Nature Based Cities (NBC), the not-for-profit organisation focused on improving biodiversity and nature outcomes in urban development, has launched its latest industry design guidelines and accreditation framework, this time targeting precinct-scale residential communities.

The move extends NBC’s influence beyond its initial focus on medium and high-density residential developments. Several projects have already achieved NBC accreditation since the launch of its Medium &amp; High-Density Residential Guidelines in early 2025.

The expansion into masterplanned communities and new residential precincts reflects the growing need for stronger nature-positive benchmarks as Australia’s outer suburban growth corridors continue to expand at pace.

Paul Hameister OAM, NBC Founder and the Executive Chairman of Melbourne developer Hamton who itself leans heavily into nature and biodiversity in its developments, says the&nbsp;nature-first approach to mitigate the effects of climate change has become standard in other parts of the world such as the UK, but Australia is lagging.&nbsp;Australia’s environmentally sustainable design (ESD) rating tools have no minimum mandatory requirements for living landscapes.

“We’ve always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren’t there,” Hameister says. “In Australia, you can have a five-green-star rated building that’s concrete and glass with not a blade of grass. 
 
“The focus is on reducing emissions, which is laudable, but there hasn’t been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities.”

He says that having now&nbsp;made good progress in supporting developers of medium and high-density residential projects, NBC is now looking to bolster better nature-based decision-making and recognise developers of greenfield projects in the outer ring and large inner-ring brownfield precincts, who want to champion nature and living landscape as a defining feature.

Since 2022, the not-for-profit has sought to remove the roadblocks preventing developers from incorporating nature and living landscapes into their projects, shifting the conversation from the reduction of emissions and grey infrastructure, toward recognising nature as an essential infrastructure.

The New Communities Design Guidelines and Scorecard arm developers with the tools needed to deliver a nature positive outcome for their new communities. Intended to be adopted at the outset of the planning process, the guidelines are designed to help create communities that are cooler, healthier and more resilient while also enhancing social wellbeing and long-term economic value.&nbsp;

New Communities developers seeking accreditation will be independently assessed across a range of key criteria including ecology, tree canopy, biodiversity, and walkability. Once the masterplan is complete and submitted for approval, the scorecard is formalised based on proposed outcomes. Projects that meet the NBC criteria will receive either Commended or Exemplary accreditation outcomes, creating a clear benchmark for nature-positive new communities in Australia.&nbsp;

Janis Fischer, Director at Tract and NBC Advisory Council member, said the development of new communities in our suburbs can have a substantial impact on nature and biodiversity.

"By incorporating nature-based design principles at the inception of a project, developers and their design teams can achieve nature positive outcomes that are good for both people and the planet.’’&nbsp;

NBC accredited New Community projects will gain access to NBC branding and marketing tools to help communicate their nature-based credentials to purchasers and the broader market.&nbsp;

Joel Robinson

Nature Based Cities: A new Australian benchmark for developing nature-positive new communities

Apartment buildings are increasingly being designed around how people actually live day to day, not just how they want a building to look.

For buyers, that shift is showing up in practical inclusions that respond to changing habits. Work-from-home spaces, EV charging, wellness amenities, secure bike storage and parcel management are becoming part of the broader apartment conversation, reflecting a move toward buildings that reduce friction in everyday life.

Online shopping has become one of the clearest examples of that change.

Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online. That has made parcel delivery a regular part of apartment living, rather than an occasional inconvenience.

For apartment residents, however, the delivery process can be less straightforward than it is for detached homes. Parcels may be left in lobbies, redirected to Post Offices, missed entirely, or placed under the responsibility of building managers and concierge teams.

That is why secure parcel infrastructure is increasingly being considered alongside more familiar apartment amenities.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/-VjjLwoViX0?si=A3k7ws9NX35Uac7_" title="YouTube video player" width="560"></iframe>

Australia Post Parcel Lockers offer one way to address the issue. When a parcel arrives, residents receive a notification through the AusPost app or SMS, then collect it using a QR code or one-time PIN. The parcel is kept secure, accessible and removed from common areas.

The broader Parcel Locker network now includes more than 1,500 locations across Australia, positioned at Post Offices, shopping centres, supermarkets, transport hubs and other accessible locations.

For new apartment projects, the relevance is clear. A building’s amenity offering is no longer only about lifestyle spaces, but also about convenience, security and functionality.

As buyer expectations evolve, secure parcel delivery is becoming part of the same design conversation as flexible working, sustainable transport and resident wellbeing.

It is one less thing for residents to worry about, and another example of apartment design adapting to the way Australians now live.

Apartment design is adapting to the way Australians shop

While school holidays and trips to Europe tend to define the winter property market, there's been no cold snap at <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> in North Sydney.

Developer-builder&nbsp;<a href="https://www.apartments.com.au/developers/aland">ALAND</a> sold more than $35 million worth of apartments throughout June, including a $6.8 million apartment that now ranks among the highest apartment sales ever recorded in North Sydney.

SRM Residential agent Ben Stewart said buyer demand throughout June reflected a mix of improving market confidence and longer-term thinking from owner-occupiers.

"We're seeing strong demand from owner-occupiers who are taking a longer-term view," Stewart said.

"Many recognise the opportunity to secure an apartment in an iconic building and premium location while values remain attractive. They may initially lease the property, but the intention is to eventually move in themselves, rather than purchasing purely as an investment."

[smartcode_project:default project_id=134323 project_image_fid=367129]

Located at 177 Walker Street, The Walden will deliver 161 one, two, three and four-bedroom residences across a 30-storey tower designed by Rothelowman. Every apartment occupies a corner position, maximising natural light, cross ventilation and views across Sydney Harbour, the Opera House, Sydney Heads and the northern districts.

Rather than a traditional balcony, the residences feature winter gardens that seamlessly extend the open plan living areas, creating versatile spaces for relaxing or entertaining throughout the year. Floor-to-ceiling glazing draws in natural light while showcasing sweeping views from the building's elevated Walker Street position.

Every apartment features high-end Calacatta marble, bespoke joinery, and fully integrated appliances.

The larger residences have been planned with distinct entertaining and private zones, with many master suites positioned on corners to capture natural light and harbour views. Walk-in dressing rooms, freestanding baths and refined stone finishes reinforce the house-like feel that has resonated with downsizers and owner-occupiers.

[smartcode_project:default project_id=134323 project_image_fid=6393]

Rothelowman Principal Ben Pomroy said the project was designed to make the most of its unique position overlooking the harbour.

"The Walden is a celebration of all things beautiful, curated for those who expect nothing less than exceptional," Pomroy says.

"Meticulously designed entertaining spaces and light-filled living areas that capitalise on capturing the natural beauty of Sydney's iconic harbour."

Residents will also have exclusive access to The Pavilion, a dedicated amenity building featuring a rooftop pool, wellness studio, gymnasium, sauna, concierge service, residents' lounge, private dining spaces and work-from-home facilities.

[smartcode_project:default project_id=134323 project_image_fid=6402]

The project marks ALAND's first major luxury apartment development in Sydney's inner-city market after more than two decades delivering residential communities across Greater Sydney.

Founder and CEO Andrew Hrsto previously said the rarity of the Walker Street site made it an opportunity the company could not overlook.

"This is a rare opportunity to bring a truly exceptional project to life in one of Sydney's most iconic locations, and to showcase our craftsmanship and design expertise at a world-class level," Hrsto said.

[smartcode_project:default project_id=134323 project_image_fid=6383]

The Walden has been introduced to the market at a time when demand for living in North Sydney is at an all-time high. Billions of dollars have been invested in infrastructure, including the recently opened Victoria Cross Metro station, located just 300 metres from The Walden, providing residents with direct access to the Sydney CBD in just minutes.

Private investment has also transformed the area through the arrival of new retail and dining destinations, elevating the lifestyle offering in what was once considered primarily a commercial precinct rather than an aspirational residential address.

The Walden is currently under construction and is scheduled for completion in 2028.

[smartcode_project_cta:default project_id=134323]

ALAND records $35 million in sales in North Sydney as The Walden bucks quiet winter selling season

The long-awaited redevelopment of the former Eastlakes Shopping Centre site has reached a major milestone, with Conquest's plans for a new mixed-use precinct officially placed on public exhibition.

The State Significant Development Application would transform the 1.7-hectare site at <a href="https://www.apartments.com.au/new-apartments/19a-evans-avenue-eastlakes-nsw-2018">19A Evans Avenue</a> into one of Sydney's largest urban renewal projects, delivering 736 apartments above a new shopping centre anchored by Woolworths, alongside specialty retail, dining, commercial space and new public open spaces.

The public exhibition marks the next chapter for the project after <a href="https://www.apartments.com.au/developers/conquest">Conquest</a> acquired the stalled Stage Two development from Crown Group, who completed the first stage across the road prior to their voluntary liquidation.

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="5fca22c5-d1ed-4e2c-8801-03f7df1eafc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland%20podium.png?VersionId=uomwr41nF8CmLUZRDcu3mHQechlbxucS" />

&nbsp;

Designed by DKO Architecture, the proposal comprises four residential buildings ranging from 14 to 18 storeys above a two-level retail podium. The development would deliver 736 apartments, including 74 affordable homes, 215 Build-to-Rent apartments and 521 market residences. Provision has also been made for dual-key apartments, which could increase the total number of dwellings to 877.

At ground level, the shopping centre has been designed as the suburb's new meeting place, anchored by a full-line Woolworths and complemented by a curated mix of fresh food retailers, cafés, restaurants, health services and everyday convenience shopping. Generous pedestrian links and landscaped public spaces will connect the retail precinct through to Jack Mundey Reserve, creating a more walkable and connected neighbourhood.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

"Eastlakes has been overlooked for too long, and this is the community’s moment. We are building a shopping centre and homes, a genuine heart for the suburb, and we genuinely want locals to help shape it."

"We enrich communities through the creation of homes, places, and experiences designed for life, built to last, and owner for generations. That starts with listening, so we warmly encourage everyone with a connection to Eastlakes to view the plans and share their thoughts."

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="22f6fb20-54fb-4bd7-8a92-48fafdd00608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland.png?VersionId=cugp7s9hrMHGJJdYzkeAkrFoQgnF4GXf" />

DKO said the design had been shaped by the site's landscape setting and surrounding open space.

"Our vision for the site embraces its unique Bidjigal identity by blending the residential living with generous landscaping and a material palette inspired by the Bidjigal locality, and celebrating the panoramic views to Botany Bay and the wetlands reserves."

"Taking cues from Country, we seek to harmonise built form with the landscape and lightly touch the earth. By reconnecting, retaining and regenerating existing ecology, and weaving in natural elements, we can deepen our connection to Country."

The landscape strategy extends across the podium and rooftops, incorporating communal gardens, children's play areas, lawns, community gardens, family gathering spaces and extensive tree planting. New landscaped links will also strengthen the connection between the precinct and Jack Mundey Reserve, while publicly accessible open spaces have been integrated throughout the development.

The proposal builds on Conquest's broader placemaking strategy for the site. Through an ongoing partnership, local artist Joe Rashbrook has been appointed Urban Art Curator, working alongside young residents to transform the project's site hoardings into a public art gallery that allows the community to engage with the redevelopment before construction is complete.

Conquest has rapidly expanded its development pipeline since acquiring the Eastlakes site, with more than $6 billion worth of mixed-use projects now in planning across Sydney, including Stanmore, Castlecrag and Waterloo.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

First look: ‘Far more than replacing a shopping centre’ as Conquest unveils 736-home Eastlakes redevelopment

Abadeen has lodged a State Significant Development Application (SSDA) for one of Mosman's largest apartment developments in recent years, seeking approval to transform the former Honeysuckle Garden and Midas site on Military Road into a 100-apartment mixed-use development.

The SSDA, lodged with investment partner Phoenix Property Investors, proposes around $230 million worth of new housing on the prominent <a href="https://www.apartments.com.au/new-apartments/494-516-military-road-mosman-nsw-2088">494-516 Military Road</a> site.

The proposal comes as Mosman Council continues to progress its recently endorsed Masterplan, which identifies the precinct for increased housing density while maintaining the suburb's established character.

Designed by DKO Architecture, the development would comprise 100 apartments above ground-floor retail, with a rooftop wellness precinct including a gym, sauna, entertaining areas and landscaped communal spaces.

Rather than pushing to the full 12-storey height identified in Council's Masterplan, the proposal ranges between five and nine storeys, stepping down towards Hale Road. A tenth level would accommodate resident amenities rather than additional apartments.

The project has been designed to appeal to a broad range of buyers, from first home buyers and young professionals through to families and local downsizers looking to remain on the Lower North Shore.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="5dada03f-5b4c-43ba-ba62-2868add31440" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.57.55%E2%80%AFAM.png?VersionId=7LBy0B.Jo8_iWAFJsClcV7Q3UnXrv49r" />

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock.

"The apartments have been designed as genuine long-term homes, with efficient floorplans that maximise usable living areas, generous storage, natural light and strong connections between indoor and outdoor spaces," Brown says."

"We've focused on creating homes for a broad range of buyers, from first home buyers and growing families through to downsizers who want to remain in Mosman."

The rooftop wellness offering forms a key part of the proposal, with residents set to have access to a gym, sauna, outdoor entertaining spaces, communal dining areas, landscaped gardens and a multi-use recreation court overlooking Sydney Harbour.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="d37c2d6b-583a-4a0f-b7a9-9f46b893d2f4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.58.06%E2%80%AFAM.png?VersionId=FPoa5FCm2RtzjhAh2w5FTWJbV6GHfY8D" />

DKO drew heavily on the site's natural and cultural history, undertaking a Connecting with Country process with local Aboriginal Elders to inform the architectural and landscape design.

Senior Associate Matthew Ritchard said the design sought to create a building that responded to both the site's landscape and its cultural significance.

"The architectural language of the project is a deep expression of Connecting with Country, where the materiality and colour palette serve as a bridge between the site's geological history and its future as a residential sanctuary."

The proposal also retains the site's established blue gum tree as the centrepiece of the communal landscaped gardens, while introducing activated retail fronting Military Road to strengthen the connection between Mosman and Cremorne villages.

If approved, the project would deliver 100 new homes within walking distance of shops, public transport, schools and local amenities, adding to the limited pipeline of new apartments on the Lower North Shore.

<h2>Project Snapshot</h2>

Project: Honeysuckle Garden Redevelopment

Address: 494-516 Military Road, Mosman

Developer: Abadeen and Phoenix Property Investors

Architect: DKO Architecture

Lead Architect: Matthew Ritchard

Value: $230 million

Residences: 100 apartments

Key features:

<ul>
	<li>
	Ground-floor retail
	</li>
	<li>
	Rooftop wellness precinct
	</li>
	<li>
	Gym and sauna
	</li>
	<li>
	Outdoor entertaining and BBQ areas
	</li>
	<li>
	Landscaped communal gardens
	</li>
	<li>
	Multi-use recreation court
	</li>
	<li>
	Retained mature blue gum tree
	</li>
	<li>
	Connecting with Country design process
	</li>
	<li>
	Harbour, CBD and Balmoral views from upper-level apartments
	</li>
</ul>

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock

First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman

The wave of apartment proposals sweeping through Mosman shows no signs of slowing, with another major residential development lodged through the NSW Government's State Significant Development pathway.

Developer First Quadrant Properties, which recently completed Willoughby Grounds and has several projects in planning across the North Shore, has unveiled plans for a 63-apartment development on Ourimbah Road, adding to the growing pipeline of projects reshaping one of Sydney's most tightly held harbour suburbs.

The proposal would consolidate nine properties at 40-56 Ourimbah Road into a part eight, part nine-storey apartment building, continuing the momentum created by the NSW Government's accelerated planning pathways that have seen several significant developments emerge across Mosman over the past 12 months.

Designed by Doroch Architects, the project would deliver 63 apartments, resident wellness facilities including a gym, pool and sauna, landscaped communal spaces and basement parking, while using recessed upper levels, generous setbacks and extensive planting to reduce the perceived scale of the building.

<img alt="First look: First Quadrant Properties eyes nine-storey Mosman apartment project under State Significant pathway" data-entity-type="file" data-entity-uuid="32ee68e4-141e-4a10-8f83-48e961a5e71e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Ourimbah%20Road%2C%20Mosman%20a.png?VersionId=CUeILFc6APlwXPc.iplElbxHvREKwjig" />

Doroch Architects said the building had been designed to reinforce Mosman's established character.

"The building's aesthetic is grounded in the existing residential character of Ourimbah Road and the broader Mosman context," the architect noted in the planning documents submitted to the NSW Government.

The design adopts a contemporary material palette of natural stone, textured concrete and brown concave metal cladding, complemented by integrated planters and deep balconies. The podium incorporates softened curved concrete forms, while increased setbacks have been provided adjacent to the heritage-listed property at 60 Ourimbah Road to create a more sympathetic transition.

The site sits around 330 metres from Mosman Town Centre, placing it within the NSW Government's Low and Mid-Rise Housing policy area, where increased residential density is being encouraged close to shops, transport and services.

The proposal follows a string of major apartment projects lodged or declared State Significant in Mosman in recent months, including Abadeen's 100-apartment Honeysuckle Garden redevelopment on Military Road and several other developments across Awaba Street, Redan Street and Muston Street from the likes of Time &amp; Place, HELM and Prosker Property.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Time &amp; Place to take on Mosman apartment market</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/first-look-abadeen-plans-100-apartments-on-former-honeysuckle-garden-site-in-mosman">First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman</a>

First look: Another major apartment proposal signals Mosman's development boom

A new State Significant Development Application (SSDA) could reshape a prominent vacant site in Gosford's CBD, with Ming Tian Real Property proposing a mixed-use precinct that combines affordable housing, retail activation and a new public plaza.

The proposal for 43-45 Beane Street and 2 Keevers Lane would deliver a <a href="https://www.apartments.com.au/new-apartments/43-45-beane-street-gosford-nsw-2250">two-building development</a> comprising a 26-storey residential tower and a five-storey affordable housing building above ground-floor commercial space. A key focus of the project is the delivery of dedicated affordable housing alongside new public domain improvements designed to transform Keevers Lane into a more active urban destination.

Designed by <a href="https://www.apartments.com.au/architects/tony-owen-partners">Tony Owen Partners</a>, the development would provide 130 apartments, including 20 affordable housing dwellings managed by a registered community housing provider for at least 15 years. The market housing component comprises 110 apartments across a mix of one, two and three-bedroom residences, while the affordable housing includes six one-bedroom, 13 two-bedroom and one three-bedroom apartment. The proposal also incorporates 416 sqm of ground-floor retail, three basement levels accommodating 140 car spaces, 42 bicycle spaces, communal open space and extensive landscaping.

<img alt="First look: Ming Tian Real Property plans landmark affordable housing tower for Gosford city centre" data-entity-type="file" data-entity-uuid="9b858791-9060-4ee7-9178-44cb9e640a85" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Beane%20Street%20b_0.png?VersionId=_jbY0mqPEs7.jBZxozR7d6T4u85FoPmb" />

The affordable housing component has been distributed across both buildings, with four apartments located within the main tower and a dedicated five-storey building delivering a further 16 affordable homes. The project also includes 12 adaptable apartments and 24 dwellings designed to Silver Level Liveable Housing Guidelines.

The architectural design draws inspiration from Indigenous storytelling.

"The design is based on the indigenous motif of the Rainbow Serpent," Tony Owen Partners said in the Design Verification Statement.

"The Rainbow Serpent is a traditional totem of coastal eastern Australia. It represents natural forces, creation, change, and rebirth and is often associated with bodies of water. This motif can be seen in the undulation of the balconies rising on the building," Tony Owen Partners said in the Design Verification Statement.

Beyond the residential offering, the proposal seeks to revitalise the surrounding public realm, particularly Keevers Lane.

"The ground floor streetscape includes a commercial and dining precinct which will significantly improve the amenity of the area. This strategy transforms a currently inhospitable laneway into a thriving centre of urban renewal and day and night time activation to compliment the new adjoining UNC facilities," the architects said.

<img alt="First look: Ming Tian Real Property plans landmark affordable housing tower for Gosford city centre" data-entity-type="file" data-entity-uuid="36b0ca6b-af15-424c-81db-9f3049c07b0c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Beane%20Street%20podium.png?VersionId=QCAv7bCitrg3zIGZUHI2z_HR8qVfKbp1" />

The Environmental Impact Statement notes that the project aims to "improve the provision of diverse housing options within Gosford City Centre, enhancing the mixed-use precinct by delivering high quality residential development, whilst concurrently providing a diverse range of housing choices through the provision of affordable housing, which is in growing need within the Gosford City Centre."

The site occupies approximately 2,070 sqm in the Gosford city centre, around 250 metres from Gosford Railway Station and within walking distance of Gosford Hospital, Mann Street's retail precinct and the University of Newcastle's Gosford campus currently under construction. The currently vacant site previously received approval for a lower-scale residential development, with the new proposal leveraging the NSW Government's in-fill affordable housing pathway to increase density while introducing dedicated affordable housing.

First look: Rainbow Serpent inspires bold new Gosford apartment tower

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

<html><body>
With the <a href="/news/everything-you-need-to-know-about-australias-25-000-homebuilder-grant-how-much-off-the-plan-homebuyers-could-save">HomeBuilder grant</a> offering eligible Australians $25,000 towards building or renovating their home, many Australians will be engaging with builders - some for the very first time. 

To ensure your project goes as planned, it is critical you work with a <a href="/builders">trustworthy and reputable builder</a>. However, many Australians struggle to know how to separate the good from the bad. 

A history of unscrupulous behaviour 

We’ve all heard of someone who has had a bad experience with a builder or perhaps even had a bad experience with a builder ourselves. The prevalence of dodgy projects and dodgy behaviour by builders is obvious when you examine the statistics. Over the last ten years, new homeowners across the nation have encountered a $10.5 billion bill to fix defects such as leaks, cracks, issues with plumbing, guttering problems and more.

Another serious issue in the building sector is "phoenixing" where a new company is created to continue the operations of a former company which was liquidated to avoid paying debts. In 2017-2018 in NSW, 561 construction businesses were found to have been involved in phoenixing behaviour. Unfortunately, not all phoenixing activity is illegal and until this is stamped out it will continue to leave consumers vulnerable. 

Why the HomeBuilder scheme could make dodgy behaviour worse

The danger is that schemes like HomeBuilder which promise quick cash may incentivise those builders with a history of wrongdoing to continue to perpetuate the same behaviour. Although builders on HomeBuilder projects are required to be licensed or registered prior to the announcement of the scheme this will not fully protect new homeowners against <a href="/news/how-a-proposed-ratings-system-for-builders-could-protect-investors-from-dodgy-developments">dishonest behaviour</a>. 

Another major issue is the length of the scheme. Between the 4th of June and 31st of December 2020, the scheme covers any building contracts entered during that time frame, with construction required to begin within 3 months of the initial contract date. The issue with this is that builders will be incentivised to enter into as many contracts as possible, with chances of taking on an unachievable workload and cutting corners to finish projects. Unfortunately, there are many builders with a great reputation and who consistently deliver high quality builds who will end up being crowded out by those unscrupulous builders. 

How to select a reputable and quality builder 

The good news is that there are countless builders doing the right thing, delivering high-quality projects to budget and to time. Instead of feeling the need and pressure to choose a builder quickly to meet the limited timeframes of the HomeBuilder initiative, consumers should attempt to take the time to do their due diligence to secure a great and trustworthy builder. 

Here are some ways to vet potential builders for your project: 

<ol>
<li>Check the builder is licensed</li>
</ol>
First things first, you should always check that the builder is licensed. In NSW, this is a simple search on the <a href="https://www.service.nsw.gov.au/">Service NSW website</a>. This will weed out any unscrupulous and unlicensed operators. 

Licensed builders are also covered by insurance. In NSW, licensed builders are required to have home building compensation cover for each project over $20,000. This is to protect consumers in the case that the builder can’t finish building work or to fix defects that may arise.

<ol>
<li value="2">Seek out testimonials</li>
</ol>
Ask the builder for testimonials from former clients. If possible, see if you can speak with former clients to get a true picture of what the experience with the builder was like. 

<ol>
<li value="3">Review past projects</li>
</ol>
Have a look at other projects they have completed. Are they high quality? Have there been any defect issues? 

<ol>
<li value="4">Check credit reports and ASIC listings</li>
</ol>
By checking credit reports and <a href="https://asic.gov.au/">ASIC</a> listings, you will be alerted to any debt issues and will uncover any phoenixing behaviour. 

<ol>
<li value="5">Work with a building broker</li>
</ol>
A building broker will undergo a more extensive due diligence process to help you select the right builder. They will have a panel of vetted and accredited builders to choose from and can match you with the right builder for your project. They can also help you avoid any hidden fees or costs and ensure the contract is sound. The service is free for the consumer. 

The last thing consumers need is <a href="/guides/how-to-buy-a-house-in-2021-a-guide-for-first-time-home-buyers">selecting</a> the wrong builder and seeing money and time go down the drain. This can potentially cancel out the financial value of the HomeBuilder grant completely. By doing your due diligence you can make sure you have a trustworthy and quality builder working on your HomeBuilder project and achieve a much better outcome for your building project.
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vivian_48447

How to Select a Quality Builder for Your HomeBuilder Project

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Are you planning a knock-down and rebuild? Or perhaps you’ve acquired an empty lot and you’re planning to build that dream home on it. 

It’s an exciting time - not everybody gets to plan every single detail of their house. You get to plan your fixtures, fittings and finishes. But it might be worth pausing for a while and considering building two dwellings instead of one on a single block. 

Now, there are a few reasons why you should do a dual occupancy project such as this. It is a tactic favoured by Melbourne’s leading <a href="/new-townhouses">townhouse property</a> developers, so it could be the right play for you in terms of generating wealth. 

Let’s take a look at five reasons why you should consider this move. 

<h2>1. Flexibility and Choices</h2>

If you’re building as an owner-occupier, building two residential dwellings on a large lot gives you more flexibility and choices. For example, you could live in one property and rent the other one out. This allows the rental to enjoy some capital growth until you want to sell it for a nice profit. 

You might even choose to build an<a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide"> investment property.</a> In which case owning a <a href="https://www.littlefishproperties.com.au/side-by-side-dual-occupancy-designs-melbourne/">dual occupancy</a> would increase your rental yield, and in most cases significantly. If you have aging parents, you could move them into the second dwelling while you live in the first. You can be close to them to provide care as they need it. 

By developing two properties instead of one you are giving yourself flexibility and choice. 

<h2>2. Higher Rental Yields</h2>

If you do choose to rent out both or one property, any tenants who come to live there will pay the market rate for the suburb. This means that if you let out a build you’ve completed, you will get a higher return than if you invested in an existing property. This is because you save by building yourself.

<h2>3. To Grow Your Wealth</h2>

With the right support, everyday landowners can generate wealth by embarking on a dual occupancy development. It is a proven, low-risk way to grow personal wealth. That said, if you do it yourself with no prior experience, it will quickly become a high risk, costly venture that could see you go bust. 

If you’re not prepared to put in some time and effort into learning the ropes it can be a fool’s errand. This is why using a property development project manager is a great idea. If you want to attempt a project like this but are time poor or lack the confidence to go it alone using a project manager is a great option. 

<h2>4. To Gain Leverage for Your Lifestyle</h2>

You might have a preference to live in a certain location, but you’ve found yourself locked out of it due to the cost of real estate there. By undertaking a dual occupancy development, you can use your land to springboard off. You could generate enough profit to buy outright in your preferred location or have enough for a tidy deposit and a lower mortgage to pay off. Building two instead of one will give you the flexibility and capability to make your next move, to where you would rather be. 

<h2>5. Tax Benefits</h2>

Owning multiple dwellings gives you some solid tax benefits, including <a href="/guides/property-depreciation-continues-to-maximise-cash-flow">depreciation</a> allowances which can often result in a ripper tax refund. And if you choose to rent out one of the homes you have the potential to be <a href="/expert-insights/buying/targeting-the-right-kind-of-new-rental-housing-with-negative-gearing-policy-changes">negatively geared</a>.

<h2>To Conclude</h2>

So, there are five reasons why building two instead of one could be the right play for you. You get flexibility and choice. And, if you rent out one or both properties you will get a higher return on investment. At least compared to buying an existing rental property. 

It is a proven way to grow your wealth, but only if you know what you are doing. If you don’t, consider engaging professional property developers to manage the project for you. You can use the profit from building two to move to the desired suburb, and you get to enjoy the tax benefits that come along with it. 

Good luck and happy developing! 

 
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antoniourban

5 Reasons Building Two Instead of One Could be The Right Play

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If you're looking for an investment property which will appeal to families, choosing the type of property in the right suburb will make a difference in the long run.

The question is what are the key elements that make a family friendly suburb appealing to <a href="/developments/wa">Western Australians?</a> And what are some top considerations that families look for when they evaluate buying into a suburb? 

Schools (and childcare)

Proximity and catchment areas of well reputed schools with education facilities from kindergarten, primary and secondary schools is a key factor when a family decides to purchase a home. This also includes child-care facilities available nearby. Suburbs with top performing schools often fetch higher priced properties. 

Closeness to Natural Recreation Areas e.g. Water Bodies/ Reserves

Affordable beach-side living is one of the <a href="/developments/perth-wa">many things that Perth</a> is just blessed with. Suburbs closest to the beach or Swan River often fetch the best prices. There are also lakes and ponds that provide the perfect family play and picnic areas. 

One of the main reasons that families prefer residential areas with a water body is the number of water activities that are provided. From young children to adults, beaches, rivers and lakes provide active fun as well as a great lifestyle e.g. surfing, body boarding, wake boarding, waddling, snorkelling, canoeing, swimming, beach volley and so much more.

Another popular feature is being close to bushland or reserves where families can go for long walks or bicycle rides and explore nature.

Community Facilities

Shopping Centres, Post Offices, Libraries and a Community Centre – all these play an important role in the consideration of suburb to live in. These conveniences will help support the busy needs of families. 

Community centres also provide a way for local families to connect and there are activities promoted by local councils which give social involvement opportunities for the young and elderly alike.

Suburbs which host functions at the local council centre allows for opportunities for families from the neighbourhood to meet and get to know one another. Some popular activities include reading groups for young children, children Lego clubs, local farmers markets, fetes, fairs and other functions as well. Some libraries host book clubs, art classes, writing classes and basic computer classes for free to help their community.

Another added bonus would be having Hospitals and Medical Centres located close by in the event of necessity. 

Especially important for young families are the playground infrastructure. How many playgrounds are there in the suburb? How accessible are they from the residence? Children love to play at playgrounds and or hit balls at parks - this is a necessity for healthy growth. Parents can catch up for chats or go for a beautiful leisurely walk in the park, then catch up for a coffee nearby. 

Crime Activity - Is the suburb safe? 

Safety and security are key features of a family-friendly suburb. In reference to the crime statistics (<a href="https://www.police.wa.gov.au/Crime">https://www.police.wa.gov.au/Crime</a>), you can find out what the person/ property crime rate ratios are and choose investing in certain safer neighbourhoods. As safety is of paramount importance, this list gives you access to specific neighbourhoods (<a href="https://www.perthcrimemap.com/">https://www.perthcrimemap.com</a>/) and how safe it is.

Public Transport

Although this may not be top on the list at first glance but rises in importance as children become teenagers and gain independence by travelling to school by busses and trains. Connectivity to major transportation line should always be considered.

Finally, it is important to bear in mind, the community itself is an important factor of consideration. 

If you would like to know more about the top choices for family suburbs in Perth, feel free to contact us for more information.

<h2>Properties for sale in Perth:</h2>

[smartcode_project:default project_id=7854]

[smartcode_project:default project_id=7836]

[smartcode_project:default project_id=26734]
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Nick Dante

How to locate the right family suburb in Perth

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Congratulations, it's settlement day and you've just reached for a bottle of French Champagne that’s been patiently waiting on ice all day long. You gently loosen the cage, lean the bottle 45 degrees in anticipation for the cork to be set free, followed by celebrations and joy!

Wait a moment, how did this property settlement which you purchased as your dream home or calculated investment for your future come to be?

The settlement of a property is the legal process where ownership formally passes from a vendor to you as the purchaser. In the state of NSW, settlement periods are traditionally 42 days/ 6 weeks from exchanging of contracts for an established property. For an <a href="/guides">off the plan purchase</a>, the settlement period runs parallel with the construction program, progress of the subject property, the occupational certificate being granted authorising the property to be habitable and strata plan registration with the NSW Land Registry Services. 

[smartcode_project:default project_id=6999]

Most off the plan projects will commence sales prior to construction. This is regularly to achieve a set percentage of pre-sales to reach the desired sales target. Once reached, this will most often mark a significant milestone, which allows for demolition and construction works to commence. Demolition, civil works &amp; excavation, columns, and slabs/ levels, the construction topping out (top floor reached), lock-up stage celebrates the building being weather tight and builders transitioning to internal fit-out and final completion of construction are all key industry milestones. 

Leading up to settlement, <a href="/guides">it is always very important to stay organised</a>. Naturally, you will have your own team to assist you, and this will include your lawyer, solicitor or conveyancer; who assisted you in completing due diligence on your paperwork when you exchanged on your purchase as long as 18 months ago. Added to your team, for most purchasers will be your Bank, Lender, Mortgage Broker or Financial Institution by the way of providing finance or a loan on your purchase. Your accountant will also likely be involved at some stage as independent financial advice is always recommended.

What happens if you've just been contacted and invited to come and complete a pre-settlement property inspection? 

This is an opportunity to arrange a convenient appointment to inspect your property and to provide the property agency or developer feedback on any items you feel require extra attention or repair work. It is important to remember construction is human-made and it may be the year 2020, technology has not quite taken over. 

Naturally, items will be found and construction is still a form of art. There could be a chip on a tile, a mark on a wall, and even a squeaky hinge on your front door. Look low and look high, run your eye line along the full length of the walls, open and close cabinets and storage. Turn all lights on &amp; off. Bring a smartphone charger and test all the power points. Write down as many items you would like to bring to their attention. 

[smartcode_project:default project_id=6769]

The entire process is highly subjective, and an extra set of eyes is invaluable in completing your pre-settlement inspection. As backup, don't forget about the carpenter in the family or a close friend who's in the construction industry, or a contact who's recently been through a similar purchasing process or even work in the property industry. If you don't feel comfortable in your know-how or are overwhelmed by the thought of this inspection, there are companies that specialise in assisting with property inspections and this crucial step.

Lastly, here are some <a href="/guides">useful tips and questions</a> to bear in mind if you were to conduct an inspection:

<ul>
<li>Read any communication or construction updates provided.</li>
	<li>Touch base with the property agency or agent who sold the property to you. </li>
	<li>Walk or drive past every now and then to confirm progress with your own eyes.</li>
	<li>As construction is nearing settlement, your legal representative will receive correspondence from the vendor’s side. </li>
	<li>Have your financial pre-approval in place.</li>
	<li>Complete a pre-settlement inspection and keep records of any items, which require further attention. </li>
	<li>Pass this record to your legal representative so it can also be documented from their end.  </li>
	<li>Your financial institution will likely need to complete a property valuation. </li>
	<li>The agency or agent will most likely be the point of contact for this step.</li>
	<li>Are there any registration or resident register forms, which need to be filled out and returned? </li>
	<li>Are there any guidelines, by-laws, moving in procedures, waste &amp; rubbish removal, vehicle registration forms?</li>
	<li>If handed a settlement pack, warranty manuals, and any additional collateral/ paperwork. These are best kept in a safe space, should they be required in the future. </li>
	<li>Contact details for a strata manager, caretaker, concierge, building manager.</li>
</ul>
Now that you've settled all matters and you have your set of shiny keys, it's time to get back to the champagne and a toast your property milestone.

Congratulations!

[smartcode_project:default project_id=8032]
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jieyee_46282

How can purchasers prepare for an upcoming off the plan settlement?

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Property depreciation is the second biggest tax deduction for property investors after interest, yet 80% of investors fail to take full advantage of it. 

With the COVID-19 pandemic placing financial strain on many investors across the country, it’s important that they do all they can to maximise their cash flow. 

What is property depreciation?

As a property gets older, its structure and the assets within it wear out – they depreciate. <a href="/new-apartments">Owners of residential investment properties</a> can claim this depreciation as a tax deduction. 

Most investment properties, both new and old, hold lucrative depreciation deductions. Depreciation is a non-cash deduction, this means investors don’t need to spend any money in order to claim it. 

How can investors claim depreciation? 

Depreciation can be claimed under two categories – capital works and plant and equipment. 

<a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">Capital works</a> refers to the structural and fixed components of the property. Some common examples are walls, mortar, doors and kitchen cupboards. 

Owners of residential investment properties that commenced construction after 15 September 1987 can claim capital works deductions at a rate of 2.5 per cent for forty years.

If an investment property was constructed before 15 September 1987, investors should still enquire about depreciation deductions available as these buildings have often undergone some form of renovation. 

Plant and equipment deduction refers to the easily removable fixtures and fittings of the property. For example, carpet, blinds and hot water systems. Depreciation deductions for plant and equipment assets are calculated based on their effective life. 

Depreciation for plant and equipment assets was affected by 2017 legislation changes. Under the current legislation, owners of second-hand residential properties who exchanged contracts after 7:30pm on 9 May 2017 cannot claim deductions for previously used plant and equipment assets. Owners of second-hand properties can still claim depreciation for any brand new assets installed in the property once it’s income-producing.

It’s important to note that depreciation deductions can be claimed as long as the property is genuinely available for rent. This means that if an investment property is vacant while the owner is searching for new tenants, they can still claim depreciation during this time. 

Investors must ensure they claim maximum deductions 

A thorough site inspection is essential to achieve the highest possible deductions and to <a href="/guides/18-ongoing-rental-property-costs-and-which-ones-are-tax-deductible">ensure accuracy</a> while maintaining full compliance with the Australian Taxation Office (ATO). 

A specialist site inspector will measure the building and floor coverings, note down the construction method, workmanship, materials used and condition of the property. Another important step during a site inspection is to identify as much qualifying plant and equipment assets as possible. 

The information gathered from the site inspection is used when completing a tax depreciation schedule and supports deprecation claims in the event of an ATO audit. Only quantity surveyors can calculate depreciation as they are one of the few professionals recognised by the ATO as having the skills to estimate construction costs for depreciation purposes. 

An investor’s accountant will use a tax depreciation schedule to determine depreciation deductions for each financial year. If an investor has owned an investment property for several years and hasn’t claimed depreciation, a tax depreciation schedule can help them claim back missed dollars by adjusting previous tax returns. 

<a href="/guides/how-to-navigate-buying-property-during-the-covid-19-crisis">Depreciation deductions</a> help investors maximise the cash flow from their investment property. If an investor orders and prepays for a tax depreciation schedule before June 30 they can claim the fee straight back this financial year.
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Property depreciation continues to maximise cash flow

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The key to balancing a portfolio is to create a portfolio that pays you, and you never pay for it. By adding properties that increase your before-tax income as well as your equity position, there is no risk of overextension. 

An unbalanced portfolio is one where you don’t have direct control over your capital or your cash flow or worse still, both. You lose control of your capital when you are 100% reliant on the market movements to give you all of your <a href="/buildings/nbh-at-lachlan-s-line-25-27-epping-road-macquarie-park">capital growth</a>. You lose control of your cash flow when your portfolio requires input from your salary to maintain itself. I want to stress here that this includes any reliance on your tax deductions, because if you lose your job these quickly disappear, and you clearly have no control over that. 

The most dangerous thing about an overextended portfolio is that most people only discover that they have made this mistake when something goes wrong. If you build a portfolio that requires everything to go perfectly every single time, obviously at first everything looks great. It is only when your circumstances change that this error is exposed, and you instantly understand the danger you are in. That’s why it is critical to only invest in properties with a safety margin built in. 

We work on three key safety margins with our clients: deposit preservation, cash flow security and safety buffers. 

Deposit Preservation

The approach most investors use is what we call the “buy, hope and pray” approach. Buying at full retail prices leaves your deposit <a href="/guides/looking-to-buy-an-investment-property-top-3-things-you-must-do-online-first">tied up in a property</a>, waiting for the market to move. In the current market conditions, people are discovering the limitations of this and how they can in fact lose money this way. That is why we make sure our clients generate their own equity in a deal. We want to create equity instantly in a deal so that upon completion, we can immediately recycle our deposit back out of the deal no matter what the market is doing. This way we never run out of deposit funds because it is never left tied up in an investment and we lose control of our money. 

Cash flow security

Never create a property portfolio that requires you to have a job to sustain it. If you are tipping in money each week or you are dependent on tax deductions for cash flow, your portfolio is exposed. The day your employment changes, your portfolio cannot sustain itself and it is overextended. Worse still, in a flat market, you are locked into working at your job for many more years, because you are unable to sell down your portfolio and realise profits to eliminate some of your debt. 

We only invest in properties that are cash flow positive before tax. This means that every time you add a property to your portfolio your cash flow security increases, it doesn’t decrease. Tax deductions are great and you should most certainly consider them, but they are not enough to sustain a portfolio. My personal portfolio is positive cash flow by $87,000 a year, but I also get over $142,000 in tax deductions so I get the best of both worlds. If I were to stop earning, my portfolio is clearly safe and I am not overextended. However while I am earning, my portfolio gives me amazing <a href="/expert-insights/buying/4-reasons-to-have-faith-in-australia-s-property-market-for-the-long-run">tax savings</a>. 

Some people believe that you need to choose between equity creation, growth opportunity and cash flow, and it’s simply not the case. We invest in properties that have all three, all the time. We highly recommend having the right Safety Buffers in place. We constantly tell our clients to plan for the worst but hope for the best, this way they are prepared. Overextending ourselves happens when we can’t handle a single thing going wrong. We encourage our clients to keep safety buffers for these events in their offset accounts. What usually surprises most people is that the amount they need is significantly less than what they are imagining. 

Vacancy Buffers

How long do you really think it would take to get a new tenant? If you think conservatively 4 weeks (representing a 7.7% vacancy rate, well above the average), then you keep 4 weeks’ worth of interest repayments in your offset account. On a $500,000 mortgage that’s only around $435/week, so a tiny buffer of just $1,740 easily has you covered. Very inexpensive peace of mind. 

<a href="/guides">Interest Rate Buffer</a> 

Do you fear an interest rate increase? If so, by how much? If your portfolio is struggling to be cash flow positive then a 0.5% rise can send you into negative territory. If that happens, how much additional money would you need to make up the difference? Let’s say this puts you negative to the tune of $100/week, then for peace of mind, you keep $5,200 in your offset account to cover it. 

Unemployment buffer 

People always ask, “what if I lose my job?” and believe they need to save up their entire salary as a buffer but this isn’t the case. Others mistakenly believe they need to save up all the interest repayments for the portfolio, but you don’t need anywhere near that much. 

The first question is, how long do you believe it would be before you find a new job? 12 months would have to be the nightmare scenario, so let’s factor that in. Right now, how much cash are you tipping into maintaining your portfolio each week? You need to include the tax savings you are getting too if they contribute to your portfolio survival. If you’re really negative on your portfolio and you are putting in $100 a week and you get $200 a week from tax too, that’s $300 a week you need to cover. For a full year of unemployment, all you need to keep your portfolio protected is $15,600 in your offset account. If you think 6 months is much more probable, then you just need $7,800 to cover your employment exposure. 

So, you can see that even if the perfect storm were to hit and you had all three happen at once, for around $20,000 you can have it all covered off and know that your portfolio is secure. 

Balancing a portfolio by investing in properties with safety margins built in, is the most reliable way to create wealth with property. This will also mean you avoid getting stuck in underperforming assets and slow your wealth creation by years. Overextending your finances by building a portfolio that’s dependent on your income is a ticking time bomb. While buffers will help, the safest and most reliable path to wealth, is building a portfolio that pays you and you don’t pay for it.
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Balancing a Property Portfolio

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Dipping property prices, rock-bottom interest rates and less competition at auctions have opened up plenty of opportunities for home buyers, but there’s one segment that isn’t enjoying any of these benefits: <a href="/guides">off the plan</a> and late settlement buyers. 

These are the forgotten purchasers who bought not-yet-built homes a couple of years ago and those who exchanged contracts prior to March 2020 but now have to settle in the post-COVID lending environment. Right now, these groups are facing two massive problems: 

First, while they may have gotten pre-approved by their lender in the months leading up to the COVID-19 outbreak, that doesn’t count for much anymore. Nowadays, banks and lenders will consider your circumstances when you have to complete on the property, and since COVID-19 many Australians have found themselves on shaky financial footing. Plenty have lost their jobs, or have had their hours cut and their incomes reduced. Many investors are receiving less rent as their tenants cope with the fallout. This has put pressure on lenders to be a lot more discerning when deciding who to do business with. Many are even refusing to consider borrowers in certain industries, even if their circumstances haven’t taken much of a hit. 

The second problem is valuation by banks and lenders of your purchase. With some economists warning that property prices could plummet by up to 30%, valuers are getting jittery. Suddenly, that unit you purchased for $750,000 off the plan a year ago, might only be worth $700,000.  This is bad news for borrowers because now they have to stump up an extra $50,000 to buy a property at a time when families are being stretched beyond their means — and parents may not be able to lend any money to save the day. 

These two big problems may mean that a purchaser won't be able to settle. Even worse, they could lose their 10% deposit and potentially be sued for the difference if the vendor sells to someone else for less money. 

Legislation needed to protect pre-COVID purchasers 

I am extremely concerned about these borrowers. So far, the COVID-affected property cohort has received assistance in the form of repayment deferrals, bans on rental evictions, and reductions in land tax for landlords whose tenants aren't paying full rent. At the same time, the government is still allowing vendors to demand settlement or completion of purchases as booked in pre-COVID. This is extremely unfair to purchasers as they’re being put at risk of losing their deposits and facing litigation. 

The government urgently needs to introduce legislation extending settlement periods for these purchasers by at least 12 weeks, on top of the standard 42 days. Some of the funds being provided to small businesses from the government should also go towards bridging loans for these borrowers. Rates should be kept low and interest capitalised to give them time to get their financial lives back in order so they can complete their purchases. 

All told, something has to be done or there will be a flood of properties to hit the market from those who have found themselves unable to settle, putting the market in an even greater state of disarray than it already is. To those purchasers who are currently in this mess, I would suggest speaking with the solicitor who is taking care of the purchase. Get him to talk to the vendor's solicitor and ask for an extension due to COVID. While they don’t have to agree it's still worth a try. 

ASIC has also advised lenders to  to take the COVID situation into account and ‘exercise their good judgement’ in the principles-based approach to lending. This seems to mean that the banks may start to be more lenient to borrowers and even allow for interest-only loans for an extra 12 months to help reduce the payments the borrower has to make.
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The plight of the off the plan or late settlement buyers during COVID-19

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Every <a href="/new-apartments/perth-wa">property in Western Australia</a> has to adhere to the mandatory legal compliance set out by the Consumer Protection Division and property owners are held liable to ensure its compliance. This checklist will help you ensure that risks are mitigated while protecting lives and assets.

1. Protection from Fire: Installation of Smoke Alarms &amp; Residual Current Devices (RCDs)

We have seen the devastating effect of bushfires across Australia. Measures for fire protection, especially in WA’s desert-like climate, are imperative to ensure the preservation of lives and our community. Interestingly, most fires occur at night. Smoke from the fires has also a lulling effect which draws a person deeper into sleep and therefore, we need external measures to alert us to the risk of fire – such as smoke alarms and Residual Current Devices (RCDs).

What is an RCD? 

An RCD, designed for protection against the risks of electrocution and fire caused by earth fault, is a sensitive safety device that switches off electricity automatically if it detects a fault. Two RCDs are required in a WA home – one for the light circuits and the other for power points. Based on local regulation, the two Remote Control Devices (RCDs) are required to be installed on the switchboard by the Property Owner prior to leasing a property. 

It is mandatory that powered smoke alarms are installed in all new residential buildings or extensions since 1st July 1997. From October 2009, it is obligatory for Landlords to ensure that the main powered smoke alarms are fitted in existing residential buildings prior to sale or signing of a tenancy agreement, in accordance with the Building Regulations 2012 prescription. 

2. Window Fittings &amp; Anchors: Product Safety

For the safety of young children,  since 2004 the Department of Commerce has been regulating the product safety of window fittings, window treatments and furniture anchors. The regulation places the onus on Property Owners in ensuring that the internal window coverings supplied (blinds, curtain cords, chains) meet with the national product safety requirement standards. For example, any exposed cord or chain that hangs lower than 1.6 metres from the floor must be secured by a safety device otherwise they may be in easy reach of young children.

In recent news, tenants now have permission to anchor furniture to protect children. Bookcases, glass display cabinets, drawers, and shelves pose a serious hazard if they are not properly anchored. A tragic <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-01-08/ikea-to-pay-%2466-million-family-2-yo-boy-killed-tip-over/11850246">case</a> this early year where a two year-old boy died after a clothes dresser tipped onto him at IKEA illustrates just how important this rule is.

However, tenants who have secured their furniture must repair them prior to vacating the property at their own expense including holes in the walls. As for furnished rentals, it is the duty of landlords to anchor furniture prior to tenants moving in.

3.  Locks &amp; Lights: Property Security 

With reference to the Residential Tenancies Regulation 1989, every WA property must have a minimum level of security to prevent break-ins. This includes door locks, window locks, and sufficient exterior lighting. The Department of Commerce details the requirements for this, and they include: 

<ul>
<li>The main entry door. This needs to either be a deadlock or a key-lockable screen door to the Australian Standard AS 5039-2008.</li>
	<li>Other external doors (excluding balcony doors where there is no access to the balcony except inside the premises): a deadlock or, if a deadlock cannot be fitted, a patio bolt lock or a key lockable security screen to the Australian Standard AS 5039-2008.</li>
	<li>Exterior windows (excluding windows fitted with security grilles to Australian standard AS 5039-2008, windows on, or above the second floor of the building and where the window is not easily accessible from outside the premises): must be fitted with a lock that prevents the window from being opened from outside. </li>
	<li>Main entry: Electrical light should be installed to light up the premises. It must also be fitted to or near the exterior of the residence.</li>
</ul>
Without the consent of both the Owner and Tenant, it is illegal to remove or change any locks of the premise. A case that bears an exception to the general rule is where there is Domestic Violence. Here a Tenant may change the locks at their own expenses without permission to safeguard their wellbeing. 

4. Swimming Pool, Spas and Ponds: Body of Water

One of the most preventable causes of death for young children (0-5) is drowning, thus precautionary measures are recommended to regulate any body of water. 

<blockquote>
“All private swimming and spa pools that contain water that is more than 300 mm deep must have a compliant barrier installed that restricts access by young children to the pool and its immediate surrounds”. 
</blockquote>

Western Australia Swimming Pool &amp; Spa Association

Local councils conduct regular inspections, once in every four years, to ensure that bodies of water in premises meet the requirement of appropriate safety barriers. While the regulation may differ for pools and spas built before 2001 and post-May 2016, it is best to <a href="https://www.commerce.wa.gov.au/sites/default/files/atoms/files/195697_web_rules_for_pools_and_spas_a4_booklet_feb_2019.pdf">double-check</a> with the local council on the specific requirements. 

 

Written by: <a href="https://www.timeconti.com.au/">Time Conti Sheffield’s</a> Cindy Knight
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Does your property comply with the mandatory standards in WA?

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Ever wondered how <a href="/guides/how-much-can-i-borrow-for-a-new-home">borrowers</a> on average incomes manage to borrow millions of dollars? If lenders apply buffers to mortgage debt, how can investors continue to borrow?

This can be done by carefully structuring your loans and using different lenders over time to maximise your borrowing capacity. Understanding how different lenders calculate borrowing capacity can help you go from one property to many! Whether you are on your first investment or your tenth, lenders will use their serviceability calculators, calculate your income and expenses, and will lend to you based on what ‘surplus’ is available. Property investors can take advantage of differences in the way each lender calculates this ‘surplus’ to build larger property investment portfolios. 

The principle is that investors can grow a larger portfolio by using a pool of lenders, rather than by having all their loans with one individual lender (and assessed on one servicing calculator). In fact, property investors can borrow a ‘multiple’ of their borrowing power with an individual lender.  At Confidence Finance, we call this the ‘finance multiplier’.

In today’s lending environment, this finance multiplier can be close to 100%.  That is, by correctly structuring your finances and choosing the right lender at the right time, it is possible to almost double what you could have otherwise. The key to this is to understand the typical characteristics of property investors and how this feeds through to individual lender serviceability calculators.

Firstly, rental income forms a larger proportion of their income. As you accumulate a larger portfolio, your rental income grows not only in an absolute sense, but also as a proportion of your household income.

Secondly, investment debt expenses are higher than most other borrowers. As a portfolio grows over time, so too does investment debt. This will often be a property investor's largest ‘expense’ in their serviceability calculation.

Now, this is where the knowledge of different servicing calculators can really benefit you. Rental income is treated quite uniformly between different lenders, generally taken at 80% of your actual rental income. On the other hand, investment debt expenses are treated very differently by different lender calculators. This means that as property investors grow their portfolios, there is a greater divergence between what individual lenders will allow you to borrow, as they are placing different buffers on your existing repayments. These buffers mean that the ‘assessed’ expenses in serviceability calculators continue to rise with each individual investment purchase more than the rental income that is created.  The net effect is lenders will lend less and less to you as you grow your investment portfolio.  

So how do property investors diversify their lenders to borrow more? For property investors seeking to maximise their borrowing capacity, it makes sense to begin your investing journey with a lender that gives you maximum flexibility to revalue and release equity. These are often, but not always, the larger banks in the market.

Once your borrowing capacity is ‘soaked up’ with these lenders and they are no longer willing to lend more to you, property investors can swap to an aggressive lender and continue to grow their portfolio. These aggressive lenders tend to be smaller lenders whose servicing calculators apply smaller buffers to existing debt obligations. That means assessed expenses are lower with these calculators and therefore they have a higher net surplus to leverage. This results in greater borrowing capacity, often double than what you would be looking at if you only tested your servicing with the big banks.

Keep this in mind if you are with a major bank and being told no. There are finance options and strategies that savvy investors can use to keep growing a portfolio.
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How understanding servicing calculators can double your borrowing capacity

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For some people the mere mention of “due diligence” can cause their eyes to glass over and throw their arms in the air that it's all too hard. We understand, so we have simplified this sometimes arduous, but absolutely necessary process down to 3 simple steps.

Whether you are looking to purchase your first investment, or on the search to add to your already growing property portfolio these three steps will help you buy with confidence. 

Know the location.

We have more online information at our fingertips than ever before, so while we believe this is one of the most important aspects of property investment it can also be the easiest. Below are some great sites that give you a snapshot of your preferred location.

<ul>
<li><a href="https://www.microburbs.com.au/">Microburbs.com.au</a></li>
	<li><a href="https://www.corelogic.com.au/">Corelogic.com.au</a></li>
	<li>Planning.NSW.gov.au ( just swap out the State eg planning.VIC.gov.au)</li>
</ul>
What you are looking for:

<ul>
<li>Demographic: you need to understand what type of people live in this area. This is especially important so you know the type of tenant you are going to attract.</li>
	<li>Infrastructure: what facilities are there? Schools, shops, libraries, parks, green spaces</li>
	<li>Public Transport: is there a train line that you could buy near or would your tenant need to have a car?</li>
	<li>Planned Developments: Is your property about to be inundated with more development which could put downward pressure on your rental income. If you are looking to buy a house it's good to know what applications are surrounding the house as this will be an issue for any tenants in terms of noise and possible disruption to their street if its an inner-city dwelling.</li>
</ul>
Plan for the <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">best tenant</a> at the highest rate.

Tenants have lots of choices so make sure your property will stand out. It's no good buying a cheap property if you can’t rent it out for a good rent or it attracts the wrong sort of tenants. 

The last ten years of development boom is now putting downward pressure on pricing especially in this COVID19 world, but the strong properties that meet the below criteria hold their rental value and generally rent out quickly.

<ul>
<li>This is what we advise our clients that tenants are looking for:</li>
	<li>Walkable public transportation or has car spot</li>
	<li>Lots of natural light (always know the aspect of the property)</li>
	<li>Good size master bedroom</li>
	<li>Functional floorplan - the flow of the property has to be liveable. If it doesn't make sense to you it probably wont to a potential tenant</li>
	<li>Property outlook - if the property is facing a busy main road, electrical towers, brick walls etc it will be harder to rent</li>
	<li>Sufficient storage</li>
	<li>Preferably with an outdoor space</li>
</ul>
Once you have identified some properties that meet the above criteria then you narrow it down by going through the numbers.

Know your numbers.

Firstly you have to <a href="/guides/how-to-ensure-financial-return-on-your-property-investment-in-15-simple-steps">have a budget</a> and you have to stick to it, always. Then, it's about getting the best value for money. Property investment is about making money, so remove any emotional connection you may have to a certain property or area. Once you have chosen an area and identified properties that could fall into your budget it comes down to the numbers.

There is lots of talk about what capital growth and yield makes a good investment. Capital growth is the increase in an asset's or investment's value over time. It’s measured by comparing the asset's current value with how much it originally cost.

Yield is the earnings generated and realized on an investment over a particular period of time. It's expressed as a percentage based on the invested amount or current market value.

A good indicator is if your investment doubles in value every 7-10 years and you look for a gross yield of above 4%. It’s a balancing act getting these two indicators right and will depend on the area and value of your property.  When you find that property that is in a sound location and has features and benefits that will excite tenants you can begin the negotiation process, just don’t go over your budget.

Happy investing.
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