For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

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?

<html><body>
Last week the Domain Group published its house price report for the December quarter 2014 revealing that Sydney house prices rose 4.1% for the quarter up from 3.5% in the previous quarter.
Apartment prices also rose by 2.9% over the quarter which followed the September quarter which was also up 1.4%. Annually, Sydney house prices have increased by 14.1% and apartments have increased by 10.4%. All very interesting, however it means very little given this is the compiled figure for Sydney and is not representative across all households – even though many home owners believe it is.
For the first time that I can remember the top 10 Sydney house sales were all above $10 million mark, which is an amazing feat in itself.
No, I am not about to go into <a href="/expert-insights/sydney-top-end-sales-skewing-median-price-robert-simeon">how the top end sales skew the median prices</a> – given I treat this data with a grain of salt.
My preferred method is to look under the bonnet to see what actually is going on – by looking at the annual number of trades and the total volume of trades in dollar terms. I find this an interesting method which tells me much, much more about what exactly is happening in the marketplace for both apartments and houses.
This week I did just that – I broke down the figures for Mosman which has one of Sydney’s highest property turnover rates, and the figures are very interesting and in some instances quite amazing.
Mosman Houses
<ul>
<li>2014 – 329 recorded sales with a total value of $1,078,328,672 *</li>
<li>2013 – 379 recorded sales with a total value of $1,061,295,721</li>
<li>2012 – 286 recorded sales with a total value of $802,560,700</li>
<li>2011 – 271 recorded sales with a total value of $794,649,292</li>
<li>2010 – 316 recorded sales with a total value of $901,963,149</li>
<li>2009 – 279 recorded sales with a total value of $734,026,251</li>
<li>2008 – 247 recorded sales with a total value of $702,686,112</li>
<li>2007 – 376 recorded sales with a total value of $1,133,609,387</li>
</ul>
*This figure will increase as more sales settle in 2015
What this tells me is that Mosman house sales are getting back to where they were in 2007 (pre-GFC) given 2013 and 2014 both broke the $1 billion sales volume barrier.
Mosman Apartments
<ul>
<li>2014 – 467 recorded sales with a total value of $461,024,250*</li>
<li>2013 – 482 recorded sales with a total value of $478,346,540</li>
<li>2012 – 472 recorded sales with a total value of $396,810,977</li>
<li>2011 – 477 recorded sales with a total value of $387,294,595</li>
<li>2010 – 473 recorded sales with a total value of $391,925,992</li>
<li>2009 – 484 recorded sales with a total value of $411,218,407</li>
<li>2008 – 442 recorded sales with a total value of $323,799,406</li>
<li>2007 – 485 recorded sales with a total value of $400,122,811</li>
</ul>
*This figure will increase as more sales settle in 2015
So for the past eight years the number of apartments sold in Mosman each year has been between 442 and 485. Houses however have ranged from 279 to 379, so it is much easier to predict how many apartments will be sold in 2015 – 473. Now that is what I would call baffling data.
Back in 2007 the cash rate moved from 6.25% to 6.75% where today it sits at 2.50% with many suggesting a strong possibility it will be cut next week when the Reserve Bank of Australia meets – I don’t believe they will cut at this point although further cuts are inevitable.
<img src="/images/2015/02/03/simeon%20feb%203%20one.jpg" alt="">
Source Domain Group
I find this Domain Group graph fascinating as it clearly identifies what many already know: markets are always self-correcting. Brisbane, Adelaide, Darwin and Hobart apartments are identifying value declines and Darwin is the only state/territory identifying house value declines despite a record low cash rate.
Will the Australian property investors start investing in these areas that are in decline? Absolutely not; investors much prefer to invest in areas identifying capital growth over declining markets given concerns that these markets will decline further.
Sydney’s overall vacancy rate sits at a very tight 2.0% despite concerns that the bull run of investors into the market has not even put a dent in the vacancy rate.
Only when you break down the numbers in demographic property markets do we start to clearly identify how the markets speak in volumes.
</body></html>

robertsimeon-hRNTwJyXkQ

How the markets speak in volumes: Robert Simeon

<html><body>
John McGrath has always been passionate about the property prospects of Sydney's inner ring suburbs.
But last week he went a little further saying suburbs close to the city are becoming so desirable that they will be "hot forever".
The high profile agent stopped short of declaring inner city property prices were immune from price falls.
But the chief executive of McGrath Estate Agents told Fairfax Media these areas would always be attractive to buyers. 
"There is just no end of demand from overseas and local buyers who want to live in those precincts," McGrath said.
McGrath pointed to their proximity to the city, beaches and lifestyle amenities such as art galleries and restaurants.
Interest in the topic was illustrated on the trendolizer<a href="https://australia.trendolizer.com/2015/01/sydney-inner-ring-property-may-be-hot-forever-says-john-mcgrath" target="_blank"> trend </a><a href="https://australia.trendolizer.com/2015/01/sydney-inner-ring-property-may-be-hot-forever-says-john-mcgrath" target="_blank">graph</a>.
"There is sometimes a very minor [price] correction for a small amount of time but generally speaking Sydney is becoming a New York," McGrath suggested.
"It's a big international city and people want to live in it ... and there's very limited stock available. It's always going to be blue-chip and a market leader."
The commentary came with a caveat as McGrath tips price growth in the inner ring will actually lag other suburbs in 2015 because much of it had already "outperformed" other areas in 2013 and 2014.
Bill Randolph, director of the City Futures Research Centre at the University of NSW, warned over-densifying the inner circle will make the suburbs less desirable.
AMP Capital chief economist Shane Oliver the inner ring was affected by "interest rate cycles, recessions, building booms and busts", but felt the impact tended to be far less than the outer suburbs.
Analysis of the past decade by Domain Group's senior economist Andrew Wilson found properties within Sydney's inner 10 kilometre radius had risen 71.5%, compared with 48.4% further out.
From its Paddington origins, McGrath Estate Agents reported December sales figures of $1.02 billion from 1,018 sales for its 62 office network, directly on the back of its 25-year record in November 2014 with $1.27 billion from 1,237 sales. 
McGrath advised that eight offices clocked record sales figures for December.
Sales activity was diverse with 274 sales over $1 million; 65 sales over $2 million and 9 sales over $5 million.
“When we look at the property landscape compared with twelve months ago, property has well and truly rebounded along the Eastern Seaboard, with very strong activity across metropolitan Sydney from Epping in the northwest to Sylvania and Brighton-Le-Sands in the south. The Central Coast is also benefiting from an upsurge in upgraders and investors across all price brackets.
“The strong growth recorded from our Mosman office is in line with our view that the prestige market will perform very well this year off the back of a relatively quiet year in 2014 compared to the rest of the market.”
The top five McGrath offices for growth in the past 12 months were:
<ul>
<li>Brighton-Le-Sands reports $34.6 million (+ 174% on December 2013)</li>
<li>Mosman reports $60.3 million (+167% on December 2013)</li>
<li>Palm Beach (QLD) reports $11 million (+145% on December 2013)</li>
<li>Epping reports $48.4 million (+88% on December 2013)</li>
<li>Warners Bay reports $15.2 million (+87% on December 2013)</li>
<li>Other offices in the group that posted record sales performances for December were:</li>
<li>Sylvania ($25.5 million), Belconnen/Gungahlin in ACT ($23.9 million) and Gosford ($13.6 million).</li>
</ul>
{mijopolls 85}
</body></html>

jchancellor-FAypfDUnLy

John McGrath ignites Sydney's "hot forever" inner ring debate

<html><body>
A record $2.8 billion worth of residential, commercial and hotel developments was approved by the City of Sydney’s chief planning body last year.
Some of the biggest developments approved include the $660 million AMP Circular Quay Precinct, two residential developments in the heart of the city that will be over 230 metres high, and the University of Sydney’s $97 million stage-one campus masterplan. 
Other developments approved by the committee in 2014 included a $100 million hotel-residential development on Kent Street, a 25-storey mixed-use development on Clarence Street worth $89 million, and a $50 million hotel-to-residential conversion in Potts Point.
Lord Mayor Clover Moore said these major building projects would help increase residential and commercial floor space.
“Sydney is thriving and in 2014 the Central Sydney Planning Committee approved 20 development applications worth a combined $2,792,972,230," she said.
Moore was particularly pleased a $25 million creative hub is being built as part of Greenland’s Bathurst Street residential development, and two new childcare centres will be built at a new development at 505 George Street in the city centre.
“This record year of private investment and development comes ahead of work beginning on the extension of the light rail network. The City has committed $220 million to this project, which will be the biggest change to Sydney’s transport in generations.
“The light rail project will give Sydney a world-class main street and support new flagship retail outlets, premium-grade office buildings, and cafés and outdoor dining. We’re already seeing businesses flock to George Street in anticipation of the benefits it will bring,” the Lord Mayor said.
In the City’s south, the Green Square urban renewal area saw a suite of development approvals worth $530 million, including a $142 million high rise building.
In the next four years, an estimated 10,000 apartments will be built at Green Square and the area will become home to 54,000 residents and 20,000 workers.
"We will invest $440 million in building a new town centre, a plaza and library, a new aquatic centre, a new childcare centre as well as parks and playgrounds,” the Lord Mayor said.
The Central Sydney Planning Committee meets monthly and determines major development applications worth more than $50 million.
The committee has seven members, including chair Lord Mayor Clover Moore, Councillors John Mant and Robert Kok, and NSW government representatives Gabrielle Trainor, Carolyn McNally and NSW government architect Peter Poulet.
</body></html>

Sydney's $2.8 billion development pipeline approvals in 2014

<html><body>
Sydney metropolitian auctions return this weekend.
The Australia Day long weekend is typically dominated by coastal offerings.
But Tracey Yap at Epping has a four bedroom, two bathroom brick auction at 29 Fonti Street (pictured above).
"We have a few buyers, whose holidays are over," she told Property Observer.
Yap's agency also has 29 Benson Street, West Ryde for weekend auction.
Louis Carr has a Castle Hill auction with $1.7 million hopes for the<a href="https://www.realestate.com.au/property-house-nsw-castle+hill-118598203" target="_blank"> five bedroom house on 2,000 square metres</a>.
It does come with a summery aspect, a palm tree next to the back yard pool.
Homebush and Merrylands also have scheduled auctions.
There are coastal auctions are on this weekend at Sussex Inlet, Fingal Bay, Tweed Heads, Mollymook and Brunswick Heads.
</body></html>

Sydney metro weekend auctions resume early

<html><body>
Recent claims from the Owners Corporation Network that the changes to the Home Building Act will lessen protection for apartment owners in relation to defective work are false, according to the Urban Taskforce.
Urban Taskforce CEO Chris Johnson said that the definition of what a ‘major defect’ is in the amendments is clear and includes defects that prevent a part of the building being used for its intended purpose. This includes fire safety or waterproofing, he said.
“I can’t see how the Owners Corporation Network (OCN) interprets this to mean a lowering of importance for waterproofing or fire safety system defects,” he said.
“The government’s own website on the changes to the Act clarifies that a faulty waterproofing membrane that caused water to leak into only one room would be a major defect.”
He said that they had worked with consumer groups to lessen funds spent on legal battles over defects.
“The industry and OCN agreed to a package of changes that ensure quality builders and developers will not be continually fighting claims that have dubious evidence. This included a new definition of major defect which we thought was a fair benchmark for all concerned,” he said.
“It is concerning to now see the state opposition quoting OCN claims that says 85% of apartments since 2000 have defects. These assertions are actually based on a survey by the City Futures unit at the University of NSW and is based on less than 300 respondents of which half said they had no problem getting the defects fixed.”
He said that, in fact, there were 600,000 strata units in New South Wales during the time of the survey so the 300 respondents were a small figure to base the study on.
“With a growing interest in apartment living it is important that quality buildings are constructed and that any defects are quickly rectified. The changes to the Home Building Act would seem to be contributing to a better process for ensuring quality and for managing defects where they occur,” he said.
</body></html>

jduke-EHk3XBmHkn

Apartment owners not less protected under Home Building Act changes: Urban Taskforce

<html><body>
New South Wales Fair Trading Minister Matthew Mason-Cox claims changes to home building laws will increase protections for consumers.
The <a href="/news/nsw/changes-to-nsw-home-building-laws-coming-this-week">new laws</a>, which will be enforced from today, include changes to licensing for builders – both professionals and owner-builders – and changes to the eligibility of building defects for compensation.
Mason-Cox said the changes were intended to modernise industry practices.
"From today, builders and traders face up to 12 months in prison if they are repeat offenders of unlicensed contracting work or don't have the required insurance," he said.
Licensing changes also take aim at illegal phoenix schemes, where an indebted business shuts down and resumes operations under a new name.
"At its core, these new home building laws are about ensuring NSW consumers are appropriately protected without creating unnecessary red tape and regulation that will stifle industry growth and investment," said Mason-Cox.
However, some claim the changes will <a href="/expert-insights/investing/nsw-home-owners-dodgy-construction-claims-curbed-by-government">degrade consumer rights</a> and property research and investment firm Aviate has warned that the new laws mean investors must now be more vigilant when purchasing properties.
One of the major aspects of the Home Building Amendment Act includes a change to the warranty period a builder must provide for new works.
A six-year warranty now only applies for "major" defects, which means there is a threat of collapse or the building is uninhabitable, while there is now no legal distinction between structural and non-structural defects.
All non-major defects will only be covered under the standard two-year warranty, even if they are structural defects.
Aviate Group's Neil Smoli says buyers must now take greater care.
"Investing in property is typically seen as low risk but it's only low risk if you take all the necessary precautions and undertake the proper due diligence prior to investing," said Smoli.
"Limiting the ability of purchasers to take action against builders for defects means the need to work only with builders and developers with a proven track record is vital. The company responsible for delivering a project must take pride in their work and be able to demonstrate that their other projects have been an enduring success."
He urges consumers to research builders before engaging their services.
</body></html>

jrichardson-uRX5hFdKfN

New home building laws start today in NSW

Subdued Sutherland Shire land value growth: NSW Valuer General

<html><body>
A range of new laws regarding home building will be introduced in New South Wales this week.
From 15 January, owner-builders will only require a permit for works valued over $10,000, not $5,000. The required threshold for owner-builder courses will also be lifted. Currently, owner-builders must complete an approved course for projects valued over $12,000. After 15 January, the course will only be required for projects costing $20,000 or more.
Owner-builders will also need to name all other owners of the land on owner-builder permit applications. According to the NSW government, the new regulation is intended to prevent owner-occupiers from using the application permit to carry out unlicensed commercial building work.
Those named in an owner-builder permit won't be able to apply for another owner-builder permit for five years, potentially affecting any nomadic owner-occupiers who renovate, redevelop and flip their homes frequently.
Owner-occupiers will also be unable to get permits for dual occupancy projects, barring "special circumstances". From 15 January, they will not be able to get statutory insurance (though their contractors will still require it), and will have to disclose that there is no statutory insurance on the property in any sale contract if the property sells within the warranty period.
It's not just owner-builders who will see changes to their regulatory environment.
From Thursday, there will be changes to builder licence requirements to combat phoenix schemes, where collapsed and indebted companies restart with different names.
Simultaneously, licensing rules will be loosened so builders only legally require a license for works valued over $5,000. Currently, builders must have a license for any work that costs $1,000 or more, including labour and materials. Although the threshold for most builders has increased, tradespeople doing specialist jobs like plumbing or electrical work will require a licence.
For standalone jobs like painting or repairs to water features or tennis courts, builders will no longer need a licence.
NSW Fair Trading Minister Matthew Mason-Cox will also introduce changes to the Home Warranty Insurance Scheme, which will be renamed the "Home Building Compensation Fund".
To claim compensation from the government for building faults, a defect must be deemed "major". Until now, a six year warranty was available for any "structural" defects to homes made by builders or developers. A major defect is defined by the NSW government as those that cause "the inability to inhabit or use the building (or part of the building) for its intended purpose," or "the destruction of the building or any part of the building" or "a threat of collapse" of the building or any of its parts.
Some claim the terminology change will <a href="/expert-insights/investing/nsw-home-owners-dodgy-construction-claims-curbed-by-government">degrade consumer rights</a> but the NSW government claims <a href="/expert-insights/finance/home-owner-rights-still-strong-despite-building-reforms-nsw-fair-trading">home owners won't lose protections</a>, with "general defects" still covered under the standard two year warranty.
Homeowners hoping to wash their hands of any dodgy builders may run into trouble with the government requiring tribunals and courts to "consider rectification as the preferred outcome". Owners cannot "reasonably refuse" access to builders who want to fix their defective work, and Fair Trading Inspectors will be able to "oblige" owners to pay builders money owed under their contract.
Builders will remain responsible for warranties for all work completed on a home, but subcontractors will be responsible for their own statutory warranties. If an owner engages an independent professional who gives written specialist advice to a builder, that builder will now also have a legal defence if the advice contributes to a building defect.
After Thursday, strata buildings will also be considered complete with the issue of an occupation certificate.
</body></html>

Changes to NSW home building laws coming this week

<html><body>
Sydney's strong property market has triggered a windfall in stamp duty for the state government.
The NSW government's half-yearly budget review indicated stamp-duty revenue was 40% higher in 2013-14, allowing the Treasurer Andrew Constance to say the NSW budget was the "envy" of the nation.
The state government also expects $744 million more stamp duty in 2014-15 than it forecast in the May budget.
Stamp duty revenue was now expected to be up by 12% during the current financial year.
Much of the gain was through commercial and industrial property sales.
But softer revenue than expected in payroll tax and mining royalties was noted along with the jobless rate expected to be higher than the prior 5.5% forecast.
After predicting a $283 million deficit for 2014/15 mid-year, the review revealed a likely surplus of $272 million.
The $555 million turnaround was mostly attributed to property stamp duty.
"Higher-than-expected property transfer duties are the significant driver of the 2014/15 surplus forecast," Treasurer Andrew Constance said.
</body></html>

NSW stamp duty boost for state government coffers

<html><body>
GUEST OBSERVATION
So two weeks ago I babbled on about how <a href="/expert-insights/time-for-a-reality-check-property-prices-certainly-can-and-do-go-down">Sydney property prices will go down in value</a> and how many property buyers live in a fantasy world where they don’t think it will or has ever decreased.
So I thought I would go into one Sydney suburb, diagnose the stats and show you that it can be a reality for this suburb.
There was no science in choosing Castle Hill as the suburb of choice. I didn’t troll through pages and pages of data to choose this particular suburb though.
Looking at the latest CoreLogic RP Data stats as at September 2014, <a href="/news">Castle Hill</a> has a median house price of a whopping $982,000.
Yep that’s right, its going to cost you just shy of a $1 million to buy in Castle Hill. In fact, it will probably cost you more. Even a three bedroom unit sold over weekend for $920,000. Yes, a unit.
According to CoreLogic RP Data it has grown in value 19% in the last year and 49% over the last five years. So in English, in 2009 you could buy in Castle Hill for $650,000.
With an average ‘days on market’ of 29 days, it is showing that the market is still red hot. So I would assume that we will see the magic million mark passed by Christmas, if not already.
Yields have failed to keep up, like many Sydney suburbs. They do their best work in a quiet market where no new houses are being built and the supply dries up. That said, the median rent is $650 per week.
So forget investing there, with a yield at 3.4% you can achieve this in a bank account without the risk. It’s one of those suburbs where it is cheaper to rent than to purchase! And the volume of sales, 576, shows significant numbers that can be relied upon. Be wary of sale figures in a low sales volume environment.
Now we need to add some income and other fun facts into the mixing bowl from the 2011 Census. Of all the working families, 41% had one major breadwinner whilst the other partner either worked part time or not at all. The suburb averages three people per dwelling and they own two cars.
The median family income is $2,059 per week – that’s a tidy $107,068 per annum.
But hang-on, that’s the whole household income and that’s gross before tax. So take home in hand is $1,487 per week, well for 41% of families it is.
Now lets go back and look at the house figures again and put the income and other stats in.
Let’s stick with the median house price at $982,000. If you were to purchase with a 20% deposit you would require around a $230,000 deposit and have a loan for $785,600. With an interest rate of 4.8% the principle and interest payments it equals $951 per week over 30 years.
That’s a whopping 63.9% of your net income per week going towards your mortgage. Does that sound like it makes financial sense? Better hope interest rates do not ever go up, or that you have a child, or both. That’s a recipe for bankruptcy.
But hang on, wasn’t the average people per household three? Oh, so they do want to have a family and a house in Castle Hill. Uh oh.
Now I have gone and checked with the banks that they would even lend you the money, and I can confidently tell you that even the banks are not that crazy. So if that’s the case, then how are people affording to buy these properties if the banks wont give them a loan that size?
Well, there are possibly several answers here:
<ul>
<li>They have larger than 20% deposits</li>
<li>They could be investors from other suburbs, so their incomes are different</li>
<li>The lower incomes earners may have owned property for a while when prices were lower</li>
<li>The higher income earners are buying the properties today</li>
</ul>
As the median income is the middle income achieved in the area, this means there are certainly income earners on a higher income than $107,000. It is more than likely these people, who are on incomes of $135,000 or higher, who are purchasing properties at this level. Doing some numbers here on servicing and income categories, it is those families in the top third percentile that could only realistically afford properties at this level. 
But hey, let’s go crazy and pretend interest rates will go up (we all know that never happens) and let’s say they go up to 8% – that same scenario above with the higher income earner at $135,000 can no longer afford to get that loan.
Can they afford to make the loan repayments though?
$785,600 principle and interest at 8% equals $1,329, which equates to 73% of their income, which leaves them $485 per week for:
<ul>
<li>Food to feed a family of three</li>
<li>Fuel for two cars</li>
<li>Rego</li>
<li>Council &amp; Water rates</li>
<li>Alcohol and possibly cigarettes</li>
<li>Bills</li>
<li>School fees</li>
</ul>
So it could potentially be done, but you would be living on bread and water and in reality this family would go bankrupt.
Remember my tip: Always do your sums on 9%.
And the figures are telling me that this is going to be a common story for Castle Hill in the coming years.
The numbers are leaning towards a suburb that is living well beyond its means and I would say that there a little of the “keeping up with the Joneses” going on here too and that’s a recipe for one mighty price correction.
TODD HUNTER is buyer’s agent, director and location researcher for Sydney-based <a href="https://www.wheregroup.com.au/" target="_blank">wHeregroup</a>.
Picture of a Castle Hill house courtesy of Wikimedia Commons.
</body></html>

Latest New South Wales Property News

Why this Castle Hill apartment building starts with a $7 million advantage

Editor's Picks

Developments

New apartments

New townhouses

News

Latest New South Wales Property News

Why this Castle Hill apartment building starts with a $7 million advantage

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News