An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" />

It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." />

Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

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

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

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

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

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It’s a marvel that Australia has any regional cities left.
Every time there’s a major (and sometimes relatively minor) business reversal, media declares the death of the local economy and often the collapse the local property market.
Legendary author Mark Twain could have been speaking for Newcastle, Wollongong, Geelong and many other regional cities when he said that “the reports of my death have been greatly exaggerated”.
The latest Australian regional city to inspire a premature obituary is Townsville in the wake of the decision by political and business buffoon Clive Palmer to shed 237 jobs at his Queensland Nickel refinery. 
As has become common in the wake of such events, the media coverage has been a tad over the top since the announcement. I’ve seen reports predicting devastation of the local economy. One suggested Townsville would become “a ghost town”.
Admittedly some of the dire forecasts have been sourced from sacked workers who were understandably emotional.
But beyond the unfortunate impacts on the affected families, the downsizing of the Queensland Nickel business is not a catastrophe for Townsville.
The northern Queensland city is one of Australia’s strongest regional economies. It has wonderful diversity, with a broad range of strong industry sectors providing employment and economic activity.
It has a major (and expanding) military presence, a massive government sector, a significant education industry, a busy tourism industry and various activities related to the resources sector, among others. 
Few Australian regional cities can match it for strength and diversity.
A couple of years from now the Queensland Nickel kerfuffle will be seen as a minor blip in the economic life of this very strong city.
Townsville is not the first regional economy to be declared terminal and it won’t be the last.
Last rites have been administered in recent years to both Wollongong and Geelong, which nevertheless remain very much alive and kicking.
Wollongong was proclaimed an impending basket case when Bluescope Steel announced some major downsizing in 2011. Media went overboard. I recall one headline predicting that property values would fall 50%.
But something quite different occurred. The Wollongong property market has recorded strong price growth in the years since, partly because it caught the wave from Sydney and partly because of positive events in the local economy. 
What the doomsayers overlooked when they over-reacted to the Bluescope Steel job cuts is that there are a lot of  other things happening in Wollongong besides the smokestack industries. Like many other regional cities, Wollongong has been busily reinventing itself and these days has strong industry sectors in education, IT and tourism, among others.
The gradual decline in employment at the steelworks has been going on since the 1970s. Back then, Bluescope Steel employed 27,000 people. Today it provides jobs to only 10% of that number. In the meantime, Wollongong has moved on and created new modern industries to sustain itself.
It’s doing just fine.
So is Geelong, although it should have shuffled off this mortal coil before now, in the wake of bad news about the Ford car plant and one or two other old-style industries. 
But, like Wollongong, Geelong isn’t a blue collar factory town any more. Its biggest employment sectors are eduction and health. The city is thriving as an affordable lifestyle alternative to Melbourne, to which it is now better connected since the completion of the $5 billion Regional Rail Link.
Major new enterprises are opening up in Geelong. One is the National Disability Insurance Scheme, which is being headquartered in Geelong and is attracting other enterprises that want to be located near it.
In real estate terms, Geelong is the strongest market in regional Victoria and I don’t expect that to change any time soon.
There are echoes in this situation also of Newcastle, which was expected to wither and die following the closure of BHP activities in the late 1990s. But check it out today and you’ll find a strong and vibrant city where spending on new infrastructure and property developments totals many billions of dollars. 
And so it will be with Townsville. I’m sure those 237 people who are losing their jobs are suffering (I’ve experienced retrenchment a couple of times in my life and it’s not pleasant) but Townsville as a community and as an economy will not be devastated. 
We’re talking 237 jobs in a city of 200,000 people. Even allowing for flow-on effects, Townsville’s future is as strong as ever.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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Townsville economy will weather mining downturn: Terry Ryder

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The delay in changes to the first-home owners grant (FHOG) is good news for many buyers.
Legislative changes to the distribution of the FHOG were anticipated to take effect last Sunday, however, the Western Australian parliament has not yet passed the necessary bill.
The state government announced changes to the FHOG in the August budget and was aiming for 15 September as the change-over date, but parliament has not yet fully processed this legislation so the change now looks like happening in October.
This is good news for the 70% of first-home buyers who preferred to purchase existing, older homes rather than building new.
Currently first-home buyers are eligible for a grant of $7,000 whether they buy an established home or build a new one. However, once the FHOG change takes effect the grant will drop to $3,000 for established homes and lift to $10,000 for new-builds.
The current delay in the change means that first-home buyers looking for an established property have a few more weeks to access the higher grant and, conversely, those who want to buy a block and build will be likely tohold back until the grant lifts to $10,000.

<hr>
David Airey is president of the <a href="https://reiwa.com.au/home/default.aspx" target="_blank" rel="nofollow">Real Estate Institute of Western Australia.</a> This article was originally published on <a href="https://reiwa.com.au/Faq/Pages/Feature.aspx" rel="nofollow" target="_blank">reiwa.com</a>.
 
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Good news comes in the shape of delays to FHOG changes: David Airey

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A hotspot report can be a good way to start thinking about locations where property prices are likely to rise over the coming years.
They will also provide information about demographics, infrastructure, amenities and the type of properties to consider within a “hotspot”location to help guide your thinking.
But you should not rely on hotspot reports alone and certainly not assume that capital growth is guaranteed.
As highlighted by hotspotting.com.au’s Terry Ryder, there i sno such thing as a “bulletproof” suburb.
To make sure your decisions are based on solid facts the key is research, research, research.
Read absolutely anything and everything about the property market in your chosen area.
Extract information from friends and family who have residential holdings. Track sale prices against original asking prices using local papers and residential listings websites.
What is the sales history of the property and its neighbours?
The internet has enabled buyers to be better informed than everbefore, and for free.
You may also consider purchasing an independent report on a suburb or street from the likes of RP Data, Residex or Australian Property Monitors.
 
<hr>
This article is from Property Observer's free ebook <a href="/guides/free-ebook-top-10-property-investment-tips">Top 10 Property Investment Tips</a>
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Get tips from hotspot reports, but do your own due diligence and research

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We have a new candidate for the title of “worst real estate article of the year”. 
   Unsurprisingly, it appeared in Australia’s most dismal newspaper, The Daily Telegraph.   The headline claimed that <a target="_blank" href="https://www.dailytelegraph.com.au/realestate/families-give-up-on-great-aussie-dream-of-home-ownership-as-rental-trap-snaps-shut/story-fnhytr0n-1226724745610">families have given up on the “great Aussie dream”</a>. You can be fairly sure that when an article starts with that most tired of clichés, what follows is likely to be nonsense. The article did not disappoint.   It relied on another great cliché of journalism, that you never let the facts get in the way of a good story. This piece made a number of startling claims, but provided no evidence to support them.   It began with this statement: “An alarming number of Australian families are losing sight of the home ownership dream, being forced into long-term rental situations and struggling to provide security for their children.”   That’s a pretty big statement. I searched the article for information that backed it up, but there was none. No figures to support the “alarming number” claim. Nothing to justify the claim that large numbers of families are “struggling to provide security for their children”.   The second paragraph talked about “soaring property prices”. Again it didn’t provide any figures, which is a shame because I’d love to know where property prices have soared any time in the past three years.   The only markets that have achieved double-digit growth in any of the years since 2010 have been regional towns and cities, mostly those boosted by the resources sector. (Chinchilla in Queensland, for example, has averaged 10.8% annual growth in recent years, according to Australian Property Monitors figures).   The third paragraph says that “the situation is particularly severe in NSW”. Why? Apparently, because NSW has a third of the nation’s renters. Well, you would expect NSW to have a third of nation’s renters because NSW has a third of the nation’s population.   NSW is in line with national averages, whereby roughly a third of households rent and two-thirds own their homes, with or without mortgages. It’s been that way for a long time.   Paragraph six begins with this: “News that the home ownership dream is fading comes …” Really? What news that the home ownership dream is fading? Certainly it’s not contained in this article, which presents zero evidence to support the claim.   The article then moves on to blame the planning system for the crisis they say exists, but for which they have presented no supporting information.   Sensationalism at its worst and not one, not two, but three Telegraph writers interviewed their keyboards to come up with this pile of twaddle.   Yes, this anorexic article totalling 15 shallow paragraphs required contributions from three non-journalists. There was a triple byline, as if this was an epic of investigative journalism.   It was the antithesis of journalism, but sadly typical of print media’s coverage of real estate issues. No wonder the two major media organisations have been sacking journalists by the thousands recently. If this is the best three colluding writers can come up with, they don’t deserve their jobs.   So, I repeat <a target="_blank" href="https://www.propertyobserver.com.au/hotspots/my-first-rule-for-successful-property-investing-stop-reading-newspapers-terry-ryder/2013091865120">my comment from last week</a> on Property Observer. If you want to be informed about real estate, stop reading newspapers and start looking elsewhere for information.
 
<hr>
 Terry Ryder is the founder of <a target="_blank" href="https://www.hotspotting.com.au/" rel="nofollow">hotspotting.com.au</a> and you can contact Terry via <a href="https://mailto:%20ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://twitter.com/hotspotting" target="_blank">Twitter</a>.
 
 
  
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Claims that the "great Aussie dream" of home ownership is dead are pure sensationalism: Terry Ryder

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Housing affordability for first home buyers loomed large in the news this week, largely because properties in Sydney and Melbourne are selling for more than many first timers can afford.
But if you’re a first home buyer, is this really a time to panic just because you missed out at a couple of auctions?
If there’s 20 bidders at an auction, 19 miss out.
If you’re committed, you still have to save as much deposit as you need, and enough to cover the stamp duty and conveyancing costs. If you don’t have enough, you have to save more.
You also have to monitor your ability to pay the cost of the loan. So be realistic about how much income you can rely upon and what it takes to service your mortgage.
Or, could you do what most home buyers do and buy a cheaper property?
If you don’t want to adjust your goals downwards, you’ll have to adjust upwards your deposit, stamp duty and loan repayment equations.
Also, use an online loan calculator before saying yes to a low-equity mortgage. If housing values weaken again, 20% equity feels better than 10.
On a policy level, would you like to see governments releasing more land to meet demand? Or should government promote more competition in the mortgage market, creating more options for more consumers?
Should New South Wales reinstate the First Home Owners Grant for existing homes?
Regardless, I do wonder if the affordability story is the whole story. Might it have more to do with where people want to buy and less to do with a generation missing out?
Stephen Koukoulas, an economist writing in Business Spectator, uses Reserve Bank numbers and finds that new home loan repayments as a percentage of household income is around the same now as it has been for 30 years. He concludes, “There is no evidence of a first home buyers’ affordability problem.”
He goes further: the prices of so-called cheap city properties bought by older generations were offset by the high interest rates; the rising Sydney house prices are offset by the historically low interest rates.
Interest rates and property markets fluctuate, but households and lenders stay within basic serviceability ranges.
This may not be the desired conclusion for those who have set their hearts on buying somewhere beyond their resources. And it doesn’t fit with the idea of a generational conflict where one cohort is ‘shut out’.
Actually, every first home buyer finds it hard – people in my generation bought modest first homes with interest rates at 20%.
Perhaps the current first home buyers would be better served by recognising the opportunity rather than the problem? At 4.8%, a mortgage is currently cheaper than it will be again in our lifetimes.
This is a massive, historical opportunity. So forget about scapegoats and do what you need to do: which is boost your deposit, set your sights on what is affordable and think in steps – it’s a long road.
What do you think?

<hr>
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
You can contact Mark on <a target="_blank" href="https://twitter.com/markbouris" rel="nofollow">Twitter</a>.
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First home buyers have no cause to panic: Mark Bouris

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A Melbourne real estate agent was ordered to serve 200 hours of community services after illegally claiming a First Home Owner Grant (FHOG) despite already owning a home, according to the State Revenue Office (SRO) of Victoria. 
The man pleaded guilty to the First Home Owner Grant Act 2000 and Tax Administration Act 1997. His legal team told the court that he was unclear about what he was doing and the repercussions of his actions. The magistrate dismissed this claim due to the nature of the man’s occupation.
The man first bought a property in St Kilda in 2005 and received the FHOG. The grant was later reclaimed after the SRO found he did not meet the residency requirements.
In 2009, he purchased a second property in Chadstone and applied unsuccessfully to receive the FHOG. The SRO rejected the application on the basis that he had not repaid the FHOG for his St Kilda property.
After repaying that amount, he once again applied for the FHOG. During this period he acquired another property in Moorabbin. When SRO investigators questioned the purchase of this property, he provided a statutory declaration stating the Moorabbin property was for investment purposes and he had never lived there.
Upon receipt of this declaration, he was then paid a $16,000 FHOG.
The SRO conducted further investigations and found that the man once again did not meet the residency requirements to receive a FHOG.
The court heard that the man was extremely sorry and had learned an important lesson from his actions. He was then sentenced without conviction to a 24-month community correction order that requires him to perform 200 hours of community work, amongst other conditions. He was also ordered to pay an extra $203.60 of out-of-pocket costs to the SRO within a month.
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Melbourne real estate agent pleads guilty to First Home Owner Grant offences

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Its never been easy. Every generation of first home buyers has faced affordability obstacles and choices, but the noisiest of the latest batch of first home buyers would prefer to bleat rather than make the latterday sacrifices that were undertaken, in an earlier form, by their parents. 
I accept that the 2013 buying prospects are diminished, but the buying priorities and requirements appear almost non-negotiable by this so-called, doomed to rent for life generation.
At weekend auction, when the APM median house sale price was a likely record $1.065 million, I spotted at least 25 offerings sold at below $500,000, with opportunities for instance to buy a unit in Meadowbank, Cronulla, Parramatta, Summer Hill, Burwood, Five Dock, Croydon Park, even Bronte.
There were houses in Granville, Casula, Parramatta, Blackett and Fairfield West.
The weekend's cheapest sale was $191,000 for a four bedroom 1960s house on 1500 square metres in the Blue Mountains. The Bullaburra property, which sold to an investor, had last sold at $240,000 in 2007. The suburb's median house price is $377,000.
Sydney currently has 51 suburbs with median house prices below $400,000 including:
Tregear $240,000
Bidwill $250,000
Blackett $251,000
Emerton $252,000
Lethbridge Park $255,000
There are 122 Sydney suburbs with house medians below $500,000.
For units, it has 45 suburbs with median unit prices below $400,000.
There are some 98 suburbs with below $500,000 unit median prices.
That's out of the 650 Sydney suburbs.
Some of these options are located in the upper north shore, the inner west and the city and east, including Hornsby $450,000 units, Forest Lodge $456,000 units, Newtown $466,000 units, Ultimo $490,000 units and Eastlakes $410,000 units.
Yes APM has previously acknowledged the average distance from the city centre for the Sydney suburbs below $400,000 was 52 kilometres.
That's compared with 36 kilometres in Melbourne and 30 kilometres in Brisbane, APM noted.
But as Andrew Wilson, the senior economist at Australian Property Monitors recently noted, Sydney has a lower end housing market that is "as accessible, if not more accessible, than most other capital city markets."
With the Sydney median house price now exceding $700,000, it is the option for first buyers to look where they can buy new houses for less than $400,000 and existing stock for over $240,000.
Sydney, with its high median because the middle market is so strong, does has the buying prospects. They just have to be viewed as worthy, transitory, not unpalatable.
<a target="_blank" href="mailto:news@propertyobserver.com.au"></a><a href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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jchancellor-FAypfDUnLy

First home buyers have choices; but they deem distant western Sydney option unpalatable

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It was reported recently in October 2013, the NSW state government made the largest monthly windfall on stamp duty since it began recording such data trends back in 2005.
With over $350 million collected in the month of October, stamp duty is unquestionably one of the biggest revenue raisers for NSW.
However, we shouldn’t get too carried away with what, at face value, appears as a larger than usual money-grab by the state government. The increase in stamp duty revenue also needs to take into account some other market factors, such as near-record high auction clearance rates for the months of August, September, and October of 2013. It is within these two to three months that the state government’s stamp duty tax windfall reported, would have been derived from.
It is safe to call a spade and spade and realise that in NSW, higher than usual auction and private sales data – and thus higher volumes of stamp duty collection as a result – is an indication of renewed buyer and market interest in residential property.
And hey, why wouldn’t there be?
The current property market climate has been something of a perfect storm for home buyers and investors alike in recent months. This is especially evident in NSW. Though housing affordability challenges continue to persist, there are just too many well-received positive factors at play that are stirring home buyer and investor market activity. These include:
-          Some of the lowest interest rates on offer of all time
-          Not only are rates low, but some of the most competitive and cost-efficient two-year, three-year, and five-year fixed interest rate deals are on offer. These deals are ‘security’ music to a first home buyer’s ears
-          Though affordability remains a challenge, property values throughout most of NSW have not risen in as high a proportion as other states in the past 12-24 months
-          Previously the construction industry was in a slump, however it is starting to heave back into prosperity and with more construction upstarts and projects commencing, buyer confidence levels boost
As an investor, my view on stamp duty is in a constant state of flux. Though it prohibits many first home buyers from entering the market initially, it can be argued that it also prevents first home buyers entering the market foolishly and setting themselves up for failure. Yes, saving that initial first home deposit will take a little longer due to the needed stamp duty capital being raised, however it also means buyers need to learn more diligent saving and spending habits in their quest to home ownership.
This can be a good thing for buyers who have unrealistic expectations or a view that their first home purchase should be the ‘forever dream beach house’ that they want, long term. First home buyers need to view stamp duty as a challenge; a necessary evil that means they may need to compromise on certain elements of their first property purchase.
Stamp duty also encourages would-be first home buyers to consider renting longer, and perhaps buying a more affordable investment property to start with, saving first home ownership for a few more years down the track. I personally think this is one of the smarter and more cost-efficient strategies out there.
Say for example your goal is to buy your first home, a $500,000 property, within the next few months and you have your 15% deposit saved. Here’s what you’d be up for if you bought it as a home and lived in it for three years:
-          15% deposit: $75,000 (leaving a mortgage value of $425,000)
-          LMI (Lender’s Mortgage Insurance) because you do not have the needed 20% deposit: around $4,000 (that’s $4,000 of wasted money you can never get back or make any claims on)
-          NSW stamp duty on purchase of $500,000 (payable at time of settlement, remember): $18,010 (yes, that is dead money you can never get back)
-          Other settlement costs (legal, any loan fees, searches): $2,000
-          Total upfront payable: $99,010
Assuming you take out a mostly-fixed loan product (say 30 years), two to three years of chipping away at the mortgage will not make much of a dent, because remember, most 30-year mortgages do not start to make headway until around year #5 or #6. You are also liable to pay hefty interest on your mortgage from day one, because of a substantial $425,000 sized mortgage.
In my view, a better strategy for this home buyer is to rent for a few years, but buy a cheaper investment property up front. Let’s say a modest unit or apartment in middle-outer Sydney suburbs, or a well-located property in a regional centre such as Wagga, Newcastle, or the North Coast. Let’s say you still have that $99,000 upfront budget mentioned above to spend.
-          Buy one $250,000 investment property right away
-          Put down 20% deposit (thus negating the need to pay LMI): $50,000
-          This means you have a loan amount of $200,000. I’d take out a split loan that is 60% fixed for three to five years, and 40% variable (with an offset facility that is redraw-capable). This means 40% ($80,000) of your mortgage is offset-capable
-          NSW stamp duty on $250,000: $7,260
-          Other settlement costs (same as above): $2,000
-          You are ‘all in’ for $59,260 initially
-          As for the remaining $30,000 of savings, don’t spend it, but put it into that $80,000 offset account. This means that for the first few years you are only paying interest on $50,000 of offset plus 120,000 of fixed loan = interest payable only on $170,000
-          Over years one to three you continue to rent and pour savings into that offset account, all the while reducing the interest you pay on the investment property. Then in year three, you pull out your original $30,000, plus three years’ worth of savings revenue. Assuming you save an average $20,000 per year, this will see you back at the $90,000 mark to buy your home with.
-          Oh and let’s not forget some of the tax minimisation benefits that often come with well-purchased investment properties. Even if this saves you only a couple of thousand per year, that’s still an additional $2,000 each tax year that will help to ease the mortgage stress of your big chunky home mortgage, when you are ready to buy your home.
This strategy will not work for everyone or every situation. It is not financial advice and is not to be construed or applied as such. However, it is an example of how renting for a few more years whilst having an investment property up your sleeve, can better your home-buying position later on.
Stamp duty is one of those necessary evils in the property game. It may not always be, but for now, it is. In my view, though stamp duty is an evil, it is not the real problem here – a poor buying strategy mixed with unrealistic buying expectations is. Australian property buyers need to get smarter in their home ownership aspirations and realise that the best course to take isn’t always the direct one.

<hr>
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a target="_blank" rel="nofollow" href="https://www.propertycorrespondent.com.au/">Property Correspondent.</a>
 
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The best course to home ownership is not always the most direct one 

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The latest affordability index by the Adelaide Bank and Real Estate Institute of Australia has once again flooded the real estate headlines with the jolly news that housing is growing ever more affordable.  
This pre Christmas gift of optimism from the newly updated affordability studies commissioned by the financial and real estate sectors, comes with a host of commentary – usually from those with a vested interest – who happily advise aspiring home owners that ‘they’ve never had it so good’ – in other words, to paraphrase Terry Ryder’s thoughts, first home buyers should <a href="/news">‘put up, or shut up.’</a>  
Of course, it wouldn’t be half as palatable if it didn’t come accompanied with the seeming contradiction that not only is it more affordable than it’s been in the last decade (according to the HIA-Commonwealth Bank affordability index), it’s also substantially more expensive than its ever been. Yes, housing is only item than can be both affordable and unaffordable at the same time.  Work that one out Einstein.  
In fact, according to <a href="#more-3603" target="_blank">Residex</a>, median prices in both Sydney and Melbourne have already exceeded their historical highs, ‘nudging’ $750,000 in Sydney and $600,000 in Melbourne - additionally, Perth has also reached its previous peak of 2008, with a median price of $521,000.  
<a href="https://www.rpdata.com/" target="_blank">RP Data’s</a> dwelling price index shows a year to date increase of 14.3% in Sydney, 6.4% in Melbourne and 9.7% in Perth.  For home buyers, the benefit derived from lower lending rates has been all but offset by the inflationary pressure placed on prices.  
Rarely is it mentioned that housing affordability and the cost of servicing a mortgage are two separate entities.  
Mortgage rates are set up with different structures dependant on circumstance, and subject to interest rate changes influenced by the macro environment.  
To take out a 25 year mortgage requires the expectation of secure employment in a terrain where frequent job changes or part time work are becoming a norm.  
They may influence house prices through a cycle, but they do not take away the fact that home prices now – even with lower lending rates – require longer terms to pay down, with the interest over the duration of that period adding considerably to the capital cost.  
In fact I couldn’t put it any better than current governor of the Bank of England - <a href="https://www.theguardian.com/business/2013/nov/29/mark-carney-bank-of-england-home-buyer-warning" target="_blank">Mark Carney</a>, when he warns;  
“Think about the mortgage you are taking on, the debts you are taking on…You are taking at least a 25-year mortgage, maybe a 30-year mortgage.  Are you going to be able to service that mortgage five years from now, 10 years from now, if interest rates are higher? Or are you counting, even subconsciously, on the price of your house keeping going up and if something happens an ability to sell it quickly and not facing the consequences of not being able to pay?"
Carney’s cautionary words pre-empt the Bank of England’s decision to scale back its inflationary Funding for Lending Scheme amidst fears of a rapid escalation of house prices in the south-eastern regions of the country.  
From next year funding for lending will only be available for business loans -not mortgages – and if the banking sector’s concerned about signs of frothiness in an industry in which it’s heavily invested, so should we also be.  
The Bank of England governor is not alone. Central banks in Sweden, Hong Kong, Norway, New Zealand, Canada and Switzerland (to name but a few) have all adopted macro prudential measures to buffer against the associated risks of a boom/bust investor lead recovery in a post GFC environment - highlighting the importance of keeping lending standards robust – all, that is,  except Australia.  
Having weathered the impact of the GFC a little more effectively than others – the RBA seem to think we live in some magic faraway tree, effectively doing little more than wagging a cautionary finger to a sector which for the duration of the year, have outstripped owner-occupier lending with well over a third of all new loans on interest only terms and roughly the same proportion with LVRs of over 8%.  
In other words, there are still over a third of all loans in which the principle is not being reduced – with 37.3% lent on these terms for the September quarter alone.  
In NSW, investment lending is at record highs, making up over 50% of the market and although many use the well worn argument that the unwanted boom is predominant ‘only in Sydney’ – let’s not forget, Sydney is not some nether land off the coast of Tasmania. What happens in our biggest capital, with the largest and most diverse economy in Australia, inevitably impacts us all.  
Historically, this sector is more sensitive to interest rate changes with a tendency to wax and wain pro cyclically with market movements, exaggerating both gains and falls.  A housing recovery built on the back of small mum and dad investors pouring their money predominantly into negatively geared established dwellings – especially considering our current levels of private debt to income ratios - is not ideal for the long term the stability of our housing market, or house prices.  
The common Aussie term ‘spruiking’ - which APRA warns against in the self-managed super sector, is not only a contributing aspect of what inspires our culture to see property as the undiversified road map for building wealth for retirement – it is also part and parcel of what has kept our property prices high by both local and international standards.  Yet the risks associated with spruiking in SMSFs is simply the tip of a much larger iceberg.  
Having worked in many aspects of the housing industry, I have seen first hand the type of material that’s presented at seminars not just from those who receive under the table commissions from developers, but also from advocates working as independent advisors for either the seller or buyer.  
It really isn’t unusual to see slides presented at seminars with straight lines charting the difference between investing in properties that supposedly “grow” at steady 5% per annum, compared to those that grow at 10%, using historical median data as ‘evidence’ that future returns can replicate those achieved in the past, without any distinction of how such data is correlated or the difference between individual “house prices” and “median values.”  
This information borders on financial advice and comes with no mention of risk or the type of rigorous analysis, which you would reasonably expect when choosing to invest in a single asset.  
Another widely used industry favourite is the statement;  
“FACT: fewer than 5% of properties are investment grade”  
A myth if ever there was one.  Perhaps the well-known companies that use this as an advertising tool, would like to point to the person who researched every property in Australia to correlate such a statistic? Maybe we could also ask for a comprehensive definition of what ‘investment grade’ really is – because I guarantee there would be no shortage of differing opinions from industry ‘experts.’  
This endless promotion of residential property, with rows of investment magazines lining newsagency shelves, promoting subjective ‘hotspots,’ or as I <a href="https://catherinecashmore.wordpress.com/2013/11/18/do-we-have-a-changing-landscape-concerning-australian-real-estate-and-property-prices/" target="_blank">pointed out</a> a few weeks ago, agencies cold calling households, and sending ‘advisors’ round to ‘educate’ and encourage inexperienced investors to negatively gear against their principle place of residence, is toxic.  
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Meanwhile, the RBA continue to sit on their hands, not wanting to pull a regulatory lever, instead <a href="https://www.afr.com/rw/2009-2014/AFR/2013/09/25/Photos/160229d4-2585-11e3-bbca-a7ec88bfff7c_FSR.pdf" target="_blank">warning</a> investors to employ caution, hoping they will fall into line like a bunch of good school kids. However, whilst macro prudential tools may assist in ensuring banking lending standards remain robust – can they have any long-term sustainable or lasting impact on property prices?  
In a recent research paper by BIS (Bank for International Settlements), entitled <a href="https://www.bis.org/publ/work433.pdf" target="_blank">“Can non-interest rate policies stabilise housing markets?”</a>, evidence was gathered from 57 countries spanning more than three decades, investigating the effectiveness of nine non-interest rate policy and macro prudential tools on restraining credit growth and house prices.  
The analysis used a new dataset going as far back as 1980, making it the most comprehensive study to date in terms of both scope and time span.  
The paper concluded that whilst reductions in the maximum LTV (loan to value) ratio can restrain demand, its effects can be partially or wholly offset by a rising market enabling the investor to borrow more, therefore, changes in the maximum DSTI (debt service to income) ratio were assessed to be more substantial.  
But importantly;  
“Only tax changes affecting the cost of buying a house, which bear directly on the user cost, have any measurable effect on prices” and,  
“None of the policies designed to affect either the supply of or the demand for credit has a discernible impact on house prices.”
The study puts this down to the ‘can buys’ still outnumbering the growing pool of credit constrained ‘can’t buys’ – stressing that the importance of housing supply was not explicitly considered. Therefore if we want to lower house prices or put in place policies to aid affordability, we need to look outside the limited powers of the RBA alone.  
As has been proven <a href="https://www.businessspectator.com.au/article/2013/1/21/national-affairs/built-backs-first-home-buyers" target="_blank">time and time again</a>, intermittently stoking at the bottom end of the market with FHB grants and incentives does little more than provide a short term happy pill for vendors, as the price multiplier effect ripples across the rest of the housing terrain, stimulating both an inflationary and volatile environment.  
Instead, we need to focus on the real problem in Australia – and it’s not property prices, it’s land prices - as economist <a href="https://www.macrobusiness.com.au/2013/11/residential-land-values-reflate-across-australia/" target="_blank">Leith Van Onselen effectively points out</a> when he analyses the difference between commercial and rural land compared to residential land values, and building costs.  
“Whilst commercial and rural prices have remained relatively stable over the last 24 years relative to GDP, residential prices have skyrocketed.”  
In other words, the cost of residential fringe land, which without constraint, should be close to its ‘raw’ value, is not cheap at all – and it’s all down to ineffective urban planning policy.  
As I (<a href="https://www.macrobusiness.com.au/2012/12/englobo-the-shady-world-of-land-banking/" target="_blank">and others</a>) have pointed out previously, even within a wide expansive boundary as mooted in Melbourne’s new urban growth strategy, the government limits land use until they have gone through a lengthy process of mapping out areas for infrastructure known as a ‘<a href="https://www.gaa.vic.gov.au/precinct-structure-plans/" target="_blank">Precinct Structure Plan’</a> (PSP) – it is a slow laborious process and as soon as you restrict the supply of anything, scarcity inevitably inflates values.  
Larger developers are not slow to purchase swathes of acreage prior to rezoning, and then once PSPs have been finalised, drip feed it onto the market. Not only do government bodies have little understanding of how released plots respond to consumer demand, they have no policy in place to deter the practice. It’s therefore a failure.  
Furthermore, facilitation of infrastructure is currently financed via hefty development overlays, which are passed onto the buyer rather than initiatives such as bond financing, where residents pay back proportionally over a lengthy period of time, as was the case historically.  
We must remove these barriers with effective policy and let land prices revert back to normal levels to reflect a real price closer to commercial values.  
Without doing so, we can’t gain a true indicator of the trade-off buyers are prepared to make between price and distance. Currently, the average price of a newly built house and land package is around $400,000, this is not serviceable on the single median wage, and therefore can hardly be deemed affordable.  
Get the land supply, price, and infrastructure equation right and I suspect there would be no lack of demand from genuine aspiring home buyers.  Only when this is done, can we have a truly transparent debate on first home buyers’ willingness to spread over the land.  
 
<hr>
 Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
 
 
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Can housing really be affordable and unaffordable at the same time?

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When Australia’s biggest underwriter of lenders mortgage insurance rules a line through an entire asset class of property then investors should take note.  
Recently Genworth announced that from December 19, 2013 they would no longer accept off-the-plan or new properties as security when purchased in self-managed super funds. The announcement reads:
“Off-the-plan purchases and new properties that have been completed for less than 12 months are no longer acceptable. A “new property” is defined as being any property (including any house, unit, villa or townhouse) that has been fully completed for less than 12 months and/or has not been previously sold since construction (i.e. the vendor is a developer/builder or a related party of the developer/builder).”
Genworths’ role in the finance world is to ensure a bank does not lose any money if a borrower cannot meet their loan repayments. If the bank is forced to sell the property and is still left short the mortgage insurer fills the gap.  
Lenders mortgage insurers are very conservative by nature and they are sending a clear signal that they do not see a positive capital growth outlook for these types of properties.  
Genworth is looking to protect its own bottom line and are ruling out allowing their SMSF clients to invest in properties they think are risky investments. While the main reason for this is self-preservation it does provide a level of protection for these investors.  
At the same time that Genworth is waving a red warning flag to wealthy SMSF investors the government is still encouraging first homebuyers to buy this exact kind of property.  
Our government knows how important the building industry is to our economy so they are making it appealing for first homebuyers to invest in new properties only.  
For example a payment of up to $10,000 is available for eligible first home owners in Victoria for contracts entered into on or after July 1, 2013 to build or purchase a new home valued at up to $750,000.  In NSW the grant is currently $15,000 for first home buyers who build or buy new property.  
The government is leading first home buyers to focus on one particular type of property. Again the focus is to underpin the building industry but the byproduct is many first home buyers are in danger of being placed in a dangerous position.  
This is because new properties tend to have a low land to asset ratio meaning most of the value is tied up in the building not the land. It is land that appreciates in value and buildings depreciate. The result is capital growth that is more likely to fall behind the rest of the market. In addition new homes and apartments tend to be clustered together and can often be located in areas where there is an over supply of similar property.  
The current first home buyer policy solves a short-term problem by creating jobs in the building sector. However in the long run it is likely to place young first home buyers under financial pressure. The policy fails to acknowledge the dynamics of the property market and lures them into buying properties that well educated investors are avoiding.    
 
<hr>
 Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
 
 
 
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