New York temporarily shut down to provide residents with more space. Image Credit: [Carlo Allegri/Reuters]</figcaption></figure>Positive changes, although not permanent, mark how the streets can be changed to reflect the changing state of the city, and how the community can be the first to generate such a change.  
We cannot settle on the good, without acknowledging the immense distress and sadness involved with this crisis, but positive changes to the city are good in spite of this. There will no doubt be lasting impacts to our psyche, our <a href="/news/covid-19-how-the-world-previously-recovered-from-sars-and-whether-or-not-we-can-do-the-same-this-time-round">economy</a> and our interactions with other people from this time. However, cities will be given a unique opportunity for regeneration and with the interim practices in mind, <a href="/expert-insights/buying/post-covid-19-we-need-to-bend-the-rules-and-create-new-deals-for-small-businesses">create better cities in the efforts of rebuilding</a>.

Change has been forced upon us in a rapid and scary way but it indicates that we as a world are pliable and capable of change. While scary and devastating things are happening, we choose to change the streets that we love. We choose to reflect ourselves in them when everyone out there needs another reminder that they are not in it alone.
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OPINION: The Changing Face of Our Streets

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Introduction

The new <a href="/guides/how-to-make-strata-fees-work-in-your-favour">strata</a> laws which commenced on 30 November 2016 introduced laws concerning strata renewal. Those laws enable a developer to acquire or redevelop a strata scheme with the agreement of at least 75% of the owners and the approval of a court order. Those laws were novel in Australia and attracted much media attention. But up until recently no one had succeeded in using the strata renewal laws to acquire a strata scheme without the agreement of all of the owners. On 8 August 2019, the Land and Environment Court approved the first collective sale of a strata scheme under the strata renewal laws. In this article we discuss the key points to take away from the case.

Seasons Harbour Plaza Case

The case involved a serviced apartment strata scheme at 252-258 Sussex Street, <a href="/developments/sydney-nsw">Sydney</a>. The scheme contains a 25-level building with 119 serviced apartments, a café, hotel reception and a lobby, office, gym and basement carapaces. The apartments in the building are mainly leased to Seasons Harbour Plaza Pty Ltd which runs a serviced apartment business for all but one of the apartments in the building. The building is zoned “B8 Metropolitan Centre” under the Sydney Local Environmental Plan 2012. The owners of the apartments in the building are investors. Many of them do not reside in Australia.

The Collective Sale Arrangement

The owners corporation of the site elected a strata renewal committee to pursue a collective sale. The strata renewal committee appointed Colliers International as the sales agent for the collective sale of the site. Colliers conducted 4 rounds of expressions of interest to arrive at a final bidder for the site. The expressions of interest campaign resulted in bids from 16 bidders that ranged from $50 million upwards. The final sale price for the site was $81.1 million. That price was agreed in November 2017.

It was a record price. The court was satisfied that there was no pre-existing relationship between the owners of the site and the purchaser and that an arm’s length, competitive expressions of interest campaign had enabled the strata renewal plan for the site to be prepared in good faith. The court had to be satisfied that the strata renewal plan had been prepared in good faith in order to approve it.

 The Required Steps

The court also had to be satisfied that all the required steps for a collective sale under the strata renewal laws had been completed before it was able to approve the strata renewal plan. The court identified at least 9 steps which needed to be completed. Those steps commenced with the preparation and submission to the strata committee of a <a href="https://www.fairtrading.nsw.gov.au/housing-and-property/strata-and-community-living/strata-schemes/frequently-asked-questions-strata-schemes">strata renewal proposal</a>. The strata committee was then required to (and did) consider that proposal and refer the proposal to a general meeting for further considerations. At that general meeting, the owners were supportive of the proposal and formed a strata renewal committee. Written notice of that decision had to be (and was) given to all owners within 14 days. The strata renewal committee then prepared a strata renewal plan. The requirements of that plan are set out in strata renewal laws and are very prescriptive and include the preparation of valuations on 2 bases – valuations of the individual lots within the site and a valuation of the whole building and the site. After the strata renewal plan was prepared, the plan was considered and approved at a general meeting of the owners corporation by special resolution. The owners corporation decided to (and did) give the strata renewal plan to owners within 14 days of that decision.

At least 75% of the owners of the lots (excluding utility lots) had to support the <a href="https://www.registrargeneral.nsw.gov.au/property-and-conveyancing/strata-schemes/renewal-process">strata renewal plan</a>. Those owners had to (and did) provide written support notices consenting to the strata renewal plan within a certain period. The owners corporation was then required to (and did) hold a general meeting to pass a resolution to apply to the Land and Environment Court to have the strata renewal plan approved. The owners corporation then filed its application with the court. Ultimately, the court was satisfied that the owners corporation had completed each of the steps set out in the strata renewal laws.

Distribution of the Sale Proceeds

The strata renewal laws require the proceeds of any collective sale to be distributed among the owners in shares proportional to the unit entitlements of their lots. However, those laws also require each owner to receive an amount from the sale proceeds that is equal to or better than the compensation value of their lot as if the lot was compulsorily acquired by a Government authority. The valuation reports obtained by the strata renewal committee recognised that there was a disparity in values across the lots because, for example, the commercial lots had a higher relative value than the serviced apartments.

This would have resulted in the proposed distribution of the sale proceeds for some of the lots being less than the compensation value of those lots which the strata renewal laws require each owner to receive. In other words, the court recognised the tension in the strata renewal laws between the requirement (on the one hand) for the sale proceeds to be distributed among the owners in the same proportions as their unit entitlements and (on the other hand) for the distribution of the sale proceeds to each lot not to be less than the compensation value of the lot based on compulsory acquisition legislation.

The court resolved that tension by concluding that it could reallocate the unit entitlements in any manner it deemed fit if it considered that it was appropriate or necessary to do so in the circumstances to facilitate the approval of the strata renewal plan. This resulted in a small portion of the unit entitlements of each serviced apartment and car parking lot being reallocated to 5 commercial lots so that the owners of those commercial lots received an appropriate amount of compensation by way of disbursement of sale proceeds to them in compliance with the strata renewal laws.

Leases

There were a number of leases registered over the lots in the building. The strata renewal plan provided for the collective sale of all the lots in the building subject to those leases. The court concluded that where a strata renewal plan provides for a sale of a strata building with vacant possession any leases in the building will be terminated if the court approves the strata renewal plans. However where, as was the case here, vacant position is not required, the approval of a strata renewal plan by the court does not terminate any leases.

Contracts for Sale

The strata renewal plan that was approved by the court provided for the lots to be sold by way of a contract for sale in the standard form copyrighted by the Law Society of <a href="/new-apartments/nsw">NSW</a> and the Real Estate Institute of NSW with special conditions. The strata renewal plan proposed that contracts for sale would be exchanged within 5 business days of the court approving the strata renewal plan. The court saw nothing wrong with that arrangement and observed that the court’s order approving the strata renewal plan would be binding on the owners corporation, all of the owners and mortgagees and the purchaser under the strata renewal plan, City Hotel Enterprises Pty Ltd.

The Court’s Orders

The court made orders approving the strata renewal plan for the collective sale of all of the lots in the building. Those orders required each of the owners and the purchaser to exchange a contract for the sale of their lot within 5 business days of being served with a copy of the court’s orders. Those contracts provided for a 90-day settlement period. The court also reallocated the unit entitlements of the lots to ensure that the sale proceeds were distributed fairly among the owners. The court directed that the funds held in the administrative fund of the owners corporation be distributed to the owners in shares proportionate to their unit entitlements within 14 days of the termination of the strata scheme.

Conclusion

The Seasons Harbour Plaza case is the first time the Land and Environment court has approved a strata renewal plan for the collective sale of a strata building. The case highlights the care which must be taken to ensure that each of the steps set out in the strata legislation in relation to a strata renewal are completed correctly. The case also highlighted some of the problems in the strata renewal laws, particularly the provisions dealing with the distribution of sale proceeds among owners, and how the court intends to overcome those problems. The case will provide useful guidance for developers and owners corporations in relation to the strata renewal laws.
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First Collective Sale Approved by the Land and Environment Court

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<h2>OPINION:</h2>

The people with the loudest voices in the property industry (or those that like the sound of theirs the most) have been urgently spruiking who or what will make the biggest contribution to THE <a href="/guides/covid-19-how-to-adapt-to-working-from-home">FUTURE OF WORK</a>:

“This is the end of the office as we know it.”

“Working from home will be the new norm for many.”

“Co-working caught in the falling occupancy crunch.”

“In the past 2-3 weeks, <a href="/news/how-to-effectively-manage-a-remote-workplace-during-social-distancing">COVID-19 has advanced</a> the flex-space industry by 5-7 years”

“Star of Netflix hit series Tiger King claims his parks can also double as touchdown offices.”

(The last quote may or may not have been said.)

What we do know is this: the future of work is being framed by the greatest period of content creation and consumption in human history. 

Let’s take a little test.

How many times today do you remember reading or hearing the words “remote”, “flexible” and “collaboration”:

A. 50-75 times 
B. 75-100 times 
C. 100+ times

Now, before we were seduced by the omnipresent future of the work news cycle, we had a little problem on our hands. 

When I say “we” I mean our <a href="/news/density-sprawl-growth-how-australian-cities-have-changed-in-the-last-30-years">cities</a>, its law makers and its people. And when I say “little” I mean the greatest problem facing the property industry in history.

Today we lost another high street veteran. After 58 years of being that source of truth for Blundstones, head-torches and pocket knives, Aussie Disposals closed its 30-something strong network of tent flaps. Forever.

When we talk the future of work, imagine if there was something that could:

1. Create a use for retail premises that apartment developers don’t want to build

2. Help sell and lease apartments

3. Provide a product that aligns with the apartment developers &amp; residents aspirations that absolutely, definitely isn’t another nail salon

4. Reduce <a href="/news/grattan-institute">congestion</a> on roads and freeways

5. Relieve pressure on public <a href="/news/melbournes-revised-transport-strategy-2030-aims-to-deliver-870-billion-boost-to-economy">transport networks</a>

6. Allow large businesses and small to have a presence close to where people live, that isn’t their homes

7. <a href="https://www.inc.com/sujan-patel/20-creative-ways-to-boost-employee-morale">Improves staff morale</a>

8. Is a net contributor to communities by keeping people local, for longer?

These are just a few. For anyone that is interested, my list currently stands at 76 and is growing daily.

Despite the horrific din created by us know-it-alls in the past few weeks, I haven’t read anything that comes close to solving as many problems and creating as many benefits as the sensible, sustainable repurposing of shops into offices. 

Anyway, it’s just another idea to throw into your future of work consumption for today.
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The Future of Work Discussion is Missing its Biggest Opportunity

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<h2>OPINION:</h2>

As the curve begins to flatten and we all <a href="/guides/covid-19-how-apartment-dwellers-can-keep-themselves-safe-during-self-isolation">join together to stave off</a> this deadly virus, many of us around the country are taking this opportunity to focus one’s attention on good old health and fitness.

Whilst there is little doubt the high street has borne the brunt of the digital age these past few years, it is safe to say those retailers who went into this lockdown stocked with home fitness equipment, running shoes, training gear and alike have never had it so good. Never before have so many wild MAMIL’s (middle-aged men in lycra) been seen trundling up and down our roads with such devotion.

Most, you would hope, are fully aware that their reward, their trophy for such dedication will not materialise with a run out on the hallowed turf of the MCG, nor hold pace with the peloton in the Pyrenees this June. They will, I’m sure, swagger their way to their next periodic health check with little doubt that nothing more than ample praise awaits them from their trusted GP.

Now ask yourself this, if you’re willing to grind out the km’s, to calorie count your way past the chocolate aisle in search of the ever-evasive rolls of necessity, why is it that so few of us take a good proper look at our financial health?

It is no secret that Australia’s household debt levels are <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-10-18/household-debt-leaves-australians-working-longer-spending-less/11608016">mightily high</a>, the comparisons to the USA pre-2008 are hard to miss. A soaring property market backed by increasingly cheaper availability of credit has left the average Australian wondering just how they’re going to meet their monthly repayments.

<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/covid-19_health_check-2.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="435" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/covid-19_health_check-2.jpg?itok=3vu6ZsVg" width="580"></a>

<figcaption> </figcaption></figure>Take car loans for example, <a href="https://www.whichcar.com.au/car-news/aussies-crippled-by-8b-car-debt-report">according to WhichCar</a>, more than $8 billion was borrowed by Australians to buy new cars in 2018 alone. It doesn’t matter how much pavement stomping you’ve been up to these past few weeks, that’s an insane amount of debt when you think we’re a <a href="/news/how-close-is-melbourne-to-becoming-a-polycentric-city">population of just over 25 million people</a>.

Whilst a looming credit bubble has been appearing on the horizon for some time now, no-one could have predicted the <a href="/expert-insights/buying/opinion-is-the-impact-of-covid-19-a-repeat-of-sars-for-the-property-market">shock of a COVID-19</a> style disaster and the impact the lockdowns are having on individuals and businesses alike.

There has never been a more important time to understand the health of your finances, to position yourself to weather the economic uncertainty and ensure you’re structured in the most credit-worthy position you can be. Whether you’re looking to <a href="/guides/2019/06/17/urbans-first-home-buyer-guide">buy your first home</a>, fine tune your existing investment portfolio or position yourself to purchase your next <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">investment property</a>, a financial health check with a quality finance specialist is a must.

Just like your GP assessing you at your next health check-up, there are a few main pillars a finance specialist will ensure are in place when it comes to giving you a clean bill of financial health. One of the most important is refinancing. Assessing your current debts and evaluating what options are available to your specific situation. Whether it’s taking advantage of better interest rate opportunities, or consolidating your liabilities into one monthly payment, you’ll find a good financial health check will give you the same piece of mind, the same road map to success that you many have started following for your health. 
 
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Covid-19: Health Check or Financial Health Check, Which is More Important Right Now?

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<h2>OPINION:</h2>

The Coronavirus pandemic is like <a href="/expert-insights/buying/how-will-the-coronavirus-impact-australia-s-property-market">nothing experienced before</a> on a global scale. How we respond to the outbreak and how we work together to keep informed and react to this situation is vital. For us in strata management there are unique challenges in keeping people safe who live in strata communities and for those who service our communities such as cleaners, waste collectors and maintenance staff. Knowing that people may be losing their incomes due to job losses also presents challenges in financial security of an Owners Corporation.

As an <a href="/news/taking-an-active-approach-to-strata-services">Owners Corporation Management busines</a>s, we should understand that people in strata communities are looking to their managers for leadership, professional direction and comfort, knowing they are doing all they can. We need to take our role seriously and reassess our responsibilities daily. Regular communication is important, including direct communications with owners and building managers, updates on websites and posts to social media to help provide clarity and comfort to all stakeholders.

Specific strategies which can be implemented include:

<h2>Protecting the Safety of Strata Managers</h2>

To protect the safety of strata managers, many Owners Corporation Managers have ceased personal visits to buildings and rely on their teams of cleaners and contractors to erect signs and ensure all cleaning and maintenance of common areas is carried out with increased hygiene and safety. These teams have also been relied upon to close common areas where required. Managers then need to supply a full explanation to tenants so there is no misunderstanding of the actions being taken. People who are well-informed of what is happening prevent any confusion.

<h2>COVID-19 Information Portal</h2>

A COVID-19 specific portal can be created with essential information people may be looking for with regards to their community and their own personal welfare. This portal can be updated regularly with new information as it becomes available and can be shared through social media channels. Information may include guides for committees and residents, how to run strata meetings, the changes which can be implemented into managing buildings during this time, cash flow and financial risks plus links to the various Government Assistance Packages people and businesses are able to access.

<h2>Communicating with Owners and Property Managers</h2>

Communicating directly with Owners and Property Managers through personal email should be essential. These communications may include updates on what is happening with the spread of the Coronavirus, what is happening within their strata community and actions the Owners Corporation are taking to manage and help overcome challenges that may lay ahead.

<h2>Cashflow Stress Testing</h2>

Modeling of potential scenarios ensures that responding to all possible outcomes is considered. This may be in the form of a cash flow stress test. This involves possible scenarios where levies may not be paid by up to 30% of owners. What is discretionary and non-discretionary spending and will the budget still support what is essential. Services such as carpet cleaning and window cleaning services may be considered as discretionary spending and paused through this time.

<h2>Keeping up to date with Government Directives and Advice</h2>

There are plenty of resources and information being shared by the state and federal governments daily. Keeping well informed and gaining information from reputable sources is important.

Resources include:

<ul>
<li><a href="https://www.dhhs.vic.gov.au/">Victorian Department of Health and Human Services</a></li>
	<li><a href="https://www.premier.vic.gov.au/">Premier of Victoria</a></li>
	<li><a href="https://www.health.gov.au/">Australian Government – Department of Health</a></li>
	<li><a href="https://www.pm.gov.au/">Prime Minister of Australia</a></li>
	<li><a href="https://www.servicesaustralia.gov.au/">Services Australia</a></li>
	<li><a href="https://www.business.vic.gov.au/">Business Victoria</a></li>
</ul>
<h2>Strata Community Association</h2>

There has been highly relevant information, specifically directed at the impact to the strata title industry coming from <a href="https://www.strata.community/">Strata Community Association</a> (Victoria) and Strata Community Association (National) who have both released information on a regular basis. Resources have included the following:

<ul>
<li>Community Safety Posters</li>
	<li>Building Manager Services Guidelines</li>
	<li>Victorian State of Emergency Post Update</li>
	<li>Guide for Committees</li>
	<li>Guide for Residents</li>
	<li>Communications to Residents</li>
</ul>
Finally, the most important message for all strata managers is to keep communicating. People become anxious or annoyed when they don’t know what is happening. This is an unsettling time for everyone. By keeping owners, tenants, building managers, service suppliers and other stakeholders informed, this should result in limited confusion and even some form of comfort in knowing the managers of their Owners Corporation care.
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An Owners Corporation’s response to dealing with COVID-19

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EXPERT OBSERVER
RE/MAX Australia Managing Director Michael Davoren puts his network’s support behind the Real Estate Institute of Queensland’s call to the Queensland Premier to reconsider proposed measures relating to tenancy.
Mr Davoren vehemently agrees with the REIQ that a more balanced and fairer framework providing equal protection for renters and owners of investment properties is needed.
The REIQ has taken the fight to the state government because the right of the landlords has been completely eroded – and the pervading perception of landlords as wealthy landowners is false. Fact is that 77 per cent of singe-property landlords are ‘ordinary people’ earning less than $100,000 a year.
Mr Davoren’s concern is that the current ‘protections’ are potentially devastating to a much broad sector of the population.
I have grave concerns about the information the Queensland Government is basing its decisions on.
People in the real estate industry – residential and commercial - have access to possibly more sectors of the population than any other, and certainly at the grass roots level.
This is about shelter… and when you talk about shelter – whether for residential or commercial premises, for owner occupiers, for tenants, for businesses – all roads lead to real estate.
We in the real estate industry are the experts in our field, just as those in the medical profession are the experts. Stop listening to people who are not the experts.
Mr Davoren agrees that governments have to lean towards the tough side when it comes to COVID-19, the virus itself, because it involves saving lives but he suggests what the Queensland government is doing in relation to landlords and tenants goes beyond dealing with the virus.
It’s a short-sighted vision. If the proposed measures go through, large numbers of landlords will divest themselves of their investment property as soon as they can. The tenant becomes the real loser. With fewer properties to rent, rents will go through the roof.
He said leadership particularly now, needed to demonstrate confidence, strength and sensitivity, and such leadership was drawing the real estate industry together, on its own behalf and on that of real estate consumers, to address how COVID-19 affects the population.
REIP (Real Estate Industry Partners), a group of the largest real estate brands and independents in Australia, is across state boundaries and engages all levels of government. At the state level, all the institutes are stepping up.
Chairman Peter Brewer and CEO Antonia Mercorella have stood up as leaders in a time when good leadership is needed like never before.
He said the Palaszczuk Government was quick to respond to the thousands of letters it received in a day from landlords, following the launch of the REIQ’s ‘Everybody Matters’ campaign.
It was pleasing to read that the Queensland government promised to consult more widely on its proposed rental protections but I sincerely hope this happens in time to prevent  the initially proposed measures being passed when Parliament sits on Wednesday 22 Apri.
MICHAEL DAVOREN is the RE/MAX Australia Managing Director 
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